Komiti Tātari me te Mātai Raru Tūpono /

Audit and Risk Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of the Audit and Risk Committee held remotely via Skype, on Monday, 23 August 2021 at 2.02pm. A recording of the meeting is available on the Auckland Council website at:

https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/meetings-council-bodies/Pages/webcasts-council-meetings.aspx

 

present

 

Chairperson

Sue Sheldon, CNZM

 

Deputy Chairperson

Cr Daniel Newman, JP

 

Members

Deputy Mayor Cr Bill Cashmore

 

 

Member Paul Conder, CA

 

 

Cr Shane Henderson

 

 

Member Bruce Robertson

 

Ex-officio

IMSB Chair David Taipari

Until 4.00pm, Item C1

 

ABSENT

 

Ex-officio

Mayor Phil Goff

 

 

ALSO PRESENT

 

 

Cr Linda Cooper

 

 

Cr Angela Dalton

 

 

Cr Chris Darby

 

 

Cr Wayne Walker

 

 

Cr John Watson

 

 

IN ATTENDANCE

 

 

Greg Schollum, Deputy Auditor-General

 

Andrea Reeves, Assistant Auditor-General Local Government

 

Athol Graham, Audit Director, Audit New Zealand

 

Penica Cortez, Audit Manager, Audit New Zealand

 


Audit and Risk Committee

23 August 2021

 

 

 

Note:   a roll-call was conducted that ascertained the following members were in attendance at the commencement of the meeting:  ü

 

Sue Sheldon, CNZM

ü

Cr Daniel Newman, JP

ü

Deputy Mayor Cr Bill Cashmore

ü

Bruce Robertson

ü

Paul Conder, CA

ü

IMSB Chair David Taipari

(Ex-officio)

ü

Cr Shane Henderson

ü

 

 

 

 

 

1          Apologies

 

Resolution number AUD/2021/40

MOVED by Chairperson S Sheldon, seconded by Deputy Chair Cr D Newman:  

That the Audit and Risk Committee:

a)         accept the apologies from Mayor P Goff for absence on council business and from IMSB Chair D Taipari for early departure.

CARRIED

 

 

 

2          Declaration of Interest

 

There were no declarations of interest.

 

 

 

3          Confirmation of Minutes

 

Resolution number AUD/2021/41

MOVED by Chairperson S Sheldon, seconded by Deputy Chair Cr D Newman:  

That the Audit and Risk Committee:

a)         confirm the ordinary minutes of its meeting, held on Tuesday, 18 May 2021 and the extraordinary minutes of its meeting, held on Tuesday, 22 June 2021, including the confidential sections, as true and correct records.

CARRIED

 

 

 

4          Petitions

 

There were no petitions.

 


 

 

5          Public Input

 

5.1

Report on investigation into certain complaints re West Park Marina

 

Richard Steel and June Kearney provided a PowerPoint presentation in support of this item. A copy has been placed on the official minutes and the Auckland Council website as a minutes attachment.

 

Resolution number AUD/2021/42

MOVED by Chairperson S Sheldon, seconded by Deputy Mayor Cr BC Cashmore:  

That the Audit and Risk Committee:

a)      thank Richard Steel and June Kearney for their presentation.

CARRIED

 

Attachments

a     23 August 2021 - Audit and Risk Committee - Item 5.1 - Public Input - Report on Investigation into certain complaints re West Park Marina - presentation

 

 

 

6          Local Board Input

 

There was no local board input.

 

 

 

7          Extraordinary Business

 

There was no extraordinary business.

 

 

 

8

Forward Work Programme

 

Resolution number AUD/2021/43

MOVED by Chairperson S Sheldon, seconded by Deputy Mayor Cr BC Cashmore:  

That the Audit and Risk Committee approve the forward work programme noting:

a)      the addition to the August 2021 meeting of items relating to the OAG management report on the 2021-2031 Long Term Plan and the City Rail Link update

b)      the deferral to the September 2021 meeting of the Health, Safety and Wellbeing (HSW) update

c)      that the first full reporting from Ports of Auckland Limited will commence in September 2021

d)        workshop items on Project and Programme benefit management, and the assessment of future Options for Insurance Arrangements have been included in August 2021

e)      the workshop item on Climate Change has been moved to September 2021.

