AGENDA
Ordinary meeting of the
Audit, Risk and Finance Subcommittee
Tuesday 14 August 2018
Commencing at 9.00a.m.
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: Mr John Peters (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Ian Barker, 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
14 August 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 M3580
Recommendation
That the Audit, Risk and Finance Subcommittee
Confirms the minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 26 June 2018, as a true and correct record.
6. Chairperson's Report
7. Quarterly Key Risks Report - Quarter 2 Calendar 2018 10 - 26
Document number R9523
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Quarterly Key Risks Report - Quarter 2 Calendar 2018 (R9523) and its attachment Key Organisational Risks Report Quarter 2 Calendar 2018 (A2011772).
8. Internal Audit - Quarterly Progress Report to 30 June 2018 27 - 30
Document number R9533
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Internal Audit - Quarterly Progress Report to 30 June 2018 (R9533) and its attachment (A2008536).
9. Internal Audit - Summary of New or Outstanding Significant Risk Exposures and Control Issues to 30 June 2018 31 - 34
Document number R9534
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Internal Audit - Summary of New or Outstanding Significant Risk Exposures and Control Issues to 30 June 2018 (R9534) and its attachment (A2006732).
10. Corporate Report to 31 May 2018 35 - 45
Document number R9200
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Corporate Report to 31 May 2018 (R9200) and its attachments (A2023685 and A2025408).
11. Health, Safety and Wellbeing Performance Report 46 - 60
Document number R9217
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Health, Safety and Wellbeing Performance Report (R9217) and its attachment (A2011373).
12. Draft Governance Members' Protected Disclosure Policy 61 - 73
Document number R9579
Recommendation
That the Audit, Risk and Finance Subcommittee
Receives the report Draft Governance Members' Protected Disclosure Policy (R9579) and its attachment (A2013157).
Recommendation to Council
That the Council
Adopts the Governance Members’ Protected Disclosure Policy (R9579).
Audit, Risk and Finance Subcommittee Minutes - 26 June 2018
Minutes of a meeting of the Audit, Risk and Finance Subcommittee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Tuesday 26 June 2018, commencing at 9.00a.m.
Present: Mr J Peters (Chairperson), Her Worship the Mayor R Reese, Councillor B Dahlberg and Mr J Murray
In Attendance: Chief Executive (P Dougherty), Councillor M Rutledge, Acting Group Manager Infrastructure (S Davies), Group Manager Corporate Services (N Harrison), Governance Adviser (R Terry)
Apology: Councillor Barker
1. Apologies
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Resolved AUD/2018/029 That the Audit, Risk and Finance Subcommittee Receives and accepts an apology from Councillor Barker. Murray/Dahlberg Carried |
2. Confirmation of Order of Business
There was no change to the order of business.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 15 May 2018
Document number M3483, agenda pages 6 - 11 refer.
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Resolved AUD/2018/030 That the Audit, Risk and Finance Subcommittee Confirms the minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 15 May 2018, as a true and correct record. Dahlberg/Murray Carried |
6. Chairperson's Report
There was no Chairperson’s Report.
7. Annual Tax Review
Document number R9395, agenda pages 12 - 23 refer.
Group Manager Corporate Services, Nikki Harrison presented the report and answered questions regarding employee sick banking, noting that reference to this had been in the context of other local authorities and had not been implemented at Nelson City Council.
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Recommendation That the Audit, Risk and Finance Subcommittee Receives the report Annual Tax Review (R9395) and its attachments (A1847439 and A1985957). Murray/Dahlberg |
8. Corporate Report to 30 April 2018
Document number R9396, agenda pages 24 - 35 refer.
Attendance: Her Worship the Mayor joined the meeting at 9.06a.m.
Acting Group Manager Infrastructure, Shane Davies answered questions regarding the desludging at the wastewater treatment plant, and the phasing for the capital expenditure program. Mr Davies confirmed that the disposing of the sludge had initially been deferred due to moisture content and then re-phased, and would now be ahead of schedule.
