AGENDA
Audit
and Risk Committee
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Vaughan Dennison
(Chairperson)
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Bruno Petrenas (Deputy
Chairperson)
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Grant Smith (The Mayor)
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Susan Baty
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Lew Findlay QSM
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Adrian Broad
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Jim Jefferies
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Gabrielle Bundy-Cooke
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Lorna Johnson
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PALMERSTON NORTH CITY COUNCIL
Audit and Risk
Committee
MEETING
18 February 2019
Order of Business
NOTE: The
Audit and Risk Committee meeting coincides with the ordinary meeting of the Finance and Performance Committee. The
Committees will conduct business in the following order:
- Finance and Performance Committee
- Audit and Risk Committee
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. Declarations
of Interest (if any)
Members are reminded of their duty
to give a general notice of any interest of items to be considered on this
agenda and the need to declare these interests.
4. Public
Comment
To receive comments from members of
the public on matters specified on this Agenda or, if time permits, on other
Committee matters.
(NOTE: If the
Committee wishes to consider or discuss any issue raised that is not specified
on the Agenda, other than to receive the comment made or refer it to the Chief
Executive, then a resolution will need to be made in accordance with clause 2
above.)
5. Confirmation
of Minutes Page 7
“That the minutes of the Audit
and Risk Committee meeting of 19 November 2018 Part I Public be confirmed
as a true and correct record.”
6. Business
Continuity Planning, PNCC update Page 15
Memorandum, dated 29 January 2019
presented by the Head of Emergency Management, Stewart Davies.
7. Risk
Management Report February 2019 Page 19
Memorandum, dated 16 January 2019
presented by the Risk Manager, Miles Crawford.
8. Health
and Safety Report - Oct - Dec 2018 Page 25
Memorandum, dated 18 January 2019
presented by the Human Resources Manager, Wayne Wilson.
9. 2018/19
Internal Audit Plan 6-Month Progress Update Page 37
Memorandum, dated 15 January 2019
presented by the Senior Internal Auditor, Vivian Watene.
10. Library Building -
Risk Assessment Page 71
Memorandum, dated 1 February 2019
presented by the Property Manager, Bryce Hosking and the Chief Infrastructure
Officer, Tom Williams.
11. Committee Work
Schedule Page 79
12. Exclusion
of Public
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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:
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General
subject of each matter to be considered
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Reason for
passing this resolution in relation to each matter
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Ground(s)
under Section 48(1) for passing this resolution
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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
(Heather Shotter), Chief Financial Officer (Grant Elliott), Chief
Infrastructure Officer (Tom Williams), General Manager – Strategy and
Planning (Sheryl Bryant), General Manager - Community (Debbie Duncan), Chief
Customer and Operating Officer (Chris Dyhrberg), Human Resources Manager
(Wayne Wilson), General Manager - Marketing and Communications (Sacha
Haskell) 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 his knowledge and ability to provide the meeting
with legal and procedural advice.
Committee
Administrators (Penny Odell, Rachel Corser and Courtney Kibby), because of
their knowledge and ability to provide the meeting with procedural advice and
record the proceedings of the meeting.
[Add Council
Officers], 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], 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].
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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 19 November 2018, commencing at 9.02am
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Members
Present:
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Councillor Vaughan Dennison (in the
Chair) and Councillors Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Lew
Findlay QSM, Jim Jefferies, Lorna Johnson and Bruno Petrenas.
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Non Members:
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Councillors Brent Barrett, Rachel Bowen,
Leonie Hapeta, Duncan McCann, Karen Naylor, Aleisha Rutherford and Tangi
Utikere.
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Apologies:
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The Mayor (Grant Smith) (for lateness, on
Council Business) and Councillors Gabrielle Bundy-Cooke (early departure),
Leonie Hapeta (early departure) and Duncan McCann (early departure).
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When the meeting
resumed following the adjournment Councillor Gabrielle Bundy-Cooke was not
present. She entered the meeting at 2.06pm during consideration of clause
29. She was not present for clause 28.
When the meeting
resumed following the adjournment The Mayor (Grant Smith) was present. He
was not present for clauses 26 to 27 inclusive.
Councillor Leonie Hapeta left the
meeting at 10.45am during consideration of clause 31. When the meeting resumed
following the adjournment she was present. She was not present for clause 31.
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26-18
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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 26-18 above was carried 15 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, Leonie Hapeta, Jim Jefferies, Lorna Johnson,
Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi
Utikere.
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27-18
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Deputation
- Palmerston North Age Friendly Group
Ms Donna Hedley and Ms Rose
Body made a Deputation regarding the state of footpaths around the city and
presented photographs of some of the affected footpaths.
It was difficult to navigate
many footpaths for those with a wheelchair or mobility scooter. The issues
raised included cracks, loose gravel, different levels in the footpaths and
dangerous surfaces in winter due to moss.
It was noted that reports to
Council had been made but they did not seem like a priority. A particular
resident could no longer go for a walk around the block due to the state of
surrounding footpaths.
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Moved
Vaughan Dennison, seconded Rachel Bowen.
The COMMITTEE RESOLVED
1. That the Audit and Risk Committee
receive the deputation for information.
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Clause 27-18 above was
carried 15 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, Leonie Hapeta, Jim Jefferies, Lorna Johnson,
Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi
Utikere.
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The meeting adjourned at 9.36am
The meeting resumed at 2.00pm
When the meeting resumed The Mayor (Grant Smith) was
present and Councillor Bundy-Cooke was not present.
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28-18
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Confirmation of Minutes
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Moved Vaughan Dennison, seconded Lorna Johnson.
The
COMMITTEE RESOLVED
1. That
the minutes of the Audit and Risk Committee meeting of 20 August 2018 Part I
Public be confirmed as a true and correct record.
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Clause 28-18 above was carried 13 votes to 0, with 2 abstentions, the
voting being as follows:
For:
Councillors Brent Barrett,
Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta,
Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas,
Aleisha Rutherford and Tangi Utikere.
Abstained:
The Mayor (Grant Smith) and Councillor Susan Baty.
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29-18
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Use of Closed Circuit Television
Memorandum, dated 12 June
2018 presented by the Human Resources Manager, Wayne Wilson.
Councillor
Gabrielle Bundy-Cooke entered the meeting at 2.06pm
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Moved
Vaughan Dennison, seconded Leonie Hapeta.
The COMMITTEE RECOMMENDS
1. That
the Audit and Risk Committee note that there is no need for a policy for the
use of closed circuit television as an agreed protocol between management and
the Unions exists that meets the minimum requirements of the Privacy
Commission.
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Clause 29.1 above was
carried 12 votes to 4, the voting being as follows:
For:
The Mayor (Grant Smith) and
Councillors Susan Baty, Rachel Bowen, Gabrielle Bundy-Cooke, Vaughan
Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Duncan McCann, Bruno
Petrenas, Aleisha Rutherford and Tangi Utikere.
