Te Kaunihera o Tai Tokerau ki te Raki

 

 

AGENDA

 

Assurance, Risk and Finance Committee Meeting

 

Wednesday, 1 December 2021

 

 

Membership:

Chairperson John Vujcich

Deputy Chairperson Bruce Robertson

Mayor John Carter

Deputy Mayor Ann Court

Cr Mate Radich

Cr Rachel Smith

Cr Kelly Stratford

Cr Moko Tepania

Member Mike Edmonds

Member Adele Gardner

 

 

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

Purpose

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

 

The Committee will review the effectiveness of the following aspects:

·                The robustness of financial management practices.

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

·                The robustness of the risk management framework.

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

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

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

·                Data governance framework

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

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

 

Membership

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

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

 

Mayor Carter

John Vujcich – Chairperson

Bruce Robertson – Deputy Chairperson and Independent Member of the Committee

Moko Tepania

Mate Radich

Rachel Smith

Kelly Stratford

Ann Court

Mike Edmonds

Adele Gardner

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

 

Quorum

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

 

Frequency of Meetings

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

Power to Delegate

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

 

Committees Responsibilities

The Committees responsibilities are described below:

Financial systems and performance of the Council

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

·         Review Council quarterly financial statements and draft Annual Report

 

Far North Holdings Limited (FNHL)

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

·         Receive 6 monthly report on operations (s66 LGA)

·         Receive quarterly financial statements

·         Recommend appointment of directors of FNHL

 

Risk Management

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

·         Receive and review risk management dashboard reports

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

·         Receive updates on current litigation and legal liabilities

 

Internal Audit and Controls

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

·         Receive and review the internal audit dashboard reports

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

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

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

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

 

Rules and Procedures

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

 

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

 

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

Far North District Council

Assurance, Risk and Finance Committee Meeting

will be held in the Council Chamber, Memorial Avenue, Kaikohe on:

Te Paeroa Mahi / Order of Business

1          Karakia Timatanga – Opening Prayer. 11

2          Nga Whakapāha Me Ngā Pānga Mema / Apologies and Declarations of Interest 11

3          Te Tono Kōrero / Deputation. 11

4          Confirmation of Previous Minutes. 12

4.1            Confirmation of Previous Minutes. 12

5          Reports. 19

5.1            Request Decision on Climate Change Risk Recommendations. 19

6          Information Reports. 51

6.1            December 2021 Risk Management Report 51

6.2            People and Capability Quarterly Update: 1 July - 30 September 2021. 112

6.3            Council Financial Report for the Period Ending 31 October 2021. 117

6.4            Level of Service KPI Quarter 1 Performance Report for 2021-2022. 137

6.5            Elected Members Sensitive Expenditure. 162

6.6            Sustainable Procurement Update - December 2021. 164

6.7            Assurance, Risk and Finance Committee Action Sheet Update November 2021. 167

7          Te Wāhanga Tūmataiti / Public Excluded. 168

7.1            Confirmation of Previous Minutes. 168

7.2            Tender Panel Report June - November 2021. 168

7.3            Technology Update Report 168

7.4            Far North District Council Current Legal Action and Potential Liability Claims as at 15 November 2021. 168

8          Karakia Whakamutunga – Closing Prayer. 168

9          Te Kapinga Hui / Meeting Close. 168

 

 

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

Members need to stand aside from decision-making when a conflict arises between their role as a Member of the Committee and any private or other external interest they might have. This note is provided as a reminder to Members to review the matters on the agenda and assess and identify where they may have a pecuniary or other conflict of interest, or where there may be a perception of a conflict of interest.

If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the meeting or of the relevant item of business and refrain from participating in the discussion or voting on that item. If a Member thinks they may have a conflict of interest, they can seek advice from the Chief Executive Officer or the Team Leader Democracy Support (preferably before the meeting).

It is noted that while members can seek advice the final decision as to whether a conflict exists rests with the member.

3            Te Tono Kōrero / Deputation

No requests for deputations were received at the time of the Agenda going to print.

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

4            Confirmation of Previous Minutes

4.1         Confirmation of Previous Minutes

File Number:           A3051559

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 20 October 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.       2021-10-20 Assurance, Risk and Finance Committee Minutes - A3442633 ⇩  

 

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

1 December 2021

 

MINUTES OF Far North District Council
Assurance, Risk and Finance Committee Meeting
HELD AT THE held virtually via Microsoft TEAMs
ON Wednesday, 20 October 2021 AT 1.30 pm

 

PRESENT:              Chairperson John Vujcich, Member Bruce Robertson, Mayor John Carter (HWTM), Cr Mate Radich, 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

 Chair Vujcich opened with a karakia.

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

Resolution  2021/1 Moved:       Chairperson John Vujcich Seconded:  Cr Kelly Stratford That apologies from Deputy Mayor Ann Court, Cr Rachel Smith, and Cr Moko Tepania and early departure for His Worship the Mayor be received and accepted. In Favour:       John Vujcich, Bruce Robertson, John Carter, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil Carried

3            Ngā Tono Kōrero / Deputation

Jane Johnston gave a deputation.

At 1:42 pm, Mayor John Carter left the meeting.

