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 the local (including commercial and authority to deliberate in industrial negotiations). private on its decision or recommendation in any proceeding to which this paragraph applies Audit Management Report 7(2)(f)(ii) The withholding of s48(1)(d) the information is necessary That the exclusion of the to maintain the effective public from the whole or the conduct of public affairs relevant part of the through the protection of such proceedings of the meeting is members, officers, necessary to enable the local employees, and persons from authority to deliberate in improper pressure or private on its decision or harassment recommendation in any proceeding to which this paragraph applies

Seconded by Councillor D Davidson and CARRIED.

The public was excluded at 3.23 pm

The meeting returned to open session at 3.56 pm

The meeting concluded at 3.56 pm

411

001/17 To: Audit and Risk Committee

From: Andrea Jackson, Manager Community Facilities and Activities

Endorsed by: Pim Borren, Chief Executive

Subject: Second Quarter Reports 2016

Date: 8 February 2017 Recommendation: That Council receives the quarterly reports and financial statements as at 31 December 2016 from Aratoi Regional Trust, and Destination Wairarapa, and the six monthly reports from Connecting Communities Wairarapa and Sport Wellington Wairarapa.

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

Executive Summary Aratoi Regional Trust provides community infrastructure and a community service. Destination Wairarapa contributes to a Strong, Resilient Economy while Aratoi Regional Trust contribute to the arts economy. Connecting Communities Wairarapa and Sport Wellington Wairarapa contribute to an Active, Involved, Caring Community. Sport Wellington Wairarapa to provide regional wide leadership to the sport and active recreation community.

Aratoi Regional Trust The Regional Trust reports on: • No significant deviation from the exhibitions delivered as planned • Measure visitor numbers and establish a baseline. 80% visitor satisfaction achieved • Develop museum and historical collections and provide reports on cultural and/or significant objects • Balanced budget and at least 20% from external sources • Achieve over 2000 hours of volunteer labour

Visitor’s numbers and satisfaction In the second quarter of the 2016/17 year a total of 8,718 visits to the facility were recorded. This compares to 7,649 visitors for the second quarter last year. This is an increase on attendance from Quarter 2 2015/16 by 1,069 given the reduction in opening hours this is a positive result.

Balanced Budget At 31st December 2016 the Trust is recording a year to date deficit of $16,294 against a budget deficit of $27,998. Quarterly revenue is below budget by $36,526. Quarterly expenditure is recording a positive variance of $46,540.

Volunteers 412

Volunteer hours for the second quarter of the 2016/17 year totalled 1,000 hours.

Destination Wairarapa Destination Wairarapa deliverables are: (i) To increase the number of visitors to the Wairarapa, the length of time they stay in the region and the amount they spend. Specifically, DW are tasked with delivering 3% growth in tourism GDP per annum for each territory (Masterton, Carterton and South Wairarapa), with statistics sourced from Infometrics. This information to be reported as Wairarapa-wide and by each territory. (ii) That the percentage growth to tourism is comparable to Wellington and Taupo. (iii) To provide a balanced budget. (iv) To provide an online Wairarapa events calendar. (v) To report quarterly to the council, including attending council meetings. (vi) To have a joint partnership with Tourism New Zealand’s Business Events Team for at least one funded pitch per annum. (vii) To provide a clear marketing strategy including at least six workshops and/or networking events per annum.

Visitor Numbers Wairarapa’s growth has continued, particularly with international visitor guest nights up each month for the past 13 months. Year to date September 2016 international visitor guest nights are up 21% on previous year.

Domestic growth has also continued over the same period and has increased by 5.4%.

Balanced Budget No financial commentary received, or year to date financials. Staff have followed up with Destination Wairarapa.

Profit and Loss for the 1st October to the 31st of December 2016 shows gross profit of $515,471 and total operating and non-operating expenses of $665,626. This results in a deficit of $150,155.

Partnerships for Promotion and Product Development Destination Wairarapa continues to promote and support development of a number of products which includes; Castlepoint Tours, Rivenrock Mountain Bike Park, New Zealand Cycle Classic & Huri Huri.

Connecting Communities Wairarapa This report is for the period July 2016 to December 2016.

Connecting Communities reports on: • Proposals for addressing issues through MDC Community Development Task Group. o Neighbourhood support participation increased by 20%. o At least six youth-driven events per annum. o Two large community events attracting at least 500 people each o Four holiday programmes attracting at least 10 students each • Balanced budget and half-yearly reports • Community House programme improvements (i.e. at least eight successful programs, approved policies, at least three East-side projects initiated) • At least two neighbourhood plans 413

Neighbourhood support There has been a 16% increase in households joining Neighbourhood Support since July 2016. Focus areas have been on the rural groups and junior neighbourhood support.

Strong links have been established with Civil Defence, Fire and Police.

Youth development Considerable effort has been made to encourage young people to join The Youth Council, resulting in an increase in new members. The Youth Council meets fortnightly and members of the Youth Council attended a national conference.

Community Events Christmas in the Square was delivered in December with at least 500 people attending and plans are well underway for the Civic and Youth Awards.

Holiday Programmes Three holiday programmes have been delivered since July, the last programme was funded. Future consideration needs to be given to Connecting Communities Wairarapa’s on-going funding of the holiday programmes.

Neighbourhood Plans Two neighbourhood plans are underway for Lansdowne and Masterton East. • Masterton East Working Group has established two sub groups working on the bus shelter project and McJorrow Park. • Lansdowne Community Plan is progressing with a mural to be painted and the first Little Library was opened in Totara Street.

Sport Wellington Wairarapa Sport Wellington Wairarapa (SWW) is funded by the Council to: • Respond to the needs of Wairarapa Regional Sports Organisations, report on numbers of junior and senior members at targeted clubs; • Develop three volunteer plans and delivery three workshops to develop local clubs and associations; • Advise Council on the sport and recreation sector

Regional Sports Organisations (RSO) The forum has determined a key focus for 2016/17 is to build better relationships with clubs and secondary schools with the result of the RSO/School Forum being developed. Two forums were held in August and November on the topics of Wairarapa Coaching Hub and planning for 2017.

Wairarapa Tennis membership shows growth in junior and senior players. Cricket junior numbers are up, with a slight increase and the senior membership remains the same. 1,300 secondary school aged students engaged in Back yard Cricket which resulted in an increase of three girls’ team in the secondary schools competition.

The junior membership numbers for Hockey are constant and there has been a gradual decline in the senior membership. Through KiwiSport investment, Hockey Wairarapa has delivered the NZ Post Small Stick programme to 2,000 primary age students and Renegades to 35 secondary school age students. 414

Netball Wairarapa membership has steadily increased in junior membership. The KiwiSport investment has shown an expansion of opportunities to 420 five to six year olds through the adoption of a national Junior Netball initiative.

Wairarapa Bush Rugby junior membership continues to show positive growth while senior membership has had a small decrease which is reflective of the national membership data. Volunteer Plans and Workshops Three volunteer plans were signed with Hockey Wairarapa, Netball Wairarapa and Wairarapa Cricket. Regional coaching data shows Wairarapa has 146 secondary school coaches (47 student and 99 development).

Three workshops are scheduled for 2017; sponsorship and marketing, volunteers “How to value your life blood” and Marketing/Promotion/Communication for your Club. These are scheduled for March and April.

Partnership/Liaison with Council SWW continues to lead the development of the Wellington Region Sport and Active Recreation Strategy alongside eight of the Wellington region’s territorial and local authorities and one regional council. The biggest area of interest/influence is in the provision of sport and recreation places and spaces.

The 2011 Sport NZ survey shows that six out of ten young people belong to a sport club and more than five out of ten belong to a school sports team. The NZSSSC national data shows that 71% of secondary school students in the Wairarapa play sport for their school. National weekly participation in sport and active recreation by adults aged 18 plus has decreased by 7.7% with the biggest age group decrease in the 18-24 years of age of 13.9%

SWW attended the “Our Future Masterton” and provided feedback and have regular catch up meetings with the Manager Community Facilities and Activities and the Parks, Reserves & Facilities Manager. 415 ATTACHMENT 1

Aratoi Regional Trust - Report Q2 2016-17

Introduction

The Financial Statements for the period ended 31 December 2016 shows a YTD deficit of $(16,294) compared to a budgeted deficit of $(27,998) for the same period. The annual budgeted deficit, as per the Annual Plan is $(37,019).

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

Financial Reports - Variances to Budget for the second quarter October to December 2016

1) YTD revenues are behind budget for the 2016/17 year by 14% (Q1 – 16%) compared to the set budget. - Local council funding from MDC was received and will now continue as budgeted to the end of the financial year. Annual funding from CDC was eventually received during this 2nd quarter but at half the annual budgeted amount. - The Lands Trust Masterton (LTM) Building Grant has been received monthly and then paid back to them as building rental expense each month as per the budget. - The budgeted LTM Exhibitions Grant of $20,000 for the year is not to be received. This will have a negative variance to the quarterly funding received line of $5,000/quarter. - As progress is made in preparing the major Iwi Redress exhibition, now opening 8 April 2017, previously received funding is included as income only to match any expenditure. Both the income and expenditure lines have matching but opposite variances for the quarter. This has a nil effect overall. - Self-generated Income streams showed a positive variance of 85% over the quarter. Commissions received on the sale of exhibition pieces has surpassed expectations. The success of exhibitions of local artists can be measured by the number of sales made of their works. Funds raised from the Friends of Aratoi exhibition, Little Jewels, was very successful. Because of this event,

1 of 8 ART Q2 2017 Report to MDC 416

funds for the Aratoi Collection have been enhanced by $8,100 against a budget of $4,500. Income was also received from the Auckland Museum for fees charged to allow them to exhibit four Aratoi Collection Lindauer’s in their current exhibition. - The Front of House Retail space had a 26% increase in sales over the previous quarter. The choice of merchandise available for the Christmas period was very well received and credit needs to be given to the staff for managing this very busy time. Although Aratoi was closed on Mondays during December (and on public holidays), sales were well ahead of budget. The profit margin received for retail goods was 46% YTD versus a budget margin of 35%.

2) For the 2nd quarter to 31 December 2016, 51% of Aratoi’s revenue (excluding the grant from LTM re building rental) (43% - Q1) was from sources other than MDC.

3) Major exhibition costs are under budget for the 2nd quarter by 52% (major exhibition income being below budget for the same period by 53%). The main period of expenditure on the Iwi exhibition will be in the 3rd quarter, prior to its opening and then when the exhibition is closed as loans are returned. General exhibition costs ie those not allocated to a specific exhibition, are under budget by 7%.

4) Advertising and marketing expenditure has basically been put on hold for some time and is well under budget (65% positive variance). The relatively low cost of listings in industry magazines and web sites will continue. Some seasonal print advertising was made during the quarter but was gratefully funded by Friends of Aratoi.

5) Collection costs are under budget by 62% for the quarter (-13% Q1). Expenditure incurred this quarter was for the digital photographing of newly acquired items for the Collection. This is part of the on-going work, when time permits, to move the Aratoi Collection on-line.

6) Property expenses have a negative variance of 113% for this quarter. The building complex owner, LTM, now requires ART to contribute $21,000 towards OPEX costs from cashflow, to the end of the financial year in June. Once this amount was finalised, payments were made in the quarter to bring in half of the annual requirement.

7) Overall, General Operation costs are being held to budget. For the quarter, there is a positive 7% variance. Within this cost area, electricity costs remains an area of concern and IT and telephone costs continue to be monitored.

8) Employment expenses show a positive variance of 30% for the quarter. As previously reported, the vacant exhibitions coordinator role is not to be filled in this financial year and some budgeted wage costs are being brought to account in the exhibitions line now as the staff that work on those exhibitions are being partially funded from specific external grants received.

2 of 8 ART Q2 2017 Report to MDC 417

Risk Management and Internal Control

1. Working capital (current assets less current liabilities) was $3,727 at 31 December 2016. ART is able to meet its financial commitments as they fall due.

2. Insurance coverage is in place until 31/03/2017. Copies of all insurance policies are on file in the Director’s office. Management is confident that there are sufficient insurances in place to cover the Collection, works on loan and visiting works.

3 of 8 ART Q2 2017 Report to MDC 418

4 of 8 ART Q2 2017 Report to MDC 419

Key Result Area 1– Measure visitor numbers to galleries subject to bi-annual Council audit Target Performance for Q2 Performance for Year Report the number of 8,718 facility total 17,971 facility total visitors entering the facility 5,883 galleries, 12,257 galleries, programmes net of visitor “rentals”: programmes and and engagement. engagement.

Key Result Area 2 - Balanced budget and at least 20% from external sources Target Performance for year ART will achieve minimum of 20% revenue Achieved – Q2 51% (Q1 43.78%) of from sources other than MDC grants. revenues are from non MDC sources

Key Result Area 3 – Achieve over 2000 hours of volunteer labour p/a Target Performance for year 2000 hours of volunteer labour p/a Achieved

Report from Friends of Aratoi committee: 1st October to 31 December 2016 inclusive totals 850 hours.

Trust Board, approx. 150 hours +.

Total of 1,000 hours for the Q2 to Aratoi.

5 of 8 ART Q2 2017 Report to MDC 420

Key Result Area 4 – At least one locally curated original history exhibition (one large and one small) Target Performance for year Locally curated original history exhibition – Achieved large Featherston Camp: The Record of A Remarkable Achievement

Achieved The Long View: Landscapes from the Collection.

Locally curated original history exhibition - Achieved small Farewell Zealandia: Songs of WW1 and concert series, Anzac Hall, Featherston

Achieved ART IS A LIVING THING: New Zealand Pacific Studio – 15 years.

