Executive, Audit & Risk Committee Tuesday 24 October 2017 10.00Am

Executive, Audit & Risk Committee

Tuesday 24 October 2017 10.00am Taranaki Regional Council, Stratford Executive, Audit & Risk Committee - Agenda

Agenda for the meeting of the Executive, Audit & Risk Committee to be held in the Taranaki Regional Council chambers, 47 Cloten Road, Stratford, on Tuesday 24 October 2017 commencing at 10.00am.

Members Councillor D L Lean (Committee Chairperson) Councillor M J Cloke Councillor M P Joyce Councillor D N MacLeod Councillor N W Walker Councillor C W Williamson

Apologies

Notification of Late Items

Item Page Subject Item 1 4 Confirmation of Minutes

Item 2 8 Financial and Operational Report

Item 3 77 Quarterly Operational Report September 2017

Item 4 115 2017/2018 Insurance Programme

Item 5 120 Asset Management Plans for the Lower Waiwhakaiho Flood Control Scheme, Lower Waitara River Flood Control Scheme and Okato Scheme

Item 6 124 Asset Management Plans for Hollard Gardens and Tupare

Item 7 127 Tapuae Roa - Make Way for Taranaki

Item 8 133 Taranaki Stadium Trust 2016/2017 Annual Report

Item 9 159 Regional Software Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Item 10 191 Public Excluded

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Agenda Memorandum

Date 24 October 2017

Memorandum to Chairperson and Members Executive, Audit and Risk Committee

Subject: Confirmation of Minutes – 11 September 2017

Approved by: M J Nield, Director-Corporate Services

B G Chamberlain, Chief Executive

Document: 1948599

Resolve That the Executive, Audit and Risk Committee of the Taranaki Regional Council: 1. takes as read and confirms the minutes of the Executive, Audit and Risk Committee meeting of the Taranaki Regional Council held in the Taranaki Regional Council chambers, 47 Cloten Road, Stratford, on Monday 11 September 2017 at 10.00am 2. notes the recommendations therein were adopted by the Taranaki Regional Council on 18 September 2017. Matters arising Appendices Document #1929433 – Minutes Executive, Audit and Risk Committee

4 Executive, Audit & Risk Committee - Confirmation of Minutes

Minutes of the Executive, Audit and Risk Committee Meeting of the Taranaki Regional Council, held in the Taranaki Regional Council Chambers, 47 Cloten Road, Stratford, on Monday 11 September 2017 at 10.00am.

Members Councillors D L Lean (Committee Chairperson) M J Cloke D N MacLeod C S Williamson

Attending Messrs B G Chamberlain (Chief Executive) M J Nield (Director-Corporate Services) Mrs R Johnson (Financial Services Manager) Mrs K van Gameren (Committee Administrator) Mr R Ritchie (Communications Manager)

Apologies The apologies from Councillor M P Joyce and Councillor N W Walker were received and sustained.

Notification of Late Items General Business – Yarrow Stadium

1. Confirmation of Minutes – 31 July 2017

Resolved

THAT the Executive, Audit and Risk Committee of the Taranaki Regional Council: 1. takes as read and confirms the minutes of the Executive, Audit and Risk Committee meeting of the Taranaki Regional Council held in the Taranaki Regional Council chambers, 47 Cloten Road, Stratford, on Monday 31 July 2017 at 10.00am 2. notes the recommendations therein were adopted by the Taranaki Regional Council on 15 August 2017.

Lean/Williamson

Matters arising

There were no matters arising.

Doc# 1929433-v1

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2. Financial and Operational Report

2.1 The memorandum to receive information on the operational and financial performance of the Council was noted and discussed by the Committee. The audit of the Council is running later than usual. Consequently, last year’s ledger has not been able to be closed in sufficient time to produce the July 2017 Monthly Financial Report. This will be presented to the next Committee meeting. There are no known financial issues for 2017/2018 to date.

2.2 As part of the preparation of the 2016/2017 Annual Report, a full review of all debtors has been completed. It is recommended to write-off one bad debtor (Soda Blast [Taranaki] Limited) for $641.49. The debtor has ceased trading and the company has been removed from the Companies Register.

Recommended THAT the Taranaki Regional Council 1. receives the memorandum 2. approves the write-off of $641.49 due from Soda Blast (Taranaki) Limited 3. notes the digital media report 4. notes the Health and Safety report. Cloke/MacLeod

3. Public transport operational update for the quarter ending 30 June 2017

3.1 Mr M J Nield, Director-Corporate Services spoke to the memorandum providing the Committee with an operational report of the public transport services as at 30 June 2017.

Recommended THAT the Taranaki Regional Council 1. receives and notes the operational report of the public transport services for the quarter ending 30 June 2017 Lean/Williamson

4. General Business

Councillor M J Cloke provided an overview of the new corporate hospitality upgrade at the Yarrow Stand (Yarrow Stadium). Councillor Cloke noted that the new facilities were well appointed and well received by guests and visitors.

5. Public Excluded

In accordance with section 48(1) of the Local Government Official Information and

Meetings Act 1987, resolves that the public is excluded from the following part of the

Executive, Audit and Risk Committee Meeting Monday 11 September 2017

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proceedings of the Executive, Audit and Risk Committee Meeting on Monday 11 September 2017 for the following reason/s:

Item 6 – Confirmation of Confidential Minutes

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons and/or would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

Item 7 - Port Taranaki Limited

MacLeod/Lean

There being no further business, the Chairperson, Councillor D L Lean, declared the Executive, Audit and Risk Committee Meeting closed at 10.35am.

Confirmed

Committee Chairperson: ______D L Lean

Date: 24 October 2017

Executive, Audit and Risk Committee Meeting Monday 11 September 2017

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Agenda Memorandum

Date 24 October 2017

Memorandum to Chairperson and Members Executive, Audit and Risk Committee

Subject: Financial and Operational Report

Prepared by: M J Nield, Director—Corporate Services

Approved by: B G Chamberlain, Chief Executive

Document: 1948824

Purpose The purpose of this memorandum is to receive information on the operational and financial performance of the Council and to confirm the use of the Council’s Common Seal.

Recommendations That the Taranaki Regional Council: 1. receives the memorandum and the July and August 2017 Monthly Financial Reports 2. notes the digital media report 3. notes the Health and Safety report.

Background The Council produces a Monthly Financial Report outlining the financial performance for the month and year to date. This memorandum supports the Monthly Financial Report by providing additional supporting operational and financial information. The Council operates its Common Seal under delegated authority. Part of that delegated authority is the reporting back of all Seal transactions.

1. Monthly Financial Reports Attached are the Monthly Financial Reports for July and August 2017. The format of the reports has been revised and updated. The aim of the review is to provide the information in more of a graphical or scoreboard style.

In the “Financial Indicators Section”, for revenue, expenditure and operating surplus/deficit, for the whole of the Council the actual year to date (YTD) performance is compared against the YTD budget. A green variance indicates that the variance is within plus or minus 5%. A yellow variance indicates that the variance is greater than plus or minus 5% but less than plus or minus 10%. A red variance indicates that the variance is

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more than plus or minus 10%. The arrow indicates the trend over time. A green up arrow indicates and improving trend and a red down arrow indicates a deteriorating trend.

The financial performance pie graphs for operating expenditure and income show the actual performance against budget and the forecast performance against budget, accumulated for all activities. The green slice indicates the number of activities where the variance is within plus or minus 5%. The yellow slice indicates the number of activities where the variance is greater than plus or minus 5% but less than plus or minus 10%. The red slice indicates the number of activities where the variance is more than plus or minus 10%.

The operational performance pie graphs for levels of service and individual activities show the actual performance against budget and the forecast performance against budget, accumulated for all activities. The green slice indicates the number of levels of service/activities where the actual performance is on target. The yellow slice indicates the number of levels of service/activities where the actual performance is at risk of not being achieved. The red slice indicates the number of levels of service/activities where the actual performance is not meeting the target.

For each Group of Activities (Resource management, Biosecurity, Transport, Hazard management, recreation culture and heritage, and Regional representation, advocacy and investment management In the “Financial Indicators Section”, for revenue and expenditure, for that group of activities, the actual year to date (YTD) performance is compared against the YTD budget. A green variance indicates that the variance is within plus or minus 5%. A yellow variance indicates that the variance is greater than plus or minus 5% but less than plus or minus 10%. A red variance indicates that the variance is more than plus or minus 10%. The arrow indicates the trend over time. A green up arrow indicates and improving trend and a red down arrow indicates a deteriorating trend.

In the “Operating Expenditure by Activity” section, there is a dial for each activity comparing YTD expenditure against budget and a forecast for the rest of the year. The colours are green – variance of less than plus or minus 5%, yellow – plus or minus variance of more than 5% but less than 10% and red – plus or minus variance of more than 10%. The key components of each dial are:  The outer ring is the forecast for the rest of the year – green OK, yellow performance at risk, red target will not be achieved  The pointer indicates whether the variance is over or under budget and the colour indicates the scale of the variance – the actual variance figure sits at the bottom of the pointer  The YTD and Full Year (FY) budgets are included in the grey section.

The operational performance pie graphs for levels of service and individual activities show the actual performance against budget and the forecast performance against budget, accumulated for all activities within that group of activities. The green slice indicates the number of levels of service/activities where the actual performance is on target. The yellow slice indicates the number of levels of service/activities where the actual performance is at

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risk of not being achieved. The red slice indicates the number of levels of service/activities where the actual performance is not meeting the target.

Your feedback and comments on the new format would be appreciated.

Financially, the Council is in-line with the estimates established in the 2017/2018 Annual Plan. Operational expenditure is $90,124 under budget. Revenue is $180,385 under budget and finance income is $19,810 under budget. There are no significant expenditure variances (plus or minus $100,000). Trends are not fully established this early in the new financial year.

2. Operational report Operationally, programmes are currently on target with the planned levels of activity established for 2017/2018 in the 2017/2018 Annual Plan. – refer to the September 2017 Quarterly Operational Report (later in the Agenda).

3. Regional integrated ticketing project Between 27 September and 12 October 2017 the RITS project team meet with INIT’s project representatives from Germany on the design and build of the ticketing system. The two weeks of workshops were beneficial for both parties.

Work on the national ticketing programme (GRETS) continues. On 12 September 2017 the Greater Wellington project team met and briefed regional public transport managers on the market sounding results and the development of the request for tender. There was a high level of interest in the project from around the world.

4. Digital Media monitoring The Council’s communications activities are delivered across a range of channels such as publications, media releases, advertising and digital media. Some recent highlights are:  Media releases, newspaper stories and social media posts on Pukeiti Rainforest Centre, regional gardens, iwi representation, Annual Report, freshwater quality and management, riparian planting, hydrology, STRESS funding, SH3 north and public transport.  The communications campaign ‘Talking on Water’.  Planning for the 2017 Council Environmental awards.  Graphic design and communications support for the range of Council activities, particularly the opening of the Pukeiti Rainforest Centre.  The Council’s education programme continues to be busy with class visits/field trips on the river, riparian management, waste minimisation and recycling, biodiversity, and Civil Defence.

Hokonui Radio will broadcast a series of six educational interviews with Gary Bedford, Director—Environment Quality based on the Talking on Water campaign, beginning 16 October.

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Taranaki water health features in TVNZ news story South Taranaki farmers Jane and Damien Roper and TRC scientist Gary Bedford, Director of Environment Quality, were interviewed for a TV story on TV1’s current affairs show 7 Sharp this month. The story highlighted efforts by the Ropers and thousands of other Taranaki farmers for the positive work they were doing, supporting Taranaki fresh water health. It coincided with Taranaki’s latest Waterways Heath Report, released to the community on Wednesday 18 October, showing water health trends are the best yet, from 20 years of fresh water monitoring.

Pukeiti video published by stuff.co.nz The Taranaki Daily News decided to test their new drone at Pukeiti shortly after the opening of the Rainforest Centre. The footage was stunning and the birds eye view of the developments captured a lot of attention nationwide. Just on the Taranaki Daily News post alone around 2,500 people liked it, 1,180 people shared it and 1,200 people commented, mostly tagging their friends and family so that they could plan a visit sometime soon.

Council website During this period phase 2 of the website has gone live. A new Gardens section has been updated, which is a lot more visual and user friendly and reflects the personality of the gardens. The new Environment section means our users can slice, dice and download data to suit their specific needs. We have a new visual meetings calendar, and have also improved the search functionality so people will receive more meaningful content when they are looking for something specific on our website. A demonstration of the new functionality will be presented to the 31 October 2017 Ordinary Meeting.

Social media Over the past six weeks the Council has made 69 Facebook posts and 25 Twitter posts across its Council, gardens and transport pages (and its education group).

The Taranaki Regional Council Instagram account (which is a more visual platform) now has 152 followers and will continue to grow as we post more content. If you use Instagram personally, feel free to follow this page - @TaranakiRC.

We closely observe the performance of our posts, and Facebook and Twitter – especially Facebook – provide a range of monitoring statistics that over time help us evaluate many things, including what sort of posts get the best response.

Social media by the numbers (six weekly):

Our Facebook page posts (across all five pages) reached 98,362 people and 7,497 of these people have liked, shared, clicked or commented on our posts. Please note that our page followers for Pukeiti have more than doubled over the last 6 weeks (going from 337 to 683). Our Twitter posts (across our two pages) reached 9,781 people and 231 engaged with them.

Facebook page Page followers Reach Engagement TaranakiRegionalCouncil 2,816 (+72) 88,664 6,468 TaranakiPublicTransport 217 (+14) 716 55 Túpare 480 (+24) 481 54 Pukeiti 683 (+346) 7,658 893 Hollard Gardens 867 (+41) 843 27

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Facebook group Members Taranaki Schools Environment Group 30 (+1)

Twitter profile Followers Impressions Engaged @TaranakiRC (TRC main) 1,648 (+11) 8,534 216 @TaranakiRG (Gardens) 594 (+5) 1,247 15

Top Facebook posts (of 69 across our pages and group) Reach Engaged 1 Announcement of the final route for the Mt Messenger bypass 14,105 2,219 2 Job Vacancy – Marine Biologist 12,121 920 3 Video of NZTA announcement in RLTC meeting 8,306 390 4 Rainfall update – September 4,704 385 5 The Founders café opens today 3,466 369 6 Job Vacancy – Environment Officer (biosecurity) 4,795 321 7 Keeping Stratford Beautiful – TRC volunteers (clean up NZ 2,338 320 week) 8 Drone footage of Pukeiti (shared from the Taranaki Daily News) 3,720 296 9 Opening of the Rainforest Centre (with the Governor-General) 2,135 269 10 Shellfish warning in Taranaki (shared from MPI) 3,334 202 11 Farmers speak up about Freshwater Quality 2,528 169 12 Reporting pollution incidents (a friendly reminder) 1,575 118

Top Tweets (of 25 across our two profiles) Impressions Engaged 1 September rainfall 2,582 101 2 August rainfall 864 12 3 Mt Messenger Bypass announcement 272 11 4 How is TRC supporting livelihoods? (video) 443 9 5 How is TRC improving our lifestyles? (video) 284 8

5. Health and Safety All of the Council’s health and safety reporting has been consolidated into one report—refer attached.

6. Common Seal The following documents were signed under seal during the period to 17 October 2017: Nil

Decision-making considerations Part 6 (Planning, decision-making and accountability) of the Local Government Act 2002 has been considered and documented in the preparation of this agenda item. The recommendations made in this item comply with the decision-making obligations of the Act.

Financial considerations—LTP/Annual Plan This memorandum and the associated recommendations are consistent with the Council’s adopted Long-Term Plan and estimates. Any financial information included in this memorandum has been prepared in accordance with generally accepted accounting practice.

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Policy considerations This memorandum and the associated recommendations are consistent with the policy documents and positions adopted by this Council under various legislative frameworks including, but not restricted to, the Local Government Act 2002, the Resource Management Act 1991 and the Local Government Official Information and Meetings Act 1987.

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

Attachments Document 1948337: Health and Safety Report—October 2017 Document 1947362: July 2017 Monthly Financial Report Document 1948412: August 2017 Monthly Financial Report

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Table of contents

Table of contents ...... i Key ...... i Executive summary ...... 1 Statement of comprehensive revenue and expense ...... 2 Resource management ...... 3 Biosecurity ...... 6 Transport ...... 8 Hazard management ...... 10 Recreation, culture and heritage ...... 12 Regional representation, advocacy and investment management ...... 14 Statement of financial position ...... 16 Capital expenditure and disposals ...... 17 Local Authorities (Members’ Interests) Act 1968 ...... 18 Financial delegations ...... 19 Aged debtors analysis ...... 19 Reserves ...... 19 Bank and investment balances ...... 20

Doc #1947362

Monthly Financial Report – July 2017

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15 Executive, Audit & Risk Committee - Financial and Operational Report

Key

This section defines the symbols and colours used in the Executive Summary and the Groups of Activities.

Introduction In the “Financial Indicators Section”, for revenue, expenditure and operating surplus/deficit, for the whole of the Council the actual year to date (YTD) performance is compared against the YTD budget. A green variance indicates that the variance is within plus or minus 5%. A yellow variance indicates that the variance is greater than plus or minus 5% but less than plus or minus 10%. A red variance indicates that the variance is more than plus or minus 10%. The arrow indicates the trend over time. A green up arrow indicates and improving trend and a red down arrow indicates a deteriorating trend.

The operational performance pie graphs for levels of service and individual activities show the actual performance against budget and the forecast performance against budget, accumulated for all activities within that group of activities. The green slice indicates the number of levels of service/activities where the actual performance is on target. The yellow slice indicates the number of levels of service/activities where the actual performance is at risk of not being achieved. The red slice indicates the number of levels of service/activities where the actual performance is not meeting the target.

Monthly Financial Report – July 2017

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Executive summary

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure Operating surplus/deficit What the Council earns – rates, charges, The costs to operate Council’s activities: Council’s total revenue less operating grants and investment income: expenditure: Actual YTD: Trend: Actual YTD: Trend: Actual YTD: Trend:

$123.5K under $28.1K under $95.4K over budget budget budget $0.6M $2.7M $-2.1M

Against a YTD budget of $0.7M and a full Against a YTD budget of $2.7M and a full Against a YTD budget of $-2.0M and a year budget of $26.5M. year budget of $26.1M. full year budget of $0.4M.

FINANCIAL PERFORMANCE OPERATING EXPENDITURE INCOME Actual Forecast Actual Forecast

Financial Performance Future Performance Financial Performance Future Performance

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances The overall financial result is slightly behind budget, however this is considered to be mainly timing differences as this is the first month of the new financial year. The full year forecasted result is expected to be on target with the only item of current concern being interest revenue.

Overall operational performance is on target with no significant issues to raise at this stage.

Monthly Financial Report – July 2017 Page 1

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Statement of comprehensive revenue and expense

This statement summarises performance against budget for the month and for the year to date.

Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Cost of services Resource management 1,450,006 1,482,442 32,436 1,450,006 1,482,442 32,436 14,055,881 Biosecurity 174,303 147,137 -27,166 174,303 147,137 -27,166 1,533,204 Transport 337,311 371,400 34,089 337,311 371,400 34,089 4,030,349 Hazard management 139,995 150,619 10,624 139,995 150,619 10,624 1,552,682 Recreation culture and heritage 386,639 396,654 10,015 386,639 396,654 10,015 3,503,947 Regional representation, advocacy and 167,461 135,530 -31,931 167,461 135,530 -31,931 1,410,804 investment management Total operating expenditure 2,655,717 2,683,782 28,065 2,655,717 2,683,782 28,065 26,086,867

Revenue from exchange transactions Direct charges revenue 240,597 251,735 -11,138 240,597 251,735 -11,138 3,736,817 Rent revenue 98,567 87,500 11,067 98,567 87,500 11,067 1,050,000 Dividends 0 0 0 0 0 0 5,417,170

Revenue from non-exchange transactions General rates revenue 0 0 0 0 0 0 7,611,858 Targeted rates revenue 0 0 0 0 0 0 1,865,532 Direct charges revenue 86,224 182,330 -96,106 86,224 182,330 -96,106 4,322,057 Government grants 141,364 160,577 -19,213 141,364 160,577 -19,213 2,007,987 Vested assets 0 0 0 0 0 0 0 Total income 566,752 682,142 -115,390 566,752 682,142 -115,390 26,011,421

Operating surplus/(deficit) before -2,088,965 -2,001,640 -87,325 -2,088,965 -2,001,640 -87,325 -75,446 finance income/expenses & taxation

Finance income 35,661 43,750 -8,089 35,661 43,750 -8,089 525,000 Finance expense 0 0 0 0 0 0 0 Net finance expense 35,661 43,750 -8,089 35,661 43,750 -8,089 525,000

Operating surplus before taxation -2,053,304 -1,957,890 -95,414 -2,053,304 -1,957,890 -95,414 449,554

Other gains/losses Gains/(losses) on revaluation of properties 0 0 0 0 0 0 0 Operating surplus before taxation -2,053,304 -1,957,890 -95,414 -2,053,304 -1,957,890 -95,414 449,554 Income tax expense 0 0 0 0 0 0 10,000 Surplus/(deficit) for the period -2,053,304 -1,957,890 -95,414 -2,053,304 -1,957,890 -95,414 439,554

Other comprehensive income Revaluation of property, plant and 0 0 0 0 0 0 0 equipment Other comprehensive income, net of tax 0 0 0 0 0 0 0

Operating surplus/(deficit) -2,053,304 -1,957,890 -95,414 -2,053,304 -1,957,890 -95,414 439,554

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Resource management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Total revenue Operating expenditure What the Council earns – rates, charges, grants and investment The costs to operate Council’s activities: income: Actual YTD: Trend: Actual YTD: Trend: $86.0K under budget $32.4K under budget $0.2M $1.5M

Against a YTD budget of 0.3M and a full year budget of 6.0M. Against a YTD budget of 1.5M and a full year budget of 14.1M.

OPERATING EXPENDITURE BY ACTIVITY

Resource Management Planning Consent Processing and Administration Compliance Monitoring Programmes

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Pollution Incidence and Response State of the Environment Monitoring

Monthly Financial Report – July 2017 Page 3

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Resource management—continued

OPERATING EXPENDITURE BY ACTIVITY

Resource Investigations and Projects Waste Minimisation Sustainable Land Management Plans and Plant Supply Programme

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Biodiversity Enhancement Grants

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances Overall resource management expenditure is currently on budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established.

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Resource management—continued

Cost of services statement

RESOURCE MANAGEMENT Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Resource management planning 48,860 84,315 35,455 48,860 84,315 35,455 755,692 Consent processing and administration 93,744 123,179 29,435 93,744 123,179 29,435 980,640 Compliance monitoring programmes 273,139 299,786 26,647 273,139 299,786 26,647 2,705,280 Pollution incidents and response 141,714 110,206 -31,508 141,714 110,206 -31,508 999,369 State of the environment monitoring 249,227 229,290 -19,937 249,227 229,290 -19,937 2,072,512 Resource investigations and projects 30,463 42,325 11,862 30,463 42,325 11,862 410,116 Waste minimisation 15,899 15,426 -473 15,899 15,426 -473 137,216 Sustainable land management plans and 295,568 243,900 -51,668 295,568 243,900 -51,668 3,460,218 plant supply programme Biodiversity 155,207 194,618 39,412 155,207 194,618 39,412 1,829,105 Enhancement grants 146,186 139,397 -6,789 146,186 139,397 -6,789 705,733 Total expenditure 1,450,006 1,482,442 32,436 1,450,006 1,482,442 32,436 14,055,881

Income General rates 607,063 607,063 0 607,063 607,063 0 4,209,997 Direct charges 232,510 293,368 -60,858 232,510 293,368 -60,858 5,682,156 Government grants 0 25,167 -25,167 0 25,167 -25,167 302,000 Investment funds 610,434 556,844 53,590 610,434 556,844 53,590 3,861,727 Total income 1,450,006 1,482,442 -32,436 1,450,006 1,482,442 -32,436 14,055,880

Operating surplus/(deficit) 0 0 0 0 0 0 -1 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.2M $0.3M $6.0M $86.0K under budget investment funds

Expenditure $1.5M $1.5M $14.1M $32.4K under budget

Monthly Financial Report – July 2017 Page 5

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Biosecurity

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.0M and a full year budget of 0.1M. Against a YTD budget of 0.1M and a full year budget of 1.5M.

OPERATING EXPENDITURE BY ACTIVITY

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Biosecurity Planning Pest Management

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances Overall biosecurity expenditure is slightly over budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established.

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Biosecurity—continued

Cost of services statement

BIOSECURITY Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Biosecurity planning 8,181 5,295 -2,886 8,181 5,295 -2,886 47,756 Pest management 166,122 141,842 -24,280 166,122 141,842 -24,280 1,485,448 Total expenditure 174,303 147,137 -27,166 174,303 147,137 -27,166 1,533,204

Income General rates 72,114 72,114 0 72,114 72,114 0 796,288 Direct charges 16,733 8,875 7,858 16,733 8,875 7,858 106,500 Transfer from reserves 0 0 0 0 0 0 0 Transfer to reserves 0 0 0 0 0 0 -100,000 Investment funds 85,456 66,148 19,308 85,456 66,148 19,308 730,416 Total income 174,303 147,137 27,166 174,303 147,137 27,166 1,533,204

Operating surplus/(deficit) 0 0 0 0 0 0 0 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.0M $0.0M $0.1M $7.9K over budget investment funds

Expenditure $0.2M $0.1M $1.5M $27.2K over budget

Monthly Financial Report – July 2017 Page 7

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Transport

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.2M and a full year budget of 2.9M. Against a YTD budget of 0.4M and a full year budget of 4.0M.

OPERATING EXPENDITURE BY ACTIVITY

Regional Land Transport Planning Passenger Transport Harbour Management

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

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Transport—continued

Commentary and variances Overall transport expenditure is slightly under budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established. The yellow notification in the non-financial performance relates to the potential non-achievement of the 6% passenger usage growth target established in the 2015/2025 Long-Term Plan.

Cost of services statement

TRANSPORT Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Regional land transport planning 17,826 15,361 -2,465 17,826 15,361 -2,465 145,419 Passenger transport 314,447 322,997 8,550 314,447 322,997 8,550 3,851,430 Harbour management 5,039 33,042 28,003 5,039 33,042 28,003 33,500 Total expenditure 337,311 371,400 34,089 337,311 371,400 34,089 4,030,349

Income General rates 73,130 73,130 0 73,130 73,130 0 146,089 Targeted rates 0 0 0 0 0 0 858,207 Direct charges 75,270 95,780 -20,510 75,270 95,780 -20,510 1,149,360 Government grants 141,364 135,410 5,954 141,364 135,410 5,954 1,705,987 Government grants for capital 0 0 0 0 0 0 0 Transfer from reserves 0 0 0 0 0 0 40,000 Transfer to reserves 0 0 0 0 0 0 -3,297 Investment funds 47,548 67,080 -19,532 47,548 67,080 -19,532 134,003 Total income 337,311 371,400 -34,089 337,311 371,400 -34,089 4,030,349

Operating surplus/(deficit) 0 0 0 0 0 0 0 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.2M $0.2M $2.9M $14.6K under budget investment funds

Expenditure $0.3M $0.4M $4.0M $34.1K under budget

Monthly Financial Report – July 2017 Page 9

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Hazard management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.0M and a full year budget of 1.0M. Against a YTD budget of 0.2M and a full year budget of 1.6M.

OPERATING EXPENDITURE BY ACTIVITY

Civil Defence Emergency Management Flood Management and General River River Control Schemes Control

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances Overall hazard management expenditure is slightly under budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established.

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Hazard management—continued

Cost of services statement

HAZARD MANAGEMENT Month Year to date 2016/2017 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Civil defence emergency management 98,356 112,471 14,115 98,356 112,471 14,115 1,042,967 Flood management and general river 23,777 26,221 2,444 23,777 26,221 2,444 247,856 control River control schemes 17,862 11,927 -5,935 17,862 11,927 -5,935 261,859 Total expenditure 139,995 150,619 10,624 139,995 150,619 10,624 1,552,682

Income General rates 77,689 0 0 77,689 77,689 0 136,980 Targeted rates 0 0 0 0 0 0 700,454 Direct charges 21 -23,104 -23,104 21 23,125 -23,104 965,858 Government grants 0 0 0 0 0 0 0 Transfer from reserves 24,995 24,995 24,995 24,995 0 24,995 0 Transfer to reserves 0 0 0 0 0 0 -44,672 Investment funds 58,747 71,263 -12,516 58,747 71,263 -12,516 125,648 Total income 161,453 172,077 -10,624 161,453 172,077 -10,624 1,884,268

Operating surplus/(deficit) 21,458 21,458 0 21,458 21,458 0 331,586 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.0M $0.0M $1.0M $23.1K under budget investment funds

Expenditure $0.1M $0.2M $1.6M $10.6K under budget

Monthly Financial Report – July 2017 Page 11

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Recreation, culture and heritage

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.0M and a full year budget of 0.2M. Against a YTD budget of 0.4M and a full year budget of 3.5M.

