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AGENDA
Audit and Risk Committee Meeting Friday, 3 June 2022
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Date: |
Friday, 3 June 2022 |
Time: |
9.30 am |
Location: |
Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra
(Due to COVID-19 restrictions and limitations of the physical space, public access will be available through a live stream of the meeting.
The link to the live stream will be available on the Central Otago District Council's website.)
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Sanchia Jacobs Chief Executive Officer |
3 June 2022 |
Notice is hereby given that an Audit and Risk Committee meeting will be held in Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra and live streamed via Microsoft Teams on Friday, 3 June 2022 at 9.30 am. The link to the live stream will be available on the Central Otago District Council’s website.
Order Of Business
Audit and Risk Committee meeting Meeting - 25 February 2022
22.2.1 Declarations of Interest Register
22.2.2 Policy and Strategy Register
22.2.3 Audit NZ and Internal Audit Update
22.2.4 Financial Report for the Period ending 31 March 2022
22.2.5 Cyber Security, Information and Records Management, and Privacy update
22.2.6 Privacy and LGOIMA Requests Policies
22.2.7 Health, Safety and Wellbeing Report
22.2.10 June 2022 Governance Report
10 Resolution to Exclude the Public
22.2.11 Water Services Update on Compliance Status
22.2.12 Strategic Risk Register
22.2.14 June 2022 Confidential Governance Report
Members Ms L Robertson (Chair), His Worship the Mayor T Cadogan, Cr N Gillespie, Cr S Jeffery, Cr N McKinlay
In Attendance S Jacobs (Chief Executive Officer), L Macdonald (Executive Manager - Corporate Services), J Muir (Executive Manager - Infrastructure Services), L van der Voort (Executive Manager - Planning and Environment), S Righarts (Chief Advisor), W McEnteer (Governance Manager)
Audit and Risk Committee meeting - 25 February 2022
Audit and Risk Committee Agenda |
3 June 2022 |
MINUTES
OF Central Otago District Council
Audit and Risk
Committee
HELD VIA MICROSOFT TEAMS AND LIVE STREAMED
ON Friday, 25 February
2022 AT 9.34
am
PRESENT: Ms L Robertson (Chair), Cr S Jeffery, Cr N McKinlay
IN ATTENDANCE: Cr C Laws, L Macdonald (Executive Manager - Corporate Services), J Muir (Executive Manager - Infrastructure Services), L van der Voort (Executive Manager - Planning and Environment), L Fleck (Executive Manager – People and Culture), S Righarts (Chief Advisor), N McLeod (IS Manager), I Evans (Water Services Manager), A McDowall (Finance Manager), A Crosbie (Senior Policy Advisor), P Bain (Water Services Team Leader), R Williams (Governance Manager) and W McEnteer (Governance Support Officer)
1 Apologies
Committee Resolution Moved: Robertson Seconded: Jeffery That apologies from His Worship the Mayor T Cadogan and Cr N Gillespie be received and accepted. Carried |
2 Public Forum
There was no public forum.
3 Confirmation of Minutes
Committee Resolution Moved: Robertson Seconded: Jeffery That the public minutes of the Audit and Risk Committee Meeting held on 3 December 2021 be confirmed as a true and correct record. Carried |
4 Declaration of Interest
Members were reminded of their obligations in respect of declaring any interests. There were no further declarations of interest.
