Te Kaunihera o Tai Tokerau ki te Raki
AGENDA
Assurance, Risk and Finance Committee Meeting
Wednesday, 8 September 2021
Time: |
1.30 pm |
Location: |
Virtually via Microsoft Teams |
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 |
|
Adele Gardner |
N/A - FNDC Honorarium |
|
|
|
Te Hiku Education Trust |
Trustee |
|
|
|
Te Ahu Charitable Trust |
Trustee |
|
|
|
ST Johns Kaitaia Branch |
Trustee/ Committee Member |
|
|
|
Te Hiku Sports Hub |
|
|
|
|
I know many FNDC staff members as I was an FNDC staff member from 1994- 2008 |
|
|
|
|
Partner of Adele Gardner |
N/A as Retired |
|
|
|
Assurance, Risk and Finance Committee Meeting Agenda |
8 September 2021 |
Assurance, Risk and Finance Committee Meeting
will be held virtually via Microsoft Teams on:
Wednesday 8 September 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 Investment of Returned GST Funds 30 June 2021
5.2 Emergent risk, Programme Darwin
6.1 September 2021 Risk Management Report
6.2 Risk progress report for programme of externally funded projects.
6.3 Council Financial Report for the Period Ending 31 July 2021
6.4 Elected Members Sensitive Expenditure
6.5 People and Capability Quarterly Update: 1 April - 30 June 2021
6.6 Assurance, Risk and Finance Committee Action Sheet Update August 2021
7 Te Wāhanga Tūmataiti / Public Excluded
7.1 Confirmation of Previous Minutes
7.2 Draft Annual Report Financial position 30 June 2021
7.3 September Assurance and Audit Report
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.
8 September 2021 |
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes
File Number: A3051544
Author: Casey Gannon, Meetings Administrator
Authoriser: Aisha Huriwai, Team Leader Democracy Services
Purpose of the Report
The minutes are attached to allow the Committee to confirm that the minutes are a true and correct record of previous meetings.
That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 21 July 2021 as a true and correct record. |
1) Background
Local Government Act 2002 Schedule 7 Section 28 states that a local authority must keep minutes of its proceedings. The minutes of these proceedings duly entered and authenticated as prescribed by a local authority are prima facie evidence of those meetings.
2) Discussion and Options
The minutes of the meetings are attached.
Far North District Council Standing Orders Section 27.3 states that no discussion shall arise on the substance of the minutes in any succeeding meeting, except as to their correctness.
Reason for the recommendation
The reason for the recommendation is to confirm the minutes are a true and correct record of the previous meetings.
3) Financial Implications and Budgetary Provision
There are no financial implications or the need for budgetary provision as a result of this report.
1. 2021-07-21 Assurance, Risk and Finance Committee Minutes - A3278239 ⇩
Compliance schedule:
Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:
1. A Local authority must, in the course of the decision-making process,
a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and
b) Assess the options in terms of their advantages and disadvantages; and
c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.
2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.
Compliance requirement |
Staff assessment |
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy |
This is a matter of low significance. |
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision. |
This report complies with the Local Government Act 2002 Schedule 7 Section 28. |
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought. |
It is the responsibility of each meeting to confirm their minutes therefore the views of another meeting are not relevant. |
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water. |
There are no implications for Māori in confirming minutes from a previous meeting. Any implications on Māori arising from matters included in meeting minutes should be considered as part of the relevant report. |
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example, youth, the aged and those with disabilities). |
This report is asking for minutes to be confirmed as true and correct record, any interests that affect other people should be considered as part of the individual reports. |
State the financial implications and where budgetary provisions have been made to support this decision. |
There are no financial implications or the need for budgetary provision arising from this report. |
Chief Financial Officer review. |
The Chief Financial Officer has not reviewed this report. |
Assurance, Risk and Finance Committee Meeting Agenda |
8 September 2021 |
MINUTES OF Far North District Council
Assurance, Risk and Finance Committee
Meeting
HELD AT THE Council Chamber, Memorial
Avenue, Kaikohe
ON Wednesday, 21 July 2021 AT 1.30 pm
PRESENT: Chairperson John Vujcich, Deputy Chairperson Bruce Robertson, Deputy Mayor Ann Court, Cr Mate Radich (via Microsoft Teams), Cr Rachel Smith, Cr Kelly Stratford, Member Mike Edmonds, Member Adele Gardner
STAFF PRESENT: Shaun Clarke (Chief Executive Officer), William J Taylor, MBE (General Manager Corporate Services), Dean Myburgh (General Manager District Services), Andy Finch (General Manager Infrastructure and Asset Management), Darren Edwards (General Manager Strategic Planning and Policy)
1 Karakia TimatAnga – Opening Prayer
Chairperson John Vujcich opened the meeting and opened with a karakia.
2 NGā WHAKAPāHA ME NGā PāNGA MEMA / Apologies and Declarations of Interest
Apology |
Resolution 2021/11 Moved: Chairperson John Vujcich Seconded: Cr Rachel Smith That the apology received from His Worship the Mayor and Councillor Moko Tepania be accepted and leave of absence granted. Carried |
3 NGā tONO kŌRERO / Deputation
Nil.
4 Confirmation of Previous Minutes
Agenda item 5.1 document number A3275485, pages 12 - 18 refers.
Resolution 2021/12 Moved: Deputy Chairperson Bruce Robertson Seconded: Member Adele Gardner That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 16 June 2021 as a true and correct record. Carried |
5.1 Audit New Zealand Documentation For The Year Ended 30 June 2021 Agenda item 5.1 document number A3275485, pages 19 - 51 refers. |
Resolution 2021/13 Moved: Cr Kelly Stratford Seconded: Chairperson John Vujcich That the Assurance, Risk and Finance Committee: a) receive the audit documents i) Audit Proposal Letter for the June 2021 and 2022 Financial Years; ii) Audit Plan for the Year Ended 30 June 2021; and, b) approve the CEO and Mayor signing the documents on behalf of Council as appropriate. Carried |
At 1:50 pm, Cr Kelly Stratford left the meeting. At 1:52 pm, Cr Kelly Stratford returned to the meeting.
