Minutes of Finance Audit & Risk Sub-committee

1. Welcome/Apologies/Notices

The Chairman welcomed everyone to the meeting, introducing David Benham as the Independent Member of the Sub-committee – attending for the first time.

2. Conflict of Interest Declarations

There were no conflict of interest declarations.

3. Confirmation of Minutes of the Finance Audit & Risk Sub-Committee Meeting held on 9 November 2015

FIN14/16

Resolution

Minutes of the Finance Audit & Risk Sub-committee Meeting held on Monday, 9 November 2015, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Scott/Wilson

CARRIED

4. Matters Arising from Minutes of the Finance Audit & Risk Sub-committee Meeting held on 9 November 2015

There were no matters arising from the minutes.

Follow-ups from Previous Finance Audit & Risk Sub-committee Meetings

Mrs Lambert briefly updated the Committee on the status of the follow-ups, including a discussion in relation to possible development of a Conflicts of Interest policy for Elected Representatives.

Mr Drury provided additional detail in relation to the follow-ups on the Internal Audit programme and funding, and the insurance relating to liability and defence cover for Elected Representatives.

Discussion around the insurance programme traversed the local authority shared insurance and the level of ‘wreck removal’ coverage. Mrs Lambert advised that Harbourmaster and related insurances are being investigate

FIN15/16

Resolution

1. That the Finance, Audit and Risk Sub-committee receives and notes the report “Follow-ups from Previous Finance Audit and Risk Sub-committee Meetings”.

Wilson/Scott

CARRIED

Audit Management Letter Covering Annual Report Year Ending 30 June 2015

Mr Drury introduced Mr Stephen Lucy, Audit NZ, who ran through the key issues contained in his management letter for the 2014-15 Annual Report.

Discussions traversed:

· Napier Port financial reporting and financial year dates, and the agreement of the Port to provide a second set of reporting financials to HBRIC/HBRC as opposed to changing the balance date

· Council’s investment in HBRIC Ltd; implications of RWSS not going ahead and the possible sale of the IP to another company

· Investment properties and their valuations

· ACC leasehold land cashflows investment

· Management comments have been provided by Mr Drury, and integrated into the document by Audit NZ according to Audit NZ normal processes

· Conflict of interest processes and management, and compliance with legislation and law by Elected Representatives

· Leglislative compliance and managing that through a documented process for Executive /Senior Managers

FIN16/16

Resolution

1. That the Finance, Audit and Risk Sub-committee receives the Audit Management Letter from Audit New Zealand which covers the Annual Report for year ending 30 June 2015 report and notes Management comments.

Scott/Benham

CARRIED

Secretarial note: Mr Lucy provided information about the focus of this year’s upcoming audit, which will focus on investments, specifically around water

Charter for the Finance Audit & Risk Sub-committee

Mrs Lambert outlined the amendments to the previous draft Charter.

Amendments agreed are:

· addition of bullet point under Risk Management; being “receiving and recommending for approval, Council’s insurance arrangements”

· addition of a bullet under Risk Management; being “Reviewing of management delegations”

· addition of bullet point under Expenditure Policies; being “be advised of any breaches of the liability management policy”

· addition of bullet point under Management is responsible for; being “provision of information and material requested by the committee, subject to relevant legislation”

FIN17/16

Resolutions

1. That the Finance Audit & Risk Sub-committee receives and confirms the Charter.

2. The Finance Audit & Risk Sub-committee recommends that the Corporate & Strategic Committee

2.1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community.

2.2. Approves the HBRC Finance Audit & Risk Sub-committee Charter as amended.

Barker/Benham

CARRIED

2016 Work Programme

Mr Drury outlined the work programme included in the Agenda.

FIN18/16

Resolution

1. That the Finance, Audit and Risk Sub-committee receives and considers the “2016 Work Programme” report.

Hewitt/Barker

CARRIED

Internal Audit – Business Continuity & Disaster Recovery Plan

FIN19/16

Resolutions

1. That the Sub-committee excludes the public from this section of the meeting, being Agenda Item 9 Internal Audit – Business Continuity & Disaster Recovery Plan with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being:

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 – Business Continuity & Disaster Recovery Plan	7(2)(a) 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 protect the privacy of natural persons.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

2. That Mr John Dixon and Ms Sophie Hay from Price Waterhouse Cooper attend for this item as the auditors who prepared the Business Continuity & Disaster Recovery Plan Audit Report.

Scott/Wilson

CARRIED

10.

Cyber Security

FIN20/16

Resolutions

1. That the Sub-committee excludes the public from this section of the meeting, being Agenda Item 10 Cyber Security with the general subject of the item to be considered while the public is excluded; the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED

REASON FOR PASSING THIS RESOLUTION

GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION

Cyber Security

7(2)(c)(ii) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of that 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 and would be likely otherwise to damage the public interest.

7(2)(j) 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 prevent the disclosure or use of official information for improper gain or improper advantage.

The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

2. That Mr John Dixon from PriceWaterhouse Coopers attends for this item to provide expert Audit opinion as requested.

Scott/Wilson

CARRIED

11.

Risk Assessment and Management

FIN21/16

Resolutions

1. That the Sub-committee excludes the public from this section of the meeting, being Agenda Item 11 Risk Assessment and Management with the general subject of the item to be considered while the public is excluded; the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED

REASON FOR PASSING THIS RESOLUTION

GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION

Risk Assessment and Management

The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

2. That Mr John Dixon from PriceWaterhouse Coopers attends for this item to provide expert Audit opinion as requested.

Scott/Wilson

CARRIED

12.

Confirmation of the Public Excluded Minutes of the Finance, Audit and Risk Sub-committee Meeting Held 9 November 2015

FIN22/16

Resolution

That the Sub-committee excludes the public from this section of the meeting being Confirmation of Public Excluded Minutes Agenda Item 12 with the general subject of the item to be considered while the public is excluded; the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Independent Member	7(2)(a) 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 protect the privacy of natural persons	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Scott/Wilson

CARRIED

The meeting went into public excluded session at 11.04am and out of public excluded session at 12.25pm

Closure:

There being no further business the Chairman declared the meeting closed at 12.25pm on Thursday 11 February 2016.

Signed as a true and correct record.

DATE: ................................................ CHAIRMAN: ...............................................