Palmerston North City Council

 

Minutes of the Audit and Risk Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 21 August 2017, commencing at 9.00am.

Members

Present:

Councillor Vaughan Dennison (in the Chair), The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas

Apologies:

Councillors Leonie Hapeta (late arrival on Council Business), Aleisha Rutherford and Tangi Utikere.

The Mayor (Grant Smith) left the meeting at 11.47am during consideration of clause 20. He was not present for clauses 20 to 26 inclusive.

Councillor Gabrielle Bundy-Cooke left the meeting at 1.02pm during consideration of clause 23. She was not present for clauses 23.2 to 26 inclusive.

17-17

Apologies

 

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1.   That the Committee receive the apologies.

 

Clause 17.1 above was carried 14 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

The meeting adjourned at 9.01am.

The meeting resumed at 11.18am.

 

When the meeting resumed Councillor Leonie Hapeta was not present.

 

18-17

Confirmation of Minutes

 

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1.     That the minutes of the Audit and Risk Committee meeting of 15 May         2017 Part I Public be confirmed as a true and correct record.

 

Clause 18.1 above was carried 13 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

 

19-17

Health and Safety April - June 2017

Memorandum, dated 3 August 2017 from the Human Resources Manager, Wayne Wilson.

 

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1.   That the information contained within the report titled “Health and Safety April – June 2017” and dated 3 August 2017 from the Human Resources Manager, Wayne Wilson, be noted.

 

Moved Lorna Johnson, seconded Vaughan Dennison.

2.  That ongoing training in Health and Safety be introduced for staff and      reported on  at future Audit and Risk Committee meetings.

 

Clause 19-17 above was carried 13 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

 

20-17

Business Continuity Planning PNCC update

Memorandum, dated 27 July 2017 from the Head of Emergency Management, Stewart Davies.

The Mayor (Grant Smith) left the meeting at 11.47am.

 

Moved Vaughan Dennison, seconded Gabrielle Bundy-Cooke.

The COMMITTEE RESOLVED

1.   That the report titled “Business Continuity Planning PNCC update” and dated 27 July 2017 from the Head of Emergency Management, Stewart Davies, be noted.

2.   That Business Continuity Planning update be reported to the Committee six monthly.

 

Clause 20-17 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

 

21-17

Internal Audit 2016/17 Annual Report

Memorandum, dated 10 July 2017 from the Senior Internal Auditor, Vivian Watene.

 

Moved Jim Jefferies, seconded Bruno Petrenas.

The COMMITTEE RECOMMENDS

1.          That the satisfactory completion of the 2016/17 Internal Audit Plan, on time and within budget be noted.

 

2.          That the Chief Executive review the risks around having to implement Business Continuity Planning and the measure in place to protect Council from these risks.

 

3.          That this be reported to the Audit and Risk Committee by the end of this year.

 

Clauses 21.1 to 21.3 above were carried 12 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

 

Moved Brent Barrett, seconded Bruno Petrenas.

4.     That the Chief Executive be instructed to develop a draft policy on         appropriate use of closed circuit television and other remote means of         monitoring, and report back to Council.

 

Clause 21.4 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

 

22-17

Risk Management Progress YTD June 2017

Memorandum, dated 20 July 2017 from the Senior Internal Auditor, Vivian Watene.

 

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1.   That Management’s risk management progress made to the Strategic and Operational Risk Profiles be noted.

2.   That the Year-to-Date Residual Risk status for the key Strategic and Operational risks be noted.

 

Clause 22-17 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

 

23-17

Operational Risk Profile Review 2017

Memorandum, dated 11 July 2017 from the Senior Internal Auditor, Vivian Watene.

 

Moved Susan Baty, seconded Brent Barrett.

The COMMITTEE RESOLVED

1.         That R.15 remain as almost certain and that “budget excluding those             programmes which are subject to third party funding” to be deleted             from risk.

 

Clause 23.1 above was carried 10 votes to 2, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Duncan McCann and Bruno Petrenas.

Against:

Councillors Lorna Johnson and Karen Naylor.

Councillor Gabrielle Bundy-Cooke left the meeting at 1.02pm.

 

 

Moved Vaughan Dennison, seconded Bruno Petrenas.

2.   That the outcome of Management’s review of its Operational Risk Profile be noted.

 

Clause 23.2 above was carried 11 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

 

24-17

FY 2017 Audit Interim Management Report

Memorandum, dated 27 July 2017 from the Financial Accountant, Keith Allan.

 

Moved Vaughan Dennison, seconded Susan Baty.

The COMMITTEE RESOLVED

1.   That the report titled “FY 2017 Audit Interim Management Report” and dated 27 July 2017 from the Financial Accountant, Keith Allan, be received.

 

Clause 24.1 above was carried 11 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas

 

Moved Brent Barrett, seconded Vaughan Dennison.

 

Note:

On a motion: That the Chief Executive be directed to bring issues that management disagree with Audit New Zealand recommendations to Council for approval. The motion was lost 4 votes to 7, the voting being as follows:

For:

Councillors Brent Barrett, Rachel Bowen, Lew Findlay QSM and Duncan McCann.

Against:

Councillors Susan Baty, Adrian Broad, Vaughan Dennison, Jim Jefferies, Lorna Johnson and Karen Naylor and Bruno Petrenas.

 

25-17

Auditor Engagement

Memorandum, dated 27 July 2017 from the Financial Accountant, Keith Allan.

 

Moved Jim Jefferies, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1.   That Council receive the Audit Proposal and Engagement letters  for the years ending 30 June 2017, 2018 and 2019 and that Council note the appointment of Audit New Zealand as Auditors and approve acceptance of the letters by the Mayor, except for the audit fee which is be to subject to further negotiation by the Chief Executive and report back to Council.

 

Clause 25.1 above was carried 11 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas

 

26-17

Committee Work Schedule

 

Moved Vaughan Dennison, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1.   That the Audit and Risk Committee receive its Work Schedule dated August 2017.

 

Clause 26.1 above was carried 11 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

      

The meeting finished at 1.41pm

 

Confirmed 20 November 2017

 

 

Chairperson