AGENDA

Audit and Risk Committee

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vaughan Dennison (Chairperson)

Bruno Petrenas (Deputy Chairperson)

Grant Smith (The Mayor)

Brent Barrett

Jim Jefferies

Susan Baty

Lorna Johnson

Rachel Bowen

Duncan McCann

Adrian Broad

Karen Naylor

Gabrielle Bundy-Cooke

Aleisha Rutherford

Lew Findlay QSM

Tangi Utikere

Leonie Hapeta

 

 

 


 

 

 


PALMERSTON NORTH CITY COUNCIL

 

 

 

 

Audit and Risk Committee MEETING

 

28 November 2016

 

 

 

Order of Business

 

1.         Apologies

2.         Notification of Additional Items

Pursuant to Sections 46A(7) and 46A(7A) of the Local Government Official Information and Meetings Act 1987, to receive the Chairperson’s explanation that specified item(s), which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded, will be discussed.

Any additions in accordance with Section 46A(7) must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.

Any additions in accordance with Section 46A(7A) may be received or referred to a subsequent meeting for further discussion.  No resolution, decision or recommendation can be made in respect of a minor item.

3.         What is Internal Audit and Risk Management - An Overview                        Page 6

Presentation, dated 16 November 2016, by Vivian Watene.  

4.         Public Participation at Meetings                                                                       Page 8

Memorandum, dated 9 November 2016, from the Committee Administrator, Rachel Corser.

5.         Health and Safety - July - September 2016                                                     Page 12

Memorandum, dated 3 November 2016, from the Human Resources Manager, Wayne Wilson.

6.         Management Agreed Audit Corrective Actions - Timeline Missed              Page 18

Memorandum, dated 28 October 2016, from the Senior Internal Auditor, Vivian Watene.

7.         New Audit Review - Planning Services Revenue Process                              Page 24

Memorandum, dated 1 November 2016, from the Senior Internal Auditor, Vivian Watene.

8.         Audit New Zealand Report to Council for the year ended 30 June 2016    Page 40

Memorandum, dated 18 November 2016, from the Financial Accountant, Keith Allan.     

 9.        Exclusion of Public

 

 

To be moved:

“That the public be excluded from the following parts of the proceedings of this meeting listed in the table below.

The general subject 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(1) 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(1) for passing this resolution

10.

Minutes of the Audit and Risk Committee meeting of 16 May 2016 [Part II Confidential]

For the reasons set out in the minutes of the Audit and Risk Committee meeting of 16 May 2016, held in public present.

 

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public as stated in the above table.

Also that the persons listed below be permitted to remain after the public has been excluded for the reasons stated.

Chief Executive (Paddy Clifford), Chief Financial Officer (Grant Elliott), General Manager, City Enterprises (Ray McIndoe), General Manager, City Future (Sheryl Bryant), General Manager, City Networks (Ray Swadel), General Manager, Customer Services (Peter Eathorne), General Manager, Libraries and Community Services (Debbie Duncan), Human Resources Manager (Wayne Wilson) and Strategic Communications Manager (Mark Torley) because of their knowledge and ability to provide the meeting with advice on matters both from an organisation-wide context (being members of the Council’s Management Team) and also from their specific role within the Council.

Legal Counsel (John Annabell), because of their knowledge and ability to provide the meeting with legal and procedural advice.

Committee Administrators (Penny Odell and Rachel Corser), Governance and Support Team Leader (Kyle Whitfield) because of their knowledge and ability to provide the meeting with procedural advice and record the proceedings of the meeting.

< add officers who are authors of reports or their substitutes > because of their knowledge and ability to assist the meeting in speaking to their report and answering questions, noting that such officer will be present at the meeting only for the item that relate to their respective report.

<add third parties, e.g. authors of third party reports being considered>, because of their knowledge and ability to assist the meeting in speaking to their report/s [or other matters as specified] and answering questions, noting that such person/s will be present at the meeting only for the items that relate to their respective report/s [or matters as specified].

