Local Government Amendment (Performance Reporting and Accountability) Act 2014

No. 5 of 2014

TABLE OF PROVISIONSSection Page

1 Purpose 12 Commencement 23 Principal Act 34 Definitions 35 Council must maintain an Internet website 46 Council Plan 47 Strategic Resource Plan 58 Council must prepare a budget 69 Revised budget 610 New section 129 substituted 7

129 Public notice 711 Adoption of budget or revised budget 812 Annual report 8

131 Annual report—contents 8132 Annual report—preparation 11133 Annual report—submission to Minister and public

availability 1213 Declaring rates and charges 1314 Invalidity of any rate or charge 1315 Regional libraries 1316 Savings and transitional—section 246 inserted 14

246 Local Government Amendment (Performance Reporting and Accountability) Act 2014—financial year commencing on 1 July 2013 14

17 Repeal of amending Act 14═══════════════

ENDNOTES 15

1

Local Government Amendment (Performance Reporting and

Accountability) Act 2014†

No. 5 of 2014

[Assented to 11 February 2014]

The Parliament of Victoria enacts:

1 Purpose

The purpose of this Act is to amend the Local Government Act 1989—

(a) to require a Council to report against prescribed performance indicators in the report of operations and performance statement in the Council's annual report; and

Victoria

1

(b) to require a Council to include in its annual report the results of the Council's assessment against the prescribed governance and management checklist; and

(c) to require a Council to include financial statements in its Strategic Resource Plan, budget, revised budget and annual report; and

(d) to require a Council to ensure consistency between its Strategic Resource Plan and the resourcing of plans to provide services or take initiatives in the period covered by the Strategic Resource Plan; and

(e) to require a Council to include Major Initiatives in its budget, revised budget and annual report; and

(f) to require a Council to adopt its budget by 30 June each year; and

(g) to require a Council to publish its Council Plan, Strategic Resource Plan, budget, revised budget and annual report on its Internet website; and

(h) to make consequential and minor amendments.

2 Commencement

(1) Subject to subsection (2), this Act comes into operation on 18 April 2014.

(2) Sections 11(1), 13 and 14 come into operation on 1 January 2015.

Clause Page

2

s. 2

3 Principal ActSee:Act No.11/1989.Reprint No. 12as at22 July 2013and amendingAct No.30/2013.LawToday:www.legislation.vic.gov.aus. 3

In this Act, the Local Government Act 1989 is called the Principal Act.

4 Definitions

In section 3(1) of the Principal Act—

(a) insert the following definitions—

"AAS means the accounting standards published by the Australian Accounting Standards Board from time to time;

financial statements—

(a) subject to paragraph (b), means the financial statements and the notes attached to, or intended to be read with, the financial statements prepared in accordance with the current AAS as it applies to the general purpose financial reports of local governments;

Clause Page

3

(b) in sections 126 and 127, means the financial statements referred to in paragraph (a) but does not include the notes referred to in that paragraph;";

(b) in paragraph (b) of the definition of accounts and records, for "notes" substitute "any additional notes";

(c) the definition of standard statements is repealed.

5 Council must maintain an Internet website

(1) After section 82A(2)(a) of the Principal Act insert—

"(ab) the following documents are published on the Internet website—

(i) the current Council Plan approved under section 125—as soon as practicable after being approved;

(ii) the current Strategic Resource Plan adopted under section 126—as soon as practicable after being adopted;

(iii) the current budget or revised budget adopted under section 130—as soon as practicable after being adopted;

(iv) the current annual report prepared under sections 131, 132 and 133—as soon as practicable after being submitted to the Minister under section 133(1);".

(2) In section 82A(2)(c) of the Principal Act, after "documents" insert "(including the documents referred to in paragraph (ab))".

6 Council Plan

(1) After section 125(3) of the Principal Act insert—

Clause Page

4

s. 5

"(3A) For the purposes of subsection (3), the Council must ensure that, for at least 28 days after the public notice is published under section 223(1)(a)—

(a) a copy of the proposed Council Plan is available for inspection by the public at—

(i) the Council office and any district offices; and

(ii) any other place required by the regulations; and

(b) the proposed Council Plan is published on the Council's Internet website.".

(2) At the foot of section 125(11) of the Principal Act insert—"Note

In addition, a Council must ensure that the current Council Plan is published on the Council's Internet website (see section 82A(2)(ab)(i)).".

7 Strategic Resource Plan

(1) In section 126(2)(a) of the Principal Act, for "the standard statements" substitute "financial statements".

(2) In section 126(2)(b) of the Principal Act, after "human resources" insert ", in the form and containing the information required by the regulations".

