Motion to Accept: Lipshutz/Magee
LIPSHUTZ: ‘One of the issues (looked at) is risk management….made very clear in the preamble that all councillors can attend meetings and not just members of the committee….risk management…..has taken up a great deal of time at committee level ….because that’s something that’s very important. (If a disaster happened then it’s important that) this council could be up and running very quickly (and Audit Committee looks at this and makes sure it happens)….Fraud prevention (is also important because council is big business) and deals with many millions of dollars and so many people on staff. Given that there is always the possibility of fraud …..happily this council hasn’t had that….(due to prevention)….and honesty of our employees….but you only need one to make it big….(the Audit committee thus provides) oversight….(Other changes to the charter)…. enhance the role of the Audit Committee and make it clearer (as to what the committee does)….’
Magee declined to speak. Motion passed unanimously. Readers will of course note that many of the issues we’ve highlighted in the past (such as the ‘permanent’ membership of Lipshutz, Gibbs and McLean) did not get a mention. Reading this morning’s Age, one article by Barry Jones struck us as spot on in relation to the level of debate/discussion in this council. The last section of the article is included below:
“Despite the exponential increases in public education and access to information in the past century, the quality of political debate appears to have become increasingly unsophisticated, appealing to the lowest common denominator of understanding.
In 1860, in New York Abraham Lincoln began his campaign for the presidency with a very complex speech about slavery at the Cooper Union, 7500 words long, complex and nuanced. All four New York newspapers published the full text, which was sent by telegraph across the nation, widely read and discussed. In 1860 the technology was primitive but the ideas were profound and sophisticated. In 2011 technology is sophisticated but the ideas uttered by presidential aspirants are embarrassing in their banality, ignorance and naivety.
It is instructive to compare the debate in the Victorian Parliament in 1872 on the Education Act and the debate in 2006 for the Education and Training Reform Act, a consolidation of legislation passed in the previous 134 years. Which debate was of higher quality? In 1872 MPs were discussing ideas – especially ”free, secular and compulsory” education, while in 2006 all the speeches were about management and training as a factor in job creation. In 2006 I suggested that it might be time to actually define ”Education”, something omitted in the draft bill, and to explore its role in personal and community life, but this was rejected as too ambitious.
In 1872 the minister, J. Wilberforce Stephen, quoted the poet and educational reformer Matthew Arnold eight times in his speech and expressed the hope that the legislation would ”set an example to our progenitors in England”. There was no comparable ambition in 2006. No ideas on education were mentioned and it is doubtful how many MPs in 2006 would have recognised Arnold’s name, even as the author of Dover Beach.”
July 21, 2011 at 12:03 PM
The speaker before Lincoln and Gettysburg spoke for over 2 hours. Lincoln following address didn’t take 2 minutes. Which one is remembered.
However! I do get your what your are on about, its all about quality, honesty and representation. Which all is in short supply in our city.
July 21, 2011 at 12:55 PM
Elections are round the corner that’s for sure. That’s why the gang suddenly care about car parking, building heights, and so on. Gosh even Lipshutz is trying to turn into a populist. But, it’s not what they say but what they don’t say that’s important.
July 21, 2011 at 1:58 PM
Lipshutz on the committee is one thing but having two (non) independent members there in Gibbs and McLean for over 36 years between them is a joke and does not even follow the audit committees own charter. Time for a change.
July 21, 2011 at 4:16 PM
The charter as it stands is a wonderful document. The only problem is that there is a gulf a mile wide between what it says and what seems to actually happen. These sentences are worth noting –
(1) “The Chief Executive Officer, Chief Financial Officer and internal auditor (whether a member of staff or contractor) should attend all meetings, except when the Committee chooses to meet in camera.” Presumably this leaves the door wide open for the appointment of an employee of council. Does this ensure real independence, especially when your job could hinge on the say of the CEO?
(2) “The Audit Committee shall after every meeting forward the minutes of that meeting to the next ordinary meeting of the Council, including a report explaining any specific recommendations and key outcomes.” This doesn’t happen. The minutes of the 25th February 2011 meeting didn’t get tabled at council until the 5th April. The ones from 20th August 2010 didn’t appear until 21st September even though there was a council meeting on the 31st August 2010. This is a regular occurrence. Minutes hardly ever appear at the next council meeting.
