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

2 February 2022

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

File Number: A3525653

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 1 December 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. 2021-12-01 Assurance, Risk and Finance Committee Minutes [A3509906] - A3509906 ⇩

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

2 February 2022

MINUTES OF Far North District Council
Assurance, Risk and Finance Committee Meeting
HELD AT THE Council Chamber, Memorial Avenue, Kaikohe
ON Wednesday, 1 December 2021 AT 1.30 pm

PRESENT: Chairperson John Vujcich, Member Bruce Robertson, Cr Mate Radich, Cr Rachel Smith, Cr Kelly Stratford, 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

Motion

Resolution 2021/1

Moved: Chairperson John Vujcich

Seconded: Cr Rachel Smith

That Councillor David Clendon be permitted speaking rights.

Carried

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

Apology

Resolution 2021/24

Moved: Chairperson John Vujcich

Seconded: Deputy Chairperson Bruce Robertson

That the apology received from His Worship the Mayor, Deputy Mayor Ann Court, and Councillor Moko Tepania be accepted and leave of absence granted.

Carried

3 Ngā Tono Kōrero / Deputation

There were no deputations for this meeting.

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

Agenda item 4.1 document number A3051559, pages 12 - 18 refers.

Resolution 2021/25

Moved: Member Adele Gardner

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 20 October 2021 as a true and correct record.

Abstained: Rachel Smith

Carried

5 Reports

5.1 Request Decision on Climate Change Risk Recommendations

Agenda item 5.1 document number A3475964, pages 19 - 52 refers.

Resolution 2021/26

Moved: Cr Rachel Smith

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee:

a) Removes ARF001 Climate Change risk from the top organisational dashboard.

b) Adopts four climate change risks onto the top organisational risk dashboard. The four risks are:

i) ARF015 Climate Change Organisation Transition Risk

ii) ARF016 Climate Change Community Transition Risk

iii) ARF017 Climate Change Direct Risk to Council Physical and Natural Assets

iv) ARF018 Failure to understand and capture climate-related opportunities.

c) Establishes regular risk progress reports, for each risk, to the Assurance, Risk and Finance Committee.

d) Rescores risks and reports, at least annually, a climate change risk management overview to the Assurance, Risk and Finance Committee on the management and progress to treat the climate change risks.

Carried

Suspension of Standing Orders

Resolution 2021/27

Moved: Chairperson John Vujcich

Seconded: Cr Rachel Smith

A motion was moved that Assurance, Risk and Finance suspend standing order number 20.2 Time Limits on Speakers.

Carried

Resumption of Standing Orders

Resolution 2021/28

Moved: Chairperson John Vujcich

Seconded: Cr Rachel Smith

A motion was moved that Assurance, Risk and Finance Committee resume standing order 20.2 Time Limits on Speaks.

Carried

6 Information Reports

6.1 December 2021 Risk Management Report

Agenda item 6.1 document number A3472394, pages 53 - 113 refers.

Resolution 2021/29

Moved: Cr Rachel Smith

Seconded: Cr Kelly Stratford

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

Carried

6.2 People and Capability Quarterly Update: 1 July - 30 September 2021

Agenda item 6.2 document number A3475610, pages 114 - 118 refers.

Resolution 2021/30

Moved: Deputy Chairperson Bruce Robertson

Seconded: Chairperson John Vujcich

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

Carried

6.3 Council Financial Report for the Period Ending 31 October 2021

Agenda item 6.3 document number A3480782, pages 119 - 138 refers.

Resolution 2021/31

Moved: Cr Rachel Smith

Seconded: Chairperson John Vujcich

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

Carried

6.4 Level of Service KPI Quarter 1 Performance Report for 2021-2022

Agenda item 6.4 document number A3481087, pages 139 - 163 refers.

Resolution 2021/32

Moved: Cr Rachel Smith

Seconded: Cr Kelly Stratford

That the Assurance, Risk and Finance Committee receive the Level of Service KPI Quarter 1 Performance Report for 2021-2022.

Carried

6.5 Elected Members Sensitive Expenditure

Agenda item 6.5 document number A3430657, pages 164 - 165 refers.

Resolution 2021/33

Moved: Cr Kelly Stratford

Seconded: Deputy Cahirperson Bruce Robertson

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

Carried

6.6 Sustainable Procurement Update - December 2021

Agenda item 6.6 document number A3452628, pages 166 - 168 refers.

Resolution 2021/34

Moved: Chairperson John Vujcich

Seconded: Cr Rachel Smith

That the Assurance, Risk and Finance Committee receive the report Sustainable Procurement Update - December 2021.