4            Confirmation of Previous Minutes

4.1         Confirmation of Previous Minutes Agenda item 4.1 document number A3051550, pages 12 - 19 refers.

Resolution  2021/2 Moved:       Member Adele Gardner Seconded:  Member Bruce Robertson That the Assurance, Risk and Finance Committee confirms the minutes of the Assurance, Risk and Finance Committee meeting held 8 September 2021 as a true and correct record. In Favour:       John Vujcich, Bruce Robertson, Mate Radich, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil Carried

 

5            Information Reports

5.1         October 2021 Risk Management Report Agenda item 5.1 document number A3422395, pages 20 - 35 refers.

MOTION Moved:       Member Bruce Robertson Seconded:  Cr Mate Radich That the Assurance, Risk and Finance Committee receive the report October 2021 Risk Management Report. Amendment Moved:       Member Mike Edmonds Seconded:  Chairperson John Vujcich request that workplace harrassment risk and a high level treatment plan be added to the Health and Safety and Wellbeing plan and reported on as part of the regular Health and Safety and Wellbeing report. In Favour:       John Vujcich, Bruce Robertson, Mate Radich, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil carried The amendment became the substantive motion Resolution  2021/3 Moved:       Member Mike Edmonds Seconded:  Chairperson John Vujcich That the Assurance, Risk and Finance Committee: a)   receive the report October 2021 Risk Management Report; and, b)   request that workplace harassment risk and a high level treatment plan be added to the Health and Safety and Wellbeing plan and reported on as part of the regular Health and Safety and Wellbeing report. In Favour:       John Vujcich, Bruce Robertson, Mate Radich, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil Carried

 

5.2         Council Financial Report for the Period Ending 31 August 2021 Agenda item 5.2 document number A3422393, pages 36 - 53 refers.

Resolution  2021/4 Moved:       Cr Mate Radich Seconded:  Chairperson John Vujcich That the Assurance, Risk and Finance Committee receive the report Council Financial Report for the Period Ending 31 August 2021. In Favour:       John Vujcich, Bruce Robertson, Mate Radich, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil Carried

 

5.3         Revenue recovery report - 30 September 2021 Agenda item 5.3 document number A3422699, pages 54 - 59 refers.

Resolution  2021/5 Moved:       Cr Kelly Stratford Seconded:  Member Adele Gardner That the Assurance, Risk and Finance Committee receive the report Revenue recovery report - 30 September 2021. In Favour:       John Vujcich, Bruce Robertson, Mate Radich, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil Carried

 

5.4         Assurance, Risk and Finance Committee Action Sheet Update September 2021 Agenda item 5.4 document number A3400605, pages 60 - 61 refers.

Resolution  2021/6 Moved:       Chairperson John Vujcich Seconded:  Member Bruce Robertson That the Assurance, Risk and Finance Committee receive the report Action Sheet Update September 2021. In Favour:       John Vujcich, Bruce Robertson, Mate Radich, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil Carried

 

6            Te  Wāhanga Tūmatati / Public Excluded

RESOLUTION TO EXCLUDE THE PUBLIC

Committee Resolution  2021/7 Moved:       Cr Mate Radich Seconded:  Chairperson John Vujcich That the public be excluded from the following parts of the proceedings of this meeting. The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows: 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 6.1 - 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 6.2 - October Audit and Assurance Report s7(2)(f)(i) - free and frank expression of opinions by or between or to members or officers or employees of any local authority s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7 6.3 - 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 In Favour:       John Vujcich, Bruce Robertson, Mate Radich, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil carried

 

Resolution  2021/20 Moved:       Chairperson John Vujcich Seconded:  Cr Kelly Stratford That Assurance Risk and Finance Committee move out of Closed Committee into Open meeting. In Favour:       John Vujcich, Bruce Robertson, Mate Radich, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil carried

 

 

 

 

 

Confirmation of Information and Decisions to be released in Public

Resolution  2021/9 Moved:       Chairperson John Vujcich Seconded:  Cr Kelly Stratford That Assurance, Risk and Finance Committee confirms the information and decisions contained in the part of the meeting held with public excluded remain in public excluded. In Favour:       John Vujcich, Bruce Robertson, Mate Radich, Kelly Stratford, Mike Edmonds and Adele Gardner Against:           Nil Carried

7            Karakia Whakamutunga – Closing Prayer

Cr Kelly Stratford closed with a karakia.

8            tE kAPINGA hUI / Meeting Close

The meeting closed at 2:29 pm.

 

The minutes of this meeting will be confirmed at the Assurance, Risk and Finance Committee Meeting held on 1 December 2021.

 

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

CHAIRPERSON

 

5.1         Request Decision on Climate Change Risk Recommendations

File Number:           A3475964

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 accept the Climate Change Risk Reference Group recommendation that our current risk position be categorised into four climate change risk themes.

WhakarĀpopoto matua / Executive Summary

·        Council has recognised climate change as one of our top organisational risks as it poses significant risks:

o   to the community through environmental impacts (climatic, geographic, public health, social, economic, and financial); and

o   significant risk through transition challenges to Council (compliance, governance, legal, financial and policy).

·        Climate change is complex and multi-faceted.

·        Risk Management is one of the key pillars to manage climate change.

·        This report recommends separating the current climate change risk (ARF001) into four grouped under a broader climate change risk statement to maintain a whole of climate change risk view.

·        This supports a whole of Council view while allowing for an intentional strategic focus on treatments with clear outcomes and accountability.

 

tŪtohunga / Recommendation That the Assurance, Risk and Finance Committee: a)      Remove ARF001 Climate Change risk from the top organisational dashboard. b)      Adopt 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)      Establish regular risk progress reports, for each risk, to the Assurance, Risk and Finance Committee. d)      Rescore 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.

 

1) TĀhuhu kŌrero / Background

Climate change risk across New Zealand councils

·         The Auditor General in his October 2021 “Observations on local government risk management practices” reported on the management of climate change risk across New Zealand councils. From section 5 of this report:

·    Six councils in our survey said that their number one risk was responding to climate change impacts. Several other councils included this in their top five risks.

·    Climate change poses risks to council activities, and council activities affect the climate. Councils need to:

o  advise their elected members of these risks;

o  communicate these risks to their communities; and

o  make informed decisions about how to manage their assets and deliver services in response to these risks, including assessing options and their cost implications.

