Agenda of Assurance, Risk and Finance Committee Meeting

	Authorising Body	Mayor/Council
	Status	Standing Committee
COUNCIL COMMITTEE	Title	Assurance, Risk and Finance Committee Terms of Reference
	Approval Date	19 December 2019
	Responsible Officer	Chief Executive

Purpose

The purpose of the Assurance, Risk and Finance Committee (the Committee) is to assist and advise the Governing Body in discharging its responsibility and ownership of finance, risk and internal control.

The Committee will review the effectiveness of the following aspects:

· The robustness of financial management practices.

· The integrity and appropriateness of internal and external reports and accountability arrangements.

· The robustness of the risk management framework.

· The robustness of internal controls and the internal audit framework.

· Compliance with applicable laws, regulations, standards, and best practice guidelines.

· The establishment and maintenance of controls to safeguard the Council’s financial and non-financial assets.

· Data governance framework

To perform his or her role effectively, each Committee member must develop and maintain

his or her skills and knowledge, including an understanding of the Committee’s responsibilities, and of the Council’s business, operations, and risks.

Membership

The Council will determine the membership of the Assurance, Risk and Finance Committee including at least one independent appointment with suitable financial and risk management knowledge and experience.

The Assurance, Risk and Finance Committee will comprise of at least five elected members (one of which will be the chairperson), and one independent appointed member.

Mayor Carter

John Vujcich – Chairperson

Bruce Robertson – Deputy Chairperson and Independent Member of the Committee

Moko Tepania

Mate Radich

Rachel Smith

Kelly Stratford

Ann Court

Mike Edmonds

Adele Gardner

Non-appointed Councillors may attend meetings with speaking rights, but not voting rights.

Quorum

The quorum at a meeting of the Assurance, Risk and Finance Committee is 4 members.

Frequency of Meetings

The Assurance, Risk and Finance Committee shall meet every 6 weeks, but may be cancelled if there is no business.

Power to Delegate

The Assurance, Risk and Finance Committee may not delegate any of its responsibilities, duties or powers.

Committees Responsibilities

The Committees responsibilities are described below:

Financial systems and performance of the Council

· Review the Council’s financial and non-financial performance against the Long-Term Plan and Annual Plan

· Review Council quarterly financial statements and draft Annual Report

Far North Holdings Limited (FNHL)

· Recommend to Council the approval of statement of intent and Annual Report (s67 LGA)

· Receive 6 monthly report on operations (s66 LGA)

· Receive quarterly financial statements

· Recommend appointment of directors of FNHL

Risk Management

· Review appropriateness of Council’s risk management framework and associated procedures for effective risk identification, evaluation, and treatment

· Receive and review risk management dashboard reports

· Provide input, annually, into the setting of the risk management programme of work

· Receive updates on current litigation and legal liabilities

Internal Audit and Controls

· Review whether management has in place a current and comprehensive internal audit framework

· Receive and review the internal audit dashboard reports

· Provide input, annually, into the setting of the internal audit programme of work

· Review whether there are appropriate processes and systems in place to identify and investigate fraudulent behaviour

The Committee will manage Council’s relationship with external auditor.

The Committee will approve applications to declare land abandoned and any other such matters under the Rating Act.

Rules and Procedures

Council’s Standing Orders and Code of Conduct apply to all the committee’s meetings.

Annual reporting

The Chair of the Committee will submit a written report to the Chief Executive on an annual basis. The review will summarise the activities of the Committee and how it has contributed to the Council’s governance and strategic objectives. The Chief Executive will place the report on the next available agenda of the governing body.

