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

Rachel Smith

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
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.
Bruce Robertson (Deputy)	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
	Taumarere Counselling Services	Advisory Board Member	May be perceived conflicts	Should conflict arise, step aside from voting
	Sport Northland	Board Member	May be perceived conflicts	Should conflict arise, step aside from voting
Kelly Stratford - Partner	Chef and Barista	Opua Store	None perceived
Kelly Stratford - Partner	Māori title land – Moerewa	Shareholder	None perceived	If there was a conflict of interest, I would step aside from decision making
Rachel Smith	Friends of Rolands Wood Charitable Trust	Trustee
	Mid North Family Support	Trustee
	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member
Rachel Smith (Partner)	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member and Treasurer
Moko Tepania	Teacher	Te Kura Kaupapa Māori o Kaikohe.	Potential Council funding that will benefit my place of employment.	Declare a perceived conflict
	Chairperson	Te Reo o Te Tai Tokerau Trust.	Potential Council funding for events that this trust runs.	Declare a perceived conflict
	Tribal Member	Te Rūnanga o Te Rarawa	As a descendent of Te Rarawa I could have a perceived conflict of interest in Te Rarawa Council relations.	Declare a perceived conflict
	Tribal Member	Te Rūnanga o Whaingaroa	As a descendent of Te Rūnanga o Whaingaroa I could have a perceived conflict of interest in Te Rūnanga o Whaingaroa Council relations.	Declare a perceived conflict
	Tribal Member	Kahukuraariki Trust Board	As a descendent of Kahukuraariki Trust Board I could have a perceived conflict of interest in Kahukuraariki Trust Board Council relations.	Declare a perceived conflict
	Tribal Member	Te Rūnanga ā-Iwi o Ngāpuhi	As a descendent of Te Rūnanga ā-Iwi o Ngāpuhi I could have a perceived conflict of interest in Te Rūnanga ā-Iwi o Ngāpuhi Council relations.	Declare a perceived conflict
Mike Edmonds	Chair	Kaikohe Mechanical and Historic Trust	Council Funding	Decide at the time
Mike Edmonds	Committee member	Kaikohe Rugby Football and Sports Club	Council Funding	Withdraw and abstain

Assurance, Risk and Finance Committee Meeting Agenda

2 December 2020

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

File Number: A3005557

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 21 October 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. 2020-10-21 Assurance, Risk and Finance Committee Minutes [A2987394] - A2987394 ⇩

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

2 December 2020

MINUTES OF Far North District Council
Assurance, Risk and Finance Committee Meeting
HELD AT THE Council Chamber, Memorial Avenue, Kaikohe
ON Wednesday, 21 October 2020 AT 1.00 pm

PRESENT: Cr John Vujcich, Member Bruce Robertson (via VC), Deputy Mayor Ann Court, Cr Kelly Stratford, Cr Moko Tepania, Cr Rachel Smith

IN ATTENDANCE:

1 Karakia Timatanga – Opening Prayer

2 MEMBERSHIP OF COMMITTEE

Resolution 2020/1

Moved: Cr John Vujcich

Seconded: Deputy Mayor Ann Court

That the Assurance, Risk and Finance Committee recommend to Council that Cr Rachel Smith be appointed as a member of the Assurance, Risk and Finance Committee.

.Carried

NOTE: There is an item on the Council agenda to formalise this appointment among others at the Council meeting next Thursday. This appointment is already in hand via the report following on from previous conversations

3 Apologies and declarations of interest

Committee Resolution 2020/2

Moved: Cr John Vujcich

Seconded: Cr Kelly Stratford

Apologies for absence from His Worship the Mayor, Cr Mate Radich, Mike Edmonds and an apology for lateness from Cr Moko Tepania were accepted.

Carried

4 Deputation

5 Confirmation of Previous Minutes

5.1 Confirmation of Previous Minutes

Agenda item 4.1 document number A2969318, pages 12 - 18 refers.

Resolution 2020/3

Moved: Cr John Vujcich

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 9 September 2020 as a true and correct record.

Carried

Cr Moko Tepania joined the meeting at 1:19 pm.

6 Information Reports

6.1 2020-10-21 Revenue recovery report

Agenda item 5.1 document number A2962676, pages 19 - 25 refers.

Resolution 2020/1

Moved: Cr Kelly Stratford

Seconded: Cr John Vujcich

That the Assurance, Risk and Finance Committee receive the report “2020-10-21 Revenue recovery report”.

Carried

6.2 Council Financial Report for the Period Ending 31 August 2020

Agenda item 5.2 document number A2967248, pages 26 - 39 refers.

Resolution 2020/2

Moved: Cr Kelly Stratford

Seconded: Member Bruce Robertson

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

Carried

6.3 Tender Panel Quarterly Information Report May – August 2020

Agenda item 5.3 document number A2963355, pages 40 - 53 refers.

Resolution 2020/3

Moved: Cr Kelly Stratford

Seconded: Cr John Vujcich

That the Assurance, Risk and Finance Committee receive the report Tender Panel Quarterly Information Report May – August 2020.

Carried

6.4 Internal Audit and Assurance - October 2020

Agenda item 5.4 document number A2967061, pages 54 - 57 refers.

Resolution 2020/4

Moved: Cr Kelly Stratford

Seconded: Cr Moko Tepania

That the Assurance, Risk and Finance Committee receive the Internal Audit and Assurance – October 2020 report.

Carried

6.5 Risk Management - October 2020

Agenda item 5.5 document number A2960017, pages 58 - 70 refers.

