Agenda of Assurance, Risk and Finance Committee Meeting

	Authorising Body	Mayor/Council
	Status	Standing Committee
COUNCIL COMMITTEE	Title	Assurance, Risk and Finance Committee Terms of Reference
	Approval Date	19 December 2019
	Responsible Officer	Chief Executive

Purpose

The purpose of the Assurance, Risk and Finance Committee (the Committee) is to assist and advise the Governing Body in discharging its responsibility and ownership of finance, risk and internal control.

The Committee will review the effectiveness of the following aspects:

· The robustness of financial management practices;

· The integrity and appropriateness of internal and external reports and accountability arrangements;

· The robustness of the risk management framework;

· The robustness of internal controls and the internal audit framework;

· Compliance with applicable laws, regulations, standards and best practice guidelines;

· The establishment and maintenance of controls to safeguard the Council’s financial and non-financial assets;

· Data governance framework

To perform his or her role effectively, each Committee member must develop and maintain

his or her skills and knowledge, including an understanding of the Committee’s responsibilities, and of the Council’s business, operations and risks.

Membership

The Council will determine the membership of the Assurance, Risk and Finance Committee including at least one independent appointment with suitable financial and risk management knowledge and experience.

The Assurance, Risk and Finance Committee will comprise of at least five elected members (one of which will be the chairperson), and one independent appointed member.

Mayor Carter

John Vujcich – Chairperson

Bruce Robertson – Deputy Chairperson and Independent Member of the Committee

Moko Tepania

Mate Radich

Kelly Stratford

Ann Court

Mike Edmonds

Adele Gardner

Non-appointed councillors may attend meetings with speaking rights, but not voting rights.

Quorum

The quorum at a meeting of the Assurance, Risk and Finance Committee is 4 members.

Frequency of Meetings

The Assurance, Risk and Finance Committee shall meet every 6 weeks, but may be cancelled if there is no business.

Power to Delegate

The Assurance, Risk and Finance Committee may not delegate any of its responsibilities, duties or powers.

Committees Responsibilities

The Committees responsibilities are described below:

Financial systems and performance of the Council

· Review the Council’s financial and non-financial performance against the Long Term Plan and Annual Plan

· Review Council quarterly financial statements and draft Annual Report

Far North Holdings Limited (FNHL)

· Recommend to Council the approval of statement of intent and Annual Report (s67 LGA)

· Receive 6 monthly report on operations (s66 LGA)

· Receive quarterly financial statements

· Recommend appointment of directors of FNHL

Risk Management

· Review appropriateness of Council’s risk management framework and associated procedures for effective risk identification, evaluation and treatment

· Receive and review risk management dashboard reports

· Provide input, annually, into the setting of the risk management programme of work

· Receive updates on current litigation and legal liabilities

Internal Audit and Controls

· Review whether management has in place a current and comprehensive internal audit framework

· Receive and review the internal audit dashboard reports

· Provide input, annually, into the setting of the internal audit programme of work

· Review whether there are appropriate processes and systems in place to identify and investigate fraudulent behaviour

The Committee will manage Council’s relationship with external auditor.

The Committee will approve applications to declare land abandoned and any other such matters under the Rating Act.

Rules and Procedures

Council’s Standing Orders and Code of Conduct apply to all the committee’s meetings.

Annual reporting

The Chair of the Committee will submit a written report to the Chief Executive on an annual basis. The review will summarise the activities of the Committee and how it has contributed to the Council’s governance and strategic objectives. The Chief Executive will place the report on the next available agenda of the governing body.

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
Hon John Carter QSO	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
Kelly Stratford - Partner	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

Assurance, Risk and Finance Committee Meeting Agenda

29 July 2020

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

File Number: A2916341

Author: Casey Gannon, 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.

Recommendation

That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 17 June 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.

Attachments

1. 2020-06-17 Assurance, Risk and Finance Committee Minutes [A2899919] - A2899919 ⇩

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

29 July 2020

MINUTES OF Far North District Council
Assurance, Risk and Finance Committee Meeting
HELD VIRTUALLY VIA MICROSOFT TEAMS
ON Wednesday, 17 June 2020 AT 1.00 pm

PRESENT: Cr John Vujcich, Member Bruce Robertson, Mayor John Carter, Cr Kelly Stratford, Cr Moko Tepania, Member Mike Edmonds

IN ATTENDANCE: Cr Rachel Smith

1 Karakia TimatAnga – opening prayer

2 Apologies and Declarations of Interest

Apologies received from Deputy Mayor Ann Court and a leave of absence was granted.