5.2 Far North Holdings Management Accounts QUARTER 3 2021 Agenda item 5.2 document number A3274408, pages 52 - 62 refers. |
Resolution 2021/14 Moved: Deputy Chairperson Bruce Robertson Seconded: Cr Kelly Stratford That the Assurance, Risk and Finance Committee receive the report Far North Holdings Management Accounts Quarter 3 2021. Carried |
6.1 July Risk Management Report Agenda item 6.1 document number A3264780, pages 63 - 79 refers. |
Resolution 2021/15 Moved: Cr Rachel Smith Seconded: Deputy Chairperson Bruce Robertson That the Assurance, Risk and Finance Committee receive the report July Risk Management Report. Carried |
6.2 Council Financial Report for the Period Ending 31 May 2021 Agenda item 6.2 document number A3270005, pages 80 - 107 refers. |
Resolution 2021/16 Moved: Chairperson John Vujcich Seconded: Deputy Chairperson Bruce Robertson That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 31 May 2021. Carried |
6.3 Revenue recovery report as at 30 June 2021 Agenda item 6.3 document number A3277137, pages 108 - 112 refers. |
Resolution 2021/17 Moved: Chairperson John Vujcich Seconded: Cr Kelly Stratford That the Assurance, Risk and Finance Committee receive the report Revenue Recovery Report as at 30 June 2021. Carried |
6.4 Action Sheet Update |
Resolution 2021/18 Moved: Chairperson John Vujcich Seconded: Deputy Chairperson Bruce Robertson That the Assurance, Risk and Finance Committee receive the report Action Sheet Update July 2021. Carried |
7 tE wāHANGA tūMATATI / Public Excluded
RESOLUTION TO EXCLUDE THE PUBLIC
Resolution 2021/19 Moved: Deputy Chairperson Bruce Robertson Seconded: Cr Kelly Stratford That the public be excluded from the following parts of the proceedings of this meeting. The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
Carried |
Confirmation of Information and Decisions to be released in Public |
Resolution 2021/21 Moved: Chairperson John Vujcich Seconded: Cr Kelly Stratford That Assurance, Risk and Finance Committee confirms the information and decisions contained in the part of the meeting held with public excluded remain in public exclusion. Carried |
Resolution to Readmit the Public |
Resolution 2021/22 Moved: Chairperson John Vujcich Seconded: Cr Rachel Smith That the Assurance, Risk and Finance Committee moves out of Public Excluded Committee and into Open committee meeting. Carried |
8 Karakia Whakamutunga – Closing Prayer
Councillor Smith closed the meeting with a karakia.
9 tE kAPINGA hUI / Meeting Close
The meeting closed at 3:15 pm.
The minutes of this meeting will be confirmed at the Assurance, Risk and Finance Committee Meeting held on 8 September 2021.
...................................................
CHAIRPERSON
5.1 Investment of Returned GST Funds 30 June 2021
File Number: A3338916
Author: Janice Smith, Chief Financial Officer
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Take Pūrongo / Purpose of the Report
To seek approval to invest the GST refund received in August 2021 because of the Local Government (Rating) Act 2002 write off adjustments.
WhakarĀpopoto matua / Executive Summary
· In April 2021, the Local Government (Rating) Act 2002 (the Act) was amended to make unused/unoccupied Māori Freehold Land not rateable.
· The Act also provided the power for the Chief Executive to write off amounts that were unrecoverable.
· A total of $14,539,782 was written off Māori Freehold Land rate accounts in relation to these changes and that has resulted in an unplanned refund of GST.
That the Assurance, Risk and Finance Committee approve: a) The investment of $1,960,702 in term deposits with the ASB Bank; b) The revolving investment period be determined by the Chief Financial Officer based on the available rates; and c) The funds remain invested and funds accumulated to repay underlying debt over time. |
1) TĀhuhu kŌrero / Background
In April 2021 the Rating of Whenua Māori Amendment Bill was given Royal Assent.
This introduced new requirements into the Local Government (Rating) Act 2002 that required Council to make land that was unused and unoccupied, non-rateable from 1 July 2021.
Staff identified accounts that were currently under remission as well as those that had an improvement value of $15,000 or less as being the accounts to which this would apply.
A new section of the Act related to the power for the Chief Executive to write off arrears that were deemed uncollectible.
2) matapaki me NgĀ KŌwhiringa / Discussion and Options
The rate accounts to which to new provisions applied were identified as follows:
1. Accounts that were already receiving remission under the Māori Freehold Land unused/unoccupied land policy.
2. Accounts that had an improvement value of $15,000 or less as this was deemed to identify there might only be fencing or sheds on the land.
3. CE initiated write offs were applied to Māori Freehold Land accounts were there were arrears prior to 1 July 2018 and the account had previously had statute barred rates.
The overall value of the write offs as at 30 June 2021 was $14,539,782. This sum included penalties which are not subject to GST.
The previous legal position in relation to the write off of rates was that the values had to remain uncollected for 6 years at which point they became statute barred. It was at this point that Council could reclaim the GST paid on the rates charged.
The above changes to the Act resulted in early write off of uncollectible amounts which in turn resulted in an unplanned refund of GST of $1,960,702
In recent years, Council has maintained an “under lying” debt position of around $46m. This can be partly attributed to outstanding rate debtors over time. As amounts identified above have now been written off it is recommended that the “windfall” return of GST be invested to earn interest over time and that the accumulated sum be used to repay underlying debt.
Take Tūtohunga / Reason for the recommendation
To seek approval to create an underlying investment from which Council could repay underlying debt over time.
3) PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision
There are no specific financial implications as the GST refund has not been factored into the budgets.
