Te Kaunihera o Tai Tokerau ki te Raki
AGENDA
Assurance, Risk and Finance Committee Meeting
Wednesday, 16 March 2022
Time: |
1:00 pm |
Location: |
Virtually via Microsoft Teams |
Membership:
Chairperson John Vujcich - Chairperson
Member Bruce Robertson – Deputy Chairperson
Mayor John Carter
Deputy Mayor Ann Court
Cr Mate Radich
Cr Rachel Smith
Cr Kelly Stratford
Cr Moko Tepania
Member Mike Edmonds – Kaikohe-Hokianga Community Board Chairperson
Member Adele Gardner – Te Hiku Community Board Chairperson
Authorising Body |
Mayor/Council |
|
Status |
Standing Committee |
|
COUNCIL COMMITTEE |
Title |
Assurance, Risk and Finance Committee Terms of Reference |
Approval Date |
19 December 2019 |
|
Responsible Officer |
Chief Executive |
Purpose
The purpose of the Assurance, Risk and Finance Committee (the Committee) is to assist and advise the Governing Body in discharging its responsibility and ownership of finance, risk and internal control.
The Committee will review the effectiveness of the following aspects:
· The robustness of financial management practices.
· The integrity and appropriateness of internal and external reports and accountability arrangements.
· The robustness of the risk management framework.
· The robustness of internal controls and the internal audit framework.
· Compliance with applicable laws, regulations, standards, and best practice guidelines.
· The establishment and maintenance of controls to safeguard the Council’s financial and non-financial assets.
· Data governance framework
To perform his or her role effectively, each Committee member must develop and maintain
his or her skills and knowledge, including an understanding of the Committee’s responsibilities, and of the Council’s business, operations, and risks.
Membership
The Council will determine the membership of the Assurance, Risk and Finance Committee including at least one independent appointment with suitable financial and risk management knowledge and experience.
The Assurance, Risk and Finance Committee will comprise of at least five elected members (one of which will be the chairperson), and one independent appointed member.
Mayor Carter |
John Vujcich – Chairperson |
Bruce Robertson – Deputy Chairperson and Independent Member of the Committee |
Moko Tepania |
Mate Radich |
Rachel Smith |
Kelly Stratford |
Ann Court |
Mike Edmonds |
Adele Gardner |
Non-appointed Councillors may attend meetings with speaking rights, but not voting rights.
Quorum
The quorum at a meeting of the Assurance, Risk and Finance Committee is 4 members.
Frequency of Meetings
The Assurance, Risk and Finance Committee shall meet every 6 weeks, but may be cancelled if there is no business.
Power to Delegate
The Assurance, Risk and Finance Committee may not delegate any of its responsibilities, duties or powers.
Committees Responsibilities
The Committees responsibilities are described below:
Financial systems and performance of the Council
· Review the Council’s financial and non-financial performance against the Long-Term Plan and Annual Plan
· Review Council quarterly financial statements and draft Annual Report
Far North Holdings Limited (FNHL)
· Recommend to Council the approval of statement of intent and Annual Report (s67 LGA)
· Receive 6 monthly report on operations (s66 LGA)
· Receive quarterly financial statements
· Recommend appointment of directors of FNHL
Risk Management
· Review appropriateness of Council’s risk management framework and associated procedures for effective risk identification, evaluation, and treatment
· Receive and review risk management dashboard reports
· Provide input, annually, into the setting of the risk management programme of work
· Receive updates on current litigation and legal liabilities
Internal Audit and Controls
· Review whether management has in place a current and comprehensive internal audit framework
· Receive and review the internal audit dashboard reports
· Provide input, annually, into the setting of the internal audit programme of work
· Review whether there are appropriate processes and systems in place to identify and investigate fraudulent behaviour
The Committee will manage Council’s relationship with external auditor.
The Committee will approve applications to declare land abandoned and any other such matters under the Rating Act.
Rules and Procedures
Council’s Standing Orders and Code of Conduct apply to all the committee’s meetings.
The Chair of the Committee will
submit a written report to the Chief Executive on an annual basis. The
review will summarise the activities of the Committee and how it has contributed to the Council’s
governance and strategic objectives. The Chief Executive
will place the report on the next available agenda of the governing body.
ASSURANCE, RISK AND FINANCE COMMITTEE - MEMBERS REGISTER OF INTERESTS
Name |
Responsibility (i.e., Chairperson etc) |
Declaration of Interests |
Nature of Potential Interest |
Member's Proposed Management Plan |
Hon John Carter QSO |
Board Member of the Local Government Protection Programme |
Board Member of the Local Government Protection Program |
|
|
Carter Family Trust |
|
|
|
|
John Vujcich (Chair) |
Board Member |
Pioneer Village |
Matters relating to funding and assets |
Declare interest and abstain |
Director |
Waitukupata Forest Ltd |
Potential for council activity to directly affect its assets |
Declare interest and abstain |
|
Director |
Rural Service Solutions Ltd |
Matters where council regulatory function impact of company services |
Declare interest and abstain |
|
Director |
Kaikohe (Rau Marama) Community Trust |
Potential funder |
Declare interest and abstain |
|
Partner |
MJ & EMJ Vujcich |
Matters where council regulatory function impacts on partnership owned assets |
Declare interest and abstain |
|
Member |
Kaikohe Rotary Club |
Potential funder, or impact on Rotary projects |
Declare interest and abstain |
|
Member |
New Zealand Institute of Directors |
Potential provider of training to Council |
Declare a Conflict of Interest |
|
Member |
Institute of IT Professionals |
Unlikely, but possible provider of services to Council |
Declare a Conflict of Interest |
|
Bruce Robertson (Deputy) |
Chair/Deputy Chair of a number of Audit and Risk Committees: Far North Auckland Bay of Plenty Regional Tauranga Thames Coromandel Hamilton Waipa Otorohanga Waitomo Environment Southland Invercargill Southland. |
|
