I hereby give notice that an extraordinary meeting of the Governing Body will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Monday, 27 September 2021

11.30am

This meeting will be held remotely and can be viewed on the Auckland Council website
https://councillive.aucklandcouncil.govt.nz/

 

 

Tira Kāwana / Governing Body

 

OPEN AGENDA

 

 

 

 

MEMBERSHIP

 

Mayor

Hon Phil Goff, CNZM, JP

 

Deputy Mayor

Deputy Mayor Cr Bill Cashmore

 

Councillors

Cr Josephine Bartley

Cr Richard Hills

 

Cr Dr Cathy Casey

Cr Tracy Mulholland

 

Cr Fa’anana Efeso Collins

Cr Daniel Newman, JP

 

Cr Pippa Coom

Cr Greg Sayers

 

Cr Linda Cooper, JP

Cr Desley Simpson, JP

 

Cr Angela Dalton

Cr Sharon Stewart, QSM

 

Cr Chris Darby

Cr Wayne Walker

 

Cr Alf Filipaina

Cr John Watson

 

Cr Christine Fletcher, QSO

Cr Paul Young

 

Cr Shane Henderson

 

 

(Quorum 11 members)

 

 

 

Sarndra O'Toole

Kaiarataki Kapa Tohutohu Mana Whakahaere / Team Leader Governance Advisors

 

21 September 2021

 

Contact Telephone: (09) 890 8152

Email: sarndra.otoole@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 



 

Terms of Reference

 

Those powers which cannot legally be delegated:

 

(a)        the power to make a rate

(b)        the power to make a bylaw

(c)        the power to borrow money, or purchase or dispose of assets, other than in accordance with the Long-Term Plan

(d)        the power to adopt a long-term plan, annual plan, or annual report

(e)        the power to appoint a chief executive

(f)         the power to adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement

(g)        the power to adopt a remuneration and employment policy

 

Additional responsibilities retained by the Governing Body:

 

(h)        approval of long-term plan or annual plan consultation documents, supporting information and consultation process prior to consultation

(i)         approval of a draft bylaw prior to consultation

(j)         resolutions required to be made by a local authority under the Local Electoral Act 2001, including the appointment of electoral officer

(k)        adoption of, and amendment to, the Committee Terms of Reference, Standing Orders and Code of Conduct

(l)         relationships with the Independent Māori Statutory Board, including the funding agreement and appointments to committees

(m)       overview of and decisions relating to any CCO review including the implementation of any resulting changes to CCOs

(n)        oversight of work programmes of all committees of the governing body.

 

 

 

Code of conduct

 

For information relating to Auckland Council’s elected members code of conduct, please refer to this link on the Auckland Council website - https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/elected-members-remuneration-declarations-interest/Pages/elected-members-code-conduct.aspx

 

 


Exclusion of the public – who needs to leave the meeting

 

Members of the public

 

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

 

Those who are not members of the public

 

General principles

 

·       Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

·       Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

·       Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

·       In any case of doubt, the ruling of the chairperson is final.

 

Members of the meeting

 

·       The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

·       However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

·       All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

 

Independent Māori Statutory Board

 

·       Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·       Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

 

Staff

 

·       All staff supporting the meeting (administrative, senior management) remain.

·       Other staff who need to because of their role may remain.

 

Local Board members

 

·       Local Board members who need to hear the matter being discussed in order to perform their role may remain.  This will usually be if the matter affects, or is relevant to, a particular Local Board area.

 

Council Controlled Organisations

 

·       Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

 

 


Governing Body

27 September 2021

 

 

ITEM   TABLE OF CONTENTS            PAGE

1          Affirmation                                                                                7

2          Apologies                                                                                 7

3          Declaration of Interest                                          7

4          Petitions                                                                 7  

5          Public Input                                                           7

6          Local Board Input                                                 7

7          Extraordinary Business                                       7

8          Preparation of the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021                                                               9

9          Consideration of Extraordinary Items

PUBLIC EXCLUDED

10        Procedural Motion to Exclude the Public                           19

C1       CONFIDENTIAL: Office of the Auditor-General briefing                                                                 19

C2       CONFIDENTIAL: Adoption of the Auckland Council Annual Report 2020/2021 and the Summary Annual Report 2020/2021                 19


1          Affirmation

His Worship the Mayor will read the affirmation.

 

2          Apologies

At the close of the agenda no apologies had been received.

 

3          Declaration of Interest

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

 

4          Petitions

There is no petitions section.

 

5          Public Input

There is no public input section.

 

6          Local Board Input

There is no local board input section.

