AGENDA
Audit, Risk, and Finance Committee Meeting
Thursday, 26 September 2019
Time: |
12.45 pm |
Location: |
Council Chamber Memorial Avenue Kaikohe |
Membership:
Cr John Vujcich - Chairperson
Mayor John Carter
Cr Tania McInnes
Cr Ann Court
Cr Felicity Foy
Cr Colin (Toss) Kitchen
Cr Sally Macauley
Cr Kelly Stratford
Member Bruce Robertson
Member Adele Gardner
Member Mike Edmonds
Member Terry Greening
Audit, Risk, and Finance Committee Meeting Agenda |
26 September 2019 |
AUDIT, 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 |
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Carter Family Trust |
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Felicity Foy |
Director - Northland Planning & Development |
I am the director of a planning and development consultancy that is based in the Far North and have two employees.
Property owner of Commerce Street, Kaitaia |
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I will abstain from any debate and voting on proposed plan change items for the Far North District Plan. |
I will declare a conflict of interest with any planning matters that relate to resource consent processing, and the management of the resource consents planning team. |
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I will not enter into any contracts with Council for over $25,000 per year. I have previously contracted to Council to process resource consents as consultant planner. |
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Flick Trustee Ltd |
I am the director of this company that is the company trustee of Flick Family Trust that owns properties on Weber Place, Seaview Road, and Allen Bell Drive. |
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Elbury Holdings Limited |
This company is directed by my parents Fiona and Kevin King. |
This company owns several dairy and beef farms, and also dwellings on these farms. The Farms and dwellings are located in the Far North at Kaimaumau, Bird Road/Sandhills Rd, Wireless Road/ Puckey Road/Bell Road, the Awanui Straight and Allen Bell Drive. |
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Foy Farms partnership |
Owner and partner in Foy Farms - a farm in three titles on Church Road, Kaingaroa |
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Foy Farms Rentals |
Owner and rental manager of Foy Farms Rentals for 6 dwellings on Church Road, Kaingaroa and 2 dwelling on Allen Bell Drive, Kaitaia, and 1 property on North Road, Kaitaia |
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King Family Trust |
This trust owns several titles/properties at Cable Bay, Seaview Rd/State Highway 10 and Ahipara - Panorama Lane. |
These trusts own properties in the Far North. |
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Previous employment at FNDC 2007-16 |
I consider the staff members at FNDC to be my friends |
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Partner Felicity Foy |
Employed by Justaplumber Taipa |
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Friends with some FNDC employees |
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Colin Kitchen |
No form received |
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Tania McInnes |
Director – GBT Ventures Ltd |
Company not currently operational |
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Will notify Council if company becomes operational. |
Member of Northland Conservation Board |
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Conservation matters not aligned with Council policy. |
Will notify Council should a perceived conflict arise. |
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Trustee – Northland Youth Education Trust |
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No perceived conflicts |
Will notify Council should a perceived conflict arise. |
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Founder – Bay of Islands Women’s Nexus |
No perceived conflicts. An informal organisation |
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Own a section on Seaview Road, Paihia 0200 |
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Having worked within the organisation in the early 2000’s, I know a number of staff, none of which I am close with. |
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John Vujcich |
Board Member |
Ngati Hine Health Trust |
Matters pertaining to property or decisions that may impact of their health services |
Declare interest and abstain |
Board Member |
Pioneer Village |
Matters relating to funding and assets |
Declare interest and abstain |
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Director |
Waitukupata Forest Ltd |
Potential for council activity to directly affect its assets |
Declare interest and abstain |
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Director |
Rural Service Solutions Ltd |
Matters where council regulatory function impact of company services |
Declare interest and abstain |
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Director |
Kaikohe (Rau Marama) Community Trust |
Potential funder |
Declare interest and abstain |
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Partner |
MJ & EMJ Vujcich |
Matters where council regulatory function impacts on partnership owned assets |
Declare interest and abstain |
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Member |
Kaikohe Rotary Club |
Potential funder, or impact on Rotary projects |
Declare interest and abstain |
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Member |
New Zealand Institute of Directors |
Potential provider of training to Council |
Declare a Conflict of Interest |
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Member |
Institute of IT Professionals |
Unlikely, but possible provider of services to Council |
Declare a Conflict of Interest |
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Member |
Kaikohe Business Association |
Possible funding provider |
Declare a Conflict of Interest |
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Ann Court |
Waipapa Business Association |
Member |
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Warren Pattinson Limited |
Shareholder |
Building company. FNDC is a regulator and enforcer |
