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Masterton District Council Agenda Audit and Risk Committee

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Masterton District Council Agenda Audit and Risk Committee MASTERTON DISTRICT COUNCIL AGENDA AUDIT AND RISK COMMITTEE WEDNESDAY 8 FEBRUARY 2017 AT 2.00PM MEMBERSHIP OF THE COMMITTEE Philip Jones (Chairperson) Her Worship the Mayor Cr G McClymont Cr B Goodwin Cr D Davidson Cr J Dalziell Cr C Peterson Quorum: Three Venue: Waiata House 27 Lincoln Road Masterton RECOMMENDATIONS IN REPORTS ARE NOT TO BE CONSTRUED AS COUNCIL POLICY UNTIL ADOPTED 2 February 2017 1 AGENDA ITEMS CONFLICTS OF INTEREST (Members to declare conflicts, if any) APOLOGIES 1. MINUTES OF PREVIOUS MEETING TO BE RECEIVED (198/16) Pages 401-404 FOR INFORMATION 2. FIRST QUARTER AND SIX MONTHLY REPORTS (001/17) Pages 411-414 a) Aratoi Regional Trust – Second Quarter Report Pages 415-422 b) Destination Wairarapa – Second Quarter Report Pages 423-433 c) Connecting Communities – Six Monthly Report Pages 435-438 d) Sport Wellington Wairarapa – Six Monthly Report Pages 439-448 3. SECOND QUARTER NON-FINANCIAL REPORT (002/17) Pages 450-459 4. FRAUD AND CORRUPTION INVESTIGATION PROCEDURE (003/17) Pages 460-466 5. SECOND QUARTER COMMENTARY AND FINANCIAL STATEMENTS (004/17) Pages 470-496 MATTERS TO BE TAKEN WITH THE PUBLIC EXCLUDED Under section 48 (1) of the Local Government Official Information and Meetings Act 1987 the following matters will be taken with the public excluded :- Minutes of the previous meeting held 30 November 2016. 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 Reason for passing Ground(s) under section matter to be this resolution in 48(1) for the passing of this considered relation to each matter resolution Minutes of Previous See pages 403-404 s48(1)(d) That the Meeting held 30 exclusion of the public from November 2016 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 ____________________________________________________________________ 401 198/16 REPORT OF THE AUDIT & RISK COMMITTEE MEETING HELD IN THE WAIRARAPA COMMUNITY CENTRE MEETING ROOM, 41 PERRY ST, MASTERTON ON WEDNESDAY 30 NOVEMBER 2016 AT 2.05PM PRESENT Philip Jones (Chair), Mayor L Patterson, Councillors D Davidson, J Dalziell, B Goodwin, G McClymont, and C Peterson IN ATTENDANCE Chief Executive, Manager Finance, Manager Strategic Planning, Manager Assets and Operations, Manager Community Facilities and Activities, Economic Development Programme Manager and advisor, one media representative and Governance Advisor. CONFLICT OF INTEREST No conflicts were declared. APOLOGIES There were no apologies. MINUTES OF PREVIOUS MEETING TO BE RECEIVED (142/16 - pages 401-405) Moved by Councillor G McClymont That the minutes of the Audit and Risk Committee meeting held 24 August 2016 be received. Seconded by Councillor C Peterson and CARRIED. DELEGATIONS POLICY AND GOVERNANCE DELEGATIONS MANUAL (192/16) The Manager Strategic Planning spoke to the report seeking the endorsement of the Committee for the Delegations Policy and Governance Delegations Manual to be adopted by Council. The delegations were based on the delegations previously in place but had been changed to reflect the new committee structure. Delegations under the Rating Act were discussed. Those delegations could only be delegated by council to a staff member with no sub-delegation allowed. The delegations under the Rating Act needed to be added to the document under Clause 4.18 - delegation to Chief Executive, the Manager Finance and the senior rates officer With the leave of the meeting, the resolution was amended to reflect the amendments required in relation to the Rating Act. Moved by Councillor B Goodwin That the Audit and Risk Committee recommends Council adopt the Delegations Policy and Governance Delegations Manual included in Attachments 1 and 2 of report 192/16 as amended to include delegations required under the Rating Act. Seconded by Councillor G McClymont and CARRIED Note to Minutes: the following changes have been made to the MDC Governance Delegations Manual: 402 Insertion of clause 2.5 Under section 132 of the Local Government (Rating) Act (2002) the Council delegates the exercise of functions, powers or duties conferred by this Act, to the Chief Executive, the Manager Finance and the Revenue Manager. This delegation is specific to the administration of rates collection, rates eligibility, rates remissions and relief from paying