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

 

Date:

Time:

Meeting Room:

Venue:

 

Monday, 13 September 2021

2.00pm

This meeting will be held remotely and a recording of the meeting will be available on 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

 

7 September 2021

 

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.

 

Code of conduct

 

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

 


Exclusion of the public – who needs to leave the meeting

 

Members of the public

 

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

 

Those who are not members of the public

 

General principles

 

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

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

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

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

 

Members of the meeting

 

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

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

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

 

Independent Māori Statutory Board

 

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

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

 

Staff

 

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

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

 

Local Board members

 

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

 

Council Controlled Organisations

 

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

 

 


Audit and Risk Committee

13 September 2021

 

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          Enterprise Risk Update - September 2021                                                                19

10        Health, Safety and Wellbeing Performance                                                              45

11        Hauora (Wellbeing) Review - Wellbeing Programme Update                                 65

12        Preparation of Auckland Council Group's draft annual report 2020/2021 and draft summary annual report 2020/2021                                                                            73

13        Consideration of Extraordinary Items

PUBLIC EXCLUDED

14        Procedural Motion to Exclude the Public                                                                 79

C1       CONFIDENTIAL: Recommendation of Auckland Council's draft annual report 2020/2021 and summary annual report 2020/2021                                                   79

C2       CONFIDENTIAL:  Council-controlled organisations' audit and risk updates       79

C3       CONFIDENTIAL: Ports of Auckland Limited audit and risk update                       80

C4       CONFIDENTIAL: Draft Annual Green Bond Report 2021                                        80

C5       CONFIDENTIAL: Office of the Auditor-General and Audit New Zealand Briefing 81


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, 23 August 2021, 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

13 September 2021

 

Forward Work Programme

File No.: CP2021/13183

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To review and approve remaining elements of 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 work 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.       There are no changes to the committee’s forward work programme.

 

Ngā tūtohunga

Recommendation/s

That the Audit and Risk Committee:

a)      approve the Audit and Risk Committee forward work programme.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

13

      

Ngā kaihaina

Signatories

Author

Gemma Wensor - Risk Advisor

Authorisers

Mark Maloney - General Manager Risk and Assurance

Phil Wilson - Director, Governance & CCO Partnerships

 



Audit and Risk Committee

13 September 2021

 

 

 

 

 

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

22 Feb

18 May

22 June (extraordinary meeting)

23 Aug

13 Sep

7 Dec

Audit and Risk Committee

GM Risk and Assurance

Work programme

Link to decision

Work programme

Link to decision

 

Work programme

Link to decision

Work programme

 

Work programme

Committee’s Annual performance report

Assurance

GM Risk and Assurance

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

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

Link to decision – confidential

 

Assurance Services performance against 2019-2022 Strategy, approval of annual assurance plan, and approval of Assurance Services Charter

Link to decision

 

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

GM Risk and Assurance

Treaty Audit Monitoring update

Link to decision

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

 

 

Treaty Audit Monitoring update

Link to decision

 

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

Enterprise Risk

Risk Services

Enterprise Risk Update

Link to decision

Enterprise Risk Update

Link to decision

 

 

Enterprise Risk Update

 

CCO Risk management

Facilitated by Risk Services

CCO quarterly risk report

Attendance by Auckland Transport

Link to decision - confidential

CCO quarterly risk report

Attendance by Panuku

Link to decision - confidential

 

CCO quarterly risk report

Attendance by Auckland Unlimited

Link to decision - confidential

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

Attendance by Watercare, Auckland Transport, Auckland Unlimited, Panuku and Ports of Auckland

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 (included in Enterprise Risk Update)

City Rail Link – this item was withdrawn and will be presented on 23 August 2021

 

City Rail Link

Link to decision

 

 

Health, Safety and Wellbeing

Head of Health, Safety and Wellbeing

 

Health, safety and wellbeing update

Link to decision

Health, safety and wellbeing update

Link to decision

Auckland Council Hauora / Wellbeing Review

Link to decision

 

 

Health, safety and wellbeing update

Health, safety and wellbeing update

Legal Risk

General Counsel

 

Legal Risk report

Link to decision - confidential

 

 

 

Legal Risk Report

Insurance

Manager Insurance - Risk and Insurance Dept

Update on insurance activities

Insurance Strategy 2021-23

Link to decision

Indicative Insurance Renewal Report

Link to decision - confidential

 

Update to Committee post placement of Insurance Programme

Link to decision - confidential

 

 

 

Interim Report

Group Financial Controller

 

31 December 2020 Interim Report and NZX Announcement clearance

Link to decision - confidential

Audit New Zealand Review engagement management report 31 December 2020

Link to decision

 

 

 

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

30 June 2021 Arrangements (extended audit plan)

Link to decision

Audit New Zealand final audit management report 30 June 2020

Link to decision

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

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

Link to decision

Link to decision - confidential

 

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

Link to decision

Link to decision - confidential

Audit New Zealand Interim audit management report 30 June 2021

Link to decision

 

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.

Link to decision

 

 

.Annual Green Bonds Report 30 June 2021

 

Long Term Plan 2021/2031

Annual Plan

GM Financial Strategy and Planning

Consultation Document and supporting information – key controls and risks

Link to decision

 

LTP Key controls and risks

Link to decision

Audit NZ Final Report on 2021-2031 LTP

Link to decision

 

2021-2031 LTP Amendment (draft)/ 2022-2023 Annual Plan (draft)

External Audit

Office of Auditor-General (OAG)

Briefing paper provided

Link to decision - confidential

Briefing paper provided

Link to decision - confidential

Briefing paper provided

Link to decision - confidential

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 “Top Risk” refresh.


Komiti Tātari me te Mātai Raru Tūpono / Audit and Risk Committee
Forward Work Programme 2021-2022

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

GM Risk and Assurance

 

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

GM Risk and Assurance

Treaty Audit Monitoring update

 

Treaty Audit Monitoring update

 

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

Enterprise Risk

Risk Services

Enterprise Risk Update

 

 

Enterprise Risk Update

 

 

Enterprise Risk Update

 

CCO Risk management

Risk Services

CCO quarterly risk report

Attendance by Auckland Transport

CCO quarterly risk report

Attendance by Panuku

CCO quarterly risk report

Attendance by Auckland Unlimited

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

Attendance by Watercare, Auckland Transport, Auckland Unlimited

CCO quarterly risk report

Attendance by Watercare

Auckland Council partner/ shareholder risk management

Director Infrastructure and Environmental Services & CCO/ External Partnerships Dept

 

City Rail Link

 

City Rail Link

 

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 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 Interim Financial Statements & NZX Announcement Update

Proforma interim financial statements and accounting policies 31 December 2022

 

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

13 September 2021

 

Enterprise Risk Update - September 2021

File No.: CP2021/12073

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To update the Audit and Risk Committee on:

i)        the risk reset process and the Auckland Council top risks assessed and evaluated in the period May to August 2021

ii)       risk management activities since the last report to this committee in May 2021, and priorities for the next quarter.