Against:
Councillors Brent Barrett,
Adrian Broad, Lorna Johnson and Karen Naylor.
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Moved
Brent Barrett, seconded Lorna Johnson.
2. That
the Chief Executive be instructed to report back to the Audit and Risk
Committee on PNCC Compliance with the Privacy Act 1993 with regards to the
use of surveillance in public space in the city.
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Clause 29.2 above was
carried 11 votes to 4, with 1 abstention, the voting being as follows:
For:
Councillors Brent Barrett,
Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Gabrielle
Bundy-Cooke, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and
Aleisha Rutherford.
Against:
The Mayor (Grant Smith) and
Councillors Lew Findlay QSM, Jim Jefferies and Tangi Utikere.
Abstained:
Councillor Leonie Hapeta.
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The meeting adjourned at 2.27pm
The meeting resumed on Monday
26 November 2018 at 9.01am
When the meeting resumed all
Elected Members were present
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30-18
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AMP Update - Footpath Condition Rating & Renewal
Programme
Memorandum, dated 1 November
2018 presented by the Special Projects Manager, Phil Walker
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Moved
Bruno Petrenas, seconded Lorna Johnson.
The COMMITTEE RESOLVED
1. That
the Committee notes:
a. how the asset management
maintenance and renewal programmes will in future provide the required level
of service and maintain the service potential of the footpath assets.
b. that a ‘best
practice’ condition methodology is now being used to inform a
targeted and more effective maintenance and renewal programme of work
particularly for safety related poor and very poor footpath condition.
c. that the medium and
longer term programme footpath renewal needs will be reassessed in light of
the condition surveys for informing the 2020 Roading & Parking Asset
Management Plan.
d. that a baseline target for
the footpath performance measure reporting of the 2018-28 10 Year Plan will
be established by the end of the 2018/19 financial year.
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Clause 30-18 above was
carried 16 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 Bruno Petrenas, Aleisha Rutherford
and Tangi Utikere.
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31-18
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Health and Safety - July - September 2018
Memorandum, dated 25 October
2018 presented by the Human Resources Manager, Wayne Wilson.
Councillor
Leonie Hapeta left the meeting at 10.45am
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Moved
Vaughan Dennison, seconded Lorna Johnson.
The COMMITTEE RESOLVED
1. That
the Audit and Risk Committee note the information contained within the
memorandum titled `Health and Safety – July – September
2018’ dated 25 October 2018.
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Clause 31-18 above was
carried 15 votes to 0, the voting being as follows:
For:
The Mayor (Grant Smith) and
Councillors Vaughan Dennison, Bruno Petrenas, Brent Barrett, Susan Baty,
Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Lew Findlay QSM, Jim
Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Aleisha Rutherford and
Tangi Utikere.
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Moved Aleisha Rutherford,
seconded Lew Findlay.
Note:
On a motion `that the Chief
Executive be instructed to include reporting on mental health for staff to be
reported at the Audit and Risk Committee meeting each quarter’ the motion
was lost 6 votes to 9, the voting being as follows:
For:
Councillors Brent Barrett,
Rachel Bowen, Lew Findlay QSM, Duncan McCann, Bruno Petrenas and Aleisha
Rutherford.
Against:
The Mayor (Grant Smith) and
Councillors Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison,
Jim Jefferies, Lorna Johnson, Karen Naylor and Tangi Utikere.
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Moved
Leonie Hapeta, seconded Bruno Petrenas.
Note:
On a motion `that the Chief
Executive be instructed to have a mental health measure for staff to be
reported at the Audit and Risk Committee meeting each quarter’ the motion
was lost 2 votes to 13, the voting being as follows:
For:
Councillors Bruno Petrenas
and Lew Findlay QSM.
Against:
The
Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen,
Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Jim Jefferies, Lorna
Johnson, Duncan McCann, Karen Naylor, Aleisha Rutherford and Tangi Utikere.
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The meeting adjourned at 10.55am
The meeting resumed at 11.11am
When the meeting resumed Councillor Leonie Hapeta was
present.
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32-18
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Audit New Zealand Report to the Council
Memorandum, dated 11 October
2018 presented by the Chief Financial Officer, Grant Elliott.
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Moved
Vaughan Dennison, seconded Bruno Petrenas.
The COMMITTEE RESOLVED
1. That
the final 2017/18 Management Report from Audit New Zealand be received.
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Clause 32-18 above was
carried 15 votes to 0, with 1 abstention, 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, Bruno Petrenas, Aleisha Rutherford and Tangi
Utikere.
Abstained:
Councillor Leonie Hapeta.
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Moved Brent Barrett, seconded Karen Naylor.
Note:
On a motion `That Council
adopts the enhanced disclosure of remuneration as recommended by Audit NZ for
the 2019 financial year onwards’ the motion was lost 5 votes to 11, the
voting being as follows:
For:
Councillors Brent Barrett,
Adrian Broad, Vaughan Dennison, Lew Findlay QSM and Karen Naylor.
Against:
The Mayor (Grant Smith) and
Councillors Susan Baty, Rachel Bowen, Gabrielle Bundy-Cooke, Leonie Hapeta,
Jim Jefferies, Lorna Johnson, Duncan McCann, Bruno Petrenas, Aleisha
Rutherford and Tangi Utikere.
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33-18
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Internal Audit - IT Disaster Recovery Plan (DRP)
Memorandum, dated 26 October
2018 presented by the Senior Internal Auditor, Vivian Watene.
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Moved
Vaughan Dennison, seconded Bruno Petrenas.
The COMMITTEE RESOLVED
1. That the Committee note the assurance
given from the audit of the IT DRP in Appendix A of the report titled
`Internal Audit – IT Disaster Recovery Plan (DRP)’ dated 26
October 2018.
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Clause 33-18 above was
carried 15 votes to 0, with 1 abstention, 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, Bruno Petrenas, Aleisha Rutherford and Tangi
Utikere.
Abstained:
Councillor Leonie Hapeta.
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34-18
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Management Agreed Corrective Action Implementation
September 2018 YTD Progress
Memorandum, dated 29 October
2018 presented by the Senior Internal Auditor, Vivian Watene.
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Moved
Susan Baty, seconded Bruno Petrenas.
The COMMITTEE RESOLVED
1. That
the Committee receive the memorandum titled `Management Agreed Corrective
Action Implementation September 2018 YTD Progress’ dated 29 October
2018 and its two Appendixes for information.
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Clause 34-18 above was
carried 15 votes to 0, with 1 abstention, 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, Bruno Petrenas, Aleisha Rutherford and Tangi
Utikere.
Abstained:
Councillor Leonie Hapeta.
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35-18
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Committee Work Schedule
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Moved
Vaughan Dennison, seconded Rachel Bowen.
The COMMITTEE RESOLVED
1. That
the Audit and Risk Committee receive its Work Schedule dated November 2018.