3 Deputation

There were no deputations.

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

Agenda item 4.1 document number A2895497, pages 10 - 15 refers.

Resolution 2020/1

Moved: Cr John Vujcich

Seconded: Member Bruce Robertson

That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 22 May 2020 as a true and correct record.

Carried

5 Reports

5.1 NZ Audit Fraud Questionnaire

Agenda item 5.1 document number A2889264, pages 16 - 21 refers.

Resolution 2020/2

Moved: Member Bruce Robertson

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee approve the proposed response.

Carried

6 Information Reports

6.1 Internal Audit and Assurance Report

Agenda item 6.1 document number A2885033, pages 22 - 27 refers.

Resolution 2020/3

Moved: Cr Kelly Stratford

Seconded: Mayor John Carter

That the Assurance, Risk and Finance Committee receive the report Internal Audit and Assurance Report.

Carried

6.2 Risk Register Update

Agenda item 6.2 document number a2889879, pages 28 - 35 refers.

Resolution 2020/4

Moved: Cr Kelly Stratford

Seconded: Mayor John Carter

That the Assurance, Risk and Finance Committee receive the report June 2020 Risk Register Update.

Carried

6.3 Far North Holdings Limited - March 2020 Third Quarter Financial Report

Agenda item 6.3 document number A2895646, pages 36 - 42 refers.

Resolution 2020/5

Moved: Cr Kelly Stratford

Seconded: Member Bruce Robertson

That the Assurance, Risk and Finance Committee receive the report Far North Holdings Limited - March 2020 Third Quarter Financial Report.

Carried

6.4 Far North Holdings Limited - Statement of Intent for the period 2020 to 2023

Agenda item 6.4 document number A2895790, pages 43 - 56 refers.

Resolution 2020/6

Moved: Member Bruce Robertson

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee receive the report Far North Holdings Limited - Statement of Intent for the period 2020 to 2023.

Carried

6.5 Council Financial Report for the Period Ending 31 May 2020

Agenda item 6.5 document number A2896330, pages 57 - 84 refers.

Resolution 2020/7

Moved: Cr John Vujcich

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 31 May 2020.

In Favour: Crs John Vujcich, John Carter, Bruce Robertson, Kelly Stratford, Moko Tepania and Mike Edmonds

Against: Nil

Carried

7 Public Excluded

ResOlUtion to permit COUNCILLOR Smith into public excluded

Resolution 2020/8

Moved: Cr John Vujcich

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee agree that Councillor Smith be permitted to remain in the meeting with the public excluded. Matters of Assurance, Risk and Finance encompass multiple deliverables throughout the organisation, and as a Councillor, specific knowledge can assist in the discussion related to strategic direction.

Carried

RESOLUTION TO EXCLUDE THE PUBLIC

Resolution 2020/9

Moved: Cr John Vujcich

Seconded: Member Bruce Robertson

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:

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
7.1 - Confirmation of Previous Minutes	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
7.2 - Far North Holdings Limited Reappointment of Director	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons	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

In Favour: Crs John Vujcich, John Carter, Bruce Robertson, Kelly Stratford, Moko Tepania and Mike Edmonds

Against: Nil

Carried

Resolution 2020/10

Moved: Cr John Vujcich

Seconded: Cr Kelly Stratford

That Council moves out of Closed Council into Open Council.

Carried

8 karakia whakamutunga – closing prayer

9 Meeting Close

The meeting closed at 3:00 pm.

The minutes of this meeting were confirmed at the Assurance, Risk and Finance Committee Meeting held on 29 July 2020.

...................................................

CHAIRPERSON

Assurance, Risk and Finance Committee Meeting Agenda

29 July 2020

5 Reports

5.1 Audit New Zealand documentation for the year ended 30 June 2020

File Number: A2919893

Author: Janice Smith, Chief Financial Officer

Authoriser: William J Taylor MBE, General Manager - Corporate Services

Purpose of the Report

This report presents the draft external audit proposal, plan and engagement letter from Audit NZ. The Audit proposal includes fees for 2019/20 audit.

Executive Summary

· Far North District Council is required to be audited by the auditor appointed by the Office of the Auditor General, which for Far North District Council is Audit NZ.

Recommendation

That the Assurance, Risk and Finance Committee:

a) receive the audit documents:

i) Audit Engagement Letter for the year ended 30 June 2020;

ii) Audit Proposal Letter for the June 2020, 2021 and 2022 financial years;

iii) Audit Plan for the year ended 30 June 2020; and

iv) Confirmation of Engagement – Limited Assurance Report in respect of FNDC’s Debenture Trust Deed.

b) approve the CEO and Mayor signing the documents on behalf of Council as appropriate.

