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

 

Date:

Time:

Meeting Room:

Venue:

 

Monday, 24 September 2018

9am

Council Chamber
15 Forth Street
Invercargill

 

Finance and Audit Committee Agenda

OPEN

 

 

MEMBERSHIP

 

Chairperson

Ebel Kremer

 

 

Mayor Gary Tong

 

Councillors

John Douglas

 

 

Paul Duffy

 

 

Bruce Robertson (External Member)

 

 

IN ATTENDANCE

 

Chief Financial Officer

Anne Robson

Committee Advisor

Fiona Dunlop

 

 

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.

 


Finance and Audit Committee

24 September 2018

 

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

6             Confirmation of Minutes                                                                                                                               7

Reports

7.1         Health and Safety Update                                                                                                                           15

7.2         Public View Implementation                                                                                                                     47

7.3         Draft Assumptions and Accounting Policies for the 2019/2020 Annual Plan              53

7.4         Finance and Audit Committee work plan up to 30 June 2019                                               71

7.5         Analysis of Actual results to Forecast for the year ended 30 June 2018                        75

7.6         Overall Programme of Projects for 2018/2019 including the Projects Proposed to be Carried Forward from 2017/2018                                                                                                         105

7.7         Draft unaudited Annual Report 2017/2018                                                                                   119

7.8         Final Management Report from Audit New Zealand for the year ended 30 June 2018                                                                                                                                                                                  295

Public Excluded

Procedural motion to exclude the public                                                                                                       305

C8.1      Quarterly risk register update - September 2018                                                                      306  

 


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

6.1             Meeting minutes of Finance and Audit Committee, 30 August 2018


 

Finance and Audit Committee

 

OPEN MINUTES

 

 

Minutes of a meeting of Finance and Audit Committee held in the Council Chamber, 15 Forth Street, Invercargill on Thursday, 30 August 2018 at 9am.

 

present

 

Chairperson

Ebel Kremer

 

 

Mayor Gary Tong

 

Councillors

John Douglas

 

 

Paul Duffy

 

 

Bruce Robertson (External Member)

 

 

IN ATTENDANCE

 

 

Councillor Keast

Chief Executive

Steve Ruru

Chief Financial Officer

Anne Robson

Group Manager – Community and Futures

Rex Capil

Group Manager – Environmental Services

Bruce Halligan

Group Manager, Services and Assets

Matt Russell

Communications Manager

Louise Pagan

Committee Advisor

Alyson Hamilton

 

 


                Adjournment of Meeting

 

Moved Chairperson Kremer, seconded Cr Duffy and resolved:

That the Finance and Audit Committee meeting adjourne until the conclusion of the Extraordinary Council meeting.

 

The meeting adjourned at 9.05am

 

The meeting reconvened 9.38am

 

All members were present when the meeting reconvened.

 

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 Mayor Tong, seconded Cr Douglas  and resolved:

That the Finance and Audit Committee confirms the minutes of meeting, held on 14 June 2018 as a true and correct record of that meeting.

 

Reports for Recommendation

 

 

 

7.2

Draft unaudited annual report 2017/2018

Record No: R/18/8/19466

 

Planning and Reporting Analyst, Shannon Oliver, Financial Accountant, Jacobus Meyer, Management Accountant, Susan McNamara were in attendance for this item.

 

Ms Oliver advised the purpose of the report is to enable the Finance and Audit Committee to consider the draft unaudited Annual Report for the year ended 30 June 2018 and confirm it is appropriate for release to Audit NZ.

 

 

 

Resolution

Moved Cr Douglas, seconded Cr Duffy  and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Draft unaudited annual report 2017/2018” dated 27 August 2018.

 

b)           Determines that this matter or decision be recognised as 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)           Confirms the draft unaudited Annual Report for the year ended 30 June 2018, is suitable for release to Audit NZ, subject to any amendments agreed at this meeting.

e)            Delegates authority to the Chief Executive to approve any further amendments to the draft unaudited Annual Report for the year ended 30 June 2018 subsequent to this meeting, and prior to final review by the Committee at its meeting on 24 September 2018.

 

7.1

Management and Construction of Accessways

Record No: R/18/6/12582

 

Strategic Manager, Transport, Hartley Hare was in attendance for this item.

 

Mr Hare advised the meeting that the report is to be withdrawn pending legal advice and that a further report is to be provided to this committee at a later date.

 

 

 

 

 

 

8.1

Draft Annual Plan timetable

Record No: R/18/8/19212

 

Planning and Reporting Analyst, Shannon Oliver in attendance for this item.

 

 

Resolution

Moved External Member Robertson, seconded Mayor Tong  and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Draft Annual Plan timetable ” dated 22 August 2018.

 

 

8.2

Report on the Audit of the Long Term Plan (LTP) 2018-2028

Record No: R/18/6/12929

 

Management Accountant, Susan McNamara 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 “Report on the Audit of the Long Term Plan (LTP) 2018-2028” dated 27 August 2018.

 

 

8.3

Finance and Audit Committee work plan up to 30 June 2019

Record No: R/18/7/17489

 

Chief Financial Officer, Anne Robson 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 “Finance and Audit Committee work plan up to 30 June 2019” dated 27 August 2018.

 

Public Excluded

 

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

Resolution

Moved Chairperson Kremer, seconded External Member Robertson  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 31 March to 30 June 2018

C9.2 WasteNet Southland Contract 550 - Right of Extension

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 3 - 1 March to 30 June 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.

WasteNet Southland Contract 550 - Right of Extension

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.

 

That the Chief Executive, Group Manager, Environmental Services, Group Manager, Services and Assets, Group Manager, Community and Futures, Chief Financial Officer, Chief Information Officer, Committee Advisor and Management Accountant and Communications Manager 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 3 - 1 March to 30 June 2018 and C9.2 WasteNet Southland Contract 550 - Right of Extension. 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 be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the item C9.1 Corporate Performance Report for period 3 - 1 March to 30 June 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 and meeting procedure.

 

That the Strategic Manager Water and Waste be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the item C9.2 WasteNet Southland Contract 550 - Right of Extension. 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.

 

The public were excluded at 10.25am.

 

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 11.03am                     CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Finance and Audit Committee HELD ON THURSDAY 30 AUGUST 2018.

 

 

 

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

 

 

 

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

 


Finance and Audit Committee

24 September 2018

 

Health and Safety Update

Record No:             R/18/9/21347

Author:                      Janet Ellis, People and Capability Manager

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To provide an update on health and safety related incidents and activity over the last quarter.

Content

Incidents/Near Misses – Southland District Council

2        As part of the Health and Safety Plan for 2018/2019 we are ensuring that we have consistency of reporting on both lead and lag indicators. 

3        Lagging indicators are typically “output” oriented, easy to measure but hard to improve or influence while leading indicators are typically input oriented, hard to measure and easy to influence.

4        Lead indicators include Near Misses, Audits and Inspections and progress to the Health and Safety Plan.  Lag indicators include Medical Treatment Interventions (MTI), Incidents, Lost time due to injury, Worksafe notifications and Number of Incident Investigations completed.

5        Please find below a summary of these indicators for the year from 1 March 2018 to 31 August 2018.  Please note at this stage we do not record the number of Audits and inspections carried out.  This will change for the next report.

 

Key Performance Indicator

1 May – 31 August 2018

1 January – 31 April 2018

Total

Worksafe Notifications

0

0

0

Medical Treatment Injury (MTI) as reported to ACC

0

3

3

Incidents

20

14

34

Lost time due to injury

0

1

1

Near misses

8

7

15

Investigations completed

17

8

25

 

Other Health and Safety Related initiatives

6        In August 2018 Council approved the Health and Safety plan for 2018/19.

7        Teri Black has been appointed to the new role of Health and Safety and Wellbeing Advisor.  This new role will provide more dedicated resources to this area and will ensure it continues to make it a priority.  Teri has been working on drafting an implementation plan based on the Health and Safety Plan 2018/19 and the priorities set from the Health and Safety Control plan work.  This plan will be finalised and presented at the next Finance and Audit Committee meeting.

8        Along with safety audits for contractors, we have increased safety observations to ensure contractors are following their Health and Safety Plans and Policies provided to Council upon undertaking the approved contractor application process.

