I hereby give notice that an ordinary meeting of the Audit and Risk Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 15 September 2020

1.00pm

This meeting will be held remotely via Skype for Business.  A recording or written summary will be uploaded to the Auckland Council website.

 

Komiti Tātari me te Mātai Raru Tūpono /

Audit and Risk Committee

 

OPEN AGENDA

 

 

 

 

MEMBERSHIP

 

Chairperson

Sue Sheldon, CNZM

 

Deputy Chairperson

Cr Daniel Newman, JP

 

Members

Deputy Mayor Cr Bill Cashmore

 

 

Paul Conder

 

 

Cr Shane Henderson

 

 

Bruce Robertson

 

 

 

 

Ex-officio

Mayor Hon Phil Goff, CNZM, JP

 

 

IMSB Chair David Taipari

 

 

 

 

 

 

(Quorum 3 members)

 

Quorum must include two Governing Body members

 

Mike Giddey

Kaitohutohu Mana Whakahaere /

Governance Advisor

 

9 September 2020

 

Contact Telephone: (09) 890 8143

Email: mike.giddey@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 



Terms of Reference

 

Purpose

 

The purpose of the Audit and Risk Committee is to assist and advise the Governing Body in discharging its responsibility and ownership of governance, risk management, and internal control.

 

·         The committee will review the effectiveness of the following aspects of governance, risk management and internal control:

·         enterprise risk management (ERM) across the Auckland Council group

·         internal and external audit and assurance

·         health, safety and wellbeing

·         business continuity and resilience

·         integrity and investigations

·         monitoring of compliance with laws and regulations

·         significant projects, programmes of work and procurement focussing on the appropriate management of risk

·         oversight of preparation of the LTP, Annual Report, and other external financial reports required by statute.

 

The scope of the committee includes the oversight of risk management and assurance across the council’s CCOs and the council with respect to risk that is significant to the Auckland Council group.

 

To perform his or her role effectively, each committee member must develop and maintain his or her skills and knowledge, including an understanding of the committee’s responsibilities, and of the council’s business, operations and risks.

 

Decision-Making Powers

 

The committee has no decision-making powers other than those in these terms of reference. 

 

The committee may request expert advice through the chief executive where necessary.

 

The committee may make recommendations to the Governing Body and / or chief executive.

 

Tenure

 

External members will be appointed for an initial period not exceeding three years, after which they will be eligible for extension or re-appointment, after a formal review of their performance, and have not already served two terms on the committee. Councillors appointed to the committee will automatically cease to hold office at the time of the local authority triennial elections. They may be eligible for re-appointment post those elections if they are returned to office and have not already served two terms on the committee.

 

The chief executive, and the senior management team members will not be members of the committee.

The members, taken collectively, will have a broad range of skills and experience relevant to the operations of the council. At least one member of the committee should have accounting or related financial management experience, with an understanding of accounting and auditing standards in a public sector environment.

 


 

Committee’s responsibilities

 

The committee’s responsibilities are detailed below.

 

Forward Work Programme

 

The committee will agree and approve annually a forward work programme – which will consist of in-depth briefings and reviews of specific significant risks and assurance strategies, as contained in the ERM “Top Risks” or Auckland Council’s work plan.

 

Risk management

 

·         Review, approve and monitor the implementation of the ERM policy, framework and strategy (including risks pertaining to CCOs that are significant to the Auckland Council group).

·         Review and approve the council’s “risk appetite” statement.

·         Review the effectiveness of risk management and internal control systems including all material financial, operational, compliance and other material controls. This includes legislative compliance (including Health and Safety), significant projects and programmes of work, and significant procurement.

·         Review risk management reports identifying new and / or emerging risks, and any subsequent changes to the ERM “Top Risk” register.

 

Assurance

 

·         Review annually the Assurance Charter – which confirms the authority, independence and scope of the function.

·         Review and approve annually and monitor the implementation of the three-year Assurance Strategy and 12 month detailed Internal Audit Plan.

·         Review the co-ordination between the risk and assurance functions – including the integration of the council’s ERM risk profile with the Internal Audit programme. This includes assurance over all material financial, operational, compliance and other material controls. This includes legislative compliance (including Health and Safety), significant projects and programmes of work, and significant procurement.

·         Review the reports of the assurance functions dealing with findings, conclusions and recommendations (including assurance over risks pertaining to CCOs that are significant to the Auckland Council group)

·         Review and monitor management’s responsiveness to the findings and recommendations – enquiring into the reasons that any recommendation is not acted upon.

 

Fraud and Integrity

 

·         Review and approve annually, and monitor the implementation of, the Assurance Strategy, including the fraud and integrity aspects, including a detailed work programme.

·         Review annually the ‘Speak Up’ and whistleblowing procedures and ensure that arrangements are in place by which staff, may, in confidence, raise concerns about possible improprieties in matters of financial reporting, financial control or any other matters, and that there is proportionate and independent investigation of such matters and appropriate follow-up action.

·         Review the procedures in relation to the prevention, detection, reporting and investigation of bribery and fraud.

·         Review and monitor policy and process to manage conflicts of interest amongst elected members, local board members, management, staff, consultants and contractors.

·         Review reports from the Risk, Assurance, Integrity and Investigations, external audit and management related to whistle blower, ethics, bribery and fraud related incidents.

 

 


 

Statutory Reporting

 

Review and monitor the integrity of the Long-term Plan, interim and annual report including statutory financial statements and any other formal announcements relating to the council’s financial performance, focussing particularly on:

 

·         compliance with, and the appropriate application of, relevant accounting policies, practices and accounting standards

·         compliance with applicable legal requirements relevant to statutory reporting

·         the consistency of application of accounting policies, across reporting periods, and the Auckland Council group

·         changes to accounting policies and practices that may affect the way that accounts are presented

·         any decisions involving significant judgement, estimation or uncertainty

·         the extent to which financial statements are affected by any unusual transactions and the way they are disclosed

·         the disclosure of contingent liabilities and contingent assets

·         the clarity of disclosures generally

·         the basis for the adoption of the going concern assumption

·         significant adjustments resulting from the audit.

 

External Audit

 

·         Discuss with the external auditor before the audit commences:

o   the nature, scope and fees of the external audit

o   areas of audit focus

o   error and materiality levels.

·         Review with the external auditors representations required by elected members and senior management, including representations as to the fraud and integrity control environment.

·         Review the external auditors management letter and management responses, and inquire into reasons for any recommendations not acted upon.

·         Where required, the chair may ask a senior representative of the Office of the Auditor General to attend the committee meetings to discuss the office’s plans, findings and other matters of mutual interest.

 

Interaction with Council Controlled Organisations

 

Other committees dealing with CCO matters may refer matters to the Audit and Risk Committee for review and advice.

 

This committee will enquire to ensure adequate processes at a governance level exist to identify and manage risks within a CCO.  Where an identified risk may impact on Auckland Council or the wider group, the committee will also ensure that all affected entities are aware of and appropriately managing the risk.

 

The Head of Assurance and the Chief Risk Officer are responsible for monitoring CCO risk and internal audit strategies with respect to risks and CCO risks that are significant to the Auckland Council group.

 

Annual Report on the work of the committee

 

The chair of the committee will submit a written review of the performance of the committee to the chief executive on an annual basis. The review will summarise the activities of the committee and how it has contributed to the council’s governance and strategic objectives. The chief executive will place the report on the next available agenda of the governing body.


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.

 

 

 


Audit and Risk Committee

15 September 2020

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        9

2          Declaration of Interest                                                                                                   9

3          Confirmation of Minutes                                                                                               9

4          Petitions                                                                                                                          9  

5          Public Input                                                                                                                    9

6          Local Board Input                                                                                                          9

7          Extraordinary Business                                                                                              10

8          Forward Work Programme                                                                                         11

9          Auckland Council Top Risk Quarterly Update - September 2020                          21

10        Review of property rationalisation process                                                             63

11        Health, Safety and Wellbeing update - August 2020                                             113

12        Assurance Strategy 2019-22, Assurance Plan 2020-21 and Assurance Services Charter                                                                                                                        123  

13        Consideration of Extraordinary Items 

PUBLIC EXCLUDED

14        Procedural Motion to Exclude the Public                                                               139

C1       CONFIDENTIAL:  Council-controlled organisations' audit and financial risk updates                                                                                                                                     139

C2       CONFIDENTIAL:  Draft Annual Green Bond Report 2020                                     140

C3       CONFIDENTIAL:  Auckland Council Group 30 June 2020 NZX preliminary release and update on the 2019/2020 annual report                                                           140

C4       CONFIDENTIAL:  Assurance Services Activity Update                                        140

C5       CONFIDENTIAL:  Office of the Auditor-General and Audit New Zealand briefing 141  

 


1          Apologies

 

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

 

 

2          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.

 

 

3          Confirmation of Minutes

 

That the Audit and Risk Committee:

a)         confirm the ordinary minutes of its meeting, held on Monday, 24 August 2020, including the confidential section, as a true and correct record.

 

 

4          Petitions

 

At the close of the agenda no requests to present petitions had been received.

 

 

5          Public Input

 

Standing Order 7.7 provides for Public Input.  Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

 

At the close of the agenda no requests for public input had been received.

 

 

6          Local Board Input

 

Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

 

This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.

 

At the close of the agenda no requests for local board input had been received.

 


 

 

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.”

 


Audit and Risk Committee

15 September 2020

 

Forward Work Programme

File No.: CP2020/12272

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To review and approve the Audit and Risk Committee’s three-year forward work programme (Attachment A).

Whakarāpopototanga matua

Executive summary

2.       In accordance with good practice, the committee reviews the forward programme at each meeting to ensure it can be adapted to council’s risk profile changes and that it remains relevant to the needs of the committee.

3.       The legal risk report has been deferred from the September meeting to the December meeting. This is because:

·    there are no significant changes to legal risk profile further to the May report requiring reporting

·    any specific compliance and/or legal matters relating to the annual report sign off will be included in the financial papers going to this committee in September

·    the Legal Risk report is tabled with this committee on a six-monthly basis. The last report to this committee was in May 2020.

4.       A new item has been added to the work programme in October 2020. There will be a report with respect to the committee’s role in providing assurance on management of risk arising from the implementation of the recommendations from the CCO review.

 

Ngā tūtohunga

Recommendation/s

That the Audit and Risk Committee:

a)      approve the change in the timing of the legal risk report, approve the inclusion of a new item on the management of risks arising from the implementation of the recommendations of the CCO review, and adopt the updated Audit and Risk Committee work programme.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme 2020-2022 Updated 15 September 2020

13

      

Ngā kaihaina

Signatories

Authors

Mark Maloney - Head of Assurance Services

Emma Mosely - Chief Risk Officer

Authoriser

Phil Wilson - Governance Director

 


Audit and Risk Committee

15 September 2020

 

 

Komiti Tātari me te Mātai Raru Tūpono / Audit and Risk Committee
Forward Work Programme 2020-2022

This committee assists and advises the Governing Body in discharging its responsibility and ownership of governance, risk management and internal control across Auckland Council group. 

Responsibilities include reviewing the effectiveness of enterprise risk management, internal and external audit assurance, health safety and wellbeing, business continuity and resilience, integrity and investigations.  The Committee monitors compliance, risk management in significant projects and programmes of work and procurements and has oversight of risk management and assurance of CCOs, the preparation of the LTP, Annual Report and other statutory financial reports.
Full terms of reference can be found
here.

