Te Kaunihera o Tai Tokerau ki te Raki
AGENDA
Assurance, Risk and Finance Committee Meeting
Wednesday, 29 July 2020
Time: |
1.00 pm |
Location: |
Council Chamber Memorial Avenue Kaikohe |
Membership:
Cr John Vujcich - Chairperson
Mayor John Carter
Deputy Mayor Ann Court
Member Bruce Robertson
Cr Mate Radich
Cr Kelly Stratford
Cr Moko Tepania
Member Mike Edmonds - Kaikohe-Hokianga Community Board Chair
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.
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 |
|
|
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 |
Assurance, Risk and Finance Committee Meeting Agenda |
29 July 2020 |
Assurance, Risk and Finance Committee Meeting
will be held in the Council Chamber, Memorial Avenue, Kaikohe on:
Wednesday 29 July 2020 at 1.00 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 Audit New Zealand documentation for the year ended 30 June 2020
6.3 Internal Audit and Assurance Update - a verbal report will be provided at the meeting
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.
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.
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.
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.
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 |
5.1 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 |
6.1 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 |
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:
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
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
29 July 2020 |
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.
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.
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
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 |
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 |
29 July 2020 |
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.
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.
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 ⇩
29 July 2020 |
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
That the Assurance, Risk and Finance Committee receive the report “Revenue Recovery Report”. |
1) Background
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 8th 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 4th 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
1. 29-07-2020 ARF Revenue recovery Report attachment - A2913988 ⇩
Assurance, Risk and Finance Committee Meeting Agenda |
29 July 2020 |
General Title rates and water rates analysis by age at 30 June 2020.
Maori Freehold Land rates and water analysis by age at 30 June 2020.
Sundry Debtors by age for 30 June 2020.