Whakarāpopototanga matua

Executive summary

2.       The council’s top risk profile remains stable. No new findings or new significant risks have emerged since the last enterprise risk update report to this committee.

3.       Council’s top risk reset is now complete. The remaining four top risks that have been assessed this quarter are:

·    asset deterioration (Attachment A at page 8)

·    climate change response (Attachment A at page 9)

·    strategic relationships (Attachment A at page 10)

·    enterprise IT security failure – including cyber risk (Attachment A at page 11).

4.       A governance group has been established to oversee council’s response to climate related financial risks under the ‘Taskforce on Climate Related Financial Disclosures Framework’. Risk and Assurance is monitoring and providing advice to the governance group.

5.       The Risk and Assurance department have provided ongoing risk advice across a range of top risks, divisional and departmental initiatives, and programmes and projects. In recent weeks the work programme of the department has been reprioritised to provide support and advice to council’s Crisis Management Team in response to the recent Covid-19 lockdown. This will be an ongoing focus for the department into the next quarter.

 

Ngā tūtohunga

Recommendation/s

That the Audit and Risk Committee:

a)      note the Auckland Council Top Risk Update

b)      refer the Enterprise Risk Update - September 2021 report to the Governing Body for information.

 

Horopaki

Context

6.       This report provides an update on Auckland Council’s top risks, risk activities and risk management for the period ending September 2021.


 

7.       The report provides information to enable the Audit and Risk Committee to fulfil the committee’s governance and oversight role of the effectiveness of risk management within Auckland Council, and for reviewing emerging risks and changes to Auckland Council’s top risks.

8.       The Auckland Council top risks were reviewed and reset in accordance with the council’s Risk Management Framework in the second quarter of 2020/2021. In April 2021 council’s Executive Leadership Team approved the risk assessments of seven of the 11 proposed Auckland Council top risks. These were:

·    data and information

·    decision-making

·    financial management

·    fraud and corruption

·    health, safety and wellbeing (HSW)

·    Māori outcomes

·    service delivery.

9.       Engagements and inputs have been expanded to include available risk and audit data and insights, information from risk champions and subject matter experts.  All of Auckland Council’s top risks have been discussed with and reviewed by the New Zealand Public Service Association (PSA) and the Amalgamated Workers Union New Zealand (AWUNZ) representatives, as well as council’s Ngā Mātārae and Legal Services department.   We have also reviewed external data and information and benchmarked with local authorities and private and international entities.

10.     The assessments have been undertaken to align with and leverage council’s ‘operating model’ review programme and inform the 2021-2022 financial year business planning.

11.     The risks recorded and managed in the Top Risk Registers in 2019 and 2020 have been reviewed and mapped to the existing top risks to ensure all known risks are appropriately incorporated in the current Top Risk Register and continue to be managed.

12.     The risk reset process has resulted in a deeper and more mature understanding of the top risks that builds on the work completed in the last three years.  The collaboration by departments and subject matter experts across the council has provided a more comprehensive and sophisticated understanding of the interdependencies, priority risks and drivers for the organisation. Improvements have also been made in the coordination and integration of risk management and actions at the right level to enable more effective risk management.

Tātaritanga me ngā tohutohu

Analysis and advice

Top risk quarterly update

13.     Council’s top risk profile remains stable. No new findings or significant risks have emerged to require a recommendation to add any new risks to the register.

14.     All top risks have now been assessed to confirm the risk description, key drivers, impacts risks and actions being taken to strengthen controls.

15.     The assessments and residual risk ratings for the top risks noted in paragraph 8 are stable, and no change is recommended this quarter. (Attachment A at pages 12-18).

16.     These top risks are in the Opal3 risk system. Work has commenced by the risk team to monitor and report the progress of risk actions to address gaps and strengthen controls. 

17.     The risk team, along with risk sponsors, risk leads and subject matter experts, have now assessed the four top risks not previously assessed. These are 

·    resilience

·    organisational performance

·    adaptability

·    strategic relationships.

18.     Two of the previously proposed top risks (Adaptability and Organisational Performance) have not been progressed as separate top risks as they are managed as integral parts of the previously assessed Health, Safety and Wellbeing, and Service Delivery top risks.

19.     Three of the Resilience top risk components were elevated to individual top risks because are all significant strategic risks in their own right. These are:

·    asset deterioration

·    climate change response

·    enterprise IT security failure – including cyber risk.

20.     The four top risk areas that have been focused on this quarter are:

·    asset deterioration (Attachment A at page 8)

·    climate change response (Attachment A at page 9)

·    strategic relationships (Attachment A at page 10)

·    enterprise IT security (Attachment A at page 11)

21.     These remaining four top risks will also be added to the Opal3 risk system this quarter so there is a single source of truth and auditable records with data-based insights on risk activities.  These risk insights are expected to begin reporting from the next quarter.

Climate Change top risk

22.     Auckland Council has previously identified climate change as one of the top risks under ‘resilience’.

23.     In May 2021 we reported to this committee that

·    The Auckland Council Group began publicly disclosing on its climate-related financial risks in the 2019-2020 Interim Report in recognition of the material risks presented by climate change. The Auckland Council Group’s second climate-related financial risk disclosure was reported in the Auckland Council Group’s Annual Report 2020.  As part of this disclosure, the group committed to ‘disclose our climate-related financial risks under the Taskforce on Climate-related Financial Disclosures (TCFD) framework’.

·    On 12 April 2021, parliament introduced the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill 2021.

·    The bill will amend the Financial Markets Conduct Act 2013, the Financial Reporting Act 2013, and the Public Audit Act 2001 to require and support climate-related disclosures by certain entities for the financial year commencing on 1 July 2022. 

·    It is anticipated that this bill may be passed by the end of 2021 and create compliance requirements and standards including directors’ liabilities for non-disclosure.

24.     A governance group has been established to oversee council’s response to the requirements of the bill. The Risk and Assurance department is maintaining oversight of this work as described below.

·    The Auckland Council Group are working towards a fully compliant disclosure. Several focus areas have been identified to further improve the Auckland Council Group’s climate change risk disclosures in the future, specifically to:

improve the governance of climate-related risks including governance at a managerial level within the organisation

identify and integrate processes for identifying, assessing, and managing climate-related risks into Auckland Council’s overall risk management framework

identify climate-related financial risks and opportunities to the Auckland Council Group to address the scenario analysis requirements of the TCFD.

identify the emissions that are material to Auckland Council and include within the targets and metrics in the disclosure statement

improve the consistency of climate-related financial risk disclosures across the Auckland Council Group.

·    A stock take of climate-related risks has been undertaken this year across the council group. The results of this stock take provide a baseline for the group assessment and identifies the group’s most material risks for further analysis.

·    Climate change risk assessment workshops will be conducted over the next 12 months to identify our organisational climate-related risks and opportunities, and their financial impact.

