Risk and Assurance Committee Agenda

NOTICE IS GIVEN that the next meeting of the Risk and Assurance Committee will be held in Council Chambers, Regional House, 1 Elizabeth Street, Tauranga and via Zoom (Audio Visual Meeting) on:

Thursday 14 April 2022 COMMENCING AT 09:30 am

This meeting will be livestreamed and recorded.

The Public section of this meeting will be livestreamed and recorded and uploaded to Bay of Plenty Regional Council’s website.  Further details on this can be found after the Terms of Reference within the Agenda. Bay of Plenty Regional Council - YouTube

 

Fiona McTavish

Chief Executive, Bay of Plenty Regional Council Toi Moana

7 April 2022

 


 

Risk and Assurance Committee

Membership

Chairperson

Cr David Love

Deputy Chairperson

Bruce Robertson (Independent)

Members

Cr Bill Clark

Cr Stuart Crosby

Cr Andrew von Dadelszen

Cr Te Taru White

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.

 


Bay of Plenty Regional Council - Toi Moana

Governance Commitment

mō te taiao, mō ngā tāngata - our environment and our people go hand-in-hand.

 

 

We provide excellent governance when, individually and collectively, we:

·        Trust and respect each other

·        Stay strategic and focused

·        Are courageous and challenge the status quo in all we do

·        Listen to our stakeholders and value their input

·        Listen to each other to understand various perspectives

·        Act as a team who can challenge, change and add value

·        Continually evaluate what we do

 

 

TREAD LIGHTLY, THINK DEEPLY,
ACT WISELY, SPEAK KINDLY.


Risk and Assurance Committee                                                                                        14 April 2022

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 - 2 December 2021              1

8.       Reports

Information Only

8.1      Audit New Zealand Report on the audit of the Bay of Plenty Regional Council Toi Moana for the year ended 30 June 2021                           1

Attachment 1 - Bay of Plenty Regional Council - Report to the Council - 30 June 2021 - Final                                                                                                                                      1

8.2      Chairperson's Report                                                                               1

Attachment 1 - Risk and Assurance Work Programme for 2022                                   1

Attachment 2 - Risk and Assurance Completed Work Programme for March to December 2021                                                                                                                     1

8.3      Internal Audit Update                                                                              1

Decisions Required

8.4      Draft Terms of Reference - Efficiency and Effectiveness Reviews     1

Attachment 1 - Draft Terms of Reference                                                                         1

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 - 2 December 2021

As noted in the relevant Minutes.

As noted in the relevant Minutes.

To remain in public excluded.

9.2

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.

 

Minutes to be Confirmed

9.1      Public Excluded Risk and Assurance Committee Minutes - 2 December 2021

Information Only

9.2      Key Risk Register

Attachment 1 - Key Risk Register - December 2021

Attachment 2 - KRR - Heat Map December 2021

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

2 December 2021

 

Risk and Assurance Committee

Open Minutes

Commencing:             Thursday 2 December 2021, 09:30 am

Venue:                         via Zoom (Audio Visual Meeting)

Chairperson:               Cr David Love

Deputy Chairperson:  Bruce Robertson

Members:                    Cr Andrew von Dadelszen

Cr Stuart Crosby

Cr Bill Clark

Cr Te Taru White

Chairman Doug Leeder (Ex Officio)

 

In Attendance:            Councillors: Norm Bruning, Paula Thompson, Jane Nees, Matemoana McDonald, Lyall Thurston, Kevin Winters

Staff: Fiona McTavish – Chief Executive; Mat Taylor – General Manager Corporate; Sarah Omundsen - General Manager   Regulatory Services; Chris Ingle – General Manager  Integrated Catchments; Steven Slack – Risk & Assurance Manager; Aaron Huggins – Principal Internal Auditor; Merinda Pansegrouw – Committee Advisor

 

 

Declaration of Public Recording

 

Committee members and the public were reminded that the public section of the meeting was being recorded and would be made available on the Bay of Plenty Regional Council website following the meeting and archived for a period of three years as noted on page 4 of the agenda.

Recording of Meeting:                BOPRC Risk and Assurance Committee - 2 December 2021 - YouTube

 

1.     Declaration of Conflicts of Interest

None.

 

2.     Minutes

Minutes to be Confirmed

2.1

Risk and Assurance Committee Minutes - 21 October 2021

 

Resolved

That the Risk and Assurance Committee:

1        Confirms the Risk and Assurance Committee Minutes - 21 October 2021 as a true and correct record.

von Dadelszen/White

CARRIED

 

3.     Reports

Information Only

3.1

Committee Chairperson's Report

General Manager, Corporate Mat Taylor presented the report, updating members on the Risk and Assurance Committee’s activities during 2021 and the updated Work Programme for 2022.