 

 

 

Area of work and lead

 

Expected reporting 2020

24 Feb

26 May

24 Aug

15 Sep

14 October (additional remote meeting added for Annual Report 8.30am – 10am)

8 Dec

 

Audit and Risk Committee

Head of Assurance Services

 

Work programme update

Link to decision

Work programme update

Link to decision

Work programme update

Link to decision

Work programme update

 

Work programme update

Committee’s Annual performance report (moved from September)

Assurance

Head of Assurance Services – Assurance Services Department

Building and resource consents assurance plan update

Link to decision

 

Building and resource consents performance and improvement plan update (Regulatory division)

Link to decision

Assurance Services Strategy and activities update (fraud and integrity, elected members, internal audits and reviews, speak up)

Link to decision

 

Holidays Act project (refer Assurance Services Update report)

 

Building and resource consents assurance plan update

Link to decision

 

Building and resource consents performance and improvement plan update (Regulatory division)

Link to decision

 

Audit Programme reporting – updated plan and audits completed

 

Covid-19 Refocussed Audit Plan report

Building and resource consents assurance plan update

Link to decision

 

CCO Review update

 

Covid-19 Refocussed Audit Plan report

Link to decision - confidential

 

Assurance Services Strategy and activities update (fraud and integrity, elected members, internal audits and reviews, speak up)

Audit Programme reporting – updated plan and audits completed

Covid-19 Refocussed Audit Plan report

 

 

 

 

 

 

 

 

 

 

 

CCO Review

Covid-19 Refocussed Audit Plan report

 

 

 

Independent Maori Statutory Board - Treaty Audit

Head of Assurance and GM Maori Outcomes and Relationships

Treaty Audit Monitoring update

Link to decision

 

Treaty Audit Monitoring update

Link to decision

 

Performance Measurement Framework and Māori Responsiveness Planning

Link to decision

 

 

Preparations for Independent Maori Statutory Board upcoming 2022 Te Tiriti o Waitangi Audit

Enterprise Risk

Chief Risk Officer – Risk and Insurance Department

Risk Update – top risk register: strategy, ERM framework

Link to decision

COVID-19 Risk Update – top risk register

Link to decision

 

ERM Framework

Review and Refresh Risk Appetite Statement

 

Risk Update

Link to decision

Top Risk Quarterly Update

 

Risk Update

 

CCO Risk management

Facilitated by Risk and Insurance Department

CCO quarterly risk report

Link to decision

 

Attendance by Panuku

 

 

CCO Covid19 Risk Update

CCO quarterly risk report

Link to decision

Attendance by Regional Facilities Auckland

CCO COVID -19 Risk Update

CCO quarterly risk report

Attendance by Watercare and Regional Facilities Auckland

Link to decision

 

CCO COVID -19 Risk Update

CCO annual reports on risk (matters raised through annual audit process and summary of any significant findings raised by auditors)

Attendance by Watercare, ATEED, Auckland Transport, RFA, Panuku

 

CCO Covid19 Risk Update

CCO quarterly risk report

Attendance by ATEED

Auckland Council partner/ shareholder risk management

Director Infrastructure and Environmental Services & CCO/ External Partnerships Dept

America’s Cup 36

Link to decision

America’s Cup 36 Covid-19 Impact update (refer Covid-19 Risk Update above)

 

City Rail Link

Link to decision

America’s Cup 36

Link to decision

City Rail Link

 

America’s Cup 36

Health, Safety and Wellbeing

Health, Safety and wellbeing update

Link to decision

Health, Safety and wellbeing update

(Refer Covid-19 Risk Update above)

Health, Safety and Wellbeing update

Deferred to September meeting

Health, Safety and Wellbeing update

 

Health, Safety and wellbeing update

Legal Risk

General Counsel – Legal & Risk Dept

 

Legal Risk report

Link to decision

 

Legal Risk report

Deferred to December meeting

 

Legal Risk report

Insurance

Manager Insurance - Risk and Insurance Dept

Insurance risk profiling

Indicative insurance procurement strategy

Link to decision

Indicative Insurance Renewal Report

Link to decision

Update to Committee post placement of Insurance Programme

Link to decision

 

 

Insurance Strategy 2021-23

Interim Report

Group Financial Controller

 

31 December 2019 Interim Report and NZX Announcement clearance

Link to decision

Audit New Zealand Review engagement management report 31 December 2019

 

Interim Audit Management Report

Link to decision

 

 

Review arrangements 31 December 2020

31 December 2020 Interim Financial Statements & NZX announcement Update 

Proforma interim financial statements and accounting policies 31 December 2020

Annual Report

Group Financial Controller

30 June 2020 Arrangements (extended audit plan)

Link to decision

NZX Announcement 30 June 2020 / Annual Report 30 June 2020 update for committee

 

Proforma Annual Report 30 June 2020 (financial statements and accounting policies)

Link to decision

NZX Announcement 2020/ Annual Report 30 June 2020 update for committee

Audit New Zealand Interim audit management report 30 June 2020

Link to decision

Update on process

Link to decision - Confidential

NZX Announcement 2020

Annual Report 30 June 2020 update for committee

 

Annual Report for recommending to Governing Body

30 June 2021 Arrangements (extended audit plan)

Audit New Zealand final audit management report 30 June 2020

Annual Green Bond Report

 

Process for Annual Green Bond Report 30 June 2020.

Link to decision

 

Annual Green Bonds Report 30 June 2020.

 

 

Other reports

 

 

 

Review of property rationalisation process

 

 

Long-Term Plan 2021/2031

Annual Plan

GM Financial Strategy and Planning

 

2021 Annual Plan (Refer Covid-19 Risk Update)

Audit NZ Arrangements Letter – Audit of LTP

Risk Management and Assurance Approach

Audit NZ Arrangement letter   - Audit of Long-Term Plan - draft

Link to decision

 

Audit NZ arrangement letter Audit of Long-Term Plan.

2021/22 Annual Plan (draft)

External Audit

Office of Auditor-General (OAG)

Briefing paper provided

Link to decision

Briefing paper provided

Link to decision

Briefing paper provided

Link to decision - confidential

Briefing paper provided

 

Briefing paper provided

 

 

Workshops

The Audit and Risk Committee holds workshops on matters where a background briefing/ more informal discussion and opportunity for questions from the committee is necessary to perform its role and responsibilities.

Workshops are not used to make decisions - that is for formal committee or Governing Body Meetings. Workshop material will be appended to a summary of information items in the next committee meeting, unless it has been clearly marked as confidential.

The following topics have been identified as proposed workshops necessary to discharge the Committee’s duties.  Workshops will be scheduled over the three-year programme based on strategic priorities, risk and time available.  Additional topics may be added if circumstances change or require a topic to be the subject of a workshop.

The workshop schedule is currently under review due to the impact of Covid-19. Topics and timing outlined below is tentative.

 

 

 

Proposed Workshop topics for 2020

1.       Risk Deep Dives (outcomes from deep dive processes into Auckland Council’s Top Risks) – deferred to 2021

2.       Internal Audits and reviews completed (six monthly)

3.       Post event review following Sky City Convention Centre Fire 2019 – business continuity and emergency response – deferred TBC

4.       Risk appetite statement review (May 2020)

5.       Natural Hazards Risk management (August 2020)

6.       Integrity – policies and procedures for prevention, detection, reporting and investigation of bribery and fraud and conflicts of interest (Our Charter) – (September 2020)

7.       Transport (TBC)

 

 


 

Komiti Tātari me te Mātai Raru Tūpono / Audit and Risk Committee
Forward Work Programme 2020-2022

This committee assists and advises the Governing Body in discharging its responsibility and ownership of governance, risk management and internal control across Auckland Council group. 

Responsibilities include reviewing the effectiveness of enterprise risk management, internal and external audit assurance, health safety and wellbeing, business continuity and resilience, integrity and investigations.  The Committee monitors compliance, risk management in significant projects and programmes of work and procurements and has oversight of risk management and assurance of CCOs, the preparation of the LTP, Annual Report and other statutory financial reports.
Full terms of reference can be found
here.

 

 

 

Area of work and lead

Expected reporting 2021 (dates TBC)

Feb

May

Aug

Sep

Dec

Audit and Risk Committee

Head of Assurance Services

Work programme

Work programme

Work programme

Work programme

Committee’s Annual performance report

Work programme

 

Assurance

Head of Assurance Services – Assurance Services Department

Assurance Services Strategy and activities update (fraud and integrity, elected members, internal audits and reviews, speak up)

Audit Programme reporting – updated plan and audits completed

 

 

Assurance Services Strategy and activities update (fraud and integrity, elected members, internal audits and reviews, speak up)

Audit Programme reporting – updated plan and audits completed

 

 

Assurance Services Strategy and activities update (fraud and integrity, elected members, internal audits and reviews, speak up)

Audit Programme reporting – updated plan and audits completed

 

Independent Maori Statutory Board - Treaty Audit

Head of Assurance and GM Maori Outcomes and Relationships

Treaty Audit Monitoring update

 

Treaty Audit Monitoring update

 

Preparations for Independent Maori Statutory Board upcoming 2022 Te Tiriti o Waitangi Audit

Enterprise Risk

Chief Risk Officer – Risk and Insurance Department

Risk Deep Dive (TBC) Risk Update

Risk Update

Risk Deep Dive (TBC)

Risk Deep Dive (TBC)

Risk Update

Risk Deep Dive (TBC)

Risk Deep Dive (TBC)

CCO Risk management

Facilitated by Risk and Insurance Department

CCO quarterly risk report

Attendance by Auckland Transport

CCO quarterly risk report

Attendance by Panuku

CCO quarterly risk report

Attendance by Regional Facilities Auckland

CCO annual reports on risk (matters raised through annual audit process and summary of any significant findings raised by auditors)

Attendance by Watercare, ATEED, Auckland Transport, RFA, Panuku

CCO quarterly risk report

Attendance by Watercare

Auckland Council partner/ shareholder risk management

Director Infrastructure and Environmental Services & CCO/ External Partnerships Dept

America’s Cup 36

City Rail Link

America’s Cup 36

City Rail Link

America’s Cup 36

Health, Safety and Wellbeing

Head of Health, Safety and Wellbeing

 

Health, safety and wellbeing update

Health, safety and wellbeing update

Health, safety and wellbeing update

 

Health, safety and wellbeing update

Legal Risk

General Counsel – Legal & Risk Dept

 

Legal Risk report

 

Legal Risk report

 

Insurance

Manager Insurance - Risk and Insurance Dept

Update on insurance activities

Indicative Insurance Renewal Report

Update to Committee post placement of Insurance Programme

 

 

 

Interim Report

Group Financial Controller

 

31 December 2020 Interim Report and NZX Announcement clearance

Audit New Zealand Review engagement management report 31 December 2020

 

 

Review arrangements 31 December 2021

31 December 2021 Interim Financial Statements & NZX announcement Update

Proforma interim financial statements and accounting policies 31 December 2021

Annual Report

Group Financial Controller

 

NZX Announcement 30 June 2021 / Annual Report 30 June 2022 update for committee

Proforma Annual Report 30 June 2021 (financial statements and accounting policies)

 

NZX Announcement 2021/ Annual Report 30 June 2021 update for committee

Audit New Zealand Interim audit management report 30 June 2021

 

30 June 2021 Annual Report

 

30 June 2022 Arrangements (extended audit plan)

Audit New Zealand final audit management report 30 June 2021

 

Annual Green Bond Report

 

Process for Annual Green Bond Report 30 June 2021.

 

 

Annual Green Bonds Report 30 June 2021.

 

Long Term Plan 2021/2031

Annual Plan

GM Financial Strategy and Planning

 

 

 

 

2021-2031 LTP (draft)

External Audit

Office of Auditor-General (OAG)

Briefing paper provided

Briefing paper provided

Briefing paper provided

Briefing paper provided

Briefing paper provided

 


 

Komiti Tātari me te Mātai Raru Tūpono / Audit and Risk Committee
Forward Work Programme 2020-2022

This committee assists and advises the Governing Body in discharging its responsibility and ownership of governance, risk management and internal control across Auckland Council group. 

