AGENDA
Ordinary meeting of the
Audit, Risk and Finance Subcommittee
Tuesday 13 February 2018
Commencing at 9.00am
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: Mr John Peters (Chairperson), Her Worship the Mayor Rachel Reese, Councillor Ian Barker, Councillor Bill Dahlberg and Mr John Murray
Guidelines for councillors attending the meeting, who are not members of the Committee, as set out in Standing Order 12.1:
· All councillors, whether or not they are members of the Committee, may attend Committee meetings
· At the discretion of the Chair, councillors who are not Committee members may speak, or ask questions about a matter.
· Only Committee members may vote on any matter before the Committee
It is good practice for both Committee members and non-Committee members to declare any interests in items on the agenda. They should withdraw from the room for discussion and voting on any of these items.
Audit, Risk and Finance
Subcommittee
13 February 2018
1. Apologies
Nil
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
Document number M3123
Recommendation
That the Audit, Risk and Finance Subcommittee
Confirms the minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 14 November 2017, as a true and correct record.
6. Status Report - Audit Risk and Finance Subcommittee -13 February 2018 17 - 21
Document number R8930
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the Status Report Audit, Risk and Finance Subcommittee 13 February 2018 (R8930) and its attachment (A1753947).
7. Chairperson's Report
8. Theatre Royal Loan 22 - 41
Document number R8838
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Theatre Royal Loan (R8838) and its attachments (A1898640 and A1906067).
Recommendation to Council
That the Council
Agrees to take on the Nelson Historic Theatre Trust’s loan of $632,256 from the Nelson Building Society; and
Confirms that it expects the Nelson Historic Theatre Trust to repay the full loan amount (total $2,132,256); and
Agrees to increase the mortgage over the building to $2,132,256; and
Sets the loan repayment terms for the Nelson Historic Theatre Trust at $60,000 per year, payable quarterly (commencing in September 2018), with payment terms subject to review every five years.
9. Audit NZ - Letter to the Council on the audit for year ending 30 June 2017 42 - 50
Document number R8222
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Audit NZ - Letter to the Council on the audit for year ending 30 June 2017 (R8222) and its attachment (A1891276).
10. Tendering Processes - Follow Up Report 51 - 74
Document number R8832
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Tendering Processes - Follow Up Report (R8832) and its attachments (A1856124 and A1897197); and
Notes that all recommendations rated as high from the 2016 Crowe Horwath Report have been actioned.
11. Audit NZ - Audit Engagement Letter for the Long Term Plan 2018-28 75 - 103
Document number R8865
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Audit NZ - Audit Engagement Letter for the Long Term Plan 2018-28 (R8865) and its attachment (A1894901); and
Notes the subcommittee can provide feedback on the Audit Engagement Letter to Audit NZ if required and that the Mayor will sign the letter once the subcommittee’s feedback (if any) has been incorporated.
12. Corporate Report to 31 December 2017 104 - 114
Document number R8857
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Corporate Report to 31 December 2017 (R8857) and its attachments (A1903395 and A1904902).
13. Internal Audit Quarterly Report to 31 December 2017 115 - 117
Document number R8869
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Internal Audit Quarterly Report to 31 December 2017 (R8869) and its attachment (A1894689).
14. Key Organisational Risks Calendar 2017 - 4th Quarterly Report 118 - 135
Document number R8797
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Key Organisational Risks Calendar 2017 - 4th Quarterly Report (R8797) and its attachment A1895817.
15. Health, Safety and Wellbeing Performance Report, October - December 2017 136 - 152
Document number R8871
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Health, Safety and Wellbeing Performance Report, October - December 2017 (R8871) and its attachment (A1895727).
16. Security Incidents at Council Libraries 153 - 166
Document number R8872
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Security Incidents at Council Libraries (R8872) and its attachment (A1848048).
17. Recruitment in a Tight Labour Market 167 - 184
Document number R8885
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Recruitment in a Tight Labour Market (R8885) and its attachment (A1896279).
Public Excluded Business
That the Audit, Risk and Finance 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:
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
|
1 |
Audit, Risk and Finance Subcommittee Meeting - Public Excluded Minutes - 14 November 2017 |
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: · To maintain legal professional privilege |
19. Re-admittance of the public
Recommendation
That the Audit, Risk and Finance Subcommittee
Re-admits the public to the meeting.
Note:
· The Commercial Subcommittee is scheduled to commence at 1pm.
· Lunch will be available from 12pm.
Audit, Risk and Finance Subcommittee Minutes - 14 November 2017
Minutes of a meeting of the Audit, Risk and Finance Subcommittee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Tuesday 14 November 2017, commencing at 9.01am
Present: Mr J Peters (Chairperson), Her Worship the Mayor R Reese, Councillor I Barker, Councillor B Dahlberg and Mr J Murray
In Attendance: Councillors G Noonan, P Matheson, S Walker, Group Manager Infrastructure (A Louverdis), Group Manager Strategy and Environment (C Barton), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Senior Strategic Adviser (N McDonald) Tracey Hughes and Governance Adviser (E Stephenson)
Apology: Her Worship the Mayor R Reese for lateness
1. Apologies
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Resolved AUD/2017/069 That the Audit, Risk and Finance Subcommittee Receives and accepts the apology from Her Worship the Mayor for lateness. Barker/Dahlberg Carried |
2. Confirmation of Order of Business
There was no change to the order of business.
3. Interests
Councillor Barker declared an interest in Tahunanui Beach Holiday Park.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 28 September 2017
Document number M2963, agenda pages 7 - 13 refer.
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Resolved AUD/2017/070 That the Audit, Risk and Finance Subcommittee Confirms the minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 28 September 2017, as a true and correct record. Murray/Barker Carried |
6. Status Report - Audit Risk and Finance Subcommittee -14 November 2017
Document number R8676, agenda pages 14 - 17 refer.
Group Manager Corporate Services, Nikki Harrison answered questions on this item.
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Resolved AUD/2017/071 That the Audit, Risk and Finance Subcommittee Receives the Status Report Audit, Risk and Finance Subcommittee 14 November 2017 (R8676) and its attachment (A1753947). Barker/Murray Carried |
Attendance: Her Worship the Mayor entered the meeting at 9.06am.
