Transcript New South Wales Aboriginal Land Council

New South Wales Aboriginal Land
Council
Review of the Policy on Local
Aboriginal Land Council Funding and
Financial Obligations
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CONTEXT
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2007 and 2008 – major changes for NSWALC
Out of administration
New ALRA
New Council
Administrative, financial, governance and structural
reforms
Opportunity and timely to review our policy and
procedures for LALC funding
CONTEXT
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Current policy developed in 2005
The Draft Policy on Local Aboriginal Land
Council Funding and Financial Obligations
has been developed ensuring that the
requirements of the Aboriginal land Rights
Act have been :
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i.e. Section 106 (8)(e),113, 114, 153, 158, 159,
161, 162 and 163
OBJECTIVE
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Ultimate aim is to support LALCs to operate at a high
standard while still maintaining high levels of
accountability
Streamline processes and reduce complexity
Enable Zone offices to operate with more discretion
to respond to individual circumstances
Demonstrate good management across the network
to stakeholders
OBJECTIVE
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Be consistent with general applicable
principles of Administrative Law such as;
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The requirement that powers be exercised
reasonably and for proper purposes; and
The requirement to act fairly in a procedural
sense
Working Party
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A Working Party was established to
undertake a review of the current Policy on
Local and Regional Aboriginal Land Council
Funding and Financial Obligations.
Working Party Members
Councillors
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Councillor Craig Cromelin – Wiradjuri Region
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Councillor Stephen Ryan – Central Region
Working Party Members
Staff
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Mr Lesley Turner, Director - Southern Zone
Ms Jenny Bedford, Operations Manager - Southern Zone
Mr Tony Sutherland, Director - Western Zone
Mr Robert Barnes, Operations Manager – Western Zone
Mr Andrew Riley, Director - Northern Zone
Mr Trent Lynwood, Operations Manager - Northern Zone
Mr Steve Merritt, Director – Eastern Zone
Ms Carole Di Franco, Senior LALC Support – Eastern Zone
Mr Neil Mandel, Network Services
Main Recommendations
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A separate “stand alone” Policy on Local Aboriginal
Land Council Funding and Financial Obligations;
A new name - Policy on Local Aboriginal Land
Council Funding and Financial Obligations
A revised Procedures framework to implement the
changed policy;
A Risk Management approach relating to financial
and performance;
Main Recommendations
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Reduce the 6 funding categories to 2;
Introduce the concept of cessation of funding
for non-compliance; and
Simplify the types of funding arrangements
and have just 2 – a Funding Agreement or an
Assistance Agreement.
Introduce a standard LALC Management
Support System for all NSWALC.
Stand Alone Policy
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Currently NSWALC has a policy titled Local
and Regional Aboriginal Land Council
Funding and Financial Obligations.
This includes Policy and Procedures all in
the one document which presents a problem
if NSWALC is to consider changes to policy.
Stand Alone Policy
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The working group has proposed a new
policy with the following;
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a set of principles;
a risk management approach;
financial and operational performance;
funding / assistance agreements;
A Stand Alone Policy
new funding categories;
– new reporting requirements; and
– cessation of funding aspects.
Name changed to Policy on Local
Aboriginal Land Council Funding and
Financial Obligations
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PRINCIPLES
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NSWALC’s principle objective is to support
LALCs to ensure sound and sustainable
financial and operational management.
NSWALC will adopt a risk management
approach to making funding decisions.
LALCs should not be unduly penalised for
falling short of minimum operational
performance standards.
PRINCIPLES
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NSWALC is to work closely with LALCs in
ensuring satisfactory performance and
proper management; and
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The funding policy should focus on early
identification of problem areas and on timely
intervention and assistance where required.
RISK MANAGEMENT
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Can be defined as consideration of events
that could occur and what would be the
impact if such events occurred (likelihood
and consequence).
These considerations enable risk events to
be identified and if there is a likelihood of
them occurring, strategies can be developed
that would either reduce the likelihood or
mitigate the impact of these events.
RISK MANAGEMENT
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Sound management practices
The principle of risk management
The need for a decrease in complexity for
NSWALC and LALCs; and
The need to focus attention on overall good
management.
FINANCIAL AND OPERATIONAL
PERFORMANCE
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LALCs are required to meet minimum
operational performance standards:
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Generate sufficient income to pay expenses;
Have enough cash at bank and investments to
cover liabilities as well as any employee leave
entitlements;
Collects rents when they fall due;
FINANCIAL AND OPERATIONAL
PERFORMANCE
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LALCs are expected to:
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Pay rates and charges when they fall due;
Lodge Business Activity Statements and taxes
when they fall due;
Ensure debts are paid, as and when they fall due
(as referred to in s91 (1) (e)), and are in line with
the budget;
FINANCIAL AND OPERATIONAL
PERFORMANCE
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LALCs are expected to:
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Ensure employee related payments meet
legislative requirements, i.e. workers comp,
superannuation; and
Have at least 50 voting members.
FUNDING CATEGORIES
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Principle change is the reduction of funding
categories from six to two (funded and
unfunded).
There will be two main funding categories:
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F - Funded
UF - Unfunded
Note that those LALCs under Administration
will be classified as Funded
FUNDING AND ASSISTANCE
AGREEMENTS
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All LALCs will be provided with a funding or maybe
an assistance agreement from NSWALC;
These agreements will outline the terms and
conditions under which NSWALC will provide
financial and other support to LALCs;
The agreements will also outline the range and type
of financial and performance reports required to be
lodged under the ALRA or the terms of the
agreement.
