Te Kaunihera o Tai Tokerau ki te Raki
AGENDA
Assurance, Risk and Finance Committee Meeting
Wednesday, 5 May 2021
Time: |
1.30 pm |
Location: |
Council Chamber Memorial Avenue Kaikohe |
Membership:
Cr John Vujcich - Chairperson
Member Bruce Robertson
Mayor John Carter
Deputy Mayor Ann Court
Cr Mate Radich
Cr Rachel Smith
Cr Kelly Stratford
Cr Moko Tepania
Kaikohe-Hokianga Community Board Chairperson Mike Edmonds
|
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.
The Chair of the Committee will submit a written report to the Chief Executive on an annual basis. The review will summarise the activities of the Committee and how it has contributed to the Council’s governance and strategic objectives. The Chief Executive will place the report on the next available agenda of the governing body.
ASSURANCE, RISK AND FINANCE COMMITTEE - MEMBERS REGISTER OF INTERESTS
Name |
Responsibility (i.e. Chairperson etc) |
Declaration of Interests |
Nature of Potential Interest |
Member's Proposed Management Plan |
Hon John Carter QSO |
Board Member of the Local Government Protection Programme |
Board Member of the Local Government Protection Program |
|
|
Carter Family Trust |
|
|
|
|
John Vujcich (Chair) |
Board Member |
Pioneer Village |
Matters relating to funding and assets |
Declare interest and abstain |
Director |
Waitukupata Forest Ltd |
Potential for council activity to directly affect its assets |
Declare interest and abstain |
|
Director |
Rural Service Solutions Ltd |
Matters where council regulatory function impact of company services |
Declare interest and abstain |
|
Director |
Kaikohe (Rau Marama) Community Trust |
Potential funder |
Declare interest and abstain |
|
Partner |
MJ & EMJ Vujcich |
Matters where council regulatory function impacts on partnership owned assets |
Declare interest and abstain |
|
Member |
Kaikohe Rotary Club |
Potential funder, or impact on Rotary projects |
Declare interest and abstain |
|
Member |
New Zealand Institute of Directors |
Potential provider of training to Council |
Declare a Conflict of Interest |
|
Member |
Institute of IT Professionals |
Unlikely, but possible provider of services to Council |
Declare a Conflict of Interest |
|
Bruce Robertson (Deputy) |
Chair/Deputy Chair of a number of Audit and Risk Committees: Far North Auckland Bay of Plenty Regional Tauranga Thames Coromandel Hamilton Waipa Otorohanga Waitomo Environment Southland Invercargill Southland. |
|
There is a low level of there being a potential interest conflict. An outside potential is water reform and ‘discussion’ of one north regional water company in loving North AKD with Watercare. |
I remain aware of my roiled and will Raise any matter with the Mayor/CEO And chair of ARF should any matter potentially conflict. |
Currently None are North AKD. Previously I have Undertaken work on Okara Park with Whangarei DC. |
Advisory Work. |
Okara Park is a regional Stadium. Matter solely related Governance and role of DC. Low risk of conflict. |
|
|
Deputy Mayor Ann Court |
Waipapa Business Association |
Member |
|
Case by case |
Warren Pattinson Limited |
Shareholder |
Building company. FNDC is a regulator and enforcer |
Case by case |
|
Kerikeri Irrigation |
Supplies my water |
|
No |
|
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 |
|
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 |
|
|
|
Vision Kerikeri |
Financial Member |
|
|
|
Rachel Smith (Partner) |
Property Owner |
Kerikeri |
|
|
Friends who work at Far North District Council |
|
|
|
|
Kerikeri Cruising Club |
Subscription Member and Treasurer |
|
|
|
Vision Kerikeri |
Financial Member |
|
|
|
Town and General Groundcare Limited |
Director/Shareholder |
|
|
|
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 |
Committee member |
Kaikohe Rugby Football and Sports Club |
