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.

Annual reporting

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

ASSURANCE, RISK AND FINANCE COMMITTEE - MEMBERS REGISTER OF INTERESTS

Name

Responsibility (i.e., Chairperson etc)

Declaration of Interests

Nature of Potential Interest

Member's Proposed Management Plan

Hon John Carter QSO

Board Member of the Local Government Protection Programme

Board Member of the Local Government Protection Program

 

 

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

 

Far North District Council

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. 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          Information Reports. 18

5.1            Elected Members Sensitive Expenditure. 18

5.2            People and Capability Quarterly Update: 1 October - 31 December 2021. 20

5.3            Risk progress report for programme of externally funded projects. 26

5.4            March 2022 Risk Management Report 33

5.5            Council Financial Report for the Period Ending 31 January 2022. 55

5.6            Far North Holdings Ltd - Half Year Financial Report 2021/22. 79

5.7            Level of Service KPI Quarter 2 Performance Report for 2021-2022. 88

5.8            Assurance, Risk and Finance Committee Action Sheet Update March 2022. 110

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. 112

8          Te Kapinga Hui / Meeting Close. 112

 

 


1            Karakia Timatanga – Opening Prayer

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


Assurance, Risk and Finance Committee Meeting Agenda

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.

Recommendation

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.

Attachments

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

5            Reports

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

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

6            Information Reports

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:

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 - 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

7.3 - February 2022 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

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

 


Assurance, Risk and Finance Committee Meeting Agenda

16 March 2022

 

5            Information Reports

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.

 TŪTOHUNGA / Recommendation

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.

Āpitihanga / Attachments

1.       Elected Member sensitive expenditure Oct - Dec 2021 - A3618447  

 


Assurance, Risk and Finance Committee Meeting Agenda

16 March 2022

 

PDF Creator


Assurance, Risk and Finance Committee Meeting Agenda

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.

 TŪTOHUNGA / Recommendation

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.

Āpitihanga / Attachments

1.       ARF Turnover Report 1 October 2021 31 December 2021 - A3600985  

 


Assurance, Risk and Finance Committee Meeting Agenda

16 March 2022

 

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Assurance, Risk and Finance Committee Meeting Agenda

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.

 TŪTOHUNGA / Recommendation

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:


 


Table 1:  Externally funded project risks statements, treatments and status of progress:

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:

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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.

Āpitihanga / Attachments

Nil

 


Assurance, Risk and Finance Committee Meeting Agenda

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.

 TŪTOHUNGA / Recommendation

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.


 

Table 1: Top organisational risk dashboard

 

 

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

Updated Water Safety Plans (due 31 March 2022) will inform our understanding of the resilience issues faced by each scheme along with an improvement plan for those issues.

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

 

 

 

 


 


MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

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.


 


Group Risk Dashboard

 

District Services Risk Dashboard

Review Date: 23/02/2023

          24 risks

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          IAM Group Risk Dashboard

Review Date: 23/2/2022

25 risks

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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.

Āpitihanga / Attachments

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  

 


Assurance, Risk and Finance Committee Meeting Agenda

16 March 2022

 

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Assurance, Risk and Finance Committee Meeting Agenda

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.

ngĀ Āpitihanga / Attachments

1.       Council Financial Report Jan 2022 (Pd7) FINAL - A3613060  

 


Assurance, Risk and Finance Committee Meeting Agenda

16 March 2022

 

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Assurance, Risk and Finance Committee Meeting Agenda

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.

 TŪTOHUNGA / Recommendation

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.

Āpitihanga / Attachments

1.       FNHL Half Year Report 21.22 - A3613480  

 


Assurance, Risk and Finance Committee Meeting Agenda

16 March 2022

 

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Assurance, Risk and Finance Committee Meeting Agenda

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.

Recommendation

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.

Attachments

1.       Level of Service Report Q2 2021-2022 - A3612225  

 


Assurance, Risk and Finance Committee Meeting Agenda

16 March 2022

 

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Assurance, Risk and Finance Committee Meeting Agenda

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.

tŪtohunga / Recommendation

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.

Āpitihanga / Attachments

Nil


Assurance, Risk and Finance Committee Meeting Agenda

16 March 2022

 

6            Te  Wāhanga Tūmatati / 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

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 - 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

6.3 - FNDC Current Legal Action Potential Liability Claims Report

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

 

 

 

                           


Assurance, Risk and Finance Committee Meeting Agenda

16 March 2022

 

7            Karakia Whakamutunga – Closing Prayer

8            Te Kapinga Hui / Meeting Close