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

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 18 June 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

18 June 2019

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Procedural

1             Apologies                                                                                                                                                                9

2             Leave of absence                                                                                                                                                9

3             Conflict of Interest                                                                                                                                             9

4             Public Forum                                                                                                                                                         9

5             Extraordinary/Urgent Items                                                                                                                        9

6             Confirmation of Minutes                                                                                                                               9

Reports

7.1         Finance and Audit Committee work plan up to 30 June 2019                                               15

7.2         Health and Safety Update                                                                                                                           19

7.3         Draft Health and Safety Plan for 2019/20                                                                                          23

7.4         Approval for purchase of a Health and Safety reporting system                                       31

7.5         Update on the risk management framework implementation, the quarterly risk management reporting process and the associated risk register development.    37

7.6         Monthly Financial Report - April 2019                                                                                                 41

7.7         Draft Annual Plan 2019/2020                                                                                                                    61

7.8         Annual Report 2018/2019 - Key dates                                                                                               213

7.9         Follow up - Accounting Position Paper                                                                                           219

7.10       Accounting Policies for the year ended 30 June 2019                                                             225

7.11       Interim Management Report from Audit New Zealand for the year ended 30 June 2019                                                                                                                                                                                  243

7.12       Draft Insurance Policy                                                                                                                                279   


 

Public Excluded

Procedural motion to exclude the public                                                                                                       297

C8.1      Annual Insurance Renewal                                                                                                                      299

C8.2      Milford Opportunities Project - funding application                                                              377

C8.3      Stewart Island/Rakiura Wind Project - funding application                                                463

C8.4      Pyramid Bridge Tender Evaluation Outcome                                                                              559  

 


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, 05 June 2019


 

Finance and Audit Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Finance and Audit Committee held in the Council Chamber, 15 Forth Street, Invercargill on Wednesday, 5 June 2019 at 8.01am to 10.13am (8.03am – 9.41am, 9.58am - 10.13am PE).

 

present

Chairperson

Ebel Kremer

 

Mayor Gary Tong

Councillors

John Douglas

 

Bruce Robertson – external member (via telephone) (8.01am – 9.41am)

 

APOLOGIES

Councillor Duffy

 

 

IN ATTENDANCE

Councillor Baird

Councillor Dillon

Councillor Frazer

Councillor Harpur

Councillor Keast

Councillor Paterson

Councillor Perham (8.29am – 10.13am)

Chief Executive

Steve Ruru

Group Manager, Services and Assets

Matt Russell

Group Manager, Community and Futures

Rex Capil

Chief Financial Officer

Anne Robson

Governance and Democracy Manager

Clare Sullivan

Communications Manager

Louise Pagan

Committee Advisor

Fiona Dunlop

 


1             Apologies

 

There was an apology from Councillor Duffy.

 

Moved Chairperson Kremer, seconded Cr Douglas and resolved:

That Council accept the apology.

 

 

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

 

Councillor Kremer advised that there is a late item for consideration at the meeting which is item C7.2 WasteNet Recommendation to Award Recycling Contract.  The item was not circulated with the agenda as the information to be included in the report was not available to the officers when the report was due for circulation with the agenda.

 

The item cannot be delayed until a subsequent meeting as the awarding of the contract needs to be resolved before 30 June 2019.

 

Resolution

Moved Chairperson Kremer, seconded Mayor Tong  and resolved:

That the Finance and Audit Committee consider the late item C7.2 WasteNet Recommendation to Award Recycling Contract.

 

6             Confirmation of Minutes

 

Resolution

Moved Chairperson Kremer, seconded Mayor Tong and resolved:

That the Finance and Audit Committee confirms the minutes of the meeting held on 26 March 2019 as true and correct record of that meeting.

 

 

Public Excluded

 

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.

C7.1 Te Anau Wastewater Upgrade – Recommendation to Award Pipeline Construction Project

C7.2 WasteNet Recommendation to Award Recycling Contract

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

 

Te Anau Wastewater Upgrade – Recommendation to Award Pipeline Construction Project

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.

 

WasteNet Recommendation to Award Recycling Contract

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, Communications Manager, Governance and Democracy Manager and Committee Advisor be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the items C7.1 Te Anau Wastewater Upgrade – Recommendation to Award Pipeline Construction Project and C7.2 WasteNet Recommendation to Award Recycling Contract. This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to those matters because of their knowledge on the issues discussed and meeting procedure.

 

That the Strategic Manager Water and Waste – Ian Evans, Commercial Infrastructure Manager – Dylan Rabbidge and Management Accountant – Susan McNamara be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the items C7.1 Te Anau Wastewater Upgrade – Recommendation to Award Pipeline Construction Project and C7.2 WasteNet Recommendation to Award Recycling Contract. 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 Invercargill City Council – Director, Works and Services – Cameron McIntosh, Invercargill City Council - Senior Waste Officer – Donna Peterson and Invercargill City Council - Drainage and Solid Waste Manager – Malcolm Loan be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the items C7.2 WasteNet Recommendation to Award Recycling Contract. 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 8.03am.

 

(Councillor Perham joined the meeting at 8.29am.)

 

The meeting adjourned at 9.41am and reconvened at 9.58am.

 

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

 

 

The meeting concluded at 10.13am.                    CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Finance and Audit Committee HELD ON WEDNESDAY 5 JUNE 2019.

 

 

 

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

 

 

 

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

 


Finance and Audit Committee

18 June 2019

 

Finance and Audit Committee work plan up to 30 June 2019

Record No:             R/19/6/10765

Author:                      Anne Robson, Chief Financial Officer

Approved by:         Anne Robson, Chief Financial Officer

 

  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 committee’s 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        All the reports indicated in this plan for this meeting date are presented in this agenda except; 

-     the risk report which has been replaced with an update on the risk management framework implementation, quarterly risk management reporting process and the associated risk register development.

-     the property assets held and their purpose, which will be presented at the next committee meeting.

5        In addition to the reports noted in the timetable, this agenda also includes a report on the purchase of a health and safety reporting system, draft health and safety plan 2019/20, Milford opportunities project funding application, Stewart Island/Rakiura wind project – funding application and an update on the Council’s accounting entities position paper. 

6        Council staff are in the process of finalising back to the committee, the risk analysis the committee has requested in regards to the fraud system report that it left lying on the table at the last Finance and Audit Committee meeting.  This will come to the next committee meeting.

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Finance and Audit Committee work plan up to 30 June 2019” dated 11 June 2019.

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

 

Attachments

a             Finace and Audit Committee Workplan to 30 June 2019 (18 June Meeting)    

 


Finance and Audit Committee

18 June 2019

 


 


Finance and Audit Committee

18 June 2019

 

Health and Safety Update

Record No:             R/19/5/9676

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        A summary of these indicators for the year from 1 January 2019 to 30 April 2019 is below. 

6        There are no notable Medical Treatment Incidents (MTI) for February, March and April 2019.  Near miss reports have increased for the April month which is positive.

7        In addition please find below a summary of the near miss breakdown for year to date.  There is nothing of note here.

8        In mid May, a decision to close the Winton Library.  Testing was commissioned at the beginning of May after staff complained of smells and dampness along with increased levels of allergies.  After initial testing the results came back with a recommendation to close the office because of the high level of airborne spores and fungal contamination. Further investigations are underway to determine the extent of the issues.

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Indicators – 1 January 2018 to 30 April 2019

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

73

0

1

3

0

0

Feb-19

3

0

0

0

1

0

0

0

2

0

2

3

3

101

0

0

0

0

0

Mar-19

6

0

2

0

0

0

0

1

3

0

5

6

6

137

0

0

 6

3

1

Apr-19

10

0

5

1

0

0

0

0

4

0

7

9

9

162

0

0

 0

0

0

May-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Jun-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Jul-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Aug-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Sep-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Oct-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Nov-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Dec-19

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 0

0

0

Total

24

1

7

1

2

1

0

1

11

0

19

26

24

 

0

1

 9

3

1

 

 

 

 

Other Health and Safety Related initiatives

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

10      The Health and Safety Committee met on 2 April 2019.  The new system of nominating committee members resulted in good representation from throughout the organisation.  The Committee also changed its name to Health, Safety and Wellbeing committee to reflect a greater focus on staff wellbeing.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.

11      The Health and Safety Plan for 2019/20 is currently in draft and will be presented at the Finance and Audit committee.

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Health and Safety Update” dated 10 June 2019.

 

Attachments

There are no attachments for this report.  

 


Finance and Audit Committee

18 June 2019

 

Draft Health and Safety Plan for 2019/20

Record No:             R/19/5/9689

Author:                      Janet Ellis, People and Capability Manager

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To seek approval for the draft Health and Safety Plan 2019/2020 to be presented to Council for formal approval.

Executive Summary

2        Southland District Council has an obligation to manage the health and safety of workers.  To be able to do this Council needs to continue on its journey with improving the focus on health and safety in the coming year.

3        A draft Health and Safety Plan for 2019/20 has been drafted which contains the proposed objectives for the year ahead. The plan is being presented to the Committee for their endorsement prior to seeking formal approval from Council.

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Draft Health and Safety Plan for 2019/20” dated 10 June 2019.

 

b)           Determines that this matter or decision be recognised 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 approves the Health and Safety Plan for 2019/2020.

 

Background

4        In 2018/19 ongoing progress was made on health, safety and wellness within Council including the appointment of a health, safety and wellbeing advisor, development of both leading and lagging indicators, improved contractor approval process, ongoing development of health and safety training, continued work on critical risk control plans and recommendations on a health and safety system.

5        An update on the Health and Safety Plan as of 30 May 2019 is attached for the Finance and Audit Committee’s information.  The critical control plan work is proposed to continue into 2019/20 along with the training on the procedures and the implementation of the health and safety system.

6        In 2017 our progress was benchmarked and reviewed by Simpson and Grierson and it is proposed that we will continue to use this to focus and inform our actions for the 2019/20 year. 

