Agenda of Risk and Assurance Committee - Wednesday, 25 September 2024

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 25 September 2024

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 - 5 June 2024 2

8. Reports

8.1 Chairperson's Report 2

Attachment 1 - Appendix 1 - Risk and Assurance Work Programme Nov 2024 - Jun 2025 2

Attachment 2 - Appendix 2 - Risk and Assurance Completed Work Programme March 2023 to June 2024 2

8.2 Progress update on the Draft Annual Report for the year ended 30 June 2024 2

Attachment 1 - Draft Annual Report 2023/24 (Part 1) 2

Attachment 2 - Draft Annual Report 2023/24 (Part 2) 2

8.3 Chairman's Discretionary Fund 2023/24 2

Attachment 1 - Te Arawa Lakes Trust Proposal 2

8.4 Local Government Official Information & Meetings Act 1987 - Annual Report 2023/24 2

Attachment 1 - LGOIMA Request List 2023-24 - Council Report 2

8.5 Internal Audit Annual Report 2023/24 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
9.1	Public Excluded Risk and Assurance Committee Minutes - 5 June 2024	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
9.2	Hawke's Bay Cyclone Gabrielle Review	Withholding the information is necessary to avoid prejudice to measures that prevent or mitigate material loss to members of the public.	48(1)(a)(i) Section 7 (2)(e).	To remain in public excluded.
9.3	Completed Internal Audit Reviews	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.
9.4	Legal Services - Annual Report 2023/24	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	Legislative Compliance - Annual Report 2023/24	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.
9.6	Key Risk Register - June 2024	Withholding the information is necessary to enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities.	48(1)(a)(i) Section 7 (2)(h).	On the Chief Executive's approval.
9.7	Key Risk Deep Dive Report - Digital and Information Management	Withholding the information is necessary to avoid prejudice to measures that prevent or mitigate material loss to members of the public; 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)(e); 48(1)(a)(i) Section 7 (2)(j).	To remain in public excluded.

Minutes to be Confirmed

9.1 Public Excluded Risk and Assurance Committee Minutes - 5 June 2024

Presentations

9.2 Hawke's Bay Cyclone Gabrielle Review

Reports

9.3 Completed Internal Audit Reviews

Attachment 1 - Procurement Interanl Audit Report - Executive Summary

Attachment 2 - Freshwater Management Key Risk Mitigations Internal Audit Report - Executive Summary

9.4 Legal Services - Annual Report 2023/24

9.5 Legislative Compliance - Annual Report 2023/24

9.6 Key Risk Register - June 2024

Attachment 1 - Key Risk Register June 2024

9.7 Key Risk Deep Dive Report - Digital and Information Management

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

5 June 2024

Risk and Assurance Committee

Open Minutes

Commencing: Wednesday 5 June 2024, 9.30 am

Venue: Council Chambers, Regional House, 1 Elizabeth Street, Tauranga and via Zoom (Audio Visual Meeting)

Chairperson: Cr Stuart Crosby

Members: Cr Ron Scott

Cr Andrew von Dadelszen

Cr Te Taru White (via Zoom)

Cr Kevin Winters

Chairman Doug Leeder (Ex Officio)

In Attendance: Councillors: Cr Jane Nees (via Zoom)

Staff: Fiona McTavish – Chief Executive; Mat Taylor – General Manager, Corporate; Chris Ingle – General Manager, Integrated Catchments; Kumaren Perumal – Chief Financial Officer; Nolene Naude – Financial Accounting Team Lead (via Zoom); Mark Le Comte – Principal Advisor, Finance; Aaron Huggins – Principal Internal Auditor; Steven Slack – Risk & Assurance Manager; Annabel Taylor – Manager, Special Projects; Monique Brooks - Legal and Commercial Manager; Jenny Teeuwen – Committee Advisor

External: Warren Goslett - Audit New Zealand

Apologies: Bruce Robertson (Independent Member)

1. Chairperson’s Opening Statement

The Chairperson Stuart Crosby declared the meeting open and reminded those present 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 and Assurance Committee Meeting – 5 June 2024 - YouTube

2. Apologies

Resolved

That the Risk and Assurance Committee:

1 Accepts the apology from Bruce Robertson tendered at the meeting.

Scott/Winters

CARRIED

3. Declaration of Conflicts of Interest

None declared.

