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

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 26 March 2019

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

26 March 2019

 

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         Finance and Audit Committee work plan up to 30 June 2019                                               21

7.2         Interim Performance Report - Period two - 1 November 2018 to 28 February 2019 23

7.3         Delegations Manual Project                                                                                                                      49

7.4         Health and Safety Update                                                                                                                        169

7.5         Monthly Financial Report - January 2019                                                                                       177

7.6         Forecasted Financial Position for the year ending 30 June 2019                                     195

7.7         Annual Report Audit Plan for year ending 30 June 2019                                                       211

7.8         Internal Auditor Appointment                                                                                                             235

7.9         Finance & Audit Committee Work plan for the year ended 30 June 2020                   237   

Public Excluded

Procedural motion to exclude the public                                                                                                       239

C8.1      Quarterly risk register update - March 2019

C8.2      Fraud Risk Assessment Actions

 


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, 14 December 2018


 

Finance and Audit Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Finance and Audit Committee held in the Council Chambers, 15 Forth Street, Invercargill on Friday, 14 December 2018 at 9am. (9.00am – 9.01am, 10.47am – 12.16pm, 12.55pm – 2.04pm, 2.07pm – 2.40pm)

 

present

 

Chairperson

Ebel Kremer

 

Mayor Gary Tong (9.00am – 9.01am, 10.47am to 12.16pm)

Councillors

John Douglas

 

Paul Duffy

 

Bruce Robertson

 

 

IN ATTENDANCE

Councillor Dillon (9.00am – 9.01am, 10.47am to 12.16pm)

Councillor Keast

Chief Executive

Steve Ruru

Chief Financial Officer

Anne Robson

Group Manager – Services and Assets

Matt Russell

Group Manager – Community and Futures

Rex Capil

People and Capability Manager

Janet Ellis

Group Manager – Customer Delivery

Trudie Hurst

Communications Manager

Louise Pagan

Governance and Democracy Manager

Clare Sullivan

Committee Advisor

Fiona Dunlop

 

Adjournment of Meeting

The Chair opened the meeting and advised that it would be adjourning until the conclusion of the Around the Mountains Cycle Trail Project Subcommittee.

Resolution

Moved Chairperson Kremer, seconded Mayor Tong and resolved:

That the Finance and Audit Committee adjourns until the conclusion of the Around the Mountains Cycle Trail Project Subcommittee.

 

The meeting adjourned at 9.01am.

 

The meeting reconvened at 10.47am.

 

Mayor Tong and Councillors Dillon, Douglas, Duffy, Keast and Kremer and Bruce Robertson were present then the meeting reconvned.

 

 

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 Chairperson Kremer, seconded External Member Robertson and resolved:

That the Finance and Audit Committee confirms the minutes of the meeting held on 17 October 2018 as a true and correct record of that meeting.

 

Reports

 

 

7.1

Interim Performance report - Period one - 1 July to 31 October 2018

Record No: R/18/12/27767

 

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

 

Miss Oliver advised that this is the first interim performance report which covers the July to October 2018 reporting period. The interim performance report is part of the corporate performance framework which was adopted in June 2018 as part of the 2018-2028 Long Term Plan.

 

 

Resolution

Moved Chairperson Kremer, seconded Cr Douglas and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Interim Performance report - Period one - 1 July to 31 October 2018” dated 7 December 2018.

 

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

 

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

 

d)           Notes that the format of the report attached to the officers report will change for the next period report to an exception-based format.

 

 

7.2

Health and Safety Update

Record No: R/18/11/27114

 

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

 

 

Resolution

Moved Mayor Tong, seconded External Member Robertson and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Health and Safety Update” dated 6 December 2018.

 

 

7.3

Risk Management Framework Project

Record No: R/18/11/26857

 

Group Manager, Community and Futures – Rex Capil was in attendance for this item.

 

Mr Capil advised that the report was to update the Committee on Risk Management Framework project, seek endorsement of the Risk Management Framework 2018 document and recommend to Council adoption of the Risk Management Framework 2018 document and associated next steps.

 

 

Resolution

Moved Chairperson Kremer, seconded External Member Robertson recommendations a to c, d with a change (as indicated by strikethrough) and e and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Risk Management Framework Project ” dated 24 November 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 Southland District Council Risk Management Framework 2018 document with the following change to “What is risk management?”

 

What risk management is

What risk management is not

A valuable way to be prepared for uncertainty

100% accurate

A decision-making tool

Predictive

A way to direct resources

A compliance exercise

Big picture

All encompassing

Long-term and strategic.

A way to justify bad or risk-averse decisions

An inexact science

 

Forward-looking – (with backwards data)

 

 

e)            Recommends to Council that it adopt the Southland District Council Risk Management Framework 2018 document.

 

 

7.4

Draft Debt Recovery Policy

Record No: R/18/3/5378

 

Finance Manager – Sheree Marrah and Finance Officer – Credit Control - Shirley Carruthers were in attendance for this item.

 

Mrs Marrah advised that the report was to present the draft Debt Recovery Policy to the Committee and recommends to Council the draft Policy be adopted.

 

 

Resolution

Moved Cr Douglas, seconded Cr Duffy and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Draft Debt Recovery Policy” dated 6 December 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)           Recommend to Council that it adopts the draft Debt Recovery Policy as attached to the officers report.

 

Mayor Tong left the meeting at 12.16pm.

Councillor Dillon left the meeting at 12.16pm.

 

The meeting adjourned for lunch at 12.16pm and reconvened at 12.55pm.

 

Councillors Douglas, Duffy, Keast and Kremer and External member Bruce Robertson were present when the meeting reconvened.

 

 

7.5

Draft Accounting Position Paper

Record No: R/18/8/19112

 

Finance Manager – Sheree Marrah was in attendance for this item.

 

Mrs Marrah advised that the purpose of the report was for the Committee to consider recommendations from Audit New Zealand Management Reports for the years ended 30 June 2017 and 2018, recommendations made to Council to consider consolidating Milford Community Trust and revisiting the accounting approach for its various joint venture entities.

 

Resolution

Moved Chairperson Kremer, seconded External Member Robertson and resolved:

That the Finance and Audit Committee:

a)       Receives the report titled “Draft Accounting Position Paper ” dated 7 December 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)      Confirms the content and the proposed conclusions of the attached draft accounting position paper, being that for the Financial Year ended 30 June 2019 and beyond Council will:

·        Equity account for Venture Southland, Southland Regional Heritage Committee, Southland Regional Development Agency and Emergency Management Southland (associates.

·        Account for Council’s share of revenue/expenses, assets and liabilities for WasteNet (a jointly controlled operation)

·        Equity account for Southland Museum and Art Gallery and Whakamana te Waituna Charitable Trust (associates), recognising that they have no equity share.

·        Disclose summary financial information for Milford Community Trust and Southland Museum and Art Gallery in the Council Controlled Organisations section of the Annual Report.

 

e)       Approves Attachment A (of the officers report) – Draft Accounting Position Paper to be sent to Audit NZ incorporating any changes from this meeting to support the Annual Report for the year ended 30 June 2019 and subsequent financial years.

 


 

 

7.6

Monthly Financial Report - October 2018

Record No: R/18/11/27498

 

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

 

 

Resolution

Moved Cr Duffy, seconded Cr Douglas and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Monthly Financial Report - October 2018” dated 7 December 2018.