9        Safety assessment and audit follow ups are also underway, for example the Rakiura Resource Recovery Centre and Lumsden TIF Project, with very satisfactory results.  Corrective actions identified in these are recorded in a master worksheet to ensure follow up is completed and progress documented.

10      Health and Safety training continues with staff completing the Health and Safety e-learning modules based on the health and safety procedures. 

11      In August 2018 Council ran an additional Healthy Thinking workshop for a number of our staff including a number from Venture Southland.  This workshop is designed to help the participants to learn the tools of healthy thinking and to learn simple tools and techniques to control unhealthy emotions such as stress, frustration and anxiety.

12      Ongoing progress has been made on the Health and Safety Control plans with key priorities identified.  The key priorities include GPS monitoring for vehicles, education and defensive driver training, a fatigue management policy, health and safety procurement requirements for contractors, a framework developed for audits and on-site observations, training for people working alone and a review of our processes for dealing with angry customers.

13      Terry Johnston from Simpson Grierson completed a workshop with the Executive Leadership Team in August 2018.  The workshop covered a legal update, a review of the journey we have been and what the path forward may look like for Council.  A copy of the PowerPoint slides are attached for information.

14      In February 2019 we will undertake a gap analysis as identified in our Health and Safety plan.  We have been exploring Safe Plus, a joint initiative developed by Worksafe, ACC and MBIE as a health and safety performance and improvement tool. This looks like a great program and will provide savings for Council compared to the cost of the previous Gap Analysis, while still providing the required level of assessment and recommendations to ensure we continue to improve.

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Health and Safety Update” dated 18 September 2018.

 

Attachments

a             Health and Safety Workshop - Presented by Terry Johnston of Simpson Grierson    

 


Finance and Audit Committee

24 September 2018

 

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Finance and Audit Committee

24 September 2018

 

Public View Implementation

Record No:             R/18/8/19570

Author:                      Gillian Cavanagh, Team Leader - Knowledge Management

Approved by:         Trudie Hurst, Group Manager Customer Support

 

  Decision                                        Recommendation                                  Information

 

 

 

Background

1        Section 216 of the Building Act 2004 requires territorial authorities to keep reasonably available to the public information relating to the application and issue of building consents.  Section 217 provides the public with the right to access this information.  

2        In February 2018 the Property File Digitisation project was completed with all information now available in Council’s Electronic Document and Records Management System (Records Manager). 

3        Ongoing access to property files by the public has been via an e-mail link to the information in ShareFile.  On average we process 32 property file requests per week taking 15 to 20 hours per week to complete.

4        Provision of ongoing access to property files by the public will be via Public View software at Kiosks in Council offices and on Council’s website.

5        Public View provides an interface allowing users to view records directly from Records Manager (Councils Electronic Documents and Records Management System) by utilising the existing security to ensure only records with the security level of “available for public view” are accessible.

6        Public View has been successfully implemented for viewing of property and building information as well as other “public information” by Hutt City Council.

7        In 2016 the Office of Privacy Commissioner released a Report and Recommendations regarding the proactive release of property and building information online.

8        “Legally compliant online property and building information records must:

·    include a process for informing individuals how personal information is protected, used and stored. This requirement is necessary at the point of collection for personal information from individuals so that individuals are aware that their personal information will be made available online;

·    provide for the suppression from publication of information about victims of domestic violence; and

·    ensure that technological safeguards are appropriate for the sensitivity of the information in the record system.” (Privacy and Online Property Information Report 2016 – Privacy Commissioner)

9        The guidance provides a series a 13 recommendations expected of a privacy-enhancing online property and building information system.

Council’s Approach

10      The proactive release of property and building information online makes it easy for the public to access and view the information. The majority of users requesting access to property information are real estate agents, builders and other trades, owners and potential buyers. While these are genuine users of property information Council must consider and protect individual’s personal information against the potential for users accessing it for reasons that are not genuine.

11      Under Section 108 of the Domestic Violence Act 1995 Council must also provide a protected person with the ability to apply for a direction that identifying information on a public register not be publically available. 

12      Council has taken into consideration the following aspects:

·    What information will be released?

·    Records Manager system design

·    Privacy Impact Assessment

·    Privacy Commissioners Recommendations

What information will be released?

13      We have considered what information to make available and limited this initially to building permits, building consents and resource consent decisions.  Other information including hazard and heritage information may be made available in future. 

14      Building permits, building consents and resource consent decisions include personal information, specifically individual’s names and contact details.

Records Manager System design

15      The property classification has been structured around activities: building, environmental, legal and restricted, health licensing and utilities. Only the building and environmental activities have containers that are available for public view.

16      The property, activities and associated containers all have default security attached on creation and records automatically pick up the security of the container it is linked to.

17      Access to add contents to public view containers is limited to specific staff to minimise the potential of accidental release of information. Staff add records to a temporary container associated with the property and Knowledge Management staff assess the records and move them to the appropriate container.

Privacy Impact Assessment (PIA)

18      Council has completed a Privacy Impact Assessment of the project utilising the Privacy Impact Assessment Toolkit from the Privacy Commissioners website.  

19      The purpose of a PIA is to identify personal information associated with a project; identify and assess any risks associated with that information and make decisions regarding how those risks will be managed.

20      The PIA includes a Brief Privacy Analysis, Potential Risks and Mitigation Table and the Privacy Impact Assessment Report.

 

 

 

Privacy Commissioners Recommendations

21      Council’s approach with regards to the Privacy Commissioners recommendations is:

Recommendation

Council’s Approach

Prevents bulk-downloads of information contained within the property and building records

Public View does not allow bulk download of documents. Each document must to be individually opened and downloaded

Include a privacy statement which describes how information is protected, used and stored

Council’s website will include a Privacy Statement as per Section 2.4 of the New Zealand Government Web Usability Standard. Terms and Conditions will be included in Public View that the user must accept before completing a property search

Allows sensitive information to be withheld

Only publically available information will be available via Public View. Sensitive information is not linked to public containers and information placed in public containers is monitored.

Complies with section 2.4 of the New Zealand Government Web Usability Standard

Section 2.4 sets out the requirements for a website Privacy Statement.

2.4 Privacy

2.4.1 The Website must link to a privacy statement (‘Privacy Statement’).
2.4.2 The Privacy Statement 
must clearly indicate:

·      the scope of the statement and that it applies to the Website (e.g. ‘This privacy notice applies to personal information collected on ministry.govt.nz and agency.govt.nz.’)

·      the circumstances in which personal information is collected, by whom it is held (e.g. the responsible organisation and/or third parties) and any choices users have as to whether such information is collected in the first place

·      the uses to which collected personal information may be put by the collecting organisation and the circumstances in which it may be disclosed

·      the collection and use of statistical information, including users’ IP addresses

·      a statement that cookies are used, if that is the case, and a brief description of their purpose

·      users’ rights to request access to or to correct personal information held by the collecting organisation, and

·      contact details for such purposes.

2.4.3 A link to the Privacy Statement must be visible on the Website’s home page, and the link’s text must unambiguously indicate its target as being the Website’s Privacy Statement.

Prevents information being re-used for another purpose

Within Council information collected for one purpose is not re-used for another purpose.  Council cannot be responsible for how a user may re-use information from Public View.  Personal information is embedded in individual documents and would require significant rework for that information to re-used.

Ensures that technological safeguards are appropriate to the:

Sensitivity of the personal information (e.g. higher level of protection information such as complaints)

Amounts and types of information held; and

Manner and extent of distribution or transmission

Public Viewer accesses the information directly from Records Manager.  The Records Manager security model is robust and prevents inappropriate access. Audit events show the date, time and user details for viewing of documents including those viewed by Public View.

Gives people the option of opting-out of online publication of their personal information, where appropriate

Users are informed they can opt out of online publication of their personal information in the Public View Terms and Conditions.  This includes a link to the appropriate website page to complete an opt out form.

Make it clear to residents that their property and building information will be published online and lets them know that they can opt out of online publication

Council’s applications forms will be updated to include information about the collection, use and public availability of personal information.

Makes it clear to people when confidential information can be made available e.g. for law enforcement purposes

Statements to this effect will be included in the website Privacy Statement.

Does not include the name and contact details of informants or complainants

All information relating to complaints are linked to containers not accessible via Public View.

Informs submitters for resource management processes that this information will be made publically available due to legal requirements under the Resource Management Act 1991

Submissions forms will be updated to include a statement making submitters aware of this.

