02 5 February 2013 Corporate Governance Committee Agenda.PDF

NOTICE
of
CORPORATE GOVERNANCE COMMITTEE
MEETING
Pursuant to the provisions of Section 84(1) of the
Local Government Act 1999
TO BE HELD IN
COMMITTEE ROOM
PLAYFORD CIVIC CENTRE
10 PLAYFORD BOULEVARD, ELIZABETH
ON
TUESDAY, 5 FEBRUARY 2013 AT 4.30 PM
TIM JACKSON
CHIEF EXECUTIVE OFFICER
Issue Date: Thursday, 31 January 2013
PRESIDING MEMBER – MR MARTIN WHITE
Mr Allen Bolaffi Mayor Glenn Docherty Cr Duncan MacMillan JP
Mr Mark McAllister

Corporate Governance Committee Agenda 2 05 February 2013
VISION AND GOALS OF CITY OF
PLAYFORD
Community Wellbeing
Vision: A vibrant, prosperous and just community that is diverse, active, creative, strong,
safe and healthy.
Goal: To improve and support the wellbeing, health and safety of the Playford
community.
Economic Prosperity
Vision: Economic Prosperity refers to the condition of being prosperous with low
unemployment and a general sense of economic wellbeing for the entire
community.
Goal: To improve the economic prosperity of the region.
Environmental Care
Vision: Environmental Care refers to activities and approaches undertaken throughout
Council to deliver services to our community in a sustainable, ecologically sound
and responsible manner.
Goal: To secure a sustainable future for Playford’s community and environment through
leadership, innovation, collaboration and engagement.
Organisational Excellence
Vision: Organisational Excellence is the combined corporate effort that balances the
requirements of stakeholders and the community and increases the delivery of
long-term organisational sustainability through performance excellence.
Goal: A progressive, responsive and innovative organisation that supports the
implementation of the Playford community vision.
RELEVANT OBJECTIVES
Community
Wellbeing
Objective 1.1 A community with access to quality services for all
Objective 1.2 A community that values and participates in learning
Objective 1.3 A healthy, active and connected community
Objective 1.4 A safe and proud community
Economic
Prosperity
Objective 2.1 Quality roads, footpaths and public spaces
Objective 2.2 Local jobs for local people
Objective 2.3 A better place to do business
Objective 2.4 Recognised as a great place
Objective 2.5 Planning for Urban Renewal and Growth
Environmental
Care
Objective 3.1 Protecting and improving our natural environment
Objective 3.2 A City with attractive buildings and landscapes
Objective 3.3 Waste that is managed in a responsible manner
Objective 3.4 Water that is managed in a sustainable manner
Organisational
Excellence
Objective 4.1 Decision making in the best interests of the City
Objective 4.2 Effective leadership and teamwork throughout the organisation
Objective 4.3 A community that is informed and involved
Objective 4.4 Balancing community need with available resources
Objective 4.5 Working towards sustainability

CITY OF PLAYFORD
CORPORATE GOVERNANCE COMMITTEE
CHARTER
Endorsed by Council on 25th
September 2012
1. ROLE OF THE COMMITTEE – TO BE DETERMINED BY THE COMMITTEE
1.1. The Committee is established as an S41 Committee in accordance with the Local
Government Act 1999 (the Act). For the purposes of S126 of the Act, the Corporate
Governance Committee fulfils the role of the City of Playford “Audit Committee”.
1.2. The purpose of the Committee is to review the development and adequacy of principles,
policies and practices of Financial Planning & Reporting, Corporate Governance, Risk
Management and Internal Control and make recommendations to Council as appropriate.
2. AUTHORITY
2.1. The Corporate Governance Committee has no authority to act independently of Council.
The Committee is authorised by Council to undertake work to efficiently and effectively
meet the objectives described by its role and terms of reference.
3. DELEGATIONS
3.1. The Committee has the following delegations from Council:
 Confirm minutes of previous meetings as true and accurate record of proceedings.
 Appoint a presiding member under paragraph 6.5 of the charter.
 Approve the Committee’s annual report
3.2. The Committee will have no standing financial delegations. If required for a specific
purpose, these will be sought from Council at the time or where appropriate, through the
Chief Executive Officer’s delegation.

4. MEETINGS and COMMUNICATION
4.1. The Committee will meet at least four times per year at appropriate times in the financial
reporting cycle and as business needs arise or as decided by Council from time to time.
4.2. Minutes of Meetings (in accordance with legislative requirements) will be kept and
provided to all Committee Members and Elected Members within three working days of
the Meeting.
4.3. A communiqué will be provided to all Elected Members after each meeting by the
Committee to keep Elected Members informed and up to date on the views of the
Committee on various issues and/or the discussion points considered as part of
Committee recommendations. The communiqué will be authorised by the Committee and
delivered through the presiding member and may take the form of a written memo or
presentation to the Council depending on the issue(s) covered.
4.4. In addition to the communiqué, from time to time the Committee will communicate with
Elected Members on issues of importance to the Council. This communication will be
authorised by the Committee and may be delivered by a Committee member in the form
of a presentation to Elected Members or a written memo.
4.5. The Committee will develop, maintain and implement a work plan which will serve the
purpose of a forward agenda detailing the proposed agenda items and meeting dates.
4.6. The quorum necessary for the transaction of business shall be three Members including
one independent member.
5. TERMS OF REFERENCE
5.1. FINANCIAL REPORTING and SUSTAINABILITY
5.1.1. Review the annual financial report and application of accounting policies with
management and the external auditor and provide opinion to the Council and Elected
Members on whether it presents fairly the state of affairs of Council.
5.1.2. Utilising the Committee’s expertise, review and make recommendations to the Council
and Elected Members regarding the financial ratios, financial targets and levels of debt
in the Long Term Financial Plan.
5.1.3. Provide commentary and advice on the financial sustainability of Council, and any risks
in relation to, as part of the annual adoption of the Council’s Long Term Financial Plan,
Annual Business Plan and any other strategic plans and Council Plan.
5.1.4. Provide recommendations to the Council to improve operational performance and
ensure more effective and efficient use of resources.