·    As at February 2020, 17 councils have declared climate emergencies. However, in their responses to our survey, some of those councils did not have climate-related risks in their top five risks. This might be because those councils are not integrating their climate-related strategy and/or policy decisions into their risk management practices. Another reason might be that councils have incorporated climate change-related risks into other risk categories, such as asset failure.

·    If councils are to make well-informed decisions about their climate change work programmes, it is important that they integrate their decision-making and risk management. This also demonstrates to their communities that they are acting on their climate emergency declarations.

·    The Taskforce on Climate-related Financial Disclosures (TCFD) framework has been developed to provide clear and comprehensive information on the impacts of climate change. The framework is structured around four core categories, one of which is risk management. Councils are encouraged to become familiar with the framework.

Climate-related disclosures

Under section 5ZW of the Climate Change Response (Zero Carbon) Amendment Act 2019 (CCRA) the Minister can request local governments to provide information on how they are responding to climate change. 

Additionally, The Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill, which was passed in October 2021, will ensure large financial entities disclose and act on climate-related risks and opportunities. Mandatory disclosures for all “climate reporting entities” will be required for each financial year beginning in 2023.  For local government this means that elements of the private sector (e.g. banks, insurers, credit agencies) are increasingly likely to seek information from local government about how they respond to climate change.

Both the mandatory climate-related financial disclosures and the power to request information under the CCRA are aligned with the Task Force on Climate-related Financial Disclosures (TCFD) (see Illustration 1). These incorporate four key themes: governance, strategy, risk management, and metrics and targets. Under each theme, 11 disclosures are recommended.

Risk Management is one of the key pillars with three recommended disclosures:

·    Describe the organisations processes for identifying and assessing climate-related risks;

·    Describe the organisations processes for managing climate-related risks; and

·    Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisations overall risk management.

·                Illustration 1: Diagram illustrating Task Force framework of 11 key disclosures over four pillars

Far North District Council Climate Change Roadmap

The Far North District Council Climate Change Roadmap April 2020 (attached as an appendix) articulates FNDC's broad approach to climate change, including goals and associated guiding principles. The Roadmap also presents proposed action plans in four key focus areas involving mitigation and adaptation. These are:

1.   Walking the talk - Council reduces its carbon emissions.

2.   Reducing our carbon emissions together - Supporting our communities to achieve zero carbon by 2050.

3.   Prudent future proofing - Managing council’s services, resources, and assets to future-proof them from the risks of climate change.

4.   Developing resilience - Help our communities prepare for and adapt to the impacts of climate change.

2) matapaki me NgĀ KŌwhiringa / Discussion and Options

Council has recognised climate change as one of our top organisational risks as it poses significant risks to the community through environmental impacts (climatic, geographic, public health, social, economic, and financial); and significant risk through transition challenges to Council (compliance, governance, legal, financial and policy).

Elected Members acknowledge that we are experiencing the impact of a changing climate and will continue to do so. While there are a mix of views there is consensus that there is a need to focus efforts to prepare communities, look after our assets and inform their decision making.

Council’s current climate change risk statement

In November 2018, the Assurance, Risk and Finance Committee drafted and scored their top organisational risks. These were adopted by Council in May 2019. Since adoption onto the top organisational risk dashboard, “climate change risk” has been subject to several deep dives and risk progress reports. The current risk statement for ARF001: Climate Change & Natural Disasters and its risk scoring is articulated in Table 1 below.

·                Table 1: Climate change risk statement and scoring

Climate Change Risk Reference Group

At the latest deep dive meeting (March 2021) it was agreed to review the risk statement with the goal of separating the risk into at least two risks to enable clear focus, then to report back to the Assurance, Risk and Finance Committee for discussion. Since the March 2021 deep dive the terms of reference for the Climate Change Risk Reference Group were signed off (July 2021) and the group held their inaugural meeting in August 2021.

The purpose of the Climate Change Risk Reference Group is to support the provision of a “joined up connected” climate change response. The objective of this reference group is to support the operationalisation of Council’s climate change policy by:

·    Providing advice and guidance;

·    Exploring opportunities within Council to future proof Council;

·    Informing specific elements of proposed work;

·    Championing the work of the climate change programme;

·    Building an organisational network; and

·    Supporting the three lines of defence for climate change risks through:

o  systems of control (help to monitor the risk and ensure right resources are allocated), and

o  governance (effectively manage escalation of the risk and define strategies to manage).

The Climate Change Risk Reference Group have reviewed and analysed climate change position documents, presentations, and information from MfE, then workshopped our risk position as requested by the Assurance, Risk and Finance Committee in March 2021. This risk position was then reviewed by Te Whakahaere (Te Whakahaere are a climate professional services firm who have been engaged by Council for their expertise in this area). The outcome from this risk workshop, and the Te Whakahaere review, is provided in the next section which analyses Council’s climate change risks.

 

CLIMATE CHANGE RISK ANALYSIS

Development of climate change risks

The Climate Change Risk Reference Group recommends that our current risk position be categorised into four climate change risk themes. Three themes are traditional risks with the potential for adverse consequences, and the fourth centres on the opportunity to capture the positive outcomes that may arise from a changing climate and climate change goals and/or legislation. The objective is to articulate clearly defined and specific climate change risks to drive clear treatments.

Climate change is complex and multi-faceted. Separating these risks supports a whole of Council view while allowing for an intentional strategic focus on treatments with clear outcomes and accountability to support allocation of resources and management of. On Council’s top risk dashboard, these four climate change risks will be grouped under a broader climate change risk statement to maintain a whole of climate change risk view (see Table 2).