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Clause 35-18 above was
carried 15 votes to 0, with 1 abstention, 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, Bruno Petrenas, Aleisha Rutherford and Tangi
Utikere.
Abstained:
Councillor Leonie Hapeta.
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The meeting finished at 11.56am
Confirmed 18 February 2019
Chairperson
PALMERSTON NORTH CITY COUNCIL
Memorandum
TO: Audit
and Risk Committee
MEETING DATE: 18
February 2019
TITLE: Business
Continuity Planning, PNCC update
DATE: 29
January 2019
Presented By: Stewart
Davies, Head of Emergency Management, Infrastructure
APPROVED BY: Tom
Williams, Chief Infrastructure Officer
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RECOMMENDATION(S)
TO Audit and RIsk COMMITTEE
1. That the
Audit & Risk Committee note the report dated 29 January 2019 and titled
`Business Continuity Planning, PNCC update’, the programme for and
progress of the Business Continuity Planning within the organisation.
2. That
Business Continuity Planning update be reported to the Audit and Risk Committee
6 monthly.
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1. ISSUE
Early in 2017 the Chief
Executive engaged Kestrel Group to carry out a review of business continuity
plans for all of Council. This review showed some disparity amongst the
different areas of Council business as to preparation and readiness in relation
to business as usual in the event of an unplanned disruption to normal
services. In addition, the Business Plan of the Manawatu Wanganui Civil
Defence Group requires local authorities within the region to be able to
deliver services in the event of a business continuity disruption.
2. BACKGROUND
The Kestrel Report highlighted
areas of potential improvement which included plans, impact and subsequent
reviews and training. Furthermore, it is acknowledged that there was an
absence of ownership with some staff failing to take responsibility for
business continuity for their specific areas of work and the continued
involvement.
3. OVERVIEW
OF PROGRAMME
Since the review, an
improvement programme has been coordinated by the Emergency Management Division
of PNCC. With the appointment of the Risk Manager a singular point of
accountability is now provided within PNCC with the ongoing training/exercises
and administration still to be carried out by Emergency Management. The
following key areas of improvement have been achieved.
a. Process
(i) A
policy document has now been prepared and is currently being reviewed for
acceptance by PNCC Management.
(ii) The Crisis
Management Plan has been completed outlining structure, roles, responsibilities
and the activation process (new structure included). Training on this
Plan was held in March 2018. This is to be exercised annually. The
Crisis Management Plan sits as an overarching document over the individual Unit
Plans. It is activated on the basis of a whole of Council response to a
BCP event.
(iii) Business Impact
Analysis workshops have been held for Units to identify specific service
delivery requirements within each of those Units and the priority assigned to
each of those service delivery requirements.
(iv) Business
Continuity Plans have been completed for Units and now reflect the new
structure. These were completed with the assistance of individual
personnel within Units on a one on one basis. These Plans are in addition
to the ones already in place for crucial services. Those being Water
Treatment Supply, Waste Water Services, 24/7 Call Centre and IT Disaster
Recovery.
b. Training
(i) Progress.
Three of the six Units of Council have completed the first batch of
training. The other three Units are scheduled to be completed by the end
of April 2019.
(ii) Approach.
The training consists of three components. They are a denial of the
following services – first IT, personnel and then accommodation.
Any scenario in a BCP context could involve either one or all three of these
services. Training is scheduled every two months so that in one year all
Units will complete one of the services, ie, first year IT, second year
personnel, third year accommodation.
(iii) The focus of the
training has been around obtaining a consistent approach to a process to manage
business interruption. This includes briefings, setting priorities, staff
welfare, incident action planning, communication and the requirement whether it
is significant enough to activate the Crisis Management Plan.
c. Preparedness
(i) I feel
confident that the Units that have had the training now have a good process to
deal with any BCP issues. When all Units have completed their first lot
of training PNCC will be in a better position to deal with an event in an
organised and structured manner. It is important that staff and Units
continue to participate in their own ongoing training/exercises.
d. Accommodation
(i) A lot
of work is currently being carried out to provide backup accommodation
requirements and individual Unit resource needs. For instance, what
services would work out of Arena or other Council buildings if the Civic
Administration Building is not available. In October 2019 the new
Emergency Operation Centre will be completed in Victoria Avenue and will also
be available for a number of Council services. Planning is underway to
have back up telemetry services, IT servers and satellite communication installed
in this new building.
4. NEXT
STEPS
Continuation of the
implementation and delivery of the programme outlined in this memorandum to be
co-ordinated by the Civil Defence & Emergency Management team in
conjunction with the Risk Manager, Finance Unit, who will now have overall
responsibility as explained in 3. above.
Report 6 monthly (2 x year) on
progress, training and maintenance of the plans.
Compliance and
administration
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Does the Committee have
delegated authority to decide?
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Yes
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Are the decisions significant?
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No
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If they are significant do they
affect land or a body of water?
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No
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Can this decision only be made
through a 10 Year Plan?
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No
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Does this decision require
consultation through the Special Consultative procedure?
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No
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Is there funding in the current
Annual Plan for these actions?
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Yes
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Are the recommendations
inconsistent with any of Council’s policies or plans?
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No
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The recommendations contribute
to Goal 5: A Driven and Enabling Council
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The recommendations contribute
to the outcomes of the Driven and Enabling Council Strategy
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Contribution to strategic
direction
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Business continuity planning
as described in this report contributes to managing Council’s readiness
and response in the event that there is a disruption to IT, staffing levels
or accessibility to accommodation.
This is to be delivered in an
efficient and financially sustainable manner.
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Attachments
Nil
PALMERSTON NORTH CITY COUNCIL
Memorandum
TO: Audit
and Risk Committee
MEETING DATE: 18
February 2019
TITLE: Risk
Management Report February 2019
DATE: 16
January 2019
Presented By: Miles
Crawford, Risk Manager, Finance
APPROVED BY: Grant
Elliott, Chief Financial Officer
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RECOMMENDATION(S) TO Audit and Risk Committee
That the Committee note:
1. Developments
for risk management and reporting
2. Management’s
progress made to the strategic and operational risk profiles
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ISSUE
1. For
the Committee to note developments in risk management and reporting.
2. To inform the
Committee on risk management Year-to-Date December 2018 progress as outlined
Tables 1 and 2 for the strategic and key operational risks.
BACKGROUND
3. The
new stand-alone risk management function commenced on the 7th of January with
the Risk Manager taking responsibility from Business Assurance for producing
this memorandum.
4. The
Risk Manager is currently meeting with the Management Team and their direct
reports to build context for the Council’s overall risk profile. As a
shared understanding of Council’s risk profile is developed, so too will
the reporting of Council’s risks.
5. The
Council’s organisational restructure, along with the new Risk Manager
role, present an opportunity to further develop risk reporting so that this
Committee receives meaningful information on the uncertainties that could
impact on how Council achieves its objectives. This information then supports
this Committee’s and Council’s decision-making for governance purposes.
