Notice of Meeting:
I hereby give notice that an ordinary meeting of the Audit and Risk Subcommittee will be held on:
Date: Thursday 30 November 2023
Time: 2.00 pm
Venue: Otaru Room, Civic Centre, The Octagon, Dunedin
Sandy Graham
Chief Executive Officer
Audit and Risk Subcommittee
PUBLIC AGENDA
MEMBERSHIP
Chairperson |
Warren Allen |
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Deputy Chairperson |
Janet Copeland
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Members |
Cr Christine Garey |
Cr Cherry Lucas |
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Mayor Jules Radich |
Cr Lee Vandervis |
Senior Officer Carolyn Allan, Acting 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.
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Audit and Risk Subcommittee 30 November 2023 |
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 - 7 September 2023 10
4.2 Audit and Risk Subcommittee meeting - 27 October 2023 20
Part A Reports (Committee has power to decide these matters)
5 Audit and Risk Subcommittee Work Plan 2023/2024 24
6 Audit and Risk Subcommittee Actions Report 28
7 Financial Result - Period Ended 30 September 2023 34
8 Health and Safety Monthly Reporting for September 2023 55
Resolution to Exclude the Public 78
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Audit and Risk Subcommittee 30 November 2023 |
An apology has been received from Mayor Jules Radich.
That the Subcommittee:
Accepts the apology from Mayor Jules Radich.
Note: Any additions must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.
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Audit and Risk Subcommittee 30 November 2023 |
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 or independent representative 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.
That the Subcommittee: 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
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Title |
Page |
⇩a |
Register of Interests |
6 |
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Audit and Risk Subcommittee 30 November 2023 |
Audit and Risk Subcommittee meeting - 7 September 2023
That the Subcommittee: a) Confirms the public part of the minutes of the Audit and Risk Subcommittee meeting held on 07 September 2023 as a correct record.
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Attachments
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Title |
Page |
A⇩ |
Minutes of Audit and Risk Subcommittee meeting held on 7 September 2023 |
11 |
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Audit and Risk Subcommittee 30 November 2023 |
·
Audit and Risk Subcommittee
MINUTES
Minutes of an ordinary meeting of the Audit and Risk Subcommittee held in the Otaru Room, Civic Centre, The Octagon, Dunedin on Thursday 07 September 2023, commencing at 2.00 pm
PRESENT
Chairperson |
Warren Allen |
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Deputy Chairperson |
Janet Copeland
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Members |
Cr Christine Garey |
Cr Cherry Lucas |
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Mayor Jules Radich |
Cr Lee Vandervis |
IN ATTENDANCE |
Sandy Graham (Chief Executive Officer), Carolyn Allan (Acting Chief Financial Officer), Graeme Riley (Chief Information Officer) and Hayley Knight (Quality, Compliance and Business Assurance Advisor) |
Governance Support Officer Wendy Collard
1 APOLOGIES |
Moved (Mr Warren Allen/Cr Christine Garey): That the Subcommittee:
Accepts the apology from Cr Sophie Barker
Motion carried (AR/2023/028) |
2 CONFIRMATION OF AGENDA |
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Moved (Warren Allen/Mayor Jules Radich): That the Subcommittee:
Confirms the agenda without addition or alteration
Motion carried (AR/2023/029) |
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.
Mr Allen provided an update to his Register of Interest.
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Moved (Warren Allen/Cr Cherry Lucas): That the Subcommittee:
a) Amends the Elected or Independent Members' Interest Register; and b) Confirms the proposed management plan for Elected or Independent Members' Interests. Motion carried (AR/2023/030) |
4 Confirmation of Minutes
4.1 Audit and Risk Subcommittee meeting - 22 June 2023 |
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Moved (Warren Allen/Janet Copeland): That the Subcommittee:
a) Confirms the public part of the minutes of the Audit and Risk Subcommittee meeting held on 22 June 2023 as a correct record. Motion carried (AR/2023/031) |
Part A Reports
5 Audit and Risk Subcommittee Work Plan 2023/2024 |
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A report from Civic provided a copy of the Audit and Risk Subcommittee Work Plan for 2023/2024 which has been aligned with work programmes scheduling and decision-making. The Chief Executive Officer spoke to the report and responded to questions. |
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Moved (Warren Allen/Mayor Jules Radich): That the Subcommittee:
a) Notes the Audit and Risk Subcommittee Work Plan for 2023/2024 Motion carried (AR/2023/032) |
RESOLUTION TO EXCLUDE THE PUBLIC
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Moved (Warren Allen/Janet Copeland): 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:
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/2023/034) |
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The meeting moved into non-public at 2.23 pm and concluded at 4.40 pm.
