Te Kaunihera o Tai Tokerau ki te Raki
AGENDA
Assurance, Risk and Finance Committee Meeting
Friday, 22 May 2020
Time: |
1:00 PM - 4:00 PM |
Location: |
To be held electronically via TEAMs |
Membership:
Cr John Vujcich - Chairperson
Mayor John Carter
Member Bruce Robertson
Deputy Mayor Ann Court
Cr Mate Radich
Cr Kelly Stratford
Cr Moko Tepania
Assurance, Risk and Finance Committee Meeting Agenda |
22 May 2020 |
ASSURANCE, RISK AND FINANCE 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 |
|
|
Carter Family Trust |
|
|
|
|
John Vujcich (Chair) |
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 |
|
Bruce Robertson (Deputy) |
No Form Received |
|
|
|
Deputy Mayor Ann Court |
Waipapa Business Association |
Member |
|
Case by case |
Warren Pattinson Limited |
Shareholder |
Building company. FNDC is a regulator and enforcer |
Case by case |
|
Kerikeri Irrigation |
Supplies my water |
|
No |
|
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 |
Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse) |
Declare interest and abstain from voting. |
|
Flowers and gifts |
Ratepayer 'Thankyou' |
Bias/ Pre-determination? |
Declare to Governance |
|
Coffee and food |
Ratepayers sometimes 'shout' food and beverage |
Bias or pre-determination |
Case by case |
|
Staff |
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. |
|
Warren Pattinson |
My husband is a builder and may do work for Council staff |
|
Case by case |
|
Ann Court - Partner |
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 |
|
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. |
|
Mate Radich |
No form received |
|
|
|
Kelly Stratford |
KS Bookkeeping and Administration |
Business Owner, provides book keeping, administration and development of environmental management plans |
None perceived |
Step aside from decisions that arise, that may have conflicts |
Waikare Marae Trustees |
Trustee |
Maybe perceived conflicts |
Case by case basis |
|
Bay of Islands College |
Parent Elected Trustee |
None perceived |
If there was a conflict, I will step aside from decision making |
|
Karetu School |
Parent Elected Trustee |
None perceived |
If there was a conflict, I will step aside from decision making |
|
Maori title land – Moerewa and Waikare |
Beneficiary and husband is a shareholder |
None perceived |
If there was a conflict, I will step aside from decision making |
|
Sister is employed by Far North District Council |
|
|
Will not discuss work/governance mattes that are confidential |
|
Gifts - food and beverages |
Residents and ratepayers may ‘shout’ food and beverage |
Perceived bias or predetermination |
Case by case basis |
|
Kelly Stratford - Partner |
Chef and Barista |
Opua Store |
None perceived |
|
Maori title land – Moerewa |
Shareholder |
None perceived |
If there was a conflict of interest, I would step aside from decision making |
|
Moko Tepania |
Teacher |
Te Kura Kaupapa Māori o Kaikohe. |
Potential Council funding that will benefit my place of employment. |
Declare a perceived conflict |
Chairperson |
Te Reo o Te Tai Tokerau Trust. |
Potential Council funding for events that this trust runs. |
Declare a perceived conflict |
|
Tribal Member |
Te Rūnanga o Te Rarawa |
As a descendent of Te Rarawa I could have a perceived conflict of interest in Te Rarawa Council relations. |
Declare a perceived conflict |
|
Tribal Member |
Te Rūnanga o Whaingaroa |
As a descendent of Te Rūnanga o Whaingaroa I could have a perceived conflict of interest in Te Rūnanga o Whaingaroa Council relations. |
Declare a perceived conflict |
|
Tribal Member |
Kahukuraariki Trust Board |
As a descendent of Kahukuraariki Trust Board I could have a perceived conflict of interest in Kahukuraariki Trust Board Council relations. |
Declare a perceived conflict |
|
Tribal Member |
Te Rūnanga ā-Iwi o Ngāpuhi |
As a descendent of Te Rūnanga ā-Iwi o Ngāpuhi I could have a perceived conflict of interest in Te Rūnanga ā-Iwi o Ngāpuhi Council relations. |
Declare a perceived conflict |
|
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 |
Assurance, Risk and Finance Committee Meeting Agenda |
22 May 2020 |
Assurance, Risk and Finance Committee Meeting
will be held electronically, via TEAMs on:
Friday 22 May 2020 at 1:00 PM - 4:00 PM
Order Of Business
1 Karakia Timatanga – Opening Prayer
2 Apologies and Declarations of Interest
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes
5.1 Internal Audit and Assurance Report - March 2020
5.2 Internal Audit and Assurance Report - April 2020
5.6 Council Financial Report for the Period Ending 30 April 2020
5.7 Revenue Recovery Report - March 2020
5.8 Level of Service KPI Quarter 3 Performance Report
6.1 Confirmation of Previous Minutes
6.2 2020 Far North District Council Assurance Work Programme
6.3 FNDC Current Legal Action Potential Liability Claims
7 Karakia Whakamutunga – Closing Prayer
2 Apologies and Declarations of Interest
Members need to stand aside from decision-making when a conflict arises between their role as a Member of the Committee 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 Democracy Support (preferably before the meeting).
It is noted that while members can seek advice the final decision as to whether a conflict exists rests with the member.
No requests for deputations were received at the time of the Agenda going to print.
22 May 2020 |
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes
File Number: A2860745
Author: Marlema Baker, Meetings Administrator
Authoriser: Aisha Huriwai, Team Leader Democracy Services
Purpose of the Report
The minutes are attached to allow the Committee to confirm that the minutes are a true and correct record of previous meetings.
That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 12 February 2020 as a true and correct record.
|
1) Background
Local Government Act 2002 Schedule 7 Section 28 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 meetings 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 meetings.
3) Financial Implications and Budgetary Provision
There are no financial implications or the need for budgetary provision as a result of this report.
1. 2020-02-12 Assurance, Risk and Finance Committee Unconfirmed Minutes - A2847404 ⇩
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 |
This is a matter of low significance. |
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision. |
This report complies with the Local Government Act 2002 Schedule 7 Section 28. |
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. |
It is the responsibility of each meeting to confirm their minutes therefore the views of another meeting are not relevant. |
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. |
There are no implications for Māori in confirming minutes from a previous meeting. Any implications on Māori arising from matters included in meeting minutes should be considered as part of the relevant report. |
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 (for example, youth, the aged and those with disabilities). |
This report is asking for minutes to be confirmed as true and correct record, any interests that affect other people should be considered as part of the individual reports. |
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. |
Assurance, Risk and Finance Committee Meeting Agenda |
22 May 2020 |
MINUTES OF Far North District Council
Assurance, Risk and
Finance Committee Meeting
HELD AT THE Council
Chamber, Memorial Avenue, Kaikohe
ON Wednesday, 12
February 2020 AT 1.00 pm
PRESENT: Cr John Vujcich, Mayor John Carter (HWTM), Member Bruce Robertson, Cr Ann Court, Cr Mate Radich, Cr Kelly Stratford, Cr Moko Tepania
1 Apologies and Declarations of Interest
Apology |
Committee Resolution 2020/1 Moved: Cr Kelly Stratford Seconded: Member Bruce Robertson That the apology received from His Worship the Mayor and Cr Mate Radich be accepted and leave of absence granted. Carried |
There were no requests for deputations for this meeting.