·                Table 2: Proposed climate change risk statements

Cause (Because of…)	Risk (there is a chance that…)	Effect (leading to…)
ARF015: Climate Change Organisation Transition Risk This is a wicked problem, and we are a complex organisation. We need to transition our organisation to meet the requirements of a lower carbon, climate-resilient economy while ensuring prudent management, regulatory compliance, and full disclosure to our communities of vulnerabilities to climate change.	Not understanding, or implementing, treatments.	Failure to comply with regulatory requirements; legal challenge resulting in fines and penalties; poor decision-making which negatively impacts our communities and Council; impact on our financial sustainability, and reputational damage.
ARF016: Climate Change Community Transition Risk Not working with communities to identify vulnerabilities, to things of value in those communities, due to potential changes in the climate.	We do not work with communities to identify solutions to drive targeted action and investment in adaptation and mitigation.	Inequitable transition of our communities; and may worsen pre-existing inequities. We do not meet our community wellbeing obligations. Exposure of the community to rapid market disruption. We miss out on potential opportunities.
ARF017: Climate Change Direct Risk to Council Physical and Natural Assets Neither identifying the physical hazards and vulnerabilities, nor engaging with our communities, to plan for and mitigate the impacts of climate change on our infrastructure and levels of service.	Infrastructure may be exposed and vulnerable. Natural assets may become eroded/damaged.	Leading to damaged/lost infrastructure impacting levels of service, community wellbeing, environmental damage and financial cost to communities and Council. Ecosystem services may reduce, placing increased risk on operational costs.
ARF018: Failure to understand and capture climate-related opportunities Failing to identify and investigate opportunities such as resource efficiency, energy source, new economic opportunities, markets, and resilience.	New opportunities for Council and our communities are not actioned.	Reduced Council and community growth and resilience. Increased pressure on Council long-term financial sustainability.

 

Scoring of climate change risks

The Climate Change Risk Reference Group scored the inherent risk for each climate change risk. The risks are 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”. The impact and likelihood matrix are used to determine the values for each climate change risk (see Table 5). The likelihood of all four risks materialising is assessed as “will happen”.

·                Table 3: 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 4: 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 5: Impact and likelihood matrix

		Likelihood (probability)
		Unlikely	Probable	Will Happen
Impact	High to Intolerable	5	7	9
	Medium	3	5	7
	Low to None	1	3	5

 

An inherent risk score has been estimated for each climate change risk. This was derived by summing the risk value for each organisational area (See Table 6).

·                Table 6: Inherent risk score for each climate change risk (inc. organisational area score and overall score)

Risk	Organisational area	Impact	Likelihood	Inherent risk score
ARF015: Climate Change Organisation Transition Risk	Financial	High to Intolerable	Probable	7
	Customer	High to Intolerable	Probable	7
	Reputational	Medium	Will Happen	7
	Compliance/Legal	Low	Unlikely	1
	Health and Safety	High to Intolerable	Will Happen	9
	Overall score			31
ARF016: Climate Change Community Transition Risk	Financial	High to Intolerable	Probable	7
	Customer	High to Intolerable	Will Happen	9
	Reputational	High to Intolerable	Will Happen	9
	Compliance/Legal	Medium	Probable	5
	Health and Safety	High to Intolerable	Will Happen	9
	Overall score			39
ARF017: Climate Change Direct Risk to Council Physical and Natural Assets	Financial	High to Intolerable	Will Happen	9
	Customer	High to Intolerable	Will Happen	9
	Reputational	High to Intolerable	Will Happen	9
	Compliance/Legal	High to Intolerable	Unlikely	5
	Health and Safety	High to Intolerable	Unlikely	5
	Overall score			37
ARF018: Failure to understand and capture climate-related opportunities	Financial	High to Intolerable	Will Happen	9
	Customer	High to Intolerable	Will Happen	9
	Reputational	High to Intolerable	Will Happen	9
	Compliance/Legal	Low	Unlikely	1
	Health and Safety	Low	Unlikely	1
	Overall score			29

 

Responsibilities

All four climate change risks remain classified as both organisational and strategic risks with the GM-SPP responsible for risk governance. All climate change risks would be subject to regular three-monthly risk progress reports, excepting the risk identified as ARF018: Failure to understand and capture climate-related opportunities which would be on a six-monthly report cycle. Further the reports will be scheduled so at least one climate change risk progress report is on each Assurance, Risk and Finance Committee agenda. The risks have been recorded on the SPP Group Risk Register to enable management at a Group level.

 

High level treatments

Council has identified, and continues to work to identify and propose, high level treatments for the climate change risks. The Assurance, Risk and Finance Committee risk reporting rhythm includes regular risk progress reports which will capture and report on treatments, progress, and gaps. The following is a brief summary (in alphabetical order) of examples of identified and proposed treatments:

·    Civil Defence Regional Lifelines climate change risk assessment

·    Develop a framework to quantify effectiveness of climate change treatments

·    Development of a climate assessment policy (CAP) to provide a robust and consistent framework for responding to climate-related issues

·    District Plan

·    Engagement of Te Whakahaere to prepare a Climate Assessment Policy

·    Far North District Council Climate Change Roadmap

·    Implement ComplyWith (legislative compliance tool)

·    Improved consideration of climate change in asset management plans and associated operational procedures

·    Improved reporting lines (across operations and up to elected members), monitoring and evaluation of KPIs (e.g. reporting dashboard) District Plan

·    NRC Regional Plan

·    NRC Regional Policy Statement

·    Organisation climate change communication and engagement strategy

·    Parks and Reserves Policy

·    Programme Darwin

·    Regional climate change adaptation strategy

·    Risk analysis to support decision reports

·    Task Force on Climate-related Financial Disclosures (5ZW) – aligned public disclosure statement

Many of the proposed (and yet to be identified) treatments are, or will be, inter-connected. We will also need to ensure that there is whole of Council support to facilitate adaptation to climate change effects and to consider cumulative risk and wider flow on effects to our district of decisions made now.

