Te Kaunihera o Tai Tokerau ki te Raki
AGENDA
Assurance, Risk and Finance Committee Meeting
Wednesday, 9 September 2020
Time: |
1.00 pm |
Location: |
Virtually via Microsoft Teams |
Membership:
Cr John Vujcich – Chairperson
Bruce Robertson – Deputy Chairperson
Mayor John Carter
Deputy Mayor Ann Court
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.
Cr John Vujcich – Chairperson |
Bruce Robertson – Deputy Chairperson |
Mayor John Carter |
Deputy Mayor Ann Court |
Cr Mate Radich |
Cr Kelly Stratford |
Cr Moko Tepania |
Member Mike Edmonds - Kaikohe-Hokianga Community Board Chair |
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) |
Chair/Deputy Chair of a number of Audit and Risk Committees: Far North Auckland Bay of Plenty Regional Tauranga Thames Coromandel Hamilton Waipa Otorohanga Waitomo Environment Southland Invercargill Southland |
|
There is a low level of there being a potential interest conflict. An outside potential is water reform and ‘discussion’ of one north regional water company in loving North AKD with Watercare. |
I remain aware of my roiled and will Raise any matter with the Mayor/CEO And chair of ARF should any matter potentially conflict. |
|
Currently None are North AKD. Previously I have Undertaken work on Okara Park with Whangarei DC. |
Advisory Work. |
Okara Park is a regional Stadium. Matter solely related Governance and role of DC. Low risk of conflict. |
|
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 |
|
Māori 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 |
|
Māori 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 |
9 September 2020 |
Assurance, Risk and Finance Committee Meeting
will be held virtually via Microsoft Teams on:
Wednesday 9 September 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 Revenue Recovery report July 2020
6.1 Council Financial Report for the Period Ending 31 July 2020
6.3 Internal Audit and Assurance Report
6.4 Digital Information Services - Data Governance and IT Security
6.5 Level of Service KPI Quarter 4 Performance Report
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.
9 September 2020 |
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes
File Number: A2942645
Author: Casey Gannon, Meetings Administrator
Authoriser: William J Taylor MBE, General Manager - Corporate 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 29 July 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. 2020-07-29 Assurance, Risk and Finance Committee Minutes [A2927021] - A2927021 ⇩
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 |
9 September 2020 |
MINUTES OF Far North District Council
Assurance, Risk and
Finance Committee Meeting
HELD AT THE Council
Chamber, Memorial Avenue, Kaikohe
ON Wednesday, 29 July
2020 AT 1.00
pm
PRESENT: Cr John Vujcich, Deputy Mayor Ann Court, Member Bruce Robertson, Cr Mate Radich, Cr Kelly Stratford, Cr Moko Tepania, Member Mike Edmonds - Kaikohe-Hokianga Community Board Chair
IN ATTENDANCE: Cr Rachel Smith
1 Karakia Timatanga – opening prayer
Councillor Vujcich opened with a karakia.
2 Apologies and Declarations of Interest
Apologies from Mayor John Carter.
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes Agenda item 4.1 document number A2916341, pages 12 - 17 refers. |
Committee Resolution 2020/1 Moved: Cr John Vujcich Seconded: Cr Moko Tepania 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. Carried |
5.1 Audit New Zealand documentation for the year ended 30 June 2020 Agenda item 5.1 document number A2919893, pages 18 - 82 refers. |
Motion 2020/2 Moved: Cr John Vujcich Seconded: Member Bruce Robertson That the Assurance, Risk and Finance Committee approve the CEO and Mayor signing the documents on behalf of Council as appropriate. Carried |
Agenda item 6.1 document number A2906078, pages 83 - 92 refers. |
Committee Resolution 2020/3 Moved: Cr Kelly Stratford Seconded: Deputy Mayor Ann Court That the Assurance, Risk and Finance Committee receive the report July Risk Management. Carried |
At 1:32 pm, Kaikohe-Hokianga Community Board Chairperson Mike Edmonds left the meeting due to technical difficulties.