(3) “Following the Code of Conduct of the Council and Best Practice Guidelines on Audit Committees as issued from time to time”. This is a strange one since there is no code of conduct for COUNCIL. There’s a Councillor Code of Conduct, and a secret Staff Code of Conduct, but not an overall one for COUNCIL. The various municipal inspectors have of course recommended that there be a Code of Governance, which would in effect cover the issue of a Code of Conduct, but of course, this doesn’t exist. As for adopting Best Practice Guidelines in regard to the appointments of committee members, we’ve already made our views clear on this!
(4) “Maintaining, by scheduling regular meetings, open lines of communications among the Council, the internal auditors, the Auditor-General and his agent to exchange views and information, as well as confirm their respective authority and responsibilities.” We’ve seen how well these ‘open lines of communication work’ when Newton can provide the excuse that councillors did not ‘request’ information from the committee over the mulch heap fiasco!
(5) “No independent member is to be appointed for more than two consecutive three year terms unless Council resolves otherwise”. Council has ‘resolved’ to reappoint (ad nauseum) Gibbs and McLean. Only problem is that this has been done in camera, deliberately hidden away, and then no official announcement made after the event. Unless residents are prepared to go through agenda items with a fine tooth comb, and decipher the gobbledygook, then they wouldn’t be any the wiser. If there’s nothing to hide, or nothing to worry about, then why the games of cloak and dagger?
(6) “An independent minute taker shall be responsible for keeping the minutes of meetings of the Committee and circulating them to Committee members, (after approval by the Chairman) and others as required. An appropriate officer shall act as independent minute taker to the
Committee”. We wonder if this isn’t an oxymoron – ie. An ‘independent note taker’ is an ‘appropriate officer’?!!!!
(7) “Review any abnormal transaction, including current or pending litigation claims or other contingencies which management or legal counsel believe is likely to have a material effect on the financial position or operating results of Council and the manner in which those matters have been disclosed in the financial statements” This one is really a can of worms! Did the Audit committee review the potential litigation in the following instances – the charges laid by Vic Roads? The bullying charges against Penhalluriack? And probably plenty more. Yet, try to find anything listed in the Audit Committee minutes of these instances? How’s that for openness and transparency?
(8) “Investigation of significant instances of employees or Council’s conflict of interest, misconduct or fraud”. Did they investigate the potential conflict of interest with Lipshutz and Tang over the Frisbee affair? Was a potential conflict of interest ever noted by Lipshutz if it was discussed?
(9) “Consider the adequacy of actions taken to ensure that the material business risks have been dealt with in a timely manner to mitigate exposures to Council”. The mulch heap affair which took from September to at least Feb to get any action? The drainage problems and emergency plan that is set to be completed only in 2012?
Charters are wonderful things when they are adhered to scrupulously. Otherwise they are nothing more than window dressing.
July 21, 2011 at 8:39 PM
We have never been given any explanation as to why the finance committee did not meet for two years when it was constituted, and now why it no longer exists. Without a finance committee the only oversight comes from the audit committee and recent times have shown how ineffectual this group is. It’s about time that this little group was split up, the finance committee returned, and different councillors placed on each of these committees. Gibbs and McLean have to be replaced. It’s just surprising that they continue. I doubt that many other external members would see this as appropriate behaviour.
July 21, 2011 at 9:48 PM
I urge all readers of the above garbage to simply read all the Victorian Auditor General Reports since the inception of Glen Eira, and then compare the financial position of our Municipality with other suburban Councils.Glen Eira is one of the best financially run Councils in Victoria and this has a great deal to do with the great driving force of the current CEO, his CFO’s and staff.The Audit Committee,headed by two very experienced Chartered Accountants has been invaluable in assisting Council to ensure our AAA Financial position.
July 21, 2011 at 10:16 PM
One man’s garbage is another man’s treasure. A big thank you to the owners of this site for bringing to light all those nasty little goings on in this council and questioning what needs to be questioned.
July 21, 2011 at 10:39 PM
When you flog off every piece of available real estate, introduce the highest rates in Victoria, downgrade services, wash your hands of all social obligatiions, install overpaid yes men as subordinates, and then borrow millions upon millions you’re well and truly up there with the greats of managerial gurus.
July 22, 2011 at 9:39 AM
The social obligations are met quite adequately in glen eira. They don’t collect huge cash from parking fines like port phillip. Most people are happy with the council. They waste a bit of dough but all governments do that. Thought about moving to port phillip where they waste money on climate change and social inclusion policies. Lucky we don’t have to put up with that crap.
July 22, 2011 at 5:16 AM
Interesting that the Victorian Auditor General was replaced as external auditor by a small chartered accounting firm by the name of Mclean – any relationship to the “independent” member of the committee? How would that be for governance?