Responsibilities include reviewing the effectiveness of enterprise risk management, internal and external audit assurance, health safety and wellbeing, business continuity and resilience, integrity and investigations.  The Committee monitors compliance, risk management in significant projects and programmes of work and procurements and has oversight of risk management and assurance of CCOs, the preparation of the LTP, Annual Report and other statutory financial reports.
Full terms of reference can be found
here.

 

 

 

Area of work and lead

Expected reporting 2022 (dates TBC)

Feb

May

Aug

Sep

Dec 7

Audit and Risk Committee

Head of Assurance Services

Work programme

Work programme

Work programme

Work programme

Committee’s Annual performance report

Work programme

 

Assurance

Head of Assurance Services – Assurance Services Department

 

Assurance Services Strategy and activities update (fraud and integrity, elected members, internal audits and reviews, speak up)

Audit Programme reporting – updated plan and audits completed

 

 

Assurance Services Strategy and activities update (fraud and integrity, elected members, internal audits and reviews, speak up)

Audit Programme reporting – updated plan and audits completed

 

 

Independent Maori Statutory Board - Treaty Audit

Head of Assurance and GM Maori Outcomes and Relationships

Treaty Audit Monitoring update

 

Treaty Audit Monitoring update

 

Preparations for Independent Maori Statutory Board upcoming 2022 Te Tiriti o Waitangi Audit

Enterprise Risk

Chief Risk Officer – Risk and Insurance Department

Risk Update

Risk Deep Dive (TBC)

Risk Deep Dive (TBC)

Risk Update

Risk Deep Dive (TBC)

Risk Deep Dive (TBC)

Risk Update

Risk Deep Dive (TBC)

CCO Risk management

Facilitated by Risk and Insurance Department

CCO quarterly risk report

Attendance by ATEED

CCO quarterly risk report

Attendance by Auckland Transport

CCO quarterly risk report

Attendance by Panuku

CCO annual reports on risk (matters raised through annual audit process and summary of any significant findings raised by auditors)

Attendance by Watercare, ATEED, Auckland Transport, RFA, Panuku

CCO quarterly risk report

Attendance by Regional Facilities Auckland

Auckland Council partner/ shareholder risk management

Director Infrastructure and Environmental Services & CCO/ External Partnerships Dept

America’s Cup 36

City Rail Link

America’s Cup 36

City Rail Link

America’s Cup 36

Health, Safety and Wellbeing

Head of Health, Safety and Wellbeing

 

Health, safety and wellbeing update

Health, safety and wellbeing update

Health, safety and wellbeing update

 

Health, safety and wellbeing update

Legal Risk

General Counsel – Legal & Risk Dept

 

Legal Risk report

 

Legal Risk report

 

Insurance

Manager Insurance - Risk and Insurance Dept

Update on insurance activities

Indicative Insurance Renewal Report

Update to Committee post placement of Insurance Programme

 

 

 

Interim Report

Group Financial Controller

 

31 December 2021 Interim Report NZX Announcement clearance

Audit New Zealand Review engagement management report 31 December 2021

 

 

Review arrangements 31 December 2022

31 December 2022 NZX announcement Update

Annual Report

Group Financial Controller

 

NZX Announcement 30 June 2022 / Annual Report 30 June 2022 update for committee

Proforma Annual Report 30 June 2022 (financial statements and accounting policies)

NZX Announcement 2022/ Annual Report 30 June 2022 update for committee

Audit New Zealand Interim audit management report 30 June 2022

 

30 June 2022 Annual Report

Audit New Zealand Audit Engagement and Audit Proposal letters for 2023, 2024 and 2025

30 June 2023 Arrangements (extended audit plan)

Audit New Zealand final audit management report 30 June 2022

Proforma interim financial statements and accounting policies 31 December 2022

Annual Green Bond Report

 

Process for Annual Green Bond Report 30 June 2022.

 

 

Annual Green Bonds Report 30 June 2022.

 

Long Term Plan 2021/2031

Annual Plan

GM Financial Strategy and Planning

 

Audit New Zealand final 2021 LTP amendment management report

 

 

2023/24 Annual Plan (draft)

External Audit

Office of Auditor-General (OAG)

Briefing paper provided

Briefing paper provided

Briefing paper provided

Briefing paper provided

Briefing paper provided

 

 

 

 

 

 

 

 


Audit and Risk Committee

15 September 2020

 

Auckland Council Top Risk Quarterly Update - September 2020

File No.: CP2020/12373

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To update the Audit and Risk Committee on:

a)       the Auckland Council Top Risk Register following the September quarterly review

b)       the process and timeline for the report on tree risk assessment to the Parks, Arts, Community and Events Committee in accordance with the Audit and Risk Committee Resolution AUD/2020/44

c)       the City Rail Link (CRL) project, including key risks and how they are being managed.

Whakarāpopototanga matua

Executive summary

Auckland Council Top Risks

2.       The council’s top risks have been reviewed and updated. 

3.       The risks are closely interrelated and, given the continuously evolving environment, they are being actively monitored and managed by key risk owners, relevant business areas and the risk team.

4.       The council’s overall risk profile is heightened due to the uncertainty and evolving nature of the COVID-19 response, resurgence and recovery, cyber system (Distributed Denial of Services (DDoS)) attacks, and drought risk events which are significant and cumulative drivers to the top risks.

5.       The internal controls and risk management processes are operating, and no new risks have been identified or changes made to the previously reported top risk residual ratings.

6.       This quarter, specific risk assessments and evaluations have been completed for the Māori Outcomes and Water Top Risks. 

7.       The Māori Outcomes Top Risk has been evaluated as being inherently and residually high at this time.  This is due to the number of actions that have recently commenced (e.g. implementation of newly adopted Kia Ora Tāmaki Makaurau - Maori Outcomes Performance Measurement Framework) and the heightened risks associated with the COVID-19 resurgence and recovery.

8.       The strategic Water Top Risk assessment and evaluation concluded that the risk ratings should be the same as the previous water risk and it is recorded as Critical (inherent) and High (residual).

9.       A Distributed Denial of Service (DDoS) attack has been occurring in August and September 2020 that has disrupted the NZX and other organisations. The impact to Council has been minimal to date but telecommunications providers are being impacted and some internet services are being degraded. If this attack continues to increase then Council may be impacted however, it is considered that our systems and controls are adequate to mitigate the potential risks at this time.

Tree risk assessment report update

10.     Further to the public input item on tree management and resolutions made by the Audit and Risk Committee on 24 August 2020 (AUD/2020/4), the requested report is being prepared to the Parks, Arts, Community and Events Committee and will be reported to the 15 October 2020 meeting.

City Rail Link risk update

11.     Since the last report to the Audit and Risk Committee in May 2020 the contract variation concerning major tunneling and stations work has been approved.   A copy of the report to Governing Body on 27 August 2020 is in Attachment C to provide the Committee oversight of the risk reporting. 

12.     The key governance groups, oversight and risk management processes, including six monthly sponsor risk reviews, are continuing.

13.     Key shareholder and interdependency risks identified relate to the interface with existing systems and networks, the commissioning phase before CRL can open to the public and the capacity of the traction power network. The financial risks associated with the project are reducing due to the procurement phases being completed. 

14.     The COVID-19 impacts and the ongoing border restrictions are continuing to disrupt access to skilled international staff, which is a potential risk to project delivery. Discussions with the Government about the issues and possible solutions are continuing.

 

Ngā tūtohunga

Recommendation/s

That the Audit and Risk Committee:

a)      note the Auckland Council Top Risk Quarterly Update

b)      note the tree risk assessment report and City Rail Link risk updates

c)      refer the Auckland Council Top Risk Quarterly Update report to the Governing Body for information.

 

 

Horopaki

Context

15.     This report provides an update on the quarterly review of the Auckland Council Top Risk Register and risk activities. The report provides information to enable the Audit and Risk Committee to fulfil their governance and oversight role of the effectiveness of risk management within Auckland Council, and for reviewing the emerging risks and changes to the Auckland Council Top Risks.

Tātaritanga me ngā tohutohu

Analysis and advice

Top Risk Quarterly Update

16.     The risks described on the Council Top Risks remain unchanged from the last full review completed in May 2020 and the interim review undertaken in July 2020.

17.     There are currently fourteen Top Risks on the register.  These include the risks added following the COVID-19 pandemic concerning Financial Management, Recovery and Māori Outcomes. A summary of the Top Risks is in Attachment A page 2.

18.     The risks are closely interrelated and interdependent. Reflecting the current ratings and the continuously evolving environment, they are being actively monitored and managed by key risk owners, relevant business areas and the risk team. No changes in risk ratings have been made this quarter.

 

 

 

19.     The risk team has facilitated the August/September review of the Top Risks with risk sponsors and relevant risk owners, subject matter experts and key control owners and considered the internal and external environment and emerging risks.  The review has also been informed by the drought and climate change risk pulse check information provided by divisions and directorates and the recent council-controlled organisation review report and ongoing processes. 

20.     Specific Risk assessments have been completed for the:

·    Māori Outcomes Top Risk

·    Water Top Risk.

21.     The updated Top Risk Report September 2020 is in Attachment A.

Kia Ora Tāmaki Makaurau - Māori Outcomes Top Risk

22.     The Māori Outcomes top risk is reported in Attachment A page 17.

23.     Recent events have highlighted the potential risk of Council not adequately delivering outcomes with Māori, especially in a post COVID-19 environment where Māori are likely to be disproportionately impacted.

24.     General Manager Ngā Mātārae / Māori Outcomes and the Māori Outcome leads from each of the divisions have undertaken an assessment and evaluation of the risk. They have considered the key drivers and causes that may potentially hinder the Māori Outcomes objectives as well as the controls and mitigations that are in place and under development to ensure all risks are effectively managed.

25.     The risk has been evaluated as having a high inherent risk.  The residual risk remains high at this time.  This is primarily due to the number of actions that have recently commenced (e.g. implementation of newly adopted Kia Ora Tāmaki Makaurau - Maori Outcomes Performance Measurement Framework) and the heightened risks associated with the COVID-19 resurgence and recovery where we are anticipating disproportionate impacts on vulnerable communities in Auckland.

Top Risk 8 Water Top Risk Reset

26.     Council has reviewed the water top risk in light of the current drought and Covid-19.  A drought and climate risk pulse check has been conducted with all council divisions and directorates and we have had discussions with key risk owners in Infrastructure and Environmental Services and Chief Planning Office departments, ELT sponsors and the Drought Crisis Team.

27.     The “risk bow tie” method has been followed to identify, clarify and evaluate the key drivers, impacts and controls and mitigations and demonstrate the causal relationships. The analysis is summarised on Attachment B page 3.

28.     Water management remains a strategic and operational risk area.  However, the risk (including its description, drivers and impacts) has been reset to reflect the current context and challenges facing the council and Auckland.

29.     The detailed risk assessment is captured in the Top Risk register. A summary of the risk assessment analysis that underpins the top risk report in in Attachment B.

30.     The water top risk has been reframed to reflect the council’s wide-ranging responsibilities and accountabilities for water and its management.

31.     A new proposed strategic “risk event” has been identified as the potential inability to effectively and sustainably manage and meet Auckland’s water needs.

 

32.     The key drivers and impacts fall across the Council’s wide-ranging roles and responsibilities including:

·     the quantity and quality of water

·     responsibilities for stormwater and wastewater management

·     climate change impacts

·     urban growth demands

·     preserving biodiversity and ecosystems

·     as a user / consumer of water (corporate facilities, and as a provider of facilities and services such as public spaces and reserves).

33.     Water supply, quality and environmental risks and impacts are shared by the council group and require a strong strategic and coordinated group approach to management and mitigation going forward.

34.     The review and re-evaluation of the water risk has confirmed that water management is a significant strategic challenge and risk area requiring ELT oversight and deliberate and coordinated management across all functions and activities. 