 

 

7.7

Forecasted Financial Position for the year ending 30 June 2019

Record No: R/18/11/26807

 

Management Accountant - Joanie Nel was in attendance for this item.

 

Mrs Nel advised that the report was to inform the Committee of the expected year-end financial result compared to what was finalised for the 2018/2019 Annual Plan and to seek approval for recommendation to Council for final approval.

 

During discussion on the report the meeting wished to discuss the Stewart Island Electrical Supply Authority “forecasting” in more depth.  As the details to be discussed were of a commercial nature and involving negotiations it was agreed that the meeting would go into public excluded to allow for discussion on the matter.

 

 

Public Excluded

 

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

Resolution

Moved Chairperson Kremer, seconded Cr Douglas and resolved:

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

7.7      Procurement Update - Contract 18/18 - Human Resources Information System

C8.1   Quarterly risk register update - December 2018

C8.2   Procurement Update - Contract 18/18 - Human Resources Information System

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

Forecasted Financial Position for the year ending 30 June 2019

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

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

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.

Quarterly risk register update - December 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.

Procurement Update - Contract 18/18 - Human Resources Information System

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

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

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.

 

That the Chief Executive, Group Manager – Services and Assets, Group Manager, Community and Futures, Chief Financial Officer, People and Capability Manager and Committee Advisor be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the items 7.7 Forecasted Financial Position for the year ending 30 June 2019, C8.1 Quarterly risk register update - December 2018 and C8.2 Procurement Update - Contract 18/18 - Human Resources Information System. 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 Management Accountant be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the item 7.7 Forecasted Financial Position for the year ending 30 June 2019.  This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to those matters because of their knowledge on the issues discussed.

 

That Policy Analyst – Jane Edwards be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of item C8.1 Quarterly risk register update - December 2018. This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to those matters because of their knowledge on the issues discussed.

 

That Digital Solutions Manager be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of item C8.2 Procurement Update - Contract 18/18 - Human Resources Information System. 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.

 

The public were excluded at 1.21pm.

 

The meeting returned to open meeting at 1.42pm.

 

 

7.7

Forecasted Financial Position for the year ending 30 June 2019 (CONTINUED)

Record No: R/18/11/26807

 

Resolution

Moved Chairperson Kremer, seconded Cr Duffy and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Forecasted Financial Position for the year ending 30 June 2019” dated 4 December 2018.

 

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

 

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

 

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

 

e)            Recommends Council approve the changes as detailed in appendix A of the officers report.

 

f)             Recommends to Council that it notes the projects or partial costs of projects indicated to be deferred to next year as part of the year end carry forward process, as detailed in appendix D of the officers report.

 

g)           Recommends Council approve the following projects to be deleted from the 2018/19 financial year:

 

Business Unit

Project

Amount

Details

Stewart Island

Streetworks Stewart Island

$80,000

Being completed by the Department of Conservation

Stewart Island

Peterson Hill footpath upgrade

$94,649

Funding source no longer available

Stewart Island

Oban sign

$4,000

Upgrade done by community

Lumsden Balfour

Water supply upgrade

$86,600

Project already deferred to 19/20

Riversdale

Street lighting project 815

$5,000

CDA requested project be deleted

 

h)           Recommends Council approve the following unbudgeted expenditure for the 2018/19 financial year:

 

Business Unit

Expense

Amount

Funding Source

Dipton Forest

Forestry charges

$10,534

Forestry Reserve

Finance

Insurance costs

$10,902

District Operating Reserve

Ohai Forest

Forestry charges

$15,259

Forestry Reserve

Manapouri

Playground project change to a flying fox and removal of trees

$17,500

Manapouri General Reserve

Chief Executive

Riskpool Insurance claim

$31,321

District Operations Reserve

Gowan Hills Forest

Forestry charges

$43,552

Forestry Reserve

District Sewerage

Expected increase in monitoring costs for the year due to additional costs from ES and monitoring required from consents

$57,181

District Sewerage Reserve

SIESA Operations

Increase in operating costs

$249,905

SIESA Operations

Reserve

Waikaia Forest

Forestry charges

$695,443

Forestry Reserve

 

 

7.8

Riskpool Call

Record No: R/18/10/24661

 

Chief Financial Officer – Anne Robson will be attendance for this item.

 

Miss Robson advised that the purpose of the report was to inform the Committee off the receipt of correspondence from Riskpool advising of a monetary call that is to be made to Council on 1 July 2019.

 

 

Resolution

Moved Cr Douglas, seconded Chairperson Kremer and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Riskpool Call” dated 6 December 2018.

 

b)           Acknowledges the payment of $31,321.46 to be payable to Riskpool on or before 1 July 2019.

 

 

7.9

Internal Audit Request for Proposal

Record No: R/18/12/27532

 

Chief Financial Officer – Anne Robson will be attendance for this item.

 

Miss Robson advised that the purpose of the report was to seek the Committee’s approval to “go to market” for the provision of internal audit services.

 

 

Resolution

Moved Chairperson Kremer, seconded External Member Robertson and resolved:

That the Finance and Audit Committee:

a)            Receives the report titled “Internal Audit Request for Proposal” dated 5 December 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)           Approves the internal Audit Request for Proposal for release.

 

e)            Delegates authority to the Chairman of the Finance and Audit Committee, the independent member on the committee and the Chief Financial Officer to shortlist and appoint an internal auditor for a term of three years commencing the 1 July 2019 with a further two year extension at the sole discretion of council.

 

 

7.10

Finance and Audit Committee work plan up to 30 June 2019

Record No: R/18/9/22743

 

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

 

 

Resolution

Moved Chairperson Kremer, seconded External Member Robertson 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 5 December 2018.

 

b)           Notes the changes made to the work plan from the last meeting.

 

 

 

The meeting returned to public excluded at 2.02pm.

 

The meeting adjourned at 2.04pm and reconvened at 2.07pm.

 

 

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 2.40pm.                      CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Finance and Audit Committee HELD ON FRIDAY 14 DECEMBER 2018.

 

 

 

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

 

 

 

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

 


Finance and Audit Committee

26 March 2019

 

Finance and Audit Committee work plan up to 30 June 2019

Record No:             R/19/3/5091

Author:                      Anne Robson, Chief Financial Officer

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To update the Committee on the status of 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 work plan has been updated to incorporate the actual dates reports are being presented where that differed to the work plan adopted.  For the Committees information the “X” in red shows the date the report was presented, where this differs from what was approved in the work plan or if it is a new report that will be presented on an annual basis.  If there is a black “X” on the same line as a red “X”, the black “X” indicates the date agreed by the committee.  The “X” in green reflects changes identified to the ongoing work plan since it was adopted.

4        This meeting includes all the reports indicated in this plan for this meeting date except the Insurance Policy report and the Annual Plan – draft financials and draft document.  The insurance policy will come to the June meeting.  The draft annual plan will be discussed in a workshop following the conclusion of this meeting.

5        In addition to the reports noted in the timetable this agenda also includes a report on the delegations manual project. 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Finance and Audit Committee work plan up to 30 June 2019” dated 19 March 2019.