3.1 Audit Management Report for June 2019 Agenda item 3.1 document number A2823691, pages 10 - 38 refers. Audit New Zealand representatives David Walker and Trevor Rusling spoke to the report. |
Committee Resolution 2020/2 Moved: Cr John Vujcich Seconded: Cr Kelly Stratford That the Assurance, Risk and Finance Committee receive the report “Audit Management Report for June 2019”. Carried |
3.2 Revenue Recovery Report - February 2020 Agenda item 3.2 document number A2825732, pages 39 - 44 refers. |
Committee Resolution 2020/3 Moved: Cr Ann Court Seconded: Cr Kelly Stratford That the Assurance, Risk and Finance Committee receive the report “Revenue Recovery Report - February 2020”. Carried |
3.3 Internal Audit and Assurance Report Agenda item 3.3 document number A2826403, pages 45 - 47 refers. |
Committee Resolution 2020/4 Moved: Member Bruce Robertson Seconded: Cr John Vujcich That the Assurance, Risk and Finance Committee receive the report Internal Audit and Assurance Report. Carried |
Agenda item 3.4 document number A2826762, pages 48 - 54 refers. |
Committee Resolution 2020/5 Moved: Cr Kelly Stratford Seconded: Cr Moko Tepania That the Assurance, Risk and Finance Committee receive the report Risk Management Report. Carried |
3.5 Financial Report for the period ending 31 December 2019 Agenda item 3.5 document number A2827848, pages 55 - 55 refers. |
Committee Resolution 2020/6 Moved: Deputy Mayor Ann Court Seconded: Cr John Vujcich That the Assurance, Risk and Finance Committee receive the report “Financial Report for the period ending 31 December 2019”. Carried |
The following two items were issues late under supplementary agenda. Members requested they instead be deferred to the 26 February 2020 Council meeting for consideration.
1. Level of Service KPI Quarter 1 and 2 Performance Report.
2. Building Consent Authority Accreditation.
RESOLUTION TO EXCLUDE THE PUBLIC
Committee Resolution 2020/7 Moved: Cr John Vujcich Seconded: Deputy Mayor Ann Court That the public be excluded from the following parts of the proceedings of this meeting. 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:
Carried |
The meeting closed at 4.17 pm.
The minutes of this meeting will be confirmed at the Assurance, Risk and Finance Committee Meeting to be held on 22 May 2020.
...................................................
CHAIRPERSON
22 May 2020 |
5.1 Internal Audit and Assurance Report - March 2020
File Number: A2856441
Author: Lisa Huria, Audit and Assurance Specialist
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
To provide the Assurance, Risk and Finance Committee with an update on internal and external audit recommendations.
Executive Summary
This report provides an update on the number of internal and external audit recommendations that have been completed or are underway. Since the last report on 12th February, 14 further recommendations have now been completed.
That the Assurance, Risk and Finance Committee receive the Internal Audit and Assurance Report - March 2020. |
Background
Good progress has been made implementing recommendations from internal and external audits. There are plans in place to complete any outstanding recommendations.
Some highlights are:
· All General Non-Compliances identified in the IANZ Building Consent Authority Accreditation Assessment Report are now conditionally cleared.
· 21 out of 30 recommendations from the LGOIMA Compliance and Practice Audit Report undertaken by the Office of the Ombudsman have been put in place. Further progress will be made by the end of March 2020.
· The 2017 KPMG Procurement Audit Report recommended that we develop evaluation criteria for scoring attributes prior to the scoring of tender submissions. Anchored scales have now been introduced for some parts of the business where this approach is best used, e.g. roading maintenance and dust seal contracts. Anchored scales are based on objective facts that are closely linked to the components that will differentiate bidders based on the value for money they bring to the contract.
· The 2018 Annual Management Report from Audit New Zealand included a recommendation to assess whether resource consent bonds still meet the definition of a liability and if not; they should be released. The Environmental Services team designed a process to review the bonds and have now completed site visits to ascertain if resource consent conditions have been met. The final step in the process is currently underway.
Audit Name |
Total Number of Recommendations |
Recommendations Completed |
Recommendations Underway |
External Audit - KPMG - Procurement 2017 |
34 |
30 |
4 |
External Audit - Audit NZ - Annual Management Report - Interim 2017 |
18 |
17 |
1 |
Internal Audit - Information Security 2018 |
15 |
12 |
3 |
Internal Audit - Contract Management Review 2018 |
4 |
3 |
1 |
External Audit - Audit NZ - Annual Management Report - Final 2018 |
5 |
4 |
1 |
External Audit - Audit NZ - Annual Management Report - Final 2019 |
6 |
4 |
2 |
External Audit - Three Waters Interim Alliance Agreement Review |
6 |
4 |
2 |
External Audit - LGOIMA Compliance and Practice Report - 2019 |
30 |
21 |
9 |
External Audit - IANZ – Building Consent Authority Accreditation Assessment Report 2019 |
11 |
11 |
N/A |
Financial Implications and Budgetary Provision
This report is for information only.
Nil
22 May 2020 |
5.2 Internal Audit and Assurance Report - April 2020
File Number: A2871278
Author: Lisa Huria, Audit and Assurance Specialist
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
To provide the Assurance, Risk and Finance Committee with an update on internal and external audits, and any associated recommendations.
Executive Summary
· This report provides an update on the number of internal and external audit recommendations that have been completed or are underway. Since the last report on 25th March, one further recommendation has been completed.
· An internal audit has been completed to review whether network logon accounts comply with FNDC password rules and to verify if any accounts have become redundant. A small number of accounts were identified that need further investigation.
That the Assurance, Risk and Finance Committee receive the report Internal Audit and Assurance Report - April 2020. |
Background
Audit Recommendations
Only one audit recommendation from internal and external audits has been implemented recently due to the resourcing requirements of the Crisis Response Team (Drought and Covid-19) and other staff members.
There are plans in place to complete any outstanding recommendations, but these will be postponed until resources become available.
Audit recommendations as at 1st April 2020:
Audit Name |
Total Number of Recommendations |
Recommendations Completed |
Recommendations Underway |
External Audit - KPMG - Procurement 2017 |
34 |
30 |
4 |
External Audit - Audit NZ - Annual Management Report - Interim 2017 |
18 |
17 |
1 |
Internal Audit - Information Security 2018 |
15 |
13 |
2 |
Internal Audit - Contract Management Review 2018 |
4 |
3 |
1 |
External Audit - Audit NZ - Annual Management Report - Final 2018 |
5 |
4 |
1 |
External Audit - Audit NZ - Annual Management Report - Final 2019 |
6 |
4 |
2 |
External Audit - Three Waters Interim Alliance Agreement Review |
6 |
4 |
2 |
External Audit - LGOIMA Compliance and Practice Report - 2019 |
30 |
21 |
9 |
Network Logon Accounts Internal Audit
An internal audit has been completed to review whether network logon accounts comply with FNDC password rules, and to verify if any accounts have become redundant.
The audit identified a small number of network logon accounts where:
· Staff or contractors have not logged in for several months so may be redundant;
· a staff member has left FNDC employment but their account is still active; and
· several accounts that do not have a password expiry date.
It is noted there may be valid reasons why a staff member may have not logged in for several months, for example, they are away on extended leave such as paternity leave.
The Information and Technology Service team are further investigating to ensure these accounts are fully compliant with FNDC password rules or are not redundant. If a network logon account is identified as being redundant, it will be deleted immediately.
Financial Implications and Budgetary Provision
This report is for information only.
Nil
22 May 2020 |
File Number: A2857046
Author: Tanya Reid, Manager - Transformation, Risk and Audit (Acting)
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
To provide scheduled risk progress reports for the organisation’s top risks and group risk.
No decision required.
Executive Summary
· Risk progress updates are provided for three of the top organisational risks detailing progress of treatment plans.
· Outstanding risk progress reports will be provided at the next scheduled Assurance, Risk and Audit meeting of 6 May.
· An emerging risk has been identified.
· Excellent progress continues to be made on group risk.
That the Assurance, Risk and Finance Committee receive the Risk Management Report.
|
Background
The Transformation and Assurance team has facilitated the development of treatment plans for the organisation’s top risks. We are now in the phase where regular reporting of the organisation’s top risks, and treatment plans, is in place.