5 Reports
22.1.2 Policy and Strategy Register |
To consider the updated Policy and Strategy Register. A question was raised about the Staff Interests Policy and whether or not current practise reflected the policy or not in terms of the Executive Team considering staff interests on a six monthly basis. An update on this was requested for the June meeting. |
Committee Resolution Moved: Robertson Seconded: Jeffery That the report be received. Carried |
22.1.3 Audit and Risk Committee Terms of Reference |
To consider the terms of reference for the Audit and Risk Committee. After discussion it was agreed that there should be two further amendments before the document was presented to Council. The first was to delete reference to the Deputy Chair as the position did not exist. The second was regarding the appointment cycle of the Chair, where an additional clarification was to be included to say that the Chair was appointed “each triennium following the year of election or as required.” |
Committee Resolution Moved: Robertson Seconded: Jeffery That the Audit and Risk Committee A. Receives the report and accepts the level of significance. B. Recommends to Council that they accept the proposed amendments to the Audit and Risk Committee’s terms of reference as detailed in appendix 2 of the report. C. Recommends to Council that the reference to the Deputy Chair is removed from the delegation and that the term of the appointment of the Chair is clarified to include the words “each triennium following the year of election or as required.” Carried |
22.1.4 External and Internal Audit Updates |
To consider an update on the status of the external and internal audit programme and any outstanding actions for completed external and internal audits. |
Committee Resolution Moved: Robertson Seconded: Jeffery That the report be received. Carried |
22.1.5 Financial Report for the Period ending 31 December 2021 |
To consider the financial performance for the period ending 31 December 2021. |
Committee Resolution Moved: Robertson Seconded: Jeffery That the report be received. Carried |
22.1.6 Cyber Security Plan 2018-2021 update |
To consider an update on the 2018-2021 Cyber Security Plan. |
Committee Resolution Moved: Robertson Seconded: Jeffery That the report be received. Carried |
22.1.7 Local Government Official Information and Meetings Act 1987 (LGOIMA) Request Policy |
To review and recommend the Chief Executive approves the Local Government Official Information and Meetings Act 1987 (LGOIMA) Request Policy, which is related to Council granting requests for information under the Local Government Official Information and Meetings Act 1987. After discussion it was decided that the Committee should not recommend Chief Executive approval, rather they could support it. |
Committee Resolution Moved: Robertson Seconded: Jeffery That the Audit and Risk Committee A. Receives the report and accepts the level of significance. B. Supports the Chief Executive approval of this policy and issues to staff for implementation. Carried |
22.1.8 Privacy Policy |
To review and recommend the Chief Executive approves the Privacy Policy for council staff use, which is related to Council’s code of practice and legal obligations in accordance with the Privacy Act 2020. The Committee asked if the scope of the policy included the Council’s obligations as an employer and it was agreed that the scope of the policy should be expanded to include this prior to final sign off. It was also decided that the Committee should support the Chief Executive’s approval of the policy rather than recommend it. |
Committee Resolution Moved: Robertson Seconded: Jeffery That the Audit and Risk Committee A. Receives the report and accepts the level of significance. B. Supports the Chief Executive approval of the policy and suggests its scope is expanded to include internal privacy relating to staff prior to implementation. Carried |
22.1.9 Health, Safety and Wellbeing Report |
To provide with information on health, safety and wellbeing risks and controls at Central Otago District Council. |
Committee Resolution Moved: Robertson Seconded: Jeffery That the report be received. Carried |
6 Chair's Report
22.1.10 February 2022 Chair's Report |
To consider the February Chair’s report. The Chair had nothing to report. |
7 Members' Reports
22.1.11 February Members' Reports |
To consider the February members’ reports. Councillor McKinlay reported that he was a member of subcommittee overseeing the Cromwell Hall project and noted that a timetable for the project was currently being put in place. |
Committee Resolution Moved: Robertson Seconded: Jeffery That the reports be received. Carried |
8 Status Reports
22.1.12 February Governance Report |
To report on items of general interest, consider the Audit and Risk Committee’s forward work programme and the current status report updates. |
Committee Resolution Moved: Robertson Seconded: Jeffery That the report be received. Carried |
9 Date of The Next Meeting
The date of the next scheduled meeting is 3 June 2022.
10 Resolution to Exclude the Public
Committee Resolution Moved: Robertson Seconded: Jeffery That the public be excluded from the following parts of the proceedings of this meeting. The general subject matter 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 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
Carried |
The public were excluded at 10.33 am and the meeting closed at 11:37 am.
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22.2.1 Declarations of Interest Register
Doc ID: 582671
1. Purpose
Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.
Appendix 1 - Audit and Risk Declarations of Interest ⇩
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22.2.2 Policy and Strategy Register
Doc ID: 580946
1. Purpose
To consider the updated Policy and Strategy Register.
That the report be received.
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2. Discussion
The following updates were made to the register:
People and Culture
· Violence and Aggression Management Policy has been added as new work item
Regulatory
· Dangerous and Insanitary Building Policy was adopted at the March Council meeting
· Easter Sunday Trading Policy was readopted for a further five-year period at the June Council meeting
Information Management
· Acceptable Use of Public WiFi Policy review is underway
· Digital Strategy is on track for finalisation in June 2022
· Privacy Policy implemented following approval, subject to amendments, at the February Audit and Risk Committee meeting
· LGOIMA Policy implemented following approval, subject to amendments, at the February Audit and Risk Committee meeting
Libraries
· Review of five library policies underway, proposed to be replaced with one new library policy in quarter three of 2021/22
General
· An element of the Housing Strategy is currently out for public feedback. Timeframe has been adjusted accordingly.