Nil
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 |
Low |
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision. |
IRD rules for GST; Local Government (Rating) Act 2002, Council rating relief policies |
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought. |
The Community Board views have not been sought as this is a district wide issue |
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. |
The accounts to which the adjustments have been made are all Māori Freehold Land accounts |
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. |
There are no specific financial implications |
Chief Financial Officer review. |
The Chief Financial Officer prepared this report |
5.2 Emergent risk, Programme Darwin
File Number: A3326782
Author: Tanya Reid, Business Improvement Specialist
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Take Pūrongo / Purpose of the Report
WhakarĀpopoto matua / Executive Summary
The Risk Management Policy requires the reporting of:
· emerging, changing and decreasing risks of potential impact to the achievement of Council objectives; and
· to escalate in a timely manner any risk management issues or concerns when they arise.
A Programme Darwin risk has been identified as an emerging risk leading to this report recommendation for inclusion of the risk on the Organisational Top Risks Dashboard.
Addition of this emerging risk on to the Organisational Top Risks Dashboard will enable governance focus.
That the Assurance, Risk and Finance Committee approves the addition of the “Programme Darwin” risk onto the Organisational Top Risks Dashboard. |
1) TĀhuhu kŌrero / Background
Darwin is a programme of work designed to deliver:
· Accurate, complete asset data that is controlled and maintained by FNDC
· Robust analysis on this data that enables better long-term infrastructure decisions and delivers better value for money
· Clear asset management hierarchy, with the links between strategic and operational asset management defined
· Commitment horizontally – Planning, engineering, finance, strategy, project management, and vertically – Strategic Leadership Team, third tier Managers, Officers; to partner in continuing to develop our capability, capacity, and commitment in asset management
· An accurate data set allowing trade-offs to be determined with confidence so that the best value whole-of-life strategies can be developed, using real-time data
· The asset management IT system, Infor Public Sector Suite (IPS Suite), is fully integrated with all other FNDC and Alliance Partner systems enabling easy information sharing, analysis, and ultimately better information to inform decisions
· A higher level of asset management competence within existing staff, and growing a pipeline of asset management talent
· A culture of continuous development to be agile enough to flex to changing asset management requirements.
On 14th June 2021, a programme Darwin risk workshop was held. The workshop was attended by a cross functional group of subject matter experts including the programme Darwin team. The following risk was identified then scored and categorised at the workshop.
Because of the programme Darwin complexity - long timeline, partially defined programme scope; and the need to be agile, to respond to our changing environment (i.e. physical, technological, regulatory, economic) there is a chance that the programme will not be successfully delivered, leading to poor community outcomes.
This risk was scored, to prioritise, using the FNDC IDEATE methodology which assessed this risk against the defined risk categories and risk tolerances. Further the risk impact was categorised as both organisational and strategic.
In accordance with our Risk Management Policy, adopted by Council August 2019, the “Programme Darwin” risk has been identified as an emerging risk.
It is worth noting that Programme Darwin also impacts the management and treatment of several organisational risks, namely ARF001 Climate Change, ARF004 Asset Management, ARF005 Affordability, ARF010 Data Governance and ARF013 Drinking Water Resilience. The District Plan Team is also reliant on asset management information to inform district planning decisions.
2) matapaki me NgĀ KŌwhiringa / Discussion and Options
The “Programme Darwin” risk has been analysed as an organisational and strategic risk. The score of 35 puts this risk in the high-risk category. Using the organisational risk and likelihood statements the Programme Darwin inherent risk impact score is calculated as follows:
1. Finance category, 9: Impact is high (≥ 0.3% rates increase); likelihood is will happen (the risk is likely to occur and there is frequent exposure to this risk)
2. FNDC Customer category, 9: Impact is high (potential loss of essential service and cost to customer); likelihood is will happen (the risk is likely to occur and there is frequent exposure to this risk)
3. Reputational category, 9: Impact is high (loss of national trust and confidence, 2-5 years to re-establish); likelihood is will happen (the risk is likely to occur and there is frequent exposure to this risk)
4. Compliance / Legal, 7: Impact is medium (we are challenged and found to be non-compliant with fines or penalties <$500,000); likelihood is will happen (the risk is likely to occur and there is frequent exposure to this risk)
5. Health & Safety, 1: Impact is low (no health and safety risk has been identified); likelihood is unlikely (risk is unlikely to occur).
The full Organisational Risk Impact and Likelihood Statements are provided in the appendix.
Table 1: “Programme Darwin” risk inherent risk impact score using the organisational risk and likelihood statements:
|
Financial |
Customer |
Reputational |
Compliance/Legal |
Health and Safety |
||||||||||
High - Intolerable |
|
|
x |
|
|
x |
|
|
x |
|
|
|
|
|
|
Medium |
|
|
|
|
|
|
|
|
|
|
|
x |
|
|
|
Low- none |
|
|
|
|
|
|
|
|
|
|
|
|
x |
|
|
|
Unlikely |
Probable |
Will Happen |
Unlikely |
Probable |
Will Happen |
Unlikely |
Probable |
Will Happen |
Unlikely |
Probable |
Will Happen |
Unlikely |
Probable |
Will Happen |
The likelihood of the “Programme Darwin” risk materialising has been assessed as “will happen.”
Three treatments (see table 4) have been identified, and work on these treatments is already in progress. The impact (to the risk) of implementation of the identified treatments has been assessed. The residual risk impact is expected to decrease in the financial, customer, reputational and compliance pillars; and likelihood of the impacts materialising in these pillars is expected to decrease for the customer, reputational and compliance pillars. No change is expected to Health & Safety.
Overall, the expected residual risk will decrease to 13 (see table 3), with the likelihood of the risk materialising estimated to be probable (the risk will possibly occur once in every two years).
