Council Accepts Report Into Community Facilities Overspend And Commits To Enhanced Controls
The report, prepared by Executive Manager Finance and Strategy Quentin Speers, examined all aspects of how the overspend occurred and outlined the corrective actions required to prevent a recurrence.
A five-member team undertook an in-depth review, looking into operational decision-making, supplier management, contract cost escalation, and compliance to procurement policy.
Mr Speers said that in response to the overspend, Council has moved swiftly to enhance project and contract management processes.
'The proposed improvements underway include better budget oversight, tighter contract and conflict of interest management, stronger project governance, increased staff training, and the improved use of technology,' he said.
The investigation found that several weaknesses in project management and internal controls were further exacerbated by the limitations of Council's existing financial system. This system is due to be replaced within the next 12 months.
The new Datascape Financial System will provide greater visibility and control by enabling Council to assign and monitor expenditure more accurately against specific projects within each activity area - something not possible under the current system.
Chief Executive Clive Manley acknowledged the review team for their efforts in untangling what he described as 'a complex web of interrelated systems, decisions and events' to uncover the root causes of the overspend and develop a plan to move forward.
With the Risk and Assurance Committee accepting the report's findings and recommendations, the next phase of the investigation will examine the role of staff and suppliers, the rationale behind key decisions, and any further actions that may be necessary.
As key staff have been on extended leave, this aspect of the investigation has not been possible until now. To ensure transparency and community confidence, this phase will be overseen by an independent specialist, appointed in agreement with the mayor and the independent Chair of the Risk and Assurance Committee.
Mr Manley noted that this next stage may take some time, and he will not be making further comment until the process is complete.
'It's important that the investigation is allowed to follow due process, and I urge people not to jump to conclusions. This needs to be a fair and impartial process for everyone involved,' he said.
'This has been a very challenging time for Council, both for elected members and staff. I would like to thank them for their professionalism throughout.
While this overspend occurred in one activity area, the learnings will be applied across all of Council's operations.
'The community should have confidence that the strengthened controls and reporting mechanisms will provide the necessary disciplines to significantly reduce the risk of any future unauthorised overspend occurring.'
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