(3) After section 126(2) of the Principal Act insert—

"(2A) Without limiting subsection (1), the Strategic Resource Plan must take into account services and initiatives contained in any plan adopted by the Council (so far as the plan relates to the period covered by the Strategic Resource Plan).

Clause Page

5

s. 7

(2B) A Council that proposes to adopt a plan to provide services or take initiatives must ensure that the resources required for the plan are consistent with the Strategic Resource Plan (so far as the plan relates to the period covered by the Strategic Resource Plan).".

(4) At the foot of section 126(4) of the Principal Act insert—"Note

In addition, a Council must ensure that the current Strategic Resource Plan is published on the Council's Internet website (see section 82A(2)(ab)(ii)).".

8 Council must prepare a budget

(1) For section 127(2)(a) of the Principal Act substitute—

"(a) financial statements in the form and containing the information required by the regulations;".

(2) In section 127(2)(b) and (c) of the Principal Act, for "activities" substitute "services".

(3) For section 127(2)(d) of the Principal Act substitute—

"(d) Major Initiatives, being initiatives identified by the Council as priorities, to be undertaken during the financial year;

(da) for services to be funded in the budget, the prescribed indicators of service performance that are required to be reported against in the performance statement under section 131;

(db) the prescribed measures relating to those indicators;".

Clause Page

6

s. 8

(4) In section 127(2)(e) and (3)(b) and (c) of the Principal Act, for "details" substitute "information".

9 Revised budget

In section 128(3) of the Principal Act, for "details" substitute "information".

10 New section 129 substituted

For section 129 of the Principal Act substitute—

"129 Public notice

(1) As soon as practicable after a Council has prepared a proposed budget or revised budget, the Council must give public notice.

(2) A person has a right to make a submission under section 223 on any proposal contained in the proposed budget or revised budget.

(3) In addition to any other requirements specified by this Act, the notice referred to in subsection (1) must—

(a) contain any information required by the regulations; and

(b) advise that copies of the proposed budget or revised budget are available for inspection for at least 28 days after the publication of the notice at—

(i) the Council office and any district offices; and

(ii) any other place required by the regulations; and

(c) advise that the proposed budget or revised budget is published on the

Clause Page

7

s. 10

Council's Internet website for at least 28 days after the publication of the notice.

(4) A copy of the proposed budget or revised budget must be available and published as set out in subsection (3)(b) and (c).".

11 Adoption of budget or revised budget

(1) In section 130(3) of the Principal Act, for "31 August" substitute "30 June".

(2) For section 130(4) of the Principal Act substitute—

"(4) The Council must submit a copy of the budget or revised budget to the Minister within 28 days after adopting the budget under subsection (3) or adopting the revised budget under subsection (1).".

(3) In section 130(6) of the Principal Act, after "budget" insert "or revised budget".

(4) In section 130(7) and (8)(a) of the Principal Act, for "details" substitute "information".

(5) At the foot of section 130(9) of the Principal Act insert—"Note

In addition, a Council must ensure that the current budget or revised budget is published on the Council's Internet website (see section 82A(2)(ab)(iii)).".

12 Annual report

For sections 131, 132 and 133 of the Principal Act substitute—

"131 Annual report—contents

Clause Page

8

s. 11

(1) A Council must prepare an annual report in respect of each financial year.

(2) An annual report must contain the following, in respect of the financial year reported on—

(a) a report of operations of the Council;

(b) an audited performance statement;

(c) audited financial statements;

(d) a copy of the auditor's report on the performance statement, prepared under section 132;

(e) a copy of the auditor's report on the financial statements under Part 3 of the Audit Act 1994;

(f) any other matter required by the regulations.

(3) The report of operations of the Council must—

(a) contain the following—

(i) a statement of progress in relation to the Major Initiatives identified in the budget or revised budget for the financial year reported on;

(ii) the results, in the prescribed form, of the Council's assessment against the prescribed governance and management checklist;

(iii) all prescribed indicators of service performance for the services provided by the Council during that financial year and the prescribed measures relating to those indicators;

Clause Page

9

s. 12

(iv) results achieved for that financial year in relation to the performance indicators and measures referred to in subparagraph (iii);

(v) any other information required by the regulations;

(vi) any other information determined by the Council to be appropriate; and

(b) be in the form determined by the Council.