ASSURANCE, RISK AND FINANCE COMMITTEE - MEMBERS REGISTER OF INTERESTS

Name	Responsibility (i.e. Chairperson etc)	Declaration of Interests	Nature of Potential Interest	Member's Proposed Management Plan
Hon John Carter QSO	Board Member of the Local Government Protection Programme	Board Member of the Local Government Protection Program
Hon John Carter QSO	Carter Family Trust
John Vujcich (Chair)	Board Member	Pioneer Village	Matters relating to funding and assets	Declare interest and abstain
	Director	Waitukupata Forest Ltd	Potential for council activity to directly affect its assets	Declare interest and abstain
	Director	Rural Service Solutions Ltd	Matters where council regulatory function impact of company services	Declare interest and abstain
	Director	Kaikohe (Rau Marama) Community Trust	Potential funder	Declare interest and abstain
	Partner	MJ & EMJ Vujcich	Matters where council regulatory function impacts on partnership owned assets	Declare interest and abstain
	Member	Kaikohe Rotary Club	Potential funder, or impact on Rotary projects	Declare interest and abstain
	Member	New Zealand Institute of Directors	Potential provider of training to Council	Declare a Conflict of Interest
	Member	Institute of IT Professionals	Unlikely, but possible provider of services to Council	Declare a Conflict of Interest
Bruce Robertson (Deputy)	Chair/Deputy Chair of a number of Audit and Risk Committees: Far North Auckland Bay of Plenty Regional Tauranga Thames Coromandel Hamilton Waipa Otorohanga Waitomo Environment Southland Invercargill Southland.		There is a low level of there being a potential interest conflict. An outside potential is water reform and ‘discussion’ of one north regional water company in loving North AKD with Watercare.	I remain aware of my roiled and will Raise any matter with the Mayor/CEO and chair of ARF should any matter potentially conflict.
Bruce Robertson (Deputy)	Currently None are North AKD. Previously I have Undertaken work on Okara Park with Whangarei DC.	Advisory Work.	Okara Park is a regional Stadium. Matter solely related Governance and role of DC. Low risk of conflict.
Deputy Mayor Ann Court	Waipapa Business Association	Member		Case by case
	Warren Pattinson Limited	Shareholder	Building company. FNDC is a regulator and enforcer	Case by case
	Kerikeri Irrigation	Supplies my water		No
	District Licensing	N/A	N/A	N/A
	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 bookkeeping, 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
Kelly Stratford - Partner	Māori title land – Moerewa	Shareholder	None perceived	If there was a conflict of interest, I would step aside from decision making
Rachel Smith	Friends of Rolands Wood Charitable Trust	Trustee
	Mid North Family Support	Trustee
	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member
	Vision Kerikeri	Financial Member
Rachel Smith (Partner)	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member and Treasurer
	Vision Kerikeri	Financial Member
	Town and General Groundcare Limited	Director/Shareholder
Moko Tepania	Teacher	Te Kura Kaupapa Māori o Kaikohe.	Potential Council funding that will benefit my place of employment.	Declare a perceived conflict
	Chairperson	Te Reo o Te Tai Tokerau Trust.	Potential Council funding for events that this trust runs.	Declare a perceived conflict
	Tribal Member	Te Rūnanga o Te Rarawa	As a descendent of Te Rarawa I could have a perceived conflict of interest in Te Rarawa Council relations.	Declare a perceived conflict
	Tribal Member	Te Rūnanga o Whaingaroa	As a descendent of Te Rūnanga o Whaingaroa I could have a perceived conflict of interest in Te Rūnanga o Whaingaroa Council relations.	Declare a perceived conflict
	Tribal Member	Kahukuraariki Trust Board	As a descendent of Kahukuraariki Trust Board I could have a perceived conflict of interest in Kahukuraariki Trust Board Council relations.	Declare a perceived conflict
	Tribal Member	Te Rūnanga ā-Iwi o Ngāpuhi	As a descendent of Te Rūnanga ā-Iwi o Ngāpuhi I could have a perceived conflict of interest in Te Rūnanga ā-Iwi o Ngāpuhi Council relations.	Declare a perceived conflict
Mike Edmonds	Chair	Kaikohe Mechanical and Historic Trust	Council Funding	Decide at the time
Mike Edmonds	Committee member	Kaikohe Rugby Football and Sports Club	Council Funding	Withdraw and abstain
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 Committee	Committee Member
	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

20 October 2021

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

File Number: A3051550

Author: Casey Gannon, Meetings Administrator

Authoriser: Aisha Huriwai, Team Leader Democracy Services

Purpose of the Report

The minutes are attached to allow the Committee to confirm that the minutes are a true and correct record of previous meetings.

