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Kōmiti Tātari me te Mātai
Raru Tūpono /
Audit and Risk Committee
OPEN MINUTES
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Te Hunga kua
Tae mai | present
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Chairperson
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Bruce
Robertson
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Deputy
Chairperson
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Cr Lotu Fuli
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Members
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Member Paul
Connell
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Member
Cassandra Crowley
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Cr Julie
Fairey
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Until 4.55pm,
Item C3
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Cr Christine
Fletcher, QSO
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Cr Shane
Henderson
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Member Martin
Matthews
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Te Hunga Kāore i Tae Mai | ABSENT
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Ex-officio
members
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Mayor Wayne
Brown
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IMSB Member
Tony Kake, MNZM
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Deputy Mayor Cr
Desley Simpson, JP
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He Hunga atu anō i Tae mai | IN ATTENDANCE
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Greg Schollum,
Deputy Auditor-General
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David Taylor,
Sector Manager, Auckland
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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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Audit and Risk
Committee
12 December 2022
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Deputy Chairperson Cr Lotu Fuli opened the
meeting with a karakia.
Chairperson Bruce Robertson welcomed all
present to the first meeting of the new term especially newly appointed
independent and elected members.
1 Ngā
Tamōtanga | Apologies
2 Te Whakapuaki i te Whai
Pānga | Declaration of Interest
Member Cassandra
Crowley declared that she was a board member of Waka Kotahi NZ Transport
Agency.
3 Te Whakaū i
ngā Āmiki | Confirmation of Minutes
There
were no minutes for confirmation.
4 Ngā
Petihana | Petitions
There
were no petitions.
5 Ngā
Kōrero a te Marea
| Public Input
There was no
public input.
6 Ngā
Kōrero a te Poari ā-Rohe Pātata | Local Board Input
There was no
local board input.
7 Ngā Pakihi
Autaia | Extraordinary Business
There was no
extraordinary business.
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9
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Health, Safety, and Wellbeing Report
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Resolution
number ARCCC/2022/3
MOVED by Cr C Fletcher, seconded by Member M Matthews:
That
the Audit and Risk Committee:
a) tuhi ā-taipitopito
/ note the information in this reporting and associated health, safety, and
wellbeing indicators
b) refer
this report to the Governing Body and recommend that the Governing Body
forwards this report to local boards for their information.
CARRIED
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11
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Risk management approach for annual budget
2023-2024
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Resolution
number ARCCC/2022/5
MOVED by Member P Connell, seconded by Cr C Fletcher:
That
the Audit and Risk Committee:
a) tuhi ā-taipaitopito
/ note that the impacts of rising inflation and interest rates have resulted
in operating budget pressures that present ongoing financial risks for the
council group
b) tuhi ā-taipaitopito
/ note that given the environment of economic
uncertainty there remains a need for careful and ongoing monitoring and
management of key financial risks
c) whakaae
/ agree to advise the Governing Body that an appropriate approach is being
taken to manage the key financial risks associated with the Annual Budget
2023/2024, provided that the Governing Body agrees a budget proposal and
items for consultation that address the financial pressures in a sustainable,
credible and financially prudent manner
d) tuhi ā-taipaitopito
/ note that if an audit review is required in relation to a proposal to amend
the Long-term Plan 2021-2031 an update on that audit review will be provided
to the Audit and Risk Committee prior to the Governing Body adopting the
consultation material.
CARRIED
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12
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Endorsement of the draft Office of the
Auditor-General Interim Review Engagement Letter for the 6 months ended 31
December 2022
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Resolution
number ARCCC/2022/6
MOVED by Chairperson B Robertson, seconded by Member C
Crowley:
That
the Audit and Risk Committee:
a) arotake
/ review and ohia / endorse Audit New Zealand’s draft interim review
engagement letter, including the proposed review engagement fee
b) tono
/ request Audit New Zealand issue the final interim review audit engagement
letter
c) tono
/ request the mayor and chief executive sign the final interim review audit
engagement letter.
