Notice of Meeting:
I hereby give notice that an ordinary meeting of the Audit and Risk Subcommittee will be held on:
Date: Tuesday 28 June 2016
Time: 2.00 pm
Venue: Edinburgh Room, Municipal Chambers, The Octagon, Dunedin
Sue Bidrose
Chief Executive Officer
Audit and Risk Subcommittee
PUBLIC AGENDA
MEMBERSHIP
Chairperson |
Susie Johnstone |
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Deputy Chairperson |
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Members |
Hilary Calvert |
Janet Copeland |
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Chris Staynes |
Richard Thomson |
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Mayor Dave Cull (Ex-Officio Member) |
Senior Officer Grant McKenzie, Group Chief Financial Officer
Governance Support Officer Wendy Collard
Wendy Collard
Governance Support Officer
Telephone: 03 477 4000
Wendy.Collard@dcc.govt.nz
Note: Reports and recommendations contained in this agenda are not to be considered as Council policy until adopted.
Audit and Risk Subcommittee 28 June 2016 |
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ITEM TABLE OF CONTENTS PAGE
1 Apologies 4
2 Confirmation of Agenda 4
3 Declaration of Interest 5
4 Confirmation of Minutes 10
4.1 Audit and Risk Subcommittee meeting - 16 May 2016 10
Part A Reports (Committee has power to decide these matters)
5 Audit and Risk Subcommittee Work Plan 2015/16 17
6 Schedule of Governance/Financial Policies 22
7 Items for Consideration by the Chair
Resolution to Exclude the Public 25
Audit and Risk Subcommittee 28 June 2016 |
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Apologies have been received from Cr Richard Thomson (for absence) and Mayor Dave Cull (for early departure).
That the Committee:
Accepts the apologies from Cr Richard Thomson and Mayor Dave Cull.
Note: Any additions must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.
Audit and Risk Subcommittee 28 June 2016 |
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EXECUTIVE SUMMARY
Members are reminded of the need to stand aside from decision-making when a conflict arises between their role as an elected representative or independent member and any private or other external interest they might have.
Attachments
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Title |
Page |
Audit and Risk Subcommittee Members' Interest Register |
6 |
Audit and Risk Subcommittee 28 June 2016 |
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AUDIT AND RISK SUBCOMMITTEE - Interest Register CURRENT as at 28 JUNE 2016
Name |
Responsibilities |
Members Declarations of Interests |
Council Appointments |
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Susie Johnstone
Date appointed – 24 February 2014 |
Chairperson
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Board Member REANNZ (Research Education Advanced Network New Zealand) Trustee, Community Trust of Otago Board of Proprietors, John McGlashan College Consultancy Service for Southern District Health Board – Finance; Audit and Risk Management Office of the Auditor General – Audit and Risk Committee Member Owner and Director Shand Thomson Limited Director, Shand Thomson Nominees Ltd and similar nominee companies Director, Abacus ST 01 and similar nominee companies Director, Johnstone Afforestation Limited Director, Harrison Nominees Limited
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Hilary Calvert
Date appointed – |
Councillor |
Director, South Pacific Resorts Director, Scarfie Flats Director, Reed Road Director, Opoho Holdings Director, Lee Paterson Family Trust Owner of various Dunedin residential properties Owner of farmland in Waikouaiti Owner of various Dunedin commercial properties – some as a Shareholder in property owning companies
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Council appointed representative, Age Concern Council appointed representative, Dunedin Council of Social Services |
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Janet Copeland
Date appointed – 19 May 2014 |
Independent Member |
Director, Next Investments Limited Director, Ronaki (Southland ) Limited Director, Stoney Creek Investments Ltd Director, Copeland Ashcroft Law Ltd Committee Member, Southland Branch of NZ Law Society |
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Chris Staynes
Date
appointed –
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Deputy Mayor |
Director, Scott Technology Chairperson, Cargill Enterprises Council Member, Otago Polytechnic Trustee, Open Education Resource Foundation Board Member, Otago Chamber of Commerce Trustee, 4Trades Apprentice Training Trust Committee Member, New Zealand International Science Festival Committee Member, The Dunedin Shanghai Association Co-Owner, Wine Freedom Board Member, Otago and Southland Cancer Society Board Member, OSMA Trust
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Council appointed Board Member, Otago Museum Council appointed Committee Member, Theomin Gallery |
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Richard Thomson
Date appointed – |
Councillor |
Managing Director, Thomson & Cessford Ltd Deputy Commissioner, Southern District Health Board Trustee, Healthcare Otago Charitable Trust Chairperson, Hawksbury Community Living Trust
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Dave Cull
Ex-Officio Member |
The Mayor |
Director, Popaway Limited Weller Trust |
Council appointed Member, University of Otago Council Council appointed Member, Alexander McMillan Trust Council appointed Member, Fortune Theatre Trust Council appointed Member, Local Government New Zealand – Zone 6 Council appointed Member, Otago Theatre Trust Council appointed Member, Otago Theatre Trust