Key Result Area 5 – Aratoi to continue to work with the Archive to generate local history exhibitions Target Performance for year List of major history events and relevant Achieved research supplied to Aratoi by Archives. Featherston Camp: The Record of A Aratoi curated these events into Remarkable Achievement; exhibitions

Collection report to December 2016

 Rebekah Farr work entitled ‘Last Minute Nerves’ was purchased from her ‘Drift’ exhibition.  A waka huia was gifted to Aratoi

Items offered for the collection:  Three 19thC kerosene or oil lamps  An embroidered tray cloth acquired in 1873 en route to NZ  A collection of textiles, mostly clothing items, in fairly good condition, and include garments not already represented in the collection.  A series of 17 woodcut prints donated by Anthony Davies.  An unfinished pounamu toki from the collection of Puke Ariki museum in New Plymouth

6 of 8 ART Q2 2017 Report to MDC 421

Exhibitions report to December 2016

Time/Date Exhibition Classification 6 Aug – 27 Jan Sam Duckor-Jones : Strong men point their toes. Local community 2017 art/craft 6 Aug – 2 Oct Rebekah Farr : Drift. Wairarapa artist 2016 12 Aug – 13 Nov Kermadec: Lines in the Ocean. Initiated by Pew NZ / Au 2016 Charitable Trust, toured by Exhibition Services. contemporary art / environment 3 Sep – 9 Oct Breadcraft Schools’ Art Regional school’s 2016 art 7 Oct - 13 Nov Masterton Art Club: Out of the Garden. Wairarapa artists 2016 15 Oct - 27 Nov Main ARTery: MOMENT and movement. Wairarapa artists 2016 18 Nov – 4 Dec Little Jewels 2016. A biennial fundraiser exhibition held to Wairarapa and 2016 raise funds for the Aratoi Collection by Friends of Aratoi. NZ artists 26 Nov 2016 – 5 Petrus van der Velden: Art of Two Halves. The exhibition NZ history Feb 2017 showcases works from the artist’s Dutch and New Zealand years, exploring his different approach to subject and theme. 26 Nov 2016 – The Long View: Landscapes from the Collection. This International, NZ 19 March 2017 exhibition is a chance to see many of the works that live and local artists in the dark, and for them to be enjoyed, admired, or even disliked. 26 Nov 2016 – Barbara Hepworth Forms in Movement (Galliard) 1956. International 19 March 2017 Foundation piece of Aratoi’s collection; display includes artist, social video footage from 1963 history 3 Dec 2016 – 15 ART IS A LIVING THING: New Zealand Pacific Studio – International, NZ Jan 2017 15 years. Features artists, in 15 countries, who have lived and local artists. at the NZ Pacific Studio over the past 15 years. Local history 10 Dec 2016 – Paul Martinson: sleeper dreamer space adventure. A Wairarapa artist 19 Feb 2017 drawing based-based figurative style, Martinson’s compositions are surreal and poetic. Ongoing Wairarapa Whakaputa Mohio – Settling the Land M – History

7 of 8 ART Q2 2017 Report to MDC 422

Visitor numbers and total attendance

VISITOR COUNT ANALYSIS: Level of engagement with Aratoi staff, retail area and/or exhibitions (ie Active engagement), vs. non- engagement (ie straight to café and/or bathroom).

In determining the patronage over each quarter VISITOR COUNT ANALYSIS (Active engagement): Total for Q1 6,454 (July – September 2016) October 2,261 Daily Average 73 November 1,853 Daily Average 62 December 1,887 Daily Average 73 Total for Q2 6,001 YTD 12,455 (October – December 2016) Less Visitors that rented Aratoi facilities included above: Total for Q1 80 Total for Q2 118 YTD 198 Net Totals 5,883 YTD 12,257

Included in the numbers are exhibition openings, events, school visitations and workshops, with outreach. TOTAL ENTRY NUMBERS INTO FACILITY ANALYSIS: Total for Q1 9,253 October 3,250 November 2,708 December 2,760 Total for Q2 8,718 YTD 17,971 (October – December 2016) Includes Visitor Count numbers (Active engagement) plus all non-engagement visitors ie straight to café/bathroom

ONLINE / WEB VISITATION (July - September 2016): Total for Q1 2,851 October 814 November 1,197 December 955 Total for Q2 2,966 YTD 5,817

The total of engaged visitors for the quarter is 6,001 with a daily average of 69 (over 87 days). Compared to the previous quarter when 6,454 entered Aratoi with a daily average of 70. Included in the numbers are exhibition openings, events, school visitations and workshops. Overall, 67.5% of the total visitors to the facility during the quarter were actively engaged with the exhibitions, events and activities. Most recent MDC council visitor satisfaction survey reports 93% of those who had personally visited in last 12 months were very satisfied or satisfied. [Source: Masterton District Council/National Research Bureau Communitrak Survey: Feb/March 2014, p. 97, ii.]

8 of 8 ART Q2 2017 Report to MDC 423 ATTACHMENT 2

Destination Wairarapa Council and Trust Report 31 December 2016

More Visitors, Staying Longer & Spending More Overview Visitor Arrivals Wairarapa’s growth has continued particularly with international visitor guest nights up each month for the past 13 months. YTD September 2016 and international visitor guest nights are up 21% on the previous year.

Domestic growth has also continued over the same period and is up 5.4%.

We have seen a marked decline in length of stay which is disappointing but it is a similar trend nationally and in Taupo.

Commercial Accommodation Monitor Statistics New Zealand 12 Months Ending September 2015 v 2016

Greater Hawkes Wairarapa Wellington Bay Taupo National Guest Arrivals 2016 123,413 1,244,989 502,898 578,294 19,114,885 2015 109,156 1,194,757 463,314 530,080 17,647,393 Variance 11.6% 4.0% 7.9% 8.3% 7.7% Guest Nights 2016 224,389 2,690,363 1,116,057 1,059,892 38,040,747 2015 203,123 2,560,179 1,019,263 999,820 35,814,286 Variance 9.5% 4.8% 8.7% 5.7% 5.9% Occupancy 2016 23.6% 65.9% 40.5% 40.8% 43.1% 2015 21.2% 63.1% 35.6% 38.7% 40.9% Variance 2.4 2.8 4.9 2.1 2.2 Length of Stay 2016 1.82 2.16 2.22 1.83 1.99 2015 1.86 2.14 2.20 1.89 2.03

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.

1 424

Commercial Accommodation Monitor Statistics New Zealand 12 Months Ending September 2015 v 2016 Wairarapa Masterton National Guest Arrivals 2016 123,413 69,583 19,114,885 2015 109,156 66,834 17,647,393 Variance 11.6% 4.0% 7.7% Guest Nights 2016 224,389 137,023 38,040,747 2015 203,123 129,177 35,814,286 Variance 9.5% 5.7% 5.9% Occupancy 2016 23.6% 28.0% 43.1% 2015 21.2% 25.9% 40.9% Variance 2.4 2.1 2.2 Length of Stay 2016 1.82 1.97 1.99 2015 1.86 1.93 2.03

Visitor Spend The data Destination Wairarapa has used in the past to report on credit card spend is not currently available as MBIE overhaul their systems. There are also no reports available at the moment specific to individual TLAs. RTONZ the Regional Tourism Organisation association is working with MBIE and Statistics NZ to get the TLA reports operational again. This was hoped to be before the end of 2016 however the earthquake has slowed Statistics NZ return to operations.

This series of graphs is a more aggregated view of spend but still shows growth for all visitors to the Wairarapa at YE October 2016.

2 425

The financial objective for the tourism industry is outlined in the Tourism 2025 framework. In a Wairarapa context this means growing annual tourism revenue from $134 million (YE 2014) by $78 million to $212 million a year by 2025.

Revenue from tourism YE October 2016 for the Wairarapa is $160 million. That’s an average growth of 9.7% per annum. The target is average growth of 5.3% per annum, so the Wairarapa is well on track for doing its part for the New Zealand tourism industry.

The following graph shows spend in the Wairarapa by product for July 2016. This order of products purchased doesn’t change when viewed for 12 months. The importance of tourism to retail and therefore retail to tourism cannot be understated in the Wairarapa. Getting as many retailers open 7 days a week is a real opportunity for the towns.

3 426

Bookit Bookit is the online booking engine on the Destination Wairarapa website. Through October to December booking volumes and revenue were up 24.2% on the same period last year. This is revenue going direct to local businesses.

Winning Business Events Destination Wairarapa has agreed with partners that in 2017, a collective of operators with an overarching Wairarapa theme would attend Show Me Wellington on 7 March. i-SITE Visitor Centres Highlights:  i-SITE Total Sales o i-SITE Visitor Centre gross revenue for YE December 2016 ($503,115) was down 3.7% on the previous 12 months but improved 3 points since August 2016 quarter.  i-SITE Visitor Volumes o October – December 2016 had 11,201 visitors through the doors which is 6% down on the same quarter in the previous year

4 427

i‐SITE REVENUE $100,000

$90,000

$80,000

$70,000

$60,000 2015 $50,000 2016 $40,000

$30,000

$20,000

$10,000

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

Product Development  Development of Castlepoint Tours to be opened in January 2017  Development of Rivenrock mountain bike park to be opened in January 2017  Continued development of New Zealand Cycle Classic & Huri Huri; Wairarapa’s Bike Festival  Continued development of NZ wide Brown Tourist sign symbols with MBIE and NZTA  Monthly meetings with GWRC trains

Operator Development October – China Ready Workshop #2

David Hancock General Manager

5 428

September – December 2016 Marketing Manager’s Report

Marketing to Arriving Travelers:

Established Products and Markets A soon to be established market – Singapore – has been a big focus in this period as we’ve prepared for the new Singapore Airlines flights via Canberra. Two new markets which can now access Wellington easily. WREDA has done a whole campaign into Canberra and we’ve prepared and worked with trade and media in this period in preparation for Singaporeans.

For example this content was prepared: http://www.wairarapanz.com/coming-from-singapore http://www.wairarapanz.com/day-trip-from-Wellington

We’ve spent time with numerous members of the new team at WREDA. Some were hosted here so we could meet with new members of the Wellington team. There has been high turnover at WREDA and sadly some key gatekeepers for us are gone.

Domestic Marketing We hosted a Mighty-Mighty Platinum Marketing group meeting. Claire co-ordinated a Platinum members training/sales visit to i-SITEs in Taupo, Rotorua, Hastings, Napier Palmerston North, Woodville and Turangi. This was extremely well received by staff at those sites and valued by our participating members.

Wellington Wine Country We’ve established strong and regular communications with the new WWC group and look forward to an effective relationship.

Projects Included email database /social media campaigns supporting:  Free Trains day ex Wellignton  Pukaha Mount Bruce Wairarapa Garden Tour  Martinborough Charity Bike Ride  UB40 concert  Toast Martinborough  Xmas shopping giving Wairarapa activities and accommodation vouchers  promoting our When and Where database for locals and gained another 200 members over this period

6 429

Accommodation promotion To drive accommodation bookings through wairarapanz.com and the Masterton and Martinborough i-SITE Visitor Centres (as opposed to other online providers) we rolled out a Kids Go Free to Pukaha offer. Pukaha Mount Bruce kindly provided this entrance free of charge to us. Too early to measure effect as yet.

Auckland – Fly Palmy Campaign

This was a major body of work during this period – genuine destination development and messaging regarding coming from Auckland to the Wairarapa by flying into Palmerston North.

The campaign was very capably managed by Claire with many components including production of this video: https://www.youtube.com/watch?v=DHMP9JtXBoY

7 430

There was an extensive partnership with Fly Palmy, media hosting of a blogger, online elements, Facebook advertising and website content etc.

We worked very closely with Tui Brewery (the new company The Experience Collective with Nick Rogers and Rosie Broughton) and DB to maximize the launch of the new brewery experience. This meant the campaign was somewhat closer to Xmas than we would have hoped but the benefit of the exposure DB gave us was worth it.

Below is an example of what partnership can deliver. An animated banner developed by Fly Palmy for us on a promo partner website.

Note – a longer 2 minute version of the video for ongoing use will be completed in Feb 2017. It will showcase the northern route.

RTONZ Digital Day Claire and I attended two days hosted by RTONZ. One was an industry day which included a presentation by the NZ Rugby Union regarding the forthcoming Lions Tour – very useful insight. Second day was all digital session – trends, opportunities, mobile strategy etc. Very useful, inspiring and actionable by us.

Trade We’ve had a lot of trade through on famils in this period: - Winchester Travel pre the launch of their Singapore tour commencing. We hope these will be regular. - Tourism NZ Flight Centre group from Australia - NZ travel inbounders ex Wellington (we initiated) - Thai Leisure travel group from Tourism NZ - 4 Trenz Buyers on their way to TRENZ. This is facilitated by WREDA - Large groups of sellers via Tourism NZ- Chinese x 2 groups, one large European group

Media We updated our crisis communications tools and approach. We’ve watched closely the way in which Kaikoura and Wellington have managed their messaging post the recent earthquake.

We hosted during this period: - 4 Chinese journalists via Tourism NZ - LENS a Chinese multi media crew from TNZ - Group Indian and Thai journalists via TNZ - Conde Nast Traveller - NZ based Guardian UK writer - Traveler .com.au

Sam Mickell from Gotta Love NZ as part of a funded visit (anchor funder was Palmerston North Airport). Gotta Love has large social channels including Facebook Instagram, a

8 431

blog and website. You pay for content they develop expressively to be shared on their platforms.

