Agenda of Risk and Assurance Committee - Thursday, 5 October 2023

Risk and Assurance Committee

Membership

Chairperson	Cr Stuart Crosby
Deputy Chairperson (Independent)	Bruce Robertson
Members	Cr Ron Scott Cr Andrew von Dadelszen Cr Te Taru White Cr Kevin Winters
Ex Officio	Chairman Doug Leeder
Quorum	Three members, consisting of half the number of members
Meeting frequency	Quarterly

Purpose

Monitor the effectiveness of Council’s funding and financial policies and frameworks to ensure the Council is managing its finances in an appropriate manner.

Monitor the effectiveness of Council's performance monitoring framework.

Ensure that Council is delivering on agreed outcomes.

Role

· Monitor the effectiveness of Council’s funding and financial policies and Council’s performance monitoring framework (financial and non-financial).

· Review Council’s draft Annual Report prior to Council’s adoption.

· Receive and review external audit letters and management reports.

· Approve and review the internal audit plan and review the annual programme report.

· Approve, review and monitor Council’s risk framework and policy.

· Review the risk register.

· Monitor Council’s legislative compliance and receive reporting on non-compliance matters as part of risk management reporting.

Power to Act

To make all decisions necessary to fulfil the role and scope of the committee subject to the limitations imposed.

Power to Recommend

To Council and/or any standing committee as it deems appropriate.

The Risk and Assurance Committee is not delegated authority to:

· Develop, review or approve strategic policy and strategy.

· Develop, review or approve Council’s Financial Strategy, funding and financial policies and non-financial operational policies and plans.

The Risk and Assurance Committee reports directly to the Regional Council.

Recording of Meetings

Please note the Public section of this meeting is being recorded and streamed live on Bay of Plenty Regional Council’s website in accordance with Council's Live Streaming and Recording of Meetings Protocols which can be viewed on Council’s website. The recording will be archived and made publicly available on Council's website within two working days after the meeting on www.boprc.govt.nz for a period of three years (or as otherwise agreed to by Council).

All care is taken to maintain your privacy; however, as a visitor in the public gallery or as a participant at the meeting, your presence may be recorded. By remaining in the public gallery, it is understood your consent is given if your image is inadvertently broadcast.

Opinions expressed or statements made by individual persons during a meeting are not the opinions or statements of the Bay of Plenty Regional Council. Council accepts no liability for any opinions or statements made during a meeting.

Risk and Assurance Committee 5 October 2023

Recommendations in reports are not to be construed as Council policy until adopted by Council.

Agenda

1. Apologies

2. Public Forum

3. Items not on the Agenda

4. Order of Business

5. Declaration of Conflicts of Interest

6. Public Excluded Business to be Transferred into the Open

7. Minutes

Minutes to be Confirmed

7.1 Risk and Assurance Committee Minutes - 14 June 2023 2

8. Reports

8.1 Chairperson's Report 2

Attachment 1 - Risk and Assurance Work Programme September 2023 - June 2024 2

Attachment 2 - Risk and Assurance Completed Work Programme March 2023 to June 2023 2

8.2 Audit New Zealand Report on the interim audit of the Bay of Plenty Regional Council for the year ended 30 June 2023 2

Attachment 1 - BOPRC - Interim Management Report (30 June 2023) 2

8.3 Progress update on the Draft Annual Report for the year ended 30 June 2023 2

Attachment 1 - Draft Annual Report 2022-2023 2

8.4 Expenditure and Koha report for the year ended 30 June 2023 2

Attachment 1 - Hei Maanaki (Koha Guidelines) 2

Attachment 2 - Koha for the twelve months ended 30 June 2023 - REDACTED 2

Attachment 3 - Koha for the twelve months ended 30 June 2023 - UNREDACTED - Public Excluded

Attachment 4 - Supplier Payments Reports for the year ended 30 June 2023 - REDACTED 2

Attachment 5 - Supplier Payments Reports for Year Ended 30 June 2023 - UNREDACTED - Public Excluded

Attachment 6 - Sensitive expenditure for the year ended 30 June 2023 2

8.5 Chairman's Discretionary Fund 2022/23 2

8.6 Local Government Official Information & Meetings Act 1987 – Annual Report 2022/23 2

Attachment 1 - 2022/2023 LGOIMA Request List - Names Removed 2

8.7 Internal Audit Annual Report 2022/23 and Status Update 2

9. Public Excluded Section

Resolution to exclude the public

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:

