Te Kaunihera o Tai Tokerau ki te Raki
AGENDA
Assurance, Risk and Finance Committee Meeting
Wednesday, 16 June 2021
Time: |
1.30 pm |
Location: |
Council Chamber Memorial Avenue Kaikohe |
Membership:
Chairperson John Vujcich
Deputy Chairperson Bruce Robertson
Mayor John Carter
Deputy Mayor Ann Court
Cr Mate Radich
Cr Rachel Smith
Cr Kelly Stratford
Cr Moko Tepania
Member Mike Edmonds
Member Adele Gardner
|
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 |
|
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 |
|
He Puna Aroha Putea Whakapapa |
Trustee |
May be perceived conflicts |
Should conflict arise, step aside from voting should they apply for funds |
|
Kawakawa Returned Services Association |
Member |
May be perceived conflicts |
Should conflict arise, step aside from voting should they apply for funds |
|
Whangaroa Returned Services Association |
Member |
May be perceived conflicts |
Should conflict arise, step aside from voting should they apply for funds |
|
National Emergency Management Advisor Committee |
Member |
|
Case by case basis |
|
Te Rūnanga ā Iwi o Ngāpuhi |
Tribal affiliate member |
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 should there appear to be one |
|
Te Rūnanga ā Iwi o Ngāti Hine |
Tribal affiliate member |
Could have a perceived conflict of interest |
Declare a perceived conflict should I determine there is a conflict |
|
Kawakawa Business and Community Association |
Member |
|
Will declare a perceived conflict should there appear to be one |
|
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 |
16 June 2021 |
Assurance, Risk and Finance Committee Meeting
will be held in the Council Chamber, Memorial Avenue, Kaikohe on:
Wednesday 16 June 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
5.1 Far North Holdings Statement of Intent 2021 to 2024
6.1 Council Financial Report for the Period Ending 30 April 2021
6.2 Revenue Recovery Report - 31 March 2021
6.4 People and Capability Quarterly Update: 1 January - 31 March 2021
6.5 Audit New Zealand Management Report for June 2020
7 Te Wāhanga Tūmataiti / Public Excluded
7.1 Confirmation of Previous Minutes
7.2 Audit New Zealand Fraud Questionnaire for Governance - May 2021
8 Karakia Whakamutunga – Closing Prayer
9 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.
16 June 2021 |
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes
File Number: A3217348
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 5 May 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.
1. 2021-05-05
Assurance, Risk and Finance Committee Minutes [A3174779] - A3174779 ⇩
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 |
16 June 2021 |
MINUTES OF Far North District Council
Assurance, Risk and
Finance Committee Meeting
HELD AT THE Council
Chamber, Memorial Avenue, Kaikohe
ON Wednesday, 5 May
2021 AT 1.00
pm
PRESENT: Cr John Vujcich, Member Bruce Robertson, Deputy Mayor Ann Court, Cr Mate Radich (virtually), Cr Kelly Stratford, Cr Moko Tepania, Member Mike Edmonds
IN ATTENDANCE: Shaun Clarke (Chief Executive Officer), William J Taylor, MBE (General Manager Strategic Planning and Policy - Acting), Andy Finch (General Manager Infrastructure and Asset Management), Dean Myburgh (General Manager District Services), Jacine Warmington (General Manager - Corporate Services (Acting), Adele Gardner
1 Karakia TimatAnga – Opening Prayer
Chair Vujcich opened with a karakia.
2 NGā WHAKAPāHA ME NGā PāNGA MEMA / Apologies and Declarations of Interest
Apology |
Resolution 2021/1 Moved: Cr Kelly Stratford Seconded: Cr Moko Tepania That the apology received from His Worship the Mayor, and Cr Rachel Smith be accepted and leave of absence granted. Carried |
3 NGā tONO kŌRERO / Deputation
Nil.
