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.

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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.

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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.

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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. Moved by Councillor C Peterson That the Audit and Risk Committee: a) Endorses Council’s current investment policy with respect to the primary investment objectives b) Notes the responsible investment policies of the main banks the Council uses c) Recommends that Council writes to the major trading banks asking them to transition away from investments in fossil fuel industries by expanding their Responsible Investing policies to include fossil fuel industries on their lists of excluded investments and consider opportunities for long-term investments in low or zero-carbon energy systems. Seconded by Councillor J Dalziell and CARRIED

2018/2019 NINE MONTHS TO DATE FINANCIAL REPORT (082/19)

The report providing the Audit and Risk Committee with the financial report for the nine months to 31 March 2019 was taken as read. It was noted that things were tracking along the same direction as the six months to date report to the previous meeting, with a 2.8% surplus of net rates funding. The capital expenditure programme and the impact of not achieving it was discussed. Bringing other work forward was not necessarily an option as it assumed flexibility in the capital programme Council that didn’t always have. In the roading programme some work had been brought forward using funding carried forward from the previous year. Moved by Philip Jones That the Audit & Risk Committee receives the 9 months to date financial report and commentary, including Operating and Capital Expenditure Statements. Seconded by Councillor D Davidson and CARRIED

NON‐FINANCIAL PERFORMANCE 2018/2019 THIRD QUARTER REPORT (086/19) The report advising the Committee of performance against non-financial measures reported quarterly, for the period from 1 July 2018 to 31 March 2019, was taken as read. The Chief Executive advised that staff were looking at more integrated reporting quarterly for the next financial year so Council was aware of how things were tracking, with financial and non-financial measures reported together. This would identify if changes needed to be made during the year. Moved by Councillor G McClymont That the Audit and Risk Committee receives the Quarter 3 non-financial performance report for the 2018-19 financial year. Seconded by Councillor B Goodwin and CARRIED

404

INSURANCE UPDATE (085/19)

The report providing the Audit and Risk Committee with an update on the insurance cover the Council has in place and the cover which will be sought for the 2019/20 year was presented by the Manager Finance. Moved by Philip Jones That the Audit & Risk Committee receives the report and notes the information regarding the Council’s insurance programme for 2019/20. Seconded by Councillor B Goodwin and CARRIED

UPDATE ON RECOMMENDATIONS FROM THE NZ TRANSPORT AGENCY INVESTMENT AUDIT REPORT (087/19)

The report providing the Audit and Risk Committee with an update on recommendations arising from NZTA’s Investment Audit Report contained in report 071/18 presented to the Committee in May 2018 was presented by the Manager Assets and Operations. It was advised that the next procedural audit would take place in 2021 and that a technical audit would be taking place in June. Moved by Councillor J Dalziell That the Audit and Risk Committee receives the update on the recommendations from the 2018 NZ Transport Agency Investment Audit Report. Seconded by Councillor B Goodwin and CARRIED

HEALTH AND SAFETY QUARTERLY REPORT (090/19)

The report providing information to the Audit and Risk Committee and Council to enable Council to meet its obligations as a Person Conducting a Business or Undertaking (PCBU) under the Health & Safety at Work Act was taken as read. Staff advised that health and safety risks would be brought into the Corporate Risk Strategy once the health and safety risk identification had been completed. Moved by Councillor Deb Davidson That the Audit and Risk Committee receives the Health & Safety report for the third quarter (1 Jan to 31 March 2019) Seconded by Philip Jones and CARRIED

MATTERS TO BE TAKEN WITH THE PUBLIC EXCLUDED

Moved by Councillor G McClymont that the public be excluded from the following parts of the proceedings of the meeting of the Masterton District Council:-

405

Under section 48 (1) of the Local Government Official Information and Meetings Act 1987 the following matters will be taken with the public excluded :- 14. Receive the Report of the previous meeting held with the public excluded 20 February 2019. General Business 15. 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 See page 404-406 s48(1)(d) That the exclusion held 21 November 2018 of 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 SLT Risk Discussion 7(2)(c)(i) s48(1)(d) The withholding of the That the exclusion of the public information is necessary to from the whole or the relevant protect information which is part of the proceedings of the subject to an obligation of meeting is necessary to enable confidence or which any the local authority to deliberate in person has been or could be private on its decision or compelled to provide under recommendation in any the authority of any proceeding to which this enactment, where the making paragraph applies 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.

406

Seconded by Councillor B Goodwin and CARRIED.

The public was excluded at 4.31 pm

The meeting returned to open session at 4.36 pm

The meeting concluded at 4.36 pm

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166/19

To: Audit and Risk Committee

From: Andrea Jackson, Manager Community Facilities and Activities

Endorsed by: Kathryn Ross, Chief Executive

Date: 21 August 2019

Subject: Fourth Quarter Reports

FOR INFORMATION

Recommendation: That Council receives: (a) the quarterly report and financial information as at 30 June 2019 from Destination Wairarapa; (b) the six-monthly report and financial information as at 30 June 2019 from Connecting Communities Wairarapa; (c) the twelve-monthly report and financial information as at 30 June 2019 from Sport Wellington Wairarapa; and (d) the quarterly report and financial information as at 30 June 2019 from Aratoi Regional Trust.

Purpose

The purpose of this report is to provide the committee with the quarterly reports and financial information from Aratoi Regional Trust and Destination Wairarapa, the six-monthly report and financial information from Connecting Communities Wairarapa and the yearly report and financial information from Sport Wellington Wairarapa.

Executive Summary

Aratoi Regional Trust provides community infrastructure and a community service, to support council’s outcome “Pride in our Identity and Heritage”.

Destination Wairarapa provides a community public service and supports council’s community outcome “A Thriving and Resilient Economy”.

Connecting Communities Wairarapa and Sport Wellington Wairarapa contributes to council’s community outcome “An Engaged and Empowered Community”.

All four service providers have achieved their required deliverables for the period reported on, with the exception that Aratoi are not yet able to report on a visitor satisfaction survey.

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Destination Wairarapa Destination Wairarapa deliverables are:

To increase the number of visitors to the Wairarapa, the length of time they stay in the General Manager’s Report 1. Achieved region and the amount they spend. Specifically, Destination Wairarapa are tasked with 30 June 2019, Pages 1-4 delivering 3% growth in tourism GDP per annum for each territory (Masterton, Carterton Attachment and South 1 Wairarapa), with statistics sourced from Infometrics. This information to be reported as Wairarapa-wide and by each territory. 2. That the percentage growth to tourism is comparable to Wellington and Taupo. Achieved General Manager’s Report 30 June 2019, Pages 1 Attachment 1 3. To provide a balanced budget. Achieved General Manager’s Financial Report 30 June 2019, Page 1

Attachment 2 Profit & Loss Report, Pages 1-5 Attachment 3 Balance Sheet, Pages 1-2 Attachment 4 4. To provide an online Wairarapa events calendar. Achieved General Manager’s Report 30 June 2019, Pages 6-7 Attachment 1 5. To report quarterly to the council, including attending council meetings. Achieved, General Manager’s and Marketing attended Audit Manager’s Reports & Risk 30 June 2019, Pages 1-9 Committee Attachment 1 meeting 8 May General Manager’s Financial Report 2019, Q3 30 June 2019, Page 1 Report Attachment 2 6. To have a joint partnership with Tourism New Zealand’s Business Events Team for at Achieved General Manager’s Report least one funded pitch per annum. 30 June 2019, Pages 5-6 Attachment 1

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7. To provide a clear marketing strategy including at least six workshops and/or Achieved Marketing Manager’s Report networking events per annum. April-June 2019, Pages 8-9 Attachment 1

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Connecting Communities Wairarapa

Connecting Communities Wairarapa reports on: (1) Youth Development (a) Wairarapa Rangatahi Development Strategy – participate and complete actions to Achieved General Manager’s Report support the strategy January – June 2019, Page 1 Attachment 5 (b) Youth Council – facilitate, support and enable engagement with Masterton District Achieved General Manager’s Report Council January-June 2019, Pages 1-2 Attachment 5 (c) Youth Events – deliver youth driven events Achieved General Manager’s Report January-June 2019, Page 2 Attachment 5 (d) Youth Groups – enable the establishment and development of Youth Groups in the Achieved General Manager’s Report Masterton district from a community development perspective e.g. Te Awhina Youth January-June 2019, Pages 2-3 Group Attachment 5

(2) Community Development

(a) Community Events – as determined by MDC, facilitate up to two large community Achieved General Manager’s Report events attracting up to 500 people January-June 2019, Page 3 Attachment 5 (b) School Holiday Programmes – hold three programmes, demonstrating delivery of Achieved General Manager’s Report activities that enable more vulnerable students to engage in pro-social, self-esteem January-June 2019, Pages 3-4 building activities Attachment 5 Youth Council – facilitate, support and enable engagement with Masterton District Council.

(c) Neighbourhood Plans – provide facilitation and support a minimum of two communities Achieved General Manager’s Report to develop and progress action plans for community development initiatives; work with January-June 2019, Page 4 the communities and Masterton District Council to produce Neighbourhood Plan Attachment 5 reports. 415

(d) East Side Projects – work with Masterton District Council to deliver up to three projects Achieved General Manager’s Report aimed at supporting neighbourhood regeneration January-June 2019, Page 5 Attachment 5

(3) Neighbourhood Support

(a) Group Numbers – increase groups by 10% in 2018. Achieved General Manager’s Report January-June 2019, Page 5 Attachment 5 (b) Group Maintenance – implement group support strategy that ensures continuing group Achieved General Manager’s Report engagement. January-June 2019, Pages 5-6 Attachment 5 (c) Special Programmes – support groups to target initiatives aimed at increasing Achieved General Manager’s Report community resilience e.g. civil defence awareness, junior neighbourhood support. January-June 2019, Page 6 Attachment 5

(4) Budget and Reporting

(a) Ensure balanced budgets and provide six monthly reports. Achieved Profit and Loss Report 30 June 2019, Pages 1-2 Attachment 6 Balance Sheet 30 June 2019, Page 1 Attachment 7 2018/19 Budget July 2018 to June 2019, Pages 1-3 Attachment 8

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Sport Wellington Wairarapa

Sport Wellington Wairarapa is funded by the Council to:

Participation Opportunities: Customer Insights - ensure a thorough understanding of current Achieved 12-month report 1. and potential participants and share information to support informed, evidence-based 1 January–30 June 2019, Pages 2-3 decision making. Attachment 9

2. Participation Opportunities: Integration of Physical Literacy Approach – take a holistic view of Achieved 12-month report the participant and ensure that delivery meets participant needs and inspires ongoing 1 January–30 June 2019, Pages 3-4 participation. Attachment 9

3. Participation Opportunities: Low Participant Group Initiatives – work alongside low Achieved 12-month report participation communities to develop targeted programmes and services which reduce 1 January–30 June 2019, Pages 4-6 barriers and increase participation in sport and physical activity. Attachment 9

Spaces and Places: Regional Facilities Plan – develop an integrated network of local and Achieved 12-month report 4. regional places and spaces that provide more people in the region with better places to 1 January-30 June 2019, Pages 7 participate and support event hosting. Attachment 9

5. Workforce Excellence: Improving Sports and Clubs Capability – support sports and clubs to Achieved 12-month report grow their capability and deliver high quality sport and active recreation opportunities to 1 January–30 June 2019, Pages 7-12 participants. Attachment 9

6. Strategic Investment: Aligned Investment – ensure investment into sport and recreation is Achieved 12-month report aligned and targeted to provide best return and support increased participation. 1 January–30 June 2019, Pages 12-14 Attachment 9 7. Budget – provide balanced budget. Achieved 12-month report 1 January–30 June 2019, Pages 1 Attachment 10

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Aratoi Regional Trust

Aratoi Regional Trust reports on:

1. Exhibitions - no significant deviation from the exhibitions delivered as planned. Achieved Report Q4 2018-19, Page 6 Attachment 11 2. Programmes – arrange public programmes, events and activities to enhance visitor Achieved Report Q4 2018-19, Page 5-6 experience. Attachment 11 3. Permanent Collection - care, research and develop museum and historical collections Achieved Report Q4 2018-19, Page 5-6 and provide reports on cultural and/or significant objects. Attachment 11 4. Relationships – liaise with local organisations from the arts, history and culture sectors Achieved Report Q4 2018-19, Page 6 and maintain on-going relationships with other funders Attachment 11 5. Visitors - measure visitor numbers and establish a baseline. 80% visitor satisfaction Achieved Report Q4 2018-19, Page 7 achieved Attachment 11

6. Balanced budget and at least 20% from external sources Achieved Report Q4 2018-2019, Pages 1-5 Attachment 11 7. Volunteer Labour – achieve over 2,000 hours of volunteer labour Achieved Report Q4 2018-19, Page 7 Attachment 11

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SUPPORTING INFORMATION

Strategic, Policy and Legislative Implication All four service providers support Council’s community outcomes.

Significance, Engagement and Consultation The report has been assessed against Council’s Significance and Engagement Policy and is considered to be of no significance as there is no decision that impacts on any matters identified in the assessment of significance.

Financial Considerations Funding is provided for the four service providers in the Long-Term Plan.

Treaty Considerations/Implications for Maori There are no Treaty considerations/Implications for Maori arising out of the reports provided.

Communications/Engagement Plan There is no requirement for communication or engagement on the reports provided.

Environmental/Climate Change Impact and Considerations There are no environmental/climate change impact considerations arising out of the reports provided. 419 Attachment 1

Destination Wairarapa 30 June 2019 General Manager’s Report

More Visitors, Staying Longer & Spending More

Visitor Arrivals April and May were slower growth but still positive and comparable to the feeder set. Overall for the YE May 2019, the Wairarapa has once again continued with excellent growth compared to the set.

Commercial Accommodation Monitor Statistics New Zealand 12 Months Ending May 2019 v 2018

Greater Hawkes Wairarapa Wellington Bay Taupo National Guest Arrivals 2019 138,545 1,283,649 534,159 619,267 22,940,651 2018 135,240 1,249,161 531,322 636,190 22,718,635 Variance 2.4% 2.8% 0.5% -2.7% 1.0% Guest Nights 2019 267,684 2,760,831 1,232,363 1,139,230 40,378,119 2018 252,192 2,710,954 1,205,482 1,163,932 39,934,652 Variance 6.1% 1.8% 2.2% -2.1% 1.1% Occupancy 2019 28.9% 66.3% 48.0% 40.9% 45.0% 2018 27.1% 65.9% 46.0% 42.7% 45.2% Variance 1.8 0.4 2.0 -1.8 -0.2 Length of Stay 2019 1.93 2.15 2.31 1.84 1.99 2018 1.86 2.17 2.27 1.83 1.99

Note: Greater Wellington excludes Wellington City

Carterton and South Wairarapa statistics are grouped together so the following table for Masterton is not available for the other two TLAs.

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Commercial Accommodation Monitor Statistics New Zealand 12 Months Ending May 2019 v 2018 Wairarapa Masterton National Guest Arrivals 2019 138,545 80,054 22,940,651 2018 135,240 79,638 22,718,635 Variance 2.4% 0.5% 1.0% Guest Nights 2019 267,684 167,341 40,378,119 2018 252,192 158,123 39,934,652 Variance 6.1% 5.8% 1.1% Occupancy 2019 28.9% 33.8% 45.0% 2018 27.1% 32.2% 45.2% Variance 1.8 1.6 -0.2 Length of Stay 2019 1.93 1.95 1.99 2018 1.86 1.90 1.99

Visitor Spend This series of graphs is an aggregated view of spend. Spend is once again up with most markets showing growth. The YE May spend of $195.82 million is a new benchmark for annual visitor spend in the region.

The 2025 goal is for Wairarapa tourism to be generating $212million dollars a year to the local economy. YE May 2019 and the industry is generating $195.82 million which is average annual growth of $12.36 million from the $134 million benchmark in 2014. This is double what was forecast back in 2014. At this rate we’ll have achieved the goal by 2021.

With the 2025 Framework drawing to a conclusion as a longer term goal, the next Tourism Industry Aotearoa framework will be based on a series of sustainability goals.

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Major Market Spend - YE May 2019 (millions)

Bay of Plenty, $5.55, 3% USA, $7.02, 4% UK, $6.32, 4%

Waikato, $6.52, 4%

Canterbury, $6.10, 4%

Hawkes Bay, $9.23, 6% Wellington, $78.37, 47%

Auckland, $14.14, 8%

Australia, $11.86, 7%

Manawatu, $22.14, 13%

Retail Spend (millions) $35.00

$30.00

$25.00

$20.00

$15.00

$10.00

$5.00

$0.00 Mast'n Cart'n Sth Wai Mast'n Cart'n Sth Wai Mast'n Cart'n Sth Wai F&B Retail F&B Retail Other

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The depth of seasonal variance, winter to summer, has deepened over time but the winters are generating 50% more revenue than they were four years ago. While spend in the low season increases, the spend in the high season is still increasing by more.

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Winning Business Events Meetings trade show in Auckland was a great success again. Some good solid leads were generated and a couple of pitches have been made for conferences.

Once again we have Air New Zealand’s generous support for the business event famil programme and we’ll be working with partners on maximising this support.

i-SITE Visitor Centres Highlights:  Door counts at the i-SITE Visitor Centres for the YE June 2019 (26,581) are down 8,375 (24.0%) on the previous year. o Masterton volumes of 8,051 are down 623 (7.2%) o Martinborough volumes of 18,530 are down 7,752 (29.5%)

Masterton numbers as expected have increased with the Tranzit travel centre and Palmerston North bus service moving to the i-SITE and Aratoi. For the months November – February, Masterton i-SITE had seen improvements and was up 6.2% on the previous year. May also saw an improvement on last year meaning 5 of the past 8 months to June 2019 have shown an improvement.

Despite the drop in annual visitors through the door we have seen revenue holding against last year’s results and down just 3.8% YE June 2019.

i-SITE REVENUE $60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Total 2018 Total 2019

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Product Development  We’ve been working closely with the three dark sky products to get them engaged with the market with the right product and price o Agents to Stonehenge o Chinese delivery development for Stonhenge  Working with a new hosted B&B to understand what’s required in working with international trade  Facilitating the development of the new Paua & Seafood Festival for April 2020

Operator Development  Alipay session in Wellington we took along several operators

Economic Development Website Pages The aggregated Wairarapa economic development pages, Live & Work, Buy & Invest and Study continue to perform well in terms of traffic to them. The pages would benefit from promotion from Councils which would help drive traffic to them.

The big change with the pages is a shift to Buy and Invest content being more popular than the Live and Work pages.

Live & Work  A marked shift in who is visiting these pages with 25-34 year olds making up 52% of the traffic  Wellington page views grew to make up 39% followed by Auckland which declined (10%)  There was also considerably more traffic to the pages providing information on living in the Wairarapa. Sports Clubs, Commuting and health services which suggests a more engaged audience

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Buy & Invest  Similar to Live and Work the audience has shifted with 25-34 year olds making 46%  Not surprisingly Wellington page views made up 36% followed by Auckland (12%)

The big change has been the deeper people are going into the site with 10 different pages reflected in the report compared to 7 last quarter. More interesting is the shift for Buy and Invest pages being more active than the Live and Work pages which have to date demanded most of the traffic.

Study Page views have improved on the study pages and Primary remains the main category for viewers and is likely a reflection of the 25-34 year olds accessing the pages and the age of their children.

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Destination Wairarapa April – June 2019 Marketing Manager’s report

Domestic Marketing Activity included email, database /social media campaigns and web content supporting:

 Balloon Festival  Easter  Weta sculpture at Pukaha

We’re working closely with existing and new events for the coming season:

 WUU2K Ultra Running Race being held in 2020 based for 3 days at Tauherenikau Racecourse  Wairarapa Country Music Festival combined with Cruise Martinborough again at Tauherenikau Racecourse  121 Music Festival  Pukaha Garden Tour

We managed marketing activity more fully for:

 Booktown

A very successful event and weekend with increased visitor numbers lots of sold out shows. The festival has taken a big step up with quality presenters.

We exhibited at the Woman’s Lifestyle Expo in Wellington which provides names for our database and also the Wellington Wedding show.

We’ve continued to deliver activity for Country Village Heaven marketing group, including emails and website management.

Products We’ve been working closely with Star Field and also Becky Bateman on their night sky experiences. Following visits by Chinese trade we’re increasing our guidance with Stonehenge Aotearoa and Pukaha as they advance their readiness/development of a genuine Chinese experience.

Trade

 Attended a 3 day Tourism Export Council (TECNZ) trade event with face to face meeting with Inbounders and Tourism NZ. This is a key trade meeting or us each year.  Familed Christchurch based Chinese travel company who are beginning to sell Wellington regions to their Chinese based clients  Hosted twenty Chinese buyers (in NZ due to TRENZ) over two weekends. Incredible support for this from the Wairarapa tourism industry. We worked with a young Chinese woman who helped with translation and hosting. As a result of

8 427

these visits, Pan Pacific, one of the leading inbounders is now promoting a two night Wellington itinerary (one night here) in China. Assuming it sells, we could have Chinese groups here by this summer.  Hosted American Down Under Answers USA trade company on famil  Organized and fronted (all of Team DW helped) day visit by two coach loads of Singaporeans visitors to Cobblestones and Greytown on a group tour from Chans in Singapore. Good partnership with Cobblestones and Schoc.  Responded to a pitch for 800 incentive visitors from Singapore for 2020. Yet to hear outcome.

Media Sara Bunny left and we’re very pleased to have secured Walt Dickson (for many years editor of the Wairarapa News) in a part time role as our Media Communications & Content Generation.

Hosted visits included Canadian writer, American Tourism NZ PR partner in USA and an Australian lifestyle writer. Results included: https://www.stuff.co.nz/travel/destinations/nz/111893099/backyard-tourism-rain-or-shine- wairarapas-rugged-coast-offers-adventure

Interislander and Kiwirail Magazine https://www.calameo.com/read/00513475593ae62d56f77 pages 60-62

Amber Gibson. USA https://issuu.com/industrymagazine/docs/bklyn_may_june_industry_2019_w_link

Article starts on page 144 and we’re on 145.

Barb Hyde Marketing Manager

9 428 Attachment 2

Destination Wairarapa Board 30 June 2019 General Manager’s Financial Report

Unaudited Financials 30 June 2019

Revenue, YE 30 June 2019 revenue shows as being down $52,234 on budget. The drive for membership of $90k was ambitious. Other Revenue was down $31,000 on budget and again reflects an ambitious drive to secure more marketing work to deliver our own revenue streams.

Corporate Expenses have finished fairly close to budget with some pleasing results from management initiatives.

Depreciation has finished up $1,000 on budget and has always been the leveller at end of year.

The move of the Martinborough i-SITE presented a good opportunity to have a complete review of the assets and register which resulted in a reduction of $3,000 in assets with furniture sold or simply disposed of.

Contract staff has appeared as a $6,300 unbudgeted item. This is from having our Media Communications & Content Generation position contracted rather than employed given the opportunity in recent months.

Information Technology has been a cost we’ve strived to reduce and with a move to 365 in the coming weeks we will see this cost reduce after an initial setup fee.

Similarly Telecoms has been one we’ve been able to drive down with the move to wireless phone system. This will reduce with further significance with the move to 365 and no longer needing servers and connecting phone lines.

Office Supplies were $7,800 over budget due to a mistake in budgeting and not allowing for $5k in photocopy lease and $900 in an unbudgeted office alteration to make room for better team communications. i-SITE Expenses were $10,539 over spent against budget. The rent of the Masterton i- SITE Visitor Centre remains the biggest expense and one that still demands attention of management as we look for a new shared, experiential partner.

Cost of Sales is being reviewed as this blowout on budget and cost : revenue ratio is of concern.

Office supplies were $2k over budget with new signage requirements in the Martinborough i-SITE given the move. Similarly the move needed a replacement photocopier given space constraints and this took that item $1,200 over budget.

The change to wireless phones in the i-SITEs has also had a positive impact on Telecoms.

Marketing Expenses $18,110 under budget largely due to conference partners only wanting us to appear at one Business Event Trade Show this year, resulting in a $21,265 under spend against budget.

1 429

Otherwise the spend has been positive in regard to marketing campaigns.

The website continues to require investment and the $6,000 overspend was required with upgrading flow and layouts in several areas of the site.

Overall operating deficit is $5,821.