Item No.	Subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Grounds under Section 48(1) for the passing of this resolution	When the item can be released into the public
8.4	Expenditure and Koha report for the year ended 30 June 2023 - Attachment 3 - Koha for the twelve months ended 30 June 2023 - UNREDACTED - Public Excluded	Withholding the information is necessary to protect the privacy of natural persons, including that of deceased natural persons.	48(1)(a)(i) Section 7 (2)(a).	To remain in public excluded.
8.4	Expenditure and Koha report for the year ended 30 June 2023 - Attachment 5 - Supplier Payments Reports for Year Ended 30 June 2023 - UNREDACTED - Public Excluded	Withholding the information is necessary to protect the privacy of natural persons, including that of deceased natural persons.	48(1)(a)(i) Section 7 (2)(a).	To remain in public excluded.
9.1	Public Excluded Risk and Assurance Committee Minutes - 14 June 2023	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
9.2	Completed Internal Audit Reviews & Overdue Actions Update	Withholding the information is necessary 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 to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied.	48(1)(a)(i) Section 7 (2)(c)(i).	On the Chief Executive's approval.
9.3	Legislative Compliance - Annual Report 2022/23	Making the information available would be likely to prejudice the maintenance of the law, including the prevention, investigation, and detection of offences, and the right to a fair trial; Withholding the information is necessary to maintain legal professional privilege.	48(1)(a)(i) Section 6 (a); 48(1)(a)(i) Section 7 (2)(g).	To remain in public excluded.
9.4	Legal Services - Annual Report 2022/23	Making the information available would be likely to prejudice the maintenance of the law, including the prevention, investigation, and detection of offences, and the right to a fair trial; Withholding the information is necessary to maintain legal professional privilege.	48(1)(a)(i) Section 6 (a); 48(1)(a)(i) Section 7 (2)(g).	To remain in public excluded.
9.5	Key Risk Register	Withholding the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage.	48(1)(a)(i) Section 7 (2)(j).	On the Chief Executive's approval.
9.6	Risk and Assurance Committee - Steering Group for Insurance and Related Matters	Withholding the information is necessary to protect information where the making available of the information would be likely to unreasonably prejudice the commercial position of the person who supplied or who is the subject of the information.	48(1)(a)(i) Section 7 (2)(b)(ii).	On the Chief Executive's approval.

8.4 Expenditure and Koha report for the year ended 30 June 2023

Attachment 3 - Koha for the twelve months ended 30 June 2023 - UNREDACTED - Public Excluded

Attachment 5 - Supplier Payments Reports for Year Ended 30 June 2023 - UNREDACTED - Public Excluded

Minutes to be Confirmed

9.1 Public Excluded Risk and Assurance Committee Minutes - 14 June 2023

Reports

9.2 Completed Internal Audit Reviews & Overdue Actions Update

Attachment 1 - Climate Change internal audit - Executive Summary

Attachment 2 - Protected Disclosures (Whistleblowers) internal audit - Executive Summary

9.3 Legislative Compliance - Annual Report 2022/23

Attachment 1 - 20231005 Legislative Compliance Report - ComplyWith attachment - Public Excluded

9.4 Legal Services - Annual Report 2022/23

9.5 Key Risk Register

Attachment 1 - Key risk register - June 2023

Attachment 2 - KRR - Heat Map June 2023

9.6 Risk and Assurance Committee - Steering Group for Insurance and Related Matters

10. Public Excluded Business to be Transferred into the Open

11. Readmit the Public

12. Consideration of Items not on the Agenda

Risk and Assurance Committee Minutes

14 June 2023

Risk and Assurance Committee

Open Minutes

Commencing: Wednesday 14 June 2023, 9.30 am

Venue: Council Chambers, Regional House, 1 Elizabeth Street, Tauranga

Chairperson: Cr Stuart Crosby

Deputy Chairperson: Bruce Robertson (Independent Member)

Members: Cr Ron Scott

Cr Andrew von Dadelszen

Cr Te Taru White

Cr Kevin Winters

In Attendance: Councillors: Cr Kat Macmillan, Cr Jane Nees (via Zoom)

Staff: Fiona McTavish – Chief Executive (via Zoom); Mat Taylor – General Manager Corporate; Kumaren Perumal – Chief Financial Officer; Mark Le Comte – Principal Advisor, Finance; Gillian Payne – Principal Advisor; Olive McVicker – Corporate Performance Team Lead; Steven Slack – Risk & Assurance Manager; Aaron Huggins – Principal Internal Auditor; Stacey Brooks – Asset Management Information Officer (via Zoom); Rhianon Lewis – Executive Assistant, General Manager Corporate; Steve Groom – Governance Manager; Jenny Teeuwen – Committee Advisor

External: Leon Pieterse - Audit Director, Audit New Zealand

Apologies: Cr Te Taru White for late arrival

Committee members and the public were reminded that the public section of the meeting was being livestreamed and recorded and that the recording would be available on the Bay of Plenty Regional Council YouTube channel following the meeting.

Recording link: Risk & Assurance Committee Meeting - 14 June 2023 - YouTube

1. Apologies

Resolved

That the Risk and Assurance Committee:

1 Accepts the apology from Cr White for late arrival tendered at the meeting.

Winters/Crosby

CARRIED

2. Declaration of Conflicts of Interest

Bruce Robertson (Independent Member) declared an interest in Agenda Item 9.2 – Key Risk Register.

3. Minutes

Minutes to be Confirmed

3.1

Risk and Assurance Committee Minutes - 8 March 2023

Resolved

That the Risk and Assurance Committee:

1 Confirms the Risk and Assurance Committee Minutes - 8 March 2023 as a true and correct record.

Robertson/von Dadelszen

CARRIED

4. Reports

4.1

Chairperson's Report

Presented by: Mat Taylor – General Manager, Corporate

Key Points

· The report provided an update of the current Risk and Assurance work programme, as well as the forward plan for the coming year.

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Chairperson's Report.

Crosby/Winters

CARRIED

4.2

External Audit Engagement Letter 2023-2025 and Audit Plan 2022/23

Presented by: Kumaren Perumal – Chief Financial Officer

Leon Pieterse - Audit Director, Audit New Zealand

Key Points

· Audit NZ had been confirmed as Bay of Plenty Regional Council Toi Moana’s (Regional Council) appointed audit service provider for the financial years ending 30 June 2023 to 30 June 2025.

