Meeting of the Finance Audit & Risk Sub-committee
Date: Tuesday 31 January 2017
Time: 10.00am
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Venue:
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Council Chamber
Hawke's Bay Regional Council
159 Dalton Street
NAPIER
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Agenda
Item Subject Page
1. Welcome/Notices/Apologies
2. Conflict
of Interest Declarations
3. Confirmation of
Minutes of the Finance Audit & Risk Sub-committee held on 20 September 2016
Decision Items
4. Six
Monthly Report on Risk Assessment Management 3
Information or Performance Monitoring
5. Health
and Safety Update Report for the Period 1 June - 31 December 2016 33
6. Audit
NZ Management Report for HBRC Annual Report for Year Ending 30 June 2016 41
7. 2017
Sub-committee Work Programme 65
Decision Items (Public Excluded)
8. Appointment
of an Independent Member of the Finance, Audit & Risk Sub-committee 67
9. Internal
Audit Report 69
HAWKE’S BAY REGIONAL COUNCIL
Finance
Audit & Risk Sub-committee
Tuesday 31 January 2017
Subject: Six Monthly Report on
Risk Assessment Management
Reason for Report
1. To provide the
Subcommittee with a six monthly review of the risks that Council is exposed to
and the mitigation actions in place to manage Council’s risk profile.
Background
2. Council last considered
the risk management report at the 15 June 2016 Corporate and Strategic
Committee meeting. This paper presents the six monthly update, appended to this
paper as Attachment 1. Council uses the “Quantate” model for
risk assessment and management.
Decision Making
Process
3. Council is required to make every decision in accordance with the
requirements of the Local Government Act 2002 (the Act). Staff have
assessed the requirements in relation to this item and have concluded:
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 persons
potentially affected by this decision are staff or persons in the community
that rely on Council services.
3.5. Options for Council in regard to this paper are to defer or not
consider risks that this Council is exposed to. This paper adopts the option
of Council reviewing the risk profile.
3.6. The decision is not inconsistent with an existing policy or plan.
3.7. 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.
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Recommendations
1. That the Finance,
Audit and Risk Sub-committee:
1.1 Considers and
receives the “HBRC Risk Assessment and Management Report”.
1.2 Advises staff of
specific risks where it believes the current level of risk is unacceptable to
Council, and requests that staff report back to the May Sub-committee meeting
with options and associated resources required to modify the risk profile.
2. The Finance, Audit
and Risk Sub-committee recommends that the Corporate and Strategic Committee:
2.1. Agrees
the decisions to be made are not significant under the criteria contained in
Councils’ 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. Confirms
the Sub-committee’s confidence that the risk assessment process
outlined in the HBRC Risk Assessment and Management Report is an appropriate
process to identify and assess organizational risks.
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Authored by:
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Melissa des
Landes
Management Accountant
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Approved by:
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Paul Drury
Group Manager Corporate Services
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Attachment/s
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Risk
Management Review
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Attachment 1
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HAWKE’S BAY REGIONAL COUNCIL
Finance
Audit & Risk Sub-committee
Tuesday 31 January 2017
Subject: Health
and Safety Update Report for the Period 1 June - 31 December 2016
Reason for Report
1. This report provides the Committee with an update of key health and
safety information for the period 1 June 2016 through 31 December 2016.
Background
2. An updated copy of the Health and Safety Reporting Dashboard
is appended as Attachment 1 for the Committee’s information.
3. Also appended is a revised Health and Safety Risk Overview which
outlines the key risks that staff face in the course of their work for Council
and measures taken to mitigate the risk. Attachment 2.
4. A key development for health and safety since the last report is the
decision by ACC to terminate the Workplace Safety Management Practices (WSMP)
programme next year. This programme has run for a number of years and Council
has been at the tertiary level for the last 6 years. The programme outcome
provides a discount on ACC levies depending on results, which in
Council’s case was the top 20% discount. It will likely be replaced with
an experience rating model which will compare the accident results for similar
organisations (councils in our case) and apply a discount or loading depending
on the results of that comparison.
5. The move to have contractors to all 5 local councils
‘pre-qualified’ in terms of their health and safety documentation,
is progressing with all contractors contacted and informed that they will need
to register with SiteWise if they wish to continue working for any of the 5
councils in Hawke’s Bay. They will need to register and meet the requirements
by 30 June 2017.
6. Health and safety is a standing item on the weekly Executive agenda
and prompts timely discussion on any relevant health and safety issue.
Decision Making
Process
7. Council is
required to make every decision in accordance with Part 6 Sub-Part 1, of the
Local Government Act 2002 (the Act). 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.
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Recommendation
1. That the Corporate and Strategic Committee
receives and notes the “Health and Safety Update Report for the
Period 1 June – 31 December 2016”.