Agenda item 6.2 document number A2913984, pages 93 - 94 refers. |
Committee Resolution 2020/4 Moved: Member Bruce Robertson Seconded: Deputy Mayor Ann Court That the Assurance, Risk and Finance Committee receive the report “Revenue Recovery Report”. Carried |
The Assurance, Risk, and Finance Committee members request the minutes note a verbal briefing was provided for Internal Audit and Assurance.
7 Karakia Whakamutunga – closing prayer
Councillor Tepania closed with a karakia.
The meeting closed at 2:36.
The minutes of this meeting were confirmed at the Assurance, Risk and Finance Committee Meeting held on 9 September 2020.
...................................................
CHAIRPERSON
9 September 2020 |
5.1 Revenue Recovery report July 2020
File Number: A2940311
Author: Margriet Veenstra, Manager - Transaction Services
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
Executive Summary
This is the first report for the financial year 2020/21 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 July 2020.
|
1) Background
This information is part of the standing items reported to the Committee on a regular basis.
2) Discussion and Options
Year on year, the total arrears balance for General Title rates has increased by $113,380. However, we have 114 accounts with an arrears total of $195,000 under arrangement due to COVID-19 and mortgage demand did not proceed, which would have reduced the total by a further $1,165,000.
The rating resolution passed due to COVID-19, is still in effect until the 1st of October 2020 and focus is still on pro-active support.
The key actions and focus areas for the first half of the rating year are:
· Continue to contact rate payers who have requested Crisis Rating relief and offer a suitable payment plan, although requests for rating relief have diminished since NZ moved to Alert Level 1 on the 8th of June.
· Contact rate payers who have missed the 1st Instalment only and are due to incur penalties.
We are preparing for active recovery of arrears from the 1st of October 2020.
· Proceed with accounts on hold for legal action for 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.
· Mortgage demand for General Title properties with mortgages.
o Proactive calling of owners with only last year’s rates in arrears to offer payment arrangements to avoid mortgage demand.
o Prepare reporting to issue 1st mortgage demand letters.
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 received and the owner has not contacted Council to discuss payment options.
· 34% of these accounts have arrears of more than 2 rating years.
o 60% of these accounts have received final demand letters from Council
o FNDC Legal Team will commence registering the debt against these properties and commence filing for debt recovery through the courts.
o Debt Management will send final demand letters to the remaining 40%.
· 66% is for accounts with up to two years rates arrears.
o Debt Management to commence calling.
o If no contact is made, demand letters will be sent.
Debt Management have occasional communications with the Te Hono team regarding payment of rates arrears for Maori Freehold Land.
The total Sundry Debtors aged debt balance has been reduced by 56% since 30 June 2020. Since the reduced focus on the debtor’s ledger due to COVID-19, Debt Management Officers have recommenced debt collection since the start of this rating year. We have also initiated collaboration with the building and resource team to reduce the aged debt further for both areas.
3) Financial Implications and Budgetary Provision
1. 2020-09-09 ARF Revenue Recovery Report attachment - A2940314 ⇩
Assurance, Risk and Finance Committee Meeting Agenda |
9 September 2020 |
General Title rates and water rates analysis by age at 31 July 2020.
Maori Freehold Land rates and water analysis by age at 31 July 2020.
Sundry Debtors by age for 31 July 2020.
9 September 2020 |
6.1 Council Financial Report for the Period Ending 31 July 2020
File Number: A2943836
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 31 July 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 31 July 2020.
|
Background
This report provides financial information as at 31 July 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 July 2020 - A2943842 ⇩
Assurance, Risk and Finance Committee Meeting Agenda |
9 September 2020 |
Far North District Council
Council Financial Report
for the period ending 31-July-2020
Key financial metrics from the Statement of Financial Performance for the Far North District Council as at 31-July-2020.
The overall performance of Council has continued as usual even though we have only just come out of the final drought level, post COVID-19 and the recent flood event. Council 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 these situations so ongoing income and expenditure will be reviewed.
With every new financial year there are a number of variances across the organisation, this is mainly due to timing of the budgets. These are being reviewed and will be timed accordingly in the coming months.
Capital expenditure budgets are currently being reviewed and are yet to be timed according to the current workplans.
The commentary this month will only be by exception.