Clearly flags historical information

The recommendations provides no guidance as to what is meant by historical information.  Building permits issued under previous legislation are clearly defined from building consents issued under existing legislation.

Allows councils to audit file use and block inappropriate use

Pubic View use can be audited utilising Records Manager audit events. All events are date and time stamped to show when the document was accessed.

Public View does not required user sign in; it is therefore not possible to block access to individual users.

Next Steps

22      Staff are working on a number of tasks including Privacy Statements for the website and application forms; finalising configuration of the Public View; the creation of opt out processes to allow the public to request their personal information is not available online; and a communications campaign to inform the public that property and building information will be available online.

23      Public View will be available to staff to use internally from 1 October 2018.  Customer Support and Library staff will have the opportunity to see and use Public View at Customer Support training days in October.

24      Public View will go live at Kiosks in offices and on Council’s website on 1 November 2018.

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Public View Implementation” dated 6 September 2018.

 

 

 

Attachments

There are no attachments for this report. 

 


Finance and Audit Committee

24 September 2018

 

Draft Assumptions and Accounting Policies for the 2019/2020 Annual Plan

Record No:             R/18/9/21327

Author:                      Jacobus Meyer, Financial Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To consider the draft assumptions and accounting policies to be used to compile the 2019/2020 Annual Plan, which will be adopted in June 2019.

Executive Summary

2        In preparing the financial forecasts for the 2019/2020 Annual Plan (AP), Council staff are required to make a number of assumptions.  For the 2019/2020 AP, Council staff are recommending the assumptions be held consistent with the 2018-28 Long Term Plan (LTP) assumptions which were set in October 2017. 

3        The accounting policies (Attachment A) set the basis on which the 2019/2020 Annual Plan is prepared and the financial information compiled.  The only change in accounting policy from the 2017/2018 Annual Report is the change to equity accounting for joint venture interests, which previously have been proportionately consolidated.  The accounting policy for joint ventures and all other policies, are consistent with the 2018-2028 LTP.

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Draft Assumptions and Accounting Policies for the 2019/2020 Annual Plan” dated 19 September 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 following forecasting assumptions, with any amendments from this meeting for use in the 2019/2020 Annual Plan, including:

 

-      the budgeted interest rate on internal loans will be 4.65% per annum and external borrowings will be 3.65% per annum

-      the budgeted interest rate on reserves will be 3.29% per annum, noting that the  actual rate paid may differ depending on the funds available to pay as interest

 

e)            Endorses the accounting policies as detailed in Attachment A, with any amendments from this meeting for use in the 2019/2020 Annual Plan.

 

 

Background

4        All councils are required by legislation to adopt an Annual Plan (AP). The AP sets out Council’s activities, plans, budgets and policies and must be adopted before the beginning of the year to which it relates.

5        The AP document itself covers a single year, being 1 July 2019 to 30 June 2020, which is Year 2 of the 2018-2028 Long Term Plan (LTP).  It is necessary for a review of the LTP assumptions to be undertaken and updated where necessary to take into account any known significant changes since the LTP.

Issues

6        Staff are preparing the Annual Plan using year 2 of the LTP as the base financial data, which incorporates a level of inflation.

Assumptions

7        The assumptions for the 2019/2020 AP will be based on those established for the 2018-2028 LTP.  In determining this approach, the following significant assumptions were re-considered:  

Interest Rate on Internal Loans

8        As part of the LTP, Council set the methodology for the calculation of the interest rates for internal and external borrowings.  This internal loan interest rate was calculated based on the rate Council is able to borrow funds at, plus a margin of 1%. The external interest rate was based on the rate Council is able to borrow funds.

9        Based on this methodology, the interest rate on internal loans and external borrowings was calculated at 4.65% and 3.65% respectively.  These rates were applied to all years of the 2018-2028 LTP.  This is down from 5.15% per annum for both internal and external borrowings in the 2017/2018 Annual Plan and Annual Report.

10      External borrowings are forecast to be required during the 2019/2020 year of $7.8 million. 

11      The risk associated with this assumption is that if the actual interest rate on external borrowings increases, or the amount of external borrowings required increases, Council will need to find additional funds to meet the interest payments and any shortfall in operational costs, and conversely if the interest rate decreases, or less external borrowing is required, there will be surplus funds available. 

12      Council typically cannot control the level of internal borrowings required, as this is driven by the capital works undertaken, however there is a level of control over the interest rate applied.  Historically Council have retained the budgeted interest rate and applied it to actual loans to mitigate the implications of fluctuations in the interest rate.  Council staff are recommending this approach be retained for the 2019/2020 Annual Plan.

13      The risk associated with fluctuations in the level of borrowings is minimal, as this is internally generated and is used to fund interest payments on Council’s reserves (see further discussion below). 

Interest Rate on Reserves

14      Staff are recommending that the budgeted interest rate on reserves remain at 3.29%, consistent with years 1-10 of the 2018-2028 LTP.

15      This rate was calculated in September 2017 based on the preceding 12 months average six month term deposit rate published by the Reserve Bank of New Zealand (RBNZ). Review of the latest 12 months data from RBNZ shows an average of 3.28%, therefore the LTP assumption continues to be reflective of current market rates.

Interest rate differential

16      As noted above, Council has both internal loans and internal reserves that it receives and pays interest on.  For the current year (2018/2019), interest is being charged on internal loans at 4.65% per annum and paid on reserves at 3.29% per annum.  This is consistent with what was forecast in the 2018-2028 LTP.  The differential between these two interest rates is used by Council to reduce rates (through the District General Rate). 

17      The risk associated with this approach is that if the interest rate on internal borrowings increases (although Council does not typically do this), or the level of internal borrowings decreases, this will make the differential smaller than forecast and as a result Council will need to find additional funds to pay the interest on reserves, or the rate of interest paid on reserves will decrease. Conversely if the interest rate decreases, or less internal borrowing is required, there will be additional funds available.

18      Accordingly the other risk associated with this assumption is that if the interest rate on reserves increases, or the level of reserves increases, this will make the differential smaller than forecast and as a result Council will need to find additional funds to pay the interest on reserves, or the rate of interest paid on reserves will decrease. Conversely if the interest rate decreases, or less reserves exist, there will be additional funds available.

19      In order to mitigate the risk of fluctuations in internal interest rates, Council have historically charged the internal interest rate on internal borrowings as budgeted, however the interest paid on reserves has been adjusted to reflect the actual funds available (incorporating any external interest received on other investments etc also).  Council typically endeavours to ensure the rates are reflective of market rates to provide a fair return to communities.  

20      The following schedule illustrates the volatility of the interest differential for the 2017/2018
Annual Plan, 2017/2018 Annual Report and also the 2018-2028 LTP at the current and proposed interest rates.

21      You will note that the interest rate on internal loans for the 2017/2018 Annual Plan and 2017/2018 Annual Report is consistent, however the interest rate on reserves is lower in the Annual Report.  This is due to both the value of the reserves increasing from what was forecast as well as the market interest rates returning lower than 4.19%.

 

 

Accounting Policies

22      In arriving at the accounting policies proposed, Council staff have reviewed the policies used by Council in preparation of the 2018-2028 LTP and 2017/2018 Annual Report and checked for any changes needed, including any additional policies needed around the preparation of forecasted information.  The accounting policies recommended are consistent with these two documents other than a change to accounting for joint venture interests.

23      During the 2016/2017 Annual Report audit, Audit New Zealand suggested that the method of accounting for joint ventures in the financial statements be changed to equity accounting.  This was recommended due to a in the accounting standard.  As part of the 2018-2028 LTP, staff recommended and Council approved a change to the accounting policy for joint ventures to be accounted for using the equity method rather than a proportionate consolidation of the financial statements. There are no other changes to the policies from the Annual Report and LTP.

24      Additionally, Audit NZ suggested that Council should consider consolidating its council controlled organisations (CCOs), being Milford Community Trust and Southland Museum and Art Gallery Trust Board Inc.  Staff are currently finalising a position paper for the Committee on this matter and if necessary a minor change to the accounting policies for the 2019/2020 Annual Plan may be required at a later date (see pink section in attached draft accounting policies which states that CCOs are excluded).