There is a low level of there being a potential interest conflict. An outside potential is water reform and ‘discussion’ of one north regional water company in loving North AKD with Watercare. |
I remain aware of my roiled and will Raise any matter with the Mayor/CEO and chair of ARF should any matter potentially conflict. |
Currently None are North AKD. Previously I have Undertaken work on Okara Park with Whangarei DC. |
Advisory Work. |
Okara Park is a regional Stadium. Matter solely related Governance and role of DC. Low risk of conflict. |
|
|
Deputy Mayor Ann Court |
Waipapa Business Association |
Member |
|
Case by case |
Warren Pattinson Limited |
Shareholder |
Building company. FNDC is a regulator and enforcer |
Case by case |
|
Kerikeri Irrigation |
Supplies my water |
|
No |
|
District Licensing |
N/A |
N/A |
N/A |
|
Ann Court Trust |
Private |
Private |
N/A |
|
Waipapa Rotary |
Honorary member |
Potential community funding submitter |
Declare interest and abstain from voting. |
|
Properties on Onekura Road, Waipapa |
Owner Shareholder |
Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse) |
Declare interest and abstain from voting. |
|
Property on Daroux Dr, Waipapa |
Financial interest |
Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse) |
Declare interest and abstain from voting. |
|
Flowers and gifts |
Ratepayer 'Thankyou' |
Bias/ Pre-determination? |
Declare to Governance |
|
Coffee and food |
Ratepayers sometimes 'shout' food and beverage |
Bias or pre-determination |
Case by case |
|
Staff |
N/A |
Suggestion of not being impartial or pre-determined! |
Be professional, due diligence, weigh the evidence. Be thorough, thoughtful, considered impartial and balanced. Be fair. |
|
Warren Pattinson |
My husband is a builder and may do work for Council staff |
|
Case by case |
|
Ann Court - Partner |
Warren Pattinson Limited |
Director |
Building Company. FNDC is a regulator |
Remain at arm’s length |
Air NZ |
Shareholder |
None |
None |
|
Warren Pattinson Limited |
Builder |
FNDC is the consent authority, regulator and enforcer. |
Apply arm’s length rules |
|
Property on Onekura Road, Waipapa |
Owner |
Any proposed FNDC capital work in the vicinity or rural plan change. Maybe a link to policy development. |
Would not submit. Rest on a case-by-case basis. |
|
Mate Radich |
No form received |
|
|
|
Kelly Stratford |
KS Bookkeeping and Administration |
Business Owner, provides 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 |
|
Māori title land – Moerewa |
Shareholder |
None perceived |
If there was a conflict of interest, I would step aside from decision making |
|
Rachel Smith |
Friends of Rolands Wood Charitable Trust |
Trustee |
|
|
Mid North Family Support |
Trustee |
|
|
|
Property Owner |
Kerikeri |
|
|
|
Friends who work at Far North District Council |
|
|
|
|
Kerikeri Cruising Club |
Subscription Member |
|
|
|
Vision Kerikeri |
Financial Member |
|
|
|
Rachel Smith (Partner) |
Property Owner |
Kerikeri |
|
|
Friends who work at Far North District Council |
|
|
|
|
Kerikeri Cruising Club |
Subscription Member and Treasurer |
|
|
|
Vision Kerikeri |
Financial Member |
|
|
|
Town and General Groundcare Limited |
Director/Shareholder |
|
|
|
Moko Tepania |
Teacher |
Te Kura Kaupapa Māori o Kaikohe. |
Potential Council funding that will benefit my place of employment. |
Declare a perceived conflict |
Chairperson |
Te Reo o Te Tai Tokerau Trust. |
Potential Council funding for events that this trust runs. |
Declare a perceived conflict |
|
Tribal Member |
Te Rūnanga o Te Rarawa |
As a descendent of Te Rarawa I could have a perceived conflict of interest in Te Rarawa Council relations. |
Declare a perceived conflict |
|
Tribal Member |
Te Rūnanga o Whaingaroa |
As a descendent of Te Rūnanga o Whaingaroa I could have a perceived conflict of interest in Te Rūnanga o Whaingaroa Council relations. |
Declare a perceived conflict |
|
Tribal Member |
Kahukuraariki Trust Board |
As a descendent of Kahukuraariki Trust Board I could have a perceived conflict of interest in Kahukuraariki Trust Board Council relations. |
Declare a perceived conflict |
|
Tribal Member |
Te Rūnanga ā-Iwi o Ngāpuhi |
As a descendent of Te Rūnanga ā-Iwi o Ngāpuhi I could have a perceived conflict of interest in Te Rūnanga ā-Iwi o Ngāpuhi Council relations. |
Declare a perceived conflict |
|
Mike Edmonds |
Chair |
Kaikohe Mechanical and Historic Trust |
Council Funding |
Decide at the time |
Committee member |
Kaikohe Rugby Football and Sports Club |
Council Funding |
Withdraw and abstain |
|
Adele Gardner |
N/A - FNDC Honorarium |
|
|
|
Te Hiku Education Trust |
Trustee |
|
|
|
Te Ahu Charitable Trust |
Trustee |
|
|
|
ST Johns Kaitaia Branch |
Trustee/ Committee Member |
|
|
|
Te Hiku Sports Hub 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 |
16 March 2022 |
Assurance, Risk and Finance Committee Meeting
will be held in the Virtually via Microsoft Teams on:
Wednesday 16 March 2022 at 1:00 pm
Te Paeroa Mahi / Order of Business
1 Karakia Timatanga – Opening Prayer
2 Nga Whakapāha Me Ngā Pānga Mema / Apologies and Declarations of Interest
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes
5.1 Elected Members Sensitive Expenditure
5.2 People and Capability Quarterly Update: 1 October - 31 December 2021
5.3 Risk progress report for programme of externally funded projects.
5.4 March 2022 Risk Management Report
5.5 Council Financial Report for the Period Ending 31 January 2022
5.6 Far North Holdings Ltd - Half Year Financial Report 2021/22
5.7 Level of Service KPI Quarter 2 Performance Report for 2021-2022
5.8 Assurance, Risk and Finance Committee Action Sheet Update March 2022
6 Te Wāhanga Tūmataiti - Public Excluded 111
6.1 Confirmation of Previous Minutes 111
6.2 Technology Update Report 111
6.3 FNDC Current Legal Action Potential Liability Claims Report 111
7 Karakia Whakamutunga – Closing Prayer
8 Te Kapinga Hui / Meeting Close
2 Nga Whakapāha Me Ngā Pānga Mema / Apologies and Declarations of Interest
Members need to stand aside from decision-making when a conflict arises between their role as a Member of the Committee and any private or other external interest they might have. This note is provided as a reminder to Members to review the matters on the agenda and assess and identify where they may have a pecuniary or other conflict of interest, or where there may be a perception of a conflict of interest.
