Carol Altmann – The Terrier

Lyndoch Living’s failure to care for the elderly and frail was kept under wraps for more than a year, during which things didn’t improve –  but got worse.

That little bombshell was wrapped up in MP Dan Tehan’s media statement issued in response to The Terrier exclusive on Tuesday night.

Mr Tehan said the nation’s top aged care watchdog visited Lyndoch in response to a complaint way back in February LAST year.

As a result, the Aged Care Quality and Safety Commission slapped Lyndoch with a non-compliance order for Personal and Clinical Care (aka, the very reason an aged care home exists).

Never fear, Lyndoch assured the commission at the time, they had a plan!

Fast forward 12 months to January 2021 and the commission re-visited Lyndoch to find the situation was not better, but far worse.

How is that allowed to happen?

As revealed exclusively here on Tuesday night, Lyndoch failed not one, but three out of four standards, including using chemical restraint without consent, and failing to appropriately monitor residents after serious falls.

And when it came to staffing, the commission could not have been more blunt: “(Lyndoch had) not ensured the delivery of safe care and services”.

If Lyndoch can’t get this right, what is it there for? To sponsor golf and horse racing?

Lyndoch’s three-year accreditation comes around again in August.

Lyndoch told the paper (it doesn’t respond to The Terrier) that it has an “action plan”, none of which has been detailed or publicly costed.

There is no mention of it on its website.

Once again, we are kept in the dark by a board and Lyndoch executive who are failing to deliver Lyndoch’s core business.

If The Terrier had not been tipped off about this latest report, nobody would know a thing about any of this.

“This” is the neglect that follows as a natural consequence of our nursing home not having enough staff, not having enough qualified staff, getting rid of experienced staff, and staff quitting because they are physically and emotionally exhausted.

At least 120 people have left Lyndoch in recent years, from very experienced and senior operators, down to those who only lasted a year or two.

These are the ever-growing band of alumni dismissed by Lyndoch as “disgruntled workers”, when in fact they are soldiers returned from the battlefield with warnings of what lies over the horizon.

“This” is a consequence of changing priorities where Lyndoch will overload itself with executives, but can’t fix the nurse call-bell system that is still unreliable.

“This” is a culture that will happily see Lyndoch go into massive debt for a new $24 million medical clinic based on an invisible business plan, rather than hiring more hands and hearts on the ground.

This is not the fault of the nursing and care staff: the moral collapse starts with the executive and board who set Lyndoch’s vision and priorities.

Don’t just take my word for it.

Take it from former Lyndoch Director of Nursing Penny Iddon who wrote this on the Terrier Facebook page after the breaking story:

“Poor standards of care are a direct result of poor and inadequate management oversight.

“The Board, the CEO and the senior nursing staff must take responsibility for this appalling result. The Board can no longer bury their heads in the sand and the CEO can’t keep passing the buck.

“After all, what the Auditors reported on regarding poor and outdated care practices has been allowed to continue under their watch which indicates a clear breakdown of systems, protocols and values.”

We have now seen in stark detail this week how Lyndoch is breaking down.

It has broken down in its duty of care.

And there are fears if the medical clinic goes ahead at the scale which is planned, it will break down financially.

How ironic, then, to see the Lyndoch CEO listed among the guest speakers jetting off to at an aged care forum next month in Sydney.

The topic?

Attracting and retaining new talent to revitalise your workforce.

Carol Altmann – The Terrier

Update: The Ombudsman’s report reveals the 10 recommendations from the external auditor that were adopted by the council in March this year.

Why, oh why, were these rules around credit cards not in place in the first place? They seem so straight forward.

Here is the summary of the changes:

1. Provide fraud and corruption control training to all Council staff including reporting of actual or suspected fraud and corruption.

2. Review and update Fraud and Corruption Control Plan and Procedure to include fraud incident reporting protocols to the Council.

3. Establish a criterion to determine the need for a credit card by a staff member.

4. Review and update the existing Corporate Credit Card Procedures, including to stipulate the roles and responsibilities of an authoriser, create list of risk factors for authorisers to be aware and create guidelines on ‘taking face value explanations’ versus ‘appropriate inquiry’.

5. Provide training to authorisers with respect to approval of monthly credit card expenses.

6. Review and update the existing Fraud and Corruption Controls Procedure to include specific trigger points when an independent auditor should be brought in (i.e. the period after unusual/misuse has been identified to when possible fraud is suspected).

