Audit and Risk Subcommittee

MINUTES

Minutes of an ordinary meeting of the Audit and Risk Subcommittee held in the Council Chamber, Dunedin Public Art Gallery,  The Octagon, Dunedin on Thursday 4 July 2024, commencing at 12.35 pm

PRESENT

Chairperson	Warren Allen
Deputy Chairperson	Janet Copeland
Members	Cr Christine Garey	Cr Cherry Lucas
	Mayor Jules Radich

IN ATTENDANCE

Sandy Graham (Chief Executive Officer) and Carolyn Allan (Chief Financial Officer), Hayley Knight (Quality, Compliance and Assurance Advisor), Richard Davy (Treasurer, Dunedin City Holdings Ltd) and Cr Sophie Barker

Governance Support Officer                  Jennifer Lapham

1          Public Forum

There was no Public Forum.

2          Apologies
	An apology was received from Cr Lee Vandervis.
	Moved (Warren Allen/Cr Christine Garey): That the Subcommittee: Accepts the apology from Cr Lee Vandervis. Motion carried

3          Confirmation of agenda
	Moved (Warren Allen/Cr Christine Garey): That the Subcommittee: Confirms the agenda without addition or alteration Motion carried

4          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.

Moved (Warren Allen/Cr Cherry Lucas):

That the Subcommittee:

a)         Notes the Elected or Independent Members' Interest Register; and

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

Motion carried

4          Confirmation of Minutes

4.1       Audit and Risk Subcommittee meeting - 2 May 2024
	Moved (Warren Allen/Cr Cherry Lucas): That the Subcommittee: a)         Confirms the public part of the minutes of the Audit and Risk Subcommittee meeting held on 02 May 2024 as a correct record. Motion carried (AR/2024/016)

Part A Reports

5          Audit and Risk Subcommittee Work Plan 2024/2025
	In a report from Civic a copy of the Audit and Risk Subcommittee Work Plan for 2024/2025 which had been aligned with work programmes scheduling and decision making. Ms Carolyn Allan (Chief Financial Officer) and Ms Hayley Knight Quality, (Compliance and Assurance Advisor) spoke to the report and responded to question.
	Moved (Warren Allen/Cr Christine Garey): That the Subcommittee: a)         Notes the Audit and Risk Subcommittee Work Plan for 2024/2025 Motion carried (AR/2024/017)

6          Waipori Fund - Quarter ending 31 March 2024
	In a report from Finance provided information on the results of the Waipori Fund for the quarter ended 31 March 2024 which was presented to the Finance and Council Controlled Organisations Committee at its meeting on 22 May 2024. Richard Davy (Treasurer – Dunedin City Holdings Ltd) spoke to the report and responded to questions.
	Moved (Warren Allen/Janet Copeland): That the Subcommittee: a)         Notes the report from Dunedin City Treasury Limited on the Waipori Fund for the quarter ended 31 March 2024. b)        Notes that the Waipori Fund Statement of Investment Policy and Objectives (SIPO) will be reviewed as part of the 9-year plan 2025-34 process. Motion carried (AR/2024/018)

7          Financial Report - period ended 31 May 2024
	A report from Finance provided the financial results for the period ended 31 May 2024 and the financial position at that date. Ms Carolyn Allan (Chief Financial Officer) spoke to the report and responded to questions.
	Moved (Warren Allen/Janet Copeland): That the Subcommittee: a)         Notes the Financial Performance for the period ended 31 May 2024 and the Financial Position as at that date. Motion carried (AR/2024/019)

8          Audit and Risk Subcommittee Updates Report
	A report from Corporate provided an update on the progress of various sundry matters that had been noted by the Audit and Risk subcommittee. Ms Carolyn Allan (Chief Financial Officer) spoke to the report and responded to questions.
	Moved (Warren Allen/Mayor Jules Radich): That the Subcommittee: a)     Notes the Audit and Risk Subcommittee Updates Report. Motion carried (AR/2024/020)

9          DCC Policy Update Report
	This report provides an update on DCC policies as identified in the Audit and Risk Subcommittee (ARS) Workplan and ongoing audit and business improvement activities. Ms Carolyn Allan (Chief Financial Officer) and Ms Hayley Knight Quality, (Compliance and Assurance Advisor) spoke to the report and responded to question.
	In discussing the Procurement & Contract Management Policy the Subcommittee requested that staff review the wording in 1.1 “…DCC will endeavour, where practicable, to apply this policy. In regards to 3.13 comment was made that the Living Wage Movement Aotearoa New Zealand might have a better definition of the living wage.  The Subcommittee was advised that the Contract Management Framework was a policy in itself.  Discussion took place on whether this should be included in the Policy update report.
	Moved (Warren Allen/Cr Christine Garey): That the Subcommittee: a)         Notes the Policy Update Report – July 2024. b)        Refers the Procurement and Contract Management Policy back to staff to review based on the comments. an · Review the working of 1.1 “…DCC will endeavour, where practicable, to apply this policy…” · 3.13 – Review the definition of Living Wage · Consider adding Contract Management Framework to the policies to be reviewed. c)         Notes the updated Leave Management Policy Motion carried (AR/2024/021)

10        Health and Safety Monthly Reporting for May 2024
	A report from Health and Safety reported on Health, Safety and Wellbeing for May 2024.
	Moved (Warren Allen/Mayor Jules Radich): That the Subcommittee: a)         Notes the monthly Health and Safety report for May 2024. Motion carried (AR/2024/022)

Resolution to Exclude the Public

Moved (Warren Allen/Cr Christine Garey):

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 May 2024 - Public Excluded	S7(2)(h) The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. 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)(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)(b)(i) The withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret. S7(2)(a) The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.	.
C2  Audit arrangements for the year ending 30 June 2024	S7(2)(i) The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	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  DCC External Audit Actions Update - June 2024	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.
C4  Internal Audit Workplan Update	S7(2)(b)(i) The withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret. 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.
C5  Treasury Risk Management Compliance Report	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  Dunedin City Holdings Ltd - Update on Audit and Risk Activity	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.	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  DCC Wellbeing Survey 2024	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  Protected Disclosure Register - June 2024	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.
C9  Investigation Register - June 2024	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.

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 C2.  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/2024/023)

The meeting went into non-public at 1.47 pm and concluded at 3.25 pm.

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CHAIRPERSON