Finance and Audit Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Finance and Audit Committee held in the Council Chambers, 15 Forth Street, Invercargill on Monday, 26 March 2018 at 9am.

 

present

 

Chairperson

Ebel Kremer

 

 

Mayor Gary Tong

 

Councillors

John Douglas

 

 

Paul Duffy

 

 

Bruce Robertson

 

 

IN ATTENDANCE

Councillor Keast

Chief Executive Officer – Steve Ruru

Chief Financial Officer - Anne Robson

Group Manager, Environmental Services – Bruce Halligan

People and Capability Manager – Janet Ellis

Senior Projects Manager – Ian Marshall

Communications Manager – Louise Pagan

Committee Advisor - Fiona Dunlop

 

 


Finance and Audit Committee

26 March 2018

 

1             Apologies

 

There were no apologies.

 

 

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 was no public forum.

 

 

5             Extraordinary/Urgent Items

 

There were no Extraordinary/Urgent items.

 

 

6             Confirmation of Minutes

 

Resolution

Moved Cr Duffy, seconded Cr Douglas and resolved:

That the Finance and Audit Committee confirms the minutes of the meeting held on 11 December 2017 as a true and correct record of that meeting.

 

Reports for Recommendation

 

 

7.1

Risk Management Framework Project Development

Record No: R/18/2/4483

 

Chief Executive – Steve Ruru was in attendance for this item.

 

 

Resolution

Moved Chairperson Kremer, seconded Mayor Tong and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Risk Management Framework Project Development” dated 9 March 2018.

 

b)           Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

 

c)            Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

 

d)           Endorse the approach to engage Structured Conversations Ltd on a preferred supplier basis to undertake the Risk Management Framework project.

 

e)            Recommends to Council to support the approach to engage Structured Conversations Ltd on a preferred supplier basis to undertake the Risk Management Framework project.

 

f)             Recommends to Council a request for approval for unbudgeted expenditure of up to $60,000 exclusive of GST to be split evenly over the two financial years of 2017-2018 and 2018-2019 and to be sourced from the Council District Operations Reserve to undertake the Southland District Council Risk Management Framework project.

 

 

7.2

Annual Report Audit Plan for year ending 30 June 2018

Record No: R/18/3/5772

 

Chief Financial Officer – Anne Robson was in attendance for this item.

 

Audit New Zealand Audit Director – Ian Lothian was also in attendance for this item.

 

 

Resolution

Moved External Member Robertson, seconded Cr Douglas and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Annual Report Audit Plan for year ending 30 June 2018” dated 19 March 2018.

 

b)           Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

 

c)            Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

 

d)           Accepts the audit plan as set out attachment A of the officer’s report.

 

 

7.3

Health and Safety

Record No: R/18/2/4223

 

People and Capability Manager – Janet Ellis was in attendance for this item.

 

 

Resolution

Moved Chairperson Kremer, seconded Cr Duffy and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Health and Safety” dated 14 March 2018.

 

b)           Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

 

c)            Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

 

d)           Endorses the work that is being undertaken in Health and Safety within Council.

 

e)            Recommends to Council that there is a continued focus on Health and Safety and the implementation of the Health and Safety Plan including training and focus on critical risks.

 

 

Reports

 

 

8.1

Health and Safety Update

Record No: R/18/2/4221

 

People and Capability Manager – Janet Ellis was in attendance for this item.

 

 

Resolution

Moved Mayor Tong, seconded Cr Douglas and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Health and Safety Update” dated 2 March 2018.

 


 

 

8.2

Digitisation Project

Record No: R/18/2/2526

 

Chief Information Officer – Damon Campbell and Team Leader Knowledge Management – Gillian Cavanagh were in attendance for this item.

 

 

Resolution

Moved Cr Douglas, seconded External Member Robertson and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Digitisation Project” dated 19 March 2018.

 

 

8.3

Financial Report for the month ended 31 January 2018

Record No: R/18/2/4137

 

Project Accountant – Dipal Patel was in attendance for this item.

 

 

Resolution

Moved Chairperson Kremer, seconded Mayor Tong and resolved:

That the Finance and Audit Committee:

a)         Receives the report titled “Financial Report for the month ended 31 January 2018” dated 19 March 2018.

 

 

8.4

Forecasted Financial Position for the year ending 30 June 2018

Record No: R/18/3/5114

 

Graduate Accountant – Kate Westenra was in attendance for this item.

 

 

Resolution

Moved Chairperson Kremer, seconded Cr Duffy recommendations a to f and g with an addition (as indicated) and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Forecasted Financial Position for the year ending 30 June 2018” dated 19 March 2018.

 

b)           Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

 

c)            Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

 

d)           Notes the forecasted changes to Council’s year-end financial performance and position as detailed in attachments B and C of the officer’s report.

 

e)            Recommends Council approve the changes as detailed in attachment A of the officer’s report

 

f)             Recommends to Council that it include in the 2018-2028 Long Term Plan the projects indicated to be deferred from the current year as detailed in attachment D of the officer’s report

 

g)           Recommends Council approve the following unbudgeted expenditure for the 2017/18 financial year:

 

Business Unit

Expense

Amount

Funding Source

Customer Service

Acquisition of ex roading vehicle

$15,000

Loan

Financial Services

Increases in valuation contract and legal fees

$77,500

District Op Reserve

People and Capability

Uniform re-branding

$24,196

Corporate Uniform reserve

People and Capability

Increased recruitment costs

$58,425

District Op reserve

Community Leadership

Training and associated costs

$20,000

District Op Reserve

Community Leadership

Stewart Island/Rakiura Economic Study

$40,000

Grant

Community Leadership

Purchasing two vehicles instead of leasing.

