Audit and Risk Committee
OPEN MINUTES
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Minutes of a meeting of the Audit and Risk Committee held in Room 1, Level 26, 135 Albert Street, Auckland on Wednesday, 5 December 2018 at 10.32am.
Chairperson |
Sue Sheldon, CNZM |
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Deputy Chairperson |
Deputy Mayor Cr Bill Cashmore |
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Members |
Cr Ross Clow |
Until 1.25pm, Item 13 |
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Paul Conder |
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Cr Richard Hills |
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Bruce Robertson |
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ABSENT
Ex-officio |
Mayor Hon Phil Goff, CNZM, JP |
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IMSB Chair David Taipari |
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IN ATTENDANCE
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Greg Schollum, Deputy Auditor-General, Office of the Auditor-General |
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Sarah Markley, Sector Manager, Local Government, Office of the Auditor-General |
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Jo Smaill, Audit Director, Audit New Zealand |
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Claudia Brink, Audit Manager, Audit New Zealand |
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Audit and Risk Committee 05 December 2018 |
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Resolution number AUD/2018/70 MOVED by Chairperson S Sheldon, seconded by Cr R Hills: That the Audit and Risk Committee: a) accept the apologies from Mayor P Goff for absence on council business, IMSB Chair D Taipari for absence and Cr R Clow for early departure on council business. |
There were no declarations of interest.
Resolution number AUD/2018/71 MOVED by Chairperson S Sheldon, seconded by Cr R Clow: That the Audit and Risk Committee: a) confirm the ordinary minutes of its meeting, held on Thursday, 13 September 2018, including the confidential section, as a true and correct record. |
There were no petitions.
There was no public input.
There was no local board input.
There was no extraordinary business.
8 |
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Resolution number AUD/2018/72 MOVED by Chairperson S Sheldon, seconded by Deputy Chairperson BC Cashmore: That the Audit and Risk Committee: a) adopt its revised forward work programme. |
9 |
Final management report on the audit of Auckland Council for the year ended 30 June 2018 |
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Resolution number AUD/2018/73 MOVED by Chairperson S Sheldon, seconded by Member B Robertson: That the Audit and Risk Committee: a) note the issues identified by the Office of the Auditor-General and the council’s responses to the matters raised in the final audit for the year ended 30 June 2018. |
10 |
Approval of the Audit New Zealand Review Engagement Letter for the six months ended 31 December 2018 and Audit Plan for the year ended 30 June 2019 |
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Resolution number AUD/2018/74 MOVED by Member B Robertson, seconded by Deputy Chairperson BC Cashmore: That the Audit and Risk Committee: a) approve the draft Audit New Zealand Review Engagement Letter for the six months ending 31 December 2018 and draft Audit Plan for the 30 June 2019 audit of the annual report. b) request Audit New Zealand to issue the final letters. c) delegate the mayor and chief executive to sign the finalised letters. |
Note: The chairperson accorded precedence to the confidential items at this stage.
Resolution number AUD/2018/75 MOVED by Cr R Clow, seconded by Member P Conder: That the Audit and Risk Committee: a) exclude the public from the following part(s) of the proceedings of this meeting. b) agree that Greg Schollum, Deputy Auditor-General, Office of the Auditor-General, Sarah Markley, Sector Manager, Local Government, Office of the Auditor-General, Jo Smaill, Audit Director, Audit New Zealand and Claudia Brink, Audit Manager, Audit New Zealand be permitted to remain for all of the confidential items after the public has been excluded, because of their knowledge of matters 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 Financial process status update for the Auckland Council group New Zealand Stock Exchange Announcement and Interim Report for the six months ended 31 December 2018
C2 Audit of Building and Resource Consents
C3 Approval of the Auckland Council group pro forma 31 December 2018 Interim Report
C4 Office of the Auditor-General and Audit New Zealand briefing
C5 Legal Risk Report
C6 Council-controlled Organisations - Risk Update - December 2018
C7 Progress against the Integrity and Fraud Assurance Strategy
C8 Update on internal audit and integrity activity
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. |
10.52am 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.
1.00pm The public was re-admitted.