6. There is a close
relationship between the risk management and the strategic planning functions. Risk
management looks at what poses a risk to delivery of Council’s direction,
whereas strategic planning monitors the environment and how it could impact on
the effectiveness of Council’s direction. While this memorandum will
refer to the strategies and plans which work to reduce strategic risk, reports
on effectiveness of strategies in achieving Council’s goals and delivery
of plans are achieved through annual reporting to Planning and Strategy and
quarterly reporting to Finance and Performance Committees respectively.
7. The objective of
future risk reporting is to provide the same level oversight of strategic and
key operational risks for governance purposes, but in a more distilled and
succinct format. As such, risk reporting will move towards being presented as a
‘plan-on-a-page’, comprising of risk information set out via tables
and graphics on a single A3 size page. This format enables a clear view of
Council’s overall risk profile along with the links and trends in
strategic and key operational risks.
8. Previously, the
operational and strategic risk profiles have been reported quarterly and 6
monthly respectively. Given the scope of Council’s strategic goals and
the importance of achieving them, reporting of strategic risks will increase
from being on a six-monthly basis to quarterly. As such, both strategic and key
operational risks will be reported quarterly in a combined memorandum.
9. The strategic
risks previously identified by the Management Team are essentially the same as
the strategic risks as presented in the 10 Year Plan 2018-28. This memorandum
has reflected that alignment by reporting on these ‘high-level’
strategic risks as per the 10 Year Plan. However, as understanding of
Council’s risk profile develops, future risk reporting will present more
specific risks that have been identified within these broader,
‘high-level’ risks. The strategic risks are presented in Table 1 of
this memorandum.
10. In July 2018, the Management
Team decided on three key operational risks for management as presented in
Table 2 of this memorandum. Like the strategic risks, key operational risks
will develop and change as understanding of Council’s risk profile
develops.
Strategic Risks
11. Table 1 presents the
strategic risks in alignment with the 10 Year Plan. It provides the risk
description, the relevance to the Vision and Goals of the 10 Year Plan, and the
current risk treatments.
Table 1
|
Risk Description
|
Relevant Strategic Goals
|
Risk treatments
|
|
Overstretched Council Finances
|
Financial Strategy
|
· Ensure Councils long term financial position is
sustainable
· Recognise intergenerational funding requirements
· Manage debt within defined levels
· Maintain infrastructure for use by current and
future generations
· Ensure financial capacity for future generations
· Timely provision of infrastructure while avoiding
financial risks
|
|
Demise of the CBD
|
G2. A creative and exciting city
|
· Creative and Liveable Strategy
· City Centre Transformation (City Shaping Move)
|
|
Poor city image and reputation
|
G1. An innovative and growing city
G2. A creative and exciting city
G3. A connected and safe community
|
· Economic Development Strategy
· Creative and Liveable Strategy
· Connected Community Strategy
· City Centre Transformation (City Shaping Move)
· Manawatu River Network (City Shaping Move)
|
|
Lack of council-community engagement and partnership
|
G3. A connected and safe community
|
· Connected Community Strategy
|
|
Improper environmental protection
|
G4. An Eco City
|
· Eco City Strategy
· Economic Development Strategy
· Enabling Sustainable Growth (City Shaping Move)
|
|
Land supply and infrastructure development do not
match growth
|
G1. An innovative and growing city
|
· City Development Strategy
· Enabling Sustainable Growth (City Shaping Move)
|
|
Missed economic growth and job opportunities
|
G1. An innovative and growing city
|
· Economic Development Strategy
· City Development Strategy
· City Centre Transformation (City Shaping Move)
|
Key Operational Risks
12. Table 2 presents the key
operational risks as recognised by the Management Team. It provides the risk
description, the operational objective that the risk impacts upon, and the
current risk status/progress.
Table 2
|
Risk #
|
Risk Description
|
Objective
|
Risk treatments
|
|
15
|
Council Does not deliver its capital budget
|
Timely provision of new infrastructure that builds
capacity and enables the City to harness new development opportunities while
avoiding the financial risks associated with over provision
|
· New Chief Infrastructure Officer and associated
Infrastructure leadership team in place
· Programme Management Office will be established to
enable streamlined, optimised delivery of Capital Plan.
· Planning and Assets function to be established
within Infrastructure Unit to provide robust out-year planning
|
|
60
|
That infrastructure condition and performance
assessments are not robust to inform assets management programming in the 10
Year Plan.
|
Provide infrastructure that enable growth and a
transport system that links people and opportunities
|
· Planning and Assets function to be established
within Infrastructure Unit will ensure that asset performance data (including
condition) is collated, stored in an interrogatable manner.
· A three waters report has been developed covering
condition and performance of the three water assets and the improvements that
are being made to monitoring and data capture.
· Each
of the AMP now has a section included detailing the approach to continuous
improvement.
|
|
62
|
Council is unable to serve its customers because it
is not prepared for all types of disruptions to its services.
|
A local authority must ensure that it is able to
function to the fullest possible extent, even though this may be at a reduced
level, during and after an emergency (S.64[2] CDEMA, 2002).
|
· Please refer to the ‘Business Continuity
Planning, PNCC Update’ Report within this agenda.
|
NEXT STEPS
The Committee will receive
progress on the strategic and key operational risks identified.
Compliance and administration
|
Does the Committee have
delegated authority to decide?
|
Yes
|
|
Are the decisions significant?
|
No
|
|
If they are significant do they
affect land or a body of water?
|
No
|
|
Can this decision only be made
through a 10 Year Plan?
|
No
|
|
Does this decision require
consultation through the Special Consultative procedure?
|
No
|
|
Is there funding in the current
Annual Plan for these actions?
|
Yes
|
|
Are the recommendations
inconsistent with any of Council’s policies or plans?
|
No
|
|
The recommendations contribute
to Goal 5: A Driven and Enabling Council
|
|
The recommendations contribute
to the outcomes of the Driven and Enabling Council Strategy
|
|
The recommendations contribute
to the achievement of action/actions in a plan under the Driven and Enabling
Council Strategy
|
|
Contribution
to strategic direction
|
|
|
|
|
Attachments
Nil
PALMERSTON NORTH CITY COUNCIL
Memorandum
TO: Audit
and Risk Committee
MEETING DATE: 18
February 2019
TITLE: Health
and Safety Report - Oct - Dec 2018
DATE: 18
January 2019
Presented By: Wayne
Wilson, Human Resources Manager, Customer
APPROVED BY: Chris
Dyhrberg, General Manager - Customer
|
RECOMMENDATION(S) TO AUDIT AND RISK COMMITTEE
1.
That the Audit and Risk Committee note the information contained
within the report dated 18 January 2019 and titled `Health and Safety Report
– Oct – Dec 2018’.
|
1. REPORT
This report covers the
period 1 October to 31 December 2018. The information included in this
report is discussed at the appropriate H&S Committee, the Main H&S
Committee and Management Team.