Opening balance sheet

25      Opening balances for the 2019/2020 AP will be updated to reflect the actual results for 2017/2018.  The actual results for 2017/2018 will impact the forecast balance sheet to 30 June 2020.

Factors to Consider

Legal and Statutory Requirements

26      Section 95 of the Local Government Act 2002 requires the Council to prepare and adopt an Annual Plan for each financial year. Each annual plan should also be prepared in accordance with the principles and procedures that apply to the preparation of the financial statements and funding impact statement included in the LTP.

27      Section 111 of the Local Government Act states that any information to be prepared must be in accordance with generally accounting practice where the information is of a form or nature for which generally accepted accounting practice has developed standards. 

Community Views

Costs and Funding

28      There are no direct cost implications of Council adopting the assumption and accounting policies for the 2019/2020 Annual Plan.

Policy Implications

29      Council has by way of Section 6.1 of the Finance and Audit Committee’s terms of reference delegated to the committee to consider and make recommendations to Council in regards to accounting treatments, changes in generally accepted accounting practice and new accounting and reporting requirements.

Analysis

Options Considered

Analysis of Options

Option 1 – Endorses the, assumptions and accounting policies with any amendments from this meeting for use in preparation of the 2019/2020 Annual Plan.

Advantages

Disadvantages

·        Assumptions and policies are consistent with 2018-2028 LTP

·        Simplified more efficient approach

·        The Annual Plan can continue to be prepared in line with the planned timetable.

·      Risk of change in assumptions and flow on impact to financial forecasts and rates

 


 

 

Option 2 – Do not recommend the assumptions and accounting policies as presented

Advantages

Disadvantages

·        Changes can be made to the assumptions and accounting policies to incorporate the Committee’s views.

·      More complex approach for potentially minimal benefit

·      Different approach to 2018-2028 LTP

·      The Annual Plan process may be delayed depending on the time needed to provide the necessary information

 

Assessment of Significance

30      In terms of Council’s Significance and Engagement Policy, the assumptions and accounting policies which form part of the AP are not considered significant.

Recommended Option

31      Option one - Endorses the, assumptions and accounting policies with any amendments from this meeting for use in preparation of the 2019/2020 Annual Plan.

Next Steps

32      The assumptions and accounting policies (incorporating any changes agreed at this meeting) will be used in preparation of the 2019/2020 Annual Plan.

 

Attachments

a             DRAFT Accounting Policies - 2019/2020 Annual Plan    

 


Finance and Audit Committee

24 September 2018

 


 


 


 


 


 


 


 


 


 


 


Finance and Audit Committee

24 September 2018

 

Finance and Audit Committee work plan up to 30 June 2019

Record No:             R/18/9/22026

Author:                      Anne Robson, Chief Financial Officer

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To provide the Committee with the work programme discussed and agreed at the 14 June 2018 meeting.

2        As noted at the meeting the adoption of this work plan does not preclude the Committee or staff from including additional reports as and when required.  It is expected that the work plan will be refined further as time goes by.

3        This meeting includes all the reports indicated in this plan except the position paper on the accounting treatment of Councils entities going forward and the Debt Recovery Policy.  The paper on the accounting treatment of Councils entities has been drafted and we had planned to present today however we are revising the approach and want to just work through a couple of implications before we finalise.  It will now be presented on the 14th December 2018.  The Debt Policy will also be presented on the 14th December 2018, a draft has been completed and is currently being reviewed.

4        A further report included in this agenda that was not on the timetable but will be an annual report is the discussion on the Overall Programme of Projects for 2018/2019

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Finance and Audit Committee work plan up to 30 June 2019” dated 18 September 2018.

 

 

Attachments

a             Finance and Audit Committee Workplan to 30 June 2019    

 


Finance and Audit Committee

24 September 2018

 

Finance and Audit Committee Workplan to 30 June 2019

 

Content

26 March 2018

14 June 2018

30 August 2018

24 September 2018

14 December 2018

January 2019

March 2019

June 2019

LTP – Recommend LTP for adoption

 

X

 

 

 

 

 

 

LTP – Final Mgmt Report

 

 

X

 

 

 

 

 

LTP – 2021-2031 LTP Planning sessions

 

 

 

 

 

 

 

 

Annual Plan – Timetable

 

 

X

 

 

 

 

 

Annual Plan – Assumptions, policies and principles

 

 

 

X

 

 

 

 

Annual Plan – Workshop

 

 

 

 

X

 

 

 

Annual Plan – recommend draft to Council for consultation

 

 

 

 

 

X

 

 

Annual Plan – recommend final to Council for approval

 

 

 

 

 

 

 

X

 

 

 

 

 

 

 

 

 

Risk Report

X

X

 

X

X

 

X

X

Health & Safety Report

X

X

 

X

X

 

X

X

Financial Report

X

X

 

X

X

 

X

X

Fraud System Report

 

 

 

 

X

 

 

 

 

 

 

 

 

 

 

 

 

Annual Report – Audit Arrangements Letter

X

 

 

 

 

 

 

 

Annual Report - Timetable

 

X

 

 

 

 

 

 

Annual Report – Acctg entities position paper

 

 

X

 

 

 

 

 

Annual Report - Policies & Principles

 

X

 

 

 

 

 

 

Annual Report – Interim audit Report

 

X

 

 

 

 

 

 

Annual Report – Agree report ready for audit

 

 

X

 

 

 

 

 

Annual Report – Final audit mgmt report

 

 

 

X

 

 

 

 

Annual Report – Recommend adoption by Council

 

 

 

X

 

 

 

 

 

 

 

 

 

 

 

 

 

Forecast Financial Position

X

 

 

 

X

 

X

 

Interim Performance Report

X

 

X

 

X

 

X

 

Internal Audit

Will be updated when the Internal Audit Programme is approved

Insurance - Insurance policy approval

 

X

 

 

X

 

 

X

Determine Finance & Audit Meeting Content

 

X

 

 

 

 

X

 

Financial and Risk Policies – Debt Recovery Policy

 

 

 

X

 

 

 

 

Other – Reports on projects over $2million

Reports will be included on agenda as appropriate

Other External Audits – Building Control & Roading etc

Reports included on the agenda as appropriate

           


Finance and Audit Committee

24 September 2018

 

Analysis of Actual results to Forecast for the year ended 30 June 2018

Record No:             R/18/8/20197

Author:                      Kate Westenra, Graduate Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Background

1.      The 2017/2018 Annual report compares the actual results to the approved Annual Plan budget.

2.      During the year Council considered and approved changes to the 2017/2018 Annual Plan budget as part of forecasting the year end position.

3.      This report compares the actual results of both district and local activities to the approved forecast for the financial year.

4.      The comparison is made using the same reporting layout as the Annual Report. This reflects Councils Groups of Activities supported by the Funding Impact Statements included in Attachment A.

Overview

5.      The headings in the Funding Impact Statements attached relate to the following:

·    2017/2018 Actual is the actual result.

·    2017/2018 Forecast is the 2017/2018 Annual plan adjusted for the 2016/2017 carried forward items approved by Council in August 2017 and any budget adjustments as a result of the October 2017 and March 2018 forecasting periods.

·    2017/2018 Budget is the 2017/2018 Annual Plan. 

6.      The below table is a summary of the actual results compared to forecast for the year. A summary of the detail contained in the Appendix is noted below in the report.

 


 

 

Income

7.      Overall Operating Income is $277,896 (0.4%) less than forecast ($77.4million actual vs $77.7million forecast). 

 

 

8.      District Leadership includes Other Financial Activities and Forestry.  Other Financial Activities is over forecast due to external interest received on operating investments of $506,000, no budget or forecast was set.  In hindsight this was not appropriate.  The forestry sales resulted in $758,000, which is a combination of a change in the forests harvested, quantities harvested and price.  Forestry harvest sales were generated from the Ohai and Waikaia forests. 

9.      Roads and Footpaths income was below budget for the year.  The capital works programme commenced but was still behind the planned schedule which directly affects the level of income from NZTA. Work on the Southern Scenic Route and LED Streetlight Renewal projects is progressing with remaining budgets proposed to be carried to the 2018/2019 year.

 


 

Operating Expenditure

10.    Operating Expenditure is $803,538 (1%) less than forecast ($71.4 million actual vs $72.2 million forecast). 

 

11.    Community Services had less operational expenditure than forecast. Various maintenance projects were not undertaken and have been proposed to be carried forward to 2018/2019. Operating budgets for community centres were not required at the level that was forecast.  Due to the minimal costs that had been incurred on the Lumsden Toilet Project at 30 June 2018.