Destination Wairarapa funding is an ongoing requirement and the organisation continues to demonstrate excellent performance for this Council investment. The recently released RTO Benchmarking Survey showed Destination Wairarapa is listed 20th (of 28) in the level of revenue it receives and generates.

Destination Wairarapa was listed 24th in the level of Council funding it receives.

The same benchmarking survey ranks Destination Wairarapa’s website as the 12th most productive of all RTOs in the country in terms of unique users and page impressions. Clearly Destination Wairarapa is spending well in staff expertise, media communications & content generation and digital marketing.

2 430 Profit & Loss

Destination Wairarapa Inc. 1 Jun 2019 to 30 Jun 2019

Actual Budget Var NZD Var % YTD Actual YTD Budget Var NZD Var %

Income Retail Sales 410 200 210 104.8% 6,980 7,500 (520) -6.9% Accommodation Commission 1,101 200 901 450.6% 7,933 9,500 (1,567) -16.5% Bookit 175 500 (325) -65.1% 5,401 6,000 (599) -10.0% Donation - Trust House - - - 0.0% 160,148 160,148 - 0.0% Grants - CDC - 4,550 (4,550) -100.0% 54,594 54,600 (6) 0.0% Grants - MDC - - - 0.0% 281,799 281,796 3 0.0% Grants - SWDC - - - 0.0% 131,430 131,432 (2) 0.0% Interest Received 217 125 92 73.7% 2,490 1,500 990 66.0% Membership 88 2,600 (2,513) -96.6% 68,808 90,000 (21,192) -23.5% Other Revenue (17,148) 1,000 (18,148) -1814.8% 29,046 60,000 (30,954) -51.6% Ticket Commission 119 190 (71) -37.5% 1,694 2,280 (586) -25.7% Tourism Products 206 100 106 105.7% 1,668 3,000 (1,332) -44.4% Travel Sales 1,288 300 988 329.2% 9,583 6,000 3,583 59.7% Wairarapa Visitor Guide - - - 0.0% 29,950 30,000 (50) -0.2% Total Income (13,546) 9,765 (23,311) -238.7% 791,522 843,756 (52,234) -6.2%

Gross Profit (13,546) 9,765 (23,311) -239.0% 791,522 843,756 (52,234) -6.0%

Less Operating Expenses Cleaning 120 - 120 0.0% 120 - 120 0.0% General Expenses (7) - (7) 0.0% 63 - 63 0.0% Attachment 3

Profit & Loss December 2018 | Destination Wairarapa Inc. | 30 July 2019 Page 1 of 5 431 Profit & Loss

Actual Budget Var NZD Var % YTD Actual YTD Budget Var NZD Var % Loss on Sale of Fixed Assets 3,293 - 3,293 0.0% 3,293 - 3,293 0.0%

Corporate Support Expenses ACC Levies - 600 (600) -100.0% 1,154 2,000 (846) -42.3% Accounting Fees 1,980 1,200 780 65.0% 12,148 14,400 (2,252) -15.6% Audit Fees 8,000 - 8,000 0.0% 8,000 8,000 - 0.0% Bad Debts - - - 0.0% - 500 (500) -100.0% Bank Fees - ANZ 37 62 (25) -40.6% 709 750 (41) -5.5% Board Fees 10,730 5,902 4,828 81.8% 23,682 23,608 74 0.3% Board Members Expenses - - - 0.0% 9 200 (191) -95.7% Contract staff 6,300 - 6,300 0.0% 6,300 - 6,300 0.0% Depreciation 1,071 958 113 11.7% 12,529 11,496 1,033 9.0% Electricity Corporate 132 90 42 46.3% 1,471 1,100 371 33.7% Equipment Rental 91 91 - -0.2% 1,089 1,092 (3) -0.2% Fringe Benefit Tax 1,541 - 1,541 0.0% 6,120 5,800 320 5.5% Information Technology 393 592 (199) -33.6% 9,148 7,104 2,044 28.8% Insurance 355 454 (99) -21.8% 4,926 5,448 (522) -9.6% Interest Expense 2,194 165 2,029 1229.4% 4,012 1,980 2,032 102.6% Kitchen Supplies Corporate 88 40 48 118.9% 634 500 134 26.7% KiwiSaver Employer Contributions 1,833 1,290 543 42.1% 13,522 15,500 (1,978) -12.8% Membership Expenses - - - 0.0% 1,165 800 365 45.6% Merchant & BNZ Bank Fees 77 250 (173) -69.2% 2,120 3,000 (880) -29.3% Office Supplies & Photocopying Corporate 525 55 470 855.0% 8,479 660 7,819 1184.7% Personnel incl. Training Corporate 30 250 (220) -87.8% 5,242 3,000 2,242 74.7% Rent & Rates Corporate 1,311 1,250 61 4.9% 16,239 15,000 1,239 8.3%

Profit & Loss December 2018 | Destination Wairarapa Inc. | 30 July 2019 Page 2 of 5 432 Profit & Loss

Actual Budget Var NZD Var % YTD Actual YTD Budget Var NZD Var % Salaries 37,927 23,404 14,523 62.1% 269,237 305,000 (35,763) -11.7% Subscriptions & Membership (434) 50 (484) -967.5% 10,811 10,420 391 3.7% Telecom incl Mobiles Corporate 987 840 147 17.5% 11,449 10,100 1,349 13.4% Vehicle Leases (5,026) 468 (5,494) -1174.0% 104 5,600 (5,496) -98.1% Vehicle Operating Costs 821 1,250 (429) -34.3% 13,596 15,000 (1,404) -9.4% Total Corporate Support Expenses 70,962 39,261 31,701 80.7% 443,893 468,058 (24,165) -5.2%

Total I-Site Expenses Electricity i-SITEs 275 375 (100) -26.8% 3,470 4,500 (1,030) -22.9% Kitchen Supplies i-SITEs 13 40 (27) -66.3% 827 490 337 68.7% Less Cost of Sales (61) 100 (161) -160.8% 4,645 1,600 3,045 190.3% Office Supplies i-SITEs - 50 (50) -100.0% 2,735 590 2,145 363.5% Personnel incl Training & Conferences i-SITEs - 160 (160) -100.0% 3,250 1,900 1,350 71.1% Photocopier i-SITEs 293 34 259 762.9% 1,612 400 1,212 303.0% Rent & Rates i-SITEs 1,667 1,750 (83) -4.8% 25,428 21,000 4,428 21.1% Repairs & Maintenance i-SITEs - - - 0.0% 86 100 (14) -13.9% Telecom i-SITEs 76 375 (299) -79.7% 3,580 4,500 (920) -20.4% Travel & Transport - - - 0.0% 24 - 24 0.0% Wages 17,300 12,800 4,500 35.2% 165,961 166,000 (39) 0.0% Total Total I-Site Expenses 19,563 15,684 3,879 24.7% 211,619 201,080 10,539 5.2%

Total Marketing Expenses Advertising - - - 0.0% 755 - 755 0.0% Business Events Marketing 615 1,000 (385) -38.5% 11,735 33,000 (21,265) -64.4% CNZWT Marketing - - - 0.0% 3,250 2,500 750 30.0% Distribution 807 925 (118) -12.7% 11,369 11,100 269 2.4%

Profit & Loss December 2018 | Destination Wairarapa Inc. | 30 July 2019 Page 3 of 5 433 Profit & Loss

Actual Budget Var NZD Var % YTD Actual YTD Budget Var NZD Var % Domestic Marketing 84 585 (501) -85.7% 3,104 7,000 (3,896) -55.7% Domestic Marketing Email Distribution 160 500 (340) -68.0% 5,681 6,000 (319) -5.3% Domestic Marketing Facebook 305 240 65 27.2% 3,800 5,000 (1,200) -24.0% Domestic Marketing Spring Campaign - - - 0.0% 225 2,000 (1,775) -88.8% Domestic Marketing Wings Campaign - - - 0.0% 3,597 2,000 1,597 79.8% Domestic Marketing Winter Campaign 2,854 - 2,854 0.0% 2,854 2,000 854 42.7% Domstic Marketing Consumer Expos 37 - 37 0.0% 1,785 1,000 785 78.5% Imagery - - - 0.0% 2,745 4,000 (1,255) -31.4% International Marketing Alliance - - - 0.0% 25,007 26,700 (1,693) -6.3% Media Hosting 1,546 500 1,046 209.1% 6,244 6,000 244 4.1% Relationship Marketing 71 65 6 10.0% 1,339 800 539 67.4% Rimutaka Cycle Trail - - - 0.0% 6,030 5,000 1,030 20.6% Trade Events & Training - 585 (585) -100.0% 6,818 7,000 (182) -2.6% Trade Famils 73 250 (177) -70.7% 2,976 3,000 (24) -0.8% Visitor Guide - - - 0.0% 18,034 17,500 534 3.1% Website 1,669 587 1,082 184.3% 13,143 7,000 6,143 87.8% Total Total Marketing Expenses 8,221 5,237 2,984 57.0% 130,490 148,600 (18,110) -12.2%

Total Projects Expenses

RCT Project Remutaka Cycle Trail Project - Expenses - - - 0.0% 4,500 - 4,500 0.0% Total RCT Project - - - 0.0% 4,500 - 4,500 0.0% Total Total Projects Expenses - - - 0.0% 4,500 - 4,500 0.0%

Total Operating Expenses 102,153 60,182 41,971 69.7% 793,978 817,738 (23,760) -2.9%

Profit & Loss December 2018 | Destination Wairarapa Inc. | 30 July 2019 Page 4 of 5 434 Profit & Loss

Actual Budget Var NZD Var % YTD Actual YTD Budget Var NZD Var % Operating Profit (115,700) (50,417) (65,283) -129.0% (2,456) 26,018 (28,474) -109.0%

Non-operating Expenses Entertainment - Non deductible 38 333 (295) -88.6% 3,365 3,996 (631) -15.8% Total Non-operating Expenses 38 333 (295) -88.6% 3,365 3,996 (631) -15.8%

Net Profit (115,738) (50,750) (64,988) -128.0% (5,821) 22,022 (27,843) -126.0%

Profit & Loss December 2018 | Destination Wairarapa Inc. | 30 July 2019 Page 5 of 5 435 Attachment 4 Balance Sheet

Destination Wairarapa Inc. As at 30 June 2019

30 Jun 2019 30 Jun 2018 Assets

Bank ANZ - Operational (00) 93,495 131,985 ANZ - Remutaka Cycle Trail 54,605 59,606 ANZ - Reserves (012) 148,067 110,164 BNZ Account 8,536 6,614 Total Bank 304,702 308,369

Current Assets Accounts Receivable 7,622 10,217 Accounts Receivable. (5,232) - Inventory - I Sites 1,778 2,161 Petty Cash - Martinborough 100 592 Petty Cash - Masterton 100 128 Prepayments 667 1,875 Total Current Assets 5,035 14,972

Fixed Assets Computer Equipment 550 550 Less Accumulated Depreciation on Computer Equipment (298) (46) Furniture & Equipment 70,408 89,965 Less Accumulated Depreciation on Furniture & Equipment (59,936) (76,949) Motor Vehicle 42,165 42,165 Less Accumulated Depreciation on Motor Vehicles (19,291) (9,487) Total Fixed Assets 33,599 46,197 Total Assets 343,337 369,538

Liabilities

Current Liabilities Accounts Payable 17,990 21,356 Accounts Payable. - 1,728 ANZ Credit Card - B Hyde 565 1,252 ANZ Credit Card - D Hancock 968 2,468 Audit Provision 9,200 9,200 Current Portion - Toyota Finance Loan 6 3,886 3,147 Current Portion - UDC Finance 6,374 5,830 GST 5,751 5,293 Income in Advance - Remutaka Cycle Trail 45,000 45,000

Held on Behalf Held in Trust 4,331 3,311 Total Held on Behalf 4,331 3,311

Payroll Accrued Payroll 7,234 7,325

Balance Sheet | Destination Wairarapa Inc. | 31 July 2019 Page 1 of 2 436 Balance Sheet

30 Jun 2019 30 Jun 2018 Bonus Accrual - 2,125 Holiday Pay Liability 26,555 40,283 PAYE Payable 10,342 - Total Payroll 44,132 49,733 Total Current Liabilities 138,198 148,318

Non-Current Liabilities Toyota Finance - Interest Not Yet Due (1,940) (4,003) Toyota Finance Loan 6 14,569 20,517 UDC Finance 12,127 18,501 Total Non-Current Liabilities 24,756 35,016 Total Liabilities 162,954 183,334

Net Assets 180,383 186,204

Equity Asset Replacement Reserve 40,000 40,000 Contingency Reserve 50,000 50,000 Current Year Earnings (5,821) 25,353 Remutaka Cycle Trail - Reserve 20,000 20,000 Retained Earnings 76,204 50,851 Total Equity 180,383 186,204

Balance Sheet | Destination Wairarapa Inc. | 31 July 2019 Page 2 of 2 437 Attachment 5 Connecting Communities Wairarapa 41 PERRY ST, MASTERTON | 06 3788900

AUDIT & RISK COMMITTEE REPORT

TO Masterton District Council Audit & Risk Committee FROM Glenda Seville, General Manager DATE 31 July 2019 SUBJECT Audit & Risk Committee Report, January –June 2019 SUMMARY • Purpose • Key Result Areas • Youth Development • Community Development • Neighbourhood Support

PURPOSE Masterton District Council have an Agreement for the Provision of Services to be carried out by Connecting Communities Wairarapa. This purpose of this report is to outline the performance of Connecting Communities Wairarapa against the Key Result Areas contained in this Agreement.

KEY RESULT AREAS Youth Development Wairarapa Rangatahi Development Strategy Participate and complete actions to support the strategy • The WRDS Action plan has been completed. The team have identified key actions that will be embedded in our work plans. The group has agreed to meet 6 monthly to review.

Youth Council Facilitate and support maintenance of the Youth Council and enable their engagement with MDC. • The Youth Council meet fortnightly during term times, supported and facilitated by the Youth Development Coordinator. • Wairarapa Youth Council continue to be a cohort of young people available for consultation on a range of MDC initiatives. • 7 Youth Council members attended Festival For The Future conference. • Youth Council members successfully planned and held a Youth Week event.

[email protected] 1 438

Youth Events Deliver youth driven events as identified through the Youth Council and/or Wairarapa Rangatahi Strategy • Youth Week 2019 – Wairarapa Youth Council were successful in their application to the Masterton District Council’s Community Fund. Clash of the Chords was held in May 2019, with the hopes to be an annual Youth Week event. • Beanbags project – this project has gained funding through DIA and MYD. We continue to seek funding from other organisations. We are now pulling together a strategic youth team from Makoura College (who meet weekly) to sit alongside the Youth Council and consult with the Skate Park Revamp Team.

Youth Groups Enable the establishment and development of Youth Groups in Masterton District from a community development perspective, eg Te Awhina Youth Group (TAYG) Te Awhina Youth Group • Te Awhina Youth Group continue to run weekly sessions during term time. The focus of the sessions is on embedding basic life skills, team building, engaging with youth and their whanau, utilising community facilities and having fun in a safe and supportive environment. • In April, TAYG group travelled by train, ferry and van to Blenheim for a 4 day camp. The group completing a number of wellbeing focused workshops, activities and team building activities over the 4 days. For many of the young people attending it was their first time experiencing the South Island. • Excursions – TAYG facilitators have continued to take participants out in the community and utilise community facilities such as Colombo Netball Courts, local river’s, Henley Lake and are often in the summer months the group can be found playing sport down at McJorrow Park. It is a priority of the group to expose our rangatahi to all the great facilities we have here in Masterton and the wider Wairarapa. • Events – TAYG supported Wai Fest providing the community with a hangi. TAYG have continued to engage in the Eastside Wairua initiative and will continue to support youth-led projects and events as they arise.

[email protected] Page 2 2 439

Eastside Wairua • Eastside Wairua have two kaitaki groups that meet on a fortnightly basis to discuss what events they want to run, what community initiatives are going on in the area and how they can support them. They also work • Pouhak hakina sports box was developed by the group, made by Henley Men’s shed and will be installed at McJarrow Park in August. This project was developed by the group identifying the importance of physical activity and accessibility to sports equipment for the tamariki in their community. • 4 Eastside Wairua kaitaki attended Festival For The Future conference with the Wairarapa Youth Council. • Events – In April school holidays the kaitaki group organised a colour run at McJarrow park with over 100 people participating. The group aspire to run something similar on an annual basis. • The Block Markets were held in March, the idea behind this event was to consult the wider community on the concept designs that were developed for young people on the ‘the Cameron plot’ Eastside Wairua invited Eastside Community Group to be a part of this event. Throughout the day they had up to 75 community members attending the markets and providing feedback on the concepts for redevelopment.

Community Development Community Events As determined by MDC to facilitate up to two large community events attracting up to 500 people • The Christmas on Queen Street Festival was held, in conjunction with MDC, on 1 December 2018. CCW managed and coordinated the entertainment component of this event, which ran from 10.30am – 1.00pm. Entertainment was provided by various local performers, school and community groups was well-attended by the public.

School Holiday Programmes Hold three programmes, demonstrating delivery of activities that enable more vulnerable students to engage in pro-social, self-esteem building activities. • Three school holiday programmes have been held in the 2018/19 financial year. All the programmes were delivered over four days, from 9am – 3pm. • 127 registrations were received for Oct with approx 80-90 children attending each day, 135 registrations in January with 80-95 children attending each day. 119 registrations In April with places offered to 90 - 100 children attending each day. [email protected] Page 3 3 440

• Places on the programme were limited to 100 children, to ensure health and safety and the appropriate adult to child ratios. Priority is given to children who live in the Masterton District along with registrations received through agency referrals to ensure places are provided for more vulnerable students and families in need of support. • The programme is provided for children aged between 5-13 years, with a variety of fun, active and educational activities. CCW has partnered with a number of organisations and community groups in providing these activities, including Henley Men’s Shed, NZ Police, Wairarapa Road Safety Council, Red Cross, Fire and Emergency Services, Whakaoriori Air Scouts, MDC, Belgravia Leisure and Wairarapa Women’s Centre. • Core values are incorporated daily and form an important part of the programme which includes a reward system to encourage positive participation, respect and care for others. • We continue to receive a high level of positive feedback from families, who greatly appreciate that their children are able to attend this programme and have the opportunity to interact and engage with other children and adults in a positive, safe and caring environment.

Neighbourhood Plans Provide facilitation and support a minimum of two communities to develop and progress action plans for community development initiatives. Work with the communities and MDC to produce Neighbourhood Plan reports.

• The Solway Neighbourhood Planning Group (SNPG) continues to meet on a monthly basis, supported by CCW and MDC. They have developed and expanded identified goals and priorities, and will continue to update and develop an action plan as this year progresses. The group held a Solway community event which ran in conjunction with Neighbours Day in March. From this they received feedback, from the wider Solway community. This was a successful community event that the group intend to host again in 2020. The group are now self-managing, hosting and completing their own administration, CCW is now taking a step back, offering support when required. • The Upper Plain Neighbourhood Planning Group (UPPG) have been up and running since March. CCW have supported the group to establish, identify goals and priorities for the area. The UPPG are meeting monthly and have identified their first community initiative – beautifying an area in Skeets Rd. Discussions have taken place around the group formalising to an incorporated society/Charitable Trust. [email protected] Page 4 4 441

East Side Projects Work with MDC to deliver up to three projects aimed at supporting neighbourhood regeneration. • CCW continues to work with MDC and the Eastside community in the delivery of a range of community projects and consultation. • CCW has attended, provided input and carried out allocated actions at a number of Eastside related meetings, including the Eastside Community Group, Eastside Liaison Group and Eastside Project Group meetings. Meetings have included discussion and planning on Eastside projects such as street clean ups, fence and mural painting, the traffic calming that is now almost completed and the vacant lot consultation which is in progress. • CCW Youth Development Coordinator is the link between the ECG and Eastside Wairua ensuring they work in partnership with their initiatives such as the Block Markets.

Neighbourhood Support

Group Numbers Increase groups by 5% in F2019-2020. • 185 groups in total. • Collaboration with other agencies to create new groups. • Neighbourhood Support National have rebranded. New branding is starting to be rolled out on all local NS documents, flyers and messaging.

Group Maintenance Implement group support strategy that ensures continuing group engagement. • All old NS signage is being removed and new signs are going up. This work has started in Lansdowne and will roll out to the rest of the community. • Our NS database is had an overall and a result of this is that a number of group contacts have either moved on or are inactive. From here we are connecting with the groups, identifying new group leads and trying to get the groups back up and running. [email protected] Page 5 5 442

• Radio interviews and newspaper articles promoting the NS messaging. • WeConnect (CALD) project is creating an avenue for new NS groups and connectivity with existing groups to make sure these residents are being welcomed and offered to join the group as well as creating new groups. • Cathy our Neighborhood Support Coordinator is also the Wellington District Rep for Neighborhood Support on a national level. • All 3 Wairarapa NS Coordinators attended the national NS Conference. Bringing back a lot of knowledge on what is happening with Neighborhood Support across the country.

Special Programmes Support groups to target initiatives aimed at increasing community resilience, eg civil defence awareness, Junior Neighbourhood Support. • Emergency Services: - Have organized a series of FM Arrow Radio interviews, with each agency to increase awareness of our working relationship, our key messages to improving community welfare, resilience and crime prevention. CCW has been interviewed four times over the last 6 months. • WeConnect (CALD) project: Further funding was received from Neighborhood Support National as well as MDC Wellbeing’s grants this funding will support WeConnect to continue and help make this a sustainable programme. We have 14 non- English speaking Immigrants now on the programme and matched with their NS “buddies”. With 32 volunteers registered as buddies. • Collobrations with MCLaSS (Multicultural Learning and Support Services) & Wairarapa Road Safety Council (Community Driving Mentor Programme) to align with the needs that are being highlighted as the relationships develop with the volunteer “buddies”. • A presentation event was held in March to celebrate the WeConnect participants and their buddies. Emergency Grab and Go bags were presented to participants. Over 50 people attended this event. • South Canterbury Neighborhood Support has contacted CCW as they are keen to launch the WEconnect model in their area.