·    A review will be undertaken to understand how the management of climate-related risks can be operationalised.

·    Tools and resources to support staff with the identification and management of climate-related risks are being developed.

25.     A risk kōrero with council departmental risk champions was held on 21 August 2021. The kōrero focused on climate change risk and response. This was attended by over 50 staff members from across the council group.

26.     The climate change top risk was approved by council’s Executive Lead Team on 26 July 2021.

27.     This risk will be workshopped with this committee at the workshop preceding today’s meeting. Feedback from this session will be reviewed by the risk team, the risk lead and sponsor and actioned accordingly.

Emerging risks

28.     There are no new emerging risks identified in this quarter.

29.     As reported to this committee in May 2021, central government is progressing several new bills and reviews in its legislative change and reform programme.  Reforms concerning local government, resource management, climate change, three waters and whistleblowing legislation will potentially have significant impacts on council’s activities. Council is monitoring and engaging with all the reforms to ensure we are sufficiently engaged and ready to manage and mitigate the change risks.

30.     Risks arising from legislative reform has been considered as part of the Strategic Relationships top risk. This risk is initially focused on the relationship Auckland Council has with central government, specifically on reforms and how well Auckland is represented in these processes.

31.     Council is monitoring the financial risks arising from the recent move back into Covid-19 Alert Level 4, and the financial risks arising from the finalisation by Waka Kotahi of the New Zealand Land Transport Plan.

32.     A ‘pulse check’ is planned to be performed in the second quarter (October – December 2021) that will inform the identification of any emerging risks.

Other risk activity

33.     The Risk and Assurance department have provided ongoing risk advice and support in the following areas:

·    development and maintenance of divisional and departmental risk profiles and registers

·    risk champions support and facilitation of the risk champions Kōrero

·    the Independent Māori Statutory Board’s strategic and operational risk framework development

·    the Kaipara Moana Remediation Programme 

·    support to the Quality Advice Programme

·    the 2021-2022 Rate setting and Rating Properties Revaluation Project

·    the 2021-2031 Long Term Plan.

34.     In recent weeks the department has reprioritised work to to provide support and advice to council’s Crisis Management Team in response to the recent Covid-19 lockdown. This will continue be a heavy focus for the department into the next quarter.

35.     The Risk and Assurance team continue to actively support the Enterprise Portfolio Management Office (ePMO) to develop risk capability for key programmes including monitoring of change risk.  Shaping our Future, the programme implementing the recommendations of the recent Auckland Council operating model review is underway. Top portfolio risks have been developed with the support of ePMO. The next steps are to workshop the risks and identify risk owners and mitigations.

Activity planned for the next quarter (October-December 2021)

36.     The following are the focus areas for risk management activity in the next quarter:

·    ongoing support to council’s Crisis Management Team for the Covid-19 response

·    performance of a Pulse Check to inform council’s top risks, and identification of emerging risks

·    continued monitoring of council’s top risks

·    development of divisional risk dashboards– to support business plan reporting, by monitoring risks that impact on organisational performance

·    implementation of the recommendations of the review of council-controlled organisations (CCO) that are relevant to risk.

Tauākī whakaaweawe āhuarangi

Climate impact statement

37.     Climate change and its impacts remain as a top risk for Auckland Council. The risks, mitigations and legislative changes associated with this are discussed in the body of this report.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

38.     The Risk and Assurance department works alongside key risk staff at CCOs to align our approach to group risk management.


 

39.     Staff are working with CCOs to improve monitoring and reporting on risks and risk mitigation measures following the recent CCO review. There is an action that council reviews the way it requires CCOs to monitor and report on risks and risk mitigation measures.  Group risk managers met in April 2021 to discuss the observations concerning risk and will be reporting to the chief executives’ oversight group on recommended focus areas for review and improvements.

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

Local impacts and local board views

40.     The 10-year Budget 2021-2031 and the top risks impact local boards indirectly as they represent impacts to Auckland Council.

Tauākī whakaaweawe Māori

Māori impact statement

41.     The delivery of Māori outcomes is a key strategic priority for Auckland Council.

42.     The risk of not achieving Māori Outcomes was elevated to the top risk register in August 2020 following COVID-19 events and the potential impacts on Māori as a vulnerable community. 

43.     It has been reassessed as part of the top risk reset. The risk has been defined in three related parts as the risk of:

·    not delivering on our commitments to mana whenua, iwi, mataawaka, Māori communities and customers

·    not honouring te Tiriti o Waitangi principles and not maintaining council’s treaty-based partnerships with Māori

·    Māori reporting distrust and lack of confidence in council.

44.     Risk mitigations are in place and operating, but further improvements to, and embedding of the design and operating effectiveness of, controls are ongoing. Process and control improvement plans are being developed with the risk lead.

Ngā ritenga ā-pūtea

Financial implications

45.     Financial management continues to be a top risk for Auckland Council, and the risk team closely monitor the drivers and impacts associated with this risk.

46.     The impact of Covid-19 is subject to ongoing monitoring.

47.     There are no financial costs associated with the committee receiving this report on enterprise risk management activities, and there are no funding decisions required.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

48.     The top risks and mitigations for Auckland Council are discussed within the main body of this report and within the attachments.

49.     The Risk and Assurance department regularly review the external and internal environment to identify emerging or heightened risks.

Ngā koringa ā-muri

Next steps

50.     This report is to be referred to the next meeting of the Governing Body for its information.


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Top Risks

27

     

Ngā kaihaina

Signatories

Authors

Ann Brown - Senior Risk Advisor

Andre de Wet - Senior Risk Advisor

Gemma Wensor - Risk Advisor

Matthew Kerly - Risk Advisor

Authorisers

Mark Maloney - General Manager Risk and Assurance

Phil Wilson - Director, Governance & CCO Partnerships

 


Audit and Risk Committee

13 September 2021

 

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


Audit and Risk Committee

13 September 2021

 

Health, Safety and Wellbeing Performance

File No.: CP2021/13115

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To provide the committee with the information needed to understand the progress of initiatives underway to improve health, safety and wellbeing, as well as the current state of selected key performance indicators covering the period February 2021 to July 2021.

Whakarāpopototanga matua

Executive summary

2.       A number of projects, initiatives and activities are underway across council to improve the performance of health, safety and wellbeing. These are broadly on track; and are progressing well.

3.       The COVID-19 resurgence in the community is resulting in a significant and necessary refocus of some resources to support the health, safety and wellbeing of our people, and to manage our responsibilities for emergency management.

4.       Selected performance indicators are provided in Attachment A and cover the period February 2021 to July 2021. This report provides information relating to the analysis of those indicators and should be read in conjunction with the attachment.

5.       Lost Time Injury Frequency Rate has dropped from 7.5 to 5.9 over the past 12 months, and most other key performance indicators are remaining stable over time.

