Audit and Risk Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of the Audit and Risk Committee held in Room 1, Level 26, 135 Albert Street, Auckland on Wednesday, 29 July 2015 at 1.35pm.

 

present

 

Chairperson

Cr Bill Cashmore

 

 

 

Members

Cr Cameron Brewer

Until 3.25pm, Item C3

 

 

 

Mr Paul Conder, CA

 

 

 

 

Cr Sharon Stewart, QSM

 

 

 

 

Mr Roy Tiffin, FCA

 

 

 

 

Cr Sir John Walker, KNZM, CBE

From 1.51pm, Item 10

 

 

 

Cr Penny Webster

 

 

 

 

ABSENT

 

 

Mayor Len Brown

 

 

 

Deputy Mayor Penny Hulse

 

 

 

ALSO PRESENT

 

 

Cr Linda Cooper

 

 

 

Cr Calum Penrose

 

 

 

Cr George Wood

 

 

 

Member Greg Presland, Waitakere Ranges Local Board

 

 

 

 


Audit and Risk Committee

29 July 2015

 

 

Secretarial note:          Cr Sir John Walker resigned as Chairperson of the Audit and Risk Committee.

                                    Cr Dr Cathy Casey, Deputy Chairperson, resigned from the Audit and Risk Committee on 28 July 2015.

                                    Cr Bill Cashmore’s appointment as Chairperson of the Audit and Risk Committee by His Worship the Mayor was ratified by the Governing Body on 30 July 2015.

 

1          Apologies

 

Resolution number AUD/2015/23

MOVED by Chairperson WB Cashmore, seconded by Cr MP Webster:  

That the Audit and Risk Committee:

a)         accept the apologies from Mayor LCM Brown and Deputy Mayor PA Hulse for absence on council business and from Cr JG Walker for lateness.

CARRIED

 

2          Declaration of Interest

 

There were no declarations of interest.

 

3          Confirmation of Minutes

 

Resolution number AUD/2015/24

MOVED by Member R Tiffin, seconded by Cr SL Stewart:  

That the Audit and Risk Committee:

a)         confirm the ordinary minutes of its meeting, held on Wednesday, 20 May 2015, including the confidential section, as a true and correct record.

CARRIED

 

4          Petitions

 

There were no petitions.

 

5          Public Input

 

There was no public input.

 

6          Local Board Input

 

There was no local board input.

 

7          Extraordinary Business

 

There was no extraordinary business.

 

8          Notices of Motion

 

There were no notices of motion.


 

9

Office of the Auditor-General and Audit New Zealand briefing

 

Sarah Lineham – Sector Manager Local Government from the Office of the Auditor-General and Jo Smaill – Audit Director from Audit NZ addressed the meeting regarding the agenda report and responded to questions.

 

 

Resolution number AUD/2015/25

MOVED by Chairperson WB Cashmore, seconded by Cr MP Webster:  

That the Audit and Risk Committee:

a)      receive the verbal update from Sarah Lineham – Sector Manager Local Government from the Office of the Auditor-General and Jo Smaill – Audit Director from Audit NZ.

CARRIED

 

Cr George Wood entered the meeting at 1.49pm.

Cr Sir John Walker entered the meeting at 1.51pm.

 

10

Audit New Zealand report on LTP consultation document

 

Sarah Lineham – Sector Manager Local Government from the Office of the Auditor-General and Jo Smaill – Audit Director from Audit NZ assisted Matthew Walker in responding to questions.

 

 

Resolution number AUD/2015/26

MOVED by Chairperson WB Cashmore, seconded by Member P Conder:  

That the Audit and Risk Committee:

a)      receive the Audit New Zealand report on the audit of Auckland Council’s Consultation Document for the 2015-2025 Long–term Plan.

CARRIED

 

Cr George Wood left the meeting at 2.09pm.

 

11

Management Report Interim Audit 2015

 

Resolution number AUD/2015/27

MOVED by Chairperson WB Cashmore, seconded by Member R Tiffin:  

That the Audit and Risk Committee:

a)      receive the interim management report from Audit New Zealand on the findings arising from their planning and first interim audit visits of Auckland Council for the year ended 30 June 2015.

b)      note the responses to the issues identified by Audit New Zealand.

CARRIED

 


 

12

2015 Pro forma Group Financial Statements

 

Resolution number AUD/2015/28

MOVED by Cr MP Webster, seconded by Cr CE Brewer:  

That the Audit and Risk Committee:

a)         receive the 2015 Pro forma group financial statements report.

b)      approve the 2015 Pro forma group financial statements for Auckland Council           and Group, subject to the Pro forma being updated to reflect the feedback           provided by Mr Roy Tiffin and Mr Paul Conder and delegate to them authority to           approve any amendments resulting from consultation with Audit New           Zealand.