Appendix 1 - Policy and Strategy Register ⇩
Report author: |
Reviewed and authorised by: |
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Alix Crosbie |
Saskia Righarts |
Senior Strategy Advisor |
Chief Advisor |
13/05/2022 |
17/05/2022
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22.2.3 Audit NZ and Internal Audit Update
Doc ID: 581117
1. Purpose
To consider an update on the status of the external and internal audit programme and any outstanding actions for completed internal and external audits.
That the report be received.
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2. Discussion
Council has a legislative requirement to complete external audits of annual reports and the long-term plan through Audit New Zealand. Audit New Zealand complete a governance report on their findings and any recommendations for improvements. A schedule of actions is then created and allocated to staff to manage the completion of these recommendations.
The 2019-2020 Audit New Zealand Management Report was presented to the Audit and Risk Committee at the June 2021 meeting. There were eight recommendations, of which all eight are now completed, with the last two updated in May 2022. The Audit Action Register contains two remaining actions which are pending Audit New Zealand signing off as part of the 2020-21 Management Report, with one completed in this quarter.
In addition to external audits, council carries out several internal audits annually to provide assurance over compliance and to mitigate business risks. One recommendation remained in progress in the payroll area. This is now completed as no further progress is able to be made in regard to the Ranfurly pool due to technology constraints.
Appendix 1 and 2 list the outstanding tasks and any progress with these tasks. Once the Committee have viewed the completed tasks these are removed from the schedule.
The internal audit programme is reviewed every three years to provide assurance over compliance and to mitigate business risks. In August 2020, Deloitte’s recommended a four-year internal audit programme based on factors such as budgetary constraints, recently completed engagements and the current view of the risk landscape in the local government sector. This was then prioritised, and the Committee approved the programme of work as detailed below for the next four years (2021 – 2024) ending June 2024. This programme will be reviewed at the December 2022 Audit and Risk Committee meeting, post the Council elections. This is to ensure this programme reflects the appropriate priorities, and to consider whether the remining items in red should be included in the next three-year programme.
The proposed audits, in the information and records management, cyber security and procurement activities, are planned and scheduled to happen this financial year. All of these commence in June 2022.
Internal Audit Review Programme |
FY 20-21 |
FY 21-22 |
FY 22-23 |
FY 23-24 |
Information and Records Management |
x |
ü |
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Procurement |
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ü |
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Cyber Security |
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ü |
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Contract Management |
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ü |
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Capital Expenditure Planning and Monitoring |
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ü |
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Health & Safety |
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ü |
Recruitment Review |
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ü |
Environmental Management (including Sustainability) |
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Business Continuity / Disaster Recovery |
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Asset Management |
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Benefits Realisation |
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Legislative Compliance |
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Red – denotes suggested alternative audit review options
Appendix 1 - Audit New Zealand - Audit Action Register ⇩
Appendix 2 - Internal Audit Action Register ⇩
Report author: |
Reviewed and authorised by: |
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Leanne Macdonald |
Sanchia Jacobs |
Executive Manager - Corporate Services |
Chief Executive Officer |
23/05/2022 |
23/05/2022
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22.2.4 Financial Report for the Period ending 31 March 2022
Doc ID: 580293
1. Purpose
To consider the financial performance for the period ending 31 March 2022.
That the report be received.
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2. Discussion
The quarterly financial report is presented to the Committee as part of regular updates.
3. Financial Reporting
Income of $52.068M against the year-to-date budget of $51,420M
Overall income has a favourable variance against the revised budget by $648k. This is being driven by the timing of development contributions with a favourable variance of $967k. This variance is offset by the timing of water meter readings and Waka Kotahi subsidies.
The main variances are:
· Government grants and subsidies revenue has an unfavourable variance of ($106k). This is mainly due to the timing of the Waka Kotahi New Zealand Transport Agency (Waka Kotahi) roading subsidy contributing an unfavourable variance of ($264k). Subsidies are claimed for both the operational and capital roading work programmes and fluctuate based on the work programme. This unfavourable variance is offset by Tourism Infrastructure funding (TIF) of $165k for the Clyde Historic Precinct toilet upgrades. The budget for this is recognised in other income, however this funding has been correctly recognised in grants and subsidies.
