Audit, Risk and Finance Subcommittee
Te Kōmiti Āpiti, Kaute / Tūraru / Pūtea
Held via Zoom on Tuesday 14 September 2021, commencing at 9.03a.m.
Present: Mr J Peters (Chairperson), Her Worship the Mayor R Reese, Councillors J Edgar, M Lawrey, R Sanson and Mr J Murray
In Attendance: Councillor T Brand, Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald) and Governance Advisers (J Brandt and K McLean)
Apologies : Nil
1. Apologies
There were no apologies.
2. Confirmation of Order of Business
There were no changes to the order of business.
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
The meeting was adjourned from 9.04a.m. to 9.05a.m. during which time Councillor Lawrey joined the meeting.
There was no public forum.
5.1 25 May 2021
Document number M17659, agenda pages 6 - 14 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 25 May 2021, as a true and correct record. |
Document number R26218, agenda pages 15 - 17 refer.
The Chairperson spoke to his report, noting that some of the matters that were to be addressed at the Risk Management workshop were being progressed offline to meet reporting deadlines.
Members noted concerns around the possibility of Audit NZ not meeting their commitments and the potential issues this could pose for Council to meet its statutory deadlines.
Group Manager Corporate Services, Nikki Harrison, answered questions about the approval process for amendments to the audit plan.
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That the Audit, Risk and Finance Subcommittee 1. Receives the Chairperson's Report (R26218). |
Document number R25905, agenda pages 18 - 241 refer.
Group Manager Corporate Services, Nikki Harrison, presented the first part of the report. She noted that Audit NZ intended to be on site from 27 September until the end of October 2021 and that the expectation was that the 31 December 2021 statutory deadline for adoption of the Annual Report would be met.
Group Manager Strategy and Communication, Nicky McDonald, presented the non-financial part of the report.
Members of the Audit, Risk and Finance Subcommittee provided detailed feedback regarding the draft annual report.
Attendance: Councillor Brand joined the meeting at 9.21a.m.
The meeting was adjourned from 10.11a.m. until 10.21a.m.
Ms Harrison answered questions about the sign off process for the draft annual report.
It was noted that for future draft Annual Reports Group Managers would engage with Committee Chairs to review wording of sections that related to their committee’s respective areas of responsibility, prior to the draft annual report being presented to the Audit Risk and Finance Subcommittee.
8. Audit Reports on the Consultation Document and Long Term Plan 2021-31
Document number R26112, agenda pages 242 - 265 refer.
Group Manager Corporate Services,
Nikki Harrison, presented the report. She noted that both audit reports
were received in August, despite the May date on Audit
NZ’s cover letter for the audit on the long term plan consultation
document.
The Subcommittee discussed Council’s proposed response to Audit NZ’s recommendation to evaluate whether additional resources should be deployed in planning and management of the Council’s transport infrastructure, and to have future infrastructure strategies and activity management plans peer reviewed, as per section 3.10 of the Audit NZ Report to the Council on the audit of Nelson City Council’s long term plan consultation document (A2720857). It was noted that resourcing was a matter for the Chief Executive to address. An additional clause was added to the resolution.
The meeting was adjourned from 11.17a.m. until 11.21a.m.
9. Bad Debts Writeoff - Year Ending 30 June 2021
Document number R25901, agenda pages 266 - 269 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report, supported by Manager Accounting Services, Victoria Harper. It was noted that this report was originally scheduled to come to the August meeting, which was cancelled due to COVID-19.
The Subcommittee noted its disappointment that the debt of the Brook Valley Community Group Inc had to be paid by the ratepayers of Nelson.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Bad Debts Writeoff - Year Ending 30 June 2021 (R25901). |
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Recommendation to Council ARF/2021/037 |
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1. Approves the balance of $41,990.31 owed by the Brook Valley Community Group Inc be written off as at 30 June 2021. |
Document number R26143, agenda pages 270 - 277 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report, supported by Manager Finance, Prabath Jayawardana, and Management Accountant, Alistair Roper.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Carry Forwards 2020/21 (R26143) and its attachment (A2724698). |
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Recommendation to Council |
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1. Approves the carry forward of $2.6 million unspent capital budget for use in 2021/22: and 2. Notes that this is in addition to the carry forward of $4.8 million approved during the Long Term Plan 2021-31, taking the total carry forward to $7.4 million of which $827,000 is for the 2022/23 year, $349,000 is for the 2023/24 year and the balance of $6.2 million is for the 2021/22 year; and 3. Notes that the total savings and reallocations in 2020/21 capital expenditure of $1.7 million including staff time which is in addition to the $2.3 million savings and reallocations already recognised in the May 2021 deliberations; and 4. Notes that the total 2021/22 capital budget (including staff costs and excluding consolidations and vested assets) will be adjusted by these resolutions from a total of $67.1 million to a total of $69.7 million; and 5. Approves the carry forward of $567,000 unspent operating budget for use in 2021/22.
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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 - Confidential Minutes - 25 May 2021 |
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 |
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2 |
IT Funding Request
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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)(j) To prevent the disclosure or use of official information for improper gain or improper advantage |
The meeting went into confidential session at 11.48a.m. and resumed in public session at 12.20p.m.
There being no further business the meeting ended at 12.20p.m.
Confirmed as a correct record of proceedings by resolution on 25 November 2021:
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Resolved |
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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 14 September 2021, as a true and correct record. |