No FNDC Controls |
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Kerikeri Irrigation |
Supplies my water |
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No EM intervention in disputes |
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Top Energy |
Supplies my power |
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No other interest greater than the publics |
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District Licensing |
N/A |
N/A |
N/A |
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Top Energy Consumer Trust |
Trustee |
Crossover in regulatory functions, consenting economic development and contracts such as street lighting. |
Declare interest and abstain from voting. |
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Ann Court Trust |
Private |
Private |
N/A |
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Waipapa Rotary |
Honorary member |
Potential community funding submitter |
Declare interest and abstain from voting. |
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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. |
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Property on Daroux Dr, Waipapa |
Financial interest |
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Flowers (I get flowers occasionally) |
Ratepayer 'Thankyou' |
Bias/ Pre-determination? |
Declare to Governance |
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Coffee and food |
Ratepayers sometimes 'shout' food and beverage |
Bias or pre-determination |
Case by case |
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Consider all staff my friends |
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. |
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My husband is a builder and may do work for Council staff |
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Warren Pattinson (Husband) |
Warren Pattinson Limited |
Director |
Building Company. FNDC is a regulator |
Remain at arm’s length |
Air NZ |
shareholder |
None |
None |
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Warren Pattinson Limited |
Builder |
FNDC is the consent authority, regulator and enforcer. |
Apply arm’s length rules |
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Kurbside Rod and Custom Club (unlikely) |
President NZ Hot Rod Association |
Potential to be linked to a funding applicant and my wife is on the decision making committee. |
unlikely to materialise but would absent myself from any process as would Ann. |
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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. |
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Sally Macauley |
Chairman |
Northland District Health Board |
Matters pertaining to health issues re Fluoride and freshwater as an example. |
Declare a perceived conflict. |
Chairman |
Oranga Tamaraki - Ministry of Vulnerable Children- Northland Community Response Forum |
Matters pertaining to this ministry |
Declare a perceived conflict. |
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Judicial Justice of the Peace |
Visitations to Ngawha Prison |
Matters pertaining to Judicial Issues re Ngawha Prison |
Declare a perceived Interest |
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The Turner Centre |
FNDC Representative |
Observer, acknowledging FNDC financial contribution. |
Note FNDC partnership |
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Trustee |
Kaikohe Education Trust |
Providing students laptops - possible request for written support to funders |
Declare a conflict |
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Executive member |
Kaikohe Business Association |
Matters pertaining to request for written support to funders. |
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Chairman |
Bay of Islands Arts Festival Trust |
Issues pertaining to the application of support funds |
Declare a conflict of interests |
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Trustee |
Bay of Islands Radio Marine |
Issues pertaining to the application of support funds |
Declare a conflict of interests |
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Secretary/Trustee |
Kerikeri International Piano Competition |
Issues pertaining to the application of support funds |
Declare a conflict of interests |
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Trustee/Director |
Kaikohe Community and Youth Trust |
Possible application of support funding |
Declare a conflict of interests |
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Commercial |
Palmer Macauley Offices- Kerikeri and Kaikohe |
Infrastructural matters with FNDC |
Declare a conflict |
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Private property of which there would not be any conflict. |
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Paihia, Kerikeri, Kaikohe |
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Peter Macauley (Husband) |
Senior Partner |
Palmer Macauley |
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Peter Macualey |
Barristers and Solicitors- Kerikeri, Kaikohe and Mangonui |
Legal matters with FNDC |
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Director/Trustee |
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St John NZ Priory Chapter |
St John Priory Chapter |
Legal matters with FNDC |
Declare a conflict |
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Senior Partner |
Peter Macauley- Palmer Macauley Barristers and Solicitors Kaikohe, Kerikeri AND Mangonui |
Legal matters with FNDC |
Declare a conflict |
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St John NZ |
Priory Trust Board |
Writing of policies and legal matters as an example |
Note Interests |
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Lions Club of Kaikohe |
Director |
Legal matters etc |
Note Interests |
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Kaikohe Rugby Club |
Patron |
Legal Matters |
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Viking Rugby Club, Whangarei |
Life Member |
Legal Matters |
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Private Property |
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Kerikeri, Paihia - no contents. |
