Agenda of Finance Audit & Risk Sub-committee

HAWKE’S BAY REGIONAL COUNCIL

Finance Audit & Risk Sub-committee

Wednesday 03 June 2015

Subject: Role and Functions of the Finance, Audit & Risk Sub-committee

Reason for Report

1. At its inaugural meeting, the first order of business is to provide clarity to its members on the role and functions of the Sub-committee which includes confirming the Terms of References as adopted by the Regional Council and the related delegations and reporting lines.

Terms of Reference (adopted 25 February 2015)

a) Purpose

The purpose of the Audit and Risk Committee is to report to the Corporate and Strategic Committee on matters that will assist the Council to fulfil its responsibilities for:

1. The robustness of risk management systems, processes and practices

2. The provision of appropriate controls to safeguard the Council’s financial and non-financial assets, the integrity of internal and external reporting and accountability arrangement

3. The independence and adequacy of internal and external audit functions

4. Compliance with applicable laws, regulations, standards and best practice guidelines

5. The review of Council’s expenditure policies and the effectiveness of those policies.

b) Specific Responsibilities

The Audit and Risk Committee shall have responsibility and authority to:

1. Consider the appropriateness of the Council’s existing accounting policies and principles and any proposed changes

2. Enquire of internal and external auditors for any information that affects the quality and clarity of the Council’s financial statements and statements of service performance, and assess whether appropriate action has been taken by management in response to this

3. Satisfy itself that the financial statements and statements of service performance are supported by adequate management signoff and adequate internal controls and recommend adoption of the Annual Report by Council

4. Confirm that processes are in place to ensure that financial information included in Council’s Annual Report is consistent with the signed financial statements

5. Review whether Council management has in place a current and comprehensive risk management framework and associated procedures for effective identification and management of the council’s significant risks

6. Undertake periodic monitoring of corporate risk assessment, and the internal controls instituted in response to such risks

7. Undertake systematic reviews of Council operational activities against Council stated criteria

8. Confirm the terms of appointment and engagement of external auditors, including the nature and scope of the audit, timetable, and fees

9. Receive the external audit report(s) and review action to be taken by management on significant issues and audit recommendations raised within the report(s)

10. Conduct a committee members-only session with external audit to discuss any matters that the auditors wish to bring to the Committee’s attention and/or any issues of independence

11. Review the effectiveness of the system for monitoring the Council’s compliance with laws (including governance legislation, regulations and associated government policies), Council’s own standards, and best practice guidelines; including health and safety.

c) Membership

· Four members of Council, being:

Councillors Debbie Hewitt, Rick Barker, Christine Scott and Fenton Wilson (elected by Council on 25 March 2015)

· An external appointee, being…..(to be determined at a subsequent meeting)

d) Chairman

A member of the Committee as elected by the Council, being Councillor Debbie Hewitt (elected by Council on 25 March 2015)

e) Meeting Frequency

The Committee shall meet quarterly, or as required

j) Quorum

The quorum at any meeting of the Committee shall be not less than 3 Councillor members of the Committee.

k) Accountability

The Finance, Audit and Risk sub-committee is not delegated to make any decisions. All recommendations of the sub-committee must be considered by the Corporate and Strategic Committee prior to any decision of Council.

l) Officers Responsible

· Chief Executive

· Group Manager Corporate Services

Reporting Through the HBRC Governance Structure

2. The FA&R sub-committee makes recommendations to the Corporate and Strategic Committee, which then considers those recommendations in order to recommend decisions to the Regional Council.