7.
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Chairperson's Report |
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The Chairperson provided a verbal report in which he commented on report scheduling, noting that the August month-end Corporate Report had only been received that day, which was ten weeks after the period in question. He said that this did not provide opportunity for adequate oversight and monitoring and requested that the minutes record that the Subcommittee did need more timely information, noting that the Group Manager Corporate Services would be tabling an update on September month-end during the Corporate Report item. |
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Resolved AUD/2017/072 That the Audit, Risk and Finance Subcommittee Receives the Chairperson’s verbal report. Mr/Barker Carried |
8. Report from 28 September Works and Infrastructure Committee (Chairperson’s Report)
Document number R8681, agenda pages 18 - 20 refer.
Chairperson of the Works and Infrastructure Committee, Councillor Walker, spoke to the report and Group Manager Infrastructure Alec Louverdis answered questions.
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Resolved AUD/2017/073 That the Audit, Risk and Finance Subcommittee Receives the (Chairperson’s) Report from 28 September Works and Infrastructure Committee (R8681) and its attachment (A1839317). Dahlberg/Barker Carried |
9. Corporate Report to 31 August 2017
Document number R7001, agenda pages 21 - 34 refer.
Group Manager Corporate Services, Nikki Harrison, spoke to the report and answered questions. The September 2017 Key Indicators report was tabled.
A typographical error was pointed out in agenda page 28, Attachment 1 – Borrowing statistics - 33.6% should be 3.36%.
Councillor Barker left the table at 9.43am, during discussion on the Tahunanui Beach Holiday Park and returned to the table at 9.48am.
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Resolved AUD/2017/074 That the Audit, Risk and Finance Subcommittee Receives the report Corporate Report to 31 August 2017 (R7001) and its attachments (A1854215, A1853357 and A1852936). Murray/Dahlberg Carried |
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Attachments 1 A1865625 Key Indicators September 2017 |
10. Health and Safety: Quarterly Report
Document number R7022, agenda pages 35 - 48 refer.
Health and Safety Adviser Malcolm Hughes answered questions on the report.
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Resolved AUD/2017/075 That the Audit, Risk and Finance Subcommittee Receives the report Health and Safety: Quarterly Report (R7022) and its attachment (A1845583).
Her Worship the Mayor/Dahlberg Carried |
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Recommendation to Council AUD/2017/076 That the Council Notes the report Health and Safety: Quarterly Report (R7022) and its attachment (A1845583); and Acknowledges the assessment of critical health and safety risks contained in the attachment (A1845583).
Her Worship the Mayor/Dahlberg Carried |
11. Insurance renewal 2017/18
Document number R7525, agenda pages 49 - 54 refer.
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Resolved AUD/2017/077 That the Audit, Risk and Finance Subcommittee Receives the report Insurance renewal 2017/18 (R7525); and Notes the decision made to exit Local Authority Protection Program (LAPP) and join the Aon South Island Collective from 1 July 2017; and Notes the decision made to purchase an additional $125 million shared limit (to a total limit of $250 million) with a Council sublimit of $160 million from 1 November 2017. Dahlberg/Barker Carried |
12. Internal Audit Quarterly Report to 30 September 2017
Document number R7589, agenda pages 55 - 59 refer.
Internal Audit Analyst, Lynn Anderson updated the committee on recent audits undertaken and answered questions.
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Resolved AUD/2017/078 That the Audit, Risk and Finance Subcommittee Receives the report Internal Audit Quarterly Report to 30 September 2017 (R7589). Dahlberg/Barker Carried |
13. Key Organisational Risks 2017 - 3rd Quarterly Report
Document number R7681, agenda pages 60 - 77 refer.
Risk and Procurement Analyst, Steve Vaughan, spoke to the report and answered questions.
Discussion took place on the risks to the organisation caused by staff shortages and it was agreed to add a request for the provision of a report to the Audit, Risk and Finance Subcommittee on this issue to the motion.
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Resolved AUD/2017/079 That the Audit, Risk and Finance Subcommittee Receives the report Key Organisational Risks 2017 - 3rd Quarterly Report (R7681) and its attachment (A1842185); and Requests officers report back on what is being done to mitigate the risk to the organisation and its business resulting from staff shortages. Murray/Her Worship the Mayor Carried |
Her Worship the Mayor R Reese requested that the public be excluded to allow confidential discussion on a matter relating to a reputational risk to Council, as part of Item 13 - Key Organisational Risks 2017 – 3rd Quarterly Report.
Public Excluded Business
14. Exclusion of the Public
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Resolved AUD/2017/080 That the Audit, Risk and Finance 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:
Her Worship the Mayor/Dahlberg Carried |
The meeting went into public excluded session at 10.50am and resumed in public session at 11.19am, at which time the meeting was adjourned.
15. Re-admittance of the public
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Resolved AUD/2017/081 That the Audit, Risk and Finance Subcommittee Re-admits the public to the meeting. Her Worship the Mayor/Barker Carried |
The meeting was reconvened at 11.38am.
16. Section 17A Service Delivery Review progress report
Document number R8167, agenda pages 78 - 123 refer.
Policy Adviser, Gabrielle Thorpe, spoke to the report and answered questions.
It was noted that the correct date for the funding model change for Saxton field was July 2018, not September 2018, as stated on page 102 of the agenda (Attachment 5 of the report).
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Resolved AUD/2017/082 That the Audit, Risk and Finance Subcommittee Receives the report Section 17A Service Delivery Review progress report (R8167) and its attachments (A1824993, A1845758, A1844354, A1843923, A1837281, A1633609, A1819898, A1844359, A1853049). Barker/Dahlberg Carried |
17. Tax Risk Management Strategy
Document number R8585, agenda pages 124 - 132 refer.
Senior Accountant, Tracey Hughes spoke to the report and answered questions.
Discussion took place regarding the management of council’s tax liability as a whole to maximise its efficiency. It was noted that Council would be engaging with Tasman District Council to consider this topic. It was agreed that a request for the provision of a report to the Subcommittee on efficient tax management, after that work has been completed, be added to the motion.
