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Notice is hereby given that an Extraordinary Meeting of the Finance and Audit Committee will be held on:

 

Date:                      

Time:

Meeting Room:

Venue:

 

Wednesday, 19 July 2017

9am

Council Chamber
15 Forth Street
Invercargill

 

Extraordinary Finance and Audit Committee Agenda

 

OPEN

 

 

MEMBERSHIP

 

Chairperson

Ebel Kremer

 

 

Mayor Gary Tong

 

Councillors

John Douglas

 

 

Paul Duffy

 

 

 

 

 

IN ATTENDANCE

 

Committee Advisor

Fiona Dunlop

 

Chief Financial Officer

Anne Robson

 

 

 

 

Contact Telephone: 0800 732 732

Postal Address: PO Box 903, Invercargill 9840

Email: emailsdc@southlanddc.govt.nz

Website: www.southlanddc.govt.nz

 

Full agendas are available on Council’s Website

www.southlanddc.govt.nz

 

 

 


Terms of Reference – Finance and Audit Committee

 

The Finance and Audit Committee is responsible for:

·                 Ensuring that Council has appropriate financial, risk management and internal control systems in place that provide:

-      An overview of the financial performance of the organisation.

-      Effective management of potential opportunities and adverse effects.

-      Reasonable assurance as to the integrity and reliability of Council’s financial and non-financial reporting. 

·                 Exercising active oversight of information technology systems. 

·                 Exercising active oversight of “Council’s health and safety policies, processes, compliance, results and frameworks”

·                 Relationships with External, Internal Auditors, Banking Institutions and Insurance brokers.

 

The Finance and Audit Committee will monitor and assess the following:

·                 The financial and non-financial performance of Council against budgeted and forecasted outcomes

·                 Consideration of forecasted changes to financial outcomes

·                 Council’s compliance with legislative requirements

·                 Council’s risk management framework

·                 Council’s Control framework

·                 Council’s compliance with its treasury responsibilities.

 

The Finance and Audit Committee shall have the following delegated powers and be accountable to Council for the exercising of these powers and will operate within:

·                 policies, plans, standards or guidelines that have been established and approved by Council;

·                 the overall priorities of Council;

·                 the needs of the local communities; and

·                 the approved budgets for the activity.

 

The Finance and Audit Committee will have responsibility and delegated authority in the following areas:

 

Financial and Performance Monitoring

(a)          Monitoring financial performance to budgets;

(b)          Monitoring service level performance to key performance indicators.

 

Internal Control Framework

(a)          Reviewing whether Council’s approach to maintaining an effective internal control framework is sound and effective;

(b)          Reviewing whether Council has taken steps to embed a culture that is committed to probity and ethical behaviour;

(c)          Reviewing whether there are appropriate systems, processes and controls in place to prevent, detect and effectively investigate fraud.

 

Internal Reporting

(a)          To consider the processes for ensuring the completeness and quality of financial and operational information being provided to the Council;

(b)          To seek advice periodically from internal and external auditors regarding the completeness and quality of financial and operational information that is provided to the Council.

 

External Reporting and Accountability

(a)          Agreeing the appropriateness of the Council’s existing accounting policies and principles and any proposed change;

(b)          Enquiring of internal and external auditors for any information that affects the quality and clarity of the Council’s financial statements and statements of service performance, and assess whether appropriate action has been taken by management in response to the above;

(c)          Satisfying itself that the financial statements and statements of service performance are supported by appropriate management signoff on the statements and on the adequacy of the systems of internal control (ie, letters of representation), and recommend signing of the financial statements by the Chief Executive/Mayor and adoption of the Annual Report, Annual Plans, Long Term Plans;

 

Risk Management

(a)          Reviewing whether Council has in place a current, comprehensive and effective risk management framework and associated procedures for effective identification and management of the Council’s significant risks;

(b)            Considering whether appropriate action is being taken to mitigate Council’s significant risks.

 

Health and Safety

(a)          Review, monitor and make recommendations to Council on the organisations health and safety risk management framework and policies to ensure that the organisation has clearly set out its commitments to manage health and safety matters effectively.

(b)          Review and make recommendations for Council approval on strategies for achieving health and safety objectives.

(c)          Review and recommend for Council approval targets for health and safety performance and assess performance against those targets.

(d)          Monitor the organisation’s compliance with health and safety policies and relevant applicable law.

(e)          Ensure that the systems used to identify and manage health and safety risks are fit-for-purpose, being effectively implemented, regularly reviewed and continuously improved.  This includes ensuring that the Council is properly and regularly informed and updated on matters relating to health and safety risks.

(f)           Seek assurance that the organisation is effectively structured to manage health and safety risks, including having competent workers, adequate communication procedures and proper documentation.