Group Manager Corporate Services, Nikki Harrison presented the report and answered questions regarding operating revenue, rental income and operating contracts. There was discussion around The Brook Camp income being ahead of budget and Ms Harrison noted that expenditure was also over budget.
There was discussion around the programmed maintenance being under budget. Ms Harrison confirmed this would not be substantial and that she would break this down and clarify this for the next meeting.
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Resolved AUD/2018/031 That the Audit, Risk and Finance Subcommittee Receives the report Corporate Report to 30 April 2018 (R9396) and its attachments (A1969286 and A1986404). Dahlberg/Murray Carried |
9. Audit engagement letter for year ending 30 June 2018
Document number R9208, agenda pages 36 - 66 refer.
Group Manager Corporate Services, Nikki Harrison presented the report and Associate Audit Director, Audit New Zealand, Jacques Coetzee answered questions regarding minimising waste, Council’s responsibilities during Audit and timelines. There was discussion around coordinating the timeframes with the Council Controlled Organisations to ensure the Council had time to include the information in the final Annual Report.
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Resolved AUD/2018/032 That the Audit, Risk and Finance Subcommittee Receives the report Audit engagement letter for year ending 30 June 2018 (R9208) and its attachments (A1955165 and A1955166); and Notes the Subcommittee can provide feedback on the Audit engagement letter to Audit New Zealand if required, noting the Mayor will sign the letter once the Subcommittee’s feedback has been incorporated. Dahlberg/Murray Carried |
10. Interim audit letter for the year ending 30 June 2018
Document number R9213, agenda pages 67 - 83 refer.
Group Manager Corporate Services, Nikki Harrison presented the report and Associate Audit Director, Audit New Zealand, Jacques Coetzee answered questions regarding the audit process, noting that he would be available to answer questions during the internal audit process.
Ms Harrison answered questions regarding the Project Management Policy and the contract management system, noting that proposed new software would assist by integrating contract details into the financial systems.
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Resolved AUD/2018/033 That the Audit, Risk and Finance Subcommittee Receives the report Interim audit letter for the year ending 30 June 2018 (R9213) and its attachment (A1988268); and Notes the suggested responses to the recommendations. Murray/Dahlberg Carried |
There being no further business the meeting ended at 10.20a.m.
Confirmed as a correct record of proceedings:
Chairperson
Date
Item 7: Quarterly Key Risks Report - Quarter 2 Calendar 2018
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Audit, Risk and Finance Subcommittee 14 August 2018 |
REPORT R9523
Quarterly Key Risks Report - Quarter 2 Calendar 2018
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
3. Background
3.1 At its meeting on 15 May 2018, 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 sought information about the goal of managing risks for the Council. Although the matter was discussed briefly at that meeting, some further information on this will clearly be useful to the Subcommittee and this is set out in the discussion section below.
3.2 As with previous reports, this report is based on the organisation’s existing business model – that is, as far as possible it is based on risk management processes within each business unit. In the quarter reported on there have been some further changes in, in particular, senior and business unit level managers. Some business unit management positions either remain to be filled or are being held by temporary appointees or in acting capacities by team leaders.
3.3 Notwithstanding this, most business units now have reasonably soundly based risk management processes. Business units are increasingly applying the risk criteria adopted by Council on a consistent basis, improving the comparability of risks between business units and so the ability to report to this Subcommittee at a whole of organisation level.
3.4 The few remaining variations to this tend to be in areas where the organisation undertakes large projects, or provides separately defined services.
3.5 In the first case risk assessment is still focussed on project related matters (e.g. project timeline) rather than impacts on Council as a whole. This is still providing some distortions in comparative risk levels. For example, adverse events affecting a project timeline may significantly affect that business unit but may impact little on the Council’s primary objective of delivering services to the community.
3.6 In the latter case, assessments continue to be focussed on the unit’s services rather than Council’s services as a whole, again with the possibility of distorting the assessed risks from a whole of Council perspective.
4. Risk management goals
4.1 Risks are estimates of the effect that events which may or may not happen have on the Council’s objectives. The primary value of estimating risks is to enable the organisation to decide on actions which lessen their impact if they do occur, or reduce the likelihood of an impact occurring.