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Resolved AUD/2017/083 That the Audit, Risk and Finance Subcommittee Receives the report Tax Risk Management Strategy (R8585) and its attachments (A1847439 and A1847460); and Requests that a review is undertaken of the group tax strategy to ensure maximum group efficiencies.
Murray/Dahlberg Carried |
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Recommendation to Council AUD/2017/084 That the Council Adopts the Tax Risk Management Strategy (A1847439). Barker/Dahlberg Carried |
There being no further business the meeting ended at 11.55am.
Confirmed as a correct record of proceedings:
Chairperson
Date
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8930
Status Report - Audit Risk and Finance Subcommittee -13 February 2018
1. Purpose of Report
1.1 To provide an update on the status of actions requested and pending.
2. Recommendation
|
That the Audit, Risk and Finance Subcommittee Receives the Status Report Audit, Risk and Finance Subcommittee 13 February 2018 (R8930) and its attachment (A1753947). |
Attachments
Attachment 1: A1753947 - Audit Risk and Finance Subcommittee Status Report ⇩
Item 8: Theatre Royal Loan
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8838
Theatre Royal Loan
1. Purpose of Report
1.1 To consider issues relating to the loan to the Nelson Historic Theatre Trust.
2. Summary
2.1 The Nelson Historic Theatre Trust received a loan ($1.5 million) from Council to complete the capital redevelopment of the Theatre. The loan is secured against the building asset. The Trust also has a loan ($0.63 million) from the Nelson Building Society (NBS). Due to a combination of issues, repayments have not been made against the Council loan, and the Trust is making interest only repayments against the NBS loan.
2.2 This position is unsustainable. It is recommended that Council takes on the NBS loan and requests the Trust make repayments against that loan of $60,000 per annum. This course of action gives both the Trust and the Council some long term certainty.
3. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Theatre Royal Loan (R8838) and its attachments (A1898640 and A1906067). |
Recommendation to Council
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Agrees to take on the Nelson Historic Theatre Trust’s loan of $632,256 from the Nelson Building Society; and Confirms that it expects the Nelson Historic Theatre Trust to repay the full loan amount (total $2,132,256); and Agrees to increase the mortgage over the building to $2,132,256; and Sets the loan repayment terms for the Nelson Historic Theatre Trust at $60,000 per year, payable quarterly (commencing in September 2018), with payment terms subject to review every five years. |
4. Background
4.1 At its meeting on 23 June 2016, the Audit, Risk and Finance Subcommittee received an update on the Loan that had been made to the Nelson Historic Theatre Trust (report R6040). The Trust had not been making repayments on its loan to Council, pending long term resolution of the planned transfer of ownership of the facility.
4.2 The sub-committee resolved:
THAT a report of available options in relation to the Theatre Royal Loan is prepared for the Audit, Risk and Finance Subcommittee or its successor.
4.3 A further report (R6800, attachment 1) was presented to the Governance Committee on 9 March 2017 where the Committee requested that a workshop be held to consider all options, and to allow the Committee to hear from the Chairperson of the Trust. That workshop took place on 14 September 2017.
4.4 The Committee heard that the Trust was in a stable financial position operationally, but faced continuing uncertainty due to the loan position.
5. Discussion
5.1 The Trust continues to operate with a small net surplus. The Trust has a renewal programme that requires significant investment in the next few years and has identified the need to deliver surpluses in order to fund those renewals. The total expected over the next 15 years is approximately $890,000.
5.2 The Trust owes Council $1.5 million and also has a loan of $632,256 with the NBS. It currently pays around $40,000 interest to the NBS, but has not been able to afford repayments on capital.
5.3 The Trust has confirmed that its preferred course of action is as recommended in this report. Repayments of $60,000 per year, payable quarterly, are manageable and will allow the Trust to fund the renewal programme. There is a risk that asking the Trust to fund more than $60,000 per annum would be financially unsustainable or would lead to assets not being maintained/renewed appropriately. The Trust is not seeking additional operating grant increases over and above CPI.
5.4 The Trust has agreed to five-yearly reviews in order that Council can be assured that repayments will increase if the Trust is in a financial position to do so.
5.5 The increased cost to Council from providing the additional loan ($632,256) at an interest free rate is likely to be around $30,000 per year.
Comparison of Grant funding
5.6 The Committee asked for further information on the level of grant funding received by the Trust.
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Project |
NCC grant |
Other grants/ fundraising |
Loans |
|
Suter |
$6 million |
$6 million |
Nil |
|
Nelson School of Music |
$3.15 million |
$3.4 million |
Nil |
|
Theatre Royal |
$0.805 million |
$3.675 million |
$2.14 million |
5.7 When Council initially received the refurbishment proposal from the Trust, the estimated project cost was $2 million. The combined grants made available from Nelson City and Tasman District Councils at that time added up to $1 million. Subsequent decisions of Council were to loan fund rather than grant fund as the project costs escalated.
5.8 On that basis it is not recommended that prior loans made be converted into grants.
6. Options
6.1 A wide range of options were presented in report R6800. These have been condensed based on prior feedback. The recommended option is for Council to take on the NBS loan and require repayment of $15,000 each quarter, $60,000 total each year. It is also recommended that this arrangement be reviewed every five years to enable the Trust to increase its repayments if its finances allow.
