Audit, Risk and Finance Subcommittee
Te Kōmiti Āpiti, Kaute / Tūraru / Pūtea
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson on Tuesday 13 September 2022, commencing at 9.03a.m.
Present: Mr J Peters (Chairperson), Her Worship the Mayor R Reese, Councillor M Lawrey, R Sanson, Mr J Murray and Ms S Kelly
In Attendance: Councillor T Skinner, Chief Executive (P Dougherty), Group Manager Environmental Management (D Bush-King), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald), Governance Adviser (T Kruger) and Assistant Governance Adviser (A Bryce-Neumann)
Apology: An apology has been received from Councillor J Edgar
Karakia and Mihi Timatanga
1. Apologies
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That the Audit, Risk and Finance Subcommittee 1. Receives and accepts an apology from Councillor J Edgar. |
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. Mr J Murray subsequently declared an interest in Item 12: Central Library Development – Risk Register and Councillor Sanson declared an interest subsequently on Item 3, 6.4 of the Confidential Agenda, Complaint to Human Rights Commission.
There was no public forum.
5.1 24 May 2022
Document number M19478, agenda pages 10 - 19 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 24 May 2022, as a true and correct record. |
5.2 9 August 2022
Document number M19700, agenda pages 20 - 22 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 9 August 2022, as a true and correct record. |
Document number R27221, agenda pages 23 - 25 refer.
The Chairperson took the opportunity to read his report to the Subcommittee. Her Worship the Mayor Reese acknowledged and thanked the Subcommittee for their work.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Chairperson's Report (R27221). |
7. Draft Annual Report 2021/22
Document number R26571, agenda pages 26 - 219 refer.
Group Manager Strategy and Communications, Nicky McDonald, noted updates to the report and advised an updated Annual Report would be brought to the Subcommittee in the next term.
Ms McDonald advised that the Mayor of the next council won’t be elected by the time he signs and the Chief Executive would sign the updated Annual Report. Mr J Mackey, Audit NZ, highlighted the revaluation of infrastructure, greenhouse gas emissions and the ongoing discussions about how to verify drinking water standards.
The Elected Members confirmed the disclosures presented in the annual report and no questions were raised.
8. Annual Procurement Monitoring Report 2021-22
Document number R26541, agenda pages 220 - 225 refer.
Business Improvement Analyst, Arlene Akhlaq, took her report as read and answered questions on the living wage, suppliers working with Nelson City Council and emissions reductions.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Annual Procurement Monitoring Report 2021-22 (R26541). |
Attendance: Councillor T Skinner joined the meeting at 10.06a.m.
9. Audit NZ: Audit Plan for year ending 30 June 2022
Document number R27176, agenda pages 226 - 250 refer.
Finance Manager, Prabath Jayawardana, took the report as read.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Audit NZ: Audit Plan for year ending 30 June 2022 (R27176) and its attachment (A2896447). |
Document number R27167, agenda pages 251 - 260 refer.
Group Manager Corporate Services, Nikki Harrison, took the report as read and answered questions on the Carry Forwards, interest rates and debt interest.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Carry Forwards 2021/22 (R27167) and its attachments (332184083-4467 and 332184083-4466). |
Clause 5 of the recommendation was updated to include clarification around the Science and Technology Precinct Capital Grant.
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Recommendation to Council ARF/2022/035 |
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1. Approves the carry forward of $8.5 million unspent capital budget for use in the 2022/23 financial year; and 2. Notes that this is in addition to the carry forward of $21 million approved during the Annual Plan 2022/23, taking the total carry forward to $29.5 million of which $23.7 million is for the 2022/23 year, $3.4 million is for the 2023/24 year and $2.4 million is for the 2025/26 year; and 3. Notes the total savings and reallocations in 2021/22 capital expenditure of $782,000; and 4. Notes that the total 2022/23 capital budget (including staff costs and excluding consolidations and vested assets and scope adjustment) will be adjusted by these resolutions from a total of $80.6 million to a total of $89.1 million; and 5. Approves the carry forward of $2.95 million unspent operating budget for use in 2022/23, $2.7 million (for the Science and Technology Precinct Capital Grant) of which is loan funded capital grant expenditure. |
The meeting was adjourned from 10.05a.m. until at 10.22a.m.