35.     The assessment to date has concluded that the risk ratings should be the same as the previous water risk and it is recommended to be recorded as Critical (inherent) and High (residual).

Drought and climate change risk pulse check

36.     A drought and climate change risk pulse check has been conducted with the enterprise leadership group (ELG). The objective was to form an enterprise view and provide insights on the potential risks and impacts, and to inform the management of Top Risks.

37.     Where relevant, the key insights are summarised on each Top Risk report in Attachment A. The data gathered is also being shared with relevant teams and workstreams such as the Natural Hazard Risk Management Action Plan implementation project.

38.     While there are no new potential impacts identified, the exercise has raised awareness and confirmed and deepened Council’s understanding of the drivers and impacts of climate change and the current drought. 

39.     Key themes identified through the pulse check concerned financial risks (revenue and costs) across most functions caused by climate change and the challenges associated with reprioritisation and uncertainty of the risks and impacts.

Data network attack - update on external threats, cyber security and information systems risks

40.     A Distributed Denial of Service (DDoS) attack has been occurring in New Zealand in August and September 2020 that has disrupted the NZX and other organisations including MetService, TSB and Kiwibank.

41.     Whilst this attack is being referred to as a cyber-attack it is more accurately a data network attack involving an outside party flooding the networks with more data than it can handle.

42.     The council has significant resilience built into its networks, however the scale of this attack is impacting all of New Zealand’s internet traffic. 

43.     The impact to the council has been minimal to date but we aware that telecommunications providers are being impacted and some internet services are being degraded. If this attack continues to increase, then the council may be directly impacted, however it is considered that our systems and controls are adequate to mitigate the potential risks at this time.

44.     The council is closely monitoring this situation with its strategic security partner, Datacom.

45.     Auckland Council ICT and our security and network partners have taken all reasonable steps to prepare for a possible attack.  Actions include:

·        Refreshed and distributed the DDoS response plan

·        Engaged with Datacom and are maintaining daily contact

·        Contacted our Internet Service Providers and raised readiness levels

·        Our 24/7 Security Operations Centre is on High Alert for any indications of attack from this or any other attacker

·        Our security monitoring systems on every laptop, Desktop and Server team continue to monitor and block any unwanted activity

·        Increased user awareness and training through communications and e-learning modules to all staff. 

46.     There is a potential for our remote workforce to be impacted should the network be significantly compromised.  Information has been communicated to all staff and people leaders to raise awareness and advise what to do individually to prepare and be alert.

47.     The all of organisation campaign for staff to complete the mandatory e-learnings for cyber security, integrity and privacy has also commenced.

48.     In the longer term, our best mitigation is to achieve and then maintain a level of technical and security sophistication to ensure our defences are as resilient and robust as possible. The ICT security improvement programme continues which includes enhancements to email security, multi-factor authentication and secure network perimeter enhancements.   

49.     The Cyber Security top risk rating is not materially impacted by these data network attack events and remains at High. Please refer attachment A page 5.

Report on Tree Risk Assessment – process update

50.     On 24 August 2020, the Audit and Risk Committee received public input from Ms Deborah Manning on Auckland Council’s management of tree risk assessments and environmental responsibilities.

51.     The Committee resolved:

Resolution number AUD/2020/44

MOVED by Chairperson S Sheldon, seconded by Member B Robertson:  

That the Audit and Risk Committee:

a)         thank Deborah Manning and Mark Roberts for their presentation

b)        request officers prepare a report outlining:

i)        the industry standards available for tree risk assessment

ii)       the current tree risk assessment practice across Community Facilities with respect to these industry standards

iii)      potential recommendations for change, including for greater consistency across Community Facilities.

c)       Recommend that the report referred to in b) above be provided to the Parks, Arts, Community and Events Committee for them to review current practice and make any recommendations, if needed, to ensure a consistent approach across Community Facilities

d)       request an update on the above be provided in the Risk report in September 2020.

 

 

52.     A report outlining the following is currently being prepared:

a)      the industry standards available for tree risk assessment;

b)      the current tree risk assessment practice across Community Facilities with respect of these industry standards; and

c)      potential recommendations for change, including for greater consistency across Community Facilities.

53.     The report will be provided to the Parks, Arts, Community and Events Committee in order that the Committee can review current practice and make any recommendations, if needed to ensure a consistent approach across Community Facilities.

54.     The report is to be provided to the Parks, Arts, Community and Events Committee meeting on 15 October 2020.

City Rail Link risk update September 2020

55.     Since the last six-monthly report to the Audit and Risk Committee on City Rail Link (CRL) in May 2020, the sponsors of the project (Auckland Council and Ministry of Finance and Transport) have approved City Rail Link Limited’s (CRLL) entering into a contract variation with Link Alliance which is delivering the major tunneling and stations work for the City Rail Link project (CRL). 

56.     This contract variation was to include the two final large works packages, for rail systems and integration, and for linkages to the western line in the Mt Eden area (referred to as the C5 and C7 packages). The execution of this variation is a major milestone for the project. 

57.     The Governing Body received a full project and risk update in conjunction with this variation decision making process on 27 August 2020.  A copy of the report to Governing Body is in Attachment C to provide the Audit and Risk Committee with oversight and a risk update on the project.

58.     As part of the process for seeking approval, CRLL presented a project update to the Governing Body.  This update noted that, along with reduced procurement risks, achieving an agreed contract for these works packages means that cost risks are now also significantly reduced. The project is still within allocated contingencies, and the major cost risks are now due to the potential for things such as unforeseen difficulties in ground conditions, rather than an inability to secure contractors for an appropriate price.

59.     CRLL has assured shareholders that all foreseeable financial risks are within the CRL project budget and contingency. 

60.     An additional benefit of the recent variation agreement with the Alliance is that the delivery partners for the project (Auckland Transport and KiwiRail) are now also more integrated with the project. The C5 and C7 packages are at the interface with existing rail networks, which means that through the process of achieving the contract variation, the processes to manage these interfaces are now well-established. These processes are key for controlling and mitigating the interface and interdependency risks identified.

61.     CRLL also provided sponsors with an update on the impacts of COVID-19. The project had a very successful emergence out of Level 4 in late April, and the impacts of COVID-19 were better than for many other infrastructure projects. There will be material time and cost implications, though these will be more fully understood by the end of 2020.

62.     The COVID-19 government border restrictions have impacted the ability of the project to secure foreign staff, despite the Crown’s facilitation of some of the critical staff back into New Zealand. This situation continues to be challenging and impacts more significantly if lockdowns continue over the next period.  Discussions with the Government about the issues and possible solutions are continuing. 

63.     The key governance groups and oversight and risk management arrangements including six monthly sponsor risk reviews are continuing. The risk dashboard is due for review in October 2020 and will be reported to the Audit and Risk Committee in February 2021. 

Tauākī whakaaweawe āhuarangi

Climate impact statement

64.     The climate change adaptation and mitigation risk continues to be identified and managed as a top risk for Auckland Council. The residual risk has been assessed as high and remains unchanged at this time. Please refer attachment A page 6.

65.     There are no direct climate change implications arising from this report.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

66.     There are no direct impacts on the Council Group arising from this report. The risk department continues to work with the risk managers and key staff in the council-controlled organisations to collaborate and manage group risks.

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

Local impacts and local board views

67.     Local boards are affected by many of the top risks as they represent risks to the entire organisation. The top risks will be referred to the Local Board Chairs for awareness and to assist local boards’ decisions.

Tauākī whakaaweawe Māori

Māori impact statement

68.     The delivery of Māori Outcomes is a key strategic objective for the council.

69.     The potential risk that the council may be unable to meet its responsibilities to Māori would have a range of significant impacts and consequences including social inequality, breach of statutory obligations and a loss of trust and confidence in council.

70.     Māori Outcomes is included within the Top Risk Register to enable adequate and ongoing executive and senior leadership oversight and effective top down / bottom up management of the risks. Please refer attachment A page 17.

Ngā ritenga ā-pūtea

Financial implications

71.     Financial Management has been identified as a key risk for the council and is included within the Top Risk Register to enable adequate and ongoing management of the risks. Please refer to attachment A page 15.

72.     There are no financial funding decisions required as a result of this report, and consequently there are no direct financial implications.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

73.     The Auckland Council’s emerging risks and issues are addressed in the body of this report.

Ngā koringa ā-muri

Next steps

74.     A facilitated risk workshop is being planned for October for the executive leadership team to review and identify the council’s top risks going forward.

75.     The purpose of the workshop will be to review and reset the top risk profile and register to inform the top down risk management for the organisation in the next six to 12 months.

76.     The next risk update will be provided to the Audit and Risk Committee on the enterprise risk activities and the management of the Council’s top risks in December 2020.

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Auckland Council Top Risk Report September 2020

29

b

Water Strategic Top Risk Assessment and Evaluation Summary

47

c

Governing Body Report City Rail Link: Major Stakeholder decision 27 August 2020

55

     

Ngā kaihaina

Signatories

Authors

Emma Mosely - Chief Risk Officer

Caroline Innes Mehta - Senior Risk Advisor

Ann Brown - Senior Risk Advisor

Matthew Kerly - Risk Advisor

Authorisers

Helen Wild - General Counsel

Phil Wilson - Governance Director

 


Audit and Risk Committee

15 September 2020

 

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15 September 2020

 


 


 


 


 


 


 


Audit and Risk Committee

15 September 2020

 


 


 


 


 


 


 


 


Audit and Risk Committee

15 September 2020

 

Review of property rationalisation process

File No.: CP2020/11080

 

  

Te take mō te pūrongo

Purpose of the report

1.       For the Audit and Risk Committee to review the property rationalisation process to ensure that it has effective controls in place, and to make any recommendations for improvement.

Whakarāpopototanga matua

Executive summary

2.       The Emergency Budget 2020/2021 decisions include a financial target for asset recycling of $244 million, met from property rationalisation and alternative commercial arrangements.  The term property rationalisation is used to describe the sale of assets which are not currently in service and have no planned or funded future use (‘non-service property’).

3.       Achieving the target will require staff to progress a pipeline of asset recycling opportunities for consideration by the Finance and Performance Committee as early in the 2020/2021 financial year as possible (to match capital expenditure).

4.       The objective of the approach to property rationalisation is to enable the Finance and Performance Committee to make sound asset recycling decisions based on robust information and analysis, which contribute to the financial target being met and capital proceeds being released to be invested in the most strategically important activities for the council group.

5.       Because there is a substantial increase to the financial target and rapid progress required this financial year, there are some identified risks regarding appropriate properties for disposal, the need to achieve value for money; and effective, efficient and transparent process and decision making.  Principles have been agreed with elected members to support delivery of the budget.

6.       There are controls embedded in the property rationalisation approach to help ensure that it achieves the outcome of enabling sound asset recycling decisions based on robust information and analysis.

 

Ngā tūtohunga

Recommendation/s

That the Audit and Risk Committee:

a)      confirm that it has reviewed the approach to property rationalisation

b)      agree to advise the Finance and Performance Committee that the property rationalisation approach has reasonable and effective controls in place to ensure that risks are being appropriately managed.

 

Horopaki

Context

7.       The Auckland Council group is experiencing the unprecedented financial impacts of the COVID-19 crisis.

8.       On 16 April 2020, the Emergency Committee acknowledged that given the COVID-19 pandemic context, there was no “business as usual” budget scenario for next financial year. The council prepared a draft Emergency Budget 2020/2021 (the annual plan for the 2020/2021 financial year) and consulted the public in May/June 2020.

9.       In June and July 2020 the Finance and Performance Committee held workshops at which it considered the ‘levers’ available to the council group to respond to a substantial drop in group revenue. Those workshops included discussion of asset recycling as a lever which allowed the council group to free up capital to be invested in the most strategically important activities. The Asset Recycling workshop presentations dated 26 June 2020 and 9 July 2020 are at Attachments A and B.