Blog is here: http://www.gottalovenz.com/destinations/adventure-in-wairarapa/

Freelancer Mike Yardley came and already we’ve had several great results from him with more to come: http://www.newstalkzb.co.nz/lifestyle/travel/mike-yardley-artisans-of-the-wairarapa/ http://www.newstalkzb.co.nz/lifestyle/travel/mike-yardley-epic-encounters-at-palliser-bay/

Just some of the media results with highlights in yellow: Toast Martinborough http://www.stuff.co.nz/life-style/food-wine/food-news/86323895/Dry-River-winery-will- hold-a-one-day-pop-up-cellar-door http://www.stuff.co.nz/life-style/86334034/good-times-great-wine-and-the-odd-naked- moment-at-toast-martinborough http://times-age.co.nz/sun-turns-wine-lovers/ http://www.stuff.co.nz/entertainment/86649415/glorious-weather-greets-visitors-to-the- 25th-toast-martinborough

Other: http://www.nzherald.co.nz/travel/news/article.cfm?c_id=7&objectid=11748480 http://www.oversixty.com.au/travel/international-travel/2016/11/must-visit-events-in- martinborough-new-zealand/ http://www.oversixty.co.nz/travel/domestic-travel/2016/11/must-visit-events-in- martinborough-new-zealand/ http://www.oversixty.com.au/travel/international-travel/2016/10/how-we-found-glamping- in-retirement/ http://www.thejakartapost.com/news/2016/10/21/spoil-your-taste-buds-down-under.html http://www.thejakartapost.com/travel/2016/10/19/enjoying-nature-in-the-lands-down- under.html https://www.facebook.com/oversixtys/posts/1836100153286929 http://www.stuff.co.nz/travel/kiwi-traveller/84942421/five-of-the-best-bike-rides-in-new- zealand-that-involve-eating-and-drinking http://www.oversixty.com.au/lifestyle/retirement-life/2016/10/senior-sisters-open-their- own-cafe-in-retirement/

Barb Hyde Marketing Manager

9 432 Profit & Loss

Destination Wairarapa Inc. 1 October 2016 to 31 December 2016

31 Dec 16 30 Nov 16 31 Oct 16

Income Accommodation Commission 7,562 6,062 4,070 Bookit 4,682 3,529 2,439 Interest Received 563 581 834 Membership 68,743 192 364 Other Revenue 1,399 1,398 1,774 Ticket Commission 2,172 1,836 1,498 Tourism Products 5,322 2,640 818 Travel Sales 500 708 781 Wairarapa Visitor Guide - 27,289 27,289

Council Grants Grants - CDC 17,667 13,250 13,250 Grants - MDC 66,560 66,560 66,560 Grants - SWDC 28,866 28,866 28,866 Total Council Grants 113,092 108,676 108,676

Retail Sales Retail Sales 5,390 4,133 3,012 Less Cost of Sales (1,013) (762) (779) Total Retail Sales 4,377 3,371 2,233 Total Income 208,411 156,283 150,777

Gross Profit 208,411 156,283 150,777

Less Operating Expenses

Corporate Support Expenses ACC Levies - - 1,040 Accounting Fees 5,179 3,979 1,200 Audit Fees 15,844 15,844 57 Bad Debts - 456 495 Bank Fees - ANZ 161 155 149 Board Fees 343 5,170 4,547 Board Members Expenses 178 180 180 Electricity Corporate 288 346 294 Entertainment 84 26 26 Equipment Rental 272 272 272 Fringe Benefit Tax 2,399 2,399 2,399 Information Technology 1,013 1,746 1,875 Insurance 1,206 1,217 1,228 Interest Expense 1,231 1,252 1,273 Kitchen Supplies Corporate 5 68 136 KiwiSaver Employer Contributions 3,471 3,553 3,519 Legal Expenses 1,878 880 - Membership Expenses 1,929 2,054 957

Profit & Loss | Destination Wairarapa Inc. | 30 January 2017 Page 1 of 2 433 Profit & Loss

31 Dec 16 30 Nov 16 31 Oct 16 Merchant & BNZ Bank Fees 769 626 496 Office Supplies & Photocopying Corporate 2,564 2,883 1,087 Personnel incl. Training Corporate 135 385 418 Rent & Rates Corporate 3,467 3,467 3,467 Salaries 69,808 75,229 73,314 Subscriptions & Membership 3,881 4,828 2,078 Telecom incl Mobiles Corporate 2,461 2,511 2,509 Vehicle Leases 1,632 1,632 1,632 Vehicle Operating Costs 2,090 2,459 2,503 Total Corporate Support Expenses 122,287 133,617 107,151

Total I-Site Expenses Electricity i-SITEs 636 1,557 1,517 Kitchen Supplies i-SITEs 82 82 55 Office Supplies i-SITEs 215 215 81 Personnel incl Training & Conferences i-SITEs 1,280 1,280 578 Photocopier i-SITEs 469 522 323 Rent & Rates i-SITEs 7,169 7,253 7,806 Telecom i-SITEs 1,228 1,191 1,183 Travel & Transport - 3,197 3,197 Wages 46,401 45,204 44,326 Total Total I-Site Expenses 57,479 60,501 59,065

Total Marketing Expenses Distribution 3,013 3,232 2,148 Domestic Marketing 1,668 2,105 1,059 Domestic Marketing Email Distribution 832 503 609 Domestic Marketing Facebook 44 - 28 Domestic Marketing Spring Campaign 4,200 3,530 122 Imagery 415 366 - International Marketing Alliance 18 25,000 25,000 Media Hosting 1,555 2,679 2,671 Relationship Marketing 111 175 351 Trade Events & Training 1,661 1,845 1,547 Trade Famils 416 437 471 Visitor Guide 16,915 16,915 - Website 817 1,520 1,303 Total Total Marketing Expenses 31,664 58,307 35,308

Total Projects Expenses Rimutaka Cycle Trail 7 7 - Total Total Projects Expenses 7 7 - Total Operating Expenses 211,437 252,433 201,525

Operating Profit (3,026) (96,150) (50,748)

Non-operating Expenses Entertainment - Non deductible 96 34 101 Total Non-operating Expenses 96 34 101

Net Profit (3,122) (96,184) (50,849)

Profit & Loss | Destination Wairarapa Inc. | 30 January 2017 Page 2 of 2 434 435 ATTACHMENT 3

Connecting Communities Wairarapa Inc. 41 Perry Street Masterton

Masterton District Council Service Agreement Bi‐annual Report July 2016 – January 2017

Please find below reporting against the Key result areas for our contract with Masterton District Council

Key Result Areas Youth Development 1. A minimum of six youth driven events are delivered The Youth Council continues to meet fortnightly during school term. Lyn Patterson has supported them by visiting colleges in Masterton, with our Youth Development Coordinator. They were encouraging young people to participate. This has resulted in several new members. Members of the Youth Council attended a national conference. The Youth Council teamed up with R2R and held a Colour Run event in Carterton late January. This was very successful and generated a lot of positive publicity. Te Awhina Youth Group is being supported, It is aligned with the Masterton East Work Plan. They recently held a fundraising sausage sizzle, with funds going towards activities and events in 2017. The Youth Awards are being arranged for February and will occur alongside the Civic Awards. Children’s Day planning is underway. 436

The Youth Development Coordinator has been contributing to the development if Wairarapa Rangatahi Development Strategy and we will continue to work with the strategy to ensure a joined up approach to planning for our rangatahi.

2. Two large community events attracting 500 people Christmas in The Square was held on 10 December – this was very successful, attracting a good crowd, with many families attending. Plans for the Civic Awards are underway.

3. Four School Holiday Programmes attracting at least 10 students each We have held 3 School Holiday Programmes since July. The summer programme was of reduced length and numbers due to withdrawal of MSD funding, the programme ran for 4 days and had opver 45 children attend. MSD had been a significant of the programme, but the closure of the Social Sector Trial meant that their funding was withdrawn from the Wairarapa. The summer programme was delivered using CCW reserves, but it is unlikely that a further programme in the next school holidays will be able to be delivered without new funding being sourced.

Community Development

4. At least two neighbourhood plans developed Masterton East have been benefiting from the additional resource we have been able to provide with a Community Development Coordinator. This has enabled us to work closely with the Masterton East

Working Group and build on the work earlier in 2016 to support the development of Neighbourhood

Planning. There are now two sub groups working on the Bus Shelter Project and McJorrow Park. The

McJorrow Park Mural Panels (completed by Lakeview, Makoura and the Kura) were erected and blessed in time for Whiti Te Ra. Our Coordinator has also held several community barbecues in the area to encourage the community to meet together and get to know each other, attendance has been increasing with positive responses to the barbecues.

Neighbourhood Planning for Masterton East has been strengthened with additional council appointments Aaron Bacher and Tom Hullena. Our Community Development Team are looking 437

forward to working closely with the wider MDC team. Our coordinator has submitted a

neighbourhood planning budget to MDC on behalf of the working group to support the next stages

of the Neighbourhood Plan.

Lansdown Community Plan has progressed with the completion of the village development. Information on the activities that contributed to this have been shared with council staff for the development of a report. We continue to provide support to the Lansdowne Project Team. We have successfully obtained a Creative Communities Grant for the Lansdowne Neighbourhood Planning Group to paint a mural depicting a historical scene of Lansdowne. The first Little Free Library was launched in Totara Street, Lansdowne and the steward has been reporting very regular exchange of books. The second library is ready for the village space on First St. however, planning processes for its installation have created some delays.

Proposals for addressing issues through MDC Community Development Task Group CCW new General Manager has met with Andrea Jackson and reviewed communication processes between MDC and CCW. Monthly meetings are now in place and provide a route to discuss any issues.

Te Awhina Cameron Community House 5. Community House programme improvements (i.e. at least eight successful programmes, approved policies, at least three East‐Side projects initiated). This comprises a separate contract between TACCH and MDC and reporting should occur from TACCH Board. However, we are able to provide the following information. A Summer Reading Programme for children at Te Awhina has been arranged. There are 7 group programmes operating and the Te Awhina Youth Group is based there. The Community House has obtained equipment to set up a computer room with wifi being installed. This will benefit children and many other local residents. There has been an increase in the number of volunteers in the house and an increase in needs of more vulnerable families 438

in the community. Te Awhina is working closely with our community development coordinator and local services.

Neighbourhood Support 6. Resident participation is increased by 20 per cent There has been a 16% increase in households since July 2016. The Coordinator has had great success in developing rural groups during this period with a high level of household participation. They have attended a range of community based events to promote Neighbourhood Support. We have developed strong links with Civil Defence, Fire and Police to build an awareness of the way Neighbourhood Support can be a model of community support. The Coordinator has been able to encourage MDC counsellors to participate in the scheme and continues to find strategies to engage members of the Masterton community. The work of supporting these groups increases as the numbers increase, but is critical to ensure continued engagement. Junior Neighbourhood Support has been reinvigorated this year with a new coordinator in place. They have worked with three schools, one in Masterton. Her schedule for the next 6 months includes 3 Masterton schools and a JNS Talent Show.

Budget & Reporting 7. Balanced budget and half‐yearly reports CCW continue to manage its services within budget. Audits are submitted to the Charities Commission to ensure we maintain our charitable status. CCW Board has a member of Masterton District Council able to attend its board meetings where financial planning and budget management are a monthly component of the meetings.

Maggie Pryce Interim General Manager Connecting Communities Wairarapa 439 ATTACHMENT 4 Sport Wellington Wairarapa

6 month report to Masterton District Council

July 2016 – December 2016 440 Key Performance Indicators, Measures and Targets Masterton District Council – Sport Wellington Wairarapa 2016/2017 Outcome KPI Measure

Improved community links • Facilitate RSO forum The RSO Forum and face-to-face Board meetings have determined a key focus with and among sport and to identify needs of for 16/17 as “Building better relationships between RSOs/clubs and secondary recreation and targeted sport for the coming schools”. As a result the RSO/School Forums have been developed. schools, clubs and Regional year and assign responses across RSO/School Forum of which four have been scheduled for 2016/17. Two Sports Organisations RSOs and Sport forums have been held (August & November) where the topics included the (RSOs) Wellington Wairarapa Coaching Hub and planning for 2017. Wairarapa Seven secondary schools and five RSOs have attended and three have shared young people projects with 2017 co-planning underway.

We are able to provide membership data for 5 targeted organisations. Data is • Monitor Report on number of membership trends junior members, senior up-to-date to the end of the winter 2015 season (we are in the process of at targeted clubs*/ club members at collecting data for the 2016 year). Details provided below: RSOs targeted clubs 441 Wairarapa Tennis Association (WTA) Wairarapa Tennis membership trends show growth in junior and senior. This is against the national trend for tennis membership. 442

Wairarapa Cricket Association (WCA) Wairarapa Cricket membership trends show a slight increase in junior membership and maintained numbers in senior membership. With KiwiSport investment we expect to see increased participation in 2 key areas. Junior numbers through the Back Yard Cricket (BYC) (KiwiSport funding provided) and women/girls, both senior and junior, through the women and girls in cricket initiatives (KiwiSport funding provided). 1300 secondary school aged students have engaged in BYC resulting in an increase of 3 girls teams in the local secondary schools competition in 2017. A senior women’s competition will also commence in 2017. 443

Hockey Wairarapa Hockey Wairarapa membership insights show maintained junior membership numbers but a gradual decline in senior membership numbers. 2011 (465) and 2015 (314) this is similar to the national trend. Through KiwiSport investment, Hockey Wairarapa has delivered the NZ Post Small Stick programme to 2,000 primary age students and Renegades to 35 secondary school age students. It is anticipated that this will have an impact on participation for the next 2-3 years on junior membership. 444

Netball Wairarapa Netball Wairarapa membership trends show steady increased growth in junior membership due to an expanded junior programme and maintained senior membership 2011 (234) 2015 (234) Through KiwiSport investment we have seen an expansion of opportunities available to 420 5-6 year olds through the adoption of a national Junior Netball initiative. It is anticipated that this investment will have a direct impact on junior membership over the next 2-3 years. 445

Wairarapa Bush Rugby Wairarapa Bush Rugby junior membership continues to show positive growth while senior membership has had a small decrease which is reflective of the national club membership data.