Table 2: Risk map as assessed August 2021 identifying inherent risk profile and expected residual profile.
|
Total Risk |
||
High - Intolerable |
|
|
X |
Medium |
|
|
|
Low- none |
|
R |
|
|
Unlikely |
Probable |
Will Happen |
Table 3: Expected change to the risk impact score using the organisational risk and likelihood statements:
|
Financial |
Customer |
Reputational |
Compliance/Legal |
Health and Safety |
||||||||||
High - Intolerable |
|
|
x |
|
|
x |
|
|
x |
|
|
|
|
|
|
Medium |
|
|
R |
|
|
|
|
|
|
|
|
x |
|
|
|
Low- none |
|
|
|
R |
|
|
R |
|
|
|
R |
|
x |
|
|
|
Unlikely |
Probable |
Will Happen |
Unlikely |
Probable |
Will Happen |
Unlikely |
Probable |
Will Happen |
Unlikely |
Probable |
Will Happen |
Unlikely |
Probable |
Will Happen |
Table 4: High level treatment plans and progress up-date:
High level treatment plan: |
Progress update: |
Identify the gaps in the programme resourcing, processes (e.g. Business Requirements Specification), Scoping, Impact Analysis, Costing, Scheduling, etc., for the various programme workstreams. |
Planning workshop initiated to identify gaps in programme approach and scope. |
The recently updated Darwin stakeholder register will serve as a reference for engagement strategies to particular stakeholder groups. |
The Programme Manager is drafting a business case to seek budget for the appointment of a Stakeholder Workstream Lead (12 months appointment), Process Workstream Lead (12-month appointment) and business analysis (six month appointment). |
The updated stakeholder register will serve as a reference for communication strategies and plans to respective stakeholder groups. |
The PMO has agreed to allow Andy Dowdle to lead the Change Management and Communication workstream. |
Two further linked IAM Group risks have been identified (see table 5). The treatment of each of the three risks are interlinked.
Table 5: Linked Programme Darwin risk statements from Infrastructure and Asset Management Group Risk Register:
Group / SLT |
Risk level |
Inherent Risk |
Risk description |
Because of |
There is a chance that… |
leading to… |
|
IAM |
Group |
31 |
Operational/Financial |
A lack of clear messages |
Stakeholders do not know why we are doing Programme Darwin |
Disengagement and risking the delivery of Programme Darwin |
|
IAM |
Group |
13 |
People and culture |
Ad hoc communication |
We are not communicating the right thing to the right people |
Confusion and poor engagement |
The benefits of adding this risk to the Organisational Top Risks Dashboard are:
· Governance focus to support Council achieving their objectives,
· Regular risk update reporting to the Assurance, Risk and Audit Committee with status and details of the treatment plans being implemented; and
· Deep dive risk workshop(s).
Effective risk management decreases either the probability of risks occurring and/or the impact if the risk does occur. By developing and implementing effective treatment plans we expect to both decrease the probability and impact of these risks.
Two options are proposed
1. Maintain the status quo with the Programme Darwin risk on the Infrastructure and Asset Management Group Risk Register
2. Add the Programme Darwin risk as ARF014 Programme Darwin to the Organisational Top Risks Dashboard, with three monthly risk progress reports, to ensure governance and that we address the questions – where are the gaps and what more could we be doing?
Take Tūtohunga / Reason for the recommendation
To ensure governance, at the appropriate level, our recommend option is option two as Programme Darwin is an organisational high impact strategic risk.
3) PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision
No immediate additional budgetary provision. However, the treatment plan does identify the need for additional resources to support workstream leads and business analyst to support the implementation of the programme. The business case will identify whether existing budgets can absorb these costs or whether additional budget will be necessary.
1. 2019 10 Simplified Organisational Risk Categories with Impact and Likelihood Statements - A3326855 ⇩
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 |
The recommendation in this report does not meet the thresholds as per the Council’s significance and engagement policy. |
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision. |
Risk Management Policy. |
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought. |
None |
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water. State the possible implications and how this report aligns with Te Tiriti o Waitangi / The Treaty of Waitangi. |
The recommendation in this report does not have any direct implications for Māori. |
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example – youth, the aged and those with disabilities). |
There are no affected or interested parties to this recommendation. |
State the financial implications and where budgetary provisions have been made to support this decision. |
There is no financial implication or request for budgetary provision. |
Chief Financial Officer review. |
The Chief Financial Officer has reviewed this report. |
8 September 2021 |
6.1 September 2021 Risk Management Report
File Number: A3339293
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.
No decision is required.
WHAKARĀPOPOTO MATUA / Executive SummarY
Risk progress updates are provided for four of the top organisational risks. The risk rating trend for two of these risks has been assessed as stable, one as decreasing and one risk trend as increasing.
Additionally, the Assurance, Risk and Finance Committee agenda includes an information risk progress report on the externally funded project risks.
One new emergent risk has been identified. As an organisational and strategic risk, the “Programme Darwin” risk is subject of a separate decision report.
That the Assurance, Risk and Finance Committee receive the report September 2021 Risk Management Report. |
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.
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
Table 1: July 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 |
Sep 21 |
||
ARF003 |
Health & Safety Vulnerabilities |
46 |
|
34 |
CEO |
Manager P&C |
3 Monthly |
July 21 |
||
ARF004 |
Asset Management Risks |
45 |
|
18 |
CEO |
GMIAM |
6 Monthly |
Sep 21 |
||
ARF005 |
Affordability Risk |
45 |
|
26 |
CEO |
GMSPP |
6 Monthly |
June 21 |
||
ARF006 |
Project Priorities Deliveries Delays |
45 |
|
14 |
CEO |
GMIAM |
3 Monthly |
July 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 |
Sep 21 |
||
ARF010 |
Data Governance Risks |
39 |
|
14 |
CEO |
CEO |
6 Monthly |
June 21 |
||
ARF012 |
Contract Management Risks |
39 |
|
14 |
CEO |
GMIAM |
3 Monthly |
July 21 |
||
ARF013 |
Drinking Water Resilience |
35 |
|
ARF to agree level residual risk |
CEO |
GMIAM |
3 Monthly |
Sep 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 |
ARF003 |
ARF004 |
ARF006 |
ARF005 |
|
||||||||
ARF001 Climate Change |
|
ü |
|
|
|
ü |
|
|
ARF003 Health & Safety Vulnerabilities |
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 |
Organisational risk management
At Elected Members request, the July 2021 deep dive was replaced with a health and safety vulnerabilities deep dive, to share the results of a recent internal Great Workplaces Wellbeing survey which investigates how our new way of working (including the hybrid operating model) has affected our people’s wellbeing.