10.     On 16 July 2020 the Finance and Performance Committee and Governing Body made high level policy decisions to inform the preparation of the formal Emergency Budget document.

11.     The decisions on 16 July 2020 included agreeing that the Emergency Budget would include a financial target for asset recycling of at least $244 million. The ‘Emergency Budget 2020/2021 – Asset Recycling’ report from the Finance and Performance Committee on 16 July 2020, which sets out that the target will be met from property rationalisation and from alternative commercial arrangements is at Attachment C.  The term property rationalisation is used to describe the sale of assets which are not currently in service and have no planned or funded future use (‘non-service property’).

12.     On 30 July 2020 the Finance and Performance Committee and Governing Body adopted the final Emergency Budget document including an asset recycling target of $244 million. This is a substantial increase from previous financial years (FY2019/20 budget was $24m). Achieving the target will require staff to progress a pipeline of asset recycling opportunities for consideration by the Finance and Performance Committee as early in the 2020/2021 financial year as possible (to match capital expenditure).

13.     The 16 July 2020 ‘Emergency Budget 2020/2021 – Asset Recycling’ report included a recommendation that the Finance and Performance Committee request that the Audit and Risk Committee review the property rationalisation process and make any recommendations for improvement. The purpose of that recommendation was to provide confidence to the Finance and Performance Committee that the approach has effective controls in place. That resolution was passed.

14.     The Audit and Risk Committee has a key role to play in ensuring that the council is in a position to make sound decisions based on robust information and analysis.

15.     Panuku Development Auckland is currently responsible for the management of non-service property and the rationalisation process.

Tātaritanga me ngā tohutohu

Analysis and advice

16.     The property rationalisation approach in relation to the Emergency Budget financial target is set out in the Asset Recycling workshop presentations dated 26 June 2020 and 9 July 2020 and the ‘Emergency Budget 2020/2021 – Asset Recycling’ report from the Finance and Performance Committee on 16 July 2020 (Attachments A-C).

17.     The objective of the approach is to enable the Finance and Performance Committee to make sound asset recycling decisions based on robust information and analysis, which contributes to the financial target being met and capital proceeds being released to be invested in the most strategically important activities for the council group.

18.     Because there is a substantial increase to the financial target and rapid progress required this financial year, there are some potential risks including identifying the appropriate properties for disposal, the need to achieve value for money; and effective, efficient and transparent process and decision making.

19.     To support the execution and achievement of the budget, in the Finance and Performance Committee ‘Emergency Budget 2020/2021 – Asset Recycling’ report on 16 July 2020 principles were agreed to assist elected members and staff.

 

 

Principles to support the implementation of the asset recycling budget

 

Principle

Explanation

1

Effective governance and decision-making

The Governing Body (delegated to Finance and Performance Committee) after considering the views and preferences of local boards approves any property for disposal.

2

Alternative use

Consideration will be given as to whether a property has any alternative funded future use prior to any disposal.

3

Value for money

Council will ensure effective stewardship of public funds and resources.

Properties may not be disposed of for less than 90% of the valuation without approval of the Finance and Performance Committee.

An investment approach will be adopted where income, total cost of ownership and cost of capital should be considered.

4

Transparency

Regular reporting (on public agenda) to Finance and Performance Committee including progress of approved opportunities and potential new opportunities.

Decision making in public meetings unless that would disadvantage the councils legal, commercial or negotiation position.

Early identification of future opportunities with engagement with ward councillors, local boards and community.

5

Efficient and effective processes

Processes will be fit-for-purpose – value-adding, support better informed decision making and not add unnecessary cost or time.

Elected members and staff will invest sufficient time to support the processes.

6

Statutory obligations

Council will meet its statutory obligations.

 

20.     In addition to the management controls in place regarding staff (for example the Charter, internal assurance team and the requirement to declare any conflicts of interest) there are also controls embedded in the property rationalisation approach to help ensure that it achieves the outcome of enabling sound asset recycling decisions based on robust information and analysis.

21.     Those controls are set out in the property rationalisation approach below (paragraphs 22 to 55), and the five general stages being:

Identification

22.     Potential sites for rationalisation are initially identified by Panuku or by council business units in a number of ways, including:

a)   council business units advise Panuku when they cease to require a property for a council service purpose.  For example, a new library facility may be built in a community or a roading project is completed.  Once there is no longer a planned and budgeted service use for a property, it is subsequently transferred to Panuku for management and rationalisation.

b)   Panuku maintains a register of all council owned properties and proactively reviews this to identify opportunities.

23.     To ensure information is up to date and regularly reviewed, Panuku also maintains a register of all non-service property that it manages until it is required by the relevant council/group business unit for a service purpose.  The register records anticipated dates that the property will be required by the relevant business unit.  This information is checked regularly with business units and updated as required.  For example, properties may be held for a future Auckland Transport roading project.  However, if the project requirements change, certain properties may no longer be needed for the reason for which they are being held.

24.     Any property that is potentially surplus to requirements is reviewed and assessed by Panuku’s Portfolio Review team.   Site assessments include property information, site features and high-level planning and statutory information for each property.

25.     To ensure that only non-service property is considered for rationalisation:

a)   site assessments are sent to any relevant business units across the group to review the property against policy and requirements.  For example, if a property formed as open space is reviewed, Parks and Recreation Policy will undertake a strategic assessment to ascertain whether the property is required to deliver current and future parks and open space outcomes in accordance with the Auckland Plan, Parks and Open Spaces Acquisition Policy (2013) and Open Space Provision Policy, or if it is no longer required as part of the open space network.

b)   a signed ‘formal position document’ is obtained from the general manager of the current council business unit which manages any property (if not managed by Panuku). This confirms that the property is no longer required by the business unit for the service use which had been delivered from the property and that the business unit agrees to the rationalisation process commencing for the property.

26.     If a property is no longer required for the service use for which it was acquired or held, the rationalisation process would be undertaken for the property.

27.     Some potential properties identified for rationalisation are not progressed, for example:

a)   properties which have a clearly identified, planned and funded service use or future funded use.  If an identified planned and funded alternative service use is identified for a property, it is retained for service or infrastructure purposes.

b)   if the council business unit which currently manages the property does not agree that the property should be considered for rationalisation. 

Investigation

28.     Once properties have been identified for rationalisation, further investigation is carried out into the property and its feasibility for rationalisation.

29.     In addition to the earlier site assessment, due diligence into the property title is carried out to ensure all legal requirements that need to be complied with are identified. This includes investigations regarding any Public Work Act 1981 offer back obligations, whether it is an endowment property, whether it is a park, heritage assessments, covenants, treaty or Reserves Act 1977 and other legal requirements.

 

 

 

30.     To ensure value for money is achieved in the disposal, properties identified for disposal are then reviewed by Panuku’s ‘Value Add Working Group’, which is a group of senior, cross-functional Panuku staff. The role of the Working Group is to review property to identify strategic development opportunities and value-add opportunities prior to disposal and/or development, either on a site specific or wider area basis.

31.     For all properties which commence the rationalisation process, Auckland Council Land Advisory Services team research the property and prepare a ‘rationalisation report’. This report sets out conditions or issues which need to be met to enable a property to be sold.  Panuku then ensures these recommendations and conditions are met as part of the rationalisation process.  Recommendations and conditions can include:

·     no council department or CCO has an alternative use for the property

·     property specific Public Works Act 1984, Reserves Act 1977, and Local Government Act 2002 requirements and recommendations

·     that as far as is practicable, any/all future use is consistent with the outcomes sought within the Auckland Plan

·     Significance and Engagement Policy requirements and recommendations.

32.     The rationalisation report can highlight if legal advice is specifically required, however legal input is not always requested at this stage. Legal Services does review all disposals when actually proceeding to settlement, and has agreed a more integrated sign-off process with Community Facilities and Panuku (discussed below).

33.     Initial market investigations are carried out to assess whether there are any willing buyers, and whether a contestable or non-contestable process is appropriate.

a)   The majority of properties sold by Panuku are done so via contestable market processes.  This means that a property is promoted, usually through an appointed agent, to ensure that anyone who has an interest in purchasing that property is aware it is for sale and has the opportunity to make a bid. 

b)   There are properties where a decision is made to sell non contestably, to an identified sole party.  Any such decisions are made by the Panuku board in accordance with a policy framework (the framework provides for non-contestable processes where the group is trying to achieve strategic outcomes other than just achieving an optimal financial return, and where those strategic outcomes will be advanced by the particular party concerned).  Examples have included Kāinga Ora, iwi, NZ Housing Foundation and/or where there is a neighbouring property owner that will achieve a superior development outcome for the city by having a bigger development block. 

34.     Panuku also maintains a register of purchaser enquiries received by Council from members of the public interested in acquiring council owned land.  Properties are proactively reviewed following purchaser enquiries and the enquirer kept informed about the process and outcomes.

35.     Valuations are obtained from independent valuers which are on the group valuation panel. These inform future negotiations. Prior to instructing valuers, information is sought from the valuer as to any potential conflicts of interest.  Valuers are selected based on subject matter expertise as to the form and type of valuation required for a specific property.  If there is a potential conflict of interest between the valuer and the client for a particular property, the services of the valuer would not be used in that instance.

 

 

 

 

36.     The number of valuations sought in relation to any property depends largely on whether the property is to be sold via a contestable or non-contestable process.

a)   For properties that are being sold contestably, one independent valuation is obtained. This is because it will always be the market (i.e. a willing buyer) that determines the actual value of a property.  Virtually all property owners employ a contestable process to get fair value for their property. Given the majority of properties sold are done so via a contestable market process, there is little value in paying for multiple valuations on each property. 

b)   For properties being sold via a non-contestable process, two independent valuations will be obtained.  This reflects the fact that there is more reliance on the valuation advice when selling non contestably. This will assist in providing assurance that value has been obtained.

c)   Where it is a high value property or there are high levels of public interest, additional valuations may be obtained.

37.     Regular work is done to manage the risk of any changes in the property purchase market. Panuku have an awareness of the market given their role in the market as Auckland Council’s urban regeneration agency.  Proactive monitoring of any risk of market downturn also takes place through regular, on-going market testing and market engagement with different sectors of the property market. This is particularly important given current economic circumstances.

Consultation

38.     Once the investigation stage is completed, input into the rationalisation decision is sought from interested parties.

39.     For some properties public consultation will be undertaken to satisfy the council’s obligations under Part 6 of the Local Government Act 2002 (LGA).  Decisions on whether or not to consult are made with reference to the Significance and Engagement policy and consultation is conducted by Panuku.

40.     Where the property was acquired or has been used as a park consultation may be also be required under section 138 of the LGA.  If the properties are reserves and subject to the Reserves Act 1977 the reserve status will need to be revoked.

41.     Where the property is an endowment property then the donor will need to be given a reasonable opportunity to comment on the intended sale under section 140 of the LGA.

42.     Local boards are informed of the commencement of the rationalisation process for properties in its area via the local board Area Managers.  The starting point of local board engagement is usually via a workshop with the relevant local board.  Information is provided about properties being rationalised in the local board area and details of the investigation completed.  If a local board expresses an interest in a site being retained, this is referred to the relevant council department to ascertain if it supports, and has the budget, to enable the site to be retained for the proposed service use.  Once any issues raised by the local board are addressed, the views and preferences of the relevant local board(s) are sought by Panuku via written report at a regular business meeting.

43.     Each relevant mana whenua group is contacted independently and requested to give feedback. This provides mana whenua the opportunity to respond with any issues of cultural significance the group would like to formally express in relation to the subject properties.

44.     Mana whenua groups are also invited to express potential commercial interest in the subject sites.  In the event the sites are approved for sale, all groups will be alerted of the decision, and all groups are alerted once a property comes on the market.

