Kōmiti Tātari me te Mātai Raru Tūpono /

Audit and Risk Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of the Audit and Risk Committee held in the Reception Lounge, Level 2, Auckland Town Hall, 305 Queen Street, Auckland on Monday, 12 September 2022 at 2.11pm.

 

present

 

Chairperson

Sue Sheldon, CNZM

 

Deputy Chairperson

Cr Daniel Newman, JP

Via electronic link

Members

Deputy Mayor Cr Bill Cashmore

 

 

Member Paul Conder, CA

 

 

Cr Shane Henderson

 

 

Member Bruce Robertson

Via electronic link

Ex-officio

Mayor Hon Phil Goff, CNZM, JP

Until 2.33pm, Item 13

 

 

ABSENT

 

Ex-officio

IMSB Chair David Taipari

 

 

 

ALSO PRESENT

 

 

Cr Angela Dalton

 

 

 

Cr Christine Fletcher

 

 

 

 

 

 

 

IN ATTENDANCE

 

 

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

 

 

Jaimala Singh, Audit Manager, Audit New Zealand

 

 

 

 

 

 


Audit and Risk Committee

12 September 2022

 

 

 

1          Apologies

 

Resolution number AUD/2022/44

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

That the Audit and Risk Committee:

a)         accept the apologies for:

Absence

IMSB Chair D Taipari

Early departure

Mayor P Goff – council business

CARRIED

 

 

2          Declaration of Interest

 

There were no declarations of interest.

 

 

3          Confirmation of Minutes

 

Resolution number AUD/2022/45

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, 23 August 2022, 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

 

Resolution number AUD/2022/46

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

That the Audit and Risk Committee:

a)      approve the forward work programme noting:

i)       the Committee’s Annual Performance report is being presented in this September meeting

ii)      the Assurance Charter and 2022-2023 Audit Plan will be presented at the first meeting of the new term for Council.

CARRIED

 

 

 

9

City Rail Link risk update

 

Resolution number AUD/2022/47

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

That the Audit and Risk Committee:

a)      note the City Rail Link project risk and assurance update.

CARRIED

 

 

 

10

Preparation of Auckland Council Group's draft annual report 2021/2022 and draft summary annual report 2021/2022

 

Resolution number AUD/2022/48

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

That the Audit and Risk Committee:

a)      note that there are no significant outstanding issues relating to the process for the preparation of the draft Auckland Council Annual Report 2021/2022 and the draft Auckland Council Summary Annual Report 2021/2022

b)      note the draft Auckland Council Annual Report 2021/2022 and the draft Auckland Council Summary Annual Report 2021/2022 will be discussed later in this meeting in confidence.

CARRIED

 


 

 

11

Annual report on the performance of the Audit and Risk Committee

 

Note:   changes to the original motion, adding new clause c), were made with the agreement of the meeting.

 

 

Resolution number AUD/2022/49

MOVED by Mayor P Goff, seconded by Deputy Mayor Cr BC Cashmore:  

That the Audit and Risk Committee:

a)      receive this annual report on the Performance of the Audit and Risk Committee

b)      recommend that the chief executive place the report on the next available agenda of the Governing Body.

c)         acknowledge and thank independent members Sue Sheldon, CNZM and Paul Conder for their contribution to the effective performance of the committee over the last six and eight years respectively.

CARRIED

 

 

 

12        Consideration of Extraordinary Items

 

There was no consideration of extraordinary items.

 

 

 

13        Procedural motion to exclude the public

Mayor Phil Goff retired from the meeting at 2.33pm.

 

Resolution number AUD/2022/50

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

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' 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 organisations' board or Audit and Risk Committee. The council-controlled organisations have provided their risk report to 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.

 

 

 

 

 

C2       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 top risks reported confidentially to the Ports of Auckland Limited's board or Audit and Risk Committee. Ports of Auckland Limited have provided their risk report to 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: Assurance Services Activity Update

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

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

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

s7(2)(c)(i) - The withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied.

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

In particular, the report contains information which if released would jeopardise the effective delivery of assurance services.

s48(1)(a)

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

 

C4       CONFIDENTIAL: Draft Annual Green Bond Report June 2022

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

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

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

s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage.

In particular, the report contains financial and performance information that can only be made public following the release of the Annual Green Bond Report 2022 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: Recommendation of Auckland Council's draft annual report 2021/2022 and summary annual report 2021/2022

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

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

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

s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage.

In particular, the report contains financial information that forms part of the Auckland Council Group Annual Report 2021/2022 and can only be made public following the release of the annual report to the NZX on 30 September 2022.

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.

 

 

C6       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 2022 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.

 

CARRIED

 

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.

 

 

 

2.33pm            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.

 

 

5.15pm            The public was re-admitted.

 


 

 

restatementS

 

It was resolved while the public was excluded:

 

 

C1

CONFIDENTIAL: Council-controlled organisations' audit and risk updates

 

Resolution number AUD/2022/53

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)      consider the risk updates provided by the substantive council-controlled organisations when reviewing the Auckland Council Group 2021/2022 Annual Report and Summary Annual Report for recommendation to the Governing Body for adoption

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.

 

 

 

C2

CONFIDENTIAL: Ports of Auckland Limited audit and risk update

 

Resolution number AUD/2022/54

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)      consider the risk updates provided by Ports of Auckland Limited when reviewing the Auckland Council Group 2021/2022 Annual Report and Summary Annual Report for recommendation to the Governing Body for adoption

c)      thank the representatives from Ports of Auckland Limited 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: Assurance Services Activity Update

 

Resolution number AUD/2022/51

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

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.

 

 

C4

CONFIDENTIAL: Draft Annual Green Bond Report June 2022

 

Resolution number AUD/2022/52

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

That the Audit and Risk Committee:

a)      note the outcome of the independent assurance exercise undertaken by EY for the draft Annual Green Bond Report 2022

b)      recommend the chief executive approve the draft Annual Green Bond Report 2022 for publication to the NZX and Auckland Council website

Restatement:

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

 

 

C5

CONFIDENTIAL: Recommendation of Auckland Council's draft annual report 2021/2022 and summary annual report 2021/2022

 

Resolution number AUD/2022/55

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

That the Audit and Risk Committee:

a)      note the updated draft fraud questionnaire 2021/2022 responses, and recommend management provide it to Audit New Zealand in final

b)      recommend the draft Auckland Council Annual Report 2021/2022 and the draft Auckland Council Summary Annual Report 2021/2022 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 2021/2022 and the draft Auckland Council Summary Annual Report 2021/2022 be notified prior to the Governing Body meeting on 29 September 2022, 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 2021/2022 and the draft Auckland Council Summary Annual Report 2021/2022 remain confidential.

 

 

C6

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

 

Resolution number AUD/2022/56

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

That the Audit and Risk Committee:

a)      receive the information provided by the Auditor-General’s representative 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 attachment will remain confidential, but the decisions be restated in the open minutes.

 

 

 

 

 

5.15pm                                               The Chairperson thanked Members for their attendance and attention to business and declared the meeting closed.

 

              CONFIRMED AS A TRUE AND CORRECT RECORD BY THE CHAIRPERSON AND CHIEF EXECUTIVE UNDER STANDING ORDER 8.1.4 ON

 

 

 

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

 

 

 

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

 

 

 

CHIEF EXECUTIVE

OR NOMINEE:…………………………………………