To support tourist associations in Onslow and Tom Price.

Council will contribute to the Onslow and Tom Price Tourist Committees annually providing it is satisfied that each committee is providing a worthwhile tourist service.

To establish the Council’s position on requests from organisations to lease vehicles on its behalf.

All requests for Council to lease vehicles on behalf of any Association within the Shire of Ashburton shall be considered individually by the Council and assessed on its merits.

To make clear the fact that Council will not engage in practices that will result in sales tax avoidance by a third party.

Under no circumstances shall Council become involved in the purchase of goods or assets on behalf of any individual, group or organisation where it is obvious that the intent is to avoid the payment of sales tax.

To document the Council’s support for the Pilbara Mobile Counselling service.

Council will allow the Pilbara Mobile Counselling Service to purchase fuel to the value of $1,500 on a Shell Card Account. Charges for fuel purchased in excess of this amount will be backcharged to the Association. $1,500 will be allocated for vehicle maintenance from Account 85280 – Donation to Welfare Groups.

To provide clear guidelines as to which organisations the Council will provide financial assistance for.

Requests for contributions or donations to Charities registered outside of the Shire of Ashburton, with the exception of the Royal Flying Doctor Service, will not be supported.

All such requests will be listed in the Information Bulletin for the information of Councillors.

To ensure that any organisation that is financially assisted by Council is accountable for the use of such funds.

Before making a non-specific contribution to any organisation Council requires a statement from that organisation detailing the manner in which the funds will be spent. A financial statement is to be presented to Council at the end of the appropriate financial year showing how the money was expended.

This policy supports local businesses and service providers by giving them preference in all tenders and requests for the supply of goods and services.

Council will give priority preference to contractors/suppliers on the following basis providing they are competitive in regard to specification, service, delivery and price and that such preference does not contravene the National Competition Policy.

First: Those organisations substantially trading from a recognised business address in the Municipality.

Second: Those organisations substantially trading from a recognised business address in the Pilbara Region, ie local government areas of Ashburton, Roebourne, East Pilbara and Port Hedland.

Third: Western Australian Based Companies.

Fourth: Australian Companies and Australian-made products.

Council will forward advice of tenders/contracts to local suppliers, contractors, or Chamber of Commerce where it is known that the supplier or service exists locally.

To set fees for applications as prescribed in Clause 17 of the Shire of Ashburton Local Law Relating to Trading in Public Places.

For the purpose of this Policy, the following definitions shall apply.

(a) "Town Centre Area" means any land in Tom Price, Paraburdoo and Onslow within the marked areas shown on the maps in Attachment 1.

(b) "Rest of the Shire" means the whole of the Shire of Ashburton excluding the areas contained within the marked areas shown on the maps in Attachment 1.

 

2. Fees and Charges

Applications made pursuant to the Shire of Ashburton Local Law Relating to Trading in Public Places shall be subject to the following fees and charges:

(a) Application and Renewal Fees (non refundable):

$30.00

(b) Licence Fees:

(i) Trading anywhere in the District including trading in a Public Place within Town Centre Area:

$50.00 per day, to a maximum of $1,500 in any 12 month period.

(ii) Trading anywhere in the District excluding trading in a Public Place within a Town Centre Area:

$25.00 per day, to a maximum of $750 in any 12 month period.

Any application for any 12 month period entitles the licensee to trade anywhere within the district or such places as stated on the licence.

 

To provide guidelines for the preparation of the financial report.

The financial report is a general purpose financial report, which will be prepared in accordance with applicable Australian Accounting Standards and the Local Government Act 1995 and accompanying regulations. The report will also be prepared on the accrual basis under the convention of historical cost accounting.

The purpose of this Policy is to ensure:

Council conforms with its fiduciary responsibilities under Section 6.14 of the Local Government Act and Section 18 (1)(a) of the Trustees Act 1962 (as amended) (the "Prudent Person" rule) See Attachment 1;

Council at all times has in place a current set of policies and delegations for its Investment Officers;

adherence to the guidelines and policies outlined in this document by all officers with delegated authority to invest/control surplus funds.

This policy is to be made available to all employees involved in daily investment decisions, as well as to those who approve Council’s policies.

Notwithstanding the introduction of this Policy Document, the General Financial Management obligations imposed on Chief Operating Officers under the Local Government Act 1995 and the Local Government (Financial Management) Regulations 1996 should at all times be complied with.

Annual reviews of this document will be conducted (supported by external opinion) to ensure the guidelines and policies herein remain current.

The objective of this policy is to:

To take a conservative approach to investments, but with a focus to add value through prudent investment of funds.

To achieve a return at least consistent with the BBSW (90 day average rate), when measured over rolling one year periods.

To achieve an adequate level of diversification to spread risk.

To achieve a high level of security by using recognised ratings criteria.

To have ready access to funds for day-to-day requirements, without penalty.