If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the meeting or of the relevant item of business and refrain from participating in the discussion or voting on that item. If a Member thinks they may have a conflict of interest, they can seek advice from the Chief Executive Officer or the Team Leader Democracy Support (preferably before the meeting).
It is noted that while members can seek advice the final decision as to whether a conflict exists rests with the member.
3 Te Tono Kōrero / Deputation
Troy Churton
16 March 2022 |
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes
File Number: A3612443
Author: Rhonda-May Whiu, Democracy Advisor
Authoriser: Aisha Huriwai, Team Leader Democracy Services
Purpose of the Report
The minutes are attached to allow the Committee to confirm that the minutes are a true and correct record of previous meetings.
That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 2 February 2022 as a true and correct record. |
1) Background
Local Government Act 2002 Schedule 7 Section 28 states that a local authority must keep minutes of its proceedings. The minutes of these proceedings duly entered and authenticated as prescribed by a local authority are prima facie evidence of those meetings.
2) Discussion and Options
The minutes of the meetings are attached.
Far North District Council Standing Orders Section 27.3 states that no discussion shall arise on the substance of the minutes in any succeeding meeting, except as to their correctness.
Reason for the recommendation
The reason for the recommendation is to confirm the minutes are a true and correct record of the previous meetings.
3) Financial Implications and Budgetary Provision
There are no financial implications or the need for budgetary provision as a result of this report.
1. 2022-02-02 Assurance, Risk and Finance Committee Minutes - A3572441 ⇩
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 |
16 March 2022 |
MINUTES OF Far North District Council
Assurance, Risk and
Finance Committee Meeting
HELD AT THE Virtually
via Microsoft Teams
ON Wednesday, 2
February 2022 AT 9.30 am
PRESENT: Chairperson John Vujcich, Member Bruce Robertson, 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 Vujcich commenced the meeting and opened with a karakia.
2 Ngā Whakapāha Me Ngā Pānga Mema / Apologies and Declarations of Interest
Apologies were received from His Worship the Mayor and from Member Adele Gardner for early departure at 12pm. Apologies for late arrival also received from Cr Rachel Smith.
3 Ngā Tono Kōrero / Deputation
There were no deputation requests for this meeting.
4 Confirmation of Previous Minutes
4.1 Confirmation of Previous Minutes Agenda item 4.1 document number A3525653, pages 12 - 19 refers. |
Resolution 2022/1 Moved: Cr Kelly Stratford Seconded: Member Adele Gardner 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. In Favour: Deputy Mayor Ann Court, Crs John Vujcich, Member Bruce Robertson, Mate Radich, Kelly Stratford, Moko Tepania, Members Mike Edmonds and Adele Gardner Against: Nil Carried |
Agenda item 5.1 document number A3545470, pages 20 - 26 refers. |
Resolution 2022/2 Moved: Member Bruce Robertson Seconded: Chairperson John Vujcich That the Assurance, Risk and Finance Committee approves the removal of ARF009 Customer Service Delivery risk from the organisational risk dashboard. In Favour: Deputy Mayor Ann Court, Crs John Vujcich, Member Bruce Robertson, Mate Radich, Kelly Stratford, Moko Tepania, Members Mike Edmonds and Adele Gardner Against: Nil Carried |
Attendance: 10:05 am Cr Rachel Smith joined the meeting.
6.1 Council Financial Report for the Period Ending 30 November 2021 Agenda item 6.1 document number A3542579, pages 27 - 48 refers. |
Resolution 2022/3 Moved: Deputy Mayor Ann Court Seconded: Cr Kelly Stratford That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 30 November 2021. In Favour: Deputy Mayor Ann Court, Crs John Vujcich, Member Bruce Robertson, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania, Members Mike Edmonds and Adele Gardner Against: Nil Carried |
6.2 February 2022 Risk Management Report Agenda item 6.2 document number A3547055, pages 49 - 75 refers. |
Resolution 2022/4 Moved: Cr Kelly Stratford Seconded: Member Bruce Robertson That the Assurance, Risk and Finance Committee receive the report February 2022 Risk Management Report. In Favour: Deputy Mayor Ann Court, Crs John Vujcich, Member Bruce Robertson, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania, Members Mike Edmonds and Adele Gardner Against: Nil Carried |
6.3 Revenue Recovery report - 31 December 2021 Agenda item 6.3 document number A3550161, pages 76 - 80 refers. |
Resolution 2022/5 Moved: Cr Kelly Stratford Seconded: Cr Rachel Smith That the Assurance, Risk and Finance Committee receive the report Revenue Recovery report - 31 December 2021. In Favour: Deputy Mayor Ann Court, Crs John Vujcich, Member Bruce Robertson, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania, Members Mike Edmonds and Adele Gardner Against: Nil Carried |
6.4 Assurance, Risk and Finance Committee Action Sheet Update February 2022 Agenda item 6.4 document number A3559202, pages 81 - 82 refers. |
Resolution 2022/6 Moved: Chairperson John Vujcich Seconded: Cr Rachel Smith That the Assurance, Risk and Finance Committee receive the report Action Sheet Update February 2022. NOTE: Program Darwin Working Group action update to be included in the ARF Action Sheet (Requested by Cr Smith). In Favour: Deputy Mayor Ann Court, Crs John Vujcich, Member Bruce Robertson, Mate Radich, Rachel Smith, Moko Tepania, Members Mike Edmonds and Adele Gardner Against: Nil Carried |
7 Te Wāhanga Tūmatati / Public Excluded
RESOLUTION TO EXCLUDE THE PUBLIC
Resolution 2022/7 Moved: Cr Rachel Smith Seconded: Member Adele Gardner 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:
In Favour: Deputy Mayor Ann Court, Crs John Vujcich, Member Bruce Robertson, Mate Radich, Rachel Smith, Moko Tepania, Members Mike Edmonds and Adele Gardner Against: Nil Carried The meeting adjourned at 10:54 am – reconvened at 11:00 am. |
7.4 Confirmation of Decisions to be Released in Public |
Resolution 2022/4 Moved: Cr Kelly Stratford Seconded: Member Adele Gardner 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. · 7.2 Technology Update Report · 7.3 February 2022 Audit And Assurance Report
In Favour: Deputy Mayor Ann Court, Crs John Vujcich, Member Bruce Robertson, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania, Members Mike Edmonds and Adele Gardner Against: Nil Carried |
8 Karakia Whakamutunga – Closing Prayer
Cr Moko Tepania closed the meeting with a karakia.
