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Resolutions
That Hawke’s Bay Regional Council:
1. Receives and
considers the Audit and Risk Sub-committee review staff report.
2. 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 or persons likely to have an interest
in the decision.
3. Receives and considers
the Independent Advice on Hawke’s Bay Regional Council’s Audit
and Risk Committee Memorandum authored by Doug Craig, RDC Group
Ltd.
4. Adopts the following
Term of Reference for the Risk and Audit Committee resulting from the
independent advice, including any amendments agreed by Council.
5. Confirms the
appointments of Councillors Xan Harding, Jock
Mackintosh, Neil Kirton and Thompson Hokianga to the Risk and Audit
Committee.
6. Seeks nominations and
votes on the appointment of the Deputy Chair from amongst the elected members
of the Risk and Audit Committee.
6.1. Councillor
Kirton nominates Councillor Harding for deputy chair, seconded by Councillor
Williams.
6.2. Appoints Councillor
Xan Harding as Risk and Audit Committee Deputy Chair
7. Appoints
independent member, Stephanie Maloy, as Risk and Audit Committee Chairperson.
Kirton/Hokianga
CARRIED
Risk
and Audit Committee
Terms
of Reference
Adopted by Hawke’s Bay Regional
Council resolution 30 August 2023
1.
Purpose
The purpose
of the Risk and Audit Committee is to provide advice and recommend actions,
responses and changes to the Council about risk management,
assurance activities, governance oversight and internal control matters,
including external reporting and audit matters. Specifically this includes
the following matters:
1.1.
The robustness of Council’s risk management systems,
policies, practice and assurance processes
1.2.
The appropriateness of controls to safeguard the Council’s
financial and non-financial assets, the integrity of internal and external
reporting and accountability arrangements
1.3.
Review the Council’s revenue and expenditure policies,
amongst others, and the effectiveness of those policies in ensuring limited
risk is generated
1.4.
Assurance on the independence and adequacy of internal and
external audit functions
1.5.
Council’s compliance with applicable laws, regulations,
standards and best practice guidelines.
2.
Specific Responsibilities
The Risk and Audit Committee shall have responsibility and
authority to:
2.1.
Review whether Council management has a current and comprehensive
risk management framework and associated procedures for effective
identification and management of the council’s significant risks in
place.
2.2.
Undertake periodic monitoring of corporate risk assessment, and
the internal controls instituted in response to such risks.
2.3.
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.
2.4.
Consider the appropriateness of the Council’s existing
accounting policies and principles and any proposed changes.
2.5.
Satisfy itself that the financial statements and statements of
service performance are supported by adequate management sign-off and
adequate internal controls.
2.6.
Confirm that processes are in place to ensure that financial
information included in Council’s Annual Report is consistent with the
signed financial statements.
2.7.
Confirm the terms of appointment and engagement of external
auditors, including the nature and scope of the audit, timetable, and fees.
2.8.
Receive the internal and external audit report(s) and review
actions to be taken by management on significant issues and recommendations
raised within the report(s).
2.9.
Enquire of internal and external auditors 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.
2.10.
Conduct a Committee members-only session with the
Council’s appointed Auditors to discuss any matters that the auditors
wish to bring to the Committee’s attention and/or any issues of
independence.
2.11.
Review and recommend to Council the approach to insurance
strategy and placements as part of its risk management practices.
3.
Accountability
3.1.
The Risk and Audit Committee is not delegated to make any
decisions unless by specific delegation of Council.
The Risk and Audit Committee is delegated by Council to:
3.2.
Obtain external legal or independent professional advice within
approved budgets in the satisfaction of its responsibilities and duties.
3.3.
Secure the attendance at meetings of third parties with relevant
experience and expertise as appropriate.
3.4.
Receive all of the information and documentation needed or
requested to fulfil its responsibilities and duties, subject to applicable
legislation.
3.5.
Ensure that recommendations in audit management reports are
considered and, if appropriate, actioned by management
3.6.
Review the objectives and scope of the internal risk and audit
functions, and ensure those objectives are aligned with Council’s
overall risk management framework
3.7.
Assess the performance of the internal risk and audit functions
and seek assurance that these are adequately resourced and have the
appropriate authority and standing within Council.
4.
Membership
4.1.
Up to four members of Council, appointed by Council being:
councillors Xan Harding, Jock Mackintosh, Neil Kirton and Thompson Hokianga
4.2.
Up to two independent members appointed by Council.
4.3.
The Committee may appoint up to two specialist advisors to
advise on special matters within the scope of the work of the Committee.
5.
Chairperson
5.1
An independent member of the Committee shall be appointed by the
Council to be Chairperson; being: Stephanie Maloy.
5.2
An elected member of the Council shall be appointed the Deputy
Chairperson; being Councillor Xan Harding. In the event the Chairperson
cannot attend a meeting of the Committee the Deputy Chairperson shall chair
the meeting.
6.
Meeting Frequency
As a minimum the Committee shall meet quarterly. Additional
meetings may be called at the discretion of the Chairperson or as required by
Council. The Committee shall meet at least once a year to consider the
performance of the Committee, its membership and any other matters relating
to the Committees performance and effectiveness.
7.
Quorum
The quorum at any meeting of the Sub-committee shall be 3
members including the Chair or Deputy Chair.
8.
Officers Responsible
8.1.
Chief Executive
8.2.
Group Manager Corporate Services.
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