Overall, we had a Variance to Budget YTD movement of $4.4M.
*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)
· Dog owners are taking advantage of the discounted rate for early registrations which ends 30 August 2020.
· Income received from ferry ticket sales due to increased local tourism across the district post COVID19 lockdown.
· Building Consents are ahead of budget due to process improvements which has allowed the administration team to invoice more efficiently.
· Resource Consents issued 71 consents which was almost twice the amount in June.
Central Govt Subsidies – Operational
· Roading subsidy received from NZTA for maintenance and operations of the roading network across the district for sealed and unsealed pavement maintenance, drainage structures and traffic services.
· Ongoing unbudgeted Tourism Infrastructure Funds (TIF) received from Ministry of Business, Innovation & Employment (MBIE) for the Responsible Camping Working Group initiatives in partnership with between Far North District Council (FNDC), Department of Conservation (DoC) and Northland Regional Council (NRC).
Other Income
· Planned Provincial Growth Funds (PGF) for Lake Omapere and Bonnets Road water projects has not yet been received.
Central Govt Subsidies - New Works
· The balance of the Rawene/Omanaia Water Treatment Plant final subsidy has been carried forward from 2019/2020 project for completion of this project.
· Ongoing unbudgeted Tourism Infrastructure Funds (TIF) received from Ministry of Business, Innovation & Employment (MBIE) for the construction of public toilets at Opononi, Mitimiti, Waitangi boat ramp and Haruru Falls bush walk.
· Subsidy new works income for ongoing minor safety & improvements projects from last financial year for bridges at Otaua Rd, West Coast Rd; Panguru Rd raising, and associated improvements.
Central Govt Subsidies – Renewals
· Subsidy renewals income across roading network from NZTA for sealed and unsealed roads, drainage, rehabilitation, structures replacement, traffic services and ongoing minor safety & improvements works at West Coast Rd slip, Kaitaia Awaroa slip & safety projects.
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:
Contractor Fees
· Roading maintenance and operational expenses incurred across the district for sealed and unsealed pavement maintenance, drainage, structures and traffic services maintenance.
· Broadspectrum Services Limited (BSL) is ahead of budget due to contract materials, subcontractors and internal labour due to reactive works with the recent flood event.
· Kohu ra tuarua is now operated by Fullers GreatSights and the new contract is in place, the budget will be reviewed and timed accordingly.
External Services
· Footpaths is ahead of budget due to ongoing construction from 2019/2020 at Tau Henare Drive in Waitangi which will be completed by October 2020.
· Maritime facilities unbudgeted request in 2019/2020 for the demolition of the fertilizer shed at Te Hapua due to asbestos is now complete.
Highlights:
New Works
· Ongoing minor safety & improvements projects from last financial year for bridges at Otaua Rd, West Coast Rd; Panguru Rd raising, and associated improvements.
· A number of projects from prior year has continued but awaiting approval from the Carry Forward exercise to be completed.
Renewals
· Renewals works across roading network from NZTA for sealed and unsealed roads, drainage, rehabilitation, structures replacement, traffic services and ongoing minor safety & improvements works at West Coast Rd slip, Kaitaia Awaroa slip & safety projects.
Treasury Compliance
Statement of Financial Performance
Statement of Capital Performance
Analysis of Operational Income and Expenditure by LTP Group
9 September 2020 |
File Number: A2937737
Author: Tanya Reid, Business Improvement Specialist
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 September 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.