4. Minutes

Minutes to be Confirmed

4.1

Risk and Assurance Committee Minutes - 6 March 2024

Resolved

That the Risk and Assurance Committee:

1 Confirms the Risk and Assurance Committee Minutes - 6 March 2024 as a true and correct record.

Scott/von Dadelszen

CARRIED

5. Reports

5.1

Chairperson's Report

Presented by: Mat Taylor – General Manager, Corporate

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Chairperson's Report.

Leeder/Winters

CARRIED

5.2

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

Presented by: Kumaren Perumal – Chief Financial Officer

Nolene Naude – Financial Accounting Team Lead (via Zoom)

Warren Goslett – Audit New Zealand

Aaron Huggins – Principal Internal Auditor

Key Points

· The report set out the findings and recommendations arising from Audit New Zealand’s (Audit NZ) final audit of Bay of Plenty Regional Council (BOPRC) for the year ending 30 June 2023.

· There were seven recommendations prioritised as open and necessary, three new recommendations categorised as necessary, and nine previous recommendations of which five were closed in 2023 and four remained open.

· There were no recommendations prioritised as urgent.

9.36am – Cr Nees entered the meeting (via Zoom)

In Response to Questions

· The net revaluation increase for rivers and drainage was a combination of the existing asset base plus the cost to replace the existing asset base. The increase was one of the components factored in when looking at insurance premiums, along with data integrity and the risks associated with maintaining those assets.

· The procurement policy was currently under review. There were rules as well as guidelines around procurement. The guidelines were about best practice and helping managers with better ways of doing procurement, while the rules covered factors such as seeking tenders and financial delegation.

· The impact of flooding events would be discussed in the public excluded section of this meeting as part of the Key Risk Register and Update and/or Flood Implications Work Programme items.

Resolved

That the Risk and Assurance Committee:

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

von Dadelszen/Scott

CARRIED

5.3

Audit New Zealand Report on the audit of the Long Term Plan 2024 - 2034 Consultation Document

Presented by: Kumaren Perumal – Chief Financial Officer

Nolene Naude – Financial Accounting Team Lead (via Zoom)

Warren Goslett – Audit New Zealand

Key Points

· The report outlined the scope of the audit review undertaken on BOPRC’s Long Term Plan 2024-2034 (LTP) consultation document and supporting documents, plans and processes.

· Two key assumptions had been highlighted by Audit NZ as challenging or important to emphasise – delivery on the capital programme, and climate change.

· Audit NZ were currently on site to carry out the final audit of BOPRCs LTP, taking into consideration the outcomes of the LTP deliberations meeting on 28 May 2024. An audit opinion was expected to be issued at the Council meeting scheduled for 26 June 2024.

Key Points - Members

· Overall satisfaction with the consultation document was expressed – it was very well done.

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Audit New Zealand Report on the audit of the Long Term Plan 2024 - 2034 Consultation Document.

von Dadelszen/Scott

CARRIED

5.4

Rates Setting for 2024/25 Financial Year - Legal Compliance

Presented by: Kumaren Perumal – Chief Financial Officer

Mark Le Comte – Principal Advisor, Finance

Key Points

· The report outlined the process to ensure that BOPRC’s rates setting recommendations were legally compliant for the 2024/25 financial year.

In Response to Questions

· The focus of the legal advice was to look at BOPRC’s mechanisms for setting the rates and how they complied with the requirements of the Local Government Act 2002 and the Local Government (Rating) Act 2002.

· The scope of the legal review also included ensuring that the rates outlined in the funding impact statement were in accordance with the parameters contained within the revenue and financing policy, and took into account any recalibration of rating bands and thresholds.

· The amount of funding for flood protection projects signalled through the central government’s recent budget had not yet been confirmed. It was understood that the information around the specifics of the funding was imminent.

