Notice of Meeting:

I hereby give notice that an ordinary meeting of the Audit and Risk Subcommittee will be held on:

 

Date:                             Wednesday 12 April 2017

Time:                            2.00 pm

Venue:                          Otaru Room, Civic Centre, The Octagon, Dunedin

 

Sue Bidrose

Chief Executive Officer

 

Audit and Risk Subcommittee

PUBLIC AGENDA

 

MEMBERSHIP

 

Chairperson

Susie Johnstone

 

Deputy Chairperson

 

 

Members

Janet  Copeland

Dave Cull

 

Doug Hall

Mike Lord

 

Chris Staynes

 

 

Senior Officer                               Sandy Graham, General Manager Strategy and Governance

 

Governance Support Officer      Wendy Collard

 

 

 

Wendy Collard

Governance Support Officer

 

 

Telephone: 03 477 4000

Wendy.Collard@dcc.govt.nz

www.dunedin.govt.nz

 

 

 

 

 

 

 

Note: Reports and recommendations contained in this agenda are not to be considered as Council policy until adopted.

 


Audit and Risk Subcommittee

12 April 2017

 

 

 

ITEM TABLE OF CONTENTS                                                                   PAGE

 

1        Apologies                                                                                                  4

2        Confirmation of Agenda                                                                              4

3        Declaration of Interest                                                                                5

4        Confirmation of Minutes                                                                             11

4.1   Audit and Risk Subcommittee meeting - 7 February 2017                         11     

Part A Reports (Committee  has power to decide these matters)

5          Audit and Risk Subcommittee Work Plan 2016/17                                           19

6        Schedule of Governance/Financial Policies                                                     24

7        Conflict of Interest Matters                                                                        27            

Resolution to Exclude the Public                                                                             30

 

 


Audit and Risk Subcommittee

12 April 2017

 

 

 

1     Apologies

At the close of the agenda no apologies had been received.

2     Confirmation of agenda

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

12 April 2017

 

 

Declaration of Interest

 

  

 

EXECUTIVE SUMMARY

1.     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.

2.     Elected and Independent members are reminded to update their register of interests as soon as practicable, including amending the register at this meeting if necessary.

 

RECOMMENDATIONS

That the Committee:

a)     Notes/Amends if necessary the Elected or Independent Members' Interest Register attached as Attachment A; and

b)     Confirms/Amends the proposed management plan for Elected or Independent Members' Interests.

 

 

Attachments

 

Title

Page

a

Members' register of interests

7

  



Audit and Risk Subcommittee

12 April 2017

 

 


Audit and Risk Subcommittee

12 April 2017

 

 


Audit and Risk Subcommittee

12 April 2017

 

 


Audit and Risk Subcommittee

12 April 2017

 

 


Audit and Risk Subcommittee

12 April 2017

 

 

Confirmation of Minutes

Audit and Risk Subcommittee meeting - 7 February 2017

 

 

RECOMMENDATIONS

That the SubcCommittee:

Confirms the public part of the minutes of the Audit and Risk Subcommittee meeting held on 7 February 2017 as a correct record.

 

 

 

Attachments

 

Title

Page

A

Minutes of Audit and Risk Subcommittee meeting  held on 7 February 2017

12

 

 



 

Audit and Risk Subcommittee

UNCONFIRMED MINUTES

 

Unconfirmed minutes of an ordinary meeting of the Audit and Risk Subcommittee held in the Otaru Room, Civic Centre, The Octagon, Dunedin on Tuesday 07 February 2017, commencing at 2.07 pm

 

PRESENT

 

Chairperson

Susie Johnstone

 

Members

Cr Doug Hall

Cr Mike Lord

 

Cr Chris Staynes

 

 

 

IN ATTENDANCE

Sandy Graham (General Manager, Strategy and Governance), Gavin Logie (Acting Chief Financial Officer), Andrew Slater (Risk and Internal Audit Manager) and Martyn Solomon (Senior Client Manager – Audit and Assurance, Crowe Horwath)

 

Governance Support Officer      Wendy Collard

 

 

1       Apologies

 

Moved (Cr Chris Staynes/Cr Mike Lord):

That the Committee:

 

Accepts the apologies from Janet Copeland and Mayor Dave Cull.

