2022-10-24 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                   24 OCTOBER 2022


•    TNC Breakdown of staff hours/labour relating to First Payment Noosa Council
•    Expenditure Report July 21-Jul 22 as per agreed activity codes and the extra itemised detail.
•    First invoice from M&J Marine for reef construction works.
•    First invoice from Ecological Service Professionals (ESP) for baseline monitoring works
•    Invoice from International Coastal Management for assistance with permit applications
•    Resource Recovery Australia invoice for shell collections from restaurants in Noosa.
•    International Coastal Management invoice for reef construction engineering oversight and
     associated contract deliverables
Finance and Corporate Services Director reviewed the documentation provided relative to the
Council resolution.
The key elements of the information provided by TNC are:
•     TNC have identified that the first invoice payment comprises primarily all salary costs with a
      number of minor invoices for minor consultancy activities
•     TNC have provided summary of salary costs by activity, but have advised are unable to
      provide transactional information on staff and pay levels
•     TNC have advised Director ESD it is impracticable to obtain FY21 historical minor
      consultancy invoices from their finance records archives
•     TNC have provided sample of major FY22 invoices to substantiate next milestone payment
      from Council. This contains engineering and construction invoices
•     TNC have advised Director ESD process has been implemented to collate all invoices
      moving forward for distribution to Council for claim acquittal
•     TNC have provided a copy of audited financial statements
In summary, whilst it is recognised that TNC have not provided all invoices for enabling complete
reconciliation of the first milestone payment, they have provided a sample and identified that the
majority of cost incurred is salary based and no invoice is available to reconcile this. To address
this, TNC have provided invoices to support the anticipated second milestone payment and have
committed to enacting processes to ensure all invoices and salary cost summary are provided with
claims for future process.
The supporting provision of financial statements, indicating the organisation is subject to financial
review and audit, provides a higher level of surety of sound financial management.
It is also noted that Finance recommends that for future process improvement, where Council
engages in funding arrangements of similar complexity and materiality, that the contract and any
supporting agreements clearly articulate the cost inputs (salary, in-kind and materials/services)
and the financial information provision requirements to support payment milestones. This will
provide certainty for both parties.
H.    Contact the TNC to commence in writing negotiations for inclusion within the current TNC
      Alliance Funding Agreement and/or any future TNC Alliance Funding Agreements to include
      the proper disclosure of all funds spent to include but not limited to: all receipts and financials
      to align with the Noosa Shire Council acquittal guidelines/policy to accurately show who each
      supplier/contractor/receiver of funds/receipts etc., to align with all other recipients of Noosa
      Shire Council Funding without prejudice the need to request in writing the information if
      Council wishes to see it as per the current 'Project Acquittal Form'.
This request has been made; however, it is noted that the Alliance and Funding Agreement has
now been completed and at this stage it is not intended to enter into a further formal agreement
with .TNC. TNC have indicated that they will provide invoices for all major contracts against
milestone payments. Council has two milestone payments remaining to pay TNC.
Council officers and TNC have discussed ongoing collaborative projects as there are a range of
significant research and initiatives that are still required for our River system to continue to improve


                                                                                       Page 43 of 113