7        A Health and Safety Plan for 2019/2020 has been drafted and is attached (Attachment A) for the Committee’s consideration.

8        The plan contains a review of previous performance and objectives and spells out proposed improvement measures and targets.  It identifies key elements to deliver improvement and allocates sponsors to ensure momentum is maintained.

Factors to Consider

Legal and Statutory Requirements

9        Council has a legislative obligation to manage the health and safety of workers.

10      The Health and Safety Plan continues the focus on a risk based approach to managing health and safety based within its undertakings.

Costs and Funding

11      There will be ongoing health and safety costs with the implementation of this plan.  Current known costs have been budgeted in the Long Term Plan.  Both the Finance and Audit Committee and Council in March 2018 endorsed the continued spending on health and safety to ensure our staff get home safe every day.

Policy Implications

12      The current Health and Safety Policy will need to be amended following finalisation of the Plan.

Analysis

Options Considered

13      The options considered are to recommend to Council for the approval of the Health and Safety Plan as presented (Option 1), recommend them subject to some minor amendments (Option 2) or Do Nothing (Option 3).

Analysis of Options

Option 1 – Agree to the Draft Health and Safety Plan 2019/2020

Advantages

Disadvantages

·      Improvement of health and safety culture

·      Illustration that Council and ELT are committed to caring for the wellbeing and safety of our people

·      Decline in the number of injuries

·      Meet legislative requirements.

·      Possible additional financial implications

 

 

Option 2 – Modifies the Draft Health and Safety Plan 2019/2020

Advantages

Disadvantages

•    Save some initial costs in the short term

·      No clear guidelines

·      Health, safety and wellbeing of our people in jeopardy

·      May not be consistent with legislative obligations.

 

Option 3 – Do Nothing

Advantages

Disadvantages

·      Avoids short term cost implications

·      Inconsistency in procedures

·      No clear guidelines

·      Health, safety and wellbeing of our people in jeopardy

·      Not consistent with legislative obligations

 

Assessment of Significance

14      The matter being considered is of an administrative matter and hence is not considered to be significant in terms of section 76 of the Local Government Act 2002.

Recommended Option

15      Agrees to recommend to Council adoption of the draft Health and Safety Plan for 2019/20.

Next Steps

16      Seek final approval of the plan from Council and continue working on the execution of the plan.

 

Attachments

a             Draft Health and Safety Plan 2019/2020

b             Update on Health and Safety Plan - 30 May 2019    

 



Finance and Audit Committee

18 June 2019

 

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Finance and Audit Committee

18 June 2019

 

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Finance and Audit Committee

18 June 2019

 

Approval for purchase of a Health and Safety reporting system

Record No:             R/19/4/7380

Author:                      Janet Ellis, People and Capability Manager

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The purpose of this report is to seek approval for the purchase of the Assura Software Health and Safety System.

Executive Summary

2        Currently, Council does not have a computerised health and safety system.

3        Over the last two years the Health and Safety Plan has provided for the implementation of a health and safety system to assist with achieving compliance with the Health and Safety legislation.

4        In October 2018, Council released a Request for Proposal (RFP) seeking market information about potential solutions and suppliers.

5        The RFP requested information for a new Human Resources Information System and Payroll as well.  This report only relates to the purchase of a health and safety system. 

6        Following the RFP process, Council staff recommended to Finance and Audit in December 2018, and Finance and Audit subsequently agreed, to accept two non-conforming responses as they wanted to have direct discussions with these vendors. Assura was one of these vendors.

7        Discussions have now occurred and following discussions with one vendor, Assura Software, staff visited two different councils seeking their feedback on this system.  The feedback was positive and it is now proposed that Council progress with implementation of the Assura Software Health and Safety system.

8        The Health and Safety system will provide Council with a simple and intuitive system that will allow us not only to comply with the Health and Safety legislation, but allow us to continue to build a proactive and engaging health and safety culture.

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Approval for purchase of a Health and Safety reporting system” dated 10 June 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)           Approves the purchase of the Assura Health and Safety system and agrees to the costs of the ongoing licence and one-off implementation fee.

 

Background

9        Currently, Council does not have a computerised health and safety system.  The current system is paper based with the use of excel spreadsheets and paper forms for reporting.

10      In the 2017/18 and the 2018/19 Health and Safety Plans, approved by Council the implementation of a health and safety system was regarded as a priority.

11      In October 2018, Council released a Request for Proposal (RFP) which was completed to provide Council with accurate market information about potential solutions and suppliers.

12      Council in the RFP stated that “Council is looking for a flexible, fit-for-purpose and future proof solution.  We want a system that will engage and empower our people and an interface that is easy to use and intuitive.  Ongoing maintenance of the proposed solution should be kept to a minimum”. It was envisaged that the Health and Safety platform would be progressive, proven, agile and formulated on best practice industry standards.

13      The RFP including requesting information for a new Human Resources Information System and Payroll as well.  This report relates only to the purchase of a health and safety system as ongoing work on implementation and costs for the other systems is continuing. 

14      Assura had scored very well on the evaluations completed by staff.  Evaluation criteria included the product, pricing, implantation, service, support and training and the vendor. 

15      Following completion of the evaluation process further discussions were held with Assura Software and staff have also visited two councils in the North Island that have Assura as their health and safety platform, Hutt City Council and Napier City Council.  Both councils found the system easy to use, Napier in particular found the system to be excellent.  

16      In mid April 2019 a workshop was held with Assura, the business solutions team and people and capability staff.  The aim of the workshop was to finalise anything that would be needed to take into consideration for the implementation of the system and for the consultant to run through a very detailed analysis of the current system.

17      Following this workshop, Assura updated their pricing.  Updated pricing included a per annum cost of $9,340.50 and a one off implementation cost of $15,800.00.  Costs do not include staff time, disbursements and one-off costs for designing and implementing customised reporting. The costs of this system are significantly less than other health and safety systems reviewed. 

18      The system includes drop down lists, tick boxes and logical step-by-step processes that make it easy for staff, leaders and our contract managers to take an active role in the maintenance of a safe and healthy workplace.  The system has strong configuration potential and is easily updated when new health and safety risks are known and new corrective actions are required.  Audits can be tracked and reports and dashboards are easily accessible.

19      The choice of an externally hosted web-based application meets the requirement to provide secure, modern software products that can be used anywhere, are mobile friendly with ongoing support.

20      It is envisaged that if the purchase of the health and safety system is approved by the Finance and Audit committee the implementation of the system would occur over a six month period.  All staff would be trained on logging an incident into the system and then team leaders and contract managers would be trained on a staggered basis with the areas that have the greatest risks first.  Implementation would be slow and steady with leaders and staff learning as we go.

21      This health and safety system will provide Council with a simple and intuitive system that will allow Council to not only comply with the Health and Safety legislation but allow us to continue to build a proactive and engaging health and safety culture.

Factors to Consider

Legal and Statutory Requirements

22      The Health and Safety legislation (The Health and Safety at Work Act 2015) and related regulations apply to employees and contractors.  The act requires that workers are given the highest level of protections from workplace health and safety risks, so far as is reasonably practicable.

Community Views

23      No community views have been sought on this issue.

Costs and Funding

24      Assura Software health and safety licence is $9,340.50 per annum for a cloud based system.

25      Implementation estimate of $15,800.00.  This cost does not include staff time costs, any allowance for customised reporting and disbursements for consultants.

26      This has been budgeted as part of the core systems budgeted costs as per the Long Term Plan and ongoing licence costs as part of Information Management budgets.

Policy Implications

27      The objectives under Council’s procurement policy have been met in the process of selecting this vendor, including ensuring purchases are made in an open and fair and transparent manner, that the services deliver best value for money and that there is open and effective competition.

Analysis

Options Considered

28      The three options considered were the purchase of Assura Software health and safety system, the purchase of alternative health and safety system or not to purchase a health and safety system.

Analysis of Options

Option 1 – Approve the purchase of the Assura Software Health and Safety System

Advantages

Disadvantages

·        Cost effective health and safety system

·        The choice of an externally hosted web-based application ensures a secure, modern product that can be used anywhere.

·        There has been a considerable amount of research and preparation completed for the implementation of this system

·        System will be health and safety legislation compliant

·        System will allow Council to continue to build a proactive and engaging health and safety culture

·        Fit for purpose and future proofed solution

·        Interface that is easy to use and intuitive

·        Eliminates the need for manual workarounds and multiple data inputs

·        If the committee has significantly different views on the purchase of a health and safety system they can be incorporated

 

Option 2 – Purchase an alternative health and safety system

Advantages

Disadvantages

·        If the committee has significantly different views on the purchase of a health and safety system they can be incorporated

·        Slows down the process of implementing a health and safety system

·        May not get all of the features of the system proposed

·        Will probably mean additional costs incurred including cost of systems

 

Option 3 – Do not purchase a health and safety system

Advantages

Disadvantages

·        If the committee has significantly different views on the purchase of a health and safety system they can be incorporated

·        Current paper based system overly complicated and restrictive

·        Current system inhibits the ability to build a proactive and engaging health and safety culture

·        Current paper based system susceptible to human errors

·        Current system not fit-for-purpose and future proof

·        There is no interface and it is not intuitive

 

Assessment of Significance

29      This matter is not considered significant under Council’s significance and engagement policy.

Recommended Option

30      Option One – approve the purchase of the Assura Software health and safety system

Next Steps

31      If approved, enter into a contract of service and begin the implementation of the system.

 

Attachments

There are no attachments for this report. 

 


Finance and Audit Committee

18 June 2019

 

Update on the risk management framework implementation, the quarterly risk management reporting process and the associated risk register development.

Record No:             R/19/4/6051

Author:                      Jane Edwards, Policy Analyst

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The purpose of this report is to provide an update to the Finance and Audit Committee on the implementation of the Risk Management Framework, the quarterly risk management reporting process and associated risk register development.