Improve coach and • Develop three Three volunteer plans in Three volunteer plans have been signed off by their respective volunteer quality, volunteer plans at place in Year 1. Boards/committees (Hockey Wairarapa, Netball Wairarapa, Wairarapa Cricket). recruitment, training, local targeted Report number of new recognition and retention organisations Regional coaching (secondary schools) baseline data has been captured for 6 (including provision volunteers sports (hockey, netball, cricket, rugby, football and basketball) as part of the at the targeted for sideline new Coaching Hub. These figures show that Wairarapa has the following organisations. behaviour policies Report increase in coaches in these sports contributing to secondary school sport: and practices). volunteers from baseline o Secondary School Coaches – TOTAL = 146 measure § Student Coaches – 47 § Development Coaches - 99

Wairarapa Secondary Schools The collective 2016 NZSSSC census data shows 167 secondary school coaches. 51 students and 116 development coaches actively coaching in secondary school sport (this compares to 2015 which 223 coaches made up of 52 students and 171 development coaches). 446

• Delivery of three i) 10 clubs attend Feedback from our 2016 RSO Board and WSIG (Sport Leadership Group) has workshops which capacity building helped shape the 2016/17 workshops schedule for clubs and other community aim to develop the workshops organisations. capacity, capability, ii) 80% of participants sustainability, report satisfaction o Sponsorship and Marketing - culture and co- with the content of § 7 sporting clubs/organisations represented. 100% of operation of local the workshop attendees rated the workshop very good or excellent. clubs and iii) Targeted clubs § Follow up support with attendees has resulted in WTA associations. report club administration officer looking at a number of new development as a initiatives to implement in 2017. result of the o Volunteers “How to value your life blood” (scheduled for March workshops 2017) o Marketing / Promotion/ Communication for your Club (scheduled for April 2017)

Partnership/Liaison with • Provide advice on Advice provided annually Council Engagement and Regional Leadership the sport and on trends of involvement Council Sport Wellington continues to lead the development of a Regional Sport and recreation sector in sports and physical Physical Recreation Strategy alongside 8 of the Wellington region’s Territorial including activity at primary, (city or district) Local Authorities (TAs) and one Regional Council who have information on secondary and post school various levels of involvement in the sport and recreation space. The biggest national, regional level where such figures area of interest/influence for Councils is in the provision of sport and recreation and local trends are available. places and spaces i.e. venues, facilities and open spaces. A large number of sports facilities are owned by Council, built on Council land or partially funded by Councils. Sport Wellington’s interests and priorities are complementary to those of Councils and our direct interest in working with Councils is reflected in the Sport Wellington Strategic Plan.

National Projects Volunteer Insights Report - this report employs data collected via the GSER to provide insights about New Zealand sport and recreation volunteers. A range of topics are explored including volunteering roles, frequency and length of 447 volunteering, intention to continue volunteering, motivations, and volunteer development https://www.srknowledge.org.nz/wp-content/uploads/2016/09/Gemba_Sport- NZ-Volunteer-Report_260916_vUPDATEDFINAL.pdf

National volunteering data Shows a decrease by 2.3% from 1998 to 2014. The two younger age groups, 18- 24 year olds and 25-34year olds, both reported greater rates of decline (9.9% and 10.5%). Sport Wellington Wairarapa is supporting sport in specific initiatives targeting young people (secondary school students) as volunteers to grow their number of coaches. One of which is the newly established Wairarapa Coaching Hub Coordinator who is working alongside 6 RSOs to assist in developing a Regional Coaching Strategy (RCS) where resources, knowledge and expertise can be shared across codes. This position will be in place until June 2018 where it is expected the 6 RSOs will then have a self-manage system in place. The RCS will have alignment with RSOs existing Volunteer Plans to Gain, Train and Retain coaches for their organisations. Initially the RCS will target student coaches and expand to target other foundation (entry level coaches) and development coaches.

Young People’s National data The 2011 Sport NZ survey shows that 6/10 young people belong to a sport club and more than 5/10 belong to a school sports team.

Wairarapa data – young people The NZSSSC national data shows that 71% of secondary school students in the Wairarapa play sport for their school. Anecdotally the Wairarapa regions primary schools tell us that 90% if not more primary age children play sport for either a club or school.

Adult participation National trends 1998 to 2014 National weekly participation in sport and active recreation by adults aged 18 448 plus decreased by 7.7%. The biggest age group decrease is 18-24 years of 13.9%. Senior club membership has declined by 11.1% while gym/ fitness centre membership has increased by 3.6%.

Additional advice Attended the first “Our Future Masterton” consultation on behalf of Sport Wellington. Provided some feedback to facilitators regarding potential attendees at future workshops (health sector, youth, and teachers). Also recommended to look at some insights into how our region has changed over the past 5 years and what this will look like in the future which could highlight some areas that may need investment. Regular catch up meetings have been scheduled with MDC Manager Community Facilities and Activities - Andrea Jackson and Kirsty McCarthy to discuss areas where we can work collaboratively. Most recently, both have engaged in training in the new Sport NZ online Insights Tool.

GLOSSARY

In-depth school = One of the schools that is focussed on for support RSO = Regional Sports Organisations – the governing/organising body for a sport in the Wairarapa or Wellington region 450

002/17 To: Audit and Risk Committee

From: Tania Madden, Manager Strategic Planning

Endorsed by: Pim Borren, Chief Executive

Subject Non‐Financial Performance 2016/17 Second Quarterly Report

Date: 8 February 2017

INFORMATION Recommendation: That the Audit and Risk Committee receives the Quarter 2 non‐financial performance report for the 2016/17 financial year.

Purpose The purpose of this report is to advise Council of performance against non‐financial measures that are reported every six months. The figures in this report are for the period from 1 July to 31 December 2016.

Executive Summary Results against performance measures across all eight activity groups are reported in this second quarterly report. The groups of activity are:  Roading;  Water Supply;  Wastewater;  Stormwater;  Solid Waste;  Community Facilities and Activities;  Regulatory Services; and  Governance and Corporate.

Council has a total of 126 performance measures. Of the 65 performance measures reported this quarter, 48 (74%) have been achieved or are on track to be achieved at year end. Twelve (18%) have not been achieved or are not on track to be achieved. Measures that haven’t been achieved are under Roading, Water Supply, Library (Community Facilities and Activities) and Regulatory Services. The remaining 5 (8%) have reported a variance. Further information is provided below.

451

The graph below shows the percentage of measures against each activity area that:  have been achieved or are tracking to plan and expected to be achieved by year end;  have not been achieved or are not tracking and may not be achieved by year end;  reporting a variance; or  are not measured at six months.

452

Q2 YTD Status at Measure 2016/17 Annual Target Commentary Result 31/12/16 Roading (Roads, Streets, Footpaths and Parking) Percentage of urgent customer service requests Not 95% 89% responded to within 2 days Achieved Percentage of non‐urgent customer service Not requests acknowledged within 10 days and 95% 59% placed on appropriate maintenance programme Achieved

Water Supplies (Urban and Rural) Number of complaints received about: a) drinking water clarity Less than or equal to 2.7/1000 1.0/1000 Achieved b) drinking water taste Less than or equal to 0.33/1000 0.22/1000 Achieved c) drinking water odour Less than or equal to 0.33/1000 0/1000 Achieved d) drinking water pressure or flow Less than or equal to 0.33/1000 0.33/1000 Achieved e) continuity of supply Less than or equal to 0.88/1000 1.0/1000 Not Achieved

Expressed per 1000 connections to council's networked reticulation system.

Median response time to call outs for faults or unplanned interruptions to the networked reticulation system: attendance at urgent call outs (from notification to arrival on site) Less than or equal to 60 minutes 30 minutes Achieved resolution of urgent call outs (from notification Less than or equal to 480 158 minutes Achieved to confirmation of resolution) minutes attendance at non‐urgent call outs (from notification to arrival on site) Less than or equal to 7 days 3.95 days Achieved resolution of non‐urgent call outs (from notification to confirmation of resolution) Less than or equal to 3 months 5 days Achieved Alternative water supply is provided when No shutdown exceeded 24 hours. shutdown exceeds 24 hours 100% Nil Achieved

453

Q2 YTD Status at Measure 2016/17 Annual Target Commentary Result 31/12/16 Wastewater (Including Treatment and Disposal of Sewerage) Number of complaints received about: a) sewerage odour Less than or equal to 0.11/1000 0/1000 Achieved b) sewerage system faults Less than or equal to 0.45/1000 0/1000 Achieved c) sewerage system blockages Less than or equal to 5.31/1000 3.4/1000 Achieved d) Council's response to issues with its sewerage system Less than or equal to 1.01/1000 0.56/1000 Achieved

Expressed per 1000 connections to council's sewerage system.

Median response time to sewerage overflows resulting from a blockage or other fault to Council's sewerage system: attendance (from time of notification to the time service personnel arrive onsite) Less than or equal to 6 hours 0.48 hours Achieved resolution (from time of notification to the time service personnel confirm resolution) Less than or equal to 12 hours 0.87 hours Achieved Alternative system provided where loss of No loss of service exceeding 24 hours. service exceeds 24 hours 100% of occasions Nil Achieved Number of dry weather sewerage overflows from Council's sewerage system (expressed per Less than or equal to 2/1000 0.55/1000 Achieved 1000 connections to the system) Percentage of time that treated effluent is not Winter ‐ greater than 50% Winter ‐ 70% discharged to the river Summer ‐ greater than 75% Summer ‐ Achieved 84%

454

Q2 YTD Status at Measure 2016/17 Annual Target Commentary Result 31/12/16 Stormwater Number of complaints received about the performance of Council's stormwater system (expressed per 1000 connections to Council's Less than or equal to 2/1000 1.7/1000 Achieved stormwater system) Number of flooding events that occur in the district Less than or equal to 98 events 1 event Achieved For each flooding event, the number of habitable floors affects (expressed per 1000 1/1000 0/1000 Achieved connections to Council's stormwater system) Median response time to attend a flooding event (from time of notification to the time Less than or equal to 60 minutes 35 minutes Achieved service personnel arrive onsite)

Solid Waste Number of call backs due to non‐collection of No more than 1/200 urban Total call‐backs for the six month period official rubbish bag in each weekly collection households 0.01/200 Achieved is 9.

Community Services Destination Wairarapa reports tourism Destination Wairarapa reported for July‐ promotional activities and visitor numbers Quarterly Report Received On Track September 2016 to the Audit and Risk Committee on 30 November 2016. The Wairarapa Arts, Culture and Heritage Toi Wairarapa reports six‐ N/A Variance MDC no longer support Toi Wairarapa. Strategy is progressively implemented monthly on progress Funding ended 31/12/2015. Sport Wellington Wairarapa reports 6‐monthly Sport Wellington Wairarapa Received 6‐ against performance targets on its support for meets annual performance monthly On Track involvement in sport targets. report

455

Q2 YTD Status at Measure 2016/17 Annual Target Commentary Result 31/12/16 Library and Archive New books and other items added to the library 10% of collection is less than 1 8,045 items are less than one year old. collection annually year old 12.75% Achieved Number of resources (books, DVDs etc) in the 2.6 resources 62,977 items held as at 31/12/2016. 2.7 resources per resident Not Achieved collection per resident Masterton population 24,200. Archived material is available to the public from 20 hours per week Open 20 the archives for 20 hours per week hours per Achieved week Number of items available online increases 750 additional items available Result includes 880 Picture Wairarapa annually online each year 2,458 Achieved entries. History articles published in local media Seven articles in Quarter 1 and three in 6+ articles per year 10 Achieved Quarter 2.

Property Monthly inspections of municipal building and The Municipal building has been closed public toilets meet cleanliness and safety due to being earthquake prone. standards Bannister Street toilets have achieved 95% compliance 95% available Variance standards. Both Exeloos have experienced ongoing issues with vandalism and blocked drains. Town hall facilities are operational for all 100% N/A Variance Town hall is closed. All bookings have bookings been placed elsewhere. Occupancy of Mawley Park Camping Ground 5% increase on 2015/16 7% Increase Achieved All elderly units are fully occupied (averaged over all complexes, excluding refurbishment Minimum annual occupancy 95% 99% Achieved periods)

456

Q2 YTD Status at Measure 2016/17 Annual Target Commentary Result 31/12/16 Parks, Reserves and Sports Fields Number of sports field closures per season Less than 5% 0% Achieved All playgrounds meet safety standards 100% 100% Achieved

Recreation Centre Temperature and water treatment within 85% average of test results 89.5% Achieved specification and agreed standards within agreed range

Cemeteries Accurate online access to burial records 100% of burials loaded by the 100% Achieved 15th of the following month Historical errors corrected within 30 days of being reported 100% Achieved

Masterton Airport (Hood Aerodrome) Annual usage levels No less than 2015/16 4,374 For the same period in 2015/16 there On Track movements were 3,189 movements.

Resource Management and Planning Resource consents processed within the Two consents did not meet time requirements of the Resource Management Act requirements as they were received late 100% 94% Not Achieved by the Planning team due to a system change. LIMs processed within the requirements of the 100% 100% Achieved Resource Management Act PIMs processed within the requirements of the 100% 100% Achieved Resource Management Act Building consents checked for planning 100% 100% Achieved implications No loss of agreed protected areas No notification of loss of protected 100% 100% Achieved areas.

457

Q2 YTD Status at Measure 2016/17 Annual Target Commentary Result 31/12/16 Building Control Proportion of building consents processed 305 consents processed in total, with within 20 working days (excluding days consent five exceeding the 20 working day is on hold awaiting additional information) 100% 98.4% Not Achieved statutory timeframe. All five that were over time were processed during the building team’s transition phase.

Proportion of current Code of Compliance 320 certificates issued with five over Certificates issued within 20 working days 100% 98.5% Not Achieved time. Proportion of known swimming pools complying All pools consented are inspected and with requirements (drained if non‐compliant) 100% 100% Achieved compliant. If non‐compliant, pools are required to be drained. Progress on addressing earthquake risk 100% of earthquake‐risk The Building (Earthquake‐prone buildings buildings assessed and reports buildings) Amendment Act 2016 will received, follow‐up action N/A Variance come into effect in July 2017. Buildings reviewed with owner will then be reassessed in accordance with the new regulations. Proportion of building Warrants of Fitness 89% of BWOFs/Compliance schedules audited per annum have had physical or desktop audits completed in the last six months. 33% 89% Achieved 355 BWOF/Compliance schedules. 7 physical audits completed and 309 BWOFs received and processed (i.e. desktop audits).

