PALMERSTON NORTH CITY COUNCIL
Finance &
Audit Committee
MEETING
16 September 2020
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. 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
Finance & Audit Committee meeting of 19 August 2020 Part I Public be confirmed
as a true and correct record.”
6. Assurance
Report on Review of Business Continuity Planning Page 13
Memorandum, presented by Masooma
Akhter, Business Assurance Manager and Jason McDowell, Head of Risk &
Resilience.
7. Review
of Elected Members' Expenses and Allowances Policy Page 25
Memorandum, presented by Hannah
White, Democracy & Governance Manager.
8. Committee
Work Schedule Page 47
9. 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.
[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
Memorandum
TO: Finance
& Audit Committee
MEETING DATE: 16
September 2020
TITLE: Assurance
Report on Review of Business Continuity Planning
Presented By: Masooma
Akhter, Business Assurance Manager and Jason McDowell, Head of Risk &
Resilience
APPROVED BY: Sheryl
Bryant, General Manager - Strategy & Planning
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RECOMMENDATION
TO Finance & Audit
Committee
1. That the
memorandum entitled ‘Assurance Report on Review of Business Continuity
Planning’ and its appendices, presented to the Finance & Audit
Committee on 16 September 2020, be received for information.
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1. ISSUE
The Business Assurance plan for
2019/20 endorsed by Council on 19 August 2019 required a business continuity
planning review.
This review was completed in
February 2020 however the report was not finalised until July 2020 due to the
impact of COVID-19. This memorandum informs the Committee of the
recommendations this review produced.
2. BACKGROUND
Resilient Organisations was
engaged to undertake this specialist review. Their assessment covered the
current state of the business continuity plans and the processes and
arrangements we have in place to support them.
The responsibility for business
continuity planning currently forms part of the Risk and Resilience division
headed by Jason McDowell.
The key observations from this
review indicated that our plans could be enhanced and made more useful,
relevant and structured. Resilient Organisations recommended that exercises are
run across the Council regularly as the use of scenario-based business
continuity exercises engages staff, improves understanding, identifies
weaknesses, and enhances adaptability.
There was an acknowledgement
and appreciation that staff worked collaboratively, listened well and
constructively challenged each other.
3. NEXT
STEPS
a) An
action plan will be developed by the Risk and Resilience division to address
the recommendations with the endorsement of the Business Assurance division.
The Risk and Resilience division will then be responsible to deliver on that
action plan.
b) The
recommendations and agreed action plan will be followed up on by the Business
Assurance division in due course and reported on.
4. 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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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 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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The recommendations contribute to
the achievement of action/actions in Not Applicable
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Contribution to strategic
direction and to social, economic, environmental and cultural well-being
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Business Assurance was
established to provide Council with the assurance that key controls relied
upon to mitigate risk are working effectively. This report informs Council of
Business Assurance activity.
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Attachments
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1.
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Assurance Report on Review of Business Continuity Planning ⇩ 
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PALMERSTON NORTH CITY COUNCIL
Memorandum
TO: Finance
& Audit Committee
MEETING DATE: 16
September 2020
TITLE: Review
of Elected Members' Expenses and Allowances Policy
Presented By: Hannah
White, Democracy & Governance Manager
APPROVED BY: Sheryl
Bryant, General Manager - Strategy & Planning
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RECOMMENDATION TO FINANCE AND AUDIT
COMMITTEE
1. That the
memorandum entitled ‘Review of Elected Members’ Expenses and
Allowances Policy’ presented to the Finance & Audit Committee on 16
September 2020, be received.
RECOMMENDATIONS TO COUNCIL
2. That
Council approve the Elected Members’ and Appointed Members’
Expenses and Allowances Policy and the Elected Members’ Remuneration
Determination 2020/21 (Appendix 1) as amended, subject to approval of the
Remuneration Authority.
3. That
Council amend the Elected Members’ Training and Development Policy
(Appendix 2), so that any reference to “elected member” or
“councillor” be changed to either “elected and appointed
member” or “member.”
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1. ISSUE
1.1 In
February 2020, the Finance & Audit Committee resolved:
“That a review of the Expenses Policy be undertaken
to consider whether the Policy be extended to cover all appointed members, and
to make recommendations for any other changes required to update the policy
including to the definition of, and travel expenses associated with, Official
Business, with a report to Finance & Audit Committee (in September
2020).”
1.2 Officers
have reviewed the Elected Members’ Expenses and Allowances Policy
(Expenses Policy) and recommend a number of changes including allowing
appointed members to access training and development opportunities. The
reviewed policy is attached as Attachment 1.
2. BACKGROUND
2.1 Council
has appointed five appointed members and accorded them full voting and
participation rights to sit on five Council committees in the 2019-2022
triennium. Appointed members are reimbursed for their meeting attendance but
are not currently able to seek council reimbursement for training or
development opportunities related to their committee roles.
2.2 In
February 2020, the Finance & Audit Committee resolved to pay the expenses
for an appointed member to attend a Local Government New Zealand conference.
This raised the question over whether appointed members should be included in
the Elected Members’ Expenses and Allowance Policy and officers were
asked to review the policy.
2.3 Appointed
members have full voting and participation rights on their relevant
committee(s) and are expected to use their knowledge and skills to actively
contribute to debate and ultimately to help strengthen council policies. By
including appointed members in the Council’s Expenses Policy, Council is
offering these individuals the opportunity to build their knowledge and skills
base so that they might carry out their role more effectively.
2.4 The
Expenses Policy sits alongside the Elected
Members’ Professional Development and Training Policy (Attachment 2).
This policy is due for review next year, but as an interim measure, officers
propose amending any references in the policy to “elected member”
or “councillor” to “elected and appointed member” or
“member”. These changes will enable appointed members to be
included in the policy until a full review is completed.