12.    Roading and Footpaths are over forecast and due to costs for the Road Safety Community Advisor, which was not budgeted. This is 100% recoverable from Invercargill City, Gore and Southland District Council (Roading).

 

 


 

Capital Expenditure

13.    Capital Expenditure is $3,557,583 (10%) less than forecast ($30.6million actual v $34.1million forecast).

 

14.    Overall roading capital expenditure is $2.1million less than budgeted at the end of June due to the Southern Scenic Route ($1.8million) and LED Streetlight Renewal ($289,000) projects not being completed. Remaining budgets are proposed to be carried forward to 2018/2019.

15.    Wastewater is $234,000 less than forecast,

·    Planned work on the disposal field at Stewart Island did not occur and is proposed to be carried forward due to the lack of contractor availability.

·    Forecasted funds for the Te Anau wastewater project were maintained to undertake work on the business case and pipeline design, work in these areas was on going at 30 June 2018.

16.    Water Supply is $1.35 million less than forecast,

·    Work on the Winton Water Main replacement is ongoing, currently is $896,000 under forecast with remaining funds of $700,000 are proposed to be carried forward with the expectation that work will be completed in October 2018.

·    District monitoring project looking into water pipe condition for leakage is ongoing, with $50,000 proposed to be carried forward. This is part of a multi-year project.

·    Riverton water treatment plant upgrade including storage tanks is ongoing, $57,000 is proposed.

·    The District monitoring project to be completed in Te Anau is ongoing, $87,000 is proposed to be carried forward. This project was originally included in the Annual Plan to be completed in Lumsden/Balfour water supply, however data indicates that there is a higher need for the work to be completed in Te Anau.

·    The Eastern Bush upgrade is $985,000 under forecast, the majority of the 2017/2018 work was transferred to 2018/2019 as part of the forecasting process with funds left for possible consulting costs. Currently staff are awaiting for Environment Southlands determination on the waste discharge from the proposed plant.

 

Projects

17.    The following table and graphs are based on the actual spend on projects for the year and their status as of 30 June 2018.

 

 

18.    Specific details of the projects In Progress, Not Started and Deferred are included in the “Overall programme of projects for 2018/2019 including the projects proposed to be carried forward from 2017/2018” report to Finance and Audit on the 24 September 2018.

19.    The graphs below show graphically the actual project spend for the year ended 30 June 2018 compared to the forecast spend by activity.  The attached Funding Impact Statements commentary explains the variances.

 

20.    The total actual spend for all projects was $28.7 million (Operational maintenance $300,000 and

Capital expenditure $28.4 million) against a forecast budget of $34.7 million (Operational maintenance $450 thousand and Capital expenditure $34.25 million).

 

 

21.    District Leadership projects include $572,000 for digitisation and $250,000 for the core systems review. The digitisation project was completed for less than forecasted and the remaining $106,000 budget for the core systems review is proposed to be carried forward to 2018/2019.

 

22.    The Public Toilets variance is due to the Lumsden toilet upgrade project being delayed, work is due to be completed in October 2018.

 

23.    Various Water Supply projects were not completed to the level forecasted.  The two District Monitoring Projects, $50,000 for water leaks and $87,000, to be completed in Te Anau, are proposed to be carried forward.  It is also proposed to carry forward the Riverton upgrade to the water treatment plant for $57,000, and the Eastern Bush upgrade of $85,000.


 

Statement of Comprehensive Income

24. The Actual versus Forecast comparative Statement of Comprehensive Income for the year ending 30 June 2018 is detailed below.  

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Analysis of Actual results to Forecast for the year ended 30 June 2018” dated 19 September 2018.

 

Attachments

a             Council's Activity Funding Impact Statements for the Period ending 30 June 2018    

 


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Finance and Audit Committee

24 September 2018

 

Overall Programme of Projects for 2018/2019 including the Projects Proposed to be Carried Forward from 2017/2018

Record No:             R/18/8/19550

Author:                      Susan McNamara, Management Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To inform the Committee of the overall programme of projects planned and proposed for the 2018/2019 financial year. This includes an overview of the projects for Council teams showing the proportion of projects for 2018/2019 that have originally been budgeted for in earlier years.

2        The carry forward expenditure noted in this report is subject to the Council approving the report on the 25 September 2018 agenda titled ‘Projects from 2017/2018 to be carried forward into the 2018/2019 financial year’.

Summary

3        Every year Council staff undertake projects as planned in the Long Term Plan/Annual Plan or that have been carried forward. Although many are completed in the financial year in which they were budgeted to occur, often some projects are delayed for a variety of reasons but are still identified as needing to be undertaken/completed. These projects are generally carried forward to the next financial year, as a project in progress/not been started. Typically only projects of a maintenance or capital nature are carried forward, but occasionally budget managers request operational expenditure to be carried forward as well, subject to Council approval.

4        The final approved budget expenditure for a project may be a combination of three processes. These are an original project included in 2018/2019 in the 2018-2028 Long Term Plan, a staff amendment to the 2018-2028 Long Term Plan or a carry forward at the end of the financial year. Projects included in the original Long Term Plan (used to consult with the community) may have also included budgets from 2017/2018 or earlier, either partially or entirely.

5        In late February, budget managers completed a second round of forecasting of the year-end financial result. During this process budget managers identified projects that would not be complete by 30 June 2018 and when they expected this work to be done. The forecasted projects expected to be completed during 2018-2028 were included as part of the staff amendment to the Long Term Plan and were included in the final 2018-2028 Long Term Plan that was adopted in June. The staff amendment also included three new projects. All projects included as a staff amendment are shown in the graphs below in orange.

6        The completion of the Annual Report for 2017/2018 is the last stage in identifying projects to carry forward. This final step requires managers to consider whether any budget not spent/projects not completed are still required, and to make a request for approval to carry forward the project and the amount remaining. These projects are considered by the relevant Group Manager before being included in a report to Council for approval to include as expenditure in the 2018/2019 financial year. The schedule of expenditure items included in the report to Council for approval on 25 September has been included as Attachment B to this report.  These items are shown in the graphs below in grey.

7        Overall, the aim is to ensure that the original budget of the project is maintained, unless Council is advised of a change. Included in the carry forward report to Council is a number of negative amounts. As noted above as part of the 2018-2028 Long Term Plan, a staff amendment was made for projects identified as not being expected to be completed by 30 June 2018. Where the actual amount spent in 2017/2018 was higher than forecasted in February a negative amount is included to carry forward. For 2017/2018 there were three projects identified as needing negative carry forward amounts.

8        The complete list of projects, on which this report is based is itemised in Attachments A & B. The schedule of expenditure items included in the report to Council to be approved on
25 September has been included as Attachment B to this report. All projects included in the adopted 2018-2028 Long Term Plan for 2018/2019 are included in Attachment A to this report.

9        Any projects that have accumulated from more than one of these processes have only been counted as one project in the graphs provided in this report. The report to Council requests approval to carry forward a total of 58 expenditure items. As 22 of these were partly included in the adopted Long Term Plan for 2018/2019 the number of carry forward items in this report is 36, however all dollar amounts are included based on how expenditure approval has been requested.

10      To show the quantity of work for each team the project information has been split based on the staff that are to complete the work instead of the activity used for financial reporting. The Water team complete projects across the water, wastewater and stormwater activities. The projects included for stormwater in 2018/2019 relating to the reticulation network will be completed by the Water team. One investigation project had been budgeted that will be completed by the Community Engineer. The Community Engineers complete projects across public toilets, cemeteries, parks and reserves, community facilities, roading and transport and airport activities. The projects for the Property team all relate to the community facilities activity. This activity includes halls, community housing and office buildings (both area offices and libraries).

11      The information included in the graphs for the Roading team is the value of the work being carried forward and does not include the remainder of the program for the year. This is due to the roading budget being set on a dollar value rather than as individual projects.


 

 

12      This graph shows the number of projects to be completed by each team by the method the expenditure is approved:


 

 

13      This graph shows the dollar value of the projects to be completed by the method the expenditure is approved:

14      As part of the Annual Report process managers discussed the implication of the additional work being transferred to 2018/2019. Managers did not believe that the additional work will cause any issues for 2018/2019. There are some projects that have been identified where ongoing discussions with the Community mean that they may not be completed during 2018/2019. There may also be additional projects required as Community Plans are completed.