 

 

 


 

 

 


PALMERSTON NORTH CITY COUNCIL

 

Presentation

TO:                                Audit and Risk Committee

MEETING DATE:           28 November 2016

TITLE:                            What is Internal Audit and Risk Management - An Overview

FROM:                           Vivian Watene, Senior Internal Auditor

 

 

RECOMMENDATION(S) TO Audit and Risk Committee

1.   That the Audit and Risk Committee receive the presentation for information.

 

 

 

Attachments

Nil     


 


 

 

 


PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Audit and Risk Committee

MEETING DATE:           28 November 2016

TITLE:                            Public Participation at Meetings

DATE:                            9 November 2016

AUTHOR/S:                   Rachel Corser, Committee Administrator, City Corporate

 

 

RECOMMENDATION(S) TO Audit and Risk Committee

1.   That the Audit and Risk Committee set aside a public comment section of not more than 30 minutes at the commencement of each ordinary meeting of the Committee to provide members of the community the opportunity to comment.

 

 

 

1.         ISSUE

Each newly established Committee needs to consider whether or not it wishes to have public participation at its meetings.  The procedures to receive public comment are set out in this report.

2.         BACKGROUND

It has been a decision by Committees and Subcommittees in the past to set aside a period of time to receive public comment at the beginning of the meetings for members of the public to comment on issues on the agenda, and if time permits, on other issues.  This procedure has been proven to be effective in providing an opportunity for greater communication with the community.

Providing a public comment section at the beginning of the meeting enables any member of the public to come along to the meeting to make comment on any matters on the agenda or other matters if time permits.

This procedure also enables an opportunity for quick response from any Council officer who might be present and also facilitates the request for reports for subsequent meetings.  In some cases, concerns raised by members of the public may well be resolved by Council officers present at the meeting.

The Council has previously adopted its own Standing Orders and in those Standing Orders provision has been made to allow for public comment at Committee and Subcommittee meetings should a Committee wish to adopt this practice.  Please refer to the “Public Participation” section as outlined in clause 3.23 of the Palmerston North City Council’s Standing Orders and as appended to this report.

If a member or members of the public wish to comment on issues that do not appear on the agenda, they must do so with the Chairperson’s approval in the public comment section of the meeting.

3.         NEXT STEPS

If the Committee decide to allow public comment, this will be provided for in all Committee ordinary meetings for the following term.

 

 

Attachments

1.

Standing Orders - Public Participation

 

 

 

Rachel Corser

Committee Administrator

 

 

 

 

 

 

 


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PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Audit and Risk Committee

MEETING DATE:           28 November 2016

TITLE:                            Health and Safety - July - September 2016

DATE:                            3 November 2016

AUTHOR/S:                   Wayne Wilson, Human Resources Manager, Headquarters

 

 

RECOMMENDATION(S) TO Audit and Risk Committee

1.   That the Audit and Risk Committee note the information contained within this report.

 

 

 

1.      Report

As there are 4 new members of the Committee, this memo recaps on how Elected Members meet their obligations as an Officer as defined by the new Health and Safety at Work Act (HSWA). 

Under this Act the Council is the Person Conducting a Business or Undertaking (PCBU) and Elected Members are defined as Officers.  The key difference between an Officer and a PCBU is that an Officer does not have the primary duty of care, (to ensure the health and safety of Council employees).  The duties of an Officer are:

§ Exercise due diligence to ensure that the PCBU complies with its duties as a PCBU

§ Due diligence includes doing all that is reasonably practicable to:

o Know about and keep up to date with work health and safety matters

o Gain an understanding of the nature of the operations of the organisation and the hazards and risks generally associated with those operations

o Ensure the PCBU has appropriate resources and processes to eliminate or minimise those risks

o Ensure the PCBU has appropriate processes for receiving/considering information about incidents, hazards and risks, and for responding to that information

o Ensure that there are processes for complying with any duty, and these are implemented

o Verify that the above resources and processes are in place and being used

In the Act, Elected Members are specifically excluded from the penalty regime when acting in this capacity but may be included when acting in other organisations e.g Council Controlled Organisations.  Elected Members do not have to exercise due diligence over CCOs.

 

2.    Discussion

How are we going to ensure that the Elected Members are meeting their obligations of due diligence?

This will be achieved by regular reporting.  It has been decided by the Committee that reporting will be quarterly.  The report will cover the following:

o    Know about and keep up to date with work health and safety matters

Any significant legislative or regulatory changes to the H&S environment will be included in the report. Where appropriate, training will be organised for Elected Members. As an example, when HSWA was being enacted we arranged for Simpson Grierson to provide training to Elected Members.