Hazards, Incidents and
Near Misses Reported
|
Quarter
|
Mar 17
|
Jun 17
|
Sep 17
|
Dec 17
|
Mar 18
|
Jun 18
|
Sep 18
|
Dec 18
|
|
Hazards
|
10
|
7
|
4
|
3
|
3
|
6
|
31
|
2
|
|
Incidents
|
56
|
20
|
58
|
12
|
33
|
37
|
21
|
36
|
|
Near Misses
|
24
|
28
|
27
|
8
|
23
|
18
|
25
|
20
|
|
Lost Time (days)
|
215.6
|
140
|
129.15
|
133.06
|
93.8
|
39.1
|
45.08
|
49
|
|
L.T. Injuries
|
13
|
9
|
17
|
9
|
12
|
8
|
8
|
6
|
|
|
|
|
|
|
|
|
|
|
Lost time days were
again low in comparison to other quarters because the injuries recorded were of
a minor nature. A number of lost time accidents are recorded to manual
handling. The three main causes are lifting, slipping or stepping down from
a vehicle or ladder.
Over the past two years
these three causes have resulted in 19 injuries and 204 days absence (24% of
total days lost).
Attachment One is the
Infrastructure Unit report from People Safe for those parts currently in People
Safe. The report covers the month of August with commentary for the
quarter as well.
Investigations
No investigations required this
quarter.
Previous Investigations
Number of Recommendations 24
Number of Recommendations Completed 24
External Review
The formal external review of our
H&S processes and procedures was completed by Safe On Site in April.
A programme of work has been developed to address the suggestions and
recommendations of the report. The number of recommendations and
suggestions from the Audit is 29. 48 actions have been identified in the
plan to address the issues.
Status of
Actions High Medium Low
Completed 6 3
On-going
action (completed but continues) 2 4
In Progress 9 9 1
Awaiting
completion of a prerequisite action 6 3
On Hold
(Timing) 5
The majority of the actions that
are awaiting completion of a prerequisite action relate to standardised
standard operating procedures.
Training
Attached is
a report on H&S specific training undertaken this calendar year. This
captures most of the training provided but not all, as H&S can be a
component of other courses and it does not capture the on-the-job instruction
type learning. The highlighted courses are those that new employees
undertake. Not included is the H&S induction that all new staff
receive.
Wellness
The Activate
Wellness Gym was used 1,344 times during the quarter or an average of 103
times per week by 124 individual staff members during the period.
Following on from the successful collaboration with UCOL last year, a new group
of students worked with 60 staff on a wellness improvement programme during the
quarter.
Annual
leave taken during the quarter was 3,287 days compared to 2,277
December quarter 2017. This was partly due to the closure of the Council
earlier at Christmas this year.
|
Dec 17
|
Mar 18
|
Jun 18
|
Sep 18
|
Dec 18
|
|
2277
|
2433
|
1556
|
1660
|
3287
|
Turnover for the
quarter of permanent staff was 31 or 5.56%. The annual turnover rate was
13.8%. Normally we measure employee initiated turnover only which is
11.3%. Employee initiated turnover are resignations and
retirements. Our benchmark is 12% which ensures that we have sufficient
turnover to refresh the organisation. The higher number of Other this
quarter relates to redundancies due to the restructure.
|
Date
|
Dec 17
|
Mar 18
|
Jun 18
|
Sep 18
|
Dec 18
|
|
Employee
Initiated
|
14
|
20
|
11
|
12
|
20
|
|
Other
|
2
|
3
|
0
|
0
|
11
|
Attachment One
Infrastructure Unit – Health and Safety Report
December 2018
Executive
Summary
This
report provides a high-level overview of the health and safety performance of
part of the PNCC Infrastructure Unit for month end December 2018.
The
trends over the twelve months to date are presented. A quarterly report
compares 2018Q3 to 2018Q4, and an annual report compares December 2018 to
December 2017.
Key
points:
· We are still
performing well against national benchmarks for Total Recordable Injuries and
Lost Time Injuries per 200,000 hours worked.
· No
Notifiable Injuries this month. The last was in April 2018.
· There was
only one new Lost Time Injury (LTI) resulting in relatively low 24 hours
lost. This is quite favourable compared to the past 12 months. Near
miss reports remain high at 6 this month, which is good from a workplace
culture point of view.
· Comparing
quarterly results 2018-Q4 with 2018-Q3, and comparing Dec 2018 with 12 months
previously, we have a similar situation overall. There is a definite
annual peak in incidents occurring in July, which is thought to be due to
winter working.
· Historically,
injuries around manual handling continue to be by far the largest activity at
33%. This is identified as an objective for analysis and an action plan,
coordinated through the HR team.
People
Safe - Progress
People
Safe is scheduled to be rolled out Council-wide, coordinated by the HR
team. Timing is to be confirmed.
Work
is ongoing with information entry for periodic staff training and equipment
testing, though progress is limited due to a lack of dedicated staff time
available.
National
Benchmarks and Commentary
The
following are key benchmarks from Zero Harm NZ’s Business Leaders’
Health and Safety Forum.
More
at http://www.zeroharm.org.nz/resources/benchmarking/
We
now have 19 months’ data. This enables us to make meaningful
comparisons with the same time last year, which is also an industry benchmark.
Commentary:
The
number of cases of Total Recordable Injuries (TRIFR) this month has decreased
from last month to the historical average. This is a similar pattern to
the same time last year. There appear to be two peaks emerging during the
annual cycle: July (due to winter working and wet weather) and Summer (possibly
due to volume of work).
The
average rate per 200,000 hours worked over the 12 months to date is still well
below the benchmark level.
The
number of new Lost Time Injuries (LTI) at 1 case and all backlog cases from
previous months resolved, is a pleasing result. That indicates that while
the total number of injuries is at the historical average this month, there is
a low proportion of the more serious Lost Time Injuries.
Notifiable
Events
There
were no new Notifiable Events in the reporting period or in the 6 months to
date. The last was in April 2018.
|
|
This
Month
|
6
Months to Date
|
|
Fatalities
|
0
|
0
|
|
Notifiable
Incidents under H&S at Work Act 2015
|
0
|
0
|
Range
of Incidents, Injuries and Near-misses
The
graph below illustrates the range of incidents, injuries and near-misses
encountered. It includes “general pain and discomfort”, which
are reported through People Safe.
The
monthly totals over the 12-month reporting period show a broadly similar rate
over time. The reporting of near-misses generally remains high, which is
good (in terms of workplace culture) and the observations gained are fed back
into the workforce though the People Safe system, tool box meetings and the
like.
Deteriorating
surfacing and potholes at the Albert Street Depot have led to reports of back
pain and discomfort from drivers of loaders and forklifts. This has been
noted at Health and Safety meetings attended by Union delegates also.
While short-term infill repairs are being made, they deteriorate quickly.
Since being formally reported in this report last month, the work has now been
scheduled for more permanent resurfacing by a major contractor in February
2019.