Committee Resolution 2020/5

Moved: Cr John Vujcich

Seconded: Cr Moko Tepania

That the Assurance, Risk and Finance Committee receive the Risk Management - October 2020 report.

Cr Stratford left the meeting 2:29 pm and returned 2:33 pm.

Carried

6.6 Organisational Risk Assessment for Programme of Externally Funded Projects

Agenda item 5.6 document number A2970308, pages 71 - 84 refers.

Committee Resolution 2020/6

Moved: Cr Kelly Stratford

Seconded: Cr John Vujcich

That the Assurance, Risk and Finance Committee:

a) receive the Organisational Risk Assessment for Programme of Externally Funded Projects report; and

b) request regular risk progress reports on the Programme of Externally Funded Projects.

Carried

7 Karakia Whakamutunga – Closing Prayer

Cr Stratford closed with a karakia.

8 Meeting Close

The meeting closed at 3:05 pm.

The minutes of this meeting were confirmed at the Assurance, Risk and Finance Committee Meeting held on 2 December 2020.

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

CHAIRPERSON

Assurance, Risk and Finance Committee Meeting Agenda

2 December 2020

5 Reports

5.1 Recommendation to Remove ARF008 Civil Defence Risk from the Organisational Risk Dashboard

File Number: A3005979

Author: Tanya Reid, Business Improvement Specialist

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

Purpose of the Report

To approve the removal of ARF008 Civil Defence risk from the organisational risk dashboard.

Executive Summary

· ARF008 Civil Defence is an organisational risk in the Operational/Financial category (whole of business view of Far North District Council (FNDC) performance including service/services delivery, risk, finance, environmental).

· Of the 12 risks adopted in May 2019 the Civil Defence risk was the eighth highest priority risk with a medium impact score of 42.

· The total residual impact score has been rescored.

· The residual risk is assessed as a low impact score of 11.

· This risk is assessed as low impact and unlikely to occur.

Recommendation

That the Assurance, Risk and Finance Committee approves the removal of ARF008 Civil Defence risk from the organisational risk dashboard.

1) Background

November 2018 elected members workshopped and agreed their top organisational risk dashboard which was adopted on 30 May 2019. Of the 12 risks originally on their risk dashboard the Civil Defence risk was the eight highest priority risk with a medium impact score of 42. The Civil Defence Emergency Management Act sets out how civil defence should be managed around New Zealand.

Table 1: November 2018 ARF008 Civil Defence risk description and scoring

Risk scores help us to understand the severity of each risk. In November 2020, after implementing and testing the recommended treatments, ARF008 Civil Defence risk was rescored, using the FNDC risk matrix.

2) Discussion and Options

In Northland we have the Northland Region Civil Defence Emergency Management (CDEM) Group that manages civil defence activities.

The Northland Regional Council and the region’s three district councils, along with agencies such as the police and fire service, are all members of this group.

The CDEM Group works together to:

· reduce the potential effects of hazards;

· promote community and Council readiness (preparedness) to respond to emergencies; and

· help the community to recover after an event.

The Group also organise an annual Northland Civil Defence Forum.

The Northland Civil Defence Emergency Management (CDEM) Group has prepared the Northland Civil Defence Emergency Management Plan to demonstrate how CDEM will be delivered in the region from 2016 - 2025. Their four goals are:

Goal 1. Increasing community awareness, understanding, preparedness and participation in CDEM; through public education initiatives and community-led CDEM planning.

Goal 2. Reducing the risks from hazards in Northland; by improving the Group’s understanding of hazards and by developing and monitoring a Group-wide risk reduction programme which demonstrates how individual agency initiatives contribute to overall regional risk reduction.

Goal 3. Enhancing capability to manage civil defence emergencies; through increasing the number and capability of CDEM staff and by having effective plans, systems and procedures in place to respond to emergencies.

Goal 4. Enhancing capability to recover from civil defence emergencies; through a continued focus on Recovery Plans, Professional Development and Exercises.

The regional structure of the Northland Civil Defence includes:

· Group appointments: nine group controllers who are rostered to ensure 24/7 cover; group welfare and recovery managers; with

· Local controllers, welfare and recovery managers.

Since November 2018 a number of recommended treatments have been completed, including testing of the Northland Civil Defence arrangements. Table two provides a summary of these treatments and the outcomes achieved.

Table two: ARF008 Civil Defence risk treatments and the outcomes:

Recommended treatments / improvements for FNDC in Civil Defence capability are:	Outcome
• Ensure the new shared services arrangement is fully understood by all SLT, line managers and Emergency Operations Centre (EOC) staff.	Implemented and tested: · 2019/2020 districtwide drought · COVID-19 · July 2020 flood event
• Management to continue to encourage their staff to attend Civil Defence Coordinated Incident Mangement System (CIMS) training, and ensure we are able to staff a contingent of EOC roles for an event lasting more than 36 hours.	Currently there are 42 trained staff on the CIMS register with ongoing training offered through Northland Civil Defence.
• Ensure the FNDC EOC (Kaikohe) has access to required comms, generator and resources to function for 48-36 hours.	These resources are in the vault at Kaikohe Headquarters where a generator is also located. This back-up generator is tested on a regular schedule.
• Promote resilience plan work with communities for severe weather, tsunami and other emergencies	45 Community Response Plans have been developed in partnership with Northland communities to provide Localised emergency procedures and advanced preparation for the risks that they face. These are located: https://www.nrc.govt.nz/civildefence/community-response-plans/
• Ensure managers charged with decisions to support response and recovery are fully aware of their responsibilities and special responsibilities such as Finance, and Infrastructure and Asset Management (IAMS) to maintain momentum eg. Deploying field staff for condition assessments	Manager - Infrastructure Operations, is responsible for managing the Northland Region Civil Defence Emergency Management (CDEM) Group relationship. Additional support for the COVID-19 Pandemic, with terms of reference response, is provided by the General Manager District Services Additionally a Crisis Management Team was set up to provide leadership through the twin crises of the 2019/2020 drought and COVID-19 pandemic. The Crisis Response Team, modelled on the Civil Defence Coordinated Incident Management System, co-ordinated the delivery of the FNDC twin crises response. This crisis response showcased the Council’s agility, key resources were redeployed, and executive focus shifted. The crises also saw our workforce suddenly distributed while continuing to inform and deliver essential services to our users. A “lessons learned” exercise has been completed to capture the knowledge and understanding gained from this experience.
• Known at-risk infrastructure to be built into upgrade / resilience / funding plans	No projects currently identified.