5.1.5. Review and make recommendations to the Council regarding any other significant
financial, accounting and reporting issues as deemed necessary by the Committee,
Council or Management
5.2. EXTERNAL AUDIT
5.2.1. When required, consider and make recommendations to the Council on the appointment
of the external auditor.
5.2.2. Make recommendation to Council on the terms of engagement and fees of the external
auditor at the start of each audit contract.
5.2.3. Make recommendation to Council on the scope of work, reports and activities of the
external auditor, including interaction with any internal audit capability.
5.2.4. Review and provide feedback to External Audit on their performance.
5.2.5. Annually review the findings of the audit with the external auditor
5.2.6. Review management’s response to reviews, recommendations and audit letters
provided by the external auditors.
5.2.7. Establish and review policies as appropriate in regards to independence of the external
auditor.
5.3. RISK MANAGEMENT
5.3.1. Review and comment on the adequacy of the Council’s risk management framework for
identifying, monitoring and managing significant business risks.
5.3.2. Annually review the Council’s insurance program for adequacy having regard to the
business and insurable risks associated with the Council’s business.
5.3.3. Propose and review the exercise of powers under Section 130A “Other Investigations” if
required by Council and/or deemed necessary by the Committee.
5.4. INTERNAL AUDIT, CONTROLS and COMPLIANCE
5.4.1. Oversee and approve the work program for the internal audit function within the
annual budget provided by Council and monitor progress against the work program.
5.4.2. Annually review the Council’s compliance framework for identifying, monitoring and
managing compliance with all laws and regulations such as Prudential Management,
Procurement and Internal Controls.

5.4.3. Ensure the Council’s annual review of internal controls adequately addresses legislative
requirements and promotes an effective internal control environment.
5.4.4. Seek and obtain regular updates from Council Staff and/or external auditors regarding
compliance matters in relation to the Council’s significant statutory requirements.
5.4.5. Report to the Council on any issues of non-compliance associated with 5.4.3 as deemed
necessary by the Committee.
5.4.6. Review the progress of the Internal Audit function and make recommendations as
appropriate.
5.4.7. Through the internal audit function, review and comment on the adequacy of internal
controls, financial reporting and other financial management systems and practices.
5.5. WHISTLE BLOWING and FRAUD
5.5.1. Review and comment on the adequacy of the Council’s arrangements for its employees
to raise concerns, in confidence, about possible wrongdoing in financial reporting or any
other matters.
5.5.2. Ensure these arrangements allow independent investigation of such matters and
appropriate follow-up action.
5.5.3. Provide comment and input into the adequacy of Council’s Whistle Blowing and Fraud
and Corruption policies.
6. MEMBERSHIP AND TERM OF OFFICE
6.1.1. The Committee shall comprise five members consisting of two Elected Members and
three Independent Members.
6.1.2. Elected Members will be appointed for a period until the next general Council election,
after which they may be re-appointed.
6.1.3. The Mayor (Principal Member) may be a member of the Committee with voting rights,
but shall not be the presiding member of the Committee.
6.1.4. Independent Members of the Committee shall be appointed to bring recent and relevant
experience and their capacity to act as a mentor to the Elected Members on the
Committee.

Nomination Process
for Independent
Members
Term of Office
Endorsed by Council
Resolution
Appointed
Independent
Member
Endorsed by
Council
Resolution
on
Term
Concludes
Sought through an expression
of interest process then
endorsed by Council
Resolution.
Mr Martin White 10th Dec 2010 30th Apr 2013
Mr Allen Bolaffi 8th Mar 2011 31st Mar 2014
Mr Mark McAllister 8th Mar 2011 31st Mar 2015
Each subsequent appointment will be 3 years.
6.2. The Presiding Member must be an Independent Member and will be determined by the
Corporate Governance Committee for twelve months, after which they may stand for re-
election.
7. REVIEW
7.1. The Committee shall assess its own performance and Charter annually to ensure that it is
operating at maximum effectiveness. Following this review, it will provide an annual
report to Council on its performance, recommending any changes that are necessary.
7.2. In reviewing its performance, the Committee will have regard to:
 the achievement of the Committee’s role and terms of reference.
 the Committee’s decision making process.
 the timeliness, quality and quantity of information received.
 building a strong relationship with Council, Council Staff and other Members of
the Committee.
 the involvement and attendance by members.
8. CODE OF PRACTICE
8.1. This Charter is to be read in conjunction with the City of Playford’s Council and
Committee Code of Practice.

Contents
City of Playford
Corporate Governance Committee Meeting
AGENDA
TUESDAY, 5 FEBRUARY 2013 AT 4.30 PM
1 ATTENDANCE RECORD
1.1 Present
1.2 Apologies
1.3 Not Present
2 CONFIRMATION OF MINUTES
RECOMMENDATION
The Minutes of the Corporate Governance Committee Meeting held 4 December
January 2013 be confirmed as a true and accurate record of proceedings.
3 DECLARATIONS OF INTEREST
4 DISCUSSION FORUM
4.1 Committee Self Assessment .....................................................................................12
4.2 Long Term Financial Plan and Annual Business Plan Development Update.............13
4.3 Appointment of an Independent Member ..................................................................14
4.4 Emerging Issues for the City of Playford ...................................................................15
4.5 Internal Control Work Program 2012/13....................................................................16
4.6 Corporate Governance Committee Workplan (Attachment) ......................................17
5 STAFF REPORTS
Matters to be considered by the Committee Only
Matters for Information
5.1 Efficiency and Effectiveness Second Quarter Update (Attachment)..........................24
5.2 External Audit Correspondence (Attachment) ...........................................................52
6 MOTIONS
7 CONFIDENTIAL MATTERS
Nil

8 NEXT MEETING DATE
Tuesday, 02 April 2013, 4:30 pm
Committee Room
Playford Civic Centre
10 Playford Boulevard, Elizabeth
9 CLOSURE

DISCUSSION FORUM

4.1 C ommi ttee Self Assessment
4.1 Committee Self Assessment
Presenter: Mr Andrew Wroniak
Purpose: To provide feedback as part of the self-assessment of the Committee.
Outcome: Identification of the strengths and weaknesses in the performance of the
committee
Duration: 15 Minutes
Committee Self-Assessment tools are provided as a separate document to the agenda.

4.2 Long Ter m Financial Plan and Annual Busi ness Pl an Devel opment U pdate
4.2 Long Term Financial Plan and Annual Business Plan Development Update
Purpose: To outline the forthcoming process for the 2013/14 LTFP and Annual
Business Plan.
Outcome: To receive feedback from the Committee regarding the proposed
process.

4.3 Appoi ntment of an Independent Member
4.3 Appointment of an Independent Member
Purpose: To update the Committee on the process and panel selection of the
position.
Outcome: The Committee be informed of Council’s decision on the process of the
position.

4.4 Emerging Issues for the City of Playfor d
4.4 Emerging Issues for the City of Playford
Presenter: Mr Tim Jackson
Purpose: To inform the Committee of significant issues of relevance to the
Committee.
Outcome: To receive information from the Committee.

4.5 Internal C ontrol Wor k Program 2012/13
4.5 Internal Control Work Program 2012/13
Presenter: Ms Rosemary Munslow
Purpose: Update the Committee on the internal control work program.
Outcome: Ensure the Committee is aware of the progress to date.