Recommendation

That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 8 September 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.

Attachments

1. 2021-09-08 Assurance, Risk and Finance Committee Minutes - A3376986 ⇩

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

20 October 2021

MINUTES OF Far North District Council
Assurance, Risk and Finance Committee Meeting
Held Electronically via Microsoft Teams
ON Wednesday, 8 September 2021 AT 1.30 pm

PRESENT: Chairperson John Vujcich, Member Bruce Robertson, Mayor John Carter (HWTM), Deputy Mayor Ann Court, Cr Mate Radich, Cr Rachel Smith, Cr Kelly Stratford, Cr Moko Tepania, Member Mike Edmonds, Member Adele Gardner

IN ATTENDANCE: 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

Chair John Vujcich opened the meeting with a karakia.

2 Ngā Whakapāha Me Ngā Pānga Mema / Apologies and Declarations of Interest

Nil

3 Ngā Tono Kōrero / Deputation

Nil

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

Agenda item 4.1 document number A3051544, pages 12 - 17 refers.

Resolution 2021/1

Moved: Chairperson John Vujcich

Seconded: Cr Rachel Smith

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.

In Favour: Cr John Vujcich, Member Bruce Robertson, Mayor John Carter, Deputy Mayor Ann Court, Cr Mate Radich, Cr Rachel Smith, Cr Kelly Stratford, Member Mike Edmonds and Member Adele Gardner

Against: Nil

Abstained: Cr Moko Tepania

Carried

5 Reports

5.1 Investment of Returned GST Funds 30 June 2021

Agenda item 5.1 document number A3338916, pages 18 - 20 refers.

RESOLUTION 2021/2

Moved: Cr Moko Tepania

Seconded: Cr Rachel Smith

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.

In Favour: Cr John Vujcich, Member Bruce Robertson, Mayor John Carter, Deputy Mayor Ann Court, Cr Mate Radich, Cr Rachel Smith, Cr Kelly Stratford, Cr Moko Tepania Member Mike Edmonds and Member Adele Gardner

Against: Cr Rachel Smith

carried

5.2 Emergent risk, Programme Darwin

Agenda item 5.2 document number A3326782, pages 21 - 27 refers.

ReSOLUTION 2021/3

Moved: Mayor John Carter

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee approves the addition of the “Programme Darwin” risk onto the Organisational Top Risks Dashboard.

Against: Nil

carried

6 Information Reports

6.1 September 2021 Risk Management Report

Agenda item 6.1 document number A3339293, pages 28 - 46 refers.

RESOLUTION 2021/4

Moved: Member Bruce Robertson

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee receive the report September 2021 Risk Management Report.

Against: Nil

carried

6.2 Risk progress report for programme of externally funded projects.

Agenda item 6.2 document number A3333582, pages 47 - 57 refers.

ReSOLUTION 2021/5

Moved: Cr Kelly Stratford

Seconded: Chairperson John Vujcich

That the Assurance, Risk and Finance Committee receive the report Risk progress report for programme of externally funded projects.

Against: Nil

carried

At 2:28 pm, Mayor John Carter left the meeting. At 2:30 pm, Mayor John Carter returned to the meeting.

6.3 Council Financial Report for the Period Ending 31 July 2021

Agenda item 6.3 document number A3346391, pages 58 - 73 refers.

ReSOLUTION 2021/6

Moved: Cr Kelly Stratford

Seconded: Cr Rachel Smith

That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 31 July 2021.

Against: Nil

carried

6.4 Elected Members Sensitive Expenditure

Agenda item 6.4 document number A3334364, pages 74 - 75 refers.

ReSOLUTION 2021/7

Moved: Mayor John Carter

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee receive the report Elected Members Sensitive Expenditure.

In Favour: Cr John Vujcich, Member Bruce Robertson, Mayor John Carter, Deputy Mayor Ann Court, Cr Rachel Smith, Cr Kelly Stratford, Cr Moko Tepania Member Mike Edmonds and Member Adele Gardner

Against: Nil

carried

At 2:58 pm, Cr Mate Radich left the meeting.