Reason for the recommendation

Risk scores help us to understand the severity of each risk. ARF008 Civil Defence risk has been rescored, after treatment (and testing of these treatments), using the FNDC risk matrix. The rescoring is captured in table 3.

Table 3: Rescoring ARF008 Civil Defence risk using FNDC matrix:

Financial Risk

Customer Risk

Reputational Risk

Compliance/Legal Risk

Health and Safety Risk

High - Intolerable

Medium

Low- none

Unlikely

Probable

Will Happen

Unlikely

Probable

Will Happen

Unlikely

Probable

Will Happen

Unlikely

Probable

Will Happen

Unlikely

Probable

Will Happen

ARF008 Civil Defence is an organisational risk in the Operational/Financial category (whole of business view of FNDC performance including service/services delivery, risk, finance, environmental). Organisational risks may impact on council achieving its vision, mission and community outcomes. With a total residual impact score of 11 this risk is assessed as low impact and unlikely to occur, see table 4.

Table 4: ARF008 Civil Defence risk map as assessed November 2020

	Total Risk
High - Intolerable
Medium
Low- none	X
	Unlikely	Probable	Will Happen

This reduction in risk score has been achieved through proactive changes and implementation of controls. Current ARF008 Civil Defence controls in place are:

1. IAMS Group Risk Register: continuing risk management via the IAMS Group Risk Register.

2. Relationship Management: The Manager - Infrastructure Operations is responsible for managing the Northland Region Civil Defence Emergency Management (CDEM) Group relationship.

3. Training: FNDC continue to be encouraged to complete CIMS training which is offered as part of the Northland Civil Defence arrangements.

4. Community Response Plans: 45 Community Response Plans are in place.

5. FNDC business continuity programme refresh underway.

6. Staff with CIMS capability: FNDC has demonstrated the capability to stand up both a Crisis Management Team and Crisis Response Team, or and EOC as required for greater than 36 hours.

A recommendation to demote ARF008 Civil Defence risk from the organisational risk dashboard is supported by the low total risk score and the controls in place.

3) Financial Implications and Budgetary Provision

There is no financial implication or request for budgetary provision.

Attachments

Nil

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	The recommendation in this report does not meet the thresholds as per the Council’s significance and engagement policy.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Risk Management Policy.
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.	The recommendation in this report has neither District wide nor relevance to an individual Community Board.
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.	The recommendation in this report does not have any direct implications for Māori.
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.	There are no affected or interested parties to this recommendation.
State the financial implications and where budgetary provisions have been made to support this decision.	There is no financial implication or request for budgetary provision.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report.

Top organisational risk summary:

Key

Risk is decreasing.

No change.

Risk is increasing.

Risk #:

Risk title

Inherent risk score

Change to risk score

Residual risk score

Accountable
Risk Governance

Responsible
Risk Governance

Risk Progress Report
schedule

Risk Progress Report ARF agenda:

ARF001

Climate Change

CEO

GMSPP

6 Monthly

Sept 20

ARF002

BCA Status Risk

CEO

GMDS

Monthly SLT/ARF/Council

ARF003

Health & Safety Vulnerabilities

CEO

Manager P&C

2 Monthly

Sept 20

ARF004

Asset Management Risks

CEO

GMIAM

6 Monthly

Sept 20

ARF005

Affordability Risk

CEO

GMSPP

6 Monthly

Dec 20

ARF006

Project Priorities Deliveries Delays

CEO

GMIAM

2 Monthly

Oct 20

ARF007

Compliance NRC Abatements

CEO

GMIAM

6 Monthly

Dec 20

ARF008

Civil Defence

CEO

GMIAM

6 Monthly

Dec 20

ARF009

Customer Service Delivery

CEO

Manager P&C

2 Monthly

Oct 20

ARF010

Data Governance Risks

CEO

6 Monthly

Dec 20

ARF011

Organisational Cohesion Risks

CEO

6 Monthly

Sept 20

ARF012

Contract Management Risks

CEO

GMIAM

2 Monthly

Oct 20

ARF013

Drinking Water Resilience

ARF to agree level residual risk

CEO

GMIAM

3 Monthly

Dec 20

Assurance, Risk and Finance Committee Meeting Agenda

2 December 2020

Discussion and Next Steps

Emergent Risk:

Three further emergent organisational risk has been identified:

1. Extending the Government Procurement Rules to Government entities in the New Zealand public sector; and

2. Central/Local Government Three Waters Reform Programme

3. Whenua Māori rating

To provide a fuller view of the risk landscape a table of previously identified emergent risk is provided (see Table 1).