 

b)           Notes the changes made to the work plan from the last meeting

 

Attachments

a             Finance & Audit Workplan to 30 June 2019 (26 March Meeting)    

 


Finance and Audit Committee

26 March 2019

 


Finance and Audit Committee

26 March 2019

 

Interim Performance Report - Period two - 1 November 2018 to 28 February 2019

Record No:             R/19/3/4266

Author:                      Shannon Oliver, Planning and Reporting Analyst

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The purpose of the report is to provide the Finance and Audit Committee with the interim performance report (IPR) for review and feedback.

Executive Summary

2        This is the second IPR which covers the November 2018 to February 2019 reporting period. The IPR is part of the corporate performance framework (CPF) which was adopted in June 2018 as part of the 2018-2028 Long Term Plan.

3        The purpose of the CPF is to streamline Council planning and reporting functions. The IPR provides a four month ‘snapshot in time’ record of the status of Council’s key performance indicators (KPIs) for the reporting period.

4        For this reporting period, 70.54% (79) of the KPI’s are on track, 28.57% (32) are off track and 0.89% (1) had no target. Group manager commentary is provided in the attached reports at the start of each group score card to provide further information to the committee regarding these targets.

5        The IPR format has changed from the previous report.  In future, the intent of the IPR is to only show reporting by exception (ie off target KPI’s).  For this report the exception report is provided along with a separate report which shows all of the on target KPIs for information.

6        Staff recommend that the committee receive this report and provide any necessary feedback. 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Interim Performance Report - Period two - 1 November 2018 to 28 February 2019” dated 19 March 2019.

 

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.

 

 

Background

7        The corporate performance framework (CPF) aligns Council’s high level direction to its activities and outcomes, and its purpose is to streamline Council planning and reporting functions. As part of the framework, Council produces an interim performance report which is undertaken three times a year – for the four month periods of July-October, November-February and March-June, with the third being produced to inform the annual report of the non-financial performance measure results. 

8        The CPF has been endorsed by Council and incorporated into the 2018-2028 Long Term Plan.  Council measures performance against internal and external targets that are clearly linked to the benefits outlined in the strategic framework and to levels of service. This set of key performance indicators (KPIs) provide a leading indicator of whether a change has occurred.

9        The intended role of the interim performance report was to provide a touch point throughout the financial year, for elected members and Council officers to monitor progress against targets and milestones. Interim reporting is a critical element of any performance monitoring framework, keeping high level performance goals relevant to daily operations and enabling early identification of potential issues.

10      The interim performance report, compiled every four months and presented to the Finance and Audit Committee, is a new report which differs from previous interim reporting, due to the following features:

·          reporting by exception – only results or performance that are outside of the expected tolerance for the period and determined by the Finance and Audit Committee should be reported to Council. Performance results which are off track (positively or negatively), and/or which may lead to a departure from Council’s preferred level of service will be highlighted in comparison to those that are on track in the interim performance report

·          reforecasting process – it is intended in the future that each interim performance by activity group report will inform and correlate to the reforecasting process required to be undertaken on the same four monthly basis

·          meaningful narrative and discussion – written commentary/narrative is a critical element of the report. Another important component related to this is for in-person attendance by activity managers at the Finance and Audit Committee meeting to discuss the results and/or performance

·          feedback loop – the subsequent interim performance report will provide detail on the progress toward corrective actions identified in the previous report, ensuring the ‘loop’ from performance data to decision-making is effectively closed.

11      In order to produce the IPR an online reporting tool called CAMMS Strategy was used. The CAMMS Strategy online tool was introduced in October 2018 to activity managers within Council, and those staff who will be inputting the information needed to complete report.  A revised training guide was also produced and meetings were held teams over January and February to update staff on changes to the system and as a refresher about the tool.

12      A summary of the Council’s overall KPI performance measures as contained in the report is below.

Issues

13      As this reporting system is relatively new, it contains some reporting gaps due to:

·          the new reporting tool has identified that five KPIs set for the 2018/2028 LTP do not have specific targets set which has caused some issues in the report, and impacts the ability of the KPI to be measured

·          an absence of threshold setting for when a measure is amber (i.e. requiring monitoring, but not immediate action) and this has resulted in reduced trend information. The absence of an ‘amber’ status has been noted by staff and a plan is in place to progress this for the future

·          where there is an ‘N/A’ present in the comments section, this signifies that no comment/data has been inputted by the reporting officer

·          some data is unavailable for the end of the reporting period as this is not available at the time of writing this report

·          the report shows only the YTD target not the annual target. In some cases these differ as the target will be measured in the final months of the financial year.

Factors to Consider

Legal and Statutory Requirements

14      There are no legal or statutory requirements for this report, however the year end (period 3) report will have information included in the non-financial performance measures in the Annual Report.

Community Views

15      Community views were sought as part of the 2018-2028 Long Term Plan (LTP) consultation process.

Costs and Funding

16      Council already uses an online software strategic reporting system known as CAMMS, therefore there is no additional cost for producing this report information.

Policy Implications

17      There are no policy implications for this report.

Analysis

Options Considered

Option 1 – receive the interim performance report.

Option 2 – do not receive the interim performance report.


 

Analysis of Options

Option 1 – receive the interim performance report

Advantages

Disadvantages

·        the committee has a clear understanding of the status of performance measures

·        the committee and staff can identify any issues as early as possible and take corrective actions as required.

·        no known disadvantages.

 

Option 2 – do not receive the interim performance report

Advantages

Disadvantages

·        no known advantages.

·        non-financial performance information (service level performance to KPIs) is not monitored and assessed as per the terms of reference of the committee

·        quality and completeness of internal reporting data is not reviewed as per the terms of reference of the committee

·        potential risks to Council are not identified and remedied as early as possible.

 

Assessment of Significance

18      This report is not considered significant under Council’s Significance and Engagement Policy.

Recommended Option

19      Staff recommend that Council considers option 1 and receives the interim performance report.

Next Steps

20      Any red status performance measures will be monitored and addressed as appropriate by their relevant activity manager whose responsibility will be to ensure that all corrective actions are implemented.  The next interim performance report will be presented to the Finance and Audit Committee in August 2019

21      The project team are working with the CAMMS team to implement ongoing improvement changes in the report formatting.

 

Attachments

a             Interim Performance report - Red traffic light exceptions report 

b             Interim performance report - Green traffic light report    

 


Finance and Audit Committee

26 March 2019

 

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26 March 2019

 

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Finance and Audit Committee

26 March 2019

 

Delegations Manual Project

Record No:             R/19/2/2715

Author:                      Carrie Adams, Intermediate Policy Analyst

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The purpose of this report is to present to the Finance and Audit Committee the draft Delegations Manual for information and to seek feedback prior to the draft manual being submitted to Council.  

Executive Summary

2        Council has been working towards the development of a manual that consolidates delegations across the organisation since early 2018.

3        Currently, delegations and terms of reference for committees of Council and community boards are contained in various documents across the organisation.  The draft Delegations Manual will provide a ‘one stop shop’ for elected representatives, staff and customers to access:

·    Council’s delegations of governance activities to Council committees and community boards

·    Council’s delegations of management activities to the chief executive

·    the chief executive’s delegations to Council staff, including the executive leadership team.

