Minutes of a meeting of the Audit and Risk Subcommittee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Tuesday 10 November 2020, commencing at 1.34p.m.
Present: Mr J Peters (Chairperson), Her Worship the Mayor R Reese, Mr J Murray and Councillor J Edgar
In Attendance: Councillors Y Bowater, T Brand and T Skinner, Group Manager Corporate Services (N Harrison), Governance Advisers (J Brandt and K McLean) and Governance Support (P Boutle)
Apology: Her Worship the Mayor R Reese for early departure (Council business), Councillor R Sanson for attendance
1. Apologies
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That the Audit and Risk Subcommittee 1. Receives and accepts the apology from Her Worship the Mayor R Reese for early departure (on Council business), and from Councillor R Sanson for attendance. |
2. Confirmation of Order of Business
There was no change to the order of business.
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
There was no public forum.
5.1 17 September 2020
Document number M14135, agenda pages 7 - 11 refer.
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That the Audit and Risk Subcommittee 1. Confirms the amended minutes of the meeting of the Audit and Risk Subcommittee, held on 17 September 2020, as a true and correct record. |
7. Key Organisational Risks Report - 01 July to 30 September 2020
Document number R19222, agenda pages 12 - 43 refer.
Manager Business Improvement, Arlene Akhlaq, presented the report and gave an update about measures taken to increase Council’s cyber security following the recent NZX website cyber-attack. Ms Akhlaq answered questions about the risk management maturity benchmarking self-assessment and the new contract management system, the new risk software, and potential emergent risks related to legislative changes around Freshwater management.
In response to a question, Group Manager Corporate Services, Nikki Harrison, confirmed that financial oversight reporting for the Nelson Plan would be provided as part of the quarterly finance report going forward.
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That the Audit and Risk Subcommittee 1. Receives the report Key Organisational Risks Report - 01 July to 30 September 2020 (R19222) and its attachment (A2486951).
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8. Audit NZ - Audit Engagement Letter for the Long Term Plan 2021-31
Document number R21345, agenda pages 44 - 62 refer.
Audit NZ Appointed Auditor, John Mackey, joined the meeting via Zoom. While discussing levels of service, Mr Mackey noted delays in completing the Annual Report 2019/20 audit due to internal COVID-19 resourcing issues and matters that had recently arisen in relation to Council Controlled Organisations (CCOs). The Subcommittee expressed its disappointment about these delays and the fact that Audit New Zealand could still not give clear timeframes for completion of the audit.
Mr Mackey outlined the steps Audit NZ would take to complete the audit and acknowledged that timeframes to meet the 31 December 2020 statutory deadline were tight.
Mr Mackey answered questions about Audit NZ’s ability to deliver on the Long Term Plan engagement letter by 30 June 2021. In relation to the payment schedule (item 7 of the draft engagement letter), Mr Mackey gave the undertaking that invoicing would be for completed work only.
9. Health, Safety and Wellbeing Report, July to September 2020
Document number R21365, agenda pages 63 - 78 refer.
Health and Safety Adviser, Malcolm Hughes presented the report. He answered questions about safe work observations and staff wellbeing.
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That the Audit and Risk Subcommittee 1. Receives the report Health, Safety and Wellbeing Report, July to September 2020 (R21365) and its attachment (A2488389). |
Attendance: Her Worship the Mayor R Reese left the meeting at 2.47p.m.
10. Internal Audit - Quarterly Progress Report to 30 September 2020
Document number R21363, agenda pages 79 - 82 refer.
Internal Audit Analyst, Lynn Anderson presented the report. She noted the number of staff who did training for fraud prevention, bribery and corruption had increased since the writing of the report, and that testing of internal controls relating to fraud risks had been completed.
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That the Audit and Risk Subcommittee 1. Receives the report Internal Audit - Quarterly Progress Report to 30 September 2020 (R21363) and its attachment (A2483911). |
11. New and Outstanding Significant Risk Exposures and Control Issues Identified from Internal Audits - 30 September 2020
Document number R21364, agenda pages 83 - 87 refer.
Internal Audit Analyst, Lynn Anderson presented the report. She answered questions about procurement and contract management, and the information management maturity audit.
12. Internal Audit Self-Assessment - 31 March 2020
Document number R18156, agenda pages 88 - 98 refer.
Internal Audit Analyst, Lynn Anderson presented the report. She highlighted key focus areas and answered questions about areas for improvement.
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That the Audit and Risk Subcommittee 1. Receives the report Internal Audit Self-Assessment - 31 March 2020 (R18156) and its attachment (A2366767). |
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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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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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Quarterly Update On Debts - 30 September 2020
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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)(g) To maintain legal professional privilege |
The meeting went into confidential session at 3.14p.m. and resumed in public session at 3.28p.m.
Restatements
It was resolved while the public was excluded:
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CONFIDENTIAL: Quarterly Update on Legal Proceedings |
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That the Audit and Risk Subcommittee 2. Agrees that the Report (R21371) and its attachment (A2490624) remain confidential at this time. |
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CONFIDENTIAL: Quarterly Update On Debts - 30 September 2020 |
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That the Audit and Risk Subcommittee 2. Agrees that the Report (R21377) and its attachment (A2216183) remain confidential at this time. |
There being no further business the meeting ended at 3.28p.m.
Confirmed as a correct record of proceedings:
Chairperson
Date