 

 

 

 

Approval

45.     To reflect the seriousness of a decision to dispose of council property, even where non-service, specific delegated powers are in place for the disposal of non-service property.

46.     Ordinarily, the Panuku Board approves a report for each property rationalisation before it is recommended to the Finance and Performance Committee.  In the context of the Emergency Budget and the significant increase in the pipeline the Finance and Performance committee approval may occur earlier in the process (before all the stages are complete).  The Panuku Board will still approve all properties for sale and should a property no longer be deemed appropriate this will be reported back to the Finance and Performance Committee.

47.     The Auckland Council Governing Body Terms of Reference record the decision-making responsibilities of the Governing Body and the delegated decision-making powers of its committees. They provide that:

a)   Governing Body must approve all disposals that are not in accordance with the Long-Term Plan.

b)   The Finance and Performance Committee is responsible for approving property disposals which are in accordance with the Long-Term Plan.

48.     The Auckland Council Chief Executive Delegations Register records powers which have been delegated by the Governing Body to the Chief Executive and staff. Although the Governing Body has delegated its responsibilities, duties and powers to the Chief Executive to act on any matter subject to certain restrictions the usual practice is for decisions relating to land transactions to be considered at the Finance and Performance Committee.

49.     When resolutions are passed to dispose of properties, authority for the final terms and conditions of sale are usually delegated to the Panuku Development Auckland board.

50.     The principles agreed in the Finance and Performance Committee ‘Emergency Budget 2020/2021 – Asset Recycling’ report on 16 July 2020 include that regular reporting will take place to the Finance and Performance Committee on the pipeline of properties and progress against the budget. This may include status updates for individual properties, potential additions and deletions to the pipeline and management of risks.

Sales process

51.     If there are offer back obligations under the Public Works Act these will occur prior to any sale process.

52.     Once approval has been given, Panuku progress the contestable/non contestable market process.  Any real estate agents involved are bound by the requirements of the Real Estate Agents Act 2008, the Regulations and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012.

53.     Offers are considered and negotiations are entered into with the purchaser(s). The principles agreed in the Finance and Performance Committee ‘Emergency Budget 2020/2021 – Asset Recycling’ report on 16 July 2020 include that properties will not be disposed of for less than 90 per cent of the valuation without approval of the Finance and Performance Committee.

54.     Agreements for sale and purchase are prepared and executed by Panuku. Legal Services (or one of Council’s external legal advisors) is usually involved in the preparation of the sale and purchase agreement, but there is not a strict requirement for that or for clearance advice at this stage. Instead, Legal Services’ formal review of the legality and property approval of the disposal is actually made at settlement, through execution of the Authorisation & Instruction Form to permit the electronic title transfer by LINZ (equivalent to the old memorandum of transfer).

 

 

55.     For efficiency and an even more improved assurance around disposal process, Panuku, Community Facilities and Legal Services have agreed to bring this legal sign-off forward, prior to signing any sale agreement. This effectively allows the transaction to be entered into with the benefit of a solicitor’s certificate, and has benefits under the Local Government Act 2002, as well as some efficiency benefits in streamlining internal clearance processes.

56.     At settlement, the Manager, Projects & Transactions (Legal Services) and Head of Property and Commercial Business (Community Facilities) jointly sign the local government version of the A&I Form which formally attests that the council has passed the “necessary resolutions as required by its empowering constitution, rules or statute to authorise the transaction”; and also that they have been given the appropriate authority to act. Signing of the A&I Forms will be expedited by the earlier legal sign-off, instead of conducting a retrospective legal review at a point when council is already contractually obliged to settle.

Tauākī whakaaweawe āhuarangi

Climate impact statement

57.     There is no climate impact from the recommendations of this report.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

58.     Asset recycling takes a group approach. Council and CCOs all play a role in the property rationalisation process as set out in this report.

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

Local impacts and local board views

59.     Decisions on property rationalisation are a Governing Body or Finance and Performance Committee responsibility, taking into account local board views and preferences.

Tauākī whakaaweawe Māori

Māori impact statement

60.     Māori have an active and specific role in Auckland, including kaitiakitanga (guardianship) of our land and marine resources.  Land has a specific role in protecting, enabling and building Māori social and cultural capital. Local marae, kohanga reo, and other Māori entities offer spiritual, cultural, as well as a range of social, educational, health and justice services for the community.

61.     The importance of effective communication and engagement with Māori about land is understood.  The process to date undertaken by Panuku is engagement with mana whenua groups across the region as set out in this report. 

Ngā ritenga ā-pūtea

Financial implications

62.     There are no financial implications from this process review. More generally, capital receipts from the sale of properties not required by Auckland Council contribute to the Emergency and 10-year Budgets by providing the Council with an efficient use of capital and prioritisation of funds to achieve its activities and projects.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

63.     Risks identified with the property rationalisation report are discussed in the body of the report.

64.     There may be a perceived risk that a property is sold which could still be required for future service use. The risk of that occurring is assessed as low, given the checks in place across the council group before a property is considered for rationalisation. 

65.     There is a risk that the maximum value is not achieved from a property due to a softening property market.  This is mitigated by the proactive monitoring of different sectors of the market for any risk of market downturn conducted by Panuku as set out in paragraph 36.

66.     There is a risk of legal challenge to any sale by a prior owner of a property or other interested or affected party. The risk of that occurring is assessed as low, given the legal due diligence that will be completed as well as the strict compliance with all legal requirements as part of the rationalisation process.

Ngā koringa ā-muri

Next steps

67.     Any process recommendations from the Audit and Risk Committee will be implemented so far as reasonably possible before further property rationalisation decisions are considered by the Finance and Performance Committee in September 2020.

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Emergency Budget Asset recycling June 2020

73

b

Emergency Budget Asset Recycling July 2020

91

c

Asset Recycling Finance and Performance Committee report 16 July 2020

105

     

Ngā kaihaina

Signatories

Authors

Ross Chirnside – Programme Lead Value For Money

Anita Furniss - Executive Officer - Finance Division

Authorisers

Kevin Ramsay - Acting Group Chief Financial Officer

Phil Wilson - Governance Director

 


Audit and Risk Committee

15 September 2020

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Audit and Risk Committee

15 September 2020

 


 


 


 


 


 


 


 


 


 


 


 


 


Audit and Risk Committee

15 September 2020

 


 


 


 


 


 


 


 


Audit and Risk Committee

15 September 2020

 

Health, Safety and Wellbeing update - August 2020

File No.: CP2020/12559

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To update the committee on Auckland Council’s health, safety and wellbeing (HSW) performance.

Whakarāpopototanga matua

Executive summary

COVID-19 specific matters

2.       At 12 PM, Wednesday, 12 August 2020, Auckland moved into Alert Level 3. Supporting the organisation has been the priority for HSW in the lead up to this and during the weeks Auckland was at Alert Level 3. There have been multiple streams of work to support the organisation and maintain business continuity, led by Corporate Property with specialist input from People & Performance, HSW, ICT, Risk & Assurance, and Communications. HSW staff have been deployed to Auckland Emergency Management and are supporting the organisation in its response.

3.       At midnight on Sunday 30 August, Auckland moved back to Level 2.  To support this there has been considerable effort to manage return to work of council staff safely and prudently. This has involved considerable communications to all staff about how to work within the restrictions of Level 2 as appropriate. There has been a focus on masking, contact tracing, and refining a process to deal with a scenario where someone in a team has COVID-19. 

4.       There has also been much work done on employee wellbeing during the initial Alert Levels 4 and 3 lockdown, 25 March 2020 – 13 May 2020, and subsequently. The work undertaken is detailed in the report and the council is continuing to see what lessons can be taken from experiences to date.

Normal business

5.       HSW, like many parts of the organisation have had to adjust to reflect the challenges of COVID-19 and this has involved the reprioritisation of many of our programmes. This is discussed in more detail further on in this report. In particular, we have given greater priority to our wellbeing proposition, which has been positively received by employees.

6.       The operating model (way we are organised) is being reviewed by the Transition Unit to ensure that it is fit for purpose and structured in the right way to deliver the organisation’s strategy Kia Manawaroa Tātou. In particular, this will focus on maximizing the outcomes from the current model of a central specialist team working alongside embedded specialists in the business units.

7.       There have been five notifiable incidents in the period May to August 2020, since the last Audit and Risk Committee report. Some of the key lessons from those incidents are highlighted below in section 19.  Reflecting the significant number of employees who have worked from home over the course of the year, non-notifiable incidents have trended down. The data shows that individuals responsible for closing out incidents have not necessarily done so in line with our expectations. The reasons for this are being investigated and could range from a lack of entering outcomes into the HSW electronic safety recording system (Risk Manager) through to a lack of ownership by the people responsible.

8.       A review of Risk Manager has highlighted the potential benefit of developing an in-house solution based on the existing council technology platform. There is further work to be done before a final decision is made. This is an opportunity to reinforce the importance of accurately capturing incidents and mitigation steps undertaken in response.

9.       Safe365 (the assurance system the council uses for internal HSW assessments) continues to be our best lead indicator of the organisation’s HSW culture. The current aggregated result of 61 per cent is above the industry sector 57 per cent benchmark. Unfortunately, COVID-19 has affected the annual verification programme, but we are working towards verifying six business areas by the end of September 2020.

Ngā tūtohunga

Recommendation/s

That the Audit and Risk Committee:

a)      note the summary and organisational responses in the report and 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, along with any commentary the committee thinks appropriate

b)      forward the report to Local Boards for their information.

 

 

Horopaki

Context

10.     This report provides suitable information to enable the committee to provide objective advice and recommendations to the governing body on the adequacy and functioning of the council’s HSW risk management system.

Tātaritanga me ngā tohutohu

Analysis and advice

COVID-19 specific matters

COVID-19 Alert Level 3 announced on 12 August 2020

11.     As with the initial COVID-19 lockdowns, Auckland Council has acted on a number of fronts to ensure staff and visitor safety is at the forefront of our actions. This includes:

a)      A Crisis Management Team, under Ian Maxwell, comprised of senior leaders and charged with overseeing the organisation’s preparedness, meets several times a week. There is also a Corporate Resilience Team, which reports into the Crisis Management Team, that is responsible for preparing guidelines and giving effect to council’s response.

b)      Personal Protective Equipment (PPE): Auckland Council has taken steps to ensure there are sufficient stocks of PPE, including masks, which are available for council’s essential workers.

c)      Support for employees working from home has been reviewed and updated to reflect lessons learned from the first lockdown. This includes guidance and support for people leaders and team members.

d)      Track and tracing: now that initial issues have been worked out, the Government’s QR code posters have been distributed to council facilities. The importance of individual diaries has been emphasised to staff and tracing functionality is in place in the buildings, using ICT login data, sign on sheets should we be required to provide this information to Ministry of Health.

e)      Auckland moved from Alert Level 3 to Level 2 at 11:59 PM on Sunday, 30 August 2020.  In preparation for this, comprehensive guidance was provided to people leaders and employees about the council's approach to what facilities would be open and at what level of occupancy, physical distancing, mask wearing, and contact tracing.

Wellbeing

12.     There has been a particular focus on employee wellbeing over the COVID-19 lockdowns. Although Employee Assistance Programme (EAP) usage during the initial lockdown period declined, there were several complex wellbeing cases reflecting the stress a number of our people experienced at this time. These included depression, anxiety, stress, and relationship discord with family.

13.     EAP, Manawa Rahi (Auckland Council’s conflict resolution service), and the Wellbeing Hub provide specific support which includes:

·    Mental health toolkits - staying connected

·    Budgeting in a crisis

·    Resilience webtalk – Dr Lucy Hone story

·    Physical wellbeing

·    Working remotely and work life balance.