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Bruce Robertson |
No interests to declare |
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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 |
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Adele Gardner |
N/A - FNDC Honorarium |
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The Far North 20/20, ICT Trust |
Trustee |
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Te Ahu Charitable Trust |
Trustee |
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ST Johns Kaitaia Branch |
Trustee/ Committee Member |
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I know many FNDC staff members as I was an FNDC staff member from 1994-2008. |
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Partner of Adele Gardner |
N/A as Retired |
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Terry Greening |
Greening Family Trust |
Beneficiary |
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Highly unlikely to interface with FNDC |
Bay of Islands Walking Weekend Trust |
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Potential of seeking funds |
Step aside from any requests or decisions regarding requests |
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Russell 2000 Trust (Chairman) |
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Trust is about to wind up. |
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Russell Centennial Trust (Chairman) |
Manages Russell Museum |
Seeks funds from council |
Step aside from any requests or decisions regarding requests |
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Residence at Kaha Place, Russell |
Nil |
Nil |
N/A |
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Terry Greening (Wife) |
Greening Family Trust |
Beneficiary |
N/A |
N/A |
Residence at Kaha Place, Russell |
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Cr Kelly Stratford |
Office manager at Kinghans. |
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Denture assistant at
Kawakawa denture Services |
None |
None |
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KS Bookkeeping and Administration |
Business owner, bookkeeping and development of environment management plans for clients. |
None perceived |
I’d step aside from decisions that arise, that may have conflicts. |
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Kinghans Accounting |
Office Administration |
None perceived |
Step aside from decisions that arise, that may have conflicts. |
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Waikare Marae Trustees |
Trustee |
May be perceived conflicts |
Case by case basis |
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Kawakawa Business & Community Association |
Committee member/newsletter editor and printer |
None perceived |
If there was a perceived conflict, I will step aside from decision making |
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Bay of Islands College |
Parent elected trustee |
None perceived |
If there was a perceived conflict, I will step aside from decision making |
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Karetu School Bay Cosmos Soccer |
Parent elected trustee. Committee member and coach |
None perceived |
If there was a perceived conflict, I will step aside from decision making |
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Property in Waikare and Moerewa |
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If there was a perceived conflict, I will step aside from decision making |
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Sister is employed by Far North District Council |
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Will not discuss any matters regarding her role or my role as Councillor that are confidential. |
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Coffee and food |
Ratepayers sometimes 'shout' food and beverage |
Bias or pre-determination |
Case by case |
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Kelly Stratford (Husband) |
Property in Moerewa |
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N/A |
N/A |
Audit, Risk, and Finance Committee Meeting Agenda |
26 September 2019 |
Audit, Risk, and Finance Committee Meeting
will be held in the Council Chamber, Memorial Avenue, Kaikohe on:
Thursday 26 September 2019 at 12.45 pm
Order Of Business
1 Apologies and Declarations of Interest
3 Confirmation of Previous Minutes
3.1 Confirmation of Previous Minutes
4 Strategic Planning and Policy Group
5.1 Restricting water supply options
5.2 Far North District Council Data Governance Supplementary Agenda
6.2 Internal Audit and Assurance
6.3 Council Financial Report as at 31 August 2019 Supplementary Agenda
6.4 Building Consent Accreditation Update Supplementary Agenda
7.1 Confirmation of Previous Minutes (Public Excluded)
7.2 Far North Holdings Ltd Annual Report for the year ended 30 June 2019
7.3 Draft Annual Report for the year ended 30 June 2019
7.4 Pre-funding of approved debt
7.5 FNDC Current Legal Action Potential Liability Claims
7.6 Te Pu o Te Wheke - Risk Assessment Supplementary Agenda
26 September 2019 |
1 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 Governance 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.
No requests for deputations were received at the time of the Agenda going to print.
26 September 2019 |
3 Confirmation of Previous Minutes
3.1 Confirmation of Previous Minutes
File Number: A2564502
Author: Melissa Wood, Meetings Administrator
Authoriser: Aisha Huriwai, Team Leader Governance Support
Purpose of the Report
The minutes of the previous Audit, Risk, and Finance Committee meeting are attached to allow the Committee to confirm that the minutes are a true and correct record.
That the Audit, Risk, and Finance Committee confirm that the minutes of the meeting of the Committee held 25 July 2019 are a true and correct record. |
1) Background
Local Government Act 2002 Schedule 7 clause 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 meeting 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 meeting.
3) Financial Implications and Budgetary Provision
There are no financial implications or the need for budgetary provision as a result of this report.
