Date August 24, 2017
Hon David Templeman
Minister for Local Government
cc
Ms. Jenni Law
Director Local Government Regulation & Support
Department of Local Government
Dear Minister and Ms. Law
I refer you to the ‘Draft Report- Fraud and Risk Management Assessment’ by Moore Stephens which evaluates that the Shire of York Administration provides an ‘Extreme Risk’ in the important areas of Probity, Financial Loss and IT Security and Protection to its ratepayers and community.
Such an assessment should be considered unacceptable in any level of industry and/or government and must be of extreme concern to both of you.
The assessment could be considered to cover the current 2017/2018 Financial Year as it appears protective mechanisms of a sufficiently high standard have yet to be put in place to prevent the extreme risk factors (and their results) continuing well into the future.
Please read the following published article that should provide an average ratepayers insight into, and negative assessment of, a malfunctioning Local Government Area Administration to which he/she is forced to pay rates. I am sure York is not alone.
Given any possible interpretation of these failures, supported by several thousands of dollars in individual property rates, and the millions of dollars of rates collected to prop-up failure- this is money ill spent!
Yours sincerely
David Taylor.
Your reference- Shire of York Ordinary Council Meeting August 28, 2017 Agenda Item SY101-Appendices-Audit Committee Meeting Minutes.
If the Shire of York was listed on the Australian Stock Exchange as a shareholder company it could be told to cease trading.
To any investor it could be considered a near comatose business, a rapidly exsanguinating corporate corpse to be asset stripped, except there are few assets worth pillaging.
So it can consider itself extremely lucky that it is a Local Government Shire Council.
What has now come to light is a 64 page external DRAFT FRAUD & ERROR RISK MANAGEMENT ASSESSMENT by an independent auditor.
It should have the WA Auditor General tearing his hair-out, if he had a remit, and put the Minister for Local Government, David Templeman, on notice to how much the Local Government Act 1995, needs to be improved. (This re-evaluation is to be undertaken in 2018.)
In addition, how much the penalties for breaches of this act (deliberate or through lack of knowledge) should be increased.
This risk analysis is nothing to do with ex-CEO, Ray Hooper, his courtiers and their regime. It focuses on the 2016/17 SHIRE OF YORK FINANCIAL AUDIT with the responsible officer being Suzie Haslehurst, reporting directly to the CEO, Paul Martin.
These senior shire executives have now been at the helm for long enough (and should be experienced enough in dealing with these matters) for the buck to stop with them.
One particularly damaging revelation is that the current Shire of York has no BUSINESS CONTINUITY PLAN available for external review and analysis and no employee complaints procedures in place.
A Business Continuity Plan is a required developed strategy to deal with threats and risks facing any form of business/company/government to ensure personnel and assets are fully protected from any type of disaster, financial or otherwise. It is considered to be essential!
What Employee Complaints Procedures mean should be self evident, without any need for explanation, and certainly puts the Shire at odds with the Australian Services Union and Fair Work Australia.
The initial fun and games begin with the fact that Shire of York staff members operate the shop at the swimming pool for personal gain, without any form of lease agreement, but under an arrangement that ‘what is yours- is mine’!
Then there is the Dog Pound management that runs a private boarding kennel for dogs from other shires. For a fee of course!
There are no checks on Shire of York fuel supply with regard to what is called ‘inventory shrinkage’. This can be a euphemism for ‘help yourself to free fuel’.
‘Cash handling’ has been identified as requiring improvement which could include the installation of additional CCTV facilities at the York Recreation and Convention Centre, York Memorial Swimming Pool, the Residency Museum, York Visitors Centre and the York Administration Centre.
Its meaning is the receiving and giving money in any business transaction, including at point of sale. The main problems associated with ‘cash handling’ are lack of due diligence, no paper trail left to undertake an accurate audit assessment and security flaws.
As ‘cash handling’ is usually undertaken by employees, or in some cases volunteers – the use of CCTV cameras at point of sale is a surveillance mechanism, suggesting that staff members, and volunteers, are suspected of theft which, like fraud, is a criminal offence.
Then the assessment gets really serious.
It comes in the form of the SHIRE OF YORK RISK IMPROVEMENT IMPLEMENTATION PLAN that, in York’s case, has a rating from MEDIUM to EXTREME and must be in place for the 2018/2019 Financial Year.
Of the 39 RISK NO’s observed and listed for improvement, 12 are identified as Medium Risk, 25 as High Risk and 3 as Extreme Risk.
Unfortunately the EXTREME RISK assessment shows the Shire of York’s failure in the most rudimentary, but most important governance requirements of all, PROBITY, FINANCIAL LOSS (including unauthorized purchasing) and IT SECURITY AND PROTECTION.
PROBITY, in the case of Local Government administrative compliance is the ability to adhere to all the mandatory regulations and necessities under all terms and conditions of the Local Government Act 1995.
(The Shire of York apparently has an endemic and systemic inability to undertake this basic function.)
This is now, not just the past decade.