458

Q2 YTD Status at Measure 2016/17 Annual Target Commentary Result 31/12/16 Environmental Health, Alcohol Licensing and General Inspection All registered premises comply with public Of the 145 annual inspections required, safety requirements as evidenced by annual 49 (33%) have been completed to date. inspections and followed up with further visits 52 food premises were inspected and an for enforcement if necessary additional 27 re‐inspections were carried out. 17 health licence inspections were 100% 33% Not on Track carried out and one re‐inspection was required. No enforcement action necessary. Whilst currently 33% YTD, plans are in place to ensure the remainder of the inspections are completed in February/March. Percentage of alcohol licences inspected for Of the 70 alcohol licences, 8 have been compliance with statutory requirements inspected. An additional 2 inspections annually were carried out at special events. 50% 11% Not on Track Whilst currently 11% YTD, plans are in place to ensure the remainder of the inspections are completed in February/March. Proportion of noise and other urgent complaints Of the 231 noise complaints received, responded to within 1 hour 93% (Noise) 216 were responded to within one hour. 90% Achieved 100% (Other) All 36 other urgent complaints received were responded to within one hour. Proportion of other 'general' complaints Of the 328 non‐urgent complaints responded to within 5 working days of 100% 77% Not Achieved received, 254 were responded to within notification 5 working days.

459

Q2 YTD Measure 2016/17 Annual Target Status Commentary Result Animal Control Proportion of urgent complaints responded to Of the 76 urgent complaints received, 60 within one hour (dog attacking people or 100% 78.95% Not Achieved were responded to within one hour. animals) Proportion of non‐urgent complaints responded Of the 624 non‐urgent complaints to within 24 hours of notification (dog barking 100% 86.22% Not Achieved received, 538 were responded to within or wandering animals) 24 hours. Undertake public education, school and Visits were made to two primary schools community visits to promote safe behaviour and one early childhood centre. A around dogs and/or responsible dog ownership 6+ visits 6 Achieved "doggie day out" was held at the Te Awhina Community Centre, Douglas Park and Margaret Street.

Governance and Corporate Services Annual Report adopted Report adopted by 30th October Adopted Achieved Adopted on 26th October 2016. Iwi Governance Forum meets regularly on At least 4 times annually 2 meetings On Track The committee met on 16 September Marae in the district and 16 December 2016. Council provides opportunities for Māori to be Report on Māori involvement in At the inaugural Council meeting in involved in decision making decision making/consultation October 2016, iwi appointments were processes confirmed for Council committees. Iwi representatives with voting rights have On Track been appointed to all standing committees and attend Council meetings. Iwi representatives also attended the Homebush Working Party on 29 November 2016. Iwi advice is sought on relevant resource Iwi advice reported Variance No resource management issues have management issues had implications for iwi in the period.

460

003/17 To: Audit and Risk Committee

From: David Paris, Manager Finance

Endorsed by: Pim Borren, Chief Executive

Subject Fraud and Corruption Investigation Procedure

Date: 8 February 2017

INFORMATION Recommendation: That the Audit and Risk Committee endorses the Fraud and Corruption Investigation Procedure.

Purpose The purpose of this report is to seek Council’s endorsement of the Fraud and Corruption Investigation Procedure.

Background The Audit and Risk Committee received the Fraud, Dishonesty and Corruption Control Policy at their meeting on 30th November 2016. At that meeting, the committee requested a procedure be developed in support of the policy.

The supporting procedure has been developed and provides a clear process for reporting and investigating suspected fraud or corruption. The procedure was approved by the Senior Management Team on 24th January 2017.

The procedure is attached to this paper for the committee’s endorsement.

461 462

Fraud and Corruption Investigation Procedure Applicable to: MDC Staff Procedure Number: MDC016A Issued by: Chief Executive Date of Approval: 24 January 2017 Contact person: Manager Finance Review Date: 24 January 2020

PURPOSE The purpose of this procedure is to provide a clear process for the reporting and investigation of suspected fraud or corruption at Masterton District Council (MDC).

SCOPE This procedure applies to all suspected, alleged or proven fraud and corruption incidents that are either: • committed against MDC by any person; or • committed by MDC’s employees or elected members against any third party.

This procedure should be read in conjunction with Fraud, Dishonesty and Corruption Policy.

REPORTING SUSPECTED FRAUD OR CORRUPTION Any employee who suspects that a fraudulent or corrupt act has occurred must report the matter immediately by either: • notifying their manager; • notifying the Finance Manager; • notifying any member of the Senior Management Team (SMT); or • making a protected disclosure (see below).

Sufficient details to enable the matter to be investigated fully must be provided. This includes: • details about the events or acts constituting the suspected fraud or corruption; • the quantity and/or value of the fraud or corruption; • dates, times and names of people alleged to be involved; • any documentary evidence or verifiable facts that support the allegation; and • how the employee came to be aware of the matter.

The person who receives the report (verbally or in writing) must immediately inform the Chief Executive (CE). All reports will be treated confidentially. If the CE is the subject of the allegation, the report must be made to the Chair of the Audit and Risk Committee (the Chair). In this circumstance, all actions required of the CE in this procedure will be completed by the Chair.

Reports made under the Protected Disclosures Act Employees who report serious wrongdoing in the workplace may be protected by the Protected Disclosures Act 2000. Refer to the Protected Disclosures Policy when making or handling a report of suspected fraud or corruption under the Protected Disclosures Act.

463

DETERMINING INITIAL ACTION When informed of suspected fraud or corruption the CE must, within 24 hours (where practicable): • record the details of the allegation; • if not already received, request a confidential written statement from the person who reported the matter (as detailed above); • decide on the initial actions to be taken, including consultation with relevant manager/s; and • inform the Chair of the Audit and Risk Committee of the information received and consult with the Chair as appropriate.

Based on the information received and subsequent consultation, the CE will decide whether it appears that fraud or corruption of any sort has occurred. If it appears that an act of fraud or corruption:

• has not occurred, the CE will document this decision and no further action will be taken. • may have occurred, the CE will investigate the matter further (see Investigation below). • is very likely to have occurred (as evidenced by credible supporting documentation), the CE will immediately take appropriate action (see Fraud or Corruption is Proven below).

INVESTIGATION The CE may seek advice as appropriate on how to proceed with the investigation. The CE will appoint an Investigator. Where appropriate, the Investigator may appoint a team to assist with the investigation. Only the person/s appointed may investigate the matter. Any person appointed to investigate a suspected case of fraud or corruption must be independent, objective and appropriately skilled to carry out the investigation. Where an allegation of fraud or corruption is made against a MDC employee, advice must be sought from the Human Resources Advisor before proceeding. This is to ensure that any investigation is in line with the employee’s employment agreement and other employment relationship policies and procedures. The first step of the investigation is to meet with the person who is the subject of the allegation (the Subject) to discuss the complaint against them. The process below must be followed: • Step 1: Inform the Subject in writing of the allegation that has been received. Request a meeting with the Subject at which their representative/s will be invited to attend. • Step 2: Meet with the Subject and their representative/s to explain the complaint against them. • Step 3: Obtain a response from the Subject, preferably in writing. If the response is given verbally at the meeting, the response must be recorded in the minutes of the meeting and the accuracy of the minutes must be attested by all attendees. • Step 4: Advise the Subject of the process going forward. A comprehensive, written record of the investigation must be kept. All evidence must be handled carefully as it may be required for court proceedings. Photocopies should be used during the investigation and originals retained and held in a secure location. All employees are required to cooperate with any investigation into fraud or corruption When the investigation is complete, the Investigator will provide the CE with a detailed written report, stating the findings of the investigation.

464

OUTCOME The CE will review the final report and consult with the Chair of the Audit and Risk Committee regarding the final decision. If necessary, legal or other advice may be sought regarding how to proceed. The final decision must be documented.

Fraud or Corruption is Proven Fraud or corruption will only be considered proven if there is clear and convincing evidence in support of that allegation. If fraud or corruption is proven, the CE will, as appropriate: • take disciplinary action (refer the employee’s employment agreement); • report the matter to the Police; • notify the SFO (if the amount concerned is over $500,000, if there are particularly complex issues involved or if it is a matter of significant public interest); • notify any other enforcement agency as appropriate; and/or • take recovery action. Should the police or other enforcement agency decline to investigate the matter, the CE may choose to conduct an internal investigation (see Investigation above).

Fraud or Corruption is Not Proven If fraud or corruption is not proven, but the investigation has identified serious misconduct resulting in dismissal or a written warning, MDC will use civil remedies to recover any monies lost. If fraud or corruption is not proven and no misconduct is identified, this finding will be documented and no further action will be taken.

FINAL STEPS At the conclusion of the investigation process the CE will (as relevant): • inform the employee who reported the matter of the outcome; • release any statement deemed appropriate; and • represent MDC in any subsequent legal processes.

LESSONS LEARNED All allegations of fraud or corruption will be logged on the Fraud Register and reported to the Audit and Risk Committee. MDC will follow up fraud investigation results to determine the causes of the fraud and test whether existing internal controls or procedures can be improved.

CONFIDENTIALITY All information relating to the matter will remain strictly confidential. Should any employee improperly disclose information, this will be considered a breach of procedure and the employee may be subject to disciplinary action.

REVIEW OF PROCEDURE This procedure will be reviewed every three years.

465

DEFINITIONS Corruption: Lack of integrity or honesty or the use of a position of trust for dishonest gain. Refer to the Fraud, Corruption and Dishonesty Policy for examples of corruption. Employee: Includes current employees, former employees, contractors, secondees and volunteers. Fraud: The deliberate practice of deception in order to received unfair, unjustified or unlawful gain. Refer to the Fraud, Corruption and Dishonesty Policy for examples of fraud. Serious Wrongdoing: Unlawful, corrupt or irregular use of public funds or resources.

RELATED DOCUMENTS Fraud, Dishonest and Corruption Policy Protected Disclosures Policy MDC Employment Agreements (Collective or Individual) Expectations of Integrity and Conduct

REFERENCES Ministry of Justice Fraud and Corruption Policy Framework

VERSION CONTROL

Date Amendments Approved By

24/1/2017 New Procedure Senior Management Team 466

APPENDIX 1: RESOLVING FRAUD OR CORRUPTION ALLEGATIONS

Employee reports suspected fraud or corruption

Was the report Person who received the report, NO YES Refer to the Protected Disclosures made under the Protected immediately informs the CE Policy Disclosures Act?

CE collects details of the allegation, decides initial actions and informs the Chair of the Audit & Risk Committee

Does the NO information suggest fraud VERY LIKELY or corruption has occurred?

MAYBE Report the matter to the NZ Police, SFO or other enforcement agency Appoint Investigator Take action as appropriate (e.g. report to the police, SFO or other Is the allegation enforcement agency, disciplinary YES Seek advice from HR against a MDC and/or recovery action etc) employee?

NO

Meet with the subject of the allegation to explain the complaint, hear their response If the matter was reported to an and explain the process going forward NO enforcement agency, did the agency investigate? Complete investigation and provide written report to the CE

YES CE takes action as appropriate (e.g. reporting to the police, YES Is fraud or SFO or other enforcement corruption agency, taking disciplinary and/ proven? or recovery action etc) NO

Inform the subject of the allegation of the outcome

Inform the employee that reported the matter of the outcome

Log the allegation on the Fraud Register and advise the Audit and Risk Committee of the outcome

470

004/17 To: Audit & Risk Committee

From: David Paris, Manager Finance

Endorsed Pim Borren, Chief Executive by:

Subject: 2016/17 Six Months to Date Financial Report

Date: 8 February 2017

FOR INFORMATION Recommendation: That Audit & Risk Committee receives the 6 months to date financial report and commentary, including Operating and Capital Expenditure Statements.

Purpose The purpose of this report is to provide the Audit and Risk Committee with a financial report for the six months to 31 December 2016.

Executive Summary The Rates Requirement Summary to 31 December 2016 shows the Council’s net spending at $14.129m, which is $243,079 or 1.7% less than the year to date budget. The Statement of Financial Performance shows Operating Revenue and Operating Expenditure to both be slightly better than planned, with the actual deficit YTD is $143,989 better than planned. The Capital Expenditure Statement for the half year shows $5,839,048 spent, which is 33% of the full year capital budget.

Commentary Operating Statements The Operating Statements for the 6 months to 31 December 2016 for each of the Council’s operating areas are reported on the following pages.

The variances shown may not translate to the full year result, but the Plan figures for six months to date have been adjusted to match expected timing of income and expenditure, where known.

The Operating Deficit and Deficit of Rates Income, as reported year to date, result from lower NZTA subsidy income on renewals expenditure and paying of some costs in full for the year, such as insurance premiums, annual software licenses and rates on Council properties, while rates income is spread over 4 quarters.

The commentary below provides explanation where significant variances from the planned position have occurred.

Commentary Capital Statements The Capital Expenditure Statements for the 6 months to 31 December 2016 are attached. The Summary Capital Statement shows the overall Council spend, summarised by activity. The detailed statements list the capital projects under each activity. Some comments are noted alongside the projects to inform

471 about the status of the project. Further information can be provided if requested, and in future months, forecasts of the year end position will be added to the report.

Roading ‐ rates required 4.9% below plan

The subsidised road maintenance spend is ahead of plan levels as preparation work has been done for up‐coming reseals and shape correction work. Only 28% of the subsidised renewals programme had been completed as at 31 December as contractors delayed starting until the weather and their resources allowed. There had been no flood damage expenditure in the first 6 months. Non‐subsidised (urban) work reflects a large portion of the footpaths renewals contracts completed in the first half of the year, including the Colombo Rd footpath which was not budgeted as a carry forward (but it is funded from Reserves). There is less NZTA subsidy income than planned as a result of the overall lower subsidised expenditure.

