Komiti Tātari me te Mātai Raru Tūpono /

Audit and Risk Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of the Audit and Risk Committee held remotely via electronic link on Monday, 13 September 2021 at 2.00pm.

 

present

 

Chairperson

Sue Sheldon, CNZM

 

Deputy Chairperson

Cr Daniel Newman, JP

 

Members

Deputy Mayor Cr Bill Cashmore

 

 

Paul Conder, CA

 

 

Cr Shane Henderson

 

 

Bruce Robertson

 

 

ABSENT

 

Ex-officio

Mayor Phil Goff

 

 

 

IMSB Chair David Taipari

 

 

 

ALSO PRESENT

 

 

Cr Christine Fletcher, QSO

 

 

 

IN ATTENDANCE

 

Greg Schollum, Deputy Auditor-General

 

 

Andrea Reeves, Assistant Auditor-General – Local Government

 

 

Athol Graham, Audit Director, Audit New Zealand

 

 

Karen MacKenzie, Audit Director, Audit New Zealand

 

 

Penica Cortez, Audit Manager, Audit New Zealand

 

 

 


Audit and Risk Committee

13 September 2021

 

 

 

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

 

Sue Sheldon, CNZM

ü

Cr Shane Henderson

ü

Deputy Mayor Cr Bill Cashmore

ü

Cr Daniel Newman, JP

ü

Paul Conder, CA

ü

Bruce Robertson

ü

 

1          Apologies

 

Resolution number AUD/2021/56

MOVED by Chairperson S Sheldon, seconded by Cr S Henderson:  

That the Audit and Risk Committee:

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

CARRIED

 

 

2          Declaration of Interest

 

There were no declarations of interest.

 

 

3          Confirmation of Minutes

 

Resolution number AUD/2021/57

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

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.

CARRIED

 

 

4          Petitions

 

There were no petitions.

 

 

5          Public Input

 

There was no public input.

 

 

6          Local Board Input

 

There was no local board input.

 

 

7          Extraordinary Business

 

There was no extraordinary business.

 

8

Forward Work Programme

 

Mark Maloney, General Manager Risk and Assurance spoke to the report noting that there were no changes to the committee’s forward work programme.

 

 

Resolution number AUD/2021/58

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

That the Audit and Risk Committee:

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

CARRIED

 

 

 

9

Enterprise Risk Update - September 2021

 

Mark Maloney, General Manager Risk and Assurance spoke to the report and answered questions from member Paul Conder including the fact that the Enterprise IT security failure risk should also include “6. Theft of data” and the fact that Natural Hazards appeared to be getting less visibility.

 

 

Resolution number AUD/2021/59

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

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.

CARRIED

 

 

 

10

Health, Safety and Wellbeing Performance

 

Paul Robertson, General Manager Health, Safety and Wellbeing spoke to the report and answered a question from member Bruce Robertson about the meaning of 68% in the context of Safe365.

 

Note:   changes were made to the original recommendation, amending clause b) with the agreement of the meeting.

 

 

Resolution number AUD/2021/60

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

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 and recommend that the Governing Body forward the report to Local Boards for their information.

CARRIED

 

 


 

 

11

Hauora (Wellbeing) Review - Wellbeing Programme Update

 

Emma Mosely, Wellbeing Programme Manager spoke to the report and responded to a question from Cr Bill Cashmore about emerging trends from staff noting that the results of a recent staff survey were currently being analysed.

 

 

Resolution number AUD/2021/61

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

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.

CARRIED

 

 

 

12

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

 

Francis Caetano, Group Financial Controller spoke to the report noting that it was supported by a fuller report in the confidential agenda.

 

 

Resolution number AUD/2021/62

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

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.

CARRIED

 

 

 

13        Consideration of Extraordinary Items

 

There was no consideration of extraordinary items.

 

 


 

 

14        Procedural motion to exclude the public

 

Resolution number AUD/2021/63

MOVED by Chairperson S Sheldon, seconded by Cr S Henderson:  

That the Audit and Risk Committee:

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

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

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

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

 

 

C1       CONFIDENTIAL: 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 information that forms part of the Auckland Council Group Annual Report 2020/2021 and can only be made public following the release of the annual report to the NZX on 28 September 2021.

s48(1)(a)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

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

CARRIED

 

 

 

2.35pm            The public was excluded.

 

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

 

5.50pm            The public was re-admitted.

 

restatementS

 

It was resolved while the public was excluded:

 

C1

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

 

Resolution number AUD/2021/65

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

That the Audit and Risk Committee:

a)      note the updated draft fraud questionnaire 2020/2021 responses in Attachment A and recommend management provide it to Audit New Zealand in final

b)      recommend the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021 to the Governing Body for adoption, noting that these annual reports are still subject to finalisation of disclosure items, clearance of all performance measures, final management review and receipt of the Independent Auditor’s Report

c)      agree any significant changes to the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021 be notified prior to the Governing Body meeting on 27 September 2021, and delegates approval of the changes to the Audit and Risk Committee chair and the group chief financial officer

Restatement

d)      agree that the decisions be restated in the open minutes, but the draft Auckland Council Annual Report 2020/2021 and the draft Auckland Council Summary Annual Report 2020/2021 remain confidential.

 

 

 

C2

CONFIDENTIAL:  Council-controlled organisations' audit and risk updates

 

Resolution number AUD/2021/66

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

That the Audit and Risk Committee:

a)      note that there are no significant items raised by the council-controlled organisations through the annual audit process for the committee to refer to the Finance and Performance Committee

b)      note the written risk updates provided by the substantive council-controlled organisations

c)      thank the council-controlled organisations’ board members and senior managers for their attendance

Restatement

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

 

 

C3

CONFIDENTIAL: Ports of Auckland Limited audit and risk update

 

Resolution number AUD/2021/67

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

That the Audit and Risk Committee:

a)      note that there are no significant items raised by Ports of Auckland Limited through the annual audit process for the committee to refer to the Finance and Performance Committee

b)      note the written risk update provided by the Ports of Auckland Limited

c)      thank the Ports of Auckland Limited Audit Committee Chair Sarah Haydon and Acting Chief Executive Wayne Thompson for their attendance

Restatement

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

 

 

 

C4

CONFIDENTIAL: Draft Annual Green Bond Report 2021

 

Resolution number AUD/2021/64

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

That subject to the finalisation of EY’s review the Audit and Risk Committee:

a)      note the limited assurance provided by EY for the draft Annual Green Bond Report 2021

b)      approve that the draft Annual Green Bond Report 2021 be finalised and published to the NZX and Auckland Council website

Restatement

c)      agree that the decision be restated in the open minutes, but the report and attachments remain confidential.

 

 

 

C5

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

 

Resolution number AUD/2021/68

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

That the Audit and Risk Committee:

a)      receive the information provided by the Auditor-General’s representative Deputy Auditor-General Greg Schollum, Assistant Auditor-General Andrea Reeves and Audit New Zealand Audit Directors Athol Graham and Karen MacKenzie and thank them for their attendance

Restatement

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

 

 

 

5.50pm                                               The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

 

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

 

 

 

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

 

 

 

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