1) Background

Far North District Council, in compliance with the Local Government Act 2002, prepares an Annual Report at the end of each financial year. This is required to be audited by the appointed Auditor, which for Far North District Council is Audit NZ. The schedule of dates agreed with Audit NZ for the financial year 2019/2020, are as follows:

o Interim Audit 1 – 6 April to 10 April 2020

o Interim Audit 2 – 4 May 2019 to 8 May 2020

o Pre final Audit – 22 June 2019 to 26 June 2020

o Final Audit – the two weeks commencing 31 August 2020

Adoption of the Annual Report is anticipated to be at the 29 October 2020 Council meeting.

2) Discussion and Options

Attached to this report are the proposed audit plan, the audit proposal letter for the financial years 2019/20, 2020/21 and 2021/22, the audit engagement letter and the confirmation of engagement for the limited independent assurance report for the Council’s debenture trust deed.

The relevant legislation in relation to this issue is as follows:

a) Local Government Act 2002, Part 6, Section 98, Subpart 2 which requires Local Authorities to prepare and adopt an Annual Report in respect of each financial year; and

b) Local Government Act 2002, Part 6, Section 99, which requires the Annual report to include the Auditors Report outlining the authority’s compliance with Schedule 10 of the Local Government Act 2002.

It is recommended that the audit plan, the audit proposal, audit engagement letters and the independent assurance letter for the debenture trust deed be received and that the CEO and Mayor be authorised to sign on behalf of Council as appropriate.

Reason for the recommendation

To make the Committee aware of the documentation required to formalise the audit processes for the financial year ended 30 June 2020.

3) Financial Implications and Budgetary Provision

There are no specific financial implications other than the fees proposed. These are budgeted and included in the Annual Plan each year.

Attachments

1. FNDC 2020-22 Audit Proposal Letter - one year fee - A2918796 ⇩

2. FNDC 2020-22 Audit Engagement Letter - A2918829 ⇩

3. FNDC 20J Audit Plan - A2918819 ⇩

4. FNDC Tri-partite engagement letter - Debenture Trust Deed - A2919890 ⇩

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	N/A
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Local Government Act Part 6, Sub Part 2, s98 and s99
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.	District Wide
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.	N/A
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.	N/A
State the financial implications and where budgetary provisions have been made to support this decision.	Audit fees are budgeted for annually
Chief Financial Officer review.	The Chief Financial Officer prepared this report

Assurance, Risk and Finance Committee Meeting Agenda

29 July 2020

6 Information Reports

6.1 July Risk Management

File Number: A2906078

Author: Tanya Reid, Business Improvement Specialist - Corporate Services

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 four of the top organisational risks.

Progress on group risk continues.

Recommendation

That the Assurance, Risk and Finance Committee receive the report July 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, are 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 and establish group risk registers, with treatment plans, and regular reviews.

Discussion and Next Steps

Four risk progress reports, with treatment plans, are provided with highlights and analysis of risk trend below. More detail is available in the attached risk progress reports.

The risk trend for ARF003 Health Safety and Wellbeing Vulnerabilities Risk has been assessed as neutral. The 5-year strategic plan is currently part way through Horizon 2 (years two and three) with planned activities started. Environmental conditions have impacted our planned response to this risk with delays on Vehicle GPS and Lone Worker Safety Solutions Project, as well as Health Monitoring Programme. Increased distributed working (including increased number and frequency of “working from home”) will test our risk treatments. Monitoring these impacts will occur during the pilot of Creating and Enabling Great Workplaces.

The risk trend for ARF006 Projects Priorities Delivery Delays Risk has been assessed as neutral with several treatments now established. Project resourcing will continue to be a challenge with an expected increase in projects to be delivered as we successfully bid for new channels of government funding for projects. A treatment to manage the impact of this expected increase in projects has been proposed to SLT.

The risk trend for ARF009 Customer Service Delivery Risk remains high (increasing risk). This is because of the negative impact of the dual drought and COVID-19 crises on key customer satisfaction metrics. However, there have been some excellent customer success stories over the lockdown period, such the implementation of the COVID-19 Rates Relief policy, which moved the rates team score from 60 (April 20) to 83 in May (a 38% increase).

The risk trend for ARF012 Contract Management Risk has been assessed as neutral, an improvement from the last report when the impact of the COVID-19 pandemic could have resulted in disruption to supply chains and work. This situation remains a watching brief. Treatments have been established, with two specialists appointed and an FNDC-wide contract register in place, with additional identified treatments in progress.