1. Audit, Risk, and Finance Committee unconfirmed minutes 25 July 2019 - A2572620 ⇩
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 on 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. |
This report is asking for the 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. |
MINUTES OF Far North District Council
Audit, Risk, and
Finance Committee Meeting
HELD AT THE Council
Chamber, Memorial Avenue, Kaikohe
ON Thursday, 25 July
2019 AT 12:45
PM
PRESENT: Cr John Vujcich, Mayor John Carter (HWTM), Cr Tania McInnes (Deputy Mayor), Cr Ann Court, Cr Felicity Foy (via video-conference0, Cr Colin (Toss) Kitchen, Cr Sally Macauley, Cr Kelly Stratford, Member Bruce Robertson, Member Adele Gardner (via video-conference), Member Mike Edmonds, Member Terry Greening
STAFF PRESENT: Shaun Clarke - Chief Executive Officer, William J Taylor MBE - General Manager Corporate Services, Andy Finch – General Manager Infrastructure and Asset Management, Darrell Sargent – General Manager Strategic Planning and Policy, Dean Myburgh – District Services, Darren Edwards – General Manager Environmental, Community and Customer Services, Janice Smith – Chief Financial Officer, Richard Edmondson – Manager Communications, Matt Bell – Manager Risk and Improvement, Tanya Reid – Business Improvement Specialist, Glenn Rainham – Manager Infrastructure Operations, Guy du Toit – Programme Delivery and Business Intelligence, Kirsten Shearer – Business Partner, Lisa Huria – Audit and Assurance Specialist, Scott May – Business Improvement Specialist, Kim Hammond – Meetings Administrator
1 Apologies and Declarations of Interest
There were no apologies or declarations of interest
2 Deputation
There were no deputations
3 Confirmation of Previous Minutes
Confirmation of Previous Minutes Agenda item document number A2497689, pages 14 - 21 refers |
Committee Resolution 2019/16 Moved: Cr John Vujcich Seconded: Cr Colin (Toss) Kitchen That the Audit, Risk, and Finance Committee confirm that the minutes of the meeting of the Committee held 30 May 2019 are a true and correct record. Carried |
4 Strategic Planning and Policy Group
Risk Management Policy Agenda item document number A2541869, pages 22 - 27 refers |
Committee Resolution 2019/17 Moved: Cr Kelly Stratford Seconded: Mayor John Carter That the Audit, Risk, and Finance Committee recommend that Council adopt the 2019 Risk Management Policy. )Carried Note: request that a workshop be held in the new triennium to cover the Risk Management Framework |
5 Corporate Services Group
Motion |
Committee Resolution 2019/18 Moved: Cr John Vujcich Seconded: Mayor John Carter That item 5.1 FNHL – Re-Appointment of Directors be moved into the Public Excluded meeting to protect the privacy of natual persons. Carried |
5.2 Audit Risk and Finance Sub-Committee Draft Terms of Reference Supplementary Agenda item 5.2 document number A2557674, pages 4 - 8 refers |
Committee Resolution 2019/19 Moved: Cr John Vujcich Seconded: Member Mike Edmonds That the Audit, Risk and Finance Committee adopts the draft terms of reference for the Data Governance Subcommittee. Carried |
6 Information Reports
6.1 Revenue Recovery Report - June 2019 Agenda item document number A2550617, pages 28 - 32 refers |
Committee Resolution 2019/20 Moved: Cr Kelly Stratford Seconded: Member Bruce Robertson That the Audit, Risk, and Finance Committee receive the report “Revenue Recovery Report - June 2019”. .Carried Note: request a report be presented in the new triennium on the restrictions Council can place on those that have not paid their rates. |
6.2 Risk Management Report Agenda item document number A2543239, pages 33 - 52 refers |
Committee Resolution 2019/21 Moved: Member Bruce Robertson Seconded: Member Adele Gardner That the Audit, Risk, and Finance Committee receive the report “Risk Management Report”. Carried |
6.3 Internal Audit and Assurance Agenda item document number A2542003, pages 53 - 55 refers |
Committee Resolution 2019/22 Moved: Mayor John Carter Seconded: Cr Tania McInnes That the Audit, Risk, and Finance Committee receive the report “Internal Audit and Assurance”. Carried |
6.4 Update on Risk Treatment Plan - Maintaining Building Consent Authority IANZ Accreditation in October 2019. Agenda item document number A2551082, pages 56 - 63 refers |
Committee Resolution 2019/23 Moved: Cr Tania McInnes Seconded: Cr Kelly Stratford That the Audit, Risk, and Finance Committee receive the report “Update on Risk Treatment Plan - Maintaining Building Consent Authority IANZ Accreditation in October 2019. Carried |
Attachments tabled at meeting 1 Tabled document - BCA Situation Report |
6.5 Level of Service KPI Quarter 4 Performance Report Supplementary Agenda item 6.5 document number A2554782, pages 9 - 36 refers |
Committee Resolution 2019/24 Moved: Cr John Vujcich Seconded: Mayor John Carter That the Audit, Risk, and Finance Committee receive the report “Level of Service KPI Quarter 4 Performance Report “. Carried |
Attachments tabled at meeting 1 Tabled document - LOS KPI Q4 - updated page 5 - Roading measures |
7 Public Excluded
RESOLUTION TO EXCLUDE THE PUBLIC
Committee Resolution 2019/25 Moved: Cr John Vujcich Seconded: Cr Tania McInnes That the public be excluded from the following parts of the proceedings of this meeting. The general subject matter of each issue 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:
Carried |
2.1 Confirmation of Information and Decisions in Open Meeting |
Committee Resolution 2019/22 Moved: Cr John Vujcich Seconded: Cr Tania McInnes That the Audit, Risk and Finance Committee: a) approve that the following decisions contained in the part of the Audit, Risk and Finance Committee meeting held with the public excluded are to be restated in the public meeting 7.3 FNHL - Re-appointment of Directors That the Audit, Risk and Finance Committee: a) approve the re-appointment of Bill Birnie as a director of Far North Holdings Ltd for a further period of two years, to July 2021, at which point he will stand down from the board. b) approve the re-appointment of Ross Blackman as a director of Far North Holdings Ltd for a further period of one year, to July 2020, at which point he will stand down from the board. b) approve that the following information contained in the part of the Audit, Risk and Finance Committee meeting held with the public excluded are to be restated in the public meeting 7.3 FNHL - Re-appointment of Directors Carried |
Attachments tabled at meeting 1 ARF 25 July 2019_FNHL - Re-appointment of Directors - Reinstated in public |
8 Meeting Close
The meeting closed at 3:27 pm.