 

o    Gain an understanding of the nature of the operations of the organisation and the hazards and risks generally associated with those operations

A key aspect of HSWA is to change the focus of attention from hazards to key risks.  Staff are currently reviewing our hazard registers to identify those key risks that could potentially cause serious harm or worse.  Once identified, these will form part of our management strategy and reporting to Management Team to ensure that they are being actively managed.  As an example the Council employs a logging contractor to harvest the forest.  Our control action will be to ensure that we select a contractor whose H&S processes meet our requirements through verification of their previous performance and on-site auditing.  The report will cover our significant risks and control plans.

 

o    Ensure the PCBU has appropriate resources and processes to eliminate or minimise those risks

One of the key findings of the Pike River enquiry was that the Directors did not provide adequate resources (money) to enable a safe operation.  At the Council it is difficult to recall where safety has been compromised due to lack of finance. 

 

o    Ensure the PCBU has appropriate processes for receiving/considering information about incidents, hazards and risks, and for responding to that information

 

Although ACCs Workplace Safety Management Practices Audit does not guarantee that organisations will not be prosecuted, it does verify that the Council’s processes and procedures are of the highest standard.  Council has been rated at tertiary level for the past 4 Audits which are valid for 2 years.  Our last Audit was in May 2016.  The report will include details of investigations that have occurred during the period plus statistical information on new risks/hazards identified, incidents and near miss reported.

 

o    Ensure that there are processes for complying with any duty, and these are implemented

It is envisaged that this report will meet this requirement for Elected Members.

 

o    Verify that the above resources and processes are in place and being used

It is envisaged that this report will meet this requirement for Elected Members.

 

3.    Report

This report covers the period 1 July to 30 September 2016.  The information included in this report is discussed at the appropriate H&S Committee, the Main H&S Committee and Management Team.  All hazards, incidents and near miss reports include a section for the supervisor, manager and general manager to comment and sign off resolution.

The Council has four H&S committees plus an informal group of staff with H&S accountabilities who meet to oversee the WSMP audit and issues impacting on H&S.

·    The Main Committee that meets quarterly to provide oversight and direction

·    The Officers Committee meets monthly and covers CAB, Arenas Manawatu and Library

·    The Operations Committee meets monthly and covers all outside activities

·    The Principals Committee meets quarterly and reviews our role in managing contracts and providing facilities.

Each of these Committees has diverse representation including staff and reviews all of the hazard, incident and near miss forms reported by staff that are applicable to their committee.

Risks and Control Plans

This section will detail our significant risks and the control plans that we have implemented.  Once completed, it will only report new risks or changes to control plans.  We are currently identifying these risks through analysis of current hazard registers and will confirm with staff workshops. 

Hazards, Incidents and Near Misses Reported

For the quarter the following was reported                           Previous Quarters

                                                Sep                                          Jun                   Mar

·    Hazards                       21                                            4                      5

·    Incidents                      45                                            22                    29

·    Near Misses                24                                            22                    21

·    Lost Time                    134.4 days                               65.2 days         52.6 days

·    Lost Time Injuries       8                                              10                    5

 

None of the hazards were identified as being significant.

Investigations

In the period there were no investigations required.  However, Councillors have been informed by Ray McIndoe, General Manager City Enterprises, of an issue raised by Worksafe that is currently being investigated.  Further information will be reported at the next meeting.

Elected Members can be satisfied that a comprehensive process is undertaken when an incident occurs.

The process followed is:

1.   Incident details

2.   Incident description

3.   Investigation

4.   Analysis

5.   Conclusion and recommendations

6.   Corrective Actions

7.   Management Review and Sign-off – Manager, General Manager, Chief Executive, Human Resources

 

General

Management Team has received and endorsed a report detailing the actions that we are taking to align our policies, processes, procedures and reporting with the requirements of HSWA.

The Chief Executive has formal reporting requirements of H&S issues from City Enterprises to ensure that the most risky activities that the Council undertakes are reported directly.  All serious harm incidents or incidents with the potential to cause serious harm are reported immediately to the Chief Executive.

Training for HSWA has been completed for 19 H&S representatives.  This focused on transitioning from the old act to the new act.  40 Managers have received training on the new Act, concentrating on their accountabilities.  Training by Impac has been undertaken for staff who manage contracts. A total of 81 staff have been trained.  Further in-house training is proposed to ensure that all staff managing contractors follow our processes.