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes Agenda item 4.1 document number A3161100, pages 12 - 17 refers. |
Resolution 2021/2 Moved: Member Mike Edmonds Seconded: Cr John Vujcich 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 with the following amendment: a) remove Kaikohe-Hokianga Community Board Chair title for Mike Edmonds Carried |
4.2 MOTION – SPREAKING RIGHTS FOR Te hiku community board chair adele gardner |
RESOLUTION 2021/26 Moved: Cr John Vujcich Seconded: Member Bruce Robertson That the Assurance, Risk and Finance Committee welcome Adele Gardner and that she be permitted to speak during member debate. Carried |
Agenda item 5.1 document number A3150970, pages 18 – 31 refers. |
Resolution 2021/3 Moved: Member Bruce Robertson Seconded: Cr Kelly Stratford That the Assurance, Risk and Finance Committee receive the report May 2021 Risk Management . Carried |
5.2 Internal Audit and Assurance - Audit Recommendations Register Update Agenda item 5.2 document number A3159230, pages 32 - 37 refers. |
Resolution 2021/4 Moved: Member Bruce Robertson Seconded: Cr John Vujcich That the Assurance, Risk and Finance Committee receive the report Internal Audit and Assurance - Audit Recommendations Register Update. Carried |
5.3 Level of Service KPI Quarter 3 Performance Report Agenda item 5.3 document number A3155141, pages 38 - 60 refers. |
Resolution 2021/5 Moved: Cr Kelly Stratford Seconded: Cr John Vujcich That the Assurance, Risk and Finance Committee receive the Level of Service KPI Quarter 3 Performance Report. Carried |
5.4 Council Financial Report for the Period Ending 31 March 2021 Agenda item 5.4 document number A3156181, pages 61 - 86 refers. |
Resolution 2021/6 Moved: Member Bruce Robertson Seconded: Cr John Vujcich That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 31 March 2021. Carried |
5.5 Elected Member Sensitive Expenditure Agenda item 5.5 document number A3157554, pages 87 - 88 refers. |
Resolution 2021/7 Moved: Member Mike Edmonds Seconded: Cr Moko Tepania That the Assurance, Risk and Finance Committee receive the report Elected Member Sensitive Expenditure. Carried |
5.6 Council Decision Tracking Assessment for the 2020 Calendar Year Agenda item 5.6 document number A3172438, pages 89 - 90 refers. |
Resolution 2021/8 Moved: Cr Kelly Stratford Seconded: Cr John Vujcich That the Assurance, Risk and Finance Committee receive the report Council Decision Tracking Assessment for the 2020 Calendar Year. CARRIED |
6 tE wāHANGA tūMATATI / Public Excluded
RESOLUTION TO EXCLUDE THE PUBLIC
ReSOLUTION 2021/9 Moved: Member Bruce Robertson Seconded: Cr John Vujcich 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 |
CONFIRMATION OF INFORMATION AND DECISIONS IN OPEN MEETING |
Resolution 2021/10 Moved: Cr John Vujcich Seconded: Member Mike Edmonds 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 |
Resolution 2021/11 Moved: Cr John Vujcich Seconded: Member Bruce Robertson That Council moves out of Closed Council into Open Council. Carried |
7 Karakia Whakamutunga – Closing Prayer
Cr. Moko Tepania closed with a karakia.
8 tE kAPINGA hUI / Meeting Close
The meeting closed at 3:14PM.
The minutes of this meeting will be confirmed at the Assurance, Risk and Finance Committee Meeting held on 16 June 2021.
...................................................
CHAIRPERSON
16 June 2021 |
5.1 Far North Holdings Statement of Intent 2021 to 2024
File Number: A3217104
Author: Janice Smith, Chief Financial Officer
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Take Pūrongo / Purpose of the Report
The purpose of this report is to receive the Far North Holdings Limited - Statement of Intent for the period 2021 to 2024
WhakarĀpopoto matua / Executive Summary
· The Schedule 8 (3) of the Local Government Act 2002 requires Far North Holdings Limited to deliver a final Statement of Intent to the Shareholder before the commencement of the financial year to which it relates.