OPERATING EXPENDITURE BY ACTIVITY

Regional Gardens Puke Ariki Yarrow Stadium

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances Overall recreation, culture and heritage expenditure is currently on budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established.

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Recreation, culture and heritage—continued

Cost of services statement

RECREATION CULTURE AND HERITAGE Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Regional gardens 238,639 248,654 10,015 238,639 248,654 10,015 2,477,947 Puke Ariki 75,000 75,000 0 75,000 75,000 0 150,000 Yarrow Stadium 73,000 73,000 0 73,000 73,000 0 876,000 Total expenditure 386,639 396,654 10,015 386,639 396,654 10,015 3,503,947

Income General rates 200,277 200,277 0 200,277 200,277 0 1,588,231 Targeted rates 0 0 0 0 0 0 0 Direct charges 2,168 12,667 -10,499 2,168 12,667 -10,499 152,000 Investment funds 184,194 183,710 484 184,194 183,710 484 1,456,845 Total income 386,639 396,654 -10,015 386,639 396,654 -10,015 3,503,947

Operating surplus/(deficit) 0 0 0 0 0 0 0 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.0M $0.0M $0.2M $10.5K under budget investment funds

Expenditure $0.4M $0.4M $3.5M $10.0K under budget

Monthly Financial Report – July 2017 Page 13

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Regional representation, advocacy and investment management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.0M and a full year budget of 0.0M. Against a YTD budget of 0.1M and a full year budget of 1.4M.

OPERATING EXPENDITURE BY ACTIVITY

Investment Management Community Engagement Advocacy and Response

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Governance

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Regional representation, advocacy and investment management—continued

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances Overall regional representation and advocacy expenditure is slightly over budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established. The yellow level of service notification relates to the potential non-achievement of the 6% interest rate return target set in the 2015/2025 Long-Term Plan.

Cost of services statement

REGIONAL REPRESENTATION, ADVOCACY AND INVESTMENT MANAGEMENT Month Year to date 2016/2017 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Investment management 0 500 500 0 500 500 6,000 Community engagement 19,204 20,992 1,788 19,204 20,992 1,788 193,323 Advocacy and response 31,917 27,432 -4,485 31,917 27,432 -4,485 240,144 Governance 116,341 86,606 -29,735 116,341 86,606 -29,735 971,337 Total expenditure 167,461 135,530 -31,931 167,461 135,530 -31,931 1,410,804

Income General rates 70,558 70,558 0 70,558 70,558 0 734,273 Direct charges 119 250 -131 119 250 -131 3,000 Investment funds 96,784 64,722 32,062 96,784 64,722 32,062 673,531 Total income 167,461 135,530 31,931 167,461 135,530 31,931 1,410,804

Operating surplus/(deficit) 0 0 0 0 0 0 0 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.0M $0.0M $0.0M $0.1K under budget investment funds

Expenditure $0.2M $0.1M $1.4M $31.9K over budget

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Statement of financial position

This statement summarises the Council’s assets, liabilities and residual equity. The statement is split between current items (those expected to be realised within 12 months) and non-current items (expected to last longer than 12 months).

31 July 2017 2017/2018 2016/2017 Actual $ Estimates $ Annul Report $ Current Assets Cash and cash equivalents 1,685,581 1,243,388 1,190,605 Current portion of investments 6,380,777 - 7,847,041 Trade and other receivables 1,238,904 2,000,000 2,992,365 Inventories 41,763 - 41,763 Investment properties held for sale - - - Prepayments 197,432 100,000 186,823 Taxation refundable 6,555 - 6,555 Work in progress 263,500 400,000 127,904 Total current assets 9,814,512 3,743,388 12,393,056

Non-current assets Treasury investments 2,524,732 7,407,975 2,500,000 Port Taranaki Ltd 26,000,000 26,000,000 26,000,000 Civic Assurance Ltd 1,000 1,000 1,000 Regional Software Holdings Ltd 798,118 798,118 798,118 Intangible assets 474,191 1,255,571 487,942 Investment properties 16,669,500 14,617,000 16,669,500 Property plant and equipment 28,675,924 30,588,317 28,457,434 Total non-current assets 75,143,466 80,667,981 74,913,994

Total assets 84,957,978 84,411,369 87,307,050

Current liabilities Trade and other payables 2,941,307 2,000,000 3,125,905 Work-in-progress 376,584 500,000 487,755 Employee entitlements current 1,061,185 935,000 1,061,185 Taxation payable - - - Total current liabilities 4,379,076 3,435,000 4,674,845

Non-current liabilities Employee entitlements term 752,000 800,000 752,000 Total non current liabilities 752,000 800,000 752,000

Total liabilities 5,131,076 4,235,000 5,426,845

Public equity Retained earnings 64,299,388 65,452,180 66,327,696 Reserves 11,104,488 11,000,957 11,129,483 Asset revaluation reserves 4,423,026 3,723,232 4,423,026 Total public equity 79,826,902 80,176,369 81,880,205 Total liabilities and equity 84,957,978 84,411,369 87,307,050

Commentary and variances There are no significant variances to report.

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Capital expenditure and disposals

Capital expenditure in excess of $10,000 for the month was:

Description Amount $ IDEXX Lab Equipment 11,341 Pro DSS Handheld Meter 10,437 Konica Minolta Office Photocopiers & Printers (replacement) 156,234 Dell Latitude Notebooks x 3 12,300 Pukeiti Arrival and Carparking WIP 29,237 Website Development - Phase 2.0 WIP 70,872

Fixed asset disposals in excess of $10,000 for the month were:-

Description Amount $ 2016 Toyota Corolla 14,348

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Local Authorities (Members’ Interests) Act 1968

Additions to the Creditors Detail List for the month were:

Code Creditor name Address Date established 2431 Greenroom Surf Media Ltd 538 Waitao Rd, Tauranga 03-Jul-17 2432 Coastal Veterinary Services Ltd 70A Victoria St, Kaponga 03-Jul-17 2433 Payne, Katrina 169 Sansons Rd, Palmerston North 03-Jul-17 2434 Idexx Laboratories PO Box 944, Hamilton 04-Jul-17 2435 Flyshop NZ Ltd 13 Cameron St, Methven 04-Jul-17 2436 Te Rahui Trust 798 Wingrove Rd, Stratford 04-Jul-17 2438 K E Earp Family Trust 7A Baring Tce, New Plymouth 04-Jul-17 2440 Millin Ltd PO Box 100273, Auckland 06-Jul-17 2441 Sole, Mr Dean 858 Motukawa Rd, Inglewood 07-Jul-17 2442 Plant & Platform Consultants Ltd PO Box 660, New Plymouth 07-Jul-17 2443 Mimi Holdings 64 Johnson Rd, Urenui 07-Jul-17 2444 MCK Design and Print Ltd PO Box 362, Dunedin 07-Jul-17 2445 Betteridge, Kevin 8 Wallath Rd, New Plymouth 10-Jul-17 2447 Coastal Veterinary Services Ltd PO Box 45, Opunake 12-Jul-17 2448 Stone and Waterworld Ltd PO Box 11086, Ellersile 13-Jul-17 2449 WSN Farms Limited 68 Ngamotu Rd, Waverley 13-Jul-17 2450 Fleming, William Patrick 421R South Rd, Hawera 13-Jul-17 2451 Flying Trowelz Ltd PO Box 51, Inglewood 13-Jul-17 2452 LakeMed Ltd 13 Harris Place, Cornwall 18-Jul-17 2453 Anthony Parr 1417 Egmont Rd, New Plymouth 18-Jul-17 2454 Isambard Ltd PO Box 1683, Wellington 19-Jul-17 2455 Clifton Homestead Nursery 27 Telford Rd, Clifton 19-Jul-17 2456 Energy Hydraulics Ltd PO Box 717, New Plymouth 19-Jul-17 2457 Trappers Cyanide Ltd 303 Laidmore Rd, Amberley 19-Jul-17 2458 P & B Hickford T/A Bindz Direct 17A Borrell Ave, New Plymouth 20-Jul-17 2459 ALGA Studio 40 Hoddle St, NSW Australia 20-Jul-17 2460 Southern Skies Environmental Ltd PO Box 46188, Herne Bay 21-Jul-17 2461 Spray It Ltd (2015) PO Box 27, Hawera 26-Jul-17 2462 Cert Systems Ltd PO Box 8360, New Plymouth 26-Jul-17 2463 Intransitmoving Ltd 474 Materua Rd, Palmerston North 26-Jul-17 2464 Robert Malin 205B Parklands Ave, Bell Block 26-Jul-17 2465 Plumbtech Taranaki Ltd PO Box 3009, New Plymouth 26-Jul-17

Notes: 1. The schedule of all previously listed creditors for the purpose of the Local Authorities (Members’ Interests) Act 1968 is available for Members’ perusal. 2. The schedule excludes any staff who may have become a creditor. 3. Under the terms of Section 6 and Section (1) of the Local Authorities (Members’ Interests) Act 1968, members are required to declare if they hold directly or indirectly, a pecuniary interest other than an interest in common with the public.

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Financial delegations

The following payments were made during the period to 31 July 2017 that exceeded the budgeted approved delegated authority levels:

Description Amount $ Nil

Aged debtors analysis

The total debtors outstanding at 31 July 2017 were aged as follows:

Description Amount Percent $ % Current balance 75,463 8 30 days balance 529,966 56 60 days balance 12,873 1 90 days and over balance 334,531 35 Total debtors 952,833 100

Reserves

As at 31 July 2017 the following reserve balances were held:

Description Amount $ Contingency/Disaster Reserve 1,086,000 North Taranaki/Waitara River Control Scheme Reserve 1,071,575 Dividend Equalisation Reserve 6,395,766 Passenger Transport Rate Reserve 83,146 Egmont National Park Control Reserve 298,000 Endowment Land Sales Reserve 2,170,000 Total reserves 11,104,488

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Bank and investment balances

As at 31 July 2017 the following cash, bank and investment balances were held:

Invested Yield % of Total Maturity date $ % Bank of New Zealand: Call Account 8,197 2.2 On Call Current Account 10 1,060,771 0.6 On Call Term Investment 7 759,377 3.7 17/10/2017 Term Investment 9 1,002,070 2.3 28/08/2017 Subordinated Notes 9 1,004,513 5.3 17/12/2025

TSB Bank: Cheque Accounts 635 On Call Call Account 6 615,792 1.9 On Call Term Investment 15 1,520,219 4.0 31/03/2019

ASB Bank: Cheque Account 185 On Call Term Investment 10 1,041,980 3.6 30/10/2017 Term Investment 19 2,029,589 3.6 03/09/2017

Other Corporate Bonds: ANZ Bank 15 1,547,760 6.5 16/02/2018 Total 100 10,591,090 4.2*

All investments are in accordance with the Investment Policy. * Weighted average investment interest rate.

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Table of contents

Doc # 1948412

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Key

This section defines the symbols and colours used in the Executive Summary and the Groups of Activities.

The operational performance pie graphs for levels of service and individual activities show the actual performance against budget and the forecast performance against budget, accumulated for all activities within that group of activities. The green slice indicates the number of levels of service/activities where the actual performance is on target. The yellow slice indicates the number of levels of service/activities where the actual performance is at risk of not being achieved. The red slice indicates the number of levels of service/activities where the actual performance is not meeting the target.

Monthly Financial Report – August 2017

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Executive summary

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

$200.2K under $90.1K under $110.1K over budget budget budget $3.9M $4.7M $-0.8M

Against a YTD budget of $4.1M and a full Against a YTD budget of $4.8M and a full Against a YTD budget of $-0.7M and a year budget of $26.5M. year budget of $26.1M. full year budget of $0.4M.

FINANCIAL PERFORMANCE OPERATING EXPENDITURE INCOME Actual Forecast Actual Forecast

Financial Performance Future Performance Financial Performance Future Performance

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances The overall financial result is slightly behind budget, however this is considered to be mainly timing differences as this is just the second month of the new financial year. The full year forecasted result is expected to be on target with the only item of current concern being interest revenue.

Overall operational performance is on target with no significant issues to raise at this stage.

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42 Executive, Audit & Risk Committee - Financial and Operational Report

Statement of comprehensive revenue and expense

This statement summarises performance against budget for the month and for the year to date.

Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Cost of services Resource management 1,063,895 1,156,395 92,500 2,513,901 2,638,837 124,936 14,055,881 Biosecurity 145,336 107,152 -38,184 319,639 254,289 -65,350 1,533,204 Transport 329,222 323,871 -5,351 666,533 695,271 28,738 4,030,349 Hazard management 136,801 118,262 -18,539 276,796 268,881 -7,915 1,552,682 Recreation culture and heritage 267,888 277,761 9,873 654,528 674,415 19,887 3,503,947 Regional representation, advocacy and 109,930 131,690 21,760 277,391 267,220 -10,171 1,410,804 investment management Total operating expenditure 2,053,072 2,115,131 62,059 4,708,789 4,798,913 90,124 26,086,867

Revenue from exchange transactions Direct charges revenue 222,333 259,235 -36,903 462,930 510,970 -48,040 3,736,817 Rent revenue 102,105 87,500 14,605 200,672 175,000 25,672 1,050,000 Dividends 0 0 0 0 0 0 5,417,170

Revenue from non-exchange transactions General rates revenue 1,902,965 1,902,965 -1 1,902,965 1,902,965 -1 7,611,858 Targeted rates revenue 466,383 466,385 -2 466,383 466,385 -2 1,865,532 Direct charges revenue 413,326 431,433 -18,107 499,550 613,763 -114,213 4,322,057 Government grants 135,989 160,577 -24,588 277,353 321,154 -43,801 2,007,987 Vested assets 0 0 0 0 0 0 0 Total income 3,243,101 3,308,095 -64,994 3,809,852 3,990,237 -180,385 26,011,421

Operating surplus/(deficit) before 1,190,029 1,192,964 -2,935 -898,936 -808,676 -90,260 -75,446 finance income/expenses & taxation

Finance income 32,029 43,750 -11,721 67,690 87,500 -19,810 525,000 Finance expense 0 0 0 0 0 0 0 Net finance expense 32,029 43,750 -11,721 67,690 87,500 -19,810 525,000

Operating surplus before taxation 1,222,058 1,236,714 -14,656 -831,246 -721,176 -110,070 449,554

Other gains/losses Gains/(losses) on revaluation of properties 0 0 0 0 0 0 0 Operating surplus before taxation 1,222,058 1,236,714 -14,656 -831,246 -721,176 -110,070 449,554 Income tax expense 0 0 0 0 0 0 10,000 Surplus/(deficit) for the period 1,222,058 1,236,714 -14,656 -831,246 -721,176 -110,070 439,554

Other comprehensive income Revaluation of property, plant and 0 0 0 0 0 0 0 equipment Other comprehensive income, net of tax 0 0 0 0 0 0 0

Operating surplus/(deficit) 1,222,058 1,236,714 -14,656 -831,246 -721,176 -110,070 439,554

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Resource management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.7M and a full year budget of 6.0M. Against a YTD budget of 2.6M and a full year budget of 14.1M.

OPERATING EXPENDITURE BY ACTIVITY

Resource Management Planning Consent Processing and Administration Compliance Monitoring Programmes

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Pollution Incidence and Response State of the Environment Monitoring

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Resource management—continued

OPERATING EXPENDITURE BY ACTIVITY

Resource Investigations and Projects Waste Minimisation Sustainable Land Management Plans and Plant Supply Programme

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Biodiversity Enhancement Grants

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances Overall resource management expenditure is slightly under budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established.

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Resource management—continued

Cost of services statement

RESOURCE MANAGEMENT Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Resource management planning 42,836 59,090 16,254 91,696 143,405 51,709 755,692 Consent processing and administration 55,236 74,773 19,537 148,980 197,952 48,972 980,640 Compliance monitoring programmes 255,684 210,831 -44,853 528,822 510,617 -18,205 2,705,280 Pollution incidents and response 71,667 77,965 6,298 213,381 188,171 -25,210 999,369 State of the environment monitoring 161,441 161,615 174 410,669 390,905 -19,764 2,072,512 Resource investigations and projects 20,805 32,561 11,756 51,269 74,886 23,617 410,116 Waste minimisation 10,023 10,653 630 25,923 26,079 156 137,216 Sustainable land management plans and 327,811 364,536 36,725 623,379 608,436 -14,943 3,460,218 plant supply programme Biodiversity 110,943 138,547 27,604 266,149 333,165 67,016 1,829,105 Enhancement grants 7,448 25,824 18,376 153,634 165,221 11,587 705,733 Total expenditure 1,063,895 1,156,395 92,500 2,513,901 2,638,837 124,936 14,055,881

Income General rates 392,926 392,926 0 999,989 999,989 0 4,209,997 Direct charges 349,493 377,881 -28,388 582,003 671,249 -89,246 5,682,156 Government grants 0 25,167 -25,167 0 50,334 -50,334 302,000 Investment funds 321,475 360,421 -38,946 931,909 917,265 14,644 3,861,727 Total income 1,063,895 1,156,395 -92,500 2,513,901 2,638,837 -124,936 14,055,880

Operating surplus/(deficit) 0 0 0 0 0 0 -1 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.6M $0.7M $6.0M $139.6K under budget investment funds

Expenditure $2.5M $2.6M $14.1M $124.9K under budget

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Biosecurity

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.0M and a full year budget of 0.1M. Against a YTD budget of 0.3M and a full year budget of 1.5M.

OPERATING EXPENDITURE BY ACTIVITY

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Biosecurity Planning Pest Management

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances Overall biosecurity expenditure is running over budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established.

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Biosecurity—continued

Cost of services statement

BIOSECURITY Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Biosecurity planning 6,493 3,740 -2,753 14,675 9,035 -5,640 47,756 Pest management 138,842 103,412 -35,430 304,964 245,254 -59,710 1,485,448 Total expenditure 145,336 107,152 -38,184 319,639 254,289 -65,350 1,533,204

Income General rates 51,259 51,259 0 123,373 123,373 0 796,288 Direct charges 2,603 8,875 -6,272 19,335 17,750 1,585 106,500 Transfer from reserves 0 0 0 0 0 0 0 Transfer to reserves 0 0 0 0 0 0 -100,000 Investment funds 91,474 47,018 44,456 176,930 113,166 63,764 730,416 Total income 145,336 107,152 38,184 319,639 254,289 65,350 1,533,204

Operating surplus/(deficit) 0 0 0 0 0 0 0 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.0M $0.0M $0.1M $1.6K over budget investment funds

Expenditure $0.3M $0.3M $1.5M $65.3K over budget

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Transport

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.5M and a full year budget of 2.9M. Against a YTD budget of 0.7M and a full year budget of 4.0M.

OPERATING EXPENDITURE BY ACTIVITY

Regional Land Transport Planning Passenger Transport Harbour Management

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

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Transport—continued

Commentary and variances Overall transport expenditure is slightly under budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established. The yellow notification in the non-financial performance relates to a 4.5% YTD increase in patronage verses the 6% passenger usage growth target established in the 2015/2025 Long-Term Plan.

Cost of services statement

TRANSPORT Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Regional land transport planning 10,095 11,394 1,299 27,920 26,755 -1,165 145,419 Passenger transport 318,515 312,435 -6,080 632,962 635,432 2,470 3,851,430 Harbour management 613 42 -571 5,652 33,084 27,432 33,500 Total expenditure 329,222 323,871 -5,351 666,533 695,271 28,738 4,030,349

Income General rates -63,565 -63,565 0 9,565 9,565 0 146,089 Targeted rates 214,552 214,553 -1 214,552 214,553 -1 858,207 Direct charges 107,731 95,780 11,951 183,001 191,560 -8,559 1,149,360 Government grants 135,989 135,410 579 277,353 270,820 6,533 1,705,987 Government grants for capital 0 0 0 0 0 0 0 Transfer from reserves 0 0 0 0 0 0 40,000 Transfer to reserves 0 0 0 0 0 0 -3,297 Investment funds -65,485 -58,307 -7,178 -17,938 8,773 -26,711 134,003 Total income 329,222 323,871 5,351 666,533 695,271 -28,738 4,030,349

Operating surplus/(deficit) 0 0 0 0 0 0 0 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.5M $0.5M $2.9M $2.0K under budget investment funds

Expenditure $0.7M $0.7M $4.0M $28.7K under budget

Monthly Financial Report – August 2017 Page 9

50 Executive, Audit & Risk Committee - Financial and Operational Report

Hazard management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.2M and a full year budget of 1.0M. Against a YTD budget of 0.3M and a full year budget of 1.6M.

OPERATING EXPENDITURE BY ACTIVITY

Civil Defence Emergency Management Flood Management and General River River Control Schemes Control

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances Overall hazard management expenditure is currently on budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established.

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51 Executive, Audit & Risk Committee - Financial and Operational Report

Hazard management—continued

Cost of services statement

HAZARD MANAGEMENT Month Year to date 2016/2017 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Civil defence emergency management 99,364 89,575 -9,789 197,721 202,046 4,325 1,042,967 Flood management and general river 14,214 19,358 5,144 37,991 45,579 7,588 247,856 control River control schemes 23,222 9,329 -13,893 41,085 21,256 -19,829 261,859 Total expenditure 136,801 118,262 -18,539 276,796 268,881 -7,915 1,552,682

Income General rates -110,619 0 0 -32,930 -32,930 0 136,980 Targeted rates 175,114 -1 -1 175,114 175,114 -1 700,454 Direct charges 172,104 -23,111 -23,111 172,125 218,340 -46,215 965,858 Government grants 0 0 0 0 0 0 0 Transfer from reserves 0 0 0 24,995 0 24,995 0 Transfer to reserves -156,627 0 -156,627 -156,627 0 -156,627 -44,672 Investment funds 96,809 -101,469 198,278 155,556 -30,206 185,762 125,648 Total income 176,780 158,241 18,539 338,233 330,318 7,915 1,884,268

Operating surplus/(deficit) 39,979 39,979 0 61,437 61,437 0 331,586 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.2M $0.2M $1.0M $46.2K under budget investment funds

Expenditure $0.3M $0.3M $1.6M $7.9K over budget

Monthly Financial Report – August 2017 Page 11

52 Executive, Audit & Risk Committee - Financial and Operational Report

Recreation, culture and heritage

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.0M and a full year budget of 0.2M. Against a YTD budget of 0.7M and a full year budget of 3.5M.

OPERATING EXPENDITURE BY ACTIVITY

Regional Gardens Puke Ariki Yarrow Stadium

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

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53 Executive, Audit & Risk Committee - Financial and Operational Report

Recreation, culture and heritage—continued

Cost of services statement

RECREATION CULTURE AND HERITAGE Month Year to date 2017/2018 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Regional gardens 194,888 204,761 9,873 433,528 453,415 19,887 2,477,947 Puke Ariki 0 0 0 75,000 75,000 0 150,000 Yarrow Stadium 73,000 73,000 0 146,000 146,000 0 876,000 Total expenditure 267,888 277,761 9,873 654,528 674,415 19,887 3,503,947

Income General rates 98,252 98,252 0 298,529 298,529 0 1,588,231 Targeted rates 0 0 0 0 0 0 0 Direct charges 3,648 12,667 -9,019 5,817 25,334 -19,517 152,000 Investment funds 89,270 90,124 -854 273,465 273,834 -369 1,456,845 Total income 267,888 277,761 -9,873 654,528 674,415 -19,887 3,503,947

Operating surplus/(deficit) 0 0 0 0 0 0 0 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.0M $0.0M $0.2M $19.5K under budget investment funds

Expenditure $0.7M $0.7M $3.5M $19.9K under budget

Monthly Financial Report – August 2017 Page 13

54 Executive, Audit & Risk Committee - Financial and Operational Report

Regional representation, advocacy and investment management

Financial performance

FINANCIAL INDICATORS

Financial threshold key (for adverse variances): ≥5% and <10%≥10%

Against a YTD budget of 0.0M and a full year budget of 0.0M. Against a YTD budget of 0.3M and a full year budget of 1.4M.

OPERATING EXPENDITURE BY ACTIVITY

Investment Management Community Engagement Advocacy and Response

Key YTD Variance < 5% ≥ 5% < 10% ≥ 10%

Governance

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55 Executive, Audit & Risk Committee - Financial and Operational Report

Regional representation, advocacy and investment management—continued

Non-financial performance

OPERATIONAL PERFORMANCE LEVELS OF SERVICES ACTIVITIES Actual Forecast Actual Forecast

Non Financial Performance Future Performance Non Financial Performance Future Performance

Commentary and variances Overall regional representation and advocacy expenditure is slightly over budget. There are no material activity variances (greater or lesser than $100,000). It is early in the new financial year and trends have not yet become established. The red level of service notification relates to the likely non-achievement of the 6% interest rate return target set in the 2015/2025 Long-Term Plan.

Cost of services statement

REGIONAL REPRESENTATION, ADVOCACY AND INVESTMENT MANAGEMENT Month Year to date 2016/2017 Actual $ Budget $ Variance $ Actual $ Budget $ Variance $ Budget $ Expenditure Investment management 7,268 500 -6,768 7,268 1,000 -6,268 6,000 Community engagement 13,082 15,159 2,077 32,286 36,151 3,865 193,323 Advocacy and response 14,434 18,701 4,267 46,351 46,133 -218 240,144 Governance 75,146 97,330 22,184 191,486 183,936 -7,550 971,337 Total expenditure 109,930 131,690 21,760 277,391 267,220 -10,171 1,410,804

Income General rates 68,556 68,556 0 139,114 139,114 0 734,273 Direct charges 80 250 -170 199 500 -301 3,000 Investment funds 41,294 62,884 -21,590 138,078 127,606 10,472 673,531 Total income 109,930 131,690 -21,760 277,391 267,220 10,171 1,410,804

Operating surplus/(deficit) 0 0 0 0 0 0 0 YTD Actual YTD Budget Full Year Budget Variance

Income – excluding rates and $0.0M $0.0M $0.0M $0.3K under budget investment funds

Expenditure $0.3M $0.3M $1.4M $10.2K over budget

Monthly Financial Report – August 2017 Page 15

56 Executive, Audit & Risk Committee - Financial and Operational Report

Statement of financial position

31 August 2017 2017/2018 2016/2017 Actual $ Estimates $ Annul Report $ Current Assets Cash and cash equivalents 771,341 1,243,388 1,190,605 Current portion of investments 5,347,462 - 7,847,041 Trade and other receivables 4,440,936 2,000,000 2,992,365 Inventories 41,763 - 41,763 Investment properties held for sale - - - Prepayments 199,118 100,000 186,823 Taxation refundable 6,555 - 6,555 Work in progress 380,268 400,000 127,904 Total current assets 11,187,443 3,743,388 12,393,056

Non-current assets Treasury investments 2,534,342 7,407,975 2,500,000 Port Taranaki Ltd 26,000,000 26,000,000 26,000,000 Civic Assurance Ltd 1,000 1,000 1,000 Regional Software Holdings Ltd 798,118 798,118 798,118 Intangible assets 461,390 1,255,571 487,942 Investment properties 16,669,500 14,617,000 16,669,500 Property plant and equipment 28,953,848 30,588,317 28,457,434 Total non-current assets 75,418,198 80,667,981 74,913,994

Total assets 86,605,641 84,411,369 87,307,050

Current liabilities Trade and other payables 3,421,038 2,000,000 3,125,905 Work-in-progress 322,458 500,000 487,755 Employee entitlements current 1,061,185 935,000 1,061,185 Taxation payable - - - Total current liabilities 4,804,681 3,435,000 4,674,845

Non-current liabilities Employee entitlements term 752,000 800,000 752,000 Total non current liabilities 752,000 800,000 752,000

Total liabilities 5,556,681 4,235,000 5,426,845

Public equity Retained earnings 65,364,819 65,452,180 66,327,696 Reserves 11,261,114 11,000,957 11,129,483 Asset revaluation reserves 4,423,026 3,723,232 4,423,026 Total public equity 81,048,960 80,176,369 81,880,205 Total liabilities and equity 86,605,641 84,411,369 87,307,050

Commentary and variances There are no significant variances to report.