[email protected] Page 6 6 443 Attachment 6 Profit & Loss

Connecting Communities Wairarapa Inc. For the 12 months ended 30 June 2019

Actual Budget Var NZD Var %

Income Carterton District Council 4,000 3,000 1,000 33.3% COGS 5,000 5,000 - 0.0% Compass Health 14,221 14,280 (59) -0.4% Eastern & Central Community Trust - 4,000 (4,000) -100.0% Emerge Aotearoa 31,629 31,632 (3) 0.0% Ministry of Social Development 82,748 81,679 1,069 1.3% Ministry of Social Development 60,357 78,957 (18,600) -23.6% Ministry of Youth Development 35,518 35,500 18 0.1% Nikau Trust 2,609 5,000 (2,391) -47.8% NSNZ - Contestable Fund 25,000 10,000 15,000 150.0% NZ Lotteries 53,750 30,000 23,750 79.2% Public Donations 1,975 - 1,975 0.0% Public Trust - TG MCarthy 3,000 6,000 (3,000) -50.0% South Wairarapa District Council 24,000 14,000 10,000 71.4% SuperGrans 80,442 80,000 442 0.6% Trust House 5,090 5,090 - 0.0% Wairarapa Bush Rugby 500 500 - 0.0%

Masterton District Council Grant Income Masterton District Council 187,124 185,800 1,324 0.7% Masterton District Council - CoLab Recoveries 1,548 - 1,548 0.0% Total Masterton District Council Grant 188,672 185,800 2,872 1.5% Income

Unexpensed funds from previous year Department of Internal Affairs - 41,200 (41,200) -100.0% Masterton East Youth Development Initiative - 1,200 (1,200) -100.0% Revenue Methodist Church Funding - Te Awhina Youth - 4,783 (4,783) -100.0% Group Total Unexpensed funds from previous year - 47,183 (47,183) -100.0% Total Income 618,510 637,621 (19,111) -3.0%

Gross Profit 618,510 637,621 (19,111) -3.0%

Plus Other Income Interest Income 4,721 2,496 2,225 89.1% Lead Agency Income 5,304 10,463 (5,159) -49.3% Management / Admin Fees 23,433 - 23,433 0.0% Miscellaneous Income 50 - 50 0.0% Total Other Income 33,507 12,959 20,548 158.6%

Less Operating Expenses Branding & Design 525 1,000 (475) -47.5% Computer Expenses 926 1,836 (910) -49.6% Consultants 425 2,500 (2,075) -83.0%

Profit & Loss | Connecting Communities Wairarapa Inc. | 31 July 2019 Page 1 of 2 444 Profit & Loss

Actual Budget Var NZD Var % Events 15,706 15,900 (194) -1.2% Food 5,961 4,796 1,165 24.3% HR Expenses 1,600 - 1,600 0.0% Legal fees 1,381 - 1,381 0.0% Other - Expense - 5,232 (5,232) -100.0% Professional Development 912 1,800 (888) -49.4% Promotional Clothing 723 2,700 (1,977) -73.2% Researcher 20,000 - 20,000 0.0% Staff Resources 208 - 208 0.0% Supported Youth Programmes - 396 (396) -100.0% Telecommunications and Internet 6,179 4,800 1,379 28.7% Workshop Resources 1,989 3,966 (1,977) -49.9%

Employee & Volunteer Related Costs ACC Levy 2,221 2,221 - 0.0% KiwiSaver 12,541 13,452 (911) -6.8% Staff Supplies 365 1,200 (835) -69.6% Staff Welfare 687 850 (163) -19.2% Supervision 160 1,200 (1,040) -86.7% Volunteer Expenses 143 600 (457) -76.2% Wages 453,468 448,447 5,021 1.1% Total Employee & Volunteer Related Costs 469,583 467,970 1,613 0.3%

Expenses related to project activities Activities & Excursions 4,998 15,500 (10,502) -67.8% Christmas On Queen 1,238 2,500 (1,262) -50.5% CRM Community based programmes - 4,000 (4,000) -100.0% Discretionary Fund 2,537 3,000 (463) -15.4% Masterton East CD - 600 (600) -100.0% Project Resources & Equipment 4,135 3,420 715 20.9% School Holiday Programme (SHP) (468) 2,000 (2,468) -123.4% Youth Kinex Expenses 14,221 14,280 (59) -0.4% Youth Reserve Website - 35 (35) -100.0% Total Expenses related to project activities 26,662 45,335 (18,673) -41.2%

Other Expenses Administration / Office Expenses 85,446 82,493 2,953 3.6% Audit Fee - 4,000 (4,000) -100.0% Total Other Expenses 85,446 86,493 (1,047) -1.2% Total Operating Expenses 638,225 644,724 (6,499) -1.0%

Net Profit 13,792 5,856 7,936 136.0%

Profit & Loss | Connecting Communities Wairarapa Inc. | 31 July 2019 Page 2 of 2 445 Attachment 7 Balance Sheet

Connecting Communities Wairarapa Inc. As at 30 June 2019

30 Jun 2019 30 Jun 2018 Assets

Current Assets Accounts Receivable 19,683 9,605 CCW Cheque Account 35,270 77,115 CCW Saver Account 40,053 25,004 CCW Term Deposit 1 82,756 79,830 Interest Receivable 743 746 Petty Cash On Hand 180 180 Total Current Assets 178,685 192,480

Fixed Assets as per Fixed Asset & Depreciation Schedule 14,146 14,146 Total Fixed Assets 14,146 14,146 Total Assets 192,831 206,626

Liabilities

Current Liabilities Accounts Payable 22,214 17,355 Funding in Advance (10,000) - GST 3,727 3,112 Holiday Pay Accruals - 22,649 Suspense (411) - Wages Payable - Payroll 22,372 22,372 Total Current Liabilities 37,902 65,488 Total Liabilities 37,902 65,488

Net Assets 154,929 141,138

Equity Current Year Earnings 13,792 (23,724) Retained Earnings 141,138 164,862 Total Equity 154,929 141,138

Balance Sheet | Connecting Communities Wairarapa Inc. | 31 July 2019 Page 1 of 1 Attachment 8 446 1 447

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12-month report to SPORT WELLINGTON WAIRARAPA Masterton District Council

1 July 2018 – 30 June 2019

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1.3 PARTICIPATION OPPORTUNITIES – Customer insights 1.3.

MEMBERSHIP Tracking of membership allows for a better understanding of regional data against national trends. It also captures the use of casual offerings to meet the needs of recreational and social users of sport and new opportunities targeting specific population groups (e.g. younger age groups and in school opportunities vs after school and more traditional weekend sport).

The infographic to the right shows an increase in participation from the previous twelve months (up from 7552 participants in 2017).

This goes against the national trend in terms of participation rates in organised sport, which has been flatlining or decreasing.

The main growth area since 2017 is in casual participation. With the rate of participation by under 18’s and adult members in the selected The infographic shows the breakdown of sports is stable. 2018 membership groups collected from This data is a useful prompt when we are Wairarapa Tennis, Wairarapa Cricket, working with the surveyed sports about the Hockey Wairarapa, Netball Wairarapa delivery model of their sport. Such as & Wairarapa Bush Rugby Union. encouraging provision of more casual options, as well as the more traditional membership model. [Note that 2019 membership data will be collected in November 2019].

Local membership trends 2017 2018

Wairarapa Tennis membership trends show a decline in junior membership and a slight increase in senior membership numbers 372 for the 2018 season. (However casual memberships continue to be 351 high and are not captured in their overall membership numbers)

Wairarapa Cricket membership trends show a significant increase in junior membership numbers, while senior membership numbers 1104 1168 have stayed the same.

Hockey Wairarapa membership trends show a significant increase in junior membership numbers, while senior membership numbers 1458 1564 have slightly decreased over the 2018 season

Netball Wairarapa membership trends show an increase in both 1374 junior and senior membership numbers for the 2018 season. 1419

Wairarapa Bush Rugby membership trends show a small decline 2595 in junior membership numbers, while senior membership numbers 2327 have increase slightly

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Sports have also placed greater emphasis on capturing 649 social/casual/pay-as-you-play membership numbers. This year we 1596 have seen hockey and netball join cricket and tennis in doing this.

Wairarapa secondary schools continue to have the highest participation rates in the country. NZSSSC national data shows that (2018) 71% of secondary school students in the Wairarapa play sport for their school compared to a national average of 52%

1.5 SPORT AND ACTIVE RECREATION ORGANISATIONS SURVEY (SARO)

The latest SARO Survey was completed by Sport Wellington in July 2019. The results are currently being compiled and these will be available for the next six-monthly report.

2. PARTICIPATION OPPORTUNITIES: Integration of Physical Literacy Approach

2.2 Co-ordinated approach to physical literacy - Kia Hakinakina

A physical literacy approach utilises a holistic method of engagement building on the competence, confidence and motivation of the participant, through addressing the four key strands – cognitive, physical, spiritual, social and emotional.”

Fundamental movement skills are the building blocks of competence development and are the focus of the Kia Hakinakina project, which is also supported by Sport Wellington KiwiSport funding. Mastery of these skills used in a variety of contexts will increase confidence and motivation for lifelong participation. The Kia Hakinakina workforce have recently undertaken in-depth physical literacy training to aid them in their work with schools.

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The Kia Hakinakina Framework of Fundamental Movement Skills Delivery has now been operating for close to two school terms within the Masterton area. The project is designed to align with the Forum Vision of ‘All people in the Wairarapa Region enjoy (and have access to), quality sporting experiences’ and keeps this principle central to its design and potential outcomes.

Kia Hakinakina, through its design, seeks to establish a truly collaborative culture with the schools engaged, to enable the desired pedagogical (or physical literacy) approach to tie into the curriculum effectively. For 2019 six schools have been involved with the project: Lakeview School, Masterton Intermediate School, Opaki School, Solway College (Intermediate Age), Wainuioru School and Tinui School.

The delivery itself has a participant centred focus, led by a strong element of Professional Development, both for the delivery squad and for the teachers involved. A further integral element of the project is the level of evaluation, scaffolding and wide-ranging inclusion of feedback – from deliverers, teachers and the voice of the participants themselves. Professional Development and Education of Delivery Staff is ongoing and open to deliverers from the sport specific environment.

Engagement has varied depending on the school setting, with some still in the infancy of receiving delivery and engaging with the new concepts and professional development involved. Three schools have shown excellent engagement and are advancing the support and direction of delivery that Kia Hakinakina can offer: Masterton Intermediate School, Opaki School and Solway College.

Voice of the Participant

Question. “Can you use your learning?”

Answers. “Yes, in all sports” “Balance, in general in all competitions” “Rugby for throwing, Football for accuracy” “Hockey, Netball, Basketball, Volleyball”

Question. “Were you challenged?”

Answers. “Yes, because I don’t have very good balance.” “Yes, I need to use my legs more”

Teacher Observations

“Great participation & engagement, all children, all abilities” “Key messages, coaches involved, feedback main points – balance / teamwork”

3. PARTICIPATION OPPORTUNITIES: Low Participant Group initiatives.

3.1 Active Families

HEALTHY LIFESTYLES – HEALTHY PEOPLE CONNECTING FOR HEALTHY COMMUNITIES

Over the past 12 months in the Wairarapa (July 2018 - June 2019) 192 adults have been supported through Adult Green Prescription (GRx), 24 children have engaged in Active Families, six children have engaged in Pre-school Active Families and 17 mums and babies have benefited through involvement in Maternal GRx. 398 places in Strength and Balance classes are available to older adults across Wairarapa.

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The suite of GRx programmes deliver individual/whānau consultations and use motivational interviewing techniques to provide personalised goal setting support, while practical programmes and sessions aim to increase community participation, build confidence, teach practical skills and provide an environment for positive peer connection.

Active Families programme sessions in Masterton have seen a range of activities over the past three months, including: swimming, nutrition sessions, scavenger hunts and goal setting activities. Many of our tamariki have not had enjoyable or strength-based participation experiences in physical education through their schooling and lack confidence to give things a go, but in this safe space they thrive on the challenge of learning new skills.

For adult GRx, eight-week Healthy Lifestyle Programmes have been delivered in Wairarapa in collaboration with multiple physical activity class providers offering tasters of various local opportunities.

Looking forward, a renewed strategy for promotion and communication to strengthen referral pathways, encourage appropriate referrals (including match to criteria and readiness to change), share service aims and the benefits of health and wellbeing outcomes from personalised behaviour modification support is necessary as we enter the 2019-2020 year. Promotion will be targeted to reach referrals for Māori and Pasifika, low income families with young children, and referrals that support the health and wellbeing of children/mothers in the first 1,000 days.

3.2 KiwiSport Delivery

KiwiSport provides funding for Year 1-8 students and Year 9-13 students and is administered by Sport Wellington in the Greater Wellington Region. It aims to:

• increase the number of school-aged children participating in organised sport • increase the availability and accessibility of sport opportunities for all school-aged children. • support children to develop skills that enable them to participate confidently in sport.

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Coaching – Quality and Quantity: Sport Wellington’s ‘Getting Started in Coaching’ programme has explicit links to coaching, providing a comprehensive introduction to the coaching space.

Quality intra and inter-school sport: The Kia Hakinakina project mentioned above has provided quality in-school delivery of an FMS component to the likes of Masterton Intermediate, Opaki School and Solway College. Wellington Softball have also provided some great in-school sport delivery as part of their KiwiSport programme.

Skill Development and Confidence Building: Kia Hakinakina and the Wellington Softball programmes have provided a chance for skill development for participants. YMCA have provided a programme that is progressing extremely well in terms of target numbers, primarily operating in an after-school setting and frequently collaborating with other Regional Sports Organisations.

Family and Community Engagement: This happens regularly across a number of the Wairarapa projects; a good example being the impact Shift’s programme has had on the wellbeing of young women and their families, as it focuses on the ‘larger picture’ rather than specific sport delivery – this allows for lessons learned to be transferred into a Family and Community setting.

Females (10-18 years): Most notably Wairarapa Cricket Association’s ‘FDO’ project via increasing opportunities for female participants targeting low participant communities, and Shift’s ‘Just Shift It’ project through promotion of health and well-being to school aged females during term-time and holidays. Similarly, Wairarapa Cricket’s recently successful round 22 application will operate largely within this space through providing forums and event days.

See table 6.1 - ‘KiwiSport Investment in the Wairarapa’ for a more extensive breakdown of the programmes that have been funded recently.

3.3 Community Group Strength and Balance

The Wairarapa Come and Try event, which allowed older people to try 10-minute testers of approved classes, was held in early May 2019 with great success. Over 50 people, the majority of whom did not currently participate in group exercise, came along to the event. Advertising that went alongside the event promoted the importance of strength and balance exercise as we age and shared details of current approved classes. Hosting this event in the Wairarapa has correlated to a significant increase in utilisation rates in the area.

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4. SPACES & PLACES – Regional Facilities Plan

Regional Approach for Community Spaces and Places Planning

A final draft of the Regional Spaces and Places (Facilities) Plan has been completed and will now be subject to sign off by Council CEOs and Mayors across the Wellington region.

Purpose The purpose of the Regional Spaces and Places Plan is to provide a strategic framework for future regional sports facility planning, and optimisation of the current network of facilities. The plan emphasises a one-region approach to planning for regional facilities and higher while also providing context for local planning and decision-making.

Background Sport NZ has advocated for regions to develop spaces and places plans to ensure that New Zealanders have access to better places to participate in sport and active recreation as part of their national facilities planning approach.

Their investment in this project provided us with the opportunity to engage a contractor to work with the key stakeholders (mainly councils) to gather facility data, survey regional sport organisations and schools and analyse national, regional and local facility strategies. This work is collated in a Reference report from which a summary documents and subsequent strategy have been developed. The data collated will contribute to a Sport NZ project to create a national Facility Planning Tool with similar functionality to their Insights Tool.

Key findings The regional network of facilities comprises around 1300 different facility entries. Of these around 50 are of regional status or higher (and therefore subject to cross-council consideration against the objectives of the plan).

Supply currently meets demand for the most part with some facility types at or over capacity at peak times (especially indoor venues). The network is aging and is subject to resilience challenges given where we sit on the tectonic plates. At the same time there is insufficient resource available currently to support upgrades across the network.

Growth in population, sport preferences and geographical spread will challenge current supply while participation declines in some sports, most notably tennis, golf, and bowls suggest repurposing or rationalisation of current facilities for these activities.

Implementation Sport Wellington’s role during implementation will be to: • Advocate for the use of this plan to guide decision-making • Identify and agree the responsibilities of partners in the delivery of this plan • Work with sporting stakeholders to increase the sector’s understanding of the principles applied to decision-making • Work with the sector to further understand and clarify their facility needs • Provide ongoing support during the implementation.

5. WORKFORCE EXCELLENCE – Improving Sports and Clubs Capacity

5.2 VALUING VOLUNTEERS STRATEGY Tracking volunteers has enabled sports to identify their workforce, the roles of volunteers and record any training needs. This data will also enable the RSOs to make better informed decisions regarding

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the gaps in their volunteer requirements. Along with the membership data presented earlier, this higlights to RSOs that if you have a growing membership, then we need greater volunteers to fill support roles to ensure participants are getting a quality and enjoyable experiences.

Local Volunteer numbers

Coaches Managers Officials Committee Other Members

Wairarapa 2018 ~ 76 2018 ~ 34 2018 ~ 8 2018 ~ 37 2018 ~ 14 Cricket 2017 ~ 76 2017 ~ 8 2017 ~ 12 2017 ~ 22 2017 ~ 4

Hockey 2018 ~ 125 2018 ~ 48 2018 ~ 30 2018 ~ 6 2018 ~ n/a Wairarapa 2017 ~ 100 2017 ~ 75 2017 ~ 25 2017 ~ 15 2017 ~ 200

Netball 2018 ~ 144 2018 ~ n/a 2018 ~ 60 2018 ~ n/a 2018 ~ n/a Wairarapa 2017 ~ 177 2017 ~ 50 2017 ~ 43 2017 ~ 18 2017 ~ 500

Wairarapa 2018 ~ 208 2018 ~ 78 2018 ~ 50 2018 ~ 150 2018 ~ 20 Bush Rugby 2017 ~ 208 2017~ 120 2017 ~ 50 2017 ~ 350 2017 ~ n/a

COACHING HUB

The 2019 Wairarapa Student Coach workshop was delivered in May with the Coaching Hub playing a key role in facilitating the delivery of the workshop. The purpose of this ongoing programme is to provide student coaches with a ‘coaching toolkit’, to build their coaching confidence, and to equip them with the skills to provide a positive experience for those they are coaching to ensure their ongoing participation in sport. This year’s workshop was attended by 48 student coaches from five colleges from the Wairarapa region who were engaged in coaching the Basketball, Football, Hockey, Netball and Rugby teams within their schools and clubs in the region. The all-day workshop consisted of three key sessions:

• A generic coaching session focused on HOW to coach. • A sport specific focused session where the student coaches work with a coach developer from the sport they will be coaching. • A Halberg Foundation Inclusion training session – how to include athlete’s with physical disabilities in your training session

The workshop was well supported by the different Regional Sports Organisations who provided Coach Developers to deliver the sport specific sessions and support the student coaches throughout the workshop.

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Of the student coaches who attended and completed a post-workshop evaluation:

• 96% of the student coaches rated the overall workshop as very good or excellent. • 97% of the student coaches rated the workshop content as very good or excellent. • 94% of the student coaches felt either somewhat more confident or much more confident about their coaching after attending the workshop.

5.3 RSO LEADERS SUMMIT Collaboration has been a key theme, in doing this we have placed a significant emphasis on building stronger relationships between regional stakeholders, resulting in a greater by-in by RSOs, sports clubs, schools and decision makers (i.e. Councils, funders and health agencies). Leading to a willingness to work together for the greatest impact for our communities.

This partnership is defined by our collective vision, ‘All people in the Wairarapa Region enjoy (and have access to), quality sporting experiences’. This vision has been at the forefront of discussions, topics and potential future opportunities.

What we’ve discovered through working within the partnership is, we know a limited amount about our clubs and participant wants and needs. Regionally, we lack connection to our own insights and research, which was where our journey started. The areas focused on in the last 12 months have been:

Research and Insights – what we wanted to know; Volunteer data captured. We can improve meeting the needs of our volunteer workforce by better capturing our volunteer data • 100% of RSOs have a database to track volunteers however only 50% of those can track complete volunteers including managers and club committee members.

Some Managers, Club Committee & other numbers unknown as database has not captured some areas in two out of four clubs

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• Regional Sport insights and research is needed to better understand the RSO/Club and or school relationship landscape, with alignment to national research explored.

• Gain an understanding of the sport sector membership expectations regarding their RSO

Collecting of membership data • Overall increase in participation numbers throughout the region across junior and senior memberships • Increased focus on coaches has led to an increase of coaches in the secondary school space, which is critical in a setting with high participation.

Teachers 76

Staff 32

Community 120

Students 65

Kia Hakinakina • Through its design, seeks to establish a truly collaborative culture with the schools engaged, to enable the desired pedagogical (or physical literacy) approach to tie into the curriculum effectively.

Coaching Hub • The Coaching Hub Principle model is designed to assist in the planning and the design of coaching programmes and support services.

Improved relationships and planning • Term meetings with secondary school sport coordinators and sport development personnel to co-plan opportunities for young people • Established a ‘Coffee Club’ for local regional sport personnel. Driven by sport as an opportunity to get together and discuss trends, opportunities, learnings in an informal setting given they all work in separate locations.

Leadership development is essential in growing the sectors decision making and future proofing grassroots sport • Two self-leadership workshops have taken place with a total of 32 champions beginning their journey in self leadership.

5.6 SPORT/SCHOOL NETWORKS

Over the past 12 months five sport coordinator and sport development meetings were held covering a range of topics including planning for 2018/2019, opportunities to grow girl’s leadership and confidence through sport (Shift Foundation) and gender diversity in college sport.

These meetings also provide the opportunity to network with their peers and gain ideas and feedback to take back to their own colleges.

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The meeting in January 2019 was a full day with two valuable workshops held to allow attendees get up to date with regional topics and initiatives. The morning session was on Regional Planning and covered ‘Aligning your own school Sport & Rec Plan with the College Sport & Recreation Plan (CSRP) consultation objectives to the Wairarapa Regional Plan’. How does College Sport contribute to the bigger regional picture? What are our collective priorities?

Following on from that was an FMS update on Kia Hakinakina – Discover, Play, Fun A KiwiSport funded initiative that improves fundamental movement skills (FMS) acumen. What will this mean for schools and sport? A practical session followed by a collaborative co-designed approach to deliver an integrated FMS system.

5.7 PROMOTION OF TOOLS AND RESOURCES

Tools and resources are promoted when meeting with RSOs and clubs. Also, if club personnel ask for advice, we will refer them to websites that may be of interest and if they need any other support, they are encouraged to arrange a meeting to discuss this further. More recently, with the establishment of the Puna – Leadership Framework, individuals and organisations will have access to more knowledge sharing tools and resources.

Sport Wellington made live its new website on 16 January 2019. With the new website there is a shift in focus to use the website as one of the primary marketing tools for the organisation. Please note with the new website came a new structure and therefore the data does not reflect statistics page for page.

Pageviews are a good reflection of how popular the page is. Over the course of the last six months of the old website there was a total 1,964-page visits to Wairarapa-related pages. The new website received a total of 2,342-page views. This is a significant increase taking into account the old website had 39 Wairarapa-related pages while the new website now only has 11.

Measuring the average amount of time spent on a page is then a way of indicating if users are engaged with the content. From the last six months of the old website had an average time on page of 1:10 while new website had 1:11 six months after launch. This isn’t any difference in the level of engagement, but this statistic still shows users are engaging with the content. [Note: Initially this received a higher than normal flow of traffic in its first week as stakeholders explored the new website. This trend was the same across the entire website including pages under “Wairarapa”. These statistics will become more settled once the website has been live for 12 months minus the first month of the launch]. https://www.sportwellington.org.nz/ https://sportnz.org.nz/ http://www.sportcompass.nz/ – Sport Compass is an online tool for the people who guide sport and recreation organisations. They can use it to frame their work, promoting consistency and efficiency throughout the country.

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5.8 LEADERSHIP FRAMEWORK – PUNA

Attendees from across the Wairarapa sport and recreation sector participated in the second Leadership Framework Orientation workshop to be delivered in our region. Deliverers and lead teachers from the Kia Hakinakina programme attended also, giving an avenue of reaching a wider and varied audience. Sport Wellington Wairarapa hosted the 3- hour workshop, facilitated by Megan Whitaker (Capability Group Ltd), to introduce the Leadership Framework and its resources to the attendees so that they can go back to their sports and clubs and ‘champion’ it.

Attendee, Patricia Heming, JAB Secretary, commented after the workshop, “My gosh what an amazing night, all so valuable. Definitely went home wanting more!”

Plans are underway for follow up with the attendees informally to see how they are using the resources in their space.

PUNA website: http://sportandrecleadership.org.nz/

RSO Coffee Club

The RSO coffee club has been running since September 2018, with monthly meetings since that time (except for January) – approximately 9 meetings. The coffee club is a chance for all RSO based in the Wairarapa to get together to share experiences, ideas and ways of doing things. It is a less formalised environment than a standard RSO forum, purposefully so, to encourage ongoing attendance. Topics covered since the establishment of the get togethers have included the Puna leadership resource and avenues of funding, but the main crux has been informal sharing of information and development of further collaboration and a closer partnership between the sports.

6. STRATEGIC INVESTMENT – Aligned investment

6.1 KIWISPORT INVESTMENT IN WAIRARAPA

From the beginning (January 2010), Sport Wellington have invested nearly $7 million dollars in community programmes that increase the availability and accessibility of sport opportunities for young people.

The below table includes programmes that are still currently in progress (including those that have recently been funded as part of KiwiSport funding round 22) and are being run (or have delivery links) in the Wairarapa.

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Funding Lead KiwiSport Project Name Round Delivery data Organisation amount invested Status Douglas Park Masterton Targeted $ 7,817.00 No reporting completed as School (Masterton Primary School Fund – of yet in this timeframe. Cluster) Sport Coordinator Quality Intra and Inter- School Sport Wairarapa Cricket Female Targeted $ 23,861.00 6 hub settings; 202 female Development Fund – participants involved in Officer (Centres Females (10- centres of influence; over of Influence) 18) 37 opportunities. 11 participants involved in female forums; 6 coaches.