15      Any changes to the programme of work identified in this report will be formally captured in to the reporting system when forecasting occurs during the year. Forecasting will occur for the first time after the October month end and again after February month end.


 

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Overall Programme of Projects for 2018/2019 including the Projects Proposed to be Carried Forward from 2017/2018” dated 18 September 2018.

 

 

Attachments

a             2018 2019 Projects included in the Long Term Plan

b             2017 2018 Proposed carry forwards into 2018 2019 year    

 


Finance and Audit Committee

24 September 2018

 


 


 


 


 


Finance and Audit Committee

24 September 2018

 


Finance and Audit Committee

24 September 2018

 


Finance and Audit Committee

24 September 2018

 



Finance and Audit Committee

24 September 2018

 

Draft unaudited Annual Report 2017/2018

Record No:             R/18/9/21598

Author:                      Shannon Oliver, Planning and Reporting Analyst

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To enable the finance and audit committee to recommend the Annual Report 2017/2018 for adoption by Council on 25 September 2018.

Executive summary

2        Council is required to develop and adopt an Annual Report within four months of the end of a financial year. 

3        The Annual Report is a means for Council to account and report to the community on its performance for the preceding financial year.  It reports on outcomes, performance measures, both financial and non-financial and provides the actual results against budgeted results

4        The Annual Report compares and comments on the performance of Council against the budget and operating targets set in year three of the Council’s 10 Year Plan 2015 – 2025 and what was programmed in the Annual Plan 2017/2018.

5        Staff have compiled the Annual Report which has been reviewed by members of the executive leadership team and the finance and audit committee prior to being audited by Audit New Zealand.  Changes required from these processes have been incorporated into the document.

6        The updated Annual Report is attached to this report (Attachment A). 

7        The summary of the Annual Report document will be prepared and audited separately in October.  Once the audit is complete and any changes are made, a separate audit opinion will be received and the summary will be approved by the mayor and chief executive for distribution.

8        The finance and audit committee is asked to consider the report and make a recommendation as to whether Council should adopt the Annual Report on 25 September 2018 as presented with any necessary changes.

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Draft unaudited Annual Report 2017/2018” dated 19 September 2018.

 

b)           Determines that this matter or decision be recognised as 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)           Recommends to Council that it adopts the Annual Report 2017/2018 incorporating any amendments agreed at this meeting, at its meeting on 25 September 2018.

 

Background

9        The Local Government Act 2002 requires Council to prepare and adopt an Annual Report within four months of the end of each financial year.  This is the second year that Council has adopted its Annual Report within three months.

10      An Annual Report is intended to outline Council’s actual performance in comparison with its intended performance as outlined in its Annual or Long Term Plan.

11      The Annual Report details the operating activities of the Council and includes financial statements for the Council. The report and financial statements have been audited by Audit New Zealand on behalf of the auditor-general.

12      The Annual Report and Summary (once confirmed) will be made available to the public via Council’s website, by placing printed copies in libraries and service centres and having printed copies available for distribution on request.  The availability of the annual report will be advertised.  Printed copies of the report and summary will also be sent to those on the strategy and policy mailing list.

13      A draft of the unaudited Annual Report was presented to the finance and audit committee on 30 August 2018.  The audit by Audit New Zealand will be complete by the date of this meeting, and as at the date of this report, a number of adjustments have been made to the document following audit and staff review.  The most significant adjustment is in relation to the accounting treatment of the costs associated with the digitisation project which is discussed further later in this report. 

14      A table outlining the key changes that have occurred since review by the finance and audit committee is attached as Appendix 1.

15      The summary annual report document is not required to be adopted by the Council. The summary of the Annual Report document will be prepared and audited separately in October.  Once the audit is complete and any changes are made, a separate audit opinion will be received and the summary will be approved by the mayor and chief executive for distribution.

Status of the report

16      At the date of this report the Annual Report is substantially complete.  The principal matters outstanding include audit and design of the summary document, and any final changes as a result of the final audit review process to the full annual report.  Any material changes made to the report will be outlined at the meeting.

17      At the time of writing this report, Audit New Zealand have completed the majority of their audit fieldwork and review of the Annual Report, however are not in a position to be able to provide audit clearance.  Verbal audit clearance is expected to be received on Thursday 20 September 2018.

18      In conjunction with providing verbal audit clearance, Audit New Zealand will provide Council with the draft audit opinion, the draft representation letter and the management report.  These documents will be circulated separate prior to the meeting.  The letter of representation is required to be signed by the mayor and chief executive. 

19      Ian Lothian, Director of Audit New Zealand will be in attendance at the finance and audit committee meeting to present the audit opinion and answer any questions regarding the Annual Report, audit opinion, management letter or the representations required.

Organisational performance (KPI’s)

20      The Annual Report 2017/2018 details performance of the organisation against the key performance targets that were specified in the 10 Year Plan.

21      Managers have reviewed the activities for which they are responsible and have provided commentary of the actual performance against targets, particularly in those instances where the performance targets have not been met. 

22      A small number of performance measures have had their results changed as a result of both internal and Audit New Zealand reviews since the Finance and Audit Committee meeting. Details of the key changes are included in the Appendix 1.

23      Council’s 26 activities are broken down into nine activity groups. There were 99 performance targets of which 69 were measured, 42 (42%) were achieved and 27 (27%) were not achieved. There were a variety of reasons why target key performance indicators (KPIs) were not met and these are outlined in more detail in the various activity sections of the Annual Report.

 

Performance results

Activity group

Achieved

Not achieved

Not measured

Total

Community Services

9

7

9

25

District Leadership

10

2

5

17

Emergency Management

1

0

1

2

Regulatory Services

4

8

6

18

Roading and Transport

3

2

1

6

Solid Waste

0

3

4

7

Stormwater

4

1

2

7

Sewerage

5

0

0

5

Water Supply

6

4

0

10

TOTAL

42

27

30

99

 

Projects

24      The Annual Report 2017/2018 includes information about projects, their completion status and actual cost versus budget.  The projects include those programmed in the Annual Plan 2017/2018 plus any projects carried forward from previous years.

25      Of the 153 projects programmed, 53 (35%) of these were completed, 53 (35%) were in progress, 27 (18%) were deferred and 10 (7%) were deleted.

 

Projects status

 

 

 

 

 

 

Activity group

Completed

In progress

Not started

Deferred

Deleted

Total

Community Services

16

18

8

18

6

66

District Leadership

1

2

0

1

1

5

Regulatory Services

1

0

0

0

0

1

Roading and Transport

10

9

2

3

2

26

Solid Waste

0

0

0

0

0

0

Stormwater

3

1

0

0

0

4

Wastewater

4

11

0

3

0

18

Water Supply

18

12

0

2

1

33

Total

53

53

10

27

10

153

 

Statement of compliance

26      Clause 34 of Schedule 10 of the Local Government Act 2002 requires that a Statement of Compliance be included in the Annual Report indicating whether the statutory requirements in relation to preparation of the Annual Report have been met. The Statement is required to be signed by the chief executive and mayor.

27      The main statutory requirements relating to preparation of the Annual Report are outlined in the Act under Part 6, Section 98 and Part 3 of Schedule 10. These sections largely require that the statements be prepared in accordance with Generally Accepted Accounting Practice (GAAP) and that certain information be disclosed in the Annual Report. Hence, the Statement of Compliance is confirming that the information that is required to be included in an Annual Report has been included and whether the report itself has been adopted within the four month timeframe and that it has been audited. The representations required in the Statement do not extend to confirming, for example, that Council has met all of its statutory responsibilities during previous decision-making processes.

Accounting for digitisation project costs

Background

28      Over the last 2 years Council have incurred significant cost ($1.9 million to 30 June 2018) in transferring all Council’s property files into digital format.  At 30 June 2017 $1.4 million of these costs were recognised as work in progress on Council’s balance sheet as the project was not complete at that date.  In the current financial year the project has been completed and a further $500,000 costs incurred.