Description and high-level analysis of emergent risk:

1. The Ministry of Business, Innovation and Employment (MBIE) is undertaking a public consultation (closing 23 November) to understand the potential benefits, opportunities, and other impacts of extending the Government Procurement Rules to a wider set of Government entities in the New Zealand public sector.

MBIE rationale for this proposed change is that each year the New Zealand public sector spends around $42 billion on goods, services and works from third party suppliers to build infrastructure and provide public services. The size and nature of this spend means that there is an opportunity for Government procurement to achieve better social and economic outcomes for New Zealanders, as well as meeting the public’s expectation that taxpayer money is spent appropriately and competently by Government organisations. In the current policy settings, Government is limited in its ability to influence Government procurement policies in the State and Public Sector.

MBIE have identified several potential benefits and what they describe as “some likely costs and other impacts” to extending the Government Procurement Rules to include Local Government. This will include Far North Holdings Limited.

Local Government procurement specialists are making submissions.

While the full impact of these changes is currently unknown a review of the proposed change by FNDC has identified the following emergent risk:

The proposed Government changes, to Local Government procurements of $100,000 and greater, means that there is a chance procurements will cost more, take longer, and mandatory processes will require more staff time to manage and deliver. The changes have the potential to lead to negative economic impact within the district as Local suppliers may reduce participation due to increased cost and complexity of procurements. Projects will take longer to deliver due to extended procurement timelines and negatively impact affordability due to the increased costs to FNDC to administer the Rules which include new reporting and planning requirements.

2. Over the past three years, Central and Local Government have been considering solutions to challenges facing delivery of three waters services to communities.

This has seen the development of new legislation and the creation of Taumata Arowai, the new Water Services Regulator, to oversee and enforce a new drinking water regulatory framework, with an additional oversight role for wastewater and stormwater networks.

The Government has indicated that its starting intention is public multi-regional models for water service delivery to realise the benefits of scale for communities and reflect neighbouring catchments and communities of interest. There is a preference that entities will be in shared ownership of Local authorities. Design of the proposed new arrangements will be informed by discussion with the Local Government sector.

With the options and proposals to be developed the impact of any reform changes on both FNDC, and the communities we serve, are unknown.

3. The Government is proposing amendments to the Local Government (Rating) Act 2002 to promote the development of Māori freehold land and to modernise the rating legislation relating to Māori freehold land. The Local Government (Rating of Whenua Maori) Amendment Bill will soon go to its second reading. This legislation will make unusable/unproductive Māori Freehold Land unrateable. Council will then be in a position of having to spread operating costs amongst fewer ratepayers. This will exacerbate the affordability issue. It is highly likely that this legislation will be enacted at the beginning of July 2021.

Table 1: Table of identified emergent risk

Emergent Risks	Presented to Assurance, Risk and Finance Committee	Progress
1. The risk of externally funded shovel ready, economic stimulus employment opportunity projects due to the impact of the COVID-19 pandemic.	October 2020	Subject of a report to the Assurance, Risk and Finance Committee meeting of October 2020.
2. The financial and legal risks due to the effects of climate change. Timing of a report on this risk, to the Assurance, Risk and Finance Committee meeting, is to be determined.	October 2020
3. District Services have proposed to escalate one of their top group risks for consideration of inclusion on the top organisational dashboard.	October 2020	It is proposed that this be included in the Assurance, Risk and Finance Committee risk workshop agenda.
4. The risk of not fit for purpose business continuity arrangements.	October 2020	This will be subject to a report at the December 20 Assurance, Risk and Finance Committee meeting.

Organisational risk progress reports:

Four scheduled 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.

No additional reporting requirement for organisational risk has been identified.

A separate report is recommending the removal of ARF008 Civil Defence Risk from the organisational risk dashboard with ongoing risk oversight on the Infrastructure and Asset Management (IAMS) Group Risk Register.

A recommendation to remove a second organisational risk, ARF002 BCA Status Risk, will be made when the MBIE report has been received confirming the successful October 2020 BCA audit outcome.

Work has commenced to provide an understanding of effectiveness of controls within the organisational risk context.

Risk progress report – highlights and analysis:

1. 2020 12 ARF005 Delivery of Service Risk (affordability) Risk Progress Report: The inherent risk profile has been assessed as increasing. As rates and charges are Council’s major form of funding there are limited interventions available. To inform our understanding, Council has commissioned Business and Economic Research (BERL) to provide an analysis of rates affordability to determine the percentage of household income spent on rates at different rating levels, for eight usual household types.

2. 2020 12 ARF007 Compliance Northland Regional Council (NRC) Abatements Risk Progress Report: The inherent risk profile has been assessed as improved 44%, four of the nine, abatement notices cleared and a confirmed plan and timeline to clear the remaining five abatement notices.

3. 2020 12 ARF010 Data Governance Risk Progress Report: The inherent risk profile has been assessed as improved (risk is decreasing) as several improvement initiatives in key business areas have improved data governance.

4. 2020 12 ARF013 Drinking Water Resilience Risk Progress Report: The inherent risk profile has been assessed as not changed. IAMS are actively working on treatments including a programme of drought resilience work for 20/21 financial year.

Group Risk

To enable and empower the organisation the Transformation and Assurance Team will refresh their collaborative work programme to complete the establishment of Group Risk Registers and risk management process. The District Services Group Risk Register is established with regular risk discussions taking place.