4.2 There are therefore two key outcomes sought from applying effort to manage risks:
· That the organisation always has a current, correct and complete understanding of its risks
· That the organisation takes those management actions needed to keep those risks within its risk criteria
4.3 From this it should be clear that putting effort into managing risks is not intended to lead to the organisation having no risks at all. Rather, the outcome is understanding risks and managing those to a reasonable level. This reasonable level has been defined and adopted by the Council and is set out in the Council’s risk management policy and criteria.
4.4 Work so far has done much to help with achieving the first of these two outcomes, particularly at the business unit level. This is further helped at organisation level by the application of table 3 of the Council’s risk criteria. This table requires the reporting of more significant risks to senior management level, and in cases of very high risk to Council itself. Table 3 of the criteria also requires advice on possible actions to accompany this reporting.
4.5 As a result the organisation as a whole is improving its capacity to put in place actions which manage the uncertainties impacting its day to day business.
4.6 The next step will be to include advice on the level of risk (and possible measures to manage that risk) in respect of significant decisions. To achieve this, developments are underway to improve the information and advice provided in the mandatory section on risks in standard reports to Council.
Steve Vaughan
Risk & Procurement Analyst
Attachments
Attachment 1: A2011772 - Key Organisational Risks Report Quarter 2 Calendar 2018 ⇩
Item 8: Internal Audit - Quarterly Progress Report to 30 June 2018
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Audit, Risk and Finance Subcommittee 14 August 2018 |
REPORT R9533
Internal Audit - Quarterly Progress Report to 30 June 2018
1. Purpose of Report
1.1 To update the Audit, Risk and Finance Subcommittee on the internal audit activity for the quarter to 30 June 2018.
2. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Internal Audit - Quarterly Progress Report to 30 June 2018 (R9533) and its attachment (A2008536). |
3. Background
3.1 Under Council’s Internal Audit Charter approved by Council 15 October 2015, 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.
4. Conclusion
4.1 The Internal Audit Plan for the year ended 30 June 2018 is on track based on the updated Plan approved by Council on 23 May 2018.
Lynn Anderson
Internal Audit Analyst
Attachments
Attachment 1: A2008536 - Quarterly Report on Progress of Internal Audits to 30 June 2018 ⇩
Item 9: Internal Audit - Summary of New or Outstanding Significant Risk Exposures and Control Issues to 30 June 2018
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Audit, Risk and Finance Subcommittee 14 August 2018 |
REPORT R9534
Internal Audit - Summary of New or Outstanding Significant Risk Exposures and Control Issues to 30 June 2018
1. Purpose of Report
1.1 To update the Subcommittee on new or outstanding risk exposures following Internal Audits included in the Internal Audit Plan to 30 June 2018.
2. Recommendation
3. Background
3.1 Under section 9.1 of the Internal Audit Charter, the Audit, Risk & Finance Subcommittee and the Governance Committees are to be informed of internal audit results where appropriate.
3.2 Under section 9.4, the Audit, Risk and Finance Subcommittee requires a periodic update of any significant risk exposures and control issues identified from internal audits completed.
4. Summary
4.1 Issues identified in the attachment, Summary of New and Outstanding Significant Risk Exposures and Control Issues Identified from Internal Audits, relate to internal audits performed to 30 June 2018.
4.2 The attached report shows three high risks outstanding from the report presented to the Audit, Risk and Finance Subcommittee meeting of 15 May 2018. Details of new progress on each are shown in red in the attached report.
4.3 There have been an additional two high risks added this quarter, one from a Contract Renewal audit, and one from an audit of the controls around the prevention of deliberate contamination or sabotage of the water supply system, both audits performed since the last report. Details are in the attachment – Summary of New or Outstanding Significant Risk Exposures and Control Issues Identified from Internal Audits – 30 June 2018 (A2006732).
