Investigation into the conduct of the former city of botany bay council chief financial officer and others (Operation Ricco)

Findings 2

Allegations are not findings. A commission's finding or opinion of corrupt conduct or misconduct is not a finding that a person is guilty of a criminal offence, and the commissions say so in their reports.

1. serious corrupt conduct

   Finding

   The Commission found that Mr Goodman engaged in serious corrupt conduct by:

   Report, page 8, Summary of investigation and outcomes

2. serious corrupt conduct

   Finding

   The Commission also found that the following persons engaged in serious corrupt conduct:

   Report, page 9, Summary of investigation and outcomes

Recommendations 9

1. Recommendation 1

   That Bayside Council reviews its financial processes and makes any necessary changes to ensure that: its vendor master file is subject to appropriate segregation and review-based controls sufficient segregations exist in its invoice payment processes (including the introduction of a three-way match arrangement) to manage the risks associated with fraudulent payments operational managers have visibility over, and involvement in, setting budgets and monitoring expenditure against these budgets adequate segregations exist across different financial processes.

   City of Botany Bay Council – allegations concerning former chief financial officer (Operation Ricco), Recommendations for corruption prevention

2. Recommendation 2

   That Bayside Council undertakes a review of the control frameworks governing processes that are vulnerable to corruption (including those related to procurement, invoice payment, fleet management and charge-card usage) and implements any recommendations arising from the review.

   Report, page 10

3. Recommendation 3

   That Bayside Council reviews the position descriptions of key operational and financial roles to ensure that they include the required skill sets and qualifications.

   Report, page 10

4. Recommendation 4

   That Bayside Council ensures that the implementation of both internal and external audit recommendations is considered by the elected body when evaluating the performance of the general manager.

   Report, page 10

5. Recommendation 5

   That Bayside Council undertakes a risk assessment (including an assessment of fraud and corruption risks) to inform its internal audit plan.

   Report, page 10

6. Recommendation 6

   That Bayside Council ensures that its internal audit function operates independently from management by reporting functionally to its audit committee.

   Report, page 10

7. Recommendation 7

   That Bayside Council ensures it has a robust system in place to monitor and report on the implementation of internal audit recommendations that is independent from management.

   Report, page 10

8. Recommendation 8

   That the general manager of Bayside Council conducts a review of the audit committee’s effectiveness and the adequacy of its arrangements to ensure that it fulfils the responsibilities of its charter and provides sufficient assistance to Bayside Council’s governing body on governance processes.

   Report, page 10

9. Recommendation 9

   That the NSW Government considers adopting a model of local council oversight that is comparable to that applicable to state government agencies. This model could include: mandatory administration and governance directives similar to those that apply to state government agencies requirements concerning the composition and operation of audit committees that are similar to those that apply to state government agencies the requirement for council general managers to attest that audit committees are operating in accordance with requirements.

   City of Botany Bay Council – allegations concerning former chief financial officer (Operation Ricco), Recommendations for corruption prevention

Published responses 6

• 24 month progress report - Bayside Council

  Progress report

• 24 month progress report - Office of Local Government

  Progress report

• 12 month progress report - Bayside Council

  Progress report

• Action plan - Bayside Council - Part A

  Action plan

• Action plan - Bayside Council - Part B

  Action plan

• Action plan - Office of Local Government

  Action plan

Coverage

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