Resolved

That the Risk and Assurance Committee:

1          Accepts the apology from Cr Te Taru White tendered at the meeting.

Love/Robertson

CARRIED

4.1

Risk and Assurance Committee Minutes - 15 October 2020

Matters Arising

In relation to Minute Item 5.1 “2019/20 Draft Annual Report review”, members noted the following:

The Executive Summary 2019/20 Draft Annual report (Page 77) had been updated by providing clarification on the status of the Regional Coastal Environment Plan (RCEP), indicating that the Plan had been signed off by the Minister of Conservation. 

The relevant text in the Draft Annual report now read as follows:

“The Regional Coastal Environment Plan (RCEP) became operative in December 2019. At this time there were two remaining appeals that were discrete matters relating to Matakana and Motiti. The Environment Court provided full and final decisions on these appeals in June 2020 and the council adopted these remaining parts of the RCEP and now these two resolved appeals have been referred to the Minister of Conservation for approval, which we expect in the new year.”

Members noted that the Annual Report was due to be presented to Council for adoption at the Council meeting scheduled for 17 December 2020.

Resolved

That the Risk and Assurance Committee:

1          Confirms the Risk and Assurance Committee Minutes - 15 October 2020 as a true and correct record.

von Dadelszen/Crosby

CARRIED

5.1

Chairperson's Report

Tabled Document 1 - Tabled item 1 - Risk and Assurance Work Programme March 2021 to June 2021: Objective ID A3686224   

General Manager, Corporate Mat Taylor updated members on the Risk and Assurance Committee’s activities and provided an overview of the work programme for March 2021 to June 2021. (Refer Tabled item 1)

Item for Staff Follow Up:

·       A report on the status of Information Technology Security to be added to the Risk and Assurance Committee Work Programme for March 2021.

Resolved

That the Risk and Assurance Committee:

1          Receives the report, Chairperson's Report.

von Dadelszen/Crosby

CARRIED

5.2

Audit Engagement Letter: Audit of the consultation document and Long-Term Plan for the period commencing 1 July 2021

Audit New Zealand Audit Director Leon Pieterse and Finance & Transport Operations Manager Debbie Hyland presented the report.

Key Points by Audit Director Leon Pieterse:

·       Advised that due to Covid-19 and the continued impact delaying audit work, there might be an unforeseen impact on the timeframes/last minute changes to timelines

·       The Office of the Auditor-General had agreed that Councils’ Long Term Plans (LTPs) be regarded as high priority; this provided the support required to secure more resources

·       The Audit fee of $85,000, covering both the consultation document and the LTP for the period commencing 1 July 2021, was in accordance with an agreement with the Office of the Auditor General

·       Referred to the Auditor General’s website:

https://oag.parliament.nz/reports/ltccp  - recommended reading on Long Term Plan publications released by the Office of the Auditor General

·       Highlighted the following areas within the LTP that the auditors would focus on:

o   do-ability of the Capital Programme;

o   the conditions and performance of critical assets;

o   Climate Change (how this would be addressed in the Consultation Document);

o   the impact of Covid-19 and (5) the Consultation Document. 

o   Another matter requiring  focussed attention would be the Three Waters Reform and the impact thereof on the Regional Council.

In response to Questions:

·       Audit Director Leon Pieterse confirmed that Audit New Zealand would have sufficient resources/personnel involved in the management of the BOPRC audit to facilitate the timely completion of the work

·       Some key requirements for the Consultation Document would be:

o   to set out the contents in a reasonable way (catering for the informed reader to understand), and

o   making it clear what was being consulted on (based on reliable and supportable information)

·       For the assessment of the do-ability of Capital Programmes where more than one territorial authority was involved, a sector-wide perspective/assessment approach would be applied.

Resolved

That the Risk and Assurance Committee:

1          Receives the report, Audit Engagement Letter: Audit of the consultation document and Long-Term Plan for the period commencing 1 July 2021.

Robertson/Love

CARRIED

5.3

Risks for Post-COVID-19 Crown Funded Projects

Chris Ingle, General Manager Integrated Catchments presented the report.

Key Points:

·       Crown funding which had been made available following the Covid-19 event to support economic stimulus projects had aligned with Council’s strategic priorities

·       Created the opportunity to accelerate outcomes that Council was already striving to achieve – “doing more of what we were doing”.

Key Points - Members:

·       Since Crown funding for the projects was for a finite period, Council might be left with increased operational costs to maintain expected levels of service – this was flagged as a potential risk for Council

·       Highlighted a further possible risk for Council in areas where co-funding for Opex came from various agencies: obligations could possibly not be met or milestones might not be achieved, resulting in funding being withheld or stopped

·       Noted that details relating to the Wallabies Programme (covering issues such as training, employment, upskilling opportunities/social procurement outcomes and opportunities) would be further discussed by the Monitoring and Operations Committee.

Resolved

That the Risk and Assurance Committee:

1          Receives the report, Risks for Post-COVID-19 Crown Funded Projects.

von Dadelszen/Robertson

CARRIED

5.4

Internal Audit Status Update

Risk & Assurance Manager Steven Slack and Principal Internal Auditor Aaron Huggins presented the report.

Key Points - Members:

·       Recognised the significant progress made with Internal Audit follow-up work

·       Noted that the Policy Framework Review, as directed by KPMG, would be focusing on determining if policies were fit for purpose; if all the required policies were in place and communicated clearly across the organisation.  The review would apply to internal operational policies only.

Items for Staff Follow Up:

·       With reference to the term “other” used on the graph on page 58, under “Health and Safety”, members noted that the Health and Safety audit did not take place in a control based audit, but rather an improvement based audit.  Since the recommendations were focussed on improvement, ratings of “high, medium or low” did not apply.  As it was unclear how the term “other” had been measured, members requested that alternative/clearer wording be considered

·       Staff to review the current health and safety reporting presentation format. Consider other format for reporting beyond the current matrix.

Resolved

That the Risk and Assurance Committee:

1          Receives the report, Internal Audit Status Update.

Clark/Robertson

CARRIED

Resolved

Resolution to exclude the public

1        Excludes the public from the following parts of the proceedings of this meeting as set out below:

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:

Love/Robertson

CARRIED