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57 Executive, Audit & Risk Committee - Financial and Operational Report

Capital expenditure and disposals

Capital expenditure in excess of $10,000 for the month was:

Description Amount $ 2017 Toyota Corolla 21,140 HP DL360 Server 10,767 Boardroom Retrofit WIP 32,123 Pukeiti Rainforest Centre WIP 70,486 Pukeiti Rainforest Centre Technology WIP 11,750 Pukeiti Arrival and Carparking WIP 14,759 Pukeiti Walkway Additions WIP 25,000 Pukeiti Zone 1 Garden Development WIP 91,474 Website Development - Phase 2.0 WIP 75,731 Pukeiti Art Installation WIP 10,462

Fixed asset disposals in excess of $10,000 for the month were:-

Description Amount $ Nil

Monthly Financial Report – August 2017 Page 17

58 Executive, Audit & Risk Committee - Financial and Operational Report

Local Authorities (Members’ Interests) Act 1968

Additions to the Creditors Detail List for the month were:

Code Creditor name Address Date established 2466 StringTM Ltd 59A Sales St, Auckland 01-Aug-17 2467 Clegg Furnishers Ltd 181 Devon St East, New Plymouth 03-Aug-17 2470 Labware House Ltd PO Box 9090, Bell Block 04-Aug-17 2471 Antics Marketing Ltd PO Box 100080, North Shore 07-Aug-17 2472 Eureka Enterprises PO Box 35116, Browns Bay 08-Aug-17 2473 Gallery Frame Shop 487D Devon St, New Plymouth 08-Aug-17 2474 The Derek Corporation Ltd PO Box 19042, Auckland 08-Aug-17 2475 Skellern's Metal Castings PO Box 19326, Auckland 08-Aug-17 2476 Placard NZ Pty Ltd 64 Apollo Drive, Auckland 11-Aug-17 2477 Auxilium Ltd PO Box 2764, Wakatipu 11-Aug-17 2478 Stimulus Consulting Ltd 248 Beacon Point Rd, Wanaka 14-Aug-17 2479 Taranaki Garden Trust Inc 251 Kateru Rd, Hawera 14-Aug-17 2480 Botanical Roots Subtropical Nursery 6382A Main South Rd, Pungarehu 14-Aug-17 2481 Peeti, L Stanley Rd, Dannervirke 17-Aug-17 2482 Live Wires NZ Ltd PO Box 38528, Wellington 21-Aug-17 2483 Crasian Trust Partnership 1178 East Rd, Stratford 21-Aug-17 2484 Custom Engraving 174 Devon St East, New Plymouth 21-Aug-17 2485 AC & DS Simson Trusts Partnership 613 Kaharoa Rd, Patea 22-Aug-17 2486 Stitchworx Embroidery 456 Devon St East, New Plymouth 28-Aug-17 2487 Silo Ltd T/A MetalBird 2B Chester Ave, Auckland 28-Aug-17 2488 The Big Picture Wellington Ltd 226 Victoria St, Wellington 28-Aug-17 2489 Interpretation Network NZ Inc PO Box 7025, Wellington 29-Aug-17 2490 Luscombe Partnership 219 Palmer Rd, Hawera 30-Aug-17 2491 Godfreys NP 2-20 Rifle Range Rd, New Plymouth 30-Aug-17 2492 HamChem Hamilton Chemicals Ltd 75 Ruffell Rd, Hamilton 31-Aug-17

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59 Executive, Audit & Risk Committee - Financial and Operational Report

Financial delegations

The following payments were made during the period to 31 August 2017 that exceeded the budgeted approved delegated authority levels:

Description Amount $ Nil

Aged debtors analysis

The total debtors outstanding at 31 August 2017 were aged as follows:

Description Amount Percent $ % Current balance 3,416,358 84 30 days balance 112,148 3 60 days balance 230,324 6 90 days and over balance 308,358 7 Total debtors 4,067,188 100

Reserves

As at 31 August 2017 the following reserve balances were held:

Description Amount $ Contingency/Disaster Reserve 1,086,000 North Taranaki/Waitara River Control Scheme Reserve 1,228,202 Dividend Equalisation Reserve 6,395,766 Passenger Transport Rate Reserve 83,146 Egmont National Park Control Reserve 298,000 Endowment Land Sales Reserve 2,170,000 Total reserves 11,261,114

Monthly Financial Report – August 2017 Page 19

60 Executive, Audit & Risk Committee - Financial and Operational Report

Bank and investment balances

As at 31 August 2017 the following cash, bank and investment balances were held:

Invested Yield % of Total Maturity date $ % Bank of New Zealand: Call Account 8,197 2.2 On Call Current account 9 746,015 0.6 On Call Term Investment 9 761,740 3.7 17/10/2017 Subordinated Notes 12 1,009,027 5.3 17/12/2025

TSB Bank: Cheque Accounts 625 On Call Call Account 16,319 1.9 On Call Term Investment 18 1,525,315 4.0 31/03/2019

ASB Bank: Cheque Account 185 On Call Term Investment 12 1,045,110 3.6 30/10/2017 Term Investment 23 2,035,704 3.6 03/09/2017

Other Corporate Bonds: ANZ Bank 17 1,504,909 6.5 16/02/2018 Total 100 8,653,145 4.5*

All investments are in accordance with the Investment Policy. * Weighted average investment interest rate.

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61 Executive, Audit & Risk Committee - Financial and Operational Report

Health and Safety Report October 2017

Prepared by: Nicola Walsh/Anita Ng Taranaki Regional Council Executive, Audit Prepared for: and Risk Committee

Date: 16 October 2017 Version: 1.0

Document number: 1948337

62 Executive, Audit & Risk Committee - Financial and Operational Report

Health and Safety Management

Policy Updates

The continuing focus is to ensure that all existing policies and procedures are updated to reflect the Health and Safety at Work Act 2015 that came into effect on 4 April 2016. The documents to be updated include:

 Operating Manual for Field Staff  Workplace H&S Guidelines - Complete  Working for the TRC - Complete  Fire and Emergency Procedures – Complete  Any related Promapp processes - Complete

Workplace Safety Management Practices Programme

Audit recommendations – follow up:

Action Status Responsible Update position descriptions to be more Underway HR Manager specific in relation to safety responsibilities) For specialist advice create a list of the internal Completed (in HR Coordinator & external specialists that are used. The list Vault and REG) may include for example, a description of the speciality, contact details and who is responsible for obtaining the external specialist advice. It is recommended in the hazard identification Completed HR Coordinator and management documents used when purchasing equipment that it records all those involved in the process. Clearly link further the pre-employment health Underway H&S Adviser questionnaire to the specific risks/hazards and tasks that are relevant to the role. Strengthen further the documented process Underway H&S Adviser linking pre-employment health screening to specific risks/significant hazards. Clarify further and identify internal trainer/s Ongoing HR Coordinator records, roles and responsibilities for training. It is recommended that the designated incident Completed HR Coordinator and injury investigators are documented for specific roles. In the procedure (Promapp) for corrective Completed HR Coordinator action it is recommended to refer to Vault. It is recommended looking at carrying out fire Completed HR Coordinator extinguisher training for key staff.

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It is strongly recommended that when Completed HR Coordinator emergency evacuation drills are carried out that it is also recorded in Vault in more detail so as to make more visible (attach report to Vault record). - Ensure that refresher inductions are also Underway HR Coordinator/ carried out for long term contractors. H&S Adviser Ensure that regular reviews of work site health Underway HR Coordinator/ and safety performance for contractors are H&S Adviser carried out. It is recommended to implement bunding in Completed Maintenance Officer the Hydro Shed and also with the storage of diesel in the generator room. Ensure hooks are removed in the Hydro Shed Completed Maintenance Officer so as not to obstruct the fire extinguisher.

Health and Safety Projects

Training

First Aid comprehensive First Aid revalidation Health and Safety for Representatives Stage 1 Fire Warden and Fire Extinguisher Training Health and Safety for Representatives Stage 2 Outdoor First Aid Mobility Vehicle Training Gas Testing Permit to Work

Critical Hazards

The health and safety committee is working through each critical hazard to evaluate in- depth. The current hazard focus is Working In and Around Water.

64 Executive, Audit & Risk Committee - Financial and Operational Report

Statistics

The Council utilises a health and safety database, Vault, for hazard management, training and accident and injury recording and investigation. During the last 6 weeks, 29 hazards were reviewed by the health and safety committee and then all reviews were entered into Vault.

Injury/Incident Statistics

Type of Month Incident Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept 16 16 16 17 17 17 17 17 17 17 17 17 Illness 0 0 0 0 0 0 0 0 0 0 0 0 Incident 1 2 1 2 1 1 1 0 3 0 4 1 Injury 5 2 0 0 2 1 5 2 5 1 6 0 Near Miss 1 1 3 0 1 5 1 3 4 3 1 2 Lost Time 0 0 0 0 0 0 0 0 0 1 0 0 Injuries Lost time Full 0 0 0 0 0 0 0 0 0 1 0 0 Days Corrective 1 0 2 2 0 0 22 5 11 1 10 11 Actions - Hazards

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Form: HSE 01

HEALTH AND SAFETY PLAN 2017 - 2018

ORGANISATIONAL OBJECTIVES FOR HEALTH AND SAFETY

Date Objective Action Plan Person Responsible Initial Completed

 Conduct information refresher sessions for managers and staff on Maintain the Taranaki H&S Adviser Health and Safety process and procedures: Accident / Incident Regional Council Health and Investigation and others as required. Safety Management System

 Review the Health and Safety policy H&S Adviser/HR  Review health and safety documentation to ensure compliance with Coordinator Health and Safety at Work Act 2015: Operating Manual for Field Staff Workplace H&S Guidelines Working for the TRC Fire and Emergency Procedures Promapp processes

 Confirm the objectives in this Health & Safety Plan have been Maintain the Health and Departmental discussed and agreed to for the coming year, or make the necessary Safety Meetings and conduct Manager or Director - changes. meetings quarterly (or Corporate Services sooner as required)  The Health and Safety meetings will be held regularly as scheduled

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 Employees and managers agree upon the process and agenda for raising and discussing health and safety issues

 Identify site specific hazards, assess to see if they are significant Minimum of annual reviews Health and Safety hazards and develop appropriate controls. of the Hazard Register or Committee earlier as defined by Vault or dictated by circumstances.  Review the Taranaki Regional Council Hazard Register annually (June).

 Conduct a health and safety induction for any new staff member and Inductions for new staff and H&S Adviser ensure review. Attendance at one Health and Safety Committee contractors Meeting recommended for all new staff.

 Identify training needs for each position and ensure staff training needs are met, documented and updated in Vault. Maintenance Officer / HR Coordinator  Conduct H&S inductions for all contractors, record and enter on Vault.  Implement any recommendations from 2016 External Audit and Self- WSMP Audit HR Coordinator/ H&S Assessment: Adviser

 Review Values Statement to include employee Health and Safety as a Employer commitment to Departmental priority. Health and Safety Manager or Director -

Corporate Services &

67 Executive, Audit & Risk Committee - Financial and Operational Report

 Regular reporting to Executive Committee Supervisors

 Build on the current informal programme by adding further TRC Employee Wellness HR Coordinator/H&S supported initiatives Adviser

 Update all records in a timely manner Maintenance of Vault HR Coordinator/H&S database Adviser

 Review contractor engagement policy for H&S and provide training and Contractor engagement HR Coordinator/ H&S advice to staff as required procedures for H&S Adviser

 Review tender engagement policy for H&S and provide training and Tender engagement HR Coordinator/ H&S advice to staff as required procedures for H&S Adviser/Director – Corporate Services

 Assess and evaluate current risk matrix Risk Matrix Health and Safety Committee

 Assess and evaluate current PPE process PPE H&S Adviser/Maintenance Officer

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ANNUAL AND ONGOING ACTIVITIES

Element Output When Responsibility Date Completed

 Health and safety plan prepared for the coming year. Annually HR Coordinator/H&S Planning, review, and evaluation  Implement the new WorkSafe programme when it is released Adviser (Conduct WSMP self-assessment in 2018 if there is still no new programme from WorkSafe). Annually

 Complete workplace inspections for all work areas/activities as As required Departmental Hazard identification, assessment per risk profile. Manager/H&S Committee and management  The hazard register is reviewed, ensuring that controls are in rep place and effective.  An up to date hazard register is maintained, including hazards Annually associated with new or changed equipment and processes.

Ongoing

 All near misses and accidents are reported immediately after Ongoing Injured Incident and injury reporting, any incident or harm at work. employee/Supervisor recording and investigation is up  All accidents are accurately recorded and investigated by the to date and complete. Health and Safety Committee responsible for the area or staff Health and Safety member concerned (and Director - Corporate Services). Ongoing Committee  Incident and injury data reviewed with the results reported to Managers, staff and recorded by the Director - Corporate Departmental Manager Services. Director – Corporate

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Annually Services

 Minutes of Health and Safety Committee meetings available on Quarterly (or when Director - Corporate Employee participation intranet and H&S Board in Canteen meetings are held) Services  Update Healthy and Safe section of Intranet

 Continue Health and Wellness programme

 Participate in fire emergency evacuation drills at least every In accordance with Fire and Emergency Emergency planning six months requirements Wardens  Drill results are recorded and a Fire Warden debrief is

undertaken after each exercise  Review Emergency Management procedures

 As determined by risk profile for each position. Ongoing Departmental Manager Administer Training  Identify training needs for each position and ensure staff training needs are met and documented.

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Appendix II

Report: Hazard Risk Rating with Raw Risk Score and Risk Score with Corrective Controls ‘High’ or ‘Very High’ as at 16 October 2017

Risk Subject Risk Description Risk Risk Score Score Corrective Raw Controls

Lone work in remote Working alone in remote locations with 20 15 Very locations no communications available. Accidents Extreme High will go unnoticed. Smoking Health issues including lung disease and 20 15 Very cancer; fire hazard from discarded butts; Extreme High second hand smoke leading to disease. Unknown hazards on Unknown hazards on private property, 20 15 Very off-site work areas use of machinery in industrial and farm Extreme High sites. Access to monitoring Steps poorly maintained, steep track 12 Very 12 Very sites access, overgrown vegetation. High High Working alone in the Lone fieldwork where an accident may 16 Very 12 Very field go unnoticed. Particularly prevalent in High High remote locations. Communications Failure of cellphone, RT or satellite 10 Very 10 Very equipment phone, potential exposure, unable to High High report incident or accident. Firearm use Firearm misuse resulting in accidental 10 Very 10 Very shooting, hearing loss, fatality, injury, High High ricochets Ammunition use - lead poisoning, gas emissions or explosions from ammunition Operation of All Crash, Rolling ATV, Loss of traction, 15 Very 10 Very Terrain Vehicle (ATV) leading to serious injury or death. High High Oxidation Ponds Disease from pathogens in pond; slips, 15 Very 10 Very trips and falls; falling into water; drowning High High

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Risk Subject Risk Description Risk Risk Score Score Corrective Raw Controls

Working in and around - Falling or losing footing into 15 Very 10 Very water river/stream/swift rivers and resulting in High High injury or death. - Debris in water causing cuts, bruising, falls -e.g. freshwater fish survey - Slippery or unstable river beds causing injury - Steep river banks may cause injury when sampling - Undertaking field work in and around rising water can result in injury or death. - Losing footing and falling, causing injury or drowning when wading in water - Exposure to water-borne diseases causing illness when working around contaminated water - Falling into river/stream resulting in injury or death when crossing - Sampling from stream bank could cause injury due to instability - Deploying in large swift river conditions -Falls causing injury (off banks or structures/ladders) -Electrical shock from using electrical items near water/in wet conditions - site conditions: overgrown vegetation, uneven ground surface, cuts/allergies from plant and vegetation, hidden obstructions - slipping within river system (boulders, algae and silt) - Water-body conditions: current, tide, depth - Working alone at sites - Stock or predators - Chemicals - Physical strain from work undertaken - Traffic/members of the public causing distraction or confrontation - Debris hitting/tangling with sampling equipment - Falling off or over bridge - Equipment failure e.g. incorrect sampling gear/rope too short/bucket handle loose - Human factors: poor application of training and unnecessary risk taking

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Risk Subject Risk Description Risk Risk Score Score Corrective Raw Controls

Working outdoors at Slipping and falling; getting lost; being 15 Very 10 Very night shot by self, another hunter or High High companion; exposure Access to monitoring Steps poorly maintained, steep track 12 Very 8 High sites access, overgrown vegetation. High Cannabis plots Discovery of cannabis plots while 15 Very 8 High undertaking Council work, e.g. High inspections, pest control. May receive threats from growers, encounter booby traps Chainsaws Incorrect use causing injury or fatality, 10 Very 8 High noise induced hearing loss. High Use of chainsaw by Corporate Services is by Maintenance Officer ONLY

Flow gauging Undertaking flow gauging resulting in 10 Very 8 High injury High Marine Oil Spill Refer to Safe Work Method Statement 15 Very 8 High Response for Marine Oil Spill Response. High Operation of 4WD Loss of traction, accident 8 High 8 High vehicles Sampling Being dumped by wave, resulting in jury. 12 Very 8 High Danger from marine animals. High Quicksand. Becoming stuck in mud. Loose footing causing injury. Traffic Management Being hit (person or vehicle) while 8 High 8 High (see also working on parked on the side of the road. roads) Use of wood chipper Injury or accident as a result of 12 Very 8 High woodchipper operation. High Working at Heights Work undertaken >1.6m above ground. 15 Very 8 High High Earthquake Mental wellbeing, injury from collapse of 5 High 5 High furniture and other assets. Injury from roof collapse. Injury from road traffic accidents. Slips, trips, falls. Fatality.

Emergency Response Tsunami, Volcanic Ash fall, Earthquake, 15 Very 5 High Storms, Flooding High Unnatural disasters (e.g. oil spills) Mental wellbeing of responders. High stress environment where staff and volunteers work long hours completing tasks and using systems that are unfamiliar. Field staff responding to impacts must act in accordance with relevant Response Plan. Stressed animals

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Risk Subject Risk Description Risk Risk Score Score Corrective Raw Controls

Firearms in vehicle Injury sustained if firearm discharges 5 High 5 High while in vehicle Helicopters Includes all hazards relating to travel in 10 Very 5 High helicopters. Rotowash causing flying High objects to make contact with the body. Communications failure causing crash. Crashing during flight leading to injury/death of passenger or ground crew. Embarking/disembarking causing slips, falls or other injury. Entanglement of clothing/equipment in rotors. Inclement weather causing crash. Loading and unloading, including hooking up and slinging loads (not to be done by TRC staff). Noise. Overhead lines/objects causing crash. Being hit by rotors causing injury or death. Rotorwash causing flying objects to make contact with the body. Objects falling from helicopter causing injury or death to people below. Mobility vehicle No power, brake failure, accident due to 10 Very 5 High use of steep terrain. Driver error or High driver collapse causing accident. Night hunting Being shot by self, another hunter or 10 Very 5 High companion; injury from firearm; injury High from vehicle or falling from vehicle Operation of Boats Accident, drowning. Refer to Boats 10 Very 5 High policy in Operating Manual for Field staff. High Operation of Boats Accident, drowning. Refer to Boats policy 10 Very 5 High in Operating Manual for Field staff. High Railway Crossings Fatality possible if collide with train. 5 High 5 High Traffic (while working Crushing injury or fatality 5 High on hydrology sites)

Use of Lack of attention to driving causing crash 10 Very 5 High communications High equipment while driving Use of tractor and Use of tractor and loader causing injury. 10 Very 5 High attachments High

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Risk Subject Risk Description Risk Risk Score Score Corrective Raw Controls

Vehicles Crash, fatality. No power, brake failure, 15 Very 5 High accident due to use of steep terrain, High driver error or driver collapse causing accident. Vehicle falling off jack causing injury during tyre change. Steep terrain causing accident. Unsecured items in vehicle causing crash or injury. Carbon monoxide poisoning from running vehicle in confined space. Vehicle breakdown causing collisions with other vehicles. Wind causing obstacles to hit vehicles, potholes, any other unknown hazard. Tyre blowout causing crash. Accident due to overloading vehicle. Use of communications equipment while driving causing a lack of attention to driving causing crash. Driver competence causing human errors and poor driver competence causing accidents. Speeding causing an accident, bad public image for Council and excessive fuel use. Skidding due to wet/icy/snowy roads or inadequate tread on tyres. Accident causing explosion/fire in vehicle. Working Outdoors - Disease or poisoning as result of 10 Very 5 High contact with/inhalation of infectious High waste/materials including effluent - Mistaken ID from hunter, which results in injury. - Falling into uncovered offal pit leading to injury or death - Disease from pathogens in oxidation ponds; slips, trips and falls; falling into oxidation pond; drowning - Stepping on sharp objects buried in sand, mud or similar causing cuts, sprains or other injury - Sun wind exposure. Sun exposure causing sunburn. Wind causing windburn. Prolonged exposure causing skin problems and potentially cancer. -Muddy conditions causing slips or falls, vehicles become bogged. -Manual Handling

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Risk Subject Risk Description Risk Risk Score Score Corrective Raw Controls

Working outdoors at Slipping and falling; getting lost; 5 High 5 High night exposure Lifting/Moving heavy Causing back pain, shoulder strains 4 High 4 High equipment Use of Vehicles Travel in vehicles is a high risk activity. It 4 High 4 High could potentially cause; - fatal road accidents, - head impact injury while entering or exiting vehicles, - hand crush injuries from vehicle doors - travel sickness - fatigue - skidding due to wet/icy or snowy roads, inadequate tread on tyres or use on steep and unstable terrain - fire/explosion due to accident - collision with other vehicles - carbon monoxide poisoning from running vehicle in confined space

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Agenda Memorandum

Date 24 October 2017

Memorandum to Chairperson and Members Executive, Audit and Risk Committee

Subject: Quarterly Operational Report - September 2017

Prepared by: M J Nield, Director-Corporate Services

Approved by: B G Chamberlain, Chief Executive

Document: 1949430

Purpose The purpose of this memorandum is to receive and consider the Council’s Quarterly Operational Report (QOR) for the quarter ended 30 September 2017.

Recommendation That the Taranaki Regional Council: 1. receives and adopts the Quarterly Operational Report for the quarter ended 30 September 2017.

Background At the 3 August 2015 Executive Committee meeting, a proposed Operational Performance Reporting Framework was considered and adopted. As part of this framework, a QOR was to be introduced. The purpose of a Quarterly Operational Report (QOR) is to present a snapshot of the Council progressing through the delivery of the programme of activities agreed to in that year’s annual plan or long-term plan. It is designed to give a feel for how the Council is progressing and the forecast for the rest of the year.

Discussion The first 2017/2018, QOR has been developed and is presented for the Council’s consideration and adoption.

This report covers the first quarter of the 2017/2018 year and reports upon the achievement of the approved programme of work for 2017/2018 as adopted in the 2017/2018 Annual Plan. The focus of the Report is on operational performance. Financial performance will continue to be reported upon on a monthly basis through the six-weekly Executive, Audit and Risk Committee meetings.

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The Report is structured on the format of the performance management framework within the 2015/2025 Long-Term Plan and the 2017/2018 Annual Plan. Reporting is based upon each activity within the six groups of activities. The following is included:  The objective for that activity  Commentary/Highlights – a high-level overview of how that activity is progressing and any indications for future performance. Case studies and/or matters of interest may also be included in this section.  Outputs/Key performance indicators – these are the annual plan/long-term plan measures for the year together with actual performance to date. “NF” (non-financial status) is the performance year to date and “E” (expected future status) is the forecast for the rest of the year. The colours are as defined below.  Scoreboard – Outputs/Key performance indicators – this is a graphical representation of how performance is progressing and how it is forecast to progress for the rest of the year. The key is:

o green – performance is on target for the year or is forecast to remain on target for the year o orange – performance to date is at risk of not achieving the target or there is a risk that the year end performance may not be achieved o red – performance to date has not achieved the target or the performance for the rest of the year is unlikely to achieve the target o grey – the performance measure has been delayed o black – reporting on the performance measure has not been updated or the forecast for the rest of the year has not been updated.  Further explanation of all performance that is not “on target” is provided.

For the quarter ended 30 September 2017, the QOR shows that, across the range of the Council’s activities, the Council is making good progress on the adopted works programme. There are no new particular areas of concern that need to be considered by the Council. This level of performance is forecast to continue throughout the rest of 2017/2018.

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Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

Appendices/Attachments Document 1949428: September 2017 Quarterly Operational Report

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TABLE OF CONTENTS

Resource management planning ...... 2 Consent processing and administration ...... 4 Compliance monitoring programmes ...... 5 Pollution incidents and response ...... 6 State of the environment monitoring ...... 7 Resource investigations and projects ...... 9 Waste minimisation ...... 11 Sustainable land management plans and plant supply programme ...... 12 Biodiversity ...... 14 Enhancement grants ...... 15 Biosecurity planning ...... 16 Pest animal and pest plant management ...... 17 Regional land transport planning ...... 18 Public transport ...... 19 Harbour management ...... 20 Civil defence emergency management...... 21 Flood management and general river control ...... 23 River control schemes ...... 24 Regional gardens ...... 25 Puke Ariki ...... 27 Yarrow Stadium ...... 28 Investment management ...... 29 Community engagement ...... 31 Advocacy and response ...... 32 Governance ...... 33

ISSN 2463-4808 Document 1949428

Quarterly Operational Report – September 2017

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Quarterly Operational Report – September 2017

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INTRODUCTION

The purpose of a Quarterly Operational Report (QOR) is to present a snapshot of the Council progressing through the delivery of the programme of activities agreed to in that year’s annual plan or long-term plan. It is designed to give a feel for how the Council is progressing and the forecast for the rest of the year.

The QOR is structured in the following manner for each activity within each one of the six groups of activity:  The objective for that activity  Commentary/Highlights – a high level overview of how that activity is progressing and any indications for future performance. Case studies and/or matters of interest may also be included in this section.  Outputs/Key performance indicators – these are the annual plan/long-term plan measures for the year together with actual performance to date. “NF” (non-financial status) is the performance year to date and “E” (expected future status) is the forecast for the rest of the year. The colours are as defined below.  Scoreboard – Outputs/Key performance indicators – this is a graphical representation of how performance is progressing and how it is forecast to progress for the rest of the year. The key is:  green – performance is on target for the year or is forecast to remain on target for the year  orange – performance to date is at risk of not achieving the target or there is a risk that the year end performance may not be achieved  red – performance to date has not achieved the target or the performance for the rest of the year is unlikely to achieve the target  grey – the performance measure has been delayed  black – reporting on the performance measure has not been updated or the forecast for the rest of the year has not been updated.  Further explanation of all performance that is not “on target” is provided.

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RESOURCE MANAGEMENT

RESOURCE MANAGEMENT PLANNING

Preparing, adopting and maintaining comprehensive and publicly considered policies, plans and strategies that will deliver to the Taranaki community, efficient and effective management of the Council’s functions and Taranaki’s natural and physical resources.

COMMENTARY/HIGHLIGHTS

Continued to make progress on the review of the Coastal Plan including consultation with Iwi and others. A legal review of the Plan has been completed. Further work with Iwi may delay the presentation of the Plan to the Policy Committee by one meeting round. The release of a Proposed Freshwater Plan was delayed to allow further work to be undertaken. Consultants have been engaged to undertake work to address matters raised in submissions on the Draft plan. In the interim, the "Requirements for Good Farm Management in Taranaki" document has been completed and distributed to farmers and key stakeholders.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Complete preparation/full reviews and interim reviews of resource management policies, plans and strategies:

Regional Policy Statement: Interim review in 2016/2017. Full The Regional Policy Statement for Taranaki (RPS) was made review in 2019/2020. operative in January 2010. An interim review of the RPS has commenced with a draft Interim Review Report prepared and completed in 2017.