· The Audit Plan set out the reporting protocols and audit logistics for the year ending 30 June 2023.

In Response to Questions

· Regional Council’s audit fee was due to be confirmed shortly but was expected to increase by around 30%. The fee was based on the number of audit hours.

· Audit NZ would work with staff to see if any efficiencies could be made to reduce the number of audit hours.

· Audit NZ hours for last year totalled 1,400 hours. This was expected to be reduced for the coming year.

· Audit NZ had increased resources significantly so did not expect any issues with meeting deadlines this year.

9.43am – Cr White entered the meeting

· Focus areas for this year’s audit were outlined.

· Emerging areas of audit focus included the three waters reform and climate change reporting. Reporting requirements for these issues were still unclear at this stage.

Resolved

That the Risk and Assurance Committee:

1 Receives the report, External Audit Engagement Letter 2023-2025 and Audit Plan 2022/23.

Winters/von Dadelszen

CARRIED

4.3

Internal Audit Status Update

Presented by: Aaron Huggins - Principal Internal Auditor

Key Points

· The internal audit programme delivery was on track.

· Further information had been included in the report that highlighted whether audit actions were past due.

· The Waka Kotahi NZ Transport Agency (Waka Kotahi) Investment Audit Report had been included to give councillors more visibility over the audit. The audit had already been presented to the Public Transport Committee.

In Response to Questions

· Outstanding actions for the Gravel Extraction audit related to how gravel extraction was managed across the region’s various river beds. Fees and charges for gravel extraction would be reviewed as part of the Long Term Plan process.

· More detail on outstanding actions, with a focus on high and medium priority actions, would be included in future Internal Audit Status Update reports.

· The procurement audit was on the programme for next year, and contract management on the programme the year following.

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Internal Audit Status Update.

Robertson/Scott

CARRIED

4.4

Internal Audit Work Programme 2023/24

Presented by: Aaron Huggins - Principal Internal Auditor

Key Points

· The internal audit work programme had been reviewed and endorsed by Regional Council’s Leadership Team.

In Response to Questions

· Time had been built into the programme for responsive reviews.

· The possibility of fraud was part of the methodology for every internal audit.

· External contractors rated as high risk was more about ensuring that Regional Council was doing the right things internally to ensure contract delivery, rather than external contractors being high risk.

· Freshwater management was rated high risk because of its high importance and high visibility.

· The delegations audit ensured staff were working within delegations.

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Internal Audit Work Programme 2023/24.

2 Approves the Internal Audit Work Plan 2023/24, 2024/25, 2025/26, including the detailed work plan for 2023/24.

White/Robertson

CARRIED

4.5

Rates Setting for 2023/24 Financial Year - Legal Compliance

Presented by: Kumaren Perumal – Chief Financial Officer

Mark Le Comte - Principal Advisor

Key Points

· The report provided an oversight of the rates setting process for the 2023/24 financial year.

· An external legal review of the rates resolution and rates Funding Impact Statement for the 2023/24 financial year had been undertaken.

· Regional Council was scheduled to set rates for the 2023/24 financial year at its meeting on 29 June 2023.

In Response to Questions

· The delay in property valuations for the Western Bay of Plenty District was not expected to impact Regional Council adopting their Annual Plan on 29 June 2023.

· Staff would consider whether further clarification/explanation was required in the Rates Setting for 2022/23 Financial Year report to Regional Council regarding targeted rates on contiguous properties.

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Rates Setting for 2023/24 Financial Year - Legal Compliance.

Crosby/Winters

CARRIED

4.6

Assets Register - Data Improvements

Presented by: Kumaren Perumal – Chief Financial Officer

Key Points

· During 2022/23, Regional Council’s asset data improvement programme identified $4.8 million in previously unrecorded assets.

· Audit NZ had been advised of the $4.8 million of assets in advance of the final Annual Report audit visit. Audit NZ had advised that their technical team would be testing the materiality of this quantum in relation to the total value of Regional Council’s asset base.

In Response to Questions

· New processes would be put in place e.g. a Capitalisation process and a Capital Works process, to avoid data errors in the future.

· Audit NZ’s technical team would be testing to ascertain whether the assets could be recorded as a reserves movement or needed to be disclosed as a prior period error.

· If an asset was identified as critical or would be replaced, then it would fall under Regional Council’s insurance programme for coverage.

· The data improvement process would always be susceptible to picking up aged assets that may not have been recorded through past processes.

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Assets Register - Data Improvements.

White/Scott

CARRIED

5. Public Excluded Section

Resolved

Resolution to exclude the public

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

Item No.	Subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Grounds under Section 48(1) for the passing of this resolution	When the item can be released into the public
5.1	Public Excluded Risk and Assurance Committee Minutes - 8 March 2023	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
5.2	Key Risk Register	Withholding the information is necessary to enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	48(1)(a)(i) Section 7 (2)(i).	On the Chief Executive's approval.

von Dadelszen/Winters

CARRIED

12.27 pm – the meeting closed.

Confirmed

Cr Stuart Crosby

Chairperson, Risk and Assurance Committee



Report To:	Risk and Assurance Committee
Meeting Date:	5 October 2023
Report Writer:	Mat Taylor, General Manager, Corporate
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	Update on Risk and Assurance Committee Activities

Chairperson's Report

Executive Summary

This report provides the Committee with an update on Risk and Assurance Committee activities.

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Chairperson's Report.