Top Organisational Risk Summary:
Risk #: |
Risk title |
Inherent risk score |
Residual risk score |
(A)ccountable |
(R)esponsible |
Risk Progress Report |
ARF001 |
Climate Change |
63 |
30 |
CEO |
GMSPP |
6 |
ARF002 |
BCA Status Risk |
51 |
18 |
CEO |
GMDS |
Monthly SLT/ARF/Council |
ARF003 |
Health & Safety Vulnerabilities |
46 |
34 |
CEO |
Manager P&C |
2 |
ARF004 |
Asset Management Risks |
45 |
18 |
CEO |
GMIAM |
6 |
ARF005 |
Affordability Risk |
45 |
26 |
CEO |
GMSPP |
6 |
ARF006 |
Project Priorities Deliveries Delays |
45 |
14 |
CEO |
GMIAM |
2 |
ARF007 |
Compliance NRC Abatements |
45 |
18 |
CEO |
GMIAM |
6 |
ARF008 |
Civil Defence |
42 |
38 |
CEO |
GMIAM |
6 |
ARF009 |
Customer Service Delivery |
39 |
22 |
CEO |
Manager P&C |
2 |
ARF010 |
Data Governance Risks |
39 |
14 |
CEO |
CEO |
6 |
ARF011 |
Organisational Cohesion Risks |
29 |
14 |
CEO |
CEO |
6 |
ARF012 |
Contract Management Risks |
39 |
14 |
CEO |
GMIAM |
2 |
ARF013 |
Drinking Water Resilience |
39 |
tba |
CEO |
GMIAM |
3 |
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.
Work has also began understanding the strategic and programme risks around Government-funded capital projects that support economic recovery. This will be reported at the Committee’s next meeting.
Discussion and Next Steps
Four risk progress reports, including high level treatment plan developments, are provided with highlights and analysis of risk progress below. More detail is available in the attached risk progress reports. ARF004 BCA Risk is reported separately by District Services.
ARF001 Climate Change Risk: The inherent risk profile has not changed. There has been progress with an FNDC Carbon Emissions Inventory completed and the presentation, then adoption, of the Climate Change Roadmap to Council in May.
ARF004 Asset Management Risk: The inherent risk profile has not changed. Completion of Programme Darwin, an asset management improvement programme, will provide the foundation to reducing the inherent risk profile.
ARF011 Organisational Cohesion Risk: FNDC has made good progress in addressing this risk. With the implementation of most of the identified treatments completed the risk score is trending down.
ARF013 Drinking Water Resilience Risk: The inherent risk profile has not changed as the proposed treatments have not yet had time to be implemented.
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. Where appropriate, risks across Groups will be consolidated, such as the similar high scoring people and culture risk, focussed on resourcing, recruitment and retention, identified by three Groups.
Group Risk Registers will capture and maintain information on the identified risks and will be used to inform elected members. At the Top Organizational Risk Dashboard elected member workshop these risks will be reviewed, with escalation and de-escalation of risks onto the organisational dashboard as agreed.
Summary of Group Risk Registers:
Group Risk Register: |
Number of identified risks:
|
Number of high impact/likelihood risks: |
Commentary: |
CEO Office |
No risks have been identified. |
|
Risk workshop planning is underway. |
Corporate Services |
35 departmental risks. No group risks have been identified. |
Two departmental risks have an inherent risk score of 39 or greater. |
Departmental and group risks to be completed. |
District Services |
19 risks, made up of 15 departmental risks and four group risks. |
Three departmental and one group risk have an inherent risk score of 39 or greater. |
Proposed escalation of their top group risk, at the ARF risk workshop, for consideration of inclusion on the top organisational dashboard. |
Infrastructure and Asset Management |
44 risks, made up of 17 departmental risks; 18 group risks; and one organisational risk. |
Three departmental; four group risks; and one organisational risk have an inherent risk score of 35 or greater. |
The organisational risk (ARF013) has been adopted onto the top organisational dashboard and is subject of a risk progress report. |
Strategic Planning and Policy |
Six risks, three organisational with the remaining unclassified. |
One risk has an inherent risk score of 35. |
Risk register progress has been put on hold due to workload. |
Financial Implications and Budgetary Provision
At this stage no additional budgetary provision has been identified for the treatment plans.
1. 2020 09 ARF001 Climate Change Risk Progress Report - A2937728 ⇩
2. 2020 09 ARF004 Asset Management Risk Progress Report - A2937729 ⇩
3. 2020 09 ARF011 Organisational Cohesion Risks Progress Report - A2937741 ⇩
4. 2020 09 ARF013 Drinking Water Resilience Risk Progress Report - A2937730 ⇩
9 September 2020 |
6.3 Internal Audit and Assurance Report
File Number: A2941620
Author: Celine Carlisle, 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 internal and external audit recommendations recently completed, almost complete, underway or on hold. Since the last report on 17 June, four recommendations have been noted as complete.