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Name |
Responsibilities |
Staff Members Declarations of Interests |
Council Appointments |
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Sue Bidrose |
Chief Executive Officer |
Director, Wise Trust Management Services Director, Piece of Work Ltd Director, Poppyfields Management Ltd Property – Cliffs Road, Dunedin
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45 South elected representative, SOLGM Executive |
Grant McKenzie |
Group Chief Financial Officer |
Shareholder in the following companies: - Meridian Energy Limited - Mighty River Power Limited - Pumpkin Patch Limited - Rakon Limited - Cavalier Corporation Limited - Methven Limited - The Warehouse Limited - Z Energy Limited Properties: · Woodside Terrace, Dunedin · Chirnside Terrace, Patearoa Member, Chisholm Park Golf Club Member, Patearoa Golf Club
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Director, Dunedin Events Limited Director, Dunedin Visitor Centre Limited Director, Tourism Dunedin Limited Director, Otago Power Limited Director, Lakes Contract Services Limited Director, Golden Block Investments
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Sandy Graham |
Group Manager Corporate Services
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Properties: · Patearoa · Stuart Street, Dunedin Secretary, Patearoa Golf Club |
Observer, Otago Rugby Football Union Board Board member, Otago Rural Fire Authority |
Name |
Responsibilities |
Staff Members Declarations of Interests |
Council Appointments |
Gavin Logie |
Financial Controller |
Wife Sheryl is Group Financial Controller of Southern Hospitality Limited. Sheryl is also a minority shareholder in Southern Hospitality Limited.
This interest has been declared to Council.
Property: Upland Street, Dunedin |
None |
Audit and Risk Subcommittee 28 June 2016 |
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Audit and Risk Subcommittee meeting - 16 May 2016
That the Committee: Confirms the public part of the minutes of the Audit and Risk Subcommittee meeting held on 16 May 2016 as a correct record.
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Attachments
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Title |
Page |
Minutes of Audit and Risk Subcommittee meeting held on 16 May 2016 |
11 |
Audit and Risk Subcommittee
UNCONFIRMED MINUTES
Minutes of an ordinary meeting of the Audit and Risk Subcommittee held in the Edinburgh Room, Municipal Chambers, The Octagon, Dunedin on Monday 16 May 2016, commencing at 9.02 am
PRESENT
Chairperson |
Susie Johnstone |
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Deputy Chairperson |
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Members |
Hilary Calvert |
Janet Copeland |
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Chris Staynes |
Richard Thomson |
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Mayor Dave Cull (Ex-Officio Member) |
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IN ATTENDANCE |
Grant McKenzie (Group Chief Financial Officer), Sandy Graham (Group Manager, Corporate Services) and Andrew Slater (Risk and Internal Audit Manager) |
Governance Support Officer Wendy Collard
1 Apologies There were no apologies. |
2 Confirmation of agenda |
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Moved (Mayor Dave Cull/Cr Chris Staynes): that the Committee
Confirms the agenda without addition or alteration
Motion carried (AR/2016/021) |
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.
There were no declarations of interest made or conflicts of interest declared.
4 Confirmation of Minutes
4.1 Audit and Risk Subcommittee meeting - 5 April 2016 |
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Moved (Cr Hilary Calvert/Cr Chris Staynes): that the Committee
Confirms the public part of the minutes of the Audit and Risk Subcommittee meeting held on 5 April 2016 as a correct record
Motion carried (AR/2016/022) |
Part A Reports
5 Audit and Risk Subcommittee Work Plan 2015/16 |
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There was discussion on the Audit and Risk Subcommittee Workplan.
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Moved (Chairperson Susie Johnstone/Cr Hilary Calvert): that the Committee
a) Notes the Audit and Risk Subcommittee Work Plan 2015/16. Motion carried (AR/2016/023) |
6 Schedule of Governance/Financial Policies |
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Following discussion on the Governance/Financial Policies schedule which included Councillors' Code of Conduct and Interest Register, it was agreed that an update on the review of Standing Orders would be presented to Audit and Risk Subcommittee
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Moved (Chairperson Susie Johnstone/Cr Chris Staynes): that the Committee
a) Notes the Schedule of Governance/Financial Policies Motion carried (AR/2016/024) |
7 Insurance Renewal - 2016/17 |
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The Mayor left the meeting at 9.30 am during discussion.
A report from the Financial Controller (Gavin Logie) provided an update on the insurance renewal process for the 2016/17 financial year.
It noted that as part of the 2014/15 insurance renewal Council were able to place 35% of its core cover into the international market, which provided risk mitigation in relation to market capacity, but also delivered the opportunity to extend cover to infrastructure assets as well as the creation of market tension which ensured other renewal terms and conditions were favourable.