4.6 C orporate Gover nance C ommittee Wor kplan
4.6 Corporate Governance Committee Workplan
See Attachment No: 1. Corporate Governance Committee Workplan
Presenter: Mr Martin White
Purpose: To discuss the Committee Workplan.
Outcome: To develop the Workplan.
Corporate Gover nance C ommittee Wor kplan

Corporate Governance Committee Workplan 18 Item 4.6 - Attachment 1
Corporate Governance Work Plan
Month Item No. Item Report or Discussion
Mar-13 No Meeting Scheduled
2-Apr-13 Financial Management (Sections 126 & 128)
Review Assets Policy Report
Review Treasury and Reserve policy Report
Review First Draft Long Term Financial Plan, Annual Business Plan, Asset
Management Plan and 4 year Council Plan - Assumptions
Discussion
Risk Management (Section 126)
Review plan for presentation to Elected Members Discussion
Discuss internal controls review and progress of action items Discussion
Review interim external audit management letter Report
Legislative and Regulatory Compliance (Sections 126, 128 & 130A)
Review action items from Local Government Act compliance audit. Report
Appointment of Independent Member Discussion
Review progress of action items for OHS&W Report
Efficiency and Effectiveness (Section 130A)
Project Progress and Benefit Realisation Quarterly Report

May-13 No Meeting Scheduled
4-Jun-13 Financial Management (Sections 126 & 128)
Update on progress of external audit action items Report
Review draft Annual Business Plans, Long Term Financial Plan and Asset
Management Plan
Discussion
Emerging Issues for Playford – Quarterly Update Discussion
Whistle blowing and fraud instances and action plan Report
Review insurance limits for 2013-14 Discussion
Discuss internal controls review and progress of action items Discussion
Review progress of compliance with Local Government Act Discussion

Review draft committee annual report Discussion
Jul-13 No Meeting Scheduled
6-Aug-13 Financial Management (Sections 126 & 128)
Review external audit management letter from June visit Report
Discuss the finalised 2013-14 work plan for Internal Controls review Discussion
Emerging Issues for the City of Playford – Quarterly Update Discussion
Annual Review Corporate Governance Committee’s Charter
Approve Committee annual report Discussion
Sept-13 No Meeting Scheduled

1-Oct-13 Financial Management (Sections 126 & 128)
Update on progress of external audit action items Report
Review Annual Financial Statements 2012-13 and meet with auditor Report
Review of draft external audit management representation letter Report
Review plan for presentation to Elected Members Discussion
Review draft Annual Report for compliance with the Local Government Act Report
Review draft Annual Report statements pertaining to risk and internal controls Report
Nov-13 No Meeting Scheduled
3-Dec-13 Financial Management (Sections 126 & 128)
Review Finance Policies (General update) Report

Discuss plan for the 2014-15 Annual Business Plan and Long Term Financial
Plan
Discussion
Emerging Issues for the City of Playford – Quarterly Update Discussion
Internal Controls review quarterly update Report
Review current financial ratios meet the needs of Council Discussion

STAFF REPORTS
MATTERS TO BE CONSIDERED
BY THE COMMITTEE ONLY

5.1 Effici ency and Effecti veness Second Quarter U pdate
5.1 EFFICIENCY AND EFFECTIVENESS SECOND QUARTER UPDATE
Responsible Executive Member: Shaun Kennedy
Contact Person: Tim Vonderwall
See Attachment No: 1. Efficiency and Effectiveness Second Quarter Report
Why is this matter before the Council or Committee?
Purpose
To provide the Committee with an update on the progress of the Efficiency and Effectiveness
program for the second quarter 2012/13.
Recommendati on
STAFF RECOMMENDATION
The Information Report be received.
Relevance to Council Plan
Objective 4.5 Working towards sustainability
Relevance to Public Consultation Policy
There is no requirement to consult with the community on this matter however consultation
will occur as part of the council plan and the long term financial plan preparation.
Background
At the Council meeting on August 2011, Council resolved the following;
“Based on confirmation that a business case has proven, Council agree to re-introduce
Efficiency and Effectiveness targets in the next revised Long Term Financial Plan
Council endorse a 5-year Efficiency and Effectiveness program based on achieving a cost
reduction of 9% by 2015/16
Council is to receive a report on a quarterly basis and hold informal gathering as required to
track the process of the Efficiency and Effectiveness program
Council authorises the Chief Executive Officer to release the PwC Summary Overview of
Potential Opportunities (attachment 2) to Council staff and the general public”
There after those decisions the CEO then embarked on an organisational restructure process
designed to position the organisation to pursue the efficiency targets set by the Council.
In June 2012 Council received a report outlining the 5 year plan, and more detail relating to
the projects, investment, return, benefits realisation and overall approach to 2012/13. The
projects for 2012/13 will be delivered in the following categories;
 Process Improvement and Re-engineering.
 People Development and Service Alignment.

 New and Improved Systems.
 Reviewing How We Procure.
 Reviewing Asset Management.
An information report accompanied with the quarterly report in attachment 1 was presented
to Council in September 2012. Council received the report and the Council commented on
their satisfaction with the content/approach.
In addition to project delivery, quarter 1 demonstrated significant progress in development of
the following initiatives and strategies;
 Process Improvement Methodology
 Change Management Strategy
 Benefits Realisation
 Project Management Framework
Current Situation
Since the first quarter report, the Efficiency and Effectiveness Program has focused on
benefits realisation as a priority. Benefits Realisation is a key component of Program
Management; it provides a mechanism for identifying, analysing, measuring and capturing
benefits that are identified throughout a program of transformation or change.
Based on the Benefits Realisation Framework and templates that were presented to the
Council in the first quarter 2012/13, the Efficiency and Team worked with the key Business
Unit staff, Project Managers and Executive to gather detailed information for each project
underway in the Efficiency and Effectiveness Program, (see attachment 1 for project
information). The data gathered has either been measured, or scheduled for measurement,
depending on project implementation timing.
The Benefits Realisation data measured in quarter 2 has provided year to date and forecast
identified savings figures for this financial year. Figure 1.0 provides YTD savings identified,
and forecast savings identified for 2012/13. The benefits identified will undertake accounting
processes at the full year budget review 2012/13 for full realisation. A breakdown of savings
per project can be found in Attachment 1.
Figure 1.0
Efficiency and Effectiveness Benefits Realisation Report
Full Year Forecast Savings
Program Category
Target Savings
$
Forecast Savings
$
Process improvement and re-engineering 220,000 220,000
People Development and Service
Alignment 200,000 336,000
New and improved systems 140,000 52,000
Reviewing how we Procure 200,000 200,000
Reviewing asset management 71,000 71,000
Total 831,000 879,000
YTD Identified Savings $
463,000