Council Funding |
Withdraw and abstain |
Assurance, Risk and Finance Committee Meeting Agenda |
5 May 2021 |
Assurance, Risk and Finance Committee Meeting
will be held in the Council Chamber, Memorial Avenue, Kaikohe on:
Wednesday 5 May 2021 at 1.30 pm
Te Paeroa Mahi / Order of Business
1 Karakia Timatanga – Opening Prayer
2 Nga Whakapāha Me Ngā Pānga Mema / Apologies and Declarations of Interest
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes
5.2 Internal Audit and Assurance - Audit Recommendations Register Update
5.3 Level of Service KPI Quarter 3 Performance Report
5.4 Council Financial Report for the Period Ending 31 March 2021
5.5 Elected Member Sensitive Expenditure
5.6 Council Decision Tracking Assessment for the 2020 Calendar Year
6 Te Wāhanga Tūmataiti / Public Excluded
6.1 Confirmation of Previous Minutes
6.2 Opua Cycle Trail Risk Mitigation Update
6.3 Cybersecurity Framework Update
7 Karakia Whakamutunga – Closing Prayer
8 Te Kapinga Hui / Meeting Close
2 Nga Whakapāha Me Ngā Pānga Mema / Apologies and Declarations of Interest
Members need to stand aside from decision-making when a conflict arises between their role as a Member of the Committee and any private or other external interest they might have. This note is provided as a reminder to Members to review the matters on the agenda and assess and identify where they may have a pecuniary or other conflict of interest, or where there may be a perception of a conflict of interest.
If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the meeting or of the relevant item of business and refrain from participating in the discussion or voting on that item. If a Member thinks they may have a conflict of interest, they can seek advice from the Chief Executive Officer or the Team Leader Democracy Support (preferably before the meeting).
It is noted that while members can seek advice the final decision as to whether a conflict exists rests with the member.
3 Te Tono Kōrero / Deputation
No requests for deputations were received at the time of the Agenda going to print.
5 May 2021 |
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes
File Number: A3161100
Author: Casey Gannon, Meetings Administrator
Authoriser: Aisha Huriwai, Team Leader Democracy Services
Te Take Pūrongo / 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.
1) te TĀhuhu kŌrero / 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) Te matapaki me NgĀ KŌwhiringa / 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.
Te Take Tūtohunga / 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) NgĀ PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision
There are no financial implications or the need for budgetary provision as a result of this report.
1. 2021-03-24
Assurance, Risk and Finance Committee Minutes - A3129420 ⇩
Te Hōtaka Take Ōkawa / 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.
He Take Ōkawa / Compliance requirement |
Te Aromatawai Kaimahi / 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 on 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 the 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 |
5 May 2021 |
MINUTES OF Far North District Council
Assurance, Risk and
Finance Committee Meeting
HELD AT THE Council
Chamber, Memorial Avenue, Kaikohe
ON Wednesday, 24 March
2021 AT 1.00
pm
PRESENT: Cr John Vujcich, , Cr Mate Radich, , Cr Moko Tepania, Kaikohe-Hokianga Community Board Chairperson Mike Edmonds
IN ATTENDANCE: Shaun Clarke (Chief Executive Officer), William J Taylor, MBE (General Manager Strategic Planning and Policy - Acting), Helen Ronaldson (General Manager Infrastructure and Asset Management - Acting), Dean Myburgh (General Manager District Services), Jamie Dyhrberg (General Manager Corporate Services - Acting)
1 Karakia TimatAnga – Opening Prayer
Cr Moko Tepania opened with a karakia.