The minutes of this meeting will be confirmed at the Audit, Risk, and Finance Committee Meeting to be held on 26 September 2019.
...................................................
CHAIRPERSON
26 September 2019 |
4 Strategic Planning and Policy Group
File Number: A2542186
Author: Roger Ackers, Manager - Strategy Development
Authoriser: Sheryl Gavin, General Manager Strategic Planning and Policy (Acting)
Purpose of the Report
To seek approval for the Koha Policy, in order to provide staff with guidance around the obligations associated with payment or giving koha.
Executive Summary
· The need to provide guidance to staff and elected members on engaging with the community to meet the obligations associated with payment or giving koha has been identified within the organisation.
· The Koha Policy formalises a practice already adopted by some Council staff members.
· The report provides the Committee with three options to consider including adopt the policy, maintain the status quo or defer the decision to a later date.
That the Committee recommend that Council adopt the Koha Policy. |
1) Background
The customary practice of giving and receiving koha is widely observed in the Far North District.
Administration identified that staff and elected members engaging with external parties on projects or attending meetings on marae needed some guidance to meet the obligations associated with payment or giving koha.
The Koha Policy aims to take an overarching organisational approach to support staff members and elected members who may be unaware or unsure of what to do when meeting externals or attending meetings on marae. Furthermore, it is important to take an organisational approach to the behaviour of staff to ensure there is consistency.
Council is currently in a process of change whereby a greater emphasis is placed on strengthening relationships and enhancing engagement with key external groups in the community. With this in mind, engagement with groups on marae throughout the region will increase. The Koha Policy supports this change from a relationship management perspective by assisting staff and elected members to behave consistently and in good faith.
2) Discussion and Options
Option One: do nothing
Under Option One no policy will be adopted and subsequently no guidelines (attached) put in place to support staff when considering giving a koha. The practice of giving koha will continue on a case by case basis.
Audit New Zealand, in past audits, have raised concerns when reviewing sensitive expenditure and have recommended that a koha policy be adopted to address the concerns that they have raised in regards to koha.
If this option is adopted Council loses the opportunity to take an overarching organisational approach to managing the obligations and expectations associated with giving koha. There is a risk that the adequate approval and reporting processes will not be put in place. This option is not recommended.
Option Two: Adopt the policy (recommended option)
Option Two proposes an approach to support staff and elected members by putting guidelines in place to manage obligations and expectations. This approach also supports recent developments in the Council to improve its relationship management. Approving the policy and allowing for a period of implementation provides Council with an opportunity for a further review in three years to determine its level of compliance.
If this option is adopted Council will have a koha policy that assists staff and reflects the move towards strengthening and enhancing relationships within the community.
Option Three: Address the policy once the new Council is formed
Option three proposes considering the policy once the new Council has been formed post the elections in October 2019. Option three would see the Koha Policy considered at the first committee meeting post the election.
If this option is adopted implementation of the policy will be delayed. Administration has identified the need to provide guidance to staff and elected members on when and what koha is appropriate. This need could be addressed by the implementation of the attached guidelines. However further delay in the adoption of a koha policy means that the concerns raised by Audit New Zealand remain. These concerns could manifest themselves as real issues for the Council in the absence of an adopted policy.
This option is therefore not recommended.
Reason for the recommendation
Option two is recommended for the following reasons:
1. It addresses the concerns regarding sensitive expenditure and koha raised by Audit New Zealand
2. it addresses the issue of uncertainty around the expectations and obligations associated with giving koha;
3. it adopts a best practice approach;
4. It supports the move towards strengthening relationships in the community.
3) Financial Implications and Budgetary Provision
Adopting the policy will have the following financial implications:
The koha policy requires new methods of reporting and a new process for approval. An annual budget of five thousand per locality totalling $15,000 per annum is appropriate and in line with current expenditure. Ongoing operational costs will be resourcing to implement the policy. It is recommended that the Te Hono business group be considered as the appropriate group for implementation of the policy.
1. 2019 Koha Policy - A2656774 ⇩
2. Koha implementation guideline and process - A2646574 ⇩
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 |
The recommendation in itself contained in this report does not meet the thresholds as set in 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. |
The recommendation in this report is aimed at complying with Part 6 – Planning, Decision Making and Accountability of the Local Government Act. |
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. |
Reviewing a policy has District wide relevance and therefore does not require involvement from the Community Boards. |
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. |
The recommendation in this report has no direct impact on Maori. However the recommendation supports the relationship with Maori and has been developed in conjunction with the Maori Development Advisor. |
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. |
The recommendation has no direct impact on any particular interested party or individual. |
State the financial implications and where budgetary provisions have been made to support this decision. |
The financial implications have been considered and discussed in the report. |
Chief Financial Officer review. |
The Chief Financial Officer has reviewed this report. |
Koha Guideline and Process
1. Purpose
Far North District Council (FNDC) recognises the requirement to give appropriate amounts of koha from time to time. The Koha Policy provides guidance to staff and elected members in order to meet the obligations associated with payment or giving koha to organisations and individuals.