Although Benefits Realisation has been the primary focus in the last quarter, positive
improvement was also made in other areas of the program. Improvement was seen with
regards to project governance, and project reporting. All project planning documentation was
finalised and received and increased consistency of project reporting has been delivered.
From a program scheduling perspective, all projects that were due to start this financial year
have been initiated and are on schedule.
As reported in the first quarter 2012/13, a process to appoint an independent auditor of the
Efficiency and Effectiveness Program has begun. At this stage, the organisation has
approached the market, received the offers from the industry and is evaluating the
submissions to appoint a supplier.
Further detail on these and other fundamental success factors for the Efficiency and
Effectiveness program can also be found in Attachment 1.
Future Action
As provided in Attachment 1, staff will continue to report to the organisation and the Council
on program progress regularly. Although the investment vs. return target figures are equal in
the 2012/13 year, from July 2013 onwards, any net efficiency and effectiveness gains will be
presented to Council in a report as part of the annual budget process. Through this reporting
and budget process, options for utilising the efficiency savings or effectiveness gains will be
addressed.
The Efficiency and Effectiveness team are in preparation to engage an independent audit of
the program management, governance and benefits realisation. Timing of the audit is
planned for the 3rd quarter 2012/13.
Planning for the 2013/14 projects and program benefits realisation will start in the 3rd quarter
2012/13. Subsequently the updated 5 year Program Plan Outline and 2013/14 Year Plan
Outline will be presented to the Council once the planning is complete.

Efficiency and Effectiveness Second Quarter Report 27 Item 5.1 - Attachment 1
Effici ency and Effecti veness Second Quar ter R eport
Efficiency & Effectiveness Program
2012/13 Second Quarter Report
December 2012

Table of Contents
1 Background...........................................................................................................................................3
2 Executive Summary ..............................................................................................................................4
3 Benefits Realisation..............................................................................................................................4
4 2012/13 Identified Projects..................................................................................................................7
4.1 Working Better Together Project .................................................................................................8
4.2 Service Standards .........................................................................................................................9
4.3 Management Restructure ..........................................................................................................10
4.4 Planning and Building Review.....................................................................................................11
4.5 Go MAD ......................................................................................................................................12
4.6 Project Management Review .....................................................................................................13
4.7 Finance Review...........................................................................................................................14
4.8 Procurement...............................................................................................................................15
4.9 Technology Services Review.......................................................................................................16
4.10 iBOSS...........................................................................................................................................17
4.11 Paperless Office..........................................................................................................................19
4.12 InfoCouncil..................................................................................................................................20
4.13 Asset Stores/Fleet.......................................................................................................................21
5 Program Governance..........................................................................................................................22
6 Process Improvement Methodology..................................................................................................23
7 Change Management Strategy...........................................................................................................23
8 Project Management Framework.......................................................................................................24
9 Independent Audit..............................................................................................................................24
10 2012/13 Program Financial Update................................................................................................25

1 Background
At the Council meeting on August 2011, Council resolved the following;
“Based on confirmation that a business case has proven, Council agree to re-introduce Efficiency and
Effectiveness targets in the next revised Long Term Financial Plan
Council endorse a 5-year Efficiency and Effectiveness program based on achieving a cost reduction of
9% by 2015/16
Council is to receive a report on a quarterly basis and hold informal gathering as required to track the
process of the Efficiency and Effectiveness program
Council authorises the Chief Executive Officer to release the PwC Summary Overview of Potential
Opportunities (attachment 2) to Council staff and the general public”
There after those decisions the CEO then embarked on an organisational restructure process designed
to position the organisation to pursue the efficiency targets set by the Council.
In June 2012 Council received a report outlining the 5 year plan, and more detail relating to the projects,
investment, return, benefits realisation and overall approach to 2012/13. The projects for 2012/13 will be
delivered in the following categories;
An information report accompanied with the quarterly report in attachment 1 was presented to Council in
September 2012. Council received the report and both the Corporate Governance Committee and
Council commented on their satisfaction with the content/approach.
In addition to project delivery, quarter 1 demonstrated significant progress in development of the following
initiatives and strategies;
 Process Improvement Methodology
 Change Management Strategy
 Project Management Framework

2 Executive Summary
Since the first quarter report, the Efficiency and Effectiveness Program has focused on benefits
realisation as a priority. Based on the Benefits Realisation Framework and templates that were presented
to the Council in the first quarter 2012/13, the Efficiency and Team worked with the key Business Unit
staff, Project Managers and Executive to gather detailed information for each project underway in the
Efficiency and Effectiveness Program, (see attachment 1 for project information). The data gathered has
either been measured, or scheduled for measurement, depending on project implementation timing.
Benefits Realisation is a key component of Program Management; it provides a mechanism for
identifying, analysing, measuring and capturing benefits that are identified throughout a program of
transformation or change. Based on the measured data for this quarter, $463,000 has been identified
YTD as savings with a forecast identified saving of $879,000 for the 2012/13 financial year. These
savings will undertake accounting processes at the full year budget review 2012/13. For further
information please see section 3.
Although Benefits Realisation has been the primary focus in the last quarter, positive improvement was
also made in other areas of the program. Improvement was seen with regards to project governance, and
project reporting. From a program scheduling perspective, all projects that were due to start this financial
year have been initiated. Overall the projects for 2012/13 are on schedule and overall the program is
progressing well. All projects planning documentation was finalised and received and increased
consistency of project reporting has been delivered. See section 4 for further information.
As reported in the first quarter 2012/13, a process to appoint an independent auditor of the Efficiency and
Effectiveness Program has begun. At this stage, the organisation has approached the market, received
the offers from the industry and is evaluating the submissions to appoint a supplier. See section 9 for
further information.
3 Benefits Realisation
Benefits Realisation is a key component of Program Management, it provides a mechanism for
identifying, analysing, measuring and capturing benefits that are identified throughout a program of
transformation or change.
The City of Playford Benefits Realisation strategy, framework and system was finalised in August
2012. Throughout its development the strategy, framework documents and systems was presented
to the Corporate Governance Committee. The Committee provided input into strategy and systems,
and was comfortable with the steps in place to measure benefits throughout the program.
To ensure the anticipated benefits are realised for the community, ratepayers, Elected Members and
staff, Playford will have a consistent approach to benefits tracking and realisation across all
efficiency and effectiveness initiatives. This consistent approach will comprise:
► Planning for Benefits Realisation as a priority before a project is underway (usually as
part of or immediately as a result of any individual project Business Cases Playford
develops)
► Using the same process and tools for Benefits Realisation
► Linking Benefits Realisation to the project Communications Plan at the outset of the planning
stage so anticipated benefits form the cornerstone of the key messages for each project
► Ensuring all benefits pursued are supportive of, and can be traced back to, Playford’s
strategic objectives (strategic intent)
► All Benefits Realisation Plans to be agreed and signed off by the Program Sponsor or their
nominee – hence including the sample document history at the front of this document. This
should feature in all Benefits Realisation Plans and Benefits Profiles (if these are produced
separate to a Benefits Realisation Plan)
► No changes to intended benefits once agreed, without the authorisation of the Program
Sponsor and/or CEO to ensure that interdependencies between benefits can be managed
without adverse effect
All projects funded by the Efficiency and Effectiveness Program are subject to the approach above
and for those projects that have started, detailed work profiling each projects benefit is currently
being undertaken. Since the first quarter report, the Efficiency and Effectiveness Program has
focused on benefits realisation as a priority. Benefits Realisation is a key component of Program
Management; it provides a mechanism for identifying, analysing, measuring and capturing benefits
that are identified throughout a program of transformation or change.