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Rates Setting for 2024/25 Financial Year - Legal Compliance.

2 Notes that an external legal review of the Rates Setting process and draft Rates Resolution is in progress.

Crosby/Leeder

CARRIED

5.5

Internal Audit Work Plan 2024/25 to 2026/27

Presented by: Aaron Huggins – Principal Internal Auditor

Key Points

· The Internal Audit Work Programme put forward covered the next three financial years.

· The programme was prepared via review of the BOPRC Key Risk Register, consideration of discussions during Risk and Assurance Committee meetings, and formal discussions with BOPRC’s Leadership Team and appropriate key managers.

· The three year programme had been endorsed by the Leadership Team.

In Response to Questions

· Staff would seek feedback from Councillors on the strategic framework implementation review, as this had been a point of conversations during the LTP process.

· Asset management planning having an ‘A’ (red) risk ranking indicated how important the subject was to council; it was not an indication of current issues in this area. The risk ranking was explained in Attachment 1 of this item – page 81 of the agenda.

· BOPRC had an extensive terms and conditions document in place for the internal audit service being provided to Ōpōtiki District Council (ODC). The service provided was purely advisory and was not expected to incur any liability risk to BOPRC.

· The internal audit resource was targeted in terms of criticality. Some internal audits were required cyclically for good organisation hygiene e.g. sensitive expenditure or asset management planning, while others e.g. gravel management, could be done less often.

· There was currently nothing critically important that had been omitted/excluded from the internal audit programme.

· The Holidays Act audit was scheduled for year two. This had been scheduled as a hygiene check and not because there was an issue in this space.

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Internal Audit Work Plan 2024/25 to 2026/27.

2 Approves the Internal Audit Work Plan 2024/25, 2025/26, 2026/27, including the detailed work plan for 2024/25.

Scott/Winters

CARRIED

5.6

Internal Audit Status Update

Presented by: Aaron Huggins – Principal Internal Auditor

Resolved

That the Risk and Assurance Committee:

1 Receives the report, Internal Audit Status Update.

von Dadelszen/Crosby

CARRIED

6. 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
9.1	Public Excluded Risk and Assurance Committee Minutes - 6 March 2024	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
9.2	Completed Internal Audit Reviews	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	Key Risks Workshop 2024 - Update	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.
9.4	Key Risk Register - March 2024	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.
9.5	Update on Flood Implications Work Programme	Withholding the information is necessary to maintain legal professional privilege.	48(1)(a)(i) Section 7 (2)(g).	On the Chief Executive's approval.

Winters/Scott

CARRIED

10.12am – the meeting adjourned.

10.32am – the meeting reconvened In the Public Excluded session.

11.00am – the meeting closed.

Confirmed

Cr Stuart Crosby

Chairperson, Risk and Assurance Committee



Report To:	Risk and Assurance Committee
Meeting Date:	25 September 2024
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 2024/25. This Work Programme sets out the planned and scheduled reporting to the Risk and Assurance Committee.

The attachment 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 for the period March 2023 – June 2024.

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.

Attachments

Attachment 1 - Appendix 1 - Risk and Assurance Work Programme Nov 2024 - Jun 2025 ⇩

Attachment 2 - Appendix 2 - Risk and Assurance Completed Work Programme March 2023 to June 2024 ⇩



Report To:	Risk and Assurance Committee
Meeting Date:	25 September 2024
Report Writer:	Nolene Naude, Financial Accounting Team Lead; AJ Prinsloo, Finance Manager 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 2024

Progress update on the Draft Annual Report for the year ended 30 June 2024

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 2024 (AR 2023/24).

The Draft AR 2023/24 contains the draft financial and non-financial performance results of Council (as the parent reporting entity)

The consolidated financial statements for the Council Group which includes the wholly owned subsidiaries Quayside Holdings Limited (QHL) and the Toi Moana Trust (TMT) is still being finalised by Council staff.

