Mapoon Aboriginal Shire Council

Corporate Governance Policy

Head of Power

Local Government Act 1993

Local Government Finance Standard 2005 s.

Objective

• To have good governance principles recognised as an integral component of Council activities and decision-making.
• To have good governance principles integrated into Council’s organisational philosophies, culture, practices, strategies and business plans.
• To recognise that governance is a key component of the role of Councillors and employees, and that all Council personnel are accountable for risk control in their area of responsibility.

Definitions/Application

Definition

Application

This policy applies to all Council Activities and to all Councillors managers and other employees

Background

Organisational governance is concerned with improving the performance of Council for the benefit of its stakeholders by achieving outcomes by means of efficient, ethical and effective practices. Governance focuses on the decision making, conduct of and relationships between, the Councillors, Management (Chief Executive Officer, managers, staff) and the organisation’s stakeholders (primarily its residents, businesses and community organisations).

Governance for the Council generally refers to the processes and behaviours by which Council is directed, controlled and held to account. It encompasses all authority, accountability, stewardship, leadership, direction and control exercised within Council. This controlled environment assists Council achieve its objectives ethically and with an acceptable degree of risk.

Organisational governance is all about accountability. An effective Council governance system demonstrates accountability by:

·         clear objectives;

·         an effective risk management system;

·         the optimisation of organisational performance;

·         ensuring Council and staff act ethically and lawfully;

·         a transparent government, including wherever possible, the public disclosure of Council’s decisions, actions and outcomes; and

·         a financial management system that ensures responsible and accountable use of Council resources.

Standards Australia has issued a set of guidelines on Corporate Governance. Five Standards make up an integrated suite on good governance practice:

·         AS 8000 Good governance principles

·         AS 8001 Fraud and corruption control

·         AS 8002 Organisational codes of conduct

·         AS 8003 Corporate social responsibility

·         AS 8004 Whistleblower protection programs

 

Australian Standard AS 8000 – Good governance principles details the structural, operational and maintenance elements of good corporate governance. It communicates the message that corporate governance must be a high priority in an organisation and establishes the principles of good corporate governance. This policy has been prepared in accordance with AS 8000.

Policy Statement

Council will establish and maintain an effective governance framework in accordance with relevant legislation and published governance principles. This framework will be reviewed annually to ensure that Council is continuously acting in accordance with accepted good governance standards.

The Council’s Governance Framework will incorporate sound standards of governance that address legislative and regulatory principles. The Charter reflects the principles established by the Australian Standard AS8000 amended to take account of the legislative environment within which Council operates.

The principles include:

·         Lay solid foundations for management and oversight
Recognise and promote the respective roles and responsibilities of Council and its administration.

·         Promote ethical and responsible decision making
Actively promote ethical and responsible decision-making.

·         Safeguard integrity in financial reporting
Have a structure to independently verify and safeguard the integrity of Council’s financial reporting mechanisms.

·         Make timely and balanced disclosure
Promote timely and balanced disclosure of all material matters concerning Council’s operations.

·         Respect the rights of residents and stakeholders
Respect the rights of residents and stakeholders, and facilitate the effective exercise of those rights.

·         Recognise and manage risk
Establish and maintain a sound system of risk oversight, management and internal control.

·         Encourage enhanced performance
Fairly review and actively encourage enhanced Council effectiveness through quality management and continuous improvement.

·         Remunerate fairly and responsibly
Having regard to the remuneration requirements of the Local Government Act, seek to ensure that the level of support and composition of remuneration for Councillors and its administration is sufficient and reasonable, and that the relationship to corporate and individual performance is defined.

·         Recognise the legitimate interests of stakeholders
Recognise legal and other obligations to all legitimate stakeholders.

Related Policies

·         Code of conduct

·         Corporate communication

·         Financial risk management

·         Risk management

Review Triggers

This Policy is reviewed internally for applicability, continuing effect and consistency with related documents and other legislative provisions when any of the following occurs:

1.       The related documents are amended.

2.       The related documents are replaced by new documents.

3.       Amendments which affect the allowable scope and effect of a Policy of this nature are made to the head of power.

4.       Other circumstances as determined from time to time by a resolution of Council.

Notwithstanding the above, this Policy is to be reviewed at least once every two years for relevance and to ensure that its effectiveness is maintained.

Responsibility

This Policy is to be:

1.       implemented by the Chief Executive Officer and senior managers; and

2.       reviewed and amended in accordance with the "Review Triggers" by the Chief Executive Officer.