1. Introduction

The report shows an updated Risk and Assurance Work Programme for the year ahead, and an updated Risk and Assurance Completed Work Programme.

1.1 Alignment with Strategic Framework

The Way We Work	We continually seek opportunities to innovate and improve.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

þ Economic

2. Risk and Assurance Work Programme

Attachment 1 shows the Risk and Assurance Work Programme for 2023/24. This Work Programme sets out the planned and scheduled reporting to the Risk and Assurance Committee.

The appendix is categorised to identify the broad areas of responsibility for the Committee. Other items may be added by councillors and staff should this be required to respond to issues as they occur throughout the year.

3. Risk and Assurance Completed Work Programme

Attachment 2 shows the Risk and Assurance Completed Work Programme.

4. Considerations

4.1 Risks and Mitigations

There are no significant risks associated with this matter/subject/project/initiative.

4.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

4.3 Implications for Māori

There are no implications for Māori.

4.4 Financial Implications

This work is being undertaken within the current budget for the Governance Activity of the Long Term Plan 2021 – 2031.

5. Next Steps

None.

Attachments

Attachment 1 - Risk and Assurance Work Programme September 2023 - June 2024 ⇩

Attachment 2 - Risk and Assurance Completed Work Programme March 2023 to June 2023 ⇩



Report To:	Risk and Assurance Committee
Meeting Date:	5 October 2023
Report Writer:	Nolene Naude, Financial Accounting Team Lead and Kumaren Perumal, Chief Financial Officer
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	The Risk and Assurance Committee to receive the Audit New Zealand Letter on the interim audit of the Bay of Plenty Regional Council for the year ending 30 June 2023 (Attachment 1)

Audit New Zealand Report on the interim audit of the Bay of Plenty Regional Council for the year ended 30 June 2023

Executive Summary

The purpose of this report is to present Audit New Zealand’s report (the report) on the interim audit of the Bay of Plenty Regional Council for the year ending 30 June 2023. The report outlines audit findings, recommendations and prioritises them as urgent, necessary, or beneficial. There are a total of five open recommendations and four recommendations that Audit New Zealand will follow up during their final audit for the year ended 30 June 2023. One recommendation from previous years has been closed.

There were eight recommendations prioritised as necessary and one prioritised as beneficial. There were no recommendations prioritised as urgent.

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Audit New Zealand Report on the interim audit of the Bay of Plenty Regional Council for the year ended 30 June 2023.

1. Introduction

The report sets out findings arising from the interim audit performed over the period June to July 2023.

Audit New Zealand has identified areas where Council is performing well along with recommendations for areas where improvements can be made. The report also provides an update on action taken by staff against previous audit recommendations.

The report includes the results for Council only.

1.1 Alignment with Strategic Framework

The Way We Work

We deliver value to our ratepayers and our customers.

The report provides audit findings on the overall performance of Council outlining recommendations for improvement and progress against prior recommendations. As a result, it supports the delivery of all four Community Outcomes and the Way We Work.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

þ Cultural

þ Social

þ Economic

The report outlines audit findings on Council’s financial and non-financial performance for the year ending 30 June 2023, recommendations for improvement and progress on management’s response to prior year recommendations and promotes all four aspects of community well-being.

2. Findings from the report

The report outlines the matters identified during the interim audit, new recommendations, the status of previous recommendations and any recommendations that will require follow up during their final audit.

There are nine previous recommendations of which one is closed, four are open and four will be reviewed during the final audit. There was one new necessary recommendation raised. Detailed information on the recommendation can be found in Attachment 1.

A status summary of Audit New Zealand’s recommendations is set out in the following table:

Table 1 Status of Audit New Zealand Recommendations:

Priority	Priority
Priority	Urgent	Necessary	Beneficial	Total
Closed	-	1	-	1
Open	-	4	-	4
Matters that will be followed up during our final audit visit	-	3	1	4
New		1		1
Total	-	9	1	10

3. Considerations

3.1 Risks and Mitigations

There are no direct risk implications arising from this report.

3.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

3.3 Implications for Māori

There are no direct implications for Māori arising from this report.

3.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision relates to internal Council matters only.

3.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

4. Next Steps

Audit New Zealand has highlighted recommendations from the interim audit for the year ended 30 June 2023. These have been appropriately noted and actions are underway to address the remaining open recommendations.

Attachments

Attachment 1 - BOPRC - Interim Management Report (30 June 2023) ⇩



Report To:	Risk and Assurance Committee
Meeting Date:	5 October 2023
Report Writer:	Nolene Naude, Financial Accounting Team Lead; Olive McVicker, Corporate Performance Team Lead and Kumaren Perumal, Chief Financial Officer
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	Progress update on the Draft Annual Report for the year ended 30 June 2023

Progress update on the Draft Annual Report for the year ended 30 June 2023

Executive Summary

The purpose of this report is to provide the Risk and Assurance Committee with an update on the preparation and audit of the Annual Report for the year ended 30 June 2023 (AR 2022/23).

The Draft AR 2022/23 (attachment one) contains the draft financial and non-financial performance results of Council (as the parent reporting entity) and consolidated financial statements for the Council Group which includes the wholly owned subsidiaries Quayside Holdings Limited (QHL) and the Toi Moana Trust (TMT).

Audit New Zealand (Audit NZ) and Council staff continue to work closely together to complete AR 2023 as scheduled. At the time of this report, the final audit of AR 2022/23 is approximately 70% complete. Verbal clearance is expected from Audit NZ on 13 October, with AR 2022/23 expected to be recommended to Council for adoption on 26 October 2023. These dates are consistent with the Audit Plan presented to the Committee in June 2023.

