Audit and Risk Subcommittee

CONFIRMED MINUTES

 

Minutes of an ordinary meeting of the Audit and Risk Subcommittee held in the Edinburgh Room, Municipal Chambers, The Octagon, Dunedin on Tuesday 05 April 2016, commencing at 2.00 pm

 

PRESENT

 

Chairperson

Susie Johnstone

 

Deputy Chairperson

 

 

Members

Hilary Calvert

Janet  Copeland

 

Chris Staynes

Richard Thomson

 

Mayor Dave Cull (ex Officio)

 

 

 

IN ATTENDANCE

Sue Bidrose (Chief Executive Officer), Grant McKenzie (Group Chief Financial Officer), Sandy Graham(Group Manager, Corporate Services), Scott Tobin (Audit Director, Audit NZ), Amanda Nicholls (Audit Manager, Audit NZ) and Phil Sinclair (Principal – Audit and Business Advisory, Crowe Horwath).

 

Governance Support Officer      Wendy  Collard

 

 

 

 

1       Apologies

There were no apologies.

 

2       Confirmation of agenda

 

 

There was discussion on the addition of the Investigation Register Report as it had been excluded from the agenda due to administrative error.

 

 

 

Moved (Chairperson Susie Johnstone/Cr Richard Thomson): that the Subcommittee

 

Confirms the agenda with the addition of the Investigation Register Report, as the information contained needs to be considered in advance of the next meeting because the information would be out of date and that the Subcommittee needs to examine this record at this meeting as part of their routine monitoring of the control and management of risk and need to consider this report at this meeting as the Subcommittee may wish staff to take additional steps before their next meeting;

 

Confirms that the Investigation Register Report would be taken in the confidential part of the meeting under Section 7(2)(a) and Section 7(2)(h) of the Local Government Official Information and Meetings Act 1987.

 

Motion carried (AR/2016/001)

 

 

3       Declarations of interest

Members were reminded of the need to stand aside from decision-making when a conflict arose between their role as an elected representative and any private or other external interest they might have.

 

4       Confirmation of Minutes

4.1    Audit and Risk Subcommittee meeting - 2 February 2016

 

Moved (Cr Hilary Calvert/Cr Chris Staynes): that the Subcommittee

 

Confirms the public part of the minutes of the Audit and Risk Subcommittee meeting held on 2 February 2016 as a correct record.

 

Motion carried (AR/2016/002)

Part A Reports

5       Audit and Risk Subcommittee Work Plan 2015/16

 

 

There was discussion on the updated Audit and Risk Subcommittee work plan and it was agreed that the Top 100 Suppliers and policy review dates and cyclical period for policies would be added to the work plan.

 

 

Moved (Ms Janet  Copeland/Mayor Dave Cull): that the Committee

 

a)     Notes the Audit and Risk Subcommittee Work Plan 2015/16.

Motion carried (AR/2016/003)

 

6       Schedule of Governance/Financial Policies

 

 

There was discussion on the schedule of Governance/Financial Policies.  It was noted that changes had been made to the Conflicts of Interest Policy following feedback from Councillors.                           

 

 

Moved (Chairperson Susie Johnstone/Cr Chris Staynes): that the Subcommittee

 

a)     Notes the Schedule of Governance/Financial Policies

Motion carried (AR/2016/004)

 

 

 

7       Audit Arrangements for the Year Ending 30 June 2016

 

 

A report from the Financial Controller (Gavin Logie) provided a copy of the letter from Audit New Zealand which outlined the audit arrangements for the year ending 30 June 2016 for the Audit and Risk Subcommittee's consideration.

 

The Group Chief Financial Officer (Grant McKenzie) spoke  to the report and advised that the letter from Audit New Zealand noted the arrangements which included business risks/issues and audit response; areas of interest for all Local Government entities and logistics such as timing and fees.

 

The Audit Director, Audit NZ (Scott Tobin) provided an update on the areas that Audit NZ were focusing on which included controls around debt and how Council achieves these targets, capital works and three waters renewal programmes. 

 

 

Moved (Chairperson Susie Johnstone/Cr Chris Staynes): that the Subcommittee

 

a)    Notes the arrangements for the audit of Dunedin City Council for the year ending 30 June 2016.

b)    Recommends to Council that the Mayor be authorised to sign the Audit Arrangement agreement with Audit New Zealand."