That the Assurance, Risk and Finance Committee receive the report Far North Holdings Statement of Intent 2021 to 2024 |
1) TĀhuhu kŌrero / Background
Far North Holdings Limited delivered a draft Statement of Intent to the Shareholder and this was reviewed at a workshop on the 3rd March. It was intended to have a further workshop before accepting the Statement of Intent but due to the work pressure arising from the Long Term Plan process this has not been possible.
2) matapaki me NgĀ KŌwhiringa / Discussion and Options
It is intended to have a further workshop in July to discuss the Statement of Intent and any additions that Council may require for the coming year. This will include discussions around Asset Management Plans. Climate Change planning and the purpose of Far North Holdings now that the 4 well beings have been re-introduced for Council
Take Tūtohunga / Reason for the recommendation
To accept the Statement of Intent as required by the Local Government Act 2002
3) PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision
There are no specific financial implications arising from this report
1. FNHL
Statement of Intent 2021 to 2024 - A3216368 ⇩
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 |
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 |
Not significant |
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision. |
Schedule 8 (3) of the Local Government Act 2002 |
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought. |
Not applicable |
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. State the possible implications and how this report aligns with Te Tiriti o Waitangi / The Treaty of Waitangi. |
Not applicable |
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). |
Not applicable |
State the financial implications and where budgetary provisions have been made to support this decision. |
No financial budgetary issues |
Chief Financial Officer review. |
The Chief Financial Officer prepared this report |
16 June 2021 |
6.1 Council Financial Report for the Period Ending 30 April 2021
File Number: A3212234
Author: Angie Thomas, Manager - Accounting Services
Authoriser: Janice Smith, Chief Financial Officer
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 30 April 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 30 April 2021. |
TE tĀHUHU KŌRERO / Background
This report provides financial information as at 30 April 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 Apr 2021 (Pd10) ARF FINAL - A3227338 ⇩
2. Capital
completion April 2021 - A3232950 ⇩
16 June 2021 |
6.2 Revenue Recovery Report - 31 March 2021
File Number: A3201566
Author: Margriet Veenstra, Manager - Transaction Services
Authoriser: William J Taylor MBE, General Manager - Corporate Services
TAKE PŪRONGO / Purpose of the Report
WHAKARĀPOPOTO MATUA / Executive SummarY
That the Assurance, Risk and Finance Committee receive the report Revenue Recovery Report - 31 March 2021.
|
tĀHUHU KŌRERO / Background
This information is part of the standing items reported to the Committee on a regular basis.
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
The data provided is for General Title and Maori Freehold Land rates and water accounts with sundry debtors shown in a separate table.
General Title rates and water debt
Key actions since the last report:
· Since the last report, final demand was issued for the properties which had been issued mortgage demand this year. A total of $930,293 has been paid with another $125,877.71 to be paid this month. Debt management have not proceeded with mortgage demand for those properties with arrears for last year only, as Covid-19 has likely impacted the owners financially. We are therefore applying some leniency and are calling owners to offer payment plans to avoid Council issuing mortgage demand in July 2021.
· Further instructions given to external law firm to proceed with additional cases already filed with them and identify property groups to commence abandoned land procedures.
· Approval received for the policy outlining next actions for Council to take post judgment for rates arrears.
Next actions:
· Debt management are calling the owners of the remaining properties with a mortgage, with arrears from 2019-2020 rating year only, to set up payments plans to avoid mortgage demand in July 2021.
· Reports to be provided to 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.
· 38% of these accounts have arrears of more than 2 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%.
· 63% 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, but that was due to an outstanding invoice for over $1m which was since paid on 9 April. The 90+ days resource consent debt has increased since the last report but $89,000 in debt was paid, due to the collaboration between debt management and the resource consents team clearing outstanding fee reviews and queries.
While working closely with the resource consents team to clear the aged debt, debt management have also increased their focus on current resource consent collection which has resulted in an increase of payments within payment terms and reduction of the 30 to 60 days aged debt compared to previous quarters.