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Option 1: Council takes on NBS loan, adds it to the existing $1.5 million owed to Council and sets the Trust affordable repayment terms. |
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Advantages |
· Gives certainty and clarity to the Trust and to ratepayers · Allows Trust to focus on development and delivery of services · Better value to the ratepayer than NHTT continuing to divert funds for interest payments · Gives Council an additional interest in the building asset should the Trust default/wind up. |
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Risks and Disadvantages |
· Some additional cost to rates - approximately $30,000 p.a. in total interest costs · The repayment period likely to be around 35 years (at the suggested repayment amount). |
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Option 2: Council seeks to enforce current loan repayment terms and conditions |
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Advantages |
· Adheres to the original agreement |
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Risks and Disadvantages |
· Does not resolve NBS loan issues · The Trust may not be able to afford the payment schedule leading to either cuts in service or loan defaults · May result in significant unbudgeted costs to Council if the Trust were to decide to wind up |
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Option 3: Council writes off part or all of the loan |
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Advantages |
· Gives certainty and clarity to the Trust and to ratepayers · Allows Trust to focus on development and delivery of services |
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Risks and Disadvantages |
· Additional cost to rates (up to $2.1 m) · Runs counter to previous Council decisions · Sets precedent to other community groups that Council may write off loan funding. |
7. Conclusion
7.1 Council has requested further information to enable it to make a decision on how it will treat the Nelson Historic Theatre Trust’s outstanding loans. A recommended way forward is presented.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1898640 - Previous report - Theatre Royal Loan ⇩
Attachment 2: A1906067 - Theatre Royal Loan - Letter of Support and Nelson Building Society Statement - Mark Christensen - 30Jan2018 ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government The provision of funding for the Theatre Royal is a discretionary activity of Council that contributes to the provision of local infrastructure and local public services. |
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2. Consistency with Community Outcomes and Council Policy Support for the Theatre Royal is consistent with the Regional Arts Strategy and the Arts Policy. It contributes to the community outcomes of: · Our communities have opportunities to celebrate and explore their heritage, identity and creativity, and; · Our communities have access to a range of social, educational and recreational facilities and activities. |
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3. Risk There are risks around every option. As long as there is an outstanding loan, there is a risk that something may happen that means it will not be paid. If Council took ownership of the building it may have additional ongoing expenses to fund. There is a reputational risk if Council is seen to force the Trust to wind up. This eventuality, whilst unlikely under most options, would also result in Council facing additional costs if it wanted to continue with theatre operations. There is risk that by writing off the loan, Council sends a signal to other groups that have loans with Council that this is an option for them. |
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4. Financial impact Writing off the loan will have an impact on rates over the period in which the loan is written off. |
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5. Degree of significance and level of engagement This matter is of medium significance because of the size of the loan and because the Theatre Royal is an important community asset which has been the subject of considerable feedback in successive Long Term Plans. The community has consistently indicated its support for the Theatre Royal, and the recommendation is not inconsistent with community views expressed previously. No further consultation is required at this stage. If Council makes a decision that is different to that in the recommendation and which significantly impacts Theatre Royal operations (e.g. by calling in the loan) or Council debt (e.g. by writing off the loan) then further public consultation may be required. |
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6. Inclusion of Māori in the decision making process Māori have not been specifically consulted on in the development of this report. |
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7. Delegations The Audit Risk and Finance Subcommittee has the responsibility for considering Audit processes and management of financial risks. The Subcommittee has the power to make a recommendation to Council on this matter. |
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8222
Audit NZ - Letter to the Council on the audit for year ending 30 June 2017
1. Purpose of Report
1.1 To provide the letter to the Council on the audit for the year ending 30 June 2017 from Audit NZ.
2. Recommendation
|
That the Audit, Risk and Finance Subcommittee Receives the report Audit NZ - Letter to the Council on the audit for year ending 30 June 2017 (R8222) and its attachment (A1891276). |
3. Discussion
3.1 Audit New Zealand (Audit NZ) issued an unmodified audit opinion on 31 October 2017 for the financial year ending 30 June 2017. This means that it was satisfied that the financial statements fairly reflected Council's activities for the year and its financial position at the end of the financial year.
3.2 After the audit is completed, Audit NZ issues a management letter to Council outlining the findings of the audit.
3.3 In the letter to Council issued on 15 January 2018 (Attachment 1) Audit NZ comment on the matters raised in the Audit arrangements letter including:
· rates
· regional landfill business unit
· elected members – remuneration and allowances
· asset management plans
· legislative reporting disclosures
· the separate audit of the Debenture Trust Deed.
Supplementary letter
3.4 Audit NZ notes the matters raised in the supplementary letter to management in Section 5 of the attached letter. The Chief Executive accepts these comments and will address these matters prior to the 2017/18 Annual Report.
Nikki Harrison
Group Manager Corporate Services
Attachments
Attachment 1: A1891276 - Letter to the Council on the audit of Nelson City Council for the year ⇩
Item 10: Tendering Processes - Follow Up Report
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8832
Tendering Processes - Follow Up Report
1. Purpose of Report
1.1 To provide the subcommittee with the follow up external report requested at the Governance Committee on 9 March 2017.
1.2 To provide the subcommittee with assurance that the recommendations, resulting from the 2016 Crowe Horwath audit relating to Members’ Interests, have been actioned.
2. Summary
2.1 All recommendations rated as high from the 2016 Crowe Horwath Report have been actioned.
2.2 Council now has a full set of written procedures describing Members’ Interest activities which must be followed for all levels of procurement.
3. Recommendation
4. Background
4.1 The Governance Committee received advice of concerns raised by the Office of the Auditor-General (OAG) at its 1 December 2016 meeting. This item was left to lie on the table.
4.2 The letter raised a number of concerns about Council’s processes for awarding contracts for events and festivals, particularly as they related to approvals for contracts involving previous councillors.
5. Discussion
5.1 A further report was presented to the Governance Committee on 9 March 2017 on the outcome of the external audit report undertaken by Crowe Horwath, in response to concerns raised by the Office of the Auditor-General.
5.2 The Governance Committee passed the following resolution:
That the Governance Committee
Requests the Chief Executive to commission an external provider to prepare a subsequent report to the Committee to explore the issues raised in report R7135 (and its attachments) in terms of management of the requirements under the Local Authorities (Members' Interests) Act 1968 by Council, and how these matters will be addressed in future; and
Requests that this report also clearly outlines the roles and responsibilities of all parties in complying with the Local Authorities (Members' Interests) Act 1968; and
Notes that the full scope of this report will be agreed in advance by the Chair of the Governance Committee and Mr John Peters.
5.3 The subsequent external report is included as Attachment 1. This report provides additional information on the specific issues and timeline that occurred between 2014 and 2016 relating to the approvals required from the Office of the Auditor-General for entering into contracts with members.
