Below are some extracts from the minutes of the February Audit Committee Meeting. We think they speak for themselves!
“Mr McLean requested that the Audit Committee be kept updated with respect to the dispute resolution process between Council and Hansen and Yuncken”.
“Financial Sustainability Risk matrix
The meeting was advised that on the basis of the Council’s existing accounting policies for Aged Care Bonds, Council’s liquidity ratio is projected to exceed 100%. If accounting policies were changed, ratios could be impacted. The Chairman asked that management review Council’s options around the liquidity ratio, including deferral of payments of the Defined Benefits Superannuation Fund liability shortfall.
Mr McLean raised the question for follow up as to whether any liquidity covenants existed around the borrowings for GESAC”.
Glen Eira Debates 
March 19, 2013 at 3:05 PM
McLean’s questions are a good indication of the workings of the audit committee methinks and how much Newton keeps close to his chest. Theres millions involved here and they know nothing.
March 19, 2013 at 5:39 PM
It’s impossible for an audit committee to be on top of everything I would think. This doesn’t excuse them from having to request information on two very important problems that have the potential to seriously impact on council’s finances. There’s the long running dispute with Hansen and Yuncken where money was being held back for nearly 2 years already if I recall correctly. Then there’s the loan for Gesac – years old too. The committee is charged with financial oversight but it sounds like they have not even seen the contracts and have been told nothing about the legal wrangles. What then is open to debate is whether or not such a committee should have to ask for this information and if so, then why it’s taken them years to show the proper interest.