104 participants involved in Backyard Cricket programme, 9 sessions 25 volunteers/ 4 growing coaches. RSO Sports Kia Hakinakina Targeted $63,176.00 776 participants involved Leaders Forum (Fundamental Fund – Skill across 7 sports in first Movement Skills Development reporting period alone Programme) and (Jan-June 2019). confidence building Sport Wellington Getting Started in Targeted $52,346.00 598 secondary school Coaching Fund – participants involved and Programme Coaching – 7,665 Children Impacted Quality and by Coaches (Secondary Quantity Students). YMCA Greater ‘Sport for Life” Open Fund $30,600.00 457 participants involved Wellington pilot across 6 sports in first reporting period alone (Feb-July 2019). Parafed Wellington Youth Group Targeted $27,600.00 86 participants and 193 Programme Fund - Family family/community and members attending. Community Engagement (Particularly in Low Participation Groups)

Wellington Softball KiwiSox Open fund $11,860.00 1,818 participants Association involved across 19 schools.

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Capital Zone Kiwi Hoops Open Fund $ 50,000.00 1,571 primary aged Basketball Programme - participants from 11 expansion pilot schools involved in the first reporting period alone (Feb-May 2019).

Have secured an extension of $48,180. The Shift Just Shift It Targeted $92,413.00 2,861 term-time Foundation Fund – participants over 170 Females (10- sessions, and 414 holiday 18) programme participants over 45 sessions.

Produced an excellent Intermediates Pilot Video Greytown Sport Sports Open Fund $15,202.00 Round 22 applicant; no and Leisure Inc Coordinator reporting completed yet. extension

Wairarapa Cricket Female Open Fund $42,500.00 Round 22 applicant; no Association (RSO Participation reporting completed yet. Collaboration) Project

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Profit & Loss Sport Wellington Wairarapa For the month ended 30 June 2019

YTD Actual YTD Budget

Income Council Funding $31,500.00 $30,000.00 E & CCT $71,320.00 $71,316.00 Other Grants $10,000.00 $19,000.00 Other Income $29,343.73 $29,910.00 Rental Income $19,951.41 $20,489.00 Sponsorship $3,078.26 $4,077.00 Sport NZ $18,999.98 $19,000.00 Total Income $184,193.38 $193,792.00

Gross Profit $184,193.38 $193,792.00

Less Operating Expenses Bad Debts $0.00 $25.00 Catering $753.15 $974.00 Cleaning $6,097.12 $5,200.00 Computer Expenses $1,788.00 $1,600.00 Conference & Training $2,037.38 $3,661.00 Contract Fee $9,234.25 $10,071.00 Couriers $0.00 $25.00 Electricity $4,597.07 $6,996.00 Equipment $0.00 $200.00 Equipment Rental (Non office) $160.00 $0.00 Holiday Pay $1,383.46 $2,062.00 Insurance $1,086.00 $1,300.00 Kitchen $193.52 $240.00 Maintenance $0.00 $150.00 Meeting Expenses $0.00 $100.00 Mobile Phones $904.66 $623.00 Office Equipment $0.00 $425.00 Other Programme Expenses $26.09 $97.00 Overhead Charge $6,875.96 $8,197.00 Personal Vehicle Use $0.00 $100.00 Personnel; Costs $0.00 $640.00 Postage $231.83 $350.00 Printing $635.94 $672.00 Promotional materials $240.27 $250.00 Rental $15,235.87 $15,000.00 Salaries $155,917.28 $167,635.00 Stationery $592.93 $422.00 Subscriptions $654.04 $125.00 Sundries $41.73 $150.00 Telephone $4,512.88 $4,986.00 Travel & Accommodation $829.82 $330.00 Vehicle Running Expenses $5,126.60 $5,129.00 Venue Hire $619.57 $1,825.00 Total Operating Expenses $219,775.42 $239,560.00

Net Profit -$35,582.04 -$45,768.00 464 Attachment 11

Aratoi Regional Trust - Report Q4 2018-19

Introduction The Financial Statements for the quarter 1 April – 30 June 2019 are presented. They are subject to ART board ratification and year end audit adjustments. The statements show a period surplus of $3,045 compared to a budgeted deficit of $(14,036) for the period. The YTD result for the year ended 30 June 2019 is a deficit of $(8,831) compared to the Annual Plan budget for 1 July 2018 – 30 June 2019, set in January 2018, of $(23,078).

The financial statements and accompanying variance narrative for the period follow below.

Financial Reports - Variances to Budget for the 4th quarter April to June and YTD 2018/19. 1) The arrangement regarding the Building Rental Grant and matching Building Rental cost from Masterton Trust Lands Trust (MTLT) has been reinstated. The quarter’s trading Income is 26% up on budget but 9% up on a YTD basis. • Local council funding received from MDC and SWDC is as per the Annual Plan. CDC reduced their funding from an expected annual amount of $14,000 to only $8,000 resulting in a $(1,500) deficit for the period, $(6,000) deficit YTD. • Grant funding received is three months of the annual Trust House funding for exhibitions, funds made available by Friends of Aratoi, funding brought to account to match expenditure with the Education programme and funding brought to account for the progress costs of the lighting upgrade (which have been capitalised). • Self-generated income streams are ahead of budget for the quarter, donations were nearly double that in the budget. • The Front of House Retail space continues to be ahead of budget. Retail sales were over 37% ahead of budget for the quarter and 41% on a YTD basis. The quarter shows a profit margin of 37% compared to a budget of 35%.

2) For this 4th quarter, April to June, 41.85% of Aratoi’s revenue (excluding the grant from LTM re building rental) was from sources other than MDC.

3) The Education Programme resumed in Term 2 2019. The attendance by Wairarapa schools has been pleasing – more than 800 students and teachers and caregivers visited the galleries to take part in the programme during the quarter. Aratoi is again grateful to both T G McCarthy Trust and Masterton Trust lands Trust for providing funding for this.

4) Exhibition costs include exhibition costs for See What I Can See, the costs of installs and deinstalls of Air Force Faces (in partnership with Wings over Wairarapa), 2019

1 465 Molly Morpeth Canaday Award winners, the WAI exhibition, Kerrie Hughes and He Manawa Whenua: He Puna Wai WATER\Way exhibition. The Live @ Aratoi gigs saw a return visit from Richard Gilewitz being well attended.

5) Advertising and promotion expenses are over budget for the quarter. The main variance is caused by there being x2 quarter’s costs for advertising in a local magazine that were processed in this quarter.

6) Collection expenses are over budget. In preparation for Aratoi’s 50th anniversary exhibition and working towards collections online, two Museum Studies Graduates were recruited to undertake collection work, including an audit of the collection, standardizing entries, photographing objects and improving storage. Their costs have not been allowed for in the Annual Plan budget and have created a $5,333 negative variance during this quarter.

7) Property expenses remain over budget. The change to the annual OPEX costs charged to Aratoi remains at a $3,000 negative variance per quarter. At this stage, there has been no year end adjustment for depreciation from a finalized Fixed Asset register.

8) Rental of building costs have been reinstated as advised by MTLT.

9) Employment expenses are over budget for this quarter and YTD. The budget was phased to take 1/12th of the annual budget per month. The actual payroll is run on a fortnightly basis and this quarter has resulted in x7 payrolls being included.

10) General Operation costs are over budget for the quarter. Upgrades to the Aratoi website were made during this quarter resulting in expenditure of $4,250 not included in the Annual Plan budget. Power costs are back in line with budget due to the cooler weather.

Risk Management and Internal Control

1) Working capital (current assets less current liabilities) was $136,201 at 30 June 2019 as per these financial statements. ART is able to meet its financial commitments as they fall due.

2) Insurance coverage is in place until 31/03/2020. Copies of all insurance policies are on file in the Director’s office. Management is confident that there is sufficient insurance in place to cover the Collection, works on loan and visiting works.

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KEY RESULT AREAS

SERVICE ONE – COLLECTIONS We will care for our collections. We will research our collections. We will share our collections with communities. We will strategically develop our collections.

• Regular foyer display of Barbara Hepworth’s Galliard, Aratoi’s inaugural collection object. • Long-term exhibition of Taonga Māori from the collection on display: Ngā Aho Raranga – Textiles from the Taonga Māori Collection. • Extensive research for a publication and collection exhibition celebrating the 50th anniversary of the Wairarapa Arts Centre/Aratoi: 50 years of Aratoi. • Work on improving collection storage systems and continuation of documentation, photography and standardization of the collection and records to prepare for collection online and 50 years of Aratoi.

Loans • Loan request from Christchurch Art Gallery to include Colin McCahon’s Poem in an exhibition from April – Sept 2020. • Loan request from Auckland Maritime Museum to include two taonga from the collection for an exhibition from Oct 2019 – June 2020.

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SERVICE TWO – EXHIBITIONS We will tell our history and stories and connect with our communities. We will be a community forum for learning, understanding and participation in art, history and culture.

• Completed Stage 1 of Aratoi lighting upgrade for all exhibition spaces. Stage 2 to be completed in Q1 2019/20. This vital upgrade is made possible with funding support from Lotteries NZ, Eastern & Central Community Trust and Trust House.

Date Exhibition Classification 14/4/2018 – 7/4/2019 Ngā Aho Raranga - Textiles from the Taonga Māori, Social History Taonga Māori Collection (Collection) 30/3 – 26/5/2019 WAI Manga Maha, Awa Kotahi | One Social History & Art, River, Many Streams with Sam Ludden, environmental (local) Wai Archive, local iwi, artists and Historians etc. 13/4 – 4/8/2019 He Manawa Whenua: He Puna Wai Art, environmental (national) WATER \WAY Thirteen contemporary artists explore the rivers and lakes of Aotearoa 13/4 – 23/6/2019 Molly Morpeth Canaday Award – Art (national) Whakatane 1/5 – 2/6/2019 Sam Duckor-Jones, First I lay with Adam Art, diversity (local, national) 1/6 – 28/7/2019 Paul Gadsby - Takeaways Art (local) 8/6 – 21/7/2019 King Street Artworks Art, community well-being (local)

Exhibition support programmes • WAI Manga Maha, Awa Kotahi | One River, Many Streams Blessing & Opening (29/3); Floor Talk (30/3) • He Manawa Whenua: He Puna Wai WATER \WAY Blessing (12/4); Floor talk (26/5) • Molly Morpeth Canaday Award Combined Opening & Floor Talk (11/4) • Sam Duckor-Jones - Opening: Global Love Day at Aratoi - Poetry and Diversity (1/5) • Paul Gadsby Opening (31/5); Artist Talk (1/6) • King Street Artworks Opening (7/6)

SERVICE THREE – ACCESS & ENGAGEMENT We will partner and engage with Wairarapa communities. We will be a valued community resource. We will encourage dialogue and interaction onsite, offsite and online.

• Wairarapa Word: Sir Kim Workman (7/4) • Fully booked school holiday programme with Aratoi educators and Sam Ludden (16- 18/4) • Aratoi volunteer introductions to new suite of exhibitions (17/4 & 29/4) • NZ Taxi Drivers Tell their Stories - Presented by Arrow FM & Aratoi, with support of Ethnic Communities, Mayor Lyn Patterson, Trust House, Nectarine NZ, Noise Productions (10/5) • Live@Aratoi: Richard Gilewitz (19/5) • Arts + Climate Innovation: The Role of the Arts - Presented by Track Zero in partnership with Aratoi (panel incl. Dr Mike Joy, Prof James Renwick & WAI artists) (26/5) • Launched new website for Aratoi (14/6)

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Visitor count analysis Since 1 July 2018, Aratoi is now able to report visitor numbers via Arcus Flow, a state-of-the- art people counter system. The manual counting system undertaken in the past was ceased, so Aratoi volunteers could better utilize their skills and support the museum. The Arcus Flow system was purchased in conjunction with Masterton Library, who have undertaken extensive research to employ the best system available on the market. Arcus Flow is currently establishing a visitation baseline for Aratoi. The system provides raw data, dwelling time and consistent tracking of people.

Months 2018/19 Total E&E (visitation baseline) July 10,104 August 10,004 September 10,253 October 11,766 November 9,740 December 9,389 January 9,347 February 8,935 March 8,991 April 8,471 May 9,630 June 8,272

Volunteer hours A total of 1,435+ volunteer hours/quarter to Aratoi; 935+ hours Friends and Volunteers including for assisting at Front of House/Gallery security and staffing exhibition opening events; 500+ hours Trust Board. For the year, volunteers have provided Aratoi with 3,640+ hours.

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167/19 To: Audit and Risk Committee

From: Tania Madden, Manager Strategic Planning

Endorsed by: Kathryn Ross, Chief Executive

Date: 21 August 2019

Subject Non‐Financial Performance 2018‐19 Annual Report

INFORMATION Recommendation: That the Audit and Risk Committee receives the annual non‐financial performance report for the 2018‐19 financial year in Report 167/19.

Purpose The purpose of this report is to advise the Audit and Risk Committee of performance against non‐ financial measures that are reported quarterly and annually. The figures in this report are for the period from 1 July 2018 to 30 June 2019.

Executive Summary Results against performance measures are reported for all nine activity areas in this annual report. The activity areas are:

 Community Wellbeing  Roads and Footpaths;  Water Supply;  Wastewater;  Stormwater;  Solid Waste;  Community Facilities;  Regulatory Services, and  Governance and Services

MDC has a total of 74 performance measures, all 74 are being reported on in this annual report. All 74 performance measures were reported, 53 (71.6%) were achieved, 19 (25.7%) were not achieved and 2 (2.7%) were not applicable as at 30 June 2019.

Further information follows.

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The graph below shows the percentage of measures against each activity area that:  GREEN ‐ have been achieved in 2018‐2019;  RED ‐ have not been achieved in 2018‐2019; or  YELLOW – are not applicable in 2018‐19.

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2018‐19 Annual Non‐Financial Performance Measure Results

Measure 2018‐19 Annual Target Annual Result 2018‐ Baseline or Previous Status Comments 19 Year Result (where available) Community Wellbeing Number of air quality Reduction in the number 6 exceedances were 5 exceedances were 6 exceedance days equates to 5 breaches of exceedances of exceedances, recorded in the 2018 recorded in the 2017 Not the National Environmental Standard for Air compared to the calendar year. calendar year. Achieved Quality. previous year CO2 emissions per head of Annual reduction in CO2 Total greenhouse gas Total gross greenhouse Total gross greenhouse gas emissions for population emissions per head of emissions per head of gas emissions per head 2017‐18 were 752.30 (tCO2e), which equates population population = 0.029 of population = 0.035 to 0.029 (tCO2e) per head of population (tCO2e). (tCO2e) (based on 25,700 population estimate).

Achieved This is a reduction of (Based on first CEMARS 0.006 (tCO2e) audit result and compared to the population as at 2013 previous year. census: 23,352)

Percentage of staff that Annual increase in the As at 30/6/19, 20/105 As at 31/12/17, 7/92 have completed He proportion of staff who permanent staff had permanent staff had Korowai Wairua (MDC's have completed the completed the completed the introductory Māori programme programme = 19% programme = 7.6% Achieved language and tikanga Māori programme)

Masterton Gross Domestic Equal to or greater than Growth estimate of Note: This is a provisional figure for the year Product (GDP) percentage Wellington region 2.3%, compared to to 31 March 2018. Figures for the year to 30 change relative to average growth of 2.0% for Achieved June 2019 will be available on 22 August and Wellington region GDP the Wellington will be updated for inclusion in the annual region. report.

Measure 2018‐19 Annual Annual Result 474Baseline or Previous Status Comments Target 2018‐19 Year Result (where available) Roads and Footpaths Number of fatalities and Reduction in fatalities 2 fatalities and 8 4 fatalities and 14 serious injury crashes on the and serious injury serious injury serious injuries Achieved local road network crashes compared to crashes (2017‐18) previous year Average quality of ride on a Maintain or improve 94% 94% 94% network smooth travel exposure (as at sealed local road network, on 90% 12 July 2019). measured by smooth travel Achieved exposure

Percentage of sealed local Maintain within 5‐7% 6.3% 6.4% 34.1 km of the total sealed local road road network that is Achieved network (538 km) was resurfaced in resurfaced 2018/19. Percentage of footpaths 97% of footpaths are 93% 99% 150.0 km of 161.3 km (representing 93% of where the condition falls rated excellent, good the footpath network) surveyed within the level of service or fair progressively between 2016 and 2018 is defined in MDC's Asset condition rated excellent, good or fair. Management Plan Not Achieved Not achieving this measure supports the need for the increased footpath renewal programme that is planned for the next two years.

Percentage of urgent 95% 98% 98% 421 of 430 urgent requests were responded customer service requests Achieved to within 2 days. responded to within 2 days Percentage of non‐urgent 80% 76% 78% 595 of 785 non‐urgent requests were customer service requests responded to within specified timelines. responded to within the Many non‐urgent matters need further timeframes specified in MDC's Not Achieved investigation to clarify the request before a Asset Management Plan and meaningful response can be given, resulting placed on appropriate in delays to response times. maintenance programme Number of cyclists using our Increase on previous 176 counted during 475184 counted during 4 monitor sites are manually surveyed urban roading network year annual survey in annual survey in annually over both the 2 hour morning and October 2018 November 2017 afternoon peaks for cycle usage. The Not Achieved 2018/19 surveys were conducted between 16th and 25th October 2018 and total cycle usage decreased to 176 cycles (YTD). Measure 2018‐19 Annual Annual Result Baseline or Previous Status Comments Target 2018‐19 Year Result (where available) Water Supply Number of complaints received Less than or equal 3.2 complaints/ 5.2 complaints/ There have been 29 complaints YTD. There about drinking water clarity, to 6 complaints/ 1000 connections 1000 connections were 3 complaints in the 4th quarter taste, odour, pressure or flow, 1000 connections Achieved compared to: Q1/9 complaints: Q2/11 continuity of supply, or MDC's complaints; Q3/6 complaints. response to any of these issues Response time to call outs to a fault or unplanned interruption to MDC's networked reticulation system: a) attendance at urgent call 60 minutes or less 24 minutes 30 minutes outs (from notification to arrival Achieved on site) b) resolution of urgent call outs 480 minutes or less 231 minutes 194 minutes (from notification to Achieved confirmation of resolution) c) attendance at non‐urgent call outs (from notification to arrival 7 days or less 60 minutes 2.84 days Achieved on site) d) resolution of non‐urgent call outs (from notification to 3 months or less 115 minutes 6.85 days Achieved confirmation of resolution) Council's drinking water supply complies with: a) part 4 of the Drinking Water Fully compliant Fully compliant Fully compliant Standards (bacteria compliance Achieved criteria) b) part 5 of the Drinking Water Fully compliant Fully compliant Fully compliant Standards (protozoal Achieved compliance criteria)

Percentage of real water loss Reduction on 37% 476 36% Installation of Water Meters will enable from MDC's reticulation system previous year in 2017/18 leaks to be located and repaired. (calculated using minimum Not Achieved night flow) Average consumption of Reduction on 609 litres/ 655 litres/ drinking water per day per previous year person/day person/day Achieved resident within the district Alternative water supply is Less than or equal No shutdown No shutdown provided when shutdown to 1/1,000 exceeded 24 hours. exceeded 24 hours. Achieved exceeds 24 hours connections Percentage of water pipe 90% of planned 80% New Measure A number of planned renewal works sites renewals completed work were not completed, due to lack of resource Not Achieved from the contractors and competition for resource from increased subdivision works from the private sector. Measure 2018‐19 Annual Annual Result Baseline or Previous Status Comments Target 2018‐19 Year Result (where available) Wastewater Number of complaints received Less than or equal 5.44 complaints/ 7.32 complaints / There have been 49 complaints in 2018/19. about sewerage odour, system to 8 1000 connections 1000 connections There were 13 complaints in the 4th quarter faults, system blockages, MDC's complaints/1000 (49 actual (65 actual Achieved compared to: Q1/12 complaints; Q2/12 response to issues with its connections complaints) complaints) complaints; Q3/12 complaints. sewerage system Median response time to sewerage overflows resulting from a blockage or other fault to MDC's sewerage system: a) attendance (from time of 6 hours or less 34 minutes 30 minutes notification to the time service Achieved personnel arrive onsite) b) resolution (from time of 12 hours or less 170 minutes 3.2 hours notification to the time service Achieved personnel confirm resolution) Number of dry weather Less than or equal 0.33/1000 0.11/1000 There have been 3 overflows YTD. sewerage overflows from to 2/1000 connections connections There were 2 overflows in the 4th quarter MDC's sewerage system connections Achieved compared to: Q1/0 overflows; Q2/0 overflows; Q3/1 overflow. Compliance with MDC's 100% ‐ no consent 100%477 100% resource consents for discharge breaches from its sewerage system, measured by the number of abatement notices, Achieved infringement notices, enforcement orders or convictions received by MDC in relation to those consents Alternative system provided Less than or equal 0.22/1000 0/1000 2 portaloos were deployed on 27/11/2018 where loss of service exceeds to 1/1000 connections connections Achieved and removed on 29/11/2018. 24 hours connections Percentage of wastewater pipe 90% of planned 80% New Measure A number of planned renewal works were renewals completed work not completed due to a lack of contractor Not Achieved availability given increased subdivision works in the private sector. Recreation quality of the Long‐term Suitability of Suitability of Ruamāhanga River water, improvement trend, Swimming Grade: Swimming Grade: downstream of Homebush with no decline in Low Risk Low Risk Wastewater Treatment Plant water quality from Achieved (known at the Cliffs) baseline (Suitability of Swimming Grade: Low Risk)

Measure 2018‐19 Annual Annual Result 478Baseline or Previous Status Comments Target 2018‐19 Year Result (where available) Stormwater Percentage of stormwater 90% of planned work 30% New Measure A number of planned renewal works were renewals complete not completed due to a lack of contractor Not Achieved availability given increased subdivision works in the private sector. Number of flooding events 10 events or less 6 stormwater None Achieved that occur in the district related incidents For each flooding event, Less than or equal to None 0/1000 the number of habitable 1/1000 connections Achieved floors affected Compliance with MDC's 100% ‐ no consent 100% 100% resource consents for breaches discharge from its stormwater system, measured by the number of abatement notices, Achieved infringement notices, enforcement orders or convictions received by MDC in relation to those consents. Number of complaints Less than or equal to 1.33 complaints/ 1.4 complaints/ There have been 12 complaints YTD. received about the 2/1000 1000 connections 1000 connections There was 1 complaint in the 4th quarter Achieved performance of MDC's compared to: Q1/2 complaints; Q2/7 stormwater system complaints; Q3/2 complaints. Median response time to 60 minutes or less 28 minutes 32 minutes attend a flooding event (from time of notification Achieved to the time service personnel arrive onsite)

Measure 2018‐19 Annual Annual Result 479Baseline or Previous Status Comments Target 2018‐19 Year Result (where available) Solid Waste Number of call backs due Improvement on 29 call backs 13 call backs There were 29 missed bags in 2018/19. to non‐collection of previous year in 2017/18 There were 10 missed in the 4th quarter official rubbish bag in compared to: Q1/7 missed; Q2/10 missed; each weekly collection Q3/2 missed.

Not Achieved This measure will continue to be monitored to determine any patterns.

Tonnage of waste Reduction on previous 0.56 tonne per 0.52 tonne per head of There a small decrease in the waste to transferred to landfill per year head of population population landfill per head of population with a 0.9% head of population (estimated (estimate population as at increase in tonnage to landfill. population as at 30/6/17: 25,200) 30/6/18: 25,700). 13,049 tonnes of waste Achieved 14,264 tonnes of transferred (5% increase waste transferred on previous year) (0.9% increase on previous year)

Urban and rural transfer 100% compliance 100% Minor non‐compliance Operations of all sites complied with stations, recycling, resource consent conditions, and Regional composting facilities and Council issued compliance reports for each Achieved landfills operate within site. approved resource consent conditions

Measure 2018‐19 Annual Target Annual Result 2018‐19 480Baseline or Previous Status Comments Year Result (where available) Community Facilities and Parks Number of library and Increasing over time, and 708 structured 280 structured Activities and events include information archive engagements at least baseline activities and events activities and events and community support services, for with our community (280 activities/events, example Justice of the Peace and Digital 181,957 people using the 158,867 people used 181,957 people used Inclusion for Seniors. library space, 91,779 the library space the library space Not Achieved A new ‘Arcus Flow’ people counting website visits) system was implemented in May 2018 to 51,524 website visits 91,779 website visits enhance accuracy of recording. New Website and Online Catalogue interrupted statistics recording.