 

Items for Staff Follow Up:

·    To include the following item on the Risk and Assurance Committee Work Programme for 2022:

Report to Risk and Assurance Committee on proposed draft terms of reference for a possible future report to Council reviewing the efficiency and effectiveness of Bay of Plenty Regional Council from a financial perspective.

·    To provide the Independent Member of the Risk and Assurance Committee an opportunity to comment on the Quayside Statement of Investment Policy and Objectives (SIPO) review.

 

Resolved

That the Risk and Assurance Committee:

1        Receives the report, Committee Chairperson's Report.

White/Crosby

CARRIED

 

3.2

Internal Audit status update

Presented by Principal Internal Auditor Aaron Huggins.

Key Points:

·    Scoping for reviews still to be undertaken was nearing completion

·    The ICT Security Review (from the 2020/21 Internal Audit Plan) was scheduled to be presented to the Committee next year.

·    The remaining open Health & Safety improvement action related to a monitoring and checking process which would be implemented once the critical risk project roll-out had been completed.

 

Item for Staff Follow Up:

·    Future reports to identify the percentage of progress required for items to be completed.

 

Resolved

That the Risk and Assurance Committee:

1        Receives the report, Internal Audit status update.

Crosby/Clark

CARRIED

 

3.3

Key Risk Register

Presented by Risk & Assurance Manager Steven Slack.

Key Points:

·    Following recommendations by the Risk and Assurance Committee at its Workshop held in October 2021, the following key changes to the Risk Register and the ways of reporting risks had been incorporated:

o Risk velocity - identifying risks that could escalate quickly

o Opportunities - identifying positive impacts that risks and issues could lead to

o Revolving emerging and operational risks - to keep risks current and fresh.

Key Points - Members:

·    Following the recent national transition from Alert Levels to the COVID-19 Protection Framework (Traffic Light System), commended Toi Moana Chief Executive for the development of clear guidelines for the organisation

·    Acknowledged that the velocity of mitigating actions and controls, i.e. the speed at which actions would take effect to reduce the impacts of a risk, was directly related to the frequency of monitoring

·    In the current dynamic Covid-19 environment, Toi Moana’s essential services teams were continuously reviewing their business continuity plans to adapt as and when required.

 

 

Resolved

That the Risk and Assurance Committee:

1        Receives the report, Key Risk Register

White/Crosby

CARRIED

 

4.     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:

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

4.1

Public Excluded Risk and Assurance Committee Minutes - 21 October 2021

As noted in the relevant Minutes.

As noted in the relevant Minutes.

To remain in public excluded.

von Dadelszen/Crosby

CARRIED

 

 

 

10:27 am – the meeting closed.

 

 

Confirmed                                                                                                                                          

                                                                                                                                        Cr David Love

Chairperson, Risk and Assurance Committee


 

 

 

 

Report To:

Risk and Assurance Committee

Meeting Date:

14 April 2022

Report Writer:

Nolene Naude, Financial Accounting Team Lead

Report Authoriser:

Mat Taylor, General Manager, Corporate

Purpose:

The Risk and Assurance Committee to receive the Audit New Zealand Report on the audit of the Bay of Plenty Regional Council for the year ending 30 June 2021 (Attachment 1)

 

 

Audit New Zealand Report on the audit of the Bay of Plenty Regional Council for the year ended 30 June 2021

 

Executive Summary

The Audit New Zealand Report on the audit of the Bay of Plenty Regional Council for the year ending 30 June 2021 (the report) outlines audit findings, recommendations and prioritises them as urgent, necessary or beneficial. There are a total of nine open recommendations as at 30 June 2021.

There were no recommendations prioritised as urgent.

There were seven recommendations prioritised as necessary and two prioritised as beneficial.

 

Recommendations

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 2021.

 

1.        Introduction

The report sets out findings arising from the final audit performed over the period September to December 2021.

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

The report includes the results for Council and the Quayside Group. The results for Council are summarised below.

1.1      Alignment with Strategic Framework

 

The Way We Work

We deliver value to our ratepayers and our customers.

The report provides 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 2021, 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 to Council outlines the matters identified during the audit, new recommendations and the status of previous recommendations.

In addition to the above, the report also includes the outcome of matters raised in the Audit Plan.