Regional Coastal Plan: Full review continued in 2017/2018. The review is ongoing. A Draft Coastal Plan and fact sheets have Interim review 2023/2024. been prepared and released for targeted consultation. 101 submissions/feedback were received and have been summarised. Further investigations and engagement being undertaken to inform the preparation of a Proposed Plan. Completed reports and a survey for determining surf break attributes and significance. Section 32 report is in preparation. The legal audit is underway.

Regional Air Quality Plan: Interim review 2016/2017. Full The review of the Regional Air Quality Plan for Taranaki was review 2021/2022. completed and made operative on 25 July 2011. The interim review of the efficiency and effectiveness of that Plan commenced with the preparation of a project brief and a first internal workshop. A draft report in preparation.

Regional Fresh Water and Land Plan: On going review The Freshwater and Soil Plans have been reviewed and a 2019/2020. combined Draft Plan was sent out for targeted consultation in 2015. Preparation of the Draft Section 32 Report has commenced. The public notification of a Proposed Plan has been deferred for up to five years in accordance with a revised NPSFM progressive implementation plan (PIP). A revised timeline was approved to allow the review to factor in planned Government reforms in freshwater management and to undertake further consultation and work on issues identified to date. In the meantime, progress on the Plan will continue with further work, consultation, studies and investigations to finalise Plan provisions. To inform the review a legal opinion was sought on the approach to wetland protection and a study has been commissioned to investigate and review limits for environmental flows.

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RESOURCE MANAGEMENT

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance

. On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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RESOURCE MANAGEMENT

CONSENT PROCESSING AND ADMINISTRATION

Processing all applications for resource consents and administering resource consents in an efficient and effective manner.

COMMENTARY/HIGHLIGHTS

Fewer resource consent applications are being received this quarter arising from the downturn in the oil and gas sector. However, work continues on new applications and consent renewals, including renewals for the large Fonterra Whareroa dairy processing site in South Taranaki. The prehearing process has been successful in resolving submissions on applications during the quarter thereby avoiding formal hearings. There have been no objections or appeals against consent decisions. The 100% consent processing timeframe compliance has been maintained.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Provide appropriate and timely information in response to Timely and appropriate information has been provided for all 100% of requests for assistance in implementing Resource information requests. Management Act 1991 plan rules.

Process and determine 100% of accepted resource consent All of the 34 resource consent applications processed during the applications (approximately 400 consents per annum), in month, and the year to date (72) were completed in accordance compliance with the Resource Management Act 1991, with the statutory procedures of the Act and the Council’s including compliance with statutory timeframes, and the Resource Consents Procedures documentation. Council’s Resource Consents Procedures document.

Successfully defend 100% of consent decisions appealed to No decisions have been appealed to the Environment Court the Environment Court.

Minimise the number and duration of resource consent 100% (2/2) of applications receiving submissions have been hearings by resolving, through the pre-hearing process, at resolved through the prehearing process. least 50% of submissions received on resource consent applications.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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RESOURCE MANAGEMENT

COMPLIANCE MONITORING PROGRAMMES

Undertaking effective and efficient monitoring of resource consents and, where necessary, undertaking successful enforcement action.

COMMENTARY/HIGHLIGHTS

Implemented 209 specific individual compliance programmes for major consent holders (including catchment programmes that cover multiple consent holders) in 2016/2017, together with additional programmes for hydrocarbon exploration and development activities. Consent holders are assessed each year on their environmental performance and on consent compliance. Overall ratings for consent holders in the 2016/2017 year were found to be 74% ‘high’ and 21% ‘good’. 2016/2017 programmes are being reported to the Council. The dairy farm effluent system non-compliance rate in 2016/2017 was at a level slightly higher than the previous year, due to a wetter season, and reflected the need to maintain oxidation pond systems. Appropriate enforcement action has been undertaken in response to non-compliance.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance 100% of individual compliance monitoring programmes for all The implementation of close to 100 individual compliance major consents designed, implemented and publicly reported monitoring programmes for the 2017/2018 monitoring period is upon (approximately 200 individual compliance monitoring underway. The number of programmes has reduced significantly programmes per annum) within the negotiated budgets and as a number of these have been combined to improve efficiency. completed within nine months of the end of the monitoring Overall the level of compliance monitoring on tailored monitoring period. programmes has remained static. 191 individual scheduled compliance programmes were designed and implemented in the 2016/2017 year, the majority of which are reported on annually (minor programmes such as quarries are reported on a biennial basis). By the end of September, 12 annual programmes in 12 reports were published. Two hydraulic fracturing reports and one wellsite report were also completed.

Implement and report on 100% of recommendations arising Within each compliance monitoring annual report, from prior year’s monitoring of resource consents subject to recommendations from previous reports are set out and their an individual compliance monitoring programme. implementation, via monitoring programme design and consent reviews, is reported upon. Implementation of every recommendation is reported within the relevant report.

Implement annual programmes for 100% of resource consents 0 inspections of minor industrial operations have been completed. for agricultural discharges and 90% of minor industries not These inspections are to ensure good environmental practices are otherwise subject to an individual compliance monitoring being achieved. 236 annual dairy inspections have been programme (approximately 3,300 inspections per annum). completed.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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RESOURCE MANAGEMENT

POLLUTION INCIDENTS AND RESPONSE

Responding effectively to pollution incidents, reducing the occurrence and effects of pollution and other unauthorised incidents and, where necessary, undertaking successful enforcement action.

COMMENTARY/HIGHLIGHTS

During the quarter the number of prosecutions in the system is low which shows an improved compliance attitude, possibly arising from past high profile prosecutions (and high fines). This should translate to improved environmental quality. The number of abatement and infringement notices issued is similar to 2016/2017 indicating similar compliance and non-compliance rates. There have been no significant marine oil spills that required implementing the response plan.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Respond to all consent non-compliance and implement During compliance monitoring 39 non-compliances were found appropriate advisory and enforcement actions to require with resource consent conditions. Issued 12 fourteen day letters, 100% compliance with resource consents and/or regional 18 abatement notices and 2 infringement notices. No prosecutions plans. have been initiated as a result of consent non-comliances.

Respond to 100% of pollution and other complaints (generally Responded to all 92 reported incidents (100%) within the required within fours hours of receipt) and where appropriate instigate timeframe. Instigated control and clean-up where required. Issued control, clean up and enforcement procedures, where 9 fourteen day letters, 21 abatement notices and 9 infringement reasonable and appropriate, and publicly report on all notices. One prosecution has been initiated as a result of environmental incidents. unauthorised incidents.

Administer and implement the Taranaki Regional Oil Spill Administered the Tier II Taranaki Regional Oil Spill Response Plan Response Plan as agreed with Maritime New Zealand in accordance with the programme agreed with Maritime New including responding to 100% of oil spills. Zealand. No significant marine oil spills occurred that warranted actioning the Plan.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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RESOURCE MANAGEMENT

STATE OF THE ENVIRONMENT MONITORING

Monitoring the state of the environment in Taranaki to enable periodic evaluation of trends in the state of the environment and of the effects of the implementation of the Council’s policies and plans—this activity contributes to all levels of service.

COMMENTARY/HIGHLIGHTS

Implementation of the suite of state of the environment (SEM) programmes (over 50) is continuing in 2017/2018. Reports on the state of and trends in the suitability for recreational use of fresh water and coastal beaches have been published. Other reports have considered aspects of SEM reporting as required by the National Policy Statement on Freshwater Management (NPS-FM) at national level. Support continues for the regional councils' environmental data LAWA website and engagment in developing the national EMaR (environmental monitoring and reporting) programmes alongside other regional councils and the Ministry for the Environment (particularly air quality, macroinvertebrates, and land use/land cover). The annual water quality 'report card' was released in August 2016.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Implement and report on 100% of the Council’s state of the Implementing 100% of the state of the environment monitoring environment monitoring programmes comprising monitoring programmes, in accordance with the programmes prepared for of surface fresh water quantity, levels and flows, fresh water 2017/2018. quality, groundwater quantity and quality, coastal waters, biodiversity, air quality and land use sustainability using recognized and reputable methods of data collection, analysis and reporting in accordance with the Council’s State of the Environment Monitoring Procedures document and State of the Environment Monitoring Programmes.

Monitor, review and where appropriate, further develop State of the environment monitoring is being delivered as existing programmes by 30 June of each year. scheduled. The fresh and marine recreational bathing water and the periphyton programmes were reported in June and September respectively. The periphytum programme has been extended in terms of number of sites and frequency. Additional sites for physical/chemical monitoring have been established and are being monitored. Soft shore marine and shellfish programmes are being scoped. The riparian management and freshwater physiochemical programmes have been drafted and are currently being reviewed. The current regional lake water quality programme is being reviewed to identify if additional parameters could be included for greater benefit. Further programmes may be required to address the proposed amendments made to the NPS for Freshwater.

Prepare and publish the five-yearly state of the environment The Council's five-yearly state of the environment report, Taranaki report. The next report is due in 2020. as one - Taranaki Tangata tu Tahi, was published in July 2015.

Maintain all quality assurance programmes and information All quality assurance programmes and information databases for databases for hydrometric, air quality, physicochemical hydrometric, air quality, physicochemical freshwater, terrestrial freshwater, terrestrial biodiversity, fresh water biological and biodiversity, fresh water biological and marine biological data, are marine biological data. IANZ registration for chemical analysis being maintained. International Accreditation New Zealand maintained. accreditation for a range of the tests undertaken by the laboratory has been maintained, with the most recent surveillance assessment undertaken at the end of July 2017 awarding the Council accreditation with no corrective actions required.

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RESOURCE MANAGEMENT

Performance measure Actual performance Maintain public access to on-line live regional data on Live on-line data was maintained and reported for 35 hydrology hydrology, meteorology, soil moisture and bathing beach sites, 27 meteorology sites, 11 soil moisture sites, 16 freshwater water quality. Live data reported on the Taranaki Regional sites, and 10 marine bathing beach water quality sites. Council’s website.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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RESOURCE MANAGEMENT

RESOURCE INVESTIGATIONS AND PROJECTS

Providing relevant research information for resource management purposes—this activity contributes to all levels of service.

COMMENTARY/HIGHLIGHTS

Participated in targeted, relevant, timely, and pro-active research and investigative studies that support and inform policies and activities, providing a sound scientific and evidential basis for decision-making and policy development. Various activities during 2016/2017 included exploring opportunities relevant to regional council activities with Crown Research Institutes (CRIs) towards the MBIE research 2017 bidding process for environmental research funding, allocation of CRI core funding (Strategic Science investment funds), and with several of the National Science Challenges- 'Our Land and Water', 'Resilience Challenge' (natural hazards), 'Sustainable Seas', 'Deep South' (climate change drivers and effects), and 'Our Biological Heritage'. Engagement in these Challenges has continued into 2017/2018. The Council continued to support studies on the effects of cadmium on soil health and productivity, crop integrity, and animal health, and interim research reports have been received. NIWA have been engaged to assess regional data on water quality (especially macroinvertebrates, nutrients and E coli) as a function of progressive riparian management. Collaboration continues with Dairy Trust Taranaki in studying water usage and soil condition under varying farm management regimes.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Over the period of the 2015/2025 Long-Term Plan the Council intends to undertake a range of resource investigations and applied research projects. Specifically for 2017/2018, the Council intends to: Continue to support the “best practice dairying catchments” Continuing to monitor ecological and physicochemical water study in the Waiokura Stream catchment. quality parameters within the Waiokura catchment, with consideration of data interpretation and analysis, into the 2017/2018 year. A research project was undertaken in 2016/2017 with GNS (co-funded), looking at groundwater quality in the catchment for review against OVERSEER predictions and for determining age of groundwater i.e., time lags in shallow groundwater in Taranaki. The report back from GNS on groundwater age and behaviour was received in December 2016. NIWA published an update on the state of and trends in the 5 national best practice dairy catchments which include the Waiokura catchment (water quality and more particularly ecological health) in May 2017.

Continue to use microbial source testing technology to The Mangaoraka Stream and the mid-reaches of the Patea River identify sources of faecal contamination in Taranaki waters. have been identified as potential targets of source investigations, should the need arise and conditions prove suitable.

Support studies into the behaviour and bioavailability of Participated in the Cadmium Working Group. Studies will provide cadmium in agricultural soils and fertilizer. an assessment of the risks to agriculture posed by accumulation of fertiliser derived-Cd and to provide evidence for effective soil management options to mitigate plant uptake. Studies are underway on cadmium accumulation in a range of forage and market garden crops grown in various soils; levels of Cd within NZ's agriculture and food chain systems; the significant of Cd within primary production sectors; options for management of soil systems and fodder pasture to control Cd uptake; field studies into concentrations of cadmium in horticulture produce (potatoes, leafy greens, wheat, onions) related to soil cadmium and soil characteristics; soil emendation studies (lime, compost) to control cadmium uptake; characterisation of cadmium binding in a variety of soil types; cadmium effects upon soil rhizobia and nitrogen availability; and cadmium effects upon livestock.

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RESOURCE MANAGEMENT

Performance measure Actual performance Engagement in "Envirolink" and other science research project Envirolink projects encompassing a revised national High Intensity development opportunities and strategies for regional Rainfall Design System, development of Discrete Water Quality councils, to enhance knowledge base for policy development Sampling Standards, farm scale soil mapping and applications, and implementation. Projects with clear relevance and benefit management options for aquatic weeds, assessment criteria for to Taranaki to be adopted by "Envirolink" and other funding fish passage and barrier mitigation options, a review of marine opportunities (advocacy to be reported through Council's recreational microbiological guidelines and their scientific basis, annual report processes). weed pest surveillance tool, wetland soils delineation, urban stormwater flows and quality monitoring, decision support, and interoperable water quality and transportation flows modelling are underway. There is on-going engagement with MBIE's National Science Challenges, to pursue specific projects of benefit to the Taranaki region-specifically the 'Resilience Challenge' (eg Mt Taranaki volcanic effects on agriculture, petroleum/petrochemical industry), 'Bioheritage', 'Sustainable Seas' (eg de-commissioning offshore installations; sediment movement and effects), and 'Our Land and Water' challenges. A strategic research workshop for regional councils' representatives was conducted in July, with participation from several ministries, CRIs, and Science Challenge representatives, to identify key future research priorities.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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RESOURCE MANAGEMENT

WASTE MINIMISATION

Encouraging and implementing waste management and cleaner production initiatives in Taranaki consistent with the Regional Waste Strategy for Taranaki and the waste management plans of the districts.

COMMENTARY/HIGHLIGHTS

The purpose of this work stream is to encourage and implement waste management and cleaner production initiatives in Taranaki consistent with the Regional Waste Strategy for Taranaki and the waste management plans of the districts. Significant areas of activity include in-house waste minimisation educational campaigns, public presentations and educational campaigns, provision of advice and case studies, the delivery of the 'love food hate waste' national campaign at a regional level, participation in the 'Keep NZ beautiful' at a local level, the administration of the Taranaki Solid Waste Management Committee, and a review of the Regional Waste Minimisation Strategy for Taranaki. Particular issues have been noted and position papers or submissions prepared, especially concerning waste tyre management and plastic bag use. In particular, the Council is working with the three district councils in the statutory reviews of their waste management plans.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance In collaboration with the region's territorial authorities, Servicing of the Taranaki Solid Waste Management Committee facilitate a regional approach to waste management initiatives (TSWMC) continues. The review of the district waste plans is and programmes at a policy, management, and underway. The STDC and SDC waste management plan process implementation level. This includes servicing the Taranaki has commenced. The 2017/2018 Education Plan has been Solid Waste Management Committee; delivery and prepared and adopted by the TSWMC. Implementation of this monitoring of the Waste Management and Minimisation plan is underway and includes school waste audits, school visits to Strategy for Taranaki, as well as the territorial authorities' the MRF, Stratford Clean-up week and business waste waste management and minimisation plans. minimisation information and advice.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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RESOURCE MANAGEMENT

SUSTAINABLE LAND MANAGEMENT PLANS AND PLANT SUPPLY PROGRAMME

Promoting sustainable land and riparian management by providing land management advice and information on an individual property basis and through advocacy and facilitation.

COMMENTARY/HIGHLIGHTS

The first riparian plan completion audit has been completed as part of an impending compliance regime. This has helped with the development of mobile technology that is currently being built to streamline the process. 4,946 poplar and willow poles plus 2,655 stakes have been harvested, dispatched and planted over the winter.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Planning services. Provide property planning services to There have been no comprehensive farm plans and no landholders. Prepare plans covering 1,000 hectares of land use agroforestry plans prepared. Plans cover 66.8% or 204,335 capability mapping in the hill country and 100 riparian plans hectares of the land in private ownership in the hill country. One in the intensive water management zone. riparian plan and one add-on have been completed for the year.

Monitoring and reporting. Liaise with and monitor For the year to date, there have been 1,353 liaisons (285 approximately 2,600 riparian plans and 100 farm plans and observations and 1,068 events). In total, 4,568.5 km of new report on the implementation of the recommended fencing fencing has been erected resulting in 85.03% of watwerways and planting. protected by fencing. Since 1 July 2017, 2,573.9 km of new planting has been established, resulting in 70.2% of watwerways having adequate vegetation where recommended.

Provision of advice. When requested, provide advice on Staff have responded to 43 requests all within the required sustainable land management practices within ten working timeframe. days.

Provide servicing and support to the Taranaki Biodiversity Provided administrative and treasury services to the Taranaki Trust and assistance to other organizations involved in Biodiversity Trust "Wild For Taranaki" promoting sustainable land management.

Provide annually, on a cost-recovery basis, approximately To the end of September 2017, 182,939 plants have been ordered 450,000 suitable plants for land stabilisation, soil conservation for the year. and riparian planting programmes.

Implement the South Taranaki and Regional Erosion Support 4,100 STRESS poles ordered and planted in July/August 2017. 14.2 Soil Conservation Programme including an estimated 4,000 hectares of retirement and reversion proposed. 3.05 kilometres of poplar poles, 50 ha of protection forestry and construction of fencing is proposed to protect 31.7 hectares of forestry and 22 km of retirement fencing to retire 400 ha of marginal land. retirement. Audits to be completed by end of October. This will be reported in November.

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RESOURCE MANAGEMENT

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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RESOURCE MANAGEMENT

BIODIVERSITY

Maintaining and enhancing the indigenous biodiversity of the Taranaki region, working alongside landowners and other groups and agencies in accordance with the Council’s policies and biodiversity strategy priorities.

COMMENTARY/HIGHLIGHTS

Work with landowners to prepare biodiversity plans that protect the values within their Key Native Ecosystems (KNE) continues. Work on existing plans including: fencing, planting and pest plant and animal control continues. Staff are actively looking for new sites that meet the Key Native Ecosystem criteria with particular focus on areas that are close to existing sites, to provide corridors of protection across the landscape. Work with our Wild for Taranaki partners on planning for a landscape programme “Restoring Taranaki” continues.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Prepare at least 10 biodiversity plans per annum for For the year to date six new biodiversity Plans have been prepared properties containing key native ecosystems (KNE). for KNEs with private land. In total 96 KNE’s with private land covering 4,348.7 hectares now have biodiversity plans. This equates to 51% of all KNEs with private land. In addition a further ten biodiversity plans have been prepared for KNE sites in public ownership.

Initiate and support implementation of work programmes on Implementation of work programmes has been initiated at six new all KNE’s with a biodiversity plan and monitor and report on Biodiversity Plans prepared this financial year (2017/18). progress. Implementation of work programmes was initiated at 100% of KNE that received new Biodiversity Plans (14 KNEs) in the 2016/17 financial year.

Undertake a trial programme to test large-scale predator Operational planning is well underway with estimated costs and suppression and eradication techniques across an entire control options identified. Work continues on identifying and catchment (the Waiwhakaiho). The trial will target possums, determining best approaches to potential funding partners mustelids (weasels, ferrets and stoats), feral cats and rats.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

14 Quarterly Operational Report – September 2017

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RESOURCE MANAGEMENT

ENHANCEMENT GRANTS

Promoting the protection of the environment through the provision of targeted enhancement grants.

COMMENTARY/HIGHLIGHTS

Enhancement grants provide funding for a range of the Council’s programmes including Key Native Ecosystems, wetland protection and STRESS. Funding is provided for projects as outlined in plans that are agreed to with the landowner. This funding also supports the Taranaki Biodiversity Trust “Wild for Taranaki”.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Implement a programme using environmental enhancement Excluding the STRESS budget, $82,500 worth of environmental grants for the protection of biodiversity habitats of regional enhancement grant funding has been allocated to environmental significance. enhancement projects within the region. Funds to the value of $17,55 are unallocated at this stage. For the year to date $6,481 of this funding has been paid out. $150,000 Bio-ops KNE funding is fully allocated, $27,500 Bio-ops has been paid out. These projects include support for biodiversity plans, regionally significant wetland projects and "Wild for Taranaki" projects.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

Quarterly Operational Report – September 2017 15

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BIOSECURITY

BIOSECURITY PLANNING

COMMENTARY/HIGHLIGHTS

A draft pest plan (plus section 72 costs benefit analysis report) has been prepared, taking into account a recently promulgated National Policy Direction and has been circulated for targeted consultation. A separate draft TRC Biosecurity Strategy has also been prepared and distributed for targeted consultation. It is anticipated publically notifying both documents in May 2017. Prior to targeted consultation, a Councillor workshop on the Draft Plan and strategy was held. The date for hearing of submissions has been set for 17 October 2017.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Undertake ten-yearly review of the Pest Management Plan for Ten year review of pest management strategies has been Taranaki in 2017/2018 and an interim review in 2022/2023. commenced in accordance with the Biosecurity Act, which included the preparation of a comprehensive section 72 cost/benefit analysis report and the public notification of a Proposed Pest Plan and a separate draft Taranaki Regional Council Biosecurity Strategy. The Plan and Strategy were publicly notified for public consultation on 20 May 2017 with the deadline for public submissions being 30 June. Ten submissions received. Summary of submissions report, officers report and revised RPMP and Strategy in prep.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

16 Quarterly Operational Report – September 2017

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BIOSECURITY

PEST ANIMAL AND PEST PLANT MANAGEMENT

Controlling pest animals and controlling or eradicating pest plants to minimise their adverse effects on biodiversity, primary production and the regional economy and environment.

COMMENTARY/HIGHLIGHTS

Public enquiries for a range of pest plant and pest animals continue to be attended to. Planning for the first round of control of Old Mans Beard within the Waingongoro catchment is on track with contractors due to start in the spring. The pest plant inspection programme continues. Landowners with pest plants on their properties are required to undertake control.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Dependent upon the review of the Pest Management Plan for Taranaki, undertake operational programmes through both the Pest Management Plan for Taranaki: and the Pest Management Strategy for Taranaki, including: Eradication of selected pest plants. Staff observed 61 sites this quarter of those 30 sites were controlled

Inspection, monitoring and where necessary, enforcement of In the first quarter there has been no monitoring scheduled for sustained control pest programmes. the Self-help possum programme as landowner control runs through until October. Inspections for pest plants this quarter total 271 A properties, 166 B properties and 34 C properties resulting in 23 direction notices being issued.

Raise public awareness of and respond to enquiries related to Provided advice and where appropriate undertook control action pest issues. for all notifications. This quarter 30 enquiries for pest plants were received, 17 of which were strategy pests. Received 56 enquiries for pest animals of which 47 were strategy pests.

Undertake direct control of pests within selected Key Native Pest plant and animal control was carried out at 100/101 key Ecosystems. native ecosystems with Biodiversity Plans in 2016/17. Pest control at KNEs with biodiversity plans is ongoing during 2017/18.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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TRANSPORT

REGIONAL LAND TRANSPORT PLANNING

Contributing to an effective, efficient and safe land transport system in the public interest.

COMMENTARY/HIGHLIGHTS

Taranaki's transport advocacy continues to be active on a number of fronts. In particular, work with the NZTA on the SH3 North (Awakino to Mt Messenger - confirmation of the Mt Messenger by-pass route and an increased budget to $200m), Bell Block to Waitara and New Plymouth to Hawera projects continues. The focus on the sealing of the Forgotten Highway (SH43) and general improvements to safety and maintenance standards continues. Implementing the adopted Regional Land Transport Plan for Taranaki 2015/2016 – 2020/2021 is ongoing - the mid-term review of the Plan is well underway and on target. Support provided to the Regional Transport Committee and the State Highway 3 Working Party. On going liaison with stakeholders and response to requests for submissions continues.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Complete preparation/full reviews and interim reviews of the transport policies, plans and strategies:

Review and make adjustments to the regional land transport Six variations (December 2015, June 2016, September 2016, March plan, as required, in accordance with statutory requirements. 2017 and May 2017) have been required to the Regional Land Transport Plan (RLTP). Development of 2018/2021 RLTP is underway.

Complete a mid-term review of the Regional Land Transport The regional component of the Regional Land Transport Plan is Plan 2015/16-2020/21 during 2017/2018. being implemented. The mid-term review is underway.

Review and make adjustments to the Transport Activity The Transport Activity Procurement Strategy for the Taranaki Procurement Strategy, as required, in accordance with region is current and ongoing. All reviews are up to date. statutory requirements.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

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TRANSPORT

PASSENGER TRANSPORT

Promoting the provision of community public transport in Taranaki and assist the transport needs of the transport disadvantaged.

COMMENTARY/HIGHLIGHTS

Existing passenger services continue to be provided throughput the region with ongoing monitoring of patronage, farebox and the region’s commerciality ratio. Total patronage across the services was up 10% on the corresponding period in 2016/2017. The Citylink and Connector services recorded patronage growth of 10.3% and 12.1% respectively. All the Southlink services recorded a decrease in patronage. Opunake to Hawera (-36%), Opunake to New Plymouth (-27%), Waverley to Hawera (-25%). The Total Mobility Scheme continues to assist people with impairments throughout the region. The new Total Mobility Administration System went live Monday 31 July. The system provides a new client management tool with the benefit of client trip data being recorded electronically. To enable this process all clients were reissued with a new magnetic stripe photo ID card. The mag-stripe card is swiped through an in-vehicle card reader capturing the client’s trip data. This process replaces the paper based voucher system. Implementation has been very successful with clients and drivers readily adopting the new process.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Provide Total Mobility subsidy assistance to qualifying Provided Total Mobility Scheme services to the targeted areas. persons through the New Zealand Transport Agency Trips YTD is 10,741 an increase of 7.1% (2016/17 - 38,477). An supported Total Mobility Scheme. Process complete additional 1,906 trips were made by the Ironside Vehicle Society, a applications from eligible applicants within 10 working days. increase of 4.0% (2016/17 - 6,850). The new TM Ridewise database does not provide report data on application processing timeframes.

Operate public transport services in the New Plymouth district Passenger transport services in the New Plymouth district and and regional Taranaki consistent with the Regional Public regional Taranaki were operated consistent with the Regional Transport Plan subject to funding approval from the New Public Transport Plan. Zealand Transport Agency and the availability of local share funding.

Monitor the region’s bus service contracts including Awaiting latest data to complete analysis. No problems patronage growth and fare box recovery. Monitor the anticipated. commerciality ratio of the region's public transport services and publish the ratio annually.

Provide financial assistance to the Ironside Vehicle Society Financial assistance to the Ironside Vehicle Society in 2017/2018 is subject to funding eligibility criteria being met. set at a base level of $50,000 An additional $15,000 has been approved subject to available funding to further assist Ironside.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

Quarterly Operational Report – September 2017 19

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TRANSPORT

HARBOUR MANAGEMENT

Promoting safe navigation for all users of the waters of Port Taranaki.

COMMENTARY/HIGHLIGHTS

There were no significant navigation and safety incidents at the port and there was compliance with the required codes and management systems. A revised Port Taranaki Harbour Safety Management System was presented to Maritime New Zealand (MNZ) for assessment.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Provide harbourmaster and harbour warden services for Port To date, no breaches have been reported. A new Harbourmaster Taranaki and implement the Navigation Bylaw for Port contract is in place. The Harbour Safety Management System has Taranaki and Approaches. No significant breaches of the been reviewed and sent to MNZ for approval. MNZ has requirements of the New Zealand Port and Maritime Safety responded noting the changes will be considered at the next Code, including the Port Taranaki Harbour Safety review date. Management System.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

20 Quarterly Operational Report – September 2017

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TRANSPORT

CIVIL DEFENCE EMERGENCY MANAGEMENT

Promoting and enhancing, within the Taranaki community, an integrated comprehensive emergency management system including reducing risk, maintaining readiness, and providing response and recovery capacity and capabilities.