Audit New Zealand (Audit NZ) and Council staff continue to work closely together to complete the AR 2024 as scheduled. At the time of this report, the final audit of AR 2023/24 is approximately 15% complete. Verbal clearance is expected from Audit NZ on 15 October, with the AR 2023/24 expected to be recommended to Council for adoption on 23 October 2024. These dates are consistent with the Audit Plan presented to the Committee in June 2024.

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Progress update on the Draft Annual Report for the year ended 30 June 2024.

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 July 2024. Progress against the Audit Plan presented to this committee in March 2024 is shown in the table below.

Date	Description	Progress
8 July 2024	First interim audit in progress	Completed on time.
9 Sep 2024	Final audit commences	In progress. Some elements commenced early.
15 Oct 2024	Verbal audit clearance	On track.
23 Oct 2024	Audit opinion issued	On track.
22 Nov 2024	Final detailed Report to Council issued	On track.

Areas that require completion in the Draft AR 2023/24 are outlined below:

· Put Option valuation

· Rates receivable

· Fixed assets

· Taxation

· Valuation and accounting of CCO’s

· Consolidation and group related disclosures

· Formatting and quality reviews

The specific audit processes in relation to the Put Option valuation methodology have been discussed and agreed with Audit NZ. One Territorial Authority rates receivable reconciliation is outstanding in relation to the historic rates they collected from the ratepayers and the amount still to be collected as at 30 June 2024.

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 2024 have been adopted. The Finance team are in the process of completing the consolidation of the wholly owned subsidiaries for the Bay of Plenty Regional Council Group results.

1.1 Legislative Framework

The AR 2023/24 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 Way We Work

We deliver value to our ratepayers and our customers.

The Draft AR 2023/24 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 2023/24. As a result, the AR 2023/24 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 2023/24 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.

2.2 Climate Change

Climate Change is identified as a strategic challenge facing the Bay of Plenty Region. The Draft AR 2023/24 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 2023/24 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 2023/24 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 2024/25 and be incorporated into the 2025/26 Annual Plan process.

3. Next Steps

The external audit of the Bay of Plenty Regional Council for the year ended 30 June 2024 is in progress and staff anticipate that Council will receive verbal audit clearance from Audit NZ as scheduled on 15 October 2024. Final changes resulting from audit process and minor editorial and rounding corrections will be incorporated into the final AR 2023/24 which will be recommended to Council for adoption on 23 October 2024.

Attachments

Attachment 1 - Draft Annual Report 2023/24 (Part 1) ⇩

Attachment 2 - Draft Annual Report 2023/24 (Part 2) ⇩

Risk and Assurance Committee 25 September 2024

PDF Creator



Report To:	Risk and Assurance Committee
Meeting Date:	25 September 2024
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 2023/24

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 2023/24 financial year, one request totalling $10,000 was accepted for Te Arawa Lakes Trust

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Chairman's Discretionary Fund 2023/24.

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 2021 – 2031.

2. 2023/24 Chairman’s Discretionary Fund Activity

	Requests Accepted	Amount
1	Te Arawa Lakes Trust	$10,000

2.1 Te Arawa Lakes Trust

Funding contribution towards taonga to be presented to the Unsung Heroes at the Te Arawa 100 Year Centennial Ball.

Te Arawa Lakes Trust is a legacy iwi-entity, established to represent the interests of Te Arawa hapū and whānau in relation to the Te Arawa Lakes Settlement 2006 – interlocking their unique intergenerational relationship with their 14 freshwater lakes and taonga species like kōura, tuna, kākahi, inanga, kōaro and morihana.

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

n/a

3.4 Community Engagement

This item contributes to the ‘A Vibrant Region’ Community Outcome in the Council’s Long Term Plan 2021 – 2031.

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.

Attachments

Attachment 1 - Te Arawa Lakes Trust Proposal ⇩



Report To:	Risk and Assurance Committee
Meeting Date:	25 September 2024
Report Writer:	Monique Brooks, Legal and Commercial Manager
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	Report on the requests made under the Local Government Official Information and Meetings Act 1987 from 1 July 2023 to 30 June 2024

Local Government Official Information & Meetings Act 1987 - Annual Report 2023/24

Executive Summary

This report provides Council with information relating to the Local Government Official Information and Meetings Act 1987 from 1 July 2023 to 30 June 2024.

