Division 1 Councillor, Dick Newman, said the community needed to see and be satisfied with the process Council had followed to date in relation to the Community Precinct Project.   "I believe the probity audit will achieve this," Cr Newman said. "It is a slow process as all the checks and approvals must be in place at every stage."

"However, we are working towards completing this transparent community process as quickly as possible so that it has minimal impact on the Maleny Precinct Project."

Tenders will close on 14 February 2005.   It is expected that the successful tenderer will be appointed by late February or early March.   The tender process and the Terms of Reference for the probity audit are being handled by an independent company, Vincents Forensic Accountants.

Council tenders for Precinct project auditor Audit Objectives:

To conduct a probity audit with respect to the Maleny Community Precinct Project ("the Project") and report on whether the Council has conducted itself in compliance with all relevant aspects of the law, the Local Government Act, regulations, Council's policies and procedures and prudent commercial practice.

Background:

Council identified an opportunity to create a Maleny Community Precinct encompassing residential development, an 18 hole golf course and a site for additional community facilities.   The Council has Title to the land at the Cal Aqua site in Maleny and has acquired adjacent land for the proposed development.

A new Council was elected earlier this year and before it proceeds any further with the Project, it has resolved that: the Maleny Precinct Project be put on hold, pending satisfactory completion of a probity audit and completion of a satisfactory report on all Maleny Community Precinct audit details expenditure incurred to date.    Expenditure incurred to include any and all creditors, any and all contracts for future work and anything else that may relate to expenditure.    Any expenditure of a capital nature is to be provided.   Any contingent liabilities are to be reported.

Audit Risks/Issues

The following specific risks and issues have been identified:    The process adopted by the Council in its assessment and acquisition of property including contract conditions and the ultimate purchase price;   The selection of the proposed development joint venture party, The Leckford Group, and the Councils proper identification of any potential conflicts of interest resulting from such a relationship.