COMMENTARY/HIGHLIGHTS

The Taranaki Civil Defence Emergency Management Group's review of the effectiveness of and areas for enhancement of CDEM in Taranaki identified key areas for development: a re-structuring and expansion of the Taranaki Emergency Management Office, to support and mentor district councils in delivery of CDEM functions at the local level- i.e., risk identification and reduction, community readiness and resilience, and response and recovery capacity and capability- and reflection on the effectiveness and efficiency of existing governance and administrative structures and means of delivery of civil defence activities as part of the review of the Group Plan. Related work projects are being implemented, including implementation of territorial authority responsibilities and functions, a stocktake of hazards and risks research undertaken for the Taranaki region, a stocktake of regional readiness and risk reduction, risk and hazard identification workshops, and adoption of a CDEM Group strategy, vision and priorities.The Group has focused on identifying options for constituting arrangements, including exploring funding agreements, delivery of administrative functions, and the management level and role for the Emergency Management Office. A re-structuring of the Taranaki Emergency Management Office has been completed, with all positions filled.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Prepare, implement, monitor and report upon the Taranaki The 2017/18 Annual Business Plan for Taranaki Civil Defence and Civil Defence Emergency Management Annual Business Plan. Emergency Management (CDEM) has been developed and reported to CEG and CDEM Group. Six key activity areas have been identified in the 2016/2017 Annual Business Plan: (i) strong governance arrangement and accountability exist, including future work plans and administration of advisory groups, the Co- ordinating Executive Group (CEG) and the CDEM Group meetings, with progressive reporting of progress on implementing the Annual Business Plan. (ii) disaster risk management, strengthening risk planning and integration between Councils and Civil Defence; (iii) organisation resilience, focusing operational systems and protocols for Emergency operations/coordination centres; (iv) community resilience through public education, community resilience plans and a Group resilience strategy; (v) capability development through training courses delivered at EOC and district council levels, and community volunteers; and (vi) response and recovery arrangements through appointment of local Controllers, Recovery Managers and CIMS function leads. Work continues on the Group Plan review. Implementation of the annual business plan is reported to each meeting of the CEG and CDEM Group.

Implement, monitor and report upon the Civil Defence Implementation of the Civil Defence Emergency Management Emergency Management Group Plan for Taranaki 2017, and Group Plan via the annual work plan for 2017/18 has been draft, and notify the next Plan in 2022. reported to CEG and CDEM Group. The development plan for implementing the Group Plan in 2017/18 is being implemented and reported as agreed, to each meeting of CEG and CDEM Group. An amended project schedule for the preparation of the next Group Plan has been approved, submitted to MCDEM for information, and endorsed by MCDEM. Related work projects are being implemented, including receipt and adoption of a review of TA responsibilities and functions, a stocktake of hazards and risks research undertaken for the Taranaki region, a stocktake of regional readiness and risk reduction, risk and hazard identification workshops, and a CDEM Group strategy, vision and priorities adopted. Work on strategy recovery near completion (a new requirement under the CDEM amendment Act).

Quarterly Operational Report – September 2017 21

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HAZARD MANAGEMENT

Performance measure Actual performance Maintain, review, and as needs be, implement effective The CDEM Group is moving to local delivery (via District Council response and recovery procedures to minimise harm or Emergency Operations Centres), and regional coordination damage to people and property arising from emergency through the Taranaki Emergency Management Office (TEMO) and events. the regional Emergency Coordination Center. Specification and development of operational systems for use during response and recovery is underway. Standards and guidance for development of emergency management facilities has been approved, and TEMO continues to work with District Council partners on EOC establishment. A planning and procedures framework is completed, indicating the level and type of planning required (statutory plans, strategy, contingency, standard operating procedures, and business planning). Plan gap analysis is complete and a forward work plan developed, including a significant component of capability development for training new CDEM Center staff and exercising.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

22 Quarterly Operational Report – September 2017

103 Executive, Audit & Risk Committee - Quarterly Operational Report September 2017

HAZARD MANAGEMENT

FLOOD MANAGEMENT AND GENERAL RIVER CONTROL

Providing accurate and timely flood warnings, providing flood control advice and undertaking minor works and associated actions to minimise and prevent damage by floods and river erosion.

COMMENTARY/HIGHLIGHTS

Information from Council rainfall and river level monitoring systems was provided. Council provided advice to landowners on a range of river/stream flood control advance and drainage related matters.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Effectively monitor rainfall and river levels and issue timely Meteorological and hydrometric monitoring sites were maintained flood warnings. Maintain continuous monitoring systems to high level of operational standard, with no significant (100% functional) and issue timely warnings for all cases, maintenance works required. All incoming telemetry data is where necessary, in accordance with the Flood Event Standard monitored continuously and responded to in accordance with the Operating Procedure (approximately 35 warnings per annum). Council's procedures for the monitoring of severe weather and flood events. Ten severe weather watch alerts and four warnings have been received from MetService in the year to September. The Council was not required to issue any flood warnings during the month of September.

Undertake minor emergency river and flood control works No emergency works requiring Council funding have been when necessary. required.

Respond to 100% of requests for drainage, river and flood Advice, predominantly to farmers, provided, as required, on a control advice and assistance within ten working days. range of requests for general advice on works in streams.

Facilitate river control projects for the environmental The willow control programme continues, focusing on removal of enhancement of the region’s waterways. willow in riparian areas to improve flood flows and enhance riparian vegetation.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

Quarterly Operational Report – September 2017 23

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HAZARD MANAGEMENT

RIVER CONTROL SCHEMES

Managing and maintaining river control scheme works to accepted design standards to minimise and prevent damage by floods and river erosion.

COMMENTARY/HIGHLIGHTS

All schemes (Lower Waiwhakaiho, Lower Waitara, Okato and Waitotara) have been maintained as per their respective asset management plans. A range of maintenance works have been occurring across the schemes including vegetation clearance within the flood channel and erosion control works. Stage One of the Opunake flood control scheme works are complete and Stage Two design works are nearly completed and will be constructed this coming summer.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Manage all flood and river control schemes across the region All schemes have been maintained as per asset management plans in accordance with asset management plans; including Lower and management plans. Opunake: Stage 1 complete. Waiwhakaiho, Lower Waitara, Okato and Waitotara Schemes.

Manage other minor river schemes to standards as agreed Minor schemes are at agreed standards. No recent work has been with scheme participants. required.

Implement the rural component of an Opunake Flood Control Stage 1 - diversion to the Otahi Stream - has been completed. Scheme. The rural component of the Scheme will divert Stage 2 - diversion to the Waiaua River - will have the design floodwaters from the Hihiwera Stream to the Otahi Stream finalised in October to be put to tender and constructed in the and the Waiaua River. An urban component will be designed 2017/2018 summer. and implemented by the South Taranaki District Council. The scheme is designed to protect Opunake from a 1% Annual Exceedance Probability (one-in-100-year) flooding event.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

24 Quarterly Operational Report – September 2017

105 Executive, Audit & Risk Committee - Quarterly Operational Report September 2017

RECREATION, CULTURE AND HERITAGE

REGIONAL GARDENS

Ensuring that Hollard Gardens, Tupare and Pukeiti are maintained and enhanced as regionally significant recreational and heritage amenities.

COMMENTARY/HIGHLIGHTS

The regional gardens continue to consolidate as significant community assets and during the last quarter the opening of the recently completed Rainforest Centre signified a pivotal moment in the upgrade programme. We now have world class facilities to match the plant collection and an all weather and all year destination with the extensive covered garden areas.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Provide three regional gardens (Tupare, Hollard Gardens and The gardens are now open all day every day for free general use Pukeiti) for free general use by the regional community. Three by the regional community and visitors throughout the year gardens open 9am to 5pm seven days a week, with Hollard Gardens and Tupare open till 8pm during daylight saving hours.

Encourage the increased use of the regional gardens by the Visitor numbers for July to September 2017: Pukeiti 8,244, Tupare community for recreational purposes and for specific events. 3,723, and Hollard Gardens 1,624. Events: Pukeiti 4, Tupare 9, and Hollard Gardens 7. There has been a number of educational workshops , all well attended. The weather has had an impact on the general garden visitation with an extremely wet late winter early spring affecting patronage. However the opening of the Rainforest Centre at Pukeiti coupled with the new covered gardens and other attractions and the subsequent publicity has lead to a doubling of visitation for the quarter.

Continue implementing the Pukeiti asset management plans Good progress has been made in the last quarter with the focusing on completing the upgrade works at Pukeiti. Priority upgrade works with the completion of the Rainforest Centre tasks to be completed include: Rebuilding the Lodge and including fitout and landscaping in very challenging weather surrounds. Enhancing the garden and the rhododendron conditions.. A modern and interactive interpretation area (Rimu collection, including development of the weka wetland and Room) has proved popular for all ages and the café is now open children’s activities. Continuing the implementation of the and busy. The Founders Lawn has been laid and is establishing plant collection plan. Refurbishing the plant borders. well. The tender process for the Lodge build is complete and the Upgrading the outer ring tracks. Completing the upgrade of contractor selected. The kids tree house trail has been successfully the Rain Forest Centre. Investigating further recreational launched and will require minor changes due to the high demand opportunities. prior to the summer holidays. The weka wetland site has been cleared of woody plant material in preparation for landscaping in late November. It also noted that in the last quarter we have undertaken a significant landscape project at Hollards to improve the arrival experience. This has involved removing the driveway and creating a new pathway through new gardens and relocating service access. We are currently planting.

Review and adopt asset management plans for Tupare, The revised asset management plans for Tupare and Hollard Hollard Gardens and Pukeiti by 31 October 2017. Gardens are complete and ready for Council consideration and adoption. The Pukeiti plans are pending and readfy for consideration at the council workshop.

Quarterly Operational Report – September 2017 25

106 Executive, Audit & Risk Committee - Quarterly Operational Report September 2017

RECREATION, CULTURE AND HERITAGE

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

26 Quarterly Operational Report – September 2017

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RECREATION, CULTURE AND HERITAGE

PUKE ARIKI

Maintaining an ongoing partnership relationship with the Puke Ariki regional museum and library including the ongoing use of display and presentation material within an annual project.

COMMENTARY/HIGHLIGHT

The relationship with Puke Ariki is progressing well. The projects for 2017/2018 (see below) have been agreed upon and are in the process of being delivered.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Maintain an ongoing partnership relationship with the Puke Quarterly partnership meetings are held with Puke Ariki. The four Ariki regional museum and library including the ongoing use 2017/2018 projects are: Bugs: Permian Monsters exhibition of display and presentation material within an annual project. ($80,000); Refresh conservation component of Taranaki Naturally Gallery ($20,000); Taranaki Theatre Experience ($25,000); Aotea Utanganui Museum of South Taranaki. ($25,000).

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

Quarterly Operational Report – September 2017 27

108 Executive, Audit & Risk Committee - Quarterly Operational Report September 2017

RECREATION, CULTURE AND HERITAGE

YARROW STADIUM

Facilitating the continued maintenance and development of Yarrow Stadium.

COMMENTARY/HIGHLIGHTS

Recent highlights include the completion of the new hospitality suites and the associated food and beverage amenities, the successful hosting of the All Blacks v Argentina test match and the Taranaki home Mitre 10 Cup rugby games. The Management Agreement between the Taranaki Stadium Trust and the New Plymouth District Council is working well. Preparation of the 2018/2028 asset management plans is underway.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Contract with New Plymouth District Council for the operation The Trust and the New Plymouth District Council have a and management of Yarrow Stadium. management agreement for the operation and management of Yarrow Stadium. New Plymouth District Council are operating and managing Yarrow Stadium under this agreement.

Undertake asset management planning for the future A joint committee of the Council and the New Plymouth District maintenance, enhancement and development of Yarrow Council have developed and adopted a strategic plan and Stadium. associated 2015/2025 asset management plan for the long-term development of Yarrow Stadium. The Council is completing the 2017/2018 programme. Work is ongoing on the 2018/2028 asset management plans.

Provide regional funding for the future maintenance, The Council provides regional funding to the Taranaki Stadium enhancement and development of Yarrow Stadium. Trust for long-term maintenance and development at Yarrow Stadium. The implementation of the 2017/2018 programme of major maintenance and development is the focus.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

28 Quarterly Operational Report – September 2017

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RECREATION, CULTURE AND HERITAGE

INVESTMENT MANAGEMENT

Ensuring that the equity, property and treasury investments owned by the Council are efficiently managed.

COMMENTARY/HIGHLIGHTS

Council’s investment management activities are working well within defined policies and procedures. The AGM of Port Taranaki Ltd has occurred and a number of issues around membership of the Board are being addressed. Achieving the interest rate return targets is challenging in the current low interest environment. It is unlikely that the Council will achieve its 2015/2025 Long-Term Plan Investment Policy target of 6% in 2017/2018. This target needs to be reviewed for the 2018/2028 Long-Term Plan.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Consider Port Taranaki’s annual statement of corporate intent Port Taranaki Ltd’s performance was reviewed when considering and monitor performance against established targets. their 2016/2017 Annual Report at the Council’s Ordinary Meeting on 18 September 2017. The half-year results to 31 December 2017 will be reviewed and considered in the first half of 2018. Performance against standards set in the statement of corporate intent is reported in the annual report.

Appoint Directors at Port Taranaki Ltd’s annual general A review of the skill sets needed by the Board has been completed meeting and at other times as required. and the process of filling current vacancies has commenced.

Undertake on-going liaison with port company directors and Regular formal and informal briefings and discussions occurred management. between the Board and the Council throughout 2017/2018.

Manage and, where appropriate, divest leasehold land in Leasehold land is managed in accordance with the Council's accordance with the Council’s Investment Policy. Investment Policy. A 5% return from leasehold land rentals is expected in 2017/2018. No properties have been divested.

Manage and maximise returns from treasury investments in All treasury investments are in accordance with the Council’s accordance with the Investment Policy. Investment Policy, however the Long-Term Plan target return of 6% is unlikely to be achieved.

Quarterly Operational Report – September 2017 29

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REGIONAL REPRESENTATION, ADVOCACY AND INVESTMENT MANAGEMENT

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

The Council’s Investment Policy has a 6% target for interest returns. The Local Government Act 2002 requires the Council to set a target. In the current interest rate environment, the Council is unlikely to reach this target for 2017/2018. Since the target was established, the Council has exceeded consistently exceeded it. The target will need to be reassessed in the preparation of the 2018/2028 Long-Term Plan.

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REGIONAL REPRESENTATION, ADVOCACY AND INVESTMENT MANAGEMENT

COMMUNITY ENGAGEMENT

Promoting community awareness and understanding of the Council’s functions and activities, and making quality and timely information publicly available.

COMMENTARY/HIGHLIGHTS

The implementation of the digital and social media strategy is the primary focus and good progress is being made on all fronts. The web design and redevelopment project is progressing well with Stage 2 going live in the second quarter of 2017/2018. ALGIM's 2017 Council website rankings place the Council as the second best regional council website. Work is progressing on a transport app with the NZTA. Preparations are underway for the 2017 Environmental Awards. The environmental education programme continues to be busy and successful.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Engage with the community across a range of channels A range of communications activities have been undertaken to including print and digital publications, news media, websites, support Council programmes. Stories about the regional gardens, mobile and social media. Produce regular editions (4 per public transport, water quality, riparian planting, hydrology and annum) of the Recount newsletter to over 1,000 stakeholders TRC Annual report have featured in social media and print. through a range of channels. Development of the Council website is ongoing and Stage 2 is about to go live. Content is reviewed and maintained on external websites and the intranet. The Council's website was second best regional council website in ALGIM 2017 rankings. Social media activity continues to grow with 2,761 followers on Facebook.

Implement the Council’s environmental awards programme. Nominations have closed for the 2017 environmental awards. The awards will be presented in November 2017.

Provide an on-going environmental education programme for There have been 75 class visits/field trips involving 2140 students school children and the wider community including class (including the Gardens' School Programmes), 1 staff meetings, 0 visits, field trips and the Pukeiti Rainforest School. professional development sessions and 1issue of the SITE newsletter.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

Quarterly Operational Report – September 2017 31

112 Executive, Audit & Risk Committee - Quarterly Operational Report September 2017

REGIONAL REPRESENTATION, ADVOCACY AND INVESTMENT MANAGEMENT

ADVOCACY AND RESPONSE

Advocating and responding, on behalf of the Taranaki community, to initiatives proposed by other agencies, when those initiatives affect the statutory responsibilities of the Council or relate to matters of regional significance, which are of interest or concern to the people of Taranaki.

COMMENTARY/HIGHLIGHTS

Less submissions made this quarter. However, senior Council staff continue to be heavily involved in various forums, mainly in Wellington, associated with policy development, advocacy, liason and response to a range of national initiatives.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Assess the implications of policy initiatives proposed by other To date, three (3) submissions have been made. agencies including discussion documents, proposed policies, strategies, plans and draft legislation, and respond within required timeframes on approximately 15 occasions per year.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

32 Quarterly Operational Report – September 2017

113 Executive, Audit & Risk Committee - Quarterly Operational Report September 2017

REGIONAL REPRESENTATION, ADVOCACY AND INVESTMENT MANAGEMENT

GOVERNANCE

Facilitating public representation by the Council and its committees in accordance with statutory requirements.

COMMENTARY/HIGHLIGHTS

The focus at the moment is the preparation of the 2018/2028 Long-Term Plan. Work is underway to respond to and to prepare for Councillor workshops on the LTP. The Council is on target with all its statutory governance and engagement obligations. The 2016/2017 Annual Report was adopted on 18 September 2017. The draft 2018/2028 Long-Term Plan will be considered in February 2018 for subsequent public consultation.

OUTPUTS/KEY PERFORMANCE INDICATIONS

Performance measure Actual performance Complete statutory accountability documents including long- Statutory planning and reporting accountability documents have term plans in 2017/2018, 2020/2021 and 2023/2024, annual all been prepared within statutory requirements and timeframes. plans in years in which a long-term plan is not prepared, and The 2016/2017 Annual Report was adopted on 18 September an audited annual report. 2017. The Council will consider the draft 2018/2018 LTP at its February 2018 Ordinary meeting.

Preparation of agendas and minutes and the conduct of All meetings are conducted in accordance with adopted Standing meetings in accordance with Standing Orders and the Local Orders and the Local Government Official Information and Government Official Information and Meetings Act 1987. Meetings Act 1987. Agendas are publicly available at least 48 hours before each meeting and minutes are prepared and adopted for all meetings.

SCOREBOARD - OUTPUTS/KEY PERFORMANCE INDICATIONS

Non Financial Performance Future Performance . On target . Target may not be achieved . Target will not be achieved . Delayed . Overdue

EXPLANATION FOR KEY PERFORMANCE INDICATIONS OTHER THAN “ON TARGET”

N/A

Quarterly Operational Report – September 2017 33

114 Executive, Audit & Risk Committee - 2017/2018 Insurance Programme

Agenda Memorandum

Date 24 October 2017

Memorandum to Chairperson and Members Executive, Audit & Risk Committee

Subject: 2017/2018 Insurance Programme

Approved by: M J Nield, Director – Corporate Services

B G Chamberlain, Chief Executive

Document: 1945439

Purpose The purpose of this memorandum is to inform Members on the placement of the Council’s insurance needs for the 2017/2018 financial year.

Recommendation That the Taranaki Regional Council: 1. notes the placement of insurance and coverage for material damage, business interruption, motor vehicles, personal accident, marine hulls, fidelity guarantee, travel, employer’s liability, statutory liability, hall hirer’s liability and combined liability risks for 2017/2018.

Background The Council insures itself against various risks (detailed below). This insurance programme runs from 1 July to 30 June of each year. Prior to the completion of each insurance year, the Council reconfirms the risks it wishes to insure against and the levels of cover it wishes to retain. The four Taranaki Councils operate a shared service arrangement for the placement of the region’s insurance needs. This acts as a bigger base to attract savings through economies of scale.

Discussion The insurance market has gone through significant change in 2017.

The 2017/2018 insurance renewal was impacted by the 2016 earthquake activity and that, along with Fire Service Levies increases of 40% on 1 July 2017, has resulted in increased material damage insurance premiums. NZ Mutual Liability (Risk Pool) has withdrawn from the market and the Council’s combined liability policies have now been transferred to Lloyds of London, which has resulted in superior coverage and financial savings.

115 Executive, Audit & Risk Committee - 2017/2018 Insurance Programme

The rest of this memorandum outlines the risks covered, the coverage received, the insurer providing the coverage and the cost of the coverage. The 2016/2017 figures are included in brackets to enable comparison.

Material damage Coverage: Physical loss or damage to property listed in the “Statement of Property Insured”. 2017/2018 2016/2017 Buildings $27,249,400 ($23,932,700) Plant/Contents $11,795,000 ($11,480,000) Normal Deductible: $5,000 ($5,000) Deductible (Natural Disaster/Earthquake): Property constructed 1935 to now 5% Site Value 5% Site Value Property constructed pre 1935 10% Site Value 10% Site Value Insurer: QBE (Vero) Premium: $72,779 ($58,875)

Business interruption Coverage: Loss consequent upon interruption to the business as a result of damage to property insured by the material damage policy, resulting in increased costs. 2017/2018 2016/2017 Additional costs (shared limit all Taranaki Councils) $10,000,000 ($10,000,000) Claim preparation costs $100,000 ($100,000) Indemnity period 24 months (24 months) Insurer: QBE (Vero) Premium: $444 ($404)

Motor vehicles Coverage: All fleet vehicles anywhere in New Zealand—accidental loss or damage and third party liability (excluding windscreens). 2017/2018 2016/2017 Deductible: $1,000 ($1,000) Insurer: Vero (Vero) Premium: $13,247 ($11,740)

Personal accident Coverage: Costs associated with the replacement of elected members and senior staff resulting from death by accident, whilst on the business of the Council, including travel to and from. 2017/2018 2016/2017 Elected members: $50,000 ($50,000) Senior officers: $100,000 ($100,000) Insurer: AIG Insurance NZ Ltd (AIG Insurance NZ Ltd) Premium: $500 ($541)

116 Executive, Audit & Risk Committee - 2017/2018 Insurance Programme

Marine hulls Coverage: Loss or damage to the insured vessels including third party liability. 2017/2018 2016/2017 Sum insured: $55,652 ($55,652) Deductible: $2,500 ($2,500) Insurer: Vero (Vero) Premium: $693 ($674)

Fidelity guarantee Coverage: Fidelity of employees—theft, fraud and embezzlement. 2017/2018 2016/2017 Indemnity: $500,000 ($500,000) Deductible: $25,000 ($25,000) Insurer: AIG Insurance NZ Ltd AIG Insurance NZ Ltd Premium: $4,405 ($4,405)

Travel insurance Coverage: All authorised travel by employees of the Council including spouse/partner and dependant children. 2017/2018 2016/2017 Limits of Liability: Various Various Deductible: Nil Nil Insurer: AIG Insurance NZ Ltd AIG Insurance NZ Ltd Premium: $126 ($500)

Employer’s liability Coverage: Indemnifies the insured for legal liability to pay damages as a result of an employee sustaining personal injury in the course of their employment, and to pay the costs and expenses in the investigation, defence or settlement of claims where such injury is not covered by ACC legislation. Aggregate limit of liability (shared limit all Taranaki Councils): 2017/2018 2016/2017 For any one policy period $1,000,000 ($1,000,000) Any one event $1,000,000 ($1,000,000) Deductible: 2,500 2,500 Insurer: Vero Vero Premium: $720 ($720)

Statutory liability Coverage: Indemnifies the insured against defence costs and penalties as a result of an alleged breach of any Act of Parliament, other than “Excluded Acts”. Aggregate limit of liability (shared limit all Taranaki Councils): 2017/2018 2016/2017 For any one policy period $5,000,000 ($2,000,000) Any one event $5,000,000 ($2,000,000) Deductible: 25,000 5,000 Insurer: Vero Vero Premium: $2,925 ($2,135)

117 Executive, Audit & Risk Committee - 2017/2018 Insurance Programme

Hall hirer’s liability Coverage: Groups and individuals that hire Council facilities. Indemnity for liability in respect of personal injury or property damage. 2017/2018 2016/2017 Each occurrence $1,000,000 ($1,000,000) Deductible: $500 $500 Insurer: Vero Vero Premium: $250 ($250)

Combined liability Coverage: Protection for legal liability with the business of Council and arising from occurrences resulting in personal injury or property damage. Protection for legal liability in respect of any breach of a professional duty arising from a negligent act, error or omission associated with the business of the Council. The legal responsibilities of the Harbourmaster under the Maritime Transport Act as well as Maritime Wreck Removal Costs. 2017/2018 2016/2017 Public Liability: $300,000,000 ($200,000,000) Deductible: $5,000 ($5,000) Professional Indemnity: $300,000,000 ($200,000,000) Deductible $10,000 ($10,000) Environmental Impairment Liability* 500,000 - Deductible 25,000 - Indemnity Harbourmaster: $20,000,000 ($20,000,000) Deductible: $25,000 ($25,000) Indemnity Wreck Removal Costs: $5,000,000 ($5,000,000) Deductible: $25,000 ($25,000) Insurer: Lloyds of London NZ Mutual Liability (Risk Pool) Premium: $19,725 ($23,497)

*Insures liability for clean-up and related costs following discovery of unknown gradual pollution or contamination. This cover forms part of the Lloyds of London Council liability programme and did not incur any additional premium.

Policy considerations This memorandum and the associated recommendations are consistent with the policy documents and positions adopted by this Council under various legislative frameworks

118 Executive, Audit & Risk Committee - 2017/2018 Insurance Programme

including, but not restricted to, the Local Government Act 2002, the Resource Management Act 1991 and the Local Government Official Information and Meetings Act 1987.

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

119 Executive, Audit & Risk Committee - Asset Management Plans for the Lower Waiwhakaiho Flood Control Scheme, Lower Waitara River Flood Control Scheme and Okato Scheme

Agenda Memorandum

Date 24 October 2017

Memorandum to Chairperson and Members Executive, Audit & Risk Committee

Subject: Asset Management Plans for the Lower Waiwhakaiho Flood Control Scheme, Lower Waitara River Flood Control Scheme and Okato Scheme

Approved by: S R Hall, Director - Operations

B G Chamberlain, Chief Executive

Document: 1939727

Purpose The purpose of this memorandum is to advise that updated asset management plans have been prepared for the Lower Waiwhakaiho Flood Control Scheme (Waiwhakaiho Scheme ), the Lower Waitara River Flood Control Scheme (Waitara Scheme) and the Okato Scheme and to explain the purpose and content of these new plans.

Executive summary The original asset management plans for the Waitara and Waiwhakaiho Schemes were prepared in 2008 specifically as building blocks for the 2009/2019 Long-Term Council Community Plan and focused largely on the financial management of the schemes.

To coincide with the scheme upgrade programmes, scheme management plans were subsequently developed in 2012 with an operational perspective for the Waiwhakaiho and Waitara Schemes and were presented to the Council on 18 June 2012.

The financial and operational plans were combined and updated in 2015 to:  bring together the financial and operational perspectives  to take into consideration the upgraded Waiwhakaiho Scheme  include matters required by the recent amendments to the Local Government Act 2002, Section 101b – Infrastructure Strategy.

A new asset management plan was also prepared in 2015 for the Okato Scheme.

As upgrade works on the Waitara Scheme were completed in 2016, the Waitara Asset Management Plan has now been amended to ensure that the Plan reflects changes to the assets, and that the Scheme assets are well managed to provide the agreed standard of protection to the Waitara community.

120 Executive, Audit & Risk Committee - Asset Management Plans for the Lower Waiwhakaiho Flood Control Scheme, Lower Waitara River Flood Control Scheme and Okato Scheme

The asset management plans will be formally reviewed every three years to tie into the LTP timelines but will also be updated as required to recognise additions and changes to the scheme assets and new performance modelling tools currently under development.

Recommendations That the Taranaki Regional Council: 1. receives and adopts the Lower Waiwhakaiho Flood Control Scheme, the Lower Waitara River Flood Control Scheme, and the Okato Scheme updated asset management plans 2. notes that these plans take into account Section 101B – Infrastructure Strategy of the Local Government Act 2002 3. notes that these plans will be amended as required to recognise other changes to the scheme assets and management processes.