9 tE kAPINGA hUI / Meeting Close
The meeting closed at 11:44 am.
The minutes of this meeting will be confirmed at the Assurance, Risk and Finance Committee Meeting held on 16 March 2022.
...................................................
CHAIRPERSON
16 March 2022 |
5.1 Elected Members Sensitive Expenditure
File Number: A3580285
Author: Rhonda-May Whiu, Elected Member Administrator
Authoriser: William J Taylor MBE, General Manager - Corporate Services
TAKE PŪRONGO / Purpose of the Report
To provide information on all expenses incurred by Elected Members this period that are considered sensitive.
WHAKARĀPOPOTO MATUA / Executive SummarY
All Elected Member Sensitive Expenditure incurred from 1 October to 31 December 2021 was $1,412.59.
That the Assurance, Risk and Finance Committee receive the report Elected Members Sensitive Expenditure for the period ending 31 December 2021. |
tĀHUHU KŌRERO / Background
Formal reporting of all Elected Member expenses is a best practice recommendation from Audit New Zealand. Reimbursement of expenses processed as part of the fortnightly pay claim process are also included in the attached figures. This report reflects the months in which payments were processed and do not necessarily reflect the months when the expenses were incurred. Elected Member Sensitive Expenditure is any council expenditure where there may be a perceived personal benefit to an Elected Member.
Elected Member Sensitive Expenditure year to date for the 2021-2022 financial year:
1 July to 30 September 2021 |
$ 5,430.39 |
1 October to 31 December 2021 |
$ 1,412.59 |
Financial Year Total |
$ 6,842.98 |
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
This information will be reported quarterly to the Assurance, Risk and Finance Committee.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
This report identifies financial expenditure that has occurred from 1 October to 31 December 2021.
1. Elected Member sensitive expenditure Oct - Dec 2021 - A3618447 ⇩
16 March 2022 |
5.2 People and Capability Quarterly Update: 1 October - 31 December 2021
File Number: A3600993
Author: Mia Haywood, People and Capability Data and Systems Specialist
Authoriser: Jill Coyle, Chief People Officer
TAKE PŪRONGO / Purpose of the Report
The purpose of this report is to present the Audit, Risk and Finance Committee with the quarterly update for People and Capability.
WHAKARĀPOPOTO MATUA / Executive SummarY
Included in the report is information on:
· Staff Turnover.
· Exit Interviews and Analysis.
· Personal Grievances; and
· Disciplinary Actions and Costs.
That the Assurance, Risk and Finance Committee receive the report People and Capability Quarterly Update: 1 October - 31 December 2021. |
tĀHUHU KŌRERO / Background
This report will be presented to the Audit, Risk and Finance Committee on a quarterly basis.
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
This report is Information only.
1. ARF Turnover Report 1 October 2021 31 December 2021 - A3600985 ⇩
16 March 2022 |
5.3 Risk progress report for programme of externally funded projects.
File Number: A3602959
Author: Tanya Reid, Business Improvement Specialist
Authoriser: William J Taylor MBE, General Manager - Corporate Services
TAKE PŪRONGO / Purpose of the Report
To provide a risk progress report on the risks associated with the programme of the externally funded “shovel ready” projects that form part of the Governments economic response to the COVID-19 pandemic. No decision is required.
WHAKARĀPOPOTO MATUA / Executive SummarY
As a part of the current government’s economic response to the COVID-19 pandemic Council have secured external project funds. The goal of this funding is to provide economic stimulus and employment opportunity within the Far North District.
This risk progress report provides an up-date to inform the Assurance, Risk and Finance Committee, in their governance role, how we are managing the uncertainty associated with this programme of externally funded projects.
As these externally funded projects are completed the funding risk to Council will continue to diminish.
That the Assurance, Risk and Finance Committee receive the report Risk progress report for programme of externally funded projects. |
tĀHUHU KŌRERO / Background
As part of the government response to the expected negative economic impact of the COVID-19 pandemic, central government provided a number of infrastructure funds to stimulate the economy. Council bid, and won, funding for a programme of “externally funded” projects. (These projects are also known as “ESEO” (economic stimulus, employment opportunity) projects and for clarity will be referred to, within this report, as externally funded.
The characteristics of these externally funded projects are:
· that they are either wholly, or partially, externally funded
· may involve multiple funding streams
· with different funding requirements and conditions
· have multiple stakeholders, who may also be the project lead
· have short milestone timelines associated with the delivery of the projects the funding is intended for.
Four externally funded project risks were identified and presented to the Assurance, Risk and Finance Committee in October 2020. These risks are (see table 1 for a full description):
1. Complexity external funding
2. Funding gap
3. Impact on rates
4. Disruptions
These four risks are classified as organisational risks in the Operational/Financial category (whole of business view of FNDC performance including service/services delivery, risk, finance, environmental). Organisational risks may impact on council achieving its vision, mission and community outcomes. Each of the risks has been assessed as medium impact and likely to occur. The risks are recorded in the IAMs Risk Register where Treatment owners and progress is also recorded.
