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AGENDA Audit and Risk 2019-08-21 Website MASTERTON DISTRICT COUNCIL AGENDA AUDIT AND RISK COMMITTEE WEDNESDAY 21 AUGUST 2019 AT 3.00PM MEMBERSHIP OF THE COMMITTEE Philip Jones (Chairperson) Her Worship the Mayor Cr D Davidson Cr J Dalziell Cr B Goodwin Cr G McClymont Cr C Peterson Quorum: Four Noce is given that the ̀ meeng of the Masterton District Council Audit and Risk Commi. ee will be held on Wednesday 21 August 2019 at REAP House, 340 Queen St, Masterton commencing at 3.00pm. RECOMMENDATIONS IN REPORTS ARE NOT TO BE CONSTRUED AS COUNCIL POLICY UNTIL ADOPTED 18 August 2019 1 AGENDA ITEMS 1. APOLOGIES 2. CONFLICTS OF INTEREST (Members to declare conflicts, if any) 3. LATE ITEMS 4. MINUTES OF PREVIOUS MEETING TO BE RECEIVED (092/19) Pages 401-406 FOR INFORMATION 5. FOURTH QUARTER REPORTS (166/19) Pages 411-418 a) Destination Wairarapa - 12 month report and financial statements Pages 419-436 b) Connecting Communities - six month report and financial statements Pages 437-448 c) Sport Wellington Wairarapa - Annual Report Pages 449-463 d) Aratoi Regional Trust - quarterly report and financial statements Pages 464-470 6. NON-FINANCIAL PERFORMANCE 2017/2018 QUARTER 4 (167/19) Pages 471-486 7. ANNUAL REPORT, AUDIT PLAN & TIMETABLE (168/19) Pages 487-501 8. RATES RECEIVABLE REPORT (169/19) Pages 502-504 9. TREASURY MANAGEMENT REPORT (170/19) Pages 505-510 10. BUSINESS IMPROVEMENT WORK PROGRAMME (171/19) Pages 511-517 11. PRIVACY POLICY AND ENFORCEMENT POLICY (172/19) Pages 518-544 12 HEALTH & SAFETY QUARTERLY REPORT (173/19) Pages 545-551 13. NZTA INVESTMENT AUDIT REPORT (174/19) Pages 552-571 14. DRAFT YEAR END FINANCIAL REPORT 2017/18 To be circulated separately MATTERS TO BE TAKEN WITH THE PUBLIC EXCLUDED Moved by Seconded by Under section 48 (1) of the Local Government Official Information and Meetings Act 1987 the following matters will be taken with the public excluded :- 15. Receive the Minutes of the previous meeting held with the public excluded 8 May 2019. 2 General Business 16. Corporate Risk Policy 17. Interim Audit Management Report 18. SMT Risk Discussion The general subject of the matters to be considered while the public is excluded, the reason for passing this resolution in relation to the 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 is as follows:- General subject of each matter Reason for passing this Ground(s) under section 48(1) for to be considered resolution in relation to each the passing of this resolution matter Minutes of Previous Meeting held 8 See page 405 s48(1)(d) That the exclusion of May 2019 the public from the whole or the relevant part of the proceedings of the meeting is necessary to enable the local authority to deliberate in private on its decision or recommendation in any proceeding to which this paragraph applies Corporate Risk Policy 7(2)(c)(i) s48(1)(d) The withholding of the That the exclusion of the public from information is necessary to the whole or the relevant part of the protect information which is proceedings of the meeting is subject to an obligation of necessary to enable the local confidence or which any person authority to deliberate in private on has been or could be compelled its decision or recommendation in to provide under the authority of any proceeding to which this any enactment, where the paragraph applies 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. 7(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. Interim Audit Management 7(2)(f)(ii) The withholding of the s48(1)(d) Report information is necessary to That the exclusion of the public from maintain the effective conduct of the whole or the relevant part of the public affairs through the proceedings of the meeting is protection of such members, necessary to enable the local officers, employees, and authority to deliberate in private on persons from improper pressure its decision or recommendation in or harassment any proceeding to which this paragraph applies 3 SMT Risk Discussion 7(2)(c)(i) s48(1)(d) The withholding of the That the exclusion of the public from information is necessary to the whole or the relevant part of the protect information which is proceedings of the meeting is subject to an obligation of necessary to enable the local confidence or which any person authority to deliberate in private on has been or could be compelled its decision or recommendation in to provide under the authority of any proceeding to which this any enactment, where the paragraph applies 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. 