That the Assurance, Risk and Finance Committee receive the Internal Audit and Assurance Report.
|
Background
Two audit recommendations from the LGOIMA Compliance and Practice at Council have recently been completed by the Legal Services Team. Two further recommendations (KPMG procurement) regarding record-keeping have been completed.
There are plans in place to complete all other outstanding recommendations.
Audit recommendations as at 20 August 2020:
ID |
Audit Name |
Title |
Priority |
Status |
Description |
23 |
Internal Audit – Information Security |
External user access and authentication |
Must do |
Almost complete |
Network logon account internal audit has been completed. Findings to be actioned by the IT team. |
28 |
Internal Audit – Information Security |
Project Security Risks |
Should do |
Underway |
Information security controls need to be factored into FNDC's project management framework to ensure associated risks are managed. |
58 |
KPMG – Procurement |
Spend Monitoring |
Should do |
Underway |
Implement quarterly procurement spend analysis. |
59 |
KPMG -Procurement |
Spend Monitoring |
Should do |
Underway |
As part of the spend analysis process, integrate category spend management on a periodic basis. |
64 |
KPMG - Procurement |
Record-keeping |
Should do |
Complete |
Centralised system for storing documentation. Progress: A Contracts Register has been set up in SharePoint/Objective as an interim tool. An automated PPM tool will be implemented hopefully this year to manage the contracts register. |
65 |
KPMG - Procurement |
Record-keeping |
Should do |
Complete |
Establish naming conventions for consistent naming. Progress: Naming conventions have been agreed. |
74 |
2017 Audit NZ Interim Annual Management Report |
Legislative Compliance System |
Should do |
On hold |
Audit NZ recommend a mechanism for monitoring compliance with legislative requirements is put in place as part of the Council’s overall risk management strategies. Progress: Stakeholder interviews have been completed. A range of possible solutions have been investigated. The next step is to procure a legislative compliance system and this will be considered in future budgets. |
99 |
Contract Management Review |
Set contract management guidelines |
Must do |
Underway |
Focus is being placed on setting organisation wide contract management guidelines, encompassing the three main contractual areas: physical works, fixed term operational and maintenance, and goods and services. This encompasses the four contract stages: contract planning and development, contract execution, contract management and contract review/close-out. Progress: Work on developing a Contract Management Policy and Framework is progressing well. It should be ready to do small testing and seek further input from others in late September. |
105 |
2018 Audit NZ Final Annual Management Report |
Resource Management Deposits (Bonds) |
Must do |
Almost complete |
When testing the liability balance related to resource management deposits, Audit NZ found some deposits in the listing were received 18 years ago. They recommended resource management deposits be reviewed and an assessment made as to whether they still meet the definition of a liability. If not, they should be released to revenue. Progress: The Compliance Team have undertaken analysis and site inspections to determine which bonds can be refunded. This work is nearing completion. |
111 |
Three Waters Interim Alliance Agreement Review |
Education of Alliance contracts and principles |
Should do |
Underway |
Greater education provided for staff regarding expectations of an Alliance contract and understanding of the Alliance principles. Progress: Toolbox sessions are held regularly with Far North Waters. FNDC Asset Managers are going to be taken through the contract so they can get a clear understanding of how it works. |
115 |
Three Waters Interim Alliance Agreement Review |
Agree on Key Performance Indicators (KPI) |
Should do |
Underway |
Agree on the KPI’s through the Alliance Management Team, including finance and contract performance, proactiveness and innovation, and co-developed Health and Safety KPI’s. Progress: KPI’s will be agreed in 2020. |
123 |
2019 Audit NZ Final Annual Management Report |
Deferral of capital expenditure |
Must do |
Underway |
Audit NZ recommend the Council give consideration to the impact of deferred capital expenditure on asset condition and any potential impact this may also have on Council’s asset valuations and impairment assessments for future reporting cycles. Progress: Council has commenced Programme Darwin which is aimed at addressing issues with asset management. Delivery of the capital programme being one of these issues. Council is reviewing the capital programme to ensure that it is achievable from inception and is limited to what can reasonably be delivered. |
138 |
LGOIMA Compliance and Practice Report |
Amend operational guidance on staff intranet to comply with LGOIMA |
Must do |
Almost complete |
The LGOIMA Policy will be placed on the intranet. Legal Services will work with the Communications and IT teams to action this once SLT approval is gained.