FNDC:
Council is leading number of projects with funding agreements funded through central government infrastructure funds which were released to stimulate the economy after the first COVID-19 2020 lockdown. It is currently delivering on six funding agreements (A); has completed four funding agreements (B); deferred one project (C); two NTA led projects have been completed (D):
A. By funding agreement, projects Council is currently delivering are:
1. Te Hiku Revitalisation
2. Waipapa Sports Hub
3. Kerikeri Domain
4. Strategic Roads – Priority 1 Routes (Ngapipito Rd & Peria Rd) to provide supplementary tarmacked routes for logging and agricultural trucks
5. Ruapekapeka roading upgrade
6. *Lindvart Park Sports Hub
Lindvart Park Sports Hub was added to the original programme of “externally funded” projects of funded projects at the request of the CEO.
B. Externally funded projects which are now completed are:
1. Otiria Rugby Club
2. Innovating streets:
a. Kawakawa safety and streetscape improvement
b. Tai Tokerau Kaikohe Safe Streets
c. Moerewa Safe Streets
C. Externally funded projects deferred to a later date, as agreed by Council 16/12/2021:
1. *NAX Kawakawa to Opua Rail restoration with Council funded cycle trail.
*the funding was awarded directly to the Bay of Islands Vintage Railway Trust. This was a joint project with Council undertaking the construction of a parallel cycleway. The cycleway (deferred) was to be solely funded by FNDC.
D. NTA led projects, completed
1. Minor Roading and Parks clearance works
2. Storm water repair programme.
Additional to the funding agreements above central government infrastructure funds are supporting:
1. Te Ha o te Ao – this is a community led project (inflight)
2. Inflight capital delivery projects (one Provincial Development funding agreement)
a. Northern Animal Shelter (completed)
b. Southern Animal Shelter (inflight).
Far North Holdings Limited:
FNHL is also leading projects funded through central government infrastructure funds released to stimulate the economy after the first COVID-19 2020 lockdown. These are:
1. Mangonui Waterfront Development
2. Paihia Waterfront Development
3. Ngawha Innovation Park
4. Pukenui Wharf
5. Rangitane Boat Ramp
6. Unahi Jetty
The FNHL led projects pose a different risk to Council (than do the funding agreements where we are the lead). Whereas the Council led projects posed more of delivery risk, the FNHL projects risk is more financial and reputational for Council, being more aligned to risk 2, Funding Gap, and risk 3, Impact on rates statements, see table one below. Further work, to understand Council’s risk position, could be provided in the next risk progress report.
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
This risk progress information report provides a high-level risk update in four parts:
A. Treatment progress by risk
B. Reporting
C. High level organisational risk assessment against each of the funding agreements
D. Progress on achieving Government’s overarching goals
A. A range of treatments, for each of the four externally funded project risks, have been implemented. Most of these risks are now fully mitigated. A summary is provided in table 1, below:
Risk |
Score |
Because of …. |
There is a chance that…. |
Leading to…. |
Treatments: |
1 Complexity external funding |
29 |
The high level of complexity of the ESEO externally funded FNDC led projects: · short timelines to complete CAPEX projects · multiple funding pots · multiple external parties/stakeholders involved · different funding requirements · different external parties can be leading the projects e.g., FNHL |
Projects may not proceed, may be delayed or not completed. |
Loss of funding; Reputational risk; Uncompleted projects; Legal / compliance disputes; Extended timelines; and/or Requirement for additional FNDC funding. |
In place: Central register capturing key governance and management information. In place: Establish Programme Steering Group. In place: Utilise project management methodology with risk analysis. Completed: Appoint professionally qualified project managers; In place: Using standard Council procurement strategy. Completed: Contractor engagement/information workshop held In place: Separate team to deliver the externally funded projects. In place: consultation plan and process for all projects. In place: Council approved amendments to FNDC process |
2 Funding gap |
29 |
Projects are not fully funded, or funding agreements are not honoured or able to be honoured by the legal entities who sign the funding agreements with Government. |
Council may need to find additional funding to complete projects or projects may be abandoned |
Council’s reputational damage; Increased borrowing to fund; Funding re-allocated from planned work; so annual plan objectives are not met; Increase risk to Council of asset failures; and/or Council has white elephants on the books. |
Completed: Review project funding commitments mid-September before. Completed: As the funding applicant understand Council’s obligations to funding providers; In place: Elected Member engagement strategy; monthly reporting into MBIE and discussions both local and in Wellington. In place: Funding agreements are in place for all projects we are in control of. |
3 Impact on rates |
25 |
Impact to long term rate payer funding requirements due to operational budget requirements / depreciation and upgrading of new assets. |
There may be a need to increase rates to fund OPEX, depreciation and CAPEX requirements |
Additional costs to rate payers (as increased rates) impacting affordability across the district and negatively impacting current growth forecasts. |
Completed: Model financial implications to understand future operational requirements/costs, which includes costs to fund any community entity via a grant to manage an asset, including depreciation and renewal costs and their impact on rates; To be completed: Model the economic benefits to the ratepayers, their ability to earn greater income in the future from these projects (affordability metric); Ongoing: Internal appointment of dedicated financial accountant. Weekly reporting into finance team. |
4 Disruptions |
21 |
Disruption(s), out of our control (e.g., Drought / COVID-19), to agreed project timeline · disrupted supply chains; · shortages of required goods and services; and/or · need to halt the project as we are unable to work. |
We may not be able to deliver to, or renegotiate, the agreed milestones |
Failure to deliver the project as project milestones that are linked to the funding payments are not achieved; or Additional cost to rate payers to complete the project |
Ongoing: Focus on local business reduces risk of supply chain disruptions. Ongoing: Monitor external environment and modify project plans as required.; Ongoing: Follow H&S protocols. |
Assurance, Risk and Finance Committee Meeting Agenda |
16 March 2022 |
B. To support and monitor this programme of work a three-part structured reporting programme is in place:
1. The Programme Steering Group meets four weekly to receive a brief report on each of the externally funded projects and to decide key legal and funding arrangements such as ownership of assets created
2. Regular monthly reporting to SLT Performance Meeting
3. Regular monthly reporting into IAMs Business Report.
C. High level organisational risk assessment against each of the funding agreements
The highest organisational risk would be not meeting the funding agreement milestones. To date this has been well managed, with quick delivery supported by good reporting to MBIE; and as required timelines have been renegotiated with MBIE. We are fully up to date with invoicing against all milestones, on all projects.