 

Ngā tūtohunga

Recommendation/s

That the Audit and Risk Committee:

a)      note the information in this report and associated health, safety and wellbeing indicators

b)      refer this report to the Governing Body along with any commentary the committee deems appropriate; and recommend that the Governing Body forward the report to Local Boards for their information.

 

Horopaki

Context

6.       This report provides a range of indicators and commentary on the performance of health, safety and wellbeing to enable the committee to provide objective advice and recommendations to the Governing Body on the adequacy and functioning of the council’s health, safety and wellbeing risk management system and associated programmes. Health, safety and wellbeing key performance indicators are in Attachment A.

Tātaritanga me ngā tohutohu

Analysis and advice

COVID-19

7.       The recent outbreak of the Delta variant of COVID-19 in the community and return to Alert Level 4 within the Auckland region, has led to the reforming of the COVID-19 Crisis Management Team and associated efforts to coordinate responses across the organisation.

8.       A number of council staff have been required to isolate at various times as a result of being at a location of interest. This has had an impact across council where work was required to ensure the continuation of some services.

9.       An expression of interest application for in-house vaccinations (for Auckland Council staff) has been submitted to the Ministry of Health. This is currently being considered and may be confirmed once alert levels allow for staff to be back onsite and available in sufficient numbers. Certain employers are being prioritised due to the extent to which there is additional risk, or where they are providing significant essential services.

Project Hīra

10.     Project Hīra is a programme of work to improve our management of health and safety through the replacement of Risk Manager (our health and safety software and reporting system). 

11.     The programme scope includes a Request for Proposal (RFP) process and procurement delivered in conjunction with change management, people leader training, and an awareness campaign. Delivery of this programme of work depends on the particular vendor selected.

ACC Accredited Employer Programme (AEP) Audit

12.     Work continues in preparation for our formal application being submitted for the 2021 ACC AEP Audit. The audit is currently planned for late October 2021.

Wellbeing

13.     Mental Health Awareness Week preparation is now underway, and Wellbeing Ambassadors from across council are being engaged on the approach and delivery of this. This will be integrated into the wider Hauora (Wellbeing) Review programme for consistency.

14.     A broader consideration of all wellbeing offerings and needs across council (including the work being undertaken as part of the Hauora (Wellbeing) Review) is being undertaken by the General Manager Health, Safety and Wellbeing, with the aim of creating a strategic roadmap for wellbeing activity. This is necessary to ensure that all activities and actions are part of a coherent and appropriate work programme.

15.     A separate report on this agenda will provide an update on the implementation of the Hauora (Wellbeing) Review.

Refresh of Safe365

16.     Safe365 is council’s health and safety assurance system. It is a platform that the council uses to undertake assurance activity for health and safety, with verifications conducted at an operational level on a range of health and safety elements. Elements assessed include emergency management, reporting, culture and behaviours. An aggregated score is then provided for each department and directorate and for the council as a whole.

17.     It is currently being reviewed to ensure that it is appropriately set up to deliver on expectations of council. This includes an update of the system to reflect the organisation’s current structure, and an associated training and capability building programme for identified staff.

18.     The project has been delayed due to resource constraints and the resurgence of COVID-19 in the community. This is currently being mitigated through a rescope and review of the project methodology to refine the resource requirements and deliver the project with minimal impact on the project objectives. Timing of the refresh project delivery will depend on the review of project methodology.

19.     Safe365 scores have remained static across all of council over 2021, with an average score of 68 per cent. As part of the refresh of Safe365 we will be identifying specific initiatives that address specific gaps in performance. 

 

 

Lost Time Injury Frequency Rates

20.     Injury frequency rates relating to “Lost Time Injury Frequency Rate” (LTIFR) continue to remain at low levels, at 5.9 lost time injuries for every million work hours worked. This has remained stable over the last six months, since February 2021. The minor variations shown in the frequency rate are normal and expected once rates get to a low number such as this.

21.     As the graph on page 8 of Attachment A shows, LTIFR has trended mostly downward for the past 12 months, however this trend is not an indication of overall safety performance, rather, it reflects the effectiveness of claims management with a number of influencing factors (for example, different approaches by treatment providers) that can impact this number.

Risk Manager Closure

22.     As of July 2021, 77 per cent of incidents and other reports within Risk Manager are being closed by their due date.

23.     The rate of closure since May 2020 appears to fluctuate between 60 per cent and 80 per cent. Previous investigations identified a range of issues that may impact on this, and the replacement of our health and safety system may help to improve rates.

Health and Safety Induction and Training Completion

24.     Online health and safety induction rates have remained stable since an increase of 4 per cent in April 2021. A potential reason for this is whether access to systems and hardware is a barrier for some roles and for the remaining staff who haven’t completed this. Further investigation is required to understand this and is programmed for the next quarter.

25.     89 per cent of people leaders have now completed the mandatory “Managing Safely / Leading Your Team” training, showing a high level of participation in the requirement. 105 people leaders are still to complete this training.

Tauākī whakaaweawe āhuarangi

Climate impact statement

26.     There are no specific climate impacts to note in this report.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

27.     This report is based on Auckland Council organisation activities only and does not provide a group-wide view.

28.     Health, safety and wellbeing teams across the council group do collaborate on common health, safety and wellbeing issues, for example a wellbeing focused group is being established to leverage wellbeing support across the group during the alert level 4 lockdown.

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

Local impacts and local board views

29.     Like governing body members, local board members are ‘officers’ under the Health and Safety at Work Act 2015 and must exercise a duty of due diligence in a way that reflects the nature and responsibilities of their role.

30.     It is recommended that this report is referred to Governing Body and (as with previous health, safety and wellbeing reports) that Governing Body forward the report to Local Boards for their information.

Tauākī whakaaweawe Māori

Māori impact statement

31.     The information in this report has a similar impact on Māori staff as to all staff.

Ngā ritenga ā-pūtea

Financial implications

32.     The work in this report is being managed within current budgets and there are no additional financial implications to report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

33.     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

34.     The following actions will be undertaken:

a)   the Health, Safety and Wellbeing team will undertake further investigation into Risk Manager close-out rates and the drivers influencing these

b)   staff will investigate barriers to completion of health, safety and wellbeing mandatory training and identify opportunities to reduce these.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

HSW Key Performance Indicators - August 2021

49

     

Ngā kaihaina

Signatories

Author

Paul Robertson – General Manager Health Safety and Wellbeing

Authorisers

Patricia Reade - Deputy Chief Executive

Phil Wilson - Director, Governance & CCO Partnerships

 


Audit and Risk Committee

13 September 2021

 

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


Audit and Risk Committee

13 September 2021

 

Hauora (Wellbeing) Review - Wellbeing Programme Update

File No.: CP2021/11576

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To update the Audit and Risk Committee on the council’s response to the Hauora (Wellbeing) Review 2021 and progress with the wellbeing programme of work.

Whakarāpopototanga matua

Executive summary

2.       On 17 May 2021 the Auckland Council Hauora (Wellbeing) Review was completed, and the report received by the Chief Executive. 