CARRIED

 

13

Update on Targeted rates / reserves

 

Greg Presland, member of the Waitakere Ranges Local Board presented to the committee on the Te Henga Quarry Aftercare Fund and treatment of reserve fund and tabled supporting information. A copy has been placed on the official minutes and is available on the Auckland Council website as a minutes attachment.

 

 

Resolution number AUD/2015/29

MOVED by Chairperson WB Cashmore, seconded by Cr JG Walker:  

That the Audit and Risk Committee:

a)      receive this Update on Targeted rates/reserves report.

CARRIED

 

Attachments

a     29 July 2015 - Audit and Risk Committee - Item 13 - Update on Targeted rates/reserves - Te Henga Quarry Aftercare Fund and treatment of reserve fund

 


14

Compliance (Do it Right) Programme

 

Resolution number AUD/2015/30

MOVED by Chairperson WB Cashmore, seconded by Member P Conder:  

That the Audit and Risk Committee:

a)      note that, on 10 July 2015, Executive Lead Team endorsed the Compliance (Do it Right) Programme and implementation roadmap, resources and investment.

CARRIED

 

15

Update on Enterprise Risk Management and Insurance Activities

 

Resolution number AUD/2015/31

MOVED by Chairperson WB Cashmore, seconded by Cr MP Webster:  

That the Audit and Risk Committee:

a)      receive the Update on Enterprise Risk Management and Insurance activities report.

CARRIED

 


 

16

Council Controlled Organisation's Risk Report

 

Resolution number AUD/2015/32

MOVED by Chairperson WB Cashmore, seconded by Member P Conder:  

That the Audit and Risk Committee:

a)      receive an update on the risks reported by Council-Controlled Organisations.

CARRIED

 

 

17        Consideration of Extraordinary Items

 

 

There was no consideration of extraordinary items.  

 

Cr Linda Cooper left the meeting at 3.18pm.

 

18        Procedural motion to exclude the public

Resolution number AUD/2015/33

MOVED by Cr MP Webster, seconded by Cr CE Brewer:  

That the Audit and Risk Committee:

a)      exclude the public from the following part(s) of the proceedings of this meeting.

b)      agree that Sarah Lineham - Sector Manager Local Government from the Office of the Auditor-General be permitted to remain for Confidential Items C1 to C3 after the public has been excluded, because of her knowledge of matters being discussed, which will help the Audit and Risk Committee in its decision-making.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

 

C1       Council-Controlled Organisations Risk Management Information

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the report contains discussions on risks that may jeopardise the business operations of the entity.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

C2       Update on Integrity and  Investigation  Activity 

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 6.

s6(a) - The making available of the information would be likely to prejudice the maintenance of the law, including the prevention, investigation, and detection of offences and the right to a fair trial.

In particular, the report contains operational information regarding investigation and other activity , which if released may compromise the effective delivery of our integrity and investigative services.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 6.

 

C3       Update on Internal Audit Activities

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(c)(ii) - The withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to damage the public interest.

In particular, the report contains financial and operational information and details of internal audit activity, which if released may jeopardise the effective delivery of Internal Audit services.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

The text of these resolutions is made available to the public who are present at the meeting and form part of the minutes of the meeting.

CARRIED

 

3.18pm            The public was excluded.

 

Resolutions in relation to the confidential items are recorded in the confidential section of these minutes and are not publicly available.

 

3.37pm            The public was re-admitted.

 

 

 

restatementS

 

It was resolved while the public was excluded:

 

C1

Council-Controlled Organisations Risk Management Information

 

This item was withdrawn.

 

C2

Update on Integrity and  Investigation  Activity 

 

That the Audit and Risk Committee:

a)      receive the Update on Integrity and Investigation Activity report.  

b)      agree that the Update on Integrity and Investigation Activity report remains confidential.

 

C3

Update on Internal Audit Activities

 

That the Audit and Risk Committee:

a)      receive the Update on Internal Audit Activities report.

b)      approve the detailed audit programme of work for the six months to December 2015.

c)      note that the detailed audit programme for the six months to 30 June 2016 will be tabled for approval at the December 2015 meeting of the committee.

d)      note the progress made by the Internal Audit function in delivering on agreed “Internal Audit Strategy 2016-18” initiatives for the period February to June 2015.

e)      agree that the Update on Internal Audit Activities report remain confidential.

 

 

 

3.37 pm                                              The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

 

CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Audit and Risk Committee HELD ON

 

 

 

DATE:.........................................................................

 

 

 

CHAIRPERSON:........................................................