Based on the Benefits Realisation Framework and templates that was presented to the Corporate
Governance Committee in the first quarter 2012/13, the Efficiency and Team worked with the key
Business Unit staff, Project Managers and Executive to gather detailed information for each project
underway in the Efficiency and Effectiveness Program. The data gathered has either been measured, or
scheduled for measurement, depending on project implementation timing.
Figure 1.0 provides YTD savings identified, and forecast savings identified for 2012/13. The benefits
identified will undertake accounting processes at the full year budget review 2012/13 for full realisation. A
breakdown of savings per project can be found in section 3 of this report.
Figure 1.0
Efficiency and Effectiveness Benefits Realisation Report
Full Year Forecast Savings
Program Category
Target Savings
$
Forecast Savings
$
Process improvement and re-engineering 220,000 220,000
People Development and Service
Alignment 200,000 336,000
New and improved systems 140,000 52,000
Reviewing how we Procure 200,000 200,000
Reviewing asset management 71,000 71,000
Total 831,000 879,000
YTD Identified Savings $
463,000
Figure 3.0 provides a breakdown of the YTD versus full year budget and target figures for the second
quarter data. The data is summarised by projects for their identified category. See figure 2 for the status
legend.
Figure 2.0
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action

Figure 3.0

4 2012/13 Identified Projects
The projects identified for 2012/13 generally focus on establishing the baseline for further Efficiency and
Effectiveness improvements in years 3-5 and beyond. It is foreseen that further projects in the remaining
years of the project will not only be identified through the Executive group, but primarily through Business
Unit and staff initiatives via the GoMad Process Improvement project.
In 2012/13, projects will be delivered in the following categories.
An update of the 2012/13 identified projects are provided below; (see figure 2 for legend)
Note: Project Benefits Realisation Savings data is only provided for 2012/13. Benefits measurement may
occur in subsequent years, therefore the savings will not be forecast this financial year. See program
manager comments at the end of each project update for further information.

4.1 Working Better Together Project
Project Manager – Andy Slager
Project Start Date: July 2012
Project Completion Date: July 2014
Project Summary
Utilising a proven planning, work allocation and reporting tool, City Services will increase service delivery
by implementing the City Presentation Improvement Program. The project will review processes, service
delivery and resource allocation in the City Services Business Unit, with a primary focus on operations
functional areas and teams.
Through better alignment of resources to services, and subsequently reengineering the processes
relating to the identified areas, the following enhancements will be made.
 Better utilisation of assets, staff and other resources.
 Reduction in reactive work through better work practices and a business unit operating in a
planned and proactive manner.
 Realigning teams to services and planed work allocation.
 Focus on improving staff morale and performance through change management initiatives.
Project Update
Work has commenced on the ground to reduce the number of unactioned CRS Backlog requests with
scoping work continuing. Two workshops were held with regards to the Seasonal / Cyclic Project and two
workshops were held with regards to the Precinct Maintenance Project.
Next Steps
Workshops on the Rapid Response Project commence this week
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Working Better Together
Project Reporting
YTD Act YTD Budget FY Budget
Budget
Status
%Completed
Schedule
Status
Overall
Status
28,500 28,500 57,000 G 25% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES YES 200,000 0 200,000 G G
Program Manager Comments: N/A

4.2 Service Standards
Project Manager – Nigel Fox
Project Summary
This project will involve documenting Service Standards for the whole organisation over a
period of 12 – 24 months. As defined in the City of Playford organisational vision, “every Service
will have a standard”. Defining Services is essential so that Playford employees, management,
Elected Members and ratepayers have a clear understanding the level of service to expect
and/or deliver. Therefore any proposed increase/reduction in a given service can be attributed
to costs and resource implications.
Project Update
Subject Matter Expert meetings have been undertaken to progress the service standard models based
upon the format presented to Council.
Next Steps
The high level working model for service costs have been defined and will work in tandem with the
generation of service standard models to yield costs centred around current models.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Service Standards
Project Reporting
Budget
Status
%Completed
Schedule
Status
Overall
Status
61,500 41,000 82,000 G 12% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES YES 0 0 0 G G
Program Manager Comments: Although no savings identified for this project. The data captured provides
vital baseline data for future EandE initiatives.

4.3 Management Restructure
Project Manager – Cheryl Thorpe
Project Start Date: December 2011
Project Completion Date: June 2012
Project Summary
Review and implement a new organisation structure that better aligns to the Council’s business activities.
Project Update
The Management restructure was completed as per the project schedule in June 2012. The project
involved communication to all staff and Elected Members on the new structure emphasising the
importance of the positions becoming people managers.
The Manger Remuneration has been completed with contracts issued and salaries finalised
Next Steps
Performance criteria supporting Management Performance Plans is to be determined within the next
three weeks
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Management Restructure
Project Reporting
YTD Act
YTD
Budget
FY Budget
Budget
Status
%Completed
Schedule
Status
Overall
Status
0 0 0 G 100% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES NO 0 0 0 G G

4.4 Planning and Building Review
Project Completion Date: June 2013
Project Summary
The planning approval process is a high volume repetitive process. The project is to apply Lean
enterprise principles to the office environment. This requires training of staff in new techniques with
workshops to identify and implement improvements in the processes designed to increase through put,
reduce errors and eliminate rework. Thus providing improve customer service and reducing unit costs.
Project Update
The overall process applied within the planning and building department has been broadly defined with
regards to the opportunity for benefits realisation.
Next Steps
The next steps focus on the method and benefit of implementing the discernible changes to facilitate six
primary business components.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Planning and Building Review
Project Reporting
YTD Act
YTD
Budget
FY Budget
Budget
Status
%Completed
Schedule
Status
Overall
Status
41,000 41,000 82,000 G 12% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES YES 0 0 0 G G
Program Manager Comments: Savings target measurement of $100K is scheduled for 2013/14 FY.