Water Supplies ‐ Urban 1.7% below plan

Overall, urban water supply costs are 1.4% below the planned level for the 6 month year to date period. Lower water treatment operating costs (down 4.2%) are the largest contributor to this.

Rural water supply income reflects Wainuioru Water Supply selling units of water, with the proceeds being transferred to the schemes reserves.

Sewerage Services Urban 4.7% below plan

Income to this activity is above the planned level, due to a contribution to legal costs on the subdivision which saw land exchanged with Pakaraka Farms (Makoura Stream boundary adjustments). Also, higher than planned is septic tank disposal fees. Income from the sale of baleage is low as at six months and the plan has been adjusted to match this. Close to 2,000 bales of baleage stock is available for sale and will be valued as stock at year end if not sold before.

Sewerage reticulation operating costs are below planned. Wastewater treatment costs are running above planned, being due to baleage costs that will recovered when baleage is sold or added to stock.

Riversdale Beach sewerage plan allowed for capital contributions being received. To date more than planned has been received, largely from existing ratepayers paying off their capital contributions. Both Riversdale and Castlepoint operating costs are running above planned levels – largely due to unexpected pump maintenance work.

Stormwater 12.2% below plan

This is due to lower than planned cleaning & flushing work underspent at 6 months to date.

Solid Waste Services 18.7% below plan rates required

Income from sale of official bags is below planned levels by 2.1% but is $20k up when compared to last year. Gate fee income at Nursery Road is 8.0% above plan as higher tonnages than planned have been received (and charged for). The disposal costs of that waste (to Bonny Glen) are also above plan.

Recycling and composting operating costs are 6.1% below planned levels for the period largely due to not having a waste minimization resource for the period.

472

Community Facilities and Activities

Parks, reserves and sportsfields overall are below plan by 4.5% with some ordered work underspent YTD.

The Recreation Centre net rates required are 2.1% less than planned year to date, largely due to little use of the backup diesel boiler.

District Building income is below planned as no rental income from hireage of the Town Hall and Frank Cody Lounge has been possible. Operating costs are 44.7% higher than planned and reflect rental being paid on office space. The District Building was largely closed in early July and the cost of external office rental was not factored into the budgets.

Housing for the Elderly income and expenditure are both running below planned levels YTD.

Other property rates required for the 6 months is 1.1% above the planned levels, due largely to lower rental income than was anticipated.

Airport operating/maintenance costs have been less than planned for the 6 months, offset by income below planned.

The library’s operating costs are below the planned level, resulting in 4.9% less than planned rates requirement.

Community Development expenditure is running below plan YTD as the people development projects come up to speed. Lower transfers from reserves offset this to a large extent.

Economic Development & Promotion expenditure is 15.7% above planned levels for the six months. This mostly relates to expenditure on the My Masterton project and Business Lab. These unplanned costs are expected to be offset by applying funding allowed (in Community Development) for people development.

Planning & Regulatory Services

Resource Management and planning rates requirement is 6.8% below planned levels. Financial contributions for the period were higher than planned but there is no change in the rate requirement as all financial contributions are transferred to reserves. Operating cost savings are running at 15.1% of plan.

Environmental Health rates requirement was 21.4% below the planned levels for the six months. Testing, noise control costs, staffing and Alcohol Act operating costs were all lower than planned for the period.

Building consent income fees are up 39.8% on what was planned and are 54.5% above last year. However, operating costs have run 44.6% above plan. This has been a combination of carrying extra staffing and using external contractors through a transition to a new team and to support a busy period with consent numbers higher than projected.

Parking control income is close to planned while costs are 9.0% more than planned YTD as some additional enforcement hours have been contracted through December.

Dog Control’s income from dog registration is 1.8% ahead of plan while costs are close to plan YTD.

473

Emergency Management rate requirement is 7.9% below planned levels due to lower than expected costs for the six months.

Rural Fire costs reflect the Council paying the costs of fire fighting. These costs are expected to be recovered from those who caused the fires.

Governance & Internal Functions

Representation costs reflect the running the LG election in October. The Plan allowed for the election costs as net of recoveries from the other parties that the Council runs elections for. Those recoveries are shown in these accounts as income rather than netted against the costs. Overall, the net election costs are expected to cost the Council less than was planned.

In the Corporate Services area interest income is 3.3% less than planned as less surplus cashflow has been able to be invested. Misc Income better than planned represents internal recoveries for LG election support and admin staff who have supported the Community Facilities team for number of months.

There have been some operational cost savings made for the six months in the IS activity. The Comms & Promotion activity includes unplanned costs for publication of the Pre‐election report and Summary Annual Report and additional promotion needed for the relocation of Council services to the Queen Street building. HR costs reflect training for both Admin and Building Control staff done early in the financial year.

Rates Receivable

The graph below provides a picture of the changes in the value of rates receivable, noting that the usual upward movement between the June and September quarters has taken place again.

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

Rate Arrears Analysis At the end of December 2016, the overall rates arrears were close to $743,000 which was $26,000 (3.4%) less than the same period last year. Included within these arrears were just under $200,000 of

474 rates uncollected from prior years rating (prior year = $204,000). All of the rates outstanding, especially those from previous rating years, are subject to active debt management processes.

Rates rebate processing during the first six months of 2016/17 saw 988 applications processed (last year 1015) paying a total of $548,939 in rates. The average rebate was $555.61 (last year $553.12). Rebate applications can be processed through until 30 June 2017 for the current rating year.

Two properties are close to going to rating sale as the owner has not responded to any correspondence, advertising or formal legal notice steps. The houses are effectively abandoned and the court will soon issue the Council with authority to sell them to recover the outstanding rates and legal costs.

Statement of Financial Performance Six Months Year to Date To To 31 Dec 2016 31 Dec 2016 Full Year Actual Plan Variance 2016/17 Rates Revenue 13,822,776 13,791,873 30,903 26,882,178 Interest Received (external) 358,419 362,748 (4,329) 735,800 NZTA roading subsidies 1,601,840 1,705,954 (104,114) 4,275,237 Financial Contributions 171,631 133,334 38,297 363,600 Fees & Charges & Other Revenue 3,951,101 3,833,161 117,940 7,263,751 Total Operating Revenue 19,905,767 19,827,070 78,697 0.4% 39,520,566

Operating Expenditure 13,759,131 13,818,391 59,260 25,836,624 Interest expense 1,341,406 1,372,614 31,208 2,851,844 Depreciation & amortisation 5,493,270 5,468,094 (25,176) 10,936,143 Total Operating Expenditure 20,593,807 20,659,099 65,292 0.3% 39,624,611

Operating Surplus/(Deficit) ($688,040) ($832,029) $143,989 ($104,045)

475

Summary Statement of Capital Expenditure YTD Full Year 31-Dec-16 2016/17 $$ Roading Activity 1,803,561 4,849,056 Water Services 706,815 3,295,000 Sewerage Services 2,293,933 2,827,000 Stormwater Services 0150,000 Solid Waste Services 20,083 585,000 Project Office 225,941 2,429,400 Parks, Reserves & Sport Fields 132,917 1,816,500 Community Facilities, Economic Development 44,555 64,000 Other Property (includes District Building, cemeteries, conveniences) 81,874 392,400 Recreation Centre 27,045 130,000 Housing for the Elderly 26,124 167,250 Library & Archive 116,368 326,000 Airport 253,982 355,000 Regulatory Services 5,014 164,500 Corporate Services 100,835 213,000

TOTAL COUNCIL $ 5,839,048 $ 17,764,106 33%

476

6 mths Rates Requirement Summary 6 months 6 months Variance 2016/17 Prior Year 2016/17 6 Months to 31 Dec Actual Plan Plan $ RATES REQUIRED BY ACTIVITY $ $ $ $ Transport 2,230,592 Roading 2,422,564 2,547,141 124,577 5,588,312 Water Services 1,611,372 Urban Water supply 1,582,652 1,609,621 26,969 2,959,462 (17,514) Rural Water supplies & races (29,086) (25,968) 3,118 83,984 Sewerage Services 3,240,819 Urban Sewerage system 3,193,277 3,247,090 53,813 6,180,647 199,269 Rural Sewerage systems 178,872 173,227 (15,646) 302,829 Stormwater Services 231,231 Stormwater 214,375 244,186 29,811 517,701 Solid Waste Services 182,916 Solid Waste Services 96,837 151,760 54,923 245,717 290,067 Waste Minimisation Services 308,310 346,873 38,563 684,830 Community Facilities/Activities 1,072,910 Parks, Reserves & Sportsfields 1,077,308 1,127,973 50,665 2,174,899 632,435 Recreation Centre 655,666 669,500 13,834 1,239,719 25,836 Cemeteries 24,989 28,958 3,969 76,556 791,373 Library & Archive 864,442 908,975 44,533 1,739,073 184,766 District Building 339,706 216,655 (123,051) 353,572 50,654 Housing for Elderly 47,238 67,334 20,096 29,504 244,585 Other Property 293,050 295,358 2,307 503,137 (7,376) Hood Airport 38,889 41,353 2,464 150,814 90,199 Mawley Holiday Park 84,958 78,548 (6,410) 94,843 Community Services 395,677 Community Development 619,233 631,801 12,568 987,573 194,028 Arts & Culture 196,770 197,104 334 394,634 433,837 Economic Development & Promotion 404,757 367,045 (37,713) 828,968 Planning & Regulatory Services 376,961 Resource Management & Planning 361,144 387,588 26,444 660,907 157,594 Building Control 200,912 127,881 (73,031) 233,484 146,813 Environmental Health 156,247 198,847 42,600 385,048 21,799 By Law Control/General Inspection 43,369 38,692 (4,677) 73,518 (18,593) Parking Control (25,063) (35,150) (10,087) (69,190) 25,098 Dog Control 20,512 27,545 7,032 36,336 146,122 Rural Fire 143,947 144,841 894 278,384 80,512 Emergency Management 87,767 95,309 7,542 174,992 Governance 284,472 Representation 326,582 332,561 5,979 613,494 97,509 Internal Functions (net) 199,068 139,726 (59,342) - $ 13,395,961 Total Rates Requirement $ 14,129,293 $ 14,382,372 $ 243,079 1.7% $ 27,523,747 RATES INCOME 13,341,141 Masterton District Council rates* 13,765,173 13,739,373 25,800 27,478,747 120,935 Penalty Income 129,207 120,000 9,207 180,000 (68,828) Rates Remissions (71,604) (67,500) (4,104) (135,000) - Discounts Given - - $ 13,393,248 Net Rates Income $ 13,822,776 $ 13,791,873 $ 30,903 0.2% $ 27,523,747 ($2,713) Surplus/(Deficit) of Rates Income ($306,517) ($590,499) $ 273,981 1.9% $ 0

477

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Prior Yr 2016/17 Actual Plan Variance % Plan Roading ROADS, STREETS, FOOTPATHS & PARKING AREAS 1,379,890 Income: NZTA subsidies* 1,601,840 1,705,954 (104,114) 4,275,239 196,183 Petrol Tax & Other Income 147,884 139,280 8,604 310,020 182,335 Transfers from Reserves 520,852 413,852 107,000 531,350 1,758,408 Sub Total 2,270,576 2,259,086 11,490 0.5% 5,116,609

1,946,931 Expenses: Subsidised Maintenance 1,974,229 1,885,799 (88,430) 3,783,519 712,313 Subsidised Renewals 1,054,238 1,081,716 27,478 3,729,556 0 Flood Damage 0 250,003 250,003 500,000 6,649 Construction (bridge renewals) 0 0 0 0 104,790 Non-Subsidised - Rural 101,688 100,348 (1,340) 216,696 689,035 Non-Subsidised - Urban 1,025,110 980,288 (44,822) 1,457,646 2,362,560 Depreciation 2,312,178 2,312,172 (6) 4,624,341 125,555 Tsf to reserves 51,615 21,818 (29,797) 45,000 5,947,834 Sub Total 6,519,059 6,632,145 113,086 1.7% 14,356,758

(2,017,368) less Depn not rated (1,838,497) (1,838,497) - (3,676,993) 58,534 plus Loan Repaymt 12,578 12,578 - 25,156 8,896 plus Capex funded from rates 0

$2,230,592 Net Cost - Rates Required $2,422,564 $2,547,141 124,577 4.9% $5,588,312

478

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan

Water Supplies URBAN WATER SUPPLY 82,978 Income: Metered water charges 77,250 80,400 (3,150) 242,400 82,978 sub total 77,250 80,400 (3,150) 242,400

476,626 Expenses: Water reticulation costs 444,394 450,110 5,716 761,429 560,453 Water treatment costs 554,017 578,461 24,444 4.2% 1,117,528 588,567 Depreciation 601,885 593,844 (8,041) 1,187,694 1,625,646 sub total 1,600,297 1,622,415 22,118 1.4% 3,066,651 (57,555) less Depn not rated (81,981) (73,981) 8,000 (147,961) 126,259 plus Loan Repaymt 141,586 141,586 - 283,172

$1,611,372 Net Cost - Rates Required $1,582,652 $1,609,621 26,969 1.7% $2,959,462

RURAL WATER SUPPLIES & RACES 174,316 Income: User charges 205,789 165,698 40,091 183,200 0 Transfers from reserves 0 0 - 0 174,316 sub total 205,789 165,698 40,091 183,200 120,193 Expenses: Rural water supplies 116,533 110,573 (5,960) -5.1% 208,879 28,301 Depreciation 28,451 27,438 (1,013) 54,867 15,000 Tsf to reserves 30,000 0 (30,000) 3,438 (10,822) Operating (Surplus)/Deficit (30,805) (27,687) 3,118 80,546 (7,475) less Depn not rated - - - - 783 plus Loan Repaymt 1,719 1,719 - 3,438 ($17,514) Net Cost - Rates Required ($29,086) ($25,968) 3,118 -12.0% $83,984