Background The original asset management plans for the Waitara and Waiwhakaiho Schemes were prepared in 2008 specifically as building blocks for the 2009/2019 Long-Term Council Community Plan and focused largely of the financial management of the Schemes.

Management Plans for the Lower Waiwhakaiho and the Lower Waitara River Flood Control Schemes and the Okato Scheme were prepared in 2012 and 2013 respectively with an operational perspective to ensure that the schemes effectively deliver scheme benefits on a long-term, sustainable basis.

These plans were combined and updated to:  bring together the financial and operational perspectives  to take into consideration the upgraded Waitara and Waiwhakaiho Schemes  include matters required by the amendments to the Local Government Act 2002, Section 101b – Infrastructure Strategy.

Discussion The asset management plans:  provide important background information to aid the understanding and management of the schemes;  describe and detail the assets, their design standards and current values  set out the works and resources required to ensure that they continue to provide the design level of service  set out the accounting and financial policies relevant to the schemes and how the scheme activities are funded  detail maintenance and monitoring expenditure requirements which feed into the annual budget process  set out the infrastructure strategy pertaining to each scheme  set out the performance monitoring and regular inspection processes.

121 Executive, Audit & Risk Committee - Asset Management Plans for the Lower Waiwhakaiho Flood Control Scheme, Lower Waitara River Flood Control Scheme and Okato Scheme

The infrastructure strategy, included in the plan following the amendment to the Local Government Act:  details the potential for changes to the scheme arising from changes to the assets being protected  details the renewal and replacement requirements and their funding sources  sets out the risks to the scheme arising from natural disasters and the funding sources required to maintain the schemes performance standards  sets out the funding required over the next 30 years.

Copies of the plans are attached with this memorandum.

The following table sets out the key scheme parameters

Scheme Protection standard Asset value Average annual 30/6/17 maintenance projections Lower Waitara 1% AEP $8,687,850 $46,900 Lower Waiwhakaiho 1% AEP $3,308,050 $40,900 Okato None specified $396,900 $15,000 ** AEP – Annual Exceedance Probability

Key changes to the asset management plans since 2015 include:  The Waiwhakaiho and Waitara plans have the key points summarised at the beginning of the document;  The Lower Waitara Scheme upgrade to 1% AEP protection has been completed;  The Okato Scheme AMP is now included in the suite of TRC river management plans;  Asset valuations have been updated;  Expenditure projections have been updated;  Minor edits and grammatical changes.

122 Executive, Audit & Risk Committee - Asset Management Plans for the Lower Waiwhakaiho Flood Control Scheme, Lower Waitara River Flood Control Scheme and Okato Scheme

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

Appendices/Attachments – three separate reports

Document 1939592 - Lower Waitara River Flood Control Scheme Asset Management Plan Document 1931168 - Lower Waiwhakaiho River Flood Control Scheme Asset Management Plan Document 1939779 - Okato Scheme Asset Management Plan

123 Executive, Audit & Risk Committee - Asset Management Plans for Hollard Gardens and Tupare

Agenda Memorandum  Date 24 October 2017

Memorandum to Chairperson and Members Executive, Audit & Risk Committee

Subject: Asset Management Plans for Hollard Gardens and Tupare

Approved by: S R Hall, Director-Operations

B G Chamberlain, Chief Executive

Document: 1938467

Purpose The purpose of this memorandum is to advise that the revised asset management plans have been prepared for Hollard Gardens and Tupare and to summarise the revisions of these plans.

Executive summary The three year revision of the respective asset management plans for the regional gardens Tupare and Hollard Gardens has been completed. These plans are designed to maintain develop and position the gardens for the Taranaki community and their visitors to engage and enjoy. Tupare and Hollard Gardens have completed their respective significant upgrade programmes (Tupare 2005-2008, Hollard Gardens 2005-2008, Hollard Centre 2013) and are now in a consolidation phase with the main focus now on maintenance and enhancement of existing facilities and growing community ownership, pride and use. Recommendations That the Taranaki Regional Council: 1. receives and adopts the Hollard Gardens and Tupare Asset Management Plans 2. agrees to include the budgets and summarised proposals of the two Asset Management Plans in the draft 2018/28 Long Term Plan.

Background The original asset management plans for Hollard Gardens and Tupare were adopted in 2005 with subsequent revisions in 2008, 2011 and 2014. These plans contain a strategic framework, goals and objectives to position the gardens as high quality public garden experience for the public purpose.

124 Executive, Audit & Risk Committee - Asset Management Plans for Hollard Gardens and Tupare

Discussion Tupare and Hollard Gardens These are now the fourth revision of the asset management plans for Hollard Gardens and Tupare. They are now in a consolidation phase after the completed infrastructure and facilities development of the previous plans.

The focus of these asset management plans is:  maintaining and enhancing the infrastructure and facilities to a high standard to complement the respective gardens  growing community ownership pride and use and the general visitation  continue to refine and improve the actual gardens so they respectively maintain an excellent standard

There are no major projects programmed for Tupare and Hollard Gardens in the next 10 years and the budgets reflect that. However, there are a number of smaller projects proposed over the next three years. These project focus on improving the facilities and garden environment.

Projects included: Hollard Gardens  new barbeque and shelter in response to congestion with the existing facility  new single garage workshop to free up existing shed for education workshops in Bernie’s Home Garden  extend culvert and backfill to create more car parking Tupare  Cottage upgrade, including: heating, lighting and access to increase and enhance visitor usage  Continue art work based on the arts and crafts genre to consolidate Tupare as a high quality garden experience  Tennis court hospitality upgrade investigation

125 Executive, Audit & Risk Committee - Asset Management Plans for Hollard Gardens and Tupare

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

Appendices/Attachments – two separate reports Document 1907428- Tupare Asset Management Plan Document 1907447 - Hollard Gardens Asset Management Plan

126 Executive, Audit & Risk Committee - Tapuae Roa - Make Way for Taranaki

Agenda Memorandum

Date 24 October 2017

Memorandum to Chairperson and Members Executive, Audit and Risk Committee

Subject: Tapuae Roa – Make Way for Taranaki

Approved by: B G Chamberlain, Chief Executive

Document: 1944611

Purpose The purpose of this memorandum is to introduce ‘Tapuae Roa – Make Way for Taranaki’, the Taranaki Regional Economic Development Strategy report, which was formally released on 31 August 2017, and to recommend it be received pending development and consideration of a more detailed ‘Action Plan’ that will complete the strategy development process.

A full copy of the Strategy can be viewed on-line at http://www.makeway.co.nz/media/1025/make-way-strategy.pdf while regular updates on the project can be found on the ‘Make Way for Taranaki’ website http://www.makeway.co.nz/

Executive summary The ‘Tapuae Roa – Make Way for Taranaki’ regional economic development strategy (the ‘Strategy’) was initiated by the Taranaki Mayoral Forum in mid 2016 and work on it began in earnest in early October 2016.

A Lead Team drawn from local businesses and organisations, iwi, central and local government to provide strategic direction, management and oversight, oversees the project.

The Strategy was officially released at a public launch on 31 August 2017, and was attended by a large number of organisations, agencies and individuals from the private sector, iwi, local government and central government.

The Strategy contains a Mission statement, vision, goals and values that underpin it before setting out its approach to key sectors of the regional economy. Three key growth areas are identified: tourism and visitor services; energy futures and future foods. Acceleration of key enablers of economic growth such as hard infrastructure (roads etc), science, digital support, skills and training are then outlined. Mainstays of the economy such as dairy, energy and engineering are anticipated to experience incremental sector growth. The tourism and visitor sector is seen as providing significant potential to contribute to regional economic development with the iconic Taranaki Crossing being a major drawcard for international and domestic visitors to the region.

127 Executive, Audit & Risk Committee - Tapuae Roa - Make Way for Taranaki

Work is continuing on an Action Plan on key growth sectors and economic enablers identified in the Strategy. It is anticipated that the Action Plan, identifying actions and delivery and investment priorities, will be completed in December 2017 at which time the Council will be in position to consider formal adoption of the Strategy. A Ministerial launch date for the Action Plan has yet to be confirmed but is likely to be early in the new year.

Recommendations That the Taranaki Regional Council: 1. receives the memorandum ‘Tapuae Roa – Make Way for Taranaki’, 2. receives the report ‘Tapuae Roa – Make Way for Taranaki’, the Taranaki Regional Economic Development Strategy August 2017 3. notes that formal adoption of the Strategy will await the outcome of a more detailed Action Plan that will complete the strategy development process.

Background The ‘Tapuae Roa – Make Way for Taranaki’ regional economic development strategy (the ‘Strategy’) was initiated by the Taranaki Mayoral Forum in mid 2016.

Consultants Henley Hutchings and MartinJenkins were commissioned to undertake the work, which was underway by early October 2016.

The project is being managed by the New Plymouth District Council on behalf of the four councils of Taranaki, in partnership with the iwi of Taranaki and in association with central government. This Council’s funding contribution to the Strategy was $30,000. The project sponsors’ contribution totalled $290,000. Additional funding accessed from central government to support the project totalled $190,000 including $100,000 from Te Puni Kokiri and $90,000 from the Ministry of Business, Employment and Innovation and the State Services Commission.

The Strategy is an update and refresh of the previous strategy prepared in 2010, which has provided guidance for economic development activities in the region, and in particular for the work of Venture Taranaki.

A Lead Team drawn from local businesses and organisations, iwi, central and local government to provide strategic direction, management and oversight, oversees the project. The Lead Team is chaired by local businessman and former mayor of New Plymouth Peter Tennant. The Council’s Chairman David MacLeod is a member of the Lead Team. A Project Management Team with representatives form the sponsoring organisations provide project support services.

A strong partnership approach has been seen as necessary in implementing the 2017 Strategy, and is to be given wider application, involving business organisations, central government agencies and iwi – as well as local councils.

128 Executive, Audit & Risk Committee - Tapuae Roa - Make Way for Taranaki

However, work is continuing on an Action Plan on key growth sectors and economic enablers identified in the Strategy. It is anticipated that the Action Plan, identifying actions and delivery and investment priorities, will be completed in December 2017.

How the Strategy came together Much of the background work for the Strategy came from detailed economic analysis undertaken by MartinJenkins, of the region as a whole and the sectors and economic enablers within it. Comparisons with other regions and the national economy were made to get a sense of where the Taranaki economy was at in relation to others.

Detailed profiling was then undertaken by HenleyHutchings in the form of Mayor-hosted meetings with stakeholders, an-all-of councillor workshop and a series of expert informant interviews with business leaders and stakeholders. This enabled a ‘Mission’, ‘Vision’ ‘Goals’ and ‘Value’ statements to be developed followed by a ‘long list’ of potential development opportunities to be investigated further. The long list was then subject to a filtering process, in consultation with the Lead Team, to identify a shorter list for more detailed assessment.

These opportunities were further developed with the help of Action Teams appointed to assist the Lead Team to identify exactly what may be required, by whom, when and with what investment, to further unlock sustainable regional growth. The Action Teams are still in the process of putting together a detailed Action Plan covering areas such as the visitors sector, energy futures, future foods, connectivity/accessibility, the Māori economy, talent, skills and innovation etc. As noted above, the Action Plan is expected to be completed in December 2017 at which time the Council will be in position to consider formal adoption of the Strategy.

Throughout the process leading up to this point, there have been regular meetings of the Lead Team, supported by the Project Management Team with consultant input, to review and provide feedback on progress.

What the Strategy says

The title for the Strategy, ‘Tapuae Roa – Make Way for Taranaki’refers to ‘the footprints across centuries’, looking back into the past and looking ahead to the future. ‘Make Way for Taranaki’ indicates a new energy and a new direction in future, for the region.

The core focus for Tapuae Roa – Make Way for Taranaki, is people. It is based strongly on the idea that it is people that take economies forward.

The adopted ‘Mission’ for the Strategy is ‘Taranaki – Where talent becomes enterprise’. The Mission statement attempts to capture the notion to single-mindedly grow the talent and entrepreneurship, skills and capabilities of the whole Taranaki community as the foundation of a modern economy.

The ‘Vision’ – ‘Attractive lifestyles; talented people; high value economy’, recognises what is important to the next generation who are critical to achieving the outcome sought. Three goals expand on what is meant by each of these aspects of the Vision.

129 Executive, Audit & Risk Committee - Tapuae Roa - Make Way for Taranaki

A series of ‘Value’ statements then underpin the Strategy. Overarching values reaffirm that the people of Taranaki are at the heart of the Strategy, sustainability of our natural environment is paramount and that thinking long term and preparing for the next generation is critical. Strategic values add depth and substance to the overarching values.

One of the five strategic values is ‘Resource use efficiency, waste minimisation, biodiversity and environmental sustainability where a nurturing attitude toward nature is part of working with and appreciating environmental resources.‘ This sits well within this Council’s overall Mission, goals and values.

Three key growth sectors are targeted for accelerated growth:  the tourism and visitor sector  energy futures and  future foods.

The key enablers – those sectors that provide the foundations for growth – have been identified as:  major hard infrastructure (e.g. ports and roads)  major sector supports (science, research, technology, accessibility and connectivity)  people capability and capacity (education, housing, skills etc)  Māori (capacity and capability to engage in economic growth)  major business supports (digital, innovation and incubation)  investment (assembling the investment capital needed to facilitate development).

Other sectors such as agriculture, energy (oil and gas), engineering, food processing, and forestry and wood processing have been identified as incremental contributors to the regional economic development strategy.

Of the three sectors targeted for accelerated growth, the Strategy identifies the visitor sector as perhaps offering the best opportunities for growth in the short to medium term building on continuing national growth in the sector and the attractions (many of which are under- developed) associated with the mountain.

Initial thinking coming from the Visitor Sector team is that the number one new iconic experience of the Taranaki Crossing, with the right investment, will be a significant new drawcard for international and domestic visitors to the region. This new ‘mountain to surf’ experience extending from the North Egmont Visitors’ Centre to the Council’s internationally recognised Pukeiti rainforest garden and from there down to Oakura on the coast, offers a significant upside to the visitor industry in Taranaki and one that can be progressed relatively quickly provided the right investment is made.

This Council is investing heavily in upgrades at Pukeiti and has indicated a willingness to contribute to further development of walking and cycling tracks to connect Pukeiti to the coast, subject to a proposal from the project owners (New Plymouth District Council). However, the Taranaki Crossing proposal needs significant additional funding from central government to make it a reality.

Details of these and other initiatives will be forthcoming when the Action Plan is completed in December 2017. A formal Ministerial launch date for the Action Plan has yet to be confirmed but is likely to be early in the new year.

130 Executive, Audit & Risk Committee - Tapuae Roa - Make Way for Taranaki

Implications for the Council

One important consideration for the Council is that the timing of the completion of the Action Plan will coincide with deliberations of this Council (as well as the district councils) on its long term plan. It is possible that the Council will be approached to help promote or fund implementation of the regional economic development strategy.

The Council has contributed to the funding of this study in the interests of getting an updated regional strategy in place. However, when it comes to funding specific actions to deliver the strategy, Council funding should be closely aligned with its specific functions and not be put towards more general regional economic development and promotion activities. This is because from a local government perspective, district councils already have responsibilities in this area and TRC funding on top of district council funding would represent ‘double dipping’ on the same ratepayers for the same activities.

If the case can be made for greater local government support for economic development activities, district councils should step up and fund such activities. This Council already contributes a significant portion of funding into economic development/tourism promotion activities. For instance, it contributes to the marketing of Taranaki gardens through the promotion of its three garden properties. Proposals are in place to consider increasing this level of garden marketing and promotion .

In addition, at Yarrow Stadium, the Council and the NPDC have a shared-service partnership whereby the Council funds long-term maintenance and development of the Stadium and the NPDC funds the operations and event marketing aspects.

If the Council ends up supporting the Pukeiti to Coast walkway gateway, then this will have a significant financial boost to tourism promotion in Taranaki.

In total, in can be agued that the Council’s financial and other contributions already exceed that of a number of the territorial authorities in Taranaki.

Financial considerations—LTP/Annual plan This memorandum and the associated recommendations are consistent with the Council’s adopted Long-Term Plan and estimates. Any financial information included in this memorandum has been prepared in accordance with generally accepted accounting practice.

131 Executive, Audit & Risk Committee - Tapuae Roa - Make Way for Taranaki

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

132 Executive, Audit & Risk Committee - Taranaki Stadium Trust: 2016/2017 Annual Report

Agenda Memorandum

Date 24 October 2017

Memorandum to Chairperson and Members Executive, Audit and Risk Committee

Subject: Taranaki Stadium Trust: 2016/2017 Annual Report

Prepared by: M J Nield, Director-Corporate Services

Approved by: B G Chamberlain, Chief Executive

Document: 1945378

Purpose The purpose of this memorandum is to receive and consider the Taranaki Stadium Trust’s 2016/2017 Annual Report.

Recommendation That the Taranaki Regional Council: 1. receives the Taranaki Stadium Trust’s 2016/2017 Annual Report.

Background The Council took over control of the Taranaki Stadium Trust on 27 June 2013. As such, the Trust is a council-controlled organisation of the Council.

The purpose of the Trust is to promote the effective and efficient maintenance, development, management, operation and promotion of Yarrow Stadium as a community asset used for recreation, sporting and cultural activities for the benefit of the people of Taranaki, working in particular with the Taranaki Regional Council and the New Plymouth District Council.

Council-controlled organisations are required to produce and audited annual report within three months of the completion of each financial year.

Discussion The Taranaki Stadium Trust has prepared, and has had audited, its 2016/2017 Annual Report—refer attached.

The implementation of the agreed programme of major maintenance and development through to 30 June 2017 was the focus. The significant development programme planned for 2016/2017 was new hospitality suites and food/beverage facilities in the Yarrow Stand.

133 Executive, Audit & Risk Committee - Taranaki Stadium Trust: 2016/2017 Annual Report

This project was completed in time for the All Blacks against Argentina rugby test match on 9 September 2017. Improving and/or increasing the hospitality options provide additional opportunities for larger events to be attracted to Yarrow Stadium.

The adopted programme of minor and major maintenance programmes for the year was completed. This programme of maintenance and development was delivered on time and on budget.

Planning for the maintenance and development projects due to be delivered in 2017/2018 and the planning for the development of the 2018/2028 asset management plans commenced.

The Trust’s financial position continues to be strong. The Trust has incurred some debt to finance the recovering of the stand roofs and the new hospitality facilities.

Operationally, Yarrow Stadium hosted 10 major events including the hosting of a Wellington Phoenix A-League game against the Western Sydney Wanderers, a Chiefs Super Rugby game against the Reds and the Taranaki national provincial championship rugby games. Yarrow Stadium also hosted a number of T20 domestic games. There were also over 33,000 visitors to Yarrow Stadium for 413 community events (excluding major events).

Yarrow Stadium is well regarded nationally and internationally and, as such, the Trust is confident that high quality national and international events will continue to be hosted.

An unmodified audit opinion was received from the Trust’s auditor (Deloitte on behalf of the Auditor-General)—refer attached.

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

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Appendices/Attachments Document 1920873: Taranaki Stadium Trust 2016/2017 Annual Report. Document 1945318: Taranaki Stadium Trust 2016/2017 Annual Report Audit Opinion.

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INDEPENDENT AUDITOR’S REPORT

TO THE READERS OF TARANAKI STADIUM TRUST’S FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION FOR THE YEAR ENDED 30 JUNE 2017

The Auditor-General is the auditor of Taranaki Stadium Trust (the trust). The Auditor-General has appointed me, Melissa Youngson, using the staff and resources of Deloitte Limited, to carry out the audit of the financial statements and performance information of the company on his behalf.

Opinion

We have audited:

- the financial statements of the company on pages 5 to 16, that comprise the statement of financial position as at 30 June 2017, the statement of financial performance, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and

- the statement of service performance of the trust on page 4.

In our opinion:

- the financial statements of the company on pages 5 to 16:

- present fairly, in all material respects:

- its financial position as at 30 June 2017; and

- its financial performance and cash flows for the year then ended; and

- comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Public Sector).

- the performance information of the company on page 4 presents fairly, in all material respects, the company’s actual performance compared against the performance targets and other measures by which performance was judged in relation to the company’s objectives for the year ended 30 June 2017.

Our audit was completed on 18 September 2017. This is the date at which our opinion is expressed.

The basis for our opinion is explained below. In addition, we outline the responsibilities of the Trustees and our responsibilities relating to the financial statements and the performance information, we comment on other information, and we explain our independence.

Basis for opinion

We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Responsibilities of the Trustees for the financial statements and the performance information

The Trustees is responsible on behalf of the company for preparing financial statements that are fairly presented and that comply with generally accepted accounting practice in New Zealand. The Trustees are also responsible for preparing the performance information for the company.

The Trustees is responsible for such internal control as it determines is necessary to enable it to prepare financial statements and performance information that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements and the performance information, the Trustees are responsible on behalf of the company for assessing the company’s ability to continue as a going concern. The Trustees are also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Trustees intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

The Trustees’ responsibilities arise from the Local Government Act 2002.

Responsibilities of the auditor for the audit of the financial statements and the performance information

Our objectives are to obtain reasonable assurance about whether the financial statements and the performance information, as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers, taken on the basis of these financial statements and the performance information.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

- We identify and assess the risks of material misstatement of the financial statements and the performance information, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.

- We evaluate the appropriateness of the reported performance information within the company’s framework for reporting its performance.

- We conclude on the appropriateness of the use of the going concern basis of accounting by the Trustees and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor’s report to the related disclosures in the financial statements and the performance information or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

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- We evaluate the overall presentation, structure and content of the financial statements and the performance information, including the disclosures, and whether the financial statements and the performance information represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Trustees regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

Other Information

The Trustees are responsible for the other information. The other information comprises the information included on pages 1 to 3 and 17, but does not include the financial statements and the performance information, and our auditor’s report thereon.

Our opinion on the financial statements and the performance information does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the financial statements and the performance information, our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the financial statements and the performance information or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Independence

We are independent of the company in accordance with the independence requirements of the Auditor- General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1(Revised): Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

Other than the audit, we have no relationship with, or interests in, the company.

Melissa Youngson, Partner Deloitte Limited On behalf of the Auditor-General Hamilton, New Zealand

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Taranaki Stadium Trust 2016/2017 ANNUAL REPORT

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Document 1706670 September 2016

140 Executive, Audit & Risk Committee - Taranaki Stadium Trust: 2016/2017 Annual Report

Table of Contents

Entity information for the Year Ended 30 June 2017...... 1 Trustee’s Report...... 2 Statement of Service Performance...... 4 Statement of Financial Performance for the Year Ended 30 June 2017...... 5 Statement of Changes in Equity for the Year Ended 30 June 2017 ...... 5 Statement of Financial Position as at 30 June 2017...... 6 Statement of Cash Flows for the Year Ended 30 June 2017...... 7 Notes to the Financial Statements...... 8 Trust Directory...... 17

Document 1920873

Taranaki Stadium Trust: 2016/2017 Annual Report

141 Executive, Audit & Risk Committee - Taranaki Stadium Trust: 2016/2017 Annual Report

Entity information for the Year Ended 30 June 2017

Legal name

Taranaki Stadium Trust

Type of entity and legal basis

The Taranaki Stadium Trust (the Trust) is a charitable trust incorporated in New Zealand under the Charitable Trusts Act 1957 and is domiciled in New Zealand. The Trust is controlled by the Taranaki Regional Council and is a Council Controlled Organisation as defined under section 6 of the Local Government Act 2002, by virtue of the Council's right to appoint the Board of Trustees.

The Trust’s purpose

Structure of the Trust’s operations, including governance arrangements

The Trust comprises a Board of two Trustees who oversee the governance of the Trust. The Trustees are appointed by the Taranaki Regional Council. The Trust does not employ any staff. All the Trust’s administrative and support services are undertaken by the Taranaki Regional Council. The operation of Yarrow Stadium is undertaken by the New Plymouth District Council pursuant to a Management Agreement.

Main sources of the Trust’s cash and resources

Operating grants received from the Taranaki Regional Council are the primary sources of funding to the Trust.

Outputs

Refer to the statement of service performance.

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Trustee’s Report

The Trustees are pleased to present the Taranaki Stadium Trust's 2016/2017 Annual Report.

The Trust, the New Plymouth District Council and the Taranaki Regional Council have a partnership arrangement for the operation and the development, maintenance and enhancement of the Yarrow Stadium facilities. Under the Trust’s Deed and the Management Agreement between the Trust and the New Plymouth District Council, the New Plymouth District Council operates and funds the operations of Yarrow Stadium. The Taranaki Regional Council funds, via the Trust, the long-term maintenance and development of Yarrow Stadium.

This partnership for funding and operating/maintaining/developing assists in maintaining Yarrow Stadium as a premier regional sports and events venue.

Strategic Highlights

The implementation of the agreed programme of major maintenance and development through to 30 June 2017 was the focus. The significant development programmes planned for 2016/2017 was new hospitality suites and food/beverage facilities in the Yarrow Stand. This project was completed in time for the All Blacks against Argentina rugby test match on 9 September 2017. Improving and/or increasing the hospitality options provide additional opportunities for larger events to be attracted to Yarrow Stadium.

The adopted programme of minor and major maintenance programmes for the year was completed. This programme of maintenance and development was delivered on time and on budget.

Planning for the maintenance and development projects due to be delivered in 2017/2018 and the planning for the development of the 2018/2028 asset management plans commenced.

Financial Highlights

The Trust’s financial position continues to be strong. The Trust has incurred some debt to finance the recovering of the stand roofs and the new hospitality facilities.

Operating Highlights

Yarrow Stadium is well regarded nationally and internationally and, as such, the Trust is confident that high quality national and international events will continue to be hosted. The Council is delighted to note the return of the All Blacks to Yarrow Stadium in September 2017 for a game against Argentina in the Investec Rugby Championship.

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Trustee’s Report

Looking Ahead

The future prospects for Yarrow Stadium and the Trust remain bright.

Michael Davey Michael Nield Trustee Trustee 18 September 2017 18 September 2017

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Statement of Service Performance

Performance Targets

The performance of Taranaki Stadium Trust has been judged against the following measures:

The presence of a Management Agreement with the New Plymouth District Council for the operation of the Stadium

An agreement for the management and operation of Yarrow Stadium, between the Trust and the New Plymouth District Council, is in place. The original agreement for the Council to manage and operate the stadium was signed in 2004 and the latest renewal came into effect from 27 June 2013. New Plymouth District Council operated Yarrow Stadium in accordance with the Management Agreement during 2016/2017.

The provision of funding for a programme of agreed maintenance and long-term development of the Stadium. The programme of maintenance and long-term development is to be agreed upon by the Taranaki Regional Council and the New Plymouth District Council.

The New Plymouth District Council and the Taranaki Regional Council have agreed upon a long-term maintenance and development programme for the ten years from 2015/2016 to 30 June 2025. The Taranaki Regional Council provided the annual funding of $876,000 to the Taranaki Stadium Trust. This year’s programme involved completion of the minor and major maintenance programmes for the year. This programme of maintenance and development was delivered on time and on budget. The major development project in 2016/2017 was new hospitality suites and food/beverage facilities in the Yarrow Stand. This project was completed in time for the All Blacks against Argentina rugby test match on 9 September 2017.

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Statement of Financial Performance for the Year Ended 30 June 2017

Notes Actual $ Actual $ 2016/2017 2015/2016 Revenue Council funding 1 876,000 876,000 Interest revenue 4,953 11,360 Sundry income - 148 Total revenue 880,953 887,508

Expenses Depreciation 642,897 633,832 Finance expenses 2 59,138 61,889 Other expenses 3 347,487 499,630 Total expenses 1,049,522 1,195,351

Surplus/(deficit) (168,569) (307,843)

Other comprehensive revenue Gains/(losses) on revaluation of Stadium 1,434,835 - Total other comprehensive income 1,434,835 -

Total comprehensive income/(deficit) 1,266,266 (307,843)

Total comprehensive income/(deficit) attributable to: Taranaki Regional Council 1,266,266 (307,843) Total comprehensive income/(deficit) 1,266,266 (307,843)

Statement of Changes in Equity for the Year Ended 30 June 2017

Notes Actual $ Actual $ 2016/2017 2015/2016

Balance at 1 July 25,613,993 25,921,836 Surplus/(deficit) for the year (168,569) (307,843) Other comprehensive income 1,434,835 - Total comprehensive income/(deficit) 1,266,266 (307,843)

Balance at 30 June 4 26,880,259 25,613,993

The accompanying notes form part of these financial statements.

