Minutes of a meeting of the Audit, Risk and Finance Subcommittee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Tuesday 27 June 2017, commencing at 9.04am
Present: Mr J Peters (Chairperson), Her Worship the Mayor R Reese, Councillor B Dahlberg, and Mr J Murray
In Attendance: Councillors P Matheson and S Walker, Acting Chief Executive (David Hammond), Group Manager Infrastructure (A Louverdis), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Internal Audit Analyst (L Anderson), Manager Organisational Assurance and Emergency Management (R Ball), Manager Consents and Compliance (M Bishop), Health and Safety Adviser (M Hughes), Senior Accountant (T Hughes), Risk and Procurement Analyst (S Vaughan), Manager People and Capability (S Vincent), and Administration Adviser (L Canton)
Apology: Councillor I Barker
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Resolved AUD/2017/013 That the Subcommittee Receives and accepts an apology from Councillor Barker. |
2. Confirmation of Order of Business
There was no change to the order of business.
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
5.1 18 May 2017
Document number M2590, agenda pages 10 - 15 refer.
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Resolved AUD/2017/014 That the Subcommittee Confirms the minutes of the meeting of the Committee, held on 18 May 2017, as a true and correct record. |
6. Status Report - Audit, Risk and Finance Subcommittee - 27 June 2017
Document number R7943, agenda pages 16 - 18 refer.
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Resolved AUD/2017/015 That the Subcommittee Receives the Status Report Audit, Risk and Finance Subcommittee 27 June 2017 (R7943) and its attachment (A1753947). |
The Chairperson acknowledged the new Acting Chief Executive, David Hammond.
8. Corporate Report to 30 April 2017
Document number R6999, agenda pages 19 - 31 refer.
Group Manager Corporate Services, Nikki Harrison presented the report and answered questions.
It was noted that the subcommittee would like to see profit and loss accounts for operating accounts to ascertain that all income was being recorded.
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Resolved AUD/2017/016 That the Subcommittee Receives the report Corporate Report to 30 April 2017 (R6999) and its attachments (A1766296 and A1771251). |
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Resolved AUD/2017/017 That the Subcommittee Requests that profit and loss accounts for the forestry, marina, and camping grounds consolidated accounts be brought to a future meeting. |
9. Balance Sheet reconciliation review
Document number R7002, agenda pages 32 - 39 refer.
Senior Accountant, Tracey Hughes, presented the report. Ms Hughes and Group Manager Community Services, Chris Ward, answered questions.
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Resolved AUD/2017/018 That the Subcommittee Receives the report Balance Sheet reconciliation review (R7002) and its attachment (A1774923). |
10. Liability Management Policy review
Document number R7529, agenda pages 40 - 58 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report and answered questions.
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Resolved AUD/2017/019 That the Subcommittee Receives the report Liability Management Policy review (R7529) and its attachment (A1765543). |
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Recommendation to Council AUD/2017/020 That the Council Adopts the amended Liability Management Policy (A1765543). |
11. Carry Forwards (Interim) 2016/17
Document number R7555, agenda pages 59 - 68 refer.
Senior Accountant, Tracey Hughes, presented the report. Ms Hughes and Acting Chief Executive, David Hammond, answered questions.
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Resolved AUD/2017/021 That the Subcommittee Receives the report Carry Forwards (Interim) 2016/17 (R7555) and its attachments (A1770607). |
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Recommendation to Council AUD/2017/022 That the Council Approves continuing work on 2016/17 projects within the 2016/17 approved budgets, noting a final report on carry forwards will come to the Audit, Risk and Finance subcommittee on 8 September 2017. |
12. Council Risk Management Policy and Risk Criteria
Document number R7572, agenda pages 69 - 82 refer.
Risk and Procurement Analyst, Steve Vaughan, presented the report and answered questions about the governance role in risk management.
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Resolved AUD/2017/023 That the Subcommittee Receives the report Council Risk Management Policy and Risk Criteria (R7572) and its attachments: Risk Management Policy (A1553263) and Council Risk Criteria (A1545157). |
Mr Murray, seconded by Councillor Dahlberg, moved the recommendation to Council in the officer report.
It was noted that the policy should also address the governance body’s role in the areas of risk management.
It was further noted that the term ‘value’ in clause 5.6 of the policy was not limited to monetary value.
Attendance: The meeting adjourned from 10.58am until 11.14am.
It was suggested that the Chairperson work with Mr Vaughan to amend the policy to clarify the role of governance in the policy’s areas of responsibility.