A by project organisational risk assessment has been competed for each of the externally funded projects. This information is captured in Table 2 which also provides a high-level status.
Table 2: Organisational risk assessment by funding agreement:
Funding Agreement |
Status |
Organisational risk assessment |
1. Te Hiku Revitalisation |
Multiple projects |
Low risk No issues |
2. Waipapa Sports Hub |
Physical works started |
Medium risk Issue: waiting for resource consent to be issued |
3. Kerikeri Domain |
Construction 65% complete Remaining 35% construction will be completed by May 22 |
Low risk No issues |
4. Innovating streets: a. Kawakawa safety and streetscape improvement b. Tai Tokerau Kaikohe Safe Streets c. Moerewa Safe Streets |
Completed |
No risk – funding received. |
5. Otiria Rugby Club |
Completed |
No risk – funding received. |
6. Strategic Roads – Priority 1 Routes (Ngapipito Rd & Peria Rd) |
Delivery phase 95% complete |
Low risk Slip damage repair work to be completed |
7. Ruapekapeka roading upgrade |
Delivery phase 60% complete |
Low risk
|
8. NAX Kawakawa to Opua Rail restoration with Council funded cycle trail. |
Deferred |
|
9. Lindvart Park Sports Hub. |
Design |
High risk Insufficient budget to undertake the planned works. A request has been made by Council to review and reverse engineer a number of the costs overrun items of scope. *Note since this report was drafted council has received a workshop type briefing on Lindvart Park. |
D. The Government goals for this funding are to generate economic stimulus and employment opportunity within the Far North District. These goals can be categorised as:
1. Jobs and careers
2. Arresting and reversing environmental degradation
3. Partnering with Tangata Whenua
4. Growing the local market
5. Ratepayer affordability
The dashboard below provides the latest update on achieving these goals:
Kaitaia wins 2021 Most Beautiful Small Town
Keep NZ Beautiful awards winners demonstrate a strong community spirit and have created an environment that other towns and cities would aspire to. This award acknowledges the positive actions that have been taken by councils to protect and enhance their local environments and is judged across criteria such as litter prevention/waste minimisation, community beautification projects, recycling projects and sustainable tourism attractions.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
This report does not identify nor request additional budgetary provision.
Nil
16 March 2022 |
5.4 March 2022 Risk Management Report
File Number: A3605379
Author: Tanya Reid, Business Improvement Specialist
Authoriser: William J Taylor MBE, General Manager - Corporate Services
TAKE PŪRONGO / Purpose of the Report
To provide an information report on organisational risk management, emergent risk, scheduled risk progress reports for the organisation’s top risks and business continuity planning.
No decision is required.
WHAKARĀPOPOTO MATUA / Executive SummarY
Risk progress updates are provided for three of the top organisational risks. This includes the first risk progress reports for ARF015 Climate Change Organisation Transition Risk and ARF016 Climate Change Community Transition Risk. The risk trend is stable for all scheduled risk progress reports.
Additionally, the Assurance, Risk and Finance Committee agenda includes an information risk progress report on the externally funded project risks.
Within Council risk management at a group and departmental level continues as does identifying essential services to be supported by business continuity plans. This report includes an up-date on our progress to implement a legislative compliance system and establishment of the Affordability Risk reference Group.
That the Assurance, Risk and Finance Committee receive the report March 2022 Risk Management Report. |
tĀHUHU KŌRERO / Background
The top organisational risks are risks that may impact on Council achieving its vision, mission and community outcomes and are regularly reported to the Assurance, Risk and Finance Committee to ensure they are being appropriately managed. A number of these risks are subject to external influences which may affect effective council operations.
Table 1 provides a risk snapshot of the Assurance, Risk and Finance Committee Organisational Risk Dashboard with inherent and residual risk scores as accepted by this Committee, risk owners, risk progress report frequency and the risk trend as assessed by the risk subject matter experts. These risks are categorised into three themes – Climate Change, Enterprise Governance and Infrastructure and Asset Management Risks.
Table 2 details the 2022 deep dive programme and risk progress report schedule, as agreed by Assurance, Risk and Finance Committee. The schedule has synchronised risk progress reports to enable the Assurance, Risk and Finance Committee to view reports on interconnected risks.
|
|
|||||
Risk ID: |
Risk title |
Inherent risk score |
Residual risk score |
The risk trend is: |
Months since risk trend last changed: |
High level risk treatment progress: |
ARF015 |
Climate Change Organisation Transition Risk |
31 |
|
Stable |
0 |
The Climate Change Risk Reference Group is working to develop an understanding of treatments in place, in progress and gaps/opportunities. |
ARF016 |
Climate Change Community Transition Risk |
39 |
|
Stable |
0 |
The Climate Change Risk Reference Group is working to develop an understanding of treatments in place, in progress and gaps/opportunities. |
ARF017 |
Climate Change Direct Risk to Council Physical and Natural Assets |
37 |
|
Stable |
2 |
The Climate Change Risk Reference Group is working to develop an understanding of treatments in place, in progress and gaps/opportunities. |
ARF018 |
Failure to understand and capture climate-related opportunities |
29 |
|
|
|
The Climate Change Risk Reference Group is working to develop an understanding of opportunities. |
ARF003 |
Health & Safety Vulnerabilities |
46 |
34 |
Increasing |
14 |
Not all treatment plan progress is to schedule; increase in threatening behavior from the public; ongoing non-compliance with Health and Safety at Work Act regulations across our assets. |
ARF005 |
Affordability Risk |
45 |
26 |
Increasing |
21 |
An Affordability Risk Reference Group has been established with a work programme which includes theming and prioritizing the organisational Affordability risk(s). Terms of reference have been agreed. |
ARF010 |
Data Governance Risks |
39 |
14 |
Increasing |
3 |
While good progress has been made to implementing treatments, cyber security remains an ongoing risk. |
ARF004 |
Asset Management Risks |
45 |
18 |
Decreasing |
2 |
Asset Management Plans and project management framework are implemented with good progress made against other treatments. |
ARF006 |
Project Priorities Deliveries Delays |
45 |
14 |
Increasing |
2 |
The external environment is impacting this risk with issues being experienced such as contractor availability and increasing cost of labour and materials. |
ARF007 |
Compliance NRC Abatements |
45 |
18 |
Increasing |
3 |
NRC are increasing the use of abatement notices as a key part of their compliance strategy. Legislative and regulatory change currently being faced. |
ARF012 |
Contract Management Risks |
39 |
14 |
Stable |
21 |
Treatments such as the new contracts register, and contract management framework are progressing. |
ARF013 |
Drinking Water Resilience |
35 |
|
Stable |
15 |
|
ARF014 |
Programme Darwin |
35 |
13 |
Increasing |
4 |
Treatments to reduce either the impact or probability of this risk are yet to be confirmed or implemented. |
Table 2: 2022 Deep dive programme and risk progress report schedule
|
2022 ARF meeting date: |
02/02 |
16/03 |
27/04 |
22/06 |
31/08 |
|
Deep Dive Programme: |
|
|
Review Risk Management Policy Affordability risks |
Climate Change – Treatment mapping / residual risk |
Infrastructure & Asset Management risks |
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 |
|
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 |
|
|
|
Organisational risk management
To address the legal compliance risk of our rapidly evolving and complex regulations Council has entered into an agreement with ComplyWith. ComplyWith provides a generic legal compliance system with the content needed for local government (the Obligations Register), mapping these obligations to the responsible staff member. Council can then complete surveys to determine compliance. Sharing of this information is supported by dashboards, reporting and tracking of corrective actions. It is expected to have the implementation and the first survey completed by end May 2022.