5.4 Members’ interests training was undertaken by Jonathon Salter from Simpson Grierson with elected members on 30 November 2017 which clearly outlines the roles and responsibilities of all parties.
5.5 A progress report on the HIGH corrective actions is included as Attachment 2.
5.6 All recommendations rated as high from the Crowe Horwath Report have been actioned. There is one outstanding action item (rated medium) which relates to delegations which was deferred pending the new Chief Executive appointment.
5.7 Council now has a full set of written procedures describing Members’ Interest activities which must followed for all levels of procurement.
6. Options
6.1 The subcommittee can receive the report; decline to receive the report; and/or ask for further information.
7. Conclusion
7.1 The Office of the Auditor-General expressed concern around Council’s procurement, contract and tendering policies with particular reference to festivals funded by Council.
7.2 An audit of the activity was undertaken and a follow up external report was requested. The follow up report is attached, along with progress on the HIGH corrective actions.
Nikki Harrison
Group Manager Corporate Services
Attachments
Attachment 1: A1856124 - Tendering and Contracting Policies - Nelson City Council prepared by Crowe Horwath ⇩
Attachment 2: A1897197 - Progress on High Corrective Actions from Crowe Horwath Report - Members' Interests ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government Ensuring robust processes for issuing contracts allows cost-effective procurement of services. |
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2. Consistency with Community Outcomes and Council Policy Reviewing contract processes supports the community outcome that our Council provides leadership. |
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3. Risk There is limited risk from receiving this report, noting that the recommendations from the external audit report have been actioned by management. |
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4. Financial impact The costs of the follow up report and training were met within existing budgets. |
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5. Degree of significance and level of engagement This matter is of low significance because it relates to internal processes. No consultation is required. |
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6. Inclusion of Māori in the decision making process Maori have not been consulted on this matter. |
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7. Delegations The Audit, Risk and Finance subcommittee has the responsibility for monitoring of Council’s financial and service performance. |
Item 11: Audit NZ - Audit Engagement Letter for the Long Term Plan 2018-28
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8865
Audit NZ - Audit Engagement Letter for the Long Term Plan 2018-28
1. Purpose of Report
1.1 To provide the subcommittee with the Audit Engagement Letter for the audit of the consultation document and Long Term Plan 2018-28 and ask for any feedback before the letter is signed by the Mayor.
2. Recommendation
3. Discussion
3.1 The Audit Engagement Letter (Attachment 1) relates to the audit of the consultation document and LTP 2018 - 28.
3.2 The letter sets out the terms of the audit engagement and the respective responsibilities of Council and Audit New Zealand. The letter also outlines the audit scope and objectives, the approach taken to complete the audit, the areas of audit emphasis, the audit logistics and the professional fees.
3.3 The letter is to be signed by the Mayor to confirm that the details of the audit match Council’s understanding of the arrangements.
4. Options
The options available to the subcommittee are to provide feedback to Audit NZ prior to the letters being signed, or not to provide feedback.
Michelle Joubert
Executive Officer
Attachments
Attachment 1: A1894801 - Audit Engagement Letter ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government Section 93C(4) of the Local Government Act 2002 requires an auditor’s report on the consultation document and section 94 requires a separate opinion on the Long Term Plan. |
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2. Consistency with Community Outcomes and Council Policy This contributes to all the community outcomes as the Long Term Plan covers all the work of Council. |
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3. Risk The recommendations contained in this report pose no material risk. |
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4. Financial impact There is no financial impact from the recommendations contained in this report. |
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5. Degree of significance and level of engagement This matter is of low significance as it does not affect the level of service provided by Council or the way in which services are delivered. Therefore, no consultation has been undertaken. |
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6. Inclusion of Māori in the decision making process Māori have not been consulted on this report. |
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7. Delegations The Audit, Risk and Finance Subcommittee has responsibility for audit processes and management of financial risks. |
Item 12: Corporate Report to 31 December 2017
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8857
Corporate Report to 31 December 2017
1. Purpose of Report
1.1 To inform the members of the Subcommittee of the financial results of activities for the six months ending 31 December 2017, compared to the approved operating budget, and to highlight and explain any permanent and material variations.
2. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Corporate Report to 31 December 2017 (R8857) and its attachments (A1903395 and A1904902). |
3. Background
3.1 The financial reporting focuses on the six month performance compared with the year to date approved operating budget.
3.2 Unless otherwise indicated, all measures are against approved operating budget, which is 2017/18 Annual Plan budget plus any carry forwards, plus or minus any other additions or changes as approved by Council throughout the year.
3.3 Officers have assessed budgets and applied a range of phasing mechanisms to reflect the timing of anticipated actual income and expenditure.
4. Discussion
4.1 For the six months ending 31 December 2017, the activity surplus/deficits are $3.3 million favourable to budget.
4.2 Financial information provided in Attachment 1 to this report includes:
4.2.1 A financial measures dashboard with information on rates revenue, operating revenue and expenditure, and capital revenue and expenditure. The arrow icon in each applicable measure indicates whether the variance is increasing or decreasing and whether that trend is favourable or unfavourable (green or red).
4.2.2 A grouping of more detailed graphs and commentary for operating income and expenditure. The first set of charts and commentary is by category (as in the annual report) and highlights significant permanent differences and items of interest. Variances due to timing will not be itemised unless they become permanent. The second set of charts is by activity.
4.2.3 A treasury measures dashboard with a compliance table (green = compliant), a forecast of the debt/revenue ratio for the year where available, and a graph showing debt levels over a rolling 13 month period.
4.2.4 High level balance sheet. This does not include any consolidations.
4.2.5 A debtor analysis graph over 12 months, clearly showing outstanding debt levels and patterns for major debt types along with a summary of general debtors > 3 months and over $10,000 and other debtors at risk.
4.2.6 Two capital expenditure graphs – The line graph records actual expenditure against budget plus carryover (the initial budget), approved budget (as amended by subsequent Council decisions), and forecast (current understanding of most likely outcome). The bar graph records year to date expenditure against approved operating budget by activity.
4.2.7 A major projects summary including milestones, status, issues and risks.
4.3 Capital expenditure is $5.4 million under approved budget and $1m more than current forecast for the Long Term Plan 2018-28 presented to Council workshops in late January (including vested assets and NRSBU capital).