A programme of deep dive workshops is planned for these risks. The first of two deep dive workshops for ARF005 Affordability risk has been completed, with the second workshop to be scheduled.
The Transformation and Assurance team continues to work with the organisation to refresh / establish Group Risk Registers, with treatment plans, and regular reviews, escalating emerging risks as these are identified
Discussion and Next Steps
Three risk progress reports, for your information, with treatment plans are attached. Steady risk treatment progress is being made with ARF011 Organisational Cohesion Risks inherent risk score trending down.
Risk ARF002, BCA Status Risk, is the subject of a separate report to this committee.
Four of the scheduled risk progress reports are outstanding. The Assurance, Risk and Audit Committee will understand that due to the current situation a number of staff have been seconded to alternative duties. Our intention is to deliver these risk progress reports at the Assurance, Risk and Finance Committee meeting scheduled for the 6th May.
The ARF005 Affordability deep dive workshop has been split into two parts with the second part to be scheduled. At the end of this workshop members will agree the next risk “deep dive.”
An emerging organisational risk has been identified, the Fresh Water Resilience risk. Under separate cover there is a recommendation to approve the inclusion of this risk onto the Organisational Top Risks Dashboard.
An elected member workshop is to be scheduled to cover the FNDC Risk Management Framework and refresh of the Organisational Top Risks Dashboard.
The Transformation and Assurance team continues to work through the organisation to refresh or establish Group Risk Registers. The District Services Risk Register has been refreshed with ongoing risk management imbedded as a standing agenda item at the District Services Managers Meeting. The standing agenda item focuses the managers on an appropriate risk conversation facilitated by the provision of a set of risk questions:
Standard risk questions for meeting agendas
· Is the risk register up-to-date?
· Is the risk treatment progress to schedule?
· Has our data baseline for any of our risks changed or has a significant change to our external environment occurred or occurring e.g. legislation?
o Does this data indicate that the risk impact score has changed?
o Has the likelihood of this risk materialising changed?
o Are there any new or emerging risks?
o Do we need to test any of our controls?
· Do we need to escalate (e.g. to SLT then to ARF) or de-escalate any of our risks?
Financial Implications and Budgetary Provision
At this stage no additional budgetary provision has been identified for the treatment plans.
1. ARF001 Climate Change Risk Progress Report - A2858263 ⇩
2. ARF004 Asset Management Risk Progress Report - A2858510 ⇩
3. ARF011 Organisational Cohesion Risks Progress Report - A2858600 ⇩
22 May 2020 |
File Number: A2855393
Author: Trent Blakeman, Manager - Building Services
Authoriser: Dean Myburgh, General Manager - District Services
Purpose of the Report
To update the Assurance, Risk and Finance Committee on the Building Consent Authority’s (BCA’s) progress in addressing the General Non-Compliances (GNC’s) identified in the October 2019 International Accreditation New Zealand (IANZ) Audit.
Executive Summary
All relevant information has been provided to IANZ on or before the deadline of the 14th of February. IANZ has responded with written confirmation that all general non-compliances have been conditionally cleared. It is expected that the BCA accreditation certificate will be issued in due course. Given the IANZ audit clearance, the risk has reduced from high to medium. This will be updated in the high-level Council risk register.
That the Assurance, Risk and Finance Committee receive the BCA Accreditation Update |
Background
The deadline for providing IANZ with the evidence was 14 February 2020. A total of 23 general non-compliances were identified during the IANZ audit with 19 of these resolved during the audit, leaving four to be resolved. A work plan to provide the necessary evidence to clear the GNC’s was agreed with IANZ. A total of 11 evidence examples were required to clear the remaining four non-compliances and IANZ are now satisfied with the evidence provided. An out of cycle October 2020 audit (these audits are usually completed biennially) has been scheduled. At that time IANZ will review progress made generally and in the non-compliance areas identified in the 2019 audit.
Discussion and Next Steps
The IANZ final report will highlight a list of recommendations that the BCA needs to address ahead of the next audit in October 2020.
The BCA will be introducing new tablets for inspections that will reduce the amount of manual inputs required to complete a Code of Compliance Certificate (CCC). This will facilitate the achievement of compliance with the required time frames.
The BCA will be focused on a higher level of internal audits leading into the next IANZ audit to ensure compliance. A process of time recording has been introduced to validate the application of the Regulation 8 calculator that determines how many admin and technical staff are required to provide a compliant BCA service. This work is critical to ensure the right amount of resource in the BCA.
Financial Implications and Budgetary Provision
There are no financial implications related to this update report.
Nil
22 May 2020 |
File Number: A2875398
Author: Tanya Reid, Manager - Transformation, Risk and Audit (Acting)
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
To provide scheduled risk progress reports for the organisation’s top risks and group risk.
No decision required.
Executive Summary
Risk progress updates are provided for six of the top organisational risk treatment plans.
Progress on group risk continues.
That the Assurance, Risk and Finance Committee receive the report May Risk Management.
|
Background
The Transformation and Assurance team has facilitated the development of treatment plans for the organisation’s top risks. We are now in the phase where regular reporting of the organisation’s top risks, and treatment plans, is in place.
A programme of deep dive workshops is planned for these risks. The first of two deep dive workshops for ARF005 Affordability risk has been completed, with the second workshop to be scheduled.
The Transformation and Assurance team continues to work with the organisation to refresh / establish Group risk registers, with treatment plans, and regular reviews. This programme of work has slowed as the organisation has focussed on our COVID-19 pandemic response.
Discussion and Next Steps
Six risk progress reports, with treatment plans, are attached. Below is a summary of change to risk status. More detail is available in the risk progress reports.
Risk is trending down for two of the six risks:
· ARF007 Compliance NRC Abatements Risk Progress Report; and
· ARF008 Civil Defence Risk Progress Report
No change to the risk status:
· ARF003 Health Safety and Wellbeing Vulnerabilities and
· ARF006 Projects / Priorities Delivery Delays
Assessed as increasing level of risk:
· ARF009 Customer Service Delivery Risk Progress Report; and
· ARF012 Contract Management Risk Progress Report
The rationale for the increased level of risk is due to the impact of the drought and COVID-19 pandemic and national emergency. The negative impact is a result of:
1. work being placed on hold in the Customer Service Delivery workstream (customer surveys and enterprise wide RFS Redesign Project); and
2. increased contract risk due to disruption, to supply chains and work force, which may manifest itself in contractual matters.
Progress, to improve our understanding of ARF005 Affordability risk for the next deep dive workshop, has been made with the commissioning of Business and Economic Research Limited to conduct a data analysis of rates affordability across the Far North and the receipt of their report outlining rates affordability issues.
An elected member workshop is to be scheduled to cover the FNDC Risk Management Framework and to refresh the top organisational risk dashboard. For reference the current organisational risk dashboard, and the impact and likelihood matrix these were assessed against, can be located in the attachments.
The Transformation and Assurance team continues to work through the organisation to establish and maintain Group Risk Registers.
Financial Implications and Budgetary Provision
At this stage no additional budgetary provision has been identified for the treatment plans.
1. Top 12 Organisational Risks Dashboard July 2019 - A2875395 ⇩
2. Simplified Organisational Risk Categories with Impact and Likelihood Statements - October 2019 - A2857911 ⇩
3. ARF003 Health Safety and Wellbeing Vulnerabilities Risk Progress Report - May 2020 - A2873557 ⇩
4. ARF006 Projects Priorities Delivery Delays Risk Progress Report - May 2020 - A2875290 ⇩
5. ARF007 Compliance NRC Abatements Risk Progress Report - May 2020 - A2873612 ⇩
6. ARF008 Civil Defence Risk Progress Report - May 2020 - A2873559 ⇩
7. ARF009 Customer Service Delivery Risk Progress Report - May 2020 - A2873577 ⇩
8. ARF012 Contract Management Risk Progress Report - May 2020 - A2873581 ⇩
22 May 2020 |
5.6 Council Financial Report for the Period Ending 30 April 2020
File Number: A2881067
Author: Angie Thomas, Manager - Accounting Services
Authoriser: Janice Smith, Chief Financial Officer
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 30 April 2020.