 

Motion carried (AR/2017/001)

 

2       Confirmation of agenda

 

 

Moved (Susie Johnstone/Cr Chris Staynes):

That the Subcommittee:

 

Confirms the agenda with the following alterations:

 

1   That Item C8 - Update on the DCC Internal Audit Workplan – January 2017 be taken before Item C3 due to the availability of staff from Crowe Horwath

2   That part of Item C7 - Internal Audit Outcomes Report, January 2017 be taken before Item C3 due to the availability of staff from Crowe Horwath.

 

Motion carried (AR/2017/002)

 

 

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.

 

 

Moved (Susie Johnstone/Cr Mike Lord):

That the Subcommittee:

 

a)     Notes the Members' Interest Register attached as Attachment A; and

b)     Confirms the proposed management plan for members’ interests.

Motion carried (AR/2017/003)

   

Minutes of Committees

4       Audit and Risk Subcommittee - 14 December 2016

 

Moved (Cr Mike Lord/Cr Doug Hall):

That the Committee:

a)     Confirms the public part of the minutes of the Audit and Risk Subcommittee meeting held on 14 December 2016 as a correct record.

Motion carried (AR/2017/004)

 

 

It was agreed that training on Standing Orders would be provided to Susie Johnstone and Janet Copeland.

 

 

 

  

Part A Reports

5       Audit and Risk Subcommittee Work Plan 2016/17

 

A report from Civic provided a copy of the updated Audit and Risk Subcommittee Work Plan 2016/17.  There was discussion on the work plan and it was agreed that the Chairperson and the General Manager Strategy and Governance (Sandy Graham) would give consideration to the prioritisation for future meetings.

 

 

Moved (Cr Mike Lord/Cr Chris Staynes):

That the Subcommittee:

 

a)     Notes the Audit and Risk Subcommittee Work Plan 2016/17.

Motion carried (AR/2017/005)


 

 

6       Schedule of Governance/Financial Policies

 

The report from Civic provided a copy of the updated Schedule of Governance/Financial Policies. 

There was discussion on the review dates and cycle of policies and the Audit and Risk Subcommittee recommended that the review date for some policies on an annual or biannual cycle could be amended to a longer term.

 

 

 

 

Moved (Chairperson Susie Johnstone/Cr Chris Staynes):

That the Subcommittee:

 

a)     Notes the Schedule of Governance/Financial Policies

Motion carried (AR/2017/006)

 

7       Long Term Plan update - January 2017

 

A report from Community and Planning provided an update and high level timetable on the development of the Long Term Plan.  It noted that the timetable had been approved by the Executive Leadership Team on 30 January 2017.

 

The General Manager Strategy and Governance (Sandy Graham) commented that the Long Term Plan (LTP) Core Project Team had developed the LTP approach; work stream responsibilities; draft LTP timetable; Councillor engagement; and staff engagement.  Ms Graham noted that the LTP Project planning was six months ahead of schedule and advised that the touch points with Audit NZ and the Audit and Risk Subcommittee would be added.

 

Following discussion it was agreed that regular reporting on the Long Term Plan would be presented to the Audit and Risk Subcommittee.

 

 

Moved (Chairperson Susie Johnstone/Cr Mike Lord):

That the Subcommittee:

 

a)     Notes the Long Term Plan Update – January 2017 report.

Motion carried (AR/2017/007)

             

 

Resolution to exclude the public

Moved (Cr Chris Staynes/Cr Doug Hall):

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 - 14 December 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 Report

S7(2)(c)(ii)

The withholding of 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 damage the public interest.