2 Apologies and Declarations of Interest
Resolution 2021/1 Moved: Cr John Vujcich Seconded: Cr Moko Tepania That apologies from His Worship the Mayor John Carter, Deputy Mayor Ann Court, Member Bruce Robertson, Cr Rachel Smith, Cr Kelly Stratford be received and accepted. Carried |
2.1 MEMBERSHIP OF COMMITTEE |
RESOLUTION 2021/2 Moved: Cr John Vujcich Seconded: Kaikohe-Hokianga Community Board Chairperson Mike Edmonds That the Assurance, Risk and Finance Committee recommend to Council that Adele Gardner be appointed as a member of the Assurance, Risk and Finance Committee. Carried |
2.2 MOTION – SPREAKING RIGHTS FOR Te hiku community board chair adele gardner |
RESOLUTION 2021/3 Moved: Cr John Vujcich Seconded: Cr Moko Tepania That the Assurance, Risk and Finance Committee welcome Te Hiku Community Board Chair Adele Gardner and that she be permitted to speak during member debate. Carried |
No deputations requested at the time of the meeting.
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes Agenda item 4.1 document number A3110035, pages 12 - 19 refers. |
Resolution 2021/4 Moved: Cr John Vujcich Seconded: Kaikohe-Hokianga Community Board Chairperson Mike Edmonds That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 10 February 2021 as a true and correct record with the following amendments: a) Mate Radich attended virtually for 2 December 2021 and 10 February 2021 meetings, and; b) Shaun Clark apologies accepted for 10 February 2021. Carried |
Agenda item 5.1 document number A3110274, pages 20 - 24 refers. |
Resolution 2021/5 Moved: Cr Moko Tepania Seconded: Cr John Vujcich That the Assurance, Risk and Finance Committee approves the removal of ARF011 Organisational Cohesion risk from the organisational risk dashboard. Carried |
6.1 Council Financial Report for the Period Ending 28 February 2021 Agenda item 6.1 document number A3111486, pages 25 - 49 refers. |
Resolution 2021/6 Moved: Cr John Vujcich Seconded: Cr Moko Tepania That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 28 February 2021. Carried |
6.2 Risk Progress Report for Programme of Externally Funded Projects Agenda item 6.2 document number A3110299, pages 50- 58 refers. |
Resolution 2021/7 Moved: Cr John Vujcich Seconded: Cr Moko Tepania That the Assurance, Risk and Finance Committee receive the report Risk Progress Report for Programme of Externally Funded Projects. Carried |
Agenda item 6.3 document number A3111424, pages 59 - 81 refers. |
Resolution 2021/8 Moved: Cr John Vujcich Seconded: Cr Moko Tepania That the Assurance, Risk and Finance Committee receive the report March Risk Management. Carried |
6.4 Elected Member Sensitive Expenditure Agenda item 6.4 document number A3111500, page 82-83 refers. |
Resolution 2021/9 Moved: Cr John Vujcich Seconded: Kaikohe-Hokianga Community Board Chairperson Mike Edmonds That the Assurance, Risk and Finance Committee receive the report Elected Member Sensitive Expenditure. Carried |
RESOLUTION TO EXCLUDE THE PUBLIC
Resolution 2021/10 Moved: Cr John Vujcich Seconded: Cr Moko Tepania 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:
Carried |
Resolution 2021/11 Moved: Cr John Vujcich Seconded: Kaikohe-Hokianga Community Board Chairperson Mike Edmonds That Council moves out of Closed Council into Open Council. Carried |
8 Karakia Whakamutunga – Closing Prayer
Cr Moko Tepania closed with a karakia.
9 Meeting Close
The meeting closed at 2:50 pm.
The minutes of this meeting will be confirmed at the Assurance, Risk and Finance Committee Meeting held on 5 May 2021.
...................................................
CHAIRPERSON
5 May 2021 |
File Number: A3150970
Author: Tanya Reid, Business Improvement Specialist
Authoriser: Jacine Warmington, General Manager - Corporate Services (Acting)
TAKE PŪRONGO / Purpose of the Report
To provide a report on organisational risk management, emergent risk and scheduled risk progress reports for the organisation’s top risks.
No decision is required.
WHAKARĀPOPOTO MATUA / Executive SummarY
Risk progress updates are provided for three of the top organisational risks. The risk rating trend for two of these risks has been assessed as stable with a risk trend increase for one of the reported risks.