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CHAIRPERSON
Audit and Risk Subcommittee 30 November 2023 |
Audit and Risk Subcommittee meeting - 27 October 2023
That the Subcommittee: a) Confirms the public part of the minutes of the Audit and Risk Subcommittee meeting held on 27 October 2023 as a correct record.
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Attachments
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Title |
Page |
A⇩ |
Minutes of Audit and Risk Subcommittee meeting held on 27 October 2023 |
21 |
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Audit and Risk Subcommittee 30 November 2023 |
Audit and Risk Subcommittee
MINUTES
Minutes of an ordinary meeting of the Audit and Risk Subcommittee held in the Otaru Room, Civic Centre, The Octagon, Dunedin on Friday 27 October 2023, commencing at 2.00 pm
PRESENT
Chairperson |
Warren Allen |
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Deputy Chairperson |
Janet Copeland
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Members |
Cr Christine Garey |
Cr Cherry Lucas |
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Mayor Jules Radich |
Cr Lee Vandervis |
IN ATTENDANCE |
Sandy Graham (Chief Executive Officer), Carolyn Allan (Chief Financial Officer (Acting)), Jasmine Lamorie (Senior Corporate Planner), Rudie Tomlinson (Director, Audit NZ) and Monique Kruger (Manager, Audit NZ) |
Governance Support Officer Wendy Collard
1 APOLOGIES |
There were no apologies.
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2 CONFIRMATION OF AGENDA
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Moved (Warren Allen/Cr Christine Garey): That the Subcommittee:
Confirms the agenda without addition or alteration
Motion carried (AR/2023/040) |
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.
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Moved (Warren Allen/Mayor Jules Radich): That the Subcommittee:
a) Notes the Elected or Independent Members' Interest Register attached as Attachment A; and b) Confirms the proposed management plan for Elected or Independent Members' Interests. Motion carried (AR/2023/041) |
Resolution to exclude the public |
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Moved (Warren Allen/ Janet Copeland): 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:
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 Rudie Tomlinson and Monique Kruger (Audit NZ) be permitted to attend the meeting, after the public has been excluded, because of their knowledge of Item C1. This knowledge, which would been of assistance in relation to the matters discussed, was relevant because they would be reporting on the item under consideration.
Motion carried (AR/2023/042) |
The meeting entered into non-pubic at 2.11 pm and concluded at 3.05 pm.
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CHAIRPERSON
Audit and Risk Subcommittee 30 November 2023 |
Audit and Risk Subcommittee Work Plan 2023/2024
Department: Civic
EXECUTIVE SUMMARY
1 This report provides a copy of the Audit and Risk Subcommittee Work Plan for 2023/2024 which has been aligned with work programmes scheduling and decision-making.
2 It should be noted that items without ticks shown have not been scheduled for action.
3 As this is an administrative report only, the Summary of Considerations is not required.
That the Subcommittee a) Notes the Audit and Risk Subcommittee Work Plan for 2023/2024 |
Signatories
Author: |
Wendy Collard - Governance Support Officer |
Authoriser: |
Clare Sullivan - Manager Governance |
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Title |
Page |
⇩a |
Audit and Risk Subcommittee Workplan |
25 |
Audit and Risk Subcommittee 30 November 2023 |
Audit and Risk Subcommittee Actions Report
Department: Finance
EXECUTIVE SUMMARY
1 This report provides an update on the progress of various sundry matters that have been noted by the Subcommittee.
That the Subcommittee: a) Notes the Audit and Risk Subcommittee Actions Report as of November 2023. |
DISCUSSION
2 10 Year Plan workstreams are progressing with allocated tasks to meet deliverables for the 10-year plan.
3 A programme of Councillor workshops on 10-year plan topics is in progress. To date, workshop topics have included levels of service, rating and differentials, Revenue and Financing Policy, and Groups of Activities.
4 Workstreams continue to prepare and present supporting information and reports for Council on items required for the 10-year plan document, such as the groups of activities structure, and have also presented reports related to items for 10 Year Pan budget or consultation consideration, such as the Zero Carbon implementation plan.