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Statement of Financial Position as at 30 June 2017

Notes Actual $ Actual $ 2016/2017 2015/2016 Assets Current assets Cash and cash equivalents 5 571,568 440,242 Debtors and other receivables 7 169,410 22,539 Total current assets 740,978 462,781

Non-current assets Property, plant and equipment 6 29,822,607 27,629,949 Total non-current assets 29,822,607 27,629,949

Total assets 30,563,585 28,092,730

Liabilities Current liabilities Creditors and other payables 8 1,903,063 518,474 Borrowings 9 1,780,263 1,960,263 Total current liabilities 3,683,326 2,478,737

Total liabilities 3,683,326 2,478,737

Net assets 26,880,259 25,613,993

Equity Accumulated funds 4 15,861,024 16,029,593 Asset Revaluation Reserve 4 11,019,235 9,584,400 Total equity attributable to the Trust 4 26,880,259 25,613,993

The accompanying notes form part of these financial statements.

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Statement of Cash Flows for the Year Ended 30 June 2017

Notes Actual $ Actual $ 2016/2017 2015/2016 Cash flows from operating activities Taranaki Regional Council 876,000 876,000 Interest received 4,068 11,529 Sundry income received - 148 Payments to suppliers (300,890) (202,671) Interest paid (59,138) (61,889) Goods and services tax (net) (32,723) (127) Net cash from operating activities 10 487,317 622,990

Cash flows from (used in) investing activities Purchase of property, plant and equipment (175,991) (4,148,452) Net cash from (used in) investing activities (175,991) (4,148,452)

Cash flows from financing activities Applied to borrowings (180,000) - Provided from borrowings - 1,960,010 Net cash from financing activities (180,000) 1,960,010

Net (decrease)/increase in cash and cash equivalents 131,326 (1,565,452) Opening cash and cash equivalents 440,242 2,005,694 Closing cash and cash equivalents 5 571,568 440,242

The goods and services tax (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

The accompanying notes form part of these financial statements.

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Notes to the Financial Statements

Statement of accounting policies Reporting entity

Rather than making a financial return, the primary objective of the Trust is to is to promote the effective and efficient maintenance, development, management, operation and promotion of Yarrow Stadium as a community asset used for recreation, sporting and cultural activities for the benefit of the people of Taranaki, working in particular with the Taranaki Regional Council and the New Plymouth District Council. The Trust has elected to apply PBE SFR-A (PS) Public Benefit Entity Simple Format Reporting – Accrual (Public Sector) on the basis that the Trust does not have public accountability (as defined) and has total annual expenses of less than $2 million.

The financial statements are prepared on the assumption that the Trust will continue to operate in the foreseeable future. The financial statements of the Trust are for the year ended 30 June 2017. The financial statements were authorised for issue by the Board of Trustees on 18 September 2017.

Basis of preparation

Measurement base

The financial statements have been prepared on a historical costs basis, modified by the revaluation of certain fixed assets.

Functional and presentation currency

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the Trust is New Zealand dollars.

Changes in accounting policies

There have been no changes in accounting policies for the year ended 30 June 2017.

Significant accounting policies

The following is a summary of the significant accounting policies, adopted by the Trust, in the preparation of these financial statements.

Goods and services tax

The Trust is registered for Goods and Services Tax (GST). The financial statements have been prepared exclusive of GST, with the exception of receivables and payables, which are stated inclusive of GST. The net amount of GST, recoverable from or payable to the Inland Revenue Department (IRD), is included as part of receivables or payables, in the statement of financial position. The net amount of GST, paid to or received from the IRD, is classified as an operating cash flow, in the statement of cash flows.

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Notes to the Financial Statements

Revenue

Council grants are recognised as revenue when the funding is received unless there is an obligation to return the funds if conditions of the grant are not met (“use or return condition”). If there is such an obligation, the grant is initially recorded as a liability and recognised as revenue when conditions of the grant are satisfied.

Interest revenue is recorded as it is earned during the year.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks with original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are shown within borrowings, as a current liability, in the statement of financial position.

Investments

Investments comprise investments in terms deposits with banks. Deposits with banks are initially recorded at the amount paid. If it appears that the carrying amount of the investment will not be recovered, it is written down to the expected recoverable amount.

Debtors and other receivables

Debtors are initially recorded at the amount owed. When it is likely the amount owed (or some portion) will not be collected, a provision for impairment is recognised and the loss is recorded as a bad debt expense.

Property, plant and equipment

Property, plant, and equipment is recorded at cost, less accumulated depreciation and impairment losses with the exception of land and buildings which is recorded at valuation. Donated assets are recognised upon receipt of the asset if the asset has a useful life of 12 months or more, and the current value of the asset is readily obtainable and significant. Significant donated assets for which current values are not readily obtainable are not recognised. For an asset to be sold, the asset is impaired if the market price for an equivalent asset falls below its carrying amount. For an asset to be used by the Trust, the asset is impaired if the value to the Trust in using the asset falls below the carrying amount of the asset.

Accounting for revaluations

When an item of property, plant and equipment is revalued, any accumulated depreciation, at the date of the revaluation, is eliminated against the gross carrying amount of the asset. Then, the net amount is restated, to reflect the revaluation.

If the carrying amount of an item of property, plant and equipment increases, as the result of a revaluation, the increase shall be recognised in the asset revaluation reserve, within other comprehensive income. However, the increase shall be recognised in the surplus or deficit, to the extent that it reverses a revaluation decrease, of the same asset, previously recognised in the surplus or deficit.

If the carrying amount of an item of property, plant and equipment decreases, as the result of a revaluation, the decrease shall be recognised in the surplus or deficit. However, the decrease shall be recognised in the asset revaluation reserve, within other comprehensive income, to the extent of any credit balance in the revaluation reserve, in relation to that asset.

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Notes to the Financial Statements

Revaluations of property, plant and equipment are accounted for on a class-of-asset basis.

In accordance with the Trust's Statement of Intent for the year to 30 June 2017, property, plant and equipment is revalued on a three yearly cycle, with the latest occurring as at 30 June 2017.

Additions

The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential, associated with the item, will flow to the Trust, and the cost of the item can be measured reliably. In most instances, an item of property, plant and equipment will be recognised at cost. Where an asset is acquired at no cost, or for a nominal cost, it will be recognised at fair value as at the acquisition date.

Disposals

Gains and losses on disposal are determined by comparing proceeds received, with the carrying amount of the asset. Gains and losses on disposal are included in the surplus or deficit. When revalued assets are sold, amounts included in the asset revaluation reserve, in relation to those assets, will be transferred to accumulated funds.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised if, and only if, it is probable that future economic benefits or service potential, associated with the item, will flow to the Trust, and the cost of the item can be measured reliably.

Impairment of property, plant and equipment

The carrying values of property, plant and equipment are reviewed annually for impairment, with reference to internal and external factors which may indicate the carrying value exceeds depreciated replacement cost. Any significant impairment is recognised by writing the assets down to their depreciated replacement cost and charging the impairment to the relevant revaluation reserve or to the surplus or deficit, where there is no revaluation reserve. If an asset's carrying value exceeds its recoverable amount, the asset is impaired, and the carrying amount is written down to the recoverable amount. In relation to revalued assets, the impairment loss is recognised against the revaluation reserve, for that asset class. Where that results in a debit balance, in the revaluation reserve, the balance is recognised in the surplus or deficit. In relation to assets that are not revalued, the total impairment is recognised in the surplus or deficit.

Depreciation and amortisation expense

Depreciation is provided on a straight-line basis, at rates that will write-off the cost or valuation of assets, to their estimated residual values, over their useful lives. The rates of depreciation are as follows: Buildings 1.25% to 6.67% per annum Furniture, fittings and equipment 6.67% to 15.00% per annum Office Equipment 15.00% to 30.00% per annum

The residual value and the useful life of an asset is reviewed, and adjusted if applicable, at the end of each financial year.

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Notes to the Financial Statements

Creditors and other payables

Creditors and accrued expenses are measured at the amount owed.

Income tax

The Trust has been granted Charitable Status by the IRD and therefore, is exempt from income tax.

Loans

Loans are recognised at the amount borrowed from the lender. Loan balances include any interest accrued at year- end that has not yet been paid.

Critical accounting estimates and assumptions

In preparing these financial statements, the Trust has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the actual results.

Estimates and assumptions are continually evaluated, and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the value of assets and liabilities, within the next financial year, are discussed below:

Property, plant and equipment useful lives and residual values: At each balance date, the Trust reviews the useful lives and residual values of its property, plant and equipment. To assess whether the useful lives and residual values are appropriate, the Trust considers a number of factors, such as, the physical condition of the asset, the expected period of use of the asset, and the expected disposal proceeds, from future sale of the asset.

An incorrect estimate of the useful life or residual value will impact on the depreciable amount of an asset and will therefore, impact depreciation expense in the statement of comprehensive income, and the carrying amount of the asset in the statement of financial position. The Trust minimises the risk of this uncertainty through physical inspection of assets. The Trust has not made significant changes to past assumptions, concerning useful lives and residual values.

Estimates and assumptions applied in determining the fair value of property, plant and equipment: The valuation was prepared in accordance with the appropriate Financial Reporting and Valuation standards and complies with the International Financial Reporting Standards with particular reference to PBE IPSAS 17.

The valuation was on the assumption that there were no changes to the market or property between the inspection date and date for financial reporting.

Optimised depreciated replacement cost was used to estimate 'fair value' of the Taranaki Stadium Trust land and buildings.

Asset lives have been determined after discussions with the New Plymouth District Council and Taranaki Regional Council staff and a review of the 10 year capital programme.

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Notes to the Financial Statements

1. Income

Actual $ Actual $ 2016/2017 2015/2016 Annual grant from the Taranaki Regional Council 876,000 876,000

Donated goods or services not recognised. During the year, the Trust received professional accounting and secretarial services from the Taranaki Regional Council at no charge.

2. Finance Expenses

Actual $ Actual $ 2016/2017 2015/2016 Interest - loans 59,138 61,889 Total finance expenses 59,138 61,889

3. Other Expenses

Actual $ Actual $ 2016/2017 2015/2016 Audit fees for financial statement audit 5,519 5,366 Bank charges 123 134 Charities commission 44 44 Insurance 57,271 54,537 Legal fees 975 - Loss on disposal of property, plant and equipment - 200,612 Stadium repairs and maintenance 281,275 236,887 Valuation fees 2,280 2,050 Total other expenses 347,487 499,630

4. Equity

Actual $ Actual $ 2016/2017 2015/2016 Accumulated funds Balance at 1 July 16,029,593 16,255,257 Surplus/(deficit) for the year (168,569) (307,843) Transfers from asset revaluation reserve on disposal - 82,179 Balance at 30 June 15,861,024 16,029,593

Asset revaluation reserve Balance at 1 July 9,584,400 9,666,579 Movement in the asset revaluation reserve 1,434,835 (82,179) Balance at 30 June 11,019,235 9,584,400

Total equity 26,880,259 25,613,993

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Notes to the Financial Statements

5. Cash and cash equivalents

Actual $ Actual $ 2016/2017 2015/2016 TSB Bank current account 464,822 256,476 TSB Bank on call account 106,746 183,766 Total cash and cash equivalents 571,568 440,242

The carrying value of cash and cash equivalents approximates their fair value.

6. Property, plant and equipment

Actual $ Actual $ 2016/2017 2015/2016 Land at valuation Carrying amount at 1 July 2,370,000 2,120,000 Additions - 250,000 Revaluation 750,000 - Carrying amount at 30 June 3,120,000 2,370,000

Furniture, fittings and equipment Cost at 30 June previous year 851,468 786,473 Accumulated depreciation (309,436) (275,366) Net book value previous year 542,032 511,107

Carrying amount at 1 July 542,032 511,107 Additions 45,180 64,995 Disposals - - Depreciation (38,403) (34,070) Carrying amount at 30 June 548,809 542,032

Buildings at valuation Cost at 30 June previous year 26,034,626 25,999,242 Accumulated depreciation (1,316,709) (716,947) Net book value previous year 24,717,917 25,282,295

Carrying amount at 1 July 24,717,917 25,282,295 Additions 1,355,540 235,996 Disposals - (200,612) Depreciation (604,494) (599,762) Revaluation 684,835 - Carrying amount at 30 June 26,153,798 24,717,917

Office equipment Cost at 30 June previous year 16,430 16,430 Accumulated depreciation (16,430) (16,430) Net book value previous year - -

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Notes to the Financial Statements

Actual $ Actual $ 2016/2017 2015/2016 Carrying amount at 1 July - - Additions - - Disposals - - Depreciation - - Carrying amount at 30 June - -

Total property, plant and equipment 29,822,607 27,629,949

As at 30 June 2017 Cost Accumulated Carrying Or Valuation Depreciation Amount Land at valuation 3,120,000 - 3,120,000 Furniture, fittings and equipment at cost 896,648 347,839 548,809 Buildings at valuation 6a. 27,126,691 6a. 972,893 26,153,798 Office equipment at cost 16,430 16,430 - Total property, plant and equipment 31,159,769 1,337,162 29,822,607

6a. Buildings revaluation reconciliation Actual $ Actual $ 2016/2017 2015/2016 Cost at 30 June previous year 26,034,626 25,999,242 Additions 1,355,540 235,996 Disposals - (200,612) Allocation of revaluation (263,475) - Buildings cost at 30 June 27,126,691 26,034,626

Accumulated depreciation at 30 June previous year (1,316,709) (716,947) Depreciation (604,494) (599,762) Allocation of revaluation 948,310 - Buildings accumulated depreciation at 30 June (972,893) (1,316,709)

Total buildings revaluation 684,835 -

TSB Bank holds a restriction over the title of the Trust's property by way of a registered first mortgage over the property at 6 Maratahu Street, New Plymouth. No plant and equipment is pledged as security for liabilities. The land and buildings were valued, as at 30 June 2017, by Ian Baker FNZIV, FPINZ, registered valuer, TelferYoung (Taranaki) Limited. Land and buildings were adjusted in the financial statements, for the year ending 30 June 2017, to reflect this revaluation. The land and buildings are valued based on the depreciated replacement cost approach using assumptions the valuer believed to be fair and reasonable at the date of valuation. The valuation was performed by TelferYoung (Taranaki) Limited. TelferYoung (Taranaki) Limited are a registered experienced valuer with extensive market knowledge in the types of land and buildings owned by the Taranaki Stadium Trust. The total fair value of the land and buildings valued at 30 June 2017 was $27,865,109.

Taranaki Stadium Trust: 2016/2017 Annual Report ~ Page 14 ~

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Notes to the Financial Statements

7. Debtors and other receivables

Actual $ Actual $ 2016/2017 2015/2016 TSB Bank interest accrual 946 61 GST receivable 168,464 22,478 Total debtors and other receivables 169,410 22,539

8. Creditors and other payables

Actual $ Actual $ 2016/2017 2015/2016 Audit fee accrual 5,519 5,366 Trade payables and accruals 1,897,544 513,108 GST payable - - Total creditors and other payables 1,903,063 518,474

Creditors and other payables are non-interest bearing and are normally settled on 30-day terms. Therefore the carrying values approximate their fair value.

9. Borrowings

Actual $ Actual $ 2016/2017 2015/2016 TSB Bank Liberty Revolving credit facility 1,780,263 1,960,263 Total borrowings 1,780,263 1,960,263

The TSB Bank Liberty Revolving credit facility has a draw down limit of $3,000,000 and is secured by way of a registered first mortgage over the property at 6 Maratahu Street, New Plymouth. Interest is incurred at a variable rate of 2.96% pa, being the 90 day mid Bank bill rate plus a 1.00% margin.

10. Reconciliation of net surplus/(deficit) to net cash from operating activities

Actual $ Actual $ 2016/2017 2015/2016 Surplus/(deficit) (168,569) (307,843) Add/(less) non-cash items: Depreciation and amortisation expense 642,897 633,832 Loss on disposal of property, plant and equipment - 200,612

Add/(less) movements in working capital items Creditors and other payables 159,860 96,346 Debtors and other receivables (885) 170 Goods and Services Taxation (145,986) (127) Net cash from operating activities 487,317 622,990

Taranaki Stadium Trust: 2016/2017 Annual Report ~ Page 15 ~

156 Executive, Audit & Risk Committee - Taranaki Stadium Trust: 2016/2017 Annual Report

11. Related parties

Related-party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and conditions no more or less favourable than those that it is reasonable to expect the Trust would have adopted in dealing with the party at arm’s length in the same circumstances.

The Taranaki Regional Council is deemed to be a related party of Taranaki Stadium Trust. There are no related party balances as at 30 June 2017.

The Trust owns Yarrow Stadium, but, the New Plymouth District Council manages and operates the Stadium, in accordance with a Management Agreement, between the two parties. In relation to the year ending 30 June 2017, no debts between the parties were written off or forgiven, and no transactions took place between the parties at nil or nominal value. The Trust does not have any employees. No Trustee fees were paid during the year.

12. Capital commitments

There are capital commitments for the Yarrow Stand Hospitality Project totalling $1,451,311 as at 30 June 2017 (2015/2016: nil).

13. Contingent liabilities

There are no contingent liabilities at 30 June 2017 (2015/2016: nil).

14. Contingent assets

There are no contingent assets at 30 June 2017 (2015/2016: nil).

15. Events after the balance sheet date

The Trust increased its debt facility to $5m in August 2017 (TSB Bank Liberty Revolving credit facility) to fund capital projects commenced in the 2016/2017 financial year and due to be completed in 2017/2018. (2016/2017—The Trust has no material events subsequent to balance date).

Taranaki Stadium Trust: 2016/2017 Annual Report ~ Page 16 ~

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Trust Directory

Taranaki Stadium Trust

Nature of business: Charitable Trust

Trustee: Michael Davey (from October 2016) Michael Nield Craig Williamson (till October 2016)

Trust Settlement Date: 23 December 1999

Address: C/- Taranaki Regional Council Private Bag 713 Stratford 47 Cloten Road Stratford

Bankers: TSB Bank New Plymouth

Solicitors Till Henderson Stratford

Auditors: Melissa Youngson Deloitte Limited on behalf of the Auditor-General

Taranaki Stadium Trust: 2016/2017 Annual Report ~ Page 17 ~

158 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Agenda Memorandum

Date 24 October 2017

Memorandum to Chairperson and Members Executive Committee

Subject: Regional Software Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Approved by: M J Nield, Director—Corporate Services

B G Chamberlain, Chief Executive

Document: 1949595

Purpose The purpose of this memorandum is to receive and consider Regional Software Holdings Ltd’s Annual Report for the year ended 30 June 2017 and the matters to be addressed at Regional Software Holdings Ltd’s Annual General Meeting (AGM).

Recommendations That the Taranaki Regional Council: 1. receives Regional Software Holdings Ltd’s Annual Report for the year ended 30 June 2017 2. appoints Mr Asbjorn Aakjaer as an independent director on the Board of Regional Software Holdings Ltd 3. notes that in relation to the Regional Software Holdings Ltd AGM that the shareholder’s representative (the Chief Executive) be authorised to adopt the Annual Report, set the Directors Remuneration (nil) and appoint the auditor (the Auditor-General).

Background Regional Software Holdings Ltd is a Council-Controlled Organisation of six regional councils (Northland, Waikato, Taranaki, Horizons, West Coast and Southland). The Council has a 15.5% shareholding in Regional Software Holdings Ltd.

Regional Software Holdings Ltd is responsible for maintaining and developing the IRIS (Integrated Regional Information System) software product. It is also charged with marketing the solution to other regional councils.

Attached is the 2016/2017 Annual Report for Regional Software Holdings Ltd (RSHL).

159 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Discussion RSHL is a major shared services undertaking by the Northland, Waikato, Taranaki, Horizons, West Coast and Southland regional councils. It is responsible for the long-term maintenance and development of the IRIS (Integrated Regional Information System) product as developed for and by the shareholding councils.

Over the last few years, the six regional councils have developed a leading edge software solution (IRIS) for the regional council specific functions undertaken by those councils. The development project has been a remarkable success with the project being delivered to specification and within budget.

The 2016/2017 year was a busy and productive period for RSHL and the six councils. The year involved continuing to drive council implementations and the subsequent operational benefits and efficiencies. There was considerable focus on the completion of the final two modules of work from the initial development suite. The delivery of the mobile and self- service applications has provided considerable additional benefits, efficiencies and cost- savings to both external customers of the councils and internal users.

RSHL’s Advisory Group spent considerable time and effort developing the work programme for 2016/2017 as well as the roadmap for the ongoing development and enhancement of IRIS. A technology roadmap for all the underlying components of the IRIS solution was completed, ensuring a sound understanding of the investment and activity required to keep the IRIS solution maintained and relevant from a technology perspective. RSHL has delivered on the roadmap for 2016/2017. RSHL is well placed and committed to keeping the IRIS offering up to date from a technical point of view and fit for purpose for all external and internal users.

In terms of software delivery across the 2016/17 year, there were four releases of new functionality delivering a total of 8 major enhancements (two of which were RSHL funded and 6 were directly funded by councils) along with 19 minor enhancements. The focus has increasingly been on mobile solutions, online services, mapping capabilities and ensuring that the underlying technology platform remains current and fit for purpose.

Financially, the company is in a sound position as planned. The IRIS assets have been recognized in the financial statements. RSHL.’s revenue comes from licence charges and fees from the shareholding councils. This funding is used for the maintenance and development of the IRIS product. Therefore, the company does not trade to make a profit. Rather, it charges to cover its planned level of expenditure. The continuing investment in the development and enhancement of IRIS ensures that the product maintains its value within the Company’s balance sheet.

RSHL faces a number of opportunities going forward. In particular the Company continues to look to grow the number of IRIS users in other regional councils. RSHL has worked with a number of other regional councils to attract them as either shareholders or customers. This year RSHL was invited to present a solution to Hawke’s Bay Regional Council (HBRC). HBRC were going to market for a solution for their core operating solutions. After considerable effort from many parties, notably our own regional council staff under the leadership of John Crane and Datacom staff, RSHL secured HBRC’s business. Consequently, HBRC was welcomed as a RSHL’s first customer only.

160 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

RSHL will continue to work with other regional councils to explore opportunities for them to become users of IRIS. RSHL is also starting to work with the regional council sector to establish how the company vehicle can be operationally and financially used for the betterment of the regional council community.

The Board committed significant effort into the strategic plans and strategies going forward. RSHL continues to refine the IRIS product and proposition and is committed to working closely with the remaining regional councils. Opportunities to attract new regional councils as shareholders or users will continue to arise and RSHL will actively pursue these opportunities, noting that no process is ever guaranteed success.

During the year, there were a number of changes of membership of the Board. Neil Selman joined from Environment Southland and Ged Shirley replaced Michael McCartney from Horizons Regional Council. Further, Carol Cottam assumed leadership of the Advisory Group.

The Board has identified the value that can be provided from the use of an independent director to supplement the current skills around the table. It has commenced the process of identifying and seeking the appointment of an independent director. The attached letter from RSHL outlines the process undertaken and recommends the appointment of Mr Asbjorn Aakjaer as an independent director on the Board.

An unmodified audit opinion was issued by Regional Software Holdings Ltd’s auditor (Audit New Zealand on behalf of the Auditor-General).

The Agenda for the RSHL AGM includes the adoption of the Annual Report, the appointment of the auditor (the Auditor-General by law), the setting of director’s fees (nil by the Shareholder’s Agreement).

Policy considerations This memorandum and the associated recommendations are consistent with the policy documents and positions adopted by this Council under various legislative frameworks

161 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

including, but not restricted to, the Local Government Act 2002, the Resource Management Act 1991 and the Biosecurity Act 1993.

Legal considerations This memorandum and the associated recommendations comply with the appropriate statutory requirements imposed upon the Council.

Attachment Document 1930267: Regional Software Holdings Ltd’s 2015/2016 Annual Report and Audit Opinion. Document 1941665: Letter from Regional Software Holdings Ltd recommending the appointment of Mr Asbjorn Aakjaer as an independent director on the Board.

162 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Regional Software Holdings Limited Annual Report Including Financial Statements

For the Year Ended 30 June 2017

163 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Regional Software Holdings Limited For the Year Ended 30 June 2017

CONTENTS

Page Entity Information 1

Directors' Report 2

Statement of Compliance & Responsibility 5

Statement of Financial Performance 6

Statement of Financial Position 7

Statement of Cash Flows 8

Statement of Accounting Policies 9

Notes to the Financial Statements 12

Statement of Intent & Performance Targets 18

Auditors' Report 20

164 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Regional Software Holdings Limited Entity Information for the Year Ended 30 June 2017

Legal Name Regional Software Holdings Limited (RSHL)

Type of Entity and Legal Basis RSHL is a Limited Liability Company incorporated and registered under the Companies Act 1993 and is a council-controlled organisation as defined in section 6 of the Local Government Act 2002.

The Company’s purpose or mission The primary objective is to provide a framework for collaboration between the shareholders. It supports the procurement or development of shared software resource products and services in a manner that provides a more cost effective alternative than individual councils can achieve on their own.

Structure of the Company The Company comprises of a Board of six directors. The Board oversee the governance of RSHL. In addition there is a general manager who is responsible for the day-to-day operations of RSHL and reporting to the Board. Each Shareholder is entitled to separately appoint one director each.

Main sources of RSHL’s cash and resources Funds are received by way of levies from each Council. These levies are set annually in the Statement of Intent. These are the primary source of funding to RSHL.

Outputs Outputs are described in the statement of performance and reported upon as part of the Annual Report.

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165 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Regional Software Holdings Limited Directors’ Report For the Year Ended 30 June 2017

RSHL’s Director’s Report On behalf of Regional Software Holdings Ltd (RSHL), and the six regional council shareholders, it is our pleasure to present the Company’s 2016/2017 Annual Report.

RSHL is a major shared services undertaking by the Northland, Waikato, Taranaki, Horizons, West Coast and Southland regional councils. It is responsible for the long-term maintenance and development of the Integrated Regional Information System (IRIS) product as developed for and by the shareholding councils. Over the last few years, the six regional councils have developed a leading edge software solution (IRIS) for the regional council specific functions undertaken by those councils. The development project has been a remarkable success with the project being delivered to specification and within budget.

The 2016/2017 year was a busy and productive period for RSHL and the six councils. The year involved continuing to drive council implementations and the subsequent operational benefits and efficiencies. There was considerable focus on the completion of the final two modules of work from the initial development suite. The delivery of the mobile and self-service applications have provided considerable additional benefits, efficiencies and cost-savings to both external customers of the councils and internal users.

RSHL’s Advisory Group spent considerable time and effort developing the work programme for 2016/2017 as well as the roadmap for the ongoing development and enhancement of IRIS. A technology roadmap for all the underlying components of the IRIS solution was completed, ensuring that we have a sound understanding of the investment and activity required to keep the IRIS solution maintained and relevant from a technology perspective. RSHL has delivered on the roadmap for 2016/2017. RSHL is well placed and committed to keeping the IRIS offering up to date from a technical point of view and fit for purpose for all external and internal users.

In terms of software delivery across the 2016/17 year, there were four releases of new functionality delivering a total of 8 major enhancements (two of which were RSHL funded and 6 were directly funded by councils) along with 19 minor enhancements. The focus has increasingly been on mobile solutions, online services, mapping capabilities and ensuring that our underlying technology platform remains current and fit for purpose.

166 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

business. Consequently, we welcome HBRC as a RSHL’s first customer only, and look forward to their successful IRIS implementation and to their contribution to the achievements of the Company moving forward.

The success of IRIS and RSHL is due to the collaborative approach of the six regional councils. The success and richness of the IRIS product is a reflection of the contribution, expertise, and commitment of a team of well over 100 people from all the shareholding councils, in a variety of roles. It is a pleasure to record our appreciation to all involved. During the year, we had a number of changes of membership of the Board. Neil Selman joined from Environment Southland and Ged Shirley replaced Michael McCartney from Horizons Regional Council. Further, Carol Cottam assumed leadership of the Advisory Group. We thank all current and past Directors and Staff for their contributions.

The Board has identified the value that can be provided from the use of an independent director to supplement the current skills around the table. It has commenced the process of identifying and seeking the appointment of an independent director. This process is expected to be completed early in the 2017/2018 year.

