Komiti Tātari me te Mātai Raru Tūpono / Audit and Risk Committee
OPEN MINUTES
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Minutes of a meeting of the Audit and Risk Committee held remotely via electronic link on Tuesday, 17 May 2022 at 10.02am. A recording of the meeting is available on the Auckland Council website on: https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/meetings-council-bodies/Pages/webcasts-council-meetings.aspx
present
Chairperson |
Sue Sheldon, CNZM |
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Deputy Chairperson |
Cr Daniel Newman, JP |
From 11.47am – Item C2 |
Members |
Deputy Mayor Cr Bill Cashmore |
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Paul Conder, CA |
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Cr Shane Henderson |
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Bruce Robertson |
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ABSENT
Ex-officio |
Mayor Hon Phil Goff, CNZM, JP |
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IMSB Chair David Taipari |
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ALSO PRESENT
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Cr Angela Dalton |
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IN ATTENDANCE
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Greg Schollum, Deputy Auditor-General |
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David Taylor, Sector Manager, Auckland |
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Athol Graham, Audit Director, Audit New Zealand |
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Karen MacKenzie, Audit Director, Audit New Zealand |
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Penica Cortez, Audit Manager, Audit New Zealand |
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Jaimala Singh, Audit Manager, Audit New Zealand |
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Note: All members of the committee and those presenting attended via electronic link.
Audit and Risk Committee 17 May 2022 |
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Note: a roll-call was conducted that ascertained the following members were in attendance at the commencement of the meeting:
Sue Sheldon, CNZM |
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Cr Shane Henderson |
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Deputy Mayor Cr Bill Cashmore |
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Cr Daniel Newman, JP |
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Paul Conder, CA |
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Bruce Robertson |
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Resolution number AUD/2022/13 MOVED by Chairperson S Sheldon, seconded by Member P Conder: That the Audit and Risk Committee: a) accept the apologies from: Absence IMSB Chair D Taipari Lateness Cr D Newman |
There were no declarations of interest.
Resolution number AUD/2022/14 MOVED by Chairperson S Sheldon, seconded by Deputy Mayor Cr BC Cashmore: That the Audit and Risk Committee: a) confirm the ordinary minutes of its meeting, held on Tuesday, 22 February 2022, including the confidential section, as a true and correct record. |
There were no petitions.
There was no public input.
There was no local board input.
There was no extraordinary business.
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Resolution number AUD/2022/15 MOVED by Chairperson S Sheldon, seconded by Member B Robertson: That the Audit and Risk Committee approve the Audit and Risk Committee forward work programme noting: a) that Ports of Auckland Limited will attend the August and September meetings. b) that the City Rail Link Project update report will be provided in August. |
9 |
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Resolution number AUD/2022/16 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 along with any commentary the committee deems appropriate; and recommend that the Governing Body forward this report to local boards for their information. |
10 |
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Resolution number AUD/2022/17 MOVED by Chairperson S Sheldon, seconded by Deputy Mayor Cr BC Cashmore: That the Audit and Risk Committee: a) note the update on audit and risk activities for Ports of Auckland b) approve the risk reporting schedule for Ports of Auckland to the Audit and Risk Committee c) refer the Ports of Auckland Audit and Risk Update May 2022 to the Council Controlled Organisations Oversight Committee for information. |
11 |
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Resolution number AUD/2022/18 MOVED by Chairperson S Sheldon, seconded by Member B Robertson: That the Audit and Risk Committee: a) note that EY has been appointed independent assurer for Auckland Council’s 2022 Green Bond Annual Report b) note the assurance process that EY will follow in relation to this report c) note that the draft 2022 Green Bond Annual Report will be presented to the Audit and Risk Committee for approval in September 2022, before it is published. |
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Resolution number AUD/2022/19 MOVED by Chairperson S Sheldon, seconded by Member P Conder: That the Audit and Risk Committee: a) note that ongoing impacts of the COVID-19 pandemic, along with rising inflation and interest rates and labour market and supply chain constraints are presenting significant risks to the financial position of the Auckland Council group b) note that the process to prepare and adopt the Annual Budget 2022/2023 is responding to these risks with a strong commitment to sustainable and prudent financial management c) note that once the Annual Budget 2022/2023 is adopted there will be a need for careful ongoing monitoring and management of some key financial risks d) agree to advise the Governing Body that an appropriate approach is being taken to manage the key financial risks associated with the Annual Budget 2022/2023, provided that the Governing Body is able to reach agreement on a budget that addresses the financial pressures in a sustainable and financially prudent manner. |
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The Auditor-General's report to council on the review engagement for the six months ended 31 December 2021 |
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Resolution number AUD/2022/20 MOVED by Chairperson S Sheldon, seconded by Deputy Mayor BC Cr Cashmore: That the Audit and Risk Committee: a) note the matters identified in the Deputy Auditor-General’s review engagement report to management, for the six months ended 31 December 2021, and management’s responses. |
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Auckland Council Group's 30 June 2022 year-end reporting and audit considerations |
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Resolution number AUD/2022/21 MOVED by Chairperson S Sheldon, seconded by Member B Robertson: That the Audit and Risk Committee: a) note the year-end financial reporting process and other information in this report and use it to supplement the information in the confidential item “CONFIDENTIAL: Auckland Council Group’s 30 June 2022 year-end reporting and audit considerations”. |
15 Consideration of Extraordinary Items
There was no consideration of extraordinary items.