Key actions taken to reduce resource consent debt:
· The fee review tracker is in place and updated by both teams.
o 39 reviews have been recorded for a total of $178,370.58
o 28 have been actioned by resource consent team of which;
o 20 accounts ($62,570.22) have now been paid
o 8 have been reviewed ($51,549.89) and debt collection has commenced.
o 11 are being reviewed ($64,250.47)
· Final demand letters issued to debtors with outstanding debt. If no payment is received after the 2nd final demand letter, the debtor will be passed to Council Legal Services team to take legal action.
Next actions:
· Resource consent team to write process for interim invoicing at key stages of a resource consent application to avoid a large final invoice when consent is issued.
· Resource consent team to update the resource consent application confirmation letter to customers, adding an explanation of the payment and invoicing process, plus requirements and responsibilities of the applicant.
· Resource consent team to update the resource consent invoices to give a better overview of charges and fee review objection timeline to reduce queries.
· Council Legal Services Team to review of previous legal opinion that Council is not able to request payment prior to issuing a resource consent by council legal services team.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
1. ARF
Revenue recovery Report March 31 attachment - A3201657 ⇩
Assurance, Risk and Finance Committee Meeting Agenda |
16 June 2021 |
General Title rates and water rates analysis by age at 31 March 2021.
Maori Freehold Land rates and water analysis by age at 31 March 2021.
Sundry Debtors by age at 31 March 2021.
16 June 2021 |
File Number: A3198952
Author: Tanya Reid, Business Improvement Specialist
Authoriser: William J Taylor MBE, General Manager - Corporate Services
TAKE PŪRONGO / Purpose of the Report
To provide an information report on organisational risk management, emergent risk and scheduled risk progress reports for the organisation’s top risks.
WHAKARĀPOPOTO MATUA / Executive SummarY
Risk progress updates are provided for five of the top organisational risks. The risk rating trend for three of these risks has been assessed as declining, one risk trend as stable and one risk trend as increasing.
No new emergent risks have been identified for inclusion in this report.
Risk dashboards have been established for District Services and Infrastructure and Asset Management groups. Business continuity arrangements progress update is provided.
That the Assurance, Risk and Finance Committee receive the report June 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.
Table 1: June 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 |
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 |
June 21 |
||
ARF006 |
Project Priorities Deliveries Delays |
45 |
|
14 |
CEO |
GMIAM |
3 Monthly |
May 21 |
||
ARF007 |
Compliance NRC Abatements |
45 |
|
18 |
CEO |
GMIAM |
6 Monthly |
June 21 |
||
ARF009 |
Customer Service Delivery |
39 |
|
22 |
CEO |
Manager P&C |
3 Monthly |
June 21 |
||
ARF010 |
Data Governance Risks |
39 |
|
14 |
CEO |
CEO |
6 Monthly |
June 21 |
||
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 |
June 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 |
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
Organisational risk management:
The 21 May deep dive focussed on our health and safety vulnerabilities risk. Elected Members were provided with two Worksafe documents – Worksafe’s position on Officers’ due diligence and Worksafe’s Health and Safety Guide: Good Governance for Directors which details recommended practice and provides diagnostic questions. At the session Elected Members requested:
· Improved visibility of health and safety vulnerability treatments which are in place
· Health and safety lessons learned from the Extraordinary Council meeting on May 2021
· Increased frequency of health and safety vulnerabilities deep dives to “look into” our health and safety practices.
Further deep dives are scheduled for the remainder of this calendar year, see Table 2.
Although cybercrime is not specifically mentioned in this risk report, the General Manager-Corporate Services intends to have a standing item on the Assurance, Risk and Finance agenda going forward. This will cover emerging trends in best practice, attempted attacks on FNDC, and experiences and lessons learned from other organisations in New Zealand and overseas.
Emergent risk:
No new emergent risks have been identified for inclusion in this report.
