UNCONFIRMED MINUTESAudit and Risk Subcommittee

30 June 2021

Audit and Risk Subcommittee Minutes

 

Meeting held in the Council Chamber

36 Water Street, Whangārei

on Wednesday 30 June 2021, commencing at 10.00am

 

 

Tuhinga/Present:

Chairperson,  Colin Kitchen

Councillor Amy Macdonald  (via audio visual link)

Councillor Joce Yeoman  (via audio visual link)

Councillor Rick Stolwerk

Ex-Officio Penny Smart

Independent Advisor Stuart Henderson

 

I Tae Mai/In Attendance:

Full Meeting

GM - Corporate Services

Chief Executive Officer

PA - Corporate Services

Finance Manager

Corporate Services Champion

Part Meeting

Management Accountant

Assistant Management Accountant

Peter Gulliver partner for Deloitte Limited

 

The Chair declared the meeting open at 10.05am.

Ngā Mahi Whakapai/Housekeeping (Item 1.0)

Ngā whakapahā/Apologies (Item 2.0)

 

Moved (Smart/Yeoman)

That the apology from Independent Audit & Risk Advisor Danny Tuato'o for non-attendance be received.

Carried

Nga whakapuakanga/Declarations of Conflicts of Interest (Item 3.0)

It was advised that members should make declarations item-by-item as the meeting progressed.

 

Confirmation of Minutes - Audit and Risk Subcommittee  Minutes 31 March 2021 (Item 4.1)

Report from Judith Graham, Corporate Excellence P/A

Moved (Smart/Yeoman)

That the minutes of the Audit & Risk Subcommittee meeting held on 31 March 2021, be confirmed as a true and correct record.

Carried

 

Receipt of Action Sheet (Item 5.1)

Report from Judith Graham, Corporate Excellence P/A

Moved (Stolwerk/Smart)

That the action sheet be received.

Carried

 

2021-31 Long Term Plan  Audit Report (Item 6.1)

Report from Judith Graham, Corporate Excellence P/A

Moved (Stolwerk/Smart)

That the report ‘2021-31 Long Term Plan  Audit Report’ by Judith Graham, Corporate Excellence P/A and dated 18 June 2021, be received.

Carried

Deloitte partner Peter Gulliver gave a quick overview of the 2021-31 Long Term Plan Audit report and answered questions. Informed the Audit & Risk subcommittee that council was in a good financial position and showed resilience.

 

Thanks was given to Acting Strategy Policy and Planning Manager, Finance Manager, Management Accountant and their teams for all the hard work and working alongside with the auditors which was critical to the success of the audit.

 

 

2020-21 Annual Report: Timetable and Deloitte Planning Report (Item 6.2)

Report from Simon Crabb, Finance Manager

Moved (Stolwerk/Smart)

That the report ‘2020-21 Annual Report: Timetable and Deloitte Planning Report’ by Simon Crabb, Finance Manager and dated 8 June 2021, be received.

Carried

Deloitte partner Peter Gulliver gave a quick overview of Northland Regional Council audit plan and the key areas of the audit focus.

 

It was noted that a section of the annual audit report is completed as a group audit. Marsden Maritime Holding audited by EY and Northland Inc Limited audited by Deloitte on behalf of the OAG.

 

It was acknowledged that Northland Regional Council demonstrated best practice by having the annual rate setting/service agreements for the three TA’s reviewed by a legal independent.

 

Action point: Annual Audit report to be presented at next Audit & Risk Subcommittee meeting 29 September 2021.

 

Internal Audit Update - Counter-Fraud Gap Analysis Report and Far North District Council Rating Review Report (Item 6.3)

Report from Simon Crabb, Finance Manager

Moved (Stolwerk/Smart)

That the report ‘Internal Audit Update - Counter-Fraud Gap Analysis Report and Far North District Council Rating Review Report’ by Simon Crabb, Finance Manager and dated 28 May 2021, be received.

Carried

Secretarial Note: Power outage at 11.05 caused audio visual loss. The meeting adjourned at 11.06am and reconvened at 11.16am. Audio visual reconnected to Councillor Amy Macdonald at 11.15am and  audio visual reconnected to Councillor Joce Yeoman at 11.20am.

Finance Manager spoke to the Audit & Risk Subcommittee on the report findings and the action plan. This included completing a fraud and corruption risk assessment, strengthening the management of third parties.

The proposed 2021/2022 Audit programme was reviewed and it was agreed to take out Property Management review and Procurement review to utilise the year two internal audit budget to implement the recommended fraud and corruption risk assessment. Deloitte to be engaged initially to complete a risk assessment with a focus on councils corruption specific risk.

Deloitte partner Peter Gulliver spoke to the subcommittee regarding Far North District Council (FNDC) rating audit findings. A number of high risks were identified which are noted on page 11 and 12 of the Rates review – FNDC report dated June 2021.

Action: Deloitte partner Peter Gulliver to send a letter to New Zealand OAG regarding its finding on behalf of Northland Regional Council.

Action: GM Corporate Service to request in the quarterly formal report from FNDC that section be included in the report on progress with implementing the audit recommendations.

 

Risk Management Activity Update (Item 6.4)

Report from Kym Ace, Corporate Systems Champion

Moved (Stolwerk/Kitchen)

1.    That the report ‘Risk Management Activity Update’ by Kym Ace, Corporate Systems Champion and dated 2 June 2021, be received.

2.    That the Subcommittee reviews the registers.

Carried

Corporate Services Champion gave an update on the top twenty risk and answered questions.  Subcommittee members had concerns that the top risk was staff workload.

 

Action:  Set up a one hour workshop to workshop the top twenty risks.

 

 

Kaupapa ā Roto/Business with Public Excluded (Item 7.0)

Moved (Stolwerk/Kitchen)

 

1.              That the public be excluded from the proceedings of this meeting to consider confidential matters.

2.              That the general subject of the matters to be considered whilst the public is excluded, the reasons for passing this resolution in relation to this matter, and the specific grounds under the Local Government Official Information and Meetings Act 1987 for the passing of this resolution, are as follows:

Item No.

Item Issue

Reasons/Grounds

7.1

Confirmation of Confidential Minutes - Audit & Risk Subcommittee  - 31 March 2021

The public conduct of the proceedings would be likely to result in disclosure of information, as stated in the open section of the meeting -.

3.              That the Independent Advisor be permitted to stay during business with the public excluded.

Carried

Whakamutunga (Conclusion)

The meeting concluded at 12.04pm.