AGENDA
Audit, Risk, and Finance Committee Meeting
Date: |
Thursday, 27 September 2018 |
Time: |
11.15 am |
Location: |
Council Chamber Memorial Avenue Kaikohe |
Membership:
Cr John Vujcich - Chairperson
Mayor John Carter
Cr Tania McInnes
Cr Ann Court
Cr Felicity Foy
Cr Colin (Toss) Kitchen
Cr Sally Macauley
Cr Kelly Stratford
Independent Member Bruce Robertson
Community Board Chairpersons
Adele Gardner - Te Hiku
Mike Edmonds - Kaikohe-Hokianga
Terry Greening - Bay of Islands-Whangaroa
Audit, Risk, and Finance Committee Meeting Agenda |
27 September 2018 |
CORPORATE COMMITTEE MEMBERS REGISTER OF INTERESTS
Name |
Responsibility (i.e. Chairperson etc) |
Declaration of Interests |
Nature of Potential Interest |
Member's Proposed Management Plan |
Hon John Carter QSO |
Board Member of the Local Government Protection Programme |
Board Member of the Local Government Protection Program |
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Carter Family Trust |
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Felicity Foy |
Director - Northland Planning & Development |
I am the director of a planning and development consultancy that is based in the Far North and have two employees. |
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I will abstain from any debate and voting on proposed plan change items for the Far North District Plan. |
I will declare a conflict of interest with any planning matters that relate to resource consent processing, and the management of the resource consents planning team. |
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I will not enter into any contracts with Council for over $25,000 per year. I have previously contracted to Council to process resource consents as consultant planner. |
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Flick Trustee Ltd |
I am the director of this company that is the company trustee of Flick Family Trust that owns properties on Weber Place and Allen Bell Drive. |
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Elbury Holdings Limited |
This company is directed by my parents Fiona and Kevin King. |
This company owns several dairy and beef farms, and also dwellings on these farms. The Farms and dwellings are located in the Far North at Kaimaumau, Bird Road/Sandhills Rd, Wireless Road/ Puckey Road/Bell Road, the Awanui Straight, Tahuna Road/Allen Bell Drive. |
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Foy Farms partnership |
Owner and partner in Foy Farms - a farm in three titles on Church Road, Kaingaroa |
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Foy Farms Rentals |
Owner and rental manager of Foy Farms Rentals for 6 dwellings on Church Road, Kaingaroa |
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King Family Trust |
This trust owns several titles/properties at Cable Bay, Seaview Rd/State Highway 10 and Ahipara - Panorama Lane. |
These trusts own properties in the Far North. |
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Previous employment at FNDC 2007-16 |
I consider the staff members at FNDC to be my friends |
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Partner Felicity Foy |
Employed by Justaplumber Taipa |
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Friends with some FNDC employees |
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Colin Kitchen |
No form received |
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Tania McInnes |
Director – GBT Ventures Ltd |
Company not currently operational |
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Will notify Council if company becomes operational. |
Member of Northland Conservation Board |
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Conservation matters not aligned with Council policy. |
Will notify Council should a perceived conflict arise. |
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Trustee – Northland Youth Education Trust |
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No perceived conflicts |
Will notify Council should a perceived conflict arise. |
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Founder – Bay of Islands Women’s Nexus |
No perceived conflicts. An informal organisation |
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Own a section on Seaview Road, Paihia 0200 |
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Having worked within the organisation in the early 2000’s, I know a number of staff, none of which I am close with. |
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John Vujcich |
Board Member |
Ngati Hine Health Trust |
Matters pertaining to property or decisions that may impact of their health services |
Declare interest and abstain |
Board Member |
Pioneer Village |
Matters relating to funding and assets |
Declare interest and abstain |
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Director |
Waitukupata Forest Ltd |
Potential for council activity to directly affect its assets |
Declare interest and abstain |
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Director |
Rural Service Solutions Ltd |
Matters where council regulatory function impact of company services |
Declare interest and abstain |
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Director |
Kaikohe (Rau Marama) Community Trust |
Potential funder |
Declare interest and abstain |
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Partner |
MJ & EMJ Vujcich |
Matters where council regulatory function impacts on partnership owned assets |
Declare interest and abstain |
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Member |
Kaikohe Rotary Club |
Potential funder, or impact on Rotary projects |
Declare interest and abstain |
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Member |
New Zealand Institute of Directors |
Potential provider of training to Council |
Declare a Conflict of Interest |