7(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. 401 092/19 REPORT OF THE AUDIT & RISK COMMITTEE MEETING HELD AT REAP HOUSE, 340 QUEEN ST, MASTERTON ON WEDNESDAY 8 MAY 2019 AT 3.00PM PRESENT Philip Jones (Chair), Mayor L Patterson (to 3.33 pm), J Dalziell, D Davidson, B Goodwin, C Peterson, Graham McClymont IN ATTENDANCE Chief Executive, Manager Finance, Manager Assets and Operations, Manager Strategic Planning, Governance Advisor and one media representative. CONFLICT OF INTEREST No conflicts of interest were declared. LATE ITEMS FOR INCLUSION UNDER SECTION 46A(7) OF THE LOCAL GOVERNMENT OFFICIAL INFORMATION AND MEETINGS ACT 1987 There were no late items. APOLOGIES There were no apologies. MINUTES OF PREVIOUS MEETING TO BE RECEIVED (021/19) Moved by Mayor L Patterson that the minutes of the Audit and Risk Committee meeting held 20 February 2019 be received. Seconded by Councillor J Dalziell and CARRIED. With the leave of the meeting, Item 8 Third Quarter Reports was taken first as Destination Wairarapa and Aratoi were in attendance. THIRD QUARTER REPORTS (084/19) The report providing the Committee with the quarterly reports and financial statements from Aratoi Regional Trust and Destination Wairarapa was taken as read. The Manager Destination Wairarapa, the Director, Aratoi and the Chair and one Board member of the Aratoi Regional Trust were in attendance to present their reports. Destination Wairarapa It was noted that if Council wanted to change any levels of service or reporting requirements with Destination Wairarapa, the review of the Memorandum of Understanding which was currently underway was the time to do that. Once complete the Memorandum of Understanding would come to Council, rather than the Audit and Risk Committee. Aratoi Aratoi’s Annual Plan and Strategic Plan would be provided to elected members. 402 Moved by Councillor D Davidson That the Audit and Risk Committee receives: a) the quarterly report and financial information as at 31 March 2019 from Destination Wairarapa; b) the quarterly report and financial information as at 31 March 2019 from Aratoi Regional Trust Seconded by Councillor J Dalziell and CARRIED RATES WRITE-OFF & REMISSION (081/19) The report seeking approval from Council for the write-off of rates and further remission of rates relating to land subject to the Deed of Agreement between the Council and two trusts (the Whakataki 3B3-3B4 Ahu Whenua Trust and the Mere Te Huinga Potangaroa Whanau Trust) was presented by the Manager Finance. Moved by Mayor L Patterson That the Audit & Risk Committee recommends to Council, in accordance with the Deed of Agreement ratified by the Maori Land Court on 4 September 2018 relating to road re-alignment land at Whakataki, that Council: a) approves a rates write-off of $22,545.10. b) approves applying a 100% rates remission for the 2018/19, and 2019/20 rating years. Seconded by Councillor G McClymont and CARRIED (Mayor L Patterson left the meeting at 3.33pm) INVESTMENT POLICY – RESPONSIBLE INVESTMENT (083/19) The report providing the Committee with further information and options with respect to how the Council’s Investment Policy might influence financial institutions’ investment policies was presented by the Manager Finance. The Chair asked what Council’s overall policy on zero carbon was as Council shouldn’t be asking another party to do something Council wasn’t doing itself. The Chief Executive advised that although Council didn’t have an overall zero carbon policy Council have baseline measurements of emissions (CEMARS) and do have an Electric Vehicle First policy. The risk of investing in fossil fuels was raised and it was noted that the recommendation covered both the ethical and risk aspects of investment. If Council were to write to the major trading banks the rationale for the request would need to be clear – that Council perceives there is a risk for our term deposit and bond investments with them if they continue to invest in and lend to fossil fuel industries. 403 The remit to the 2018 LGNZ AGM referred to in the report was also discussed and a request was made for Council to consider resubmitting it for the 2020 LGNZ AGM as there wasn’t time to progress it for 2019.
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