Executive Summary

2        A risk management framework was adopted by Council in February 2019. The framework supports risk thinking across Council so that risk can be understood, planned for and mitigated across all levels and activities.

3        Council’s priority strategic and corporate risks were identified and endorsed in February 2019 and these will form the basis of the Finance and Audit Committee quarterly risk report including the risk register.

4        It is intended that the executive leadership team (ELT) will review the status of the ten primary strategic and corporate risks, and any emerging operational risks, on a quarterly basis and this report will then be presented to the Finance and Audit Committee for consideration. Following feedback from the Finance and Audit Committee the quarterly risk management report and associated risk register will be reported to the next Council meeting.

5        At a workshop on 6 May 2019, the ELT made the decision to undertake further work in developing the quarterly risk reporting process and the associated risk register. Therefore it was decided not to provide an update of the previous risk register for the current June quarter as this risk register has been replaced following the work undertaken as part of the risk management framework development and its subsequent adoption by Council.

6        In undertaking further work to progress the implementation of the risk management framework and to operationalise it, the ELT identified the need for further time to develop the approach and give greater consideration to the development of the more detailed narrative associated with the status of each of the ten primary strategic and corporate risks to Council.

7        The decision not to provide an update of the previous risk register for the June quarter was discussed with the Finance and Audit Committee chair and the rationale was explained and supported.

8        It is planned that the ELT will conduct a comprehensive evaluation of each of Council’s ten strategic and corporate risks in a workshop scheduled for 22 July 2019.

9        The ELT request feedback and direction from the Finance and Audit Committee prior to its July workshop to assist it with the next stage of the risk management framework implementation and to ensure the approach being taken fulfils the direction provided from the Finance and Audit Committee.

10      It is intended the quarterly Risk Management Report and risk register update content will include:

Strategic and corporate risks

This section will report on the top 10 strategic and corporate risks identified by Council. It is intended this will take the form of a risk register table – with each of the top 10 strategic and corporate risks being reported on across the organisation (initially by way of operational groups with each group manager responsible for informing the risk register table) and covering off:

a.   What are the characteristics of the risk as it relates to a specific area of operation; how has it evolved and/or been created.

b.   So what does this mean for the organisation; what are the consequences (intended and unintended) as a result of this risk materialising and how will the risk impact on the operation of the organisation.

c.   Now what are the treatments considered important in order to address and mitigate the risk; and what do the treatments mean as far as the impact of the risk following the treatments being put in place for risk mitigation.

Emergent risks

This section will detail and describe identified emergent risks – specifically identifying what the risk is, why it is being considered as an emergent risk and provide a recommended approach as to its possible escalation to be considered to be included on the risk register of top 10 risks. This will require a risk assessment process to be worked through and undertaken as identified in the risk management framework – considering the risk categories; risk thresholds; risk tolerance; risk prioritisation; risk acceptance and escalation; and risk treatments and controls.

Operational risk assurance

This section will provide the opportunity for the Finance and Audit Committee to be have assurance that operational risks are being managed effectively and the ELT to highlight and inform of issues and opportunities accordingly

11      This feedback and direction from the Finance and Audit Committee and associated analysis will enable the ELT to focus its July workshop and provide an informed and fit for purpose risk management report and risk register update to be presented to the Finance and Audit Committee for the September quarter.

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Update on the risk management framework implementation, the quarterly risk management reporting process and the associated risk register development.” dated 5 June 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)           Endorses the approach being undertaken to implement the risk management framework, the quarterly risk management reporting process and associated risk register development

 

e)            Provides feedback and direction to assist the Executive Leadership Team to focus the scheduled ELT workshop for 22 July 2019.

 

f)             Notes that the next quarterly risk register report will be presented to the Finance and Audit Committee on 23 September 2019.

 

 

 

Attachments

There are no attachments for this report. 

 


Finance and Audit Committee

18 June 2019

 

Monthly Financial Report - April 2019

Record No:             R/19/6/10138

Author:                      Dipal Patel, Project Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Summary

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

2.       This report summaries Council financial results for the ten months to 30 April 2019.

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Monthly Financial Report - April 2019” dated 12 June 2019.

 

Attachments

a             Monthly Council Financial Report - April 2019    

 


Finance and Audit Committee

18 June 2019

 

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Finance and Audit Committee

18 June 2019

 

Draft Annual Plan 2019/2020

Record No:             R/19/5/9134

Author:                      Chantelle Subritzky, Corporate Performance Lead

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        For the Finance and Audit Committee to recommend the Annual Plan 2019/2020 to Council for adoption.

Executive Summary

2        Every three years, councils adopt ten year plans which are referred to as the ‘Long Term Plan (LTP)’. In the intervening years, an Annual Plan is developed to address any variances from the LTP, confirm service levels and budgets for the year and set rates. This is also a requirement under the Local Government Act 2002 (LGA). Year two of the Council’s LTP 2018-2028 serves as the base for the Annual Plan 2019/2020. 

3        The Annual Plan 2019/2020 is broadly consistent with what was projected for the 2019/2020 year in the LTP 2018-2028. The majority of changes relate to capital works projects for roading, sewerage and water renewals. These projects were already included in the LTP 2018-2028 and budget included within the work programme.

4        As there were no significant variances between the LTP 2018-2028 and the Annual Plan 2019/2020, Council did not go out for formal consultation with the community. Council used other forms of engagement though, such as First Edition newsletter to update the community on the Annual Plan process.

5        A copy of the draft Annual Plan 2019/2020 is attached as attachment A.

 

Recommendation

That the Finance and Audit Committee:

a)        Receives the report titled “Draft Annual Plan 2019/2020” dated 12 June 2019.

 

b)        Determines that this matter or decision be recognised as significant in terms of Section 76 of the Local Government Act 2002.

 

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

 

d)        Confirms in accordance with Section 100 of the Local Government Act 2002 that the Annual Plan 2019/2020 has been prepared based on reasonable judgement and assumptions and that it considers the projected financial results, including the projected operating deficit for 2019/2020, to be financially prudent given its financial position.

 

e)        Recommends to Council the adoption of the Annual Plan 2019/2020 including the Funding Impact Statement (as attached).

 

Background

6        Once every three years, Southland District Council is required to adopt a Long Term Plan (LTP), and in the intervening years an Annual Plan. These plans set out the service levels and budgets for the coming year as well as being used to set rates.

7        Year two of the Council’s LTP 2018-2028 serves as the base for the Annual Plan 2019/2020. The Annual Plan 2019/2020 is broadly consistent with what was projected for the 2019/2020 year in the LTP 2018-2028.

8        All councils are required by legislation to prepare and adopt an Annual Plan for each financial year before the start of the new financial year. The Annual Plan is not audited.

9        The purpose of an Annual Plan is to:

·    Detail the proposed annual budgets and Funding Impact Statement;

·    Identify any variation from the financial statements and Funding Impact Statement included in the Long Term Plan (LTP) in respect of the year;

·    Provide integrated decision-making and co-ordination of the resources of the local authority;

·    Contribute to the accountability of the local authority to the community.


 

10      As part of developing the Annual Plan, Community Boards, Community Development Area Subcommittees and Water Supply Subcommittees were provided with the opportunity at their direction-setting meetings to highlight any planned changes for the 2019/2020 financial year from what was budgeted for year two of the Long Term Plan 2019/2020. Hall committees and Council staff were also asked to advise of any changes to fees and charges for the 2019/2020 year.

11      On 18 December 2018, Council meet informally in a workshop to discuss a number of key matters associated with the 2019/2020 Annual Plan. At this workshop staff and Council discussed the following:

1. Proposed fees and charges

2. Grants and donations

3. Rating revaluation

4. Roading rate model

5. Key financial matters, including loans, reserves, forestry dividend, SRDA funding and employee costs

6. Impact on the overall and specific rates for 2019/2020

 

12      Subsequently on 21 May 2019, staff presented to the Finance and Audit Committee workshop the draft Annual Plan. This document incorporated the outcomes of a comprehensive review of the capital work programme for 2019/2020 undertaken by activity managers and ELT, as well as the internal financial structure changes as a result of the Services and Assets restructure.

13      The Finance and Audit Committee provided guidance to staff to proceed with the finalisation of the draft Annual Plan for recommendation to Council at the Committee’s meeting on 18 June 2019.

14      There was no community consultation for the Annual Plan 2019/2020 as there were no significant variances to the LTP 2018-2028. This was in accordance with the Significance and Engagement Policy that was adopted in June 2018 through the LTP process.

Changes from Year Two of the LTP 2018-2028

15      The majority of the changes between what was forecasted in the 2019/2020 year in the LTP 2018-2028 from what has been included in the draft Annual Plan 2019/2020 relates to capital works projects. Key changes include:

·    the addition of Council’s contribution to the Pyramid Bridge ($1.5 million),

·    costs associated with the change in disposal method for Te Anau sewerage project ($3.3 million)

·    the addition of Otautau watermain renewal project ($0.5 million)

·    the addition of Te Anau watermain renewal project ($0.5 million)

·    the addition of Tokanui  wastewater consent and treatment options project ($0.2 million)

·    removal of anticipated external debt ($7.9 million) and associated repayments ($0.2 million)

·    review of the capital work programme for 2019/2020 incorporating work deferred from 2018/2019

 

Issues

16      The Annual Plan is based on a number of assumptions. In addition, there are a number of issues described below that will require separate reports to be brought back to Council. These reports will explore the issues more fully and potentially include additional unbudgeted expenditure for 2019/2020 or beyond, if approved.

17      The Annual Plan 2019/2020 only includes a budget of $200,000 for costs associated with the consent and treatment options for Tokanui Wastewater. Staff believe that the outcome of the current resource consent process may require work above the $200,000 proposed.

18      The Annual Plan 2019/2020 includes a budget of $493,000 for the rebuild of the Ulva Island jetty and Golden Bay wharf. Staff are currently undertaking further investigations to ascertain the extent of the work required in relation to the jetties on the island. It is anticipated that there will be additional costs in future years over and above what is proposed in the Annual Plan 2019/2020.