No new emergent risks have been identified for inclusion in this report.
Group risk progress update including progress to refresh business continuity arrangements.
That the Assurance, Risk and Finance Committee receive the report May 2021 Risk Management .
|
tĀHUHU KŌRERO / Background
The top organisational risks are risks that may impact on Council achieving its vision, mission and community outcomes and are regularly reported to the Assurance, Risk and Finance Committee to ensure they are being appropriately managed. A number of these risks are subject to external influences which may affect effective council operations.
Table 1, below, provides a risk snapshot of the Assurance, Risk and Finance Committee Organisational Risk Dashboard with inherent and residual risk scores as accepted by this Committee and the risk progress to the residual risk score as assessed by the risk subject matter experts.
Table 2 details the 2021 risk work programme.
Within Council risk management at a group and departmental level continues.
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 |
Responsible |
Risk Progress Report |
Risk Progress Report ARF agenda: |
||
ARF001 |
Climate Change |
63 |
|
30 |
CEO |
GMSPP |
6 Monthly |
Mar 21 |
||
ARF003 |
Health & Safety Vulnerabilities |
46 |
|
34 |
CEO |
Manager P&C |
3 Monthly |
May 21 |
||
ARF004 |
Asset Management Risks |
45 |
|
18 |
CEO |
GMIAM |
6 Monthly |
Mar 21 |
||
ARF005 |
Affordability Risk |
45 |
|
26 |
CEO |
GMSPP |
6 Monthly |
Dec 20 |
||
ARF006 |
Project Priorities Deliveries Delays |
45 |
|
14 |
CEO |
GMIAM |
3 Monthly |
May 21 |
||
ARF007 |
Compliance NRC Abatements |
45 |
|
18 |
CEO |
GMIAM |
6 Monthly |
Dec 20 |
||
ARF009 |
Customer Service Delivery |
39 |
|
22 |
CEO |
Manager P&C |
3 Monthly |
Mar 21 |
||
ARF010 |
Data Governance Risks |
39 |
|
14 |
CEO |
CEO |
6 Monthly |
Dec 20 |
||
ARF012 |
Contract Management Risks |
39 |
|
14 |
CEO |
GMIAM |
3 Monthly |
May 21 |
||
ARF013 |
Drinking Water Resilience |
35 |
|
ARF to agree level residual risk |
CEO |
GMIAM |
3 Monthly |
Mar 21 |
||
Table 2: 2021 risk programme
2021 ARF meeting date: |
10/02 |
24/03 |
05/05 |
16/06 |
21/07 |
08/09 |
20/10 |
01/12 |
Risk deep dives |
|
ARF001 |
ARF003 |
ARF013 |
ARF012 |
ARF004 |
ARF006 |
ARF005 |
|
||||||||
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 |
Assurance, Risk and Finance Committee Meeting Agenda |
5 May 2021 |
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
Organisational risk management
The first Assurance, Risk and Finance risk deep dive for 2021 was held in March. The subject for this deep dive was our climate change risk. Further deep dives are planned for this calendar year, with timing based round scheduled risk progress reporting see table 2.
Emergent risk:
No new emergent risks have been identified for inclusion in this report.
It is understood that the government proposal to extend the government procurement rules to include territorial authorities is now off the agenda. As such the emergent risk, “Extending the Government Procurement Rules to government entities in the New Zealand public sector”, has been removed from Table 3.
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 risk progress report to the Assurance, Risk and Finance Committee meeting, March 2021. |
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 |
Following the March 2021 Climate Change deep dive transition risks will be subject to further work. |
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. 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 |
6. Potential impact of the Worksafe decision, in December 2020, to charge 13 parties over the Whakaari/White Island tragedy; and the government review of Worksafe’s performance. |
February 2021 |
Impact to be considered when further information is to hand. |
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. ARF003 Health Safety and Wellbeing Vulnerabilities Risk Progress Report: The risk rating trend has been assessed increasing due to delays in progressing treatments; increase in threatening behavior from the public; and the ongoing non-compliance with Health and Safety at Work Act regulations across our assets.
