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

10 February 2021

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

File Number: A3051523

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 2 December 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. 2020-12-02 Assurance, Risk and Finance Committee Minutes - A3027184 ⇩

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

10 February 2021

MINUTES OF Far North District Council
Assurance, Risk and Finance Committee Meeting
HELD AT THE Council Chamber, Memorial Avenue, Kaikohe
ON Wednesday, 2 December 2020 AT 1.02 pm

PRESENT: Cr John Vujcich, Member Bruce Robertson, Deputy Mayor Ann Court, Cr Rachel Smith (via TEAMS), Cr Kelly Stratford, Kaikohe-Hokianga Community Board Chairperson Mike Edmonds

IN ATTENDANCE: Tony Kryzewski – Sam for Compliance LTD

STAFF PRESENT: Shaun Clarke (Chief Executive Officer), William J Taylor, MBE (General Manager Corporate Services), Andy Finch (General Manager Infrastructure and Asset Management), Dean Myburgh (General Manager District Services), Sheryl Gavin (General Manager Strategic Planning and Policy - Acting)

1 Apologies and Declarations of Interest

1.1 APOLOGIES

Resolution 2020/1

Moved: Cr John Vujcich

Seconded: Cr Kelly Stratford

Apologies for absence from His Worship the Mayor and Cr Moko Tepania, were accepted.

Carried

2 Deputation

Nil

3 Confirmation of Previous Minutes

3.1 Confirmation of Previous Minutes

Agenda item 4.1 document number A3005557, pages 12 - 16 refers.

Resolution 2020/2

Moved: Cr John Vujcich

Seconded: Member Bruce Robertson

That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 21 October 2020 as a true and correct record.

Carried

4 information Reports

4.1 Far North Holdings Limited First Quarter Financial Report September 2020

Agenda item 6.6 document number A3006830, pages 140 - 147 refers.

Resolution 2020/3

Moved: Cr Kelly Stratford

Seconded: Deputy Mayor Ann Court

That the Assurance, Risk and Finance Committee receive the report Far North Holdings Limited First Quarter Financial Report September 2020.

Carried

5 Reports

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

Agenda item 5.1 document number A3005979, pages 17 - 21 refers.

Resolution 2020/4

Moved: Cr John Vujcich

Seconded: Member Bruce Robertson

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

Carried

6 Information Reports continued

6.1 December Risk Management Report

Agenda item 6.1 document number A3002968, pages 22 - 90 refers.

Resolution 2020/5

Moved: Cr Kelly Stratford

Seconded: Member Bruce Robertson

That the Assurance, Risk and Finance Committee receive the report December Risk Management Report.

Carried

6.2 Lessons Learned From Our Twin Crises: 2019/2020 Far North Drought and COVID-19 Pandemic

Agenda item 6.2 document number A3002989, pages 91 - 104 refers.

Resolution 2020/6

Moved: Cr John Vujcich

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee receive the report Lessons Learned From Our Twin Crises: 2019/2020 Far North Drought and COVID-19 Pandemic.

Carried

6.3 Internal Audit and Assurance - December 2020

Agenda item 6.3 document number A3001786, pages 105 - 109 refers.

Resolution 2020/7

Moved: Member Bruce Robertson

Seconded: Cr Kelly Stratford

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

Carried

6.4 Level of Service KPI Quarter 1 Performance Report

Agenda item 6.4 document number A2998583, pages 110 - 132 refers.

Resolution 2020/8

Moved: Member Bruce Robertson

Seconded: Cr John Vujcich

That the Assurance, Risk and Finance Committee receive the report Level of Service KPI Quarter 1 Performance Report .

Carried

6.5 Revenue Recovery Report - 31 October 2020.

Agenda item 6.5 document number A3008875, pages 133 - 139 refers.

Resolution 2020/9

Moved: Member Bruce Robertson

Seconded: Cr John Vujcich

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

Carried

6.6 Council Financial Report for the Period Ending 31 October 2020

Agenda item 6.7 document number A3013139, pages 148 - 167 refers.

Resolution 2020/10

Moved: Cr John Vujcich

Seconded: Cr Rachel Smith

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

Carried

6.7 ALGIM IT Satisfaction Survey Results

Agenda item 6.8 document number A2988867, pages 168 - 175 refers.

Resolution 2020/11

Moved: Member Bruce Robertson

Seconded: Cr John Vujcich

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

Carried

7.0 RESOLUTION TO EXCLUDE THE PUBLIC

Resolution 2020/12

Moved: Cr John Vujcich

Seconded: Cr Kelly Stratford

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
7.1 - Confirmation of Previous Minutes	s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
7.2 - ICT Security Audit Results	s7(2)(b)(i) - the withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
7.3 – Renewal of Revolving Cash Facility	s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

Carried

7.7 CONFIRMATION OF INFORMATION AND DECISIONS IN OPEN MEETING

Resolution 2020/15

Moved: Cr John Vujcich

Seconded: Member Bruce Robertson

That Assurance, Risk and Finance Committee confirm that the information and decisions contained in the part of the meeting held with the public excluded is not to be restated in public meeting.