19      The Annual Plan 2019/2020 includes a budget of $150,000 for refurbishment of the Winton Office/Library on the basis that there has been no work done for over 15 years. Given the current closure of this building and the associated issues it is unknown if this work will proceed.

Factors to Consider

Legal and Statutory Requirements

20      The Annual Plan is a statutory requirement under the Local Government Act 2002 (section 95).

21      All councils are required by legislation to prepare and adopt an Annual Plan before the commencement of the financial year to which it relates (1 July 2019 in this instance).

Community Views

22      The Community Boards and Community Development Area Subcommittees were involved in the direction setting for the Annual Plan 2019/2020 and provided input into any new projects that were urgently required for their areas and the fees and charges for the local assets. This feedback has been presented to the Council for consideration and included in the Annual Plan 2019/2020 where necessary.

Costs and Funding

23      There are various costs incurred in compiling the Annual Plan including staff costs and budgets. These are included in Council’s annual budgets and funded accordingly.

24      The specific financial implications of the changes made to the final Annual Plan are outlined in the financial considerations section below.

Policy Implications

25      The changes set out in the Annual Plan are consistent with Council’s current Financial Strategy, Infrastructure Strategy and policies, including the Revenue and Financing Policy.

26      No policies have been amended as part of the Annual Plan development process.

 

Financial considerations

27      The financial implications of the proposed Annual Plan 2019/2020 are noted below:  

28      Rating Impact /Rates Increase

·    The rate increase for 2019/2020 will be 3.49%, compared to 3.34% proposed in the LTP 2018-2028.

·    The Rates Funding Impact Statement has been updated to show the current District and Local Area Rates.  Rates will be set as either a rate in the dollar on land value or capital value or a Uniform Targeted Rate (UTR).

·    The rating information database has been updated to include the property valuations for all properties in the district as advised by Quotable Value in December 2018.  Consequently the rates calculations provided in the Annual Plan are based on the revalued amounts. The revaluation resulted in a number of significant increases in residential property values across the district.

29      30% Maximum Uniform Targeted Rate (UTR)

·    Uniform Targeted Rate - The maximum amount Council can collect under the UTR is 30% of total rates.  The UTR for the 2019/2020 financial year will be 27.09%, compared to 27.37% for 2018/2019.

30      Impact on Financial Reports

·    The consolidated impacts of the changes are shown in the forecast financial statements on pages 39 to 61 of the draft Annual Plan 2019/2020 attached.

·    In comparing the draft Annual Plan 2019/2020 forecast deficit to year two of the LTP 2018-2028, the deficit has decreased $911,000, from $4,264,000 to $3,353,000.  This is predominantly due to an increase in government grant funding for Te Anau wastewater project ($3.0 million) offset by an increase in contribution to joint Council projects (Pyramid Bridge $1.5 million) and employee associated costs ($700,000).

·    The prospective statement of financial position in the draft Annual Plan incorporates 30 June 2018 actual balances (as opening balances) as well as changes resulting from revised forecasts for 2018/2019.

31      Compliance with Financial Strategy

·    The draft Annual Plan is in compliance with the key financial indicators outlined in the financial strategy, being specifically:

·    Rates increases to be no more than LGCI + 2.0%. For 2019/2020 in the 2018-2028 Long Term Plan, the LGCI is budgeted at 2.2%, resulting in a limit of 4.2%. The actual increase in 3.49%.

·    Total debt not to exceed 100% of total revenue. Council anticipates it will require no long term external debt in the 2019/2020 year, however notes that it is forecast to be in overdraft at 30 June 2020 of $3.2 million.

·    Additional information on benchmarks are outlined on pages 30 to 33 of the draft Annual Plan.

Analysis

Options Considered

Analysis of Options

32      Option 1 – Recommend the draft Annual Plan 2019/2020 to Council for adoption, with amendments as agreed at this meeting.

Advantages

Disadvantages

·        Comply with statutory requirements and timeframes

·        Is consistent with the overall direction set through the LTP 2018-2028

·        Will enable rates to be set for the 2019/2020 financial year.

·        There are no disadvantages

 

33      Option 2 – Do not recommend the Annual Plan to Council.

Advantages

Disadvantages

·        There are no advantages to this option

·        Not comply with statutory requirements

·        Rates will not be able to set for the 2019/2020 financial year until an Annual Plan is adopted.

 

Assessment of Significance

34      The draft Annual Plan 2019/2020 does not contain significant variance from year two of the LTP 2018-2028. Therefore it did not meet the significant threshold in the Significance and Engagement Policy and the formal consultation with the public was not undertaken.

35      A reprioritisation of the LTP work programme was undertaken to ensure realistic project delivery for the financial year. This has resulted in some projects being deferred until the 2020/2021 work programme.

36      In order to keep the public updated, staff sent out information regarding the Annual Plan 2019/2020 in Council’s First Edition newsletter.

Recommended Option

37      Option 1 – Recommend the draft Annual Plan 2019/2020 to Council for adoption, with amendments as agreed at this meeting.


 

Next Steps

38      The draft Annual Plan will be presented to Council for adoption on 19 June 2019.

39      Following Council adoption, the Annual Plan 2019/2020 will be made available on the Council’s website www.southlanddc.govt.nz. Hard copies will be available upon request.

 

Attachments

a             Draft Annual Plan 2019/2020    

 


Finance and Audit Committee

18 June 2019

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Finance and Audit Committee

18 June 2019

 

Annual Report 2018/2019 - Key dates

Record No:             R/19/4/7474

Author:                      Shannon Oliver, Planning and Reporting Analyst

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The purpose of the report is to provide the committee with the key dates for the draft Annual Report 2018/2019 for their approval.

 

Executive Summary

2        The Annual Report is a key reporting document for Council to the community, and reports on Council’s performance against the 2018-2028 Long Term Plan.

3        The purpose of this report is to provide the committee with the key dates from the Annual Report 2018/2019 timetable for approval. The timetable has been prepared so that adoption of the Annual Report occurs on 27 September 2019. 

4        The Annual Report is required to be audited in accordance with section 99 of the Local Government Act 2002. Southland District Council has engaged Audit New Zealand to undertake the audit for the year ending 30 June 2019.

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Annual Report 2018/2019 - Key dates” dated 10 June 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)           Approves the Annual Report 2018/2019 - key dates as attached.

 

 

Background

5        Council is required to develop and adopt an Annual Report within four months of the end of a financial year.  The Annual Report is a means for Council to account and report to the community on its performance of the preceding financial year. It reports on outcomes, performance measures (both financial and non-financial) and provides information on the results achieved against planned results, as published in the 2018-2028 Long Term Plan. 

6        The purpose of an Annual Report is:

(a)     to compare the actual activities and the actual performance of the local authority in the year with the intended activities and the intended level of performance as set out in respect of the year in the Long Term Plan and the Annual Plan; and

(b)     to promote the local authority's accountability to the community for the decisions made throughout the year by the local authority.

7        As with previous years, both an Annual Report and a summary document are produced.  Both these documents will be made available on Council’s website. The summary document will be distributed to all Council offices and copies of both the summary and the full document made available on request.  The report availability will also be advertised in the Advocate.

8        This report provides the committee with the project plan key dates for their approval. The project lead is the corporate performance lead and the project team is made up of staff from strategy and policy, communications and finance.

9        The committee will be presented with the unaudited Annual Report in draft form at the 29 August 2019 meeting. 

10      The Annual Report is audited by Audit New Zealand which provides the reader with a level of assurance of the completeness and accuracy of the information reported. Audit New Zealand staff will be on site from 26 August to 20 September 2019. 

11      On 23 September 2019 the Finance and Audit Committee will receive the final draft of the Annual Report for recommendation for adoption by Council on 27 September 2019. The auditors will be present for this meeting.

12      As per the timetable and in line with previous years, the summary document will be signed off after the Annual Report is adopted.

 

Issues

13      In order to deliver on the proposed timetable, full co-operation from the wider organisation is needed.  It is therefore important that information is provided in a timely manner.  There is a risk of deadlines and timeframes being impacted if information is not provided in a timely manner. The relevant key dates for staff will be communicated to reduce this risk, however management will also need to be proactive in prioritising tasks associated with the Annual Report.

14      The local authority election is being held on 12 October 2019.  The proposed timetable facilitates completion and adoption of the Annual Report before the election date so that the decision to adopt the Annual Report is made by the Council who were responsible for the operations activities for the year ending 30 June 2019.  The summary document will be signed off by the Chief Executive in October.

 

Factors to Consider

Legal and Statutory Requirements

15      Section 98 of the Local Government Act 2002 states that:

(1)      A local authority must prepare and adopt in respect of each financial year an Annual Report containing in respect of that year the information required by Part 3 of Schedule 10.

(2)      The purposes of an Annual Report are—

(a)   to compare the actual activities and the actual performance of the local authority in the year with the intended activities and the intended level of performance as set out in respect of the year in the Long Term Plan and the Annual Plan; and

(b)   to promote the local authority's accountability to the community for the decisions made throughout the year by the local authority.

(3)      Each Annual Report must be completed and adopted, by resolution, within four months after the end of the financial year to which it relates.

(4)      A local authority must, within one month after the adoption of its Annual Report, make publicly available—

(a)   its Annual Report; and

(b)   a summary of the information contained in its Annual Report.

(5)      The summary must represent, fairly and consistently, the information regarding the major matters dealt with in the Annual Report.

(6)      A local authority must, within one month after the adoption of its Annual Report, send copies of that report and of the summary prepared under subsection (4)(b) publically available.