Tracey Hughes
Senior Accountant
Attachments
Attachment 1: A1904902 Financial information ⇩
Attachment 2: A1903395 Major Projects summary ⇩
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8869
Internal Audit Quarterly Report to 31 December 2017
1. Purpose of Report
1.1 To update the Audit, Risk and Finance Subcommittee on the internal audit activity for the quarter to 31 December 2017.
2. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Internal Audit Quarterly Report to 31 December 2017 (R8869) and its attachment (A1894689). |
3. Background
3.1 The Internal Audit Charter was approved by Council on 15 October 2015.
3.2 Under the Internal Audit Charter, the Audit, Risk and Finance Subcommittee requires a periodic update on the progress of internal audit activities relative to any current Internal Audit Plan approved by Council, and to be informed of any significant risk exposures and control issues identified from internal audits completed.
3.3 The current Annual Audit Plan period is to 30 June 2018 which was approved by Council on 9 November 2017.
4. Progress Against Annual Audit Plan During the Quarter
4.1 The attached report (A1894689) shows the progress against all audits planned for the financial year to 30 June 2018.
4.2 In addition to these audits, during the quarter a request was received to perform an additional minor compliance audit for the Building business unit. This was agreed to as it is expected to be of short duration (one day) and will be undertaken by an officer who performed a similar audit last year.
4.3 There are currently no concerns with meeting the resourcing requirements of the Audit Plan.
5. Recommendation Options
5.1 The acceptance of the recommendation to receive the Internal Audit Quarterly Report to 31 December 2017 outlining internal audit’s activity demonstrates Council’s commitment to improving controls and practices that ensure the prudent, effective and efficient management of Council resources. No advantage could be identified from not receiving this report.
Lynn Anderson
Internal Audit Analyst
Attachments
Attachment 1: A1894689 - Internal Audit Quarterly Progress Report to 31 December 2017 ⇩
Item 14: Key Organisational Risks Calendar 2017 - 4th Quarterly Report
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8797
Key Organisational Risks Calendar 2017 - 4th Quarterly Report
1. Purpose of Report
1.1 To update the Subcommittee on progress with identifying and managing key risks to the organisation’s objectives. The report is intended to assist the governance role of the Subcommittee in overseeing the organisation’s risk management.
2. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Key Organisational Risks Calendar 2017 - 4th Quarterly Report (R8797) and its attachment A1895817. |
3. Background
3.1 At its meeting on 14 November 2017, the Audit Risk and Finance Subcommittee received and considered the previous quarterly report on key organisational risks to Council’s objectives. In doing so it specifically considered a number of matters including the level of risk to the organisation’s overall objectives caused by the difficulty in maintaining required levels of staff expertise across the Council’s many functions.
3.2 The Subcommittee requested a separate report on this matter which is on the agenda for this meeting. Accordingly no change has been made to the relevant page in the attached key risk summary.
3.3 As with previous reports, this report is based on the organisation’s existing business model – that is, as far as possible on risk management processes within each business unit. While most business units have reasonably well established risk management processes, some catch up for new units (e.g. City Development) and for newer senior staff and managers is still in progress. There is therefore still an element of estimation from Organisational Assurance observations and conversations in the attached.
4. Key risk reporting
4.1 The process of managing risks is forward looking. This involves identifying, assessing and acting on risks. Risks are defined by events which may happen and may in future affect the achievement of Council objectives. To estimate the consequence (how big an impact) and likelihood (how certain or uncertain), we use information about events which have previously affected our objectives.
4.2 This report, in common with most risk reporting, sets out the level of risk estimated in a previous period. This is because it takes time to assemble this information so, in reports such as this, there will always be an element of reporting estimates made in a past period.
4.3 As an example, the estimated risk level for key risk 10 (Council actions without adequate consideration of legal implications…) has been increased in this report. This is based on improved information about incidents where events actually occurred during 2017 (some from internal audit work). The report also notes the actions in progress to improve controls in this area (called treatments in risk management jargon). It is therefore likely that the next forward estimate of this risk will change again as these planned actions actually occur.
Other risk level changes
4.4 Two other changes in risk level are shown in the attachment. However, both of these changes do not affect the risk ranking in relation to that area. In one case, review of available information shows that the projected likelihood of damage to the Council’s reputation from negative public perceptions has decreased. The resulting risk ranking does not however change – i.e. it remains at medium.
4.5 A similar situation occurs with the IT failure risk area. For the reporting period the likelihood of these failures affecting the organisation has increased. But again the risk ranking remains at medium, and again action is underway to address this risk.
Summary of control changes since last report
4.6 The table below summarises areas where controls on key risks have changed (both progress on implementation and delays).
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Key risk area |
Progress on risk treatments since last report |
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1 Maintaining lifeline services … |
· Exercise to test and improve responding to major disruptions re scheduled, now due 23 February · Ongoing programme through to 2020 of work from regional lifelines review now underway |
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4. Contracts management … |
· Contracts management database development contract signed –implementation of required software scheduled for June quarter · Upgrade of NZS3910 (large civil works) contract template delayed by lack of technical capacity in Council – now scheduled for next financial year |
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5. IT failure impacts on service delivery |
· Upgrade of core hardware and backup systems underway – Scheduled for completion late February |
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10. Lack of adequate consideration of legal implications |
· Legal panel contracts signed but set up of support procedures still in progress. |
5. Options
5.1 It is recommended that this report be received as it will further improve the Subcommittee’s understanding of the risks faced by Council and the actions being taken to manage them.
5.2 There can be value from a discussion of the factors contributing to risks and the Subcommittee may consider such a discussion useful.
