Davidson Business Advisory has confirmed in a Public Briefing to Councillors and the community that its independent review of City of Newcastle's processes, procedures and performance has found no instances of fraud, corruption, breaches of legislation or maladministration.
Rather, the review has found City of Newcastle to be a well-managed and high performing organisation, with numerous examples of best practice in the way that it operates and serves the community.
Davidson outlined 20 recommendations arising from their review along with actions for improvement across the six themes of general and financial governance, compliance, major projects, engagement and organisational culture.
The review was completed following a unanimous resolution of Councillors at the 10 December 2024 Ordinary Council meeting.
More than 800 public submissions from 548 individuals were considered during the review, alongside around 260 internal City of Newcastle documents and numerous one-one-one interviews with staff, Councillors and community members.
Davidson Business Advisory's Colin Jensen, who served as the CEO of Brisbane City Council for more than a decade, said the report's recommendations offer avenues for continued growth and excellence.
"Davidson Business Advisory was engaged to provide an impartial evaluation of City of Newcastle's current practices, aiming to enhance performance and maintain the highest standards of public service," Mr Jensen said.
"Every document and submission was considered by the reviewers, assessing them against City of Newcastle's adopted policies, processes and procedures to identify where there was evidence of best practice or opportunities for better practice.
"Overall, City of Newcastle was found to be a well-managed and high-performing organisation, with numerous examples of best practice highlighted in the repot.
"The review includes 20 actionable recommendations designed to enhance City of Newcastle's processes, ensure the organisation operates with the highest standards of transparency and accountability, and reinforce public trust in its ability to serve the community effectively."
City of Newcastle's independent Audit Risk and Improvement Committee (ARIC) was consulted at each phase of the review and accepted the final report ahead of the public briefing.
ARIC Chairman Stephen Coates highlighted the integrity of the process and praised City of Newcastle for its commitment to continuous improvement.
"The City of Newcastle Audit Risk and Improvement Committee has overseen independent consultants, Davidson, who conducted a thorough governance review," Mr Coates said.
"The final report highlights many positive findings, confirming that City of Newcastle is a well-managed, high-performing organisation with several examples of best practice. Importantly, there were no issues related to fraud, corruption, legislative breaches, or maladministration.
"While the report largely affirms the Council's strong performance, it also includes 20 suggestions for improvement, aimed at building on the current success, rather than addressing any issues of failure."
The full report will be tabled to the Ordinary Council Meeting on 27 May for endorsement by Councillors.
Davidson Business Advisory has worked with more than 100 local governments across Australia and are experienced in undertaking similar governance and performance reviews.
Full statement from ARIC Chair Stephen Coates
The City of Newcastle Audit Risk & Improvement Committee has overseen independent consultants, Davidson, who conducted a thorough governance review.
The final report highlights many positive findings, confirming that City of Newcastle is a well-managed, high-performing organisation with several examples of best practice.
Importantly, there were no issues related to fraud, corruption, legislative breaches, or maladministration.
Specifically, the Audit Risk & Improvement Committee oversaw the initial scoping of the review, as well as again confirming the scope after submissions had been received. We have been involved in the draft version of the report, but only to the extent of suggesting wording adjustments to better reflect the intent of the commentary.
When it comes to governance and City of Newcastle operations, there's a strong focus on professionalism and adherence to protocols in Council meetings. Even when tackling contentious issues like media communications or councillor conduct no misuse of authority has been found.
Financially, City of Newcastle remains in a solid position, with a diverse revenue base, competitive rates, and a high level of community investment. Debt and reserve management are both well managed, and service delivery is operating efficiently. The NSW Audit Office has raised no concerns in its latest external audit.
City of Newcastle has also adopted best practice compliance and enforcement policies. This final report indicates conflict of interest processes are generally well-managed, and disclosures are made appropriately. There were no major or systemic compliance failures identified.
Major projects are handled by a well-structured Project Management Office, which uses strong asset management and procurement policies. A "lessons learned" protocol helps improve future project delivery.
There are strong examples of community engagement strategies in place. City of Newcastle offers consultation opportunities and maintains transparency through public reports and other available planning documents. Proactive releases under GIPA and other detailed reporting further demonstrate City of Newcastle's commitment to transparency.
Finally, the staff and executive culture is described as positive, professional, and high performing.
While the report largely affirms the Council's strong performance, it also includes 20 suggestions for improvement, aimed at building on the current success, rather than addressing any issues of failure.