3.       The review found that, for many parts of our organisation, and for many people, the resources and support that we provide, meets their needs.

4.       However, for some parts of the organisation there are opportunities for improvement. The report included 24 recommendations for improving and enhancing support for our people as they undertake their work.

5.       Council has been considering and responding to the Hauora (Wellbeing) Review recommendations and a programme of work has been started with the objective of becoming an exemplar in how we support the wellbeing of our workforce.

6.       The programme has two workstreams. The first is more immediate “tactical” initiatives/actions that respond to the Hauora (Wellbeing) Review recommendations, and the second is the development of a longer term 3- year wellbeing strategy to set our objectives, outcome measures and the long-term sustainable plan to become an exemplar in supporting wellbeing of our people. 

7.       The programme of work is being modelled on Te Whare Tapa Whā and is being led, co-designed by, with, and for Māori staff.  The principle of Mana Motuhake, that staff determine the support and services they need to manage and improve their own wellbeing, is a key principle for the programme.

8.       Good progress has been made on the programme of work. While the recent COVID-19 resurgence has impacted the progress of some workstreams, key activities have been completed and foundations set for the development of the wellbeing strategy and roll out of important priority interventions and improvements.

 

Ngā tūtohunga

Recommendation/s

That the Audit and Risk Committee:

a)      note the Wellbeing Programme update

b)      refer the Wellbeing Programme update report to the Governing Body for information and recommend that the Governing Body provide it to local boards for their information.

 

Horopaki

Context

9.       Earlier this year the Auckland Council Chief Executive commissioned a review about how Auckland Council supports workforce wellbeing.

10.     On 17 May 2021 the Hauora (Wellbeing) Review was completed, and the report received by the Chief Executive. 

11.     The review found that, for many parts of our organisation, and for many people, the resources and support that we provide meets their needs.

12.     However, for some parts of the organisation there are opportunities for improvement. These are particularly in workplace culture, in the role leaders have in identifying and responding to wellbeing issues and in leadership capability.

13.     The report included 24 recommendations for improving and enhancing support for our people as they undertake their work.

14.     The recommendations are wide ranging and include system, cultural and people leader capability challenges. The initial reaction to the review report has been positive and the challenge has been set to respond with swift and meaningful improvements to better support the hauora of our people.

15.     Council has been considering and responding to the Hauora (Wellbeing) Review recommendations and a programme of work has been started with the objective of becoming an exemplar in how we support the wellbeing of our workforce.

16.     Good progress has been made on the programme of work. While the recent COVID-19 resurgence has impacted the progress of some workstreams, key activities have been completed and foundations set for the development of the wellbeing strategy and roll out of important priority interventions and improvements.

17.     The progress and decisions concerning the wellbeing programme are being reported monthly to the Executive Leadership Team Health, Safety and Wellbeing Committee.

18.     Progress on the wellbeing programme will be reported quarterly to the Audit and Risk Committee.

Tātaritanga me ngā tohutohu

Analysis and advice

The wellbeing programme

19.     Good progress has been made commencing the council’s response to the Hauora (Wellbeing) Review and recommendations and to start the journey to become an exemplar in how we support the wellbeing of our people.

20.     An integrated programme of work, with two workstreams running in parallel, has been established under the sponsorship of the Deputy Chief Executive and General Manager Health, Safety and Wellbeing. A virtual team has been formed and onboarded, including culture, change, finance, programme management/coordination resources.

21.     The first workstream in the programme of work includes the planning and implementation of more immediate “tactical” initiatives/actions that respond to the Hauora (Wellbeing) Review recommendations. These actions have been identified as basic requirements and foundational improvements. As well as work being developed and driven by the programme, some recommendations are linked to other strategic workstreams and priorities already underway within the council organisation for example the operating model programme (Shaping Our Future), and the MAHI (Maori Employment Strategy) programme refresh and the Maori Outcomes Framework implementation.

22.     The second workstream involves the development of a longer term 3- year wellbeing strategy to set our objectives, outcome measures and the long-term sustainable plan to become an exemplar in supporting wellbeing of our people. 


 

23.     The programme of work is being modelled on Te Whare Tapa Whā and is being led, co-designed by, with, and for Māori staff.  The principle of Mana Motuhake, that staff determine the support and services they need to manage and improve their own wellbeing, is a key principle for the programme. (More detail on this is set out in the Māori impact statement section of this report below.)

24.     Work has begun to consider the standards and measures for the recommended “annual audit” of the programme.

25.     In addition, two further wellbeing questions have been added to the quarterly staff engagement survey.  Once baseline data is established, these questions will enable quarterly tracking of progress. The first question addresses how much staff feel council “has their backs” when confronted with challenging work environments and some customers and communities. The second general question is about whether staff feel they have the support and resources they need for their wellbeing at work when they may need them.

26.     The first Hauora (Wellbeing) Review recommendations actioned have been the following:

·    setting up a workforce-led Challenger Group

·    strengthening the independence of the council’s ‘speak up’ channel

·    introducing a programme to support frontline teams who have to deal with unacceptable and/or antisocial behaviour

·   the integration of hauora into work on the organisational culture workstream.

27.     More detail on recent/current areas of focus for the work programme follows.

Challenger group

28.     The Hauora (Wellbeing) review recommended establishing a hauora challenger group to represent the employee voice.

29.     The Challenger Group has been established and is meeting fortnightly to test and shape culture and wellbeing work. It provides a conduit for ideas, feedback and communication from staff networks groups, teams, divisions and people.  Most importantly, it provides a mechanism for active collaborative working, with diverse perspectives from across the organisation.

Speak Up

30.     ‘Speak Up’ is about staff sharing a concern, asking a question, or seeking advice about something that isn’t in keeping with Our Charter.​ It is not just a process or channel, but an overarching principle and key cultural objective that our people ‘Speak Up’. 

31.     To support this, council must have safe and secure channels for people to disclose and seek support for behaviours that are not in line with Our Charter.  This includes bullying, harassment and racism. It is also critical to create a culture where people are not afraid and feel they can bring their whole selves to work.

32.     A transparent and embedded system that is flexible and compassionate to meet the needs of different people and situations is key.  Council must be able to respond and intervene on specific issues; and implement effective and evolving prevention and complaints processes and tools as trends and patterns arise.

33.     A review of Speak Up was completed in May 2021. Overall, the Speak Up framework and options available to staff is considered sound.  Speak Up provides needed support, advice, and a range of supported options for raising concerns and issue resolution for employees.


 

34.     However, there are areas where improvements can be made, including actions to increase employee trust and confidence in Speak Up and the consistency of staff experience. There is room for improvement in the operation of the channels and triaging of speak ups and consistency of experience.  Work is needed to build awareness and trust and confidence in what happens once someone speaks up. The review recommendations are described as necessary enhancements rather a major change or overhaul of the existing channels and approach.