4.5 Go MAD
Project Summary
The Efficiency and Effectiveness program is reliant on staff engagement as a fundamental change in the
way we do business. However the major reforms identified in the Business Case will not impact all
employees and so we have the potential to have a large number of employees disengaged from the
program and not part of the cultural shift; Hence the need to promote and encourage efficiency and
effectiveness activities at the team level whilst maintaining the ability to coordinate and report on the
resources being applied to the program. Hence the need for Go MAD! (Go Make a Difference).
The purpose of the Go MAD! Program is to.
 Deliver tangible benefits to the organisation
 Promote ideas, benefits realisation and organisational E&E
 Shift behaviours and mindsets of our employees to embrace E&E.
 Ensure decision making is keep at the local level
 Imbed the capability throughout the organisation to increase sustainability
 Capture and transferring of good practice throughout the organisation
To achieve this, a common set of tools and techniques are to be designed and deployed though out the
organisation and supported by a leadership culture that utilises the tools in conducting everyday
business.
Project Update
GoMAD Lite workshops and champion training have been undertaken with further training being
scheduled. Several ideas have been captured and are currently being investigated.
Next Steps
The tracking and reporting mechanism is being implemented which will facilitate new ideas being
captured, investigated and reported back to business.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Go Mad
Project Reporting
Budget
Status
%Completed
Schedule
Status
Overall
Status
61,500 41,000 82,000 G 12% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES YES 20,000 0 20,000 G G

4.6 Project Management Review
Project Start Date: September 2012
Project Completion Date: December 2012
Project Summary
An organisation the size and complexity of the City of Playford delivers a wide variety of Projects with a
wide variety of objectives and risks. To ensure that each project is delivered with due diligence, adequate
risk management, financial controls and the rigour required, Project Management principles/guidelines
should apply.
This project will deliver a standardised project management framework with the appropriate tools for staff
to deliver on successful projects, yet remain flexible enough that it can be applied across out diverse
business. Having a standard project management methodology and framework will also ensure that
program and organisational progress tacking, auditing and reporting can be produced at a holistic level.
Project Update
The tools generated through the Project Management Review are being integrated through financial and
schedule tracking within the assets department. Applicability of the templates and tools relevant to each
type of project undertaken at CoP have been submitted for review with further refinement anticipated as
the tools are implemented.
Discussions are currently underway with regards to project governance being integrated through the risk
management policies.
Next Steps
The review of risk management policies is anticipated to result in the initial application of standardised
project management techniques and act as a staging point for standardisation.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Project Management Framework
Project Reporting
YTD Act
YTD
Budget
FY Budget
Budget
Status
%Completed
Schedule
Status
Overall
Status
25,000 25,000 50,000 G 12% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES NO 0 0 0 G A
Program Manager Comments: Although no savings identified for this project. Project management
disciplines are required to be established for suture organisational capacity to deliver future EandE
initiatives.

4.7 Finance Review
Project Manager – Ben Cunningham
Project Start Date: September 2012
Project Completion Date: October 2012
Project Summary
Though the previous functions, services and structures of Finance and Rates team have served the
organisation well in the past, the organisational restructure that was undertaken in December 2010 and
the opportunities that it has presented has prompted the commencement of the Finance Review project.
The aim of this project is to review the makeup of the Finance and Rates team and its role, functions and
services it currently provides and what is required in the future.
Although viewed as important corporate service functions within the City of Playford and an integral part
of the organisation, there is a real need to provide greater visibility to what the new Finance and Rates
team will do and to ensure that it provides a relevant and value adding service to our internal, external
customers and stakeholders moving forward.
Project Update
A new finance team has been selected and started on the week commencing 7
th
of December. The group
is currently being trained and a new Financial Controller is reviewing all finance business processes.
Next Steps
The finance business processes are to be reviewed and implemented in the new iBOSS system.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Finance Review
Project Reporting
YTD Act
YTD
Budget
FY Budget
Budget
Status
%Completed
Schedule
Status
Overall
Status
6,250 12,500 25,000 G 50% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES NO 100,000 125,000 125,000 G G

4.8 Procurement
Project Manager – Michael Knowles
Project Start Date: TBC
Project Completion Date: TBC
Project Summary
The objective of the procurement project will be to undertake a diagnostic and spend review to:
 Identify potential areas for improvement through a spend diagnostic and a high-level value chain
analysis– shortlisted based on high-level quantification of cost versus likely benefit
 Complete a procurement maturity assessment
 Produce a high-level assessment of the potential risk/ impact to Playford from the implementation
of the short-listed opportunities, and
 Develop a next steps ‘roadmap’ with indicative timing.
In summary, the project will:
1. Perform a spend analysis to identify and assess opportunities
2. Review the supply value chain from requisition to delivery of services and payment to identify and
assess opportunities
3. Develop a high level implementation plan including quick wins.
4. Identify areas for implementation in a second phase as required
Project Update
Consultants have been onsite and a report regarding the current state of play at the CoP has been
generated. The report includes recommendations.
Next Steps
The next steps of the project are to solidify the scope and generate an implementation plan.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Procurement
Project Reporting
Budget
Status
%Completed
Schedule
Status
Overall
Status
28,500 28,500 57,000 G 10% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES YES 200,000 100,000 200,000 G G

4.9 Technology Services Review
Project Manager – Ben Cunningham
Project Start Date: June 2012
Project Completion Date: September 2012
Project Summary
Though the previous functions, services and structures of Technology Services team have served the
organisation well in the past, the organisational restructure that was undertaken in December 2010 and
the opportunities that it has presented has prompted the commencement of the Technology Services
Review project.
The aim of this project is to review the makeup of the Technology Services team and its role, functions
and services it currently provides and what is required in the future.
Although viewed as important corporate service functions within the City of Playford and an integral part
of the organisation, there is a real need to provide greater visibility to what the new Technology Services
team will do and to ensure that it provides a relevant and value adding service to our internal, external
customers and stakeholders moving forward.
Project Update
Resources have been consolidated in the ICT team.
Next Steps
TBA
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Technology Services Review
Project Reporting
Budget
Status
%Completed
Schedule
Status
Overall
Status
0 12,500 25,000 G 99% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES YES 100,000 211,000 211,000 G G