CARRIED

 


 

 

9

Treaty Audit Monitoring Update

 

Resolution number AUD/2021/44

MOVED by Chairperson S Sheldon, seconded by IMSB Chair D Taipari:  

That the Audit and Risk Committee:

a)      receive the update on the monitoring and progress of the Treaty Audit Response Programme

b)      note the oversight and monitoring that has been performed by the Risk and Assurance department in relation to the Treaty Audit Response Programme

c)      note that the Risk and Assurance department will continue to report on a six-monthly basis on progress against the Treaty Audit Response Programme to this committee.

CARRIED

 

 

 

10

City Rail Link regular risk and assurance update

 

Resolution number AUD/2021/45

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

That the Audit and Risk Committee:

a)      note the update on Sponsor risk management activity relating to City Rail Link.

CARRIED

 

 

 

11

The Auditor-General's report to management on the interim audit for the year ended 30 June 2021

 

Resolution number AUD/2021/46

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

That the Audit and Risk Committee:

a)      note the matters identified in the Deputy Auditor-General’s interim audit report to management, for the year ended 30 June 2021, and management’s responses.

CARRIED

 

 

 

12

Audit Management Report on the Audit of the Long-term Plan 2021-2031

 

Resolution number AUD/2021/47

MOVED by Chairperson S Sheldon, seconded by Deputy Mayor Cr BC Cashmore:  

That the Audit and Risk Committee:

a)      note the matters identified by the Office of the Auditor-General and the council’s responses to the matters raised in the audit for the 10-year Budget 2021-2031.

CARRIED

 


 

 

13

Assurance Strategy 2019-22, Assurance Plan 2021-22 and Assurance Charter

 

Resolution number AUD/2021/48

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

That the Audit and Risk Committee:

a)      note progress against the 2019-2022 Assurance Strategy

b)      note and approve the draft 2021-2022 Assurance Plan 

c)      approve the Auckland Council Assurance Services Charter.

CARRIED

 

 

14

Auckland Council Group's NZX preliminary announcement and financial results to 30 June 2021

 

Resolution number AUD/2021/49

MOVED by Chairperson S Sheldon, seconded by Member P Conder:  

That the Audit and Risk Committee:

a)      note that there are no significant outstanding issues relating to the process for the preparation of the draft 2021 NZX release

b)      note the draft 2021 NZX release will be discussed later in this meeting in confidence.

CARRIED

 

 

15        Consideration of Extraordinary Items

 

There was no consideration of extraordinary items.

 

 

16        Procedural motion to exclude the public

Resolution number AUD/2021/50

MOVED by Chairperson S Sheldon, seconded by Deputy Mayor Cr BC Cashmore:  

That the Audit and Risk Committee:

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

b)      agree that Greg Schollum, Deputy Auditor-General, Athol Graham, Audit Director, Audit New Zealand, Penica Cortez, Audit Manager, Audit New Zealand and Andrea Reeves, Assistant Auditor-General – Local Government be permitted to remain for the confidential part of the meeting after the public has been excluded, because of their knowledge of matters, which will help the Audit and Risk Committee in its decision-making.

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

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

 

 

C1       CONFIDENTIAL: Council-controlled organisations' quarterly risk update - August 2021

 

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

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

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

s7(2)(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 risk reporting and detailed top risks confidential to the substantive council-controlled organisations' Boards or Audit and Risk Committees. The council-controlled organisations have provided their risk reports for the council's Audit and Risk Committee subject to confidentiality.

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: Council Group Post Insurance Renewal 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)(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 confidential information with respect to the outcome of 2021/2022 Insurance renewal , including loss limits and premiums.