14.     We are also working to “train-the-trainer” in the ‘5 Ways to Wellbeing workshop’, which has previously been a well patronised offering, so council presenters can deliver workshops to potentially higher numbers of participants at lower cost.

15.     The capability of our people to operate in a changing environment with the inevitable concerns over job insecurity is of real concern to employees and unquestionably results in increasing levels of anxiety and lowered mental wellbeing. Resilience training webinars have been developed and are now being delivered, and EAP is available 24 hours / 7 days a week for our people who have any concerns.

16.     The effectiveness of the wellbeing programme was provided during the recent COVID-19 staff pulse survey when 85 per cent of staff agreed or strongly agreed that the organisation actively looks after its employees.

Normal business

17.     Attachment A to the report is the HSW dashboard for September 2020.

Changing workplace

18.     Following the potential savings outlined in the Emergency Budget, a transition unit is leading the work to review the council’s operating model to find more efficient ways to organise ourselves and deliver services. As part of its program of work the Transition Unit will look at how Auckland Council’s HSW function is delivered under the new model to ensure it remains relevant and effective.

19.     It is expected that Transition Unit review will be completed by November 2020 and the review of the HSW strategy and framework will be completed as soon as possible after that.

Notifiable Incidents

20.     Five incidents have been notified to Worksafe in the period May to August 2020 as detailed in the table below. The key lessons from these incidents are:

#

Incident Details

Location

Status

1

Unconscious person rescued from Main pool.

Glenfield Pool & Leisure Centre

WorkSafe have not requested any further information. Investigation by Corporate HSW.

2

A member of the public passed away after suffering a medical event.

Manurewa Pool & Leisure Centre

Investigated by police. No further action required from WorkSafe.

3

AIMS worker dropped a running chain saw while tree trimming.

Public property

Reported to WorkSafe. Incident investigated by AIM.

4

Contractor worker suffered a minor injury after a chainsaw came into contact with his upper thigh.

Huia Park

Investigated by contracting company - Alternative style of upper thigh PPE being investigated and will be phased in. No further action required from WorkSafe.

 

5

Contractor worker struck underground gas line pipe with digger while excavating trench.

Grey Lynn Rugby stadium

Contracting company conducted investigation with Community Facilities HSW. WorkSafe notified - no further action required.

 

 

·    Incident #1 provided lessons of shallow water black-out (SWB). SWB is a term used to describe a loss of consciousness under water caused by a lack of oxygen to the brain following breath-holding. It is triggered by breath holding repeatedly and for too long. Without immediate rescue, the swimmer quickly drowns. Active Recreation have taken swift action to raise awareness of shallow water blackout amongst their lifeguards and are identifying further opportunities to raise awareness of this issue.

·    Incident #4 highlighted the requirement for suitable PPE. A chainsaw contacted a free hanging adjustment strap of the upper thigh protective ‘chaps’ of the injured person. The chainsaw bar “grabbed” the adjustment strap and the bar tip was drawn through the closure of the chaps, cutting the adjustment strap in the process and making a 40mm laceration in the left inner knee area. The design of the chainsaw chaps is being reviewed to see if there are brands/ models available that do not have the same loose strap hazard.

Incidents

21.     Trips, slips and falls have been identified as the top incident category with 214 reported incidents during the period from February 2020 to 31 August 2020. Incident reporting has increased post initial lock-down and is currently tracking at approximately 80 per cent of pre- lockdown levels. Incident and corrective action management within expected timelines is being exceeded so all incident and corrective action owners will be contacted advising them of the expectations to manage incidents and close-out corrective actions within expected timelines.

22.     Throughout the first COVID-19 emergency period (21 Mar – 8 June 2020) there were 26 reported work at home incidents from poor workstation set-ups that resulted in musculo-skeletal injuries. Corporate Property are working closely with the corporate HSW team to identify how our people can best be supported in the home environment. Data on whether the August Alert Level 3 lockdown has resulted in further such injuries will be provided in the next update.

23.     Timely injury management continues through our partnership with Wellnz as all programme key performance indicators were achieved over the last reporting quarter.

Safe365 assessment

24.     HSW internal self-assessments are undertaken across council using the Safe365 assurance system.

25.     The Safe365 dashboard provides excellent insights into the health and safety capability using the innovative and interactive Safe365 starburst (see Figure 1 below). The centre of the starburst is the overall health and safety status. Surrounding the index score are the results across the ten Safe365 assessment modules. The outer ring shows results for each competency within each module.

26.     The Safe365 starburst within the Safe365 platform allows the user to hover over different components of the Safe365 health and safety assessment results and see the areas where there is strong capability and areas for improvement. The council has 47 starbursts across its business that are aggregated into the Auckland Council dashboard starburst at figure 1.

                                               

Figure 1: Safe365 Auckland Council aggregated dashboard starburst

 

Safe 365 Starburst Modules

1. Director knowledge

6. Emergency preparedness

2. Management knowledge

7. Health and safety data collection

3. Worker / Contractor knowledge

8. Management reporting

4. Health and safety management system

9. Worker/Contractor engagement

5. Verification and audit activities

10. Culture and behaviours

 

27.     The current aggregated council Safe365 dashboard score is 61 per cent indicating that council is likely to be generally compliant with some areas of strong capability as defined by Safe365. It should be noted that the aggregated score of 61 per cent is currently above the Safe365 industry sector score of 57% as provided by Safe365 benchmark data.

Auckland Council aggregated dashboard starburst summary:

Module

Description

Improvement Areas

2

Management knowledge

Management risk expertise and HSW Inductions

5

Verification and audit activities

Risk assessment and Internal auditing

6

Emergency preparedness

Crisis management expertise and strong emergency preparedness and planning to respond to an emergency

 

28.     Through our self-assessments, modules 2, 5, and 6 are focus areas for improvement (indicated by various shades of orange).

·    Module 2 is made up of 8 areas and making improvements in the module areas of risk expertise and induction will improve the Management Knowledge rating.

·    Module 5 is made up of 7 areas and making improvements in the module areas of risk assessment and internal auditing will improve the Verification & Audit Activities rating.

·    Module 6 is made up of 7 areas and making improvements in crisis management expertise and ensuring strong preparedness and planning to respond to an emergency will improve the Emergency Preparedness rating.

Risk Profiling

29.     The council has previously developed and referred to a ‘critical risk’ list that identified 19 critical risk labels. An evidence-based approach to determine the critical risks has not been undertaken previously, and some descriptors had been inaccurately identified as risks. These issues have now been addressed.

30.     A new evidence-based approach has commenced that will accurately identify the HSW risk profile of council, ultimately allowing resources to be targeted to mitigate, manage, and monitor the future identified top ‘critical’ risks more effectively. Several workshops have been held across council departments with HSW specialists, and a model developed on agreed risk criteria has been used in a trial. Further adaptation of this model is now required based on feedback prior to wider testing that will lead to robust data collection, analysis and evaluation of council risks.

Incident and Risk Management

31.     Our HSW electronic safety recording system (Risk Manager) is under-utilised by our people so it is challenging to obtain robust data that provides meaningful insights into our HSW landscape. A review to assess the suitability and value of this system revealed the potential for ongoing cost savings from developing a HSW recording system based on the existing council technology platform.  Significant consultation has occurred through numerous workshops to determine Risk Manager user issues and identify potential solutions. 

32.     Phase 1 of 3 (incident and risk management) of this project is on schedule and the new platform will be designed and built by an internal solutions architect. A working model to test in a pilot trial is scheduled to be available for pilot testing during October 2020, with the new tool becoming operational at end of March 2021.

External engagement

33.     The corporate HSW team have frequent and meaningful contact with counterparts in the council-controlled organisations through formal and informal channels. Sharing of ideas, risks, processes and procedures, and strategic thinking take place which accesses the available knowledge and experience across the group. This sharing of information and resources was very evident and beneficial during the recent COVID-19 Alert level 4 lockdown.

Tauākī whakaaweawe āhuarangi

Climate impact statement

34.     The information in this report does not impact on climate change.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

35.     This report is based on council activities only and does not provide a group-wide view.

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

Local impacts and local board views

36.     Local boards are aware of the changing environment and financial impact on council.

Tauākī whakaaweawe Māori

Māori impact statement

37.     No additional Māori impact.

Ngā ritenga ā-pūtea

Financial implications

38.     There are no additional financial implications in this report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

39.     The risk of non-compliance with health and safety is recorded in the council’s top risk register. This risk register entry details the controls and mitigations in place.

Ngā koringa ā-muri

Next steps

40.     Ongoing focus on well-being offering, including bringing the ‘5 Ways to Well-being’ workshop in house.

41.     HSW and Corporate Property will continue to work on ensuring employees can work from home safely and with appropriate support.

42.     External verification of the Safe365 self-assessments are undertaken across six selected business areas each year by an external certified auditor. The COVID-19 pandemic impacted the delivery of the annual external verification programme which was scheduled to be completed by the end of June 2020. It is anticipated that the external verification of six business areas will be completed by the end of September 2020.

43.     HSW and ICT will progress a pilot trial of the new HSW safety recording platform.

44.     Upon completion of the Transition Unit’s review of the council’s operating model the corporate HSW team will commence the identification of key tasks to enable effective oversight of the HSW Framework to achieve progressively higher standards of work health and safety, and worker wellbeing.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

HSW Dashboard

121

     

Ngā kaihaina

Signatories

Authors

Andre Lubbe - Head of Employment Relations

Jan Pratt - Senior Administrator

Authorisers

Patricia Reade – Director People and Performance

Phil Wilson - Governance Director

 


Audit and Risk Committee

15 September 2020

 


 


Audit and Risk Committee

15 September 2020

 

Assurance Strategy 2019-22, Assurance Plan 2020-21 and Assurance Services Charter

File No.: CP2020/12551

 

  

 

Te take mō te pūrongo

Purpose of the report

1.    To brief the committee and seek feedback on:

·    progress against year 1 of the Assurance Strategy 2019-22

·    the draft Assurance Plan 2020/2021.

2.    To approve the Auckland Council Assurance Services Charter.

Whakarāpopototanga matua

Executive summary

3.    This committee approved the Assurance Strategy 2019-22 in August 2019. The Strategy is attached at Attachment A.

4.    Although the Assurance Plan 2019-20 was refocussed in April 2020 to respond to the heightened risk of control breakdown as a result of the COVID-19 pandemic, good progress has been made against the year 1 priorities contained in the Assurance Strategy 2019-22.

5.    The approach to fraud and integrity risk mitigation strategy has been executed as planned.

6.    A draft Assurance Plan 2020- 2021 has been provided for the committee’s review and feedback (Attachment B). The assurance plan contains a rolling schedule of audits and reviews to assess the effectiveness of key controls and processes that manage council’s top risks, core business processes and high priority issues. The refocussed COVID-19 Assurance programme will remain a primary feature of the programme into the foreseeable future.

7.    Members of the council’s Executive Leadership Team (ELT) are providing feedback alongside this committee and we will bring the Assurance programme back to the Audit and Risk Committee for endorsement in December 2020.

8.    The Auckland Council Assurance Services Charter (Attachment C) establishes the mandate, scope of work, independence and accountabilities of the Assurance Services department.  It is a requirement of the Institute of Internal Audit (IIA) International Professional Practices Framework that the committee approve this charter annually.   There are no substantive changes to the charter which was last approved in August 2019.

 

 

Ngā tūtohunga

Recommendation/s

That the Audit and Risk Committee:

a)      note progress against year 1 of the 2019-22 Assurance Strategy

b)      note the draft Assurance Plan 2020-2021 and provide feedback to staff

c)      approve the Auckland Council Assurance Services Charter.

