Agenda of Audit, Risk, and Finance Committee Meeting

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
Hon John Carter QSO	Carter Family Trust
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.		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.
				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.
	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.
	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.
	Foy Farms partnership	Owner and partner in Foy Farms - a farm in three titles on Church Road, Kaingaroa
	Foy Farms Rentals	Owner and rental manager of Foy Farms Rentals for 6 dwellings on Church Road, Kaingaroa
	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.
	Previous employment at FNDC 2007-16	I consider the staff members at FNDC to be my friends
Partner Felicity Foy	Employed by Justaplumber Taipa
Partner Felicity Foy	Friends with some FNDC employees
Colin Kitchen	No form received
Tania McInnes	Director – GBT Ventures Ltd	Company not currently operational		Will notify Council if company becomes operational.
	Member of Northland Conservation Board		Conservation matters not aligned with Council policy.	Will notify Council should a perceived conflict arise.
	Trustee – Northland Youth Education Trust		No perceived conflicts	Will notify Council should a perceived conflict arise.
	Founder – Bay of Islands Women’s Nexus	No perceived conflicts. An informal organisation
	Own a section on Seaview Road, Paihia 0200
	Having worked within the organisation in the early 2000’s, I know a number of staff, none of which I am close with.
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
	Director	Waitukupata Forest Ltd	Potential for council activity to directly affect its assets	Declare interest and abstain
	Director	Rural Service Solutions Ltd	Matters where council regulatory function impact of company services	Declare interest and abstain
	Director	Kaikohe (Rau Marama) Community Trust	Potential funder	Declare interest and abstain
	Partner	MJ & EMJ Vujcich	Matters where council regulatory function impacts on partnership owned assets	Declare interest and abstain
	Member	Kaikohe Rotary Club	Potential funder, or impact on Rotary projects	Declare interest and abstain
	Member	New Zealand Institute of Directors	Potential provider of training to Council	Declare a Conflict of Interest
	Member	Institute of IT Professionals	Unlikely, but possible provider of services to Council	Declare a Conflict of Interest
	Member	Kaikohe Business Association	Possible funding provider	Declare a Conflict of Interest
Ann Court	Waipapa Business Association	Member
	Warren Pattinson Limited	Shareholder	Building company. FNDC is a regulator and enforcer	No FNDC Controls
	Kerikeri Irrigation	Supplies my water		No EM intervention in disputes
	Top Energy	Supplies my power		No other interest greater than the publics
	District Licensing	N/A	N/A	N/A
	Top Energy Consumer Trust	Trustee	Crossover in regulatory functions, consenting economic development and contracts such as street lighting.	Declare interest and abstain from voting.
	Ann Court Trust	Private	Private	N/A
	Waipapa Rotary	Honorary member	Potential community funding submitter	Declare interest and abstain from voting.
	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.
	Property on Daroux Dr, Waipapa	Financial interest
	Flowers (I get flowers occasionally)	Ratepayer 'Thankyou'	Bias/ Pre-determination?	Declare to Governance
	Coffee and food	Ratepayers sometimes 'shout' food and beverage	Bias or pre-determination	Case by case
	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.
		My husband is a builder and may do work for Council staff
Warren Pattinson (Husband)	Warren Pattinson Limited	Director	Building Company. FNDC is a regulator	Remain at arm’s length
	Air NZ	shareholder	None	None
	Warren Pattinson Limited	Builder	FNDC is the consent authority, regulator and enforcer.	Apply arm’s length rules
	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.
	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.
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.
	Judicial Justice of the Peace	Visitations to Ngawha Prison	Matters pertaining to Judicial Issues re Ngawha Prison	Declare a perceived Interest
	The Turner Centre	FNDC Representative	Observer, acknowledging FNDC financial contribution.	Note FNDC partnership
	Trustee	Kaikohe Education Trust	Providing students laptops - possible request for written support to funders	Declare a conflict