6.5 People and Capability Quarterly Update: 1 April - 30 June 2021

Agenda item 6.5 document number A3347764, pages 76 - 78 refers.

Resolution 2021/8

Moved: Mayor John Carter

Seconded: Member Bruce Robertson

That the Assurance, Risk and Finance Committee receive the report People and Capability Quarterly Update: 1 April - 30 June 2021.

In Favour: Cr John Vujcich, Member Bruce Robertson, Mayor John Carter, Deputy Mayor Ann Court, Cr Rachel Smith, Cr Kelly Stratford, Cr Moko Tepania Member Mike Edmonds and Member Adele Gardner

Against: Nil

Carried

6.6 Assurance, Risk and Finance Committee Action Sheet Update August 2021

Agenda item 6.6 document number A3370412, pages 79 - 80 refers.

Resolution 2021/9

Moved: Member Bruce Robertson

Seconded: Chairperson John Vujcich

That the Assurance, Risk and Finance Committee receive the report Action Sheet Update August 2021.

In Favour: Cr John Vujcich, Member Bruce Robertson, Mayor John Carter, Deputy Mayor Ann Court, Cr Rachel Smith, Cr Kelly Stratford, Cr Moko Tepania Member Mike Edmonds and Member Adele Gardner

Against: Nil

Carried

7 Te Wāhanga Tūmataiti / Public Excluded

RESOLUTION TO EXCLUDE THE PUBLIC

Resolution 2021/10

Moved: Chairperson John Vujcich

Seconded: Cr Moko Tepania

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

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

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
7.1 - Confirmation of Previous Minutes	s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
7.2 - Draft Annual Report Financial position 30 June 2021	s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied s7(2)(f)(i) - free and frank expression of opinions by or between or to members or officers or employees of any local authority	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
7.3 - September Assurance and Audit Report	s7(2)(f)(i) - free and frank expression of opinions by or between or to members or officers or employees of any local authority	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
7.4 - Technology Update Report	s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
7.5 - Far North District Council Current Legal Action and Potential Liability Claims as at 23 August 2021	s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

In Favour: Cr John Vujcich, Member Bruce Robertson, Mayor John Carter, Deputy Mayor Ann Court, Cr Rachel Smith, Cr Kelly Stratford, Cr Moko Tepania Member Mike Edmonds and Member Adele Gardner

Against: Nil

Carried

Confirmation of Information and Decisions to be released in Public

REsolution 2021/11

Moved: Chairperson John Vujcich

Seconded: Member Bruce Robertson

That Assurance, Risk and Finance Committee confirms the information and decisions contained in the part of the meeting held with public excluded remains in public excluded.

In Favour: Cr John Vujcich, Member Bruce Robertson, Mayor John Carter, Deputy Mayor Ann Court, Cr Rachel Smith, Cr Kelly Stratford, Cr Moko Tepania Member Mike Edmonds and Member Adele Gardner

Against: Nil

carried

Resolution to Readmit the Public

Resolution 2021/12

Moved: Chairperson John Vujcich

Seconded: Mayor John Carter

That Assurance, Risk and Finance Committee moves out of Public Excluded and into Ordinary Assurance, Risk and Finance Committee meeting.

In Favour: Cr John Vujcich, Member Bruce Robertson, Mayor John Carter, Deputy Mayor Ann Court, Cr Rachel Smith, Cr Kelly Stratford, Cr Moko Tepania Member Mike Edmonds and Member Adele Gardner

Against: Nil

Carried

8 Karakia Whakamutunga – Closing Prayer

Cr. Moko Tepania closed with a karakia.

9 tE kAPINGA hUI / Meeting Close

The meeting closed at 3:58 pm.

The minutes of this meeting will be confirmed at the Assurance, Risk and Finance Committee Meeting held on 20 October 2021.