Further deep dives are scheduled for the remainder of this calendar year, see Table 2.
Emergent risk:
Additional to this risk management report the agenda includes a decision report seeking approval to include the organisational and strategic emerging risk, “Programme Darwin”, on the Organisational Top Risks Dashboard.
Table 3: Table of identified emergent risk
Emergent risks |
Presented to ARF: |
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, September 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. See attached climate change risk progress report. |
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. |
December 2020 |
The Government has announced an integrated package of reform proposals (four new, large water service delivery entities) together with a financial support package. Council has to 1 October, to complete analysis to understand the potential impact of the reform. |
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. To date no report has been made public. |
Organisational risk progress reports:
Four 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.
Risk progress reports – highlights and analysis:
1. ARF001 Climate Change Risk Progress Risk Progress Report: The inherent risk rating trend has been assessed as increasing. Terms of reference for the Climate Change risk reference group have been drafted. The kickoff meeting for this group is scheduled for 18 August with the executive sponsor, GM SPP.
2. ARF004 Asset Management Risk Progress Report: The inherent risk rating trend has been assessed as stable. While progress is being made to treat this risk the inherent risk profile has not changed due to delays in the implementation of the proposed treatments.
3. ARF009 Customer Service Delivery Risk Progress Report: The inherent risk rating trend has been assessed as declining. A recent change has been made to the programme reporting lines, from People & Capability to the Transformation & Assurance Team, to align transformation workstreams to enhance value delivered.
4. ARF013 Drinking Water Resilience Risk Progress Report: The inherent risk rating trend has been assessed as stable. The DIA funded work on the Water Safety Plans remains scheduled to be completed by 31 March 2022. This work will be used to inform and develop the residual risk profile.
An information report, to provide a risk progress up-date on the programme of externally funded projects, has been included on the agenda. Council secured external project funds as a part of the government’s economic response to the COVID-19 pandemic. The goal of this funding is to provide economic stimulus and employment opportunity within the Far North District. Four externally funded project risks were identified. Most mitigations are implemented.
No further additional reporting requirement for the top organisational risks has been identified.
Group Risk Up-date
1. IAM NTA risk assessment
On 19 July 2021, the IAM managers met with NTA representatives to review risk governance. This meeting focussed on NTA specific risks. Two NTA specific risks have been identified, neither of which have met the threshold for escalating onto the organisational risk dashboard. Both risks are in the operational / financial category (the whole of business view of FNDC performance including service/services delivery, risk, finance, environmental) with a medium risk impact score of 25 and 23 respectively.
One of these risks speaks to the current national land transport fund constraints. This is subject to a “risk watch” as the full impact of fund constraints are yet to be quantified, that is the data baseline for this risk is changing and is outside of the control of Council. For instance, to date the NTA has presented, or will present, to the Tender Panel a total of $8,125,000 of physical works co-funded by Waka Kotahi NZTA without security of this funding.
NTA have also raised an issue with retaining staff on visas. This issue has been escalated to People & Capability for their guidance.
2. A Programme Darwin risk workshop was held with the Programme Darwin team and key stakeholders. Three organisational risks (IAM062/063/064) were identified, assigned owners and a cause and effect analysis completed. This is subject to a separate decision report.
3. District Services have established a one-page report, “Group Risk Summary”. This management tool is up-dated monthly.
4. Group Risk dashboards
The dashboards provide information on:
· the total number of identified risks;
· the percentage of risks assessed categorised as high, medium or low impact score;
· the level of the risk within Council (Department, Group or Organisation level risk); and
· the risk description by category (see Table 4):
o Health, Safety & Wellbeing
o Legal
o Operational / Financial
o Optimising efficiency
o People and culture
o Regulatory and Compliance
o Reputational / Strategic.
|
Group Risk Dashboards |
|
|
|
|
District Services Risk Dashboard |
24 risks ü Three lines defence established |
Date: 09/08/21 |
|
|
|
IAM Group Risk Dashboard |
31 risks ü Three lines defence established |
Date: 09/08/21 |
Assurance, Risk and Finance Committee Meeting Agenda |
8 September 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:
District Services recently completed a successful business continuity exercise to test their preparedness and BCP’s. This exercise culminated with “lessons learned” and an improvement action plan.
A roadmap, to review Strategic Planning and Policy Group business continuity arrangements, is to be drafted late August.
Financial Implications and Budgetary Provision
No additional budgetary provision is requested.
1. 2021 08 ARF001 Climate Change Risk Progress Report - A3339043 ⇩
2. 2021 08 ARF004 Asset Management Risk Progress Report - A3334563 ⇩
3. 2021 08 ARF009 Customer Service Delivery Risk Progress Report - A3335459 ⇩
4. 2021 08 ARF013 Drinking Water Resilience Risk Progress Report - A3334562 ⇩
File Number: A3333582
Author: Tanya Reid, Business Improvement Specialist
Authoriser: William J Taylor MBE, General Manager - Corporate Services
TAKE PŪRONGO / Purpose of the Report
To provide a risk progress report on the risks associated with the programme of the externally funded “shovel ready” projects that form part of the Government’s economic response to the COVID-19 pandemic. No decision is required.
WHAKARĀPOPOTO MATUA / Executive SummarY
As a part of the current government’s economic response to the COVID-19 pandemic Council, and the Far North District, have secured external project funds. The goal of this funding is to provide economic stimulus and employment opportunity within the Far North District.
This risk progress report provides an update to inform the Assurance, Risk and Finance Committee, in their governance role, how we are managing the uncertainty associated this programme of the externally funded projects.
That the Assurance, Risk and Finance Committee receive the report Risk progress report for programme of externally funded projects.. |
tĀHUHU KŌRERO / Background
As part of the government response to the expected negative economic impact of the COVID-19 pandemic, central government provided a number of infrastructure funds to stimulate the economy. Council bid, and won, funding for a programme of “externally funded” projects. (These projects are also known as “ESEO” (economic stimulus, employment opportunity) projects and for clarity will be referred to, within this report, as externally funded.