(g)          Review health and safety related incidents and consider appropriate actions to minimise the risk of recurrence.

(h)          Make recommendation to the Council regarding the appropriateness of resources available for operating the health and safety management systems and programmes.

(i)            Any other duties and responsibilities which have been assigned to it from time to time by the Council.

 

Internal Audit

 

(a)          Approve appointment of the internal auditor, internal audit engagement letter and letter of understanding. 

(b)          Reviewing and approving the internal audit coverage and annual work plans, ensuring these plans are based on the Council’s risk profile;

(c)          Reviewing the adequacy of management’s implementation of internal audit recommendations;

 

(d)          Reviewing the internal audit charter to ensure appropriate organisational structures, authority, access, independence, resourcing and reporting arrangements are in place.

 


 

External Audit

(a)          Confirming the terms of the engagement, including the nature and scope of the audit, timetable and fees, with the external auditor at the start of each audit;

(b)          Receiving the external audit report(s) and review action(s) to be taken by management on significant issues and audit recommendations raised within;

(c)          Enquiring of management and the independent auditor about significant business, political, financial and control risks or exposure to such risks.

 

Compliance with Legislation, Standards and Best Practice Guidelines

(a)          Reviewing the effectiveness of the system for monitoring the Council’s compliance with laws (including governance legislation, regulations and associated government policies), with Council’s own standards, and Best Practice Guidelines as applicable.

(b)          Conducting and monitoring special investigations, in accordance with Council Policy, and reporting the findings to Council. 

(c)          Monitoring the performance of Council organisations, in accordance with the Local Government Act. 

 

Business Case Review

(a)     Review of the business case of work, services, supplies, where the value of these or the project exceeds $2million or the value over the term of the contract exceeds $2million.

 

Insurance

(a)          Consider Council’s insurance requirements, considering its risk profile

(b)          Approving the annual insurance renewal requirements

 

Treasury

(a)        Oversee the treasury function of Council ensuring compliance with the relevant Council policies and plans

(b)        Ensuring compliance with the requirements of Council’s trust deeds are met

(c)        Recommending to Council treasury policies.

 

 

The Finance and Audit Committee is responsible for considering and making recommendations to Council regarding:

(a)       Policies relating to risk management, rating, loans, funding and purchasing.

(b)       Accounting treatments, changes in generally accepted accounting practice, and new accounting and reporting requirements.

(c)       The approval of financial and non-financial performance statements including adoption of the Annual Report, Annual Plans and Long Term Plans.

 

The Finance and Audit Committee is responsible for considering and making recommendations to the Services and Assets Committee on business cases.

 


Extraordinary Finance and Audit Committee

19 July 2017

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TABLE OF CONTENTS

ITEM                                                                                                                                   PAGE

Procedural

1          Apologies                                                                                                                        7

2          Leave of absence                                                                                                           7

3          Conflict of Interest                                                                                                         7

4          Public Forum                                                                                                                  7

5          Extraordinary/Urgent Items                                                                                          7

  

Public Excluded

Procedural motion to exclude the public                                                                              17

C6.1    Southland District Council Resurfacing Programme                                             17  

 


1          Apologies

 

At the close of the agenda no apologies had been received.

 

2          Leave of absence

 

At the close of the agenda no requests for leave of absence had been received.

 

3          Conflict of Interest

 

Committee Members are reminded of the need to be vigilant to stand aside from decision-making when a conflict arises between their role as a member and any private or other external interest they might have.

 

4          Public Forum

Notification to speak is required by 5pm at least two days before the meeting. Further information is available on www.southlanddc.govt.nz or phoning 0800 732 732.

 

5          Extraordinary/Urgent Items

To consider, and if thought fit, to pass a resolution to permit the committee to consider any further items which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded.

Such resolution is required to be made pursuant to Section 46A(7) of the Local Government Official Information and Meetings Act 1987, and the Chairperson must advise:

(i)         the reason why the item was not on the Agenda, and

(ii)        the reason why the discussion of this item cannot be delayed until a subsequent meeting.

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“Where an item is not on the agenda for a meeting,-

(a)       that item may be discussed at that meeting if-

(i)         that item is a minor matter relating to the general business of the local authority; and

(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

(b)       no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

 

6          Confirmation of Minutes

There are  no minutes to confirm.

 


Extraordinary Finance and Audit Committee

19 July 2017

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Exclusion of the Public: Local Government Official Information and Meetings Act 1987

 

Recommendation

 

That the public be excluded from the following part(s) of the proceedings of this meeting.

C6.1  Southland District Council Resurfacing Programme

The general subject 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(1) 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(1) for the passing of this resolution

Southland District Council Resurfacing Programme

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

That the public conduct of the whole or 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 exists.