CARRIED
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13
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Preparation of the interim report and NZX
release for the six months ending 31 December 2022
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Resolution
number ARCCC/2022/7
MOVED by Member M Matthews, seconded by Deputy
Chairperson Cr L Fuli:
That
the Audit and Risk Committee:
a) tuhi ā-taipitopito / note the information contained
in this financial process status update for the Auckland Council Group NZX
announcement and interim report for the six months ending 31 December 2022
b) tuhi ā-taipitopito / note that an update on the
confidential matters and confidential draft documents related to the interim report and NZX release will be
discussed later in this meeting in confidence.
CARRIED
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14
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Final Office of the Auditor-General report
to governors for the year ended 30 June 2022
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Resolution
number ARCCC/2022/8
MOVED by Member C Crowley, seconded by Member M Matthews:
That
the Audit and Risk Committee:
a) tuhi
a-taipitopito / note the matters identified by the Office of the
Auditor-General in its report to governors for the year ended 30 June 2022,
and Auckland Council’s responses to those matters.
CARRIED
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15 Te Whakaaro ki ngā Take Pūtea e
Autaia ana | Consideration
of Extraordinary Items
There was no
consideration of extraordinary items.
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16 Procedural
motion to exclude the public
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Resolution
number ARCCC/2022/9
MOVED by Chairperson B Robertson, seconded by
Cr C Fletcher:
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, Karen MacKenzie, Audit Director, Audit New Zealand, 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:
Council-Controlled Organisations' Quarterly Risk Update December 2022
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Reason for passing this resolution in relation to each matter
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Particular interest(s) protected (where applicable)
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Ground(s) under section 48(1) for the passing of this
resolution
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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.
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s7(2)(c)(i)
- The withholding of the information is necessary to protect information
which is subject to an obligation of confidence or which any person has
been or could be compelled to provide under the authority of any enactment,
where the making available of the information would be likely to prejudice the
supply of similar information or information from the same source and it is
in the public interest that such information should continue to be
supplied.
In
particular, the report contains risk reporting and detailed top risks
confidential to the substantive council-controlled organisations' Boards or
Audit and Risk Committees. The council-controlled organisations have
provided their risk reports for the Council's Audit and Risk Committee
subject to confidentiality.
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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.
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C2 CONFIDENTIAL:
Legal Risk update
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Reason for passing this resolution in relation to each matter
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Particular interest(s) protected (where applicable)
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Ground(s) under section 48(1) for the passing of this
resolution
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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.
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s7(2)(g)
- The withholding of the information is necessary to maintain legal
professional privilege.
s7(2)(h)
- The withholding of the information is necessary to enable the local
authority to carry out, without prejudice or disadvantage, commercial
activities.
s7(2)(i)
- The withholding of the information is necessary to enable the local
authority to carry on, without prejudice or disadvantage, negotiations
(including commercial and industrial negotiations).
In
particular, the report contains legally privileged and commercially
sensitive information.
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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.
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C3 CONFIDENTIAL:
Internal Audit Plan January - June 2023
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Reason for passing this resolution in relation to each matter
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Particular interest(s) protected (where applicable)
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Ground(s) under section 48(1) for the passing of this
resolution
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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.
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s7(2)(c)(i)
- The withholding of the information is necessary to protect information
which is subject to an obligation of confidence or which any person has
been or could be compelled to provide under the authority of any enactment,
where the making available of the information would be likely to prejudice
the supply of similar information or information from the same source and
it is in the public interest that such information should continue to be
supplied.
In
particular, the report contains information which if released would
jeopardise the effective delivery of the Assurance Services work programme.
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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.
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C4 CONFIDENTIAL:
Interim report and NZX release for the six months ending 31 December 2022
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Reason for passing this resolution in relation to each matter
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Particular interest(s) protected (where applicable)
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Ground(s) under section 48(1) for the passing of this
resolution
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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.