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Authored by:
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Viv Moule
Human Resources Manager
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Approved by:
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Andrew Newman
Chief Executive
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Attachment/s
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1
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Health &
Safety Reporting Dashboard
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2
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Risk Register
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Health
& Safety Reporting Dashboard
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Attachment 1
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Risk Register
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Attachment 2
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HAWKE’S BAY REGIONAL COUNCIL
Finance
Audit & Risk Sub-committee
Tuesday 31 January 2017
Subject: Audit NZ Management
Report for HBRC Annual Report for Year Ending 30 June 2016
Reason for Report
1. Now that Audit NZ has completed the Audit of the Annual Report for
Year End 30 June 2016, the final management letter from Audit has been
received and is provided for discussion by the subcommittee.
Background
2. At its meeting on 20 September 2016 the subcommittee discussed the
major issues covered by this audit with Stephen Lucy from Audit NZ. At
that time he indicated to the subcommittee that he would make himself available
to present the final management letter covering this financial year.
3. The final management letter is appended as Attachment 1 and
Stephen Lucy will be in attendance at this meeting to discuss any significant
issues covered in their management letter.
4. The audited Annual Report was adopted by Council resolution at an
Extraordinary meeting on Thursday 13 October 2016.
Decision Making
Process
5. Staff have
assessed the requirements of the Local Government Act 2002 in relation to this
item and have concluded that, as this report is for information only, the
decision making provisions do not apply.
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Recommendation
That the Finance, Audit and Risk
Sub-committee receives and notes the “Audit NZ Management Report for
HBRC Annual Report for Year Ending 30 June 2016”.
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Authored by:
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Manton
Collings
Corporate Accountant
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Approved by:
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Paul Drury
Group Manager Corporate Services
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Attachment/s
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1
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Audit NZ
Management Report
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Audit
NZ Management Report
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Attachment 1
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HAWKE’S BAY REGIONAL COUNCIL
Finance
Audit & Risk Sub-committee
Tuesday 31 January 2017
Subject: 2017 Sub-committee Work
Programme
Reason for Report
1. In order to ensure the sub-committee’s ability to effectively
and efficiently fulfill its role and responsibilities, an overall suggested
work programme is provided following.
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Task
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Item
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Scheduled / Status
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Internal Audits
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Fraud
Detection and Prevention Review Report
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January
FA&R meeting
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Event
Response Review
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May FA&R
meeting
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Taxation
Review
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May FA&R
meeting
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Decide on
Internal Audit Programme for 2017/18
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September
FA&R meeting
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Risk Assessment & Management
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Reporting on
risks (6-monthly) affecting Council
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January
& September FA&R meetings
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Review
previous 6-month Risk Assessment to note changes / improvements / areas that
require attention
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Sub-committee
carry out detailed review of individual Group’s Risk Management (as
part of the programmed reviews of activities)
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Insurance
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Council’s
proposed 2017-18 Insurance programme
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Council’s
insurance broker to present at May FA&R meeting
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Annual Report
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Discussion
on the major issues (if any) in the audit report.
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Auditor
scheduled to attend September FA&R meeting
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Discussion
on Audit Management Letter
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Auditor
scheduled to attend December FA&R meeting
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Decision Making Process
2. 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.
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Recommendation
That the Finance, Audit and Risk
Sub-committee receives and notes the “2017 Sub-committee Work
Programme” report.
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Authored by:
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Melissa des
Landes
Management Accountant
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Approved by:
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Paul Drury
Group Manager Corporate Services
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Attachment/s
There are no
attachments for this report.
HAWKE’S BAY REGIONAL COUNCIL
Finance
Audit & Risk Sub-committee
Tuesday 31 January 2017
Subject: Appointment of an
Independent Member of the Finance, Audit & Risk Sub-committee
That Council excludes the public
from this section of the meeting, being Agenda Item 9 Appointment of an
Independent Member of the Finance, Audit & Risk Sub-committee 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:
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GENERAL SUBJECT OF THE ITEM TO BE
CONSIDERED
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REASON FOR PASSING THIS RESOLUTION
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GROUNDS UNDER SECTION 48(1) FOR THE
PASSING OF THE RESOLUTION
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Appointment of an Independent Member of the Finance, Audit
& Risk Sub-committee
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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.
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The Council is specified, in the First Schedule to this
Act, as a body to which the Act applies.
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Authored by:
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Leeanne
Hooper
Governance Manager
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Paul Drury
Group Manager Corporate Services
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Liz Lambert
Group Manager External Relations
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Approved by:
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Andrew Newman
Chief Executive
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HAWKE’S BAY REGIONAL
COUNCIL
Finance
Audit & Risk Sub-committee
Tuesday 31 January 2017
Subject: Internal Audit Report
That Council excludes the public
from this section of the meeting, being Agenda Item 10 Internal Audit Report
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:
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GENERAL SUBJECT OF THE ITEM TO BE
CONSIDERED
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REASON FOR PASSING THIS RESOLUTION
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GROUNDS UNDER SECTION 48(1) FOR THE
PASSING OF THE RESOLUTION
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Internal Audit Report
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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.
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The Council is specified, in the First Schedule to this
Act, as a body to which the Act applies.
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Authored by:
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Leeanne
Hooper
Governance Manager
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Paul Drury
Group Manager Corporate Services
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Approved by:
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Andrew Newman
Chief Executive
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