 

7          Extraordinary Business

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

(a)        The local authority by resolution so decides; and

(b)        The presiding member explains at the meeting, at a time when it is open to the public,-

(i)         The reason why the item is not on the agenda; and

(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“Where an item is not on the agenda for a meeting,-

(a)        That item may be discussed at that meeting if-

(i)         That item is a minor matter relating to the general business of the local authority; and

 (ii)       the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”


Governing Body

27 September 2021

 

 

Preparation of the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021

File No.: CP2021/13105

 

  

 

 

Te take mō te pūrongo

Purpose of the report

1.       To inform the members of the basis for preparation of the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021 (annual reports) and the process followed.

2.       To provide transparency over the annual reports, which will be presented in the confidential section of this meeting.

 

Whakarāpopototanga matua

Executive summary

3.       The Local Government Act 2002 requires Auckland Council to prepare and adopt an annual report and a summary of the annual report each year.

4.       The annual reports, covering the year to 30 June 2021, have been prepared by Auckland Council staff and audited by Audit New Zealand on behalf of the Auditor-General. The Auditor-General’s representatives will attend this Governing Body meeting for the adoption of the annual reports and may wish to address the Governing Body on the audit of the annual reports and other matters of interest during the confidential section of this meeting.

5.       The annual reports compare and comment on the performance of Auckland Council and the Auckland Council Group against the budgets and operating targets set in the amended 10-Year Budget 2018-2028 and the Emergency Budget 2020/2021.

6.       At its meeting on 13 September 2021, the Audit and Risk Committee reviewed the annual reports and the preparation processes and recommended the annual reports for adoption by the Governing Body (Attachment A).

7.       At its meeting on 16 September 2021, the Finance and Performance Committee reviewed and confirmed that the annual reports fairly reflected the financial and operating performance of the group for the year ended 30 June 2021 and recommended them for adoption by the Governing Body (Attachment B).

8.       All matters raised by the Audit and Risk Committee and the Finance and Performance Committee in relation to the annual report content have been resolved.

9.


 

          There are no significant outstanding audit or process issues relating to the annual reports.

 

Ngā tūtohunga

Recommendation/s

That the Governing Body:

a)      note the confirmation by the Audit and Risk Committee that the audit process, in respect of the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021, has been completed satisfactorily

b)      note the Finance and Performance Committee reviewed and confirmed that the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021 fairly reflect the financial and operating performance of the group and recommended them for adoption by the Governing Body

c)       note the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021 will be discussed in the confidential section of this meeting.

 

Horopaki

Context

10.     Section 98 of the Local Government Act 2002 requires Auckland Council to prepare, adopt and publish an annual report and a summary annual report within four months following the financial year end.

11.     As an issuer of debt on the NZX, Auckland Council is subject to the NZX listing rules. This requires the release of unaudited group primary financial statements and commentary on changes from the prior year, within 60 days of the financial year end. In addition, the NZX listing rules require the audited annual report to be released no later than three months from the financial year end.

Annual report contents

12.     The annual reports detail the activities and performance of the Auckland Council Group. They include performance results for the group against planned levels of performance set in the amended 10-year Budget 2018-2028 and the Emergency Budget 2020/2021. The summary annual report presents the major matters dealt with in the annual report.

13.     The annual reports cover all activities of the council, council-controlled organisations, subsidiaries, joint ventures and associated entities.

14.     The annual reports consist of four separate volumes and a summary:

·        Volume 1: an overview and a summary of service performance against year three of the amended 10-year Budget 2018-2028 and the Emergency Budget 2020/2021, material issues facing the council, and financial and service performance of each group of activity

·        Volume 2: a summary of local board achievements and their financial performance against the Emergency Budget 2020/2021

·        Volume 3: detailed consolidated statutory financial statements for the group and the council, as well as the group’s consolidated funding impact statement with financial commentary against the Emergency Budget 2020/2021

·        Volume 4: a summary of the group’s response to climate change risk

·        Summary annual report: a financial and non-financial performance overview, summary financial statements, material issues, an introduction to the groups of activities.

15.     The annual reports, except Volume 4, have been audited by Audit New Zealand on behalf of the Auditor-General. Volume 4 was reviewed by Audit New Zealand, but no opinion has been expressed on it.

Tātaritanga me ngā tohutohu

Analysis and advice

16.     The unaudited Auckland Council Group 2020/2021 primary financial statements and commentary were released via the NZX on 27 August 2021 following recommendations and approvals by the Audit and Risk Committee, the Finance and Performance Committee chair and deputy chair under delegation, the chief executive and the mayor.

17.     The annual reports and the audit were completed following the preliminary NZX release.

18.     On 13 September 2021 the Audit and Risk Committee reviewed the annual reports, as well as the council’s process and controls undertaken to prepare them. The committee received feedback on the audit from Audit New Zealand and the Deputy Auditor-General and made a recommendation for adoption of the annual reports (Attachment A).