Carried

At 3:12 pm, Cr Kelly Stratford left the meeting. At 3:15 pm, Cr Kelly Stratford returned to the meeting.

6.7 Assurance, Risk and Finance Committee Action Sheet Update November 2021

Agenda item 6.7 document number A3400608, page 169 refers.

Resolution 2021/35

Moved: Member Adele Gardner

Seconded: Cr Rachel Smith

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

Carried

7 Te Wāhanga Tūmatati / Public Excluded

RESOLUTION TO EXCLUDE THE PUBLIC

Committee Recommendation

Moved: Chairperson John Vujcich

Seconded: Deputy Chairperson Bruce Robertson

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 - Tender Panel Report June - November 2021	s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	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 - 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
7.4 - Far North District Council Current Legal Action and Potential Liability Claims as at 15 November 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

CARRIED

Confirmation of Information and Decisions to be released in Public

Resolution 2021/27

Moved: Cr Kelly Stratford

Seconded: Cr Rachel Smith

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

Carried

Resolution to Readmit the Public

Resolution 2021/28

Moved: Cr Kelly Stratford

Seconded: Member Adele Gardner

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

Carried

8 Karakia Whakamutunga – Closing Prayer

9 tE kAPINGA hUI / Meeting Close

The meeting closed at 4:13 pm.

The minutes of this meeting were confirmed at the Assurance, Risk and Finance Committee Meeting held on 2 February 2022.

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

CHAIRPERSON

Assurance, Risk and Finance Committee Meeting Agenda

2 February 2022

5 Reports

5.1 Recommendation to remove ARF009 Customer Service Delivery risk from the organisational risk dashboard

File Number: A3545470

Author: Tanya Reid, Business Improvement Specialist

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

Take Pūrongo / Purpose of the Report

To seek approval to remove ARF009 Customer Service Delivery risk from the organisational risk dashboard.

WhakarĀpopoto matua / Executive Summary

· ARF009 Customer Service Delivery risk is an organisational risk in the Operational/Financial category (whole of business view of the Council) performance including service/services delivery, risk and finance.

· Of the 12 risks adopted in May 2019 the ARF009 Customer Service Delivery risk was the lowest priority risk with a medium impact score of 39.

· A comprehensive treatment plan has been deployed. Improvements from the treatments are now being experienced. The risk trend continues to decline and is now scored below that of the desired residual risk score target of 22.

· With a total residual impact score of 11 this risk is now assessed as low impact and unlikely to occur.

A recommendation to demote ARF009 Customer Service Delivery risk from the organisational risk dashboard is supported by the total risk score and probability, and the controls in place.

tŪtohunga / Recommendation

That the Assurance, Risk and Finance Committee approves the removal of ARF009 Customer Service Delivery risk from the organisational risk dashboard.

1) TĀhuhu kŌrero / Background

In November 2018 Elected Members workshopped and agreed their top organisational risk dashboard. The top organisational risk dashboard was adopted on 30 May 2019. Of the 12 risks originally on their risk dashboard the ARF009 Customer Service Delivery risk with a score of 39 was scored lowest equal (four risks all scored 39). This is a medium impact risk.

Table 1: November 2018 ARF011 Organisational Cohesion Risk description and scoring

Table, timelineDescription automatically generated

Description of risk and impact

Customer Service Delivery is the efficient and cost-effective delivery of required Council services to residents, ratepayers, and the community.

This includes timely processing and communication with the public around services.

The context around this risk, at the time this risk was raised in 2018:

· Inefficiencies with Council service processing and information flows – including the RFS process – which caused delays in processing requests and affected timely communication with customers.

· Frustrated customers often call elected members who needed to escalate or facilitate information back to the customer.

· At that time customer satisfaction was linked to CEO KPI 6.2 – and is impacted by this risk. There remains a headline CEO KPI on customer service delivery.

· Customer service is a key component of the FNDC Customer Experience programme and is reported on regularly.

2) matapaki me NgĀ KŌwhiringa / Discussion and Options

The Customer Experience Programme exists to delivery only what customers want, in a way that leaves nothing to chance so our customers’ impressions of FNDC are exactly as intended.