· User fees and other has an unfavourable variance of ($350k). This is being driven by the timing of the water meter reading, with a variance of ($286k). There is another water meter read due before the end of the financial year. Other income has a variance of ($56k). This is due to the grants budget being included in ‘other income’ rather than the correct place of grants and subsidies. This budget includes the TIF funding for the new Clyde toilet and Miners Lane carparks.
· Regulatory fees has a favourable variance of $140k. This variance continues to be driven by building consent revenue received, which year-to-date is $158k ahead of budget.
· Development Contributions has a favourable variance of $967k. This variance relates to the timing of development contributions which are dependent on the resource consent process and developer timeframes. Cromwell development contributions in wastewater, water and roading are higher than budgeted.
Expenditure of $37.686M against the year-to-date budget of $38.312M
Expenditure has a favourable variance of $626k. The main drivers behind the favourable variance are contracts, staff, professional fees, and other costs. Offsetting this favourable variance is the cost of sales from stage 1 of the Dunstan Park subdivision, along with depreciation.
The main variances are:
· Staff costs have a favourable variance of $303k. The is due in part to the lag between staff movement and the replacement of new staff, plus the relevant recruitment costs. It also includes staff training, made up of conferences and planned attendance at workshops, travel and accommodation. Attendance and travel plans have been delayed due to the on-going impact of COVID-19.
· Contracts has a favourable variance of $356k. Contract expenditure is determined by workflow and the time of the contract. The outcome of this is that the phased budgets will not necessarily align with actual expenditure, meaning some work appears favourable, and some contracts spend year-to-date appear unfavourable. Planned maintenance $147k; contracts $187k; and roading contracts $31k are the key timing variances year-to-date. The contracts variance of $187k is being driven by the timing of the Three Waters Stimulus operational improvements projects.
· Professional fees has a favourable variance of $291k. This is similar to contract expenditure where budget and actuals do not align throughout the year but typically align by the end of year. Major variances include, engineers fees $76k; management consultants $178k; planning consultants $112k and recoverable professional fees ($178k).
· Depreciation has an unfavourable variance of ($75k). This is mainly due to a difference between the actual and budgeted wastewater depreciation. Wastewater assets reflect the updated valuations which occurred after the 2021-31 Long-term Plan was approved. The depreciation budget has been brought into alignment for the 2022-23 Annual Plan. Areas with major variances include, parks and reserves recreation $213k; roading $64k; and wastewater ($234k).
· Costs of sales has an unfavourable variance of ($1.104M). This is due to the costs incurred for stage 1 of the Dunstan Park subdivision and is offset by land sales revenue of $3.7M received for the first stage of this development. The costs of sales budget is reflected with 50% expenditure in April and 50% in June. Development costs from Cemetery Road for stage 1 have not yet been finalised and allocated to cost of sales. The subdivision development costs are held on the balance sheet in property intended for sale until each stage is complete and land sales are received.
· Repairs and maintenance has a favourable variance of $117k, mainly due to the timing of various projects as well as building maintenance requirements. Weed control of $33k, buildings repairs and maintenance $44k and equipment hire $27k are the key timing variances.
· Projects has a favourable variance of $147k, due to the phasing schedule of Tourism Central Otago projects.
· Other costs has a favourable variance of $332k. A detailed breakdown for other costs is tabled below.
