2016-08-09 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA   9 AUGUST 2016




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SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                   9 AUGUST 2016

           COUNCIL POLICY - Related Party Disclosures

           (i)  The nature of the related party relationship; and
           (ii) Relevant information about the transactions including:
                   a. The amount of the transaction;
                   b. The amount of outstanding balances, including commitments, and:
                           i. Their terms and conditions, including whether they are secured, and the nature
                             of the consideration to be provided in the settlement; and
                          ii. Details of any guarantee given or received;
                   c. Provision for doubtful debts related to the amount of outstanding balances; and
                   d. The expense recognised during the period in respect of bad or doubtful debts due from
                      related parties.
            The following matters must be considered in determining the materiality and significance of any
            related party transactions:

           (i)  Significance of transaction in terms of size;
           (ii) Whether the transaction was carried out on non-market terms;
           (iii) Whether the transaction is outside normal day-to-day business operations, such as the purchase
                   and sale of assets;
           (iv) Whether the transaction is disclosed to regulatory or supervisory authorities;
           (v) Whether the transaction has been reported to senior management; and
           (vi) Whether the transaction was subject to Council approval.

           Regard must also be given for transactions that are collectively, but not individually significant.
           Disclosures that related party transactions were made on terms equivalent to those that prevail in arm’s
           length transactions can only be made if such terms can be substantiated.
           All non-exempt transactions involving related parties will be captured and reviewed to determine
           materiality or otherwise of such transactions, and to determine the significance of such transactions.
           Practical Examples of Transactions to be disclosed
           Below are some practical examples of transactions, which may be considered to be disclosed:
           e   AKMP of Noosa Council is the Director of a company, which provided services to Noosa Council
               during the relevant period.
           e   AKMP of Noosa Council is a Director of an entity, which Noosa Council paid a membership fee
               to for the relevant period.

           6    EXEMPT RELATED PARTY TRANSACTIONS DISCLOSURES

           Related party transactions are not required to be disclosed in situations where a similar transaction
           would be applicable to the community generally and on similar terms. For example, the payment of
           rates by a KMP or the payment of the entry fee by a KMP to utilise the Noosa Aquatic Centre.

           7    ROLES AND RESPONSIBILITIES

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