Injuries
by Activity Type
The
graph below illustrates the range of actual injuries (not near-misses) by
activity.
This
month’s recorded injuries again centred mostly around working with
vehicles and manual handling. These are in the highest risk group of
activities in terms of injuries: working around vehicles; operating mobile
plant and manual handling accounting for (33+11+13+9) = 66%.
This
is identified as an objective for analysis and an action plan. Incident
reports and data will be collated as part of the study and various possible
contributory factors will be explored.
Quarterly
and Annual Reporting
A
Quarterly Report was submitted in September for 2018-Q3. The table below
compares data for the immediate past quarter, 2018-Q4. The situation is
about the same or slightly better overall.
|
Quarterly
Metric
|
Benchmark
|
2018-Q3
|
2018-Q4
|
Change,
Q3 to Q4, %
|
|
|
|
All
Incidents (injury and non-injury); per 200,000 hours
|
-
|
4.34
|
4.06
|
-6
|
|
|
Total
Recordable Injuries (TRIFR); per 200,000 hours
|
3.29
|
3.36
|
2.66
|
-21
|
|
|
Lost
Time Injuries (LTI); per 200,000 hours
|
1.54
|
1.12
|
0.42
|
-63
|
|
|
Fatalities;
number
|
-
|
0
|
0
|
0
|
|
|
Notifiable
Incidents under H&S at Work Act 2015; number
|
-
|
0
|
0
|
0
|
|
Comparing
December 2018 to the same time last year, we have more incidents (injury and non-injury)
overall, but this is mainly due to better reporting of near-misses. The
Total Recordable Injury rate is higher, but from a low base – it
represents an increase from 2 to 3 injuries that month, out of 238 staff
members.
Therefore, overall the metrics are about the same as the same time last
year.
|
Annual
Metric
|
Benchmark
|
Dec
2017
|
Dec
2018
|
Change,
2017-18, %
|
|
|
|
All
Incidents (injury and non-injury); per 200,000 hours
|
-
|
1.96
|
5.46
|
179
|
|
|
Total
Recordable Injuries (TRIFR); per 200,000 hours
|
3.29
|
0.78
|
1.26
|
62
|
|
|
Lost
Time Injuries (LTI); per 200,000 hours
|
1.54
|
0.39
|
0.42
|
8
|
|
|
Fatalities;
number
|
-
|
0
|
0
|
0
|
|
|
Notifiable
Incidents under H&S at Work Act 2015; number
|
-
|
0
|
0
|
0
|
|
Paul
Compton
Logistics
and Support Manager, Infrastructure Unit
11
January 2019
Attachment
Two
|
Event
|
Mar
18
|
Jun
18
|
Sep
18
|
Dec
18
|
|
Accident
and Event Investigation
|
|
|
|
|
|
Arboriculture
Workplace Assessor
|
|
|
1
|
|
|
Blood
Levels Lead Based Paint
|
10
|
|
|
|
|
BRANZ
Bracing Seminar
|
|
|
|
|
|
Brushwood
Chipper Training
|
|
|
|
|
|
Business
First Line Management L4
|
|
|
|
|
|
Chainsaws
Use and Safety
|
|
8
|
6
|
|
|
Chemical
Handling & Spill Management
|
|
|
|
1
|
|
Concrete
Saw
|
|
|
20
|
|
|
Collections Induction
|
|
|
|
|
|
Confined
Space Entry
|
15
|
|
11
|
|
|
Contractor
Pre-Qualification
|
|
53
|
|
|
|
Customer
Conflict Awareness
|
|
30
|
|
|
|
Dealing
with Critical Incidents
|
|
35
|
11
|
|
|
Dealing
with Difficult People
|
|
|
|
|
|
Dealing
with Mental Health
|
|
|
|
23
|
|
Defibrillator
Training
|
|
|
|
8
|
|
Drainlaying
|
|
|
2
|
|
|
Driver
Assessment Training
|
14
|
|
|
|
|
Driver’s
License – Class 1R (Restricted)
|
|
|
|
1
|
|
Driver’s
License – Class 2L (Learners)
|
|
1
|
|
|
|
Driver’s
License – Class 5L (Learners)
|
|
|
|
|
|
Driver’s
License – Class 4L (Learners)
|
|
|
|
|
|
Driver’s
License – Class 1 (Car License)
|
4
|
4
|
1
|
|
|
Driver’s
License – Class 2 (Medium Rigid Vehicle)
|
2
|
1
|
1
|
1
|
|
Driver’s
License – Class 3 (Medium Combination)
|
|
|
|
1
|
|
Driver’s
License – Class 4 (Heavy Rigid)
|
1
|
2
|
|
1
|
|
Driver’s
License – Class 5 (Heavy Combination)
|
|
|
|
1
|
|
Driver’s
License – Class 6 (Motorcycle)
|
|
|
|
1
|
|
Electric
Glass Truck
|
|
|
7
|
|
|
Electric
Rearpacker Truck
|
|
|
7
|
|
|
Electrofusion
Certificate
|
|
13
|
|
|
|
Elevated
Working Platform (Scissor Lift and Boom)
|
|
|
4
|
|
|
Embracing
Change
|
|
|
74
|
|
|
Emergency
Management CIMS4
|
|
|
|
|
|
Endorsement
(D) Dangerous Goods
|
|
|
|
|
|
Endorsement
(F) Forklift
|
2
|
|
|
|
|
Endorsement
(R) Roller
|
3
|
2
|
1
|
1
|
|
Endorsement
(T) Tracks
|
3
|
2
|
1
|
1
|
|
Endorsement
(W) Wheeled Special Type
|
4
|
2
|
1
|
1
|
|
Fall
Arrest System Refresher, Rope & Abseiling Refresher
|
|
|
|
|
|
First
Aid Certificate
|
1
|
7
|
30
|
9
|
|
Forklift
OSH Certificate
|
|
|
1
|
4
|
|
Growsafe
|
|
12
|
|
|
|
Harassment Prevention and Awareness
|
42
|
|
|
26
|
|
Height
Safety Advanced
|
|
3
|
|
|
|
Height
Safety Intro
|
|
|
|
1
|
|
H&S
Essentials
|
|
19
|
|
|
|
H&S
Rep Stage 1
|
|
3
|
3
|
|
|
H&S
Rep Stage 2
|
|
1
|
|
|
|
How
To: Tell Your Story
|
|
|
|
|
|
ID
Plant & Trees
|
|
1
|
3
|
|
|
Internal
Training – Basic Asbestos Induction
|
|
|
|
|
|
Internal Training – Easy Start Orientation
|
10
|
4
|
|
|
|
Internal Training - Collections Induction Video
|
|
|
|
|
|
Internal
Training – Forklift SOP
|
|
|
|
|
|
Internal
Training – Notifiable Events
|
|
|
|
|
|
Kerbside
Collection Traffic Leader
|
|
3
|
|
|
|
Managing
Mental Health
|
|
|
30
|
|
|
Managing
Performance Masterclass
|
|
|
|
|
|
Move
at Work (Manual Handling)
|
|
|
|
|
|
NC
in Sports Turf L5
|
|
|
|
|
|
NZ
Certificate in Infrastructure Level 2
|
|
|
|
|
|
Other
PCBUs – Dealing with Sub/Contractors
|
|
|
|
36
|
|
Playground
Safety Inspections Level 2
|
|
|
|
|
|
Quad
Bike Training
|
|
|
14
|
|
|
Resilience
|
|
15
|
11
|
10
|
|
Safe
Work Zones
|
|
|
|
|
|
Site Induction Training: Depot
|
|
1
|
|
|
|
Site Induction Training: MRF
|
|
1
|
|
|
|
STMS
Level 1 – Site Traffic Management
|
3
|
3
|
6
|
2
|
|
TC1
– Basic Traffic Controller Level 1
|
2
|
4
|
5
|
2
|
|
Tractor
and LUV Training Level 2
|
|
|
|
|
|
Truck
Loader Crane/Hi Ab
|
3
|
|
|
|
|
WCTL
(Waste Collection Traffic Leader)
|
|
|
|
|
|
Total Number of Events
|
16
|
26
|
24
|
20
|
|
Total Number of Staff Attending
|
129
|
230
|
253
|
131
|
Note: Highlighted courses are included in
orientation.