2. Scope
This policy applies to all employees and elected members of FNDC.
3. What is koha?
Koha is a Maori customary practice, concept and process and is an extremely important part of the Maori culture.
Koha is considered a treasure by Maori and may be either tangible or intangible, It can be a physical thing such as food, money, reciprocal activity, certain rights and privileges to resources, land, heirloom, treasured item, or an intangible thing like a vision, thought, feeling, emotion, supernatural manifestation, concept, idea.
Because Koha is imbued with spirituality and cultural beliefs and practices, there is no clear-cut English translation and it has often wrongly been interpreted as a gift. The giving of Koha acts to seal a relationship and is part of the protocol of reciprocation. To minimise any likelihood of causing offence through misunderstanding, it is incumbent upon managers and staff involved in giving Koha to develop an in-depth understanding and empathy of the concept.
Koha is a ‘Tikanga Maori’ which means, according to the Resource Management Act 1991, a customary value and practice. In Section 39 part (2)(b) it states Tikanga Maori should be recognised where appropriate.
Koha is also a Taonga which, according to the Resource Management Act 1991, means something that is highly prized. Article 2 of the Treaty of Waitangi acknowledges the term ‘Taonga’.This acknowledgement confirms and guarantees the full, exclusive and undisturbed possession of taonga to Iwi and Hapu. Therefore in certain situations it is up to Iwi and Hapu to declare when Koha might be considered as Taonga.
Non monetary examples of koha might include taonga, e.g. greenstone, carvings, kai (food), or resources readily available to FNDC (e.g., staff time and expertise, use of vehicles, facilities or outdoor equipment, such as marquees and seating, etc).
4. Definition
For the purposes of this policy, Koha will be defined according to the IRD
“An unconditional gift is defined as a donation made to a non-profit body, where the giver (or any relative) does not receive any goods or services in return for the donation. This carries with it no obligations to account for tax”.
4. When to give koha
It depends on the occasion whether it is appropriate to give Koha. However the following are examples of when to give Koha.
Elected members and/or Council staff attend a gathering representing the Council, on a marae that involves a powhiri or welcome.
Elected members and/or Council staff attend a gathering representing the Council at a building that accommodates a Runanga or Iwi Authority and involves a powhiri or welcome.
Attendance by Elected members and/or Council staff representing Council at a tangihanga held on a marae or in a private home.
To any Kaumatua and Kuia or group supporting Council at any function involving a Whakatau or Powhiri.
7. When is Koha not given
Situations where koha would not normally be expected include:
When attending any hui as an individual not representing Council
Staff attendance at a regular meeting held at a marae
informal or ongoing discussions between staff and iwi representatives about a Council matter.
8. How to give koha
It is good practice to consult with a member of the Te Hono team before giving koha to ensure that it is given in a way that is appropriate for the occasion.
As a general rule, whenever a group goes on to a marae, and is welcomed, it is customary for the last speaker of the visitors to present money from the group, the “koha”, in an envelope.
Sometimes, it is fine to give the koha envelope quietly to the person who is running the hui, at the back later, however once again consult with a Te Hono team member to get the correct advice for the occasion.
9. How much should be given?
In determining an appropriate amount of koha for any particular occasion, Council must give due regard to standards of probity and financial prudence while being mindful of the cultural imperative of giving adequate or reasonably generous koha.
Another consideration and equally as important is that the amount of koha given should adequately reflect the status of Council’s representative/s mana.
Here are some examples with suggested koha. Note that these examples only provide a guide. They are not prescriptive. Staff must assess the amount on a case by case basis , if in doubt check with Te Hono.
Example 1 A Council department is invited for a noho marae (overnight stay). The marae does not ask for a fee. This is clearly a case where koha should be given. Estimate the cost of meals and accommodation per person, and add a 'top up' in acknowledgement of hospitality.
Example 2 Two councillors and four staff hold a hui on the marae with local people about the preparation of a plan. The hui lasts four hours and lunch is served. Council gives a koha of $200, plus any additional costs associated with lunch.
Example 3 A respected kaumatua, dies. A group of councillors and staff pay respects on behalf of the Council at his tangi. Council gives a koha of $300.
Example 4 The Council decides it would like to hold a Treaty of Waitangi training workshop on a marae. The marae charges a fee for hire of the venue. Council pays the fee, and also gives a koha of $150 in appreciation of the hospitality shown.