Carried

Abstained: Cr Rachel Smith

8 Karakia Whakamutunga – Closing Prayer

Cr Moko Tepania closed the meeting with a karakia.

9 Meeting Close

The meeting closed at 3.25 pm.

The minutes of this meeting were confirmed at the Assurance, Risk and Finance Committee Meeting held on 10 February 2021.

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

CHAIRPERSON

Assurance, Risk and Finance Committee Meeting Agenda

10 February 2021

5 Reports

5.1 Update of Policy - Appointment of Directors to Council Organisations

File Number: A3058464

Author: Janice Smith, Chief Financial Officer

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

Purpose of the Report

Policy 2117 outlines the process for the appointment or re-appointment of Directors to Council Organisations. The policy was created in June 2003 and has not been updated.

Executive Summary

· The current policy was created in June 2003.

· It has not been updated to reflect changes to Council Organisations covered by the policy or changes in names of Committees.

· The proposed amendments will update the policy to the current requirements for Council Organisations.

Recommendation

That the Assurance, Risk and Finance Committee recommend to Council that the updated Policy 2117 – Appointment and Remuneration of Directors for Council Organisations be approved.

1) Background

Policy 2117 – Appointment and Remuneration of Directors for Council Organisations was originally developed in 2003 when Council was only responsible for Far North Holdings as a Council Controlled Trading Organisation. It has not been updated to reflect changes in either Council Organisations or Committee structures.

2) Discussion and Options

Policy 2117 is now required to cover a broader range of Council Organisations and this may change in the future. The Policy also references an approving Committee that no longer exists.

It is important that the Policy be flexible so that an amendment is not needed if Council decides to amend the Committee structure in the future. The current delegations to Committees identify what each Committee is responsible for and that is the appropriate mechanism for identifying where the responsibility for the appointment of directors lies.

Reason for the recommendation

To update the policy to enable future appointment of Directors to Council Organisations.

3) Financial Implications and Budgetary Provision

None

Attachments

1. Appointment and Remuneration of Directors for Council Organisations Policy-Updated Feb 2021 - A3058349 ⇩

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	Low
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Policy 2117 – Appointment and Remuneration of Directors for Council Organisations
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.	None
Chief Financial Officer review.	The Chief Financial Officer prepared this report

Assurance, Risk and Finance Committee Meeting Agenda

10 February 2021

The Far North District Council (FNDC) either owns or has an interest in number of council organisations (COs). These include the following:

1. Far North Holdings Ltd: Council controlled trading organisation (CCTO) where Council owns 100% of the shares, appoints 100% of the directors, and manages a portfolio of Commercial and Community property investments, including the operation and maintenance of maritime facilities.

2. Other Council Controlled organisations: The Pou Herenga Tai Twin Coast Cycle Trail Charitable Trust where Council has a controlling interest in the makeup of the board.

3. Various bodies appointed under legislation: Council organisations (CO) where Council may appoint management committees to administer land and facilities owned by Council and subject to the Reserves Act 1977 and similar legislation.

These organisations deliver services, provide advice, or in some way support the achievement of the objectives in the Council’s long term council plan (LTP).

As per the Local Government Act 2002, the council may appoint a person to a directorship of council organisations only if the council considers the person has the skills, knowledge and experience to:

• Guide the organisation given the nature and scope of its activities

• Contribute to the achievement of the objectives of the organisation.

Objective

To set out a transparent process for Council to consider and appoint directors of COs.

Policies

1. Skills

The council considers that any person that it appoints to be a director of a CO should, as a minimum, have the following skills:

• Intellectual ability

• An understanding of governance issues

• Business experience/experience relevant to the organisation

• Sound judgment

• A high standard of personal integrity

• The ability to work as a member of a team.

• Commitment to the principles of good corporate citizenship

• Understanding of the wider interests of the publicly accountable shareholder.

• A demonstrable commitment to the Far North District.

2. Appointment Process

When vacancies arise in any CO the council will follow the following process for appointing directors.

A report will be prepared that will, in most cases, include information relating to current Directors therefore it will be submitted to the Publicly Excluded agenda of Council to seek a decision on whether to advertise a particular vacancy or make an appointment without advertisement. When making this decision the council will consider:

• The costs of any advertisement and process

• The availability of qualified candidates

• The urgency of the appointment (e.g. a CO that is without a quorum cannot hold board meetings).

Once the decision has been made on the appointment process, it must be notified in the public portion of the meeting

a. Appointment by Advertisement

Where the council decides to advertise a vacancy, it will form an ad hoc committee chaired by the Mayor, or a Councillor nominated by the Mayor.

An advertisement seeking expressions of interest will be placed in the appropriate media sites and be open for a minimum of 3 weeks.

All applications will be reviewed and a shortlist of candidates will be prepared by the Mayor, the chairperson of the committee charged with responsibility for monitoring the CO, and the Chief Executive.

