An eagle eyed CCO reader has been going over the Coffs Harbour City Council’s (CHCC) accounts recently and has come across some interesting information.
The information relates to the 2017/18 financial statements from the annual report.
By The Editor
Before going any further CCO must stress that after due diligence we don’t believe what we are about to present is illegal in any way.
We believe it is within Council’s procurement processes and within the guidelines of the Local Government Act.
We do however wonder if most residents and ratepayers would consider what follows to be a fair and efficient use of their monies given other potential competitors exist in the local market.
In lay person’s terms we wonder if this would pass ‘the pub test’?
Key Management Personnel (KMP) transactions 2017-18
Each year councils in NSW are required to explain expenditures over and above salaries that relate to KMP’s. A KMP is someone who is a Mayor, Councillor, senior manager or senior staff.
On numbered page 81 (pg 83 of 149 if you are using the scroll bar) of the 2017/18 Annual Report – Section 3 – Annual Financial Statements there are two transactions for the supply of hire vehicles.
2017 states hire vehicles to the value of $66,000 were rented while 2018 records hire vehicles rented in that part of the financial year amounted to $101,499. That is a combined total of $167,499.
Footnote Number 1 then goes on to state (our emphasis added);
“Council hired vehicles for use during the year from Thrifty Car and Truck Rental, a company which has a member of Council’s KMP as a Director. Amounts were billed on normal hire rates and were due and payable under normal payment terms following the Council’s procurement processes.”
So what do you think?
Does this pass what you would would consider what follows to be a fair use of their monies given other competitors exist in the local market?
Here is the ‘pub test’ defined on You Tube;
Does what we have laid out above pass your pub test?
We at CCO have our own doubts as to whether it does.
The NSW State Government Audit Office interestingly also put the following rider on their audit statement;
The full set of accounts referred to above can be found here; https://www.coffsharbour.nsw.gov.au/Your-Council/Our-Responsibilities/Documents/Corporate%20Planning%20and%20Reporting/Att3%202017-18%20Annual%20Report%20Section%203%20-%20Annual%20Financial%20Statements%20-%20reduced%20-%20rotated%20pages.pdf