16      Information that must be included can be found in Schedule 10 Part 3 of the act, and includes:

·                 groups of activities

·                 capital expenditure for groups of activities

·                 statement of service provision

·                 funding impact statement for groups of activities

·                 internal borrowing

·                 Council-controlled organisations

·                 financial statements

·                 funding impact statement

·                 rating base information

·                 reserve funds

·                 insurance of assets

·                 remuneration issues

·                 employee staffing levels and remuneration

·                 severance payments

·                 statement of compliance

·                 the activities that the local authority has undertaken in the year to establish and maintain processes to provide opportunities for Māori to contribute to the decision-making processes of the local authority.

17      The Annual Report and Summary Document reports on Council’s performance against the Annual Plan (which is based on the first year of the Council’s Long Term Plan 2018-2028).

18      As each Annual Report must be completed and adopted, by resolution, within four months after the end of the financial year to which it relates, this makes 31 October 2019 the last day available to meet this timeframe. 

Community Views

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

Costs and Funding

20      Audit New Zealand’s fee to audit the Annual Report is $118,349 excluding GST, plus disbursements of approximately $8,500 excluding GST. There are also printing costs for the Annual Report and Summary Annual Report. These costs have been included in the operating budgets for 2018/2019.

Policy Implications

21     There are no policy implications.

Analysis

Options Considered

22      There are two options to consider in relation to the report.

Analysis of Options

Option 1 – Approve the timetable including any changes at the meeting

Advantages

Disadvantages

·        preparations can begin as per the project plan

·        statutory timeframes will be met.

·        there are no disadvantages

 

Option 2 – Do not approve the timetable including any changes at the meeting

Advantages

Disadvantages

·        there are no advantages

·        statutory timeframes may be compromised

 

Assessment of Significance

23      Whilst the Annual Report is an important accountability document for Council, this report merely sets out the key dates from the proposed timetable, and is therefore of low significance.

Recommended Option

24      Option one is the recommended option.

Next Steps

25      Staff will action the proposed timetable, and circulate it to the relevant staff. 

26      The Finance and Audit Committee will review the draft unaudited report at the 29 August 2019 meeting and confirm release of the draft to Audit NZ. 

27      The Finance and Audit Committee will receive the final draft of the Annual Report on 23 September for recommendation for adoption by Council on 27 September 2019.

 

Attachments

a             Annual Report Key Dates     

 


Finance and Audit Committee

18 June 2019

 

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Finance and Audit Committee

18 June 2019

 

Follow up - Accounting Position Paper

Record No:             R/19/5/9433

Author:                      Sheree Marrah, Financial Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To provide the Committee with an update on Audit NZ’s response to Council’s position paper in regards to how Council proposes to account for its share of it various related entities for the year ended 30 June 2019 and beyond.

Executive Summary

2        In the Audit New Zealand (Audit NZ) Management Reports for the years ended 30 June 2017 and 2018, recommendations were made to Council to consider consolidating Milford Community Trust (MCT) and revisiting the accounting approach for its various joint venture entities.

3        In a report to the Committee at its meeting on 14 December 2018, staff provided the Committee with a draft accounting position paper in response to Audit NZ’s recommendations for the year ending 30 June 2019 and beyond. 

4        Upon recommendation from the Committee, this accounting position paper was provided to Audit NZ in January 2019 for their consideration.

5        After considering the position paper, Audit NZ have advised that they are satisfied with Council’s proposed accounting treatment for all entities, other than Milford Community Trust.  Additionally, they have yet to come to a formal position in relation to the Southland Regional Development Agency (SRDA) as the Office of the Auditor General has not yet appointed an auditor for the entity. It is anticipated that Audit NZ will have formalised its position on Council’s accounting treatment for this entity prior to the commencement of the audit for the year ending 30 June 2019

6        Audit NZ believes that Council benefits from the complementary activities of the MCT, and thus the Trust should be consolidated in Council’s annual report.  Although Council’s position differs from that of Audit NZ, staff are proposing to consolidate MCT for the year ending 30 June 2019 and beyond as required by Audit NZ.

7        Subsequent to the December position paper, Council staff have also revisited the accounting treatment of Venture Southland.  Considering the fact that Venture Southland is winding up at 30 June 2019, Council staff now believe it would be inefficient to early adopt PBE IPSAS 36 Investments in Associates and Joint Ventures.  This new standard would require VS to be equity accounted, for its final remaining year (and restate any prior period comparatives).  Therefore staff are proposing that Council continue to proportionately consolidate VS for the year ending
30 June 2019.

 

 

Recommendation

That the Finance and Audit Committee:

a)           Receives the report titled “Follow up - Accounting Position Paper” dated 11 June 2019.

 

 

 

Background

8        In the Audit New Zealand (Audit NZ) Management Reports for the years ended 30 June 2017 and 2018, recommendations were made to Council to consider consolidating Milford Community Trust (MCT) and revisiting the accounting approach for its various joint venture entities.

9        In a report to the Committee at its meeting on 14 December 2018, staff provided the committee with a draft accounting position paper in response to Audit NZ’s recommendations for the year ending 30 June 2019 and beyond.

10      The draft position paper was provided to Council’s auditors, Audit NZ, and included an outline of Council’s position in relation to accounting for Venture Southland (VS), Southland Regional Heritage Committee (SRHC), Emergency Management Southland (EMS), WasteNet, Milford Community Trust (MCT), Southland Museum and Art Gallery Trust (SMAG), Southland Regional Development Agency (SRDA) and Whakamana Te Waituna Charitable Trust (WTWCT) in the Annual Report for the year ended 30 June 2019 and beyond.

11      The draft position paper considered the application of PBE IPSAS 6 Consolidated and Separate Financial Statements, PBE IPSAS 7 Investments in Associates, and PBE IPSAS 8 Interests in Joint Ventures which will be superseded by PBE IPSAS 35 Consolidated Financial Statements, PBE IPSAS 36 Investments in Associates and Joint Ventures and PBE IPSAS 37 Joint arrangements for reporting periods beginning on or after 1 January.  The overall conclusion of the draft position paper is that Council will for the financial year ended 30 June 2019 and beyond:

·    Equity account for VS, SRHC, SRDA and EMS (associates).

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

·    Equity account for SMAG and WTWCT (associates), recognising that they have no equity share.

·    Disclose summary financial information for MCT and SMAG in the CCO section of the Annual Report.

12      Audit NZ have advised that they are satisfied with Council’s proposed accounting treatment for all entities, other than Milford Community Trust and Southland Regional Development Agency.

Venture Southland (VS)

13      Although both Council and Audit NZ agree that under the proposed PBE IPSAS 36 Investments in Associates and Joint Ventures, VS is an associate and therefore should be equity accounted.

14      Given that VS is being wound up at 30 June 2019, this new standard would require VS to be equity accounted, for its final remaining year (and any prior period comparatives to be restated).  Staff consider this to be an inefficient approach and therefore are proposing not to early adopt PBE IPSAS 36 Investments in Associates and Joint Ventures and continue to proportionately consolidate VS in Council’s 2018/2019 annual report. 

Milford Community Trust (MCT)

15      In the accounting position paper presented on 14 December 2018 staff concluded that control does not exist for MCT.  Although Council has the overarching ability to appoint trustees, in Council’s opinion it does not receive direct benefits from the Trust. Council’s representation on the Trust is 1 of 7 and therefore also illustrates that Council does not have significant influence over the Trust.

16      To date Council have considered the operations and assets of MCT to be immaterial and only disclosed a summary of key financial and performance indicators in the CCO section of the Annual Report.  This approach was proposed to continue for 30 June 2019 and beyond. 

17      In reviewing Council’s accounting position paper, Audit NZ concluded that Council benefits from the complementary activities of the MCT, and thus the Trust should be consolidated in Council’s annual report. 

18      The supporting analysis provided by Audit NZ included the following points of justification:

-     the vision of the Trust is aligned to that of the Southland District Council.

-     the Trust’s objects are congruent with the objects of the Southland District Council.

-     as the Settlor of the Trust, the Trust’s objects and purposes were predetermined by the Southland District Council when it established the Trust.

-     the Trust was set up with objectives that align with the Southland District Council’s wider objects and purposes.

19      Although Council’s position differs from that of Audit NZ, staff will consolidate MCT for the year ending 30 June 2019 and beyond as required by Audit NZ to mitigate any future management letter points in relation to this matter.

Southland Regional Development Agency (SRDA)

20      The establishment of the formal SRDA entity has only recently been completed, and as such the Office of the Auditor General (OAG) has not appointed an auditor for this entity to date.

21      Council hold 2,250 of the 9,000 Class A shares. Additionally there are 3,000 Class B shares which are held by other organisations across Southland.  Class A shares can only be held by a Local Authority.  In accordance with section 3.2 of the SRDA constitution, except as expressly provided in the Constitution, all shares in Class A and Class B have the same rights and privileges and are subject to the same restrictions. 

22      Based on the current shareholding Council is not considered to have significant influence over SRDA (it holds less than 20 percent of the voting power) and therefore is not considered an associate.  Council’s investment in SRDA should therefore be considered a financial asset.  

23      Currently staff are working through the implications of transferring various assets held by Venture Southland, as a joint venture of Councils, to the new organisation.  Included in this discussion is how that transfer will be funded, an option is the issuance of preference shares to the Councils.  Further consideration will need to be given to the accounting approach once the final position has been established, however it is not expected to be substantially different.

24      Audit NZ have not come to a formal position in relation to the accounting for SRDA as they are awaiting the appointment of its auditor.  An assessment of the new entity will be undertaken by the OAG and it is anticipated that this assessment will address the ownership structure and associated accounting approaches, which will then be provided to the relevant organisations’ auditors.

25      It is anticipated that Audit NZ will have formalised its position on Council’s accounting treatment for this entity prior to the commencement of the audit for the year ending 30 June 2019.

Next Steps

26      These matters have been addressed in the report to the Committee, Accounting policies for the year ended 30 June 2019, included separately in this agenda. Once the accounting policies have been approved, staff will commence compilation of the Annual Report for the year ended 30 June 2019.

