Local Government Amendment (Performance
Reporting and Accountability) Act 2014
No. 5 of 2014
TABLE OF PROVISIONS
Section
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5
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8
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10
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14
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Purpose
Commencement
Principal Act
Definitions
Council must maintain an Internet website
Council Plan
Strategic Resource Plan
Council must prepare a budget
Revised budget
New section 129 substituted
129
Public notice
Adoption of budget or revised budget
Annual report
131
Annual report—contents
132
Annual report—preparation
133
Annual report—submission to Minister and public
availability
Declaring rates and charges
Invalidity of any rate or charge
Regional libraries
Savings and transitional—section 246 inserted
246
Local Government Amendment (Performance
Reporting and Accountability) Act 2014—financial
year commencing on 1 July 2013
Repeal of amending Act
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ENDNOTES
Page
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i
Victoria
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
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Local Government Amendment (Performance Reporting and Accountability)
Act 2014
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(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.
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Act 2014
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3 Principal Act
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;
(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";
3
See:
Act No.
11/1989.
Reprint No. 12
as at
22 July 2013
and
amending
Act No.
30/2013.
LawToday:
www.
legislation.
vic.gov.au
Local Government Amendment (Performance Reporting and Accountability)
Act 2014
No. 5 of 2014
s. 5
(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—
"(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—
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(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).
(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).".
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(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;".
(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".
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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
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).".
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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
(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;
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(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;
(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
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(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
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.
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(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
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—
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(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.
(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
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(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
(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
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(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
Interpretation of Legislation Act 1984).
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Endnotes
ENDNOTES
†
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."
15