There were three new necessary recommendations and two beneficial recommendations raised. Detailed information for each recommendation can be found in Attachment 1.

There are eighteen previous recommendations of which fourteen are closed and four open. A s status summary of Audit New Zealand’s recommendations is set out in the following table:

Table 1 Status of Audit New Zealand Recommendations:

Priority

Previous Open Action

New Actions

Closed Actions

Current Open Actions

Beneficial

-

2

-

2

Necessary

18

3

14

7

Urgent

-

-

-

-

Total

18

5

14

9

 

3.        Considerations

3.1      Risks and Mitigations

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

3.2      Climate Change

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

3.3      Implications for Māori

There are no direct implications for Māori arising as a result of 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 final audit for the year ending 30 June 2021. These have been appropriately noted and actions are underway to address the remaining open recommendations.

 

Attachments

Attachment 1 - Bay of Plenty Regional Council - Report to the Council - 30 June 2021 - Final   


Risk and Assurance Committee                                                                                14 April 2022

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Report To:

Risk and Assurance Committee

Meeting Date:

14 April 2022

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 and an updated Risk and Assurance Completed Work Programme.

1.1      Legislative Framework

The matters addressed in this report are of a procedural nature.

1.2      Alignment with Strategic Framework

 

A Healthy Environment

Freshwater for Life

Safe and Resilient Communities

A Vibrant Region

The Way We Work

We continually seek opportunities to innovate and improve.

1.2.1    Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

 

¨ Cultural

 

¨ Social

 

þ Economic

 

 

 

 

2.        Council Performance Monitoring Report – Detailed Briefings for Councillors

The following financial monitoring meeting (detailed financial briefing) was held with Councillors:

Monday, 29 March 2022

 

3.        Risk and Assurance Work Programme

Appendix 1 shows the Risk and Assurance Work Programme for 2022. 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.

4.        Risk and Assurance Completed Work Programme

Appendix 2 shows the Risk and Assurance Completed Work Programme for the period March to December 2021.

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

There are no implications for Māori.

5.4      Community Engagement

The matters addressed in this report are of a procedural nature.

5.5      Financial Implications

This work is being undertaken within the current budget for the Government Activity in Year 1 of the Long Term Plan 2021 - 2031

 

6.        Next Steps

None.

 

Attachments

Attachment 1 - Risk and Assurance Work Programme for 2022

Attachment 2 - Risk and Assurance Completed Work Programme for March to December 2021   


Risk and Assurance Committee                                                                                                14 April 2022

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Risk and Assurance Committee                                                                                                14 April 2022

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Report To:

Risk and Assurance Committee

Meeting Date:

14 April 2022

Report Writer:

Aaron Huggins, Principal Internal Auditor

Report Authoriser:

Mat Taylor, General Manager, Corporate

Purpose:

To provide an update on the internal audit program and the audit plan.

 

 

Internal Audit Update

 

Executive Summary

This report provides an update on the status of internal audit activities as at 31 December 2021 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 31 December 2021.

 

Recommendations

That the Risk and Assurance Committee:

1        Receives the report, Internal Audit Update.

 

1.        Introduction

This report provides the quarterly 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 31 December 2021.

1.1      Alignment with Strategic Framework

 

The Way We Work

We continually seek opportunities to innovate and improve.

 

 

2.        Internal Audit Work Plan 2021/22 Status

Based on the Internal Audit Work Plan 2021/22 the following table summarises the status of internal audit reviews for 2021/22.

Review

Field work

GM Sponsor

Status

Status of Internal Audit

Planning /Scope

Fieldwork

Draft Report

Mgmt Actions

Final Report

Project management

BOPRC

Corporate

In Progress

Complete

In Progress (25%)

 

 

 

Business continuity management

BOPRC

Chief Executive

In Progress

Complete

In Progress (25%)

 

 

 

Pest management plan

BOPRC

Integrated Catchments

In Progress

Complete

In Progress (75%)

 

 

 

Risk management

Co-Source

Corporate

In Progress

Complete

 

 

 

 

Laboratory services – benefits realisation

BOPRC

Regulatory Services

In Progress

Complete

In Progress (50%)

 

 

 

Post-COVID funding readiness

BOPRC

Integrated Catchments

In Progress

In Progress (75%)

 

 

 

 

Compliance process

BOPRC

Regulatory Services

In Progress

Complete

In Progress (25%)

 

 

 

Payroll

BOPRC

People & Leadership

In Progress

In Progress (90%)

 

 

 

 

ICT Security Review (20/21)

BOPRC

Corporate

In Progress

Complete

Complete

Complete

In Progress (75%)

 

The quarter has seen COVID impact operations across BOPRC, with a focus on ensuring focus remains on core activities and essential services.  As such, we have aimed to get as many reviews started as possible, to enable the plan to continue to be progressed by pivoting to other reviews as BOPRC teams become available.  The focus for the Risk and Assurance team has been in supporting other teams, including with health & safety, business continuity planning, covid readiness planning, etc.