2. Compliance
and administration
|
Does the Committee have
delegated authority to decide?
|
Yes
|
|
Are the decisions significant?
|
No
|
|
If they are significant do they
affect land or a body of water?
|
No
|
|
Can this decision only be made
through a 10 Year Plan?
|
No
|
|
Does this decision require
consultation through the Special Consultative procedure?
|
No
|
|
Is there funding in the current
Annual Plan for these actions?
|
Yes
|
|
Are the recommendations
inconsistent with any of Council’s policies or plans?
|
No
|
|
The recommendations contribute
to Goal 5: A Driven and Enabling Council
|
|
The recommendations contribute
to the outcomes of the Driven and Enabling Council Strategy
|
|
The recommendations contribute
to the achievement of action/actions in a plan under the Driven and Enabling
Council Strategy
The action is: Providing a safe
and healthy workplace.
|
|
Contribution to strategic
direction
|
Providing a healthy and safe
workplace
|
|
|
|
Attachments
Nil
PALMERSTON NORTH CITY COUNCIL
Memorandum
TO: Audit
and Risk Committee
MEETING DATE: 18
February 2019
TITLE: 2018/19
Internal Audit Plan 6-Month Progress Update
DATE: 15
January 2019
Presented By: Vivian
Watene, Senior Internal Auditor, Strategy and Planning
APPROVED BY: Sheryl
Bryant, General Manager - Strategy & Planning
|
RECOMMENDATION(S) TO AUDIT AND RISK COMMITTEE
1. That the
Committee note the internal audit progress made against the 2018/19 Internal
Audit Plan in the Memorandum, titled `2018/19 Internal Audit Plan 6-Month
Progress Update’ dated 15 January 2019, and its five Appendixes.
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ISSUE
1. In
accordance with the Internal Audit Charter, this Memorandum informs the
Committee on the progress and the findings of the 2018/19 Internal Audit Plan.
2. For the
routine audit reviews, this Memorandum focuses on reporting the exceptions.
BACKGROUND
3. Appendix
A is a schedule of the 2018/19 projects and their progress status.
4. Internal
Audit has completed 3 out of 6 new reviews from the 2018/19 Internal
Audit Plan as follows:
5. IT Disaster
Recovery Plan
· Reported to this Committee in November
2018.
6. Leased Carpark
Revenue Process
· A 2-Page high level Executive Summary
report for this audit is in Appendix B for information.
· The audit was to provide assurance over
the adequacy and effectiveness of operation processes and the relevant controls
surrounding the Leased Carpark revenue operations.
· The audit highlighted a
misalignment between the PNCC’s ‘Traffic and Parking Bylaw
2018’ and PNCC Delegation Manual regarding the authority to approve Lease
Parking Fees and Charges, among other observations which need improvement.
7. IT Security
· An external IT Security Specialists
firm, Scientific Software and Systems (SSS), conducted the audit.
· The audit highlighted the PNCC’s
main lack in documentation on the IT related policies and processes, and the
lack of IT security trainings of the relevant staff. A lack of some IT
security solutions was also noted.
· Management has agreed to implement the audit
recommendations to better compliance with the criteria and good practice.
· A 2-Page high level Executive Summary of
this audit is in Appendix C for information.
8. The
following paragraphs give a summarised exception on the internal audit routine
reviews.
9. Cash Spot Checks:
· A few 2015/16 petty cash receipts have
not been accounted on the council’s accounting system (since corrected);
· Some $80 cash float money being utilised
to cover a shortfall from the ticket sale mistake not yet rectify (since
rectified).
10. Credit Card Transactions:
· 3 credit card holders have not accounted
for their expenses for the last 4-5 months since July/August 2018.
11. Staff Expenses
Reimbursements:
· Business purpose for some expenses not
clearly stated.
· Some expenses authorised but not by the
General Manager as stipulated by the Management Team’s Expense Policy
(MT18)
12. It is part of the
Business Assurance’s undertaking for its transformation journey that
documented sample of good and bad Staff Expense Reimbursement claims will be
shared with the relevant staff for improvement.
13. Journal Transactions:
· Some journals lack source documentations
which are the evidence for the journals (now resolved).
14. Payroll Master File Weekly
Audit:
· Some cash pay-out of annual leave to the
staff did not comply with the Holiday Act (since resolved).
15. Internal
Audit Reviews Follow Up:
· Appendix D is a schedule of suggested
improvements by Internal Audit from the prior audit reviews and Management has
missed the agreed implementation timeline by 6 months or longer. Several
items have been removed from the schedule as they have been implemented.
However, some new items have been added.
· Appendix E is a schedule of issues
raised by Audit New Zealand and detailed in their final management report to
the Council received in October 2018. The Schedule contains the management
agreed actions and the implementation progress status updated by management on
the agreed actions, among other details. The Schedule also includes
pending corrective actions from the prior years’ audit.
NEXT STEPS
16. The next progress
report to this Committee is in May 2019 on the Internal Audit Reviews Follow Up
(paragraph 15).
Compliance and administration
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Does the Committee have
delegated authority to decide?
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Yes
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Are the decisions significant?
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No
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If they are significant do they
affect land or a body of water?
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No
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Can this decision only be made
through a 10 Year Plan?
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No
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Does this decision require
consultation through the Special Consultative procedure?
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No
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Is there funding in the current
Annual Plan for these actions?
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Yes
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Are the recommendations
inconsistent with any of Council’s policies or plans?
