Glen Innes Severn Council will hold an extraordinary meeting on Thursday to decide how it responds to a proposed Performance Improvement Order from the NSW Government, covering financial management issues stretching back to 2022.
The Extraordinary Council Meeting will start at 9am on Thursday, 10 September, after Council received a Notice of Intention from the Minister for Local Government along with a draft Performance Improvement Order, inviting Council to make a submission before a final decision is made.
The NSW Minister for Local Government and Office of Local Government encourage councils that are dysfunctional or failing to meet their legal obligations to address problems voluntarily before considering a performance improvement order. Before issuing an order, the Minister must give the council notice and at least seven days to respond, consider its formal submission, and specify the required actions. Councils must table and publish any order, report on their compliance and cooperate with an appointed temporary adviser, who must be given at least 14 days to review proposed compliance reports. The Office of Local Government monitors implementation and publishes orders, reports and assessments, with further details set out in the Performance and Suspension Orders Procedural Framework.
This significant disciplinary step from the Office of Local Government means that efforts to encourage GISC to improve their management have not been responded to satisfactorily. It is important to note that the proposed order is directed at the business side of Council, not elected councillors. Failure to comply with a Performance Improvement Order may lead to council being put into administration.
The proposed order relates to a number of financial management, reporting, audit and governance matters that have affected Council since 2022, when a financial management system that later failed was first implemented. The previous business system that was sold to Council as a cost-effective and fit-for-purpose solution, but it became clear that the system did not live up to the expectations set by the original vendor.
This resulted in significant challenges for Council’s financial management and reporting, significantly contributing to three consecutive disclaimed financial statement audits. In a frought decision, after Council expended enormous time, energy, and money attempting to make the system work, that system was abandoned and replaced with a well-known business system used widely by Councils across Australia. The Civica Altitude system was deployed in July this year.
The business paper for Thursday’s meeting was released to councillors and the community this morning. The submission Council is considering will outline the significant strategic decisions and progress made over the past two years, including replacement of the 2022 financial management system, the first stage of the Civica business platform implementation, the application and approval of Council’s Special Rate Variation, and the adoption of an improved Long Term Financial Plan.
Council is also scheduled to meet the Office of Local Government later on Monday to seek further clarification on the proposed order and what information the Office of Local Government expects Council to address in its response. Officers will then finalise a draft response, to be provided as a late annexure for councillors to consider at Thursday’s meeting.
Mayor Cr Margot Davis said the meeting would give the elected Council the chance to consider the order and determine its formal position.
“Councillors will consider the matters raised by the Minister, the requirements contained in the proposed Order, the information provided by OLG and the officers’ draft response before determining Council’s position,” Mayor Davis said.
“Council is committed to transparency and to ensuring our response is based on clear factual evidence.”
“We remain focused on improving our long-term financial sustainability, moving out of the historic disclaimer-of-opinion position, and being accountable to the Office of Local Government in its role as Council’s regulatory oversight body.”
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