5 In October DCC held an early engagement process which included an online survey and comments wall, as well as engagement with specific groups. There were 859 survey responses and 400 comments on the wall. The engagement feedback will be presented to Council for its consideration in developing the 10-year plan.
6 Audit NZ will be commencing its interim audit of the 10-year plan in November, looking at areas such as our planning documentation, workshop content, reports presented to Council to date, and Asset Management Plans.
Annual Report – Update
7 The DCC annual report for the year ended 30 June 2023 was adopted by Council at its meeting held 30 October 2023. The following recommendations were approved:
Moved (Mayor Jules Radich/Cr Cherry Lucas):
That the Council:
a) Approves the Dunedin City Council Annual Report for the financial year ended 30 June 2023.
b) Delegates the Chief Executive the authority to make any minor editing required to the approved Annual Report for the year ended 30 June 2023.
c) Authorises the Mayor and Chief Executive to sign the Statement of Compliance and Responsibility on behalf of Council.
d) Authorises the Mayor and Chief Executive to sign the Letter of Representation to the auditor on behalf of Council.
e) Receives the Audit Report on the Annual Report for the year ended 30 June 2023; and
f) Adopts the audited Annual Report for the year ended 30 June 2023.
Division
The Council voted by division
For: Crs Bill Acklin, Sophie Barker, David Benson-Pope, Christine Garey, Kevin Gilbert, Carmen Houlahan, Marie Laufiso, Cherry Lucas, Lee Vandervis, Steve Walker, Brent Weatherall, Andrew Whiley and Mayor Jules Radich (13).
Against: Nil
Abstained: Nil
The division was declared CARRIED by 13 votes to 0
Motion carried (CNL/2023/262)
8 The Summary Annual Report for the year ended 30 June 2023 incorporating the associated audit opinion is nearing completion. Both the full annual report and this summary will be published on the DCC’s website on 30 November 2023 – the statutory deadline.
Insurance Renewal - Update
9 As previously advised, the following cover was confirmed for the current financial year effective from 1 July 2023. The remaining liability policy renewal was being compiled.
· Material Damage Above Ground
· Business Interruption Above Ground
· Below Ground Infrastructure
· Fine Arts
· Civil Engineering – Taieri River Water Supply Bridges
· Motor Vehicle
· Liability Policies – Internet, Crime, D&O
· Travel and Personal Accident
10 The liability programme has now been fully renewed with effect from 1 November 2023:
· Primary Public Liability
· Professional indemnity
· Employers Liability
· Statutory Liability
· Excess Public Liability and Professional Indemnity
11 The insurers had requested additional information on the business interruption (BI) cover for Council. We have engaged Aon to assist in completing a review of the BI cover to ensure the necessary information can be provided. This review will include an analysis of DCC income statements for each area of the organisation with a view to right-sizing the BI cover required. This work is ongoing.
3 Waters Reform – Update
Affordable Waters Reform – Uncertainty
12 We are currently awaiting updated guidance from central government following the general election and coalition agreements.
13 Until legislation is changed, Council is bound by the current Water Services Entities Act 2022 and other relevant legislation and planning is proceeding on that basis.
Policy Updates
14 DCC policies that are currently undergoing review include:
o Conflict of Interest – DCC Officers
o Koha
o Leave Management
o Information Management Policy
o ICT Acceptable Use Policy
o Staff Code of Conduct
International Fraud Awareness Week
15 International Fraud Awareness Week was on from 12th to 18th November 2023.
16 The DCC put out internal communications to staff to encourage them to refresh themselves on DCC policies and processes.
17 Staff who were interested were pointed to webinars hosted by the New Zealand Serious Fraud Office on digital fraud. The recordings are still available for viewing at the following link:
Fraud Awareness Week 2023 - Serious Fraud Office, New Zealand (sfo.govt.nz)
Signatories
Author: |
Hayley Knight - Quality, Compliance and Business Assurance Advisor |
Authoriser: |
Carolyn Allan - Acting Chief Financial Officer |
There are no attachments for this report.