$62,592

Loan

Chief Executive

Increased operational costs

$133,504

District Ops reserve

Operations & Community Service

1 early replacement , 1 vehicle purchased instead of leased and 1 additional team leader vehicle

$95,041

Loan & Reserve

Communications and Engagement

Increased operational costs

$20,000

District Ops reserve

Building Regulation

Increased operational costs

$35,023

District Ops reserve & unused budget

Building Regulation

Purchasing two vehicles instead of leasing.

$72,258

Loan

Resource Planning/Policy

Increased district plan costs

$30,000

District Ops reserve

Venture Southland - Grant

Budgeting error, Te Anau Destination Fiordland contribution

$13,601

District Ops reserve

Buildings - Invercargill Office

Office refurbishments

$13,337

Property Development reserve

Roading - Administration

One early replacement vehicle

$45,204

Depreciation Motor Vehicle reserve

Roading - Special Purpose

Sealing of lower Hollyford Road

$286,620

100% NZTA

Hall - Colac Bay

Urgent repairs to building.

$11,600

Colac Bay Com Centre reserve & unused budgets

SS Riversdale - Sludge Removal

Increase in sludge removal costs

$84,014

Loan

Stormwater Drainage - Winton

Clyde/Eglington St SW Repairs

$18,488

Winton General reserve

SIESA - Operations

Increased operational costs

$103,489

SIESA Operations reserve

SIESA - Waste Recovery

Increased operational costs

$18,000

SIESA Operations reserve

Water Services

Potential cost allowance for Havelock North drinking water implications

$100,000

District Water Reserve

Water, Wastewater and Stormwater

Potential cost allowance for Water and Land plan appeals

$100,000

District Water & Wastewater Reserves and Local reserves

Tuatapere Community Board

Purchase of railway irons, sleepers and other materials

$9565

Tuatapere General Reserve

 

 

8.5

Audit NZ report of Council's LTP Consultation Document for the period 1 July 2018 to 30 June 2028

Record No: R/18/3/5297

 

Project Manager, Corporate Planning – Nicole Taylor was in attendance for this item.

 

Audit New Zealand Audit Director – Ian Lothian was also in attendance for this item.

 

 

Resolution

Moved Mayor Tong, seconded Chairperson Kremer and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Audit NZ report of Council's LTP Consultation Document for the period 1 July 2018 to 30 June 2028” dated 19 March 2018.

 

The Meeting adjourned for morning tea at 10.32am and reconvened at 10.49am.

 

Mayor Tong, Councillors Kremer, Douglas, Duffy, external member Robertson and Councillor Keast were in attendance for this item.

 

8.6

Outstanding Debt as at 31 January 2018

Record No: R/18/2/3595

 

Finance Officer, Credit Controller – Shirley Carruthers was in attendance for this item.

 

 

Resolution

Moved Chairperson Kremer, seconded Cr Douglas and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Outstanding Debt as at 31 January 2018” dated 19 March 2018.

 

Public Excluded

 

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

Resolution

Moved Chairperson Kremer, seconded Cr Duffy and resolved:

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

C9.1 Corporate Performance Report for period two - 1 November 2017 to 28 February 2018

C9.2 Quarterly Risk Register Update - March 2018

C9.3 Review of Animal Control Processes

C9.4 Insurance options for Underground Infrastructure

 

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

 

Corporate Performance Report for period two - 1 November 2017 to 28 February 2018

s7(2)(c)(i) - The withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied.

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

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.

 

Quarterly Risk Register Update - March 2018

s7(2)(e) - The withholding of the information is necessary to avoid prejudice to measures that prevent or mitigate material loss to members of the public.

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.

 

Review of Animal Control Processes

s7(2)(c)(i) - The withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied.

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.

 

Insurance options for Underground Infrastructure

s7(2)(e) - The withholding of the information is necessary to avoid prejudice to measures that prevent or mitigate material loss to members of the public.

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.

 

That the Chief Executive Officer, Group Manager, Environmental Services, Chief Financial Officer, Senior Projects Manager, People and Capability Manager, Communications Manager and Committee Advisor be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the items C9.1 Corporate Performance Report for period two - 1 November 2017 to 28 February 2018, C9.2 Quarterly Risk Register Update - March 2018, C9.3 Review of Animal Control Processes and C9.4 Insurance options for Underground Infrastructure.  This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to those matters because of their knowledge on the issues discussed and meeting procedure.

 

That the Planning and Reporting Analyst and Audit NZ Audit Director – Ian Lothian be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the items C9.1 Corporate Performance Report for period two - 1 November 2017 to 28 February 2018 and C9.2 Quarterly Risk Register Update - March 2018.  This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to those matters because of their knowledge on the issues discussed.

 

That the Environmental Health Manager be permitted to remain at this meeting, after the public has been excluded, because of his knowledge of the item C9.3 Review of Animal Control Processes.  This knowledge, which will be of assistance in relation to the matter to be discussed, is relevant to that matter because of his knowledge on the issues discussed.

 

That Shaun Sellwood – Broker Manager with JLT be permitted to remain at this meeting, after the public has been excluded, because of his knowledge of the item C9.4 Insurance options for Underground Infrastructure.  This knowledge, which will be of assistance in relation to the matter to be discussed, is relevant to that matter because of his knowledge on the issue discussed.

 

 

The public were excluded at 10.58am.

 

Resolutions in relation to the confidential items are recorded in the confidential section of these minutes and are not publicly available unless released here.

 

 

The meeting concluded at 12.28pm.                   CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Finance and Audit Committee HELD ON MONDAY 26 MARCH 2018.

 

 

 

DATE:............................................................................................

 

 

 

CHAIRPERSON:........................................................................