In 2021 we changed how we gather our customer feedback to a digital platform called AskNicely that helps us to monitor our performance, understand our customers experiences and act on their feedback. The short survey gives them the opportunity to tell us their story and what is important to them. We have had a phenomenal response from our customers, having received over 4,500 responses in the first 10 months. Our leaders and staff have also embraced the tool and we are using it to:

· Recover bad experiences

· Build on our customer culture (praise and coaching)

· Gaining a better understanding of our customers and moments that matter to them

· Finding improvement ideas

· Using ‘voice of customer’ to inform business decisions

Table 2: Improving Customer Satisfaction scores

TableDescription automatically generated

Below are some examples of customer focused improvements:

· Online services: Rates & water rates payments, rates enquiry (registered users), dog re-registrations, events, permits & licenses (including special liquor license, General Manager’s certificate, earthworks Permit, vehicle crossing permit), Kotu Library, improved GIS Maps, BC applications, LIMs, property file requests.

· Focus on and achieving regulatory timelines: Building consents, LIMs

· Business intelligence: BCA, resource consents

· Improved workflows delivering efficiency: the new on-line events process

· Process reviews: relaunch of the process diagram tool Promapp, customer journey mapping, building internal and external knowledge bases (website, TK3)

· Automation of process where appropriate: events, LIMs, property files, templated letters

· Born digital opportunities have been captured: BCA, reviewing of forms and approval processes

· Great Workplaces: distributed working through the COVID-19 pandemic resulting in improved service levels

· Elected Members protocols have been developed and are in place.

· Training: corresponding with customer, dealing with aggressive customers

· Tools for internal and customer use: field tablets, mobile inspections, mobile RFS application, MyFNDC app.

Assessment of risk, impact and likelihood

Table 3: Description of the Customer Service Delivery risk from Corporate Services Risk Register

Group / SLT	Risk level	Inherent Risk	Risk description	Because of	There is a chance that…	leading to…


Corporate Services	Organisational	11	Operational/Financial	As we exist to serve the people of the Far North District we need to have a customer centric culture, customer friendly knowledge and processes with effective tools.	If staff do not have the attitude, tools, knowledge or processes we do not deliver customer centric outcomes	Resulting in customers who are unhappy with the services we provide. The poor customer experience negatively impacts our reputation further impeding our ability to deliver services.

The risk was scored by identifying both the risk impact for five organisational areas (see Table 3) and the likelihood of the risk occurring (see Table 4). For each organisational area, the risk impact is given a score of “High to Intolerable”, “Medium” or “Low to None” and the likelihood is rated as either “Will happen”, “Probable” or “Unlikely” (see table 5) making this a low-none impact risk with a score of 11. The likelihood of the risk materialising is assessed as “unlikely (table 6)

Table 4: Description of risk impact for each organisation area

Organisation area	Description
Financial	Impact on Budget, Department or Team; and /or Impact on annual Council budget
Customer	Financial impact to customer due to loss of a provision of essential service, or essential piece of infrastructure
Reputational	The impact on FNDC’s reputation
Compliance/Legal	The legal impact on FNDC’s legal adherence / regulatory compliance
Health and Safety	The impact to people(s) health & safety arising from FNDC operations or a situation where FNDC are liable

Table 5: Description of likelihood

Likelihood	Description
Will happen	The risk is likely to occur. There is frequent exposure to the risk. There are external influences that make managing this risk ineffective.
Probable	The risk will possibly occur e.g. once in every 2 year event There is an exposure to the risk. There are external influences that make managing this risk difficult.
Unlikely	The risk is unlikely to occur e.g. once in every 10 year event There is a low exposure to the risk.

Table 6: ARF009 Customer Service Delivery risk impact score using FNDC matrix:

Financial

Customer

Reputational

Compliance/Legal

Health and Safety

High - Intolerable

Medium

Low- none

Unlikely

Probable

Will Happen

Unlikely

Probable

Will Happen

Unlikely

Probable

Will Happen

Unlikely

Probable

Will Happen

Unlikely

Probable

Will Happen

ARF009 Customer Service Delivery risk is an organisational risk in the Operational/Financial category (whole of business view of FNDC performance including service/services delivery, risk, finance, environmental). Organisational risks may impact on the Council achieving its vision, mission and community outcomes. With a total residual impact score of 11 this risk is now assessed as low impact and unlikely to occur, see table 6.

Table 7: ARF009 Customer Service Delivery risk map as assessed December 2021

	Total Risk
High - Intolerable
Medium
Low- none	X
	Unlikely	Probable	Will Happen

This reduction in risk score has been achieved through proactive changes and controls. Current ARF009 Customer Service Delivery risk controls in place are:

1. Corporate Services Group Risk Register: continue risk management via the Corporate Services Risk Register.

2. Digital customer feedback tool for all customer facing services and applications. This provides real-time voice of the customer insights and benchmarking.

3. Reporting framework:

a. Six monthly reporting to Elected Members

b. Quarterly CEO KPI reports

c. Weekly People Leader updates

d. Quarterly one on ones with teams

4. Managers and team members have access to their own customer feedback

5. Customer excellence programme

6. One of three priorities in our three-year strategy – enriching our culture for our customers which include two major initiatives captured within the customer experience programme.