Our goal is for Group Risk Registers to capture and maintain information on the identified risks and will be used to inform elected members. At the Top Organisational 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.		One risk workshop with the Communications team has been completed.
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. Follow up sessions have been 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.	Follow up sessions have been completed.
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 temporarily put on hold due to current workload issues.

Financial Implications and Budgetary Provision

No additional budgetary provision is requested.

Attachments

1. 2020 12 ARF005 Delivery of Service Risk (Affordability) Progress Report - A3002951 ⇩

2. Far North Rates Affordability Report - A3002966 ⇩

3. 2020 12 ARF007 Compliance NRC Abatements Risk Progress Report - A3002950 ⇩

4. 2020 12 ARF010 Data Governance Risk Progress Report - A3002949 ⇩

5. 2020 12 ARF013 Drinking Water Resilience Risk Progress Report - A3002946 ⇩

Assurance, Risk and Finance Committee Meeting Agenda

2 December 2020

6.3 Internal Audit and Assurance - December 2020

File Number: A3001786

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. Since the last report on 21 October 2020 no recommendations have been freshly completed. Consideration of more meaningful reporting, tracking and measuring of all recommendations has begun. Design work for this reporting process is being tested. Additional data is being collected for input of these new measures. More dynamic reporting will ensure active solutions capture, uphold and reinforce the original intent of each audit recommendation. An additional output of these measures will be community enhancing solutions that work and better flow of audit recommendations through to completion.

Recommendation

That the Assurance, Risk and Finance Committee receive the report Internal Audit and Assurance - December 2020.

Background

There are active plans in place to complete most outstanding recommendations. For those that have stalled the new reporting system will ensure they are completed in a timely manner.

Audit recommendations as at 12 November 2020:

ID	Audit Name	Title	Assigned To	Priority	Status	Description
23	Internal Audit – Information Security	External user access and authentication	Lisa Huria, Celine Carlisle	Must do	Almost complete	Network logon account internal audit completed. Progress: IT team actioning audit findings.
28	Internal Audit – Information Security	Project Security Risks	Michelle Sharp	Should do	Underway	Information security controls need to be factored into Council's project management framework to ensure associated risks are managed. Progress: The Project Management Office (PMO) continue to develop a checklist upholding information security for project delivery, completion December 2020. Information Security considerations to be included in Project Management Framework training to all key staff and inductions.
58	KPMG - Procurement	Spend monitoring	Petrina Keane	Should do	Underway	Implement quarterly procurement spend analysis.
59	KPMG - Procurement	Spend monitoring	Petrina Keane	Should do	Underway	As part of the spend analysis process, integrate category spend management on a periodic basis.
74	2017 Audit NZ Interim Annual Management Report	Legislative Compliance System	Celine Carlisle	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. Stakeholder interviews 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	Warren Ure	Must do	Underway	Focus to set 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: Contract Management Policy and Framework progressing.
105	2018 Audit NZ Final Annual Management Report	Resource Management Deposits (Bonds)	Ian Wilson	Must do	On hold	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. The Compliance Team have undertaken analysis and site inspections to determine which bonds can be refunded.
111	Three Waters Interim Alliance Agreement Review	Education of Alliance contracts and principles	Glenn Rainham	Should do	Underway	Greater education for staff regarding expectations of an Alliance contract and understanding of the Alliance principles. Toolbox sessions are held regularly with Far North Waters.
115	Three Waters Interim Alliance Agreement Review	Agree on Key Performance Indicators (KPI)	Glenn Rainham	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.
123	2019 Audit NZ Final Annual Management Report	Deferral of capital expenditure	Andy Finch	Must do	Underway	Audit NZ recommend the Council consider 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. 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 it is achievable from inception and limited to what can reasonably be delivered.
138	LGOIMA Compliance and Practice Report	Amend operational guidance on staff intranet to comply with LGOIMA	Carla Ditchfirled-Hunia	Must do	Almost complete	SLT approved the policy. Legal Services working with Communications and IT teams to place it on the Intranet.
139	LGOIMA Compliance and Practice Report	Develop a Proactive Release Policy	Carla Ditchfield-Hunia	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. The Proactive Release Policy is complete and adopted. Progress: The Ombudsman has been updated on progress as it continues.

Complete: 0

Almost complete: 3

Underway: 7

On hold: 2

Total: 12

Financial Implications and Budgetary Provision

This report is for information only.

Attachments

Nil

Assurance, Risk and Finance Committee Meeting Agenda

2 December 2020

6.5 Revenue Recovery Report - 31 October 2020.

File Number: A3008875

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 reporting to the Far North District Council Assurance, Risk, and Finance Committee.

Executive Summary

This is the third 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.

Recommendation

That the Assurance, Risk and Finance Committee receive the report “Revenue Recovery Report - 31 October 2020.”

1) Background

This document has been prepared to outline current and arrears balances for rates, water and Sundry debt as at 31 October 2020 and the actions taken by the debt management team for the collection of the General Title rates and water and sundry debt.

This information is part of the standing items reported to the Committee on a regular basis.

Discussion and Next Steps

The data provided is for General Title and Maori Freehold Land rates and water accounts with sundry debtors shown in a separate table.

General Title rates and water debt

Key actions since the last report:

· Between the 1^st of October and the 20^th of October, debt management proactively called owners of properties with mortgages who are in arrears to offer payment plans to avoid mortgage demand.

· On 21 October, 327 mortgage demand letters were sent to the owners of properties with arrears debt of more than $3,000 and several calls were received by the team from owners after their banks contacted them.