2. ARF006 Projects Priorities Delivery Delays Risk Progress Report: The risk rating trend has been assessed as stable (no change). There remain a number of fundamental issues which need to be addressed. These are dependent on other programmes of work such as Living Asset Management Plans and Project Darwin.
3. ARF012 Contract Management Risk Progress Report: The inherent risk rating trend has been assessed as stable (no change). Current contract management risk gaps identified include “small” and “large” contractors. The plan is to continue to make progress against treatment solutions.
Group Risk
Work is progressing within two Groups to enable risk management and risk governance.
1. District Services: established focussed quarterly risk governance meeting with the GM District Services, and the tier three managers.
2. IAM: established eight weekly risk management and governance meeting with the GM IAM, and direct reports. This meeting is based on the following standard agenda:
i. Have any issues / risks been escalated to us?
ii. Have we completed a SWOT analysis / risk assessment of our large and/or complex projects to inform the decision approval process by management and Council?
iii. Has our data baseline for any of our risks changed or a significant decisions / change to our external environment occurred or occurring e.g. legislation?
1. Are there any new or emerging risks? E.g. Is there a risk due to the consequences of a decision?
2. Does this data indicate that the risk impact score has changed?
3. Has the likelihood of this risk materialising changed?
4. Do we need to test any of our controls?
iv. Is the risk register up-to-date?
v. Is the risk treatment progressing to schedule?
vi. Do we need to escalate (e.g. to SLT) or de-escalate any of our risks?
a. A group risk presentation was made to all IAM staff covering:
i. Set the context – understand what risk is and the process we use to manage risk
ii. Why do we care?
iii. What is risk?
iv. What is the risk management process?
v. Identify your risks
vi. IAM risk governance
b. A further risk workshop was held with the Infrastructure Planning team.
Progress to refresh Council’s business continuity arrangements:
Significant progress has been made, within District Services, to refresh business continuity and incident management plans culminating in a group workshop (09/04/21) where we started to test the level of awareness, and business continuity planning and preparation based on impact and gap analysis pre-work.
Corporate Services:
Presentation to Corporate Services managers on framework to achieve business continuity plans so essential services can be operationalised, to ensure the coordination of an efficient organisational crisis response.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
No additional budgetary provision is requested.
1. 2021
05 ARF003 Health Safety and Wellbeing Vulnerabilities Risk Progress Report -
A3150895 ⇩
2. 2021
05 ARF006 Projects Priorities Delivery Delays Risk Progress Report - A3150899 ⇩
3. 2021
05 ARF012 Contract Management Risk Progress Report - A3150898 ⇩
5 May 2021 |
5.2 Internal Audit and Assurance - Audit Recommendations Register Update
File Number: A3159230
Author: Celine Carlisle, Audit and Assurance Specialist
Authoriser: Jacine Warmington, General Manager - Corporate Services (Acting)
TAKE PŪRONGO / Purpose of the Report
To provide the Assurance, Risk and Finance Committee with an update on internal and external audits, and any associated recommendations.
WHAKARĀPOPOTO MATUA / Executive SummarY
This report provides an update on internal and external audit recommendations. Since the last report on 2 December 2020 progress on understanding the best way to proceed on outstanding recommendations has been made. Two recommendations have been completed. Consideration of more meaningful reporting, tracking and measuring of all recommendations has begun. Design work for this reporting process has been tested and shown to be successful. The new reporting format will commence at the next Assurance, Risk and Finance Committee Meeting. Additional data collection techniques will form a continuous flow of updates to the Audit Recommendations Register.
The new reporting measures 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.
That the Assurance, Risk and Finance Committee receive the report Internal Audit and Assurance - Audit Recommendations Register Update.
