1. Local Government Planning and Reporting Reforms FINPro Conference 28 February 2014 Amelia Chapman, Manager Sector Performance Mark Davies, Local Government Advisor

2. PERFORMANCE REPORTING 2

3. Implementation process 3 Stage 1 Indicator Development Oct 12 – Jun 13 Stage 2 Pilot Program Jul 13 – Feb 14 Stage 3 Enabling Legislation Aug 13 – Apr 14 Stage 4 Data Collection Jul 14 – Jun 15 Stage 5 Reporting Jul 15 – Sep 15

4. Key deliverables Better practice guides  - Planning and reporting −- Strategic resource plan −- Budget −- Annual report −- Financial statements −- Performance statement −- Audit evidence 4

5. Key deliverables Trial audits CEO reports Trial 2 comparative analysis Regional workshops Work book 5

6. Key dates Local Government Amendment (Performance Reporting and Accountability) Act 2014 – operational 18 Apr 2014 Local Government (Planning and Reporting) Regulations – public consultation Feb-Mar 2014 and operational 18 Apr 2014 Regulatory Impact Statement submissions close 19 Mar michael.concas@dtpli.vic.gov.au or DTPLI GPO Box 2392 michael.concas@dtpli.vic.gov.au www.dtpli.vic.gov.au/localgovernment 6

7. Reporting trial 2 Service performance surveys681 (av.62) Financial performance surveys 64 Sustainable capacity surveys 64 Governance & management checklists 62 7

8. LEGISLATIVE REFORM 8

9. Planning and accountability framework 9

10. General The Act Accounting Standards and Financial Statements defined Standard Statements removed Planning and Reporting documents must be on the web Libraries exempted from Major Initiatives, Performance Indicators and Performance Statement 2013/14 Annual Report to be prepared under existing legislation 10

11. General The Regulations Key terms defined Financial Statement definitions linked to accounting standards Local Government Model Financial Report defined Statement of Capital Works linked to the LGMFR Statement of Human Resources defined Financial Ratios removed 2004 Regulations apply to the 2013/14 Annual Report 11

12. Strategic Resource Plan The Act Financial Statements replace Standard Statements Statement of Non-Financial Resources prescribed by the Regulations Must take account of other plans that commit resources including both adopted plans and future proposed plans 12

13. Strategic Resource Plan The Regulations Financial Statements include a Statement of Capital Works linked to the LGMFR Summary of Planned Capital Works Expenditure by LGMFR classification, expenditure type and funding source Statement of Human Resources Summary of Planned Human Resources Expenditure/EFTs by organisational structure and employment type 13

14. Budget The Act Financial Statements replace Standard Statements Services replace Activities Major Initiatives replace Key Strategic Activities Service Performance Indicators (Outcome) to be included Adopted by 30 June (from 1 Jan 2015) Submitted to Minister within 28 days (including Revised) 14

15. Budget The Regulations Financial Statements include a Statement of Capital Works linked to the LGMFR Detailed List of Capital Works Expenditure by LGMFR classification, expenditure type and funding source Statement of Human Resources Summary of Planned Human Resources Expenditure/EFTs by organisational structure and employment type 15

16. Budget The Regulations Comparatives for all borrowings disclosures (budget for revised budget disclosures) Comparatives and % change for all rates and charges disclosures (budget for revised budget disclosures) General rate in $, general rates raised, assessment numbers and value of land disclosed by type or class Amount raised in respect of each rate or charge and total amount raised Public notice only includes date of council meeting (and reasons for a revised budget) 16

17. Annual Report The Act Standard Statements removed Report of Operations to include: −Progress update on Major Initiatives −Governance & Management Checklist −Service Performance Indicators, Measures and Results Performance Statement to include: −Service Performance (Outcome), Financial Performance and Sustainable Capacity Indicators Measures and Results 17

18. Annual Report The Regulations Report of Operations to include: −Governance & Management Checklist – Sched 1 −Service Performance Indicators, Measures and Results for 3 preceding years (transitional) – Sched 2 −Summary of EFTs by organisational structure, employment type and classification and gender −Other minor edits and changes 18

19. Annual Report The Regulations Performance Statement to include: −Service Performance Indicators (Outcome), Measures and Results for 3 preceding years (transitional) – Sched 3 −Financial Performance Indicators Measures and Results for 3 preceding years (transitional) and 4 future years as per the SRP – Sched 3 −Sustainable Capacity Indicators Measures and Results for 3 preceding years (transitional) – Sched 3 −Description of the municipal district −Explanation of material variations 19

20. Annual Report The Regulations Financial Statements linked to LGMFR (13/14) Financial Statements to include: −Statement of Capital works linked to LGMFR −Note listing grants by type, recurrent, non-recurrent, operating and capital −Note comparing actual v budgeted operating income and expenditure and explanation of variances −Note comparing actual v budgeted capital expenditure and explanation of variances 20

21. KEY THINGS TO REMEMBER! 21

22. Key things to remember! Annual Report 2013/14 – current provisions apply Strategic Resource Plan 2014-18 – new provisions apply Budget 2014/15 – new provisions apply except adoption date Performance reporting – commences 1 Jul 2014 22

23. For more information: Amelia Chapman Manager, Sector Performance 03 9208 3838 performance@dtpli.vic.gov.au www.dpcd.vic.gov.au\localgovernment\performance-reporting

24. Performance reporting 24