11. Quarterly Finance Report to 30 June 2022
Document number R27060, agenda pages 261 - 287 refer.
Finance Manager, Prabath Jayawardana, took the report as read and answered questions on general and forestry insurance.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Quarterly Finance Report to 30 June 2022 (R27060) and its attachments (1857728953-240, 839498445-3215 and 839498445-7438). |
Mr J Murray declared an interest in item no 12 Central Library Development - Risk Register
Attendance: Mr J Murray left the meeting at 10.37a.m.
12. Central Library Development - Risk Register
Document number R27093, agenda pages 288 - 294 refer.
Project Managers, Ajith Rajmohan and Alice Heather, took their report as read and answered questions on the New Zealand Sea rise data, liquefaction and geotechnical assessments.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Central Library Development - Risk Register (R27093) and its attachment (606908324-33384). |
Attendance: Mr J Murray joined the meeting at 10.55a.m.
13. Privacy Act 2020 - Reporting
Document number R27175, agenda pages 295 - 296 refer.
Manager Governance and Support, Devorah Nicuarta-Smith, took her report as read.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Privacy Act 2020 - Reporting (R27175) 2. Notes that future updates will be provided to the subcommittee six monthly. |
14. Health, Safety and Wellbeing Quarterly Report - 30 June 2022
Document number R27172, agenda pages 297 - 313 refer.
Manager Business Improvement Analyst, Arlene Akhlaq, took the report as read and answered questions on the COVID 19 settings and their employment impacts.
Her Worship the Mayor Reese confirmed that all relevant metrics were reported to the Chief Executive Employment Subcommittee.
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That the Audit, Risk and Finance Subcommittee Receives the report Health, Safety and Wellbeing Quarterly Report - 30 June 2022 (R27172) and its attachment (855153265-555). |
15. Quarterly Internal Audit Report
Document number R27173, agenda pages 314 - 318 refer.
Audit and Risk Analyst, Chris Logan, answered questions on when the Harbour Master contract was for review.
The Chairperson noted that this was a complex area that required performance delivery, and a method to assess the risk, and capacity. Mr Logan advised that KPIs would need to be developed, and reported through to the relevant Subcommittee.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Quarterly Internal Audit Report (R27173) and its attachment (1194974384-3166). |
16. Quarterly Risk Report - 30 June 2022
Document number R27174, agenda pages 319 - 347 refer.
Audit and Risk Analyst, Chris Logan, took the report as read and answered questions on workplace stress and its reporting process.
Her Worship the Mayor Reese noted Members requested work place stress be progressed and reported back with an urgent plan and a discussion at the Council meeting on the 29 September 2022.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Quarterly Risk Report - 30 June 2022 (R27174) and its attachment (1759736513-9). |
17. Bad Debts Write Off - Year Ending 30 June 2022
Document number R27177, agenda pages 348 - 350 refer.
Finance Manager, Prabath Jayawardana took the report as read.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Bad Debts Write Off - Year Ending 30 June 2022 (R27177). |
18. Six-monthly update - Section 17A review programme
Document number R27171, agenda pages 351 - 355 refer.
Policy Coordinator, Laura Bruce, took her report as read and confirmed a report would be presented to the Council meeting on 22 September 2022.
Her Worship the Mayor Reese expressed her view that Section 17A review should be a reported back to Subcommittee/Council.
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That the Audit, Risk and Finance Subcommittee 1. Receives the report Six-monthly update - Section 17A review programme (R27171). |
Councillor R Sanson declared an interest on a confidential Item, Complaint to Human Rights Commission, Item 3, 6.4.
Attendance: Councillor R Sanson left the meeting at 11.59a.m.
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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 - 24 May 2022 |
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 · Section 7(2)(c)(ii) · To protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest |
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Quarterly Update on Debts - 30 June 2022 |
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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Quarterly Report 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 |
The meeting went into confidential session at 11.55a.m. and resumed in public session at 1.16p.m.
Karakia Whakamutanga
There being no further business the meeting ended at 13.20p.m.
CONFIRMED AS A TRUE AND CORRECT RECORD BY THE CHAIRPERSON AND CHIEF EXECUTIVE UNDER STANDING ORDER 26.4:
Chairperson
Date
Chief
Executive Date