Motion carried (AR/2016/005)

 

8       Audit Engagement Letter for the Year Ending 30 June 2016

 

 

A report from the Financial Controller (Gavin Logie) provided a copy of the Audit Engagement Letter from Audit New Zealand for the Audit and Risk Subcommittee's consideration.

 

The Group Chief Financial Officer (Grant McKenzie) spoke to the report and commented that the letter included the terms of the audit engagement, the nature and limitations of the annual audit and the respective responsibilities of Council and the Auditor for the financial statements and performance information.

 

 

Moved (Chairperson Susie Johnstone/Cr Chris Staynes): that the Subcommittee

 

a)     Recommends to Council that the Mayor be authorised to sign the acknowledgement to the terms of the Audit engagement for the year ending 30 June 2016.

Motion carried (AR/2016/006)

 

9       Annual Report Timetable Year Ended 30 June 2016

 

 

A report from the Financial Controller (Gavin Logie) provided a copy of the timetable relating to the preparation and approval of the Dunedin City Council Annual Report for the year ended 30 June 2016 for the Audit and Risk Subcommittee's consideration.

 

 

 

Moved (Chairperson Susie Johnstone/Ms Janet  Copeland): that the Subcommittee

 

a)        Notes the report.

b)        Adopts the timetable with the additional of the two items – valuations and external advice of consolidation issues.

Motion carried (AR/2016/007)

       

10     Items for Consideration by the Chair

 

 

There were no items were identified.

 

     

 

Resolution to exclude the public

Moved (Chairperson Susie Johnstone/Cr Chris Staynes): that the Subcommittee

 

Pursuant to the provisions of the Local Government Official Information and Meetings Act 1987, exclude the public from the following part of the proceedings of this meeting namely:

 

General subject of the matter to be considered

Reasons for passing this resolution in relation to each matter

Ground(s) under section 48(1) for the passing of this resolution

 

Reason for Confidentiality

C1  Audit and Risk Subcommittee meeting - 2 February 2016 - PUBLIC EXCLUDED

S7(2)(j)

The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

C2  Audit and Risk Subcommittee - Action List

S7(2)(h)

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

C3  Audit New Zealand Management Report on the LTP 1 July 2015 to 30 June 2025

S7(2)(h)

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

C4  Internal Audit Update - March 2016

S7(2)(a)

The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

C5  Internal Audit - Non Rates Revenue

S7(2)(a)

The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

The report is considered confidential because it refers to Council staff positions where those staff may not have had the opportunity to respond or comment on the report..

C6  Internal Audit - Cash Handling Review

S7(2)(a)

The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

The report is considered confidential because it refers and impacts Council staff positions where those staff may not have had the opportunity to respond or comment on the report..

C7  Health and Safety Monthly Reporting for February 2016

S7(2)(a)

The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

C8  Treasury Risk Management Policy Review

S7(2)(h)

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

C9  Review Update

S6(a)

The making available of the information 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.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 6.

 

C10  Items for Consideration by the Chair

S7(2)(g)

The withholding of the information is necessary to maintain legal professional privilege.

 

S48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987, and the particular interest or interests protected by Section 6 or Section 7 of that Act, of Section 6 or Section 7 or Section 9 of the Official Information Act 1982, as the case may require, which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in the public are as shown above (in parenthesis after each item.

 

That Scott Tobin (Audit Director, Audit NZ) and Amanda Nicholls (Audit Manager, Audit NZ) be permitted to remain at the meeting, after the public had been excluded, because of their knowledge of Item C3.  This knowledge, which would be of assistance in relation to the matters to be discussed, was relevant because they would be reporting on the item under consideration.

 

That Phil Sinclair (Principal – Audit and Business Advisory, Crowe Horwath) be permitted to remain at this meeting, after the public had been excluded, because of his knowledge of Items C4, C5 and C6.  This knowledge, which would be of assistance in relation to the matters to be discussed, was relevant because they would be reporting on the item under consideration.

 

Motion carried (AR/2016/008)

 

 

The meeting moved into non-public at 3.00 pm.

 

 

 

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CHAIRPERSON