Decision Making Process

3. Council is required to make a decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained in Part 6 Sub Part 1 of the Act in relation to this item and have concluded the following:

3.1. The decision does not significantly alter the service provision or affect a strategic asset.

3.2. The use of the special consultative procedure is not prescribed by legislation.

3.3. The decision does not fall within the definition of Council’s policy on significance.

3.4. The decision is not inconsistent with an existing policy or plan.

3.5. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That the Finance, Audit and Risk Sub-committee:

1. Receives and reaffirms the Terms of Reference for the sub-committee

2. Receives and confirms the Delegations made to it by the Hawke’s Bay Regional Council

3. Receives and confirms the reporting lines for the sub-committee as per the HBRC Governance structure.

Paul Drury

Group Manager
Corporate Services

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Finance Audit & Risk Sub-committee

Wednesday 03 June 2015

Subject: Members' Liability

Reason for Report

1. To provide clarification on the liability that members may be exposed to in carrying out the duties of the Subcommittee and the insurance cover that Council currently has in place to mitigate against such liability.

Background

2. As requested by the Chairperson of this Subcommittee, to review the liability that members of the Subcommittee could be exposed to in making decisions on papers considered by this Subcommittee, the following reports are presented with this paper as Attachment 1.

2.1. Two reports from Sainsbury Logan Williams, the first on “Councillor Liability” and the second on “Health and Safety” as relates to statute.

2.2. A letter from Council’s insurance brokers, Jardine Lloyd Thompson Ltd (JLT) on the cover provided in Council’s insurance policies, specifically professional indemnity, public liability and statutory liability policies.

Lauren Hibberd from Sainsbury Logan Williams will attend this meeting to present the material included in the attachment, and also to provide additional clarification if required.

3. The current insurance policy limits, cover and excess are as follows.

Policies	Cover	Excess
Public Liability	$100 million	$2,000
Professional Indemnity	$100 million	$10,000
Statutory Liability (part of employer’s liability policy)	$500,000	$5,000

4. It is proposed to increase the claim limit for the statutory liability policy from $500,000 to $1 million effective from 1 July 2015. JLT have advised Council that this increase in cover is prudent, in their opinion, to reflect the additional liability due to the proposed changes in Health and Safety legislation.

Decision Making Process

5. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded that, as this report is for information only and no decision is to be made, the decision making provisions of the Local Government Act 2002 do not apply.

Recommendation

1. That the Finance, Audit and Risk Subcommittee receives the reports on “Members’ Liability” from Sainsbury Logan Williams and from Jardine Lloyd Thompson insurance brokers.

Paul Drury

Group Manager
Corporate Services

Attachment/s

Councillor Liability Reports

HAWKE’S BAY REGIONAL COUNCIL

Finance Audit & Risk Sub-committeE

Wednesday 03 June 2015

Subject: Appointment of Independent Member

Reason for Report

1. The Terms of Reference for the sub-committee includes the appointment of an Independent Member. In order to make an appointment, the sub-committee wishes to first consider feedback from all Councillors on the issue.

Feedback Received to Date

2. Before we consider the skill set for an independent member, I would prefer to have a discussion about whether or not we need one. Further, I think this is a discussion further down the track when we have thought through what it we are setting out to achieve. At this point I think we would all have a better appreciation of whether we need an independent member and should we decide yes, at that point set out the skills and knowledge we were seeking.

3. I think the skill set for the independent is extremely important - I think the independent is extremely important - might be the only one with a skill set as unlike a Board the only skill set that are pre requisite for being election is having your name known. I also think the sooner appointed the better - the appointment has been identified already by council resolution.

3.1. All A & R committees need strong financial literacy. Therefore at the forefront of skills is qualifications in finance, plus

3.1.1. experience in risk framework identification

3.1.2. knowledge (preferably experience) in audit

3.1.3. knowledge of governance

3.1.4. knowledge of local government - insight into different requirements under relevant acts for local government

3.1.5. elected members responsibilities vs Board members

3.2. I do know that in seeking these skills in Hamilton CC and Napier CC they appointed a suitably qualified and experienced accountant as Chairman - the only position they would accept.