FINANCIAL LOSS is an extreme risk that is totally unacceptable. It currently includes unauthorised purchasing and failure to undertake proper tendering processes for outsourced work requirements. This may well include the neglect to obtain quotes for business planning reviews such as the one now being undertaken by SGL Consulting Group Australia Pty Ltd.
Part of any financial loss could be equated to the York Recreation and Convention Centre as a single entity. A solution for which is an absolute priority, but is still ongoing and in the hands of another consultant, because the Shire of York has not got the balls to make its own decision based on its own investigative and consultative abilities and take the necessary, decisive action.
This is now, not part of Ray Hooper’s tenure.
IT SECURITY AND PROTECTION is an absolute must. It covers all shire records and correspondence including finances, all its Intellectual Property, legal documents, ratepayer records, everything.
There are apparently no proper protective mechanisms in place, including backup, recovery and security plans
This is now, despite the fact that in 2015, the then Department of Local Government and Communities advised the shire that its record keeping and record access systems were inadequate and potentially in breach of sections of the State Records Act, 2000.
All of the above should be the reason why the Audit Committee ‘Requests (should be requires) the CEO to identify organizational savings as part of the Mid-Year Budget Review to balance the budget’.
It is assumed that ‘organizational’ means the Shire of York and the budget means the Shire of York Budget for the latter half of the 2017/2018 Financial Year, leading into the 2018/2019 Financial Year.
This suggests that the Audit Committee my consider that the Shire of York Budget, its failings and financial losses are the total responsibility of the CEO, Paul Martin.
However that would mean that FINANCIAL LOSS is considered by the Shire of York Council to be an essential part of the CEO’s Key Performance Indicators. This may be, but is probably not, the case.
The Executive Manager Corporate and Community Services is Ms. Suzie Haslehurst. Her direct responsibilities encapsulate all the EXTREME RISK areas identified in the FRAUD AND RISK MANAGEMENT ASSESSMENT.
They include Governance (PROBITY), Finance (FINANCIAL LOSS) and Information Technology (IT SECURITY AND PROTECTION.)
Also Human Resources ( no employee complaints procedure) and the York Memorial Swimming Pool (where a private business is allowed to operate in a Shire owned, public facility- and additional cash handling CCTV surveillance is required) and the York Recreation and Convention Centre that allegedly requires ‘Till-Cam’.
Given all of the above, a performance review of Ms. Suzie Haslehurst, should be undertaken immediately and the results provided to the Shire of York Council as a matter of urgency.
Nothing is improving- and it is time for ratepayers to demand, Probity, Financial Accountability and the proper Protection of Shire of York Records- which are the paid for property of ratepayers held on behalf-of-the community.
David Taylor.
Hon David Templeman
Minister for Local Government
cc
Ms. Jenni Law
Director Local Government Regulation & Support
Department of Local Government
Dear Minister and Ms. Law
I refer you to the ‘Draft Report- Fraud and Risk Management Assessment’ by Moore Stephens which evaluates that the Shire of York Administration provides an ‘Extreme Risk’ in the important areas of Probity, Financial Loss and IT Security and Protection to its ratepayers and community.
Such an assessment should be considered unacceptable in any level of industry and/or government and must be of extreme concern to both of you.
The assessment could be considered to cover the current 2017/2018 Financial Year as it appears protective mechanisms of a sufficiently high standard have yet to be put in place to prevent the extreme risk factors (and their results) continuing well into the future.
Please read the following published article that should provide an average ratepayers insight into, and negative assessment of, a malfunctioning Local Government Area Administration to which he/she is forced to pay rates. I am sure York is not alone.
Given any possible interpretation of these failures, supported by several thousands of dollars in individual property rates, and the millions of dollars of rates collected to prop-up failure- this is money ill spent!
Yours sincerely
David Taylor.
RISKY BUSINESS (The Shire of
York Inc.)
Your reference- Shire of York Ordinary Council Meeting August 28, 2017 Agenda Item SY101-Appendices-Audit Committee Meeting Minutes.
If the Shire of York was listed on the Australian Stock Exchange as a shareholder company it could be told to cease trading.
To any investor it could be considered a near comatose business, a rapidly exsanguinating corporate corpse to be asset stripped, except there are few assets worth pillaging.
So it can consider itself extremely lucky that it is a Local Government Shire Council.
What has now come to light is a 64 page external DRAFT FRAUD & ERROR RISK MANAGEMENT ASSESSMENT by an independent auditor.
It should have the WA Auditor General tearing his hair-out, if he had a remit, and put the Minister for Local Government, David Templeman, on notice to how much the Local Government Act 1995, needs to be improved. (This re-evaluation is to be undertaken in 2018.)
In addition, how much the penalties for breaches of this act (deliberate or through lack of knowledge) should be increased.
This risk analysis is nothing to do with ex-CEO, Ray Hooper, his courtiers and their regime. It focuses on the 2016/17 SHIRE OF YORK FINANCIAL AUDIT with the responsible officer being Suzie Haslehurst, reporting directly to the CEO, Paul Martin.
These senior shire executives have now been at the helm for long enough (and should be experienced enough in dealing with these matters) for the buck to stop with them.
One particularly damaging revelation is that the current Shire of York has no BUSINESS CONTINUITY PLAN available for external review and analysis and no employee complaints procedures in place.