Executive Summary
This report provides a summary overview, Statement of Financial Performance, Capital Performance and Borrowing and Investment reports.
That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 30 April 2020.
|
Background
This reports financial information as at 30 April 2020.
Discussion and Next Steps
The 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 April 2020 - A2885959 ⇩
Assurance, Risk and Finance Committee Meeting Agenda |
22 May 2020 |
Far North District Council
Council Financial Report
for the period ending 30-April-2020
Key financial metrics from the Statement of Financial Performance for the Far North District Council as at 30-April-2020.
The overall performance of Council has continued with business as usual even though the drought conditions and now COVID-19 has taken precedence and will continue in the coming months in order to bring back recovery to our economy and district.
The organisation is refocusing their priorities in order to accommodate both situations so ongoing income and expenditure will be reviewed.
Overall, we had a Variance to Budget YTD movement from $1.4M in February 2020 to -$0.4M in April 2020 Net Operating Position.
The Year End forecast net operating position of -$7.7M was due to savings across the organisation to accommodate the drought crisis and COVID-19. However, the remaining balance pertained mainly to Roading subsidy for both New Works and Renewal.
06 Amount |
07 Comments |
|
08 Roading Subsidy |
09 $5,047k |
10 Roading capital projects for both new and renewal have been identified as a carry forward and will be completed in the 2020_2021 financial year |
The Year end forecast position for Capital Expenditure of -$16.1M is mainly due to the following projects:
11 Year End Capital Expenditure |
12 Amount |
13 Comments |
14 District Facilities 15 |
16 $1,032k |
17 Council approved unbudgeted funds for BOI Sports Development Land purchase |
18 Roading and Footpaths 19 |
20 -$11,775k |
21 Roading projects for both new and renewal have been transferred out to the future years |
22 Wastewater 23 |
24 -$365k |
25 Council approved additional funds of $1.5m to complete Kerikeri Wastewater Treatment Plant offset by projects transferred to future years |
26 Stormwater 27 |
28 -$127k |
29 Waipapa roundabout disposal field budget has been cancelled |
30 Water Supply 31 |
32 -$286k |
33 Renewals at Russell bore, Kaikohe reservoir, Paihia industrial area fire flow, Kawakawa bore, Rawene/Omanaia WTP |
34 Governance & Strategic Administration 35 |
36 -$4,340K |
37 Te Pu o te Wheke - Kaikohe Hub of $3.8m transferred to 2020_2021 financial year. Balance related to movement for vehicles and office furniture 38 |
39 Customer Services 40 |
41 -$208k |
42 Horizon library system |
The December 2019 Financial Report gave an overall update on the financial position of Council, for the remaining months commentary will only be by exception.
*In the tables above and throughout this report, variances +/- 5% from budget are indicated as on track / green, anything outside this is red.
Council Financial Performance – Income
Please note these figures relate to the Statement of Financial Performance controllable costs only, which excludes general rates and rates penalties.
Highlights:
Fees & charges (inc water supply rates)
· Due to the ongoing drought situation throughout the district, bulk water supply to Kaitaia, Kawakawa, Kerikeri and Paihia areas has been in excess to budget however, Kaikohe remains behind budget due to limited water resources.
· Water charges continue to be lower than anticipated as a result of low water consumption over the drought period.
· Income from Transfer Stations has decreased due to the low volumes of refuse being disposed.
· There is a slight decrease in income for property files due to the decrease in requests from the public.
Central Govt Subsidies - Operational
· Roading is behind with ordered works in seal pavement maintenance (potholes, edge break repairs) and structure maintenance (painting of bridges and rails). A significant risk to maintaining a level of service during the winter conditions were highlighted, therefore the impact on pre reseal road repair works are a major concern, without delaying the reseal renewals program.
Other Income
· A dividend payment to be received from Far North Holdings Limited (FNHL) has been received and the 2019/20 estimated dividend will be accrued at the end of the financial year.
· Anticipated interest received is ahead of budget due to the approved investment in term deposits.
· A number of recoveries have been received from activities across the organisation that was not anticipated.
Central Govt Subsidies - New Works
· Roading budgets are behind due to a delay in awarding a contract for the West Coast Rd G01 bridge project due to a new design requirement and consent.
· Inksters Rd W35 and Kenana Rd E16 culvert replacements design review has highlighted some issues which has affected construction this financial year.
· Otaua Rd N28 contract has been awarded however, the project costs exceeds the budget and will now be delivered in the next financial year.
· These underspends have been offset by unbudgeted subsidy received from the NZ Transport Agency (NZTA) for the construction of approved Community Board footpaths across the three wards.
Central Govt Subsidies – Renewals
· The Roading activity overall is behind budget due to dry weather which is not suitable for applying materials. This has impacted expenditure particularly in the south of the district.
· Pavement rehabilitation in both the North and South areas were initially delayed due to the availability of the laboratory test results for design purpose, which further delayed the initial commencement of physical works and then COVID-19 further delayed progress.
· Bridge structures renewal contracts has now been awarded, however, due to the COVID-19 lockdown the programme has missed the constuction period and will be delivered next financial year.
Other Contributions
· Contribution pertains to the funds held with the Te Hiku Community Board for the Jaycee Park project in Kaitaia
Please note these figures relate to the Statement of Financial Performance controllable costs only, which excludes allocations, interest costs, depreciation and other asset costs and gain/loss on disposal.
Highlights:
Staff related costs
· There are still a number of vacancies that have not yet been filled across the organisation and training budgets are not likely to be used for the remainder of the financial year.
Contractor Fees
· Town maintenance is behind budget, however, funds are committed to be spent by the end of the financial year.
· Unbudgeted engagement of contracted consultants to meet demand for resources and building consent works has continued. Costs are not fully recoverable, in the Building Consents group travel and accommodation is not recoverable. In the Resource Consents group not all costs have been recovered due to discount penalties, fee waivers and successful fee objections.
A Quality Manager has now been recruited within the group which will alleviate the need to contract out that role.
· Roading is behind with ordered works in seal pavement maintenance (potholes, edge break repairs) and structure maintenance (painting of bridges and rails). A significant risk to maintaining a level of service during winter conditions were highlighted, therefore the impact on pre reseal road repair works are a major concern, without delaying the reseal renewals program. This has been offset by unbudgeted expenditure relating to contractual bonus payments to the two maintenance contractors.
· The water and wastewater alliance agreement with our current contractor Broadspectrum Limited is over budget due to reactive works. 415 requests for service (18% above the seasonal average) has been received in March, these have been mainly due to leaks and drought related issues.
· Transfer Stations has decreased due to the low volumes of refuse being disposed.
· There are no significant variances in the Governance & Strategic Administration group, however, external contractors needed to be hired in order to backfill the transition to O365 and new server platform.
Professional Fees
· Te Pu o te Wheke unbudgeted concept design has commenced as quantity surveying is underway.
· Unbudgeted removal and clearing of trees are continuing in the Eastern and Western Ward due to public safety.
· Network and asset management recorded time against various projects (operational or capital) is not recorded in a timely manner or against the correct activity. This is being reviewed and will be corrected in due course.
· Consultants and project managers have been engaged for Tourism Infrastructure Funds (TIF) applications for toilets to assist with project planning and scoping and develop forward works programme for the asset managers.
· Stormwater are behind budget but funds are fully committed to complete the Kawakawa stormwater catchment modelling.
· Customer services are behind budget due to the slowing down of services provided to the public.