4. Proven ability to focus on conformance. Chartered accountant.

5. Financially literate. Local government understanding combined with private expertise. Personality trait, has strong degree of independence. Not a local. Happy to work in public / open meetings

Decision Making Process

6. Council is required to make a decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained in Part 6 Sub Part 1 of the Act in relation to this item and have concluded the following:

6.1. The decision does not significantly alter the service provision or affect a strategic asset.

6.2. The use of the special consultative procedure is not prescribed by legislation.

6.3. The decision does not fall within the definition of Council’s policy on significance.

6.4. The decision is not inconsistent with an existing policy or plan.

6.5. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

The Finance, Audit and Risk Sub-committee recommends that the Corporate and Strategic Committee:

1. Requests that the Chief Executive seeks Expressions of Interest from …

Paul Drury

Group Manager Corporate Services

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Finance Audit & Risk Sub-committee

Wednesday 03 June 2015

Subject: HBRC Risk Assessment and Management

Reason for Report

1. Staff have developed a draft Audit and Risk Management Policy and Framework for the organisation.

2. The draft is attached for consideration by the Committee.

3. Also attached are examples of risk assessments covering risks from two of Council’s work areas. Risk assessments from all Council groups are in the process of development. It is proposed that the top 10-20 risks for the organisation identified from these group assessments are reported to the Audit and Risk Committee in accordance with this policy, once it is adopted.

4. This paper seeks comment on the content of this draft Risk Management Policy and Framework, and the examples provided.

Current Framework

5. On a day-to-day basis Council staff manage a large number of risks. Staff experience, qualifications and professional judgement are critical to the mitigation of many routine operational risks. The draft Policy and Framework is designed to provide Council, as the governance body for the organisation, an awareness of the major risks to which the organisation is exposed, and the steps in place to manage or mitigate those risks.

6. Risk management is an iterative process consisting of well-defined steps which, taken in sequence, support better decision making by contributing a greater insight into risks and their impacts. It requires a systematic, logical method of identifying, analysing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process, and will enable Council to better predict and respond to organisational risks.

7. Risk management is recognised as an integral part of good management practice. To be most effective risk management should be part of an organisation’s culture. It is being integrated into HBRC’s philosophy, practices and business plans.

8. HBRC’s business landscape will continue to change and evolve. There is a need for the organisation to continuously review and improve the ability to identify and manage its risks. This policy and framework, once adopted, will set the oversight, control and discipline to drive continuous improvement of Council’s organisational risk management in a changing operating environment.

9. The framework is based on three key areas where risk could impact on HBRC:

9.1. Financial impact.

9.2. Reputation of Council with its stakeholders.

9.3. Operational capability.

10. All risks that have potential impact on Council will be assessed by each Group Manager for their respective Groups using this framework. A sample of the output from these assessments is attached for Committee information.

11. The sample reports highlight

11.1. The risks as they have been assessed by staff,

11.2. The controls in place to manage that risk and an assessment of the effectiveness of those controls.

12. It is important to recognise that the failure of a mitigation method (risk control) may result in the risk being greater than assessed. The management of risk control mechanisms are essential to ensure that they continue to mitigate that risk.

13. The framework includes clear parameters under which the risk likelihood and consequences have been established. It is expected that these will be reviewed from time to time as part of the ongoing improvement of Council’s risk management processes.

14. If risk management is to be effective, risks must be reviewed regularly. The draft policy and framework provides for regular review and reporting.

15. Staff propose to review the draft Policy and Framework based on the feedback received from the Committee and to present it for adoption at the next meeting of the Committee programmed for 22 September 2015.

Decision Making Process

16. Council is required to make a decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained in Part 6 Sub Part 1 of the Act in relation to this item and have concluded the following:

16.1. The decision does not significantly alter the service provision or affect a strategic asset.

16.2. The use of the special consultative procedure is not prescribed by legislation.

16.3. The decision does not fall within the definition of Council’s policy on significance.

16.4. The decision is not inconsistent with an existing policy or plan.

16.5. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That the Finance, Audit and Risk Sub-committee:

1. Receives the HBRC Risk Assessment and Management report

2. Provides comment on the draft Audit and Risk Management Policy and Framework.

Mike Adye

Group Manager Asset Management

Liz Lambert

Chief Executive

Attachment/s

1	Draft Risk Management Policy and Framework
2	Risk Table
3	Asset Management Risk Report
4	Corporate Services Risk Report