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

CHAIRPERSON

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 Risk Governance	Responsible Risk Governance		Risk Progress Report schedule	Risk Progress Report ARF agenda:
ARF001	Climate Change	63		30		CEO	GMSPP		3 Monthly	Sep 21
ARF003	Health & Safety Vulnerabilities	46		34		CEO	Manager P&C		3 Monthly	Oct 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	Oct 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	Oct21
ARF013	Drinking Water Resilience	35		ARF to agree level residual risk		CEO	GMIAM		3 Monthly	Sep 21
ARF014	Programme Darwin	35		13		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		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
ARF014 Programme Darwin								ü

MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

Organisational risk management

The topic for the September 2021 deep dive was the ARF004 Asset Management Risk. Elected Members discussion focussed on where Programme Darwin sat relative to the Asset Management risk, the pace of the Darwin mitigations and the workload of Asset Managers as they are also support the reform process and external funding bids.

Further deep dives are scheduled for the remainder of this calendar year, see table 2.

Emergent risk:

At the September Assurance, Risk and Finance Committee meeting it was agreed to include the organisational and strategic emerging risk, “Programme Darwin”, onto the Organisational Top Risks Dashboard. This is recorded as ARF014 Programme Darwin.

No additional emergent risks have been identified.

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	The Assurance, Risk and Finance Committee received a report at September 2021 meeting. Next report is scheduled in six months, March 2022 dependent on the, yet to be released, Assurance, Risk and Finance Committee 2022 schedule.
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. Frequency of reporting is to be increased from six monthly to three monthly.
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.
1. 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 expected to receive this report by 30 June 2021. To date no report has been made public.

Organisational risk progress reports:

Three scheduled risk progress reports, including high level treatment plan progress, are provided with highlights and analysis of risk progress below. More detail is available in the attached risk progress reports.

Risk progress reports – highlights and analysis:

1. ARF003 Health Safety and Wellbeing Vulnerabilities Risk Progress Report The inherent risk rating trend has been assessed as increasing due to delays in progressing treatments; increase in threatening behaviour from the public; and the ongoing non-compliance with Health and Safety at Work Act regulations across our assets.

2. ARF006 Projects Priorities Delivery Delays Risk Progress Report. The inherent risk rating trend has been assessed as stable.

3. ARF012 Contract Management Risk Progress Report: The inherent risk rating trend has been assessed as stable. The focus continues on progressing treatments.

Progress update on ARF001 Climate Change:

The Climate Change Terms of reference for the Climate Change Risk Reference group have been agreed. The risk reference group has convened, and a risk workshop scheduled. The Ministry for the Environment has now published their guide to local climate risk assessments.

· MfE advises that this guide provides a standard approach for undertaking climate change risk assessments, while allowing flexibility to reflect local values. The methodology is broadly consistent with the national climate change risk assessment framework and is written mainly for local government representatives to lead and implement, in partnership with local iwi/Māori on behalf of communities.

· A local government working group and a Māori caucus and panel directed the development of the guide, providing insights and feedback throughout the process.

No additional reporting requirements for the top organisational risks has been identified.

Group Risk Up-date

1. District Services have reviewed treatment progress for a number of department risks. Where appropriate the risk profile for risks with mature treatments has been re-assessed. This has resulted in the overall number of high impact risks, on the District Services risk register, reducing from 21% to 8%; medium impact risks from 63% to 50%; and a corresponding increase in number of risks assessed as low impact risks from 8% to 33%.

2. 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.

Assurance, Risk and Finance Committee Meeting Agenda

20 October 2021

5.3 Revenue recovery report - 30 September 2021

File Number: A3422699

Author: Margriet Veenstra, Manager - Transaction Services

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

TAKE PŪRONGO / Purpose of the Report

The purpose of this report is to provide quarterly reporting to the Far North District Council Assurance, Risk, and Finance Committee.

WHAKARĀPOPOTO MATUA / Executive SummarY

This is the first report for the financial year 2021-22 and provides information on action taken to collect the current and arrears balances for rates, water and sundry debt so far this year, and to provide information on how collection is tracking against targets.

