Local Government Planning and
Reporting Reforms
FINPro Conference
28 February 2014
Amelia Chapman, Manager Sector Performance
Mark Davies, Local Government Advisor
PERFORMANCE REPORTING
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Implementation process
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Key deliverables
• Better practice guides
- Planning and reporting
− - Strategic resource plan
− - Budget
− - Annual report
− - Financial statements
− - Performance statement
− - Audit evidence
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Key deliverables
• Trial audits
• CEO reports
• Trial 2 comparative analysis
• Regional workshops
• Work book
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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
• [email protected] or DTPLI GPO Box 2392
• www.dtpli.vic.gov.au/localgovernment
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Reporting trial 2
• Service performance surveys 681 (av.62)
• Financial performance surveys 64
• Sustainable capacity surveys 64
• Governance & management checklists 62
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LEGISLATIVE REFORM
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Planning and accountability framework
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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
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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
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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
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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
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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)
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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
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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)
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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
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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
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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
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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
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KEY THINGS TO REMEMBER!
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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
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For more information:
Amelia Chapman
Manager, Sector Performance
03 9208 3838
www.dpcd.vic.gov.au\localgovernment\performance-reporting