Example 5. The council is holding a citizenship ceremony and has invited a school group to perform waiata during the ceremony. Council gives a Koha of $300
10. Process for payment of koha
When staff/elected members attend a function on behalf of the Council, and koha is appropriate, a dollar figure or koha ‘in kind’ should be discussed and pre-approved by the appropriate General Manager. NOTE It is advisable that General Managers consult with a member from Te Hono to advise whether koha is appropriate.
The koha should be recorded on the Request for Koha form. Koha should be charged against the relevant department’s GL code. If koha is monetary it should, where practicable, be given via a bank transfer, made out to the relevant iwi organisation/entity.
The Koha form should be given to the Finance Department at least three days before the koha is needed. Finance will process the form and make payment to the bank account specified.
If the payment is to be in cash then a petty cash request form (obtainable from the Finance Team) should be completed at least 2 days prior to the payment being required and then the cash can be collected directly from the bank by the relevant staff member and handed to the Group’s General Manager.
26 September 2019 |
5.1 Restricting water supply options
File Number: A2618783
Author: Janice Smith, Chief Financial Officer
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
To provide the Audit, Risk, and Finance Committee with information to allow the Committee to make recommendations to the incoming Council/Committee on the possible use of water restrictors where water accounts are not paid or leaks are not remedied.
Executive Summary
· The Revenue Recovery report to the Audit, Risk, and Finance Committee in July identified an arrears value relating to the supply of water.
· The Committee asked staff to investigate options in relation to the possible restriction of supply on accounts where there was persistent non payment.
· The Committee outlined a desire to consider any options and recommend a course of action for a future Committee/Council to follow.
That the Audit, Risk, and Finance Committee recommend to an incoming Council/Committee: a) That staff develop a procedure outlining the steps to be taken to identify water accounts that are either in arrears or failing to respond to leak advice notices, that should be subject to restriction of water supply. a) That once the procedure has been approved, pursue the installation of water restriction measures where water accounts meet the criteria set in the procedure.
|
1) Background
At the July Audit, Risk, and Finance Committee members indicated that they would like to have information brought back to them outlining what action could be taken where water arrears were accumulated over a period of time or leaks were not attended to.
2) Discussion and Options
Research has been undertaken in relation to the legal position of restricting water supply. Extracts from the relevant Acts and Council’s Bylaw are attached for reference.
The Health Act 1956 allows water supply to be restricted but it can’t be withdrawn. This means that the rate of flow to the household is reduced.
The current arrears levels relating to water accounts are as follows:
|
Total arrears |
Arrears older than 1 year |
% older than 1 Year |
General Title |
$505,452 |
$306,385 |
61% |
Maori Freehold Land |
$175,069 |
$136,945 |
78% |
Any procedure that is established will focus on accounts that are older than 1 year and will be applied to the oldest accounts first.
In order to reduce supply, a physical restrictor is required to be installed on the water line. This is a washer placed within the meter. It requires FNDC, DHB and security staff to be present when this is fitted. Due to the staff and other agency time required to install each restrictor it would be sensible to try and apply any procedure on a location basis.
Staff have discussed the restriction of water with other Councils and some (Wellington Water for example) do apply this tool to assist in the recovery of outstanding charges as well as focusing the customers attention on leaks.
Reason for the recommendation
The Audit, Risk, and Finance Committee requested that water restriction be investigated.
3) Financial Implications and Budgetary Provision
There would be a time requirement for FNDC, DHB and other staff to fit the restrictors to the meters and to remove them again once payment has been received, or the leak remedied.
1. Legislation in relation to water restriction - A2649001 ⇩
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 |
Low |
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision. |
Legislation is attached to the report |
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. |
No specific community board impacts |
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. |
As this deals with arrears on water accounts on Maori Freehold Land there may be some impact on specific households if the proposal is approved. |
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. |
The procedure will identify what would need to be done if any of the customers likely to be affected had specific medical requirements |
State the financial implications and where budgetary provisions have been made to support this decision. |
No specific costs identified at this point |
Chief Financial Officer review. |
The Chief Financial Officer has prepared this report |
26 September 2019 |
File Number: A2645775
Author: Tanya Reid, Business Improvement Specialist
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
To provide the organisations top 12 risk dashboard risk progress reports and group risk up-date. No decision required.
Executive Summary
· Risk progress updates are provided for six of the top 12 risk treatments plans.
· Part one of a two part deep dive workshop has been completed for ARF005 affordability risk.
· Progress has also been made on group risk.
That the Audit, Risk, and Finance Committee receive the report “Risk Management Report”.
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Background
The Risk and Improvement team facilitated the development of treatment plans for the organisations top 12 risks.
Nine of 12 risk progress reports and treatment plans were provided at the 25 July meeting. The remaining three risk progress reports and treatment plans (ARF001, ARF008 and ARF009) are now complete.
Regular reporting on all top 12 risks has commenced.