Emergent 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. |
5. 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. |
6. Ngapuhi Mana Whakahono ā Rohe. |
Feb 2022 |
This emergent risk is focussed on our ability to meet the statutory timeframe to review all Council policies and process within six months of completing a Whakahono ā Rohe. 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. |
Organisational risk progress reports:
A cross organisation Affordability Risk Reference Group has been established. Terms of reference and work programme have been agreed. The work programme includes theming and prioritising the organisational Affordability risk(s).
Risk progress reports – highlights and analysis:
1. ARF013 Drinking Water Resilience Risk Progress Report. The inherent risk rating trend has been assessed as stable with up-dating of water safety plans on track to be completed by 31 March 2022.
2. ARF015 Climate Change Organisation Transition Risk Progress Report. The inherent risk rating trend has been assessed as stable with the Climate Change Risk Reference Group working to develop an understanding of treatments in place, in progress and gaps/opportunities. The implementation of ComplyWith will support Council to understand both our climate change obligations and reporting requirements.
3. ARF016 Climate Change Community Transition Risk Progress Report. The inherent risk rating trend has been assessed as stable with the Climate Change Risk Reference Group working to develop an understanding of treatments in place, in progress and gaps/opportunities.
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.
|
District Services Risk Dashboard |
Review Date: 23/02/2023 24 risks |
|
|
|
|
IAM Group Risk Dashboard |
Review Date: 23/2/2022 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 |
||
Assurance, Risk and Finance Committee Meeting Agenda |
16 March 2022 |
Business continuity arrangements
The COVID-19 crisis response and crisis management teams continue to manage the Council’s COVID-19 response up-dating protocols as the Government has introduced new measures in response to Omicron.
Progress to refresh Council’s business continuity arrangements:
Corporate Services: Essential services have been identified and agreed for development of Business Continuity Plans. These are now being drafted by the responsible teams.
IAM: District Facilities have identified and agreed essential services for development of Business Continuity Plans. These are now being drafted by the responsible teams.
People & Capability have completed their business continuity plan.
The District Services and Strategic Planning & Policy Groups have completed their business continuity plans for essential services.
In total 15 business continuity plans have been completed.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
No additional budgetary provision is requested.
1. 2022 03 ARF013 Drinking Water Resilience Risk Progress Report - A3603024 ⇩
2. 2022 03 ARF015 Climate Change Organisation Transition Risk Progress Report - A3605282 ⇩
3. 2022 03 ARF016 Climate Change Community Transition Risk Progress Report - A3605284 ⇩
16 March 2022 |
5.5 Council Financial Report for the Period Ending 31 January 2022
File Number: A3607406
Author: Angie Thomas, Manager - Accounting Services
Authoriser: Janice Smith, Chief Financial Officer
TE TAKE PŪRONGO / Purpose of the Report
To provide an overview and information on the current financial position and performance of the Far North District Council as of 31 January 2022.
TE WHAKARĀPOPOTO MATUA / Executive SummarY
This report provides a summary overview, Statement of Financial Performance, Capital Performance and Borrowing and Investment reports.
NGĀ TŪTOHUNGA / Recommendation That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 31 January 2022. |
TE tĀHUHU KŌRERO / Background
This report provides financial information as of 31 January 2022.
TE MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
The report is for information only.
NGĀ PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
There are no financial implications or budgetary provisions required as a result of this report.
1. Council Financial Report Jan 2022 (Pd7) FINAL - A3613060 ⇩
16 March 2022 |
5.6 Far North Holdings Ltd - Half Year Financial Report 2021/22
File Number: A3613506
Author: Janice Smith, Chief Financial Officer
Authoriser: William J Taylor MBE, General Manager - Corporate Services
TAKE PŪRONGO / Purpose of the Report
To report the financial position of Far North Holdings Limited (FNHL) as at 31 December 2021
WHAKARĀPOPOTO MATUA / Executive SummarY
This report is the half year report for the financial year 2021/221.
That the Assurance, Risk and Finance Committee receive the report Far North Holdings Ltd - Half Year Financial Report 2021/22. |
tĀHUHU KŌRERO / Background
In line with the Council resolution of 23 April 2020 in which Council resolved the following:
Resolution 2020/21
Moved: Mayor John Carter
Seconded: Cr Dave Collard
That Council:
a) accept the Half Year Report from Far North Holdings Limited:
b) request that future reports contain the following information.
i) annual and Year to Date budget,
ii) commentary on any significant variances, and
iii) detail of significant income and expenditure, for example fees & charges and salaries to aid the shareholder understanding of the financial position.