The outlook for RSHL and the IRIS product is bright and there are significant opportunities to support the activities and achievements of New Zealand regional councils.

Financial Statements The financial statements required by section 67 of the Local Government Act 2002 (LGA(2002)), together with the audit report required by section 69 of the LGA(2002), are attached.

Registered Office C/o Horizons Regional Council 11-15 Victoria Avenue Palmerston North

Auditors Audit New Zealand on behalf of the Controller and Auditor General.

3 RSHL Annual Report 2017

167 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Directors The following directors were in office at the end of the year:

2016-17 2015-16 Remuneration Benefits Remuneration Benefits

MD Garrett - - - - LJ Gibbs - - MC Nicolson - - - - MJ Nield - - - - GA Alsweiler (Resigned 30/6/2016) - - - - NC Selman (Replaced GA Alswiler 6/2/2017) - - - - MJ McCartney (Resigned 18/5/2017) - - - - GP Shirley (Replaced MJ McCartney 18/5/2017) ------Total Remuneration - - - -

Interest Register

All Directors listed their interests in the register on being appointed to the company. The following interests were registered:

Director Organisation Interest MD Garrett G & G Properties (2008) Limited Director & Shareholder Golden Cross Trust Trustee Newmont Waihi Gold Water Rights Trust Trustee

MC Nicolson Hawk Hill Estates Limited Director The Masters Group Holdings Limited Director

MJ Nield Taranaki Stadium Trust Trustee

4 RSHL Annual Report 2017

168 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Statement of Compliance The Board of Directors hereby confirm that all statutory requirements in relation to the annual report, as outlines in the Local Government Act 2002, have been complied with.

Statement of Responsibility In terms of the Local Government Act 2002 and the Companies Act 1993, the Board of Directors is responsible for the preparation of Regional Software Holdings Limited's financial statements and to assist the company meet its objectives and any other requirements in its Statement of Intent (SOI).

The Board of Directors of Regional Software Holdings Limited has the responsibility for establishing, and has established, a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting.

In the Board of Director’s opinion, these financial statements fairly reflect the financial position and operations of Regional Software Holdings Limited for the year ended 30 June 2017.

Signed on behalf of the Board of Directors:

MJ Nield – Chairman Ged Shirley - Director Date: 8 September 2017 Date: 8 September 2017

5 RSHL Annual Report 2017

169 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Regional Software Holdings Limited Statement of Financial Performance For the Year Ended 30 June 2017

Actual Budget Actual Note 2016-17 2016-17 2015-16

Income

Members Contributions 1 1,047,581 1,095,666 1,034,627 Interest Income 571 2,806 Other Income 2 77,648 59,483 57,750 Total Income 1,125,800 1,155,149 1,095,183

Expenses Administration Costs 3 34,000 73,963 28,437 Audit Fees 5,189 5,220 5,094 DATACOM Support Services 260,720 202,612 172,961 Environmental Charges 10,297 7,581 9,280 Implementation Costs 19,898 - Management Fees 121,102 120,965 141,574 External Contractors and Consultants - - 51,671 External Director Fees - 30,000 Other Direct Software Expenses 57,750 59,483 57,750 - Depreciation 7 688,589 655,325 625,532 Total Expenses 1,197,545 1,155,149 1,092,299

Surplus/(Deficit) Before Tax (71,745) - 2,884

Income Tax Expense 4 - - -

Surplus/(Deficit) After Tax (71,745) - 2,884

Explanations of major variances against budget are provided in note 14 The accompanying notes form part of these financial statements

6 RSHL Annual Report 2017

170 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Regional Software Holdings Limited Statement of Financial Position As at 30 June 2017

Actual Budget Actual Note 2016-17 2016-17 2015-16 Assets

Current Assets Bank Accounts and Cash 5 353,075 172,266 196,758 Debtors and Prepayments 6 22,882 - - GST Receivable 6,547 - 45,663 Withholding Tax Paid 186 - 888 Total Current Assets 382,690 172,266 243,309

Non Current Assets Property, Plant and Equipment 7 5,102,358 5,204,217 5,284,399 Total Non Current Assets 5,102,358 5,204,217 5,284,399

Total Assets 5,485,048 5,376,483 5,584,399

Liabilities

Current Liabilities Creditors and Accrued Expenses 177,426 - 148,341 GST Payable - - - Total Current Liabilities 8 177,426 - 148,341

Total Liabilities 177,426 - 148,341

Net Assets 9 5,307,622 5,376,483 5,379,367

Represented By:

Equity Equity 9 5,149,150 5,149,150 5,149,150 Retained Earnings 9 158,472 227,333 230,217 Total Equity 5,307,622 5,376,483 5,379,367

Explanations of major variances against budget are provided in note 14 The accompanying notes form part of these financial statements

7 RSHL Annual Report 2017

171 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Regional Software Holdings Limited Statement of Cashflows for the year Ended 30 June 2017

Actual Budget Actual Note 2015-16 2016-17 2015-16 Cashflows from Operating Activities Cash was provided from: Receipts from Customers 1,047,581 1,093,366 1,114,368

Interest 571 2,300 2,011

Other Income 57,750 59,483 53,625 Tax Refunds Received 848 - 514 Total Operating Receipts 1,106,751 1,155,148 1,170,518

Cash was applied to: Payments to Suppliers 417,963 499,824 459,042 Net GST Movement (40,608) 66,567 Total Operating Payments 377,355 499,824 525,609

Net cash from operating 729,396 655,324 644,909

Cashflow from Investing Activities Cash was applied to: Purchase of Fixed/Intangible Assets 573,080 675,305 889,229 Term deposits - - Total Investment Payments 573,080 675,305 889,229

Net cash from investing (573,080) (675,305) (889,229)

Cashf low from Financing Activities Cash was provided from: Capital raised - Total Financing Receipts - -

Cash was applied to: Dividends - - Total Financing Payments - -

Net cash from financing - -

Net increase (decrease) in cashflow for the year 156,316 (19,980) (244,320)

Opening Cash Balance 196,759 192,246 441,078

Closing Cash Balance 353,075 172,265 196,758

Made up of: Westpac Current Account 68,290 25,000 160,555 Westpac Online Saver Account 284,785 147,266 36,203 353,075 172,265 196,758 The GST (net) component of cash flows from operating activities reflects the net GST paid to and received from the Inland Revenue Departments. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes and to be consistent. Explanations of major variances against budget are provided in note 14 The accompanying notes form part of these financial statements

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172 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Regional Software Holdings Limited Notes to the Financial Statements For the Year Ended 30 June 2017

STATEMENT OF ACCOUNTING POLICIES

Reporting Entity Regional Software Holdings Limited (RSHL) is a Council Controlled Organisation (CCO), owned by Waikato Regional Council (32.75%) Northland Regional Council (16.75%) Horizons Regional Council (15.50%) Taranaki Regional Council (15.50%) Southland Regional Council (15.50%) and West Coast Regional Council (4.00%.) RSHL was incorporated on 17 October 2012. RSHL was primarily incorporated for the purposes of managing the investment and development of IRIS Software, and has designated itself a Public Benefit Entity (PBE), in keeping with the designation of the shareholders.

The financial statements are those of RSHL, for the 12 months ended 30 June 2017, and were authorised for issue by the Board of Directors on 8 September 2017.

Public Benefit Entity Simple Format Reporting RSHL qualifies for Public Benefit Simple Format Reporting – Accrual (PBE-SFR-A) on the basis that the Company does not have publically accountable (as defined) and has total annual expenses of less than $2 million.

Basis of Preparation of the Financial Statements The financial statements have been prepared on the going concern basis, and the accounting policies have been applied consistently throughout the period. The financial statements have been prepared on a historical cost basis.

Statement of Compliance The financial statements of RSHL have been prepared in accordance with the requirements of the Local Government Act 2002 and the Companies Act 1993, which include the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZGAAP).

The financial statements have been prepared in accordance with Tier 3 Public Benefit Entity (PBE) Standards.

Presentation Currency and Rounding The financial statements have been prepared in New Zealand dollars and there will be rounding in the numbers in the financial statements, as the financial model used calculates to the cent but the annual report is rounded to the nearest dollar.

The functional currency of RSHL is New Zealand dollars.

Changes in Accounting Policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements. 9 RSHL Annual Report 2017

173 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Summary of Significant Accounting Policies

Revenue Revenue is measured at the fair value of consideration received or receivable.

Members Contributions and Other forms of Revenue (excluding investment revenue), including fees, charges, and other revenues are recognised on an accrual basis.

Interest revenue is recorded as it is earned.

Expenditure Expenditure is recognised on an accrual basis when the service was provided, or the goods received. Costs associated with maintaining the IRIS software suite are recognised as an expense when incurred.

Bank Accounts and Cash Cash and cash equivalents includes include cash on hand, on demand or call deposits, other short- term deposits with original maturities of three months or less, and bank overdrafts.

Debtors Debtors are initially recorded at the amount owed. When it is likely the amount owed (or some portion) will not be collected, a provision for impairment is recognised and the loss is recorded as a bad debt expense.

Goods and Services Tax (GST) RSHL is registered for GST; these financial statements are presented net of GST, except for receivables and payables which are inclusive of GST.

Commitments and contingencies are disclosed exclusive of GST.

Income Tax Income tax expenses calculated using the taxes payable method. As a result no allowance is made for deferred tax. Tax expense includes the current tax liability and adjustments to prior year tax liabilities.

Creditors and Accrued Expenses Creditors and accrued expenses are measured at the amount owed.

Property, Plant and Equipment Software acquisition and development Costs that are directly associated with the development of the IRIS software suite are recognised as property, plant and equipment.

Depreciation

Depreciation begins when the asset is available for use and ceases at the date that the asset is derecognised. The depreciation charge for each period is recognised through the Statement of Financial Performance.

The carrying value is depreciated on a straight-line basis over its useful life. The useful life and associated depreciation rate for the IRIS software suite is 10 years and 10%.

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174 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Where software in this category is replaced, upgraded or determined by RSHL to be of no further operational benefit, a change in value will be recognised through the Statement of Financial Performance. This change in value will be the difference between the carrying value of the original item and its fair value.

Critical Accounting Estimates and Assumptions In preparing these financial statements, RSHL has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. Additional Disclosure

The Companies Act 1993 requires disclosure of the amount of donations, audit fees, fees for other services from the auditor, and the number of employees of the company who received remuneration and other benefits above $100,000 per annum, in brackets of $10,000. For this financial year, no staff were employed by RSHL. The audit fee for the period is expected to be $5,189 (GST exclusive) paid to Audit New Zealand.

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175 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Notes to the Financial Statements for the Year Ended 30 June 2017 1. Members Contributions

Statement of Intent set the member contributions to be $1,095,666 (3% increase on the previous year). The Financial performance target set the Annual charges increase not to exceed CPI (2016/17 1.3%).

The board decided that member contributions be charged at only the CPI increase on the 15/16 figures which equated to only 1.3%.

2. Other Income

2016-17 2015-16 Recovery of other direct software expenses 57,750 57,750 Hawkes Bay Regional Council Reimbursements 19,898 Total Other Income 77,648 57,750

3. Administration Costs

2016-17 2015-16 Administration Support 25,777 20,936 Accounting & Technical Support 6,314 Insurance 1,785 1,780 Consultants and Technical Support 5,683 Bank Fees 124 38 Total Administration Support 34,000 28,437

4. Income Tax

2016-17 2015-16 Current Tax - - Adjustments to current tax in prior years Income Tax Expense - -

Relationship between income tax expense and accounting surplus/(deficit) Net surplus/(deficit) before tax (71,745) 2,884 Tax at 28% (20,089) 807 Plus/(Less) tax effects of: Temporary differences (17,361) (168,421) Non-deductible expenses - Tax losses not recognised (37,450) (167,613) Income Tax Expense - -

Unused tax losses of $3,805,247 (2016; $3,671,498) are available to carry forward and offset against future taxable income.

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176 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

5. Bank Accounts and Cash

2016-17 2015-16 Current Account 68,290 160,555 Savings Account 284,785 36,203 Total Bank Accounts and Cash 353,075 196,758

6. Debtors and Prepayments 2016-17 2015-16 Debtors 22,882 - Prepayments - - Total Debtors & Prepayments 22,882 -

7. Property, Plant and Equipment

IRIS Software Intellectual Property Carrying amount as of 01 July 2015 5,077,552 Additions 429,277 Work in Progress 403,102 Disposals (net of accumulated depreciation) - Depreciation Expense (625,532) Carrying Amount as of 30 June 2016 5,284,399

Carrying amount as of 01 July 2016 5,284,399 Additions 183,604 Work in Progress 403,387 Disposals (net of accumulated depreciation) - Depreciation Expense (688,589) Work in Progress written off/impaired (85,641) Carrying Amount as of 30 June 2017 5,097,160 At balance date the work in progress value of the IRIS Asset is $430,251 (2016: $339,633) with $290,598 capitalised during the year.

E-learning Software Additions - Work in Progress 5,198 Carrying Amount as of 30 June 2018 5,198

Total Asset Carrying Amount as of 30 June 2017 5,102,358

8. Creditors and Accrued Expenses

2016-17 2015-16 C reditors 172,237 143,247 Accrued Expense - Audit New Zealand 5,189 5,094 Total Creditors and Accrued Expenses 177,426 148,341 13 RSHL Annual Report 2017

177 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

9. Equity

Contributed Capital 2016-17 2015-16 Balance at 01 July 5,149,150 5,149,150 Capital Contribution - - Balance at 30 June 5,149,150 5,149,150

Accumulated Surpluses 2016-17 2015-16 Balance at 01 July 230,217 227,334 Surplus/(Deficit) for the year (71,745) 2,884 Balance at 30 June 158,472 230,217 Total Equity 5,307,622 5,379,367

There are 10,000 shares which have been fully called to the value of $515.00. Share capital is currently $5,149,150.

.10. Commitments There are the following commitments at balance date (previous year: NIL).

Balance Major Enhancement Commitments – Datacom Committed

MAJ028 – Integration Strategy 7,097 MAJ029 – Upgrade to SQL 2016 35,990 MAJ030 – Mobile Capture – Management Sites 4,640 MAJ031- Mobile Capture – Enforcements, Infringements 8,000 MAJ035 – Data Migration Update 31,902 Total Commitments 87,629

Balance Committed Minor Enhancement Commitments – Datacom

User stories / Preliminary Analysis 1,230 MIN045 – Address for Service Regime 90 MIN050 – Warning or Esc if workflow runs longer 150 MIN058 – Ability to show contact details have been verified 690 MIN061 – Automatic creation of mobile inspections configurable 2,880 MIN062 – Improve efficiency of entry of enforcements 1,290 MIN065 – Single mobile inspection for Regime with activity with multiple auths 300 MIN067 – New Management Site Types 5,610 MIN068 – Contact address billing flag indicator 30 MIN069 – Stylesheet update – council trialled changes 2,190 Total Commitments 14,460

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178 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

11. Contingencies There are no contingent liabilities at balance date and no contingent assets at balance date, (previous year: Nil).

12. Related Party Transactions Related party transaction disclosures have not been made for transactions with related parties that are within a normal supplier/client or client/recipient relationship on terms and conditions no more or less favourable than those that it is reasonable to expect RSHL would have adopted in dealing with the party at arms length in the same circumstances.

Related Party Transactions Significant to RSHL Requiring Disclosure:

Shareholder Share 2016/17 2015/16 Description of services (Incl GST) (Incl GST) Waikato Regional Council 32.75% 142,609 156,701 Management Services Horizons Regional Council 15.50% 28,662 23,041 Administration Services Taranaki Regional Council 15.50% 1,403 Nil IRIS Implementation Services Waikato Regional Council 32.55% 9,929 Nil IRIS Implementation Services Northland Regional Council 16.75% 11,550 Nil IRIS Implementation Services

Total services purchased for IRIS implementation of $22,882 (Incl GST) were on-charged to Hawkes Bay Regional Council (non related party).

13. Events After Balance Date There are no significant events after balance date.

14. Explanations on Major Variances Explanations for major variances from RSHL’s budgeted figures in the 30 June 2017 Statement of Intent are as follows:

Statement of Financial Actual Budget Variance % Performance Members contributions were reduced to fit within the CPI Members 1,047,581 1,095,666 (48,085) (4%) price increase measure of 1.03%, Contributions this resulted in lower revenue than the 3% budget increase. Budget does not factor in Other Income being members purchasing software from an external Company at a group Other Income 77,648 59,483 18,165 30% rate $57,750 or the new Hawkes Bay Regional Council Implementation project $19,898. (Both are increased revenue vs. increased costs offset).

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179 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

The administrative services costs Administration associated with the service 34,000 73,962 (58,560) (54%) Costs provided by Horizons were lower than budgeted. Minor variance between Audit and Other 5,189 5,220 (31) (1%) estimated charge and agreed Fees charge. Reflects impact of the WIP DATACOM 260,720 202,612 58,108 29% written off during year on top of Support Services the usual SLA work. Budget does not reflect the Environmental 10,297 7,581 2716 36% standard monthly charge being Charges incurred. Management 121,102 120,965 137 0% Fees New business with the introduction of Hawkes Bay Implementation Regional Council as a customer, 19,898 0 19,898 costs resulted in unbudgeted costs, entirely offset by reimbursement in other revenue.

Independent Director is yet to be appointed, 0 30,000 (30,000) Director recruitment is underway.

Other Direct Budget incorrectly assumed Software 57,750 59,483 (1,733) 3% inflation increase which did not Expenses occur with this contract. Higher capitalisation occurred Depreciation 688,589 655,325 33,264 5% during the year than was expected.

Statement of Financial Position

Bank Accounts Opening cash balance 353,075 172,266 180,809 and Cash commenced higher than budget.

GST Receivables 5,767 - 5,767

Reflects the impact of $85,641 of capital work in progress costs being impaired as the future economic benefits associated Property, Plant 5,102,358 5,204,217 (101,859) 1% with them would not flow to and Equipment RSHL , combined with the lower operational budget being used due to the lower Member contribution Revenue.

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180 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Statement of Cash

Flow lower members contributions being charged offset entirely by Total Operating 1,106,71 1,155,148 48,438 unbudgeted members Receipts 0 repayments as noted in Other Income. Operational spend reduced to bring costs inline with the Total Operating reduced Members Contributions 377,314 499,823 (122,509) Payments due to the CPI at 1.3% not 3% combined with timing of end of year payments and GST. Committed costs for 2016/17 exist and are unspent combined Total Investment with the reduction in the 573,080 675,305 (102,225) Payments budgeted spend to reflect the lower CPI increase as noted in Member Contributions.

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181 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

14. Statement of Performance Targets for 2016-17

Performance Level of Achievement Comment target Non-Financial 2016-17 2015-16 IRIS Advisory Achieved Achieved The Advisory Group (AG) met every month by video Groups meets conference. Three in-person meetings were also held regularly & is across the year. effective (Self- The AG has continued to operate in an effective and assessed by the constructive manner throughout the year. Advisory Group, compared to expectations in the Terms of Reference for the Advisory Group) A robust and Achieved New The major enhancements roadmap for 2016/17 was consistent measure developed and approved by the Advisory Group. process operates to RSHL commissioned Datacom to develop Mobile develop, Roadmap and Integration Strategy which, along with approve, the Application Infrastructure Strategy will inform communicate future development in these areas. and refine the annual roadmap for RSHL major enhancement projects. Major Achieved New There were eight major enhancement projects on the Enhancement measure annual road map for 2016/17. Four of these were projects completed within budget and as scheduled during identified on the 2016/17 and the remaining four projects are in Annual progress and due to be completed as scheduled on the Roadmap are annual road map in 2017/18. completed on time and within budget. Budgets and Achieved New The minor enhancements and support budgets were processes for measure fully consumed. support and minor enhancements are effectively managed. (Assessed by the Advisory Group)

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182 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Performance Level of Achievement Comment target User (non-IT) Not New Users continue to collaborate and participate in RSHL participation in Achieved measure through the User Groups, but participation in formal RSHL RSHL groups has not expanded. management and development processes is increased. (Measured by membership of formal RSHL groups Reporting and Partially Not The reporting and payments timetable has largely been Payments Achieved achieved met, with the exception of the revised Business Plan (Section 9.3 of which did not pass through a formal approval process Business Plan) within the timeframe set out in the reporting timetable. are completed on time. Consider a new Achieved Achieved Business Intelligence and Customer Portal are being service area or planned to compliment the current functionality of IRIS. areas outside of RSHL is also proposing to take a role as a ‘vehicle’ for the current delivering wider regional council information and scope of IRIS1 software solutions beyond IRIS and beyond the current shareholder and customer base of RSHL. Financial 2016-17 2015-16 RSHL will Achieved New Expenditure against the available funding has been operate within measure closely monitored throughout the year and has tracked 5% (plus or close to budget overall. The areas of increased minus) of its expenditure, such as Depreciation were offset by under budget. spends in other areas. See Note 13 for further details. Annual charges: Achieved Not The annual charges were increased by 3% for the increase in cost achieved 2015/16 year in the SOI. This exceeds the current CPI, to councils not therefore the Annual charges to the Councils was to exceed the decreased to the CPI at 1.3% CPI. Growth 2016-17 2015-16 Respond to Achieved In RSHL responded to an RFP issued by Hawke’s Bay requests from progress Regional Council (HBRC), and as a result HBRC has Councils with signed up to implement IRIS as a customer of RSHL. the intent of HBRC is due to go live with IRIS during 2018. adding one further Council to IRIS as a shareholder or customer by end of 2018

1 Consider does not mean commit to do, but to identify & evaluate one or more opportunities 19 RSHL Annual Report 2017

183 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

The Auditor-General is the auditor of the Regional Software Holdings Limited (the company). The Auditor-General has appointed me, Clint Ramoo, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and performance information of the company on his behalf. Opinion

We have audited:

 the financial statements of the company on pages 6 to 17, that comprise the statement of financial position as at 30 June 2017, the statement of financial performance, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and

 the performance information of the company on pages 18 to 19.

In our opinion:

 the financial statements of the company on pages 6 to 8:

 present fairly, in all material respects:

 its financial position as at 30 June 2017; and

 its financial performance and cash flows for the year then ended; and

 comply with generally accepted accounting practice in New Zealand in accordance with the Public Benefit Entity Simple Format Reporting – Accrual (Public Sector) Standard.

 the performance information of the company on pages 18 to 19 presents fairly, in all material respects, the company’s actual performance compared against the performance targets and other measures by which performance was judged in relation to the company’s objectives for the year ended 30 June 2017.

Our audit was completed on 8 September 2017. This is the date at which our opinion is expressed.

The basis for our opinion is explained below. In addition, we outline the responsibilities of the Board of Directors and our responsibilities relating to the financial statements and the

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184 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

performance information, we comment on other information, and we explain our independence. Basis for opinion

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of the Board of Directors for the financial statements and the performance information

The Board of Directors is responsible on behalf of the company for preparing financial statements that are fairly presented and that comply with generally accepted accounting practice in New Zealand. The Board of Directors is also responsible for preparing the performance information for the company.

The Board of Directors is responsible for such internal control as it determines is necessary to enable it to prepare financial statements and performance information that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements and the performance information, the Board of Directors is responsible on behalf of the company for assessing the company’s ability to continue as a going concern. The Board of Directors is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Board of Directors intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors’ responsibilities arise from the Local Government Act 2002. Responsibilities of the auditor for the audit of the financial statements and the performance information

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of Shareholders, taken on the basis of these financial statements and the performance information.

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185 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

For the budget information reported in the financial statements and the performance information, our procedures were limited to checking that the information agreed to the company’s statement of intent.

We did not evaluate the security and controls over the electronic publication of the financial statements and the performance information.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

 We identify and assess the risks of material misstatement of the financial statements and the performance information, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

 We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

 We evaluate the appropriateness of the reported performance information within the company’s framework for reporting its performance.

 We conclude on the appropriateness of the use of the going concern basis of accounting by the Board of Directors and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor’s report to the related disclosures in the financial statements and the performance information or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

 We evaluate the overall presentation, structure and content of the financial statements and the performance information, including the disclosures, and whether the financial statements and the performance information represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Our responsibilities arise from the Public Audit Act 2001.

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186 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Other Information

The Board of Directors is responsible for the other information. The other information comprises the information included on pages 1 to 4, but does not include the financial statements and the performance information, and our auditor’s report thereon.

Our opinion on the financial statements and the performance information does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

We are independent of the company in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1(Revised): Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

Other than the audit, we have no relationship with, or interests in, the company.

Clint Ramoo Audit New Zealand On behalf of the Auditor-General Palmerston North, New Zealand

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187 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

2 October 2017 Regional Software Holdings Limited Document: 1941665 C/- Horizons Regional Council Private Bag 11025 Manawatu Mail Centre Palmerston North 4442 Mr Basil Chamberlain Chief Executive Taranaki Regional Council Private Bag 713 Stratford 4352

Dear Basil

Regional Software Holdings Limited: Independent Director

The Board of Regional Software Holdings Ltd (RSHL) is recommending the appointment of Mr Asbjorn Aakjaer as an independent director for a term of three years at a pro-rated fee of $30,000 for 2017/2018. This appointment will be effective from the 30 November 2017 annual general meeting.

Last year the Board indicated that it was seeking additional skills and experience around the Board table. In particular, the Board noted a relative lack of skills and experience in sales and marketing and in managing technology lifecycles. As RSHL is committed to continuing to grow its customer base and is committed to maintaining the on-going maintenance and development of the IRIS product, these skill sets are important to RSHL’s ongoing success. To attend to this, RSHL included the intention for, and budget for, an independent director in the 2017/2018 statement of intent.

The Board used the Institute of Directors (IoD) Director Search programme to identify a suitable candidate. The IoD prepared a long-list of candidates of which, four were short- listed and interviewed. An interview panel (Malcolm Nicholson – Northland Regional Council, Mike Garrett - Waikato Regional Council and Mike Nield Taranaki Regional Council) was appointed by the Board. After the interview process, and following reference checking, the preferred candidate was identified and referred back to the full Board. The Board is recommending this appointment for your support.

Mr Asbjorn Aakjaer has excellent skills and experience in technology/application development and management together with related sales and marketing expertise – refer to the attached short-form CV. After a successful professional management career, Asbjorn is looking to make a career transition into more of a governance role. This is an ideal first significant governance step.

The Board also used the IoD’s Director Rem Snapshot service to establish a market rate for Director’s fees for this position. The average median quartile fee for directors of Boards that have similar characteristics as RSHL is $29,424. The Board budgeted $30,000 for 2017/2018.

188 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

Accordingly, it is recommended that the annual fee be set at $30,000 for 2017/2018. This will be pro-rated for the passage of time. Director’s fees are reviewed annually as part of the annual general meeting process.

The Board wishes to welcome Mr Aakjaer from the 30 November 2017 annual general meeting. Accordingly, it seeks your Council’s support by making an appropriate appointment decision/resolution by 30 November 2017.

I look forward to hearing from your Council. Please do not hesitate to contact me if you need any further information.

Yours faithfully

M J Nield Chairman

189 Executive, Audit & Risk Committee - Regional Sofware Holdings Ltd Annual General Meeting and Annual Report for the year ended 30 June 2017

190 Executive, Audit & Risk Committee - Public Excluded

Executive, Audit & Risk Committee Public Excluded

In accordance with section 48(1) of the Local Government Official Information and Meetings Act 1987, resolves that the public is excluded from the following part of the proceedings of the Executive, Audit and Risk Committee Meeting on Tuesday 24 October 2017 for the following reason/s:

Item 11- Confirmation of Confidential Minutes

Item 12- 2016/2017 Annual Report and Audit

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information where the withholding of the information is necessary to be likely unreasonably to prejudice the commercial position of th person who supplied or who is the subject of the information.

Item 13 - Debt Recovery

That good reason exists for excluding the public from the whole or any part of the proceedings as the public disclosure of the information would be likely to prejudice the maintenance of the law, including the prevention, investigation, and detection of offences and the right to a fair trial.

191 Agenda reports

Executive, Audit and Risk Committee, October 2017

Item 5

Lower Waitara Flood Control Scheme Asset Management Plan (970 KB)

Lower Waiwhakaiho Flood Control Scheme Asset Management Plan (880 KB)

Okato Scheme Asset Management Plan (1 MB)

Item 6

Hollard Gardens Asset Management Plan (720 KB)

Tūpare Asset Management Plan (670 KB)