 

Attachments

There are no attachments for this report. 

 


Finance and Audit Committee

18 June 2019

 

Accounting Policies for the year ended 30 June 2019

Record No:             R/19/4/7341

Author:                      Sheree Marrah, Financial Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To consider and recommend to Council the adoption of the accounting policies to be used to compile the Council’s Annual Report for the year ended 30 June 2019. 

Executive Summary

2        The draft accounting policies (Attachment A) set the basis on which Council’s Annual Report for the year ended 30 June 2019 will be prepared and the associated financial information compiled.

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Accounting Policies for the year ended 30 June 2019” dated 11 June 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 Venture Southland be proportionately consolidated into the financial statements of Council for the year ending 30 June 2019, noting that this approach supersedes resolution 7.5(d) made at the committee meeting on 14 December 2018.

 

e)            Recommends to Council that Milford Community Trust be consolidated into the financial statements of Council for the year ending 30 June 2019 and beyond, noting that this approach supersedes resolution 7.5(d) made at the committee meeting on 14 December 2018.

 

f)             Recommends to Council that the accounting policies as outlined in Attachment A, including any amendments from this meeting, be adopted for use in preparation of the Council’s Annual Report for the year ended 30 June 2019.

 

Background

3        Councils are required by legislation to adopt an Annual Report every year.  The Annual Report informs the reader about how Council did against what Council said it was going to do in the Long Term Plan 2018-2028 for 2018/2019.

4        In arriving at the accounting policies proposed, Council staff have used the 2017/2018 Annual Report policies as the base, considered these against the audited Long Term Plan 2018-2028 accounting policies and reviewed for any changes needed, including any additional policies. As a result we have included an inventory and trade and other receivables policy (refer policy (i) page 3 and policy (t) page 9 of Attachment A) which were previously omitted, as well as adding some minor clarifications in other policies (all noted in green text).

Issues

5        The policies proposed for the Annual Report to 30 June 2019 are consistent to those used for the Annual Report for the year ended 30 June 2018, however further context/clarification has been provided in some areas (noted in green text in Attachment A).  

Venture Southland (VS)

6        Audit NZ noted as part of the 2017/2018 Management Report that Council should consider the use of equity accounting for VS due to the upcoming change in accounting standards.

7        Staff brought a comprehensive report to the Committee in December 2018, outlining Council’s proposed approach to how it should account for VS and the various other associated entities.  It noted that under the new accounting standard PBE IPSAS 36 Investments in associates and Joint Ventures which is operative for accounting periods beginning on or after 1 January 2019 that Council should move to equity account for VS from 2018/2019.

8        Although both Council and Audit NZ agree that under the standard, VS is an associate and therefore should be equity accounted.  Given that VS is being wound up at 30 June 2019, early adoption would mean that along with VS being equity accounted for 2018/2019, Council would also need to restate the prior period comparatives.  Given it is the final year for Venture Southland it is now being proposed to the committee that Council do not early adopt PBE IPSAS 36 Investments in Associates and Joint Ventures and continue to proportionately consolidate VS in Council’s 2018/2019 Annual Report.  The non-early adoption has no other implications for Council.

9        Council staff have discussed this with Audit NZ staff and they have no concerns with this approach.

Consolidation of Milford Community Trust (MCT)

10      As noted in the “Follow up – Accounting Position Paper”, included in this agenda, Council staff have incorporated into the accounting policies for the Annual Report 2018/2019 the consolidation of MCT, refer to page one of attachment A, updated reporting entity statement. 

11      Council staff have discussed and agreed with Audit NZ that given the materiality of the balances of MCT, there is no need to restate the prior year comparative figures.  Audit NZ have advised that they will include a statement in relation to this matter in their Letter of Representation as an unadjusted audit difference, however they recognise that it is immaterial and will only apply for the year ending 30 June 2019.

Early adoption of accounting standards

12      As discussed above, Council staff are recommending that Council does not early adopt PBE IPSAS 36 Investments in Associates and Joint Ventures and PBE IPSAS 37 Joint Arrangements, which are effective for reporting periods beginning on or after 1 January 2019.  In Council’s case this would therefore be effective for the financial year ending 30 June 2020 and beyond.

13      Accordingly, Council staff have considered the options of adopting this and a number of standards early and do not consider there is any benefit in doing so, hence all the relevant standards have been noted in the revised the accounting policies for the Annual Report 2018/2019 under the heading “Standards issued and not yet effective that have not been early adopted” (refer policy (ad) page 11 of Attachment A).

Factors to Consider

Legal and Statutory Requirements

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

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

Community Views

Costs and Funding

16      There are no direct cost implications of Council adopting accounting policies.

Policy Implications

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


 

Analysis

Options Considered

Analysis of Options

Option 1 – Recommends to Council the use of the accounting policies attached, including any amendments agreed at this meeting, for use in preparation of the Council’s 2018/2019 Annual Report

Advantages

Disadvantages

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

·      The Committee would not get any further information if it required it before Committee endorses the report for adoption by Council in September.

Option 2 – Do not recommend accounting policies as presented

Advantages

Disadvantages

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

·      The preparation of the Annual Report process may be held up depending on the time needed to provide the necessary information.

 

Assessment of Significance

18      In terms of Council’s Significance and Engagement Policy, the accounting policies which form part of the Annual Report are not considered significant.

Recommended Option

19      Option one - Recommends to Council the use of the accounting policies attached, including any amendments agreed at this meeting, for use in preparation of the Council’s 2018/2019 Annual Report.

(i)            Next Steps

20      If the committee approves the policies, they will be presented to Council for adoption in due course.

21      The accounting policies (incorporating any changes agreed at this meeting) will be reviewed by Audit New Zealand as part of their audit of the Annual Report and may be subject to change.

 

Attachments

a             Draft Accounting policies for the year ended 30 June 2019    

 


Finance and Audit Committee

18 June 2019

 


 


 


 


 


 


 


 


 


 


 


 


Finance and Audit Committee

18 June 2019

 

Interim Management Report from Audit New Zealand for the year ended 30 June 2019

Record No:             R/19/4/7354

Author:                      Sheree Marrah, Financial Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Summary of Report

1        As part of the audit process, Audit New Zealand provides Council with a report on the interim audit of Council’s Annual Report.  This report outlines the findings of the work that was performed on systems, processes and controls in April 2019, and makes a number of recommendations that it seeks commentary from management on.

2        A copy of the report is attached for the Committee’s reference (Attachment A). 

3        Audit New Zealand did not identify any significant or material issues during Council’s interim audit for the year ended 30 June 2019, however they have made a number of recommendations as noted in the attached report.

4       Council staff will work to implement/resolve the recommendations identified by Audit NZ, in addition to those previously raised as outlined in Attachment B.  Attachment B has also been updated to provide a current status update from staff on the recommendation as well as a revised indicative completion date (if required).  Please note the timelines included in Attachment B are self-imposed.

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Interim Management Report from Audit New Zealand for the year ended 30 June 2019” dated 11 June 2019.

 

 

Attachments

a             Interim Management Report year ending 2019

b             Prior years' Audit NZ recommendations    

 


Finance and Audit Committee

18 June 2019

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Finance and Audit Committee

18 June 2019

 

Attachment B

Matters from 2018 Final Management Report

What are we doing

Responsibility

Current Status

Current Due Date

Original Due Date

Variance noted between RAMM and the Bridge Valuation Spreadsheet

·    Update RAMM in a timely period after a revaluation.

·    Roading team checks to ensure that the values in the valuation report match the values in RAMM.

Review the relevant processes to ensure this issue does not occur in the future.

Hartley Hare

RAMM has been updated by OPUS for 2018 values. Roading Team need to complete quality assurance review to ensure the values are consistent with the valuation.

June 2019

June 2019

Milford Community Trust (MCT) not consolidated

The Council consolidates the results of MCT in line with financial reporting standards.

Prepare an accounting position paper on this matter and present to the Finance and Audit Committee.

Sheree Marrah

Complete – report provided to Committee in December 2018 and follow up report included in June 2019 agenda.

N/A

 

Investments in associates/Joint Ventures

 

The Council includes the financial and non-financial results of these interests in going forward in order to comply with the financial reporting standards.

A thorough assessment is performed to identify interests that that the Council has in other entities.

The Council confirms that consistent accounting policies are being applied by the group entities.

Prepare an accounting position paper on this matter and present to the Finance and Audit Committee.

Sheree Marrah

Complete – report provided to Committee in December 2018 and follow up report included in June 2019 agenda.

N/A

 

 

 

Matters from 2018 Interim Management Report

What are we doing

Responsibility

Current Status

Current Due Date

Original Due Date

Procurement

·      Recommend that there should be good oversight and coordination of staff with devolved procurement responsibilities. This ensures the central management of procurement risks and legal compliance issues; and

·      Recommend that the review of the Procurement Policy be finalised as it has been on-going for some years now.

 

New Project Management Framework will incorporate the necessary workflows and management interventions.

Will be developed as part of the Project Management Framework.

 

Matt Russell

 

Project Management Framework now up and running which will ensure improved oversight of the projects Council’s undertakes. Procurement policy now drafted for internal review prior to formal sign-off. Procurement module in development in CAMMS.

Further work still being undertaken to integrate the financial results into CAMMS.

 

December 2019

 

Anticipated to be completed in the first quarter of 2019, then June 2019

Contract management

Continue to recommend the development of a formalised approach to contract management and develop a Contract Management Policy.

 

Although a Contract Management Policy has not yet commenced, contract management functions have been contemplated through the design of the Project Management Platform in the process of being developed.

 

 

Matt Russell

Contract management improvements are ongoing. Register established, Policy not yet developed, and unlikely in next 12-months.

Contract Managers now established in each Activity team. Commercial Infrastructure Manager also established. 17A review addressing Community Facility contracts following rep review structure revisions early 2020.

Ongoing

 

Anticipated that the formalised approach to contract management will be completed in the first half of 2019.

