Agenda of Audit and Risk Committee Meeting

Notice is given of an Audit and Risk Committee Meeting to be held on:

Date:	Tuesday, 8 October 2019
Time:	9.00am
Location:	Council Chambers Fairlie

AGENDA

Audit and Risk Committee Meeting

8 October 2019

Suzette van Aswegen

Chief Executive Officer

Audit and Risk Committee Membership:

James Leslie (Chair)

Russell Armstrong

Stuart Barwood

Chris Clarke

Paul Hannagan

Anne Munro

Mayor Graham Smith

Bruce Mincham

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The purpose of local government:

(1) The purpose of local government is—

(a) to enable democratic local decision-making and action by, and on behalf of, communities; and

(b) to meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

(2) In this Act, good-quality, in relation to local infrastructure, local public services, and performance of regulatory functions, means infrastructure, services, and performance that are—

(a) efficient; and

(b) effective; and

(Local Government Act 2002)

Audit and Risk Committee Meeting Agenda 8 October 2019

5 Reports

5.1 Minutes of Audit and Risk Committee Meeting - 27 August 2019

File Reference: NA

Author: March Crocker, Governance Advisor

Authoriser: Darren Brown, Information and Engagement Manager

Attachments: Nil

Recommendation

That the minutes of the Audit and Risk Committee Meeting held on Tuesday 27 August 2019 be received and adopted as a true and accurate record of the meeting.

Audit and Risk Committee Meeting Agenda 8 October 2019

5.2 Risk Managment Policy

File Reference: N/A

Author: Paul Numan, General Manager Corporate Services

Authoriser: Suzette van Aswegen, Chief Executive Officer

Attachments: 1. Appendix 1 - Risk Management Policy 2019-09-24 APPROVED ⇩

Purpose of Report

As part of implementing recommendations in the Audit New Zealand Report to Council on the Interim Audit Report to 30 June 2019 an updated Risk Management Policy has been developed. This was presented to Council and approved on 24 September 2019.

Staff Recommendations

1. That the report be received.

2. That the new Risk Policy be noted and that Council staff will now proceed to implement an aligned Risk Management Programme.

Background

The following policy has been reviewed and updated by the Executive Team and accepted by the Council at their 24 September Council meeting.

· Risk Management Policy

Policy Status

This policy has now been formally adopted by the Council.

Considerations

Risk Management Policy: The policy has been largely revised to better meet the wider requirements of a local authority to manage all types of risk and appetite for risk, across the Council. The policy and methodology is based on the Standards New Zealand AS/NZS ISO 31000: Risk Management – Principles and Guidelines.

The Policy also addresses the development of a risk assessment practice and a risk assessment scorecard as recommended by the Auditors in their Report to Council on the Interim Audit Report to 30 June 2019.

Conclusion

It is recommended that the Audit and Risk Committee notes the attached policy.

Suzette van Aswegen

Chief Executive Officer

Audit and Risk Committee Meeting Agenda 8 October 2019

5.3 Interim Audit Report on Mackenzie District - to 30 June 2019 - Audit New Zealand

File Reference: na

Author: Paul Numan, General Manager Corporate Services

Authoriser: Suzette van Aswegen, Chief Executive Officer

Attachments: 1. Interim Audit - final 13 August 2019 to Audit and Risk - Appendix 1 ⇩

Purpose of Report

To provide the Audit and Risk Committee with the findings of the Interim Audit undertaken by Audit New Zealand on the Mackenzie District Councils (MDC) control environment and systems of internal control.

Staff Recommendations

1. That the report be received.

2. That the Audit and Risk Committee note the findings and the management responses.

Background

Audit New Zealand performed an interim audit in May 2019 with a focus on understanding the control environment and highlighting improvements to the key financial and non-financial systems.

Following the Audit New Zealand on site visit, a report was presented to MDC for Management comment and this is now is now attached for Audit and Risk Committee information.

Considerations

The Interim Audit of MDC provides the Audit and Risk Committee with supporting information to meet their role on the governance and oversight of the effectiveness of the MDC internal control systems.

The Committee will note the recommendations for improvement; the status of the issues raised and the positive progress that has been made to improve the MDC systems of internal control.

Audit New Zealand will be on site from 30 September 2019 – for four weeks - to undertake their final audit of the Annual Report to 30 June 2019.

Conclusion

It is recommended that the Audit and Risk Committee receives and notes the attached report.

Suzette van Aswegen

Chief Executive Officer

Audit and Risk Committee Meeting Agenda 8 October 2019

6 Public Excluded

RESOLUTION TO EXCLUDE THE PUBLIC

Recommendation

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

6.1 - Minutes of Public Excluded Audit and Risk Committee Meeting - 27 August 2019

s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

6.2 - Draft Annual Report to 30 June 2019 - For the Mackenzie District Council

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)