External Services
· This is ahead of budget mainly due to the impact of the drought crisis. Unbudgeted costs relating to temporary water supplies have been incurred, however, savings across the organisation have been reforecast to offset this and some expenditure is to be offset by Provincial Growth Funding (PGF).
Highlights:
· Acquisition of land for the Bay of Islands Sports Development is now completed.
· Due to a change in the scope of works for the animal welfare shelter at Bonnets Road in Kaitaia, Council has now negotiated with the original tenderer who is happy to carry out the work. Amended plans have been received and we are now waiting on amended reports for suppliers and a new schedule of quantities and prices from the tenderer which is expected by the end of May.
· The purchase of the Melka Boarding Kennels in Kaikohe is now complete.
· The Kawakawa Library/Service Centre will be relocated to Te Hononga and has been further delayed.
· Works on the Windsor Landing Carpark and Access has now commenced as an outcome from the Environment Court which was in our favour.
· Delay in awarding contracts for West Coast Rd G01 bridge project due to new design requirement and consent.
· Inksters Rd W35 and Kenana Rd E16 culvert replacements design review has highlighted some issues and affected the ability to construct this financial year.
· Otaua Rd N28 contract was awarded prior to COVID-19 lockdown, however, the project cost exceeds budget and will now be delivered next financial year.
· Seal Extension unsubsidised works at Porotu Road, Puketi Road and Kumi Road has been delayed due to more design requirements under the maintenance contract for North and South. This has now missed the construction period due to the COVID-19 lockdown and will be deliverd next year.
· Kaitaia Transfer Station weighbridge relocation works are now complete, and the balance of funds will be used to complete an extension to the transfer station.
· Planned work for the Asset Management System project is in a development phase with Infor Global Solutions (NZ). System configuration was scheduled to be completed in April 2020 but is ongoing and the data migration is due August 2020.
· Kerikeri Wastewater Treatment Plant is continuing, however, there are now further delays due to the current COVID-19 situation and will not be completed until September 2020.
· The Paihia Wastewater Treatment Plant is currently under budget and was planned to be committed but is now delayed due to the COVID-19 shutdown.
· Kaitaia Commerce Street Stormwater Line is under budget there have been delays in obtaining an access agreement from a landowner which is now received.
Renewals
· Scoping for the Kaitaia Airport seal works has now commenced.
· Taheke Hall structural and internal fit-out works is in detailed design stage, and tenders have been invited in March and anticipate construction to commence in October at the request of the Taheke Committee.
· Maritime Facilities work on re-construction to extend the Mangonui jetty including gangway, pontoon and piles, steps is being undertaken by Far North Holdings Limited. Scoping works for renewal works for other maritime facilities at Rawene, Whangaroa, Opononi, Taipa, Kohukohu, Omapere, Kerikeri, Totara North has commenced.
· Scoping is underway for public toilets in Taupo Bay and Hundertwasser for upgrade works.
· Parks and reserves are under budget; scoping works are being finalised for Kaitaia and Okaihau. Design works has commenced for Moerewa
· The Kawakawa Hundertwasser Memorial Park Stowmwater Realignment project is under budget, however, there are further delays to the design due to the current situation.
· Footpath renewals are under budget due to resourcing issues with the Northern contractor; however, this work will now be delivered by the Southern contractor and will be completed this financial year.
· Unsealed road metaling is under budget in the South due to unfavourable conditions, which are not suitable to apply materials and complete works.
· Renewal projects for desktop computer and other computer equipment is continuing. Planning and testing have begun with Democracy Services for the introduction and rollout of electronic agenda platform and iPads for Councillors. This project will see devices and applications rolled-out during March and April
· Computer Systems - Programme is progressing with updates and upgrades planned for this Financial year. Current activity is within the Citrix Upgrade and Office 365. Work will continue to focus on upgrades with Objective and other core systems.
· Pool Vehicles is under budget and vehicles are renewed as required. Vehicles that are on order have been delayed due to import issues arising from the COVID-19 pandemic.
· The Kaikohe Library project is behind budget. The majority of funds is unlikely to be spent until the library moves to the newly proposed Kaikohe Community Hub.
· The Paihia I-Site refurbishment project has not yet commenced. Staff are awaiting a quote to lower the desks and expects to use the budget this financial year.
Unbudgeted Expenditure
These are additional works not included in the original budget for the current year.
Unbudgeted work greater than $100,000 must be approved by Council, anything less than that can be approved by a General Manager with appropriate financial delegation.
Unbudgeted Expenditure |
|
|
|
|
|
|
|
|
Unbudgeted Operational |
|
Amount |
Water Crisis PGF Lake Omapere |
Other Contributions |
-800,000 |
Water Crisis PGF Bonnets Road |
Other Contributions |
-1,200,000 |
Water Crisis PGF Lake Omapere |
External Services |
800,000 |
Building Consents (BCA) |
Contract Professional Fees |
500,000 |
Asset Management & Infrastructure Planning |
Professional Fees |
250,000 |
Water Crisis PGF Bonnets Road |
External Services |
1,200,000 |
Maritime Facilities |
External Services |
150,000 |
Libraries |
Software Licence Fees |
20,000 |
Libraries |
Equipment Purchases (uncapitalisable) |
10,000 |
Facilities operations - buildings |
Professional Fees |
5,000 |
|
|
935,000 |
|
|
|
|
|
|
Unbudgeted Capital Works |
|
Amount |
BOI Sports Development |
CAPEX New Works Contract Services |
1,840,717 |
Kerikeri Wastewater Infrastructre |
CAPEX New Works Contract Services |
1,500,000 |
Digitisation Scanning |
External Services |
648,688 |
Waitangi Jetty Toilet Capacity - TIF Funded |
External Services |
252,000 |
Karikari and Doubtless Bay Rangers Program |
External Services |
185,500 |
Waitangi/Haruru Falls Bush Walk Toilets |
CAPEX New Works Contract Services |
164,000 |
Mitimiti Toilet (TIF) |
CAPEX New Works Contract Services |
153,290 |
Opononi i-Site Public Toilet (TIF) |
CAPEX New Works Contract Services |
135,509 |
Waitangi Boat Ramp Toilets (TIF) |
CAPEX New Works Contract Services |
133,769 |
Stormwater Bonnett Road Kaitaia |
CAPEX New Works Contract Services |
99,168 |
Boat Ramp Study TIF Funded |
External Services |
75,000 |
Freedom Camping Study - TIF Funded |
External Services |
75,000 |
Kohukohu Resource Consent |
CAPEX New Works Licenses and Consents |
62,850 |
9-11 Old Beach Road Stormwater Upgrade |
CAPEX New Works Contract Services |
56,659 |
Korora Park Toilet |
CAPEX New Works Contract Services |
49,450 |
Kaimaumau Public Toilet |
External Services |
40,000 |
Kaitaia New Source (Sweetwater) |
CAPEX New Works Contract Services |
40,000 |
Ahipara Toilet |
External Services |
36,550 |
Stone Store Lighting - TIF Funded |
External Services |
28,000 |
Paihia Toilet Enhancement - TIF Funded |
CAPEX New Works Contract Services |
28,000 |
Horeke Housing for the Elderly |
CAPEX Renewal Works Contract Services |
26,655 |
Kaikohe Memorial Park Upgrade |
CAPEX New Works Contract Services |
26,400 |
24-26 Yarborough Street New Sewer Connection |
CAPEX New Works Contract Services |
24,629 |
Mains replacement Rawene |
CAPEX New Works Contract Services |
24,335 |
Opononi STP - Fence Renewal/Upgrade |
CAPEX New Works Contract Services |