The relevant committee will interview the shortlisted candidates, check all references, and report to council on each of the candidates, making a recommendation on its preferred candidate if it wishes to do so.

b. Appointment without Advertisement

Where the council decides not to advertise a particular vacancy it will refer the matter to council or the relevant committee that is responsible for monitoring the CO. The council committee will consider the appointment at its next scheduled meeting and make a recommendation to Council in relation to the appointment.

3. Final Appointment

The council will make a decision in committee (thus protecting the privacy of natural persons). Public announcement of the appointment will be made as soon as practicable after the council has made its decision.

4. Reappointment

Where a director’s term of appointment has expired and he or she is offering him or herself for reappointment, the Mayor, or a Councillor nominated by the Mayor, will consult with the Chairperson of the CO with regard to:

• Whether the skills of the incumbent add value to the work of the organisation

• Whether there are other skills the organisation needs

• Succession issues

The Committee will consider the information obtained and, taking into account the director’s length of tenure, form a view on the appropriateness of reappointment or making a replacement appointment.

Council may reappoint an existing director for a further term without activating the formal appointment process. Where it is not intended to reappoint the incumbent, the appointment process outlined above will apply.

5. Rotation of Directors and Length of Tenure

The Directorship shall be reviewed by the board of the relevant organisation each year at the time of the Annual Report of the Company.

Directors will normally be appointed for periods of three years. Subject to a review of the director’s performance after the first three-year period, the normal tenure for a director will be six years.

Following six years of services, a director may be appointed for a further three years if the benefit of such an extension is considered to outweigh the potential advantages of seeking and appointing a new candidate.

It is desirable that a director not be reappointed to the same organisation after nine years of service.

6. Conflicts of Interest

FNDC expects that directors of Council-controlled organisations will avoid situations where their actions could give rise to a conflict of interest. To minimise these situations, the council requires directors to follow the provisions of the New Zealand Institute of Directors’ Code of Ethics. All directors are appointed ‘at the pleasure of the council’ and may be dismissed for breaches of this code.

7. Remuneration

It is Council policy not to remunerate directors of council controlled organisations. Remuneration of directors by the Council-controlled organisation is a matter for the organisation concerned.

Assurance, Risk and Finance Committee Meeting Agenda

10 February 2021

5.2 Recommendation to remove ARF002 Building Consents – BCA status risk from the organisational risk dashboard

File Number: A3047645

Author: Tanya Reid, Business Improvement Specialist

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

Purpose of the Report

To seek to approve the removal of ARF002 Building Consents – BCA status risk from the organisational risk dashboard.

Executive Summary

· ARF002 Building Consents – BCA status risk is an organisational risk in the Operational/Financial category (whole of business view of the Council) performance including service/services delivery, risk, finance, environmental.

· Of the 12 risks adopted in May 2019 the ARF002 Building Consents – BCA status risk was the second highest priority risk with a medium impact score of 51.

· A comprehensive treatment plan (supported by both the Transformation & Assurance and Programme Delivery Teams) has been deployed over the last 24 months that has yielded remarkable results.

· The total residual impact score has been rescored, with a residual score of 11 the risk is now assessed as low impact.

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

Recommendation

That the Assurance, Risk and Finance Committee approves the removal of ARF002 Building Consents – BCA status risk from the organisational risk dashboard.

1) Background

In November 2018 elected members workshopped and agreed their top organisational risk dashboard.

The top organisational risk dashboard was adopted 30^th May 2019.

Of the 12 risks originally on their risk dashboard the Building Consents – BCA risk was the second highest priority risk with a medium impact score of 51.

The Building (Accreditation of Building Consent Authorities) Regulations 2006 sets out how the requirements which a BCA must meet in New Zealand.

Table 1: November 2018 ARF002 Building Consents – BCA status risk description and scoring

ID#

Score

Risk Description

Impacts

Treatments

Residual Risk Score

Risk scores help us to understand the severity of each risk. In December 2020, after implementing and testing the treatment plan (including an external accreditation assessment of FNDC’s BCA (against the Building (Accreditation of Building Consent Authorities) Regulations 2006), ARF002 Building Consents – BCA status risk was rescored using the FNDC risk matrix.

2) Discussion and Options

The Far North District Council BCA had been assessed frequently over the last two years due to an identified lack of compliance with the Building (Accreditation of Building Consent Authorities) Regulations 2006.

An accreditation assessment of the Far North District Council Building Consent Authority (BCA) was completed, by International Accreditation New Zealand (IANZ) during October 2020 to determine our compliance with the requirements of the Building (Accreditation of Building Consent Authorities) Regulations 2006 (the Regulations). This assessment identified that the BCA had significantly improved their processes and systems since the last assessment.

Although some general non-compliances were identified during the assessment, the BCA is now seen to be in control of its processes, with good recording, reporting and good communication. The assessors also commented that “it was very positive to note that the BCA was already aware of most of the items identified during the assessment and was already working to find resolutions.”