Number of literacy Increasing over time, and 612 programmes 224 programmes 6 month result: 123 programmes. programmes offered at least baseline (224) 12 month result: 612 programme. (including library Noting all Library programming has a promotions and digital literary or information component. literacy) New programmes have been introduced including outreach visits to rest homes, after school digital programming twice a Achieved week, weekly knitting and craft group, and new book clubs. The recording of the programming has changed this calendar year to reflect the need to accurately record all activities for performance reporting. This is reported to the National data collections for Public Libraries of NZ.

Number of children Increasing over time, and 314 completed/ 390 481317 completed/ There were higher registrations in participating in the at least baseline (317) registered 375 registered 2018/19 but fewer completed the Summer Reading programme. Programme The total number of registrations available for Masterton Library from the ECREAD’N Committee is 375 per year. This is the number we have resources Not Achieved available for. In 2018‐19, 390 were registered due to high demand for places but this did not result in an increase in participants completing the programme. We anticipated the fall off to be able to manage within the available resources.

Number of people using Free online sessions 1.2 free online 3.8 free online sessions Free Computer access sessions extended free online services per increasing over time, and sessions (96,712 total sessions) from 30 minutes to 45 minutes per head of population at least baseline (3.8) (31,076 total sessions) session to enable customers to complete Estimated Population on; one transactions CVs, Govt services Estimated population as at 30/6/17: 25,200 etc. Sessions 31,076. Estimated as at 30/6/19: 25,700. Not Achieved population at 30/6/19 ‐ 25,700.

Library staff have distributed 220 Spark Jump modems to people with no Internet access at home reducing the need for people to use the free services. Free Wai‐Fi sessions 1.2 free Wai‐Fi 1.2 free Wai‐Fi sessions 13,140 e‐centre sessions; 1,481 Te increasing over time, and sessions (30,800 total sessions) Awhina WiFi sessions; and 15,791 Library at least baseline (1.2) (30,412 total sessions) WiFi sessions. Estimated Population Masterton Library has delivered Spark Estimated population as at 30/6/17: 25,200 Achieved Jump sessions for 88 people over the year as at 30/6/19: enabling access to low cost Internet for 88 25,700. families in their homes, reducing the need for these families to access free Internet services.

Number of archive Average of 1 per month/ Average of 10.5 482An average of 14.1 6 month result: 108 feature stories/ 12 per annum per month / archive feature 12 month result: 126 publications (media and 126 for the year stories/publications per online) year over the The 100 stories completed as part of "100 Achieved previous ten years. Years 100 Lives" features with the Times‐ Age increased numbers in the first half of the year, and for the year overall.

Cemetery records Maintain baseline (7,447) 9,667 7,447 31 December 2018 – 30 June 2019: 4,875 accessed online Achieved 1 July 2018 – 31 December 2018: 4,792 Number of structured Increasing utilisation 359 New Measure. New measure, baseline has been activities/events in over time established. Achieved MDC's parks and sportsgrounds Number of people using Increasing utilisation 312,440 New Measure. New measure, baseline has been the recreational trails over time established. Achieved that are part of our parks Based on an average of 856 counts per and reserves network day. Number of structured Increasing utilisation 52 19 events Activities and events have included: activities/events that over time Sports team trainings; Birthday parties; have been run in the War Achieved Basketball match; Netball games; Futsal Memorial Stadium and Schools indoor programme.

Number of landings at Increasing over time and 10,890 7,821 Hood Aerodrome at least baseline (7,821) Achieved Number of new hangars Increase in hangars over 19 hangars 19 hangars There are 4 sites on market as of 30th at Hood Aerodrome time Not Achieved June 2019. Ratio of average MDC Maintain senior housing 47% Senior housing rental The average rent for MDC senior housing senior housing weekly rentals at no more than equates to 41.9% of the units is $99.04 per week. The median rent compared to 60% of the market rental market rental for market rent for a 1 bedroom flat in average private sector for a 1‐bed flat a 1 bed flat Achieved Masterton is $210 per week. rent Reference from Tenancy Services and is for the period 01 Jan 2019 ‐ 30 Jun 2019.

Number of under‐12s Annual increase 465 swim school 589 swim school The reduction in figures may be due to enrolled in Learn to Swim enrolments enrolments year 8 students completing the Not Achieved programmes programme last year while they were in year 7.

Measure 2018‐19 Annual Target Annual Result 483Baseline or Previous Status Comments 2018‐19 Year Result (where available) Regulatory Number of dog attacks Reducing over time and 63 Attacks 65 attacks 6 month result: 35 attacks (on people and stock) in no more than baseline of 12 month result: 63 attacks. our district 65 attacks 24 attacks on people 17 dog attacks on The number of attacks on people has and 39 attacks on people and 48 attacks increased. Stock attacks overall have stock, domestic on stock, domestic Achieved decreased. animals or poultry. animals or poultry (average over the previous 3 years)

Number of 'responsible Increasing number of 94 None ‐ new policy. 6 month result: 65 owners' of dogs 'responsible owners' Achieved 12 month result: 94

Number of pet/working Increasing over time and 209 207 6 month results: 120 dogs reunited with their at least baseline (207) 12 month results: 209 owner or rehomed 191 returned to 173 returned to owners Achieved owners 34 rehomed/ 18 rehomed/ signed signed over to SPCA over to SPCA Proportion of known At least one inspection Food: 129/140 Food: 152/145 11 scheduled premise verifications were premises scheduled for per known premise scheduled not completed. The Food Act is still being assessment or scheduled for verifications were implemented resulting in longer verification in the current assessment or completed. inspection times. Final Food Act Not Achieved financial year that were verification in that year transitions were required to be assessed or verified of completed by the end of February 2019. safe sale and/or service This was achieved but also required additional staff time commitment. Personal Services Personal Services (Hair, 8 Beauty Therapist & Hairdresser (Hair, Beauty etc): Beauty etc): 113/98* inspections were not completed due to premises not being open or being 43/51 required *The baseline figure unavailable at scheduled times. inspections have been from 2016/17 included Not Achieved Inspections will be completed in the new carried out. public pool inspections. financial year. This is why the number of premises looks to have reduced. 484 Alcohol: 64/3 2 Alcohol: 42/71* There are 76 licensed premises.

*There was a data Of those, 32 required inspection in entry error in the 2018/19: 24 were inspections for renewal baseline data which is of licenses and 8 were inspections for reported in the LTP as new licenses issued. The new licenses being 142/71. This Achieved primarily related to sales of premises. should have read 42/71 as above. In total, 64 inspections were completed. The additional inspections completed were compliance checks.

Percentage of consents 99% 95.8% of Building 99% of Building 761 Building Consents received with an processed within Consents Consents average processing time of 12 working statutory timeframes Not Achieved days. The volume of consents and periods (average of 12 (average of 13 of staff change have impacted results for working days) working days) the year. 100% of Resource 96% of non‐notified Consents 100% of notified Achieved Percentage of planning Improving over time, and 79% for Building New Measure New measure, baseline has now been and building consent at least baseline Achieved established for building team. applicants that were satisfied with consent Improving over time, and No data for Planning New Measure Due to a survey error planning data is not process and customer at least baseline Not Achieved available. The baseline for planning will service received be established in the coming year. Percentage of At least 80% 67% 76% The volume of consents and periods of commercial buildings staff change have impacted results for the that have a current 267/398 BWOFS were 305/398 BWOFs were year. Building Warrant of received and correct. received and correct. Fitness (BWOF) Not Achieved 131 were outstanding 93 were outstanding or or incorrect. incorrect. Percentage of notified Annual increase, with 17% 485New Measure New measure, baseline has been potentially Earthquake‐ 100% by the legislative established. Prone (EQP) priority deadline of 2025 buildings where the Owners that have received a potentially Achieved owners have responded earthquake prone building notice: 12 to advise action or have Owners that have either strengthened or remediated the EQP demolished: 2 status of their building

Measure 2018‐19 Annual Target Annual Result Baseline or Previous Status Comments 2018‐19 Year Result (where available) Governance and Corporate Services Annual staff turnover Within 5‐15% 12.3% 11% Achieved (excluding FTAs) Ratio of compliments to Improving over time and 4.2:1 1.15:1 6 month result: 69 Compliments and 16 complaints as a reflection at least baseline (1.15:1) Complaints were received. of customer satisfaction 104 compliments / 148 compliments / 129 12 month result: 104 compliments and 25 with the service received 25 complaints complaints Achieved complaints were received. from our frontline teams

Percentage of rates Increase over time 15.5% 14.4% invoices emailed (instead (1,974 out of a (1,790 out of a total of Achieved of posted) total of 12,704 12,425 rated properties) rated properties) Transactions completed Increase over time, with 85.5% % of overall 83.5% of overall electronically (via our no decline from baseline transactions were transactions were website) (83.5%) electronic. electronic in the year ending 30/6/17. Achieved

Most were automatic payments or direct debits.

Number of learning Increase over time and at 17 New Measure New measure, baseline has been opportunities (training least maintain the established. sessions/forums/confere baseline Achieved nces) elected members have attended Proportion of policies in Annual improvement, 56% Current486 52% current Thirteen policy reviews/development our register that are with 95% by Year 3 were completed in 2018‐19. A work current Achieved programme is in place to have the majority of policies current by June 2020. Media coverage of MDC Improve the ratio of 1.2:1 New Measure 672 articles in total. 481 were mixed or decisions and activities positive to negative neutral. media coverage over 104 positive/ Achieved time, and at least 87 Negative maintain the baseline. The diversity of people Increase in the No increase Consultation was not undertaken on the who had their say on percentage of 2019‐20 Annual Plan, as no significant Not Applicable MDC's Annual or Long‐ respondents to identify issues were identified. Term Plan as Māori or Other Increase in the No increase percentage of Not Applicable respondents aged under 50

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168/19 To: Audit & Risk Committee

From: David Paris, Manager Finance

Endorsed by: Kathryn Ross, Chief Executive

Date: 21 August 2019

Subject: Annual Report, Audit Plan & Timetable

FOR INFORMATION Recommendation: That Audit & Risk Committee: (a) receives Report 168/19 and (b) notes the information regarding the 2018/19 Annual Report preparation and adoption and the Audit Plan.

Purpose To provide the Audit and Risk Committee with an update on the Annual Report timetable and audit arrangements.

Executive Summary The work to prepare the Council’s 2018/19 Annual Report is underway as at mid-August. There are three reports included in this Audit & Risk Committee agenda with respect to a draft rates requirement summary, treasury management and rates receivables. A draft of the Annual Report, pre audit, will be reported to the Council meeting scheduled for 25 September. The report must be audited and adopted by 31 October 2019.

The production of the Annual Report is dependent on the organisation’s capacity to complete the reconciliation work required and our auditor’s availability to undertake the audit. Audit NZ have traditionally scheduled our audit quite late. This year they will be on-site from 7 October. The final, audited version of the Annual Report is targeted for the Council meeting on Wednesday 30 October 2019. That timing means the newly elected Council will be asked to adopt the Annual Report at its inaugural meeting.

The Audit Plan document from Audit NZ is attached for information (see Attachment 1).

Background The Council is required to produce an Annual Report each year as follows: - financial year 1 July to 30 June - audited and adopted by Council by 31 October 488

- complies with generally accepted accounting practice (GAAP) - complies with Local Government Act reporting and disclosure requirements Audit NZ are the appointed auditors and they undertake an interim audit visit and a final audit visit each year. They prepare an ‘Audit Arrangements Letter’ which the sets out what the obligations are of the Council and the auditors and it also sets the timetable and audit fees.

The proposed Annual Report Timetable is as follows:

25 September 2019 Council meeting where a draft of the Annual Report will be presented, but still subject to audit. The Draft Annual Report to include financial statements and key notes to the accounts and all non-financial performance reporting. 7 October 2019 Auditors on site (two weeks) Note: a tight timeframe to achieve sign-off, but having a complete report to audit is expected and we also expect to have an audit team familiar with the Council’s systems. 30 October 2019 Council meeting, including adoption of 2018/19 Annual Report with audit opinion.

489 ATTACHMENT 1

Audit plan Masterton District Council

For the year ending 30 June 2019

Masterton DC Audit Plan 19J signed.docx 490

Audit plan

I am pleased to present our audit plan for the audit of Masterton District Council for the year ending 30 June 2019. The purpose of this audit plan is to discuss:

Audit risks and issues ...... 2

Our audit process ...... 5

Reporting protocols ...... 8

Audit logistics ...... 9

Expectations ...... 10

The contents of this plan should provide a good basis for discussion when we meet with you.

We will be happy to elaborate further on the matters raised in this plan.

Our work improves the performance of, and the public’s trust in, the public sector. Our role as your auditor is to give an independent opinion on the financial statements and performance information. We also recommend improvements to the internal controls relevant to the audit.

If there are additional matters that you think we should include, or any matters requiring clarification, please discuss these with me.

Yours sincerely

John Whittal Appointed Auditor 20 May 2019

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Audit risks and issues

Focus areas

Based on the planning work and discussions that we have completed to date, we set out in the table below the main audit risks and issues. These will be the main focus areas during the audit.

Audit risk/issue Our audit response

Civic Centre redevelopment

The Masterton combined town hall and district We will update our understanding of the project building was closed in June 2016 due to having an and consider the adequacy of: earthquake rating below the required standard.  project governance and management As a result of consultation through the Long-Term structures; Plan process, the Council has decided on building a  procurement and project management new Civic Centre. In the 2018-28 Long-Term Plan processes applied; and $15.5 million was committed to the redevelopment of the civic centre over three years  risk management practices. (to mid-2021). We will also consider the adequacy of systems in Further consultation is planned to occur during place for recording costs and commitments 2019, as Council considers the final design of the associated with the project. This includes building. Construction is expected to commence reviewing the classification of expenditure on the late 2019/early 2020. project to make sure this has been accounted for in accordance with generally accepted accounting practice, identifying commitments and reviewing the District Council’s impairment assessment at balance date.

Asset revaluations – fair value assessment

The District Council has adopted a policy to We will review the District Councils assessment of revalue its infrastructure assets on a cyclical basis. asset carrying value to ensure these values do not The District Council last revalued its infrastructure differ materially from fair value. assets during the 2016/17 financial year, and land We will also review the disclosures and any and building assets in the 2017/18 financial year. adjustments made by District Council for As this is a non-revaluation year for these assets, compliance with PBE IPSAS 17. the District Council will need to formally assess whether a revaluation is required to ensure the carrying value of these assets fairly reflects their fair value. It is important that the District Council makes this assessment at an early stage as a full valuation may require a significant amount of time to complete if required.

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Audit risk/issue Our audit response

The risk of management override of internal controls

There is an inherent risk in every organisation of Our audit response to this risk includes: fraud resulting from management override of  testing the appropriateness of selected internal controls. Management are in a unique journal entries; position to perpetrate fraud because of their ability to manipulate accounting records and  reviewing accounting estimates for prepare fraudulent financial statements by indications of bias; and overriding controls that otherwise appear to be  evaluating any unusual or one-off operating effectively. Auditing standards require transactions, including those with related us to treat this as a risk on every audit. parties.

Please tell us about any additional matters we should consider, or any specific risks that we have not covered. Additional risks may also emerge during the audit. These risks will be factored into our audit response and our reporting to you.

Fraud risk

Misstatements in the financial statements and performance information can arise from either fraud or error. The distinguishing factor between fraud and error is whether the underlying action is intentional or unintentional. In considering fraud risk, two types of intentional misstatements are relevant – misstatements resulting from fraudulent reporting, and misstatements resulting from misappropriation of assets.

The primary responsibility for the prevention and detection of fraud and error rests with the Council, with assistance from management. In this regard, we will discuss the following questions with you:

 What role does Council play in relation to fraud? How do you monitor management’s exercise of its responsibilities?

 Has a robust fraud risk assessment been completed? If so, is the Council satisfied that it had appropriate input into this process?

 How does management provide assurance that appropriate internal controls to address fraud risks are in place and operating?

 What protocols/procedures have been established between the Council and management to keep you informed of instances of fraud, either actual, suspected, or alleged?

 Are you aware of any actual, suspected, or alleged fraud? If so, have the results of management’s investigation been reported to Council? Has appropriate action been taken on any lessons learned?

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Our responsibility

Our responsibility is to obtain reasonable, but not absolute, assurance that the financial statements and performance information are free from material misstatement resulting from fraud. Our approach to obtaining this assurance is to:

 identify fraud risk factors and evaluate areas of potential risk of material misstatement;

 evaluate the effectiveness of internal controls in mitigating the risks;

 perform substantive audit procedures; and

 remain alert for indications of potential fraud in evaluating audit evidence.

The Auditor-General has published useful information on fraud that can be found at oag.govt.nz/reports/fraud-reports.

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Our audit process

Initial planning activities include verifying compliance with independence requirements and building the audit team.

We use our extensive sector and business knowledge to make sure we have a broad and deep understanding of the District Council, your business, and the environment you operate in.

We use our knowledge of the business, the sector and the environment to identify and assess the risks that could lead to a material misstatement in the financial statements and performance information.

We update our understanding of internal controls relevant to the audit. This includes reviewing the control environment, risk assessment process, and relevant aspects of information systems controls. Most of this work is done during the initial audit visits. We evaluate internal controls relevant to the audit for the whole financial year, so we consider internal controls relevant to the audit at all visits.

We use the results of the internal control evaluation to determine how much we can rely on the information produced from your systems during our final audit.

During the final audit we will be auditing the balances, disclosures, and other information included in the District Council’s financial statements and performance information.

We will issue our audit report on the financial statements and performance information. We will also report to the Council covering any relevant matters that come to our attention.

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Materiality

In performing our audit, we apply the concept of materiality. In the public sector, materiality refers to something that if omitted, misstated, or obscured could reasonably be expected to:

 influence readers’ overall understanding of the financial statements and performance information; and

 influence readers in making decisions about the stewardship and allocation of resources, or assessing your performance.

This definition of materiality is broader than the one used in the private sector.

Accounting standards also require the Council and management to consider materiality in preparing the financial statements. IFRS Practice Statement 2, Making Materiality Judgements, provides guidance on how to make materiality judgements from a financial statements preparer’s perspective. Although this guidance is primarily aimed at for-profit entities, the same principles can be applied by public benefit entities.

Whether information is material is a matter of judgement. We consider the nature and size of each item judged in the surrounding circumstances. The nature or size of the item, or a combination of both, could be the determining factor. Materiality will be lower for some items due to their sensitivity.

Misstatements

Misstatements are differences in, or omissions of, amounts and disclosures that may affect a reader’s overall understanding of your financial statements and performance information. During the audit, we will provide details of any such misstatements we identify to an appropriate level of management.

We will ask for each misstatement to be corrected, other than those that are clearly trivial. Where management does not wish to correct a misstatement we will seek written representations from representatives of the Council that specify the reasons why the corrections will not be made.

Professional judgement and professional scepticism

Many of the issues that arise in an audit, particularly those involving valuations or assumptions about the future, involve estimates. Estimates are inevitably based on imperfect knowledge or dependent on future events. Many financial statement items involve subjective decisions or a degree of uncertainty. There is an inherent level of uncertainty which cannot be eliminated. These are areas where we must use our experience and skill to reach an opinion on the financial statements and performance information.

The term “opinion” reflects the fact that professional judgement is involved. Our audit report is not a guarantee but rather reflects our professional judgement based on work performed in accordance with established standards.

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Auditing standards require us to maintain professional scepticism throughout the audit. Professional scepticism is an attitude that includes a questioning mind and a critical assessment of audit evidence. Professional scepticism is fundamentally a mind-set. A sceptical mind-set drives us to adopt a questioning approach when considering information and in forming conclusions.

Exercising professional scepticism means that we will not accept everything we are told at face value. We will ask you and management to provide evidence to support what you tell us. We will also challenge your judgements and assumptions and weigh them against alternative possibilities.

How we consider compliance with laws and regulations

As part of the Auditor-General’s mandate, we consider compliance with laws and regulations that directly affect your financial statements or general accountability. Our audit does not cover all of your requirements to comply with laws and regulations.

Our approach involves first assessing the systems and procedures that you have in place to monitor and manage compliance with laws and regulations relevant to the audit. We may also complete our own checklists. In addition, we will ask you about any non-compliance with laws and regulations that you are aware of. We will evaluate the effect of any such non-compliance on our audit.

Wider public sector considerations

A public sector audit also examines whether:

 the District Council carries out its activities effectively and efficiently;

 waste is occurring or likely to occur as a result of any act or failure to act by the District Council;

 there is any sign or appearance of a lack of probity as a result of any act or omission by the District Council or by one or more of its members, office holders, or employees; and

 there is any sign or appearance of a lack of financial prudence as a result of any act or omission by the District Council or by one of more of its members, office holders, or employees.

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Reporting protocols

Communication with management and the Council

We will meet with management and the Council throughout the audit. We will maintain ongoing, proactive discussion of issues as and when they arise to ensure there are “no surprises”.

Reports to the Council

We will provide a draft of all reports to the Council and management for discussion/clearance purposes. In the interests of timely reporting, we ask management to provide their comments on the draft within 10 working days. Once management comments are received the report will be finalised and provided to the Council.

We will also follow up on your progress in responding to our previous recommendations.

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Audit logistics

Our team

Our senior audit team members are:

John Whittal Appointed Auditor

Leon Pieterse Engagement Quality Control Review Director

Stephen Usher Audit Manager

Kelly Vatselias Assistant Manager

The Engagement Quality Control Review (EQCR) Director forms an important part of our internal quality assurance process to maintain and enhance the quality of your audit. The EQCR Director is an experienced Audit Director who has sufficient and appropriate experience to objectively evaluate the judgements made by the audit team. They are independent from the day to day audit field work, and so can provide an independent challenge to the audit team on their judgements. The EQCR will work with your Appointed Auditor and the audit team, but will not have direct contact with you.

Timetable

Our proposed timetable is:

Interim audit begins 8 July 2019

Draft report to Council issued 31 July 2019

Draft financial statements and performance information available for 4 October 2019 audit (including notes to the financial statements) with actual year-end figures and performance results

Final audit begins 7 October 2019

Annual report available, including any Chair and Chief Executive’s 14 October 2019 overview or reports

Final annual report available, incorporating all the amendments agreed to 25 October 2019 between us

Audit opinion issued By 31 October 2019

Draft report to Council issued By 31 October 2019

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Expectations

For the audit process to go smoothly for both you and us, there are expectations that each of us need to meet.

Our respective responsibilities are set out in our Audit Engagement Letter.

We expect that:

 you will provide us with access to all relevant records and provide information in a timely manner;

 staff will provide an appropriate level of assistance;

 the draft financial statements, including all relevant disclosures, will be available in accordance with the agreed timetable;

 management will make available a detailed workpaper file supporting the information in the financial statements; and

 the annual report, financial statements and performance information will be subjected to appropriate levels of quality review before being provided to us.

To help you prepare for the audit, we will liaise with management and provide them with a detailed list of the information we will need for the audit.

Health and safety

The Auditor-General and Audit New Zealand take seriously their responsibility to provide a safe working environment for audit staff.

Under the Health and Safety at Work Act 2015, we need to make arrangements with management to keep our audit staff safe while they are working at your premises.

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We expect you to provide a work environment for our audit staff that minimises or, where possible, eliminates risks to their health and safety. This includes providing adequate lighting and ventilation, suitable desks and chairs, and safety equipment where required. We also expect management to provide them with all information or training necessary to protect them from any risks they may be exposed to at your premises. This includes advising them of emergency evacuation procedures and how to report any health and safety issues.

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www.auditnz.govt.nz PO Box 99 Wellington 6140 Phone: 04 496 3099

Masterton DC Audit Plan 19J signed.docx 502

169/19 To: Audit & Risk Committee

From: David Paris, Manager Finance

Endorsed by: Kath Ross, Chief Executive

Date: 21 August 2019

Subject: Rates Receivable Report

FOR INFORMATION Recommendation: That the Committee receives the Rates Receivable Report (169/19) to 30 June 2019.

Purpose The purpose of this report is to provide Council with detailed information on 30 June 2019 position with respect to rates collection and arrears. Executive Summary 67% of the Council’s revenue is sourced from property rates. The Council also collects the Greater Wellington Regional Council’s rates levied on Masterton District properties. In 2018/19 $38.56 million was levied as rates. This includes GST, GWRC rates and penalties. At the 30 June 2019 $483,685 was unpaid, down 10.5% from last year. Unpaid rates are 1.3% of the total levied in 2018/19, down from 1.5% a year ago. The graphs show a very stable level of rates arrears over the last four years. This is a very positive result considering the amount levied has increased each year. The current year reduction in arrears value is matched by a reduction in the number of properties that have rate arrears. The number of properties with an overdue balance at the 30 June has still declined from 573 last year to 516 at 30 June 2019. Other information in the attached tables relates to the percentage of properties paying rates by Direct Debit, the number of properties receiving emailed rates notices and the number of ratepayers receiving the Government rates rebate (8.66% of all rateable properties).