479

31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan Sewerage Services URBAN SEWERAGE SYSTEM 178,349 Income: External income 205,676 165,500 40,176 19.5% 435,751 85,000 Transfers from Reserves 85,000 85,000 - 170,000 263,349 sub total 290,676 250,500 40,176 605,751

638,992 Expenses: Sewerage reticulation 617,856 674,472 56,616 1,208,256 1,667,741 Wastewater treatment 1,677,657 1,637,265 (40,392) 3,206,445 1,067,674 Depreciation 1,052,251 1,049,664 (2,587) 2,099,319 Transfer to Reserves 0 3,374,407 sub total 3,347,764 3,361,401 13,637 0.4% 6,514,020 (527,879) less Depn not rated (569,515) (569,515) - (1,139,030) 657,641 plus Loan Repaymt 705,704 705,704 - 1,411,408 $3,240,819 Net Cost - Rates Required $3,193,277 $3,247,090 $53,813 1.7% $6,180,647

RURAL SEWERAGE SCHEMES 150 Income: User charges 150 78 72 5,150 0 Riversdale Beach cap. contributions 72,321 39,024 33,297 96,598 15,000 Transfers from reserves 15,000 15,000 - 30,000 15,150 sub total 87,471 54,102 33,369 131,748 31,237 Expenses: Castlepoint sewerage scheme 38,738 31,352 (7,386) 49,567 101,530 Riversdale sewerage scheme 112,968 101,173 (11,795) -12% 195,407 5,020 Tinui sewerage scheme 6,466 8,016 1,550 16,029 122,630 Depreciation 127,539 126,156 (1,383) 252,311 260,417 sub total 285,712 266,697 (19,015) -7.1% 513,314 (113,044) less Depn not rated (115,694) (115,694) - (231,387) 67,046 plus Loan Repaymt 96,325 76,325 (30,000) 152,650 - - $199,269 Net Cost - Rates Required $178,872 $173,227 (15,646) $302,829

480

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan

Stormwater STORMWATER 0 Income: Miscellaneous income 0 0 - 0 67,500 Transfers from reserves 67,500 67,500 - 135,000 67,500 sub total 67,500 67,500 - 135,000

161,865 Expenses: Stormwater maintenance 145,255 175,060 29,805 379,451 136,866 Depreciation 136,620 136,626 6 273,250 298,731 sub total 281,875 311,686 29,811 652,701 (66,228) less Depn not rated (70,651) (70,651) - (141,302) 66,228 plus Loan Repaymt 70,651 70,651 - 141,302 $231,231 Net Cost - Rates Required $214,375 $244,186 29,811 12.2% $517,701

Solid Waste SOLID WASTE MANAGEMENT 158,488 Income: Refuse bag recoveries 178,732 182,598 (3,866) -2.1% 365,200 1,203,046 Transfer station gate fees 1,245,670 1,153,834 91,836 8.0% 2,387,133 42,674 Waste levy recovery 46,719 42,498 4,221 70,000 17,500 Transfers from Reserves 5,000 15,001 (10,001) 65,003 1,421,708 sub total 1,476,121 1,393,931 82,190 5.9% 2,887,336 202,622 Expenses: Refuse Collection 191,460 200,670 9,210 401,344 1,045,123 Waste transfer & disposal 1,077,783 1,048,804 (28,979) -2.8% 2,141,654 491,661 Recycling & Composting 490,036 521,874 31,838 6.1% 1,034,833 108,339 Rural Landfills 110,511 109,737 (774) 217,095 1,847,745 sub total 1,869,789 1,881,085 11,296 0.6% 3,794,926 40,000 plus Transfer to Reserves 0 0 - 0 (35,102) less Depn not rated (34,061) (34,061) - (68,122) 42,048 plus Loan Repaymt 45,540 45,540 - 91,079 $472,982 Net Cost - Rates Required $405,146 $498,633 93,486 18.7% $930,547

481

31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan Community Facilities & Activities PARKS, RESERVES & SPORTSFIELDS 23,612 Income: Parks & reserves 14,984 15,998 (1,014) 30,900 9,780 Sports fields 9,639 12,168 (2,529) 27,840 63,931 Transfers from Reserves 60,000 63,695 (3,695) 231,002 97,322 Sub Total 84,623 91,861 (7,238) 289,742 712,923 Expenses: Parks & reserves 695,716 742,808 47,092 1,547,562 238,987 Sportsfields 216,910 229,428 12,517 421,885 234,722 Depreciation 235,406 233,700 (1,706) 467,399 (52,072) less Depreciation not rated (18,597) (18,597) - (37,194) 35,672 plus Loan Repayment 32,495 32,495 - 64,989 1,170,232 Sub Total 1,161,930 1,219,834 57,903 2,464,641

$1,072,910 Net Cost - Rates Required $1,077,308 $1,127,973 50,665 4.5% $2,174,899

RECREATION CENTRE 35,853 Income: Lease & other income 29,400 33,600 (4,200) 48,600 0 Transfers from Reserves 0 0 - 0 35,853 sub total 29,400 33,600 (4,200) 48,600

529,391 Expenses: Recreation Centre 521,821 542,454 20,633 967,014 244,896 Depreciation 248,245 245,646 (2,599) 491,305 774,288 sub total 770,066 788,100 18,034 1,458,319 (115,622) less Depn not rated (95,265) (95,265) - (190,530) 9,622 plus Loan Repaymt 10,265 10,265 - 20,530 $632,435 Net Cost - Rates Required 655,666 669,500 13,834 2.1% $1,239,719 CEMETERIES 41,207 Income: Burial Fees & Sale of Plots 41,813 41,200 613 78,700 0 Transfers from Reserves 0 0 - 7,000 41,207 sub total 41,813 41,200 613 1.5% 85,700

67,043 Expenses: Operating costs 66,801 70,158 3,357 162,256

$25,836 Net Cost - Rates Required 24,989 28,958 3,969 13.7% $76,556

482

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan

DISTRICT BUILDING 111,590 Income: Rental - District Building 91,296 110,370 (19,074) 220,750 0 Transfers from Reserves 0 0 - 0 111,590 sub total 91,296 110,370 (19,074) 220,750

205,927 Expenses: Operating & maintenance 339,869 234,911 (104,958) -44.7% 390,096 89,599 Depreciation 90,255 91,236 981 182,469 295,526 sub total 430,123 326,147 (103,977) 572,565 - less Depn not rated - - - - 831 plus Loan Repaymt 879 879 - 1,757 $184,766 Net Cost - Rates Required $339,706 $216,655 ($123,051) -56.8% $353,572

HOUSING FOR THE ELDERLY 206,203 Income: Rental income 184,294 199,098 (14,804) 398,200 0 Transfers from Reserves 0 0 - 10,000 206,203 sub total 184,294 199,098 (14,804) 408,200

184,346 Expenses: Housing for the Elderly 187,019 207,306 20,288 319,456 156,911 Depreciation 159,707 159,126 (581) 318,248 341,257 sub total 346,726 366,432 19,707 5% 637,704 (84,400) less Depn not rated (100,000) (100,000) - (200,000) - plus Loan Repaymt - - - - $50,654 Net Cost - Rates Required 62,431 67,334 $4,903 $29,504

483

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 Actual Plan Variance Plan

OTHER PROPERTY 81,741 Income: Rental - Other Properties 80,087 95,900 (15,813) -16.5% 181,300 162,953 Mawley Holiday Park 162,038 162,495 (457) -0.3% 368,501 25,002 Forestry recoveries (net) 34,002 25,002 9,000 50,000 5,000 Transfers from Reserves 12,500 12,500 - 65,000 274,696 sub total 288,628 295,897 (7,269) -2.5% 664,801 75,592 Expenses: Other Property maintenance 81,247 87,856 6,609 179,811 129,760 Public Conveniences 139,431 139,709 278 272,754 35,997 Rural halls 37,137 45,607 8,470 67,863 25,845 Property Development 25,373 28,951 3,578 42,777 188,922 Mawley Park 216,735 213,473 (3,262) 406,825 44,375 Forestry 50,591 39,508 (11,083) 63,374 152,288 Depreciation 148,621 147,198 (1,423) 294,377 652,780 sub total 699,137 702,303 3,166 0.5% 1,327,781 (66,409) less Depn not rated (57,128) (57,128) - (114,255) 23,109 plus Loan Repaymt 24,628 24,628 - 49,255 $334,785 Net Cost - Rates Required 378,009 373,906 ($4,103) -1.1% $597,980 AIRPORT 162,031 Income: Operating Income 145,924 151,164 (5,240) 211,499 2,500 Tsf from reserves 5,000 5,000 - 10,000 164,531 150,924 156,164 (5,240) 221,499

94,426 Expenses: Operating Costs 121,130 128,448 7,318 6% 234,185 38,132 Depreciation 38,729 39,114 385 78,218 0 Transfers to Reserves 0 0 - 0 (31,974) Operating (Surplus)/Deficit 8,934 11,398 2,464 90,904 (15,000) less Depn not rated (12,000) (12,000) - (24,000) 39,598 plus Loan Repaymt 41,955 41,955 - 83,910 ($7,376) Net Cost - Rates Required $38,889 $41,353 $2,464 $150,814

484

31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan LIBRARY & ARCHIVE 18,623 Income: Donations Income 0 0 - 24,596 56,965 Operating Income 77,934 74,196 3,738 90,654 5,000 Transfer from reserves 0 0 - 0 80,588 Sub Total 77,934 74,196 3,738 115,250 69,393 Expenses: Book purchases 68,226 95,004 26,778 175,000 594,998 Library operating costs 662,829 687,151 24,322 1,282,663 148,363 Archive operating costs 170,674 161,288 (9,386) 317,193 138,599 Depreciation 140,647 139,728 (919) 279,467 951,353 1,042,376 1,083,171 40,795 2,054,323

(79,393) less Depn not rated & capex transfers (100,000) (100,000) - (200,000) $791,373 Net Cost - Rates Required $864,442 $908,975 $44,533 4.9% $1,739,073 COMMUNITY DEVELOPMENT 22,665 Income: Misc. & Grant Income 6,372 198 6,174 400 78,392 Transfers from Reserves 64,166 112,599 (48,433) 501,000 101,057 Sub Total 70,538 112,797 (42,259) 501,400 496,734 Community devlpmt grants & other costs 689,771 744,598 54,828 1,488,973 0 Transfers to Reserves 0 0 - 0 $395,677 Net Cost - Rates Required $619,233 $631,801 12,568 2.0% $987,573 ARTS & CULTURE 11,173 Income: Misc. & Grant Income 11,173 11,000 173 22,000 0 Transfers from Reserves 0 0 - 15,000 11,173 Sub Total 11,173 11,000 173 37,000 205,201 Expenses: Arts & Culture 207,943 208,104 161 431,634 $194,028 Net Cost - Rates Required $196,770 $197,104 334 0.2% $394,634

485

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan

ECONOMIC DEVELOPMENT & PROMOTION 2,456 Income: Misc. & Grant Income 4,078 3,750 328 4,500 100,000 Transfers from Reserves 20,000 0 20,000 20,000 102,456 Sub Total 24,078 3,750 20,328 24,500

360,766 Expenses: Econ. devlpmt projects 386,367 331,191 (55,177) 362,523 133,120 Destination Wairarapa 1,046 768 (278) 275,000 40,000 Events grants 682 514 (168) 133,000 CBD Amenities costs 39,112 36,695 (2,417) 79,691

533,886 427,208 369,168 (58,040) -15.7% 850,214 (4,237) less Depn not rated (6,144) (6,144) 0 (12,287) 6,645 plus Loan Repayment 7,771 7,771 0 15,541 536,294 Sub Total 428,835 370,795 (58,040) 853,468

$433,837 Net Cost - Rates Required $404,757 $367,045 (37,713) -10.3% $828,968

486

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan Regulatory Services RESOURCE MANAGEMENT & PLANNING 34,179 Income: Consent Fees & Other Income 38,037 41,352 (3,315) 82,700 164,123 Financial Contributions 120,016 107,502 12,514 215,000 20,502 Internal Recoveries 20,502 20,502 - 41,000 0 Transfers from Reserves 0 5,750 (5,750) 11,500 218,804 Sub Total 178,555 175,106 3,449 350,200

237,836 Expenses: Operating costs 219,668 258,643 38,975 15.1% 556,230 136,806 River scheme contrib. (GWRC) 143,016 139,551 (3,465) 132,877 221,123 Transfers to Reserves 177,015 164,500 (12,515) 322,000 595,765 Sub Total 539,698 562,694 22,996 1,011,107

$376,961 Net Costs - Regulatory Services $361,144 $387,588 26,444 6.8% $660,907

ENVIRONMENTAL HEALTH 52,617 Income: Fees & Licences 57,974 59,688 (1,714) 139,345 96,134 Internal Recoveries 91,317 97,542 (6,225) 195,085 148,751 Sub Total 149,291 161,230 (11,939) 342,430

295,563 Expenses: Operating costs 305,538 360,077 54,539 15.1% 727,478 295,563 Sub Total 305,538 360,077 54,539 727,478 $146,813 Net Cost - Rates Required $156,247 $198,847 42,600 21.4% $385,048

BYLAW CONTROL/GENERAL INSPECTION 7,067 Income: Gen. Inspection recoveries 1,849 5,052 (3,203) 10,100 93,298 Internal Recoveries 76,647 87,852 (11,205) 175,700 0 Transfers from Reserves 0 0 - 0 100,365 Sub Total 78,497 92,904 (14,407) 185,800 - 122,163 Expenses: Operating costs 121,865 131,596 9,731 7.4% 259,318