(4) The performance statement in the annual report must—

(a) contain the following—

(i) for the services funded in the budget for the financial year reported on, the prescribed indicators of service performance required by the regulations to be reported against in the performance statement and the prescribed measures relating to those indicators;

(ii) the prescribed indicators of financial performance and the prescribed measures relating to those indicators;

(iii) the prescribed indicators of sustainable capacity performance and the prescribed measures relating to those indicators;

(iv) results achieved for that financial year in relation to those performance indicators and

Clause Page

10

s. 12

measures referred to in subparagraphs (i), (ii) and (iii);

(v) any other information required by the regulations; and

(b) be prepared in accordance with the regulations.

(5) The financial statements in the annual report must—

(a) include any other information required by the regulations; and

(b) be prepared in accordance with the regulations.

132 Annual report—preparation

(1) A Council must submit the performance statement and financial statements in their finalised form to the auditor for auditing as soon as possible after the end of the financial year.

(2) The Council, after passing a resolution giving its approval in principle to the performance statement and financial statements, must submit the statements to the auditor for reporting on the audit.

(3) The auditor must prepare a report on the performance statement.Note

The auditor is required under Part 3 of the Audit Act 1994 to prepare a report on the financial statements.

(4) The auditor must not sign a report under subsection (3) or under Part 3 of the Audit

Clause Page

11

s. 12

Act 1994 unless the performance statement or the financial statements (as applicable) have been certified under subsection (5).

(5) The Council must ensure that the performance statement and financial statements, in their final form after any changes recommended or agreed by the auditor have been made, are certified in accordance with the regulations by—

(a) 2 Councillors authorised by the Council for the purposes of this subsection; and

(b) any other prescribed persons.

(6) The auditor must provide the Minister and the Council with a copy of the report on the performance statement as soon as is reasonably practicable.Note

The auditor is required under Part 3 of the Audit Act 1994 to report on the financial statements to the Council within 4 weeks and to give a copy of the report to the Minister.

133 Annual report—submission to Minister and public availability

(1) A Council must submit the annual report to the Minister—

(a) within 3 months after the end of the financial year reported on; or

(b) within any longer period permitted by the Minister in a particular case.

(2) After the annual report has been submitted to the Minister, the Council must give public notice that the annual report has been prepared and can be inspected at the Council office and on the Council's Internet website.

Clause Page

12

s. 12

(3) The Council must ensure that a copy of the annual report is available for inspection by the public at—

(a) the Council office and any district offices; and

(b) any other place required by the regulations.

Note

In addition, a Council must ensure that the current annual report is published on the Council's Internet website (see section 82A(2)(ab)(iv)).

(4) If a Council fails to submit its annual report in accordance with subsection (1), the Secretary must ensure that details of the failure are published in the annual report of the Department.".

13 Declaring rates and charges

In section 158(1) of the Principal Act, for "31 August" substitute "30 June".

14 Invalidity of any rate or charge

In section 179(2) of the Principal Act, for "31 August" substitute "30 June".

15 Regional libraries

For section 196(7)(e) of the Principal Act substitute—

"(e) Part 6, except—

(i) section 127(2)(d), (da) and (db); and

(ii) section 131(2)(b) and (d); and

Clause Page

13

s. 13

(iii) section 131(3)(a)(i), (ii), (iii) and (iv); and

(iv) section 131(3)(a)(v), to the extent that any other information required by regulations made for the purposes of that subparagraph relates to a matter referred to in section 131(3)(a)(i), (ii), (iii) or (iv); and

(v) section 131(4); and

(vi) section 132, so far as it relates to a Council's performance statement;".

16 Savings and transitional—section 246 inserted

After section 245 of the Principal Act insert—

"246 Local Government Amendment (Performance Reporting and Accountability) Act 2014—financial year commencing on 1 July 2013

Despite the amendments made to this Act by sections 6, 7, 8, 9, 10, 11 (except subsection (1)) and 12 of the Local Government Amendment (Performance Reporting and Accountability) Act 2014, sections 125, 126, 127, 128, 129, 130, 131, 132 and 133, as in force immediately before 18 April 2014, continue to apply in relation to the financial year which commenced on 1 July 2013.".

17 Repeal of amending Act

This Act is repealed on 1 January 2016.Note

The repeal of this Act does not affect the continuing operation of the amendments made by it (see section 15(1) of the

Clause Page

14

s. 16

Interpretation of Legislation Act 1984).

═══════════════

Clause Page

15

ENDNOTES

Endnotes

Local Government Amendment (Performance Reporting and Accountability) Act 2014

No. 5 of 2014

16

† Minister's second reading speech—

Legislative Assembly: 27 November 2013

Legislative Council: 12 December 2013

The long title for the Bill for this Act was "A Bill for an Act to amend the Local Government Act 1989 to improve the performance reporting and accountability of Councils and for other purposes."