The December 2021 half year financial report is the second report received for the current financial year.
MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps
There is confidence that Stage 1 of Ngawha Innovation and Enterprise Park will open by the end of 2022 despite supply chain issues with building materials. Work is progressing with all aspects of the buildings, with consent applications being lodged with Council for the new Department of Corrections facility and the first crop of berries from Kaikohe Berryfruit Ltd expected later this year.
The Kamo Road housing project is expected to open in Feb 2022, and a new partnership has been established to build 60 units on the RSA site in Kaikohe, work expected to start after 1st July 2022.
Interest rate cover ratio represents how many times the company can pay its obligations using earnings – it improved from 2.34 at 31 Dec 2020 to 3.4 at 31 Dec 2021, but it slightly deteriorated from 3.59 at 30 Sep 2021.
Equity/asset ratio illustrates how the company pays for its assets, so the lower it is, the more debt the company has used to pay for them – it was largely the same as reported at 31 Dec 2020 at 52.77% versus 52.4% as at 31 Dec 2021 and decreased from 54.28% at 30 Sep 2021.
Covid continues to hinder tourism in Northland, so rent relief is still being provided to the effected tenants, and further support is expected to be provided to those tenants that continue to be affected.
Operating surplus decreased from $879k to $868k between 31 Dec 2020 and 31 Dec 2021, a reduction of 1.25%, but compared to budget, it was significantly reduced by 23% against the $1,124k budgeted for due to:
· Reduction in Rental income, from $1,997k to $1,802k, 10% - due to rent relief and delay to rental of Kamo Road housing development due to Covid lockdowns.
· Increase in Commission, $6k budget to $33k actual, 451% - due to marina berth demand, for which FNHL receive a commission on each sale that is made.
· Reduction in Finance income, from $3k budget to ($6k) actual, 270% reduction due to reversal of finance charges to debtors through non-payment.
· Increase in Employee benefit expenses, $1,678k budget to $1,994k actual, 19% - due to staff being retained on full pay during lockdowns, but working additional hours once returned to work so overtime costs increased, and a tight labour market and wage inflation has resulted in higher salaries, together with the living wage being adopted as a minimum wage.
· Reduced inventories from $802k budget to $700k actual, 13% and reduced goods sold $1,004k budget to $916k actual, 9% - both are attributable to fuel purchases. A combination of reduced tourism operations in the BOI and consolidation within the market with the sale of Intercity to Explore who have alternative fuel suppliers.
· Increased Finance expenses $594k budget to $675k actual, 14% - due to working capital requirements and project spend being earlier than anticipated.
PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision
The are no financial implications arising from this report.
1. FNHL Half Year Report 21.22 - A3613480 ⇩
16 March 2022 |
5.7 Level of Service KPI Quarter 2 Performance Report for 2021-2022
File Number: A3613719
Author: Jarna Sherry, Accounting Support Officer
Authoriser: Janice Smith, Chief Financial Officer
Purpose of the Report
The purpose of this report is to present the Level of Service KPI Performance Report for the Assurance, Risk and Finance Committee’s consideration.
Executive Summary
This report is to present the level of service KPI performance report for the Assurance, Risk and Finance committee’s consideration.
That the Assurance, Risk and Finance Committee receive the Level of Service KPI Quarter 2 Performance Report for 2021-2022. |
Background
An overview of staffing and financial data is included to give an overall picture of the activity groups, and what factors may have an influence on performance.
Discussion and Next Steps
This report is for information only.
Financial Implications and Budgetary Provision
There are no financial implications or budgetary provision needed as a result of this report.
1. Level of Service Report Q2 2021-2022 - A3612225 ⇩
16 March 2022 |
5.8 Assurance, Risk and Finance Committee Action Sheet Update March 2022
File Number: A3618375
Author: Marlema Baker, Meetings Administrator
Authoriser: Aisha Huriwai, Team Leader Democracy Services
Take Pūrongo / Purpose of the Report
To provide the Assurance, Risk and Finance Committee with an overview of outstanding decisions from 1 January 2020.
WhakarĀpopoto matua / Executive Summary
· Council staff have reintroduced action sheets as a mechanism to communicate progress against decisions/resolutions and confirm when decisions have been implemented.
· The focus of this paper is on decisions made by the Assurance, Risk and Finance.
· Action sheets are also in place for Council and Community Boards.
· There are no outstanding or overdue actions for the Assurance, Risk and Finance.
· All actions for the Assurance, Risk and Finance Committee from 1 January 2020 have been completed.
That the Assurance, Risk and Finance Committee receive the report Action Sheet Update March 2022. |
1) TĀhuhu kŌrero / Background
The Democracy Services Team have been working on a solution to ensure that elected members can receive regular updates on progress against decisions made at meetings, in alignment with a Chief Executive Officer key performance indicator.
Action sheets have been designed as a way to close the loop and communicate with elected members on the decisions made by way of resolution at formal meetings. Action sheets are not intended to be public information but will provide updates to elected members, who, when appropriate can report back to their communities and constituents.
There are no outstanding or overdue actions for the Assurance, Risk and Finance. All actions for the Assurance, Risk and Finance from 1 January 2020 have been completed.
2) matapaki me NgĀ KŌwhiringa / Discussion and Options
The outstanding tasks are multi-facet projects that take longer to fully complete. The Democracy Services staff are working with staff to ensure that the project completion times are updated so that action sheets provided to members differentiate between work outstanding and work in progress.
Take Tūtohunga / Reason for the recommendation
To provide the Assurance, Risk and Finance with an overview of outstanding committee decisions from 1 January 2020. There are no outstanding or overdue actions for the Assurance, Risk and Finance. All actions for the Infrastructure Committee from 1 January 2020 have been completed.
3) PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision
There are no financial implications or need for budgetary provision in receiving this report.
Nil
16 March 2022 |
6 Te Wāhanga Tūmatati / Public Excluded
RESOLUTION TO EXCLUDE THE PUBLIC
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:
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