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Rates Receivable Report to 30 June 2019 As At 30 June As At 30 June 2019 Target 2018 Gross Rates Levied (Incld GST, GWRC & penalties) $38,561,420 $36,051,809 Prior Years rate arrears unpaid $17,274 $41,029 Current Year rates unpaid $466,411 $499,624 Total Rates Receivable $483,685 $540,653 Rates receivable as % of levied 1.3% <2% 1.5% % of current year rates instalments collected 98.8% >97% 98.6% % of prior years rate arrears collected 96.8% >90% 92.0% Value of rates paid in advance of current instalment 682,357 664,987 Penalties charged (after penalty remissions) 195,868 205,850 Rates remissions given (per policies) 159,730 142,773

Quarterly Rates Receivable Movements Current Year Arrears $ Prior Years Arrears 1,000,000 Total Rates Arrears 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 -

$ Year End Rates Receivable 1,000,000 5.0% Prior Years 900,000 4.5% 800,000 4.0% 700,000 3.5% 600,000 3.0% 500,000 1.9% 2.5% 1.8% 1.7% 400,000 1.6% 1.5% 1.5% 2.0% Current Year 300,000 1.3% 1.5% 200,000 1.0% 100,000 0.5% 0 0.0% 504

No. Properties In Credit, Paid in Full, In Arrears 12,000 10,641 10,595 10,873 10,613 10,672 10,000 In credit 8,000 Paid in full 6,000

4,000 Have arrears

2,000 1,302 1,372 1,260 1,297 1,312 686 624 566 573 516 0Above updated 2015 2016 2017 2018 2019

Over the last five years, the percentage of properties paid in full or in credit has moved from 95.4% to 95.9% Rates arrears value is 1.30% of total rates levied as at 30 June 2019 (including GST & GWRC rates). By number, a total of 516 properties (4.1%) have upaid rates of $10 or more (last year 573, 4.6%). The average rates levied (including GWRC & GST) was $3,021 (last year $2,901) up 4.1% from 2017/18. The average rate arrears (excluding the 2 largest ratepayers in arrears) is $886 (last year $876).

Arrears value + $7000 $3001‐$7000 $2001‐$3000 $1001‐$2000 $301‐$1000 $ 10‐$300 No. of properties (2019) 2 20 52 91 158 195 No. of properties (2018) 3 23 51 112 174 210 No. of properties (2017) 3 26 46 86 202 203 Arrears value (2019) $28,316 $79,403 $130,445 $128,129 $96,280 $20,956 Ave. arrears value (2019)$ 14,158 $ 3,452 $ 2,558 $ 1,144 $ 553 $ 100 Ave. arrears value (last yr)$ 13,450 $ 3,997 $ 2,294 $ 1,431 $ 607 $ 118 Trend in average arrears 5% ‐14% 12% ‐20% ‐9% ‐15%

Properties: 12,500 properties were rated in 2018/19. Direct Debits: 5,748 ratepayers are paying their rates via direct debit which is 46% (last yr 45.4%) Email Notices: 2004 ratepayers are receiving emailed rates notices which is 16% (last yr 14.2%) Rates Rebates: During 2018/19, 1,082 ratepayers applied and were eligible for rate rebates under the criteria established by the Dept of Internal Affairs. A total of $625,777 in rates was paid by the Government on behalf of those qualifying ratepa The average rebate received was $578.35 (last year $565.61) 505

170/19 To: Audit & Risk Committee

From: David Paris, Manager Finance

Endorsed by: Kath Ross, Chief Executive

Date: 21 August 2019

Subject: Treasury Management Report

FOR INFORMATION Recommendation: That the Committee receives the Treasury Management Report as at 30 June 2019.

Investments & Borrowing Report to 30 June 2019 Purpose The purpose of this report is to provide Council with detailed information on 30 June 2019 position with respect to the Councils investments and debt. Executive Summary At 30 June 2019 the Council had $22.15 million of investment funds held in a range of financial instruments. Some $4.4 million of that is working funds that are held in call accounts and on short term deposits. $8.6 million is held in sovereign and high-grade bond funds (managed by ANZ Investments Ltd). Of the balance of $9.2 million, 91% is invested in term deposits.

The Bond Fund investments produced a very healthy 7.92% return for the year after interest rate markets moved lower and the bond portfolio value increased. Average interest earnings on the lower dated term deposits was 3.69%.

External term debt was $50 million at 30 June 2019, with the new debt that the Council needed to raise to fund the capital works programme came from internal borrowing/investment. The Council’s debt portfolio is managed within policy limits and as at 30 June 2019 all indicators show compliance with policy.

The following pages provide detailed information of the investments, investment returns, debt and the costs of that debt versus the Plan and policy limits. 506

Investments Report For the Year to 30th June 2019 The table below reports the changes in the balance of investment funds held by the Council and the return that has been achieved on those funds. The following page lists in detail the investments by type. Internally ANZ Investments Managed Fixed Interest Investment Funds Investments Bond Funds (excluding internal loans, shares and working funds on deposit) Opening Balance as at 1 July 2018 8,524,822 7,965,750 Gross Interest to 30 June 2019 327,200 Bond funds income 627,595 Unrealised gains/(losses) Net Investment Income to 30 June 2019 327,200 3.69% 627,595 7.88% Capital additions/(withdrawls) 342,751 ‐ Balance as at 30th June 2019* $ 9,194,773 $ 8,593,345

Working funds (short term deposits and call a/c) 4,361,970 2.36% Total funds invested (managed internally) $ 13,556,743 Total funds invested (incl externally managed) $ 22,150,088 Funds management fees (20,668) 0.25% % return on funds over 12 mths 7.62% after fees Market Index for 12 mths to 30 June 2019 8.23%

Investment Returns Commentary Only one corporate bond (Fonterra) continues to be held directly by the Council. Bank term deposits have been the principal means of gaining a return on the $9.2m of reserve funds held and managed internally. Special funds returned 3.69% while District (working) funds returned an average of 2.36%.

The ANZ‐managed investment is in two bond funds ‐ the Sovereign Bond Fund and High Grade Bond Fund. Bond markets moved higher after the Reserve Bank cut the OCR interest rate to 1.5% in June. Bond investments perform well in an environment of steady or declining interest rates. Returns from these funds were 7.62% for the year (after fees). That is below the market index return of 8.23%. The overall return on investment funds is 5.57% (before fees). Last year was 3.96%.

Investment Policy Compliance

The policy compliance information below refers to the investment and working funds managed in‐house. Policy (% of internal portfolio) as at 30 June 19 LGFA bonds <35% Met 6.5% Bank deposits 0 ‐ 100% Met 74.9% Total deposits no more than $6m with any one bank Met met Corporate & Bank Bonds <35% Met 0.4% Corporate Bonds rated BBB no more than 5% Met 0.4% no more than $0.5m with single issuer Met no bonds less than BBB Met Externally managed funds < $12m Met $8.59m Wairarapa Building Society (WBS) < 15% Met 11.2% WBS no more than $2.0m Met $ 1.52m 507

INVESTMENTS HELD DATE: 30 June 2019 Yield/ DISTRICT FUND INVESTMENTS Interest Remaining Original Short Term Bank Deposits $ Rate Term Term Westpac ‐ Call a/c 541,970 1.50% call <3mths ANZ ‐ Call a/c 500,000 1.50% call <3mths ANZ deposit 1,000,000 1.75% 22 days 24 days ASB deposit 2,000,000 2.20% 22 days 56 days WBS ‐ Wainuioru Water Supply 320,000 3.45% 123 days 9 mths Total District Fund Investments $ 4,361,970 SPECIAL FUNDS INVESTMENTS Short Term Bank Deposits WBS 1,200,000 3.45% 78 days 9 mths ANZ 450,000 3.38% 38 days 7 mths ANZ 700,000 3.18% 121 days 6 mths ANZ 2,500,000 3.40% 36 days 7 mths ASB 1,000,000 3.28% 100 days 6 mths BNZ 1,000,000 3.25% 88 days 92 days $ 6,850,000 Long Term Bank Deposits ASB 500,000 3.58% 15 days 1 year ASB 1,000,000 3.58% 20 days 1 year $ 1,500,000 Instrument Corporate Bonds (market value) Credit Rating Fonterra (A‐) perpetual bond BBB 60,000 4.01% perpetual NZ LGFA Borrower notes AA 784,773 2.20% 10mths ‐ 7.8 yrs $ 844,773 ANZ Investments ‐ Fund Managers Market (valued at market value) Performance Index High Grade Bond Fund 4,337,508 8.66% 8.23% Sovereign Bond Fund 4,255,837 7.17% 8.23% $ 8,593,345 7.92%

Total Special Funds Investments $ 17,788,118 5.61% Average Yield

Shares Civic Financial Services Ltd $ 194,662 No dividend NZ LGFA (LG Funding Agency) $ 100,000 5.14% Total Investments Under Management $ 22,444,750 Average Interest Rate at 30/6/19 (excl internal) 5.55%

Internal Loans/Investments $ 10,432,992 3.37% Analysis of Investment Terms Within All Funds (excl internal loans) Funds managed by MDC Policy Policy 25% 5,541,970 Current (less than 3 months) 5,541,970 40% 30% ‐ 80% yes 32% 7,248,434 Short term (3 months to 1 Yr) 7,248,434 52% 20% ‐ 70% yes 1% 235,849 Term (1 year ‐ 3 years) 235,849 2% 0% ‐ 50% yes 41% 9,123,835 Term (3 years plus) 530,490 4% 0% ‐ 20% yes 1% 294,662 Shares 294,662 2% 100% 22,444,750 13,851,405 100%

Mix of Financial Assets Held at Year End

35 Internal Loans 30

25 Shares 20 Corporate Bonds 15 Millions 10 Bank Deposits

5 ANZ Investments (fund 0 mgr) 2014 2015 2016 2017 2018 2019 At 30 June 2017 $5m extra was held to repaid a bond maturity in July 2017 508

Masterton District Council Interest Rate Position 12 Month Forecast Core Debt: 55.1 30-Jun-19 Policy Limits 55% - 90% Overall Fixed:Floating Mix 81% Policy Compliance Y Liquidity Ratio: 110% Actual 120% Policy Compliance Y Fixed Rate Maturity Profile: Years 1 - 3 years 3 - 5 years 5 - 10 years Policy Limits 15% - 60% 15% - 60% 15% - 60% Actual Hedging 23% 21% 56% Policy Compliance YY Y Funding Maturity Profile: Years 0 - 3 years 3 - 5 years 5 years plus Policy Limits 15% - 60% 15% - 60% 10% - 40% Actual Hedging 50% 20% 30% Policy Compliance YY Y Weighted Average Duration: Funding 3.19 Years Fixed Rate Portfolio (swaps and fixed rate loans) 4.88 Years Weighted average fixed rate on current borrower swaps*:

Swap Portfolio 4.36% * Note: non-active forward starts are not included. Counterparty Credit Risk (Interest Rate Risk Mgmt Instruments and investments) Policy Credit Limit (NZ$) per NZ Registered Bank (Interest rate risk management) $ 10,000,000 Policy Credit Limit (NZ$) per NZ Registered Bank (Investments) $ 6,000,000 Policy Credit Limit (NZ$) per Wairarapa Building Society (Investments) $ 2,000,000 Policy Credit Limit (NZ$) per NZ Registered Bank (Total maximum per counterparty) $ 16,000,000 Credit Exposure Credit Exposure Compliance (Swaps) (Investments) ($m) ($m) WPC 2.41 0.54 Y ANZ 5.13 5.15 Y ASB 0.00 4.50 Y BNZ 0.00 1.00 Y WBS 0.00 1.52 Y Interest Rate Risk Position The interest rate risk position visually represents the Council's interest rate position within approved interest rate control limits as set out in the treasury policy document. The chart takes a snapshot of the risk position as at the reporting date. The dark shaded part of the first graph shows the amount of debt which is fixed - (this includes fixed rate bonds together with payer swaps) meaning debt which gets repriced in one years time or later. The top of the yellow area represents the forecast debt in a year's time. The yellow area therefore illustrates the amount of debt deemed floating rate and will include any forecast debt that has not been pre-hedged. Any existing loans or financial instruments which will be repriced within the next 12 months are included in the red area. The key areas of focus are; Fixed Rate Percentage Limit: (wholesale interest rate certainty) The fixed rate percentage calculation is the total amount of fixed rate debt/interest rate hedges over the 12 month forecast net debt amount. Fixed rate is defined as having an interest rate resetting maturity/expiry date of greater than 12 months. 509

Fixed Rate Maturity Limits: (spreading of wholesale interest rate maturity risks) Fixed rate repricing maturity dates are spread based on defined maturity band limits, 1 - 3 years, 3 - 5 years and 5 - 10 years. Minimum and maximum percentage limits within each time band ensure a spread of maturities and reduces the risk of maturity concentrations. 510 511

171/19 To: Audit and Risk Committee

From: Kate Janes, Business Improvement Manager

Endorsed by: Kathryn Ross, Chief Executive

Date: 21 August 2019

Subject: Business Improvement Work Programme

FOR INFORMATION Recommendation: That the Audit and Risk Committee notes the update and indicative work plan to June 2020 contained in the Business Improvement Work Programme Report 171/19.

PURPOSE

The purpose of this report is to provide: (i) an update about the business improvement (BI) programme, and (ii) an indicative business improvement work plan to June 2020.

BACKGROUND

The Business Improvement Manager (BIM) commenced with Masterton District Council (MDC) on 15 April 2019. Between 22 April and 30 May, the BIM interviewed and/or sat in with approximately 40 staff. This included all staff in tier two positions and their direct reports. The objective was to identify opportunities to improve processes and systems.

INITIAL OBSERVATIONS AND OPPORTUNITIES FOR IMPROVEMENT

Broad common themes that arose were reported to SLT in a verbal update on 23 May 2019, opportunities to enhance current practices include: (i) Information management:  Refining information management processes, including automating some manual processes. (ii) Leadership:  Standardising approaches to coaching and performance management, meeting format and frequency, communication and dissemination of information.  Encouraging SLT members to delegate more and empower direct reports.  Refining SLT governance practices will enable better co‐ordination of organisational work planning, and mitigate reactive, unplanned work. (iii) Organisation:  Reviewing resource allocation to ensure that departments are resourced sufficiently and appropriately. 512

 Revising job descriptions to ensure they are comprehensive and up to date.  Ensuring clarity and specificity in relation to job titles and areas of responsibility.  Enhancing customer centricity in departments not traditionally thought of as customer service oriented, including the development of internal and external service level agreements, with clearly articulated expectations and performance indicators, to monitor and support this.

BUSINESS IMPROVEMENT WORK PROGRAMME

In addition to the broad themes above, a list of business improvement initiatives provided by SLT during a meeting on 16 April 2019 has been integrated into the BI work programme. The BIM will continue to use a concurrent top/down and bottom/up approach, by addressing strategic, organisational issues alongside SLT, while also analysing internal operational processes with staff. There is tension between quick wins, addressing short‐term problems, and investing in sustainable solutions to strategic problems. The BIM will meet with SLT and operational staff to regularly review and revalidate business improvement priorities. The BI work programme is subject to change as a result of emerging issues. An indicative work programme is attached. This is a living document that will be updated regularly.

LOCAL GOVERNMENT NEW ZEALAND (LGNZ) COUNCILMARK PROGRAMME

Masterton District Council is scheduled for reassessment in March 2020. The BIM will be co‐ ordinating the next assessment and will provide SLT with an update in September capturing changes and improvements made to date in relation to recommendations from the initial assessment. This update will also be made available to the Audit and Risk Committee.

SUPPORTING INFORMATION

Strategic, Policy and Legislative Implications Not applicable.

Significance, Engagement and Consultation The recommendation to receive this report does not trigger criteria under the significance and engagement policy.

Financial Considerations There are no specific financial considerations associated with this update.

Treaty Considerations/Implications for Māori There are no Treaty considerations or implications for Māori arising out of this report.

Communications/Engagement Plan Not applicable.

Environmental/Climate Change Impact and Considerations There are no environmental/climate change impact or considerations arising from this report. 513

BUSINESS IMPROVEMENT INDICATIVE WORK PROGRAMME 2019/20

FOCUS AREA 2 0 1 9 2 0 2 0

JULY AUG SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE PLANNING & BUILDING

Roles and responsibilities

Systems interface

Workflow management

Building consent process

Resource consent process

LIMs

ADMINISTRATION

Audit scope of activities

Triage 514

BUSINESS IMPROVEMENT INDICATIVE WORK PROGRAMME 2019/20

FOCUS AREA 2 0 1 9 2 0 2 0

JULY AUG SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE ADMINISTRATION cont.

Reporting and KPIs

Service requests

Call handling

FAQ/ database operation

ENVIRON. SERVICES

Envior sampling/ database operation

Business and events liaison

Dog registration process

Interdepartmental info transfer 515

BUSINESS IMPROVEMENT INDICATIVE WORK PROGRAMME 2019/20

FOCUS AREA 2 0 1 9 2 0 2 0

JULY AUG SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE FINANCE

AP/AR processes

Contract Management

Asset accounting

Payroll/leave

Reporting

PEOPLE & CAPABILITY

Prioritisation exercise

Measuring performance

Emergent activites 516

BUSINESS IMPROVEMENT INDICATIVE WORK PROGRAMME 2019/20

FOCUS AREA 2 0 1 9 2 0 2 0

JULY AUG SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE ICT

System integration

Online services

Remote access

ASSETS & OPERATIONS

RAMM & MagiQ integration

Reporting

COUNCILMARK

Update/ snapshot for SLT

PAF 517

BUSINESS IMPROVEMENT INDICATIVE WORK PROGRAMME 2019/20

FOCUS AREA 2 0 1 9 2 0 2 0

JULY AUG SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE COUNCILMARK cont.

Agenda & Briefing sessions

Assessment

STRATEGIC PLANNING

LTP/ AP process

COMMUNITY FACILITIES AND ACTIVITIES Emergent activity

Emergent activity

Emergent activity

518

172/19

To: Audit and Risk Committee

From: Tania Madden, Manager Strategic Planning

Endorsed by: Kathryn Ross, Chief Executive

Date: 21 August 2019

Subject: Privacy Policy and Enforcement Policy

INFORMATION Recommendation: That the Audit and Risk Committee: a. Endorses the Privacy Policy adopted by the Strategic Leadership Team on 25 July 2019; and b. Endorses the Enforcement Policy adopted by the Strategic Leadership Team on 25 July 2019.

Purpose The purpose of this report is to present the Privacy Policy and Enforcement Policy to the Audit and Risk Committee for endorsement.

Privacy Policy The purpose of the Privacy Policy is to ensure that Masterton District Council (MDC) meets its obligations under the Privacy Act 1993 (the Act). The policy was approved by the Strategic Leadership Team (SLT) on 25 July 2019. This is a new policy which has been developed with reference to the Act and guidance provided by the Office of the Privacy Commissioner. The policy outlines how MDC will adhere to the 12 privacy principles detailed in the Act, and includes: • assigning a position which will be responsible for the role of Privacy Officer; • how information will be collected and protected; • a clear procedure in the event of a privacy breach; and • a clear procedure to assess the privacy impact of any new product or service. The policy is provided with this report as Attachment 1. SLT have committed to ensuring all staff receive privacy training. This will be completed by the Human Resources team as part of their 2019-20 work programme.

Enforcement Policy The purpose of the Enforcement Policy is to ensure that MDC is consistent, appropriate and coordinated in its decision-making about compliance and enforcement. The policy was approved by SLT on 25 July 2019. Development of an Enforcement Policy was recommended following the independent assessment completed as part of the local government excellence programme in October 2017. 519

The policy provides principles that will be applied to decision-making across MDC’s various business areas that have enforcement responsibilities. The policy is deliberately high level so it can be applied broadly across all areas. It is supported by Standard Operating Procedures within the different teams. The policy is provided with this report as Attachment 2.

SUPPORTING INFORMATION

Strategic, Policy and Legislative Implications The policies ensure that MDC takes a strategic approach to adhering to privacy requirements and making enforcement decisions.

Significance, Engagement and Consultation This matter does not trigger MDC’s Significance and Engagement Policy.

Financial Considerations Enforcement costs are included within regulatory operational budgets. The Privacy Policy does not have a financial impact, however there will be a cost associated with staff time required to complete training.

Treaty Considerations/Implications for Māori MDC manages its records in recognition of Te Tiriti o Waitangi and acknowledges the right of Māori to access, use and reuse records that are taonga. MDC must balance the right to access with protecting the privacy of individuals under the Privacy Act 1993. The Enforcement Policy acknowledges that offences against legislation, regulations or bylaws may have significant implications for Māori, particularly where those impacts are environmental. The policy requires that the impact on Māori be considered when determining the appropriate enforcement action and if prosecution is undertaken, where applicable, an impact statement be sought from affected Iwi.

Communications/Engagement Plan The Privacy Policy and Enforcement Policy will be published on MDC’s website. While these are internal policies, publishing them gives assurance to our community that the information MDC holds is protected, and to provide transparency in our enforcement approach.

Environmental/Climate Change Impact and Considerations No environmental or climate change considerations have been identified. 520 ATTACHMENT 1

Privacy Policy

Applicable to: All employees Issued by: Chief Executive Policy Number: MDC036 Last Approved: 25 July 2019 Review Date: 25 July 2024 Contact Person Human Resources Advisor 521

CONTENTS

Purpose ...... 1 Scope ...... 1 Privacy Principles ...... 1 Privacy Officer ...... 1 Collection of Personal Information ...... 2 Privacy Notice ...... 2 Website Customers ...... 2 Protection of Information ...... 2 Security ...... 2 Protecting Information outside MDC Offices ...... 2 Access to and Correction of Personal Information ...... 3 Information Sharing ...... 3 Approved Information Sharing Agreement ...... 3 Disposing of Information ...... 3 Privacy and Technology ...... 3 External Emails ...... 3 Internal Emails ...... 4 Remote Access ...... 4 Portable Storage Devices ...... 4 Cloud Computing and Remote Storage ...... 4 Mobile Phones and Tablets ...... 4 Personal Devices ...... 4 Privacy Breaches ...... 4 Privacy Impact Assessments ...... 4 Training and Awareness ...... 5 Complaints ...... 5 Consequences for Breach of Policy ...... 5 Liability under the Privacy Act ...... 5 Responsibilities ...... 5 Review of Policy ...... 5 Definitions ...... 5 Related Documents ...... 6 References ...... 6 Version Control ...... 6

Last Approved: 25 July 2019 522

PURPOSE The purpose of this policy is to define the approach Masterton District Council (MDC) will take to the collection, storage and protection of personal information.

SCOPE This policy applies to all personal information that MDC collects and holds.

PRIVACY PRINCIPLES MDC collects, stores and protects personal information in alignment with the 12 principles set out in the Privacy Act 1993. In summary, these principles are: 1. Personal information can only be collected for a lawful purpose connected with a function or activity of MDC. The collection of personal information must be necessary for that purpose. 2. Personal information must be collected directly from the individual concerned, unless reasonable grounds, as stated in the Act apply. 3. When an individual provides information about themselves, all reasonable steps must be taken to ensure the person is aware that the information is being collected, the purpose for the collection, who will use it, where it will be held and their rights of access and correction. 4. Personal information must not be collected by unlawful means, i.e. in circumstances that are unfair or unreasonably intrude upon the individual’s personal affairs. 5. Personal information must be kept secure and protected against loss, unauthorised access, modification or disclosure and any other misuse. 6. Individuals are entitled to access any information held about them, where the information is easily retrievable. 7. An individual can request the correction of information about themselves and MDC is required to make the correction where it is reasonable to do so. 8. Information collected must not be used before taking reasonable steps to ensure it is accurate, up to date, complete, relevant and not misleading. 9. Personal information shall not be kept for longer than required for the purposes for which it may lawfully be used. 10. Personal information collected for one purpose cannot be used for another purpose unless reasonable grounds as defined in the Act apply. 11. Personal information cannot be disclosed without the authorisation of the individual concerned, unless reasonable grounds as defined in the Act apply. 12. Personal information must not be stored with a unique identifier unless this is necessary for MDC to carry out its function efficiently.