 

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  Compliance with the Treasury Risk Management Policy

S7(2)(b)(ii)

The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

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  Health and Safety Monthly Report for November 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  Fraud Prevention Policy and Procedure

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.

 

C6  DCC Strategic Risk Register Update - January 2017

S7(2)(c)(ii)

The withholding of 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 damage the public interest.

 

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.

 

C7  Internal Audit Outcomes Report - January 2017

S7(2)(c)(ii)

The withholding of 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 damage the public interest.

 

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  Update on the DCC Internal Audit Workplan - January 2017

S7(2)(b)(ii)

The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

S7(2)(c)(i)

The withholding of 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.

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  Protected Disclosure Register

S7(2)(a)

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

S7(2)(c)(i)

The withholding of 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.

 

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.

 

C10  Investigation Register

S6(b)

The making available of the information would be likely to endanger the safety of a 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 6.

The matters detailed in this report are subject to investigation and information should remain confidential so as not to prejudice the investigation and any possible outcomes of the investigation..

C11  Purchase Card Report

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.

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

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.

 

That Martyn Solomon (Senior Client Manager – Audit and Assurance) be permitted to attend the meeting, after the public has been excluded, because of his knowledge of Items C8.  This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant because he will be reporting on the items under consideration.

 

Motion carried (AR/2017/008)

 

 

The meeting moved into non public at 2.25pm.

 

 

 

 

..............................................

CHAIRPERSON

   

 

     


Audit and Risk Subcommittee

12 April 2017

 

 

Part A Reports

 

Audit and Risk Subcommittee Work Plan 2016/17

Department: Civic and Legal

 

 

 

 

EXECUTIVE SUMMARY

1      This report provides a copy of the updated Audit and Risk Subcommittee Work Plan 2016/17.  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 2016/17 year.

 

RECOMMENDATIONS

That the Committee:

a)     Notes the Audit and Risk Subcommittee Work Plan 2016/17.

 

 

 

Signatories

Author:

Wendy Collard - Governance Support Officer

Authoriser:

Kristy Rusher - Manager Civic and Legal 

Attachments

 

Title

Page

a

Audit and Risk Subcommittee workplan

20

 

 

 


Audit and Risk Subcommittee

12 April 2017

 

 


 


 


 


Audit and Risk Subcommittee

12 April 2017

 

 

 

Schedule of Governance/Financial Policies

Department: Civic and Legal

 

 

 

 

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.

 

RECOMMENDATIONS

That the Committee:

a)     Notes the Schedule of Governance/Financial Policies

 

 

 

Signatories

Author:

Wendy Collard - Governance Support Officer

Authoriser:

Kristy Rusher - Manager Civic and Legal 

Attachments

 

Title

Page

a

Schedule of Governance/Financial Policies

25

 

 


Audit and Risk Subcommittee

12 April 2017

 

 


 


Audit and Risk Subcommittee

12 April 2017

 

 

 

Conflict of Interest Matters

Department: Office of the Chief Executive

 

 

 

 

EXECUTIVE SUMMARY  

1      This report provides information on how Interest Registers are dealt with in other authorities and also provides guidance on best practice from the Office of the Auditor General.

RECOMMENDATIONS

That the Committee:

a)     Confirms that the complete Register of Interests should be part of the agenda for all Council and Committee meetings in line with best practice.

b)     Recommends that changes to the Register of Interest are highlighted by way of “bold” for additions or “strikethrough” for deletions.

 

 

BACKGROUND

2      Since the beginning of the new triennium, all Council and Committee agendas include a copy of the Elected Members’ Interest Register and are accompanied by an administrative report that notes and confirms that there are management plans in place for any interests that may arise in the course of the meeting.

DISCUSSION

3      At the Council meeting on 28 March 2017, there was discussion about the need and/or desirability for the Interest Register to be attached to all agendas.