Mr Peters, seconded by Her Worship the Mayor moved an amendment:
That the Council
Approves the Risk Management Policy (A1553263) as amended by the Chairperson of the Audit, Risk and Finance Subcommittee and the Risk & Procurement Analyst to include clarification of escalation of continued tolerance (table 3 of the Policy) and the role of governance in the areas of responsibility (clause 6 of the Policy), and adopts the Council Risk Criteria (A1545157).
The amendment was put and carried and became the substantive motion.
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Recommendation to Council AUD/2017/024 That the Council Approves the Risk Management Policy (A1553263) as amended by the Chairperson of the Audit, Risk and Finance Subcommittee and the Risk & Procurement Analyst to include clarification of escalation of continued tolerance (table 3 of the Policy) and the role of governance in the areas of responsibility (clause 6 of the Policy), and adopts the Council Risk Criteria (A1545157). |
13. Internal Audit - Annual Audit Plan to 30 June 2018
Document number R7587, agenda pages 83 - 91 refer.
Internal Audit Analyst, Lynne Anderson, presented the report. Ms Anderson and Group Manager Corporate Services, Nikki Harrison answered questions.
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Resolved AUD/2017/025 That the Subcommittee Receives the report Internal Audit - Annual Audit Plan to 30 June 2018 (R7587) and its attachment (A1748975); |
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Recommendation to Council AUD/2017/026 That the Council Approves the Internal Audit – Annual Audit Plan to 30 June 2018 (A1748975). |
14. Health and Safety Governance Charter review
Document number R7622, agenda pages 92 - 99 refer.
Manager Organisational Assurance and Emergency Manager, Roger Ball, and Health and Safety Adviser, Malcolm Hughes, presented the report.
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Resolved AUD/2017/027 That the Subcommittee Receives the report Health and Safety Governance Charter review (R7622) and its attachment (A1767136); |
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Recommendation to Council AUD/2017/028 That the Council Approves the revised Health and Safety Governance Charter (A1767136). |
15. Protected disclosure policy
Document number R7631, agenda pages 100 - 111 refer.
Group Manager Corporate Services, Nikki Harrison presented the report. Ms Harrison, Acting Chief Executive, David Hammond, and Manager People and Capability, Stephanie Vincent, answered questions.
It was noted that the issue of protected disclosures also applied to governance, and a suggestion that officers investigate how the policy could be expanded to include elected members.
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Resolved AUD/2017/029 That the Subcommittee Leaves the report to lie on the table awaiting further advice from the Chief Executive on amending the policy to cover elected members. |
16. Trafalgar Park Seating and Sale of the Punawai
Document number R7383, agenda pages 112 - 138 refer.
Group Manager Community Services, Chris Ward, and Manager Consents and Compliance, Mandy Bishop presented the report and answered questions.
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Resolved AUD/2017/030 That the Subcommittee Receives the report Trafalgar Park Seating and Sale of the Punawai (R7383) and its attachments (A345448, A1311242, R6448 and A1412442); and Notes that the purchase of the Trafalgar Park Seats complied with Council’s Procurement Policy 2015 (A345448); and Notes that the Council approved the private sale of the Punawai for reasons of timeliness and efficiency, and recognised at the time of the sale that this approach departed from Council’s Asset Disposal Policy 2015 (A1412442). |
17. Interim audit letter for the year ending 30 June 2017
Document number R7627, agenda pages 139 - 147 refer.
Director, Audit NZ, Bede Kearney presented the report.
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Resolved AUD/2017/031 That the Subcommittee Receives the report Interim audit letter for the year ending 30 June 2017 (R7627) and its attachment (A1775216); and Notes the suggested responses to the recommendations. |
It was noted that Bede Kearney, of Audit NZ would be in attendance for Item 3 of the Public Excluded agenda to answer questions and, accordingly, the following resolution was passed:
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Resolved AUD/2017/032 That the Subcommittee Confirms, in accordance with section 48(5) of the Local Government Official Information and Meetings Act 1987, Bede Kearney of Audit NZ remains after the public has been excluded, for Item 3 of the Public Excluded agenda (Bad debts for the year ending 30 Jun 2017), as he has knowledge that will assist the Council; Notes, in accordance with section 48(6) of the Local Government Official Information and Meetings Act 1987, the knowledge that Bede Kearney possesses relates to Council’s level of bad debt. Murray/Peters Carried |
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Resolved AUD/2017/033 That the Subcommittee Excludes the public from the following parts of the proceedings of this meeting. 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: |
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Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
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1 |
Bad debts for the year ending 30 June 2017
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Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
The meeting went into public excluded session at 12.32pm and resumed in public session at 12.39pm.
19. Re-admittance of the Public
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Resolved AUD/2017/034 That the Subcommittee Re-admits the public to the meeting. |
There being no further business the meeting ended at 12.39pm.
Confirmed as a correct record of proceedings:
Chairperson
Date