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tĀHUHU KŌRERO / 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 19 April 2021:
ID |
Audit Name |
Title |
Assigned To |
Priority |
Status |
Description |
23 |
Internal Audit – Information Security |
External user access and authentication |
GM Corporate Services |
Must do |
Complete |
Network logon account internal audit completed. Progress: IT team have actioned audit findings. |
28 |
Internal Audit – Information Security |
Project Security Risks |
GM Corporate Services |
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) are developing a checklist to understand all the requirements needed to uphold information security for project delivery. Completion date to be advised. Information Security considerations to be included in Project Management Framework training to all key staff and inductions. |
58 |
KPMG - Procurement |
Spend monitoring |
GM Corporate Services |
Should do |
Underway |
Implement quarterly procurement spend analysis. |
59 |
KPMG - Procurement |
Spend monitoring |
GM Corporate Services |
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 |
GM Corporate Services |
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 reassessed to ensure the legislative compliance system purchased is fit for purpose. Further steps to investigate the compliance system for purchase and include this consideration in future budgets. |
99 |
Contract Management Review |
Set contract management guidelines |
GM Corporate Services |
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) |
GM District Services |
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. This recommendation item has changed hands and is actively reinstating correct procedures to ensure solutions are thorough and correctly applied. |
111 |
Three Waters Interim Alliance Agreement Review |
Education of Alliance contracts and principles |
GM Infrastructure and Asset Management |
Should do |
Underway |
Greater education for staff regarding expectations of an Alliance contract and understanding of the Alliance principles. Toolbox sessions held regularly with Far North Waters. |
115 |
Three Waters Interim Alliance Agreement Review |
Agree on Key Performance Indicators (KPI) |
GM Infrastructure and Asset Management |
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 |
GM Infrastructure and Asset Management |
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 |
GM Corporate Services |
Must do |
Complete |
SLT approved the policy. Legal Services working with Communications and IT teams to place it on the Intranet. Progress: This item is now complete. |
139 |
LGOIMA Compliance and Practice Report |
Develop a Proactive Release Policy |
GM Corporate Services |
Must do |
On hold |
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: Legal Services continues this work whilst keeping the proactive release of information in mind. This item has been put on hold in light of the new Privacy Act. Legal Services considers it important to continue to work with various departments in regard to publishing of information. |
Complete: 2
Almost complete: 0
Underway: 7
On hold: 3
Total: 12
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
This report is for information only and there are no financial implications associated.
Nil
5 May 2021 |
5.3 Level of Service KPI Quarter 3 Performance Report
File Number: A3155141
Author: Mia Haywood, Accounting Support Officer
Authoriser: Jacine Warmington, General Manager - Corporate Services (Acting)
Purpose of the Report
The purpose of this report is to present the Level of Service KPI Performance Report for the Assurance, Risk and Finance Committee’s consideration.
Executive Summary
This report is to present the level of service KPI performance report for the Assurance, Risk and Finance committee’s consideration.
That the Assurance, Risk and Finance Committee receive the Level of Service KPI Quarter 3 Performance Report. |
Background
An overview of staffing and financial data is included to give an overall picture of the activity groups, and what factors may have an influence on performance.
Discussion and Next Steps
This report is for information only.
Financial Implications and Budgetary Provision
There are no financial implications or budgetary provision needed as a result of this report.
1. Q3
Master Quarterly Performance Report LOS 2020_21 - A3157036 ⇩
5 May 2021 |
5.4 Council Financial Report for the Period Ending 31 March 2021
File Number: A3156181
Author: Angie Thomas, Manager - Accounting Services
Authoriser: Jacine Warmington, General Manager - Corporate Services (Acting)
TE TAKE PŪRONGO / Purpose of the Report
To provide an overview and information on the current financial position and performance of the Far North District Council as at 31 March 2021.
TE WHAKARĀPOPOTO MATUA / Executive SummarY
This report provides a summary overview, Statement of Financial Performance, Capital Performance and Borrowing and Investment reports.