35.     To ensure the effective, trusted operation and ongoing performance of speak up channels and a good staff experience, there needs to be clear enterprise ownership and responsibility for oversight and escalation. Without a clear and accountable owner, there is a risk of unmanaged conflicts of interest, siloed activity, and challenges in seeing the overall pattern of speak up events so we can respond and address issues as an organisation.

36.     An improvement programme has commenced under the leadership of the General Manager Risk and Assurance. The process to implement an external channel to strengthen the existing internal speak up channels available to staff is also underway.

Antisocial and aggressive behaviour experienced by staff - ‘No excuse for abuse’ campaign

37.     Auckland Council employees are frequently subjected to unacceptable behaviour, directed towards them by customers and members of the public. Instances of harm, verbal and physical abuse, and anti-social behaviour towards our people has increased in recent years, particularly for those on the ‘front line’ or in roles with regular contact with customers.

38.     2020 was a year like no other and the impact of COVID-19 on our communities has created more stress and financial pressure for customers of the council. We have unfortunately seen this manifest itself in behaviour at our sites and towards our people.

39.     Our people perform a variety of vital functions for the communities they serve. We are hearing that instances of aggressive and threatening behaviour, unsafe situations and unacceptable conduct are occurring across the board – down the phone; online; and in-person to our building inspectors, lifeguards, animal management officers, rangers, librarians and customer services staff.

40.     The Hauora Wellbeing Review report recommended a course of action – a strong public statement and collateral, like those we see in hospitals and medical centres. As a result, we have developed a campaign that supports our people and advocates respect from customers and the public.

41.     The campaign will help demonstrate to our people that they do not have to tolerate violent or antisocial behaviour. It aims to create a more respectful relationship between Auckland Council staff and the public they serve.

42.     In developing ‘No excuse for abuse’ we have sought input from behaviour change experts and tested our approach with both the Staff Challenger Group and a focus group of people in customer-facing roles from across the organisation. Their insights have informed the campaign and will help ensure that the approach we are taking supports them in the jobs that they do.

43.     The external phase of the no excuse for abuse campaign, including adshells and press releases has been postponed until Auckland returns to Alert level 2 and the timing and strategy for delivery of the external campaign is being reviewed considering the current circumstances.

44.     We will evaluate the effectiveness of the first phase of the ‘No excuse for abuse’ campaign and expect to develop it into an ongoing component of our workforce wellbeing programme.


 

45.     We acknowledge that elected members are also frequently subjected to harmful, unacceptable and antisocial behaviour from members of the public. There is ongoing work (complementary to the wellbeing programme) led by the Governance and CCO Partnerships Division to address this. Elected members can talk to their support staff and use the wellbeing support services which are set out in council’s intranet pages.

Capability and support

46.     The Health Safety and Wellbeing corporate team and the Capability teams have been reviewing current offerings available for staff and people leaders in relation to wellbeing. Current offerings include support, tools and guidance on the organisation’s Te Papa Hauora intranet page and training in resilience, including a specific tailored online course currently on offer to all staff about resilience in lockdown.

47.     Work has commenced on developing a capability framework for different audiences (e.g., people leaders, staff, higher risk roles, wellbeing ambassadors and health and safety leads).

48.     Additional offerings will be considered when this strategic work is completed and as part of the development of the wellbeing strategy in the next three months. This work will be completed in conjunction with the leadership rōpū and the capability governance framework implementation.

Mental Health Week 27 September 2021

49.     Planning has commenced for a coordinated series of events and communications centered around the New Zealand national mental health week.  The national theme for this year is “Taking time to korero”.

50.     The objective will be to build on the national events and communications to raise awareness and capability and build a positive conversation about mental health and the support available for all staff. Examples of support available includes Instep (the council’s Employee Assistance Provider), Manawa Rahi (an early intervention, free, impartial and confidential support service available to staff for practical advice and coaching) and the capability and training available for leaders and staff in this area. 

51.     We are proposing to have the Wellbeing Ambassadors and the Challenger Group lead the planning and take an active role in the events.

52.     The Wellbeing Programme Manager is also engaging with staff from some council-controlled organisations (CCOs) about collaborating on these events.

Tauākī whakaaweawe āhuarangi

Climate impact statement

53.     This report does not concern matters directly impacting on climate change. However, it is recognised that the changing environment and uncertainty surrounding climate change does potentially impact staff wellbeing.

54.     Support mechanisms in place need to support this risk and issue as with many others.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

55.     The council is working with the CCOs on the review and response.  The wellbeing of staff and contractors is a common strategic objective and area of risk for all entities across the group. 

56.     We have shared the ‘No excuse for abuse’ campaign with CCOs, and each CCO has chosen to participate and collaborate. This means they will share the collateral that we have developed, in some cases adapting them to their own circumstances and in others using the same approach.

57.     The council is also sharing the findings and programme activities with Ports of Auckland to collaborate and learn from each other and improve practices.

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

Local impacts and local board views

58.     It is recommended that the Audit and Risk Committee refer this report to the Governing Body with a recommendation that it be provided to local boards for information.

59.     While the Hauora (Wellbeing) Review focused primarily on staff, it also acknowledged the interface between our people and elected members and the support functions offered to councillors and local board members is important.

Tauākī whakaaweawe Māori

Māori impact statement

60.     The strategy and programme is being co-designed by and with our staff, including kaimahi Māori.  The principle of Mana Motuhake, that staff determine the support and services they need to manage and improve their own wellbeing, is a key principle for the programme.

61.     The programme is being developed in collaboration and consultation with Ngā Mātārae, Maori Outcome Leads and Whānau Manawa Māori staff network representatives to ensure the joint objective of kaupapa Māori values, interventions, and Māori outcomes priorities are at the heart of the programme and our approach reflects the partnership and needs of staff.

62.     Supporting the wellbeing of our kaimahi Māori and the development of kaupapa Māori interventions to better support the wellbeing of all staff aligns to the Kia Ora Tāmaki Makaurau outcome of Kia Hāngai te Kaunihera – An Empowered Organisation. 

63.     MAHI, the council’s Māori Employment Strategy is a key driver for Kia Hāngai te Kaunihera and identifies the goals and actions the council group will focus on to deliver the outcome.  The Wellbeing Review aligns to all three MAHI Strategy goals, with a particular focus on goal three - provide a culturally responsive and respectful work environment. The MAHI Strategy is currently being refreshed and will include a stronger focus on supporting the wellbeing of Māori.

64.     The programme is being underpinned by Te Whare Tapa Whā, a Māori holistic model of health developed by Tā Māson Durie in 1984.  The four dimensions are depicted as walls of a wharenui - meeting house, with whenua as the foundation.  By nurturing and strengthening all five dimensions, you support your holistic health and wellbeing.  Work is underway to bring Te Whare Tapa Whā to life and ensure it is included and reflected in all aspects of the programme.

65.     We are exploring options to establish an advisory group made up of Māori, Health Safety and Wellbeing and other advisors.  Representatives of the Whānau Manawa are also on the Challenger Group.

