Activities Performance Audit Committee






Minutes of a meeting of Activities Performance Audit Committee held in the Council Chambers, 15 Forth Street, Invercargill on Wednesday, 18 November 2015 at 11.05am.





Lyall Bailey



Gary Tong



Stuart Baird



Brian Dillon



Rodney Dobson



John Douglas



Paul Duffy



Bruce Ford



George Harpur



Julie Keast



Ebel Kremer



Gavin Macpherson



Neil Paterson





Group Manager Environment and Community, Bruce Halligan, Group Manager Policy and Community Rex Capil, Group Manager Services and Assets Ian Marshall, Chief Financial Officer Anne Robson, Management Accountant Susan McNamara, Manager Communications and Governance Louise Pagan, Environment Heath Officer, Veena Lal-Boon and Committee Advisor Alyson Hamilton.





Activities Performance Audit Committee

18 November 2015



1          Apologies


There were no apologies received.


2          Leave of absence


There were no requests for leave of absence.


3          Conflict of Interest


            There were no conflicts of interest declared.


4          Public Forum


There were no members of the public seeking speaking rights in the Public Forum section of the meeting.


5          Extraordinary/Urgent Items

There were no Extraordinary/Urgent items.


6          Confirmation of Minutes



Moved Cr Paterson, seconded Cr Macpherson and resolved:

That the minutes of Activities Performance Audit Committee meeting7 , held on 28 October 2015 be confirmed as a true and correct record.


7          Reports



Food Act 2014

Record No:         R/15/10/18126


Environmental Health Officer, Veena Lal-Boon was in attendance for this item.


Mr Halligan introduced Mrs Lal-Boon to the Committee and outlined her role within Council.


Mrs Lal-Boon reported the purpose of the report is to inform the Committee of the upcoming Food Act 2014 changes and proceeded to present a Powerpoint presentation explaining the current food control system and highlighting the benefits of a quality management system.


Mrs Lal-Boon advised the new Food Act 2014 will come into effect on 1 March 2016.


The Committee was informed this Act categories food premises under a risk based measure for approvals. High risk food premises are those that prepare and sell meals or sell raw meat or seafood, will operate under a written Food Control Plan. Businesses that produce medium to low risk food like non-alcohol beverages will operate under a National Programme.



Mrs Lal-Boon explained this Act allows clear exemptions for kiwi traditions like fundraising sausages sizzles and baking at school fairs to take place.


Members queried what support are Restaurant owners to receive through this process.


In response Mrs Lal-Boon advised it is intended staff undertake a mentoring process with the business owner so the owner has a clear understanding of the Food Control Plan, to ensure processes conform with the Food Control Plan, good record keeping and improved confidence that their food is safe.


Councillor Keast queried whether Childcare Centres and Retirement Homes are to be targeted.


In response Mrs Lal-Boon advised that home-based Childcare Centres will be exempt. She added some centre based childcare are also exempt if there is only minimal food handling  where food is not prepared on-site, only handled (served) on site.


Mrs Lal-Boon advised centre based Childcare where food is prepared and served are likely to operate with a National Programme.


In regard to Retirement Homes Mrs Lal-Boon confirmed they are required to operate with a Food Control Plan.


In summarising Mrs Lal-Boon advised the transitional period commences 1 March 2016 and ends 1 March 2019 when the existing Food Act 1981 and Food Hygiene Regulations are revoked.




Moved Cr Ford, seconded Cr Dobson and resolved:

That the Activities Performance Audit Committee:

a)         Receives the report titled “Food Act 2014” dated 5 November 2015.



Financial Report for the period ended 30 September 2015

Record No:         R/15/10/19332


Management Accountant, Susan McNamara was in attendance for this item.


Financial Report for the period ended 30 September 2015, prepared by Ms Susan McNamara (Management Accountant), was tabled.


Ms McNamara informed the report outlined the financial results to 30 September 2015.


It was pointed out to the Committee 25% of the financial year is complete and that no issues have been identified that raise concerns for Council.


Ms McNamara then spoke on matters relating to the income, operating expenditure, capital expenditure, roading and transport, chief executive and balance sheet.


Ms McNamara reported roading and transport are forecasting that capital expenditure will be under budget at the end of the year.

Ms McNamara explained this variance is partly caused by a significant drop in the bitumen index over the last three months, along with the expectation that the Southern Scenic Route extension and Mararoa Bridge projects will be deferred to the 2016/2017 financial year.


Councillor Kremer queried the delay of Mararoa Bridge project.


Mr Marshall responded a business case has been presented to New Zealand Transport Agency (NZTA) and requires their approval prior to their allocation of funds toward this project. He added Council has yet to receive a response from NZTA.


In regard to term deposits Councillor Bailey noted Council currently has $6.0M invested in four term deposits ranging from three to six months maturities with interest rates varying at 3.3% to 4.05% per annum and queried if Council is limited to which banks it can invest at.


Mrs McNamara confirmed Council holds a list of approved New Zealand registered banks.


In regard to The Around the Mountains Cycle Trail projects held within the Chief Executive budget Councillor Baird expressed concern that the costings for this project are escalating and queried when the total costings are to be disclosed to the public.


In response Mayor Tong advised a report is being prepared by the Chief Executive on this matter which will be presented to the Committee in due course.


Councillor Bailey reiterated that until the final costings including the legal challenges are available then a report will be made available to the public.


Councillor Kremer sought confirmation from staff that until the monetary side is sorted no further work is to be undertaken.


In his response Mr Marshall advised that whilst work has ceased until the results of the Environmental Court are resolved there are contractual payments to be made.


Council Kremer requested an analysis on what payments are outstanding be made available to the Committee. It was agreed Finance Staff action this request.


At this point Councillor Baird raised the issue of a possible procedural issue that he has raised with the Chief Executive, however noting his absence at this meeting, that may have occurred at the Council 15 May 2013 meeting when Council moved into Public Excluded to discuss a report presented by staff concerning the Around the Mountain Cycle Trail project with the recommendation to proceed with and to guarantee $4million of ratepayers monies toward this project. He added this report was presented twelve days prior to hearing submissions to the Draft Annual Plan 2013/2014, which included this item.


Mr Halligan responded advising he was unaware of any procedural breeches with processes to date, however notes Councillor Baird’s comments about the overall costs and Councillor Kremer’s request for further information.

Both issues to be followed up by staff.


Councillor Baird sought a response from staff to clarify if a procedural issue has occurred.

Mr Halligan confirmed this matter will be investigated by staff and a response will be forthcoming to the Committee.




Moved Cr Dobson, seconded Cr Keast and resolved:

That the Activities Performance Audit Committee:

a)         Receives the report titled “Financial Report for the period ended 30 September 2015” dated 10 November 2015.




The meeting concluded 12 noon                   CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Activities Performance Audit Committee HELD ON 18 NOVEMBER 2015.