Progress: SLT have approved the policy. It is now to be placed on the intranet. |
139 |
LGOIMA Compliance and Practice Report |
Develop a Proactive Release policy |
Must do |
Almost complete |
The Proactive Release Policy is nearing completion. As a result of the adoption of this policy, Legal Services will commence work on establishing the processes for proactive release of information, as well as how we manage publicly excluded items according to the policy guidelines.
Progress: The Proactive Release Policy is complete and adopted. Now need to establish procedure for proactive release of information. |
151 |
LGOIMA Compliance and Practice Report |
Consider ways to include contact centre, media, elected member and property file requests in LGOIMA statistics |
Must do |
Complete |
Reporting changes need to be made when reporting on LGOIMA to the Chief Executive - this work is currently in development.
Progress: This information is no longer being fed into the CE report. It is unachievable to accurately count the number of requests that enter the organisation. All are coded differently and through a combination of access points. The register we keep includes all relevant requests we’re currently able to identify. |
152 |
LGOIMA Compliance and Practice Report
|
Consider including more information about LGOIMA requests in the report to the Chief Executive |
Must do |
Complete |
We are changing the way we report on LGOIMA to the Chief Executive - this work is currently in development.
Progress: Information is no longer being fed into the CE report. |
Complete: 4
Almost complete: 4
Underway: 7
On hold: 1
Total: 16
Financial Implications and Budgetary Provision
This report is for information only.
Nil
9 September 2020 |
6.4 Digital Information Services - Data Governance and IT Security
File Number: A2940942
Author: Damon Campbell, Chief Digital Officer
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 the Digital Information Services - data governance and security activities within Council.
Executive Summary
Over the past six months we have undertaken a significant shift in priorities due to the drought and COVID-19 pandemic and lockdown. The flow on effect from this has meant establishing our ‘new normal’ and looking at how the Digital Information Services team plans our future Data Governance Framework.
COVID-19, Creating and Enabling Great Workplaces (CEGW), Working from Home and the adoption of the Office 365 platform are all contributing towards the wider Data Governance and IT Security Frameworks.
Council officers are developing several policies including Data Governance, Data Protection, Data Breach, Multimedia Management Policies, and IT Security Frameworks. These will be reviewed and adopted in the coming months.
The introduction and uptake of the Office 365 platform has also required additional guidelines and policies to be developed as part of the wider Data Governance Framework.
That the Assurance, Risk and Finance Committee receive the report Digital Information Services - Data Governance and IT Security.
|
Background
The Assurance, Risk and Finance Committee have previously discussed the importance of having robust, workable Data Governance and IT security standards and policies in place that not only protect Council, but also the wider consumers of Council-owned and maintained information.
The adoption of the Digital Strategy at the August Council meeting is another significant area with wide ranging implications that will need to be investigated and aligned moving forward.
The COVID-19 lockdown forced Council to pivot regarding the architecture and deployment of services and applications used by Council staff and contractors. This work programme is currently in detailed planning and will be tied in with the frameworks for data protection, IT security and accessibility.
This pivot has led to additions to the existing work programmes that are discussed in this report.
Discussion and Next Steps
IT Security Workshop
The Digital Information Services team participated in an IT Security Workshop with an IT security specialist company that has significant experience with New Zealand Local Government.
The workshop reviewed our current practices against the Centre for Internet Security (CIS) top 20 critical security controls (https://www.cisecurity.org/controls/cis-controls-list/) which is a prioritised set of best practices created to stop the most pervasive and dangerous threats of today.