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Member |
Institute of IT Professionals |
Unlikely, but possible provider of services to Council |
Declare a Conflict of Interest |
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Member |
Kaikohe Business Association |
Possible funding provider |
Declare a Conflict of Interest |
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Ann Court |
Waipapa Business Association |
Member |
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Warren Pattinson Limited |
Shareholder |
Building company. FNDC is a regulator and enforcer |
No FNDC Controls |
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Kerikeri Irrigation |
Supplies my water |
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No EM intervention in disputes |
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Top Energy |
Supplies my power |
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No other interest greater than the publics |
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District Licensing |
N/A |
N/A |
N/A |
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Top Energy Consumer Trust |
Trustee |
Crossover in regulatory functions, consenting economic development and contracts such as street lighting. |
Declare interest and abstain from voting. |
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Ann Court Trust |
Private |
Private |
N/A |
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Waipapa Rotary |
Honorary member |
Potential community funding submitter |
Declare interest and abstain from voting. |
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Properties on Onekura Road, Waipapa |
Owner Shareholder |
Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse) |
Declare interest and abstain from voting. |
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Property on Daroux Dr, Waipapa |
Financial interest |
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Flowers (I get flowers occasionally) |
Ratepayer 'Thankyou' |
Bias/ Pre-determination? |
Declare to Governance |
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Coffee and food |
Ratepayers sometimes 'shout' food and beverage |
Bias or pre-determination |
Case by case |
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Consider all staff my friends |
N/A |
Suggestion of not being impartial or pre-determined! |
Be professional, due diligence, weigh the evidence. Be thorough, thoughtful, considered impartial and balanced. Be fair. |
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My husband is a builder and may do work for Council staff |
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Warren Pattinson (Husband) |
Warren Pattinson Limited |
Director |
Building Company. FNDC is a regulator |
Remain at arm’s length |
Air NZ |
shareholder |
None |
None |
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Warren Pattinson Limited |
Builder |
FNDC is the consent authority, regulator and enforcer. |
Apply arm’s length rules |
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Kurbside Rod and Custom Club (unlikely) |
President NZ Hot Rod Association |
Potential to be linked to a funding applicant and my wife is on the decision making committee. |
unlikely to materialise but would absent myself from any process as would Ann. |
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Property on Onekura Road, Waipapa |
Owner |
any proposed FNDC capital work in the vicinity or rural plan change. Maybe a link to policy development. |
Would not submit. Rest on a case by case basis. |
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Sally Macauley |
Chairman |
Northland District Health Board |
Matters pertaining to health issues re Fluoride and freshwater as an example. |
Declare a perceived conflict. |
Chairman |
Oranga Tamaraki - Ministry of Vulnerable Children- Northland Community Response Forum |
Matters pertaining to this ministry |
Declare a perceived conflict. |
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Judicial Justice of the Peace |
Visitations to Ngawha Prison |
Matters pertaining to Judicial Issues re Ngawha Prison |
Declare a perceived Interest |
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The Turner Centre |
FNDC Representative |
Observer, acknowledging FNDC financial contribution. |
Note FNDC partnership |
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Trustee |
Kaikohe Education Trust |
Providing students laptops - possible request for written support to funders |
Declare a conflict |
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Executive member |
Kaikohe Business Association |
Matters pertaining to request for written support to funders. |
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Chairman |
Bay of Islands Arts Festival Trust |
Issues pertaining to the application of support funds |
Declare a conflict of interests |
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Trustee |
Bay of Islands Radio Marine |
Issues pertaining to the application of support funds |
Declare a conflict of interests |
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Secretary/Trustee |
Kerikeri International Piano Competition |
Issues pertaining to the application of support funds |
Declare a conflict of interests |
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Trustee/Director |
Kaikohe Community and Youth Trust |
Possible application of support funding |
Declare a conflict of interests |
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Commercial |
Palmer Macauley Offices- Kerikeri and Kaikohe |
Infrastructural matters with FNDC |
Declare a conflict |
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Private property of which there would not be any conflict. Paihia, Kerikeri, Kaikohe |
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Peter Macauley (Husband) |
Senior Partner |
Palmer Macauley |