Re-evaluation of risk

The six-monthly risk progress report will be provided in September for the ARF013 Potable Water Resilience Risk as approved by Council on 7 May 2020.

We have requested scheduling of an elected member workshop to review the Top Organizational Risk Dashboard using our bespoke IDEATE methodology.

Group Risk

The Transformation and Assurance team continues to work through the organisation to establish and maintain Group Risk Registers. These registers will be used to inform the elected member Top Organizational Risk Dashboard workshop where there is proposed escalation and de-escalation of risk.

Financial Implications and Budgetary Provision

At this stage no additional budgetary provision has been identified for the treatment plans.

Attachments

1. FINAL 2020 07 ARF003 Health Safety and Wellbeing Vulnerabilities Risk Progress Report - A2917474 ⇩

2. FINAL 2020 07 ARF006 Projects Priorities Delivery Delays Risk Progress Report - A2917494 ⇩

3. FINAL 2020 07 ARF009 Customer Service Delivery Risk Progress Report - A2917504 ⇩

4. FINAL 2020 07 ARF012 Contract Management Risk Progress Report - A2917512 ⇩

Assurance, Risk and Finance Committee Meeting Agenda

29 July 2020

6.2 Revenue Recovery Report

File Number: A2913984

Author: Margriet Veenstra, Manager - Transaction Services

Authoriser: William J Taylor MBE, General Manager - Corporate Services

Purpose of the Report

The purpose of this report is to provide quarterly reporting to the Far North District Council Assurance, Risk, and Finance Committee.

Executive Summary

This is the fourth report for the financial year 2019/20 and 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

Recommendation

That the Assurance, Risk and Finance Committee receive the report “Revenue Recovery Report”.

1) Background

This document has been prepared to outline current and arrears balances for rates, water and sundry debt as at 30 June 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.

2) Discussion and Options

The information has been identified for General Title and Maori Freehold Land rates and water accounts. Sundry debtors, which is another revenue stream for council, is shown in a separate table.

The total arrears balance for General Title rates has been reduced by 34% since 31 July 2019 and water by 46%. 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, focus changed for Debt Management from active recovery of arrears, to monitor, contain and support during the last four months of the rating year.

Four key actions and focus areas for the first half of the rating year have been placed on hold during the past four months.

· Legal action for rates and water arrears with an external Law Firm.

· 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.

Debt Management focused on the following actions:

· Contact rate payers who have requested Crisis Rating relief and offer a suitable payment plan.

o A total of 284 Crisis Rating Relief RFS’s were raised.

o All rate payers have been contacted and accounts with agreed payment plans are being monitored.

o Requests for rating relief continue to be received, 20 since NZ moved to Alert Level 1 on the 8^th of June.

· Contact rate payers who have recently cancelled or dishonoured their direct debit.

· Contact owners, where possible, where mortgage demand was issued and offer a payment arrangement to avoid final mortgage demand in the new rating year.

· Contact business owners and others who would benefit from Council’s rating relief resolution to offer support.

· Contact all rate payers who missed the 4^th Instalment only and incurred penalties. Set up payment plans and remit penalties where payment was made, or plans set up.

For the total number of General Title rates and water accounts marked as ‘Debt recovery action to commence’:

· These are properties where there is no mortgage, no payments have been made this current year and the owner has not contacted council to discuss payment options.

· 46% of these accounts have arrears of more than 2 rating years.

o 50% of these accounts have received final demand letters from Council

o At the start of the new rating year, FNDC Legal Team will register the debt against these properties and commence filing for debt recovery through the courts.

o Debt Management will commence sending final demand letters to the remaining 50%.

· 54% is for accounts with up to two years rates arrears.

o Debt Management to commence pro-active calling and sending letters to customers to make contact.

o If no contact is made and no payment is received, final demand letters will be sent.

There have not been any new communications with the Te Hono team about payment of rates for Maori Freehold Land as a result of their relations and development initiatives.

The total Sundry Debtors 60+ days balance has been reduced by 47% 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. Although the focus for the past 4 months has been on rates and water, the team have recommenced debt collection since the start of this rating year.

3) Financial Implications and Budgetary Provision

Provision is made annually for doubtful debts in relation to the arrears owed to council. A higher provision for Maori Freehold land rates and water is made in comparison to General Title rates and water due to the difference in collection options available to Council.

Attachments

1. 29-07-2020 ARF Revenue recovery Report attachment - A2913988 ⇩