Resolution number AUD/2022/22 MOVED by Chairperson S Sheldon, seconded by Deputy Mayor BC Cr Cashmore: That the Audit and Risk Committee: a) exclude the public from the following part(s) of the proceedings of this meeting. b) agree that Greg Schollum, Deputy Auditor-General, David Taylor, Sector Manager, Auckland, Athol Graham, Audit Director, Audit New Zealand, Karen MacKenzie, Audit Director, Audit New Zealand, Penica Cortez, Audit Manager, Audit New Zealand and Jaimala Singh, 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: Council-controlled organisations' quarterly risk update - May 2022
C2 CONFIDENTIAL: Legal Risk update
C3 CONFIDENTIAL: Insurance Activity Update - May 2022
C4 CONFIDENTIAL: Assurance Services Activity Update
C5 CONFIDENTIAL: Auckland Council Group's 30 June 2022 year-end reporting and audit considerations
C6 CONFIDENTIAL: Office of the Auditor-General and Audit New Zealand briefing
The text of these resolutions is made available to the public who are present at the meeting and form part of the minutes of the meeting. |
10.43am The public was excluded.
Resolutions in relation to the confidential items are recorded in the confidential section of these minutes and are not publicly available.
1.56pm The public was re-admitted.
restatementS
It was resolved while the public was excluded:
C1 |
CONFIDENTIAL: Council-controlled organisations' quarterly risk update - May 2022 |
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Resolution number AUD/2022/23 MOVED by Chairperson S Sheldon, seconded by Deputy Mayor Cr BC Cashmore: That the Audit and Risk Committee: a) note the written and verbal updates provided by Eke Panuku and thank them for their attendance b) note the written updates provided by Auckland Transport, Auckland Unlimited and Watercare Services Limited c) refer the council-controlled organisations’ quarterly risk update – May 2022 to the Council Controlled Organisations Oversight Committee for information Restatement d) agree that the decisions be released in the open minutes, but this report and its attachments remain confidential.
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C2 |
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Resolution number AUD/2022/24 MOVED by Chairperson S Sheldon, seconded by Member P Conder: That the Audit and Risk Committee: a) note the Legal Risk report. Restatement b) agree that the decisions be restated in the open minutes, but the Legal Risk update remains confidential.
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C3 |
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Resolution number AUD/2022/25 MOVED by Chairperson S Sheldon, seconded by Member B Robertson: That the Audit and Risk Committee: a) note the progress update on the 2022-2023 insurance renewal, cumulative loss modelling study and preparation for the establishment of the self-insurance fund. b) endorse and refer the indicative insurance renewal programme to the Finance and Performance Committee for consideration and approval. Restatement c) agree that the decision be transferred to the open minutes, but the report and attachments remain confidential.
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C4 |
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Resolution number AUD/2022/26 MOVED by Chairperson S Sheldon, seconded by Deputy Mayor Cr BC Cashmore: That the Audit and Risk Committee: a) receive and note the update on assurance activities performed by the Risk and Assurance department Restatement b) agree that the decisions be restated in the open minutes but that the Assurance Services Activity update report and attachments remain confidential.
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C5 |
CONFIDENTIAL: Auckland Council Group's 30 June 2022 year-end reporting and audit considerations |
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Resolution number AUD/2022/27 MOVED by Chairperson S Sheldon, seconded by Deputy Mayor Cr BC Cashmore: That the Audit and Risk Committee: a) note the Auckland Council Group’s 30 June 2022 year end reporting matters and audit requirements, including key judgements and assumptions b) endorse the relevant accounting policies, key financial statements, judgements and assumptions for the Auckland Council Group for 30 June 2022, subject to any required changes identified by management and Audit New Zealand during the year end close and auditor review c) endorse the 30 June 2022 pro forma financial statements and accounting policies subject to updates for any changes identified during the 30 June 2022 year end close process d) provide any further feedback on these pro forma documents to the group financial controller by 24 June 2022 e) delegate the chair of the committee authority to approve any significant amendments that occur during the 30 June 2022 year end close process Restatement f) agree that the report and attachments will remain confidential, but the decisions be restated in the open minutes.
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C6 |
CONFIDENTIAL: Office of the Auditor-General and Audit New Zealand briefing |
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Resolution number AUD/2022/28 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 representatives Deputy Auditor-General Greg Schollum, Sector Manager, Auckland David Taylor and Audit New Zealand Audit Directors Athol Graham and Karen MacKenzie and thank them for their attendance. Restatement b) agree that the report and attachments will remain confidential, but the decisions be restated in the open minutes.
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1.56pm 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:.......................................................