There were 103 requests for information during this period.

Council has maintained high standards of service in response with no breaches of legislative timeframes.

The Office of the Ombudsman opened one investigation in relation to how Council responded to an information request during this period that was closed quickly.

Council did not charge any requesters during this reporting period.

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Local Government Official Information & Meetings Act 1987 - Annual Report 2023/24.

1. Introduction

1.1 Legislative Framework

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.

Requesters are entitled to complain to the Office of the Ombudsman where they do not agree with decisions made by Council in respect of information requests. The Ombudsman also investigates complaints regarding Council’s conduct in managing customer complaints generally.

1.2 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 103 requests for official information during the 2023/24 financial year. Of these, 4 were withdrawn, and 2 were transferred by other organisations to Council. A list of these requests is attached to this report. This is slightly down consistent on previous years. Note these figures do not account for simple requests for information that staff respond to on a day-to-day basis but represent substantive requests made to Council.

Table 1 – Number of requests

Financial Year	Number Of Requests
2023/34	103
2022/23	118
2021/22	121
2020/21	136
2019/20	75
2018/19	132

Table 2 – Requests by Group

	People and Leadership	Corporate	Integrated Catchments	Regulatory Services	Strategy and Science
Number of LGOIMA	2	26	16	54	5
Percentage (approx.)	2%	25%	16%	52%	5%

2.2 Breaches of Timeframes

Council has maintained high standards of service in responding to requests for official information with no breaches of legislative timeframes noted during this period.

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 has not charged any requesters during this reporting period.

3. Engagement with 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 is also responsible for investigating any complaints as to how Council has handled a customer complaint.

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 2024 to 30 June 2024 had not been published but an advance copy has been seen by staff. We are aware that Ombudsman received two complaints in relation to Council’s response that Council was not notified as these complaints were closed without reaching formal investigation.

In the 2023/24 Council received notification of three inquiries being made by the Ombudsman in respect of Council’s conduct. One of these related to the manner in Council responded to an information request and two were in respect of the way Council managed a customer’s complaint. Of these three, the Ombudsman opened an investigation in relation to two matters.

The first investigation (in respect of Council’s response to an information request) was closed swiftly following an explanation, and additional information provided by Council, to the Ombudsman.

The second investigation as to how Council handled a customer’s complaint and remains open. Staff have continued to assist the Ombudsman in their investigation.

4. Considerations

4.1 Risks and Mitigations

The key risk in relation to Council’s compliance with the LGOIMA is reputational risk and a perception is created that Council is not transparent and accountable. This is mitigated by fostering a culture of openness and transparency which is mirrored through compliance with the LGOIMA.

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 do not have specific implications for Māori.

4.4 Community Engagement

Engagement with the community is not required as the information provided relates to procedural 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 2023 / 2024 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 (including now as part of induction) continues be provided by the Legal Team in addition to support and advice on more complex LGOIMA requests.

Council continues to consider opportunities for proactively releasing information including responses to LGOIMA requests as considered best practice by the Ombudsman.

Attachments

Attachment 1 - LGOIMA Request List 2023-24 - Council Report ⇩



Report To:	Risk and Assurance Committee
Meeting Date:	25 September 2024
Report Writer:	Steven Slack, Risk and Assurance Manager
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To provide an update on the internal audit programme.

Internal Audit Annual Report 2023/24 and Status Update

Executive Summary

This report provides an update on the status of internal audit activities as at 30 June 2024 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 2024.

Recommendations

That the Risk and Assurance Committee:

1 Receives the report, Internal Audit Annual Report 2023/24 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 2024;

1.1 Alignment with Strategic Framework

The Way We Work

We continually seek opportunities to innovate and improve.

2. Internal Audit Work Plan 2023/24

Based on the Internal Audit Work Plan 2023/24 the following table summarises the status of internal audit reviews for 2023/24.