Most hearteningly, the schedule for IANZ assessments has returned to a usual footing with the next IANZ assessment of the BCA planned for October 2022.

Table 2: October 2020 IANZ BCA accreditation assessment findings

ASSESSMENT FINDINGS
	This assessment:	Last assessment:
Total # of “serious” non-compliances:	0	0
Total # of “general” non-compliances:	11	23
Total # of non-compliances outstanding:	6	4
Recommendations:	4	8
Advisory notes:	0	1
Date clearance plan required from BCA:	11 December 2020 (completed and accepted)
Date non-compliances must be cleared:	12 March 2021

The clearance plan has been presented and accepted with an expectation that three outstanding General Non-Conformances will be cleared ahead of the 12 March 2021 deadline.

Reason for the recommendation

A recommendation to remove ARF002 Building Consents – BCA status risk from the organisational risk dashboard is supported by the total risk score and probability; and the controls in place.

In December 2020 ARF002 Building Consents – BCA status was rescored using the FNDC risk matrix. The rescoring is captured in Table 3.

Table 3: ARF002 Building Consents – BCA status risk impact score using the 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

ARF002 Building Consents – BCA status 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 now assessed as low impact and unlikely to occur, see Table 4.

Table 4: ARF002 Building Consents – BCA status risk map as assessed December 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 controls. Current ARF002 Building Consents – BCA status controls in place are:

1. District Services Group Risk Register: continuing risk management via the District

Services Group Risk Register.

2. Internal Audits:

a. Management of a programme of scheduled systems audits by the Manager, Quality.

b. Management of a programme of scheduled technical audits by BCA Team Leaders.

3. External Audit: external audit recommendations captured on the Audit Recommendations

and Assurance Report.

4. Workforce planning is in place to monitor the BCA to ensure FNDC meets the requirements

of regulation 8 of the Building (Accreditation of Building Consent Authorities) Regulations

2006.

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.	None.
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.

Table 1: Top organisational risk dashboard

Key to trend of risk rating:

Decline

No change/stable

Increase

Risk ID:

Risk title

Inherent risk score

Trend of risk rating

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

Oct 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

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

Table 2: proposed risk programme for 2021

	Feb 21	Mar 21	Apr 21	May 21	Jun 21	Jul 21	Aug 21	Sep 21	Oct 21	Nov 21	Dec 21
ARF meeting date:	10/02	24/03		05/05	16/06	21/07		08/09	20/10		01/12
Report deadline:	05/01	23/02		01/04	14/05	23/06		10/08	21/09		02/11
Risk Management Report	ü	ü		ü	ü	ü		ü	ü		ü
Risk presentations	ü
Risk deep dives
Risk decision reports	ARF002	ARF011
Emergent Risk Reports				1 2		*3
Risk progress reports
ARF001 Climate Change		ü						ü
ARF003 Health & Safety Vulnerabilities	ü			ü		ü		ü			ü
ARF004 Asset Management Risks		ü						ü
ARF005 Affordability					ü						ü
ARF006 Project - Priorities Deliveries Delays	ü			ü		ü			ü
ARF007 Compliance NRC Abatements					ü						ü
ARF009 Customer Service Delivery		ü			ü			ü			ü
ARF010 Data Governance Risks					ü						ü
ARF012 Contract Management Risks	ü			ü		ü			ü
ARF013 Drinking Water Resilience		ü			ü			ü			ü

*1 The financial and legal risks due to the effects of climate change

*2 Proposed government changes to the majority of local government procurements of $100,000 and greater

*3 Three waters reform

Assurance, Risk and Finance Committee Meeting Agenda

10 February 2021

Discussion and Next Steps

Organisational risk management:

In December 2020 the Assurance, Risk and Finance Committee commenced the assessment to determine the desired residual risk score for ARF013, Drinking Water Resilience. A staff workshop is scheduled (16/01/2021) to identify the impact, on the inherent risk score, of all the current treatments; and to assess the impact on the risk score of proposed treatments in the LTP (for the first three years of the LTP). This will then be used to inform the Assurance, Risk and Finance Committee discussion on the desired residual risk profile.

At the request of the Assurance, Risk and Finance Committee (December 2020) a risk presentation and discussion is tabled for the February agenda. This will include a review of the proposed 2021 risk work programme.

A separate report on the February Assurance, Risk and Finance Committee agenda is recommending the removal of ARF002 BCA Status Risk from the organisational risk dashboard with ongoing risk oversight on the District Services Group Risk Register.

In November 2020, the Council completed our second CouncilMARK Assessment. This provides external evidence supporting a decline for the organisational risk, ARF011 Organisational Cohesion. A report recommending the removal of this risk will be on the March 2021 Assurance, Risk and Finance Committee agenda.

Emergent Risk:

A new emergent risk has been identified. This is in relation to the potential impact of the Worksafe decision, December 2020, to charge 13 parties over the Whakaari/White Island tragedy; and the government review of Worksafe’s performance.