A component of the Health and Safety/ Energy Officer’s position in City Networks is to ensure that the buildings owned by Council are fit for purpose.  A programme of work inspecting our buildings has commenced.  Emergency Services also undertake trial evacuations for all of our buildings as required.

 

 

Attachments

Nil

 

Wayne Wilson

Human Resources Manager

 

 

 

 



 

 

 


PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Audit and Risk Committee

MEETING DATE:           28 November 2016

TITLE:                            Management Agreed Audit Corrective Actions - Timeline Missed

DATE:                            28 October 2016

AUTHOR/S:                   Vivian Watene, Senior Internal Auditor, City Corporate

 

 

RECOMMENDATION(S) TO Council

1.   That the Committee receive this Memorandum for information.

 

 

 

ISSUE

1.         To update the progress made by management on the agreed audit corrective actions from the internal audit’s recommendations. 

2.         The progress on the agreed corrective actions recommended by the external auditor, Audit New Zealand, as part of the audit of the Council’s 2015/16 Annual Report is in another agenda item for this Committee.

BACKGROUND

3.         This Committee requested a regular quarterly update on the status of the audit recommendations at its February 2014 meeting. 

4.         The timeline missed schedule on the management agreed corrective actions recommended by the Internal Audit is attached in Appendix A.  Items listed on this schedule are the items which have been followed up recently and that management has missed the original agreed to action deadline by more than 6 months.

 

 

NEXT STEPS

5.         Internal Audit will continue to report to this Committee quarterly on this subject.

6.         The progress on the management agreed corrective actions recommended by the external auditor, Audit New Zealand, will form part of this memorandum in the next progress update to this Committee.

 

Attachments

1.

Management Agreed Corrective Actions - Timeline Missed

 

 

 

Vivian Watene

Senior Internal Auditor

 

 

 

 

 

 

 

 

 

 


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PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Audit and Risk Committee

MEETING DATE:           28 November 2016

TITLE:                            New Audit Review - Planning Services Revenue Process

DATE:                            1 November 2016

AUTHOR/S:                   Vivian Watene, Senior Internal Auditor, City Corporate

 

 

RECOMMENDATION(S) TO Council

1.   That the Committee receive this Memorandum and its Appendix.

2.   That the Committee note the audit issues and the related management responses to the audit recommendations.

 

 

 

ISSUE

3.   In accordance with the Internal Audit Charter, this review (Appendix A) is presented to this Committee for information. 

 

BACKGROUND

4.   This review is part of the 2016/17 Internal Audit Plan approved by the Audit and Risk Committee.

5.   The objective of this review was to ensure appropriate internal controls are in place and working as intended for the Planning Services revenue process.  The review focused on controls that will ensure revenue transactions are complete and efficient and are recorded and reported accurately, appropriately and in a timely manner.

6.   Appendix A includes the audit issues identified, management’s response to the audit recommendations and the implementation timeline.

7.   Management has agreed to implement a large majority of the audit recommendations.  This is a good outcome.

 

 

Next step

8.   Internal Audit will follow up on the agreed corrective actions. 

 

 

Attachments

1.

Planning Services Revenue Process Audit

 

 

 

Vivian Watene

Senior Internal Auditor

 

 

 

 


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PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Audit and Risk Committee

MEETING DATE:           28 November 2016

TITLE:                            Audit New Zealand Report to Council for the year ended 30 June 2016

DATE:                            18 November 2016

AUTHOR/S:                   Keith Allan, Financial Accountant, City Corporate

 

 

RECOMMENDATION(S) TO Council

1.   That the Committee receive the 2016 final Audit Management Report.

 

 

 

1.         ISSUE

The final report on the audit of the Council for the year ended 30 June 2016 has been received from the Council Auditors, Audit New Zealand.  In the report the auditors outline significant matters considered, areas of interest they reviewed and the significant findings from the audit. The report also updates issues identified during the course of the 2016 financial year interim audit. The issues included had no material effect on the 2015/16 annual report adopted by the Council on 26 September 2016.

 

2.         NEXT STEPS

It is recommended that the Committee receive this report.

 

 

 

Attachments

1.

FY 2016 final Audit NZ management report

 

 

 

Keith Allan

Financial Accountant

 

 

  


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