Take Tūtohunga / Reason for the recommendation

The Climate Change Risk Reference Group has recommended:

a)      ARF001 Climate Change risk is removed from the top organisational dashboard – this is because we propose to replace it with the recommendation in “b” below

b)      To enable greater clarity and ability to align with auditor and market expectations and regulatory approaches, it is recommended that the four climate change risks are adopted onto the top organisational risk dashboard. The four risks are identified as:

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)      To ensure that the climate risk is managed effectively it is recommended that each risk is subject to a regular risk progress report to the Assurance, Risk and Finance Committee

d)      To enable FNDC to track risk and risk management measure it is recommended that at least annually there is a climate change group risk progress report which provides an overview to the Assurance, Risk and Finance Committee on the management and progress to treat the climate change risks

e)      Recognising the dynamic nature of climate risk, it is recommended that these risks are regularly rescored due to the evolving environment - both the government’s response to managing the transitional risks, and the consequences of climate change

 

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

No additional budgetary provision is requested.

Āpitihanga / Attachments

1.       2019 10  Simplified Organisational Risk Categories with Impact and Likelihood Statements - A3477371 ⇩

2.       Q03 Far North District Council Climate Change Road Map April 2020 - A3477373 ⇩  

 

Hōtaka Take Ōkawa / Compliance Schedule:

Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:

1.       A Local authority must, in the course of the decision-making process,

a)      Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

b)      Assess the options in terms of their advantages and disadvantages; and

c)      If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.

2.       This section is subject to Section 79 - Compliance with procedures in relation to decisions.

 

He Take Ōkawa / Compliance Requirement	Aromatawai Kaimahi / Staff Assessment
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy	The recommendation in this report does not meet the thresholds as per the Council’s significance and engagement policy.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Risk Management Policy.
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.	None
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water. State the possible implications and how this report aligns with Te Tiriti o Waitangi / The Treaty of Waitangi.	The recommendation in this report does not have any direct implications for Māori.
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example – youth, the aged and those with disabilities).	There are no affected or interested parties to this recommendation.
State the financial implications and where budgetary provisions have been made to support this decision.	There is no financial implication or request for budgetary provision.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report.

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

6            Information Reports

6.1         December 2021 Risk Management Report

File Number:           A3472394

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

The Controller and Auditor General has released their report “Observations on local government risk management practices.”

 

Risk progress updates are provided for six of the top organisational risks. This includes the first risk progress report for ARF014 Programme Darwin.

 

The risk rating trend for one of these risks has been assessed as declining, one as stable and increasing for four risks.

 

As Climate Change is subject of a separate decision report, with a proposal to separate ARF001 into four distinct risks/opportunities, we have not presented the scheduled ARF001 Climate Change risk progress report. 

 

Council risk management at a group and departmental level continues as does identifying essential services to be supported by business continuity plans.

 

No new emergent risks have been identified for inclusion in this report. 

 

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

 

tĀHUHU KŌRERO / Background

The top organisational risks are risks that may impact on Council achieving its vision, mission and community outcomes and are regularly reported to the Assurance, Risk and Finance Committee to ensure they are being appropriately managed. A number of these risks are subject to external influences which may affect effective council operations.

 

Table 1 provides a risk snapshot of the Assurance, Risk and Finance Committee Organisational Risk Dashboard with inherent and residual risk scores as accepted by this Committee and the risk trend as assessed by the risk subject matter experts.

 

Table 2 details the 2021 risk work programme.

 

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			Risk Progress Report schedule	Risk Progress Report ARF agenda:
ARF001	Climate Change	63		30	CEO	GMSPP			3 Monthly	Sep 21
ARF003	Health & Safety Vulnerabilities	46		34	CEO	Chief People Officer			3 Monthly	Oct 21
ARF004	Asset Management Risks	45		18	CEO	GMIAM			6 Monthly	Sep 21
ARF005	Affordability Risk	45		26	CEO	GMSPP			6 Monthly	Dec 21
ARF006	Project Priorities Deliveries Delays	45		14	CEO	GMIAM			3 Monthly	Oct 21
ARF007	Compliance NRC Abatements	45		18	CEO	GMIAM			6 Monthly	Dec 21
ARF009	Customer Service Delivery	39		22	CEO	Chief People Officer			3 Monthly	Dec 21
ARF010	Data Governance Risks	39		14	CEO	CEO			6 Monthly	Dec 21
ARF012	Contract Management Risks	39		14	CEO	GMIAM			3 Monthly	Oct 21
ARF013	Drinking Water Resilience	35		ARF to agree level residual risk	CEO	GMIAM			3 Monthly	Dec 21
ARF014	Programme Darwin	35		13	CEO	GMIAM			3 Monthly	Dec 21

 

Table 2: 2021 risk programme

2021 ARF meeting date:	10/02	24/03	05/05	16/06	21/07	08/09	20/10	01/12
Risk deep dives		ARF001	ARF003	ARF013	ARF003	ARF004	ARF006	ARF005
ARF001 Climate Change		ü				ü		ü
ARF003 Health & Safety Vulnerabilities	ü		ü		ü		ü
ARF004 Asset Management Risks		ü				ü
ARF005 Affordability				ü				ü
ARF006 Project - Priorities Deliveries Delays	ü		ü		ü		ü
ARF007 Compliance NRC Abatements				ü				ü
ARF009 Customer Service Delivery		ü		ü		ü		ü
ARF010 Data Governance Risks				ü				ü
ARF012 Contract Management Risks	ü		ü		ü		ü
ARF013 Drinking Water Resilience		ü		ü		ü		ü
ARF014 Programme Darwin								ü

 

 

 

MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

In October 2021 the Controller and Auditor General released their report “Observations on local government risk management practices.” This report (Attachment 7) was commissioned to provide the Auditor General an overview of New Zealand councils current risk management practices.  