7. Implement a process wherein pre-approvals (except CEO) shall be required for expenses such as (but not limited to):
a. Business travel
b. Accommodation
c. Conferences
d. Seminars

8. Implement an approval process which aligns with the practice recommended by the Victorian Auditor General. The Council’s Chief Financial Officer or Director Corporate Strategies, shall approve CEO’s credit card expenditure, and table the full transaction history to the Audit and Risk Committee.

9. Implement ongoing reporting and monitoring processes that fosters continuous improvement of credit card processes (with suggested areas for improvements including implementing Breach reports and Repeat Offenders report)

10. Incorporate a process wherein Statutory Declarations are witnessed by one of the many people authorised to do so (outside the Council).

I have one more update to come.

(You can download the full report here.)

Carol Altmann – The Terrier

JUST IN: This is a shock – the W’bool City Council has voted 4/3 tonight to ask the Local Government Minister to look at ALL aspects of the council’s financial performance and governance for the seven years up to 31.12.2018.

Cr Peter Hulin’s motion was supported by Mayor Tony Herbert, Cr Sue Cassidy, and Cr Robert Anderson.

Such a review, if the Minister agrees to it, would be at no cost to council.

Wow. This a true win for people power. An absolute win.

Meanwhile, Cr Kylie Gaston – who voted against this move – was ropable that The Terrier was exposing all sorts of things and made sure that we knew it. My hair was on fire by the end of that blast!

In particular, my reporting on the business links between the council’s economic development manager Shaun Miller and private businessman Ravin Merchandani really grated Cr Gaston’s wick. Why?

I must be on to something, so you know what that means, don’t you? On. We. Go.

Carol Altmann – The Terrier

Here is a story of two lavish Warrnambool dinners, held two months apart, costing more than $2000 and paid for via another Warrnambool City Council corporate credit card.

“It’s just one credit card,” Mayor Tony Herbert keeps repeating, “just one”.

No, not one. Not two. Now three, and it’s not over yet.

I have to keep rolling these out, because two months’ after the first bombshell hit, the WCC still refuses to accept it has a deep-seated culture of entitlement and secrecy that has seen questionable spending of public money for years (#notallstaff).

This time it’s a dinner at the Myrtle Bar and Kitchen last July for perhaps three or four people, including a current councillor, who between them spent almost $700 on servings of eye fillet, five bottles of shiraz (@$79 each) and more wine by the glass before things wrapped up a few minutes before midnight.

The guests, I am guessing, must have had a decent old hangover the next day.

But wait, there’s more. There always is.

Another dinner, costing an eye-watering $1476, but for more people – maybe 10 – was held at Pippies By the Bay restaurant in late May last year and included dishes of eye fillet with crayfish tail, abalone entrees, yellowtail kingfish, duck breast, fresh oysters and desserts.

The food was washed down with five bottles of wine and six glasses of champagne, with several more wines bought by the glass before everyone piled out the door and into the night.

Both of these dinners were paid for by a senior council manager using a WCC credit card and were held less than two months apart.

I don’t know what these dinners were for and perhaps they were of enormous benefit to Warrnambool, so on Monday I asked the senior manager and the councillor three simple questions:

i) the purpose of each dinner?

ii) the demonstrable outcome for Warrnambool as a result of each dinner?

iii) who signed off on the cost of each dinner?

I still don’t know the answers to those questions, but you can read the response today from the WCC media adviser in full here.

I don’t want to incite a riot and this is a truth I hoped I wouldn’t have to expose, because I trusted the council would be in full blown action mode by now, but it just doesn’t get it.

All the council hopes to do is tweak a few internal policies and pray the whole thing goes away: it won’t.

Because this is not about catching people breaking the law – which is what Cr Herbert fails to grasp – but exposing the steaming pile of inappropriate and unjustifiable spending that gives so little return to the ratepayer.

It’s this unjustifiable spending – via poor governance – that people want independently audited, cleaned up and cleaned out.

There was the perfect chance for the Mayor, CEO Peter Schneider and the councillors to stand before the public at at last Thursday’s emergency meeting and say we are so sorry for allowing your money to be wasted. We are on to it. We are taking it very seriously and we are doing all we can to flush it right out.

Instead, they all – bar one in Cr Hulin – behaved like kids dragged before the headmaster, twitchy and testy, as if they didn’t want to be there, because they didn’t.

Local MP Roma Britnell recently confirmed to a resident that both she and the Local Government Minister were poised to intervene: “The opportunity was provided to the city council, by both myself and the Minister, to conduct an independent review, they have chosen a certain way to proceed,” she wrote.