 

 

Horopaki

Context

9.    The committee approved the 2019-22 Assurance Strategy in August 2019. It is attached at Appendix A.

10.  The 2019-22 Assurance Strategy represented the first refresh of the Assurance Strategy since 2015.

11.  Since 2015 the Assurance Services department (the department) has focussed on progressively moving the mix of assurance work from low level compliance assurance work to ‘real-time’ advice including:

·    the provision of assurance on whether controls are ‘fit for purpose’ and operating effectively (getting the basics right)

·    continuing to align its programme with Council’s risk framework and prioritisation

·    continuing the focus on education, training and awareness raising - in particular in the fraud and integrity areas, and advice on governance and internal control matters

·    the provision of timely advice on probity (procurement and projects), management of conflicts, integrity and internal control

·    Aligning the work of the department to the key pillars of Our Charter which was endorsed by the Governing Body in March 2018, and the ‘Speak Up’ initiative which is core to the success of Our Charter

·    providing governance support, training and advice to elected members – in particular around appropriate management of conflicts of interests. Our Charter has been integrated into the delivery of ongoing education, training and support to elected members.

12.  The 2019-22 Assurance Strategy does not alter radically the general direction and foundation set by the previous strategy.  However, the department is now leveraging a new Assurance Services structure to embed an integrated and agile approach that draws on all the assurance disciplines and targets the best resources and skills depending on the issue. 

13.  The following six strategic objectives have been developed for Assurance Services:

a)       embed Our Charter and ‘Speak Up’

b)      strengthen culture and capability - balance reactive and proactive/preventative activities  

c)      make the most of expertise and resources - implement integrated ways of working to deliver probity, integrity, audit and elected member support – optimise use of external resources for additional investigation and specialist advisor work

d)      maintain and build visibility, trust and confidence in the team and council – communications, transparency and proactive reporting

e)      maximise efficiency in detection and response and enable continuous improvement across the council through expanded use of data analytics

f)       build strong alignment, close collaboration and coordination with the Risk and Insurance, Health, Safety and Wellbeing, Financial Control, Nga Mātārae, and Privacy/ Local Government Official Information and Meetings Act teams.

14.  These objectives, supported by priority initiatives over the next three years, will enable the department to prioritise and focus its work programme and enable trust and confidence in the council.

Tātaritanga me ngā tohutohu

Analysis and advice

Progress against year 1 of the 2019-22 Assurance Strategy

15.  The department has made good progress against the Assurance Strategy 2019-22.

16.  Progress has been impacted by the COVID-19 pandemic and lockdown. The audit programme was quickly refocussed such that the primary focus of the work being performed is on the provision of assurance that core internal control is continuing to operate.

17.  Progress against the strategic priority areas for the first year of Assurance Strategy 2019-22 has been:

Develop and implement whole of assurance services response approach

·    The focus has been on a coordinated, risk-focused, tailored response that draws on all the assurance disciplines – integrity, audit, probity, elected member advice.

·    This approach has been strongly reflected in execution of the Covid-19 refocused Assurance Programme.

·    This has included the integration of data analytics as a means to identify and test higher risk transactions.

·    In 2021 we will develop the data assurance strategy to move to using data analytics as a tool to improve organisational performance.

Audit and Probity

·    The Assurance Plan 2019-20 has been delivered. We have reported against the Assurance Plan 2019-20 separately to this committee.

Integrity

·    The gift register has been published on the Auckland Council website since March 2020.

·    The conflict of interest declaration process for all staff was implemented in September 2019. Approximately 6500 staff have completed their declaration. This is an annual process completed on each staff member’s anniversary, or whenever a staff member’s circumstances change. This represents a significant improvement in conflict of interest management.

·    Integrity e-learning has been delivered. Uptake to date has been low (approximately 900 staff have completed the e-learning module). The Executive Leadership Team has recently mandated the completion of this module as well as cyber security e-learning. The department is working with ICT and People and Performance to give effect to this directive. The expectation is that all staff will have completed this e-learning by December.

·    The 0800 INTEGRITY line and speak up channel has been maintained.

·    Assurance Services is working with other speak up channels to improve information sharing, co-ordination and reporting to ELT.

Elected Members Advice

·    There has been a consistent number of requests for personalised interest management advice from elected local board members. This advice has included advice regarding managing the perception of predetermination, as well as financial conflict of interest management.

·    The Assurance Services department have worked alongside council’s legal team and the Auditor-General Office to ensure that all elected members are compliant with the Local Government Members Interest Act 1968 disqualification rule.

·    A series of workshops introducing local board members to Assurance Services as well as a discussion on gifts and interest management has been offered to each of the local boards. The first of these sessions took place on 28 November 2019 with all 21 local boards to be visited before Christmas 2020.

·    The Assurance Services department together with the Auditor-General’s Office have facilitated two conflict of interest sessions as part of the Kura Kāwana elected member development programme entitled “Should I? Could I? Will I?” The sessions focussed on scenario-based learning and took place in February and March 2020. They were attended by 43 per cent of first term local board members. Feedback indicates 95 percent of attendees were satisfied with the workshops.

Pilot departmental “assurance checkup” approach

·    Assurance Services has partnered with Infrastructure and Environmental Services to identify needs and deliver tailored support – education, process audit, probity, integrity – whole team approach.

·    In 2021 we will expand this to include other higher risk areas of Council e.g. ACE, Regulatory and AIMS.

Fraud and Integrity risk mitigation

·    The approach to fraud and integrity risk mitigation has been executed as planned.

·    This has been achieved by:

an overriding ethos and recognition that fraud and integrity risk is real

oversight by this committee of Fraud and Integrity risks and mitigations as a “Top Risk”

the provision of dedicated resource

system and process controls:

§ budget setting and monitoring, delegations of financial authority, segregation of duties, vendor and payroll master file controls, robust internal and external recruitment processes

§ Physical security, ICT security controls, SAP profile set up, procurement processes, anti-money laundering framework

Conflict of Interest Declarations reminders for all staff and public publishing of the Gift Register

speak up framework – with a number of options for staff to “speak up” including the 0800INTEGRITY line

Assurance Plan 2019-20 including the use of data analytics integrated into the Audit and Probity work programme.

Assurance Plan 2020-2021

18.  The Assurance Services department provides independent assurance that council’s system of internal controls is designed appropriately and are operating as intended.

19.  The attached draft Assurance Plan 2020-21 adopts a rolling approach to plan and deliver reviews through three phases: scoping/planning, fieldwork and reporting. (Attachment B)

20.  In April 2020 this Committee approved a refocussed assurance plan, which provides assurance that key internal controls are continuing to operate while the Council responds to the COVID-19 pandemic. This focus will continue into the foreseeable future.

21.  The attached draft Assurance Plan 2020-21 includes reviews in progress, reviews due to be started and completed within the next six months, and potential future reviews subject to further planning. It is a living document to be updated on an ongoing basis in response to emerging risks and developing knowledge of business activities.

22.  Through these reviews, we will be able to provide assurance across a range of Our Charter principles. While much of our work relates to ‘We look after our money and assets’, we also cover other principles such as ‘We look after the people we serve’, e.g. through review of operational systems such as Asset Management Planning to support the LTP, and ‘We look after our safety and wellbeing’, e.g. through our work on health and safety.

Auckland Council Assurance Services Charter

23.  This committee reviews and approves the Assurance Services Charter annually. This charter establishes the department’s mandate, scope of work, independence and accountabilities.

24.  It is a requirement of the internal audit professional standards that the committee approve this charter.   There are no substantive changes to the charter which was last approved in August 2019.

Tauākī whakaaweawe āhuarangi

Climate impact statement

25.  There are no climate change impacts arising from this report.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

26.  The Assurance Strategy 2019-22 and Assurance Plan 2020-21 is primarily for council.  However, the Our Charter and speak up advisory and support activities and any audits of council systems and services that are used or shared by council and council-controlled organisations will benefit the council group.

27.  Panuku Development Auckland Limited, Regional Facilities Auckland and Auckland Tourism, Events and Economic Development use the 0800INTEGRITY line and the dedicated confidential integrity email address. The Assurance Services department are called on to respond to ‘Speak Ups’, undertake independent investigations and provide advice and assurance by these organisations.

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

Local impacts and local board views

28.  The views of local boards have not been sought in this report, or in the drafting of the Assurance Strategy 2019-22 and Assurance Plan 2020-21.

Tauākī whakaaweawe Māori

Māori impact statement

29.  The Assurance Strategy 2019-22 and Assurance Plan 2020-21 cover matters associated with council’s obligations under the Treaty of Waitangi.

30.  A key ongoing responsibility for the Head of Assurance Services is as a member of the Waharoa Group which is responsible for monitoring and reporting progress of council’s activities and projects in the Treaty Audit response workstream.

31.  Council’s obligations to Māori and the Treaty of Waitangi are a core part of Our Charter.  Assurance Services may investigate and support staff who have spoken up about issues where decisions and behaviours do not align with the principles in Our Charter.

Ngā ritenga ā-pūtea

Financial implications

32.  There are no financial implications as a result of this report.  All activity associated with drafting the Assurance Strategy 2019-22 and Assurance Plan 2020-21 have been met from within the Assurance Services department budget.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

33.  The provision of the Assurance Strategy 2019-22 and Assurance Plan 2020-21 is important to ensure council has an appropriate and effective controls assurance function and effective probity, fraud and integrity prevention processes and systems.

34.  The Assurance Strategy 2019-22 is aligned to the council’s corporate strategy and Our Charter and is informed by the top risk register to ensure it is focused on the priority areas.

35.  The proposed direction set for assurance and audit activity is subject to feedback from both the elected and independent members of this committee and from the Executive Leadership Team of council.

Ngā koringa ā-muri

Next steps

36.  Following feedback from this committee, staff will also seek feedback from key members of the Executive Leadership Team of council who have responsibilities towards assurance and audit activity. This feedback will be included, along with feedback from today’s meeting at the Audit and Risk committee meeting in December 2020.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

2019-22 Assurance Strategy

129

b

2021 Proposed Assurance Plan

133

c

Assurance Charter

135

     

Ngā kaihaina

Signatories

Authors

Gary Hale - Integrity and Investigations Manager

Nick Rennie - Manager Audit and Probity

Maureen Glassey - Principal Advisor Governance Elected Members

Authorisers

Mark Maloney - Head of Assurance Services

Phil Wilson - Governance Director

 


Audit and Risk Committee

15 September 2020

 


Audit and Risk Committee

15 September 2020

 


Audit and Risk Committee

15 September 2020

 


Audit and Risk Committee

15 September 2020

 


Audit and Risk Committee

15 September 2020

 


 


Audit and Risk Committee

15 September 2020

 


 


 


 

     

 


Audit and Risk Committee

15 September 2020

 

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

That the Audit and Risk Committee

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:  Council-controlled organisations' audit and financial risk updates

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)(i) - 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 prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied.

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 and operational information and details of audit findings which, if released, may jeopardise the commercial operations of the council-controlled organisations.

The report also contains risk reporting and detailed top risks reported confidentially to the council-controlled organisation's boards or Audit and Risk Committees. The council-controlled organisations have provided their risk report for Auckland Council's Audit and Risk Committee subject to confidentially.

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: Draft Annual Green Bond Report 2020

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 information which may only be made public following its release to the NZX.

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.

 

 

C3       CONFIDENTIAL:  Auckland Council Group 30 June 2020 NZX preliminary release and update on the 2019/2020 annual report

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 which may only be made public following its release to the NZX.

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.

 

 

C4       CONFIDENTIAL:  Assurance Services Activity Update

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)(i) - 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 prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied.

In particular, the report contains information which if released would jeopardise the effective delivery of the Assurance Services work programme.

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.

 


 

 

C5       CONFIDENTIAL:  Office of the Auditor-General and Audit New Zealand 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 from Audit New Zealand contains information regarding the annual report and financial results of the Auckland Council Group and Auckland Council as at 30 June 2020.

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.