 

The report recommends that councils:

1.   prioritise putting in place a formal risk management framework if they do not have one;

2.   ensure that elected members get the training and support that they need to carry out their risk management roles and responsibilities;

3.   consider using more sophisticated techniques for identifying and managing risks on key programmes of work, such as quantitative risk assessments, given that the assessments that many councils make, particularly on the delivery of their capital expenditure programmes, need a high level of judgement; and

4.   assess their desired level of risk management maturity and prepare a clear plan to achieve this. Regular formal reviews of their risk management practices should be carried out to inform progress and identify areas for improvement.

 

Organisational risk management

 

Emergent risk:

 

No additional emergent risks have been identified.

 

 Table 3: Table of identified emergent risk

Emergent risks	Presented to ARF:	Progress
1.   The risk of externally funded shovel ready, economic stimulus employment opportunity projects due to the impact of the COVID-19 pandemic.	October 2020	The Assurance, Risk and Finance Committee received a report at September 2021 meeting. Next report is scheduled in six months, March 2022 dependent on the, yet to be released, Assurance, Risk and Finance Committee 2022 schedule.
2.   The financial and legal risks due to the effects of climate change. Timing of a report on this risk, to the Assurance, Risk and Finance Committee meeting, is to be determined.	October 2020	March 2021 Climate Change deep dive was held. Proposed to break the climate change into two risks to enable focus on transition risks such as financial and legal. Frequency of reporting is to be increased from six monthly to three monthly. This risk is subject to a risk decision report recommending the addition of four risks to the organisational risk dashboard replacing ARF001 Climate Change.
3.   District Services have proposed to escalate one of their top group risks for consideration of inclusion on the top organisational dashboard.	October 2020	It is proposed that this be included in the Assurance, Risk and Finance Committee risk workshop agenda.
4.   The risk of not fit for purpose business continuity arrangements.	October 2020	This was subject to a report at the December 20 Assurance, Risk and Finance Committee meeting. A progress up-date is provided under the group risk section.
5.   Government’s Three Waters Reform programme.	December 2020	The Government has announced an integrated package of reform proposals (four new, large water service delivery entities) together with a financial support package.
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:

 

Of the 11 top organisational risks six identify the risk trend as increasing (56%), four as stable (36%), and one is decreasing (9%). In the main this is due to external influences such as the unquantifiable impact of significant decisions (e.g. three waters reform, local government reform), or changes to our external environment beyond our control such as inflation, increasing debt levels, reliance on international supply chains and the unfolding COVID-19 pandemic, making it more difficult to effectively plan to manage a number of our top organisational risks. These themes can be seen running through three of the top organisational risk progress reports (ARF005, ARF007, ARF010) on this agenda.

 

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

 

Risk progress reports – highlights and analysis:

 

1.   ARF005 Delivery of Service Risk (affordability) Progress Report. The inherent risk rating trend has been assessed as increasing as the Government’s Public Housing Plan, to reduce overcrowded housing and homelessness, will add more pressure to affordability as the scope goes beyond population growth to planning for more dwelling demand (and consequently increased infrastructure capacity) with the most demand in areas that have the greatest affordability challenges; the need to fund maintenance and depreciation of externally funded assets; and inflationary pressures.

2.   ARF007 Compliance NRC Abatements Risk Progress Report. The inherent risk rating trend has been assessed as increasing due to NRC increasing the use of abatement notices as a key part of their compliance strategy and legislative and regulatory change currently being faced.

3.   ARF009 Customer Service Delivery Risk Progress Report. The inherent risk rating trend has been assessed as declining as treatments are implemented and effectiveness of these is verified through customer surveys.

4.   ARF010 Data Governance Risk Progress Report. The inherent risk rating trend has been assessed as increasing due to the increase risk of a cyber-attack.

5.   ARF013 Drinking Water Resilience Risk Progress Report. The inherent risk rating trend has been assessed as stable due to drought resilience work completed and improvements made to the Water Shortage Management Plan and Water Shortage Management Committee processes.

6.   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.

 

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: 28/10/21           24 risks
		IAM Group Risk Dashboard	Review Date: 05/11/21 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

1 December 2021

 

Progress to refresh Council’s business continuity arrangements:

 

Further business continuity planning has commenced in two areas:

·    Corporate Services leaders have met and agreed essential services. Business Continuity Plans are now being drafted for these essential services.

·    People & Capability have also identified essential services and have commenced drafting business continuity plans to support these services.

 

Work on IAM business continuity plans for essential services continues.

The Business Continuity Planning SharePoint site has been heavily used over the last COVID-19 outbreak. It has been further enhanced with the addition of Teams chat to the site. This is new capability is being rolled out through Office 365 and will enable us to share “things” in real time rather than emails.

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

No additional budgetary provision is requested.

 

Āpitihanga / Attachments

1.       2021 12 ARF005 Delivery of Service Risk (affordability) Progress Report - A3474320 ⇩

2.       2021 12 ARF007 Compliance NRC Abatements Risk Progress Report - A3472364 ⇩

3.       2021 12 ARF009 Customer Service Delivery Risk Progress Report - A3472372 ⇩

4.       2021 12 ARF010 Data Governance Risk Progress Report - A3472370 ⇩

5.       2021 12 ARF013 Drinking Water Resilience Risk Progress Report - A3472368 ⇩

6.       2021 12 ARF014 Programme Darwin Risk Progress Report - A3474321 ⇩

7.       2021 Observations on local government risk management practices - A3472366 ⇩  

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

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

File Number:           A3475610

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.

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

Āpitihanga / Attachments

1.       People & Capability - Turnover Report 1 July  2021  30 September 2021 - A3477530 ⇩  

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

 

^[1]

 

Far North District Council had 17 permanent staff depart between 1 April – 30 June 2021, therefore the turno

 

 

 

During quarter one, there were twelve staff that left Far North District Council. This has resulted in a quarterly turnover rate of 2.97%. This turnover rate is tracking higher compared to last year’s quarter one’s turnover rate of 2.26%.