4.10 iBOSS
Project Start Date: January 2011
Project Completion Date: January 2012
Project Summary
The City of Playford is implementing an Integrated Business Software Solution(s) which has the
functionality to effectively manage:
 Financial Ledger
o General Financial Ledger
o Accounts Payable
o Procurement
o Bank reconciliation
o Budgeting
o Inventory and Stock Management
 Contracts and Tendering
 Work Order Job Costing
 Invoice Management
 Asset Accounting
 Whole of life Asset Management System
The investment in 2012/13 will deliver additional functionality to reduce manual processes, improved
reporting and analysis, while integrating work order functions with HR and Payroll systems and
processes.
Project Update
The software resulting from the iBOSS project [OneCouncil] went Live on December third.
The date marked an important event for everyone in the organisation as the integrated software solution
replaced a number of programs and applications successfully. In addition to the OneCouncil software,
refinements to the business practices governing day to day operations within the CoP were implemented
simultaneously and continue to be refined as the software is adopted.
The sustained effort from all those involved to progress the project and implement the change is a
reflection of the ambitious nature of the venture as it spanned almost every aspect of the CoP business
model with the following modules being implemented;
Training/Performance Appraisal
Recruitment
Workorder - City Services
Workorder - Fleet/Facilities
Payroll
Financial
Procure to Pay
Purchase Contract Management
Contract Requisitioning
Purchase Card Processing
Asset Physical Lifecycle
Project Management
OH & S Self Service
OH & S
Grievance/Dispute
Grievance/Dispute Self Service
Next Steps
The project is being handed over to an operational status is a staged approach with the Project team
remaining online to work through the adoption of the software into the business.

The project will be subject to a planned Project Review, looking into the aspects of the project from initial
conception through to closeout, focusing on the delivery of intent and future developments.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
iBOSS
Project Reporting
YTD Act
YTD
Budget
FY Budget
Budget
Status
%Completed
Schedule
Status
Overall
Status
99,500 99,500 199,000 G 90% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES YES 90,000 27,000 27,000 G G

4.11 Paperless Office
Project Manager – Simon Reiter
Project Start Date: December 2011
Project Completion Date: December 2012
Project Summary
This project invests in Tablet technology for Elected Members & Managers by establishing a pilot
program to test and assist in the development of electronic provisioning of Agendas, Minutes and
Correspondence to the pilot members.
• Document management for the chamber environment and meetings (agendas/minutes)
• Note-taking
• Time management and
• General communication and correspondence.
• WEB site and Email access
Project Update
A proposal has been put forward to expand the number of managers using “ipad” type devices with
laptop functionality where the withdrawal of printing rights will allow for significant savings.
Next Steps
If the proposal is accepted, the reassignment of existing ipad devices to Councillors until the end of their
life cycle will allow for the total replacement of their laptops with the renewal of ipad devices with a
product of the same functionality as those proposed for managers. This will allow for the full benefits of
Info Council project to be realised.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Paperless Office
Project Reporting
YTD Act
YTD
Budget
FY Budget
Budget
Status
%Completed
Schedule
Status
Overall
Status
12,500 12,500 25,000 G 90% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES YES 25,000 0 0 G G

4.12 InfoCouncil
Project Manager – Christie Russell
Project Completion Date: November 2012
Project Summary
City of Playford Council is introducing an automated, integrated office productivity tool for the creation,
publication and storage of agendas and minutes – InfoCouncil.
The InfoCouncil project is expected to be implemented by the end of November 2012.
The new system will improve the report writing method and agenda compilation process currently in place
as well as improve the process for an accurate record the minutes for Council and Committee meetings
by improving the current minute taking process.
Project Update
The InfoCouncil system is currently undertaking live testing to create reports, agendas, minutes and
actions. The first analysis with regards to the efficacy of the software has been conducted with the results
made available to the E&E group.
Next Steps
In moving forward, the project will work in with Management and Governance to develop improvement
processes for new system, and ensure that measurements are continued to be recorded.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
Info Council
Project Reporting
YTD Act
YTD
Budget
FY Budget
Budget
Status
%Completed
Schedule
Status
Overall
Status
41,250 27,500 55,000 G 80% G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES YES 25,000 0 25,000 G G

4.13 Asset Stores/Fleet
Project Manager – Jonathan Roberts
Project Completion Date: September 2012
Project Summary
In the 2011/12 FY, a major review was conducted of the stock & Inventory held at the Playford
Operations Centre. This review identified many possibilities for improved stock management, which
would increase the efficiency and effectiveness of the store, reduce the waste and obsolescence of
stock, rationalise the stock held in the store and on site in general and improve purchasing procedures.
Most of the recommendations made, were accepted and approved by the steering committee and the
purpose of this project is to implement the approved recommendations.
Project Update
A review of all inventory items in the store has been completed. This has resulted in the write down of
70% of obsolete stock and a reduction of $39,000 of obsolete or damaged stock.
Next Steps
The inventory will be reviewed in comparison with the previous twelve months’ worth of data regarding
stocks and stock movements, which will assist in the generation and implementation of SLA's for teams
that use inventory store items.
G
Progressing
as planned
A
Needs
monitoring
R
Requires
Action
YTD Act
YTD
Budget
FY Budget
Budget
Status
%Completed
Schedule
Status
Overall
Status
6250 6250 25,000 G 50 G G
Benefits Reporting
Project
Summary
Complete
Benefit
Profile
Complete
2012/13 Benefits
Target
2012/13 2012/13
Savings
Forecast
Measurement
Status
Benefits
Realisation
Status
Benefits
Actual
YES NO 71,000 0 71,000 G G

5 Program Governance
The internal governance structure, (figure 4.0) is in place to provide strong accountability and ensure
plans and progress is scrutinised by individuals that are not directly accountable for the delivery of the
individual projects. This structure has proven to be beneficial and effective to date. This is to be further
strengthened by the role of an independent audit of savings, benefits and progress. Plans are being
developed for engagement of a program audit role for the 2
nd
and 3
rd
quarter 2012/13.
Based on their responsibilities to review and make recommendations to Council on finances, comment on
risks and financial sustainability, and other significant financial matters relating to the Long Term
Financial Plan; The Corporate Governance Committee has provided advice, input and feedback on the
benefits realisation framework and overall program mechanics to the program steering committee. The
committee continues to express their comfort with the strategic direction and operations within the
program.
Figure 4.0 Efficiency and Effectiveness Governance Structure September 2012
Service Standards
Corporate Service Reform
Procurement
iBOSS
Program Manager:
Tim Vonderwall
Core Program Team
Optimising Service Delivery
Steering Committee:
• Chair: Shaun
Kennedy
• Effrim Volkoff
• Andrew Wroniak
• Sam Green
• Mal Hemmerling
• Tim Vonderwall
Council
Playford Executive Group
Steering Committee
Chair: Shaun Kennedy
Corporate Governance
Committee
Project
Leads