Steve Vaughan
Risk & Procurement Analyst
Attachments
Attachment 1: A1895817 - Key Organisational Risks Quarter 4 Calendar 2017 ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government This report describes risk management activity. Risk management is a tool to enable more efficient and effective provision of services as set out in section 10(1)(b) of the LG Act. |
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2. Consistency with Community Outcomes and Council Policy This report describes risk management activity. Risk management at its most fundamental is about achieving an organisation’s objectives (in this case as set out in Nelson City Council’s planning documents) with increased clarity, efficiency and effectiveness. |
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3. Risk The report does not recommend a particular goal or objective to which risks may be considered. It serves to provide information about Council’s work in addressing those risks judged to be key to the organisation achieving its objectives. |
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4. Financial impact This is a report on work already underway as part of Council’s regular management activity. Therefore there are no additional funding implications. |
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5. Degree of significance and level of engagement This matter is of low significance under the Council’s Significance and Engagement Policy. Therefore no external consultation has been undertaken in the preparation of this report. |
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6. Inclusion of Māori in the decision making process There has been no consultation with Māori in the preparation of this report, which deals with internal Council processes. |
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7. Delegations The Audit, Risk and Finance Subcommittee has responsibility for overseeing the Council’s risk management systems. |
Item 15: Health, Safety and Wellbeing Performance Report, October - December 2017
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8871
Health, Safety and Wellbeing Performance Report, October - December 2017
1. Purpose of Report
1.1 To provide the Subcommittee with a quarterly report of health, safety and wellbeing data collected over the October to December quarter of 2017.
1.2 To update the Subcommittee on key health and safety risks, including controls and treatments.
2. Summary
2.1 Health, safety and wellbeing performance data reports provide an overview of health and safety performance based on key lead and lag indicators. Where a concerning trend is identified more detail is provided in order to better understand issues and implement appropriate controls.
2.2 Reporting on key health and safety risks provides further depth and detail to the health and safety risks reported in the organisational risk report.
3. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Health, Safety and Wellbeing Performance Report, October - December 2017 (R8871) and its attachment (A1895727). |
4. Background
4.1 Councillors, as ‘Officers’ under the Health and Safety at Work Act 2015 (HSWA), are expected to undertake due diligence on health and safety matters. Council’s Health and Safety Governance Charter states that Council will receive quarterly reports regarding implementation of health and safety. Council has delegated the responsibility for health and safety to the Audit, Risk and Finance Subcommittee.
5. Discussion
Data Reports
5.1 Incident data of particular note in this report relates to security incidents, which have primarily been groups of young people causing disruption at Stoke Library, and disorder by a resident at the Brook Camp.
5.2 A particularly concerning incident during November was when two elderly customers at the Elma Turner Library received needle stick injuries from sewing machine needles believed to have been fired as blow darts through a straw or similar.
5.3 Recent work in the area of contractor health and safety management has resulted in more contractor health and safety plan reviews being completed.
Key Health and Safety Risk Review
5.4 Key health and safety risks were comprehensively reviewed in November 2017. This has resulted in some changes to the risk headings reported on and a change in format to align with the organisational risk reporting.
5.5 A risk labelled ‘Harm to the public from Council or contractor work’ has been removed as a key risk heading. Such risks are addressed by the controls relating to oversight of contractors or customer aggression.
5.6 The risk labelled ‘Lone work’ has been amended to include ‘remote and isolated work’ as many of the controls overlap and there are specific requirements required by regulations for remote and isolated work.
5.7 ‘Work in high hazard environments’ has been removed as such situations will relate to contractor work or remote and isolated work. Health and safety management requirements for high hazard environments are well integrated within contractor management processes.
5.8 Motor vehicle travel at work has been included in the key risks. Although this risk has always been present, there has been significant recent development in regard to acceptance of this risk in workplaces.
Key Health and Safety Risk Update
5.9 Although the risk headings have changed all key health and safety risks have been assessed as remaining at medium apart from ‘Security – Customer Aggression’ which continues to be assessed as a High risk.
5.10 There has not been one particular area where customer aggression has been assessed as a high risk, however it has been assessed as a medium risk in a number of areas which increases the overall likelihood of a higher consequence event.
5.11 The recent incidents at Stoke Library provide further evidence that this risk area requires treatments to be prioritised. As further controls are implemented it is expected that this will move to a Medium risk.
General work programme
Governance activities
5.12 During this reporting period Mayor Reese participated in site visits to the Nellie Nightingale Library, York Stream upgrade and Saxton Velodrome projects. Councillor Walker visited the Neale Park Pump Station Upgrade construction site.
Other activities
5.13 Addressing the increase in security incidents at Stoke Library was a significant focus during November and December. The response involved staff from multiple business units across Council who prioritised this work and is further outlined in a separate report on security at Council Libraries.
5.14 There has been a significant increase in focus on health and safety for library staff resulting from this work.
5.15 Procedures to address health and safety requirements for events and venue hire have been developed.
Malcolm Hughes
Health and Safety Adviser
Attachments
Attachment 1: A1895727 - Quarterly Health, Safety and Wellbeing Performance Report, October - December 2017 ⇩
Item 16: Security Incidents at Council Libraries
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8872
Security Incidents at Council Libraries
1. Purpose of Report
1.1 To provide the Subcommittee with a report on security incidents at Council Libraries.
1.2 To update the Subcommittee on security risk at Council Libraries and controls taken.
2. Summary
2.1 Council Libraries have experienced security incidents for some time and this report covers a period for which we have considerable data, January 2016 - December 2017.
2.2 In September 2017 the Audit Risk and Finance Subcommittee requested that officers report back to the subcommittee on security related events at Council libraries including details of controls and treatments.
2.3 Groups of youths engaging in antisocial and criminal behaviour while present in and around Stoke Library (SL) increased significantly during November 2017.
3. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Security Incidents at Council Libraries (R8872) and its attachment (A1848048). |
4. Background
4.1 Organisational Assurance has included an overview of security incidents on Council premises in quarterly Health and Safety performance data reports since March 2017.
4.2 An independent security risk assessment survey was carried out in September 2016 on 11 Council workplace facilities including all three Council libraries.
4.3 Actions resulting from the independent security risk assessment recommendations were assigned to business unit managers in February 2017.
4.4 In September 2017 the Audit Risk and Finance Subcommittee passed the following resolution:
Requests that officers report back to the subcommittee on security related events at Council libraries including details of controls and treatments.
5. Discussion
5.1 Data relating to security incidents at Council Libraries for the last two years has been summarised and key observations outlined in the attachment.
