structureofinternalfinancialcontrolsinformationpaper.docVIP

MODEL CONTRACTS AND TEDERING TOOLKIT FOR WASTE MANAGEMENT WASTE COLLECTION, CONTROL AND DISPOSAL FINANCIAL ISSUES DISCUSSION PAPER  TABLE OF CONTENTS TABLE OF CONTENTS 2 1. Introduction 3 2. What does the Legislation require? 3 3. Risk Management and Internal Control 4 3.1 Collection 4 3.2 Disposal 4 3.3 Recovery 4 3.4 Internal Financial Control 4 4. Internal and External Auditing 5 5. Audit Committee 6 5.1 Service provided by Council 6 5.2 Resource Sharing 6 5.3 Regional Subsidiary 6 5.4 Contracting Out 7 6. Long Term Financial Planning and Sustainability 7 6.1 Operating 7 6.2 Remediation 7 7. Key Performance Indicators 8 8. Shared Services 8 Appendix One – Legislative Responsibility 9 Appendix Two – Regional Subsidiary Legislative Requirements 11 Appendix Three – Accounting for Reinstatement Provisions 19 1. Introduction Waste collection and disposal is one if the most significant activities undertaken by Local Government. This paper deals with financial issues associated with the provision of this service. The purpose of this information paper is to provide a practical approach to assist Councils when they are making waste and resource recovery decisions. The paper draws on much of the material released through the LGA’s Financial Sustainability Program and should be read in conjunction with other information papers through that Program which highlight the increasing demands on Councils and the importance of efficiently managing the delivery of services. The following Financial Sustainability Information Papers can be accessed from the LGA website at: .au/goto/fsp. Financial Sustainability An Overview of Audit Mechanisms Audit Committees Scope of External Audit - Audit Specification Efficiency and Economy Audits Infrastructure and Asset Management (Policy and Planning) Service Delivery Framework including the Role of Shared Services Long-term Financial Plans Local Government Financial Indicators Debt M