The Group Chief Financial Officer (Grant McKenzie) commented that the strategy for the 2016/17 renewal would focus on areas which included Business Interruption Cover, asset schedules, Liability Policies with looking at the possible inclusion of Cyber Insurance. Mr McKenzie commented that the market was flat at the moment so it is anticipated that there would not be a large increase/decreases in premium.
Mr McKenzie responded to questions on Cyber Insurance and he commented that the market for Cyber Insurance had matured considerable and Policies provided cover for things such as protection and cleansing of computer systems following a cyber-attack.
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Moved (Janet Copeland/Cr Hilary Calvert): that the Committee
a) Notes the insurance renewal update for the 2016/17 financial year. Motion carried (AR/2016/025) |
8 Items for Consideration by the Chair |
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There were no items identified for consideration.
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Resolution to exclude the public |
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Moved (Chairperson Susie Johnstone/Cr Richard Thomson): that the Committee
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:
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, or 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 public are as shown above after each item. Motion carried (AR/2016/026) |
The meeting went into Non-Public at 9.45 am.
Audit and Risk Subcommittee 28 June 2016 |
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Audit and Risk Subcommittee Work Plan 2015/16
Department: Civic
EXECUTIVE SUMMARY
1 This report provides a copy of the updated Audit and Risk Subcommittee Work Plan 2015/16. As this is an administrative report only, the Summary of Considerations is not required.
2 It should be noted that the items without ticks shown have not been scheduled for action in the 2015/16 year.
That the Committee: a) Notes the Audit and Risk Subcommittee Work Plan 2015/16.
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Signatories
Author: |
Wendy Collard - Governance Support Officer |
Authoriser: |
Kristy Rusher - Manager Civic and Legal |
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Title |
Page |
Audit and Risk Subcommittee Workplan |
18 |
Audit and Risk Subcommittee 28 June 2016 |
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audit and risk subcommittee Work Plan 2015/16
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June 2016 |
Aug 2016 |
Sept 2016 |
Nov 2016 |
Feb 2017 |
April 2017 |
June 2017 |
Aug 2017 |
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Governance |
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Terms of Reference/Delegation (Review Date – November 2016 at the start of the new Triennium) |
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Staff Code of Conduct (Employee Values & Practices) |
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Staff Conflict of Interest Policy (Review Date – May 2017) |
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ü |
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Elected Members' Code of Conduct (Under Review) |
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ü |
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Elected Members' Conflict of Interest Policy (Under Review) |
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ü |
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A Working Relationship for Elected Members & Council Officers (Code of Conduct) |
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Standing Orders – Review and/or adopt (This will be dependent on what is passed by Council). |
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Financial Policies & Reviews |
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Delegated Authorities Policy (annually) |
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ü |
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Legal Compliance Policy (update to be provided in new triennium) |
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ü |
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Treasury Policy (Review Date – December 2016) |
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ü |
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Procurement (Purchasing, Contracting & Tendering) |
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Procurement Policy (Review Date – December 2017) |
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Procurement Procedure Manual |
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ü |
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Asset Disposal and Write Off Policy (Review date- March 2017 ) |
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ü |
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Contracts Management Performance Policy (to be developed) |
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ü |
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Procurement (Purchasing, Contracting & Tendering) (Continued) |
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Purchasing Card Policy & Procedures |
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ü |
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Schedule of card holders and limits (annually) |
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ü |
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Schedule of top 100 Suppliers |
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One Off Projects (If Applicable) |
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ü |
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Risk Management |
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Risk Management Policy (Included in Agenda) |
ü |
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Risk Register |
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ü |
ü |
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ü |
ü |
ü |
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Risk Management Framework |
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Insurance Renewals (Update provided May 2016) |
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Information Technology Security Policy |
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Health and Safety |
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Health & Safety Policy (Out for consultation) |
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Health & Safety Annual Objective/KPI Report |
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Implement Governance Reporting Systems/Regular Reports |
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ü |
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Audit (External) |
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Annual Report Governance |
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Annual Report Audit Arrangements and Engagements |
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Audit (External) (continued) |
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Review of Outstanding Matters (ex-External Audit & LTP) |
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Long Term Plan – Audit NZ Feedback |
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Audit (Internal) |
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Internal Audit Policy (Review Date – March 2017) |
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Approve Annual Internal Audit Work Plan |
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Internal Audit Work Plan updates |
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Data Analysis (Suspicious Transaction Analysis) |
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CHRIS Control and Client Site Review |
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Review of Outstanding Matters (ex IA work) |
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Sensitive Expenditure |
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Sensitive Expenditure Policy (Review date – July 2017) |
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Gift and Hospitality Policy (Review date – July 2017) |
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Staff Travel Policy |
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Review of Motor Vehicle Use |
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Fraud |
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Fraud Prevention Policy & Procedures (Review date – December 2016) |
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Fraud Reporting (Investigation Register) |
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Fraud (Continued) |
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Fraud Risk Assessment & Gap Analysis |
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Protected Disclosure Policy (Review date – April 2018) |
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Protected Disclosure Reporting |
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Review of Outstanding Matters (ex fraud risk work) |
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ü |
ü |
ü |
ü |
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Please note that the dates after September 2016 are indicative only.