So the council was dragged kicking and screaming to the table and it showed.

Cr Herbert stuck to his mantra. Cr Anderson sat there and said nothing. Cr Neoh – briefly – lost his temper, while Cr Gaston stood up and announced she was “very confident” all was well.

No, Cr Gaston, all is not well.

Let’s not forget that this council first talked about breaking the rate cap in 2017, yet throughout 2018, the unbridled spending on food, drinks and alcohol rolled on.

Nothing changed.

And because nothing changed, we are now picking up the bill through higher rates.

It is outrageous and yet we know it is just one part of a much bigger picture where so much waste was and is allowed to happen.

There was nothing illegal about a senior manager buying a shed for $100,000 and the council selling it for $2000. There was nothing illegal about throwing $3 million of taxpayers’ money into Flagstaff Hill and it now costing ratepayers $750,000 a year to prop up. There is nothing illegal about building an unnecessary roundabout outside the Warrnambool Bowls’ Club where Cr Anderson is a member.

And there was nothing illegal about council staff spending hundreds of dollars on food and wine, because it was happening in plain sight and approved by those in charge.

I have now reported on three council credit card holders who have indulged in questionable spending, and there are more (#notallstaff).

If our councillors don’t know about all of this by now, then our CEO is not doing his job for his $320,000-a-year package.

I know Mr Schneider is a busy man, but he did find time to email me last week, not with any answers or insights, but asking me to refrain from naming council staff.

As a journalist, I never publish a name without it being relevant, but I will wait and see – in this case – if the senior manager and councillor involved will step out and name themselves.

In the meantime, those of us outside the tent will continue to dive deep, down to the very bottom of this culture of entitlement and waste, and use every muscle we can to turn it around.

We still have some way to go.

If you would like to be part of The Terrier, you can throw something into the tip jar below.

Terrier Tip Jar

Carol Altmann – The Terrier

These were my questions about the two dinners:

i) the purpose of each dinner?

ii) the demonstrable outcome for Warrnambool as a result of each dinner?

iii) who signed off on the cost of each dinner?]

I will let the Warrnambool City Council response speak for itself. Here is it in full:

“We are aware you recently emailed questions relating to credit card expenditure to a councillor and Council officer.

This is Council’s response to those inquiries.

As we have previously advised, Council is fully aware of its reporting obligations to referral authorities and any actions that are required.  Those obligations are taken very seriously. The regulations around reporting responsibilities mean that Council cannot confirm whether a referral has been made and nor can Council provide publicity or commentary on the process.

The constraints on Council around the referral process have been made known to the media on several occasions in recent weeks.

The questions you have asked are also part of a current FOI inquiry initiated by you. Given these matters are yet to be finalised, it would be inappropriate to provide further detail at this time.

In addition to the above, at the recent Special Council meeting the following resolution was passed:

1a)       That Council, via the Audit & Risk Committee, immediately (Audit & Risk Committee Meeting of the 27 August 2019) engage an External Auditor to undertake an audit to review and assess the adequacy of:-

• Existing policies, governance, reporting and investigation processes/procedures in the handling of the current credit card misuse issue that was identified in September 2018.

1b)       The scope of the audit to include:-

            SCOPE

Review the adequacy of Council policies, procedures and processes in relation to:-

• Dealing with expenditure authorisation and delegation;
• Trigger points for reporting (unusual transactions and/or misuse and/or fraud) to the Audit & Risk Committee (via confidentiality reports or meetings);
• Trigger points when an auditor should be brought in (i.e. the period after unusual/misuse has been identified to when possible fraud is suspected);
• Guidelines on “taking face value explanations” vs “appropriate inquiry”;
• Guidelines to ensure there are procedures to mitigate and prevent the acceptance of face value assumptions;
• Adding another layer of probity and transparency by providing trigger points for the use of an auditor.

1c)       Should the External Auditor require clarification of the scope of the audit, as outlined in 1b) then the Auditor shall communicate directly with Cr Neoh and Cr Cassidy and the Chair of the Audit & Risk Committee.

1d)       Once appointed, the External Auditor to meet, in camera with Cr Neoh, Cr Cassidy and the Chair of the Audit & Risk Committee, to outline the scope (in accordance with 1b).

1e)       That the External Auditor report directly to the subsequent (post 27 August 2019) Audit & Risk Committee Meeting or early if called by the Audit & Risk Committee Chairman.