· Instruction was given to external law firm to proceed with legal action for those properties on hold since early this year. So far, default judgement has been received for a further 4 properties with a debt of $80,833.35 for which charging orders will be registered against the properties. A further three are to be applied for and one is with the court for judgment.

· Council Legal team have started preparing files for legal proceedings for 10 properties passed to them.

Next actions:

· Prepare policy for approval by Council of next actions post default judgment from the courts.

· Proactive calling between 23 November and 27 November, to rate payers who missed the 2^nd instalment due date to offer assistance or payment plans.

· Proactive calling of owners of properties with mortgages with arrears debt of less than $3,000 to offer payment plans to avoid mortgage demand in February.

· Commence final demand letters to owners without a mortgage with an arrears debt, focussing on those properties where statute barred will apply in the near future.

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.

· 70% of these accounts have arrears of more than two rating years.

o 70% of these accounts have received final demand letters from council but a review will take place and a final letter will be sent prior to commencing filing for debt recovery through the courts due to the time lag since the last letter.

o Debt management will send the first final demand letters to the remaining 30%.

· 30% is for accounts with up to two years rates arrears.

o Debt management to commence calling.

o If no contact is made, first demand letters will be sent.

Sundry debtors debt

The total sundry debtors aged debt balance has increased since the last report, mainly driven by $170,000 resource consent invoices becoming overdue. The 90+ days debt for resource consents has halved since the last report. Of the total debt, 47% is attributed to invoices raised for Resource Consents and 26% for Building Consents.

The following actions agreed to reduce the resource consent debt are now in place or completed:

· The legal opinion from RMA specialist lawyer for council regarding requesting payment prior to issuing consent has been received. Outcome is that council may not withhold the resource consent decision from the applicant for incomplete payment.

· A workshop was held on the 14th October with Debt Management, Resource Consent Team and District Services Administration to agree actions, inter-departmental communications and processes.

· Fee review tracker is now in place in objective, where all team members register fee reviews that have been requested by customers and updated by the resource consent team as they process the review. All communications to customers as to the outcome of the review will be saved to the same folder.

Further actions to be implemented for resource consent and building consent debt:

· A workshop with Building Consents team to review aged debt, identify improvements in processes, agree actions to reduce future debt.

· Implement interim invoicing at key stages of a resource application and stop the process if invoices are not paid by the due date. Research into the required elements has been completed and the process will be agreed in the next weeks.

· Add additional wording to the resource consent application confirmation letter to customers, to explain the payment process, requirements and responsibilities of the applicant.

· Add more detail to resource consent invoices to give a better overview of charges and reduce queries.

· Fee review of initial application fee for resource consent and implementation of an increase at the start of the next rating year in line with current average costs.

· Debt management to focus on the $170,000 debt which has recently become overdue to avoid these ageing further.

Additional debt collection actions by debt management:

· Due to the low value debt on many accounts, legal proceedings would not be a cost-effective option, so we have registered with Centrix, a NZ owned credit bureau, allowing debt management to register default notice against the debtor affecting their credit score.

· It requires Council to send three letters prior to registering the debt. Debt management have created three demand letters and have commenced sending them in the post.

· A fourth letter will be sent once the default notice has been registered to notify the debtor.

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. 31.10.20 ARF Revenue Recovery Report attachment - A3008888 ⇩

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 (Rating) Act 2002
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.	N/A
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.	Within the body of the report
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report

Highlights:

New Works

· The East Coast WWTP Resource Consent is under budget - the consent has been appealed to the environment court and Council is working towards mediation which has been significantly delayed due to COVID-19 and conflicting schedules between stakeholders.

· The Paihia Treatment Plant Power Supply project is under budget, it is currently in design phase for a recirculation system which will enhance and prolong the lifespan of the new plant, commitments have been raised.

· District wide sludge management is under budget. Sludge work has been delayed due to lack of resourcing and COVID-19. Work is ongoing and commitments have been raised.

· The Houhora Wastewater Treatment Plant, the Council approved project is under budget to replace sand and treatment tank. The sand has now been replaced but there has been a delay with the tank which will be invoiced in December 2020.

· Kaitaia New Source (Sweetwater) is behind budget but funds are fully committed, and work is progressing.

· Planned Provincial Growth Funds (PGF) road sealing projects commenced at Ruapekapeka. Ngapipito and Peria road.

· Panguru Rd raising project is ahead of schedule and on track to complete before summer holiday, offset by the Infill Lighting project which is behind programme due to lengthy negotiations and approval of the tender phase, however the contract is now essentially approved and ready to start construction.

Renewals

· Kerikeri Wastewater Treatment Plant is under budget. The commissioning phase of the plant will run until the end of November at which time connections will commence and be completed by May 2021 with close out expected in June 2021.

· Emergency Works awarded tenders have come under budget.

· Sealed road resurfacing and rehabilitation are behind schedule as contractor resources were reprioritised to undertake repairs for the July 2020 storm event.

· Ferry renewal scope and works are reduced due to long lead time to make to get the jet pump into the country.

· Safety improvement and resilience projects across district has not commenced as planned.

· Unsealed Road Metalling is ahead of schedule due to the suitable weather conditions before the summer season.

· Reactive unbudgeted building structural renewal works at the Rawene Housing for the Elderly to fix flooring and wall structures in bathroom due to shower leaking within wall cavity.

Unbudgeted Expenditure

These are additional works not included in the original budget for the current year.

Unbudgeted work greater than $100,000 must be approved by Council, anything less than that can be approved by a General Manager with appropriate financial delegation.