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Peter Macualey |
Barristers and Solicitors- Kerikeri, Kaikohe and Mangonui |
Legal matters with FNDC |
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Director/Trustee |
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St John NZ Priory Chapter |
St John Priory Chapter |
Legal matters with FNDC |
Declare a conflict |
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Senior Partner |
Peter Macauley- Palmer Macauley Barristers and Solicitors Kaikohe, Kerikeri AND Mangonui |
Legal matters with FNDC |
Declare a conflict |
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St John NZ |
Priory Trust Board |
Writing of policies and legal matters as an example |
Note Interests |
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Lions Club of Kaikohe |
Director |
Legal matters etc |
Note Interests |
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Kaikohe Rugby Club |
Patron |
Legal Matters |
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Viking Rugby Club, Whangarei |
Life Member |
Legal Matters |
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Private Property |
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Kerikeri, Paihia - no contents. |
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Bruce Robertson |
No interests to declare |
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Mike Edmonds |
Chair |
Kaikohe Mechanical and Historic Trust |
Council Funding |
Decide at the time |
Committee member |
Kaikohe Rugby Football and Sports Club |
Council Funding |
Withdraw and abstain |
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Adele Gardner |
N/A - FNDC Honorarium |
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The Far North 20/20, ICT Trust |
Trustee |
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Te Ahu Charitable Trust |
Trustee |
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ST Johns Kaitaia Branch |
Trustee/ Committee Member |
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I know many FNDC staff members as I was an FNDC staff member from 1994-2008. |
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Partner of Adele Gardner |
N/A as Retired |
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Terry Greening |
Greening Family Trust |
Beneficiary |
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Highly unlikely to interface with FNDC |
Bay of Islands Walking Weekend Trust |
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Potential of seeking funds |
Step aside from any requests or decisions regarding requests |
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Russell 2000 Trust (Chairman) |
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Trust is about to wind up. |
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Russell Centennial Trust (ex-officio trustee) |
Manages Russell Museum |
Seeks funds from council |
Step aside from any requests or decisions regarding requests |
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Residence at Kaha Place, Russell |
Nil |
Nil |
N/A |
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Terry Greening (Wife) |
Greening Family Trust |
Beneficiary |
N/A |
N/A |
Residence at Kaha Place, Russell |
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Audit, Risk, and Finance Committee Meeting Agenda |
27 September 2018 |
Audit, Risk, and Finance Committee Meeting
will be held in the Council Chamber, Memorial Avenue, Kaikohe on:
Thursday 27 September 2018 at 11.15 am
Order Of Business
1 Apologies and Declarations of Interest
3.1 Confirmation of Previous Minutes
3.2 Capital Carry Forwards June 2018
3.3 Council Financial Report August 2018
4.2 Pre funding of approved debt
4.3 Confirmation of Previous Minutes (Public Excluded)
4.4 Draft Annual Report FInancials 2017-18
4.5 Far North Holdings Ltd Annual Report for June 2018
4.6 Internal Audit Update - September
4.7 Organisational Risk Framework
4.8 FNDC Current Legal Action Potential Liability Claim
Members need to stand aside from decision-making when a conflict arises between their role as a Member of the Community Board and any private or other external interest they might have. This note is provided as a reminder to Members to review the matters on the agenda and assess and identify where they may have a pecuniary or other conflict of interest, or where there may be a perception of a conflict of interest.
If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the meeting or of the relevant item of business and refrain from participating in the discussion or voting on that item. If a Member thinks they may have a conflict of interest, they can seek advice from the Chief Executive Officer or the Team Leader Governance Support (preferably before the meeting).
No requests for deputations were received at the time of the Agenda going to print.
27 September 2018 |
3.1 Confirmation of Previous Minutes
File Number: A2176154
Author: Melissa Wood, Meetings Administrator
Authoriser: Kate Barnes, Governance Support Team Leader
Purpose of the Report
The minutes of the previous Audit, Risk, and Finance Committee meeting are attached to allow the Committee to confirm that the minutes are a true and correct record
That the Audit, Risk, and Finance Committee confirm that the minutes of the meeting of the Committee held 26 June 2018 are a true and correct record. |
1) Background
Local Government Act 2002 Schedule 7 Section 28A states that a local authority must keep minutes of its proceedings. The minutes of these proceedings duly entered and authenticated as prescribed by a local authority are prima facie evidence of those meetings.
2) Discussion and Options
The minutes of the meeting are attached. Far North District Council Standing Orders Section 27.3 states that no discussion shall arise on the substance of the minutes in any succeeding meeting, except as to their correctness.