The top 20 critical security controls are:
1. Inventory and control of hardware assets
2. Inventory and control of software assets
3. Continuous vulnerability management
4. Controlled use of administrative privileges
5. Secure configuration for hardware and software on mobile devices, laptops, workstations and servers
6. Maintenance, monitoring and analysis of audit logs
7. Email and web browser protections
8. Malware defences
9. Limitation and control of network ports, protocols and services
10. Data recovery capabilities
11. Secure configuration for network devices, such as firewalls, routers and switches
12. Boundary defence
13. Data protection
14. Controlled access based on the need to know
15. Wireless access control
16. Account monitoring and control
17. Implement a security awareness and training program
18. Application software security
19. Incident response and management
20. Penetration tests and red team exercises
The ‘New Normal’ and our ‘Digital First’ operating rhythms are key parts to ensuring that the correct controls and procedures are in place, monitored and are reviewed regularly to ensure compliance and protection.
ALGIM Local Government Cybersecurity Programme and IT Security Framework
We are in the process of joining a programme defined by ALGIM, and in conjunction with SAM for Compliance Ltd, to implement a pragmatic Cybersecurity Framework specific to local government which is based on the CIS 20 Controls.
The first step in implementing the Cybersecurity Framework is to undertake an audit which will be completed by an independent IT security specialist company.
The outputs of this audit will feed into the design of an overall IT Security Framework. This framework is a series of policies, procedures and processes that lower risk and vulnerability, and increase confidence in an ever-connected world. Safe, secure and functional information technology systems are vital for the successful operation of our Council.
ALGIM ICT Benchmarking Framework
Council will be completing an annual benchmarking programme that will provide Council with a considerable amount of data to identify areas that will need priority in future work programmes.
The benchmarking is against other NZ local authorities based on size. FNDC is defined as a large district/medium city so would be in a group of 19 other Councils. These measures will be a key part of future outputs and key performance indicators on an annual basis.
Key benefits and value proposition:
· Identify dissatisfied stakeholders and build tailored improvement plans to meet their needs
· Identify how IT capacity constraints effect the business, providing a strong case for budgetary increases or refocus
· Focus IT activity on where it is needed most by the business
· Measure the satisfaction of your key decision makers annually
· Move beyond opinion and get to the facts to build an accurate strategy and roadmap of initiatives based on your maturity
· Create a baseline for future improvement of IT maturity
Sample outputs are below:
Audit New Zealand
Audit New Zealand have recently undertaken a detailed Information Technology Controls Audit here at the Council. At the time of writing this report the final outputs from this audit have not yet been received. This audit is conducted on an annual basis as part of the mandatory Financial Audit.
Northland Digital Collaboration Alliance
The IT teams from the four Northland Councils have joined together to form the 'Northland Digital Collaboration Alliance’. This alliance will initially focus on cybersecurity knowledge sharing and collaboration, but it is envisioned the alliance will grow to include other areas of interest in the future. This is a ‘reboot’ to the previous Northland Forward Together (ICT Collaboration Group).
This group is in the early stages, but with the recent and significant changes to all Councils, it is envisaged that this will be able to maintain and plan for several initiatives that can deliver several shared benefits.
Multimedia Management Policy
Following the recent COVID-19 lockdown and the move of Council towards a digital first environment, there is a need to ensure that digital assets such as video and/or multimedia are protected and maintained in accordance with Council information management policies. This has resulted in the need for a specific Multimedia Management Policy to be developed.
Objective - Enterprise Content Management Governance
The governance of information in Objective is regularly reviewed and improved. Recent changes that will help manage our information risks and meet our LGOIMA requirements include:
· Boundary encroachment information will be stored in property files as per the Building Act section 216.
· Naming convention guidance has been revised and updated.
Financial Implications and Budgetary Provision
This report is for information only.
Nil
9 September 2020 |
6.5 Level of Service KPI Quarter 4 Performance Report
File Number: A2939659
Author: Mia Haywood, Accounting Support Officer
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
The purpose of this report is to present the Level of Service KPI Performance Report for the Assurance, Risk and Finance Committee’s consideration.
Executive Summary
This report is to present the level of service KPI performance report for the Assurance, Risk and Finance committee’s consideration.
That the Assurance, Risk and Finance Committee receive the report Level of Service KPI Quarter 4 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 on 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 KPI Quarter 4 - A2940993 ⇩