It was envisaged that the ICT Security Review (from the 2020/21 Internal Audit Plan) would be presented at this meeting, however the ongoing COVID situation has heavily impacted the Digital Team.  As noted previously, the Digital Team continue to proactively address identified issues where they present risks to the security environment.  The ICT Security Review will be presented at a later Risk & Assurance Committee meeting.

We have submitted a request to our internal audit co-source partner for a short form proposal to carry out the Risk Management review and expect to have this work underway soon.

Internal Audit Follow Up

Internal Audit has reviewed all open management actions as part of the follow up work in the 2021/22 Work Plan.

Management actions

At the start of the quarter (1 October 2021) there were 41 open management actions.

During the quarter six actions were closed and no actions were added. The total of actions open as at 31 December 2021 is 35, the majority of these relate to Policy Framework (ten), and Fraud Risk Assessment (eight).

Figure 1 Open management actions (as at 31 December 2021)

Fraud Risk – Both the Finance and Payroll teams continue to work with an external vendor to implement system changes.

Of the open actions 9 are past their original due date.  The overdue actions relate predominately to Asset Management (four) and Procurement (two).  Workplans are underway in the relevant teams to address these actions during the financial year (resourcing permitting).

Improvement actions

For framework reviews which have identified continuous improvement actions, these actions will be disclosed separately to give assurance to the Risk and Assurance committee that these actions continue to be monitored to ensure BOPRC’s frameworks improve and develop.

At the start of the quarter (1 October 2021) there was 1 open Health & Safety improvement action; this action remains open and refers to the last phase of the critical risk project rollout.

 

3.        Considerations

3.1      Climate Change

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

3.2      Financial Implications

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

 

4.        Next Steps

To note the Internal Audit status update (as at 31 December 2021).

 

 


 

 

 

 

Report To:

Risk and Assurance Committee

Meeting Date:

14 April 2022

Report Writer:

Mark Le Comte, Principal Advisor, Finance and Kumaren Perumal, Chief Financial Officer

Report Authoriser:

Mat Taylor, General Manager, Corporate

Purpose:

To seek feedback on a Draft Terms of Reference for a programme of Efficiency and Effectiveness reviews

 

 

Draft Terms of Reference - Efficiency and Effectiveness Reviews

 

Executive Summary

The Risk and Assurance Committee requested a draft Terms of Reference (TOR) for Efficiency and Effectiveness reviews at its meeting held on 2 December 2021.

This paper provides a brief outline of research, and considerations, and presents a draft TOR for review which includes a set of core principles and a suggested approach.

The draft TOR for feedback is attached.

 

Recommendations

That the Risk and Assurance Committee:

1        Receives the report, Draft Terms of Reference - Efficiency and Effectiveness Reviews;

2        Recommends that the Efficiency and Effectiveness Terms of Reference are referred to the Council to be established following the Triennium elections to be added to the work programme.

 

1.        Introduction

The Risk and Assurance Committee requested a draft Terms of Reference (TOR) for Efficiency and Effectiveness reviews at its meeting held on 2 December 2021.

Council has previously considered cost-effectiveness reviews as required by the Local Government Act (LGA) s17A. These have been high-level reviews focused on the appropriate governance structure for delivery.

Staff will also present recent financial efficiencies identified through the Long Term Plan 2021 – 2031 process, and Annual Plan process, at an upcoming Annual Plan workshop.

1.1      Legislative Framework

The purpose of Councils is to promote the social, economic, environmental, and cultural well-being of communities in the present and for the future. This implies that service delivery should be both efficient and effective.

The LGA s17A requires reviews of the cost-effectiveness of current delivery arrangements. These reviews are focused on a high level review of the delivery options, as specified in LGA S17A(4)

A review under subsection (1) must consider options for the governance, funding, and delivery of infrastructure, services, and regulatory functions, including, but not limited to, the following options:

(a) responsibility for governance, funding, and delivery is exercised by the local authority:

(b) responsibility for governance and funding is exercised by the local authority, and responsibility for delivery is exercised by—

(i) a council-controlled organisation of the local authority; or

(ii) a council-controlled organisation in which the local authority is one of several shareholders; or

(iii) another local authority; or

(iv) another person or agency:

(c) responsibility for governance and funding is delegated to a joint committee or other shared governance arrangement, and responsibility for delivery is exercised by an entity or a person listed in paragraph (b)(i) to (iv).