Two programmes of work, by request of the CEO, have recently been added to programme of “externally funded” projects. These are:
1. NAX Kawakawa to Opua Rail restoration with Council funded cycle trail; and
2. Lindvart Park Sports Hub
By funding agreement projects Council is delivering:
3. Te Hiku Revitalisation
4. Waipapa Sports Hub
5. Kerikeri Domain
6. Innovating streets:
a. Kawakawa safety and streetscape improvement
b. Tai Tokerau Kaikohe Safe Streets
c. Moerewa Safe Streets
7. Otiria Rugby Club
8. Strategic Roads – Priority 1 Routes (Ngapipito Rd & Peria Rd) to provide supplementary tarmacked routes for logging and agricultural trucks
9. Ruapekapeka roading upgrade
10. NAX Kawakawa to Opua Rail restoration with Council funded cycle trail
11. Lindvart Park Sports Hub
The characteristics of these externally funded projects are:
· that they are either wholly, or partially, externally funded
· may involve multiple funding streams
· with different funding requirements and conditions
· have multiple stakeholders, who may also be the project lead
· have short milestone timelines associated with the delivery of the projects the funding is intended for.
Four externally funded project risks were identified and presented to the Assurance, Risk and Finance Committee in October 2020. These risks are (see table 1 for a full description):
1. Complexity external funding
2. Funding gap
3. Impact on rates
4. Disruptions
These four risks are classified as organisational risks in the Operational/Financial category (whole of business view of FNDC performance including service/services delivery, risk, finance, environmental). Organisational risks may impact on council achieving its vision, mission and community outcomes. Each of the risks has been assessed as medium impact and likely to occur. The risks are recorded in the IAMs Risk Register where Treatment owners and progress is also recorded.
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
This risk progress information report provides a high level risk update in four parts:
A. Treatment progress by risk
B. Reporting
C. High level organisational risk assessment against each of the funding agreements
D. Progress on achieving Government’s overarching goals
A range of treatments, for each of the four externally funded project risks, have been implemented. Most of these risks are now fully mitigated. A summary is provided in table 1, below:
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
Table 1: Externally funded project risks statements, treatments and status of progress:
|
Score |
Because of …. |
There is a chance that…. |
Leading to…. |
Treatments: |
1 Complexity external funding |
29 |
The high level of complexity of the ESEO externally funded FNDC led projects: · short timelines to complete CAPEX projects · multiple funding pots · multiple external parties/stakeholders involved · different funding requirements · different external parties can be leading the projects e.g. FNHL
|
Projects may not proceed, may be delayed or not completed. |
Loss of funding; Reputational risk; Uncompleted projects; Legal / compliance disputes; Extended timelines; and/or Requirement for additional FNDC funding. |
In place: Central register capturing key governance and management information. In place: Establish Programme Steering Group. In place: Utilise project management methodology with risk analysis. Completed: Appoint professionally qualified project managers; In place: Using standard Council procurement strategy. Completed: Contractor engagement/information workshop held In place: Separate team to deliver the externally funded projects. In place: consultation plan and process for all projects. In place: Council approved amendments to FNDC process |
2 Funding gap |
29 |
Projects are not fully funded, or funding agreements are not honoured or able to be honoured by the legal entities who sign the funding agreements with Government. |
Council may need to find additional funding to complete projects or projects may be abandoned |
Council’s reputational damage; Increased borrowing to fund; Funding re-allocated from planned work; so annual plan objectives are not met; Increase risk to Council of asset failures; and/or Council has white elephants on the books. |
Completed: Review project funding commitments mid-September before. Completed: As the funding applicant understand Council’s obligations to funding providers; In place: Elected Member engagement strategy; monthly reporting into MBIE and discussions both local and in Wellington. In place: Funding agreements are in place for all projects we are in control of. |
3 Impact on rates |
25 |
Impact to long term rate payer funding requirements due to operational budget requirements / depreciation and upgrading of new assets.
|
There may be a need to increase rates to fund OPEX, depreciation and CAPEX requirements
|
Additional costs to rate payers (as increased rates) impacting affordability across the district and negatively impacting current growth forecasts. |
Completed: Model financial implications to understand future operational requirements/costs, which includes costs to fund any community entity via a grant to manage an asset, including depreciation and renewal costs and their impact on rates; To be completed: Model the economic benefits to the ratepayers, their ability to earn greater income in the future from these projects (affordability metric); Ongoing: Internal appointment of dedicated financial accountant. Weekly reporting into finance team. |
4 Disruptions |
21 |
Disruption(s), out of our control (e.g. Drought / COVID-19), to agreed project timeline · disrupted supply chains; · shortages of required goods and services; and/or · need to halt the project as we are unable to work. |
We may not be able to deliver to, or renegotiate, the agreed milestones |
Failure to deliver the project as project milestones that are linked to the funding payments are not achieved; or Additional cost to rate payers to complete the project |
Ongoing: Focus on local business reduces risk of supply chain disruptions. Ongoing: Monitor external environment and modify project plans as required.; Ongoing: Follow H&S protocols. |
B. To support and monitor this programme of work a three-part structured reporting programme is in place:
1. The Programme Steering Group meets four weekly to receive a brief report on each of the externally funded projects and to decide key legal and funding arrangements such as ownership of assets created.
2. Regular monthly reporting to SLT Performance Meeting.
3. Regular monthly reporting into IAMs Business Report
To support reporting dashboards, see below, are being established.
C. High level organisational risk assessment against each of the funding agreements
The highest organisational risk would be to not meet the milestones required within the funding agreements. To date this has been well managed, with quick delivery supported by good reporting to MBIE; and as required timelines have been renegotiated with MBIE. We are fully up to date with invoicing against all milestones, on all projects. This has meant that, reputationally, Council is well regarded resulting in further successful bids for government funding.
A risk assessment has been competed for each of the externally funded projects. This information is captured in Table 5 which also provides the high-level status.
