Minutes of a meeting of the Audit, Risk and Finance Subcommittee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Tuesday 21 May 2019, commencing at 9.05a.m.
Present: Her Worship the Mayor R Reese, B Dahlberg and Mr J Murray
In Attendance: Councillors P Matheson and B McGurk, Group Manager Infrastructure (A Louverdis), Group Manager Community Services (R Ball), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald) and Governance Adviser (J Brandt)
Apologies: Councillor Barker and Mr Peters
2. Apologies
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That the Audit, Risk and Finance Subcommittee 2. Receives and accepts the apologies from Councillor Barker and Mr Peters. |
3. Confirmation of Order of Business
It was noted that agenda item 12 would be considered after item 7 due to time constraints of the speaker.
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
There was no public forum.
6.1 19 February 2019
Document number M4041, agenda pages 7 - 13 refer.
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That the Audit, Risk and Finance Subcommittee 1. Confirms the minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 19 February 2019, as a true and correct record. |
7. Chairperson's Report
There was no Chairperson’s Report.
8. Quarterly Report to 31 March 2019
Document number R10169, agenda pages 14 - 44 refer.
Tracey Hughes, Senior Accountant, tabled a replacement chart for agenda page 23 (document A2194360) and noted that the $50,000 debtor payment listed on agenda page 26 had been received since the agenda was published.
Questions were answered regarding dividends ahead of budget, reporting for the Investment Performance Audit undertaken by NZTA, impacts on Council resulting from the Pigeon Valley fire emergency in February 2019, management of methane levels at Founders Park, the increased share of NRSBU costs for Council, progress putting a management plan for Andrews Farm in place to address issues between user groups and the predicted shortfall in capital expenditure.
A number of questions regarding the Greenmeadows Centre and Queens Gardens Toilets in attachment 3 of the report were noted for discussion later in the meeting, as part of the public excluded section of the meeting.
9. Audit plan for the year ending 30 June 2019
Document number R10202, agenda pages 93 - 120 refer.
Jacques Coetzee of Audit New Zealand spoke to the report, noting that he envisaged all Councils would be provided with comparative data for benchmarking purposes by the end of the year.
The meeting adjourned from 9.57a.m. until 10.33a.m.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Audit plan for the year ending 30 June 2019 (R10202) and its attachment (A2186543).
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10. Quarterly Key Risks Report - 1 January to 31 March 2019
Document number R10167, agenda pages 45 - 67 refer.
Arlene Akhlaq, Manager Business Improvement, presented the report. She made a point of clarity regarding item 3.2 of the report (middle bullet point), noting that it was the consolidation of options that was planned for June, with analysis already under way. Ms Akhlaq further noted that a new rating system had been applied to Quarter 3 risk assessments.
Malcolm Hughes, Health and Safety Advisor, explained the increased rating on higher hazard work situations (5.11) as a result of the March terrorist attack in Christchurch. Mr Hughes answered questions about levels of stress experienced by frontline staff and measures the organisation was taking to provide support.
Ms Akhlaq answered questions about the rating for environmental and legal liability risks, the order of risks in the report, and whether the ratings reflected residual risk.
Nikki Harrison, Group Manager Corporate Services answered a question about the Council’s disaster recovery fund, noting the fund remained in deficit.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Quarterly Key Risks Report - 1 January to 31 March 2019 (R10167) and its attachment (A2179264).
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11. Health & Safety Quarterly Performance Report 1 January to 31 March 2019
Document number R10138, agenda pages 68 - 83 refer.
Malcolm Hughes, Health and Safety Advisor, answered questions about security incidents in the libraries, and plans to limit access to certain internet sites in the libraries. Safe Work Observation visits for Elected Members were discussed and it was noted that Councillors would be invited to attend along with senior staff.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Health & Safety Quarterly Performance Report 1 January to 31 March 2019 (R10138) and its attachment (A2173565).
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12. Internal Audit - Quarterly Progress Report to 31 March 2019
Document number R10129, agenda pages 84 - 86 refer.
Lynn Anderson, Internal Audit Analyst, spoke to the report and answered questions about the amounts of cash handled in the libraries, the financial system used by the Building Unit and how this was linked in with other Council systems. It was noted that the debtor invoicing for the marina was being managed by Nelmac, and while debtors were transferred to Council monthly, the overall system was separate from Council’s financial system. Discussion took place regarding reporting mechanisms where Audit New Zealand might raise issues with Nelmac for this council asset.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Internal Audit - Quarterly Progress Report to 31 March 2019 (R10129) and its attachment (A2173040).
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13. Internal Audit - Summary of New or Outstanding Significant Risk Exposures and Control Issues to 31 March 2019
Document number R10130, agenda pages 87 - 92 refer.
Lynn Anderson, Internal Audit Analyst, provided a number of updates regarding business continuity planning measures being introduced, training for the Incident Management Team, and working with Civil Defence and Police to inform evacuation plans for Maitai flood zones.
Alec Louverdis, Group Manager Infrastructure, answered questions about the risk of water contamination as a wilful act, and regular ongoing monitoring at the dam.
In regards to asset management plans coming to committee meetings, it was requested that where plans were not as developed as others, due to delays from the Pigeon Valley fires, this should be highlighted in the report and assistance be given by finance officers to assist members with robust decision-making.
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Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
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1 |
Audit, Risk and Finance Subcommittee Meeting - Public Excluded Minutes - 19 February 2019 |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7. |
The withholding of the information is necessary: · Section 7(2)(g) To maintain legal professional privilege |
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2 |
Quarterly Report to 31 March 2019 - Debtor Discussion, Greenmeadows Centre and Queens Gardens Toilets
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Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person
· Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities
· Section 7(2)(g) To maintain legal professional privilege |
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3 |
Quarterly Update on Legal Proceedings
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Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(g) To maintain legal professional privilege |
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4 |
Tax planning 10-year outlook report
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Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities |
The meeting went into public excluded session at 11.36a.m. and resumed in public session at 1.11p.m.
Restatements
It was resolved while the public was excluded:
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2 |
PUBLIC EXCLUDED: Quarterly Update on Legal Proceedings |
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Quarterly Update on Legal Proceedings (R10173) and its attachment (A2186227); and 2. Agrees that the decision (AUD/2019/026) only be released from public excluded business; and 3. Agrees that Report (R10173) and its attachment (A2186227) be excluded from public release at this time. |
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3 |
PUBLIC EXCLUDED: Tax planning 10-year outlook report |
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Tax planning 10-year outlook report (R10163) and its attachment (A2179101); and 2. Agrees that the decision (AUD/2019/027) only be released from public excluded business; and 3. Agrees that Report (R10163) and attachment (A2179101) be excluded from public release at this time. |
There being no further business the meeting ended at 1.11p.m.
Confirmed as a correct record of proceedings:
Chairperson
Date