Minutes of a meeting of the Audit, Risk and Finance Subcommittee

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson

On Tuesday 27 August 2019, commencing at 1.00p.m.

 

Present:              Mr J Peters (Chairperson), Councillors I Barker, B Dahlberg and Mr J Murray

In Attendance:   Councillors G Noonan, M Rutledge and S Walker, Chief Executive (P Dougherty), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald), Group Manager Community Services (R Ball) and Governance Adviser (J Brandt)

Apology:             Her Worship the Mayor R Reese

 

 

1.       Apologies

Resolved AUD/2019/038

 

That the Audit, Risk and Finance Subcommittee

1.        Receives and accepts an apology from Her Worship the Mayor R Reese.

Barker/Murray                                                                              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      25 June 2019

Document number M4310, agenda pages 7 - 11 refer.

Resolved AUD/2019/039

 

That the Audit, Risk and Finance Subcommittee

1.    Confirms the minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 25 June 2019, as a true and correct record.

Dahlberg/Murray                                                                          Carried

  

 

6        Chairperson's Report

The Chairperson noted that the online review of the Audit Risk and Finance Subcommittee was still open, and encouraged members to complete the survey, as the information would assist Council in the next Council triennium should a similar body be formed.

Resolved AUD/2019/040

 

That the Audit, Risk and Finance Subcommittee

1.        Receives the verbal Chairperson’s report .

 

Peters/Murray                                                                              Carried

 

7.       Quarterly Report to 30 June 2019

Document number R10331, agenda pages 12 - 42 refer.

Tracey Hughes, Senior Accountant, presented the report and noted that this report was based on information available at the end of July 2019 and would therefore differ from information presented in the draft Annual Report at the 17 September 2019 Subcommittee meeting.

Officers answered questions regarding Nelson Regional Sewerage Business Unit costs, increases to insurance premiums, self-insurance, official information requests received and the revaluation of Marina assets. Further questions were answered regarding council-owned forestry and market trends.

The format of project sheets were discussed and members noted their preference to have the original project budget and any approved changes recorded on the sheets for completeness.

Resolved AUD/2019/041

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Quarterly Report to 30 June 2019 (R10331) and its attachments (A2224569, A2226256 and A2232140).

Murray/Barker                                                                              Carried

 

8.       Annual Tax Review

Document number R10239, agenda pages 43 - 78 refer.

Tracey Hughes, Senior Accountant, answered questions regarding work undertaken since a GST review was carried out earlier in the year.

Council’s ability to use tax credits was discussed and noted for further exploration at a workshop in the new triennium.

Resolved AUD/2019/042

 

That the Audit, Risk and Finance Subcommittee

1.   Receives the report Annual Tax Review (R10239) and its attachments (A2221879 and A2221900).

Murray/Dahlberg                                                                          Carried

 

9.       Quarterly Key Risks Report - 1 April to 30 June 2019

Document number R10217, agenda pages 79 - 99 refer.

Manager Business Improvement, Arlene Akhlaq, answered questions regarding the council priority areas in attachment 1. The level of information provided in the report was commended.

Resolved AUD/2019/043

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Quarterly Key Risks Report - 1 April to 30 June 2019 (R10217) and its attachment (A2233464).

Dahlberg/Barker                                                                           Carried

 

10.     Health Safety and Wellbeing Performance Report

Document number R10385, agenda pages 100 - 115 refer.

Malcolm Hughes, Health and Safety Adviser, gave an update regarding the security incidents at the Elma Turner Library, noting a significant reduction of incidents since a security guard had been engaged. Mr Hughes answered questions regarding the flu vaccine update and sick leave data.

Attendance: Councillor Dahlberg left the meeting from 2.01p.m. to 2.03p.m.

Resolved AUD/2019/044

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Health Safety and Wellbeing Performance Report (R10385) and its attachment (A2231288).

Murray/Barker                                                                              Carried

 

11.     Internal Audit - Quarterly Progress Report to 30 June 2019

Document number R10302, agenda pages 116 - 119 refer.

Lynn Anderson, Internal Audit Analyst, presented the report.

The Chief Executive answered questions regarding Alpha One software, noting that the software was intended to bring improvements and consistency in how building consents are processed in the Nelson Tasman region.

Resolved AUD/2019/045

 

That the Audit, Risk and Finance Subcommittee

1.     Receives the report Internal Audit - Quarterly Progress Report to 30 June 2019 (R10302) and its attachment (A2227441).

 

Murray/Dahlberg                                                                          Carried

 

12.     Internal Audit - Summary of New or Outstanding Significant Risk Exposures and Control Issues to 30 June 2019

Document number R10303, agenda pages 120 - 125 refer.

Lynn Anderson, Internal Audit Analyst, answered questions regarding the water contamination prevention in attachment 1 of the report, noting that the training exercise for the Maitai Dam was scheduled to occur in 2019, not 2018, and that a desktop exercise would precede a full training exercise.  Ms Anderson further noted that it was expected that the risk of loss of life would be addressed in the Emergency Action Plan.

Resolved AUD/2019/046

 

That the Audit, Risk and Finance Subcommittee

1.     Receives the report Internal Audit - Summary of New or Outstanding Significant Risk Exposures and Control Issues to 30 June 2019 (R10303) and its attachment (A2227319).

Dahlberg/Barker                                                                           Carried

       

13.     Exclusion of the Public

Resolved AUD/2019/047

 

That the Audit, Risk and Finance Subcommittee

1.        Excludes the public from the following parts of the proceedings of this meeting.

2.        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:

Barker/Dahlberg                                                                           Carried

 

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 -  25 June 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)(a)

     To protect the privacy of natural persons, including that of a deceased person

2

Quarterly Update on Legal Proceedings

 

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

3

Quarterly Update On Debts - 30 June 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)(a)

     To protect the privacy of natural persons, including that of a deceased person

The meeting went into public excluded session at 2.20p.m. and resumed in public session at 2.55p.m.

 

Restatements

 

It was resolved while the public was excluded:

 

1

PUBLIC EXCLUDED: Quarterly Update on Legal Proceedings

 

That the Audit, Risk and Finance Subcommittee

3.    Agrees that the Report (R10367) and its attachment (A2186227) be excluded from public release at this time.

 

2

PUBLIC EXCLUDED: Quarterly Update On Debts - 30 June 2019

 

That the Audit, Risk and Finance Subcommittee

 

2.    Agrees that Report (R10351) and its attachment (A2216183) be excluded from public release at this time.

  

 


 

There being no further business the meeting ended at 2.55p.m.

 

Confirmed as a correct record of proceedings:

 

 

 

                                                       Chairperson                                     Date