SUMMARY OF CONSIDERATIONS
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Fit with purpose of Local Government This report provides an update on the progress made by Council to deliver upon the activities identified by the Audit and Risk Subcommittee, which is a regulatory function and considered good quality and cost effective. |
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Fit with strategic framework
The work of the Audit and Risk Subcommittee seeks to underpin the ongoing critical review and improvement of Council business activities, governance mechanisms and support the realisation of its strategic objectives. |
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Māori Impact Statement There are no known impacts for Māori. |
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Sustainability There are no implications for sustainability. |
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LTP/Annual Plan / Financial Strategy /Infrastructure Strategy There are no known implications. |
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Financial considerations No financial implications have been identified. |
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Significance This report is considered low in terms of the Council’s Significance and Engagement Policy. |
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Engagement – external No external engagement has been undertaken. |
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Engagement - internal Activities noted herein include cross Council engagement and collaboration. |
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Risks: Legal / Health and Safety etc. No risks have been identified. |
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Conflict of Interest No conflicts of interest have been identified. |
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Community Boards There are no known implications for the Community Boards.
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Audit and Risk Subcommittee 30 November 2023 |
Financial Result - Period Ended 30 September 2023
Department: Finance
EXECUTIVE SUMMARY
1 This report provides the financial results for the period ended 30 September 2023 and the financial position as at that date which will be presented to the Council meeting being held on Tuesday, 28 November 2023.
2 As this is an administrative report only, there are no options or Summary of Considerations.
That the Subcommittee: a) Notes the Financial Performance for the period ended 30 September 2023 and the Financial Position as at that date. |
BACKGROUND
3 This report provides the financial statements for the period ended 30 September 2023. It includes reports on financial performance, financial position, cashflows and capital expenditure. The operating result is also shown by group, including analysis by revenue and expenditure type.
DISCUSSION
4 Revenue was $91.690 million for the year or $1.721 million greater than budget.
5 External revenue was unfavourable $1.193 million to budget due to lower than expected revenue from water sales, parking, and Building Services activity. These unfavourable variances were partially offset by increased revenue in Transport, landfill activity and Parks.
6 Grants revenue was favourable $2.597 million due to $3.635 million of additional roading funding reflecting a higher level of maintenance and capital delivery. This favourable variance was partially offset by $677k reform funding and $532k Events funding relating to hosting the recent FIFA World Cup event which was received in June 2023.
7 Expenditure was $113.525 million for the year or $1.932 million greater than budget. Operational expenditure was greater than expected due to additional roading and three waters maintenance expenditure and unbudgeted costs to update the Bird Management Plan at the Green Island landfill.
8 These unfavourable variances were partially offset by savings in interest and personnel costs.
10 Capital expenditure was $49.292 million or 105% of budget. Expenditure on the retail Quarter Upgrade was ahead of budget reflecting the project being ahead of the original programme for both the central carriageway and enabling works. This expenditure is offset by an underspend in Parks and Recreation reflecting delays in the Moana Pool upgrade project and the associated hydroslide replacement.
NEXT STEPS
11 Financial Result Reports continue be presented to future meetings of either the Finance and Council Controlled Organisation Committee or Council.
Signatories
Authoriser: |
Carolyn Allan - Acting Chief Financial Officer |
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Title |
Page |
⇩a |
Summary Financial Information |
37 |
⇩b |
Statement of Financial Performance |
38 |
⇩c |
Statement of Financial Position |
39 |
⇩d |
Statement of Cashflow |
40 |
⇩e |
Capital Expenditure Summary by Activity |
41 |
⇩f |
Detailed Capital Expenditure Programme |
42 |
⇩g |
Summary of Operating Variances |
46 |
⇩h |
Financial Review |
47 |
Audit and Risk Subcommittee 30 November 2023 |
Health and Safety Monthly Reporting for September 2023
Department: Health and Safety
EXECUTIVE SUMMARY
1 The monthly Health and Safety reporting for September 2023 is attached for consideration.
That the Subcommittee: a) Notes the monthly Health and Safety report for September 2023. |
Signatories
Author: |
Jane Pearce - Health and Safety Manager |
Authoriser: |
Robert West - General Manager Corporate and Quality |
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Title |
Page |
⇩a |
Health and Safety Report for September 2023 |
56 |
Audit and Risk Subcommittee 30 November 2023 |
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.
That Mark Cervantes and Andrew Zavitsanos (Crowe) be permitted to attend the meeting, after the public has been excluded, because of their knowledge of Item C3. This knowledge, which would been of assistance in relation to the matters discussed, was relevant because they would be reporting on the item under consideration.