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Progress update on the Draft Annual Report for the year ended 30 June 2023.

1. Introduction

Over the past months, Audit NZ and Council staff have met regularly to discuss key audit matters, including methodology, expectations, resourcing and timing of the audit.

Audit NZ completed the interim audit in June 2023. Progress against the Audit Plan presented to this committee in June 2023 is shown in the table below.

Date	Description	Progress
6 Jun 2023	First interim audit in progress	Completed on time.
11 Sep 2023	Final audit commences	In progress. Some elements commenced early.
11 Sep 2023	Audit of consolidated accounts	In progress.
13 Oct 2023	Verbal audit clearance	On track.
26 Oct 2023	Audit opinion issued	On track.
13 Nov 2023	Final detailed Report to Council issued	On track.

Areas that require completion in the Draft AR 2022/23 are outlined below:

· Put Option valuation

· Rates receivable

· Fixed assets

· Taxation

· Valuation and accounting of CCO’s

· Quality Reviews

The specific audit processes in relation to the Put Option valuation methodology have been discussed and agreed with Audit NZ. The other remaining areas are standard audit processes and not expected to raise any concerns from an Audit NZ methodology perspective.

Staff are working with Audit NZ to ensure the remaining areas of work are completed and available to the audit team members to finalise their work as scheduled.

Audits of Council’s wholly owned subsidiaries, QHL and TMT, have been completed and their Annual Reports for the year ended 30 June 2023 have been adopted.

1.1 Legislative Framework

The AR 2022/23 is prepared in accordance with the requirements of the Local Government Act 2002 and the Local Government (Financial Reporting and Prudence) Regulations 2014.

1.2 Alignment with Strategic Framework

The Draft AR 2022/23 provides a report on the financial and non-financial performance of Council as set out in its Long-Term Plan 2021-2031 and Annual Plan 2022/23. As a result, the AR 2022/23 it supports accountability for the delivery of all Community Outcomes and the Way We Work.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

þ Cultural

þ Social

þ Economic

The AR 2022/23 provides a report on the financial and non-financial performance of Council and as such promotes all four aspects of community well-being.

2. Considerations

2.1 Risks and Mitigations

There are no direct risk implications arising as a result of this report.

Council will continue to closely monitor its delivery of the Long-Term Plan 2021-2031 key performance indicators and financial performance through its in-year monitoring processes.

2.2 Climate Change

There are no direct climate change implications arising as a result of this report.

Climate Change is identified as a strategic challenge facing the Bay of Plenty Region. The Draft AR 2022/23 provides a report on the financial and non-financial performance of Council. This includes work to understand and respond to the implications of Climate Change.

2.3 Implications for Māori

There are no direct implications for Māori arising as a result of this report. The Draft AR 2022/23 provides a report on the financial and non-financial performance of Council. This includes reporting on work to support Māori participation in Council decision-making processes.

2.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision relates to internal Council matters only.

2.5 Financial Implications

The Draft AR 2022/23 shows financial performance by Council despite the impacts of the current economic climate. The majority of underspends on the capital budget will be requested to be carried forward. These carry forwards, and an updated view of deliverability, will result in a revised capital budget for 2023/24 and be incorporated into the Long Term Plan 2024-2034 process.

3. Next Steps

The external audit of the Bay of Plenty Regional Council for the year ended 30 June 2023 is in progress and staff anticipate that Council will receive verbal audit clearance from Audit New Zealand as scheduled on 13 October 2023. Final changes resulting from audit and minor editorial and rounding corrections will be incorporated into the final AR 2022/23 which will be recommended to Council for adoption on 26 October 2023.

Attachments

Attachment 1 - Draft Annual Report 2022-2023 ⇩

Risk and Assurance Committee 5 October 2023

PDF Creator



Report To:	Risk and Assurance Committee
Meeting Date:	5 October 2023
Report Writer:	Nolene Naude, Financial Accounting Team Lead and Kumaren Perumal, Chief Financial Officer
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	Provide Supplier, Sensitive expenditure and Koha expenditure for the twelve months ended 30 June 2023

Expenditure and Koha report for the year ended 30 June 2023

Executive Summary

This report provides financial information about Council’s supplier and koha spend for 2022/23.

The Audit New Zealand Management Report to Council for the year ending 30 June 2022 recommended sensitive expenditure incurred by the Chair and senior management to be reported to those charged with governance to allow oversight.

The annual supplier spend report provides total spend per supplier where the total spend is greater than $50,000 (excluding goods and services tax) for the twelve months ended 30 June 2023.

This report also incorporates Council’s Koha Expenditure for 2022/23 and sensitive expenditure incurred by the Elected members and the Leadership Team.

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Expenditure and Koha report for the year ended 30 June 2023.

2 Confirms the public be excluded on the grounds set out in the Local Government Official Information and Meetings Act 1987 from consideration of the following report attachments:

(a) Koha for the twelve months ended 30 June 2023 - UNREDACTED under Section 48(1)(a)(i) Section 7 (2)(a) as withholding the information is necessary to protect the privacy of natural persons, including that of deceased natural persons and that this attachment remain in Public Excluded.

(b) Supplier Payments Reports for Year Ended 30 June 2023 - UNREDACTED under Section 48(1)(a)(i) Section 7 (2)(a) as withholding the information is necessary to protect the privacy of natural persons, including that of deceased natural persons and that this attachment remain in Public Excluded.