TŪTOHUNGA / Recommendation

That the Assurance, Risk and Finance Committee receive the report Revenue recovery report - 30 September 2021.

tĀHUHU KŌRERO / Background

This document has been prepared to outline current and arrears balances for rates, water and Sundry debt as at 30 September 2021 and the actions taken by the debt management team for the collection of the General Title rates and water and sundry debt.

This information is part of the standing items reported to the 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. Since the 1^st of July 2021, the General Title rates total arrears balance has been reduced by 14% and water rates by 22%. Total arrears balance is $800,000 less than this time last year. Maori Freehold Land rates total arrears has been reduced by 0.89% and water rates by 1.25%.

General Title rates and water debt

Key actions since the last report:

· This year, mortgage demand batches are split by mortgagee rather than the arrears value to streamline communications with the banks and financial institutions.

· Debt management commenced mortgage demand pre-calling on the 23^rd of July, for all owners with a mortgage with ASB and an arrears balance of more than $1,000.00. Of the 226 property owners contacted, 74 set up a payment arrangement. Mortgage demand was issued against ASB for 152 properties on the 17^th of August.

· When the country went into lockdown at midnight on the 17^th of August, debt management commenced calling customers who would normally pay at front counters and offer alternative payment options or place a penalty hold on the account to allow them to pay once front counters opened.

· From the 2^nd of September, post penalty run, they contacted those who only missed their 1^st instalment payment to offer a payment plan and remit penalties while managing requests for support from rate payers struggling to meet payment arrangements already set up.

· Debt management worked with customer care and communications team to create a pamphlet to promote payment by direct debit with rates easy pay to customers who came to front counters once we moved in to level 2. This resulted in 47% increase in new direct debits set up compared to the same period last year.

· The mortgage demand process is on hold until at least the end of October, but debt management will continue with pre-mortgage demand calling for the next batch of mortgage providers.

· Since 13^th of September, pre-calling of has started for ASB customers with less than $1,000 arrears and ANZ customers with more than $1,000 arrears to set up payment plans to avoid mortgage demand later in the year.

· Legal proceedings have been filed with the district court for 5 properties with arrears of 5 years or more.

Next actions:

· Continue mortgage demand pre-calling for ANZ and next mortgage providers until such time that it is reasonable for Council to issue mortgage demand with the banks.

· Review and contact properties with only last year’s rates in arrears to set up payment arrangements.

· Review properties without a mortgage and high arrears and commence demand process in collaboration with Council’s Legal Services team.

· Complete in-depth investigations for the first tranche of abandoned land sales and commence with the process.

For the total number of General Title rates accounts marked as ‘Debt recovery action to commence’:

· These are properties where there is no mortgage, and we don’t have a payment arrangement or direct debit set up on the account.

· 41% of properties only have last year’s rates in arrears and 12% have 2 years of arrears. Debt management will be contacting these owners by phone, email, or letter. Any water arrears will be picked up at the same time.

· 47% of these accounts have arrears of 3 or more rating years. Debt management will start the final demand process for these which can result in referral to Council’s legal services team to commence legal proceedings.

Maori Freehold Land rates and water debt

The debt for Maori Freehold land has reduced since the write-offs were completed in June as per the Local Government (Rating of Whenua Maori) Amendment Act 2021.

Sundry debtors debt

The total sundry debtors aged debt balance has increased since the last report, mainly due to 6 invoices totalling $2,537,374. All invoices are for funding from government agencies for work completed or to be started. Reason for non-payment has been identified and payment is expected this month.

The 90 day+ resource consent debt has increased slightly but debt management continue to work closely with the resource consents team to clear the aged debt and there is added focus on current resource consent collection.

Final demand letters have been issued to debtors with outstanding debt and these will be referred to Council Legal Services team to take legal action in the next weeks.

PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision

Provision is made annually for doubtful debts in relation to the arrears owed to council. A higher provision for Maori Freehold land rates and water is made in comparison to General Title rates and water due to the difference in collection options available to Council.

Āpitihanga / Attachments

1. Revenue recovery Report 30 September 2021 attachment - A3422680 ⇩

Time:	1.00 pm
Location:	Virtually via Micosoft Teams

Table 4: Key to risk category
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