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 |
March 2021 Climate Change deep dive was held.
Proposed to break the climate change into two risks to enable focus on transition risks such as financial and legal.
|
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. An up-date is provided under the group risk section.
|
5. Government’s Three Waters Reform programme: a. establishment of Taumata Arowai b. regulatory reforms as outlined in the Water Services Bill, and c. reform of water delivery services including wastewater and stormwater networks.
|
December 2020 |
Taumata Arowai established March 2021.
Water Services Bill is currently with the select committee. Government report is due 8th June 2021. |
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 New Zealand’s performance of its regulatory functions in relation to activities on Whakaari White Island.
|
February 2021 |
Impact to be considered when further information is to hand. MBIE expects to receive this report by 30 June 2021. |
Organisational risk progress reports:
Five 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 reports – highlights and analysis:
1. ARF005 Delivery of Service (affordability) Risk Progress Report: The inherent risk rating trend has been assessed as increasing due to the economic impact of the COVID-19 pandemic and the outcome from the recent rating review. A decision report will be put to the July 2021 Assurance, Risk and Finance Committee meeting on the formation of an Affordability Risk reference group and a recommendation to commission a new affordability study.
2. ARF007 Compliance NRC Abatements Risk Progress Report: The inherent risk rating trend has been assessed as declining with five of nine abatement notices withdrawn or closed and implementation of the infrastructure compliance strategy.
3. ARF009 Customer Service Delivery Risk Progress Report: The inherent risk rating trend has been assessed as declining. The Customer Experience Improvement Programme is progressing well with a review planned for Q1 2021/22 and Customer Journey Mapping Programme planned to provide an organisation consistent approach.
4. ARF010 Data Governance Risk Progress Report: The inherent risk rating trend has been assessed as declining. An ICT Policy Handbook is being drafted to provide a complete suite of policies, including Data Governance.
5. ARF013 Drinking Water Resilience Risk Progress Report: The inherent risk rating trend has been assessed as stable (no change). The solutions to the identified gaps will become clearer as 3-water reforms become more advanced and with the enactment of the Water Services Bill.
Group Risk:
Risk dashboards have been established for both District Services and IAM. These dashboards provide information on the total number of identified risks; by percentage the number of risks within each group by risk impact score as assessed using our IDEATE methodology categorised as high, medium or low impact score; the level of the risk within Council; and the risk categorisation.
District Services Risk Dashboard |
26 risks ü Three lines defence established |
Date: 18/05/21 |
|
|
|
|
|
|
IAM Group Risk Dashboard |
57 risks ü Three lines defence established |
Date: 18/05/21 |
|
|
Key below, table 4 |
Assurance, Risk and Finance Committee Meeting Agenda |
16 June 2021 |
Risk Description |
Description of category |
Example |
Health Safety & Wellbeing |
A work environment that is without risk to health and safety, so far as is reasonably practicable |
Lone worker vulnerability |
Legal |
Application of the law (and its consequences) to FNDC actions |
Court action |
Operational/Financial |
Whole of business view of FNDC performance including service/services delivery, risk, finance, environmental |
Affordability |
Optimising efficiency |
Managing the present, lineal response to what exists today such as system, Continuous Improvement, process |
Born digital improvements e.g. BCA application |
People and culture |
Capability, mindsets, behaviour |
Disability awareness workshops |
Regulatory and Compliance |
Conforming to rules, external = law or regulation; internal = policies |
Audits |
Reputational |
The external estimation in which FNDC and brand is held |
Customer service delivery |
Strategic |
Adapting to change: Innovation / create the future / selectively forget the past |
Climate change / Affordability |
Progress to refresh Council’s business continuity arrangements:
A business continuity site for all of Council use is in development. This will include the deployment of a smart form to record business continuity plans. ICT Operations and Delivery have been engaged to both understand ICT business continuity plans and to develop ICT arrangements to support the implementation of Council business continuity plans.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
No additional budgetary provision is requested.