5.2 An overview of the recent increase in security incidents at Stoke Library is provided in the attachment. The response to this situation has been significant, has involved staff from across various parts of Council, and is still evolving. Engagement with external parties has included Police and youth workers. Initial controls have been effective at separating staff from many unpleasant interactions. Longer term preventative controls and treatments are being introduced in a staged manner with ongoing review.
5.3 Controls and treatments including those recommended in the 2016 security risk assessment survey are included in the controls and treatments section of the attachment.
5.4 Risk assessments for a range of scenario outcomes using Council’s risk criteria are also included in the attachment.
5.5 There are wider issues at play, which go beyond Health and Safety. This includes consideration of longer term solutions to the underlying causes of youth issues at Stoke Library. A more detailed report will go to the Community Services committee outlining actions as to how issues with youth will be addressed.
Malcolm Hughes
Health and Safety Adviser
Attachments
Attachment 1: A1848048 - Security at Council Libraries ⇩
Item 17: Recruitment in a Tight Labour Market
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Audit, Risk and Finance Subcommittee 13 February 2018 |
REPORT R8885
Recruitment in a Tight Labour Market
1. Purpose of Report
1.1 At its meeting on 14 November 2017, the Audit, Risk and Finance Subcommittee requested a report on how the organisation is managing the risk to the organisation’s objectives arising from increased difficulty in finding and retaining the right staff expertise.
2. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Recruitment in a Tight Labour Market (R8885) and its attachment (A1896279). |
3. External Context
3.1 New Zealand’s unemployment rate has returned to levels previously seen prior to the Global Financial Crisis (4.6% in September 2017, Statistics NZ), and the rate of unemployment is even lower in the top of the south (2.2% September 2017). In the year prior to November 2017, online advertised vacancies rose by 8.5% (Ministry of Business, Innovation and Employment Jobs Online monthly report November 2017). MBIE’s Labour Market Scorecard in March 2017 noted that, while unemployment varied across regions, in Nelson/Marlborough/Tasman/West Coast it had decreased more than other regions.
3.2 MBIE also produces a quarterly Labour Market Report. The September 2017 quarterly report (attached) shows that organisations across New Zealand are reporting decreased ease of finding labour at present (figure 2, page 4 of the attachment).
3.3 Demographic data shows that Nelson’s population is ageing faster than the New Zealand average, and while this is expected, in time, to have an impact on the ability of employers to retain and recruit the skills needed, it is likely that other external factors are for the present having a greater impact.
3.4 Labour market conditions fluctuate over time as a result of external factors such as unemployment rates, labour force participation, economic conditions, business confidence, migration policy etc, and that impacts not only the ease with which the organisation recruits but also significantly affects employee retention and turnover. One yardstick which provides at least a partial measure of the degree of increased difficulty is the number of roles which Council has had to advertise more than once in order to find the right person – in 2016 Council re-advertised seven vacancies, and in 2017 Council re-advertised nine vacancies.
4. Organisational responses to the conditions
4.1 In the past 12 months Nelson City Council has responded in a number of ways in order to manage the current increased challenge of recruitment:
· a number of initiatives (e.g. recognition, communication) relating to culture, wellbeing and employee engagement in order to retain its existing employees in an environment where there is an increased range of employment opportunities for them outside the organisation;
· increased use of recruitment agencies;
· increased use of contractor and temp resources to fill gaps between one employee leaving and the next one commencing;
· seconding people from within the organisation to fill resource gaps in other parts of the organisation;
· taking a more flexible approach to the experience level of the appointee – i.e. hiring at more senior or more junior levels than initially envisaged;
· specific retention actions in a small number of individual cases (e.g. job re-design in order to retain a skilled employee).
4.2 Nelson City Council also has in place a number of longer-term initiatives which aim to even out the impact of periodic tightening in labour market conditions and skill shortages in specific areas, including:
· a Flexible Work Policy to ensure we provide flexible work options for our employees whenever possible, so reducing the risk of losing people with good skills;
· succession planning for key roles to ensure we are growing our own people for progression within the organisation;
· a range of leadership development opportunities are provided to ensure we have a pipeline of capable people leaders;
· a performance management framework which includes consideration of development needs for each staff member to ensure the organisation keeps building the capability of our people;
· cadet and graduate positions in specific areas to ensure the development of a pipeline of individuals with good skills and relevant experience and qualifications;
· maintenance of accredited employer status with Immigration NZ to make it easier to hire skilled migrants;
· monitoring market remuneration rates to ensure Council continues to pay competitive rates;
· upgrade of Civic House interiors (beginning with Level 1 in 2018) to ensure that Council is able to retain and attract people through providing modern workspaces which are adequately lit, ventilated and furbished.
5. Planned actions in 2018
5.1 Projects planned in 2018 to build on Nelson City Council’s ability to retain, develop and attract the right people include a refresh of its leadership development learning opportunities, continued focus on employee engagement and ongoing initiatives focusing on wellbeing and improving communication within the organisation, and a refresh of its employer brand via a new careers portal and e-recruitment technology.
6. Summary
6.1 Nelson City Council continues to retain, attract, and hire very good people. The current tight labour market conditions mean that in some instances recruitment of those people is taking longer than when the labour market is less constrained. This leads to some increased costs, specifically in filling short term gaps with more expensive contractor and temporary resources. However while a proportion of vacancies take longer to fill, most are filled in the usual timeframes. Most importantly, Council has not compromised on the calibre of those it hires – during 2017, despite the more challenging context, Council has hired individuals it can be proud of having in the organisation.
6.2 No organisation however can afford to be complacent, especially given the complexity that an ageing demographic will add to the external factors (unemployment rates, economic buoyancy, government migration policy, etc) affecting labour supply. It is therefore critical that Council continues to focus on engaging and developing its current employees, providing an inclusive and productive work environment, and managing its employer brand and reputation so that it continues to attract and hire high calibre new employees.
Stephanie Vincent
Manager People and Capability
Attachments
Attachment 1: A1896279 - MBIE Quarterly Labour Market Report, Nov 2017 ⇩
