He ordered the inquiry after 11 months’ official monitoring of the shire and departmental criticism of its performance.

Three official investigators were appointed to inquire into the Toodyay Shire Council and its administration and report on whether they were functioning in the best interests of the community.

The investigators spent most of last year collecting many hours of evidence based on personal interviews with dozens of Toodyay witnesses before questioning shire councillors and staff.

The inquiry draft report is understood to be hundreds of pages long.

A Government spokesperson said a “senior authorised officer” had reviewed the draft report and forwarded it to the State Solicitor’s Office for assessment.

The Town of Cambridge and Shire of Wiluna are undergoing similar inquiries.

The front of the Pacific National locomotive cabin was crushed by the impact which upended the rear wagon of the grain train and spilled tonnes of grain and other wreckage onto the track.

Emergency crews worked day and night over the Christmas break to clear the line.

AvonLink and Prospector rail passengers were transferred to road coaches on Christmas Eve.

No AvonLink or Prospector services were scheduled to run on Christmas Day and Boxing Day, and the line was reopened on December 27.

The crash is being investigated by the Canberra-based Australian Transport Safety Bureau (ATSB), which operates a WA regional office at Perth Airport.

The bureau reported that both trains were substantially damaged.

The 61-year-old deceased man from Perth was employed by Pacific National, an Australian freight train operator based in Sydney.

He had previously worked as a police officer, youth worker and train driver in New Zealand, and was a leading member of the Mormon Church in Perth.

The grain train was operated by US transport company Watco, which lists WA grain handler CBH as its biggest Australian customer.

The line operator is Arc Infrastructure (formerly Brookfield Rail), which manages 5500km of rail in WA’s South-West and is owned by global Canadian company Brookfield Infrastructure Partners.

Federal investigators will examine the rolling stock and track infrastructure layout, interview workers and staff, analyse train computer records and inspect relevant documents.

The safety bureau said it expected to take more than six months to complete its investigation and release a final report.

“Should a critical safety issue be identified during the course of the investigation, the ATSB will immediately notify those affected and seek safety action to address the issue,” the bureau said.

About 500 hundred mourners attended the deceased driver’s funeral in Greenmount last month.

Mr Scott wrote a six-page report to last month’s council meeting urging councillors to reject President Manning’s proposal.

He said private industry supported a “clear separation of powers” between elected members and employed staff.

He quoted from a regional industry group submission that “it is imperative that there is a clear understanding by all of their responsibilities and boundaries”.

The WA Local Government Association (WALGA), which represents councils, and Local Government Professionals WA, which represents staff and of which Mr Scott is listed as Avon Branch Deputy President, supported this view too, he said.

However, both lobby groups failed last year to change local government law when the State Government withdrew its contested amendment to abolish council control over ‘Senior Employees’.

Big salaries

The roles of Corporate Services Manager Chileya Luangala, Planning and Development Manager Kobus Nieuwoudt, Works and Services Manager Scott Patterson and Community Development Manager Audrey Bell fall into that category.

None of them were previously designated in Toodyay as “Senior Employees”.
The shire’s latest annual report shows that each of the shire’s four senior managers earn $100,000-$130,000 a year, and Mr Scott gets $180,000-$190,000 a year.

Mr Scott said the overwhelming view of key industry bodies and the State Government was that the “Senior Employees” clause was an anachronism and should be removed.

He said it was still “likely to be removed” in future legislative amendments and recommended “that council NOT designate any employees as Senior Employees”.

‘Delving into administration’

Mr Scott’s recommendation was moved by Cr Brian Rayner and seconded by Cr Therese Chitty.

Cr Rayner said the current system had worked successfully for many years – changing it would result in the council “delving into administration”.

President Manning (left) said employing senior staff involved “important, critical decisions and I believe the council should have some say in those appointments and decisions”.

“It was put to Parliament to remove those provisions but didn’t get through despite being government policy,” he said.

Mr Scott’s recommendation to keep his power to hire and fire senior staff without council approval was lost 5-3 (Cr Ben Bell on leave), with only Crs Rayner, Paula Greenway and

Phil Hart backing Mr Scott.

Cr Greenway requested that the councillors’ names and votes be recorded in the minutes.

A second motion to designate the top four shire management roles as “Senior Employees” was moved by Cr Beth Ruthven and seconded by Deputy President Rosemary Madacsi.

‘Friction’

Deputy President Madacsi said that if there was “friction or an issue thing when a person is dismissed” the council had a responsibility to become involved.

Cr Greenway said she disagreed.

Mr Scott said the change “amounts to a power of veto”.

His view was rejected 5-3 with President Manning, Deputy President Madacsi, and Crs Chitty, Ruthven and Hart voting in favour on the motion, and Crs Rayner, Greenway and Sue Pearce against.

Cr Greenway again asked that their names be recorded.

See Editorial

“The operating surplus ratio and asset sustainability ratio has been below the DLGSCI (State Department of Local Government, Sport and Cultural Industries) standard for the past three years.”

The statement appears to contradict the auditor’s cover letter which says: “We noted no matters we wish to draw to your attention.”

To add to the confusion, the shire’s three-year Corporate Business Plan shows target ratios as percentages, but its financial statements report them as decimal figures.

Discrepances not noted

The discrepancies were not noted in Shire CEO Stan Scott’s recommendation to adopt the audit report, which was carried 8-0 at last month’s council meeting.

However, the council voted 8-0 to refer a management report containing the warning to the audit committee “for consideration”.

The shire’s three-year corporate business plan says an operating surplus ratio is a financial indicator of the “extent to which revenues raised cover operational expenses only or are available for capital funding purposes”.

The desired trend/target is “10 per cent or greater” but the shire’s latest financial statements show it as “(0.12)” – brackets in financial statements usually mean a deficit.
The figure for 2018 was (0.21), and it was (0.24) in 2017 and (0.47) in 2016.

The shire’s corporate business plan also says that the desired trend/target for its asset sustainability ratio is “90 per cent or greater” but financial statements show 0.58 in 2018, 0.74 in 2017 and 0.67 in 2016.

No reference in report

CEO Stan Scott made no reference to the audit warning in his introduction to the shire’s new 130-page annual report.

However, President Bill Manning raised it in his accompanying foreword.

“The operating surplus ratio measures the local government’s ability to cover its operational costs and have revenues available for capital funding and other purposes,” President Manning said.

“The asset sustainability ratio indicates whether a local government is replacing or renewing non-financial assets at the same rate that its overall asset stock is wearing out.

“The issue will need to be taken into account when reviewing the long-term financial plan in 2020 and when setting future budgets.”

The auditor’s warning was published at the end of the shire annual report after 50 pages of figures and complex accounting details.

Previous annual reports appear to show that the shire failed to meet operating surplus ratio targets for the past seven years.

‘Beautiful audit’ – CEO

“We had a beautiful audit with nothing in it,” Mr Scott told last month’s council meeting.
President Manning said that if it contained nothing, then Moore Stephens should be asked for permission to publicly release a concluding memorandum, which Mr Scott said was marked ‘confidential’.

A motion for its release was carried 8-0.

Councillors also voted 8-0 for a motion by new Audit Committee Chair Beth Ruthven, seconded by Deputy President Rosemary Madacsi, to refer the audit management report – including the warning – to the committee for further consideration.

The annual report will be open to public questions at an annual meeting of electors in the council chamber in Fiennes Street at 7pm on Tuesday February 18.