FUNDING AND ASSISTANCE
AGREEMENTS
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Without limiting the types of reports, they
may include:
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Community, Land and Business Plans
(implementation, progress/status);
Community Benefit Schemes
Operational / Financial Reports
MAKING A FUNDING DECISION
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NSWALC can only fund LALCs that are not
prohibited from receiving funds pursuant to
s.163 of the ALRA 1983;
NSWALC will only offer Funding Agreements
to LALCs who are in a funded category and
may offer Assistance Agreements to LALCs
in an Unfunded category.
FINANCE
PROVISIONS
BUDGET
APPLICATION
s.158
Must be
submitted by
21 April
s.52
Must be
submitted by
31 March
Funding
Agreement
s.162
Maintain Records
and Accounts
s.153(1)
ANNUAL
REPORTING
Audited
Financial
Statements
Periodic Reports
To be submitted
to NSWALC within
4 weeks of end of period
Annual
Reports
Accounts to Auditor
by 14 September
s.153(4)
Financial Statements
(Incl. assets
and liabilities)
Bank Statements
Membership Rolls
Performance
Reports
Audit to NSWALC
By 1 November
s.153(5)
Must include
1. Management Letter
2. Copies of all Insurance
Policies
Reg. 95
Voting Rolls
Minutes of
Meetings
Attendance List
of Meetings
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Lease, contracts &
other documents
BUDGETS
s.158
APPLICATION s.52
ASSESSMENT
APPROVAL s.106
FUNDING
AGREEMENTS
s.162
PERFORMANCE
REPORTS
PERIODIC
REPORTS
s.159
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AUDITED
STATEMENTS
ANNUAL
REPORTS
s.153
s.161
REPORTING REQUIREMENTS
Reporting requirements will be
streamlined. LALCs will be required to
provide financial reports and also to
report against their community land and
business plan.
 LALCs will be able to demonstrate up
to 10 per cent variation in expenditure
against budget line items.
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LALC MANAGEMENT SUPPORT
SYSTEM
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A new database, the LALC Management Support
System, will be used to monitor performance
against five key operational areas.
The LMSS provides the diagnostic tool to inform
the risk category (which in turn informs the
delegate in relation to how funds will be offered
and what reporting regime the LALC’s will be
required to adhere to) and the LALC
management plan.
LALC MANAGEMENT
SUPPORT SYSTEM
Overview / Summary
 Financial Management
 Property Management
 Systems Management
 Human Resources
 Governance
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NEXT STEPS
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The ARLA requires NSWALC to refer the
policy to each Local Aboriginal Land
Council for comment, and consider any
submissions made by any Local Aboriginal
Land Council within 30 days of the referral
of the policy, and obtain the approval of
the Minister and the Policy /gazetted.
NEXT STEPS
The revised policy will take effect on
its publication in the Gazette or on a
later day specified in the policy.
 NSWALC staff and LALCs will need
to implement the new arrangements
from that date.
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SUMMARY OF ISSUES
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The procedures are less prescriptive and
allow greater flexibility.
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The ultimate aim is to support LALC’s to
operate at a high standard while still
maintaining high levels of accountability.
SUMMARY OF ISSUES
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The proposed policy provides the framework;
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The procedures provide guidance and
instruction on how the policy framework will
be operationalised.
Comparison – Current and Proposed
Policy
CURRENT
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PROPOSED
POLICY / PROCEDURES
(1 DOCUMENT)
SEPARATE
STAND ALONE
6 FUNDING CATEGORIES
2 FUNDING CATEGORIES
(F) OR (UF)
BREACH REGIME
LESS COMPLEX
COMPLIANCE REGIME
s162 AND 163
Comparison – Current and Proposed
Policy
CURRENT
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PROPOSED
Policy complex
Simplifies – less
prescriptive allow
flexibility
Termination Clause
By NSWALC or
LALC
Comparison –
Current and Proposed Policy
Current
 Funding Agreements
 UF 2 “Out of Policy” Agreements
 Administrators
 Breach database regime
 12 months rates non-payment
 Payment of Essential Services
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Comparison –
Current and Proposed Policy
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Proposed
Funding Agreement.
Assistance Agreements.
28 days to rectify non compliance.
Otherwise assistance agreement
negotiated.
If beyond 90 days the funding agreement
is terminated, funds forfeited. An
Assistance Agreement can be negotiated
Comparison – Current and Proposed
Policy
Proposed
LALC Management Support System
 Assessment against five key operational
areas
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Financial Mgt, Office Systems Mgt, Property Mgt,
Human Resources and Governance
Auditors 2nd Certificate is also used to assess /
measured
20 % weighting against each key area
LALCs assessed on above and total
determines its indicative level of risk i.e.
within one of the following three levels
Comparison – Current and Proposed
Policy
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Low Risk
90% - 100% - Funded
Quarterly & six monthly
reporting
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Medium Risk
70% - 89% - Funded
quarterly and quarterly
reporting
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High Risk
50% - 69% Funded
monthly and monthly
reporting
Process from here?
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Approval of Draft Policy : 3 Mar 2009
Feedback from LALCs : 10 Apr 2009
Approval of Final Policy : 30 Apr 2009
Ministerial Approval and Gazettal : 30 May
2009
Implementation of LALC Risk Assessments
Recommendations to the NSWALC Board
Approval of grants for costs and expenses
Issue 2009/2010 Funding Agreements 1 Jul
2009
THE END
ANY QUESTIONS
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