Table 3: 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	An emergent risk report is proposed for the May 2021 agenda.
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 was subject to a report at the December 20 Assurance, Risk and Finance Committee meeting.
5. Extending the Government Procurement Rules to government entities in the New Zealand public sector.	December 2020	An up-date is expected in the March 2021 risk management report with a full report to Assurance, Risk and Finance Committee planned for May 2021.
6. 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.	December 2020	Government report is due 08/06/21
7. Affordability impact of the Local Government (Rating of Whenua Maori) Amendment Bill.	December 2020	Impact to be considered as part of the affordability risk.

Organisational risk progress reports:

Three scheduled risk progress reports, including high level treatment plan progress, 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.

Risk progress report – highlights and analysis:

1. 2021 02 ARF003 Health Safety and Wellbeing Vulnerabilities Risk Progress Report: The risk rating trend has been assessed as increasing due to the treatment plan progress; increase in threatening behavior from the public; and the ongoing non-compliance with Health and Safety at Work Act regulations across our assets.

2. 2021 02 ARF012 Contract Management Risks Risk Progress Report: The risk rating trend has been assessed as stable (no change). The plan is to continue to make progress against treatment solutions.

3. 2021 02 ARF006 Project - Priorities Deliveries Delays Risk Progress Report: The inherent risk rating trend has been assessed as stable (no change). IAMS are actively working on treatments with a number of treatments established.

Group Risk:

To enable and empower the organisation the Transformation and Assurance 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.

Table 4: Summary of progress, Group Risk Registers

Group Risk Register:	Number of identified risks:	Number of high impact/likelihood risks:	Commentary:
CEO Office	No risks have been identified.		Further risk workshops to be planned.
Corporate Services	35 departmental risks. No group risks have been identified.	Two departmental risks have an inherent risk score of 39 or greater.	Further risk workshops to be planned.
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.	Customer Services Risk and Business Continuity Plan Workshop scheduled for 26/01/2021. Proposed escalation of their top group risk.
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.	Further risk workshops to be planned.
Strategic Planning and Policy	Six risks, three organisational with the remaining unclassified.	One risk has an inherent risk score of 35.	Strategy Development Risk workshops recommenced December 2020. A second workshop is scheduled for 23/02/2021.

Financial Implications and Budgetary Provision

No additional budgetary provision is requested.

Attachments

1. 2021 02 ARF003 Health Safety and Wellbeing Vulnerabilities Risk Progress Report - A3053818 ⇩

2. 2021 02 ARF006 Projects Priorities Delivery Delays Risk Progress Report - A3053819 ⇩

3. 2021 02 ARF012 Contract Management Risk Progress Report - A3053821 ⇩

Assurance, Risk and Finance Committee Meeting Agenda

10 February 2021

6.2 2021-02-10 Revenue Recovery report

File Number: A3067425

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 a quarterly update on Revenue Recovery to the Far North District Council Assurance, Risk, and Finance Committee.

Executive Summary

This is the fourth 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 2021-02-10 Revenue Recovery report 2021-02-10.

1) Background

This document has been prepared to outline current and arrears balances for rates, water and Sundry debt as at 31 December 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 Assurance, Risk and Finance Committee on a regular basis.

2) Discussion and Next StepsThe data provided is for General Title and Maori Freehold Land rates; and water accounts with sundry debtors shown under separate heading.

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.

· A total of 412 mortgage demand letters were sent in October and November, to the owners of properties with arrears debt of more than $3,000. To date 54 property owners have paid the arrears balance, 60 have set up a direct debit and four have a payment arrangement. A further 92 are making payments to clear the arrears.

· Council’s Legal team sent letters to eight property owners, identified for legal proceedings. To date, seven owners now have a payment arrangement or direct debit in place. Legal proceedings will commence for the one property that has not.

Legal action update:

· Default judgment was received for a further seven properties since the last report.

· Council currently has judgment secured against 12 properties for $271,277.79 of which $227,671.98 is rates debt (FNDC & NRC) and $43,605.81costs awarded. Charging orders have since been registered.

· Full payment has been received for a further three properties with judgment secured totalling $40,020.81 in rates arrears and $11,860.52 in costs.

· To date, payment in full has been received for 12 properties, totalling $247,282.61 in rates arrears and a further 12 properties have a payment arrangement set up in line with rates easy pay.

Next actions:

· Issue final demand to the mortgage providers for those who were notified in October and November, for which no communication nor payment has been received.

· Issue mortgage demand to the owners for properties with a mortgage, with an arrears balance of $3,000 or less.

· Prepare and submit policy for approval by Council for next actions for Council to take, post default judgment from the courts.

· Further instructions to external law firm to proceed with additional cases already filed with them and identify properties to commence abandoned land procedures.

· Council legal team to send letters to an additional 20 property owners identified for potential legal proceedings.

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.

· 31% of these accounts have arrears of more than two rating years.

o 70% of these accounts have received final demand letters from Council

o FNDC legal team now actively involved with legal proceedings.