restatementS
It was resolved while the public was excluded:
C1 |
Financial process status update for the Auckland Council group New Zealand Stock Exchange Announcement and Interim Report for the six months ended 31 December 2018 |
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Resolution number AUD/2018/76 MOVED by Member P Conder, seconded by Cr R Hills: That the Audit and Risk Committee: a) note the information contained in this financial process status update for the Auckland Council group New Zealand Stock Exchange announcement and Interim Report for the half year ended 31 December 2018. b) endorse the responses to the enquiries by Audit New Zealand on the Audit and Risk Committee’s oversight of the management of fraud. Restatement c) agree that the report and attachments will remain confidential, but the decisions be restated in the open minutes. |
C2 |
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Resolution number AUD/2018/77 MOVED by Cr R Clow, seconded by Member P Conder: That the Audit and Risk Committee: a) note the work that has been undertaken to respond to the resource consent and building consent processing time errors reported by Audit New Zealand b) note that the Internal Audit department will continue to perform monthly audits until December 2018, and report the results of those to this committee and further assess the value of continuing with these audits. Restatement c) agree that the decisions be restated in the open minutes, but that the Audit of Building and Resource Consents departments report remain confidential. |
C3 |
Approval of the Auckland Council group pro forma 31 December 2018 Interim Report |
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Resolution number AUD/2018/78 MOVED by Chairperson S Sheldon, seconded by Member B Robertson: That the Audit and Risk Committee: a) approve the 31 December 2018 pro forma Interim Report, including relevant accounting policies for the Auckland Council group, subject to any required changes identified by management and Audit New Zealand during the half year close and auditor review. b) request committee members give feedback to staff by 14 January 2019 and delegate the authority to the committee chair to approve any subsequent amendments. Restatement c) agree that the report and attachment will remain confidential, but the decisions be restated in the open minutes. |
C4 |
Office of the Auditor-General and Audit New Zealand briefing |
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Resolution number AUD/2018/79 MOVED by Deputy Chairperson BC Cashmore, seconded by Member B Robertson: That the Audit and Risk Committee: a) receive the information provided by the Auditor-General’s representatives, Greg Schollum, Deputy Auditor-General, Jo Smaill, Audit Director, Audit New Zealand and Sarah Markley, Sector Manager – Local Government, Office of the Auditor-General and thank them for their attendance. Restatement: b) agree the report and attachments will remain confidential, but the decisions be restated in the open minutes. |
C5 |
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Resolution number AUD/2018/80 MOVED by Chairperson S Sheldon, seconded by Member P Conder: That the Audit and Risk Committee: a) note the Legal Risk report. Restatement b) agree that the decisions be restated in the open minutes, but the Legal Risk report remains confidential. |
C6 |
Council-controlled Organisations - Risk Update - December 2018 |
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Resolution number AUD/2018/81 MOVED by Chairperson S Sheldon, seconded by Deputy Chairperson BC Cashmore: That the Audit and Risk Committee: a) note the written risk updates provided by Auckland Transport, Panuku Development Auckland Limited, Auckland Tourism, Events and Economic Development Limited and Watercare Services Limited. b) note the risk update presented by Watercare Services Limited. Restatement c) agree that the decisions be restated in open minutes but that this report and attachments remain confidential. |
C7 |
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Resolution number AUD/2018/82 MOVED by Member B Robertson, seconded by Cr R Clow: That the Audit and Risk Committee: a) note the progress made against the Integrity and Fraud Assurance Strategy. Restatement b) agree that the decision be restated in the open minutes but that this report remains confidential. |
C8 |
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Resolution number AUD/2018/83 MOVED by Cr R Clow, seconded by Member P Conder: That the Audit and Risk Committee: a) note the progress made by the Internal Audit and Integrity units of the Internal Audit department in delivering against the internal audit programme. Restatement b) agree that the decision be restated in the open minutes, but the Internal Audit and Integrity Progress report remains confidential. |
Note: Considerations of items in the open part of the meeting continued at this time.
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Resolution number AUD/2018/84 MOVED by Chairperson S Sheldon, seconded by Cr R Hills: That the Audit and Risk Committee: a) note the update on enterprise risk management. b) note the update on the Auckland Council group’s insurance activities. c) note the update on the 36th America’s Cup Programme. |
12 |
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Resolution number AUD/2018/85 MOVED by Member P Conder, seconded by Member B Robertson: That the Audit and Risk Committee: a) receive the report on Auckland Council’s health and safety performance for the first quarter of the 2018/2019 financial year. b) refer this report to the Governing Body and draw the attention of elected members to their duties under the Health and Safety at Work Act 2015. c) note that this report will be provided to all local boards for their information. |
13 |
Fit for Purpose Community Assets Risk Deep Dive - October 2018 |
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Cr R Clow retired from the meeting at 1.25pm.
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Resolution number AUD/2018/86 MOVED by Chairperson S Sheldon, seconded by Deputy Chairperson BC Cashmore: That the Audit and Risk Committee: a) note the outcome of the deep dive of fit for purpose community assets risk. |
14 |
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Resolution number AUD/2018/87 MOVED by Chairperson S Sheldon, seconded by Deputy Chairperson BC Cashmore: That the Audit and Risk Committee: a) receive this report. |
15 |
Annual Report on the performance of the Audit and Risk Committee |
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Resolution number AUD/2018/88 MOVED by Deputy Chairperson BC Cashmore, seconded by Member B Robertson: That the Audit and Risk Committee: a) receive this annual report on the Performance of the Audit and Risk Committee. b) recommend that the chief executive place the report on the next available agenda of the governing body. |
16 Consideration of Extraordinary Items
There was no consideration of extraordinary items.
1.40pm 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:........................................................