Deep dive workshops are being undertaken for each of the top 12 risks. The ARF001 Climate Change workshop has been completed. At the ARF Committees request, the ARF005 Affordability risk was identified as the focus of the next deep dive workshop.
By resolution at the 25 July the Audit, Risk & Finance Committee recommended that Council adopt the 2019 Risk Management Policy.
The Risk and Improvement team will facilitate the development of group risk dashboards.
Discussion and Next Steps
Six risk progress reports, with treatment plans, are attached. All top 12 organisational risk treatment plans are identified.
The ARF005 Affordability deep dive workshop has been split into two parts, with the first part held 22 August, the second part to be scheduled. At the end of this workshop members will agree the next risk “deep dive.”
The 2019 Risk Management Policy was adopted by Council 29 August. A workshop will be scheduled for the new triennium to cover the Risk Management Framework.
Group risk development workshops have been scheduled.
Financial Implications and Budgetary Provision
At this stage no additional budgetary provision has been identified for the treatment plans.
1. Risk Management Report Attachment 1 - ARF001 Climate Change - A2645527 ⇩
2. Risk Management Report Attachment 2 - ARF003 Health Safety and Wellbeing Vulnerabilities - A2645525 ⇩
3. Risk Management Report Attachment 3 - ARF006 Projects Priorities Delivery Delays - A2658282 ⇩
4. Risk Management Report Attachment 4 - ARF008 Civil Defence - A2645804 ⇩
5. Risk Management Report Attachment 5 - ARF009 Customer Service Delivery - A2647458 ⇩
6. Risk Management Report Attachment 6 - ARF012 Contract Management - A2645807 ⇩
File Number: A2642680
Author: Lisa Huria, Audit and Assurance Specialist
Authoriser: William J Taylor MBE, General Manager - Corporate Services
Purpose of the Report
To provide the Audit, Risk, and Finance Committee with an update on work completed within the FNDC Assurance Programme 2019.
Executive Summary
· The Audit, Risk and Finance Committee approved the FNDC Assurance Programme 2019 at its March 2019 meeting.
· This report provides an update on work completed within the FNDC Assurance Programme 2019, and the current status of internal and external audit recommendations.
That the Audit, Risk, and Finance Committee receive the report Internal Audit and Assurance.
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Background
At the Audit, Risk, and Finance Committee March 2019 meeting, the Committee approved the FNDC Assurance Programme 2019.
This programme consisted of a number of areas requiring assurance such as TechnologyOne User Access, Conflicts of Interest Management, Duplicate Payment Controls and the development and implementation of a Legislative Compliance Framework.
At the Audit, Risk, and Finance Committee July 2019 meeting, the Committee requested a clear timeframe for the development and implementation of a Legislative Compliance Framework.
Discussion and Next Steps
TechnologyOne User Access – Annual Review
As per Audit New Zealand recommendation, an annual review of user access within the TechnologyOne system is scheduled to take place in September 2019. This is to ensure delegated financial authorities are loaded accurately.
Conflicts of Interest – Annual Review
As per Audit New Zealand recommendation, an annual review of conflicts of interest management is scheduled to take place in September 2019. This is to ensure conflicts of interest are being captured, and that management plans are developed and implemented.
Duplicate Payments Controls
As per Audit New Zealand recommendation, controls and reporting have been put in place to identify and rectify any duplicate payments.
Legislative Compliance Framework
A Legislative Compliance Framework is an essential part of managing risk in any organisation. It enables Council to carry out its statutory functions and duties by establishing and maintaining a system for monitoring and reporting on compliance with legislation.
The Legislative Compliance Framework will be implemented in a phased approach:
Step |
Description |
Timeframe |
Step 1 |
Planning and design of framework |
September 2019 |
Step 2 |
Develop system |
October - December 2019 |
Step 3 |
Identify legislative requirements |
October - December 2019 |
Step 4 |
Assign responsibilities |
October - December 2019 |
Step 5 |
Provide training |
January - April 2020 |
Step 6 |
Implement and integrate into processes |
January - April 2020 |
Step 7 |
Compliance reporting |
January - April 2020 |
Audit Recommendations
Good progress has been made implementing recommendations from previous internal and external audits. There are plans in place to complete the recommendations that are currently underway.
Audit Name |
Recommendations Completed |
Recommendations Underway |
Internal Audit - Financial Controls 2017 |
17 |
0 |
External Audit - KPMG - Procurement 2017 |
28 |
6 |
External Audit - Audit NZ - Annual Management Report - Interim 2017 |
14 |
4 |
External Audit - Audit NZ - Annual Management Report - Final 2017 |
11 |
0 |
Internal Audit - Information Security 2018 |
12 |
3 |
Internal Audit - Contract Management Review 2018 |
2 |
2 |
External Audit - Audit NZ - Annual Management Report - Final 2018 |
4 |
1 |
Financial Implications and Budgetary Provision
This report is for information only.
Nil
RESOLUTION TO EXCLUDE THE PUBLIC