Draft Risk Management Policy and Framework

Attachment 1

HAWKE’S BAY REGIONAL COUNCIL

AUDIT & RISK MANAGEMENT

Draft POLICY AND FRAMEWORK

June 2015

Definitions:

Council: means the nine elected members as a governing body of Hawke’s Bay Regional Council

HBRC: means Hawke’s Bay Regional Council

Audit and Risk Committee means the Finance Audit and Risk Committee of Hawke’s Bay Regional Council

Purpose of this document;

1. This document :

a. Sets out HBRC’s risk management policy and its approach to managing risk.

b. Sets out systems and processes HBRC has in place to ensure the prudent stewardship and the efficient and effective use of its resources.

c. Documents the roles and responsibilities of the Council, the Audit and Risk Management Committee, the Chief Executive and executive management team, and all staff.

d. Identifies reporting procedures.

2. The policy forms part of HBRC’s audit and risk management and corporate governance arrangements.

Approach to risk management and audit

1. The following key principles outline HBRC’s approach to risk management and audit:

· HBRC’s risk is to be managed, monitored and reported, in accordance with this policy adopted by Council.

· HBRC is a public organisation funded largely by money sourced from the Hawke’s Bay community. It must use that money wisely and carry out its duties cost effectively. HBRC must demonstrate it is a prudent manager and user of public funds.

· The Chief Executive has responsibility for overseeing risk, financial and operational management within the whole of HBRC and will report to the Risk and Audit Committee on these issues in accordance with this policy.

· The Chief Executive and Executive management team supports, advises and implements policies approved by Council, and is responsible for the management of operational risks, and for reporting to Council all new and emerging risks with the potential to significantly impact on Council.

· HBRC is conservative and prudent in its recognition and disclosure of the financial and non-financial implications of risks

· Management staff are responsible for encouraging good risk management practice within their groups and teams

Role of Council

2. Council as the governance body for HBRC has a fundamental governance role to play in financial and operational management and the management of risk. Its role is to:

a. Set the tone and influence the culture of risk management within HBRC. This includes:

· Understanding that there is risk in the activities undertaken to achieve or support the desired organisational outcomes.

· Providing clarity on the level of risk that HBRC should be exposed to in undertaking specific activities.

· Setting the standards and expectations of staff with respect to conduct and probity.

b. Adopt an audit and risk management policy and framework, monitor its effectiveness and review and revise this to ensure it remains fit for purpose.

c. Appoint the Audit and Risk Committee and continue to monitor its effectiveness.

d. Consider and monitor risks associated with achievement of HBRC strategic outcomes.

e. Approve major decisions that may affect HBRC’s risk profile or exposure.

Role of the Finance Audit and Risk Management Committee

3. The Audit and Risk Management Committee is set out in the Terms of Reference adopted by Council at its meeting on 25 February 2015.

Role of the Chief Executive and Executive Management Team

4. Key roles of the Chief Executive and the executive management team relevant to Audit and Risk policy are to:

a. Implement policies on audit and risk management and report on compliance and performance.

b. Identify, evaluate and manage (excluding governance risks) the risks faced by the Organisation.

c. Provide adequate information in a timely manner to Council and its committees on the status of significant risks to which the Organisation is exposed and the controls to manage those risks.

Risk management control system

5. The risk management control system encompasses a number of elements that together facilitate an effective and efficient risk assessment, enabling HBRC to consider a variety of strategic, operational, financial, and commercial risks. These elements include:

a. Policies and procedures

Many of the organisational risks are managed through policies and plans adopted by the Council. These include Regional Plans developed according to relevant legislation, their associated implementation plans, and policies or protocols specific to a particular issue. The policies adopted by Council are implemented and communicated through the Chief Executive to staff. Written procedures support the policies were appropriate.

b. Reporting

Comprehensive reporting is designed to communicate the monitoring of key risks and their controls. Decisions to rectify problems are generally made by staff, but may be at the direction of Council where a significant potential risk is identified.

c. Annual and 10 year planning and budgeting.