A recommendation to demote ARF009 Customer Service Delivery risk from the organisational risk dashboard is supported by the total risk score and probability, and the controls in place.

Take Tūtohunga / Reason for the recommendation

The recommendation to demote ARF009 Customer Service Delivery risk from the organisational risk dashboard is supported by the total risk score of 11; the unlikely probability of the risk occurring; the monitoring and managing of the risk on the Corporate Group Risk Register; and the controls in place.

3) PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision

There is no financial implication or request for budgetary provision.

Āpitihanga / Attachments

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

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.

Table 1: 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	Report schedule		Report tabled:
Climate Change
ARF015	Climate Change Organisation Transition Risk	31			CEO	GMSPP	3 Monthly
ARF016	Climate Change Community Transition Risk	39			CEO	GMSPP	3 Monthly
ARF017	Climate Change Direct Risk to Council Physical and Natural Assets	37			CEO	GMSPP	3 Monthly		Feb 22
ARF018	Failure to understand and capture climate-related opportunities	29			CEO	GMSPP	6 Monthly
Enterprise Governance
ARF003	Health & Safety Vulnerabilities	46		34	CEO	CPO	3 Monthly		Feb 22
ARF005	Affordability Risk	45		26	CEO	GMSPP	6 Monthly		Dec 21
ARF009	Customer Service Delivery	39		22	CEO	CT&TO	3 Monthly		Dec 21
ARF010	Data Governance Risks	39		14	CEO	CEO	6 Monthly		Dec 21
Infrastructure and Asset Management Risks
ARF004	Asset Management Risks	45		18	CEO	GMIAM	6 Monthly		Feb 22
ARF006	Project Priorities Deliveries Delays	45		14	CEO	GMIAM	3 Monthly		Feb 22
ARF007	Compliance NRC Abatements	45		18	CEO	GMIAM	6 Monthly		Dec 21
ARF012	Contract Management Risks	39		14	CEO	GMIAM	3 Monthly		Feb 22
ARF013	Drinking Water Resilience	35			CEO	GMIAM	3 Monthly		Dec 21
ARF014	Programme Darwin	35		13	CEO	GMIAM	3 Monthly		Feb 22

Table 2: 2022 risk progress report schedule

	2022 ARF meeting date:	02/02	16/03	27/04	22/06	22/07	31/08
ARF015	Climate Change Organisation Transition Risk		ü		ü		ü
ARF016	Climate Change Community Transition Risk		ü		ü		ü
ARF017	Climate Change Direct Risk to Council Physical and Natural Assets	ü		ü		ü
ARF018	Failure to understand and capture climate-related opportunities				ü
ARF003	Health & Safety Vulnerabilities	ü		ü		ü
ARF005	Affordability Risk				ü
ARF009	Customer Service Delivery	tbc
ARF010	Data Governance Risks				ü
ARF004	Asset Management Risks	ü				ü
ARF006	Project Priorities Deliveries Delays	ü		ü		ü
ARF007	Compliance NRC Abatements				ü
ARF012	Contract Management Risks	ü		ü		ü
ARF013	Drinking Water Resilience		ü		ü		ü
ARF014	Programme Darwin	ü		ü		ü
	Externally funded shovel ready, economic stimulus employment opportunity projects		ü

MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

Organisational risk management

ARF009 Customer Service Delivery risk is subject to a separate decision report which recommends the demotion of this risk from the organisational risk dashboard due to the reduction of the inherent risk score and probability of this risk materialising, and the controls in place. This reduction in risk score has been achieved through proactive changes and controls. Management of this risk will continue via the Corporate Services Risk Register.

Emergent risk:

One new emergent risk has been identified with the initiation of the Ngapuhi Mana Whakahono ā Rohe. Specifically, the emergent risk is focussed on our ability to meet the statutory timeframe to review all Council policies and process within six months of completing the agreement. This risk was identified in work completed in 2018 and is captured in the Strategic Planning and Policy Group risk registers as SPP01 / 02 and 03. A high level process was developed in 2018 to support this statutory process. An internal hui /workshop with a cross-functional team of 17 staff, supported by the Principal Advisor Organisational Performance & Transformation and the Project and Change Specialist, has been planned for January 2022. A full report on the arrangements (such as tasks, risks, governance and milestone dates) will be made to the Strategy and Policy Committee.