$21,799 Net Cost - Rates Required $43,369 $38,692 ($4,677) $73,518

487

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan BUILDING CONTROL 302,331 Income: Consent fees & charges 467,141 334,164 132,977 39.8% 668,326 0 Transfers from Reserves 0 0 - 0 302,331 Sub Total 467,141 334,164 132,977 668,326 - 459,925 Expenses: Operating costs 668,053 462,045 (206,008) -44.6% 901,810 0 Transfers to Reserves 0 0 - 0 459,925 Sub Total 668,053 462,045 (206,008) 901,810 $157,594 Net Cost - Rates Required $200,912 $127,881 (73,031) $233,484

PARKING CONTROL 108,606 Income: Meters & Fines 120,526 122,754 (2,228) -1.8% 245,500 86,336 Expenses: Operating Costs 95,463 87,604 (7,859) -9.0% 176,310 0 Tsf to reserves 0 0 - 0 86,336 Sub Total 95,463 87,604 (7,859) 176,310 (22,270) Operating (Surplus)/Deficit (25,063) (35,150) 10,087 (69,190) 3,677 Loan Repaymt (net) 0 0 - 0 ($18,593) Net Cost - Rates Required ( ) = surplus ($25,063) ($35,150) (10,087) ($69,190) RURAL FIRE CONTROL 138,547 Income: Recoveries 36,427 498 35,929 1,000 0 Transfers from Reserves 0 0 - 0 138,547 Sub Total 36,427 498 35,929 1,000 284,669 Expenses: Operating costs 180,374 145,339 (35,035) 279,384

$146,122 Net Cost - Rates Required $143,947 $144,841 $894 0.6% $278,384 DOG CONTROL 330,347 Income: Dog registrations & Pound fees 334,255 328,220 6,035 1.8% 336,450 330,347 Sub Total 334,255 328,220 6,035 336,450 - 196,786 Expenses: Operating costs 187,065 191,771 4,706 2.5% 373,955 (556) less Depn not rated (585) (585) - (1,169) 158,659 Transfers to Reserves 168,287 164,578 (3,709) 0 $25,098 Net Cost - Rates Required $20,512 $27,545 $7,032 $36,336

488

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan

EMERGENCY MANAGEMENT 2,739 Income: Recoveries CDC & SWDC 3,400 1,248 2,152 13,099 - 78,251 Expenses: Operating costs 86,167 91,557 5,390 213,091 5,000 Transfer to Reserves 5,000 5,000 - 5,000 83,251 Sub Total 91,167 96,557 5,390 218,091

$80,512 Net Cost - Rates Required $87,767 $95,309 $7,542 7.9% $174,992

Governance REPRESENTATION 185,370 Income: Internal Allocation 204,498 204,498 - 408,994 0 Recoveries - election & governance 87,009 0 87,009 0 7,629 Transfers from Reserves 16,125 28,000 (11,875) 28,000 192,999 Sub Total 307,632 232,498 75,134 436,994

195,537 Expenses: Councillors costs 193,591 201,907 8,316 391,092 7,633 Election costs 148,092 78,000 (70,092) 78,000 34,554 Consultation & publications 17,439 14,000 (3,439) 47,000 217,878 Other support costs 275,091 271,152 (3,939) 534,396 18,000 Transfers to Reserves - c/fwd funding 0 0 - 0 477,471 Sub Total 634,214 565,059 (69,155) 1,050,488 $284,472 Net Cost - Representation $326,582 $332,561 5,979 1.8% $613,494 Internal Functions ENGINEERING CONSULTANCY 223,443 Income: Internal recoveries 249,687 247,284 2,403 494,562 26,147 External recoveries 21,580 32,496 (10,916) 65,000 0 Transfers from Reserves 0 0 - 0 249,590 Sub Total 271,268 279,780 (8,512) 559,562 258,381 Expenses: Operating costs 272,812 276,565 3,753 554,562 2,500 Transfers to Reserves 0 2,500 2,500 5,000 $11,291 Net Cost - Rates Required (cr) $1,544 ($715) (2,259) $0

489

MASTERTON DISTRICT COUNCIL 31 Dec 2015 Year to Date Operating Statements 31 Dec 2016 31 Dec 2016 2016/17 Actual 2016/17 0 Actual Plan Variance Plan

ASSET & PROJECT MANAGEMENT 353,753 Income: Internal recoveries 384,709 391,596 (6,887) 783,189 4,390 External recoveries 7,569 7,500 69 15,000 358,142 Sub Total 392,278 399,096 (6,818) 798,189

382,266 Expenses: Consultancy 396,389 413,208 16,819 798,189 $24,123 Net Cost - Rates Required $4,111 $14,112 10,001 $0 CORPORATE SERVICES 102,746 Income: Misc Income 110,281 93,575 16,706 207,340

517,325 Interest Income 481,074 497,496 (16,422) (3.3%) 987,000 23,000 Transfer from Reserve 20,000 23,750 (3,750) 100,000 643,071 611,355 614,821 (3,466) 1,294,340

342,375 Expenses: Administration 428,721 410,984 (17,737) (4.3%) 779,612 630,593 Finance 640,639 646,049 5,410 0.8% 1,242,824 265,650 Information Services 297,882 327,754 29,872 9.1% 550,084 659,540 Management Group 454,883 440,954 (13,929) (3.2%) 890,552 Communications & Promotion 232,835 180,991 (51,844) (28.6%) 361,617 Human Resources 172,745 157,504 (15,241) (9.7%) 315,832 368,916 Transfers to Reserves (interest) 352,672 352,500 (172) 705,000 (1,561,908) Corporate Services Apportionment (1,775,610) (1,775,586) 24 (3,551,181) 705,165 804,767 741,150 (63,617) 1,294,340

$62,094 Net Cost - Rates Required $193,413 $126,329 ($67,084) $0

490

CAPITAL EXPENDTIURE STATEMENTS

CAPITAL EXPENDITURE YTD Full Year 6 Months Year to Date $$ Department / Project 31-Dec-16 2016/17 Commentary Roading Subsidised Roading Reseals and rehabilitation contracts have been let, work Roading renewals - rural 464,737 2,329,868 expected between Jan and April. Reseals and rehabilitation contracts have been let, work Roading renewals - urban 248,607 746,710 expected between Jan and April. Bridge renewals 8,696 72,907 Includes subsidised portion of Colombo Rd and Castlepoint Rural/Urban minor improvements 332,198 580,072 stage 1B Non- Subsidised Roading Castlepoint Safety Improvements 164,254 180,000 Stage 1B completed Neighbourhood Planning ‐ provision 0 105,800

Urban footpath renewals 329,898 370,000 Most footpath reseal work completed in first 5 months LED streetlighting 9,000 350,000 Planning work underway Colombo Road - footpath western side 110,008 0 Work was carried over from prior year Car park seal renewals 17,137 5,000 Queen Street - CBD Rejuvenation 9,017 108,700 Project work includes consultation process 1,803,561 4,849,056 Water Services Water reticulation renewals 564,724 1,250,000 Renewal programme is on‐going Water connection replacements 65,442 200,000 450mm trunk main replacement 0 1,500,000 Work on hold as alternate technology is assessed WTP consent take 31,420 175,000 Reservoir upgrades 4,904 0 WTP equipment renewals 0 95,000 Wainuioru Water supply 20,962 30,000 Fluoride-free water supply 11,171 10,000 Completed Tinui equipment renewals 0 5,000 WTP - reseal access road at Upper Plain 0 30,000 706,815 3,295,000

491

CAPITAL EXPENDITURE YTD Full Year 6 Months Year to Date $$ Department / Project 31-Dec-16 2016/17 Commentary Sewerage Services Urban/Rural Sewerage Hydraulic/ground water modelling 0 75,000 Sewer Renewals 497,855 1,100,000 Renewal programme is on‐going

WWTP equipment 77,747 40,000 Various plant items needed for silage operation Homebush - investigate & install further treatment & disposal 58,582 1,450,000 Further work on hold Land purchases 1,578,868 0 Purchase of Pakaraka and deposit on neighbouring land Riversdale Sewerage System Upgrade 15,287 12,000 Sew Treatment Upgrade - consents 6,108 0 Homebush contract completion 47,835 150,000

2,282,282 2,827,000

Total Sewerage Services 2,282,282 2,827,000

Stormwater Services Stormwater renewals 0 150,000 0 150,000 Solid Waste Services Landfill - Special Waste Facility c/fwd 20,083 0 Metal yard completed Reuse recovery store 0 50,000 Nursery Road - Establish a hard fill site 0 335,000 Roof over transfer station 0 200,000 20,083 585,000

492

CAPITAL EXPENDITURE YTD Full Year 6 Months Year to Date $$ Department / Project 31-Dec-16 2016/17 Commentary Projects Office Streetscape

Streetscape - Lansdowne C/fwd 162,931 0 Completion was expected in prior year, hence no budget

Streetscape - Landsdowne u/grd power C/fwd 38,321 0 A separate financial report for the project will be prepared. 201,253 0 Information Technology Document Management system c/fwd 23,584 62,900 23,584 62,900

Community Projects Sport - Netball facility upgrade 1,104 670,000 Awaiting other funding Conveniences - Riversdale Beach 0 20,000 Water supply costs still to come Tinui Rural Fire Station - paid prior year 0 47,000 Budgeted but was paid over in prior year 1,104 737,000

Property Earthquake strengthening 0 1,225,000 Replace carpet in offices & FC lounge 0 90,000 Renovations office areas 0 314,500 0 1,629,500

TOTAL Project Office 225,941 2,429,400

493

CAPITAL EXPENDITURE YTD Full Year 6 Months Year to Date $$ Department / Project 31-Dec-16 2016/17 Commentary Community Facilities/Activities Parks, Reserves & Sports fields Council decision to roll into a larger project and implement Q E Park - renewal project 14,879 195,000 in 2017/18 Kidz Own Junior playground area 30,911 50,000 Upgrade structures /facilities include playgrounds 0 28,000 Henley Lake - landscape development 12,391 5,000 Riversdale Beach - landscaping & rubbish bin 0 33,000 Developing rural district networking trails 0 132,500 Proposals being developed Castlepoint furniture renewals 11,000 10,000 Completed Parks & Open spaces - signage 0 10,000 Mauriceville Domain - power (Clarke Domain) 19,664 0 Carried forward and completed Henley Lake - intake channel realignment 15,627 500,000 Chinese Pagoda 0 30,000 Street trees additions & replacements 10,741 12,000 Recreational trails - upgrade & extension of trails 0 62,000 Proposals being developed Flow Meter telemetery 0 50,000 Memorial Park upgrades 4,191 35,000 Awaiting priorities from the Trust Sports facilities building 0 218,000 Gathering quotes for work Cricket Facility - Grandstand upgrade 5,400 385,000 Project awaiting other funding Sports facilities upgrading - provision 8,113 55,000 South Park Sports Facilities Provision 06,000 132,917 1,816,500 Community Facilities, Economic Development Christmas decorations 28,074 0 CCTV renewals - public & open spaces 0 20,000 Town square - irrigation & trees 0 25,000 Project deferred CBD - Public Wi-Fi infrastructure 16,482 19,000 44,555 64,000

494

CAPITAL EXPENDITURE YTD Full Year 6 Months Year to Date $$ Department / Project 31-Dec-16 2016/17 Commentary Conveniences Public conveniences - misc items 03,000

03,000 Recreation Centre Outdoor pools upgrade 0 45,000 Other plant & equipment 27,045 70,000 Stadium - scoreboard & clock 07,500 Stadium - PA System 07,500 27,045 130,000 Cemeteries Improve online services 0 10,000 Awaiting website upgrade Cemetery Facilities renewals 4,488 23,000 4,488 33,000 District Building Renew building equipment & systems 8,293 32,900 Town Hall - stacker chairs & trestle tables 09,000 Renew building equipment 1,131 29,000 Replace emergency generator 0 35,000 On hold due to building EQ status

9,424 105,900 Housing for the Elderly Renewals - flooring 6,275 25,000 Insulation upgrades 0 10,000 Window upgrades 16,478 15,000 Completed Replace/renew roofs Panama 0 70,000 Repainting exteriors & Pamana Homestead 3,370 47,250 26,124 167,250

495

CAPITAL EXPENDITURE YTD Full Year 6 Months Year to Date $$ Department / Project 31-Dec-16 2016/17 Commentary Other Properties

Land Purchases - Manaia Rd (Airport) 252,000 0 Rental Property upgrades 3,131 55,500 Replant Kaituna Forest 0 70,000 Rural halls upgrades 0 30,000 Rural halls - relocation & demolition 0 30,000 Mawley Park - playground 26,214 35,000 Completed Mawley Park - upgrades 38,617 30,000 Completed 319,962 250,500 Library & Archive Library book purchases 95,004 190,000 Library computer & equipment upgrades 21,364 25,000 Library - building extension design 0 75,000 Library - air conditioning 0 25,000 Library building & furniture upgrades 0 11,000 116,368 326,000

Airport Airport runway light replacement 0 150,000 Airport regulatory requirements (fencing misc.) 750 30,000 Airport relocate grass runway 0 15,000 1,982 355,000

TOTAL Community Facilities/Activities 682,865 3,251,150

496

CAPITAL EXPENDITURE YTD Full Year 6 Months Year to Date $$ Department / Project 31-Dec-16 2016/17 Commentary Regulatory Services Council vehicle fleet replacements 1,365 80,000 Animal Control - equipment 941 4,500 Animal Control - Animal Pound upgrade 0 50,000 Building control equipment 06,000 Environmental Health equipment 2,709 24,000 5,014 164,500 Corporate Services Computer and office equipment upgrades 64,649 90,000 Asset Management System c/fwd 21,176 0 Implementation carried into 2016/17 Council Meeting info systems 0 25,000 Website upgrade 13,130 40,000 GIS - aerial photography 1,880 58,000

100,835 213,000

Total $5,827,397 $17,764,106