28 June 2016 |
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Schedule of Governance/Financial Policies
Department: Civic
EXECUTIVE SUMMARY
1 This report provides a copy of the updated Schedule of Governance/Financial Policies. As this is an administrative report only, the Summary of Considerations is not required.
That the Committee: a) Notes the Schedule of Governance/Financial Policies
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Signatories
Author: |
Wendy Collard - Governance Support Officer |
Authoriser: |
Kristy Rusher - Manager Civic and Legal |
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Title |
Page |
Governance/Financial Policies Schedule |
23 |
Audit and Risk Subcommittee 28 June 2016 |
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DUNEDIN CITY COUNCIL - Schedule of Governance/Financial Policies
Policy Area |
Current Policy/Guidelines |
Current Version Date |
Cycle (Yrs) |
Review Date |
Area Responsible |
Status |
Governance |
Audit and Risk Subcommittee Terms of Reference |
May 2014 |
1 |
November 2016 |
Finance |
In development |
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Staff Code of Conduct |
Mar 2013 |
3 |
April 2016 |
Human Resources |
In development |
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Staff Conflict of Interest Policy |
May 2016 |
1 |
May 2017 |
Human Resources |
Approved by Council at 23 May 2016 meeting |
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Elected Members' Code of Conduct |
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Under review. To be completed by 1 July 2016 |
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Elected Members' Conflict of Interest |
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Under review. To be completed by 1 July 2016 |
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A Working Relationship for Elected Members and Council Officers |
Jul 2009 |
3
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October 2016 |
Corporate Governance |
To be completed in the new Triennium |
Financial |
Delegated Authorities Policy |
Sept 2014 |
1 |
Sept 2016 |
Corporate Governance |
In development |
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Legal Compliance Policy |
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3 |
April 2016 |
Corporate Governance |
Update to be provided December 2016 |
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Treasury Risk Management Policy |
Dec 2014 |
2 |
Dec 2016 |
Finance |
December 2016 |
Procurement (purchasing, contracting, disposal, tendering) |
Procurement Policy |
Dec 2015 |
2 |
Dec 2017 |
Finance |
Approved by Council at their meeting 14 December 2015 |
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Procurement Procedure Manual
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Aug 2012 |
2 |
Sept 2016 |
Finance |
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Purchasing Card Policy and Procedure Manual |
Jul 2014 |
2 |
Sept 2016
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Finance |
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Asset Disposal and Write Off Policy |
March 2015
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2 |
March 2017 |
Finance |
March 2017 |
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Contracts Management Performance Policy |
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To be developed |
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Policy Area |
Current Policy/Guidelines |
Current Version Date |
Cycle (Yrs) |
Review Date |
Area Responsible |
Status |
Risk Management |
Risk Management Policy |
Jul 2010 |
2 |
June 2016 |
Finance |
June 2016 |
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Internal Audit Policy |
March 2015 |
2 |
March 2017 |
Finance |
March 2017 |
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Information Technology Security Policy |
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3 |
June 2016 |
Business Information Services |
In development |
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Health and Safety Policy |
Mar 2014 |
2 |
December 2015 |
Human Resources |
Additional consultation being sought. |
Sensitive Expenditure |
Staff Travel Policy |
Mar 2014 |
1 |
April 2016 |
Human Resources
|
August 2016 |
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Sensitive Expenditure Policy
|
July 2015 |
1 |
July 2017 |
Finance |
July 2017 |
Gift and Hospitality |
Gift and Hospitality Policy |
June 2015 |
2 |
July 2017 |
Corporate Governance |
July 2017 |
Fraud |
Fraud Prevention Policy and Procedures |
Dec 2014 |
2 |
Dec 2016 |
Finance |
December 2016 |
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Protected Disclosure "Whistle-Blower" Policy |
April 2015 |
3 |
April 2018 |
Corporate Governance |
April 2018 |
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Financial Control Policies |
June 2010 |
3 |
Dec 2015 |
Finance |
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i:\committee\council committees\audit and risk subcommittee\financial - governance policies lists\2014_09_10 - governance-financial policies - review dates.docx
Audit and Risk Subcommittee 28 June 2016 |
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Resolution to Exclude the Public
That the Audit and Risk 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:
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, or 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 public are as shown above after each item.