Context and background:

A Mana Whakahono is a binding statutory arrangement that provides for a more structured relationship under the Resource Management Act 1991 to provide an opportunity for tangata whenua and local authorities to come together under the RMA. The intent of Mana Whakahono is to facilitate improved working relationships between tangata whenua (through their iwi authority or hapū) and local authorities and to enhance Māori participation in resource management and decision-making processes under the RMA.

The emergent risk identified in October 2020, the financial and legal risks due to the effects of climate change, has been removed from table 3 as this risk has been accepted as a top organisational risk, ARF015 Climate Change Organisation Transition Risk.

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. 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.
3. 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. A progress up-date is provided under the group risk section.
4. 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.
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. Independent review of WorkSafe in relation to Whakaari/White Island released 22/10/2021. The review found that WorkSafe fell short of good practice in its regulation of activities on Whakaari White Island over the 2014-19 period. The review says that improvements are needed in WorkSafe’s management of the adventure activities system.

Organisational risk progress reports:

Following discussions at the December 2021 Assurance, Risk and Finance Committee meeting work is progressing to establish an Affordability Risk Reference Group to theme and prioritise ARF005 Affordability risk. To date terms of reference, including proposed membership, have been drafted. An Affordability risk hui has been scheduled for 11 February 2022.

Six scheduled risk progress reports, including high level treatment plan progress, are provided with highlights and analysis of risk progress below. Four (50%) of the scheduled risk progress reports report an increasing risk trend. More detail is available in the attached risk progress reports. Of the 10 top organisational risks in Enterprise Governance and Infrastructure and Asset Management Risks 60% identify the risk trend as increasing, 20% are stable and 20% are decreasing.

Risk progress reports – highlights and analysis:

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

2. ARF004 Asset Management Risk Progress Report. The inherent risk rating trend has been assessed as declining due to the implementation of two treatments - Asset Management Plans and project management framework – and progress made against other treatments.

3. ARF006 Project Priorities Deliveries Delays Risk Progress Report. The inherent risk rating trend has been assessed as increasing due to impact of the external environment we are working in. Issues being experienced are - contractor availability and increasing cost of labour and materials.

4. ARF012 Contract Management Risk Progress Report. The inherent risk rating trend has been assessed as stable due to the progress against treatments such as the new contracts register and contract management framework.

5. ARF014 Programme Darwin Risk Progress Report. The inherent risk rating trend has been assessed as increasing as treatments to reduce either the impact or probability of this risk are yet to be confirmed or implemented. A working group is to be established early 2022 with governance oversight provided by the Assurance, Risk and Finance Committee.

6. ARF017 Climate Change Direct Risk to Council Physical and Natural Assets Risk Progress Report. The inherent risk rating trend has been assessed as stable. Work is underway to identify a programme of treatments.

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

Group Risk Up-date

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

2 February 2022

6.3 Revenue Recovery report - 31 December 2021

File Number: A3550161

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 second 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 - 31 December 2021.

tĀHUHU KŌRERO / Background

· This document has been prepared to outline current and arrears balances for rates, water and Sundry debt as of 31 December 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 24% and water rates by 32%.

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 have completed calling all the owners of the 5 major banks, leaving the smaller financial institutions to be contacted.

· Since the start of the year, the number of properties still qualifying for mortgage demand was reduced by 32% as part of the pre-calling and owners either setting up a direct debit or paying the arrears balance.

· Since issuing the first mortgage demand with ASB before the lockdown in August 2021, no further mortgage demand has been issued and final demand is still on hold for ASB customers.

Next actions:

· Continue mortgage demand pre-calling for the smaller financial institutions and water accounts.

· Review all accounts still qualifying for mortgage demand with the 5 major banks.

· At the start of February, decide on the approach Council will take regarding mortgage demand this rating year, considering the economic and Covid-19 situation in NZ.

· 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 do not have a payment arrangement or direct debit set up on the account.

· 36% 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.

· 52% 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. The rates debt has reduced by 2.13% since the start of the year.

Sundry debtors debt

The total sundry debtors aged debt balance has reduced since the last report, although one large invoice for $1.2 million is still unpaid since the last report. Commitment to expedite payment this month has been received.

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. There has been a signification reduction in 30-to-60-day debt totals for both resource consents and building compared to previous reports.

Final demand letters have been issued to debtors with outstanding debt and some have been referred to Council Legal Services team to take legal action.

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. December 2021 ARF Revenue recovery Report attachment - A3550136 ⇩

Time:	9.30 am
Location:	Virtually via Microsoft Teams

	District Services Risk Dashboard	Review Date: 10/01/22 24 risks


	IAM Group Risk Dashboard	Review Date: 10/01/22 25 risks

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