Minutes of a meeting of the Risk and Audit Committee

Date:                                    Wednesday 7 May 2025

Time:                                    9.00am

Venue:

Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER

Present:                              S Maloy – Chair

Cr T Hokianga

Cr J Mackintosh

In Attendance:                 S Young – Group Manager Corporate Services

C Comber – Chief Financial Officer

L Hooper – Team Leader Governance

D Nalder – Acting Risk Manager

O Giraud-Burrell – Quality & Assurance Advisor

A Sandilands – Chief Legal Advisor

D Borrie & C Cramond – Ernst & Young (online for item 4)

P Bicknell – Senior Group Accountant

T O’Shaughnessy – Treasury & Investments Accountant

N Barlow – Acting Team Leader Health, Safety & Wellbeing

N Nicholson – Manager Policy

R Wakelin – Acting Group Manager Integrated Catchments Management

Cr D Roadley – HBRC Wairoa Constituency Councillor (online)

1. Welcome/Karakia /Apologies

The Chair welcomed everyone and Thompson Hokianga opened the meeting with a karakia.

Apologies for absence received from Xan Harding and Neil Kirton.

2. Conflict of interest declarations

There were no conflicts of interest declared.

3.         Confirmation of Minutes of the Risk and Audit Committee held on 12 February 2025

RAC39/25

Resolution Minutes of the Risk and Audit Committee meeting held on Wednesday, 12 February 2025, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record. Mackintosh/Hokianga CARRIED

4.	Audit Plan for the 2024-2025 Annual Report
	Chris Comber introduced the item, which was taken as read, noting that the statutory date by which the Annual Report must be adopted is after the election so the timelines have been adjusted so that Council can adopt it at an extraordinary meeting on 8 October – prior to the 11 October election. David Borrie and Charlie Cramond (EY) noted that there were two low risk issues identified in the pre-audit for follow-up, being asset valuations, their inputs and techniques, and the Cyclone Gabrielle recovery funding timing and alignment to activities.
RAC40/25	Resolution That the Risk and Audit Committee receives and considers the Audit Plan for the 2024-2025 Annual Report. Maloy/Mackintosh CARRIED

5.	Treasury Compliance Report for the period 1 January - 31 March 2025
	Tracey O’Shaughnessy introduced the item, which was taken as read, noting that Council was in compliance with its treasury policies and the expectation that Council’s debt will increase (for NIWE projects) before coming back into line with the original LTP forecast debt profile and ratios by the end of 2027. It was noted that one NIWE claim for reimbursement has been accepted by the Crown to date, and that some of Council’s short term debt is awaiting payment of Cyclone Gabrielle insurance claims by insurers and NEMA.
RAC41/25	Resolution That the Risk and Audit Committee receives and notes the Treasury Compliance Report for the period 1 January - 31 March 2025. Hokianga/Mackintosh CARRIED

6.

Confirmation of 12 February 2025 Public Excluded Minutes

Resolutions

That the Audit and Risk Committee excludes the public from this section of the meeting being Agenda Item 6 – Confirmation of Public Excluded Minutes 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 are:

RAC42/25

General subject of the item to be considered	Rationale for passing this resolution	Grounds under section 48(1) for the passing of the resolution
Operational incidents Data Analytics findings	To prevent information about Council’s critical controls being accessed. The public interest is protected by not allowing the information to be accessed by anyone outside the organisation.	s7(2)(a) Excluding the public is necessary to  protect the privacy of natural persons. s7(2)(j) Excluding the public is necessary to prevent the disclosure or use of official information for improper gain or improper advantage
Legal update	s7(2)(g) Excluding the public is necessary to prevent disclosure of information that is legally privileged.	The matters being discussed may potentially be the subject of litigation and the Council has engaged legal advisors to provide advice on associated issues.

Maloy/Hokianga

CARRIED

7.

May 2025 Risk Management update

Resolutions

That the Risk and Audit Committee excludes the public from this section of the meeting, being Agenda Item 7 – May 2025 Risk Management update 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 are:

RAC43/25

General subject of the item to be considered	Grounds under section 48(1) for the passing of the resolution	Rationale for passing this resolution
May 2025 Risk Management update	s7(2)(f)(ii) Excluding the public is necessary to maintain the effective conduct of public affairs by protecting councillors and/or council employees and contractors/ consultants from improper pressure or harassment. s7(2)(j) Excluding the public is necessary to prevent the disclosure or use of official information for improper gain or improper advantage.	To prevent information about Council’s critical controls being accessed and used maliciously to harm the Council, its systems, employees or elected councllors. The public interest is protected by not allowing the information to be accessed by anyone outside the organisation.

Maloy/Hokianga

CARRIED

8.

May 2025 Legal update

Resolutions

That the Risk and Audit Committee excludes the public from this section of the meeting, being Agenda Item 8 – May 2025 Legal update 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 are:

RAC44/25

General subject of the item to be considered	Grounds under section 48(1) for the passing of the resolution	Rationale for passing the resolution to exclude the public
May 2025 Legal update	s7(2)(g) Excluding the public is necessary to prevent disclosure of information that is legally privileged.	The matters being discussed may potentially be the subject of litigation and the Council has engaged legal advisors to provide advice on associated issues.

Maloy/Hokianga

CARRIED

The meeting went into public excluded session at 9.35am and out of public excluded session at 11.25am

Councillor Thompson Hokianga led the group in offering a closing karakia.

Closure:

There being no further business the Chair declared the meeting closed at 11.27am on Wednesday 7 May 2025.

Signed as a true and correct record.

Date: by Risk & Audit Committee resolution 6 August 2025                   Chair: Stephanie Maloy