 

4        The executive leadership team at its 11 February 2019 meeting endorsed the draft Delegations Manual and resolved to recommend to Council that it adopt the draft Delegations Manual as attached.

5        Staff will request that Council revoke existing instruments of delegation and adopt the draft Delegations Manual.

6        It is recommended that formal review of the draft Delegations Manual once adopted, be undertaken in line with triennial elections.

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Delegations Manual Project” dated 26 March 2019.

 

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)           Recommends to Council that it repeal all existing instruments of delegations that currently exist.

 

e)            Recommends to Council that it adopt the draft Delegations Manual.

 

f)             Notes that the draft Delegations Manual will be reviewed after the 2019 triennial election.

 

Background

7        Council has been working towards the development of a manual that consolidates Council’s delegations since early 2018. 

8        The purpose of the Delegations Manual is to define and authorise the scope of:

·    Council’s delegations of governance activities to Council committees and community boards

·    Council’s delegations of management activities to the chief executive

·    the chief executive’s delegations to Council staff, including the executive leadership team.

9        The draft Delegations Manual provides for specific delegations relating to finance, regulatory functions and specific statutory responsibilities delegated to Council through legislation.

10      The executive leadership team at its 11 February 2019 meeting endorsed the draft Delegations Manual and resolved to recommend to Council that it adopt the draft Delegations Manual as attached.

Issues

11      To ensure the success of the implementation of the draft Delegations Manual, it is important that elected representatives and staff are involved and supportive to achieve the objectives of making and keeping this document meaningful, accurate and current. 

12      In order for the draft Delegations Manual to be an organisation wide reference document, it is necessary for Council to revoke all existing instruments of delegation when adopting the draft Delegations Manual. 

13      It is significant to note that the development of the draft Delegations Manual has provided an opportunity to make corrections and changes to some of the existing instruments of delegation which were out of date. These changes have occurred primarily in the following areas:

·    Environmental Services and Services and Assets activity areas (updating)

·    Building Act 2004 delegations (as per instrument presented for adoption to Council at its 7 February 2019 meeting)

·    finance and expenditure delegations (as per recently adopted Council Debt Recovery Policy as well as Services and Assets restructure)

·    corrections to role titles where possible throughout (including the recent Services and Assets restructure).

14      As there is currently no Delegations Manual, the process for making efficient amendments on an as needed basis will be a new initiative.  The governance and democracy team will oversee the draft Delegations Manual once adopted. The governance and democracy team is well placed to undertake this given the team’s role as a liaison between Council and staff.  Practically, this means the governance and democracy team will amend the draft Delegations Manual once adopted to:

·    give effect to any Council resolution

·    give effect to any written instruction given by the chief executive

·    make any typographical or grammatical corrections.

15      Whilst the document has been reviewed extensively, staff note that it may require amendments that will not come to light until the draft Delegations Manual is adopted and in use. In addition, once adopted, the draft Delegations Manual should be viewed as a living document that changes along with Council decision making.

16      It is recommended that the terms of reference section be reviewed after the triennial election in 2019, as there is expected to be reasonable change if the proposed new board structure is acepted through the Representative Review.

17      Going forward, formal review of the draft Delegations Manual once adopted will be undertaken in line with triennial elections.

Factors to Consider

Legal and Statutory Requirements

18      There are no specific legal or statutory requirements identified with regards to the development and adoption of the draft Delegations Manual. 

Community Views

19      Community views have not been sought in relation to the Delegations Manual project as it relates to organisation wide operational practices. It can be expected that the community would expect Council to operate in accordance with recognised good practice standards in this regard.

Costs and Funding

20      Costs associated with staff time have been met within current budgets. 

21      From a risk management perspective, having an organisation wide Delegations Manual is prudent, to ensure that the correct delegations are followed.

Policy Implications

22      There are no policy implications identified through the recommendation to adopt the draft Delegations Manual.

23      If adopted, the draft Delegations Manual will be an accessible, ‘one stop’ resource for elected representatives, staff and customers. 

Analysis

Options Considered

24      There are two options for the Finance and Audit Committee to consider:  

Option 1: Recommend to Council that it adopt the draft Delegations Manual and revoke existing delegations.

Option 2: Recommend to Council that it not adopt the draft Delegations Manual or revoke existing delegations.

Analysis of Options

Option 1 – Recommend to Council that it adopt the draft Delegations Manual and revoke existing delegations.

Advantages

Disadvantages

·        provides clarity as to delegations regarding Council activities for elected representatives, staff and customers.  

·        in line with best practice from a risk management perspective. 

·        Services and Assets restructure has highlighted the need to update delegations for this group.

·        allows six months to put Delegations Manual into practice prior to 2019 election in order to make any necessary changes.

·        terms for reference for Council committees and community boards require review after 2019 triennial election.

 

Option 2 – Recommend to Council that it not adopt the draft Delegations Manual or revoke existing delegations.

Advantages

Disadvantages

·        there are no advantages identified.

·        further delay puts at risk current risk management practice and associated operational requirements.

·        failure to have a Delegations Manual does not represent best practice.

·        will result in confusion over organisation wide delegations. 

 

Assessment of Significance

25      This recommendation is not considered significant in relation to Council’s Significance and Engagement Policy.

Recommended Option

26      It is recommended that the Finance and Audit Committee recommend to Council option 1, that it adopt the draft Delegations Manual.

Next Steps

27      The draft Delegations Manual project has highlighted that the next step is an examination of the relationship between financial delegations and the broader procurement policy and expenditure approval processes.  This is a separate piece of work related to the recommended review of the terms of reference and is already underway. 

28      Staff propose to present the draft Delegation Manual to Council for adoption at its 10 April 2019 meeting.

 

Attachments

a             DRAFT Manual of Delegations    

 


Finance and Audit Committee

26 March 2019

 

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Finance and Audit Committee

26 March 2019

 

Health and Safety Update

Record No:             R/19/3/4184

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 against 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 January 2018 to 31 December 2018 and a summary of these indicators from 1 January 2019 to 28 February 2019. 

6        There were no notable Medical Treatment Incidents (MTI) that occurred since our last reporting in December 2018.

7        In addition please find below a summary of the near miss breakdown for the 2018 year.  There was a range of near misses with near misses involving vehicles the highest recorded.  A contributing factor to this is the traffic management on Forth Street with the change from a two way to one way system with the development work being undertaken.

8        As previously advised, we have been working closely with Invercargill City Council and Calder Stewart and improvements to the traffic management is ongoing. It is great to be able to work together with other agencies to improve road safety.

9        There has been a notable improvement in traffic management in the 2019 year to date.

10      Also below is the incident reporting trends for the last four years. Incident reporting has doubled with the implementation of the Health and Safety e-learning and increased focus on building a positive health and safety culture. We envisage that this will stabilise as we continue to complete corrective actions and implement our new health and safety system.