Lynn Anderson
Internal Audit Analyst
Attachments
Attachment 1: A2006732 - Summary of New or Outstanding Significant Risk Exposures and Control Issues Identified from Internal Audits - 30 June 2018 ⇩
Item 9: Internal Audit - Summary of New or Outstanding Significant Risk Exposures and Control Issues to 30 June 2018: Attachment 1
Item 10: Corporate Report to 31 May 2018
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Audit, Risk and Finance Subcommittee 14 August 2018 |
REPORT R9200
Corporate Report to 31 May 2018
1. Purpose of Report
1.1 To inform the members of the Subcommittee of the financial results of activities for the eleven months ending 31 May 2018, 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 May 2018 (R9200) and its attachments (A2023685 and A2025408). |
3. Background
3.1 The financial reporting focuses on the eleven 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 the 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 depending on the nature of the expenditure to reflect the timing of anticipated actual income and expenditure.
4. Discussion
4.1 For the eleven months ending 31 May 2018, the activity surplus/deficits are $7.7 million favourable to budget.
4.2 The most significant variances are:
· $2.1m unbudgeted income being the gain recognised on the transfer of the NCC landfill assets to the joint landfill in exchange for a half share of the total assets of the joint landfill. (This was accounted for differently in the budget)
· $3.5m income from forestry greater than budget, offset by $2.9m forestry harvesting costs greater than budget (net income $0.6m favourable)
· Un-programmed maintenance costs $1m more than budget mostly related to February storm events
· Other maintenance $2.4m less than budget including some seasonal activities and the delay of the desludging at the wastewater treatment plant
· Invoicing from TDC for the Velodrome and Saxton Drive projects behind budget by $0.9m
· Salaries and overheads under budget by $0.6m
4.3 Financial information provided in Attachment 1 to this report includes:
4.3.1 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).
4.3.2 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.
4.3.3 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.
4.3.4 High level balance sheet. This does not include any consolidations.
4.3.5 A debtor analysis graph over 13 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.
4.3.6 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 forecast by activity.
4.4 Capital expenditure is $17.7 million under approved budget and $3.5m less than the forecast for the Long Term Plan 2018-28 presented to Council workshops in late January (including vested assets and NRSBU capital).
4.5 As at the time of writing, the under-spend against the forecast for the year to 30 June is $8.3 million. Carry forwards and the impact on the 2018/19 work programme are currently being worked through.
Insurance
4.6 Nelson City Council is part of the Top of the South Collective with Tasman District Council and Marlborough District Council which was formed 1 July 2011. The insurance broker is Jardine Lloyd Thomson (JLT) and Nelson City Council has various insurance policies including:
· Material Damage – commercial and residential
· Business Interruption
· Motor Vehicle
· Public and Professional Indemnity
· Crime, Statutory and Employers Liability
· Harbour Masters and Wreck Removal Liability
· Hall Hirers Liability
· Personal Accident
· Forestry
4.7 The insurance was successfully placed for 1 July 2018 for this programme. The infrastructure asset insurance renewal is on 1 November 2018.
4.8 Insurance market conditions are tight with 2017 being the costliest year on record for weather events and natural disasters (2017 natural catastrophe losses were 93% higher than the average of 2000-2016). Premiums have increased overall by $102,000 (11%) mainly driven by increased material damage premiums. Although this increase was largely anticipated in the 2018/19 budgeting process, there is still some risk around costs for the infrastructure renewal given market conditions.
4.9 Public and professional indemnity, crime, statutory and employers liability, harbour masters and wreck removal liability insurance cover has been cancelled with QBE New Zealand due to a lack of capacity to cover more than their previous 45% placement and the perceived increased sector risk from local government. Consistent with Tasman and Marlborough District Council, Council now has cover through the JLT Local Government Liability facility with QBE London. This includes environmental impairment cover and higher limits ($300 million vs $50 million previously). The crime policy is outside this facility and has been placed with AIG. Overall these policies were placed at similar premiums to last year.
Tracey Hughes
Senior Accountant
Attachments
Attachment 1: A2023685 - Financial Information to 31 May 2018 ⇩
Attachment 2: A2025408 - Major projects report (Circulated separately)
Item 11: Health, Safety and Wellbeing Performance Report
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Audit, Risk and Finance Subcommittee 14 August 2018 |
REPORT R9217
Health, Safety and Wellbeing Performance Report
1. Purpose of Report
1.1 To provide the Subcommittee with a quarterly report of health, safety and wellbeing data collected over the April to June quarter of 2018.