1. Introduction

This annual supplier spend report provides open and transparent information of Council’s significant payments to third parties including suppliers, contractors and consultants for the year ended 30 June 2023. It also provides details of Koha spend.

Detail of sensitive expenditure incurred by Elected Members and the Leadership Team has also been included as an attachment to this report for the year ended 30 June 2023.

1.1 Alignment with Strategic Framework

The Way We Work

We deliver value to our ratepayers and our customers.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

þ Cultural

þ Social

þ Economic

Council’s Expenditure and Koha report for the year ended 30 June 2023 covers all aspects of the Community Well-Beings

2. Information extraction

The Hei Manaaki (Koha Guidelines) have been attached to this report as previously requested.

The expenditure information has been extracted from Council’s financial management system. The Koha spend, annual supplier spend report and sensitive expenditure for the twelve months ended 30 June 2023 is provided.

The supplier spend report lists the total spend per supplier for the period stated, where the total is greater than $50,000 (excluding GST). This helps to keep the report length and detail within a manageable size.

This report provides information for expenditure values only, and it does not show where revenue has been received to offset payments. Statutory bodies e.g. ACC, are excluded from the annual supplier spend report. Some of the information is redacted where appropriate.

Sensitive expenditure for Elected Members and the Leadership Team has been provided to the Committee to allow oversight. The oversight is a requirement from the Office of the Auditor General and considered good practice. Sensitive expenditure is defined as any spending by an organisation that could be seen to be giving private benefit to staff (and elected members) additional to the business benefit to the organisation.

The sensitive expenditure lists the type of expenditure for the Elected Members and the Leadership Team.

3. Considerations

3.1 Risks and Mitigations

The matters addressed in this report are of an informative nature and there is no need to consider the risks and mitigations.

3.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

3.3 Implications for Māori

The giving of Koha is a cultural practice that is widely supported and implemented. Koha is a gesture of reciprocity, respect and manaakitanga. Koha can be expressed by way of gifts (financial or non-financial) or support in-kind. It is common to acknowledge cultural expertise via Koha or to provide Koha to grieving whānau during tangihanga. There are positive implications of the act of Koha, particularly in demonstrating an understanding and appreciation of tikanga Māori.

3.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision relates to internal Council matters only.

The report provides information to Council relating to expenditure and koha. As such no community engagement is required.

3.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

4. Next Steps

Staff will finalise the 2022/23 Expenditure and Koha Report following the completion of the external audit and the adoption of the Council’s Annual Report 2022/23.

Attachments

Attachment 1 - Hei Maanaki (Koha Guidelines) ⇩

Attachment 2 - Koha for the twelve months ended 30 June 2023 - REDACTED ⇩

Attachment 3 - Koha for the twelve months ended 30 June 2023 - UNREDACTED (Public Excluded) ⇩

Attachment 4 - Supplier Payments Reports for the year ended 30 June 2023 - REDACTED ⇩

Attachment 5 - Supplier Payments Reports for Year Ended 30 June 2023 - UNREDACTED (Public Excluded) ⇩

Attachment 6 - Sensitive expenditure for the year ended 30 June 2023 ⇩



Report To:	Risk and Assurance Committee
Meeting Date:	5 October 2023
Report Writer:	Mat Taylor, General Manager, Corporate
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To provide an update on individuals and/or organisations who received financial assistance from this Fund

Chairman's Discretionary Fund 2022/23

Executive Summary

The Chairman’s Discretionary Fund was established to provide financial assistance for individual and/or organisations to participate in events/activities that meet certain criteria.

In the 2022/23 financial year, three requests request totalling $14,811.58 were accepted.

· Farm 4 Life Limited

· Tauranga Intermediate Students Future Problem Solving Conference

· Hot Water Cylinder supply and installation for private Rotorua Airshed property

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Chairman's Discretionary Fund 2022/23.

1. Introduction

The Chairman’s Discretionary Fund has been operated by the Chairman of the Regional Council for the last three terms within parameters. The purpose of the fund is to:

· Assist an individual to participate in an event or activity that will further their personal development in their chosen field. The Fund provides financial assistance for registration, materials, flights and accommodation to help the individual achieve their goals. This is limited to $5,000.

· Assist an organisation to participate in an event or activity that has an alignment with Regional Council outcomes. This is limited to $5,000 per organisation.

· In exceptional circumstances, determined jointly by the Chairman and Chief Executive, funding can be provided to organisations above the $5,000 limit.

· All funding allocated from this fund must be consistent with the Sensitive Expenditure Policy and link to a Council Outcome.

The budget for this Fund is held by the Chief Executive.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

þ Cultural

þ Social

þ Economic

This item contributes to the ‘A Vibrant Region’ Community Outcome in the Council’s Long Term Plan 2018-2028.

2. 2022/23 Chairman’s Discretionary Fund Activity

	Requests Accepted	Amount
1	Farm 4 Life	$4,400
2	Tauranga Intermediate Students Problem Solving International Conference	$5,000
3	Hot Water Cylinder supply and installation for private Māori owned property	$5,411.58

2.1 Farm 4 Life

Tangaora Walker, originally from the Bay of Plenty and now living in the South Island, was awarded the Ahuwhenua Young Māori Farmer of the Year Award in 2012. That same year, he founded Farm 4 Life.