A Business Continuity Plan is a required developed strategy to deal with threats and risks facing any form of business/company/government to ensure personnel and assets are fully protected from any type of disaster, financial or otherwise. It is considered to be essential!
What Employee Complaints Procedures mean should be self evident, without any need for explanation, and certainly puts the Shire at odds with the Australian Services Union and Fair Work Australia.
The initial fun and games begin with the fact that Shire of York staff members operate the shop at the swimming pool for personal gain, without any form of lease agreement, but under an arrangement that ‘what is yours- is mine’!
Then there is the Dog Pound management that runs a private boarding kennel for dogs from other shires. For a fee of course!
There are no checks on Shire of York fuel supply with regard to what is called ‘inventory shrinkage’. This can be a euphemism for ‘help yourself to free fuel’.
‘Cash handling’ has been identified as requiring improvement which could include the installation of additional CCTV facilities at the York Recreation and Convention Centre, York Memorial Swimming Pool, the Residency Museum, York Visitors Centre and the York Administration Centre.
Its meaning is the receiving and giving money in any business transaction, including at point of sale. The main problems associated with ‘cash handling’ are lack of due diligence, no paper trail left to undertake an accurate audit assessment and security flaws.
As ‘cash handling’ is usually undertaken by employees, or in some cases volunteers – the use of CCTV cameras at point of sale is a surveillance mechanism, suggesting that staff members, and volunteers, are suspected of theft which, like fraud, is a criminal offence.
Then the assessment gets really serious.
It comes in the form of the SHIRE OF YORK RISK IMPROVEMENT IMPLEMENTATION PLAN that, in York’s case, has a rating from MEDIUM to EXTREME and must be in place for the 2018/2019 Financial Year.
Of the 39 RISK NO’s observed and listed for improvement, 12 are identified as Medium Risk, 25 as High Risk and 3 as Extreme Risk.
Unfortunately the EXTREME RISK assessment shows the Shire of York’s failure in the most rudimentary, but most important governance requirements of all, PROBITY, FINANCIAL LOSS (including unauthorized purchasing) and IT SECURITY AND PROTECTION.
PROBITY, in the case of Local Government administrative compliance is the ability to adhere to all the mandatory regulations and necessities under all terms and conditions of the Local Government Act 1995.
(The Shire of York apparently has an endemic and systemic inability to undertake this basic function.)
This is now, not just the past decade.
FINANCIAL LOSS is an extreme risk that is totally unacceptable. It currently includes unauthorised purchasing and failure to undertake proper tendering processes for outsourced work requirements. This may well include the neglect to obtain quotes for business planning reviews such as the one now being undertaken by SGL Consulting Group Australia Pty Ltd.
Part of any financial loss could be equated to the York Recreation and Convention Centre as a single entity. A solution for which is an absolute priority, but is still ongoing and in the hands of another consultant, because the Shire of York has not got the balls to make its own decision based on its own investigative and consultative abilities and take the necessary, decisive action.
This is now, not part of Ray Hooper’s tenure.
IT SECURITY AND PROTECTION is an absolute must. It covers all shire records and correspondence including finances, all its Intellectual Property, legal documents, ratepayer records, everything.
There are apparently no proper protective mechanisms in place, including backup, recovery and security plans
This is now, despite the fact that in 2015, the then Department of Local Government and Communities advised the shire that its record keeping and record access systems were inadequate and potentially in breach of sections of the State Records Act, 2000.
All of the above should be the reason why the Audit Committee ‘Requests (should be requires) the CEO to identify organizational savings as part of the Mid-Year Budget Review to balance the budget’.
It is assumed that ‘organizational’ means the Shire of York and the budget means the Shire of York Budget for the latter half of the 2017/2018 Financial Year, leading into the 2018/2019 Financial Year.
This suggests that the Audit Committee my consider that the Shire of York Budget, its failings and financial losses are the total responsibility of the CEO, Paul Martin.
However that would mean that FINANCIAL LOSS is considered by the Shire of York Council to be an essential part of the CEO’s Key Performance Indicators. This may be, but is probably not, the case.
The Executive Manager Corporate and Community Services is Ms. Suzie Haslehurst. Her direct responsibilities encapsulate all the EXTREME RISK areas identified in the FRAUD AND RISK MANAGEMENT ASSESSMENT.
They include Governance (PROBITY), Finance (FINANCIAL LOSS) and Information Technology (IT SECURITY AND PROTECTION.)
Also Human Resources ( no employee complaints procedure) and the York Memorial Swimming Pool (where a private business is allowed to operate in a Shire owned, public facility- and additional cash handling CCTV surveillance is required) and the York Recreation and Convention Centre that allegedly requires ‘Till-Cam’.
Given all of the above, a performance review of Ms. Suzie Haslehurst, should be undertaken immediately and the results provided to the Shire of York Council as a matter of urgency.
Nothing is improving- and it is time for ratepayers to demand, Probity, Financial Accountability and the proper Protection of Shire of York Records- which are the paid for property of ratepayers held on behalf-of-the community.
David Taylor.
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