	Executive member	Kaikohe Business Association	Matters pertaining to request for written support to funders.
	Chairman	Bay of Islands Arts Festival Trust	Issues pertaining to the application of support funds	Declare a conflict of interests
	Trustee	Bay of Islands Radio Marine	Issues pertaining to the application of support funds	Declare a conflict of interests
	Secretary/Trustee	Kerikeri International Piano Competition	Issues pertaining to the application of support funds	Declare a conflict of interests
	Trustee/Director	Kaikohe Community and Youth Trust	Possible application of support funding	Declare a conflict of interests
	Commercial	Palmer Macauley Offices- Kerikeri and Kaikohe	Infrastructural matters with FNDC	Declare a conflict
	Private property of which there would not be any conflict. Paihia, Kerikeri, Kaikohe
Peter Macauley (Husband)	Senior Partner	Palmer Macauley
	Peter Macualey	Barristers and Solicitors- Kerikeri, Kaikohe and Mangonui	Legal matters with FNDC
	Director/Trustee
	St John NZ Priory Chapter	St John Priory Chapter	Legal matters with FNDC	Declare a conflict
	Senior Partner	Peter Macauley- Palmer Macauley Barristers and Solicitors Kaikohe, Kerikeri AND Mangonui	Legal matters with FNDC	Declare a conflict
	St John NZ	Priory Trust Board	Writing of policies and legal matters as an example	Note Interests
	Lions Club of Kaikohe	Director	Legal matters etc	Note Interests
	Kaikohe Rugby Club	Patron	Legal Matters
	Viking Rugby Club, Whangarei	Life Member	Legal Matters
	Private Property
	Kerikeri, Paihia - no contents.
Bruce Robertson	No interests to declare
Mike Edmonds	Chair	Kaikohe Mechanical and Historic Trust	Council Funding	Decide at the time
Mike Edmonds	Committee member	Kaikohe Rugby Football and Sports Club	Council Funding	Withdraw and abstain
Adele Gardner	N/A - FNDC Honorarium
	The Far North 20/20, ICT Trust	Trustee
	Te Ahu Charitable Trust	Trustee
	ST Johns Kaitaia Branch	Trustee/ Committee Member
	I know many FNDC staff members as I was an FNDC staff member from 1994-2008.
Partner of Adele Gardner	N/A as Retired
Terry Greening	Greening Family Trust	Beneficiary		Highly unlikely to interface with FNDC
	Bay of Islands Walking Weekend Trust		Potential of seeking funds	Step aside from any requests or decisions regarding requests
	Russell 2000 Trust (Chairman)			Trust is about to wind up.
	Russell Centennial Trust (ex-officio trustee)	Manages Russell Museum	Seeks funds from council	Step aside from any requests or decisions regarding requests
	Residence at Kaha Place, Russell	Nil	Nil	N/A
Terry Greening (Wife)	Greening Family Trust	Beneficiary	N/A	N/A
Terry Greening (Wife)	Residence at Kaha Place, Russell

Audit, Risk, and Finance Committee Meeting Agenda

27 September 2018

3 Corporate Services Group

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

Recommendation

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.

Attachments

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
Bruce Robertson Independent Member
IN ATTENDANCE
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.

3.2 Capital Carry Forwards June 2018

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.

Recommendation

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.

Attachments

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

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.

Audit, Risk, and Finance Committee Meeting Agenda

27 September 2018

4 Public Excluded

RESOLUTION TO EXCLUDE THE PUBLIC

Recommendation

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:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
4.1 - Bank facility renewal	s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
4.2 - Pre funding of approved debt	s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
4.3 - Confirmation of Previous Minutes (Public Excluded)	s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
4.4 - Draft Annual Report FInancials 2017-18	s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
4.5 - Far North Holdings Ltd Annual Report for June 2018	s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
4.6 - Internal Audit Update - September	s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
4.7 - Organisational Risk Framework	s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
4.8 - FNDC Current Legal Action Potential Liability Claim	s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7