1.2      Alignment with Strategic Framework

 

A Healthy Environment

 

Freshwater for Life

 

Safe and Resilient Communities

 

A Vibrant Region

 

The Way We Work

We deliver value to our ratepayers and our customers.

Efficiency and effectiveness are core components of delivering value for ratepayers.

1.2.1    Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

 

¨ Cultural

 

¨ Social

 

þ Economic

Low - Positive

 

Efficiency and effectiveness are core components of delivering low-cost services for ratepayers and customers.

 

2.        Introduction

Staff have reviewed the TORs for several Efficiency and Effectiveness review programmes. These have included reviews of local government delivery in New Zealand and Australia, central government reviews, guidance from the Office of the Auditor General and approaches from consultancy firms and academics.

There is a wide range of approaches ranging from broad and simple one page TORs, to detailed project plans, to rolling programme of reviews and reports. While there are several many common features across the different approaches, there is potential to develop an overly rigorous approach at the expense of speed, pragmatism and agility.

Importantly, efficiency and effectiveness should never be viewed as ‘one-off’ events and should be embedded in ongoing management and governance processes. 

3.        Integration with other processes

There are several processes that provide information for, and opportunities that directly contribute to efficiency and effectiveness. These include Long-term and Annual Plans, Annual Reports, Arotake performance reports and detailed financial briefings. In addition, Council produces a wide range of reports including Regulatory Compliance Reports, Science Snapshots, Operational Reports and Resource Policy Reports.

Long-term and Annual Plans are the core budget appropriation and performance planning processes for Council. Amongst the core purposes of the Long-term plan are to:

·      provide integrated decision-making and co-ordination of the resources of the local authority, and

·      provide a basis for accountability of the local authority to the community.

Arguably the most appropriate time to plan for efficiency and effectiveness is through these processes. Long Term Plan 2021-2031 included elements of zero based budgeting for major activities. Setting the plan, and the accountability measures, directly enables performance monitoring including monitoring of efficiency and effectiveness.

Given the wide range of reporting that is already carried out, it is important not to overcomplicate and/or needlessly duplicate information, however, the learnings and improvement opportunities from this reporting needs to flow through to subsequent planning processes.

4.        Draft Terms of Reference

Staff consider that there is a wide range of information available and processes to leverage for improved efficiency and effectiveness. Therefore, we are proposing a relatively simple TOR to ensure that effort is not duplicated, and that work can be scaled as appropriate for the activity area. The draft TOR (attachment 1) includes the following sections.

·      Purpose

·      Principles

·      Definitions

·      Approach

·      Focus Areas

·      Roles and Responsibilities

Staff request feedback on overall approach set out in the draft TOR. If agreed, the Roles and Responsibilities will need to be reviewed based on the Committee Structure for the new Triennium. A section on implementation time/resources needs to be completed, however, this is dependent on the overall feedback on the approach in the draft TOR.

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 not sensitive to the effects of climate change. Staff have also considered the effect of the initiative on greenhouse gas emissions and recommend that there will be no effect at this stage.

5.3      Implications for Māori

There are no implications for Māori over and above the general population.

5.4      Community Engagement

 

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

 

Depending on the detailed approach chosen, there could be a requirement to conduct customer research as an element of planning and reviewing effectiveness.

5.5      Financial Implications

If the recommendation is adopted by Council, will it result in:

-   Unbudgeted work during the current financial year?

-   Unbudgeted work for any of the years remaining in the current Long Term Plan?

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

If the answer is ‘yes’ to either question please select “Budget Implications” in the building block below and liaise with your Management Accountant in order to complete the Financial Impact table.

There are no material unbudgeted financial implications and this fits within the allocated budget at this stage. The proposed approach to reviewing efficiency and effectiveness will require extra up-front investment to deliver any approved detailed reviews and to implement improvements. The proposed approach is intended to focus additional investment to areas which are likely to deliver an overall saving in the medium term

6.        Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

The proposed Terms of Reference will be updated to incorporate any feedback and direction from the Risk and Assurance Committee.

 

Attachments

Attachment 1 - Draft Terms of Reference   


Risk and Assurance Committee                                                                                14 April 2022

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