rates. Amendment to clauses 5.5 and 5.6 The Civil Defence Emergency Management Group Joint Committee has been moved from 5.6 to 5.5 as it is not a Greater Wellington Regional Council Committee. FIRST QUARTER REPORTS - DESTINATION WAIRARAPA AND ARATOI (194/16) The report providing the first quarter reports and financial statements from Destination Wairarapa and Aratoi was taken as read. The new information provided in the Destination Wairarapa report, which set out the value of councils’ tourism spend with national and per head of population comparisons, was discussed. In relation to the Destination Wairarapa financial statements a request was made that in future reporting the annual budget is included in addition to the year to date figures. The Chief Executive will raise this directly with Destination Wairarapa. Moved by Councillor G McClymont That Council receives the quarterly reports and financial statements as at 30 September 2016 from Aratoi Regional Trust and Destination Wairarapa. Seconded by Councillor D Davidson and CARRIED PROGRESS REPORT: MONITORING OF POLICIES (193/16) The report providing an update on the key Masterton District Council policies monitored by the Committee was presented. The Fraud, Dishonesty and Corruption Control Policy was discussed and it was noted that the procedures for investigation were missing from the policy. It was advised that those procedures were in an appendix that hadn’t been included with the document. The procedures need to be brought back to Council for approval. It was advised that the Procurement Policy would be workshopped with Councillors in the new year before it came to the Audit and Risk Committee and then to Council for adoption. Moved by Philip Jones That the Audit and Risk Committee receives report 193/16, subject to the inclusion of procedures in relation to the investigation of fraud in the Fraud, Dishonesty and Corruption Control Policy and the removal of “beyond a level deemed reasonable by an individual’s manager” from bullet point 4 under ‘Misuse of Resources’ on page 2 of the policy. Seconded Councillor J Dalziell and CARRIED. FIRST QUARTER COMMENTARY AND FINANCIAL STATEMENTS (190/16) 403 The Manager Finance spoke to the report providing the first quarter financial statements and commentary and noted that the operating statement variances reported were genuine variances, rather than variances due to mismatched budget timing. Moved by Mayor L Patterson that the Audit & Risk Committee receives the 3 months to date financial report and commentary, incorporating the Rates Requirement Summary, Operating Statements, and Capital Expenditure Statement. Seconded by Councillor B Goodwin and CARRIED FIRST QUARTER NON-FINANCIAL REPORT (189/16) The first quarter non- financial report was presented, with all measures reported on being on target for the first quarter. It was noted that the annual report did have a number of areas where targets were not achieved. It was advised that there would be an opportunity to review non-financial measures as part of the LTP process. Moved by Mayor L Patterson that the Audit and Risk Committee receives the First Quarter Non‐Financial Performance Report for the 2016/17 financial year. Seconded by Councillor G McClymont and CARRIED SECTION 17 REVIEW UPDATE This report will be deferred to the Council meeting on 7 December. MATTERS TO BE TAKEN WITH THE PUBLIC EXCLUDED Moved by Councillor Goodwin – That the public be excluded from the following parts of the proceedings of the meeting of the Masterton District Council:- Minutes of the Previous meeting held 24 August 2016 Risk Management Framework Update Audit Management Report 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 Reason for passing Ground(s) under each matter to be this resolution in section 48(1) for considered relation to each the passing of this matter resolution _____________________________________________________________________ Minutes of the meeting held See page 405 s48(1)(d) 24 August 2016 That the exclusion 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 404 Risk Management Framework 7(2)(i) s48(1)(d) – Improvement Plan update The withholding of the That the exclusion of the information is necessary to public from the whole or the enable the local authority to relevant part of the carry on, without prejudice or proceedings of the meeting is disadvantage, negotiations necessary to enable
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