Table 2: Organisational risk assessment by funding agreement:
Funding Agreement |
Status |
Organisational risk assessment |
1. Te Hiku Revitalisation |
Multiple projects |
Low risk
No issues |
2. Waipapa Sports Hub |
Physical works started |
Low risk
Behind schedule due finding main fibre cable which needs to be re-located; and required a resource consent. Both issues have now been addressed and agreement in place with MBIE to extend milestone timeline.each |
3. Kerikeri Domain |
Design completed. Procurements underway. |
Medium
Tight time frames and high profile |
4. Innovating streets: a. Kawakawa safety and streetscape improvement b. Tai Tokerau Kaikohe Safe Streets c. Moerewa Safe Streets |
Delivery phase |
Low risk
There is an agreement to run over time if weather has adverse affect on ability to deliver. |
5. Otiria Rugby Club |
Project completed Final report with MBIE All funding received |
Low risk |
6. Strategic Roads – Priority 1 Routes (Ngapipito Rd & Peria Rd) |
Delivery phase |
Low risk
Ngapipito Rd is behind schedule. Agreement in place with MBIE to extend milestone timeline. |
7. Ruapekapeka roading upgrade |
Stage 1 underway Stage 2 is in procurement. |
Low risk |
8. NAX Kawakawa to Opua Rail restoration with Council funded cycle trail. |
Design |
High risk
Possible cost overruns due to working methodologies being imposed by the rail trust who are currently the lease holder for the cycleway route on kiwi rail property. |
9. Lindvart Park Sports Hub. |
Design |
High risk
Insufficient budget to undertake the planned works. A request has been made by Council to review and reverse engineer a number of the costs overrun items of scope. |
Assurance, Risk and Finance Committee Meeting Agenda |
8 September 2021 |
D. The Government goal of providing this funding is to provide economic stimulus and employment opportunity within the Far North District. These goals can be categorised as:
1. Jobs and careers
2. Arresting and reversing environmental degradation
3. Partnering with Tangata Whenua
4. Growing the local market
5. Ratepayer affordability
The following provides a brief update on the progress to-date towards achieving the Government’s overarching goals.
1. Jobs and careers
To address the challenges of intergenerational poverty and disparity through high unemployment of Māori and youth within Northland. To provide training and career pathways that move people from low-paid to highly paid skilled workers. To break the cycle of the working poor, eventually raising the minimum wage to the Living Wage.
· See Growing the local market for the outcome of job and careers Initiatives
2. Arresting and reversing environmental degradation
Climate change, water security and resilience, are number one risks to our community from an infrastructure, wellbeing and economic perspective. We must protect and secure our water sources and protect our natural environment for generations to come. Our natural environment including our water and soil is our future economic potential.
· Green design experience is a specific skillset targeted in designer selection. Waipapa Sports Hub Architect selection criteria for appointment of lead designer. Natural products specified for playground design.
· Water harvesting for the local community was incorporated into plans at Otiria Rugby club as was recycling building materials and furniture where possible. These outcomes were successfully achieved.
· Water bore for self-sufficient supply is a project objective at Waipapa Sports Hub was targeted in the project and has now been achieved. A high production bore has been established.
· Significant native plantings are incorporated into design requirements for both Te Hiku and Kerikeri Domain projects. Plants and planting to be sourced locally.
3. Partnering with Tangata Whenua
With 50.5% of our District’s population of Māori descent, and 11 iwi and 200+ hapu, we must work harder to create meaningful relationships and genuine participation in delivering services and resolving challenges in the Far North.
· The Te Hiku o Te Ika project working group has consulted closely with Iwi to create a strong working relationship which has seen Iwi artists take the lead in the development of concepts and designs. Agreements totalling $800k have been executed with Ngati Takoto and Te Rawara for Cultural Artwork and work is underway.
· Ruapekapeka Road has an agreement in place with Te Ruapekapeka Trust (includes representation from local Hapu/Iwi and DOC). This includes provisions for cultural monitors and local labour resources associated with local Marae.
· Ruapekapeka road project has engaged cultural monitors during the earthworks drainage works on stage 1 (near the Pa site).
· Tourism Infrastructure fund round 5 applications for projects at the Te Paki sand dunes and Cape Reinga road are a Ngati Kuri and FNDC partnership approach. These projects were notified as successful in July and have received funding from MBIE.
4. Growing the local market
Create opportunity for Far North businesses to participate in the delivery of services to FNDC. We recognise the importance of a healthy, resilient local supply chain in providing diversity of competent suppliers, growing economic potential for Far North business to participate in national and export contract, and building deeper economic resilience within our community.
· Amotai have appointed Missy Armstrong to support Māori business in the Northland area. With support from FNDC an Amotai Māori Business and Purchasers meeting was held in Kerikeri on 20 May. FNDC CEO was a guest speaker. The event was a full house with over 100 attendees. Amotai will continue provide lists of Māori businesses across a range of categories to enable target invitations to tenders and FNDC will advise Amotai of new Māori business we work with.
· The lack of readily available Health and Safety training has been identified as one of the key issues for Far North businesses. We have contracted a local Māori Business Health and Safety contractor to assist with Health and Safety related development and also to provide safety audit support. See Table 2 for safety training offered and number of participants where training has been completed. Table 3 provides a progress up-date on contractor Sitewise pre-qualification.
Table 3: Safety Training offered:
Safety Training |
|
Elevated Work Platform |
19 |
Working at Heights |
12 |
Confined Spaces |
24&25 Aug |
Hazardous Substances |
28 Sep |
Table 4: Contractor Health & Safety (SiteWise) pre-qualification:
Contractor Health & Safety pre-qualification |
||||
Businesses Engaged |
Early Stages |
Progressing |
Newly Qualified |
Improved Score |
42 |
13 |
5 |
14 |
10 |
· Accurate pricing of complex jobs has been identified as a limitation for growing businesses. For the Kerikeri Basketball court, a Quantity Surveyor was engaged to enable the project team to support a local Māori business (with a proven FNDC track record) with pricing the job. This will end up being price neutral as the local company is highly competitive at a unit rate level.