Unbudgeted Expenditure
*Expenditure over $100K approved by Council (in grey)

Unbudgeted Capital Works		Amount
Monument Hill Drought Impact	CAPEX New Works Contract Services	1,184,000
Lake Omapere (PGF)	External Services	500,000
Kerikeri WTP New Clarifiers	CAPEX New Works Contract Services	500,000
Windsor Landing Carpark and Access Road	CAPEX New Works Contract Services	261,195
Awanui River Intake Permanent Weir	CAPEX New Works Contract Services	150,000
Kotui Library Licence/Subscription System	Software Licence Fees	137,863
Houhora WWTP	CAPEX New Works Contract Services	112,000
Structural works Kawakawa WTP	CAPEX New Works Contract Services	109,051
Paihia WTP Self-Cleaning Screen	CAPEX New Works Contract Services	100,000
District Wide Leak Detection Equipment	CAPEX New Works Contract Services	100,000
Hundertwasser toilet upgrade	CAPEX Renewal Works Contract Services	82,000
Kawakawa Water Take Consent	CAPEX New Works Contract Services	70,000
East Coast PS Bush Point Rd	CAPEX New Works Contract Services	49,942
Kawakawa WTP Roof Replacement	CAPEX New Works Contract Services	47,366
East Coast PS Leslie Rd	CAPEX New Works Contract Services	38,000
Kerikeri Wastewater Infrastructre	CAPEX New Works Contract Services	31,836
60 Peninsula Parade Hihi Sewer Connection	CAPEX New Works Contract Services	22,387
Opononi/Omapere WTP pH Treatment	CAPEX New Works Contract Services	15,000
Kerikeri Wastewater Infrastructre	Equipment Purchases (uncapitalisable)	13,827
Te Hononga CCTV - Hundertwasser	CAPEX New Works Contract Services	12,000
Rawene Housing for the Elderly	CAPEX Renewal Works Contract Services	11,836
Lake Omapere (PGF)	Grants Operational	-500,000
		3,048,303

Budget Movements

These are budgets timed in future years, brought forward into the current year (positive values) OR budgets timed in the current year to be moved out to future years (negative values).

The figures that follow exclude the $5M Roading budget adjustment moved out to future years to reflect the lower of FNDC or NZTA budget.

Budget Movements

General Ledger	Comment	Amount
Infrastructure & Asset Management Operations	TIF funding applications wrongly classified as Capex in EB	1,100,000
Pou Herenga Tai Cycle Trail NZ Heritage	Cycletrail MBIE grant July 2020 storm event	241,000
Community Board Operations	Opex budget savings 2020-2021 Corporate Services	-349
Internal Control & Risk Management	Opex budget savings 2020-2021 Corporate Services	-2,000
Community Board Operations	Opex budget savings 2020-2021 Corporate Services	-5,000
Community Board Operations	Opex budget savings 2020-2021 Corporate Services	-5,000
Council Advisory Services	Opex budget savings 2020-2021 Corporate Services	-5,220
Internal Control & Risk Management	Opex budget savings 2020-2021 Corporate Services	-12,000
Pou Herenga Tai Cycle Trail NZ Heritage	Cycletrail MBIE grant July 2020 storm event	-241,000
		1,070,431

Project Ledger	Comment	Amount
Kaikohe Footpath Signal Stn Rd, Omapere - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	300,700
Hokianga Harbour Coastal Repairs	Hokianga Harbour Coastal Repairs Correction of budget & forecast	200,000
Length of Blacks Road - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	110,000
RFID Installation	RFID Budget Brought Forward	90,000
Donald Ln to WINZ on N Park Drive - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	80,000
IT Online Services Stage 3	Pathway Online Services funds from future year 2021-22 required	70,330
Foreshore Road, Taipa Footpath - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	70,000
Ward Wide Town Beautification / Improvements Western	Ward Wide Town Western Beautification / Improvements	52,275
Point Road, Taipa - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	40,000
Mamaru Road Footpath - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	20,000
Rawene Housing for the Elderly	Rawene HFTE Unit3 building structural & plumbing fixtures renewal	15,753
Russell Chapel Street Carpark	Russell Chapel Street Carpark Remove budget now project	-2,245
Parks & Reserves Western	P&R Western Assets moving out to future years	-3,251
Water Saving Devices for Russell public toilet facilities	Budget not required this FY Move to 2024-25	-5,000
Mamaru Road Footpath - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	-20,000
Parks & Reserves Western	P&R Western Assets moving out to future years	-32,511
Point Road, Taipa - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	-40,000
Water Saving Devices for Russell public toilet facilitie	Budget not required this FY Move to 2024-25	-50,000
Foreshore Road, Taipa Footpath - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	-70,000
Donald Ln to WINZ on N Park Drive - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	-80,000
Length of Blacks Road - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	-110,000
Russell Chapel Street Carpark	Russell Chapel Street Carpark	-122,451
Maritime - Improvement to Structures	Hokianga Harbour Coastal Repairs Correction of budget & forecast	-200,000
Kaikohe Footpath Signal Stn Rd, Omapere - MBIE	New footpath redeployment package MBIE shovel ready funds 2020-21	-300,700
TIF Funding Application	TIF funding applications wrongly classified	-1,100,000
		-1,087,100

		-16,669

Treasury Report

Treasury Compliance

Assurance, Risk and Finance Committee Meeting Agenda

2 December 2020

6.8 ALGIM IT Satisfaction Survey Results

File Number: A2988867

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 recently completed Association of Local Government Information Managers (ALGIM) IT Satisfaction and Benchmarking survey that was undertaken by Council staff.