The annual and 10 year planning and budgeting processes are used to set objectives, a performance framework through which to monitor progress towards achieving those objectives, develop and communicate work programmes, and allocate resources. A number of the work programmes are designed specifically to mitigate strategic risks. Progress towards meeting annual and 10 year plan objectives is monitored regularly.

d. Risk management framework

This framework helps to facilitate the identification, assessment and ongoing monitoring of risks to which HBRC is exposed. The framework is formally reviewed in accordance with the timelines set out in Table 1 below, with all existing risks reviewed and new and emerging risks added.

e. Risk review programme.

The risk review programme is an important element of the risk management process. Apart from its normal programme of work, each member of the executive management team is responsible for the review of the effectiveness of the risk management framework within HBRC as set out in Table 1 below.

f. Internal audit.

An internal review of risks may be requested by Council or commissioned by the Chief Executive from time to time as they deem appropriate. Such an external review may cover the risk framework and all of the risks to which HBRC is exposed, or may be restricted to specific risks or aspects of risk. This internal audit function may be contracted to an external audit provider.

g Audit of HBRC’s Long Term Plans and Annual Plans

These audits are carried out by Audit NZ on behalf of the Controller and Auditor General.

Review of effectiveness

6. The Chief Executive is responsible for reviewing the effectiveness of HBRC’s risk controls. The frequency and scope of such a review shall be dictated by the Audit and Risk Committee. The review may be required for all or part of HBRC’s activities. The outcome of such a review will be reported to the Audit and Risk Committee.

7. For each risk identified, the Chief Executive will:

· Review the previous risk review and examine HBRC’s record on risk assessment and control.

· Consider HBRC’s future risk profile and consider if current risk control arrangements are being effectively implemented.

8. In making his decision the Chief Executive will consider the following aspects:

a. Control environment:

· HBRC’s objectives and its financial and non-financial targets

· Organisational structure and caliber of the senior management team

· Culture, approach, and resources with respect to the management of risk

· Delegation of authority

· Reporting to Council

b. On-going identification and evaluation of risks:

· Timely identification and assessment of risks

· Prioritisation of risks and the allocation of resources to address areas of high exposure.

c. Information and communication:

· Quality and timeliness of information on risks

· Time it takes for control breakdowns to be recognised or new risks to be identified.

d. Monitoring and corrective action:

· Ability of the organisation to learn from its experiences

· Commitment and speed with which corrective actions are implemented.

Draft Risk Management Policy and Framework

Attachment 1

TABLE 1

RISK MANAGEMENT FRAMEWORK

Responsible Group	Decisions areas	Frequency of review/reporting
Council (through Audit and Risk Committee)	· Organisation risk profile · Top 10 residual risks · Top 10 controls · Significant new or emerging risks · Governance risks	Annually Annually Annually As they arise Annually

Chief Executive (together with Exec Managers)	· Review and monitoring Organisational risks including controls · New and emerging risks reporting to Council	6 monthly As they arise

Group Managers (together with 3rd tier managers)	· Review and monitoring of: - Risks associated with Group’s risks including controls - New and emerging risks within group	6 monthly As they arise

Staff	· Effective management of operational risks through implementation of controls · Reporting new or emerging risks as they arise	Ongoing As they arise