PRIVACY OFFICER MDC has a Privacy Officer who is the subject matter expert on privacy and helps ensure that MDC complies with the Privacy Act 1993. The Privacy Officer role is delegated to the Human Resources Advisor.

Last Approved: 25 July 2019 Page 1 of 6 523

COLLECTION OF PERSONAL INFORMATION MDC collects personal information lawfully, fairly and only when necessary to provide a quality service to its customers and to carry out business functions efficiently. MDC collects information from: • ratepayers and residents in the collection of rates and delivery of services; • customers who access the MDC website; and • MDC employees and candidates in the administering of human resource business activities.

Privacy Notice When collecting information, MDC will take all reasonable steps to ensure the individual is aware of: • what information will be collected and the reason for its collection; • how that information will be collected; • who will be given access to the information and in what form; • how records will be stored securely and protected against unauthorised access; • their right to access and request the correction of information held about them; and • when and how the collected information will be destroyed. If MDC wishes to use the information for a purpose not originally disclosed, the information will not be used for the new purpose until consent has been obtained from the individual.

Website Customers MDC’s website has a privacy statement that clearly states to users what information is collected, how it is collected and what it will be used for.

PROTECTION OF INFORMATION

Security MDC takes all reasonable steps to protect the personal information it holds from loss, unauthorised access, modification, disclosure and any other misuse. Steps that MDC takes to protect information include: • storing personal information on restricted drives and systems; • restricting access to personal information to employees who need that information to undertake their role; • prohibiting personnel from taking detailed reports and documents containing personal information about any person outside the office without written approval from a manager; • establishing clear rules around the use of personal information and technology (refer Privacy and Technology below); • storing hardcopies of personal information in securely; • providing secure destruction bins for disposing of hard copies of confidential information; and • having clear processes for record management (refer Record Management Policy).

Protecting Information outside MDC Offices Where it is critical that personal information be taken outside the office and manager approval to do so has been obtained, employees are responsible for protecting that information. The following precautions are required: • where possible, personal information should be accessed from MDC’s network via a Virtual Private Network (VPN); • where possible, the information should only be viewed on an approved MDC device; • personal information must be transported securely, preferably on a password protected device; • personal information must never be left unattended in a public area; and • all reasonable steps must be taken to prevent unauthorised people viewing the information, including family members.

Last Approved: 25 July 2019 Page 2 of 6 524

ACCESS TO AND CORRECTION OF PERSONAL INFORMATION Individuals have the right to request: • access to any personal information MDC holds about them; • a correction to personal information MDC holds about them; and • if a correction is requested but not completed, that MDC attach a statement to the original information saying what correction was sought but not made.

MDC is responsible for: • ensuring information is readily retrievable; • providing reasonable assistance to the individual who made the request; and • dealing with the request immediately where possible and no later than 20 working days after the day on which the request was received by MDC. MDC will provide an individual with their personal information unless the grounds for refusal as stated in the Privacy Act 1993 (Part 4) apply. All requests for personal information must be immediately forwarded to the Privacy Officer and are logged on the Privacy Register.

INFORMATION SHARING MDC will not disclose personal information to any external organisations unless: • the disclosure of the information is one of the original purposes for which the information was collected; • the source of the information is publicly available; • the disclosure is authorised by the individual; • the information will be used in a way in which the individual cannot be identified; • it is allowed under other current legislation; • there is an Approved Information Sharing Agreement in place (see below); or • any other reasonable ground applies as defined in Principle 11 of the Privacy Act 1993 e.g. law enforcement or to prevent a serious threat to public health or safety.

Approved Information Sharing Agreement MDC may elect to share information with other organisations via an Approved Information Sharing Agreement (see Part 9A of the Privacy Act 1993). At least one of the agencies involved in the agreement must be a public sector agency that is a department, or part of a department.

DISPOSING OF INFORMATION MDC will keep personal information only as long as it is required for the purposes for which it may lawfully be used. MDC maintains a Record Management Policy and a Retention and Disposal Schedule to control the disposal of information. Where particular types of personal information have retention requirements under the Public Records Act 2005, that requirement takes precedence over the Privacy Act 1993.

PRIVACY AND TECHNOLOGY

External Emails Personal information must never be emailed (either in the body of an email or as an attachment) to a recipient outside the MDC network unless: • the email is addressed solely to the individual whose personal information is contained in the email; or • an individual has given explicit permission for their personal information to be emailed. Last Approved: 25 July 2019 Page 3 of 6 525

Internal Emails Personal information may be emailed internally within MDC, preferably via a hyperlink to the file’s location within the MDC network rather than as an attachment.

Remote Access When accessing email remotely, personnel must not open an attachment they know to contain personal information unless they are using an approved MDC device.

Portable Storage Devices Personal information must never be saved to a portable storage device (e.g. a USB flash drive) unless authorised by the Privacy Officer.

Cloud Computing and Remote Storage Personal information may be saved to any type of cloud computing or remote storage capability, where MDC considers that satisfactory security measures are in place. MDC will not adopt any new cloud service without completing a robust assessment of the privacy risks.

Mobile Phones and Tablets Personal information must not be saved to mobile phones or tablets, even if the device is owned by MDC. Contact details may be saved into the contact list, providing there is a business need to do so and the phone or tablet is secured with a pin number or password.

Personal Devices Personal information must not be saved to devices that are not owned by MDC. This includes, but is not limited to, laptops, desktop PCs, mobile phones and tablets.

PRIVACY BREACHES A privacy breach involves unauthorised access to, collection, use or disclosure of personal information. Activity is considered to be ‘unauthorised’ when it is in contravention of the Privacy Act 1993. Common examples of privacy breaches include: • lost or stolen laptops or paper records that contain personal information; • employees accessing or disclosing information outside their authorisation; • paper documents taken from rubbish or recycling bins; or • sending information to the wrong physical or email address. MDC will investigate all privacy breach reports. Where it is unclear whether a breach has occurred, it will be assumed that it has and a breach investigation will be initiated. Refer to the Privacy Breach Procedure for the process for reporting and investigating a privacy breach.

PRIVACY IMPACT ASSESSMENTS A Privacy Impact Assessment (PIA) is used to evaluate the impact that a new product, service or capability could have on privacy. It assesses the project’s compliance with the Privacy Act 1993, identifies privacy risks and mitigations and recommends steps to achieve compliance. A PIA will vary in level of detail depending on the size of the project and the extent to which personal data could be affected. Project managers are responsible for completing an appropriately scaled PIA for their project. Where a project is identified as being high risk, the project manager must submit the PIA to the Privacy Officer for review before proceeding. Refer to the Privacy Impact Assessment Procedure for guidance.

Last Approved: 25 July 2019 Page 4 of 6 526

TRAINING AND AWARENESS MDC will provide appropriate training to all employees to develop and maintain a culture of privacy awareness throughout the organisation.

COMPLAINTS Any complaint made regarding privacy will be dealt with under MDC’s Compliments and Complaints Policy.

CONSEQUENCES FOR BREACH OF POLICY Any employee who does not comply with the requirements of this policy may be subject to disciplinary action, in accordance with the disciplinary procedures stated in their employment agreement.

LIABILITY UNDER THE PRIVACY ACT Liability under the Privacy Act 1993 extends to both the employee and the employer. If an MDC employee offends against the privacy principles, both the employee and MDC may be liable to answer to the Privacy Commissioner or the Human Rights Review Tribunal.

RESPONSIBILITIES All Employees are responsible for understanding and complying with their obligations under this policy. MDC’s Privacy Officer is responsible for: • being familiar with the principles of the Privacy Act 1993 and any other legislation that governs what MDC can and can’t do with personal information; • advising managers on how to ensure business practices comply with privacy requirements; • investigating complaints or potential privacy breaches; • managing responses to enquiries made to MDC about personal information; • advising on the privacy implications of new projects and programmes; • overseeing staff privacy training; and • being a liaison point for the Privacy Commissioner. All Managers are responsible for: • ensuring their employees are aware of this policy and how it impacts their work; and • escalating any suspected privacy breach to the Privacy Officer for investigation. All Project Managers are responsible for completing an appropriately scaled PIA to evaluate the impact that a new product, service or capability could have on privacy. The Strategic Leadership Team and Chief Executive are responsible for: • providing guidance to and overseeing the activities of the Privacy Officer; • ensuring staff receive appropriate training in privacy matters; • ensuring that any business changes needed to prevent a major privacy incident are completed in a timely fashion; • monitoring the implementation and effectiveness of this policy.

REVIEW OF POLICY This policy will be reviewed every five years.

DEFINITIONS Personal Information: Any information that is held about an identifiable person that is of a personal nature that could be used to identify that person.

Last Approved: 25 July 2019 Page 5 of 6 527

RELATED DOCUMENTS MDC Privacy Register Personal Information Register Privacy Breach Procedure Privacy Impact Assessment Procedure

REFERENCES Privacy Act 1993 Local Government Official Information and Meetings Act 1987 Public Records Act 2005 Human Rights Act 1993 Employment Relations Act 2000

VERSION CONTROL Version Date Summary of Amendments Approved By 1 25/7/2019 New policy. Strategic Leadership Team

Last Approved: 25 July 2019 Page 6 of 6 528 ATTACHMENT 2

Enforcement Policy

Applicable to: All employees Issued by: Chief Executive Policy Number: MDC015 Last Approved: 25 July 2019 Review Date: 25 July 2020 Contact Person Manager Strategic Planning 529

CONTENTS

Purpose ...... 1 Scope ...... 1 Strategic Compliance Approach ...... 1 Compliance Monitoring ...... 1 Principles of Compliance and Enforcement ...... 2 Enforcement Pathway ...... 3 Stage 1: Immediate Response to Significant Adverse Effects ...... 4 Stage 2: Gather Information ...... 4 Stage 3: Enforcement Decision ...... 4 Enforcement Options ...... 5 Who Can Make the Decision? ...... 6 Iwi Involvement in Enforcement Decisions ...... 6 Independent Legal Review ...... 6 Evaluating Effectiveness ...... 6 Recordkeeping and Reporting ...... 6 Review of Policy ...... 7 Definitions ...... 7 Related Documents ...... 7 References ...... 7 Version Control ...... 7

Last Updated: 25 July 2019 530

PURPOSE The purpose of this policy is to ensure that Masterton District Council (MDC) applies a consistent, appropriate and coordinated approach when making decisions about compliance and enforcement.

SCOPE This policy applies to all legislation, regulations and bylaws where MDC has a responsibility for enforcement. Refer to Appendix 1 for a list of the main legislation where MDC has enforcement obligations. This policy is supplemented, where necessary, by more detailed documents, which set out the specific procedures and standards for carrying out compliance monitoring, incident response and enforcement activities.

STRATEGIC COMPLIANCE APPROACH MDC takes a broad-spectrum approach to encourage the highest levels of compliance, targeting interventions according to the individual’s or group’s willingness to comply, and the seriousness of the offence. This approach is illustrated in the compliance pyramid1 below. At the bottom of the pyramid are those who are willing to comply, and at the top are those who resist compliance. The pyramid is designed to create downward pressure i.e. to move those who are non-compliant down the pyramid to full compliance, where lower level and less costly interventions can be utilised. Applying the available enforcement options outlined in the model provides clear direction to our community on the expectations and likely response from MDC to those failing to comply.

Compliance Monitoring Where monitoring requirements are not stated in consent conditions, legislation, regulations, or or other national standards, the Compliance Monitoring Guideline (refer Appendix 2) should be used to assist in determining appropriate monitoring frequencies.

1 Adapted from Queenstown Lakes District Council’s Enforcement Strategy and Prosecution Policy. Last Updated: 25 July 2019 Page 1 of 7 531

PRINCIPLES OF COMPLIANCE AND ENFORCEMENT MDC will adhere to the following principles2 when carrying out enforcement activities.

Transparency We will provide clear information and explanation to the regulated community about the standards and requirements for compliance. We will ensure that the community has access to information about industry environmental performance, as well as actions taken by us to address environmental issues and non-compliance.

Consistency of Process Our actions will be consistent with the legislation and within our powers. Compliance and enforcement outcomes will be consistent and predictable for similar circumstances. We will ensure that our staff have the necessary skills and are appropriately trained, and that there are effective systems and policies in place to support them.

Fair, Reasonable and Proportionate Approach We will apply regulatory interventions and actions appropriate for the situation. We will use our discretion justifiably, and ensure our decisions are appropriate to the circumstances and that our interventions and actions will be proportionate to the risks posed to people and the environment and the seriousness of the non-compliance.

Evidence-based We will use an evidence-based and informed approach to our decision-making. Our decisions will be informed by a range of sources, including sound science and information received from other regulators, members of the community, industry and interest groups.

Collaborative We will work with and, where possible, share information with, other regulators and stakeholders to ensure the best compliance outcome for our regions. We will consider public interest and engage with the community and consider public interest, those we regulate, and government to explain and promote environmental requirements, and achieve better community and environmental outcomes.

Lawful, Ethical and Accountable We will conduct ourselves lawfully, impartially and in accordance with these principles and relevant policies and guidance. We will document and take responsibility for our regulatory decisions and actions. We will measure and report on our regulatory performance.

Outcome-focused We will focus on the most important issues and problems to achieve the best environmental outcomes. We will target our regulatory intervention at poor performers and illegal activities that pose the greatest risk to the environment. We will apply the right tool for the right problem at the right time.

Responsive and Effective We will consider all alleged non-compliance to determine the necessary interventions (using a risk-based approach) and actions to minimise impacts on the environment and the community and maximise deterrence. We will respond in an effective and timely manner in accordance with legislative and organisational obligations.

2 Ministry for the Environment. (2018). Best Practice Guidelines for Compliance, Monitoring and Enforcement under the Resource Management Act 1991.

Last Updated: 25 July 2019 Page 2 of 7 532

ENFORCEMENT PATHWAY MDC’s response to non-compliance will be largely dependent on several factors, including the need to deal with any ongoing adverse environmental effects, risk of continuing offending and the seriousness of the offence. The diagram below provides an overview of MDC’s typical process in response to matters of non- compliance, from discovery of an offence through to the decision to take enforcement action.

NOTIFICATION Non-compliance may be detected through a complaint, monitoring or a major incident

IMMEDIATE RESPONSE TO SIGNIFICANT ADVERSE EFFECTS (IF ANY)

AUTHORISED OFFICER ASSIGNED TO CONDUCT INVESTIGATION

GATHER INFORMATION (INVESTIGATION) May include site inspection, sampling, measu ring, photographing, interviewing people and expert advice

ENFORCEMENT DECISION Decision is made by an Authorised Officer (except prosecution) Decision to prosecute is made by the Chief Executive

ENFORCEMENT OPTIONS ENFORCEMENT OPTION: PROSECUTION No further enforcement action Education and engagement Directive action Punitive action (excluding INDEPENDENT LEGAL REVIEW prosecution)

DISTRICT COURT Determines guilt, imposes sentence and makes orders

Last Updated: 25 July 2019 Page 3 of 7 533

Stage 1: Immediate Response to Significant Adverse Effects Upon discovery, the initial response will be to assess the actual or potential effects, if any, resulting from the offence. Significant adverse effects will require an immediate response prior to any other action. For example, this may include: • a full pollution prevention response in order to prevent further serious environmental damage from starting or continuing; • an immediate closure in the case of a serious food safety or suitability risk3; or • seizure of an offending animal in the case of a dog attack.

Stage 2: Gather Information An investigation will be conducted to confirm the circumstances, identify how and why the breach occurred, and enable informed decisions to be made. The depth and scope of the investigation will be dependent on the seriousness of the incident. Investigation activities may include: • undertaking a site visit to collect information and/or potential evidence such as samples, photographs, measurements or ecological assessments; • interviewing people about what they know about the incident; and • seeking advice from independent experts.

For less serious matters, it may be sufficient to write to the offending party, requiring written explanation why the offence occurred and the circumstances behind it. In more serious matters, the investigation will be more in depth and detailed witness statements will be obtained. In this circumstance, liable parties will be interviewed under formal caution. Note: Notwithstanding the above, MDC may proceed directly to enforcement action, including prosecution, where the circumstances support this.

Stage 3: Enforcement Decision Deciding on the appropriate enforcement response is often complicated by a range of factors. In order to make a sound and justifiable decision, it is essential that all relevant issues surrounding the matter are carefully considered, prior to any enforcement action being taken. Factors to consider are; • What actual or potential adverse effects have or could occur from the breach/what is the actual or potential extent of harm? • What is the value or sensitivity of the environment affected by the breach? • Was the environment affected by the breach of significance to iwi? • What is the level of public interest in the breach? • Was the breach a result of deliberate, negligent or careless behaviour? • What degree of care was taken by the liable party, and how foreseeable was the incident? • What efforts were made by the liable party to remedy or mitigate the effects of the breach? • How effective was that remediation or mitigation? • Was any profit or benefit gained from the breach by the liable party? • Was the incident a repeat non-compliance by the liable party or has previous enforcement action been taken against the party for the same or similar breach? • Has the liable party failed to act on prior instructions, advice or notice? • Is there a degree of specific deterrence required in relation to the alleged offender? • Is there a need for a wider general deterrence required in respect of this activity or industry? • Is the decision to prosecute (or not prosecute) in line with the Solicitor General’s guidelines?

Not every factor will be relevant every time. Each case is unique and the individual circumstances need to be considered on each occasion to achieve a fair and reasonable outcome.

3 For serious food safety risks, the Ministry of Primary Industries will always be advised. Last Updated: 25 July 2019 Page 4 of 7 534

ENFORCEMENT OPTIONS MDC has a broad range of enforcement options available to address matters of non-compliance. The tools that apply to the different regulatory functions are illustrated in the table below. The tools can be categorised into three main types: • Informal actions: focused on providing education and incentive-based responses to allow the person or organisation to become better informed and develop their own means to improved compliance; • Directive actions: focused on looking forward, giving direction and righting the wrong; and • Punitive actions: focused on looking back and holding people accountable for what they have done.

Building Planning & Environmental Food Alcohol Noise Animal Bylaws Resource Health Control Consents

Informal Actions Education &         Engagement Directive Actions Letter of Direction/         Warning Excessive Noise  Direction Notice  to Fix Improvement  Notice Food Safety  Direction Abatement     Notice Enforcement  Order Compliance  Order Negotiated        Settlements Punitive Action Formal Warning        Infringement         Notice Suspension or Cancellation of  Registration Prosecution        

Selecting the appropriate enforcement response will depend on such factors as the seriousness of the offence, the significance of adverse effect on people and/or the environment, the liable party’s previous offences and the level of remorse shown by the offender. A brief description of each of the relevant tools, impacts on the liable party, and the circumstances when MDC might use these tools, are provided in Appendix 3.

Last Updated: 25 July 2019 Page 5 of 7 535

WHO CAN MAKE THE DECISION? The Authorised Officer assigned to investigate the matter will decide on the appropriate enforcement action, in consultation with other Authorised Officers. A decision to prosecute must be approved by the Chief Executive. A decision to prosecute under the Food Act 2014 will be made in consultation with the Ministry of Primary Industries.

IWI INVOLVEMENT IN ENFORCEMENT DECISIONS The impact on iwi will be considered when determining the appropriate enforcement action. Where a prosecution is undertaken, MDC will approach affected iwi for an impact statement, which will form part of the fact for court proceedings.

INDEPENDENT LEGAL REVIEW An independent legal review is required before a prosecution is initiated. This review will consider the matter in its entirety. The review applies an evidential test and public interest test.

Evidential Test The first part of the test is the evidential test for prosecution and requires a legal assessment of whether: • the evidence relates to an identifiable person (whether natural or legal); • the evidence is credible; • MDC can produce the evidence before the court and it is likely it will be admitted by the court; • the evidence can reasonably be expected to satisfy an impartial jury (or Judge), beyond a reasonable doubt, that:

o the individual has committed a criminal offence; o the individual has given any explanations; and o if so, whether the court is likely to find the explanations credible in the light of the evidence as a whole; and • there is any other evidence MDC should seek out which may support or detract from the case.

Once it has been established that there is sufficient evidence to provide a reasonable prospect of conviction, the test for prosecution requires a consideration of whether the public interest requires a criminal prosecution.

Public Interest Test The second part of the test for prosecution is the public interest test, which is important for ensuring that the discretion to prosecute is exercised in accordance with the rule of law and any relevant statutory requirements (refer to Appendix 2).

EVALUATING EFFECTIVENESS All enforcement action undertaken by MDC will be evaluated for effectiveness in achieving the desired outcome. In both successful and unsuccessful actions where further enforcement action was required, it is useful to examine what was effective or not, what could have been improved or changed to make the process more effective.

RECORDKEEPING AND REPORTING MDC will keep records of all compliance and enforcement activity, in accordance with the requirements of the relevant Act.

Last Updated: 25 July 2019 Page 6 of 7 536

REVIEW OF POLICY This policy will be reviewed initially after one year, to assess its effectiveness. Subsequent reviews will be every five years.

DEFINITIONS Authorised Officer: Any officer or agent appointed by MDC as an enforcement officer under the LGA or the Land Transport Act 1998, or an Environmental Health Officer under the Health Act 1956. Compliance: Adherence to the legislation, regulations and bylaws under which MDC has responsibilities to enforce. Enforcement: Action undertaken by MDC in response to an offence. Offence: An action of non-compliance.

RELATED DOCUMENTS Chief Executive and Staff Delegations Manual

REFERENCES Ministry for the Environment. (2018). Best Practice Guidelines for Compliance, Monitoring and Enforcement under the Resource Management Act 1991. Compliance and Enforcement Special Interest Group (2016). Regional Sector Strategic Compliance Framework 2016-2018. Crown Law. (2013). Solicitor-General’s Prosecution Guidelines.

VERSION CONTROL Version Date Summary of Amendments Approved By 1 25/7/19 New policy. Strategic Leadership Team

Last Updated: 25 July 2019 Page 7 of 7 537

APPENDIX 1: LEGISLATION WITH ENFORCEMENT REQUIREMENTS

The main legislation where MDC has responsibility for enforcing regulatory requirements are listed below. Note: that this is not a complete list.

• Building Act 2004 • Burial and Cremation Act 1964 • Criminal Procedure Act 2011 • Dog Control Act 1996 • Food Act 2014 • Freedom Camping Act 2011 • Gambling Act 2003 • Health Act 1956 • Impounding Act 1955 • Land Transport Act 1998 • Litter Act 1979 • Local Government Act 2002 • Local Government Act 1974 • Machinery Act 1950 • Public Works Act 1981 • Reserves Act 1977 • Resource Management Act 1991 • Sale and Supply of Alcohol Act 2012 • Summary Proceedings Act 1957 • Trespass Act 1980

Last Updated: 25 July 2019 Appendix 1 538

APPENDIX 2: COMPLIANCE MONITORING GUIDELINE MDC uses a risk-based approach to compliance monitoring to target activities where that have a higher risk of non-compliance, or where non-compliance will have a more severe risk of harm to people and/or the environment. This approach enables MDC to: • prioritise limited resources according to the level of risk associated with an activity; • target activities and areas where non-compliance is most likely; and • have robust and transparent decision-making.

Risk Matrix The risk matrix below can be used to assess the level of risk associated with regulated activities. Activities that are likely to be compliant, and where the impact of non-compliance is expected to be insignificant or minor, have a low level of risk. Conversely, activities have a high level of risk where non- compliance is more likely, and the impacts of non-compliance may be severe.

Consequence of non-compliance

Insignificant Minor Moderate Major Severe (1) (2) (3) (4) (5)

Almost Certain Minor Moderate Moderate High High

(5) (5) (10) (15) (20) (25)

Likely Minor Minor Moderate Moderate High (4) (4) (8) (12) (16) (20) compliance - Moderate Low Minor Minor Moderate Moderate (3) (3) (6) (9) (12) (15)

Unlikely Low Minor Minor Minor Moderate (2) (2) (4) (6) (8) (10)

Likelihood of non Rare Low Low Low Minor Minor (1) (1) (2) (3) (4) (5)

The following factors will be considered when determining the likelihood of non-compliance: • The scale and complexity of the activity. • The historical compliance history of similar activities. • The compliance history of the business or person being regulated.