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: 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 assurance services.

s48(1)(a)

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

 

C4       CONFIDENTIAL: Auckland Council Group's NZX preliminary announcement and financial results to 30 June 2021

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

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

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

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

In particular, the report contains information that will be included in the annual report for the year ended 30 June 2021 which cannot be made public until it is released 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.

 

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)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage.

In particular, the report contains information regarding the financial results of Auckland Council Group which cannot be made public until the group results are released 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.

 

 

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

CARRIED

 

 

3.12pm            The public was excluded.

 

 

 

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

 

 

6.19pm            The public was re-admitted.

 

 

restatementS

 

It was resolved while the public was excluded:

 

 

C1

CONFIDENTIAL: Council-controlled organisations' quarterly risk update - August 2021

 

Resolution number AUD/2021/51

MOVED by Chairperson S Sheldon, seconded by Member P Conder:   

That the Audit and Risk Committee:

a)      note the written and verbal updates provided by Auckland Unlimited and thank them for their attendance

b)      note the written updates provided by Auckland Transport, Eke Panuku and Watercare Services Limited

c)      refer the Council-controlled organisations’ quarterly risk update – August 2021 to the Council Controlled Organisation Oversight Committee for information

Restatement

d)      agree that the decisions be released in the open minutes, but this report and its attachments remain confidential.

 

 

C2

CONFIDENTIAL: Council Group Post Insurance Renewal Update

 

Resolution number AUD/2021/52

MOVED by Deputy Chair Cr D Newman, seconded by Member P Conder:  

That the Audit and Risk Committee:

a)      note the confirmation of the council group’s insurance placement for 2021/2022

b)      note the assessment of insurance options undertaken and the identification of the preferred option of the establishment of a self-insurance fund for appropriate future insurance arrangements

Restatement

c)      agree that the decisions be transferred to the open minutes, but the report remains in confidential.

 

 

C3

CONFIDENTIAL: Assurance Services Activity Update

 

Resolution number AUD/2021/53

MOVED by Chairperson S Sheldon, seconded by Deputy Chair Cr D Newman:  

That the Audit and Risk Committee:

a)        receive and note the update on assurance activities performed by the Risk and Assurance department

b)         agree that the recommendations contained in C3 Assurance Services Activity Update as it relates to Attachment C of the report (Report into Complaints over West Park Marina) be referred to Auckland Council's Chief Executive for a report back to the Planning Committee for its consideration and response

Restatement

c)         agree that the decisions be restated in the open minutes but that the Assurance Activities update report and attachments remain confidential.

 

 

 

C4

CONFIDENTIAL: Auckland Council Group's NZX preliminary announcement and financial results to 30 June 2021

 

Resolution number AUD/2021/54

MOVED by Member B Robertson, seconded by Deputy Chair Cr D Newman:  

That the Audit and Risk Committee:

a)         endorse the release of the draft 2021 NZX preliminary announcement and media release for the year ended 30 June 2021, subject to editorial and technical changes to the documents, with any significant changes to be notified and delegates approval to the Audit and Risk Committee Chairperson and the group chief financial officer

b)         recommend that, on 25 August 2021, the chair and deputy chair of the Finance and Performance Committee authorise the mayor and chief executive to approve and release the items identified in a) above to the NZX on 27 August 2021

Restatement

c)      agree that the report and attachment will remain confidential, but the decisions be restated in the open minutes.

 

 

C5

CONFIDENTIAL: Office of the Auditor-General and Audit New Zealand Briefing

 

Resolution number AUD/2021/55

MOVED by Member B Robertson, seconded by Deputy Mayor Cr BC Cashmore:  

That the Audit and Risk Committee:

a)      receive the information provided by the Auditor-General’s representatives Deputy Auditor-General Greg Schollum, Assistant Auditor-General – Local Government Andrea Reeves, Audit New Zealand Audit Director Athol Graham and Audit New Zealand Audit Manager Penica Cortez and thank them for their attendance

Restatement

b)      agree that the report and attachment will remain confidential, but the decisions be restated in the open minutes.

 

 

6.19pm                                               The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

 

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

 

 

 

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

 

 

 

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