Council’s position

29      In assessing how Council should account for these costs, staff considered PBE IPSAS 31: Intangible Assets.  The definition of an intangible asset per this standard is “an identifiable non-monetary asset without physical substance”.  An asset is identifiable if it is either:

30      Is separable, ie: is capable of being separated or divided from the entity and sold, transferred, licensed, rented or exchanged either individually or together with a related contract, identifiable asset or liability, regardless of whether the entity intends to do so; or

31      Arises from binding arrangements (including rights from contracts or other legal rights), regardless of whether those rights are transferrable or separable from the entity or from other rights and obligations.

32      Additionally you need to have control over the asset, this is stated to occur where the entity has the power to obtain future economic benefits or service potential flowing from the underlying resource and to restrict the access of others to those benefits or that service potential.

33      Council staff formed the view that the digitisation files are separable as they can be “physically” moved and concluded that the $1.9 million cost of the digitisation project should be included as an intangible asset (recognised on the statement of financial position) and tested for impairment on an annual basis.  This assessment and conclusion was provided to Audit NZ during the audit.

Audit NZ’s position

34      Audit NZ’s position is that “legally” Council cannot remove these assets from Council unless the Chief Archivist (s18 of Public Records Act 2005) agrees and that would be rare.  Audit NZ also believe that Council have no legal or contractual right to the information as its obligation is to create and maintain these records, and copyright is retained by the owner/architect etc.  Additionally when considering future service potential, Audit NZ believe that the information available to the public is the same regardless of if it is provided in paper or electronic format. 

35      On this basis, Audit NZ’s position is that the $1.9 million costs associated with digitisation should be expensed in the Statement of Comprehensive Income and Expense.  In coming to this conclusion Audit NZ also refer to precedent that has been set by their technical team/OAG in providing opinions on other local authorities who have undertaken similar digitisation projects in the past and concluded the costs should be expensed.

Options

36      If Council opted to retain the digitisation as an intangible asset and capitalise it for the year ended 30 June 2018, a formal technical paper would need to be prepared and provided to Audit NZ’s technical team for consideration.  This assessment would take approximately two weeks and the audit opinion on the Annual Report would not be able to be issued until this assessment was complete.  This would require the adoption of the Annual Report to be deferred until mid-October or later.

37      If Council opted to expense the digitisation costs for the year ended 30 June 2018, Audit NZ would concur with the treatment and the audit would be able to be finalised and an audit opinion issued on 25 September 2018 as planned.

Conclusion

38      After consideration and discussion of the impact and implications of each option amongst staff and management, the conclusion is that Council expense the $1.9 million of digitisation project costs to date in the year ended 30 June 2018.  This resulted in a reduction in Council’s net surplus for the year ended 30 June 2018 from $5.6 million to $3.7 million (before adjustments for other comprehensive revenue).

Financial results

39      These financial statements have been prepared in accordance with Tier 1 PBE accounting standards.  The accounting policies for the year ended 30 June 2018 were approved at the Finance and Audit committee meeting in June 2018. Explanations of the variances between actual results and budgeted results for 2017/2018 year can be found in note 33 of the Annual Report.

40     A summary of key financial information is set out below.

Statement of comprehensive revenue and expense

41      The statement of revenue and expense records the revenue received and the expenditure incurred by Council. It also records changes in the value of Council’s assets.  In summary, Council’s financial performance was as follows:

 

Actual 2017/2018

Budget 2017/2018

Actual 2016/2017

Total revenue 

$80.0M

$74.1M

$72.1M

Total expenditure

($76.3M)

($72.7M)

($72.0M)

Operating surplus/(deficit)

$3.7M

($1.4M)

$0.1M

Gains on assets at fair value

$49.4M

$30.0M

$95.3M

Total comprehensive revenue and expense

$53.1M

$31.4M

$95.5M

42      Total revenue was $5.9 million over budget primarily as a result of additional funding of $2 million from NZTA in relation to the Southern Scenic Route sealing and also additional revenue received from forestry sales of $1.6 million.  $2.3 million is Council’s share of gross revenue from Venture Southland (not separately budgeted for).

43      Total expenditure was $3.6 million above budget predominantly due to $1.9 million of costs associated with digitisation of Council’s property files (this was capitalised in the budget), $600,000 increased forestry costs, and $2.3 million Council’s share of gross expenditure from Venture Southland (budgeted for a net cost of $1.7 million).

44      Gains on Assets was $19.4 million greater than budget due to a significant increase in the roading revaluation as a result of current market conditions

Statement of financial position

45      The Statement of Financial Position (also referred to as the Balance Sheet) records the assets Council owns, and how those assets are financed.  Total Assets is what the council owns for example infrastructure assets, Total Liabilities are finance from third parties, for example accounts payable; and Total Equity is the net community assets (Total Assets less Total Liabilities).  Key items in the Statement of Financial Position are:

 

Actual 2017/2018

Budget 2017/2018

Actual 2016/2017

Total assets

$1,549M

$1,452M

$1,400M

Total liabilities

$11M

$11M

$11M

Total equity

$1,538M

$1.441M

$1,389M

46      Total assets are over budget primarily due to property, plant and equipment being significantly more than budgeted by $80.1 million.  This is principally as a result of the higher than budgeted revaluation of infrastructural assets.

Statement of cash flows 

47      The Statement of Cash Flows records the cash that Council received and disbursed.  Broadly cash, under financial reporting rules is recorded in three separate categories:

•         operating cash flows - the cash flow related to day-to-day operating activities.

•         investing cash flows - the cash flow received from sale of assets and cash spent on capital assets.

•         financing cash flows - the cash flow received from any borrowings and the cash flow disbursed in repaying borrowings

48      Overall, Council’s cash position increased from June 2017 by $1.1M (rounded).  In summary, the cash flows recorded within these categories are as follows:

Operating cash flows

Actual 2017/2018

Budget 2017/2018

Actual 2016/2017

Cash surplus/(deficit)

$26.5M

$22.9M

$21.2M

 

Investing cash flows

Actual 2017/2018

Budget 2017/2018

Actual 2016/2017

Cash surplus/(deficit)

($27.2M)

($34.6M)

($17.1M)

 

Financing cash flows

Actual 2017/2018

Budget 2017/2018

Actual 2016/2017

Cash surplus/(deficit)

-

($0.01M)

($0.03M)

49      Council’s net operating cashflows were higher than budgeted. Receipts from NZTA were $1.6 million above budget and also Receipts from other revenue ($5.6 million), primarily due to increased forestry harvesting.  Net cash outflows from investing activities were $7.3 million lower than budgeted due to the deferral/delay of several significant capital projects being carried forward into future financial years and the costs associated with the digitisation of Council’s property files being expensed. 

Issues

50      As at the date of this report there are no significant unresolved issues in relation to the Annual Report 2017/2018.

51      The only significant issue identified during the audit of the Annual Report to date is the accounting treatment of the digitisation project.  This is discussed in detail earlier in this report and has been resolved.

Factors to Consider

Legal and Statutory Requirements

52      Section 98 of the Local Government Act 2002 requires Council to adopt an Annual Report within four months of the end of the financial year.

53      The Act also requires that Council publishes a summary of the Annual Report within one month of the Annual Report being adopted.  Officers are preparing a summary document which will be released in October.

54      Part 3 of Schedule 10 also outlines a number of disclosures that are required to be included in the Annual Report.

Community Views

55      The community expects Council to adopt an Annual Report in accordance with the requirements of the Local Government Act 2002.  The report is an important accountability document in terms of explaining the actual performance of the organisation relative to the objectives that were set via the Long Term Plan and Annual Plan.

56      The Annual Report and summary (once confirmed) will be made available to the public via Council’s website, by placing printed copies in libraries and service centres and having printed copies available for distribution on request.  Availability of the report will be advertised.  Printed copies of the report and summary will also be sent to those on Council’s mailing list.

Costs and Funding

57      The audit fee for the Annual Report is $116,923 (excluding GST) plus associated disbursements.

58      There are no additional financial considerations associated with making a decision on whether to adopt the Annual Report.

Policy Implications

59      Council’s policies relating to the basis upon which the Annual Report is prepared are outlined in the Statement of Accounting Policies contained in the report itself.

Analysis

Options Considered

60      Under the Local Government Act 2002, the Council must prepare and adopt an
Annual Report in respect of each financial year, no other options are available. 