22,000 |
Kaitaia Parks & Reserves |
CAPEX Renewal Works Contract Services |
17,589 |
Waima Housing for the Elderly |
CAPEX Renewal Works Contract Services |
16,974 |
Taipa Tree Protection - TIF Funded |
External Services |
16,000 |
1506 Inland Road Sewer Connection |
CAPEX New Works Contract Services |
14,730 |
Kaikohe Parks & Reserves |
CAPEX Renewal Works Contract Services |
13,773 |
Ramp Road Public Toilet |
External Services |
13,650 |
Kaikohe Lions Club |
CAPEX Renewal Works Contract Services |
11,050 |
Whangaroa Hall Renewals |
CAPEX Renewal Works Contract Services |
8,945 |
Rawhiti boat ramp toilet RC |
External Services |
7,800 |
JBC Customer Services Area Minor Improvements |
CAPEX New Works Contract Services |
6,000 |
Disability Access Halls Western |
CAPEX New Works Contract Services |
5,400 |
Kaka Street Ramp |
CAPEX New Works Contract Services |
4,988 |
Kororipo Basin (Pear Tree) |
CAPEX New Works Contract Services |
4,318 |
CCTV Hokianga i-SITE |
CAPEX New Works Contract Services |
3,885 |
CCTV BOI i-SITE |
CAPEX New Works Contract Services |
3,740 |
Parks & Reserves Northern |
CAPEX New Works Contract Services |
3,018 |
Opononi STP - Fence Renewal/Upgrade |
CAPEX Renewal Works Contract Services |
2,252 |
Digitisation Scanning |
Contract Professional Fees |
1,313 |
Kaitaia Oxford St Housing for the Elderly |
CAPEX Renewal Works Contract Services |
1,301 |
Kawakawa Commercial St Car Park |
CAPEX New Works Contract Services |
1,139 |
Paihia Toilet Enhancement - TIF Funded |
Subsidy New Works |
-14,000 |
Waitangi Boat Ramp Toilets (TIF) |
Subsidy New Works |
-133,769 |
Opononi i-Site Public Toilet (TIF) |
Subsidy New Works |
-135,509 |
Mitimiti Toilet (TIF) |
Subsidy New Works |
-153,290 |
|
|
5,449,466 |
|
|
|
Unbudgeted Roading |
|
Amount |
West Coast Rd RP9563 |
CAPEX Renewal Works Contract Services |
269,500 |
Diggers Valley Rd RP12722 |
CAPEX Renewal Works Contract Services |
210,000 |
Fairburn Rd RP9588 |
CAPEX Renewal Works Contract Services |
185,500 |
Wharekawa Rd RP3552 |
CAPEX Renewal Works Contract Services |
178,000 |
Waiotehue Road Dropout RP 5400 |
CAPEX Renewal Works Contract Services |
20,000 |
Waiotehue Rd RP5251 |
CAPEX Renewal Works Contract Services |
13,000 |
|
|
876,000 |
|
|
|
|
|
7,260,466 |
These are budgets timed in future years, brought forward into the current year (positive values) OR budgets timed in the current year to be moved out to future years (negative values).
The figures that follow exclude the $5M Roading budget adjustment moved out to future years to reflect the lower of FNDC or NZTA budget. Also, Operational of 6.2M includes $5.6M Water by Meter income budget, which was entered twice in error into the system.
Budget Movements |
|
|
|
|
|
General Ledger |
Comment |
Amount |
Resource Consents Administration |
Opex Reforecast as at 31 Oct 19 |
346,060 |
Resource Consents Administration |
Opex Reforecast as at 31 Oct 19 |
130,576 |
Resource Consents Administration |
Opex Reforecast as at 31 Oct 19 |
121,385 |
Training |
Opex Reforecast as at 31 Oct 19 |
22,379 |
Water Schemes |
Opex Reforecast as at 31 Oct 19 |
20,000 |
Resource Consents Appeals |
Opex Reforecast as at 31 Oct 19 |
10,819 |
Resource Consents Administration |
Opex Reforecast as at 31 Oct 19 |
8,398 |
Infrastructure planning - stormwater |
Opex Reforecast as at 31 Oct 19 |
5,000 |
Infrastructure planning - facilities |
Opex Reforecast as at 31 Oct 19 |
4,204 |
Human Resources General |
Opex Reforecast as at 31 Oct 19 |
3,184 |
Recruitment |
Opex Reforecast as at 31 Oct 19 |
3,119 |
Compliance |
Opex Reforecast as at 31 Oct 19 |
1,648 |
Refuse Administration |
Opex Reforecast as at 31 Oct 19 |
1,525 |
Project Management Office |
New FTE Contract Specialist |
1,500 |
Compliance |
Opex Reforecast as at 31 Oct 19 |
1,264 |
Compliance |
Opex Reforecast as at 31 Oct 19 |
1,062 |
Project Management Office |
New FTE Contract Specialist |
750 |
Electronic Property Management |
Do not think full budget will be spent this year |
-1,000 |
Legalisation |
Expenditure is running at a lower rate than expected |
-5,000 |
Legal Services |
Anticipated costs award Supreme Court Case |
-33,000 |
Resource Consents Administration |
Opex Reforecast as at 31 Oct 19 |
-96,189 |
|
|
547,684 |
|
|
|
Project Ledger |
Comment |
Amount |
Kaitaia New Source (Sweetwater) |
Kaitaia New Water Source Sweetwater Bore & Pipeline |
499,000 |
IT Servers & Storage |
Server and Network Renewal Project reforecast from 2020/21 |
178,708 |
Tech One |
TechOne HRP Renewals budget transfer from 20/21 FY |
95,000 |
Mission Road-Kerikeri |
Transfer from holding code to individual project codes and retiming |
85,190 |
Kaikohe Hone Heke Reserve |
Kaikohe Hone Heke Reserve Repair retaining Wall |
73,123 |
Horeke Hall |
Horeke Hall Wastewater Treatment System septic tank replacement |
70,976 |
North Park Drive to Whangatane Drive-Kaitaia |
Transfer from holding code to individual project codes and retiming |
68,625 |
Mobile Toilets (Temporary Facilities) |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
67,290 |
Computer Equipment |
Server and Network Renewal Project reforecast from 2020/21 |
42,533 |
Northland college to Saleyards-Kaikohe Footpath |
Transfer from holding code to individual project codes and retiming |
34,980 |
Footpaths Western Ward |
Transfer from holding code to individual project codes and retiming |
27,152 |
Waianga Place-Opononi Footpath |
Transfer from holding code to individual project codes and retiming |
26,840 |
Northern Bin Benches Bollards Signs Tables |
Northern Bins Bollards Benches $20,000 reinstated back to this year |
20,000 |
Western Bin Benches Bollards Signs Tables |
Western Bins Bollards Benches $20,000 reinstated back to this year |
20,000 |
Kaikohe Lions Club |
Kaikohe Lions Club Budget Movements renewals from 2034 |
15,900 |
Long Beach Road footpath corner to carpark-Russell |
Transfer from holding code to individual project codes and retiming |
13,810 |
Mains replacement Rawene |
Rawene Cemetery Water Main Approved by Will Taylor |
13,415 |
Taheke Road to Orrs Road eastbound-Footpath Kaikohe |
Covid19 lockdown - Footpath project reforecasted to AP 20/21 |
12,052 |
Whangaroa Hall Renewals |
Whangaroa Hall - Exterior Upgrade to address weather tightness issues |
12,000 |
Te Haumi Seawall |
Te Haumi Seawall & Carpark remediation Capex reforecasted to LTP 21/22 |
10,874 |
Rangihamama Road to Taheke Road SH12-Footpath Kaikohe |
Transfer from holding code to individual project codes and retiming |
10,028 |
9B Hone Heke Road Kerikeri SW Pipeline Upgrade |
Tfr of Renewal Budget |
9,664 |
Opononi/Omapere Stormwater Imps |
40 Fairlie Cresc SW Imps |
9,190 |
Rawene Old Courthouse |
Rawene Community Library Renewals reactive |
7,202 |
Russell Robertson St Stormwater Lines |
Tfr Future Renewal Budget Russell Robertson Street |
5,287 |
Kaitaia Oxford St Housing for the Elderly |
HFTE Oxford St & Puckey Ave mailbox renewal |
4,241 |
Jaycee Park/Centennial Park |
Cent Park historic train repairs Renewal heritage asset |
3,200 |
Kaitaia Swimming Pools |
Kaitaia Swimming Pool Dive Board Retiming for this year |
2,369 |
1506 Inland Road Sewer Connection |
1506 Inland Rd Sewer Connection Renewal Asset 301462 |
2,070 |
Landfill Russell |
Russell Landfill Leachate pump Renewal from 2021-22 |
1,900 |
Disability Access Halls Western |
Disability Halls Access Western Capex reforecasted to LTP 21/22 |
559 |
Commercial Street Car Park Renewals |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-705 |
Kawakawa WWTP RMU |
To be removed - allowed for in 551134 Capex Reforecast |
-2,535 |
Horeke Housing for the Elderly |
Re-forecast to FY21/22 Capex Reforecast |
-2,613 |
Kawakawa Tirohanga Borefield |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-5,173 |
Conversion of Off Street Car Parking to Accessible Levels |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-5,573 |