 

 

 

 

Summary of Indicators – 1 January 2018 to 31 December 2018

 

 

Date

Total Reported Incidents

EDI - Early Discomfort Incident

NMI - Near Miss Incident

MNI - Minor No Treatment Incident

FAI - First Aid Incident

MTI - Medical Treatment Injury

LTI - Lost Time Incident

PDI - Property Damage Incident

HAZ - Hazard Report

Other (ie Medical Event/NWR)

Number of incidents investigated

Number of Corrective Actions set

Number of Corrective Actions achieved

LTI Free Days

Days Lost Time

ACC Claims

Safety Observations received

Contractors Audited

Contractors Requiring Follow up

Jan-19

5

1

0

0

1

1

0

0

2

0

5

8

6

101

0

1

3

0

0

Feb-19

3

0

0

0

1

0

0

0

2

0

2

3

3

0

0

0

0

0

0

Mar-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Apr-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Total

8

1

0

0

2

1

0

0

4

0

7

11

9

 

0

1

 3

0

0

 

 

Other Health and Safety Related initiatives

11      In August 2018 Council approved the Health and Safety plan for 2018/19.  Attached is the update to the Health and Safety Plan as of 28 February 2019.

12      As part of ensuring we met the Health and Safety Plan an operational health and safety implementation plan has been drafted.  The plan is a working document and has been created to enure that there is continued focus on improving health and safety within the organisation.  The update is below.  A number of the actions are progressing including the work on a new Health and Safety system.

 

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

14      The Health and Safety Committee met in mid-November 2018 and provided feedback and support for the health and safety training.  The Health and Safety Representatives (HSR’s) have had their roles redefined with a greater focus on communication and education around safety differently.

15      There have been a number of solutions sourced for our working alone staff.  We are working through these now with budgets and final solutions being presented to the Executive Leadership team in March 2019.

16      Significant progress has been made on identifying an appropriate health and safety system.  This is being completed in conjunction with the Human Resources Information System and payroll. 

17      The Health and Safety Plan for 2019/20 is currently being drafted and will be presented at the next Finance and Audit committee.


 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Health and Safety Update” dated 8 March 2019.

 

Attachments

a             Health and Safety Update 28 February 2019    

 


Finance and Audit Committee

26 March 2019

 

Update on Health and Safety Action Plan

28 February 2019

In July 2018, Council agreed to the Health and Safety Plan 2018/19.  Below is an update as of 28 February 2019.

Key Focus areas for H&S

Steps to complete

sponsor

complete by

update

Complete implementation of H&S Training

Development of key procedures and current process was a key focus for 2017/18.  The development of H&S e-learning modules and ensuring people are trained in what they are doing is a key focus for 2018/19.

Continue to develop education on our key H&S processes and ensure our people are trained in what we are doing.

RC

Dec 2018

Ongoing

All staff trained in the e-learning modules

Dec 2018

E-learning modules still being released.  Training will be completed by June 2019

Critical Risk

Educate and train our people on risk and hazard management.

Prioritise Critical Risks and allocate resources based on the priorities.  Complete the development of control plans, and assessment of effectiveness of the controls for the risks.

On-going monitoring and management of critical risks seen as part of the audit and assurance process.

Finalisation of the critical risk control plans (bowties) and approval from ELT sponsor.

MR

Aug 2018

Complete

Assess the effectiveness of the controls for the each of the control plans and create corrective actions for any deemed not effective.

June 2018 – June 2019

Ongoing work – will continue in 2018/2019

Monitor closing out of corrective actions in Monthly reporting.

Dec 2019

Ongoing work – will continue in 2018/2019

Implementation of a H&S system

Implement a web based Health and Safety system in line with budget and industry practice 

Project approved by Council 

DC

June 2018

Delayed – forms part of Request for Proposal for HRIS, payroll and H&S system

Request for Proposal is finalised and Distributed/Vendor system selected

Dec 2018

Significant progress been made on selection of Vendor

Implementation of new H&S System

By June 2019

Will be delayed

Wellbeing

Continue to create a proactive and structured approach to dealing with staff wellbeing.

Continue the work with becoming a Healthy Thinking Organisation

JE

Ongoing

Ongoing – Healthy Thinking training undertaken.  Additional sessions run in December 2018

 

Contractor Pre-approval

Review how we manage the pre-approval process for Contractors and implement systems to improve this.

Review how we manage the pre-approval process and recommend changes

MR

Dec 2018

Complete

Implement changes to the contractor pre-approval process based on recommendations

June 2019

Ongoing and on track

 Gap Analysis

Undertake an external gap analysis to assess our improvements and detail any areas for improvement.

Undertake an external gap analysis

SR

Feb 2019

Internal gap analysis being undertaken in March 2019

Implement improvement opportunities in the gap analysis

From Feb 2019

Ongoing

 


Finance and Audit Committee

26 March 2019

 

Monthly Financial Report - January 2019

Record No:             R/19/2/3766

Author:                      Kate Westenra, Graduate Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Summary

1.   The purpose of this report is to provide the Finance and Audit Committee with an overview of the financial results to date by the nine activity groups of Council, as well as the financial position and statement of cash flow.

2.   This report summaries Council financial results for the seven months to 31 January 2019.

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Monthly Financial Report - January 2019” dated 14 March 2019.

 

Attachments

a             Monthly Council Financial Report - January 2019    

 


Finance and Audit Committee

26 March 2019

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Finance and Audit Committee

26 March 2019

 

Forecasted Financial Position for the year ending 30 June 2019

Record No:             R/19/3/4656

Author:                      Joanie Nel, Management Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

 Purpose

1        To inform the committee of the expected year-end financial result compared to the published 2018/2019 Annual Plan and seek the committee’s recommendation to Council to approve the resulting forecasted position. 

Executive Summary

2        Forecasting the financial position for the year ended 30 June 2019 is intended to provide information about what has changed since the budget was approved, why it has occurred and what the result is expected to be at the end of the year.  In considering the final position staff consider what they planned to do in the Annual Plan, the projects carried forward from 2017/18 that were approved by Council on 25 September 2018, unbudgeted expenditure requests approved by Council during the year and the expected year end position as a result of operational decisions and information.

3       Forecasting enables the organisation to understand the anticipated year end position at all levels.  It will also assist with decisions and priorities for spending across Council.

4       The budgeted expenditure included in the Annual Plan for the 2018/2019 year was adopted in June 2018.  Therefore since this date a number of events have potentially occurred that will change the year end position.  Forecasting allows a formal process to communicate to the Executive Leadership Team (ELT), Finance and Audit Committee and Council any known or expected changes.  The net change by business units is shown in Appendix A.

5       The effect of the forecast changes on the Statement of Comprehensive Revenue and Expenditure and Statement of Financial Position is shown in Appendix B and C.

6       As part of the resolutions the Committee is asked to recommend to Council a number of unbudgeted expenditure requests that have not been advised to Council previously.  Additionally there are a number of projects that have been identified as needing to be deferred to future years.  A detailed list of these projects can be found in Appendix D.  There is also a list of projects that are to be deleted, or where a project is completed under budget, the remaining budget is to be deleted, contained in Appendix E.

7       This report is included in the Council agenda for the meeting on 10 April 2019. Council staff will update Council on any discussions and recommendations made by this committee.

 


 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Forecasted Financial Position for the year ending 30 June 2019” dated 20 March 2019.

 

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

 

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

 

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

 

e)            Recommends to Council that it approve the changes as detailed in appendix A.

 

f)             Recommends to Council that it notes the projects or partial costs of projects indicated to be deferred to future years, as detailed in appendix D.