Farm 4 Life

Farm 4 Life, is taking rural education by storm with its new hub and video learning platform that aligns with NZQA-qualified teachings for the dairy industry. With more than 2,000 videos, incorporating quizzes and assessments, it’s giving members an understanding of the ins and outs of dairy farming. Tangaroa is a huge advocate of the farming community and boasts about the endless opportunities in dairy farming, including a massive calling for Aotearoa to get unemployed members of the community into homes that are currently empty on farms and provide them with work so they can gain farming experience and create a wholesome lifestyle.

Chairman Leeder invited Tangaroa to present to Komiti Māori at its 22 February 2023 meeting. The fund covered all costs associated with Tangaroa’s visit to Tauranga.

2.2 Tauranga Students Problem Solving International Conference

Students representing Tauranga Intermediate presented to Council at its 9 February 2023 meeting, requesting funding to support their efforts to attend the Future Problem Solving International Conference in the USA.

The Future Problem Solving International Conference engages students in creative problem solving, stimulating critical and creative thinking skills and encourages students to develop a vision for the future.

The Council agreed to match Tauranga City Councils $5,000 contribution towards travel and registration.

2.3 Hot Water Cylinder Supply and Installation

Through a complaint that came via the Pollution Hotline, the Compliance Team were alerted to a Rotorua Airshed property whose occupants were burning coal in a coal range, which is prohibited under the Rotorua solid fuel burner regulations and was also causing an asthmatic neighbour angst.

On Māori Land with 41 owners, and seven occupants, two of which have severe health conditions, it was agreed that the coal range be replaced with an Electric Hot Water Cylinder.

3. Considerations

3.1 Risks and Mitigations

There are no significant risk associated with this matter/subject/project/initiative.

3.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

3.3 Implications for Māori

There are no implications for Māori.

3.4 Community Engagement

This item contributes to the ‘A Vibrant Region’ Community Outcome in the Council’s Long Term Plan 2018-2028.

3.5 Financial Implications

This work is being undertaken within the current budget held by the Chief Executive and will continue to be included in a budget held by the Chief Executive.

4. Next Steps

There are no next steps.



Report To:	Risk and Assurance Committee
Meeting Date:	5 October 2023
Report Writer:	Monique Brooks, Legal Counsel
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	Report on the requests made to Council under the Local Government Official Information and Meetings Act 1987 from 1 July 2022 to 30 June 2023

Local Government Official Information & Meetings Act 1987 – Annual Report 2022/23

Executive Summary

This report provides Council with information relating to requests under the Local Government Official Information and Meetings Act 1987 from 1 July 2022 to 30 June 2023.

There were 118 requests for information during this period.

Council has maintained high standards of service in responding to requests for official information with only one breach of responding outside the legislative timeframe.

The Office of the Ombudsmen is currently investigating two complaints in relation to responses provided by Council.

Council charged one requester during this reporting period.

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Local Government Official Information & Meetings Act 1987 – Annual Report 2022/23.

1. Introduction

The Local Government Official Information and Meetings Act 1987 (LGOIMA) established processes for the public to request and receive official information held by local government agencies.

The LGOIMA gives the public a right to official information and the grounds for withholding any official information are limited. Generally, a local government agency can only withhold official information on the grounds of protecting a person’s privacy, commercial sensitivity, considered free and frank advice of officials, prejudicial to negotiations or commercial activity, or subject to legal professional privilege.

Part 2 of LGOIMA prescribes the processes, statutory timeframes and the duty to provide assistance for requests. There is an ability to charge the requester reasonable fees to cover the costs of researching, collating and providing official information.

1.1 Alignment with Strategic Framework

The Way We Work

We continually seek opportunities to innovate and improve.

2. Information Requests

2.1 Number of Requests

Council received 118 requests for official information during the 2022/23 financial year. Of these, 6 were withdrawn, and 2 transferred to other organisations. A list of these requests is attached to this report. This is relatively consistent with the previous financial year where 121 requests were received, seven of which were withdrawn and one transferred to another agency.

Table 1 – Number of requests

Financial Year	Number Of Requests
2022/23	118
2021/22	121
2020/21	136
2019/20	75
2018/19	132
2017/18	126
2016/17	80

Table 2 – Requests by Group

	People and Leadership	Corporate	Integrated Catchments	Regulatory Services	Strategy and Science
Number of LGOIMA	5	27	10	71	5
Percentage of total	4%	23%	8%	61%	4%

2.2 Breaches of Timeframes

Council has maintained high standards of service in responding to requests for official information with only one breach of timeframe noted during this period. This related to a request for information on bus services provided in Rotorua. This response was provided 8 working days after the 20 working day timeframe. The requester did not complain about the delay and was happy with the response provided.

2.3 Charging

Council does not charge to respond to LGOIMA requests as a default position. This aligns with the Ombudsman’s expectation that an agency will not charge to supply official information unless the request involves considerable labour and materials, and the agency considers it is reasonable to charge. Further, this is to uphold the purpose of the LGOIMA that all official information should be made public unless good reason exists to withhold it.

Council charged for one LGOIMA during the reporting period and received payment from the requestor for $500. Substantial time and collation was required to respond to the request in which there was no public interest, the information provided was for the benefit of the requester personally. The $500 charge was reduced significantly from the time spent collating the information by staff.

3. Complaints to the Office of the Ombudsman

If a requester is not satisfied with how their request has been dealt with, the person has the right to seek an investigation by the Ombudsman under section 27(3) of LGOIMA. All requesters are advised of this right at the time Council’s responds to their request.