1.2 To update the Subcommittee on key health and safety risks, including controls and treatments.
2. Summary
2.1 A high number of security incidents occurred at the Brook Valley Holiday Park involving the same group of individuals who were placed there as an alternative to camping illegally in a Council Park.
2.2 The key risk ‘Customer aggression threatening the health & safety of those who work for and with Council’ has been assessed as moving from a high to a medium risk. Improvements in controls that have moved this risk relate to physical security of Council workplaces and increased staff awareness of procedures to respond to an escalating situation.
3. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Health, Safety and Wellbeing Performance Report (R9217) and its attachment (A2011373). |
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 the implementation of health and safety. Council has delegated the responsibility for health and safety to the Audit, Risk and Finance Subcommittee.
4.2 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.
4.3 Reporting on key health and safety risks provides further depth and detail to the health and safety risks reported in the organisational risk report.
5. Discussion
5.1 Data Reports
5.1.1 A high number of security incidents occurred at the Brook Valley Holiday Park involving the same group of individuals who were placed there as an alternative to camping illegally in a Rutherford Park. This matter was resolved in May and discussed in detail at a previous Audit, Risk and Finance Subcommittee meeting.
5.1.2 Several Incidents feature where members of the public were injured in Council workplaces. These have been investigated and further controls implemented where required.
5.1.3 The two actions recorded as overdue by more than three months have now been completed.
5.2 Key Health and Safety Risk Update
5.2.1 All key health and safety risks have been assessed as medium risks. The risk ‘customer aggression threatening the health and safety of those who work for and with Council’ had formally been assessed as high.
5.2.2 This risk had remained high after improvements to the physical security of Council workplaces due to a number of security related incidents at the Stoke Library and Brook Valley Holiday Park. Although security incidents have continued to occur a number of both short and medium term controls have been implemented which are expected to reduce the frequency of such incidents and therefore the risk of one escalating. There have also been improvements in staff awareness of procedures relating to dealing with a security incident that escalates.
5.2.3 Where new treatments have been planned or have been implemented as controls since the last report this is indicated by red text in the attachment.
5.3 Due Diligence Activities
5.3.1 During this reporting period Councillor Noonan participated in a Safe work observation at the Stoke Green Meadows Centre construction site.
5.3.2 Council’s Chief Executive completed Safe work Observations or site inspections at the Nelson North Wastewater Treatment Plant and Nellie Nightingale Memorial Library.
5.4 General Work Programme
5.4.1 Senior libraries staff completed a ‘crisis resilience workshop’ in May. This workshop was provided by an external consultant and proved valuable in helping libraries to develop best practice plans for response to violent situations.
5.4.2 The evaluation of responses to an RFP for a new health and safety data base is underway.
5.5 Staff Wellbeing Initiatives
5.5.1 A significant new initiative during this period has been the launching of a winter wellness program in partnership with Wellness Movement. Activities included a stretching workshop called “movement lab” that was attended by a number of staff during lunchtimes over several weeks.
5.5.2 A series of staff health checks focusing on areas of risk have been planned for the coming months.
5.5.3 The Workplace Support service available to staff has recently been expanded to provide additional wellbeing services.
5.5.4 A male mental health awareness workshop called “one for the blokes” is scheduled for July 2018.
Malcolm Hughes
Health and Safety Adviser
Attachments
Attachment 1: A2011373 - Health Safety and Wellbeing Report - April - June 2018 ⇩
Item 12: Draft Governance Members' Protected Disclosure Policy
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Audit, Risk and Finance Subcommittee 14 August 2018 |
REPORT R9579
Draft Governance Members' Protected Disclosure Policy
1. Purpose of Report
1.1 To consider the draft Governance Members’ Protected Disclosure Policy which has been developed for Elected Members and external appointees of a committee.