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

· 69% 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.

Sundry Debtors debt

The total sundry debtors aged debt balance has increased since the last report, mainly driven by one invoice for $138,575 but this has since been paid. The 90+ days debt now accounts for 50% of the total debt, of which 47% is Resource Consents.

Further actions to be implemented to reduce resource consent debt:

· Fee review tracker in place, process to be documented.

· Implement interim invoicing at key stages of a resource consent 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 to be agreed.

· 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.

Additional debt collection actions by debt management:

· All three demand letters have been loaded in Pathway and debt management have sent first and second letters to qualifying accounts.

· The first default notice has been registered with credit bureau and further accounts to be registered once the third and final demand letter has been sent and no payment has been received.

· Debt management are preparing an application to be submitted to the Disputes Tribunal for a trial case. Disputes Tribunal is less formal than a small claims court. They can hear cases on almost anything but there must be a dispute which both parties have failed to resolve, rather than someone just refusing to pay. It can only be for debt up to $30,000 but the costs are low ($45 to $180). There are no judges, referees only, and lawyers cannot represent us, so debt management officers will need to attend. Council’s legal team is supporting with paperwork and preparation for the hearing, however.

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. 2021-02-10 Revenue Recovery Report attachment - A3067350 ⇩

Assurance, Risk and Finance Committee Meeting Agenda

10 February 2021

6.5 Digital Information Services - 2021 Work Programme

File Number: A3059539

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 overview of the Digital Information Services work programme for 2021 and calendar schedule for future meetings.

Executive Summary

To provide the Assurance, Risk and Finance committee, as discussed at prior meetings and workshops, to ensure a level of oversight into the work programme of activities that are planned and inflight, by Digital Information Services department during 2021.

The update will provide the Committee with an overview of the following teams and activities

· ICT Operations and Delivery

· Business Intelligence and GIS

· Information Management

· Programme Delivery

The report will also outline the 2021 calendar year schedule for what reports and updates will be presented to the committee with input on topics or areas of interest sought from Elected Members.

The Chief Digital Officer will provide a PowerPoint presentation at the meeting to provide more details that are contained in this report.

Recommendation

That the Assurance, Risk and Finance Committee receive the report Digital Information Services - 2021 Work Programme.

Background

The Digital Information Services team over the past 6 months have been realigning and developing a more detailed work programme that aims to address the new areas that Council is seeking to make progress on.

With the change of operating rhythm and the significant permanent move to remote working, there will be changes to key focus areas that the team will be integrating into the future work programme.

The Digital Information Services ‘Strategy on a Page’, has been in place since 2019 and is planned to be updated later this year following the revised LTP.

The existing Key Focus Areas (KFA) that were identified to align and support the wider Council strategic priorities are as follows:

· Data is a Valuable Asset

· Workforce Mobility

· Fit for Purpose Solutions

· Digital Enablement

· Aligned Delivery Capability

Diagram

Description automatically generated

During the LTP workshop in December where an overview of the Capital Programme was reviewed, it was discussed that further details and insights around these programmes of work be presented to the Committee to provide an oversight of what this programme will deliver.

These updates will also have alignment with the Internal audit programme to ensure risk and associated controls are identified and in place.

Existing in progress Digital Services Projects:

· Geospatial Information Services re-architecture

· Core Systems Upgrade Programme

· Enterprise Data Warehouse

· Online Services (Phase 3 & 4)

· ICT Cyber Security Programme

· Creating and Enabling Great Workplaces

· Library RFID Project (contributor)

· Contact Centre Phone System Upgrade

· Programme Darwin – Asset Management System

There are also several additional minor projects that are being undertaken that will support the above project/programmes and/or focus on specific business improvement areas within Council’s operational activities.

A number of these improvement activities are covered under the Digital and Customer Transformation Board. This has oversight of the Customer Experience (CX) Programme, Vision 2020, Programme Darwin, and Online Services.

Proposed Future Digital Services Projects:

· Digital Information Workflows

o Robotic Process Automation (RPA)

o Archives Digitisation

o Contact Centre Improvements

o Land Information Memorandum Collation

· Digital Spatial Information

o Aerial Imagery and LIDAR

o District Plan (2^nd Generation) Delivery

o Open Data Standards and Delivery

o FN2100 GIS Delivery

o FNDC Local Maps

· Fit for Purpose

o Programme Flight Plan – Strategy – Project – Risk

o Cemeteries Management

o Online Services – Bookings Management

o ICT Cyber Security (2^nd Stage)

o Parking Enforcement

· Digital Strategy – ‘Nothing But Net’ Programme

o Smart District Action Plan

o Live Public Meetings

o Additional Projects from Strategy (scoping required)

These are the identified activity areas, that over the next three years are envisaged to ensure that the various workstreams are enabled to deliver on outcomes and benefits which are required.

Discussion and Next Steps

A revised Digital Information Services Strategy will be developed once the new LTP strategic priorities and budgets have been approved.