· Joint Venture options to enable more mature contractors to engage local contractors on components of specialised projects and to qualify local business for ongoing maintenance. Most recent award was concrete works in Te Hiku where a local new Māori Business was partnered up with a Tier 2 for concrete works as a deliberate decision in the award process. The Tier 2 was a willing supporter of developing smaller business. Work is about to commence
· 125 suppliers have registered an interest in project work. 79 via the FNDC online Expression of Interest. 92 of these are Far North Businesses and 20 are from the wider Northland region.
· As newly qualified suppliers come onboard their details are shared with Facilities Maintenance to enter the available contractor pool. This is now co-ordinated through FNDC Principal Advisor – Sustainable Procurement. Construct North, who qualified for FNDC works on the Otiria Rugby Club project has also been engaged on the Kerikeri Domain project.
· A Masters Services Agreement (Umbrella Agreement) has been developed to simplify the contracts process for all parties and to provide better contractual protection for FNDC on low value works. Contracts will be rolled out as construction phases commence. Each individual job will have a Short form Work Order raises that refers back to the Master agreement. There is no need for a separate contract every time.
· Have moved to electronic procurement platform (eProcure) to enable local businesses to easily compete for the large volume of minor works. This will also enable upskilling business ability to submit good proposals. Online procurement processes have been completed with good results for both participants and the procurement/evaluation team. Most notable is the online evaluation capability which provides robust probity and audit protection.
Table 5: People employed on externally funded projects:
Te Hiku Revitalisation |Waipapa Sports Hub | Kerikeri Domain |Otiria Rugby Club| NAX Opua Cycle Trail| Ruapekapeka Road, Peria Road and Ngapipito Road |
|
People Employed on Projects |
288 |
Māori and Pasifika |
143 |
Data Pending for:
Innovating Streets (Construction started week of 19 July)
Sweetwater: (Construction start August)
5. Ratepayer affordability
As 27% of our ratepayers have household incomes of less than $30k pa, and only 21% with household incomes over $70k, our responsibility is to prioritise spend and investment where it is most needed.
That we make assessments on a whole of life perspective while at the same time balancing the broader social, economic, environmental and cultural needs of our ratepayers.
· We are actively negotiating the requirement for out of region suppliers to qualify local business for the local installation works and ongoing maintenance. This will reduce ongoing operational costs. Current examples, Ahipara Pumptrack, Te Hiku and Kerikeri Playgrounds, Te Hiku outdoor BBQs, Kerikeri Skatepark.
· Taking a long-term view for cost reduction, such as working with a local supplier to stock supplies of certified playground bark. This not only works for the building phase of these projects but will reduce transport costs for the maintenance of existing playgrounds.
· Projects are working together for procurement. The Playgrounds procurement included both the Te Hiku (3) and Kerikeri Playgrounds. The evaluation team consisted of members from both projects and FNDC. The results were excellent. In the post RFP negotiations, we were also able to include the Kaikohe Playground, which is a business as usual project into the discount structure $30k savings.
· The use of eProcure enables the easy integration of members of the FNDC Facilities Management and Asset Management Teams into the evaluation process for supplier submissions, focusing in particular on the whole of life costings.
Financial Implications and Budgetary Provision
This report does not identify nor request additional budgetary provision.
Nil
8 September 2021 |
6.3 Council Financial Report for the Period Ending 31 July 2021
File Number: A3346391
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 31 July 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 July 2021. |
TE tĀHUHU KŌRERO / Background
This report provides financial information as at 31 July 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 July 2021 (Pd1) FINAL - A3348930 ⇩
8 September 2021 |
6.4 Elected Members Sensitive Expenditure
File Number: A3334364
Author: Rhonda-May Whiu, Elected Member Administrator
Authoriser: William J Taylor MBE, General Manager - Corporate Services
TAKE PŪRONGO / Purpose of the Report
To provide information on all expenses incurred by Elected Members this period that are considered sensitive.
WHAKARĀPOPOTO MATUA / Executive SummarY
All Elected Member Sensitive Expenditure incurred from 1 April to 30 June 2021 was $13,543.29.
That the Assurance, Risk and Finance Committee receive the report Elected Members 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 |
1 April to 30 June 2021 |
$13,543.29 |
Financial Year Total |
$75,853.25 |
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 April to 30 June 2021.
1. Elected Members Sensitive Expenditure 1 April to 30 June 2021 - A3349822 ⇩
8 September 2021 |
6.5 People and Capability Quarterly Update: 1 April - 30 June 2021
File Number: A3347764
Author: Mia Haywood, People and Capability Data and Systems Specialist
Authoriser: Jill Coyle, Chief People 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 April - 30 June 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
This report is Information only.
1. Staff Turnover Report Quarter 4 - A3347851 ⇩
8 September 2021 |
6.6 Assurance, Risk and Finance Committee Action Sheet Update August 2021
File Number: A3370412
Author: Casey Gannon, Meetings Administrator
Authoriser: Aisha Huriwai, Team Leader Democracy Services
Take Pūrongo / Purpose of the Report
To provide the Assurance, Risk and Finance Committee with an overview of outstanding decisions from 1 January 2020.
WhakarĀpopoto matua / Executive Summary
· Council staff have reintroduced action sheets as a mechanism to communicate progress against decisions/resolutions and confirm when decisions have been implemented.
· The focus of this paper is on Assurance, Risk and Finance Committee decisions.
· Action sheets are also in place for Council and Community Boards.
That the Assurance, Risk and Finance Committee receive the report Action Sheet Update August 2021. |
1) 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.
2) matapaki me NgĀ KŌwhiringa / Discussion and Options
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.
Take Tūtohunga / Reason for the recommendation
To provide the Assurance, Risk and Finance Committee with an overview of outstanding committee decisions from 1 January 2020.
3) 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.
1. ARF Action Sheet Update - August 2021 - A3370453 ⇩
8 September 2021 |
7 Te Wāhanga Tūmataiti / Public Excluded
RESOLUTION TO EXCLUDE THE PUBLIC
8 Karakia Whakamutunga – Closing Prayer
9 Te Kapinga Hui / Meeting Close