Reason for the recommendation
The reason for the recommendation is to confirm the minutes are a true and correct record of the previous meeting
3) Financial Implications and Budgetary Provision
There are no financial implications or the need for budgetary provision as a result of this report.
1. Audit,
Risk, and Finance Committee Unconfirmed Minutes 26 July 2018 - A2117706 ⇩
Compliance schedule:
Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:
1. A Local authority must, in the course of the decision-making process,
a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and
b) Assess the options in terms of their advantages and disadvantages; and
c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.
2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.
Compliance requirement |
Staff assessment |
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy |
Not applicable |
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision. |
Not applicable |
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought. |
Not applicable |
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water. |
None |
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences. |
Not applicable |
State the financial implications and where budgetary provisions have been made to support this decision. |
There are no financial implications or the need for budgetary provision arising from this report. |
Chief Financial Officer review. |
The Chief Financial Officer has not reviewed this report. |
Audit, Risk, and Finance Committee Meeting Agenda |
27 September 2018 |
MINUTES OF THE MEETING OF THE AUDIT, RISK, AND FINANCE COMMITTEE held AT THE KERIKERI SPORTS COMPLEX, CNR HERITAGE BYPASS AND WAIPAPA ROAD, KERIKERI ON THURSDAY 26 JULY 2018 COMMENCING AT 01:00 PM
PRESENT
John Vujcich |
Chairperson |
Members |
|
John Carter |
Mayor |
Tania McInnes |
Deputy Mayor |
Ann Court |
Councillor |
Sally Macauley |
Councillor |
Kelly Stratford |
Councillor |
Colin Kitchen |
Councillor |
Felicity Foy |
Councillor |
External appointee |
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Bruce Robertson Independent Member |
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IN ATTENDANCE |
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Adele Gardner |
Chairperson Te Hiku Community Board |
Mike Edmonds |
Chairperson Kaikohe-Hokianga Community Board |
Terry Greening |
Chairperson Bay of Islands-Whangaroa Community Board |
STAFF PRESENT |
|
Shaun Clarke |
Chief Executive Officer |
Matt Bell |
General Manager Corporate Services (Acting) |
Glenn Rainham |
General Manager Infrastructure and Asset Management (Acting) |
Janice Smith |
Chief Financial Officer |
George Swanepoel |
In-House Counsel |
Paul Carr |
Manager Infrastructure Project Delivery |
Tanya Nowell |
Team Leader Infrastructure Programmes |
Melissa Parlane |
Team Leader Infrastructure Planning |
Leanna Ransom |
Leanna Ransom Internal Auditor |
Tanya Reid |
Business Improvement Advisor |
John Marshall |
Project Manager Information Services (Acting) |
Simon Millichamp |
Solid Waste Engineer |
Melissa Wood |
Meetings Administrator |
Kate Barnes |
Team Leader Governance Support |
Maryn Ashby |
Meetings Administrator |
1.0 Apologies AND DECLARATIONS OF INTEREST
Agenda item 1.0 refers.
There were no apologies or declarations of interest.
2.0 confirmation of previous minutes
Agenda item 2.0, document number A2096356, pages 1-7 refers.
Resolved Kitchen/Stratford
That the Committee confirm that the minutes of the meeting of the Audit, Risk, and Finance Committee held 31 May 2018 are a true and correct record.
Carried
3.0 Committee Information Reports
Agenda item 3.0, document number A2096123, pages 9-79 refers.
Resolved Vujcich/Stratford
That the Audit, Risk, and Finance Committee note the information reports entitled and dated:
a) “Risk Management Report as at 20 June 2018” - 20 June 2018
b) “Revenue Recovery Report - June 2018” - 5 July 2018
c) “Council Financial Report as at 31 May 2018” - 5 July 2018
d) “Quarterly Performance Report Q4 - Period: 1 April to 30 June 2018” - 6 July 2018
e) “Mayoral Discretionary Fund Annual Report 2017/18” - 6 July 2018
Carried
4.0 PUBLIC EXCLUSION
4.1 Resolution to Exclude the Public
Resolved Deputy Mayor McInnes/Robertson
That the public be excluded from the meeting pursuant to section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 on the grounds that the public conduct of the proceedings would be likely to result in the disclosure of information for which good reason for withholding exists, while the matters listed below are being dealt with for the reason as set out below;
1.0 Confirmation of Previous Minutes
2.0 Internal Audit Report - July 2018
3.0 FNDC Current Legal Action Potential Liability Claims - July 2018
Reason: To enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities
Carried
5.0 CONFIRMATION OF DECISIONS AND INFORMATION IN OPEN MEETINGS
Agenda item 5.0 refers.