The Ombudsman’s investigators are encouraging early resolution of a complaint through informal engagement and to avoid full-scale investigations.

The Ombudsman publishes data of LGOIMA complaints received and completed every six months, which can be found on the Ombudsman’s website. At the time of writing the data for 1 January 2023 to 30 June 2023 had not been published.

Two of Council’s responses to official information requests in the past financial year are currently being investigated by the Ombudsman.

The first relates to a request for information related to Council’s approach to environmental monitoring. Council refused the request on the basis it was vexatious and frivolous.

The second relates to Council’s decision to withhold information about the amount paid to settle personal grievances. Council decided to withhold details on the amounts paid on the basis that these were confidential.

Both investigations remain open. Council has cooperated with the Office of the Ombudsman to date including providing all information requested.

4. Considerations

4.1 Risks and Mitigations

There were no risks identified during the period.

4.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

4.3 Implications for Māori

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

4.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision [relates to internal Council matters only].

4.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

5. Next Steps

Council has performed well in responding to LGOIMA requests in the 2022/23 year and will continue to provide and maintain these high standards of service for the upcoming financial year.

Ongoing training and education in this area continues be provided by the Legal Team in addition to support and advice on more complex LGOIMA requests.

Attachments

Attachment 1 - 2022/2023 LGOIMA Request List - Names Removed ⇩



Report To:	Risk and Assurance Committee
Meeting Date:	5 October 2023
Report Writer:	Aaron Huggins, Principal Internal Auditor
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To provide an update on the internal audit programme.

Internal Audit Annual Report 2022/23 and Status Update

Executive Summary

This report provides an update on the status of internal audit activities as at 30 June 2023 and includes:

· The status of internal audit reviews in the current year;

· The status of follow up of internal audit recommendations and management actions to 30 June 2023.

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Internal Audit Annual Report 2022/23 and Status Update.

1. Introduction

This report provides the annual update on internal audit activity undertaken by internal audit staff and external assurance specialists as part of Bay of Plenty Regional Council’s co-sourced internal audit approach. It includes:

· The status of internal audit reviews in the current year;

· The status of follow up of internal audit recommendations and management actions to 30 June 2023;

1.1 Alignment with Strategic Framework

The Way We Work

We continually seek opportunities to innovate and improve.

2. Internal Audit Work Plan 2022/23 Status

Based on the Internal Audit Work Plan 2022/23 the following table summarises the status of internal audit reviews for 2022/23.

Review	Field work	GM Sponsor	Status	Status of Internal Audit
Review	Field work	GM Sponsor	Status	Planning /Scope	Fieldwork	Draft Report	Mgmt Actions	Final Report
CDEM Administering Authority	BOPRC	Regulatory Services	In Progress	Complete	In progress (50%)
Compliance process	BOPRC	Regulatory Services	Complete	Complete	Complete	Complete	Complete	Complete
Focus Catchments	BOPRC	Integrated Catchments	Deferred to FY23/24	Complete	Deferred to FY23/24	Deferred to FY23/24	Deferred to FY23/24	Deferred to FY23/24
Payroll	BOPRC	People & Leadership	Complete	Complete	Complete	Complete	Complete	Complete
Protected Disclosures (Whistleblower)	BOPRC	People & Leadership	Complete	Complete	Complete	Complete	Complete	Complete
Rates process review	BOPRC	Corporate	In Progress	Complete	In progress (75%)
Climate change	BOPRC	Integrated Catchments	Complete	Complete	Complete	Complete	Complete	Complete

As previously noted, the Focus Catchments audit has been deferred to FY23/24; this is to allow for more data to be assimilated to incorporate effectiveness trends into the review.

The remaining two audits (CDEM Administering Authority, Rates process review) are nearing completion.

Internal audit continues to provide internal assurance and advice to BOPRC teams as required.

3. Internal Audit Follow Up

3.1 Management Actions

Internal Audit has reviewed all open management actions as part of the follow up work in the 2022/23 Work Plan.

The following graph highlights the progress made within BOPRC to address open audit actions throughout the 2022/23 financial year:

Figure 1 Open management actions (1 July 2022 vs 30 June 2023)

The total of actions open as at 30 June 2023 is 71, the majority of these relate to ICT Security (20), RPMP (13), Project Management (7), and BCP (6).

We note 4 Compliance, 3 Project Management, and 1 Payroll actions were closed within the period, soon after these audits were completed.

A summary of overdue open management actions is presented in a separate report (‘Completed Internal Audit Reviews & Overdue Actions Update’).

3.2 Improvement Actions

At the start of the year (1 July 2022) there were 21 open improvement actions (1 Health & Safety, 14 Risk Management, and 6 Lab Benefits Realisation). This reduced to 15 at the end of the year (12 Risk Management, and 3 Lab Benefits Realisation).

The following graph highlights the progress made within BOPRC to address open improvement opportunity actions throughout the 2022/23 financial year:

Figure 2 Open improvement actions (1 July 2022 vs 30 June 2023)

4. Considerations

4.1 Risks and Mitigations

There are no significant risks associated with this matter/subject/project/initiative.

4.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

4.3 Implications for Māori

No implications identified – matters are of a procedural nature only.

4.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision [relates to internal Council matters only].

4.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

5. Next Steps

To note the Internal Audit Annual Report 2022/23 and Status Update.