Conflicts of interests

Recommend that the Conflict of Interest Policy be reviewed and updated.

1   

2    Policy reviewed and adopted on 8 October 2018

 

Rex Capil

 

Complete

 

 

N/A

 

 

Risk Management

Recommend the engagement of an external contractor to assist Council is in the process of developing of a Risk Management Framework as it provides the basis for the development and maintenance of a coordinated set of activities to respond to risks that may affect the ability of achieving its mission and strategic objectives.

 

3    The Risk Management Framework adopted by Council at 7 February 2019 meeting.

 

 

 

 

Rex Capil

 

 

Complete

 

 

 

N/A

 

 

June 2019

Project Management

Recommend the development of a Project Management Framework ahead of the recommencement of Council’s significant capital projects as the framework will outline the methodology and procedures to follow in order to complete projects within budgets.

 

The project management platform is on track to be completed by the end of this calendar year.

 

Matt Russell

 

Refer comments above regarding project management in the procurement section.

 

December 2019

 

December 2018

 

Internal Controls

 

 

 

 

 

Rates

Council should implement further controls over checking the rates struck agree to the resolution and Annual Plan 2017/18. To prevent errors in the future, the amounts loaded in the system (not just the manual hard copy) should be checked by at least two independent persons prior to going live.

 

Additional steps have been included in the rate setting process documentation to enable checks of the live system.

 

Sheree Marrah

 

Complete

 

N/A

 

Other revenue

Recommend the implementation of delegations over credit notes.

 

Council delegations have been updated to include the positions and approval limits associated with these for credit notes.

 

Sheree Marrah

 

Complete

 

N/A

 

Property, plant and equipment

4    Given the high asset base of the Council, regular reconciliation process is vital for the maintenance of accurate records and monitoring of assets.

 

 

 

 

 

 

 

 

 

 

 

 

A detailed a fixed asset reconciliation is undertaken at year end. Council’s fixed asset register is a manual spreadsheet with no automation and therefore is very labour intensive.  Going forward Council will reconcile asset classes on a monthly basis where appropriate, however it should be noted that the majority of Council’s assets are constructed over an extended period of time, and therefore monthly reconciliations are not efficient.

 

 

 

 

Sheree Marrah

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Progress

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment (continued)

Recommend the development of an Asset Disposal Policy which clearly sets out the procedures and delegations for asset disposals.

Council will develop a policy as part of our future work plan.

 

Sheree Marrah

 

In progress

December 2019

To be confirmed


Bank Reconciliations

Recommend that the month end bank reconciliations be reviewed timely at least within five days after the date of preparation.

 

The month end process has been updated to ensure the bank reconciliations are formally reviewed within the first five working days of the month following.

 

Sheree Marrah

 

In progress

 

June 2019

 

Related parties and conflicts of interest

5    Recommend that all interests are declared in the interest register.

In order to ensure completeness we recommend the Council perform a search of companies’ office, charities register and incorporated entities register.

 

 

Council will instigate a search of the companies office, charities register and incorporated entities register for completeness

 

 

Clare Sullivan

 

In progress

 

June 2019

 

 

To be confirmed

 

 

Matters from Previous Management Reports (Pre 2018)

What are we doing

Responsibility

Current Status

Current Due Date

Original Due Date

Policies

Ensure all policies are up to date and periodically reviewed.

 

A policy database has been established, and a register is in the process of being developed. These will result in a scheduled update and review programme to ensure it is managed more effectively.

 

 

Rex Capil

 

In progress

Policy staff are currently finalising the schedule and review programme

 

June 2019

 

June 2019

Contract Management

6    Develop a formal approach to contract management.

Develop a Contract Management Policy.

 

A consolidated contract register capturing past, present and upcoming contract obligations and exposure is to be developed. A contract management policy will also be established.

 

Matt Russell

 

Refer contract management commentary above.

 

Ongoing

 

Ongoing

Legislative compliance

Develop a formal system for legislative compliance.

 

During the latest LTP round, Council contracted an external consultant to help with creating the new CPF.  Every department were asked to revisit and re-established their KPI’s during this process.  Key Legislative Compliance requirements were also identified and included during this process. This process then allows to formalise key legislative requirements.

This has been further supported with the Finance and Audit Committee at its 26 March 2019 meeting recommending that Council adopt the draft Delegation Manual – which includes legislative compliance matters

 

Rex Capil

 

 

Complete

 

N/A

 

June 2018

Super user accounts

Reset administrator password and reduce dependence on this account.

 

Production SQL server has technical authorisation issues which require testing and resolution by specialist staff.

 

 

Trudie Hurst

 

In progress.  The technical challenge has been addressed and the updates to the required systems is underway with the goal to complete by 30/05/2019

 

May 2019

 

November 2018

Formal IS Agreement

Develop a formal agreement with Invercargill City Council should the Council retain the IS services provided by the Invercargill City Council.

 

Plan to disengage with ICC for the IS services they provide and requires infrastructure change to on-site data centre prior to this which is causing the delay. 

 

 

Trudie Hurst

 

 

In progress.  The migration is on hold until the server infrastructure upgrade planned for Q3 is completed

 

 

December 2019

 

 

December 2018

Formal Disaster Recovery Plan

The Council should develop a disaster recovery plan that will meet business requirements in the event of a disaster. Once developed this should be tested to ensure it would be effective in supporting the Council in the event of a disaster.

 

 

Develop a disaster recovery plan.

 

 

Trudie Hurst

 

A draft plan will be developed once the new infrastructure and computing environment has been confirmed

 

 

June 2020

 

 

 

Recommendations from NZTA audit

In 2017 NZTA completed two audits on the Councils investment performance. NZTA recommended that the Council updates their procurement strategy to reflect the NZTA in-house professional service policy requirements and that the updated strategy document should be endorsed by NZTA. NZTA also recommended that the late tenders’ policy is included in all contract tender documents.

Considering these recommendations in developing the updated procurement policy.

Matt Russell

Refer comments above in the procurement section

December 2019

 

 

 


Finance and Audit Committee

18 June 2019

 

Draft Insurance Policy

Record No:             R/19/3/4892

Author:                      Sheree Marrah, Financial Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The purpose of this report is to establish an Insurance Policy (the draft Policy Attachment A).  This policy will then guide Council staff in the insuring of Council’s assets into the future.  The committee is asked to recommend the adoption of this policy to Council.

Executive Summary

2       Staff have established this draft policy based on the current approach of Council in insuring its assets and accordingly mitigating its associated financial risk against loss or damage of its assets or particular events. 

3       The position proposed in this policy is that Council’s approach is to insure all assets, if possible, for replacement and mitigate any potential risks that may result in significant financial loss.

4        Staff are requesting the committee recommends the draft policy, which is included with the report as Attachment A, for adoption by Council.

 

 

Recommendation

That the Finance and Audit Committee:

a)            Receives the report titled “Draft Insurance Policy” dated 7 June 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 adopts the draft Insurance Policy, as attached to this report, including any amendments agreed at this meeting.

 


 

Background

5        Council currently has no formal policy or process outlining the requirements for insuring its assets or business risks.  Historically, staff have undertaken the renewal process in consultation with its insurance broker and relevant Council staff. 

6        The position proposed in this policy, as has generally been undertaken previously, is to fully insure assets where possible for replacement and mitigate any potential risks that may result in significant financial loss. This is limited by what can be insured and exclusions within policies as well as the administrative cost of seeking cover when dealing with minimal amounts.  Overall the approach is to limit the financial risk to Council from an event occurring.  Additionally staff have made decisions on the processes to be followed to insure these assets.  This policy attempts to capture these aspects.

7        Overall the objective of this policy is confirm and provide guidance to the staff as to the approach to be taken for insuring Council’s assets and risks.

8        In preparing this draft policy (Attachment A) staff documented the current approach, and identified areas for improvement.

9        This policy has been reviewed by Council’s insurance broker and suggested changes incorporated.

Summary of policy

10      Below is a summary of the key aspects of the Draft Insurance Policy (Attachment A).

Underground assets

11      This insurance policy provides coverage for key underground infrastructure, being water, wastewater and stormwater assets.  These assets are insured at replacement/reinstatement value and the value is reviewed on an annual basis.  Replacement/reinstatement value is established based on the annual revaluation provided for the preceding year’s Annual Report.

12      Given the significant value of Council’s underground assets (in excess of $200 million) these assets may be insured using non-traditional insurance policies, such as a cash accumulation mutual pool, whereby members make an annual contribution in return for cover for the cost of restoring infrastructure as a result of a disaster.  There is a risk with this approach that the cover available by the mutual pool will not sufficiently cover the total claims, especially when more than member is affected or there are multiple major events in an insurance year.

13      Please note, roads, footpaths and bridges are not insured.  The insurance market currently does not provide coverage for roads and footpaths.  We have been advised that coverage may be possible for bridges and will be investigated and discussed with the committee in the future. 
At this stage the market has identified Government’s coverage of these in an emergency including potential NZTA funding for emergency events.

Material Damage

14      This policy provides coverage for aboveground infrastructure (water and wastewater treatment structures and plant), buildings (including specified non-Council owned buildings), airport runways, jetties/wharves, boat ramps, playgrounds, public toilets, associated contents and other specified assets as noted on the property schedule.

15      These assets are insured at replacement/reinstatement value (including demolition costs where appropriate), which is reviewed on an annual basis.  The review comprises of either updating the insured value or by undertaking an independent valuation.  Where an insurance valuation does not occur, Council staff will apply inflation to the prior year’s insured value and review the assets for any known changes in value (additions, disposals, significant deterioration etc).  Inflation is determined based on BERL cost indices for the relevant year or equivalent. Valuations for insurance purposes occur at an interval dependent on the value of the asset (see further discussion below in issues section).

16      Where a specific reason exists for an asset to be insured at less than replacement/reinstatement value (ie a specified value or indemnity value), Finance and Audit Committee approval is required.