 

 

 

Quarter one has seen seven staff members leave District Services which was made up of two from the Resource Consents Team and four from the Building Services Team and one casual staff member from Libraries. The level of turnover in the Building Services Team and Resource Consents Team reflects the demand for highly skilled individuals in these industries. This is being felt throughout the country, both in Local Government and in the Private Sector.

The Infrastructure and Asset Management Team has seen two staff members resign, one from the Asset Management & Infrastructure Planning team and one from the Northland Transport Alliance.

Corporate Services had one team member from the IT department leave, Strategic Planning & Policy had one staff member from the Te Hono team leave and the Chief Executive Office has had one staff member from the Communications team leave.

 

 

Of the twelve leavers from this period four have completed the exit survey. While this number is still below what we are aiming for, we are actively encouraging departing staff members to complete the Exit Survey.

We had two people leave FNDC this quarter due to family commitments/relocating, one because of salary, benefits, further study and career opportunities and one because they were on a Fixed Term role and have found a Permanent position outside of FNDC.

Three of the four leavers would rate FNDC as an employer of choice. The comment made for the employee who did not rate FNDC as an employer of choice was that we need to improve our internal communications. Other comments mentioned the benefits of remote working, that staff are great to work with and that they are always promoting FNDC as an employer of choice. 

The People & Capability Team continue to actively encourage our leavers to complete the Exit Surveys and provide us with their honest feedback.

 

 

There have been no personal grievances this period, however FNDC attended the Employment Relations Authority in August following a grievance lodged at the end of last year. FNDC received notification in October that the Authority determined in our favour on all 8 accounts that were considered. This is an excellent outcome for FNDC and highlights our robust and fair performance management processes that we have in place.

Quarter one has bought about issues gaining suitable talent resulting in readvertising roles specifically in IT and Resource Consents. It is very evident that we share the nationwide struggle to fill roles.

During this period there have been two Performance Improvement (PIP) cases closed off successfully. One PIP case continued into a second period and one PIP case commenced in the last week of September.

 

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

6.3         Council Financial Report for the Period Ending 31 October 2021

File Number:           A3480782

Author:                    Angie Thomas, Manager - Accounting Services

Authoriser:             Janice Smith, Chief Financial Officer

 

TE TAKE PŪRONGO / Purpose of the Report

To provide an overview and information on the current financial position and performance of the Far North District Council as at 31 October 2021.

TE WHAKARĀPOPOTO MATUA / Executive SummarY

This report provides a summary overview, Statement of Financial Performance, Capital Performance and Borrowing and Investment reports.

 

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

 

TE tĀHUHU KŌRERO / Background

This report provides financial information as at 31 October 2021.

TE MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

The report is for information only.

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

There are no financial implications or budgetary provisions required as a result of this report.

ngĀ Āpitihanga / Attachments

1.       Council Financial Report Oct 2021 (Pd4) FINAL - A3483953 ⇩  

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

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

File Number:           A3481087

Author:                    Jarna Sherry, Accounting Support Officer

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

 

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.

Recommendation That the Assurance, Risk and Finance Committee receive the Level of Service KPI Quarter 1 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.

Attachments

1.       Level of Service Q1 Report 2021_2022 - A3483879 ⇩  

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

6.5         Elected Members Sensitive Expenditure

File Number:           A3430657

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 July to 30 September 2021 was $5,430.39.

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

 

tĀHUHU KŌRERO / Background

Formal reporting of all Elected Member expenses is a best practice recommendation from Audit New Zealand. Reimbursement of expenses processed as part of the fortnightly pay claim process are also included in the attached figures. This report reflects the months in which payments were processed and do not necessarily reflect the months when the expenses were incurred. Elected Member Sensitive Expenditure is any council expenditure where there may be a perceived personal benefit to an Elected Member.

Elected Member Sensitive Expenditure for the 2021-2022 financial year:

1 July to 30 September 2021	$5,430.39
Financial Year Total	$5,430.39

 

Correction for Elected Member Sensitive Expenditure for 2020-2021 financial year due to a duplication error. Total 2020-2021 $75,773.25.

MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

This information will be reported quarterly to the Assurance, Risk and Finance Committee.

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

This report identifies financial expenditure that has occurred from 1 July to 30 September 2021.

Āpitihanga / Attachments

1.       July to Sept 2021 Sensitive Expenditure ARF - A3483557 ⇩  

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

6.6         Sustainable Procurement Update - December 2021

File Number:           A3452628

Author:                    Suzy McCall, Principal Advisor - Sustainable Procurement

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

 

TAKE PŪRONGO / Purpose of the Report

To provide an update on progress to date on the implementation of the sustainable procurement framework within FNDC to social, economic, cultural, and environmental goals.

WHAKARĀPOPOTO MATUA / Executive SummarY

The Principal Advisor Sustainable Procurement joined Council in June 2021. This information report outlines the action plan, progress to date and the continued steps to embedding sustainable procurement within the Council.

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

tĀHUHU KŌRERO / Background

Far North District Council’s commitment to sustainable procurement reflects growing national and international focus on the strategic use of procurement to drive social, economic, cultural and environment outcomes.

 

Sustainable Procurement is about delivering value beyond the goods and services we buy and is an effective lever for FNDC to make a real difference to our Far North communities.

 

The potential outcomes include:

 

·    creation of job opportunities by engaging more local businesses

·    enabling access to a diverse supplier market

·    ensuring reuse and ethical supply of materials

·    connecting with impactful businesses such as social enterprises, local and or Maori owned business to address social and economic inequalities.

·    Sustainable procurement can also target and improve environmental stewardship or kaitiakitanga across our region.

 

In December 2020, Council adopted the Sustainable Outcomes Framework with the goal to generate additional social, economic, cultural, and environmental benefits from procurements. On 27 January 2021, a workshop was held with the Infrastructure Planning, Operations and Project Delivery staff to formally launch sustainable procurement.

