MINUTES OF A meeting of the
Finance Audit & Risk Sub-committee
Date: Wednesday 10 May 2017
Time: 9.00am
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Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
P Bailey
R Barker
D Benham
A J Dick
In Attendance: G Woodham – Interim Chief Executive
P Drury – Group Manager Corporate Services
M Collings – Corporate Accountant
M des Landes – Management Accountant
T Kilkolly - Accountant
J Buttery – Governance Administration Assistant
The Chairman welcomed everyone to the meeting, and recognised that this would be Mr Paul Drury’s last Finance Audit & Risk meeting, thanking him for his service.
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 31 January 2017
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Minutes of the Finance Audit & Risk Sub-committee meeting held on Tuesday, 31 January 2017, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record. CARRIED |
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Follow-ups from Previous Finance Audit & Risk Sub-committee Meetings |
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Melissa des Landes spoke to the 6-monthly Risk Management Update follow-up, advising staff are going to create a more meaningful report for presentation to the September sub-committee meeting. The report will include a section on compliance risks and should be more comprehensive, with the Executive team able to devote more time to it. The importance not only of identifying the risks but also seeing the way that the risks are trending, either up or down, was emphasised. The other follow-up items are covered by items on the agenda. |
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That the Finance, Audit & Risk Sub-committee receives and notes the report “Follow-ups from Previous Finance Audit & Risk Sub-committee Meetings”. CARRIED |
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Progress on HB LASS Tender for Internal Audit Provision |
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Six organisations tendered for Internal Audit provision for all five councils, and have been narrowed down to three preferred suppliers. References have been sought from those ahead of their presenting to the next HB LASS Ltd meeting. Once the successful supplier has been selected, individual contracts will be entered into with each Council for its specific programme of Internal Audit. It is expected that there will be economies of scale, to get better value with one provider to all councils. The decision of which areas will be audited is delegated to the Finance Audit & Risk Sub-committee. |
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That the Finance, Audit & Risk Sub-committee: 1. Receives and notes the “Progress on HB LASS Tender for Internal Audit Provision” report 2. Notes that the Hawke’s Bay Regional Council Chief Executive has delegation to enter into agreements as a member of HB LASS Ltd on behalf of Hawke’s Bay Regional Council, including the provision of internal audit services. 3. Requests that staff report to a future Corporate and Strategic Committee meeting on the Internal Audit process, terms of engagement with HB LASS Ltd and participating Councils, and advantages that flow through to this Council. CARRIED |
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Operational Efficiency Review |
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Mr Greg Woodham spoke to his report, which has been sent to Councillors and the Executive team in draft form, explaining that he was engaged as a consultant to carry out the review and finished the work as Interim Chief Executive. He felt that this was an advantage, as in the CE role had come to realise that some issues are more complicated than originally thought; also that some of the findings require further scrutiny. Some of his concerns regarding strategic matters have already been addressed with the Council’s recent Strategic Review. Mr Woodham advised that he has received feedback and completed some rewriting of the report which is now in its final form for presentation to the 24 May 2017 Corporate and Strategic Committee meeting. |
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1. That the Finance Audit & Risk Sub-committee receives and notes the “Operational Efficiency Review” staff report, and specifically notes the agreed Scope of the review as attached. 2. That the Operational Efficiency Review report is referred to the Corporate and Strategic Committee, with recommendations for actions arising from the report. CARRIED |
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Capital Structure Review |
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Mr Paul Drury explained that this item advises of the review and brings the two outstanding matters to the sub-committee’s attention for discussion. Discussion traversed the structure of the Capital Structure Review Advisory Committee and the lines of reporting, the magnitude of the issues to be examined and a suggestion that more than two elected representatives are required to adequately represent Council on the advisory committee. Any changes will be decided by Council not this committee. It was suggested that Finance Audit & Risk invite Council to reflect on the structure. There does need to be some clarity of the role of the Capital Structure Review Advisory Committee. |
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1. That the Finance Audit & Risk Subcommittee receives and notes the “Capital Structure Review” staff report. 2. The Finance Audit and Risk Sub-committee recommends that the Corporate and Strategic Committee: 2.1. Amends the Capital Structure Review Scope and Process document to include the following statement: 2.1.1. Examine the arguments for and against retaining ownership of Napier Port in HBRIC Ltd or moving to direct ownership, with such arguments to include but not be limited to tax considerations. 2.2. Reconsiders the membership of the Capital Structure Review Advisory Committee. CARRIED |
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2017 Sub-Committee Work Programme |
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Mr Paul Drury introduced the item, advising that the Auditor will attend the September sub-committee meeting. |
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That the Finance, Audit and Risk Sub-committee receives and notes the “2017 Sub-committee Work Programme” report. CARRIED |
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Proposed 2017-18 Council Insurance Programme |
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1. That Council excludes the public from this section of the meeting, being Agenda Item 9 Proposed 2017-18 Council Insurance Programme 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:
2. That Matt Meacham, representing JLT insurance brokers, is in attendance for this item to enable provision of detailed responses to Committee queries. CARRIED |
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Internal Audit Report - Taxation Compliance Review |
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Resolution That Council excludes the public from this section of the meeting, being Agenda Item 10 Internal Audit Report - Taxation Compliance Review 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:
CARRIED |
The meeting went into public excluded session at 10.37am and out of public excluded session at 12.18pm
Closure:
There being no further business the Chairman declared the meeting closed at 12.20pm on Wednesday 10 May 2017.
Signed as a true and correct record.
DATE: ................................................ CHAIRMAN: ...............................................