Conversion of Off Street Car Parking to Accessible Levels |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-5,573 |
Conversion of Off Street Car Parking to Accessible Levels |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-5,573 |
Kawakawa WWTP RMU |
To be removed - allowed for in 551134 Capex Reforecast |
-5,641 |
Parks & Reserves Western |
Re-forecast out to FY21/22 Capex Reforecast |
-6,065 |
Disabled access Toilets Eastern |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-6,222 |
Accessible Carparks Eastern |
Reinstate budget from 21/22 FY back into Capex reforecasted to LTP 21/22 |
-6,625 |
Accessible Carparks Northern |
Reinstate budget from 21/22 FY back into Capex reforecasted to LTP 21/22 |
-6,872 |
Paihia Mains Fire Flows Puketona Haruru Falls |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-6,979 |
Civil Defence Renewals |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-7,055 |
Kohukohu Housing for the Elderly |
Re-forecast to FY21/22 Capex Reforecast |
-7,130 |
Rawene Grundy Street Reticulation |
Needs to be removed-Project completed Capex Reforecast |
-7,665 |
Russell Bores Control System Upgrade |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-7,808 |
Ahipara Parks & Reserves |
Funding to be removed saving frm FY18/19 no works required - Capex Reforecast |
-9,308 |
Disabled access Toilets Western |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-10,116 |
Accessible Carparks Western |
Reinstate budget from 21/22 FY back into Capex reforecasted to LTP 21/22 |
-10,363 |
Whangaroa Wastewater Scheduled Renewals |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-10,440 |
Kaikohe Taraire Hills Reservoir |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-10,578 |
Opononi Specified Works |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-12,736 |
District Wide Treatment Plant Instrumentation Upgrade |
To be removed - allowed for in 551134 Capex Reforecast |
-12,877 |
Whangaroa Parks and Reserves |
Re-Forecast to FY21/22 Capex Reforecast |
-14,367 |
Taheke Road to Orrs Road eastbound-Footpath Kaikohe |
Covid19 lockdown - Footpath project reforecasted to AP 20/21 |
-18,260 |
Proctor Library HVAC |
Budget savings Proctor Library HVAC system |
-20,627 |
Districtwide Chlorinator Replacements |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-22,484 |
Ahipara Parks & Reserves |
Korora Park Carpark Apron replacement Renewal from 2023-24 and 2024-25 |
-22,618 |
Paihia Parks & Reserves |
Re-forecast to FY21/22 Capex Reforecast |
-24,181 |
Taupo Bay Toilet |
Re-forecast to FY23/24 Capex Reforecast |
-25,721 |
Tsunami Warning System |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-29,710 |
Parks & Reserves Eastern |
KK Doves Bay; Paihia Lily Pond Carpark Russell Strand; Russell Tapeka -FY22/23 |
-32,616 |
Okaihau Supplementary Source |
Covid19 lockdown Capex reforecasted to AP 20/21 |
-33,158 |
Disability Access Halls Northern |
Reinstate budget from 21/22 FY back into Capex reforecasted to LTP 21/22 |
-33,324 |
Paihia Specified Works |
Paihia Specified Works Capex reforecast to 20/21 |
-35,259 |
Kaikohe Taraire Hills Reservoir |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-35,412 |
Opononi Specified Works |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-40,336 |
Asset Finda Hardware & Software |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-40,880 |
Rawene/Omanaia Water Treatment Plant Power Supply |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-48,958 |
Whatuwhiwhi Wastewater Schduled Renewals |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-50,098 |
Ward Wide Town Beautification / Improvements Western |
Re-Forecast to FY21/22 Capex Reforecast |
-51,100 |
Kaikohe Streetscape UpGrade |
Re-Forecast to FY21/22. Budget to be renamed to Urban Streetscapes |
-54,867 |
Te Haumi Carpark |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-55,934 |
Mobile Toilets (Temporary Facilities) |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-67,290 |
Rawene Grundy Street Reticulation |
Needs to be removed-Project completed Capex Reforecast |
-68,985 |
Disability Access Halls Eastern |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-71,101 |
Mains replacement Kaitaia |
Covid19 lockdown Capex reforecasted to AP 20/21 |
-75,858 |
Oruru Hall |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-78,443 |
Kaikohe Reticulation |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-80,144 |
Kerikeri Domain Playground |
Re-Forecast to FY21/22 Capex Reforecast |
-81,249 |
Kaikohe Reticulation |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-81,760 |
Kerikeri PS9 |
Needs to be moved out to 2020-2021 and is meant to be PS3 Bill to investigate |
-81,760 |
Paihia Watea Industrial Area Fire Flow Upgrade |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-82,138 |
Russell Parks & Reserves Renewals |
Russell Parks & Reserves Capex reforecast to 21/22 |
-84,530 |
Digitisation Scanning |
Digitisation Scanning Opex savings |
-86,403 |
Wastewater Telemetry |
Wastewater Telemetry Capex reforecast to 21/22 & 22/23 |
-90,754 |
Paihia Watea Industrial Area Fire Flow Upgrade |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-92,624 |
Kaikohe Training Yard |
Reforecast out to YR1 next LTP FY22/23 Capex Reforecast |
-99,988 |
Lindvart Park Pavillion |
Re-forecast to FY21/22 Capex Reforecast |
-100,196 |
Broadwood Swingbridge |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-102,200 |
Kerikeri Backwash Tank |
Kerikeri Backwash Tank |
-102,200 |
Opononi Housing for the Elderly |
Re-forecast to FY21/22 Capex Reforecast |
-108,406 |
Kerikeri WTP Structural Work on Clarifier |
Kerikeri WTP Structural Work Approved by T Proctor |
-110,008 |
Hihi WWTP Construction |
To be moved out to 2020-2021 Capex Reforecast |
-112,420 |
Office Equipment |
move uncommitted funds out to year 2020.2021 |
-116,777 |
Kawakawa Infiltration & Inflow |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-125,600 |
Wastewater Telemetry |
Wastewater Telemetry Per Tanya Proctor Request |
-136,130 |
District Wide Reservoirs Structural Works |
Reforecast to FY20/21 Capex Reforecast |
-140,754 |
Treatment Plant Upgrade Kerikeri |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-141,738 |
Kaitaia Reduction of Wastewater Overflows Option |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-143,080 |
Rawene Housing for the Elderly |
Re-forecast to FY21/22 Capex Reforecast |
-144,404 |
Kawakawa Infiltration & Inflow |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-188,400 |
Community Hub Kaikohe |
Kaikohe Hub Capex reforecast 20/21 |
-200,000 |
Kaitaia Reduction of Wastewater Overflows Option |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-214,620 |
Kerikeri Rugby Pavilion |
Kerikeri Rugby Pavilion Capex reforecast to 20/21 |
-306,600 |
Waipapa Roundabout Disposal Field |
SJ - Will not be delivered. Needs to be removed from LTP. Should not be SW proj |
-306,600 |
Kerikeri Parks & Reserves |
Covid19 lockdown Capex reforecasted to LTP 21/22 |
-360,615 |
Hihi WWTP Construction |
To be moved out to 2020-2021 Capex Reforecast |
-398,580 |
Pool Vehicles |
move uncommitted funds out to year 2020.2021 |
-418,973 |
Community Hub Kaikohe |
Kaikohe Hub Capex reforecast 20/21 |
-3,800,000 |
|
|
-8,420,286 |
|
|
|
|
|
-7,872,602 |
Note – Of the $95.5M total borrowing, $49M is Short Term:
$9M repayable in May 2020
$40M repayable in June 2020
Statement of Financial Performance
Statement of Capital Performance
Analysis of Operational Income and Expenditure by LTP Group
22 May 2020 |
5.7 Revenue Recovery Report - March 2020
File Number: A2876424
Author: Margriet Veenstra, Manager - Transaction Services
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
Executive Summary
This report provides information on action taken to collect the current and arrears balances for rates, water and Sundry Debt so far this year, and to provide information on how collection is tracking against targets.