Resolved Vujcich/His Worship The Mayor
That the Audit, Risk, and Finance Committee confirms that the following
a) information contained in the part of the meeting held with the
public excluded
is not to be restated in public meeting
b) decisions contained in the part of the meeting held with the
public excluded
are not to be restated in public meeting.
Carried
6.0 Close of meETING
The meeting closed at 3:00 pm.
File Number: A2177762
Author: Sharon Ryan, Manager - Management Information
Authoriser: Samantha Edmonds, General Manager - Corporate Services
Purpose of the Report
The purpose of the report is to identify the projects that managers are requesting be carried forward to the 2017-18 financial year. The projects are identified individually and a summary by activity including funding requirements is also included.
Executive Summary
· Projects included in the 2017-18 Capital Programme that have not been completed and require the budgets to be carried over into the 2018-19 to complete.
That the Audit, Risk and Finance Committee approve capital budgets identified in the report “Capital Carry Forwards June 2018” totalling $8,861,644 be carried forward to the 2018-19 financial year. |
1) Background
At 30 June 2018 a number of capital projects were underway but not completed. The budgeted capital works for the year was $87.9m and actual expenditure incurred was $45m. This is a “completion” rate of 51% of the total budget.
Managers have reviewed the projects and now make a request to the Committee that the identified incomplete projects and associated budget be carried forward to 2018-19 for completion.
2) Discussion and Options
The projects identified for carry forward total $8,861,644 and are funded as follows:
$
Loan funding 4,990,966
Depreciation 2,614,210
Reserves 481,316
Subsidy 775,152
Total funding $8,861,644
Reason for the recommendation
To enable capital projects identified to be completed.
3) Financial Implications and Budgetary Provision
The budgets identified in the attached report would be additional to those adopted for 2018-19 Long Term Plan. Overall funding limits will not be exceeded as these projects have been included as complete in the opening balances shown within the Long Term Plan 2018-19.
1. Schedule
of Capital Carry Forwards June 2018 - A2178022 ⇩
Compliance schedule:
Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:
1. A Local authority must, in the course of the decision-making process,
a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and
b) Assess the options in terms of their advantages and disadvantages; and
c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.
2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.
Compliance requirement |
Staff assessment |
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy |
None |
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision. |
None |
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought. |
None |
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water. |
None |
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences. |
None |
State the financial implications and where budgetary provisions have been made to support this decision. |
Provided under 3) Financial implications and budgetary. |
Chief Financial Officer review. |
The Chief Financial Officer has reviewed this report. |
27 September 2018 |
3.3 Council Financial Report August 2018
File Number: A2189988
Author: Sharon Ryan, Manager - Management Information
Authoriser: Samantha Edmonds, General Manager - Corporate Services
Purpose of the Report
To provide an overview and information on the current financial position and performance of the Far North District Council as at 31 August 2018.
Executive Summary
This report provides a summary overview, Statement of Financial Performance, Capital Performance and Borrowing and Investment reports.
That the Audit, Risk, and Finance Committee receive the report entitled “Council Financial Report August 2018” |
Background
This reports financial information as at 31 August 2018
Discussion and Next Steps
This report is for information only
Financial Implications and Budgetary Provision
There are no financial implications or budgetary provisions required as a result of this report.
1. Council
Financial Report August - A2189993 ⇩
27 September 2018 |
RESOLUTION TO EXCLUDE THE PUBLIC
a) That the public be excluded from the following parts of the proceedings of this meeting. b) That Adele Gardner - Chairperson Te Hiku Community Board; Mike Edmonds - Chairperson Kaikohe-Hokianga Community Board; and Terry Greening - Chairperson Bay of Islands-Whangaroa Community Board be permitted to remain at this meeting after the public has been excluded, because of their knowledge of local wards. This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to that matter because they advocate for and represent local community views. c) That Earl White representative from Bancorp be permitted to remain at this meeting for items 4.1 and 4.2 after the public has been excluded, in order to present information regarding the subject matter of the reports d) The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
|