Executive Summary

· One of the key areas for Council is to ensure that services and activities provided meet the outcomes and expectations of the customers using these services.

· The survey has been completed by 20 Council (including Far North District Council (FNDC)) out of the 78-total number of Councils, approximately 26% of the New Zealand Local Government sector.

· Over the past 12 months there has been a significant and substantial amount of change and improvements completed. The purpose of participating in this particular survey was it provided Council with a great deal of information around the effects of the past 12 months changes, understand what future improvement or services work plans need to be covered, and finally provide Council with information as to where FNDC ranks against the sector.

Recommendation

That the Assurance, Risk and Finance Committee receive the report ALGIM IT Satisfaction Survey Results.

Background

As per the 9^th September Assurance, Risk and Finance report – Digital Information Services update where the overview of the survey was discussed, the survey has the following key benefits and value propositions:

· 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.

The IT Satisfaction survey was undertaken between the 16^th September and 2^nd October with a completion percentage of 49.52% (205 responses).

Please note that the total invited are individuals that maybe full time or part-time and not total positions (FTEs) that are reported to Council.

The completed sample size of 205 response can be broken down by the following groups within Council.

The survey results are broken down into the following dimensions

· Satisfaction with IT.

· Value from IT.

· Relationship with IT.

· IT Capacity and Constraints.

The survey results are aligned to thirteen core services that our people answered questions on. These services are aligned to the benchmarking methodology to ensure alignment of rankings and scale.

Discussion and Next Steps

The results of this survey will be used to further our business operations and improvement planning so that we are able to enable and support our people, and teams get the best out of the services provided by the Digital Information Services Team.

Below is a summary of the information with a presentation that will give the members of the Assurance, Risk and Finance Committee greater insights into the results and what they mean to Council.

IT Satisfaction survey – summary results

The results below are a consolidated summary of the two main metrics – Satisfaction and Value. These are compared against the other Councils that have participated in this survey as well as the International Government sector that use this survey via the InfoTech platform.

Far North District Council

• 78% overall Satisfaction

§ 6% higher than New Zealand Local Govt mean of 72%

§ 4% higher than Int’l Govt Sector mean of 74%

• 76% overall Value

§ 5% higher than New Zealand Local Govt mean of 71%

§ 3% higher than International Govt Sector mean of 73%

Satisfaction by Group

The overall summary scores based on Council’s internal groups below shows the satisfaction level, the top priorities from the thirteen core services, and the measure of constraint the group has with the services provided.

Satisfaction by Tier

The level of satisfaction by the tier within the organisation shows another view and priorities. These are particularly useful to ensure that we are aware and can accommodate the different and unique needs from across the vertical levels within Council.

Organisational Constraint

The results around constraints from groups and tiers is summarised below with an average constraint level that will be a key metric for each time we undertake this survey.

This constraint measure is defined as:

“To what extent is your group constrained and prevented from reaching your strategic goals by IT capacity?”

Another way to view this percentage is that the satisfaction measures “what we deliver” and “the constraint” is a measure of how fast this work can be completed in order to achieve the goals of the individual business units or organisational outcomes.

Overall, the average of 45% shows an acceptable level of constraint, but with the level of digital changes over the past 12 months within Council, this is something that Council officers will take into consideration with our future short-term planning and longer-term strategic view.

Shadow IT

The measurement of how much additional services are being used and procured across Council.

“To what extent do you look externally and purchase IT services and applications without corporate IT involvement, due to a lack of internal IT Capacity?”

The results need to be taken within the context that Council currently procures several services and applications that are cloud or subscription based and those that are not directly provided by the Digital Information Services department, which is why this score may appear higher than expected.

Relationship between Satisfaction and Maturity

The framework that is used by the survey shows where in relation to the other participants we have been benchmarked and to what level of maturity Council is against the thirteen core services.

Relationship Satisfaction

The relationship satisfaction score was assessed across the following four relationship dimensions:

As you can see the above scores except for ‘Trains Effectively’ are at a satisfactory level. The Strategic Leadership Team has been briefed on these results and an updated strategy around what the next 12-month improvement plan will look like will be developed in early 2021.

It is important to note that when Council is compared to the other 19 Councils in New Zealand that shows this scored at 69% for New Zealand Government and International Government sector so is slightly above Council score of 62% but does suggest a sector wide area where improvement is needed.

key recommendations

· Satisfaction and Value scores compare very favourably with New Zealand Local Government averages.

· Initiatives should be developed to sustain and drive up the satisfaction score from current 78% to a short-term target (of 83%), while also driving up the value score.

· Digital Information Services should target initiatives to move certain services from Firefighter to Trusted Operator. 3 of 13 core services are in the Firefighter tier, with satisfaction scores below 70%.

· Digital Information Services should engage business units to sustain and improve relationships and better understand departmental needs and priorities.

· Identify which departments are believed to be most important in shaping opinion and engage them early in agreeing IT priorities and actions.

· Set target maturity/satisfaction goals for next 12 months then build a roadmap of initiatives to lift the maturity/satisfaction levels to achieve them.

Financial Implications and Budgetary Provision

There are no financial implications or budgetary provisions required as a result of this report.

Attachments

1. ALGIM NZ Local Government IT Satisfaction Benchmark Report 2020 Detail - A2997607 ⇩

Council Financial Performance – Operational Expenditure

Council Financial Performance – Capital Expenditure