 

g)           Recommends to Council that it approves the deletion of the following 2018-19 projects:

 

Business Unit

Project

Amount

Details

District Leadership

Project 3.3 Complaints & Compliments

$2,000

Project no longer required

Riverton

Wastewater treatment upgrade & sewer pumps

$31,728

Project for SCADA no longer required

Waiau Aparima Ward

Monkey Island Hardstand and Shelter upgrade, Gemstone Beach project

$128,000

Projects removed as requested by the Ward Committee.  Monkey Is in twice Gemstone to be considered as part of the open spaces work Council is undertaking.

Waikaia

Waikaia Depot project

$6,000

Project cancelled, no longer required.

Lumsden

Upgrade Railway Heritage Area

$7,688

Project completed, remaining budget no required.

Te Anau

Te Anau Water Park new track, Te Anau Walkway in water park, supply water to Lions Park BBQ area

$48,000

Water park track and walkway projects deleted, water supply project to Lions park BBQ area cancelled, park already has water.

Waikawa

Waikawa toilets

$1,488

Funds carried forward from 17/18 not required.

Woodlands

Woodlands Heritage orchard shelter

$3,000

Unwanted project deleted by CDA.

Lumsden

Lumsden Toilet facility upgrade

76,925

Project completed, remaining budget to be deleted

 

h)           Recommends Council approve the following unbudgeted expenditure for the 2018/19 financial year:

 

Business Unit

Expense

Amount

Funding Source

Financial Services

Increased Valuer General costs and Legal fees

 $96,181

District Operations Reserve

Knowledge Management

Increases in Software licence fees for 10 additional RM8 licences, Landonline fees for CT searches and general operational costs 

$14,000

District Operating Reserve

Around the Mountain Cycle Trail

Operational costs, maintenance, capital and final easement work that needs undertaken.

$258,466

Lottery and Government Grants, Loan and Roading reserves

Roading - Administration

Training budget not included in LTP 3% of staffing costs.

$19,500

Roading Rates Reserve

Ohai Forest

Increase in Consultants fees due to larger physical programs being undertaken than originally budget, due to a larger land preparation area.

$12,436

Forestry Reserve

Lumsden Hall

Unbudgeted Expenditure for refurbishment of kitchen and toilets at Lumsden Hall approved by the CDA.

$11,960

Lumsden Community Centre Reserve

Financial and Reserve Contributions

Edendale Primary School tennis courts , Community & Policy agreed to support this project.

$30,000

Financial & Development Contributions

Riverton Harbour

Completion of Wharf upgrade projects, Long wharf and Pleasure wharf

$16,559

Riverton Harbour General Reserve

Camping Ground - Wyndham

Wyndham Camping Ground project completed over budget

$10,891

Edendale Wyndham General Reserve

SIESA

Forecasting for budget shortfalls in Generation Maintenance, Fuel, Road Freight, Travel and Temp contractor fees

$120,100

SIESA Operation Reserve

 

 

Background

8        Forecasting enables transparency and Council to be informed of the anticipated year-end financial result. Forecasting is not intended to involve the time and effort undertaken in the annual budgeting process. 

9        Budget managers were requested to undertake forecasts for their business units where the expected overall outcome would vary from the budget in the Annual Plan by specified tolerance levels.  These net levels are set at:

-           $1,000 for Council-owned halls;

-           $1,000 to $10,000 for townships depending on their operational expenditure in the current year;

-           $10,000 for all District business units.  The maximum limit of $10,000 was set in line with the delegation held by the Chief Executive.

10      Changes due to forecasting have been included in the attachments as follows. 

·   Attachment A, provides details of changes to revenue and operating expenditure and capital

expenditure for each business unit with commentary from the budget manager.

 

·   Attachment B, shows the net effect of the changes to the Statement of Comprehensive

          Revenue and Expenditure for the year ended 30 June 2019.

 

·   Attachment C, shows the effect of changes to the Statement of Financial Position for the year

ending 30 June 2019.

 

·   Attachment D, provides details of the specific projects being deferred to future years.

Currently staff are looking to include changes to the 19/20 year in the draft annual plan for that year.

 

·   Attachment E, provides details of the specific projects being deleted.

 

 

11      A breakdown of the movement of capital projects as a result of carry forwards and forecasting for the 2018/2019 year is as follows:

Financial Activity

Amount

Capital projects as per the 2018/2019 Annual Plan

$19,916,188

Carried forward from 2017/2018

$7,078,304

October Forecasting movement

$602,265

February Forecasting movement

($7,249,871)

Expected project costs for 2018/19

$20,346,886

 

12      Major changes due to forecasting are shown below. Details can be found in Appendix A.

Revenue - Changes in revenue from the budget has increased by $495 thousand (Appendix B).

 This is principally due to the Lotteries Grant received from MBIE towards the Around the Mountain Cycle Trail project.

 

Operating Costs – Operating expenditure has increased from the budget by $566 thousand.

Major changes are:

·    Increased valuer general costs and legal fees for Financial Services of $96 thousand.

·    Increase to costs in the Around the Mountains Cycle Trail, including additional mowing, weeding and additional minor works required following the NZTA warrant of fitness, land easements and tidying up costs of $338 thousand.  This is funded from a combination of lottery funding, MBIE, loan and roading reserves.

·    An increase in the forecasted operating costs for SIESA operations, for budget shortfalls in generation maintenance, fuel, road freight, travel and temporary contractor fees, $120 thousand.

 

Capital

·    The forecast capital expenditure has decreased by $7.2 million due to the deferral of a number of projects. Details can be found in Appendix A.

     

13      The total forecast net deficit for the year is $4.5 million which is $210 thousand less than the original Annual Plan budget.

14      The roading team indicated that apart from the training forecasted, no further adjustment is required to the roading programme with planned projects being on target for year end budgets.

Issues

15      Forecasting is part of the ongoing process to encourage better financial behaviours across the organisation.  This includes early identification of projects that will not be completed by the end of the current financial year.  The intention is that projects indicated to be completed in 2019/20 will be included in the 2019/20 Annual Plan.  Additionally, any changes at year end will be included as part of the carry forward report to Council.

16      Forecasting also provides an opportunity to approve anticipated unbudgeted expenditure during the year.  This should reduce the number of individual requests needed to be handled by Council.  Council will still need to approve some expenditure items separately where the expenditure is large enough to require individual approval or where unbudgeted expenditure has been identified between the two rounds of forecasting. 

17      In 2017/18, $19 million of projects were moved to 2018/19 as part of the Annual Plan consultation process.  An additional $7 million was carried forward into 2018/19 at year end as a carry forward.  During the October forecasting round, $3.4 million was proposed to be deferred to the 2019-2020 Annual Plan.  During this forecasting round, and additional $7.2 million is proposed to be deferred to the 2019-2020 Annual Plan. (Appendix D).  Council staff are currently reviewing the planned works for the 2019-20 year to ensure that the programme is realistic.

Factors to Consider

Legal and Statutory Requirements

18      There are no legal or statutory requirements in regards to forecasting Council’s end of year position.

Community Views

19      Consultation was held with the community for the expenditure included in the 2018/2019 budget as part of the Annual Plan process and estimates meetings.

20      Changes proposed to capital and operational expenditure for townships will have been or will be reported to the relevant Community Board or Community Development Area Subcommittee.  There are no new significant projects planned for 2018/19.