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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 and attachments contain information regarding the
interim report and financial results of the Auckland Council Group to 31
December 2022 which cannot be made public until released to the NZX.
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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.
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C5 CONFIDENTIAL:
Office of the Auditor-General and Audit New Zealand briefing
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Reason for passing this resolution in relation to each matter
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Particular interest(s) protected (where applicable)
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Ground(s) under section 48(1) for the passing of this
resolution
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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.
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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 interim report and financial
results of the Auckland Council Group and Auckland Council for 31 December
2022 which cannot be made public until released to the NZX.
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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.
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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
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3.20pm 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:
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C1
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CONFIDENTIAL: Council-Controlled
Organisations' Quarterly Risk Update December 2022
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Resolution
number ARCCC/2022/11
MOVED by Deputy Chairperson Cr L Fuli, seconded by Member
P Connell:
That the Audit and Risk
Committee:
a) tuhi ā-taipitopito / note the written and verbal updates
provided by Watercare Services Limited
b) tuhi ā-taipitopito / note the written updates provided
by Eke Panuku, Auckland Transport and Tātaki Auckland
Unlimited
c) recommend the council-controlled organisations’ quarterly
risk update – December 2022 to the Council Controlled Organisations
Direction & Oversight Committee and the Transport & Infrastructure
Committee for information
Restatement
d) whakaae
/ agree that the decisions be released in the open minutes, but this report
and its attachments remain confidential.
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C3
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CONFIDENTIAL: Internal Audit Plan
January - June 2023
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Resolution
number ARCCC/2022/12
MOVED by Chairperson B Robertson, seconded by Member P
Connell:
That the Audit and Risk
Committee:
a) whakaae
/ approve the internal audit charter
b) whakaae
/ approve the internal audit plan for January – June 2023 presented by
the Risk and Assurance department.
Restatement
c) whakaae
/ agree that the decisions be released in the open minutes, but this report
and its attachments remain confidential.
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C4
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CONFIDENTIAL: Interim report and NZX release
for the six months ending 31 December 2022
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Resolution
number ARCCC/2022/13
MOVED by Member C Crowley, seconded by Member P Connell:
That the Audit and Risk
Committee:
a) tuhi a-taipitopito / note the information contained in this
financial process status update for the Auckland Council Group NZX
announcement and interim report for the six months ending 31 December 2022
b) ohia /
endorse the accounting policies, key financial statements, judgements, estimates and assumptions for the Auckland Council Group
included in the pro forma interim report, subject to any required changes
identified by management and Audit New Zealand during the half year close and
auditor review
c) tono /
request committee members provide any further feedback on the pro forma
interim report to staff by 13 January 2023
d) tautapa
/ delegate the authority to the committee chair and group chief financial
officer to endorse any significant subsequent amendments to the interim
report
e) tuhi a-taipitopito / note the draft responses to the
enquiries by Audit New Zealand on the Audit and Risk Committee’s
oversight of the management of fraud
f) tono
/ request committee members provide further feedback on the fraud
questionnaire to staff by 13 January 2023
Restatement
g) whakaae
/ agree that the report and attachments will remain confidential, but the
decisions be restated in the open minutes.
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C5
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CONFIDENTIAL: Office of the Auditor-General
and Audit New Zealand briefing
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Resolution
number ARCCC/2022/14
MOVED by Chairperson B Robertson, seconded by Member M
Matthews:
That the Audit and Risk
Committee:
a) whiwhi
/ receive the information provided by the Auditor-General’s
representatives, Deputy Auditor-General Greg Schollum, Sector Manager – Auckland David Taylor, Audit
Director Karen MacKenzie and Audit Manager Penica Cortez, and thank them for
their attendance
Restatement
b) whakaae
/ agree that the report and attachment will remain confidential, but the
decisions be restated in the open minutes.
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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:.......................................................
