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Komiti mō te Tātari me te
Mātai Tūraru
/
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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Paul Connell
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Deputy Chairperson
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Cr Lotu Fuli
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In person until 4.56pm, Item C2, and then
via electronic link
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Members
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Cassandra Crowley
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Via electronic link
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Cr Angela Dalton
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Cr Christine Fletcher, QSO
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Via electronic link
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Cr Shane Henderson
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Via electronic link
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Martin Matthews
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Ex-officio
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Mayor Wayne Brown
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Te Hunga Kāore i Tae Mai | ABSENT
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Ex-officio
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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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David Taylor,
Sector Manager - Auckland
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Athol Graham,
Audit Director, Audit New Zealand
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Audit and Risk Committee
05 December 2023
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Chairperson Paul Connell lead the opening
of the meeting with a karakia.
1 Ngā
Tamōtanga | Apologies
2 Te Whakapuaki i te Whai
Pānga | Declaration of Interest
Chairperson Paul Connell declared that he was the Deputy Chair of
International Accreditation New Zealand.
Member
Cassandra Crowley declared that she was the Acting Chair of Waka Kotahi NZ
Transport Agency and a Director of South Port New Zealand Limited.
3 Te Whakaū i
ngā Āmiki | Confirmation of Minutes
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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8
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Forward Work Programme December 2023
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Resolution
number ARCCC/2023/76
MOVED by Chairperson P Connell, seconded by Deputy
Chairperson Cr L Fuli:
That
the Audit and Risk Committee:
a) whakaae
/ approve the Audit and Risk Committee Forward Work Programme 2023-2024,
noting that the following changes have been made to the agenda of this
5 December meeting of the Audit and Risk Committee, in comparison to what was
previously included as part of the forward work programme 2022-2023:
i) an
additional report to explain Regulatory Services statutory clock management
ii) an additional report,
‘Final Audit Management Report for the Long-term Plan amendment
2023’, will provide an update to this committee on the Long-term Plan
amendment to allow for the sale of Auckland Airport shares
iii) a
progress update will be presented to the committee on the ‘Climate
Disclosure Work Programme’
iv) an
additional ‘Audit New Zealand final audit management report 30 June
2023’ will be presented at this committee
v) an
additional ‘Review arrangements 31 December 2023’ report will be
presented at this committee
vi) an
additional ‘31 December 2023 Interim Financial Statements & NZX
Announcement Update’ will be presented at this committee
vii) an
additional ‘Proforma interim financial statements and accounting
policies 31 December 2023’ report will be presented at this committee
viii) what
was previously included on the forward work programme for this committee as
‘Risk management approach for the Annual Budget 2024/2025’ will
now be reported as an update on the ‘Risk management approach to the
Long-Term Plan 2024-2034’.
CARRIED
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10
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Health, Safety, and Wellbeing Performance
Report
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Resolution
number ARCCC/2023/78
MOVED by Cr A Dalton, seconded by Member M Matthews:
That
the Audit and Risk Committee:
a) tuhi
ā-taipitopito / note the information in this report and the associated
health, safety, and wellbeing indicators.
b) whakaae /
agree to 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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12
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Enterprise Risk Update December 2023
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Resolution
number ARCCC/2023/80
MOVED by Member M Matthews, seconded by Member C Crowley:
That the Audit and Risk Committee:
a) tuhi ā-taipitopito /
note the Enterprise Risk Update – December 2023 report and updated
strategic risks
b) tūtohungia / recommend referring the Enterprise Risk Update
– December 2023 report to the Governing Body for information.
CARRIED
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13
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Final Office of the Auditor-General report
to governors for the year ended 30 June 2023
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Resolution
number ARCCC/2023/81
MOVED by Chairperson P Connell, seconded by Cr A Dalton:
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 2023,
and Auckland Council’s responses to those matters.
CARRIED
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14
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Endorsement of the draft Office of the
Auditor-General Interim Review Engagement Letter for the 6 months ended 31
December 2023
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Resolution
number ARCCC/2023/82
MOVED by Member M Matthews, seconded by Deputy
Chairperson Cr L Fuli:
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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15
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Preparation of the interim report and NZX
release for the six months ending 31 December 2023
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Resolution
number ARCCC/2023/83
MOVED by Deputy Chairperson Cr L Fuli, seconded by Cr A
Dalton:
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 2023
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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16
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Climate disclosure work programme update
December 2023
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Resolution
number ARCCC/2023/84
MOVED by Member M Matthews, seconded by Mayor W Brown:
That
the Audit and Risk Committee:
a) tuhi
ā-taipitopito / note the council’s progress towards compliance
with climate disclosure standards and associated legislation which comes into
effect for the year ended 30 June 2024.
CARRIED
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17
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Long-term Plan 2024-2034 (LTP) approach to
risk and assurance
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Resolution
number ARCCC/2023/85
MOVED by Mayor W Brown, seconded by Cr A Dalton:
That
the Audit and Risk Committee:
a) tuhi ā-taipitopito / note the update on the development of the Long-term
Plan 2024-2034
including the approach to risk management
b) tuhi ā-taipitopito / note the draft engagement letter from Audit New
Zealand for the
audit of Auckland Council group’s consultation material and the
Long-term Plan
2024-2034
c) tautapa
/ delegate to the chair of this committee authority to approve the final engagement
letter once it is received and make any recommendations to the Mayor
in relation to signing the letter.