Ngā ritenga ā-pūtea

Financial implications

66.     At present, all activity and costs associated with responding to the Hauora (Wellbeing) Review recommendations and to set up the programme have been met within existing budgets.

67.     As required by council’s investment delivery framework, a strategic assessment is being prepared for the programme to define the scope, objectives and funding to mobilise and implement work on remaining recommendations. This assessment requires measures to ensure the investment and outcomes are achieved and the benefits are both realised and embedded going forward.

68.     Any additional costs related to the implementation of the wellbeing strategy and 3-year plan (including initiatives to address the recommendations) will be set out in a business case and, if approved, will be met by re-prioritising existing budgets.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

69.     Staff wellbeing is identified in the council’s Health, Safety and Wellbeing Top Risk. The programme of work is aiming to mitigate and manage risks in relation to staff wellbeing.

70.     Key actions under the programme have and will contribute to strengthening the controls for risk to staff wellbeing. Actions include the establishment of the Challenger Group, strengthening of assurance/ audit processes and implementing an annual audit of effectiveness.

71.     The wellbeing programme is key to continuing to meet the needs of our people, strategic commitments and legal compliance obligations including under Health and Safety at Work Act 2015 and Treaty of Waitangi partnership obligations.

72.     Wellbeing is a key risk that has been identified for our people at this time of COVID -19 resurgence, extended lock down, and uncertainty.  Strategic, sustained and practical support and messaging for all staff and people leaders is required.   This support is in place and is being adjusted each week to ensure effectiveness.

73.     The following table shows risks and relevant mitigations:

 

Risk

Mitigation

Lack clarity of programme scope and approach due to emerging and changing priorities and drivers

Strategic sssessment for the programme and 3 year wellbeing strategy being developed.

Delivery impact due COVID-19 resurgence and staff redirection and pressure on resource for business improvements.

A contractor with project and change management skills is being employed for short period (12 weeks) while the permanent people and capability programme manager and health, safety and wellbeing roles are filled. This will help maintain momentum, mobilise the programme and to take pressure off initiative leads managing the COVID- 19 resurgence response and competing priorities. 

Lack of coordination between and interdependences with other strategic workstreams resulting in inefficiencies delay and reduced benefits.

Strategic planning and communications and coordination underway.

 

Ngā koringa ā-muri

Next steps

74.     The next steps and key priorities for September 2021 are:

a)   Speak up - finalise Request for Proposal documentation for external speak up service and go to market.

b)   Planning and delivery for Mental Health Week.

c)   Meeting CCOs - coordinate and leverage activity for wellbeing week and ongoing programme.

 

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Author

Emma Mosely – Wellbeing Programme Manager

Authorisers

Patricia Reade - Deputy Chief Executive

Phil Wilson - Director, Governance & CCO Partnerships

 


Audit and Risk Committee

13 September 2021

 

Preparation of Auckland Council Group's draft annual report 2020/2021 and draft summary annual report 2020/2021

File No.: CP2021/13004

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To inform the Audit and Risk Committee of the process followed to prepare the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021 (together referred to as the annual reports).

Whakarāpopototanga matua

Executive summary

2.       On 27 September 2021, the Governing Body will be asked to adopt the annual reports. Preparing and publishing these annual reports is a legislative requirement and ensures that we are transparent about our operations with investors and ratepayers.

3.       The annual reports cover the 12 months to 30 June 2021. They have been prepared by council staff and audited by Audit New Zealand on behalf of the Auditor-General. The annual reports compare and comment on the performance of the group and the council against the budgets and performance targets set in the Emergency Budget 2020/2021 (annual plan) and the amended 10-year Budget 2018-2028.

4.       The Deputy Auditor-General will attend this meeting and comment later in confidence on the:

·   audit process

·   draft representation letter

·   draft proposed audit opinion, including commentary on the key audit matters

·   status of the annual reports.

There is one outstanding process issue relating to building and resource consents performance reporting. We expect to have this matter resolved before the annual reports are approved by the Governing Body.

 

 

Ngā tūtohunga

Recommendation/s

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

b)      note the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021 will be discussed later in this meeting in confidence.

 

Horopaki

Context

5.       The Audit and Risk Committee reviews the quality of the annual reports and the processes followed to prepare them.

6.       The Audit and Risk Committee liaises with Audit New Zealand to ensure a robust audit of the group.

7.       The Finance and Performance Committee reviews the financial and service performance of the group. 

8.       This report, in conjunction with the associated confidential item, and comments from the Deputy Auditor-General at this meeting and his report, assist the Audit and Risk Committee to fulfil its duty as noted above.

9.       Audit New Zealand will comment on any significant matters arising from the audit that they intend to include in their final report to those charged with governance following adoption of the annual reports by the Governing Body in the confidential item.

Tātaritanga me ngā tohutohu

Analysis and advice

Draft Annual Report 2020/2021 Volume 1:  Overview and Service Performance

10.     Volume 1 provides an overview of the financial and non-financial performance of the group.

11.     It reports the revenue and expenditure for each group of activities in the group within funding impact statements. The format and accounting policies of the funding impact statements are prescribed by the Local Government Act 2002. The regulations require us to compare actual activities and actual performance with the intended activities and the intended level of performance as set out in the long-term plan and the annual plan.

12.     As the Emergency Budget 2020/2021 does not contain all performance measures, the group reported performance against the 10-year budget 2018-2028.

Draft Annual Report 2020/2021 Volume 2:  Local Boards

13.     The council has a legislative requirement to report each local board’s service performance results and their funding impact statements. Local board reporting is measured against the Emergency Budget 2020/2021.

14.     The draft local board reports were presented to each local board for review and their feedback has been incorporated where appropriate.

Draft Annual Report 2020/2021 Volume 3:  Financial Statements

15.     Volume 3 includes the group and council’s statutory financial statements and consolidated funding impact statement.

16.     The financial statements also contain disclosures required by financial reporting standards, Local Government (Financial Reporting and Prudence) Regulations 2014 and the Local Government Act 2002.

17.     The Audit and Risk Committee approved the pro forma financial statements subject to any updates identified during the year end close and audit process at its meeting on 18 May 2021.

18.     A full disclosure checklist has been completed and will be available for inspection during the confidential part of this meeting.

Draft Annual Report 2020/2021 Volume 4: Climate Change Risk

19.     Volume 4 is a summary of the group’s climate-related risks and opportunities. It describes the group’s climate change risk management and outlines the group’s climate change targets and metrics in accordance with the framework set out by the Task Force on Climate-related Financial Disclosures (TCFD).

20.     Volume 4 was prepared through collaboration with the Financial Control team, the Chief Sustainability Office and sustainability officers at the council-controlled organisations and Ports of Auckland Limited.

 

 

21.     This is the group’s third disclosure in accordance with the TCFD. Management acknowledges that as the group’s understanding of and responses to climate change mature, so will the disclosure.