Costs and Funding

21      Forecasting completed shows that overall net operating income and expenditure is expected to decrease by $70 thousand.  This is shown by business unit in Attachment A.

22      Overall net Capital Expenditure is expected to decrease by $7.2 million.  Council is requested to approve the expenditure, not included in resolutions, shown in Attachment A.

23      The impact on the budgeted Statement of Comprehensive Revenue and Expenditure for 2018/2019 is a net operating deficit of $210 thousand from the original Annual Plan as shown in Attachment B.

Policy Implications

24      Council staff must ensure that all expenditure is carried out within approved delegations. 
The current financial delegations only allow the Chief Executive to approve unbudgeted expenditure up to $10,000. 

Analysis of Options

The options are to approve or not to approve, in full or part, the forecasted adjustments to the expenditure in the Annual Plan.

Option 1 - Approve the changes in income and expenditure in Attachment A

Advantages

Disadvantages

·        The Committee and Council is informed of anticipated changes from the Annual Plan for 2018/2019.

·        Council has had the opportunity to prioritise expenditure to be incurred in the current financial year.

·        Council staff are able to purchase services as required to provide services to the community in the most appropriate manner.

·        Deferral of projects which are going to be completed later and/or costing more than previously indicated.

 

Option 2 - Approve the forecast changes recommended 

Advantages

Disadvantages

·        Council is informed of anticipated changes from the Annual Plan for 2018/2019.

·        Council has had the opportunity to prioritise expenditure to be incurred in the current financial year

·        Council considers that the additional expenditure is not a current priority and does not need to be incurred.

·        Processes may be delayed where further approval needs to be sought from Council before committing to additional expenditure.

Option 3 – Do not approve, in part or in full, the forecast changes recommended 

Advantages

Disadvantages

·        Council is informed of anticipated changes from the Annual Plan for 2018/2019.

·        Council has had the opportunity to prioritise expenditure to be incurred in the current financial year

·        Processes may be delayed where further approval needs to be sought from Council before committing to additional expenditure.

 

Assessment of Significance

The content of this report is not deemed significant under the Significance and Engagement Policy. 

Recommended Option

25      Option 1 to receive the forecasted adjustments to the financial statements and approve the expenditure in Attachment A not included in the Annual Plan for 2018/2019.

Next Steps

26      To advise managers of the approval of unbudgeted expenditure for the 2018/2019 financial year.

27      Ensure that deferred projects are included in the proposed 2019-2020 Annual Plan.

 

Attachments

a             Forecasting Financial Report - February 2019 Attachment A

b             Forecasting Financial Report - February 2019 - Attachment B

c             Forecasting Financial Report - February 2019 - Attachment C

d            Forecasting Financial Report - February 2019 - Attachment D

e             Forecasting Financial Report - February 2019 - Attachment E    

 


Finance and Audit Committee

26 March 2019

 


 


 


Finance and Audit Committee

26 March 2019

 

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Finance and Audit Committee

26 March 2019

 

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26 March 2019

 

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Finance and Audit Committee

26 March 2019

 

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Finance and Audit Committee

26 March 2019

 

Annual Report Audit Plan for year ending 30 June 2019

Record No:             R/19/3/4188

Author:                      Sheree Marrah, Financial Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1       The purpose of this report is to provide the Committee with a copy of the Annual Report Audit Plan proposed by Audit NZ for the year ending 30 June 2019 and provide some commentary around the annual report process.

Executive Summary

2        Audit New Zealand has provided Council with an Audit Plan for the Annual Report for the year ending 30 June 2019.

3        This report provides a summary of the Audit Plan for the Council.  A copy of this plan is attached to this report for your information. This Audit Plan outlines the audit risks and issues, audit process, reporting protocols and logistics relating to the upcoming audit.

4        Please note Council’s former audit director Ian Lothian, has recently left Audit NZ and has been replaced by Dereck Ollsson, an Associate Director of Audit NZ.  Derek will be present at the meeting to introduce himself, discuss the plan in detail and answer any questions.

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Annual Report Audit Plan for year ending 30 June 2019” dated 19 March 2019.

 

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

 

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

 

d)           Accepts the Audit Plan as set out in the attached document.

 

Background

5        The purpose of this report is to provide an overall summary of the Audit Plan, received from Audit New Zealand, for the year ending 30 June 2019. 


 

6        The four key areas discussed in the plan are:

·    Audit risks and issues;

·    Audit NZ’s audit process;

·    Reporting protocols; and

·    Audit logistics.

7        To work through the report in more detail, Audit NZ Associate Director, Dereck Ollsson will also be present at the meeting to answer any questions and provide further clarity.

8        To ensure that Council is able to meet the timelines indicated in this plan, Council staff are developing a more comprehensive plan of the steps need to be completed.  The timelines indicated have changed from prior years to allow Audit NZ to undertake an Engagement Quality Control Review prior to final audit sign off being provided.  As a result the Audit NZ team will commence their audit field work on 26 August, which is 1 week earlier than usual.  Audit NZ will commence their fieldwork without the draft Annual Report as it will not have been approved for release by the Committee by this date.  Council staff are confident in meeting the dates proposed.

9        Consistent with 2018, Council staff are planning to have two Finance and Audit Committee meetings in the lead up to the adoption of the Annual Report.  The first on the 29 August 2019, when the Committee will receive the draft Annual Report for review, discussion and approval for release to Audit NZ on the 2 September 2019.  The second meeting planned for 23 September 2019 will be to receive the final Annual Report (subject to any final adjustments leading up to approval), for recommendation to adopt by Council on 27 September 2019.

 

Audit risks and issues

Focus areas

10      Specific details of the risks/issues are included in the Audit Plan (Attachment A).  These risks and issues are primarily the same as the previous year. Bribery and corruption is a new area of interest for Audit NZ in 2019.

11      The key areas are:

·    Revaluation of property, plant and equipment.  Council re-values its infrastructure assets on an annual basis.  These revaluations are considered a significant risk as they involve the use of complex valuation methods as well as significant judgements and assumptions.

·    Valuation of Forestry Assets.  Forestry valuations are conducted annually to ensure values included in the financial statements are reflective of the assets fair value.

·    The risk of management override of internal controls.  As there is an inherent risk in every organisation of fraud resulting from management override of internal controls, this is considered a risk on all audits.


 

Areas of interest for all Local Authorities

12      In addition to the Council specific issues discussed above, Audit NZ will also focus on related parties and conflict of interests, the control environment (probity and transparency), sensitive expenditure, project management (Council has several high value or high profile capital projects underway), performance reporting, rates, group consolidation, bribery and corruption and fraud risk.

Accounting for Council’s entities

13      Further to the 14 December 2018 Finance and Audit Committee meeting, Council staff provided Audit NZ with a copy of the report and associated supporting information outlining Council’s position on how it should account for its various associated entities.  To date no feedback from Audit NZ has been received.  The only area of difference between Council’s proposed approach and Audit NZ’s assessment is in relation to accounting for Milford Community Trust.  Council staff have been advised that Audit NZ have requested a review of Council’s position on this matter by their technical team.

The audit process

14      This section of the plan provides further detail in relation to: the various stages of the Annual Report audit, materiality, misstatements, professional judgement and professional scepticism, compliance with laws and regulations, as well as wider public sector considerations.