3. LEGAL
IMPLICATIONS
3.1 Under
Schedule 7 (6) of the Local Government Act 2002, “The Remuneration
Authority must determine the remuneration, allowances, and expenses payable to
elected members.” The Authority fixes the scale of allowances and
provides guidance for what can be remunerated.
3.2 The
Council’s Expenses Policy is overseen by the Remuneration Authority which
regulates what elected members can claim as an expense or allowance and the
amount for each.
3.3 Except
for the bicycle care allowance, all figures in the draft policy (Attachment 1)
are within the limits set by the Remuneration Authority.
3.4 The
Remuneration Authority’s determination does not establish limits on an
allowance for bicycle care or public transport. If the Committee recommended to
include these allowances, the approval of the Remuneration Authority would have
to be sought.
3.5 The
Remuneration Authority’s remit does not extend to appointed members. This
does not prohibit the Council from including appointed members in the Expenses
Policy, however appointed members’ expenses will not be scrutinised by
the Remuneration Authority.
4. Review
of the Expenses and Allowances Policy
4.1 The
Elected Members’ Expenses Policy was last reviewed in November 2019 when
adjustments were made to the vehicle mileage rates and Council agreed that
journeys between elected members’ place of residence and the Council
Administration Building would not be included in the policy. Council also
agreed not to include a childcare allowance or travel time allowance. As a
recent decision, these items were not included in this review.
4.2 This
review has focused on the elements mentioned in the resolution from February
2020, and recommends additional changes that were not considered as a part of
the previous review. Recommended changes include:
Adding
appointed members in the Conference and Training Expenses
4.3 This
will allow appointed members to attend training courses and be reimbursed for
reasonable travel and attendance expenses incurred in line with the policy.
4.4 It
is not envisaged to give appointed members a communication allowance as they
attend a maximum of six meetings annually and there are no expectations for
appointed members to participate in council business outside of meeting
attendance. The Council provides them with a council email address, electronic
access to the Agenda, and a hard copy of the Agenda where required.
Reviewing
the definition of, and travel expenses associated with, Official Business
4.5 In
the definitions section of the Expenses Policy council business is defined as:
“formal council meetings, committee meetings, workshops, seminars,
statutory hearings, training courses, site visits, meetings with staff,
meetings with community groups, meetings with members of the public. It
does not include events where the primary focus is on social activity.”
4.6 The
definition is a broad one. Officers see no reason to change it. Elected members
continue to exercise their judgement to determine the primary purpose of an
event and whether or not it meets the definition of council business.
4.7 For
clarity it is recommended that the description of council business is outlined
prior to the section noting modes of transport members can use to get to and
from council business.
4.8 To
encourage elected members to use public and active transport within the city,
Council could reimburse bus fares and could include a bicycle care allowance of
up to $100 per year to go towards the cost of maintaining a bicycle for use
while on council business.
4.9 Council
cannot offer an allowance for travelling by bicycle, as without receipts it
would be difficult to audit, however provision of an allowance towards bicycle
maintenance could indirectly encourage members to travel by active transport
modes. Including an allowance of this kind signals Council’s intention to
encourage the use of active transport for trips around the city in line with
the Active and Public Transport Plan.
Inclusion of the Hearing Allowances and the Remuneration
Determination
4.10 The list
of allowances for elected members who participate in Resource Management Act
(“hearings fees”) and alcohol licensing hearings has been included.
4.11 Listing
all allowances available to elected members in their various duties provides
transparency and a “one-stop-shop”. The Remuneration Authority
expects local authorities to include hearings fees in their Expenses Policy.
Re-formatting
4.12 Formatting
of the Policy has been undertaken in order to make it easier to follow.
Other changes
4.13 The
following changes are recommended:
· Removing
the allowance for a personal telephone plan – members can claim $150 for
the use of their mobile phone.
· Removing
councillors’ right to apply for overseas travel – unnecessary for
councillors to go abroad, unless on behalf of the Mayor.
· Removing
the ability to claim expenses for hotel landline calls – all elected
members have access to mobile phone.
· Adding
a requirement to disclose travel costs paid by outside parties on the gift
register – for transparency reasons.
· Adding
the application process for how members can request to go on a training course
– to be in line with the Members’ Training and Development Policy.
· Adding
a vehicle mileage allowance for appointed members.
5.
FINANCIAL IMPLICATIONS
5.1 The
members’ training budget has been set for 2020/21 so there is no
budgetary implication for expanding the policy to include the five appointed
members. However, it will mean that the training budget has to be shared
between 20 members, so members may wish to consider the budget in future
years.
5.2 The
proposed change to the Expenses Policy to allow members to claim for bicycle
care and public transport has a minimal effect within the existing allowance
budget.
6. NEXT
STEPS
If the Committee recommends the
changes, the draft Expenses Policy will take effect upon Council’s
approval.
The Elected Member Professional
Development and Training Policy will be reviewed in 2021.
7. Compliance
and administration
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Does the Committee have delegated
authority to decide?
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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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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 and Creative and
Liveable Strategy
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The recommendations contribute
to the achievement of action/actions in a plan under the Driven and Enabling
Council Strategy
Secondary achievement of action/actions in the Strategic
Transport Plan
The action is: Encouraging
Active Transport.
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Contribution to strategic
direction and to social, economic, environmental and cultural well-being
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Review of the Expenses Policy
to include appointed members ensures fairness of growth opportunities for all
members which in turn contributes to effective governing of the City.
Encouraging active transport
choices amongst the leaders of the city contributes to the city’s
environmental wellbeing direction.
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Attachments
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1.
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Draft Expenses Policy ⇩
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2.
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Draft Training Policy ⇩
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