CARRIED
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19 Te Whakaaro ki ngā Take Pūtea e
Autaia ana | Consideration
of Extraordinary Items
There was no consideration
of extraordinary items.
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20 Te Mōtini ā-Tukanga hei Kaupare i
te Marea | Procedural
motion to exclude the public
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Resolution
number ARCCC/2023/87
MOVED by Chairperson P Connell, seconded by
Deputy Chairperson Cr L Fuli:
That the Audit and Risk Committee:
a) whakaae
/ agree to exclude the public from the following part(s) of the proceedings
of this meeting.
b) whakaae
/ agree that David Taylor, Sector Manager - Auckland and Athol Graham, Audit
Director, 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:
Substantive Council-Controlled Organisations' Quarterly Risk Update -
December 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 risk reporting and detailed risks
confidential to the substantive council-controlled organisations' boards or
Audit and Risk Committees. The substantive council-controlled organisations
have provided their risk reports for 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:
Enterprise Risk Update December 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 detailed information on the mitigation
activities of the strategic risks that could be detrimental to risk
management objectives if in the public domain.
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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:
Internal Audit 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)(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)(c)(ii)
- 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 damage the
public interest.
In
particular, the report contains information which if released would
jeopardise the effective delivery of the Internal Audit 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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C5 CONFIDENTIAL:
Climate disclosure work programme update December 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)(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 information about climate risks that could
materially impact the Auckland Council Group's financial position in the
future and have not yet been reported to the public.
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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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C6 CONFIDENTIAL:
Interim report and NZX release for the six months ending 31 December 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)(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 2023 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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C7 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 financial results of the
Auckland Council Group and Auckland Council for 31 December 2023 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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3.58pm 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.
6.19pm The
public was re-admitted.
restatementS
It was resolved
while the public was excluded:
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C1
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CONFIDENTIAL: Substantive Council-Controlled
Organisations' Quarterly Risk Update - December 2023
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Resolution
number ARCCC/2023/88
MOVED by Mayor W Brown, seconded by Member M Matthews:
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 Auckland Transport,
Eke Panuku Development and Tātaki Auckland Unlimited
c) tautohu / refer the Substantial Council-Controlled
Organisations’ Quarterly Risk Update – December 2023 to the
Council Controlled Organisations Direction and Oversight Committee, including
the attachments relating to Eke Panuku Development, Tātaki Auckland
Unlimited and Watercare Services Limited
d) tautohu / refer the Substantial Council-Controlled
Organisations’ Quarterly Risk Update – December 2023 to the
Transport and Infrastructure Committee, including the attachments relating to
Auckland Transport only
Restatement
e) whakaae
/ 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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CONFIDENTIAL: Legal Risk update
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Resolution
number ARCCC/2023/89
MOVED by Cr A Dalton, seconded by Mayor W Brown:
That the Audit and Risk
Committee:
a) tuhi
ā-taipitopito / note the
Legal Risk update
Restatement
b) whakaae
/ 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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CONFIDENTIAL: Enterprise Risk Update
December 2023
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Resolution
number ARCCC/2023/90
MOVED by Member M Matthews, seconded by Cr A Dalton:
That the Audit and Risk
Committee:
a) whiwhi
/ receive the contents of this confidential Enterprise Risk Update –
December 2023 report
Restatement
b) whakaae
/ 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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CONFIDENTIAL: Internal Audit Update
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Resolution
number ARCCC/2023/91
MOVED by Chairperson P Connell, seconded by Cr A Dalton:
That the Audit and Risk
Committee:
a) tuhi ā-taipitopito / note the update
on assurance activities performed by the Risk and Assurance department
Restatement
b) whakaae
/ agree that the decisions be transferred to the open minutes, but the report
and attachments remain confidential.
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C5
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CONFIDENTIAL: Climate disclosure work
programme update December 2023
|
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Resolution
number ARCCC/2023/92
MOVED by Chairperson P Connell, seconded by Member M
Matthews:
That the Audit and Risk
Committee:
a) tuhi
ā-taipitopito / note the council’s progress towards compliance
with climate disclosure standards and associated legislation which comes into
effect from 30 June 2024
Restatement
b) whakaae
/ agree that the report and attachments will remain confidential, but the
decisions be restated in the open minutes.
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C6
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CONFIDENTIAL: Interim report and NZX release
for the six months ending 31 December 2023
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Resolution
number ARCCC/2023/93
MOVED by Member C Crowley, seconded by Member M Matthews:
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 2023
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 12 January 2024
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
ā-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 12 January 2024
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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C7
|
CONFIDENTIAL: Office of the Auditor-General
and Audit New Zealand briefing
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Resolution
number ARCCC/2023/94
MOVED by Chairperson P Connell, seconded by Cr A Dalton:
That the Audit and Risk
Committee:
a) whiwhi
/ receive the information provided by the Auditor-General’s
representatives, Sector Manager –
Auckland David Taylor and Audit Director Athol Graham 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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Chairperson Paul Connell lead the closing
of the meeting with a karakia.
6.19pm 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:.......................................................