Analysis of Options

Option 1 – Recommend adoption of the Annual Report 2017/2018, including any adjustments made by the committee

Advantages

Disadvantages

·        compliance with Council’s legislative requirements and Council’s committee delegations.

·        The committee has an opportunity to review the report and satisfy itself that the report is complete and that it has been prepared on an appropriate basis.

·        the document provides information to the public on the performance to budget and against key performance indicators.

·        None identified.

 

Option 2 – Do not recommend adoption of the Annual Report 2017/2018, including any adjustments made by the committee

Advantages

Disadvantages

·        there are no advantages of this option.

·        Council will not be compliant with the legislation.

 

Assessment of Significance

61      The Annual Report 2017/2018 is considered significant under Council’s significance and engagement policy because the performance of Council is of wide community interest.

62      It is important to the public that Council meets both its financial and non-financial commitments to ensure it delivers its services efficiently and effectively.  To do this the public relies on the information provided in the Annual Report to give it assurance that Council is undertaking its responsibilities and how well it is performing these.

63      Along with the processes and procedures Council undertakes to track and record the information provided in the Annual Report, to ensure that the public can rely on the information provided an independent review is undertaken by auditors (Audit New Zealand).  In general, Audit New Zealand provides an opinion as to whether Council has complied with Generally Accepted Accounting Practice (GAAP) and that the Annual Report fairly reflects council’s financial position, results of operations and cashflows, and levels of service and reasons for any variance.

Recommended Option

64      The recommended option is Option 1 – Recommend adoption of the Annual Report 2017/2018, including any adjustments made by the committee

Next Steps

65      The Annual Report will go to Council for adoption at its meeting on 25 September 2018.

66      Once the Annual Report is adopted, and the signed representation letter has been provided to Audit NZ, the final audit opinion will be issued to Council.  The audit opinion will be finalised in the Annual Report and an online and printed version of the Annual Report will be made available to the public.

67      The summary Annual Report will be graphically designed and will be audited separately in October.  Once the audit is complete and any changes are made, the Summary will be approved by the mayor and chief executive and will also be made available to the public.

APPENDIX 1 – Key Changes to the Annual Report

Description

Change

Section

Page

Message from Mayor and CE wording

Updated wording

Introduction

3

Key Highlights

Updated wording

Introduction

6-7

Summary activity report

Updated results

Introduction

10-11

Financial overview

Insert page ref to accounting policies

Update Financial summary

Introduction

12

Financial overview

Insert page ref for note 33

Updated Sources of Revenue table (remove wastewater scheme capital refund line)

Updated Revenue paragraph values and Venture disclosure.

Changed explanation under Operational expenditure

Changed explanation of Cash flow paragraph

Changed explanation under Revenue Paragraph

Introduction

13

Financial overview

Update Capital expenditure results and table

Added explanation underneath Activity Capital Expenditure (Including Vested Assets)

Introduction

14

Financial benchmarks

Update Balanced Budget Benchmark graph

Introduction

18

Community services

Community facilities KPI commentary for the KPI - Percentage of Council staff who think that the council building they work in is appropriate for the purposes of doing their job effectively

Council activities

37

Community services

Result updated to reflect not measured in this financial year for KPI - Percentage of residents satisfied with the locations of public toilets for residents and tourists

Council activities

38

Community services

Result and commentary updated for the KPI - Percentage of revenue achieved against target

Council activities

39

District Leadership

Venture Southland heading changed to bold and some of the key highlights wording changed

Council activities

43

District Leadership

Projects status updated

Council activities

46

District Leadership

Increase in GDP from the Southland region KPI – result and commentary updated and previous results updated

Council activities

47

District Leadership

Annual survey result updated

Council activities

48

District Leadership

FIS updated to reflect digitisation project

Council activities

50

District Leadership

FIS budget variations commentary updated to reflect digitisation project

Council activities

51

Regulatory services

Environmental Health KPI – target description updated

Council activities

61

Solid Waste

What we do wording

Council activities

69

Solid Waste

Result updated to reflect not measured in this financial year for KPI

Council activities

70

Wastewater

FIS updated

Council activities

84

Wastewater

FIS budget variations commentary updated

Council activities

85

Water supply

Performance targets section – updated results

Bacterial compliance KPI – updated KPI results and commentary

Protozoal compliance KPI - updated KPI results and commentary

Council activities

87-89

Southland Museum and Art Gallery Trust

Updated nature and scope of activities paragraph number of items held figure

Council activities

97

Southland Museum and Art Gallery Trust

Financial table added and source of funding paragraph

Council activities

98

Financial information

Financial tables shaded

Financial information

All

(100-162)

Financial information

Financial year updated

Financial information

100

101

102

106

107

109

Financial information

Word changed from purchase to acquisition

Financial information

99

Financial information

Update page reference from 27-83 to 31-93

Financial information

101

Financial information

Update note on Infrastructural Assets – MWH replaced with Opus

Financial information

106

Financial information

Update statement of comprehensive revenue and expense table

Financial information

111

Financial information

Update statement of changes in equity for the year table

Financial information

112

Financial information

Update statement of financial position table

Financial information

113

Financial information

Update statement of cashflow table

Financial information

115

Financial information

Update FIS table

Financial information

116

Financial information

Update FIS reconciliation

Financial information

117

Financial information

Update Note 2. Other revenue

 

Financial information

119

Financial information

Update Note 4. Exchange/non-exchange revenue

Update Note 6. Other Council expenditure

Note 6 – Include separate line - deduct amount from: Other assurance services Audit NZ.

Financial information

120

Financial information

Update Note 10. Changes in equity and reserves

Financial information

123

Financial information

Update Aged trade and other receivables

Financial information

125

Financial information

Note 16 - Change maximum amount to which these assets are insured

Financial information

126

Financial information

Update Note 17. Intangible assets

Financial information

135

Financial information

Change disclosure

Financial information

140

Financial information

Update Note 25. Cashflow reconciliation

Financial information

142

Financial information

Add to Note 29: Judicial review

Update Note 30 – populated for current year

Financial information

146

Financial information

Explanatory Notes – Revenue section

Financial information

148

Financial information

Update Note 33. Explanation of major variances against budget.

Financial information

149

Financial information

Update Health License Reserve

Financial information

155

Financial information

Update Wyndham reserve

Financial information

158

 

 

Attachments

a             Draft Annual Report 2017/2018    

 


Finance and Audit Committee

24 September 2018

 

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Finance and Audit Committee

24 September 2018

 

Final Management Report from Audit New Zealand for the year ended 30 June 2018

Record No:             R/18/9/21331

Author:                      Jacobus Meyer, Financial Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Summary of Report

1        As part of the audit process, Audit New Zealand (Audit NZ) provides Council with a report at the conclusion of the interim and final stages of its Annual Report audit, outlining the work that was performed and any recommended areas for improvement.

2        The management letter from Audit NZ addressing the interim stage of the Annual Report audit for the year ended 30 June 2018 was included in the Finance and Audit Committee (The Committee) 14 June 2018 agenda.

3        The management letter received from Audit NZ in relation to the final audit for the year ended 30 June 2018 is expected to be received on 20 September 2018 and will be circulated separately prior to this meeting.

4        Ian Lothian, Audit Director of Audit NZ will be present at the meeting to discuss the management report and answer any questions.  

5        At the time of writing this report, staff believe that Audit NZ have not identified any significant or material issues during the audit for the year ended 30 June 2018, and anticipate that on the
25 September 2018, Audit NZ will issue an unmodified audit opinion on Council’s Annual Report for the year ended 30 June 2018. 

6        This means that Audit NZ considers the Annual Report has no “material” misstatements and meets its statutory purpose.  However, during the process Audit NZ may identify some areas for improvement.

7       The table attached (Attachment A) outlines the recommendations made by Audit NZ from previous management reports, in the form of an action list table. This table was initially presented to the committee at the 14 June 2018 meeting and has been updated to reflect the current status.  Staff will update this table to incorporate any recommendations in regards to the final audit identified by Audit NZ. 

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Final Management Report from Audit New Zealand for the year ended 30 June 2018” dated 18 September 2018.

 

 

Attachments

a             Staff Feedback from Audit New Zealand    

 


Finance and Audit Committee

24 September 2018

 

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Finance and Audit Committee

24 September 2018

 

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.

C8.1 Quarterly risk register update - September 2018

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

Quarterly risk register update - September 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.