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
	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
	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
Mike Edmonds	Committee member	Kaikohe Rugby Football and Sports Club	Council Funding	Withdraw and abstain

Assurance, Risk and Finance Committee Meeting Agenda

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.

ngĀ tŪtohunga / Recommendation

That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 24 March 2021 as a true and correct record.

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.

ngĀ Āpitihanga / Attachments

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

3 Deputation

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

5 Reports

5.1 Recommendation to Remove ARF011 Organisational Cohesion Risk from the Organisational Risk Dashboard

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 Information Reports

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

6.3 March Risk Management

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

7 Public Excluded

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:

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 - Internal Audit and Assurance Program 2021	s7(2)(f)(i) - free and frank expression of opinions by or between or to members or officers or employees of any local authority	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

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

Table 1: May 2021 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	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.

Āpitihanga / Attachments

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 ⇩

Assurance, Risk and Finance Committee Meeting Agenda

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.

TŪTOHUNGA / Recommendation

That the Assurance, Risk and Finance Committee receive the report Internal Audit and Assurance - Audit Recommendations Register Update.

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.