local government planning and reporting reforms

Local Government Planning and

Reporting Reforms

FINPro Conference

28 February 2014

Amelia Chapman, Manager Sector Performance

Mark Davies, Local Government Advisor

PERFORMANCE REPORTING

2

Implementation process

3

Key deliverables

• Better practice guides

- Planning and reporting

− - Strategic resource plan

− - Budget

− - Annual report

− - Financial statements

− - Performance statement

− - Audit evidence

4

Key deliverables

• Trial audits

• CEO reports

• Trial 2 comparative analysis

• Regional workshops

• Work book

5

Key dates

• Local Government Amendment (Performance Reporting and Accountability) Act 2014 – operational 18 Apr 2014

• Local Government (Planning and Reporting) Regulations – public consultation Feb-Mar 2014 and operational 18 Apr 2014

• Regulatory Impact Statement submissions close 19 Mar

• michael.concas@dtpli.vic.gov.au or DTPLI GPO Box 2392

• www.dtpli.vic.gov.au/localgovernment

6

Reporting trial 2

• Service performance surveys 681 (av.62)

• Financial performance surveys 64

• Sustainable capacity surveys 64

• Governance & management checklists 62

7

LEGISLATIVE REFORM

8

Planning and accountability framework

9

General

The Act

• Accounting Standards and Financial Statements defined

• Standard Statements removed

• Planning and Reporting documents must be on the web

• Libraries exempted from Major Initiatives, Performance Indicators and Performance Statement

• 2013/14 Annual Report to be prepared under existing legislation

10

General

The Regulations

• Key terms defined

• Financial Statement definitions linked to accounting standards

• Local Government Model Financial Report defined

• Statement of Capital Works linked to the LGMFR

• Statement of Human Resources defined

• Financial Ratios removed

• 2004 Regulations apply to the 2013/14 Annual Report

11

Strategic Resource Plan

The Act

• Financial Statements replace Standard Statements

• Statement of Non-Financial Resources prescribed by the Regulations

• Must take account of other plans that commit resources including both adopted plans and future proposed plans

12

Strategic Resource Plan

The Regulations

• Financial Statements include a Statement of Capital Works linked to the LGMFR

• Summary of Planned Capital Works Expenditure by LGMFR classification, expenditure type and funding source

• Statement of Human Resources

• Summary of Planned Human Resources Expenditure/EFTs by organisational structure and employment type

13

Budget

The Act

• Financial Statements replace Standard Statements

• Services replace Activities

• Major Initiatives replace Key Strategic Activities

• Service Performance Indicators (Outcome) to be included

• Adopted by 30 June (from 1 Jan 2015)

• Submitted to Minister within 28 days (including Revised)

14

Budget

The Regulations

• Financial Statements include a Statement of Capital Works linked to the LGMFR

• Detailed List of Capital Works Expenditure by LGMFR classification, expenditure type and funding source

• Statement of Human Resources

• Summary of Planned Human Resources Expenditure/EFTs by organisational structure and employment type

15

Budget

The Regulations

• Comparatives for all borrowings disclosures (budget for revised budget disclosures)

• Comparatives and % change for all rates and charges disclosures (budget for revised budget disclosures)

• General rate in $, general rates raised, assessment numbers and value of land disclosed by type or class

• Amount raised in respect of each rate or charge and total amount raised

• Public notice only includes date of council meeting (and reasons for a revised budget)

16

Annual Report

The Act

• Standard Statements removed

• Report of Operations to include:

− Progress update on Major Initiatives

− Governance & Management Checklist

− Service Performance Indicators, Measures and Results

• Performance Statement to include:

− Service Performance (Outcome), Financial Performance and Sustainable Capacity Indicators Measures and Results

17

Annual Report

The Regulations

• Report of Operations to include:

− Governance & Management Checklist – Sched 1

− Service Performance Indicators, Measures and Results for 3 preceding years (transitional) – Sched 2

− Summary of EFTs by organisational structure, employment type and classification and gender

− Other minor edits and changes

18

Annual Report

The Regulations

• Performance Statement to include:

− Service Performance Indicators (Outcome), Measures and Results for 3 preceding years (transitional) – Sched 3

− Financial Performance Indicators Measures and Results for 3 preceding years (transitional) and 4 future years as per the SRP – Sched 3

− Sustainable Capacity Indicators Measures and Results for 3 preceding years (transitional) – Sched 3

− Description of the municipal district

− Explanation of material variations

19

Annual Report

The Regulations

• Financial Statements linked to LGMFR (13/14)

• Financial Statements to include:

− Statement of Capital works linked to LGMFR

− Note listing grants by type, recurrent, non-recurrent, operating and capital

− Note comparing actual v budgeted operating income and expenditure and explanation of variances

− Note comparing actual v budgeted capital expenditure and explanation of variances

20

KEY THINGS TO REMEMBER!

21

Key things to remember!

• Annual Report 2013/14 – current provisions apply

• Strategic Resource Plan 2014-18 – new provisions apply

• Budget 2014/15 – new provisions apply except adoption date

• Performance reporting – commences 1 Jul 2014

22

For more information:

Amelia Chapman

Manager, Sector Performance

03 9208 3838

performance@dtpli.vic.gov.au

www.dpcd.vic.gov.au\localgovernment\performance-reporting