For the 2021 calendar year the meetings schedule with proposed focus is below, and any feedback on topics within the meetings in March and June would be appreciated.

· 10^th February Meeting – Digital Information Services - Work Programme Overview for 2021

· 24^th March Meeting – Specific Update from Data Insights and Programme Delivery

· 5^th May Meeting – General Update Report

· 16^th June Meeting – Specific Update from ICT Operations and Delivery

· 21^st July Meeting – No report as LTP activities will be the priority

· 8^th September Meeting - General Update Report

· 20^th October Meeting – TBC

· 1^st December Meeting - General Update Report – Year End Review Report

Financial Implications and Budgetary Provision

Future work streams and programme delivery are dependent on approval of the proposed LTP budgets. If amendments are required during the LTP process, future programme delivery timeframes and projects would need to be revisited, rescoped or reforecast to future years.

Attachments

Nil

Assurance, Risk and Finance Committee Meeting Agenda

10 February 2021

6.6 Sustainable Procurement Update

File Number: A3062233

Author: Caroline Wilson, Manager - District Administration

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

Purpose of the Report

To provide an update on progress to date on the implementation of sustainable procurement.

Executive Summary

Council staff have been working during 2020 to design and deliver a sustainable procurement strategy and implementation plan. This information report outlines the progress to date and next steps.

Recommendation

That the Assurance, Risk and Finance Committee receive the report Sustainable Procurement Update.

Background

Council, in early 2020, agreed to invest resource into developing a sustainable procurement framework to ensure that Councils significant investment in infrastructure and large professional services spend creates a positive return for Council and our communities. This approach was always seen as the natural maturity path for the procurement function within Council which was embedded in 2018.

The framework was designed in consultation with Height Consulting (HC), a professional services organisation experienced in delivering social outcomes on infrastructure works. They have significant experience in working with central government agencies and associated supply chains. This is a relatively new field for Local Government (FNDC is one of the more progressive Councils in this space), and the learnings from HC have been invaluable in developing the framework and associated implementation.

The framework centres around the four wellbeing’s – Cultural, Economic, Environmental and Social and are further aligned to Councils adopted Community Outcomes. The focus for the foreseeable future centres around the following key criteria:

· Jobs and Careers

· Arresting and Reversing Environmental Degradation

· Partnering with Tangata Whenua

· Growing the Local Market

· Ratepayer Affordability

As Council progresses in this area, and in line with any significant changes in focus for Local Government, there will be step reviews to ensure the framework continues to deliver the outcomes that positively impact on our local communities.

Discussion and Next Steps

Workshops were held with Elected Members, SLT and key staff (infrastructure, community engagement, Te Hono and strategy) and culminated in the adoption by SLT of the framework in November 2020. Elected Members were subsequently provided a copy of the draft framework in their Elected Member Lounge for comment and feedback during the month of November.

Council adopted a revised Sustainable Procurement Policy at its December 2020 meeting, thus giving the green light to commence implementation.

A workshop with key infrastructure management staff, PMO and Audit and Assurance was undertaken in December to introduce the toolkit and discuss implementation challenges and opportunities. Important criteria to the success of this initiative is that it becomes part of our DNA and can be assessed and reported on.

An assessment was undertaken as to the best option to ensure the principles of sustainable procurement were being well embedded into the organisation and delivering the desired intent. This has resulted in a 2-year fixed term contract for a Principal Advisor, whose role will be to work with staff, our supply chain and our local communities to ensure every project considers and delivers a positive sustainable outcome. This will allow time for: The Infrastructure team to learn how to approach planning sustainable outcomes on projects, and for project managers/managers delivering the works to ensure these are embedded into the procurement, contract management and reporting lifecycles. The role sits within the Project Management Office (PMO) (for whom procurement, project management and contract management are a key focus) with a dotted line into Caroline Wilson, as the Project Manager responsible for creating the framework.

Implementation has commenced through ESEO projects, and with Infrastructure Delivery on projects where central government funding has been allocated. The intent has been to deliver on the requirements of the funding, and where possible to embed outcomes related to our own framework (but to a lesser degree while the framework was still in development phase).

A full day workshop was held with all Infrastructure Planning, Operations and Delivery staff on 27^th January 2021. This signals the formal launch of sustainable procurement into day to day operations with the support of the Principal Advisor. [The role was advertised during January 2021 but at the time of writing the report, no interviews had yet been undertaken. The PMO and Caroline Wilson, along with HC, will provide guidance to staff initially and work with individual suppliers in the short term].

Work will be undertaken with Audit to ensure that staff are able to easily report on sustainable outcomes, by way of quarterly reports to the Assurance, Risk and Finance Committee.

Financial Implications and Budgetary Provision

The Principal Advisor role has been funded through ESEO projects for a full 2-year period, from date of commencement in the role. All other roles involved in delivering sustainable outcomes are already established roles and will undertake this work as part of BAU.