4      Advice was provided at the meeting that the Dunedin City Council approach represented best practice in the sector and aligned with the approach taken by the Office of the Auditor General.

5      Following that discussion, it was agreed that the matter would be considered by the Audit and Risk Subcommittee at its next meeting.

6      Since the Council meeting, governance staff have made contact with other local authorities to determine what approaches are taken to this matter. Many Councils spoken to publish the register on their websites (as does Dunedin City Council) but they do not include it with agendas.

7      Nelson City Council publishes the full register as an administrative report every second Council meeting.

8      When spoken to some of the larger metropolitan councils indicated they were reviewing how they managed and reported elected member interests and many are considering the approach being taken by the Dunedin City Council.

9      In discussions with other Councils various management techniques were identified that made the collation and review of the register more efficient.

10    When publishing registers to their websites, some Councils highlight or bold any interests that have been added to the register since it was last published. They also “strikethrough” any items that have been deleted.

11    This approach could be applied to the Dunedin City Council register whereby the register as published on each Council agenda would show any changes made since the previous Council meeting. This would address the concern of some members that it was very difficult to know what had changed while still providing the information in a fully transparent way.

 

OPTIONS

Option One – Continue to publish the full Register on all agendas but with changes highlighted - Recommended Option

 

12    This option continues the current best practice while providing an easy visual reference to those interests that have been changed. There are no identified disadvantages with this option.

Option Two – Change the frequency that the Register is published on agendas

13    This option is not recommended as it does not align with the Office of the Auditor General’s views on best practice and would mean a decrease in transparency around the management of conflicts of interest.

NEXT STEPS

14    If the recommended option is approved, governance staff will highlight changes to the registers in future. Councillors will be advised of the new approach.

 

Signatories

Author:

Sandy Graham - General Manager Strategy and Governance

Authoriser:

Sue Bidrose - Chief Executive Officer 

Attachments

There are no attachments for this report.

 


 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This report enables democratic local decision making and action by, and on behalf of communities.

 

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

 

This report is administrative

Māori Impact Statement

There are no known impacts for tangata whenua

Sustainability

There are no implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no implications.

Financial considerations

This report is administrative and has no financial implications.

Significance

This matter is of low significance in terms of the Significance and Engagement Policy.

Engagement – external

There has been external engagement with a range of other local authorities.

Engagement - internal

The in-house legal team were consulted.

Risks: Legal / Health and Safety etc.

None identified.

Conflict of Interest

This report deals specifically with managing potential conflicts of interest.

Community Boards

Any changes made as a result of the report will apply to Community Boards.

 

             


Audit and Risk Subcommittee

12 April 2017

 

 

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:

 

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  Confirmation of  the Confidential Minutes of Audit and Risk Subcommittee meeting - 7 February 2017 - 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 Report

S7(2)(c)(ii)

The withholding of 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 damage the public interest.

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  Treasury Risk Management Compliance

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  Risk Management Committee Minutes - December 2016

S7(2)(b)(ii)

The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

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.

 

C5  DCC Strategic Risk Register Update - March 2017

S7(2)(c)(ii)

The withholding of 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 damage the public interest.

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.

 

C6  Update on the DCC Internal Workplan - March 2017

S7(2)(b)(ii)

The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

S7(2)(c)(i)

The withholding of 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.

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.

 

C7  Internal Audit Outcomes Report - March 2017

S7(2)(c)(ii)

The withholding of 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 damage the public interest.

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  External Audit Outcomes Report - March 2017

S7(2)(c)(ii)

The withholding of 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 damage the public interest.

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  Protected Disclosure Register

S7(2)(a)

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

S7(2)(c)(i)

The withholding of 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.

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.

 

C10  Investigation Register

S6(b)

The making available of the information would be likely to endanger the safety of a 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 6.

The matters detailed in this report are subject to investigation and information should remain confidential so as not to prejudice the investigation and any possible outcomes of the investigation..

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.