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No
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The recommendations contribute
to Goal 5: A Driven and Enabling Council
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The recommendations contribute
to the outcomes of the Driven and Enabling Council Strategy
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Contribution to strategic
direction
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The organisation’s
relevant systems and processes being audited can be more effective and
efficient and more compliant to the criteria and good practice, once the
agreed corrective actions are implemented.
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Attachments
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1.
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Appendix A 2018/19 Internal Audit Plan Progress Status ⇩ 
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2.
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Appendix B Leased Carpark Revenue Processes Audit October
2018 ⇩ 
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3.
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Appendix C IT Security Audit by Scientific Software and
Systems Ltd December 2018 ⇩
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4.
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Appendix D Internal audit Management Corrective Actions -
Timeline Missed Schedule ⇩
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5.
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Appendix E Audit NZ Recommendations from the 2018 Management
Report ⇩ 
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PALMERSTON NORTH CITY COUNCIL
Memorandum
TO: Audit
and Risk Committee
MEETING DATE: 18
February 2019
TITLE: Library
Building - Risk Assessment
DATE: 1
February 2019
Presented By: Bryce
Hosking, Property Manager, Infrastructure
Tom Williams, Chief Infrastructure
Officer, Infrastructure
APPROVED BY: Heather
Shotter, Chief Executive
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RECOMMENDATION(S) TO Council
1. That Council
receive the Risk Assessments for the Central Library Service’s options
regarding the occupation of the library building.
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1. ISSUE
and background
1.1 The
report titled “Library Project Update” was reported to
Council on 10th December 2018. This report discussed the seismic
condition of the library building and the Central Library Service’s
options regarding the occupation of the building.
1.2 This report
conveyed that the library building was assessed as being an Earthquake Prone
Building. The acceptance of this assessment gave the Central Library Service
three distinct options regarding occupation of the building. They were:
1. Continued occupation of the building
providing full library services;
2. Continued occupation of the building with
only partial library services being provided from the building, with an
alternative site being sought for the balance of services to be delivered from;
or
3. Complete
relocation of the Central Library Service to an alternative site.
1.3 Council
Officers worked with Warren Wilks from WT Partnership and Ash Wilson from Lewis
and Bradford Structural Engineers, and assessed the risks associated with the
building and the occupancy options.
1.4 The
building was not assessed as being a dangerous building, and after careful
consideration, it was recommended in the report on the 10th December
2018 that the Central Library Service continue to occupy the building providing
full library services.
1.5 This
recommendation, along with all the other recommendations in the report, were
accepted by Councillors.
1.6 However,
while an assessment of the associated risks was undertaken by Council Officers,
it was not formalised in written form, and thus was unable to be presented to
Councillors upon request in the presentation of the report on the 10th
December.
1.7 As
a result, a 4th resolution was added by Councillors stating: “That
a risk assessment on continuing to occupy the Library, including a risk management
strategy, be reported to Council urgently.”
2. RISK
ASSESSMENT
2.1 Following
this report, a comprehensive risk identification workshop was conducted
involving Council Officers, external consultants, and key stakeholders.
2.2 20 risks were
identified as part of this process. These risks include, but are not limited
to:
· The
risk of structural building failure;
· The
impacts on the tenants, the surrounding area, and the community;
· Council’s
reputational risk; and
· Council’s
legal risk should there be a loss of life.
Please
refer to the attached Risk Assessments for a full list of the risks identified.
2.3 Detailed analysis
was then conducted for each of the three occupancy options using the following
chronological steps:
· The
risks regarding the decision and potential causes;
· Any
controls currently in place;
· The
level of risk and whether these are acceptable or not. This is accessed through
a traffic light system;
· Mitigating
actions that can be undertaken;
· Timeframes
and which Council General Manager and their unit is responsible for these
actions;
· Remaining residual
risk; and
· Risk appetite and
acceptance of residual risk.
2.4 For
clarity, it is important to note that there will usually always be a level of
residual risk even after mitigating actions. It is just important to determine
whether these residual risk level are acceptable to Council or not.
2.5 The
risk assessments for each of the three occupancy options are attached.
3. overview
summary of risk assessment
3.1 The
below summary table provides an overview of the risks identified before and
after the implementation of the mitigation actions. The traffic light system
below corresponds to the same system used in the risk assessments.
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CITY LIBRARY OCCUPANCY OPTIONS
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BEFORE ACTIONS
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AFTER ACTIONS
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Maintain Full Library Services
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3
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13
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4
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0
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4
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16
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Partial Occupation (In line with IL2)
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3
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13
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4
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11
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6
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3
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Relocate City Library Services
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3
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13
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4
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12
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3
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5
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3.2 For
clarity, below is a guide to the risk levels/ traffic light system:
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LEVEL
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WHAT IT MEANS
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High
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Further actions and
management very likely to be required
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Medium
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May require further
actions
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Low
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Likely to be
acceptable at current level
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3.3 Council’s
decision to continue occupation of the library building providing full library
services was reaffirmed by the results of the risk assessments and this is
highlighted in the table in Clause 3.1 above.
4. NEXT
STEPS
4.1 Council
Officers to begin implementing the actions described in the “continued
occupation of the building providing full library services” risk
assessment.
5. Compliance
and administration
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Does the Committee have
delegated authority to decide?
If Yes quote relevant clause(s)
from Delegations Manual <Enter
clause>
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No
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Are the decisions significant?
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No
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If they are significant do they
affect land or a body of water?
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No
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Can this decision only be made
through a 10 Year Plan?
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No
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Does this decision require
consultation through the Special Consultative procedure?
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No
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Is there funding in the current
Annual Plan for these actions?
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No
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Are the recommendations
inconsistent with any of Council’s policies or plans?
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No
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The recommendations contribute
to Goal 3: A Connected and Safe Community
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The recommendations contribute
to the outcomes of the Connected Community Strategy
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The recommendations contribute
to the achievement of action/actions in the Community Services and Facilities
Plan
The action is: Upgrade central library and implement the Library of
the Future redevelopment (by end of 2019/2020).
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Contribution to strategic
direction
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Ensure we
provide a building for our Central Library that:
- is supported by people
- is available and used for making and creating
- is available and used for formal and informal community
conversations
- is accessible and welcoming to all
- supports and enables access to online services provides
opportunities for public discussion, critical thinking, and debate
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Attachments
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1.
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Library Risk Assessment - Full Library Services - December
2019 ⇩ 
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2.
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Library Risk Assessment - Partial Library Services -
December 2018 ⇩ 
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3.
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Library Risk Assessment - Library Relocation - December 2018
⇩ 
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PALMERSTON NORTH CITY COUNCIL
Committee Work Schedule
TO: Audit
and Risk Committee
MEETING DATE: 18
February 2019
TITLE: Committee
Work Schedule
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RECOMMENDATION(S) TO Audit and Risk Committee
1. That
the Audit and Risk Committee receive its Work Schedule dated February 2019.
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Attachments
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1.
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Committee Work Schedule ⇩ 
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