Business interruption

17      This policy provides coverage for loss/increased costs as a result of an interruption to the business as a result of damage to property insured by the material damage policy.

18      This risk is insured based on a specified value.  The value is determined based on the potential loss of specified revenues being:

-     All individual revenue streams over $10,000 per annum plus inflation

-     All commercial rentals over $10,000 per annum plus inflation

-     All residential revenues over $20,000 per annum plus inflation.

19      The revenues will be calculated based on actual revenue streams plus inflation and the policy provides coverage for up to 18 months post event.

Motor Vehicle

20      All Council owned vehicles covered under this policy are insured at market value, or replacement value for vehicles less than 12 months old.  Market value is established using independent valuations by a suitably qualified party and consideration is given to extensive customisation (ie bookbus).  Replacement value is represented by cost.

Standing Timber/Forestry

21      Council forestry are insured at market value.  Market value is based on the annual revaluation provided for the preceding year’s Annual Report, completed by a suitably qualified party.  Insured events are fire and hail, windstorm and earthquake cover are excluded.

Crime/Fidelity Guarantee, Employers Liability, Statutory Liability, Public Liability, Professional Indemnity

22      These risks are all insured for a relevant specified value.  The values are reviewed on an annual basis and amended as necessary.

Airport Owners and Operators Liability, Harbourmasters Liability and Wreck Removal

23      These risks are insured based on a specified value.  The value is to be reviewed on an annual basis and amended as necessary.

Personal Accident

24      This policy provides coverage for executive management (24 hours a day, worldwide) and all other staff (24 hours a day whilst on Council business).

25      This risk is insured based on a specified value.  The value and level of indemnity is to be reviewed on an annual basis and amended as necessary.

Travel

26      This policy provides coverage for disruption to travel, accident, illness, injury or death of a staff member and accompanying family members whilst travelling outside of New Zealand on authorised Council business and associated private travel.

27      This risk is insured based on the anticipated number of relevant overseas travel days.  The level of indemnity is reviewed on an annual basis and amended as considered necessary. 

Issues

Roads, footpaths and bridges

28      This policy has been prepared to specifically exclude insurance of roads, footpaths and bridge assets.  This is on the basis that there is a limited availability of such insurance in the current market.

29      The risk associated with this approach is that Council will be liable for any damage caused to any of these assets, however noting that there is significant NZTA and government funding for such infrastructure.

30      As noted above staff will investigate options for bridge cover and come back to the committee in due course. 

Revaluation of significant assets

31      During the development of this policy staff noted that some significant assets insured under the material damage policy do not appear to be subject to regular valuation.

32      The significant identified assets are the Te Anau/Manapouri Airport runway and the various wharves and jetties.  Council staff considered the nature of these assets and the risk of significant damage or total loss and believe that a five-yearly revaluation frequency would be suitable.  The policy has been drafted to include this proposed approach.

33      The only risk associated with this change is that there will be a cost associated with the insurance revaluation which in some instances will be borne by the relevant local community.

34      Staff will look to work with relevant activity managers to identify suitably qualified personnel able to undertake the appropriate valuations in time for the 2020/2021 renewal.

Revaluation frequency for Council owned buildings

35      Staff considered the current rising value of property within the district as well as increased construction costs and reflected on the current tiered approach to insurance revaluations and whether it was still appropriate.  The table below indicates the current approach as well as the alternative proposed in the policy:

Revaluation frequency for insurance purposes

Building value

Current

Alternative

5 yearly

< $750,000

131 buildings

< $1.0 million

145 buildings

3 yearly

$750,001 - $1.5 million

38  buildings

$1.0 million - $2.0 million

26  buildings

Annually

> $1.5 million

14  buildings

> $2.0 million

12  buildings

36     Council staff considered the nature of these assets and the risk of significant damage or total loss and believe that the alternative valuation frequency would still be suitable. 

37      The risk associated with this change is that in the event of significant or total loss to one of our buildings, the insurance coverage is insufficient to replace the building based on an valuation that it out of date.  Given that it is only properties under $2.0 million which are being valued 3 or 5 yearly, and the revaluation is updated annually for an inflation factor, the likelihood of a shortfall is minimal.  Council’s broker concurs with this approach and notes that the risk may be increased where building costs have increased faster than inflation. To address this, staff will assess in the intermediate years if based on property factors in the market (eg: sales prices increasing greater than inflation) means a review needs to occur earlier.

38      The 2019/2020 insurance policy has been based on the current method described above.  If the committee approves the policy the alternative method will be used for the 2020/21 insurance policy.

Insuring non-Council owned assets

39      For a number of years, Council has insured approximately 21 non-Council owned assets, predominately sports clubs and halls.  This was initially done to assist the communities, as Council was able to obtain more competitive premiums given the volume of assets that we insure.  However, community groups now have policies with a $5,000 excess which potentially is not suitable to the nature of their activities and risks.  It also exposes Council to a level of additional risk that we have no control over, ie if there is frequent claims for non-Council owned assets, this will increase our claims history and potentially future premiums.  To date claims have been minimal.

40      Staff wish to take this opportunity to seek confirmation from the Committee that they agree to continue to insure the existing non-Council owned assets.  The policy has been drafted to continue to do this.  

Demolition cover for assets other than buildings

41      The policy has been developed to provide for demolition costs to be covered in any claim. Although the current policies incorporate this in the values insured, during the development of this policy staff noted that they are not covered in the material damage schedule for the airport runway, water and wastewater buildings/structures and a number of non-building assets (such as wharves, jetties etc).  These assets are valued at around $6.8 million.

42      Staff will work to incorporate these costs in future insurance renewals.

Windstorm and Earthquake coverage for Forestry assets

43      During the development of this policy staff noted that Council’s current forestry policy only includes cover for hail and fire events.  Excluded is coverage for windstorm and earthquake events. 

44      The risk associated with this is that Council will not be covered for any damage to it forests incurred by windstorm or earthquake.  Staff are seeking guidance from its forestry managers to further understand the risk associated with not having this cover in place.  Additionally Council staff have requested quotes for this coverage from its insurance broker, however note that these will not be available in time for the 2019/2020 renewal.

Factors to Consider

Legal and Statutory Requirements

45      Section 101 of the Local Government Act requires Council to manages its finances prudently and provide for current and future interests of the community. 

Community Views

46      Council staff have not specifically sought community views, however staff believe that the public will be in support of the intent of the policy ensuring Council has appropriate insurance in place to mitigate its risk.

Costs and Funding

47      There is no specific cost with the establishment of this policy, however, the final policy will affect Council’s approach to insurance, and may result in additional premiums and/or insurance revaluation costs.

Policy/Risk Implications

48      Council staff have considered this draft policy in conjunction with other Council policies as outlined in section 10 of the draft Insurance Policy. 

49      The main risk associated with this policy is that Council’s level of insurance may not be sufficient to cover the full amount of any loss/damage.  For this reason Council hold a specified disaster recovery reserve (approximately $1.4 million) as well as the ability to access government funding in the event of a natural disaster.  As discussed in Councils financial strategy, Council currently has no external borrowings, and therefore there is capacity available to borrow external debt if required.

50      Staff consider this risk can also be mitigated with the implementation of this policy and the continued support and guidance from Council’s insurance broker.

Analysis

Options Considered

51      Two reasonably practicable options have been identified regarding how the committee could proceed. These are:

·    Option 1:   That the committee recommends to Council that it adopts the draft Insurance     Policy, including any amendments agreed at this meeting;

·    Option 2:   That the committee recommends major changes to the draft insurance policy and this is brought back to the committee at a future date.

Analysis of Options

Option 1 – That the committee recommends to Council that it adopts the draft Insurance Policy, including any amendments agreed at this meeting

Advantages

Disadvantages

·   The draft policy considers the various Council assets and risks and approach to insurance.  It is good practice in the local government sector to have Council’s approaches documented in a policy.

·   Provides Council staff with guidance on its approach to insuring its assets and business risks.

·   None identified

Option 2 – That the committee recommends major changes to the draft Insurance Policy and this is brought back to the committee at a future date

Advantages

Disadvantages

·   If the staff approach to the proposed draft policy is incorrect it can be rectified by revisiting the policy.

·   None identified

Assessment of Significance

52      This policy is not considered significant in terms of Council’s Significance and Engagement policy because this policy will not have a large impact on or consequence to the whole District, or people affected by or interested in this matter.  As a consequence community feedback is not being sought on this policy.

53      However although consultation is not being undertaken, Council is still required to give consideration to the views and preferences of people likely to be affected by or have an interest in the matter, as required by Local Government Act 2002 section 78(1).

 

54      As noted above Council staff believe that the public will be in support of the intent of the policy ensuring Council has appropriate insurance in place to mitigate its risk.

Recommended Option

55      It is recommended that the committee recommends to Council that it adopts the draft Insurance Policy, including any amendments agreed at this meeting (Option 1).

Next Steps

56      If the committee proceed with Option 1, staff will make any agreed amendments from this meeting and present the draft Insurance Policy to Council at its meeting on 7 February 2019, for adoption.

57      Additionally the approaches outlined in this policy, where possible (due to time constraints), will be followed in preparation for the 2019/2020 insurance renewal due on 30 June 2019.

 

 

Attachments

a             DRAFT Insurance Policy    

 


Finance and Audit Committee

18 June 2019

 


 


 


 


 


 


 


 


 

  

 


Finance and Audit Committee

18 June 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 Annual Insurance Renewal

C8.2 Milford Opportunities Project - funding application

C8.3   Stewart Island/Rakiura Wind Project - funding application

C8.4   Pyramid Bridge Tender Evaluation Outcome

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

Annual Insurance Renewal

s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

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.

Milford Opportunities Project - funding application

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.

Stewart Island/Rakiura Wind Project - funding application

s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

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

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

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

Pyramid Bridge Tender Evaluation Outcome

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.