19.     On 16 September 2021 the Finance and Performance Committee noted the recommendation from the Audit and Risk Committee relating to the annual reports. The Finance and Performance Committee reviewed and confirmed that the annual reports fairly reflected the financial and operating performance, financial position and cash flows of the group for the year ended 30 June 2021 (Attachment B).

20.     Since these meetings, the annual reports have undergone final editing and review by council staff and Audit New Zealand.

Tauākī whakaaweawe āhuarangi

Climate impact statement

21.      This committee paper relates to financial and non-financial statutory reporting. No decision is sought in this paper that has a direct impact on the group’s greenhouse gas emissions nor the group’s approach to preparing for climate change.

22.     However, it is acknowledged that the activities undertaken by the group and reported on within the annual report have the potential to be impacted by climate change and can also reinforce or weaken our climate action response.

23.     Climate risk disclosures included in Volume 4 play a key role in how external organisations direct capital flow towards climate positive solutions and investments. Reporting of the group’s response to climate change risk holds the group publicly accountable, and ensures the business maintains their focus on addressing climate change risk at all levels across the group.

24.     The preparation of Volume 4 using the Task Force for Climate-related Financial Disclosures (TCFD) framework represents global best-practice in climate disclosure. It aligns with the government’s plan for mandatory TCFD disclosures from 2023 and provides an example for other local government entities seeking to disclose their approach to managing climate risk.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

25.     The annual reports reflect the results of the group for the year ended 30 June 2021. The council-controlled organisations (CCOs) and Ports of Auckland Limited are involved in the preparation of this information, and have reviewed any content relating to them.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

26.     Volume 2 includes a section featuring the achievements in each local board area. Local boards were engaged to collect and review this information and each chair has prepared a message which is included in their respective annual reports, and has approved the content.

Tauākī whakaaweawe Māori

Māori impact statement

27.     The annual reports cover all aspects of the group’s governance and public accountability. They include commentary on the group’s contribution to outcomes for Māori, the role of the Independent Māori Statutory Board and the council’s Ngā Mātārae- Māori Outcomes department.

Ngā ritenga ā-pūtea

Financial implications

28.     There are no financial implications directly arising from the information contained in the report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

29.     The following risks and mitigations have been identified:

 

Risk

Mitigation

Breach of confidentiality

 

The information contained within the annual reports may be released to the public prior to its release to the NZX.

 

All Auckland Council, CCO and Ports of Auckland Limited (POAL) employees who are involved in the preparation and review of the annual reports have been briefed on confidentiality requirements.

Events subsequent to balance date may not be disclosed

 

Significant events may occur between the balance date and approval date and might not be known to the preparers of the annual report, thus go undisclosed.

The group financial controller has formally requested council management, CCOs and POAL confirm whether there are any events subsequent to balance date which might require disclosure.

 

CCO and POAL statutory financial statements have been reviewed for disclosure of subsequent events.

Delay in issue of audit report

 

There may be a delay in issuing of the audit report due to unresolved audit matters. At the time of writing this report we were awaiting clearance on various final changes to the financial statements and annual report wording.

The council’s Financial Control and Group Performance units have been working with Audit New Zealand to address technical issues early, however some matters cannot be cleared by Audit New Zealand until they have audited the relevant information.

 

Ngā koringa ā-muri

Next steps

30.     The Governing Body will discuss the annual reports in confidence with staff, the Deputy Auditor-General and Audit New Zealand, after which it will adopt the annual reports.

31.     The Deputy Auditor-General will issue the audit opinion following the adoption of the annual reports by the Governing Body.

32.     The annual reports will then be released to the NZX and published on our website. Printed copies will be made available at libraries and service centres.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Resolutions from the Audit and Risk Committee 13 September 2021

15

b

Resolutions from the Finance and Performance Commttee 16 September 2021

17

      

Ngā kaihaina

Signatories

Authors

Tracy Gers - Group Accounting & Reporting Manager

Karuna Dahya - Manager Group Performance Reporting

Francis Caetano - Group Financial Controller

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

John Bishop - Group Treasurer

Peter Gudsell - Group Chief Financial Officer

Jim Stabback - Chief Executive

 


Governing Body

27 September 2021

 

 

PDF Creator


Governing Body

27 September 2021

 

 

PDF Creator 


Governing Body

27 September 2021

 

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Governing Body

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

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       CONFIDENTIAL: Office of the Auditor-General briefing

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 financial information that can only be made public following the release of the annual report to the NZX on 28 September 2021.

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       CONFIDENTIAL: Adoption of the Auckland Council Annual Report 2020/2021 and the Summary Annual Report 2020/2021

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 financial information that forms part of the Auckland Council Group Annual Report 2020/2021 and can only be made public following the release of the annual report to the NZX on 28 September 2021.

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.