Draft Summary Annual Report 2020/2021

22.     The draft Auckland Council Summary Annual Report 2020/2021 is an abridged version of the four annual report volumes and provides highlights, performance information and information about the group including governance, community engagement and the group’s commitment to sustainability.

Tauākī whakaaweawe āhuarangi

Climate impact statement

23.     This committee paper relates to a financial reporting process and disclosures. Although Volume 4 of the annual report discusses climate change, no decision is sought in this paper that has an impact on greenhouse gas emissions and the council’s approach to reduce emissions.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

24.     The annual reports reflect the results of the group for the year ended 30 June 2021. The CCOs are involved in the preparation of this information. No decision is sought that would directly impact the group.

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

Local impacts and local board views

25.     Volume 2 of the annual report includes a section featuring the achievements in each local board area. Local boards were engaged to collect and review this information and each chair has prepared a message which is included in their respective report. No decision is sought that would impact local boards.

Tauākī whakaaweawe Māori

Māori impact statement

26.     The annual reports cover all aspects of the group’s governance and public accountability. Although the annual reports include commentary on the group’s contribution to outcomes for Māori, as well as the role of the Independent Māori Statutory Board and the council’s Ngā Mātārae – Māori Outcomes Department, no decision is sought in this paper that has a direct impact on Māori.

Ngā ritenga ā-pūtea

Financial implications

27.     There are no financial implications directly arising from the information contained in the report as no financial decision is sought.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

Risk of error, omission or non-compliance in preparation of the annual report and summary annual report

28.     There is a risk that errors or non-compliance with legislation and accounting standards could occur in the preparation of the annual reports. To mitigate this risk, quality assurance reviews were performed on the consolidated results and commentary and the year-end reports. The reviews focused on accuracy, completeness and reasonableness of disclosures, legislative compliance and adherence to the council’s communications standards.

29.     There is also a risk that the annual reports present a biased view of the performance of the group. Trust lens reviewers are used to review the annual reports to ensure that we are telling a fair and balanced story, that good news stories are truthful and accurate and the poor performance stories are honest and transparent. They review the overall story for consistency through all volumes.

Compliance reviews

30.     Auckland Council’s Legal Services department reviews the summary annual report and volumes 1-3 of the annual report for compliance with local government legislation.

31.     The Chief Sustainability Office reviews volume 4 of the annual report for compliance with the Taskforce on Climate-related Financial Disclosures (TCFD).

32.     Mayne Wetherell also reviews Volume 1 to 3 for compliance with NZX listing rules, the Financial Reporting Act 2013 and the Financial Markets Conduct Act 2013.

Reviews of accuracy, completeness and fairness

33.     Several reviews of the annual reports take place by people with differing levels and areas of involvement in financial reporting. A summary of the reviews is as follows:

Reviewer

Volume 1

Volume 2

Volume 3

Volume 4

Summary Annual Report

Group chief financial officer

ü

ü

ü

ü

ü

Group treasurer

ü

ü

ü

ü

ü

General manager financial strategy and planning

ü

ü

ü

ü

ü

General manager financial & business performance

 

 

ü

 

 

Group financial controller

ü

ü

ü

ü

ü

Manager group performance reporting

ü

ü

 

 

ü

Manager group accounting and reporting

 

 

ü

ü

ü

Senior group reporting technical accountant

 

 

ü

 

ü

Financial accounting manager

 

 

ü

 

ü

Trust lens reviewers

ü

ü

ü

ü

ü

Legal services

ü

ü

ü

 

ü

Chief Sustainability Office

 

 

 

ü

 

Mayne Wetherell

ü

ü

ü

 

ü

 

34.     In addition to these reviews, the council’s Financial Control team completes a detailed reporting checklist to ensure all financial reporting and disclosure requirements have been met. The group financial controller will have an annual report checklist and sign-off document available, providing assurance that reporting and disclosure requirements have been complied with.

35.     Two trust lens reviewers provided feedback on the financial statements. Both reviewers are not within the council’s finance division, and neither were involved in the preparation of the annual reports.

36.     All the technical quality assurance reviewers who perform reviews from a financial perspective are Chartered Accountant qualified or equivalent and have the appropriate technical accounting skills and knowledge.

Disclosures from council-controlled organisations, City Rail Link Limited and Ports of Auckland Limited

37.     There is a risk that significant matters that affect the financial performance, financial position or cash flows of council-controlled organisations, City Rail Link Limited or Ports of Auckland Limited may not be adequately disclosed.

38.     To mitigate this risk, each substantive council-controlled organisation, City Rail Link Limited and Ports of Auckland Limited provide an audited financial reporting pack, based on a standardised pack issued by the council’s Financial Control team. This audited financial information is consolidated to form the group’s financial statements.

39.     The group financial controller obtains short and long-form representation letters from the respective chief financial officers (CFOs)/chief executives and/or audit committee chairs/boards which cover the completeness, accuracy and adequacy of disclosures provided in their financial reporting packs. In addition, the group financial controller will obtain updates from the respective CFOs/delegate just prior to the Governing Body meeting at which the annual reports are adopted, to ensure nothing else has arisen since the representation letters were signed that could materially affect their financial reporting disclosures.

Delay in Audit New Zealand’s final clearance

40.     There is a risk of delay in Audit New Zealand’s final clearance due to unresolved technical matters.

41.     The Financial Control team has been working with Audit New Zealand to address technical issues early, however there is a risk that matters could arise that cannot be cleared by Audit New Zealand until they have audited the relevant information.


 

 

Ngā koringa ā-muri

Next steps

42.     The Audit and Risk Committee will discuss the annual reports in confidence with staff and Audit New Zealand, after which it will recommend the annual reports’ adoption to the Governing Body. The committee will then have completed its responsibilities for the annual reports.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Authors

Tracy Gers - Group Accounting & Reporting Manager

Francis Caetano - Group Financial Controller

Authorisers

John Bishop - Group Treasurer

Peter Gudsell - Group Chief Financial Officer

Phil Wilson - Director, Governance & CCO Partnerships

 


Audit and Risk Committee

13 September 2021

 

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: Recommendation of Auckland Council's draft annual report 2020/2021 and summary annual report 2020/2021

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

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

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

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

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

s48(1)(a)

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

 

C2       CONFIDENTIAL:  Council-controlled organisations' audit and 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 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 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.

 

C3       CONFIDENTIAL: Ports of Auckland Limited audit and risk 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.

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 risk reporting and detailed risks reported confidentially to the Ports of Auckland Limited's Board and Audit 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.

 

C4       CONFIDENTIAL: Draft Annual Green Bond Report 2021

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

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

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

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

In particular, the report contains financial and performance information that can only be made public following the release of the Annual Green Bond Report 2021 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 from the Office of the Auditor-General and Audit New Zealand contains information regarding the annual report and financial results of Auckland Council Group and Auckland Council as at 30 June 2021 which cannot be made public until 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.