The following factors will be considered when determining the likely consequence of non-compliance: • The environmental aspect involved (air, land, water, coastal marine area). • The impact on the environment from the operation when it operates within the conditions of the consent. • The impact on the environment when the operation does not operate within the conditions. • The sensitivity of the local environment, such as the proximity to residential premises or waterways, or areas of cultural significance.

Other factors that may be relevant include: • Regional Plan priorities • Environmental monitoring programme priorities. • National regulations. • Council and community priorities. • Stakeholder priorities to determine. Last Updated: 25 July 2019 Appendix 3 539

Determining Monitoring Frequency The frequency of compliance monitoring may be guided by national requirements (e.g. water regulations) and resource consent conditions (e.g. some resource consents will specify a monitoring frequency and/or require the submission and review of various monitoring reports on an annual, or more frequent, basis). Where no guidance is available, the risk score can be used to set the compliance monitoring frequency, as illustrated in the table below.

Risk Score Monitoring Frequency

17-25 High – Quarterly Inspection

10-16 Moderate – Six-Monthly Inspection

4-9 Minor – Annual Inspection

1-3 Low Risk – No Default Inspections

Last Updated: 25 July 2019 Appendix 3 540

APPENDIX 3: ENFORCEMENT TOOLS

Informal Actions

Action Description of action Potential impact/s When might this action be on the liable party appropriate Education & To prevent further breaches, or This is a non- When dealing with cooperative Engagement to remedy or mitigate the formal process parties, who are motivated to effects of non-compliance, and as such has no do the right thing but lack the MDC can provide information or legal implications. knowledge or skills necessary guidance around rules and to achieve and maintain regulations or provide compliance. assistance to enable parties to achieve compliance.

Directive Actions

Action Description of action Potential impact/s When might this action be on the liable party appropriate Letter of To prevent further breaches, or Direction is not When dealing with cooperative Direction/ to remedy or mitigate the legally parties, who are motivated to Warning effects of non-compliance, enforceable. follow the direction, and where MDC can give a written the breach is of a minor nature, direction for a party to take or consistent with a breach that cease a particular action. would perhaps also receive a formal warning. Excessive A binding notice that requires If a direction is not Used in urgent cases where Noise excessive noise to be reduced complied with, noise is causing immediate Direction to a reasonable level. Directions officers can seize nuisance. Usually in response can apply for a period of up to and remove, to complaint from a member of 72 hours and can be given render inoperable the public e.g. a burglar alarm is verbally or in writing. or make unusable, sounding continuously, or a any device causing noisy party continues to an excessive noise. unreasonable hour. Notice to Fix A formal, written directive Direction is legally Where a building warrant of drafted and served by MDC, enforceable. fitness and/or compliance instructing a specified person Breaching a schedule requirements in the to correct an instance of non- Notice to Fix is an Building Act have not been compliance with the Building offence and adhered to or when a Building Code and/or Building Act. exposes liable Consent is not obtained for The form and content of the parties to punitive building work that requires a notice are specified in the action. consent. Building Act. Improvement A formal, written directive Interruption of Can be issued for problems with Notice drafted and served by MDC to food business cleaning and sanitation, any person that is failing or has trading. maintenance (including repair failed to comply with the Food If the notice is not and replacement), pest Act 2014, or its associated actioned, can management or food handling/ legislation and instruments. escalate to a processing. Compliance Order.

Last Updated: 25 July 2019 Appendix 3 541

Directive Actions

Action Description of action Potential impact/s When might this action be on the liable party appropriate Food Safety A formal, written directive Interruption, Where required to ensure the Officer drafted and served by MDC to restriction or safety and suitability of food. Direction any person that is failing or has closure of food failed to meet requirements to business trading. ensure the safety and suitability Food Safety of food. Officers can seize, condemn or require disposal of food or a food- related accessory. Abatement A formal, written directive Direction is legally Where there is a risk of further Notice drafted and served by MDC, enforceable. breaches of environmental instructing an individual or Breaching an regulation or remediation or organisation to cease an Abatement Notice mitigation is required as a activity or requiring them to do is an offence and result of non-compliance. something. exposes liable parties to punitive action. Enforcement Offers more options than an Breaching an When an Abatement Notice has Order Abatement Notice, including Enforcement not been complied with, as the ability to recover clean-up Order is an another way of achieving costs incurred, or likely to be offence and compliance. incurred, in avoiding, exposes liable remedying or mitigating any parties to punitive adverse effect on the action. environment. Compliance MDC can apply to a District Order is legally Where it is necessary to Order Court for a Compliance Order. enforceable. prevent or mitigate serious The Court may issue a Breaching a danger to public health or Compliance Order for anything Compliance Order where an Improvement Notice that, in the Court’s opinion, is an offence and has not provided sufficient breaches or is likely to breach exposes liable incentive to a business to the Food Act 2014. parties to punitive address an issue of legislative action. non-compliance. Negotiated An individual or organisation Typically requires Will only be agreed to if it is in Settlements may approach MDC with a the applicant to the public interest. proposal for settlement. admit that they MDC is unlikely to agree to a MDC is open to resolving non- have breached the negotiated settlement where compliance by agreement, law, cease the the non-compliance has caused where a remedy is possible and non-compliant serious harm, the applicant is a where this is prompt, easily conduct, pay repeat offender or actively implemented and in the public compensation, resists compliance. interest. pay MDC’s costs and may involve some publicity

Last Updated: 25 July 2019 Appendix 3 542

Punitive Actions

Action Description of action Potential impact/s When might this action be on the liable party appropriate Formal A letter to a culpable party No further action When: Warning informing them that an offence will be taken in • an administrative, minor or against an Act or regulation has respect of that technical breach has been committed, and that they breach. occurred; and are liable. The warning will • the environmental effect, or form part of a potential effect, is minor or history of non- trivial in nature; and compliance and • the subject does not have a will be considered history of non-compliance; if there are future and offences. • the matter is one which can be quickly and simply put right; or • a written warning would be appropriate in the circumstance. Infringement A written notice which requires No further action When: Notice the payment of a fine. The will be taken in • there is prima facie (on the amount of the fine is set in the respect of that face of it) evidence of a relevant legislation. breach. legislative breach; and The infringement • a one-off or isolated forms part of a legislative breach has history of non- occurred which is of minor compliance and impact and which can be will be considered remedied easily; and if there are future • where an infringement notice offences. is considered to be a sufficient deterrent. Suspension or A temporary or permanent The business will Where the food business food Cancellation removal of registration. no longer be able control plan or national of to trade in food. programme is no longer Registration effective or meets the requirements of the Food Act. Where there is an ongoing, critical non-compliance by a food business. Prosecution A prosecution is a process A successful Where the matter is sufficiently taken through the criminal prosecution will serious to warrant the courts to establish guilt or generally result in intervention of the criminal law. innocence and, if appropriate, a conviction and a Consideration will be given to the court will impose sanctions. penalty imposed. the Solicitor-General’s Matters are heard in either the A prosecution Prosecution Guidelines 2013 District Court or Environment forms part of a (refer Appendix 3). Court, depending on the Act. history of non- All criminal evidence rules and compliance and standards must be met. will be considered if there are future offences.

Last Updated: 25 July 2019 Appendix 3 543

APPENDIX 4: SOLICITOR-GENERAL’S PROSECUTION GUIDELINES

Listed below are some of the key public interest considerations for and against a decision to prosecute4.

Public Interest Considerations in Support of Prosecution • The predominant consideration is the seriousness of the offence. The gravity of the maximum sentence and the anticipated penalty is likely to be a strong factor in determining the seriousness of the offence. • Where the offence involved serious or significant violence; • Where there are grounds for believing that the offence is likely to be continued or repeated, for example, where there is a history of recurring conduct; • Where the defendant has relevant previous convictions, diversions or cautions; • Where the defendant is alleged to have committed an offence whilst on bail or subject to a sentence, or otherwise subject to a Court order; • Where the offence is prevalent; • Where the defendant was a ringleader or an organiser of the offence; • Where the offence was premeditated; • Where the offence was carried out by a group; • Where the offence was an incident of organised crime; • Where the victim of the offence, or their family, has been put in fear, or suffered personal attack, damage or disturbance. The more vulnerable the victim, the greater the aggravation; • Where the offender has created a serious risk of harm; • Where the offence has resulted in serious financial loss to an individual, corporation, trust person or society; • Where the defendant was in a position of authority or trust and the offence is an abuse of that position; • Where the offence was committed against a person serving the public, for example a doctor, nurse, member of the ambulance service, member of the fire service or a member of the police; • Where the defendant took advantage of a marked difference between the actual or developmental ages of the defendant and the victim; • Where the offence was motivated by hostility against a person because of their race, ethnicity, gender, sexual orientation, disability, religion, political beliefs, age, the office they hold, or similar factors; • Where there is any element of corruption.

Public Interest Considerations against Prosecution • Where the Court is likely to impose a very small or nominal penalty; • Where the loss or harm can be described as minor and was the result of a single incident, particularly if it was caused by an error of judgement or a genuine mistake; • Where the offence is not on any test of a serious nature, and is unlikely to be repeated; • Where there has been a long passage of time between an offence taking place and the likely date of trial such as to give rise to undue delay or an abuse of process unless:

o the offence is serious; or o delay has been caused in part by the defendant; or o the offence has only recently come to light; or o the complexity of the offence has resulted in a lengthy investigation. • Where a prosecution is likely to have a detrimental effect on the physical or mental health of a victim or witness;

4 Crown Law (2013). Solicitor-General’s Prosecution Guidelines. Last Updated: 25 July 2019 Appendix 4 544

• Where the defendant is elderly; • Where the defendant is a youth; • Where the defendant has no previous convictions; • Where the defendant was at the time of the offence or trial suffering from significant mental or physical ill-health; • Where the victim accepts that the defendant has rectified the loss or harm that was caused (although defendants should not be able to avoid prosecution simply because they pay compensation); • Where the recovery of the proceeds of crime can more effectively be pursued by civil action; • Where information may be made public that could disproportionately harm sources of information, international relations or national security; • Where any proper alternatives to prosecution are available (including disciplinary or other proceedings).

Last Updated: 25 July 2019 Appendix 4 545

173/19 To: Audit and Risk Committee

From: Vicki McLachlan, People and Capability Manager

Endorsed by: Kathryn Ross, Chief Executive

Date: 21 August 2019

Subject Health & Safety Quarterly Report

INFORMATION Recommendation: That the Audit and Risk Committee receives the Health & Safety report (173/19) for the fourth quarter (1 April to 30 June 2019).

Please note that this is a new report format to provide enhanced information to assist those at governance level to meet their due diligence requirements.

1. Purpose Under the Health and Safety at Work Act 2015, all elected members are deemed ‘officers’ and must exercise a duty of due diligence in relation to health andty. safe These quarterly reports provide information to assist elected members to carry out that role.

2. Background Council as a Person Conducting a Business or Undertaking (PCBU) must ensure, so far as is reasonably practicable, the health and safety of Council’s employees or contractors (including their subcontractors), and that other people are not put at risk by our work. This includes visitors to our workplaces and members of the public who could be affected by the work we do.

3. Commentary on proactive activity for this quarter  A ‘toolkit’ has been created to use with each work group: o H&S continuum to assess where the work group believe they are operating o Contractor risk definitions o Risk assessment o Questionnaire to assess performance across key H&S areas  Meetings are being undertaken with representatives in each work group (workers and managers).  A ‘snapshot’ is being collated to indicate where each group is currently, where the gaps are and what actions need to be taken to move up the H&S continuum (see below).  Actions produced and followed up with each work group and identified hazards entered onto overall MDC hazard register for action and monitoring.  Work groups met with to date include Library, Customer Services, Aerodrome, Environmental Services, Animal Services and Properties & Facilities. 546

4. Due diligence summary

MDC OFFICERS H&S DUE DILIGENCE PLAN MONITORING

Objectives Status

The Strategic Leadership Team (SLT) is updated as a standing item at each SLT meeting. A new item on the H&S Committee agenda is 'Requests/issues to KNOW Keep up-to-date with health and safety matters be considered by SLT' - these are also tabled under  the standing item on SLT agenda, encouraging visible top-down leadership and engagement in the H&S process.

Top 5 organisational risks have been identified and progress is being made towards managing these. Understand the nature of the Council's business Top 5 risks per work group are being identified UNDERSTAND and its hazards and risks through 1-1 meetings with key stakeholders in each  work group (ongoing). Hazard & risk register being updated as we work on these with each work group. An external H&S Consultant is contracted for one day a week to work with HR, SLT and workers. Ensure the person running the Council has Further HR resource has enabled more focus by RESOURCE appropriate resources and processes to People & Capability Manager on H&S. H&S  manage risks to health and safety Committee has excellent representation across all work groups and committee members are highly engaged. Investigations are completed for all reported incidents, accidents and near misses. The H&S Ensure there are appropriate reporting and system (GOSH) update ensures work group manager MONITOR investigation processes in place is in copy of, and required to take action on all of  these in conjunction with People and Capability Manager. Processes are being reviewed across all work groups in consultant with subject matter experts. Ensure the Council has and implements processes The ongoing message to staff and managers is that COMPLY for complying with duties under the HSWA H&S is everyone's responsibility (not just the  Act 2015 committee and HR) and that all workers and managers are expected to give H&S high priority across all activities carried out by Council.

The new reporting format commencing this quarter seeks to provide more relevant, proactive information as to where MDC is now and where we Verify resources and processes in this plan are in VERIFY want to be in terms of H&S. The focus is on assuring place and in use  that everything practicable is being done to ensure there is no harm to workers, contractors and other stakeholders.

547

5. Safety Framework A safety framework is being used to show what various levels of safety maturity look like, assist in discussions and assessment of strengths and areas for improvement, and to provide a starting point for the development of our health and safety system.

Work groups engaged with to date rate themselves between ‘Reactive’ or ‘Proactive’ (depending on work group). Our intention is to work towards ‘Best in Class/Generative’ across MDC.

548

6. Top 5 Health and Safety Risks Organisation‐wide The diagram below shows our top five organisational risks as identified by H&S representatives across all work groups. Individual work group risks are being mapped against this and, while they vary with role, work group or site‐specific risks, these top 5 remain common themes.

Once the action planning around each of these is scoped, it is the intention for each of these 5 risk area projects to be sponsored by a member of the Strategic Lership ead Team (SLT) to ensure top‐ down leadership and championing in these areas of health and safety.

549

TOP 5 HEALTH & SAFETY RISKS ORGANISATION-WIDE - COMMENTARY & UPDATE

A work plan is to be produced to address these risks. This includes Working near roads, driving consideration of annual drivers licence checks, better strategies and VEHICLES, DRIVING, including road conditions, vehicle communication with contractors working near roads, and a review of ROADS usage. procedures and training around use of vehicles (e.g. defensive driving, 4WD training, additional training on use of R/Ts)

Aggressive and abusive customer events still remain the highest category type. Initiatives in this area include: conflict resolution/difficult customer training, CCTV cameras and body worn cameras, response strategies, peer and professional support.The majority of customer- DEALING WITH Violence, mental health issues, facing MDC staff have attended personal safety and conflict de- CUSTOMERS conflict escalation training (over 50 in total). A second round of workshops is to be initiated for new staff (or those who missed first round) as this training received extremely positive feedback from participants and anecdotal feedback tells us they have used the tools learnt in workplace situations.

Further work is being done in this area and is being assessed by work group as the needs vary. Body cameras & dashboard cameras are used Knowing where people are, that by Animal Services, but staff rely on family monitoring them outside of WORK ALONE/ IN they are accounted for, tracking hours - solutions to be reviewed. Customer Services, Public Toilet ISOLATION (PERSONAL when out of the office for safety Custodian and Library all have 'panic buttons' but there is no procedure SAFETY) purposes, after hours, working around what happens if activited - rectification currently in progress. alone, etc. Key is making sure we have two-way communications systems that suit the needs of each work group. Ongoing consultation with each team will inform what the risk is and the required solutions. Further work is being undertaken in contractor management this year. A CONTRACTOR Consultation, cooperation, risk-based approach will be used to classify contractors which will MANAGEMENT coordination and monitoring inform how we engage, work with and report back for each of them. MDC Employee assistance programme (EAP) continues to provide a workplace service with their representative visiting work sites regularly and being available to staff who have issues they wish to discuss. Fatigue (physical & mental), time Bullying & harassment procedure recently updated. Training to be STRESSORS pressure, bullying, harassment, provided to all staff. Enhanced resourcing in areas where staff were mental health under significant time pressure is expected to have a positive effect, and process reviews being undertaken by the Business Improvement Manager.

7. Other risks Asbestos management Asbestos management remains an organisational health and safety risk (albeit rated ‘low’) and we therefore will continue to report on this to the committee within the new reporting format.

Reports have been received for priority sites, with some remedial work identified. A proposal has been received with three options for the assessing the balance of our property portfolio.

A workplan for remediation of sites identified to date is under development, with budget and recommendation to be approved by SLT.

550

Other work risks While there is an emphasis on mitigating our top 5 risks, work continues to be done around mitigating other risks as they are identified (through staff reporting of risks and through proactive H&S assessments being carried out with each work group).

8. Indicators

a. Definitions

ACCIDENTS, INJURIES, INCIDENTS Term Definition Notifiable injury and illness and serious harm. Worksafe definitions as Serious Harm Injury (SH) outlined in the HSW Act. Includes fractures, amputation, loss of consciousness and other serious injuries. Also includes fatalities. Where an injury occurs and the person is attended to by a health Medical Treatment Injury (MT) professional (physio, doctor, hospital, etc) Where an injury occrs and either first aid equipment is used or first aid First Aid Injury (FA) measures applied Where pain or discomfort is felt, sometimes from gradual process Pain & Discomfort Report injuries or from injuries, where no first aid was applied (such as bruise or headache) Where an event occurred where someone narrowly missed being Non-injury incident/Near Miss harmed. No physical injury or illness has occurred.

b. Lag indicators

These indicators measure our performance in the form of past statistics.

2019-20 Incident Type Q4 Jun 19 Q1 Sep 19 Q2 Dec 19 Q3 Mar 20 Serious Harm Injury (SH) 1 Medical Treatment Injury (MT) 1 First Aid Injury (FA) 1 Pain & Discomfort Report 0

Commentary

All accidents or injuries that have been notified via GOSH must be reviewed by the appropriate manager as well as the H&S Committee, who must be satisfied that appropriate action has been taken to reduce the likelihood of future incidents.

Serious Harm Injury Hood Aerodrome accident in June. 2 fatalities. MDC supporting investigations and staff. Medical Treatment Injury EAP rep fainting spell in office. Ambulance called. First Aid Injury Minor 551

9. Lead Indicators Lead indicators are proactive in nature and look at regular activity carried out to prevent accidents, injuries and/or incidents and control risk.

Near miss reporting is an effective way of identifying safety weaknesses or issues before they lead to consequences (a potential warning that a serious incident is waiting to happen and an opportunity to learn and to prevent the incident from happening again). However, please note that Near Misses are classified as lead indicators as they help identify workplace hazards that can create risks leading to accidents. 2019-20 Incident Type Q4 Jun 19 Q1 Sep 19 Q2 Dec 19 Q3 Mar 20 Incident/Near Miss 9 Commentary All incidents/near misses that have been notified via GOSH must be reviewed by the appropriate manager as well as the H&S Committee, who must be satisfied that appropriate action has been taken to reduce the likelihood of future incidents. 4 x Library & 1 x Animal Services - behavioural issues with customers (mitigations include trespass notices), 1 x near miss on ped crossing, 1 x stressor (staff dealing with death of a community member Incidents/Near Misses during the course of their work), 1 x animal attack near miss, 1 x personal safety/security. Debriefs, risk management strategies completed for all of these.

552

174/19

To: Audit and Risk Committee

From: David Hopman, Manager Assets and Operations

Endorsed by: Kathryn Ross, Chief Executive

Date: 21 August 2019

Subject: NZTA Investment Audit Report

INFORMATION

Recommendation: That the Audit and Risk Committee: (a) notes the contents of the NZTA Investment Audit Report July 2019. (b) requests staff provide the Committee with regular updates on the implementation of the Audit Report’s recommendations.

PURPOSE The purpose of this report is to provide the Audit and Risk Committee with an overview of the latest NZTA Investment Audit and the actions arising from it.

NZTA Investment Audit Report

The latest NZTA Investment Audit report undertaken in May this year (see Attachment 1) has confirmed that Masterton’s road network is currently in an acceptable condition but there are there are signs that condition and performance are deteriorating. The report identifies a number of areas for improvement around safety, resilience and residual life of the roads.

The audit report identifies that the Council’s current Asset Management Plan (AMP) demonstrates a good understanding of the challenges facing the district and that the Council has made provision to increase roading spending in the current year by $2.3m (24%) from 2016/17 levels. Improved outcomes will also be assisted by the new maintenance contract that started in July, with its emphases on the areas identified in the AMP such as unsealed road stabilisation, footpath renewals, network inspection and asset data collection. Both the new maintenance contract and the increase in road maintenance spending will improve condition ratings over time, but the audit report notes that additional investment may be necessary in the future.

The main recommendation of the audit report is to focus on improving the 2021-31 Asset Management Plan with appropriate linkages to network condition data and addressing inaccuracies and inconsistencies. Full evaluation of the current condition and residual life of the network is recommended to effectively develop a long-term remedial programme and an ongoing maintenance programme set at an appropriate level of investment. 553

The audit also identifies 2017/18 as having a very poor crash history compared to the 5-year average. Data shows that the latest year has reverted to near the previous 5-year average, but this remains an area for improvement for the Council. An application has been made to NZTA for additional funding for a $1m safety improvement programme on the Masterton-Castlepoint road. Once approved, many of the issues raised in the audit will be addressed. Other audit recommendations include reviewing the current seal residual life forecasts and addressing specific issues at different network locations. The Council extended chip reseal durations based on historic performance data and NZTA advice. It may be that the life is being extended too far and this will be factored into the 2021-31 AMP development process. Issues identified at specific locations will also be addressed.

A summary of Council’s actions required to address the audit report issues are as follows:

1. Commit to producing a 2021-31 AMP that will spell out the most cost-effective programme to ensure a long-term resilient network that delivers transport outcomes at an appropriate level of service while minimising the whole-of-life asset cost. 2. Investigate suitable condition evaluations and predictive modelling on pavement, surfacing and roading assets to ascertain appropriate levels of renewals and to support the AMP’s evidential business case for long-term performance. 3. Develop and implement a consistent network delineation programme to improve the safety and consistent driving environment during both day and night. 4. Undertake joint network inspections with the new maintenance contractor at regular intervals to align condition expectations and monitor implementation of repairs; and to formalise the use of RAMM to facilitate the programming of network maintenances. 5. Ensure compliance with the Transport Agency funding rules requiring Road Safety Audits for all renewal and improvement projects, ensure that appropriate temporary hazard warning devices are put in place on network faults/hazards and that temporary traffic management is appropriate to the situation. 6. Undertake the safety improvement programme on the Masterton-Castlepoint road and assess issues raised at specific network location in the report.

Strategic, Policy and Legislative Implications

1. To obtain NZTA funding for Council’s Roading Activity council has to follow the legal planning processes set out in the Land Transport Management Act and meet NZTA’s Investment Assessment Criteria.

2. The audit will inform the development of Council’s roading programme, the 2021-31 LTP, Infrastructure Strategy and Roading Asset Management Plan.

Significance This matter does not trigger Council’s Significance and Engagement Policy. 554 ATTACHMENT 1

While every effort has been made to ensure the accuracy of this report, the findings, opinions, and recommendations are based on an examination of a sample only and may not address all issues existing at the time of the audit. The report is made available strictly on the basis that anyone relying on it does so at their own risk, therefore readers are advised to seek advice on specific content. 555

* Please see Introduction for Rating Assessment Classification Definitions

Completed

Dec 2020

Dec 2020 (ref Council comment on R3.1)

Implemented

Implemented

Dec 2020

556

Implemented and ongoing

Immediately

Dec 2019 (for strategy development)

Immediate and ongoing 557

     558

Data quality.

Declining roading network

Intensification of forestry and farming industry Safety & challenging topography Resilience 559

560 561 562 563 564

   

565

Communities at Risk Register 566

Traffic Control Devices

Code of Practice for Temporary Traffic Management Traffic Control Devices 567

568 569

570

571

Richard Leverington, Senior Manager Risk & Assurance