NGĀ TŪTOHUNGA / Recommendation That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 31 March 2021. |
TE tĀHUHU KŌRERO / Background
This report provides financial information as at 31 March 2021.
TE MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
The report is for information only.
NGĀ PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
There are no financial implications or budgetary provisions required as a result of this report.
1. Council
Financial Report Mar 2021 (Pd9) - A3168723 ⇩
5 May 2021 |
5.5 Elected Member Sensitive Expenditure
File Number: A3157554
Author: Rhonda-May Whiu, Elected Member Administrator
Authoriser: Jacine Warmington, General Manager - Corporate Services (Acting)
TAKE PŪRONGO / Purpose of the Report
To provide information on all expenses incurred by Elected Members.
WHAKARĀPOPOTO MATUA / Executive SummarY
All Elected Member Sensitive Expenditure incurred from 1 January to 31 March 2021 was $29,282.49.
That the Assurance, Risk and Finance Committee receive the report Elected Member Sensitive Expenditure. |
tĀHUHU KŌRERO / Background
Formal reporting of all Elected Member expenses is a best practice recommendation from Audit New Zealand. Reimbursement of expenses processed as part of the fortnightly pay claim process are also included in the attached figures. This report reflects the months in which payments were processed and do not necessarily reflect the months when the expenses were incurred. Elected Member Sensitive Expenditure is any council expenditure where there may be a perceived personal benefit to an Elected Member.
Elected Member sensitive expenditure for the 2020-2021 financial year:
1 July to 30 September 2020 $16,205.35
1 October to 31 December 2020 $16,822.12
1 January to 31 March 2021 $29,282.49
Financial Year to date total $62,309.96
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
This information will be reported quarterly to the Assurance, Risk and Finance Committee.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
This report identifies financial expenditure that has occurred from 1 January to 31 March 2021.
1. Elected
Member Sensitive Expenditure 1 January to 31 March 2021 - A3158469 ⇩
5 May 2021 |
5.6 Council Decision Tracking Assessment for the 2020 Calendar Year
File Number: A3172438
Author: Aisha Huriwai, Team Leader Democracy Services
Authoriser: Jaime Dyhrberg, General Manager - Corporate Services (Acting)
TAKE PŪRONGO / Purpose of the Report
To provide the Assurance, Risk and Finance Committee with an overview of an assessment council staff undertook on Council decisions for the 2020 calendar year.
WHAKARĀPOPOTO MATUA / Executive SummarY
· Council staff have reintroduced action sheets as a mechanism to communicate progress against Council decisions and confirm when decisions have been implemented.
· 8% of Council decisions in the 2020 calendar year remain outstanding.
· The focus of this paper is on Council decisions.
· Action sheets are also in place for Committees and Community Boards.
That the Assurance, Risk and Finance Committee receive the report Council Decision Tracking Assessment for the 2020 Calendar Year. |
tĀHUHU KŌRERO / Background
The Democracy Services Team have been working on a solution to ensure that elected members can receive regular updates on progress against decisions made at meetings, in alignment with a Chief Executive Officer key performance indicator.
Action sheets have been designed as a way to close the loop and communicate with elected members on the decisions made by way of resolution at formal meetings.
Action sheets are not intended to be public information but will provide updates to elected members, who, when appropriate can report back to their communities and constituents.
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
During the 2020 calendar year Council made a total of 128 decisions. Of the 128 there are 10 decisions that have not been completely implemented and are in progress.
The outstanding tasks are multi-facet projects that take longer to fully complete.
The Democracy Services staff are working with staff to ensure that the project completion times are updated so that action sheets provided to members differentiate between work outstanding and work in progress.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
There are no financial implications or need for budgetary provision in receiving this report.
Nil
5 May 2021 |
6 Te Wāhanga Tūmataiti / Public Excluded
RESOLUTION TO EXCLUDE THE PUBLIC
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:
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7 Karakia Whakamutunga – Closing Prayer
8 Te Kapinga Hui / Meeting Close