1. 2021
06 ARF005 Delivery of Service Risk (affordability) Progress Report - A3198900 ⇩
2. 2021
06 ARF007 Compliance NRC Abatements Risk Progress Report - A3198902 ⇩
3. 2021
06 ARF009 Customer Service Delivery Risk Progress Report - A3198906 ⇩
4. 2021
06 ARF010 Data Governance Risk Progress Report - A3198910 ⇩
5. 2021
06 ARF013 Drinking Water Resilience Risk Progress Report - A3198914 ⇩
16 June 2021 |
6.4 People and Capability Quarterly Update: 1 January - 31 March 2021
File Number: A3211089
Author: Jill Coyle, Manager - People and Capability
Authoriser: Shaun Clarke, Chief Executive Officer
TAKE PŪRONGO / Purpose of the Report
The purpose of this report is to present the Audit, Risk and Finance Committee with the quarterly update for People and Capability.
WHAKARĀPOPOTO MATUA / Executive SummarY
Included in the report is information on:
- Staff Turnover.
- Exit Interviews and Analysis.
- Personal Grievances; and
- Disciplinary Actions and Costs.
That the Assurance, Risk and Finance Committee receive the report People and Capability Quarterly Update: 1 January - 31 March 2021.
|
tĀHUHU KŌRERO / Background
This report will be presented to the Audit, Risk and Finance Committee on a quarterly basis.
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
Staff Turnover:
FNDC had six permanent staff and one fixed term staff depart between 1 Jan – 31 March 2021, therefore for this period turnover is 2.09%. Of the 7 leavers, 4 completed and submitted an exit survey.
Exit Interview and Analysis:
Of the seven leavers during this period, four completed and submitted an Exit Survey. The Exit Surveys were reviewed and raised no Health, Safety and Welfare concerns. One person retired, while the remaining three had secured other positions.
Personal Grievances:
No personal grievances for this period.
Disciplinary Actions and Costs:
During this period there have been five instances referred for disciplinary action, two of which after investigation resulted in no action, one received an extension to a PIP (Performance Improvement Plan) with the final two receiving managed exits.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
There are no financial implications or budgetary provisions associated with this report.
Nil
16 June 2021 |
6.5 Audit New Zealand Management Report for June 2020
File Number: A3209230
Author: Janice Smith, Chief Financial Officer
Authoriser: William J Taylor MBE, General Manager - Corporate Services
TAKE PŪRONGO / Purpose of the Report
To advise the Committee of the recommendations made by Audit New Zealand on the audit for June 2020
WHAKARĀPOPOTO MATUA / Executive SummarY
At the completion of each annual audit, Audit New Zealand issue a management report to Council in which they identify recommendations for action by staff.
In the attached report, there are 5 recommendations that are identified as “necessary”.
None of the issues are critical to the operation of Council and staff have provided commentary that identifies actions for each one.
That the Assurance, Risk and Finance Committee receive the report Audit New Zealand Management Report for June 2020.
|
tĀHUHU KŌRERO / Background
At the end of each financial year, Council prepares an Annual Report in accordance with the requirements of the Local Government Act 2002. The Annual Report and supporting information is audited each year by Audit New Zealand. The outcome of the audit is a report to management that identifies any issues that require attention.
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
The Management report for the audit for the financial year ended 30 June 2020 is attached. The report identifies 5 areas with recommendations that audit view as necessary. These are as follows:
The definition of “necessary” is as follows:
Address at the earliest reasonable opportunity, generally within six months
These recommendations relate to deficiencies that need to be addressed to meet expected standards of best practice. These include any control weakness that could undermine the system of internal control.
Staff have provided a response to all 5 issues within the body of the report and none are seen as critical to the operation of the organisation.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
The are no financial implications associated with this report.
1. FNDC
20J final Report to Governors ARF June 2020 - A3216667 ⇩
16 June 2021 |
7 Te Wāhanga Tūmataiti / Public Excluded
RESOLUTION TO EXCLUDE THE PUBLIC