That the Assurance, Risk and Finance Committee receive the report “Revenue Recovery Report - March 2020: |
1) Background
This information is part of the standing items reported to the Committee on a regular basis.
2) Discussion and Options
This document has been prepared to outline current and arrears balances for rates, water and Sundry debt as at 30 March 2020 and the actions taken by the Debt Management Team for the collection of the General Title rates and water and Sundry Debt.
This information is part of the standing items reported to the Committee on a regular basis.
Discussion and Next Steps
The total arrears balance for General Title rates has been reduced by 27% since 31 July 2019 and water by 35%. Maori Freehold Land rates was reduced by 1% since 31 July 2019 and water by 9%.
Due to the water crisis and subsequent Covid-19 crisis, focus has changed for Debt Management from active recovery of arrears, to monitor, contain and support.
Below were the actions and focus areas for the first half of the rating year but these have now been placed on hold for the next 6 months.
· Legal action for rates and water arrears with an external Law Firm.
· Prepare policy for approval by Council of next actions post default judgment from the courts.
· Council Legal team to commence legal proceedings for 10 accounts.
· Final Mortgage demand for rates and water for General Title properties
o Out of the 453 accounts for which Mortgage Demand was issued, 69 accounts now have Direct Debit set up and 6 have a separate payment arrangement.
o Debt Management team will continue to contact all owners, where possible, and offer a payment arrangement to avoid mortgage demand when Council is able to proceed with Final Demand.
Debt Management will continue with:
· Continuous audit of existing Arrangements to Pay to ensure the agreements are being met.
· Ongoing promotion of the Internal Affairs Rates Rebates Scheme in day to day communications with Ratepayers.
New focus area for Debt Management for the next 6 months is to
· Contact rate payers who have contacted Council requesting support and offer a suitable payment plan.
o A new Crisis Rating Relief RFS has been created to enable monitoring and reporting.
o Since 19/03/20, a total of 142 requests have been received of which 57% were received during Level 4 lockdown and 43% since going down to Level 3.
o 77% of the requests have been actioned with remainder in progress.
o Majority of requests are from rate payers asking to reduce payments due to reduced income or loss of work.
o Key steps taken by Debt Management as part of the conversation:
§ Remind rate payers of other support available, such as Accommodation Supplement, Rural Assistance Payments, Banks & WINZ.
§ Rate payers are asked, and most are able, to provide proof as outlined in the resolution to ensure they meet the criteria for council’s rating relief.
§ Payment plan and amount of reduction is based on the amount owed and whether the account was up to date at the start of the rating year.
§ For current accounts, a reduction is agreed based on affordability for the rate payer.
§ For accounts already in arrears, Rates Easy Pay calculations are extended up to 2024 which can reduce payments by up to 75%.
§ Specific codes are added to all accounts with a Rating Relief payment plan to allow reporting and ensure a review by 30/09/20 when the council resolution is due to end.
· Pro-actively contact rate payers who have recently cancelled or have dishonoured their direct debit payments
o Offer a suitable payment plan and work with the rating team to manage any changes to direct debits
· Pro-actively contact all owners, where possible, where mortgage demand was issued and offer a payment arrangement to avoid final mortgage demand when Council can proceed with Final Demand.
· Pro-actively contact business owners and others who would benefit from Council’s rating relief resolution to offer support.
As at 01.05.20, there are 38 agreed payment plans in place, in line with Council’s rating relief resolution, of which 21 are business owners and 17 are residents.
· Based on calculations, the agreed payment plans will result in a decrease of $71,681.20 in payments from 07.05.20 to 30.09.20.
· A direct debit is in place for all payment plans to ensure these can be monitored.
· 20 out of 38 previously paid by instalment date, 7 monthly, 9 weekly and 2 fortnightly.
· 10 of those paying by instalment, will continue to pay by instalment but reduced by 50%, others have switched to monthly or weekly payments instead and 3 will be deferring until 30.09.20 or earlier when they are able to commence trading.
For the total number of General Title rates and water accounts marked as ‘Balance to be collected by other means’:
· The arrears balance for 15% is made up of last year’s outstanding rates and 24% of the last two years.
· For the remaining 61%, the arrears balance is split across several years. Some of these will have received Final Demand letters and are waiting to be referred for Legal proceedings or further action needs to be taken.
The Te Hono team relations and development initiatives have opened communications about payment of rates for Maori Freehold Land.
· Debt Management have been asked to provide and discuss payment options for some property owners in the past months.
The total Sundry Debtors aged debt has been reduced by 71% since 30 June 2019. The Debtors ledger was split alphabetically between Debt Management Officers at the start of the rating year, with each team member focussing on aged debt. Additionally, the team have:
· Regular monthly and fortnightly meetings with Compliance Support and Building Consents Support teams to resolve outstanding issues and implement process improvement where applicable.
· Continued collaboration with Council Legal team for advice and support for Sundry debtors aged debt collection.
· Trial collaboration with the Monitoring Officer in Kaitaia to combine visits to premises with debt collection and ensuring compliance with the various local government acts.
3) Financial Implications and Budgetary Provision
1. ARF Revenue Recovery Report - A2876420 ⇩
Assurance, Risk and Finance Committee Meeting Agenda |
22 May 2020 |
General Title rates and water rates analysis by age at 31 March 2020.
Maori Freehold Land rates and water analysis by age at 31 March 2020.
Sundry Debtors by age for 31 March 2020.
22 May 2020 |
5.8 Level of Service KPI Quarter 3 Performance Report
File Number: A2876091
Author: Mia Haywood, Accounting Support Officer
Authoriser: Janice Smith, Chief Financial Officer
Purpose of the Report
The purpose of this report is to present the Level of Service KPI Performance Report for Committee’s consideration.
Executive Summary
· This report is to present the Level of Service KPI Performance Report for Committee’s consideration.
That the Assurance, Risk and Finance Committee receive the report Level of Service KPI Quarter 3 Performance Report.
|
Background
An overview of staffing and financial data is included to give an overall picture of the activity groups and what factors may have an influence upon performance.
Discussion and Next Steps
This report is for information only.
Financial Implications and Budgetary Provision
There are no financial implications or budgetary provision needed as a result of this report
1. Level of Service - Quarter 3 Performance Report - A2876084 ⇩
22 May 2020 |
RESOLUTION TO EXCLUDE THE PUBLIC