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To the Mayor and Councillors of the Mackenzie District Council

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To the Mayor and Councillors of the Mackenzie District Council 1 PAD 3/1 TO THE MAYOR AND COUNCILLORS OF THE MACKENZIE DISTRICT COUNCIL MEMBERSHIP OF THE FINANCE COMMITTEE Graham Smith (Chairman) Claire Barlow (Mayor) John Bishop Peter Maxwell Annette Money Graeme Page Evan Williams Notice is given of a meeting of the Finance Committee to be held on Tuesday 8 November 2011 at 9.30 am VENUE: Council Chambers, Fairlie BUSINESS: As per agenda attached NATHAN HOLE ACTING CHIEF EXECUTIVE OFFICER 3 November 2011 Y:\Agenda\Agendas 2011\Finance Committee\Finance Committee 8 November 2011\aNotice Finance Committee.doc 2 AGENDA FOR TUESDAY 8 NOVEMBER 2011 I APOLOGIES II DECLARATIONS OF INTEReST III MINUTES • Confirm and adopt as the correct records the Minutes of the meetings of the Finance Committee held on 23 August 2011 and 4 October 2011, including such parts as were taken with the Public Excluded. • Receive the Minutes of the meeting of the Audit and Risk Subcommittee held on 6 September 2011. MATTERS UNDER ACTION IV REPORTS 1. Pukaki Airport Committee – Chairman’s Report 2. Finance Report – September 2011 3. Review of Local Authority Remuneration Setting 4. Bancorp Quarterly Report 5. Mackenzie Tourism and Development Trustees Terms of Office 6. Annual Report 2010/2011 (to be tabled) 7. Summary of Annual Report 8. Pensioner Housing Policy VI PUBLIC EXCLUDED That the public be excluded from the following part of the proceedings of this meeting namely: 1. Bluewater Resort 2. Mackenzie Tourism and Development Trust Remuneration 3. Request to Terminate Agreement “Deed for Payment of Water, Sanitary Sewage and Stormwater Contribution” Reason for passing Ground(s) under General subject this resolution in Section 48(1) for of each matter relation to each the passing of to be considered matter this resolution Bluewater Resort Commercial Sensitivity 48(1)(a)(i) Request to Terminate Agreement Commercial Sensitivity 48(1)(a)(i) “Deed for Payment of Water, Sanitary Sewage and Stormwater Contribution” Mackenzie Tourism and To protect the privacy of 48(1)(a)(i) Development Trust persons Remuneration Y:\Agenda\Agendas 2011\Finance Committee\Finance Committee 8 November 2011\BAgenda.docx 3 This resolution is made in reliance on Section 48(1)(a)(i) 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 the relevant part of the proceedings of the meeting in public are as follows: Blue Water Resort section 7(2)(b)(ii), Request to Terminate Agreement “Deed for Payment of Water, Sanitary Sewage and Sotrmwater Contribution”, section 7(2)(b)(ii), Mackenzie Tourism and Development Trust Remuneration section 7(2)(a) VII VISITOR: 9.30 am Bruce Anderson, Pukaki Airport Committee Y:\Agenda\Agendas 2011\Finance Committee\Finance Committee 8 November 2011\BAgenda.docx 1 4 MACKENZIE DISTRICT COUNCIL MINUTES OF A MEETING OF THE FINANCE COMMITTEE HELD IN THE SERVICE CENTRE, TWIZEL, ON TUESDAY 23 AUGUST 2011 AT 1.00 PM PRESENT: Graham Smith (Chairman) Claire Barlow (Mayor) John Bishop Peter Maxwell Annette Money Graeme Page Evan Williams IN ATTENDANCE: Glen Innes (Chief Executive Officer) Paul Morris (Manager – Finance and Administration) Bernie Haar (Asset Manager) for part of the meeting Suzy Ratahi (Manager – Roading) for part of the meeting Rosemary Moran (Committee Clerk) III MINUTES: Resolved that the minutes of the meeting of the Finance Committee held on Tuesday 5 July 2011, including such parts as were taken with the Public Excluded, be confirmed and adopted as the correct record of the meeting. Graeme Page/Annette Money V REPORTS: 1. FINANCIAL REPORT – APRIL 2011: This report from the Manager – Finance and Administration was accompanied by the financial reports for the period to June 2011. Resolved that the report be received. Annette Money/Evan Williams Governance Activity Resolved that the total amount of the payment to correct an error on a s224 certificate issued in 2006 be charged to the Regulatory Activity rather than Governance. Graeme Page /John Bishop Y:\Agenda\Agendas 2011\Finance Committee\Finance Committee 8 November 2011\cFinance Committee Minutes for 23 August 2011.docx 2 5 2 BANCORP QUARTERLY REPORT: This report from the Manager – Finance and Administration was accompanied by the quarterly report form Bancorp Treasury Services to 30 June 2011. Resolved that the report be received. Annette Money/Claire Barlow THE CHAIRMAN DECLARED THE MEETING CLOSED AT 2.22 PM CHAIRMAN: DATE: _____________________________________ Y:\Agenda\Agendas 2011\Finance Committee\Finance Committee 8 November 2011\cFinance Committee Minutes for 23 August 2011.docx 1 6 MACKENZIE DISTRICT COUNCIL MINUTES OF A MEETING OF THE FINANCE COMMITTEE HELD IN THE COUNCIL CHAMBERS, FAIRLIE, ON TUESDAY 4 OCTOBER 2011 AT 1.00 PM PRESENT: Graham Smith (Chairman) Claire Barlow (Mayor) John Bishop Peter Maxwell Annette Money Evan Williams IN ATTENDANCE: Glen Innes (Chief Executive Officer) Paul Morris (Manager – Finance and Administration) Rosemary Moran (Committee Clerk) I APOLOGY: Resolved that an apology be received from Graeme Page. Evan Williams/Peter Maxwell II REPORT: 1. FINANCIAL REPORT – AUGUST 2011: This report from the Manager – Finance and Administration was accompanied by the financial report for the period to August 2011. Resolved that the report be received. Annette Money/Claire Barlow It was requested that a report on vehicle replacement be developed for the next meeting. THE CHAIRMAN DECLARED THE MEETING CLOSED AT 2.22 PM CHAIRMAN: DATE: _____________________________________ Y:\Agenda\Agendas 2011\Finance Committee\Finance Committee 8 November 2011\dFinance Committee Minutes for 4 October 2011.docx 7 MACKENZIE DISTRICT COUNCIL MINUTES OF A MEETING OF THE AUDIT AND RISK SUBCOMMITTEE HELD IN THE COUNCIL CHAMBERS, FAIRLIE, ON TUESDAY 6 SEPTEMBER 2011 AT 1.30 PM PRESENT: Peter Maxwell (Chairman) Claire Barlow (Mayor) Cr Graham Smith IN ATTENDANCE: Paul Morris (Manager – Finance and Administration) Rosemary Moran (Committee Clerk) The Chairman referred to the role of the Audit and Risk Committee and his conversation with Audit Director, Ian Lothian, who told him he viewed it as an additional avenue of communication between Audit New Zealand and the Council; a means of avoiding surprises. He said in the past Council might not have been aware of some events. The Subcommittee would ensure that Council remained informed about what the auditors were doing. He noted that in time, and if required, the Subcommittee had the ability to access outside help if it needed to. The Manager – Finance and Administration reminded the members that the Subcommittee’s brief include the oversight not only of audit matters, but also of the risks in Council’s operations. He referred to the recent report to Council on Insurance which included options for Council’s consideration regarding the mitigation of risk of the financial impact of a natural disaster event occurring in or around the Mackenzie District. He emphasised his support of the Subcommittee noting that its establishment had never been intended to relieve staff members of their responsibilities; rather it would enable Council’s attention to be drawn formally to any audit or risk issues which needed to be addressed. INTERIM MANAGEMENT REPORT ON THE AUDIT OF THE MACKENZIE DISTRICT COUNCIL FOR THE YEAR ENDED 30 JUNE 2011: This report is attached to this record as Appendix A. The Committee scrutinised the report page by page and the following comments were made: Service Performance Control: In addressing the comment regarding the ineffectiveness of the service reporting environment, the Manager – Finance and Administration explained that the Plan included numerous performance measure but which were unable to be measured to the standard required by Audit NZ. He said such performance measures were no longer desired for the Annual Plan but it was not practical to change the existing regime because that would require 8 a costly and time consuming change to the Long Term Plan. He asked that the Council be accepting of the situation which would prevail for the current and the next Annual Report; the new Long Term Plan for 2012 would provide an opportunity to address the situation and would include robust and measureable performance measures. Cr Smith noted that Audit NZ seemed to understand the situation. The Chairman agreed that the auditors knew what the Council was now aiming for in terms of performance measures. 1.1 Governance: The Chairman referred to the absence of a formal record of Members’ Interests pursuant to the Local Authorities (Members’ Interests) Act 1968 and asked that elected members be given the opportunity to provide details of their interests by way of a form to be filled in if they so wished. The Manager – Finance and Administration undertook to provide the members with a form. 1.6.1 Draft Annual Plan 2011/12 The Manager – Finance and Administration advised that the information which had been omitted from the Draft Annual Plan but included in the final version of the Annual Plan would be included in the Long Term Plan. 2. Service Reporting It was noted that at its last meeting the Council had adopted a six-monthly service reporting regime. 3.1 Segregation of Duties The Manager – Finance and Administration noted that the while the Management Comment was that the PA’s access to other system apart from Payroll and Creditors had been removed, in practice that had created problems. Consequently her access to some systems had been reinstated. He said the Auditors would be advised that because of limited staff resources, that segregation of duties would not go ahead. 3.2 Use of Shared Passwords and 3.3 Review of System Access The Chairman noted the importance of ensuring there were clear paper trails with regard to system accesses. 5.4 The Council Governance Role in the Completion of the Council Controlled Organisation (CCO) Statements of Intent (SoIs) The Manager – Finance and Administration said that because the Trust had not accepted the loan offer Council had not been in a position to provide the letter of comfort to Audit NZ that the entity remained a going concern.
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