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:
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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
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Apologies:
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Councillors
Leonie Hapeta (late arrival on Council Business), Aleisha Rutherford and
Tangi Utikere.
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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
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Apologies
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Moved
Vaughan Dennison, seconded Bruno Petrenas.
The COMMITTEE RESOLVED
1. That the Committee receive the apologies.
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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.
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The meeting adjourned at 9.01am.
The meeting resumed at 11.18am.
When the meeting resumed Councillor Leonie
Hapeta was not present.
18-17
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Confirmation of Minutes
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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.
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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.
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19-17
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Health and Safety April - June 2017
Memorandum,
dated 3 August 2017 from the Human Resources Manager, Wayne Wilson.
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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.
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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.
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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.
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20-17
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Business Continuity Planning PNCC update
Memorandum,
dated 27 July 2017 from the Head of Emergency Management, Stewart Davies.
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The Mayor (Grant
Smith) left the meeting at 11.47am.
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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.
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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.
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21-17
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Internal Audit 2016/17 Annual Report
Memorandum,
dated 10 July 2017 from the Senior Internal Auditor, Vivian Watene.
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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.
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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.
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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.
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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.
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22-17
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Risk Management Progress YTD June 2017
Memorandum,
dated 20 July 2017 from the Senior Internal Auditor, Vivian Watene.
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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.
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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.
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23-17
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Operational Risk Profile Review 2017
Memorandum,
dated 11 July 2017 from the Senior Internal Auditor, Vivian Watene.
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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.
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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.
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Councillor Gabrielle Bundy-Cooke left the
meeting at 1.02pm.
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Moved
Vaughan Dennison, seconded Bruno Petrenas.
2. That
the outcome of Management’s review of its
Operational Risk Profile be noted.
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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.
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24-17
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FY 2017 Audit Interim Management Report
Memorandum,
dated 27 July 2017 from the Financial Accountant, Keith Allan.
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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.
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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
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Moved Brent Barrett, seconded Vaughan
Dennison.
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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.
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25-17
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Auditor Engagement
Memorandum,
dated 27 July 2017 from the Financial Accountant, Keith Allan.
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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.
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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
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26-17
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Committee Work Schedule
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Moved Vaughan Dennison, seconded Bruno Petrenas.
The COMMITTEE
RESOLVED
1. That the Audit and Risk Committee receive its Work Schedule dated
August 2017.
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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.
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The meeting finished at 1.41pm
Confirmed 20 November
2017
Chairperson