2. Recommendation
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That the Audit, Risk and Finance Subcommittee Receives the report Draft Governance Members' Protected Disclosure Policy (R9579) and its attachment (A2013157). |
Recommendation to Council
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Adopts the Governance Members’ Protected Disclosure Policy (R9579). |
3. Background
3.1 The Audit, Risk and Finance Subcommittee has oversight of the Council’s management of risk and internal procedures, including those related to disclosure of serious wrongdoing.
3.2 At the Audit, Risk and Finance Subcommittee on 27 June 2017, the Subcommittee noted that the Protected Disclosure Policy, which covered Council officers and had already been implemented, potentially should also apply to Elected Members and external appointees of committees. The following was resolved:
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.
3.3 The Audit, Risk and Finance Subcommittee on 28 September 2017, resolved the following:
Receives the report Protected disclosure policy for Elected members (R8402) and its attachment (A1338935); and
Requests the development of a separate Protected Disclosure Policy for Elected Members, for review by the Subcommittee prior to submitting the policy for approval by Council.
3.4 Confirmation was provided by the Office of the Ombudsman (being the agency primarily tasked with overseeing the administrative conduct of state sector agencies in relation to protected disclosures) that the Protected Disclosures Act 2000 applied to Elected Members and external appointees to council committees.
3.5 Officers have reviewed the organisational Protected Disclosure Policy that is currently operational and have used this as the basis for developing a policy for Elected Members. To ensure that all committee members are covered, Council has developed a policy for elected members and external appointees of committees. This is referred to as the Governance Members’ Protected Disclosure Policy.
3.6 It is recommended that moving forward, the organisational Protected Disclosure Policy and the Governance Members’ Protected Disclosure Policy mirror each other to provide identical levels of protection for staff, contractors, Elected Members and external appointees alike.
3.7 Once the Governance Members’ Protected Disclosure Policy is adopted, the organisational policy will be updated to ensure consistency between the two policies.
4. Options
4.1 It is recommended that the Subcommittee receives the Draft Governance Members’ Protected Disclosure Policy and recommends to Council that the policy be adopted. The preferred Option is Option 1.
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Option 1: Adopt the Governance Members’ Protected Disclosure Policy |
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Advantages |
· Provides clear guidance for any Elected Member or external committee member to report serious wrongdoing. · Provides a transparent process to facilitate the disclosure and investigation of an alleged wrongdoing. · Provides protection for anyone making a disclosure. · Is in alignment with the public interest. · Developed at the request of The Audit, Risk and Finance Committee who have oversight of Council’s management of risk. |
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Risks and Disadvantages |
· No risks or disadvantages. |
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Option 2: Not adopt the Governance Members’ Protected Disclosure Policy |
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Advantages |
· No advantages. |
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Risks and Disadvantages |
· Elected Members and external committee members may lack clarity about how to report a serious wrongdoing. |
Mary Birch
Manager Governance and Support Services
Attachments
Attachment 1: A2013157 - Draft Governance Members Protected Disclosure Policy - July 2018 ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government Fit-for-purpose policies are required to ensure that organisational performance is efficient, effective and appropriate to present and anticipated future circumstances. To assist to promote and prevent serious wrongdoing at the Council. This policy defines serious wrongdoing and provides a clear process in the event of a serious wrongdoing. This policy is based on the Protected Disclosures Act 2000. |
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2. Consistency with Community Outcomes and Council Policy Fit-for-purpose organisational and governance policies are required to ensure the Community Outcome of Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement. |
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3. Risk Adopting this policy will provide a clear process and protection for Elected Members and external committee members. It will ensure a process is available for everyone involved in the governance of Council. |
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4. Financial impact There is no financial impact associated with this policy. |
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5. Degree of significance and level of engagement This matter is of low significance because it is an organisational policy. Therefore consultation on the matter is not practical or necessary. |
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6. Inclusion of Māori in the decision making process No engagement with Māori has been undertaken in preparing this report. |
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7. Delegations Audit Risk and Finance Committee has the following: Areas of Responsibility · Audit processes and management of financial risk · Organisational risk management · Council’s financial and service performance Powers to Decide · None Powers to Recommend to Council · Any matters within the areas of responsibility or such other matters referred to it by the Council |
