Recommendations for corruption prevention

The Commission has made nine corruption prevention recommendations in this matter. Since the City of Botany Bay Council has now been amalgamated, recommendations relating to Council processes and governance arrangements are made to Bayside Council. Recommendations concerning the local council governance framework are made to the NSW Government.

Recommendation 1

That Bayside Council reviews its financial processes and makes any necessary changes to ensure that:

  • its vendor master file is subject to appropriate segregation and review-based controls
     
  • sufficient segregations exist in its invoice payment processes (including the introduction of a three-way match arrangement) to manage the risks associated with fraudulent payments
     
  • operational managers have visibility over, and involvement in, setting budgets and monitoring expenditure against these budgets
     
  • adequate segregations exist across different financial processes.

Recommendation 2

That Bayside Council undertakes a review of the control frameworks governing processes that are vulnerable to corruption (including those related to procurement, invoice payment, fleet management and charge-card usage) and implements any recommendations arising from the review.

Recommendation 3

That Bayside Council reviews the position descriptions of key operational and financial roles to ensure that they include the required skill sets and qualifications.

Recommendation 4

That Bayside Council ensures that the implementation of both internal and external audit recommendations is considered by the elected body when evaluating the performance of the general manager.

Recommendation 5

That Bayside Council undertakes a risk assessment (including an assessment of fraud and corruption risks) to inform its internal audit plan.

Recommendation 6

That Bayside Council ensures that its internal audit function operates independently from management by reporting functionally to its audit committee.

Recommendation 7

That Bayside Council ensures it has a robust system in place to monitor and report on the implementation of internal audit recommendations that is independent from management.

Recommendation 8

That the general manager of Bayside Council conducts a review of the audit committee’s effectiveness and the adequacy of its arrangements to ensure that it fulfils the responsibilities of its charter and provides sufficient assistance to Bayside Council’s governing body on governance processes.

Recommendation 9

That the NSW Government considers adopting a model of local council oversight that is comparable to that applicable to state government agencies. This model could include:

  • mandatory administration and governance directives similar to those that apply to state government agencies
     
  • requirements concerning the composition and operation of audit committees that are similar to those that apply to state government agencies
     
  • the requirement for council general managers to attest that audit committees are operating in accordance with requirements.

 

Response to ICAC recommendations

The action plan posted below has been provided by Bayside Council in response to the ICAC's corruption prevention recommendations. Its publication here is to show the status of the responses. It does not constitute approval or endorsement by the Commission.

Action plan - Bayside Council - Part A

Action plan - Bayside Council - Part B