The Council and delegated investment officers have fiduciary responsibilities under Section 6.14 of the Local Government Act and therefore risks must be kept to a minimum, particularly credit risk. In this respect, the schedule of Authorised Investments (Section 10.0) and limits applying to counterparties (Section 11.0) are to be adhered to. This will ensure delegated officers comply with the "Prudent Person" rule.

Council recognises its obligations under the "Prudent Person" rule by seeking to adhere to an investment policy with a conservative bias. Council also seeks to add value to the investment portfolio through product selection and diversification.

2.0 Risk Management Controls

Risk management controls include:

2.1 Documented authority to invest (refer attachment 2).

2.2 Documented investment procedures.

2.3 Documented back-up procedures, i.e:

staff

systems, operations

checking controls, supervision

2.4 Management reporting:

monthly investment report (refer Section 12.1)

monthly statements to be received from counterparties with the exception of term deposits.

The General Financial Management obligations imposed on Chief Operating Officers, under the Local Government Act 1995 and the Local Government (Financial Management) Regulations 1996, must at all times be complied with.

3.1 Liquidity ratio:

at least 70% of total investment portfolio must be liquifiable within 10 days.

3.2 Cash flow report to be monitored at least weekly to ensure cash funds are available to meet commitments.

3.3 Maturity analysis report to be monitored at least monthly:

report to include long-dated assets and liabilities to monitor any mismatch/exposure to interest rate movements.

 

4.0 Long-Term Investments / Reserves

Where a Reserve is to be established for long-term projects, long service leave or other contingent liabilities, other investments may be appropriate.

Council approval is required in each case where investments fall outside those listed in Section 11.0. It may be appropriate to seek external advice in the selection of proposed investments.

Investments which are targeted for long-term projects are to be controlled separately from other funds. Section 11.0 (B) lists a range of investments which could be suitable for these purposes.

5.0 Diversification

5.1 Portfolio of investments must be diversified to ensure a spread of credit risk and market risk. (Refer to Section 11.0 for guidelines.)

Even if funds are to be invested 100% in Bank Deposits / Securities, diversification between counterparties is desirable.

5.2 No more than 70% of funds may be invested in one organisation without Council approval.

6.0 "Prudent Person" Rule

Attachment 1 outlines the legislative background of the "Prudent Person" rule.

These guidelines must be adhered to. In case of conflict, the "Prudent Person" ruling must apply, or Council approval obtained.

By way of background, the "Prudent Person" rule replaces the previous legislation which stipulated that all investments had to fall within the list of Authorised Trustee Investments (in accordance with Part III of the Trustees Act 1962), otherwise approval of the Minister for Local Government was required, on the advice and recommendation of the Treasurer (Local Government Act 1995, Section 6.14 (1)).

7.0 Delegated Authority to Invest

Officers authorised to make investment decisions and sign investment lodgments, withdrawals etc, are outlined in Attachment 2 and Council's Delegated Authority Register.

In case of annual leave or absence, the Chief Executive Officer may approve delegations for relieving persons, under advice to Council.

It is important to note that any investments made are to comply with the Authorised Investments List (Section 10.0) and Authorised Counterparty and Exposures Limits (Section 11.0).

 

8.0 Authorised Investments

Authorised investments are contained in Attachment 3 - Part 1. These investments may be made by authorised officers subject to the investment policies outlined in this document being adhered to.

Other investments, as outlined in Attachment 3 - Part 2 require approval by Council.

9.0 Authorised Counterparties and Exposure Limits

Counterparty Details Minimum Maximum Exposure

Rating Investment Portfolio

11.2 Managed (Cash/Treasury) AAm 75%

Funds (Unit Trusts) with an AAf

average duration of less than

1 year.

11.3 Managed (Cash/Treasury) AAf 30%

Funds (Unit Trusts) with an

average duration of less than

3 years.

11.4 Managed (Fixed Interest) Funds AAf 20%

(B) RESERVES 11.5 Commonwealth Government A-1 < 1 year 50%

INVESTMENTS (Max. term 10 years) AA > 1 year 20%

11.6 State Government A-1 < 1 year 50%

(Max. Term 7 years) AA > 1 year 20%

11.7 Other Financial Institutions A-1 (short) 10%

(maximum term 2 years) A (long)

11.8 First Mortgages, where < 5 years 15%

loan-to-value ratio does

not exceed 60% of a sworn

valuation

indirect, and unlisted trusts

11.10 Infrastructure Funds 20%

11.11 Managed Equity Trusts 20%

11.12 Listed Australian Shares 10%

11.13 Unit Trusts - International Equities 15%

NOTE: a) If investing directly into securities (Sections 11.5 to 11.8) a maximum weighted average term of 3 years is to apply.

b) If investing direct (under Sections 11.5 to 11.13) a maximum of 50% of total investment portfolio applies.

Each month an investment report must be produced to the Chief Executive Officer.

The report will summarise:

liquidity levels (cash flow report)

maturity profile

investment spread (asset classes)

counterparty exposure versus limits

returns versus benchmarks

any breaches of authority

11.2 Reviews

Annual reviews of the Investment Guidelines and Policy Document must be provided, with independent opinion as to suitability and compliance.