Draft Risk Management Policy and Framework

Attachment 1

Likelihood Table

Name	Full Description	Value
Almost Certain	Occurrence of the event within this 10-yearly LTCCP may be credibly regarded as a ‘real possibility’ i.e. the probability of occurrence is greater than non-occurrence. Documented and frequent incidents. Is likely to occur more than once in this 10-year LTCCP period.	99
Likely	Occurrence of the event within this 10-yearly LTCCP may be credibly regarded as a ‘real possibility’ i.e. the probability of occurrence is similar to non-occurrence. Documented and regular incidents. Is likely to occur once in this 10-year LTCCP period.	65
Unlikely	Occurrence of the event within this 10-yearly LTCCP would be considered as having some potential to occur – ie, a reasonable probability of occurrence over time, but less than the probability of non- occurrence. Documented but infrequent incidents. Has less than 50% chance of occurrence in this 10-year LTCCP period.	25
Highly Unlikely	Whilst possible, occurrence of the event within this 10-yearly LTCCP would be regarded by most people as unlikely i.e. the probability of non-occurrence is somewhat larger than occurrence. Documented but few incidents. Has less than 10% chance of occurrence in this 10-year LTCCP period.	12
Rare	It is not expected that the event would occur within this 10-yearly LTCCP. Occurrence of the event would probably be regarded as unusual - (the probability of occurrence is quite small). Has less than 1% chance of occurrence in this 10 year LTCCP period.	3

Consequence Tables

Financial
Name	Full Description
Level 1	Value of investment(s) decreases by 30%.Loss of cash flow/income or increase in unplanned expenditure of $5m over Note: Language to be appropriate for all sections of council
Level 2	Value of investment(s) decreases by 20%.Loss of cash flow/income or increase in unplanned expenditure of $3m over
Level 3	Value of investment(s) decreases by 10%.Loss of cash flow/income or increase in unplanned expenditure of $2m over
Level 4	Value of investment(s) decreases by 5%.Loss of cash flow/income or increase in unplanned expenditure of $1m over
Level 5	Value of investment(s) decreases by 3%.Loss of cash flow/income or increase in unplanned expenditure of $0.5m over
No Financial Impact	No measurable financial impact

Stakeholders/Reputation

Name

Full Description

Level 1

Extreme dissatisfaction and loss of confidence. Central government investigation and/or statutory management installed. Regulatory action resulting in major prosecution and conviction of council (eg - fine of >$100k).Note: ‘Stakeholder’ means clients, public, industry groups (such as forestry/agriculture), local government bodies, lobby groups, or Iwi.

Level 2

Major loss of stakeholder confidence. Extensive stakeholder dissatisfaction expressed through media resulting in a long period of negative coverage (>2 months). Widespread, unified, coordinated revolt by consent holders and/or ratepayers against fees/conditions. Regulatory action resulting in moderate prosecution and conviction of council (eg - $25-$100k)

Level 3

2-3 stakeholders sectors dissatisfaction expressed through media resulting in a long period of negative coverage (>2 months). Central Government impose statutory sanctions. Regulatory action resulting in prosecution but no conviction.

Level 4

Single stakeholder sector express dissatisfaction through media for up to one month. Central Government – CEO MFE directed by Minister to make enquiries. Individual(s) express dissatisfaction through media or directly.

Level 5

Individual(s) express dissatisfaction through media or directly. Individual(s) refuse to pay fees/rates as a stand against council activities. No significant impact on stakeholders or image

No Impact

No significant impact on stakeholders or image

Operational Capability
Name	Full Description
Level 1	Event results in management diversion from strategic objectives for a period of > 2 months. Delivery of LTCCP outcomes across work area significantly affected for greater than six months. Critically detrimental effects on stakeholders. Long term loss of capability (>2 months).Event results in management diversion from strategic objectives for a period of <2 months.
Level 2	Event results in management diversion from strategic objectives for a period of <2 months. Delivery of LTCCP outcomes across work area significantly affected for up to six months. Moderate detrimental effects on stakeholders. Event results in loss of operational capability for up to 2 months. Event results in management diversion from strategic objectives for a period of a few days.
Level 3	Event results in management diversion from strategic objectives for a period of a few days. Delivery of LTCCP outcomes across work area significantly affected for up to one month. Minor detrimental effects on stakeholders. Event affects limited efficiency or effectiveness of service. Managed internally.
Level 4	Event affects limited efficiency or effectiveness of service. Managed internally. Moderate staff morale problems resulting in some staff resignations but managed through minor restructuring.
Level 5	Event causes minor disruption felt by limited small group of stakeholders. Minor staff morale impact resulting in minor dissention but managed over a short period of time.
No impact	No impact on operational capability

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Internal Audit	7(2)(i) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.