Reporting protocols

15      Audit NZ commits to communicating with management and Council and will maintain ongoing, proactive discussion of issues as and when they arise to ensure there are “no surprises”.

16      Draft management reports will be provided to Council for discussion and clearance purposes.  Management are requested to provide their comments on any draft within 10 working days to enable timely reporting.


 

Audit logistics

17      Senior audit team members are Dereck Ollsson (Director), Debbie Perera (Engagement Quality Control Review director), Jenna Hills (Audit Manager) and Amy Radka (Audit Supervisor).

18     Proposed timeline for the audit is:

Date

Process

8 April 2019

Interim audit begins, anticipated completion 18 April 2019.

3 May 2019

Draft interim management report issued.

3 May 2019

Audit requirements listing provided to Council for final audit.

31 May 2019

Final interim management report issued to Council.

26 August 2019

Final audit begins.  Trial balance and working papers to be available.

2 September 2019

Draft Annual Report available for audit (including notes to the financial statements) with actual year-end figures and including any Chair’s and Chief Executive’s overview or reports.

13 September 2019

Final audit adjustments to be provided to Council. 

16 September 2019

Final Annual Report to be provided to Audit NZ updated with all agreed amendments.

20 September 2019

Draft final management report issued to Council (morning).

23 September 2019

Verbal audit clearance provided to Council.

23 September 2019

Final management report issued to Council (afternoon).

27 September 2019

Audit opinion issued.

Issues

19     Council staff have no issues with the content of the Audit Plan.

20     The purpose of an audit is to provide an objective independent examination of the financial statements for Council and the Committee.  This increases the value and credibility of the financial statements produced by management thereby increasing user confidence in the financial statements.  As such, it is in Council’s interest for Audit NZ to define the audit programme of work.

21     As part of drafting the Audit Plan, Audit NZ sought feedback on the draft plan from Council staff.  The feedback provided was is in regards to the appropriateness of the timelines, as a result of the additional time required by Audit NZ to undertake their EQCR processes. 

Factors to Consider

Legal and Statutory Requirements

22     Section 98(1) of the Local Government Act 2002 requires the Council to prepare and adopt an Annual Report each financial year.  Section 99(1) requires the Annual Report to include an Auditor’s Report and this is required to be adopted by 31 October 2019.

23     In accordance with Section 14(1) of the Public Audit Act 2001, the Council’s Annual Report must be audited by the Office of the Auditor-General.  Audit New Zealand is the authorised audit service provider on behalf of the Auditor-General.

Community Views

24     As the Annual Report is a report on activities undertaken during the year, no consultation is required.

Policy Implications

25     There are no policy implications 

Analysis of Options

Option 1 - Accept the Audit Plan as provided

Advantages

Disadvantages

·        Allows the Annual Report process to continue as proposed.

·      Should the Committee not agree or want further aspects incorporated into the plan, there would be a delay in finalising the plan.

 

 

 

Option 2 - Request clarification or inclusion of any issue that Committee wants included in the Audit Plan from Audit NZ.

Advantages

Disadvantages

·        The Committee is able to seek the clarification it requires or discuss the inclusion of any matters it would like incorporated into the audit.

·      Could delay the audit process if the Committee and Audit New Zealand cannot agree to this plan.

 


 

Assessment of Significance

26     The audit of the Annual Report is not considered significant in terms of Council’s Significance Policy.

Recommended Option

27     Option 1 - Accept the Audit Plan as provided.

Next Steps

28     Council staff will work with Audit New Zealand to ensure that all necessary work is completed within the required timeframes to enable the Annual Report to be adopted at the meeting on
27 September 2019.

 

Attachments

a             Audit NZ - Audit Plan for the year ending 30 June 2019    

 


Finance and Audit Committee

26 March 2019

 

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Finance and Audit Committee

26 March 2019

 

Internal Auditor Appointment

Record No:             R/19/3/4988

Author:                      Anne Robson, Chief Financial Officer

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

 

Background

1        At the Finance and Audit committee (the committee) December 2018 meeting, the committee agreed to release to the market a request for proposal for internal audit services to assist it with meeting its responsibilities under its terms of reference.

2        The request for proposal set out the terms of the engagement and also outlined the services Council requires from the internal audit provider.

Process to date

3        After releasing the request for proposal to the market and receiving proposals from potential providers, the chairman of the committee, the independent member and the chief financial officer (evaluating team), evaluated the proposals received and interviewed three applicants.

4        The calibre of all three candidates was very high.  The evaluating team noted that any of the candidates could have completed the work required and they thanked each for their application and time taken to both complete their proposals and present.

5        The evaluation process concluded in February with the successful provider being Deloitte. The engagement partner is David Seath, who the committee will remember from the fraud assessment audit that he presented to the committee in June 2018.  The three year contract, with a further right of two years at the committee’s discretion, is valued at $30,000 plus GST per annum, in line with Councils budget for the year ended 30 June 2020.

6        The contract for services is currently being prepared and will be signed in due course. 

 

Next steps

7        As noted in the request for proposal, the first step will be establishing in conjunction with the committee a programme of works to be delivered over the term of the contract.  It is proposed that the programme be developed over the coming three months and be presented to the committee meeting in June 2019 for discussion and approval.  In developing the audit programme, Deloitte have proposed the following approach

-     Discovery, Understand the business further from a variety of sources, review risk data and accounts.

-     Engagement – Interviews with senior staff and the chair of Finance & Audit.

-     Strawman – Develop a strawman for discussion with senior staff and the chair of Finance and Audit.

-     Presentation – To the Finance & Audit Committee.

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Internal Auditor Appointment” dated 19 March 2019.

 

 

Attachments

There are no attachments for this report. 

 


Finance and Audit Committee

26 March 2019

 

Finance & Audit Committee Work plan for the year ended 30 June 2020

Record No:             R/19/3/4985

Author:                      Anne Robson, Chief Financial Officer

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

 

Background

1        The purpose of preparing a draft work plan is to get the committees discussion and agreement as to the agenda items it expects to see during the year to 30 June 2020.  This has been done to ensure that the reports staff are preparing are meeting the expectations of the committee and also allowing staff to plan for and ensure that they are delivering the appropriate reports.

2        In preparing this draft work plan, the meeting adjusted agreed workplan to the 30 June 2019 was used as the base document.  The plan to the 30 June 2019 was based on discussions with the chairman of the Finance and Audit committee, the independent member and referenced back to the Finance and Audit Committee terms of reference.

3        The adoption of the work plan does not preclude the Committee or staff from including any other additional reports as and when required and it is expected that over the coming year this work plan will be refined further.

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Finance & Audit Committee Work plan for the year ended 30 June 2020” dated 18 March 2019.

 

b)           Adopts the Finance and Audit Committee Work plan for the year ended 30 June 2020.

 

 

Attachments

a             Finance & Audit work plan to 30 June 2020    

 


Finance and Audit Committee

26 March 2019

 

  

 


Finance and Audit Committee

26 March 2019

 

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 - March 2019

C8.2 Fraud Risk Assessment Actions

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 - March 2019

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.

Fraud Risk Assessment Actions

s7(2)(f)(ii) - The withholding of the information is necessary to maintain the effective conduct of public affairs through the protection of such members, officers, employees and persons from improper pressure or harassment.

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.