Minutes of a meeting of the

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

Resolved ARF/2022/027

 

That the Audit, Risk and Finance Subcommittee

1.        Receives and accepts an apology from Councillor J Edgar.

Sanson/Kelly                                                                                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. 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.

4.       Public Forum

There was no public forum.

5.       Confirmation of Minutes

5.1      24 May 2022

Document number M19478, agenda pages 10 - 19 refer.

Resolved ARF/2022/028

 

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.

Murray/Kelly                                                                                 Carried

5.2      9 August 2022

Document number M19700, agenda pages 20 - 22 refer.

Resolved ARF/2022/029

 

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.

Her Worship the Mayor/Kelly                                                         Carried

6.       Chairperson's Report

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. 

Resolved ARF/2022/030

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Chairperson's Report (R27221).

Peters/Her Worship the Mayor                                                       Carried

 

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.

Resolved ARF/2022/031

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Draft Annual Report 2021/22 (R26571) and its attachment (1854398335-33); and

2.    Notes the draft Annual Report 2021/22 has been prepared and will be audited before being presented to Council for adoption following audit, prior to the 31 December 2022 statutory deadline.

Murray/Her Worship the Mayor                                                      Carried

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.

Resolved ARF/2022/032

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Annual Procurement Monitoring Report 2021-22 (R26541).

Her Worship the Mayor/Sanson                                                     Carried

 

    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.

Resolved ARF/2022/033

 

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).

Murray/Lawrey                                                                             Carried

10.     Carry Forwards 2021/22

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.

Resolved ARF/2022/034

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Carry Forwards 2021/22 (R27167) and its attachments (332184083-4467 and  332184083-4466).

Lawrey/Murray                                                                             Carried

 

           Clause 5 of the recommendation was updated to include clarification        around the Science and Technology Precinct Capital Grant.

 

Recommendation to Council ARF/2022/035

 

That the Council

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.

Kelly/Lawrey                                                                                 Carried

 

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.

Resolved ARF/2022/036

 

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).

Murray/Her Worship the Mayor                                                      Carried

 

        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.

 

Resolved ARF/2022/037

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Central Library Development - Risk Register (R27093) and its attachment (606908324-33384).

Sanson/Her Worship the Mayor                                                     Carried

 

           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.

Resolved ARF/2022/038

 

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.

Her Worship the Mayor/Lawrey                                                      Carried

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.

Resolved ARF/2022/039

 

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).

Murray/Lawrey                                                                             Carried

 

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.

Resolved ARF/2022/040

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Quarterly Internal Audit Report (R27173) and its attachment (1194974384-3166).

Peters/Murray                                                                               Carried

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.  

Resolved ARF/2022/041

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Quarterly Risk Report - 30 June 2022 (R27174) and its attachment (1759736513-9).

Kelly/Murray                                                                                 Carried

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.

Resolved ARF/2022/042

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Bad Debts Write Off - Year Ending 30 June 2022 (R27177).

Her Worship the Mayor/Peters                                                       Carried

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. 

Resolved ARF/2022/043

 

That the Audit, Risk and Finance Subcommittee

1.    Receives the report Six-monthly update - Section 17A review programme (R27171).

Murray/Kelly                                                                                 Carried

       

        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.

       

19.     Exclusion of the Public

 

Resolved ARF/2022/044

 

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:

  

Her Worship the Mayor/Kelly                                                         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 - 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

2

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

3

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