Attachments

Nil

Assurance, Risk and Finance Committee Meeting Agenda

10 February 2021

Tender Panel meeting date	Procurement Name	Procurement Approach	Procurement Estimate	Category	Tender Panel Decision	Outcome	Date closed of procurement activity	Name of successful supplier	Status of Completion
28 Sept 2020	New Toilet Blocks for Jaycee Park, Long Beach & TaHeke Hall	Seeking endorsement of a direct award (single selection of a supplier)	$603,375	Physical works & goods & services	Chair and Tender Panel Core Members were unanimously in agreement to proceed with the direct award.	Direct award to Permaloo		Permaloo Limited	Project is in delivery stage with Infrastructure Programme Delivery - contract terminate date 30 April 2021
12 Oct 2020	Kaikohe – Monument Hill Bore	Seeking endorsement of a direct award (single selection of a supplier)	$180,000	Physical works	Chair and Tender Panel Core Members were unanimously in agreement to proceed with the direct award.	Direct award to McMillan Drilling NI		McMillan Drilling NI	Project is in delivery stage with Infrastructure Programme Delivery - Stellar Projects
12 Oct 2020	Redevelopment of Strategic Roads in the Far North - Ruapekapeka Road PGF funded contract	Stage 1a, investigation, testing and survey – Direct award to Ventia Stage 1b, Enabling works and seal extension adjacent to the Pa site – Direct Award to Ventia Stage 2, intersection design – Direct Award to NCC Consulting Engineers Stage 3, MSQA – It is proposed that this stage is awarded by the NTA Stage 4, Design and Build Design – Direct Award to Haigh Workman Construction – Closed Tender	Stage 1a - $60-$90,000 Stage 1b - $1,100,000 million Stage 2 - $50,000 Stage 3 - $60,000 Stage 3 (Design) - $150,000 - $200,000 Stage 4 (Construction) - $4,125,000	Professional Services i.e. MSQ, design and physical works	After much scrutiny, the Tender Panel was satisfied that the procurement processes as outlined in the Funding Agreement, had been met and approved the Procurement Plan (e.g in particular, clause 12 (4) which states: ”The Recipient will meet NZTA’s usual standards for contracting and procurement for Approved Organisations”.	Stage 1a, Direct award to Ventia Stage 1b, Direct award to Ventia Stage 2, Direct Award to NCC Consulting Engineers Stage 3, MSQA – It is proposed that this stage is awarded by the NTA Stage 4, Design and Build Design – Direct Award to Haigh Workman Construction – Closed Tender			Ongoing
12 Oct 2020	Priority 1 Routes Required for Economic Development, upgrade both Ngapipito Road and Peria Road – PGF funded contract	It is proposed that this project is awarded through the current maintenance contract with Ventia (Ngapipito Road) and Fulton Hogan (Peria Road)	Total project values Ngapipito Road $4.3m, Peria $9.9m	Professional Services i.e design and physical works	Chair and Tender Panel Core Members were unanimously in agreement to proceed	Direct award to Ventia & Fulton Hogan	Ongoing	Ventia & Fulton Hogan	Ongoing
12 Oct 2020	Pungaere Road Seal Extension (Tourism Infrastructure Fund) Funding - $793,584	Direct award to Ventia	Subject to final design	Physical Works	Chair and Tender Panel Core Members were unanimously in agreement to proceed	Direct award to Ventia	Ongoing	Ventia	Ongoing
23 Nov 2020	Te Hiku Netball Courts	Open Tender	$1,105,503	Physical Works	Chair and Tender Panel Core Members were unanimously in agreement to proceed	open tender published on GETS	No RFT submissions - in discussion with Project Lead as to next steps
7 Dec 2020	Rating Valuation and Database Maintenance Services	Open Tender	$6,769,748	Professional Services	Chair and Tender Panel Core Members were unanimously in agreement to proceed	open tender published on GETS	March / April 2021	Non-Applicable
7 Dec 2020	Streetlighting & Maintenance Services	Open Tender	$1,950,000	Physical Works (Maintenance)	Chair and Tender Panel Core Members were unanimously in agreement to proceed	Open tender to be published on GETS during January 2021	April 2021	Non-Applicable
7 Dec 2020	Southern Animal Shelter	Open Tender	$1,246,131	Physical Works	Chair and Tender Panel Core Members were unanimously in agreement to proceed	Open tender to be published on GETS during February 2021	April 2021	Non-Applicable
21 Dec 2020	Russell Landfill Operations, Waste Services & Recycling Services	Open Tender	$467,100 (for initial three-year term)	Operations	Chair and Tender Panel Core Members were unanimously in agreement to proceed	Open tender to be published on GETS during January 2021	April 2021	Non-Applicable
21 Dec 2020	SH10 Works – Waipapa Sports Hub – PGF funded for site access only	Seeking endorsement of a direct award (single selection of a supplier)	$307,150	Physical Works	Chair and Tender Panel Core Members were unanimously in agreement to proceed	Direct award to Downer	Ongoing	Downer – currently completing Waipapa roundabout which is in the construction vicinity.