 

After a lengthy recruitment process, Suzy McCall joined the Council as Principal Advisor in June 2021, to drive sustainable procurement by embedding skills, practices, and behaviors into this critically important space. Sustainable procurement is still a new field and requires the right relationship management skills to implement, support and continue to develop organisational and supplier capacity to ensure the Council meets its sustainable procurement outcomes for all infrastructure and professional services spend.

 

MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

Establishing and maintaining strong and trusted working relationships with key Council staff and external suppliers is an ongoing process and is essential to the successful implementation of broader sustainable outcomes. In the past six months since joining the Council, the Principal Advisor has been engaging with key FNDC staff, working committees and particularly Council suppliers to ensure the Council is starting to achieve sustainable procurement goals.

 

An action plan has been developed to implement sustainable procurement throughout the Council with three focus areas.

 

Focus 1 - Identify and baseline supplier sustainability initiatives and achievements – so that we can support the great work already done by suppliers

 

·    Often our suppliers are leading the charge to deliver broader sustainable outcomes.  By working directly with key suppliers, we have identified current and future initiatives which already deliver on the sustainable procurement goals in our community e.g.:

-     Improved employment opportunities for skilled and unskilled staff

-     Fulltime employment of graduates, previously unemployed, Maori, more women

-     Ongoing training and upskilling of staff

-     Use of subcontractors to work in local areas to reduce vehicle movements and carbon emissions

-     Volunteering or sponsorship of community groups / sports teams and fundraising events.

 

Focus 2 – Embed Sustainable Procurement into Council Operations – work is underway to support all staff involved in procurement activities to ‘think sustainable outcomes’

·    Continue to lift the profile of sustainable procurement within the Council - article in The Weekender published 29 October 2021 ‘Social procurement paying dividends’ is a good example

 

·    Collaborate with key FNDC staff to identify sustainable procurement opportunities using the Sustainable Outcomes Framework.

·    Run workshops, whiteboard sessions and procurement training. Since June the Project Management Office has run two full day sessions of Procurement Fundamentals Training completed by 50+ staff involved in procurement.

 

·    Resources are available to staff via a specific Sustainable Procurement page on the Council’s TK3 intranet. This includes the Sustainable Outcomes Framework, Suppliers Guide, and Sustainable Outcomes Opportunity Map (analysis tool).

 

·    Tender panel now considers sustainability and weightings for all procurement plans and tenders ranging from 5% to 20%.

 

·    FNDC are the first council to be invited to present to the Local Government Strategic Procurement Group (industry Community of Practice) in August 2021 on Sustainable Procurement and Council’s initiatives and successes.

 

Focus 3 – Supporting the ESEO Infrastructure Team

 

·    Collaborate with, and support David Clamp and his Procurement team to continue to deliver and expand sustainable outcomes on externally funded projects. These projects include:

 

-     Kerikeri Domain

-     Waipapa Sports Complex

-     Te Hiku Revitalisation

 

By regularly attending the working groups for the above projects, additional sustainable outcomes can be identified. These include working with the Asset Managers and Community Development Team to encourage the reuse/recycling of playground equipment to the Totara North community. This equipment will be available at the end of the Kerikeri Domain project.

 

·    Design and conduct surveys to capture information to understand business operating location (local versus non-local), Maori ownership and employment figures.

 

A recent survey of twenty-five tier 1,2 and 3 suppliers has the Council very well positioned to regularly meet MBIE funding requirements around Maori business ownership, and reflects our Far North communities and businesses, with other councils expressing envy of our position.

 

Results from this survey show: 

 

Maori Owned	Total Staff	Women	Youth 15-24	Maori	Apprentices/ Trainees	Prev. Unemployed
11 (44%)	540	111	70	242	87	148

 

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

The Principal Advisor role is initially being funded for a full two-year period. All other roles involved in delivering sustainable outcomes are already established.

 

Āpitihanga / Attachments

Nil

 

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

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

File Number:           A3400608

Author:                    Casey Gannon, Meetings Administrator

Authoriser:             Aisha Huriwai, Team Leader Democracy Services

 

Take Pūrongo / Purpose of the Report

To provide the Assurance, Risk and Finance Committee with an overview of outstanding decisions from 1 January 2020.

WhakarĀpopoto matua / Executive Summary

·        Council staff have reintroduced action sheets as a mechanism to communicate progress against decisions/resolutions and confirm when decisions have been implemented.

·        The focus of this paper is on Assurance, Risk and Finance Committee decisions.

·        Action sheets are also in place for Council and Community Boards.

·        There are no outstanding or overdue actions for the Assurance, Risk and Finance Committee.

·        All actions for the Assurance, Risk and Finance Committee from 1 January 2020 have been completed.

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

 

1) TĀhuhu kŌrero / Background

The Democracy Services Team have been working on a solution to ensure that elected members can receive regular updates on progress against decisions made at meetings, in alignment with a Chief Executive Officer key performance indicator.

Action sheets have been designed as a way to close the loop and communicate with elected members on the decisions made by way of resolution at formal meetings.

Action sheets are not intended to be public information but will provide updates to elected members, who, when appropriate can report back to their communities and constituents.

There are no outstanding or overdue actions for the Assurance, Risk and Finance Committee. All actions for the Assurance, Risk and Finance Committee 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 Committee with an overview of outstanding committee decisions from 1 January 2020.

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

There are no financial implications or need for budgetary provision in receiving this report.

Āpitihanga / Attachments

Nil

Assurance, Risk and Finance Committee Meeting Agenda

1 December 2021

 

7            Te Wāhanga Tūmataiti / Public Excluded

RESOLUTION TO EXCLUDE THE PUBLIC

Recommendation 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

 

 

8            Karakia Whakamutunga – Closing Prayer

9            Te Kapinga Hui / Meeting Close