Figure 5.0 provides statistics for the usage of the Governance mechanisms in 2012/13
Figure 5.0
Governance Forum Number of Meetings (Second
Quarter)
Number of Meetings (Full
Year)
Efficiency and Effectiveness
Steering Committee
5 11
Efficiency and Effectiveness
Corporate Governance
Committee Updates
1 3
To deliver the targets outlined in the 5 year plan, and to manage the organisational transformation, a
number of core frameworks and disciplines are under development. These initiatives are not necessarily
projects, rather essential business tools and methodologies to ensure success of the program, and
ongoing capacity of the organisation to continually improve. Therefore organisational input, engagement
and training are core objectives to ensure these methodologies are well embedded into the organisation.
6 Process Improvement Methodology
The City of Playford Process Improvement Methodology (PIM) has been developed to support the
GoMad project and is a step by step approach to undertaking improvements of processes and practices
within the City of Playford Council. Improvements may be small incremental changes or larger ‘eureka’
ideas that need to be implemented.
The process methodology creates a methodology loosely based on other forms of process improvement,
tailored for the City of Playford Council. Some extra steps have been added and some removed to allow
justification and monitoring of any process changes.
Only tools that are simple to use and deliver value based outputs are part of the published methodology,
other tools may be used by specialists from time to time and the methodology will not rule out the use of
these tools.
The fundamentals of the PIM are being implemented and refined during the GoMAD training sessions
where users are exposed to the methodology with the initial purpose of identifying opportunities for
improvement within an individual area.
7 Change Management Strategy
A Change Management Strategy has been tailored to support change efforts at the City of Playford. This
strategy will ensure that the initiatives undertaken by the E&E Team will be culturally embedded into the
business by addressing the cultural side of change and project implementation. The aim of this strategy
is to foster an organisational culture that embraces change and enables staff to be the main driver for
continuous improvement and organisational excellence. By channelling change-related reactions such as
uncertainty, cynicism and conflict, the change management strategy is designed to stimulate employee
engagement and to reduce resistance towards change. Tailored measures will track and capture the shift
in organisational culture and behaviour.
It is anticipated that the efforts in the area of change management will not only lead to the emotional
wellbeing of the workforce in periods of change, but will also be conducive to initiating process
improvements. It is anticipated that that tangible and valuable cost savings emerging from change
management efforts can be realised over the medium to long term.
In particular, the Change Management Strategy outlines the overarching relevance and implications
relating to communication, leadership and measurement, all of which are critical to the successful
implementation of the change management strategy. These principles and recommendations are then
broken down to address the required change management initiatives for each project in which the E&E
Team is currently involved. It is anticipated that once completed, the Change Management Strategy can

be used as a standing resource for all leaders and staff to support any future change initiative.
The initial focus of the Change Management Strategy centres on embedding standardised
communications plans.
8 Project Management Framework
The underlying principles of project management have been used to illustrate a skeletal framework from
which example templates have been generated. These templates have been used to facilitate several
discussions centred on current project management requirements with primary regards to CoA, COAG,
LGA and Corporate Governance Committee stipulations.
The tools generated through the Project Management Review are being integrated through financial and
schedule tracking within the assets department. Applicability of the templates and tools relevant to each
type of project undertaken at CoP have been submitted for review with further refinement anticipated as
the tools are implemented.
Discussions are currently underway with regards to project governance being integrated through the risk
management policies. The review of risk management policies is anticipated to result in the initial
application of standardised project management techniques and act as a staging point for standardisation
9 Independent Audit
As reported in the first quarter 2012/13, a process to appoint an independent auditor of the Efficiency and
Effectiveness Program has begun. At this stage, the organisation has approached the market, received
the offers from the industry and is evaluating the submissions to appoint a supplier.
The audit will provide reports in an executive summary format based on periodic data illustrating the
following key areas;
 Program Governance
 Change Management/Transition
 Program Management
 Program Reporting
 Program Planning, both annual and strategic.
 Program Controls
 Suggested areas of improvement
The report shall be used to provide additional assurance and performance improvement areas for the
program team, organisation as whole and key stakeholders. The report and recommendations audience
will be the following;
 City of Playford Elected Members and Public
 Corporate Governance Committee, (Audit Committee)
 City of Playford Executive
The Efficiency and Effectiveness team are in preparation to engage an independent audit of the program
management, governance and benefits realisation. Timing of the audit is planned for the 3
rd
quarter
2012/13.
10 2012/13 Program Financial Update
Projects in the 2012/13 financial year will be delivered by business units with support from a core
specialist Efficiency and Effectiveness team. Additional specialist resources will be contracted in where
required. However the overall approach is aimed at the organisation to build capacity for continuous
improvement.

A breakdown of project costs per category can be found in Appendix figure 3.0. The table in Figure 3.0
focuses on year one investment figures.
Years 2013/14 onwards projects are yet to be finalised, although it is expected most of the investment
and savings will stem from GoMad project implementation; therefore the majority of future target
investment/saving figures have been attributed to that project at this point in time.
As per the reporting schedule above, project and program progress against identified targets will be
provided on a quarterly basis. Although the investment vs. return target figures are equal in the 2012/13
year, from July 2013 onwards, any net efficiency and effectiveness gains will be presented to Council in a
report as part of the annual budget process. Through this reporting process, options for utilising the
efficiency savings or effectiveness gains will be addressed.

5.2 External Audit C orrespondence
+
5.2 EXTERNAL AUDIT CORRESPONDENCE
Responsible Executive Member: Andrew Wroniak
Contact Person: Jeff Jones
See Attachment No: 1. External Audit Correspondence
Why is this matter before the Council or Committee?
Purpose
To inform the committee of matters raised by Councils external auditors Dean Newbery &
Partners as a result of the completion of the Balance Date Audit for the Financial Year Ended
30 June 2012.
Recommendati on
STAFF RECOMMENDATION
That the correspondence from Council’s external auditors Dean Newbery & Partners be
noted.
Relevance to Council Plan
Objective 4.1 Decision making in the best interests of the City
Relevance to Public Consultation Policy
There is no requirement to consult with the community in respect to this issue.
Background
As part of the external audit services provided by Dean Newbery & Partners, after each audit
visit a letter is provided to Council. The attached letter dated 10 December 2012 details the
outcome of the audit for each of the functions audited.
Current Situation
Council maintains a register of action items as a result of the external audit titled “Audit
Response – Current and Outstanding Action Table”. An update of these action items was
provided for the Corporate Governance Committee meeting on 4 December 2012.
Future Action
Council will provide a written response to Dean Newbery & Partners letter addressing the
issues raised. A copy of Council’s response and the updated “Current and Outstanding
Action Table” including actions taken by Council staff will be provided at a future Corporate
Governance Committee.

External Audit Correspondence 53 Item 5.2 - Attachment 1
External Audit C orrespondence

02 5 February 2013 Corporate Governance Committee Agenda.PDF

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (10)

Similar to 02 5 February 2013 Corporate Governance Committee Agenda.PDF

Similar to 02 5 February 2013 Corporate Governance Committee Agenda.PDF (20)

02 5 February 2013 Corporate Governance Committee Agenda.PDF