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	Complete	Complete	Complete	Complete	Complete	Complete
External partner project management	BOPRC	Chief Executive	Deferred to 2024/25
Focus Catchments	BOPRC	Integrated Catchments	In Progress	Complete	In Progress
Forecasting & budgeting	BOPRC	Corporate	Deferred to 2024/25
Freshwater management key risk mitigations	BOPRC	Strategy & Science	Complete	Complete	Complete	Complete	Complete	Complete
Health & Safety	External	Corporate	In Progress	Complete	Complete	In Progress
Procurement	BOPRC	Corporate	Complete	Complete	Complete	Complete	Complete	Complete
Science management framework	BOPRC	Strategy & Science	In Progress	Complete	Complete	In Progress
Sensitive expenditure	BOPRC	Corporate	Complete	Complete	Complete	Complete	Complete	Complete

The Health and Safety and Science Management audit fieldwork has been completed, with reporting currently being finalised for the next RAC meeting.

Fieldwork with respect to Focus Catchments is currently underway and we anticipate this will also be reported at the next RAC meeting.

The Forecasting & Budgeting and External Partner Project Management audits have been deferred to FY24/25; this is due to resource constraints within BOPRC teams due to LTP preparation.

3. Other Assurance Activity

3.1 Ōpōtiki District Council

Over the past year, the BOPRC Risk & Assurance Team have been working with Ōpōtiki District Council (ODC) to prepare their Internal Assurance Programme; this was presented to (and endorsed by) their Leadership Team in November 2023 and subsequently ratified by the ODC Risk and Assurance Committee.

The inaugural assurance review (ODC Regulatory Services) was completed during the year and the report presented to ODC Risk and Assurance meeting.

Assurance service provision is offered by BOPRC to enable ODC to establish and conduct their own Assurance Programme, within ODC’s fixed budgetary constraints.

3.2 BOPRC EDRMS replacement

BOPRC is currently undertaking a project to replace its current Electronic Data Records Management System (EDRMS) from ‘Objective’ to Microsoft ‘Sharepoint’. Risk and Assurance Team members are providing risk management support to the Project Manager and leading the legislative compliance workstream for the project.

3.3 Continuous Improvement

The philosophy of internal audit within BOPRC is to provide teams assistance to resolve audit actions.

Over the past year, the BOPRC Risk & Assurance Team have primarily been involved in assisting with the closing out the actions relating to the Policy Framework and Protected Disclosures audits.

This involved refreshing the policy information available to staff in a more user-friendly environment and developing an online training solution with training modules for staff in key policy areas.

The online training platform includes:

Examples of the training courses developed include:

4. Internal Audit Follow Up

4.1 Management Actions

Internal Audit has reviewed all open management actions as part of the follow up work in the 2023/24 Work Plan.

The following highlights the progress made within BOPRC to address open audit actions throughout the 2023/24 financial year:

Figure 1 Open management actions (1 July 2023 vs 30 June 2024)

At the start of the year there were 68 open actions and of these 42 have been closed during the year.

The remaining 26 actions relate to mainly three areas, ICT Security (15), Regional Pest Management Plan (4) and Business Continuity Planning (6).

Fifteen ICT security actions remain open, while these actions have been partially implemented through temporary controls being put in place or actioned with respect to the high-risk core systems, the action remains open whilst the Digital Team assess whether there is feasibility to implement either an enhanced solution or determine whether the action is required for non-core systems.

A project is currently underway to refresh and enhance the Business Continuity Planning framework.

4.2 Improvement Actions

Internal Audit has reviewed all open improvement actions as part of the follow up work in the 2023/24 Work Plan.

The following highlights the progress made within BOPRC to address open audit actions throughout the 2023/24 financial year:

Figure 2 Open improvement actions (1 July 2023 vs 30 June 2024)

At the start of the year there were 18 open actions and of these 11 have been closed during the year.

5. Considerations

5.1 Risks and Mitigations

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

5.2 Climate Change

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

5.3 Implications for Māori

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

5.4 Community Engagement

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

5.5 Financial Implications

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

6. Next Steps

To note the Internal Audit Annual Report 2023/24 and Status Update.