2021/22 |
9 MONTHS ENDING 31 MARCH 2022 |
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2021/22 |
|||
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YTD |
YTD |
YTD |
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|
Annual Plan |
|
Actual |
Revised Budget |
Variance |
|
Revised Budget |
$000 |
|
$000 |
$000 |
$000 |
|
$000 |
|
Income |
|
|
|
|
|
33,270 |
Rates |
25,215 |
25,180 |
35 |
|
33,270 |
7,248 |
Govt Grants & Subsidies |
12,084 |
12,190 |
(106) |
|
16,890 |
7,323 |
User Fees & Other |
5,003 |
5,353 |
(350) |
|
7,737 |
17,286 |
Land Sales |
4,769 |
4,767 |
2 |
|
14,739 |
2,155 |
Regulatory Fees |
2,033 |
1,893 |
140 |
|
2,157 |
2,104 |
Development Contributions |
2,505 |
1,538 |
967 |
|
2,114 |
388 |
Interest & Dividends |
57 |
186 |
(129) |
|
392 |
- |
Reserves Contributions |
293 |
196 |
97 |
|
196 |
- |
Profit on Sale of Assets |
14 |
- |
14 |
|
- |
55 |
Other Capital Contributions |
95 |
117 |
(22) |
|
150 |
69,829 |
Total Income |
52,068 |
51,420 |
648 |
|
77,645 |
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Expenditure |
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|
|
|
13,565 |
Staff |
9,317 |
9,620 |
303 |
|
13,482 |
587 |
Members Remuneration |
378 |
413 |
35 |
|
587 |
8,904 |
Contracts |
6,532 |
6,888 |
356 |
|
9,811 |
2,902 |
Professional Fees |
2,279 |
2,570 |
291 |
|
3,869 |
9,997 |
Depreciation |
7,881 |
7,806 |
(75) |
|
10,383 |
13,926 |
Costs of Sales |
1,964 |
860 |
(1,104) |
|
7,229 |
3,920 |
Refuse & Recycling Costs |
2,971 |
3,037 |
66 |
|
4,029 |
- |
Cost Allocations |
(9) |
(2) |
7 |
|
(2) |
1,723 |
Repairs & Maintenance |
1,149 |
1,266 |
117 |
|
1,940 |
1,410 |
Electricity & Fuel |
1,031 |
1,042 |
11 |
|
1,419 |
- |
Loss on Sale of Asset |
262 |
262 |
0 |
|
262 |
652 |
Grants |
461 |
496 |
35 |
|
631 |
1,115 |
Technology Costs |
704 |
760 |
56 |
|
1,100 |
303 |
Projects |
704 |
851 |
147 |
|
1,231 |
639 |
Rates Expense |
555 |
605 |
50 |
|
712 |
423 |
Insurance |
451 |
450 |
(1) |
|
455 |
2,037 |
Other Costs |
1,056 |
1,388 |
332 |
|
2,087 |
62,103 |
Total Expenses |
37,686 |
38,312 |
626 |
|
59,225 |
|
|
|
|
|
|
|
7,726 |
Operating Surplus / (Deficit) |
14,382 |
13,108 |
1,274 |
|
18,420 |
This table has rounding (+/- 1)
· Other costs has been configured to include only needs-based costs which will fluctuate against budget. There are no large variances of note to report on at present.
Other costs breakdown is as below:
2021/22 |
|
YTD Actual |
YTD Revised Budget |
YTD Variance |
2021/22 |
|
Annual Plan |
Other Costs breakdown |
Revised Budget |
||||
$000 |
|
$000 |
$000 |
$000 |
$000 |
|
535 |
Administrative Costs |
232 |
344 |
112 |
|
562 |
690 |
Office Expenses |
371 |
448 |
77 |
|
655 |
234 |
Operating Expenses |
154 |
178 |
24 |
|
234 |
327 |
Advertising |
135 |
229 |
94 |
|
374 |
175 |
Valuation Services |
123 |
134 |
11 |
|
175 |
76 |
Retail |
41 |
55 |
14 |
|
87 |
2,037 |
Total Other Costs |
1,056 |
1,388 |
332 |
|
2,087 |
This table has rounding (+/- 1)
Council Property and Facilities $2.376M favourable against budget:
This is mainly due to the timing of the Cromwell Town Centre Projects currently underspent by $1.954M. This includes the Memorial Hall project, Cromwell Administration Buildings projects and Grounds, paths and fences around the Town Centre. Other areas behind budget include community buildings $379k, council offices $162k and elderly person housing $17k.
Waste Management $187k favourable against budget:
The transfer station reconfiguration projects are contributing to $192k of the underspend. Some of this work is underway but not all work will be completed this year.
Vehicle Fleet $28k favourable against budget:
Vehicle renewals and purchases are under budget with 54% of the $256k total revised budget being spent.
Information Services $161k favourable against budget:
Information Services projects are behind budget. Projects include enhanced customer experience digital services $22k, enterprise resource planning information services $16k, financial performance improvement $89k and information and records management $24k.
Libraries $150k favourable against budget:
This favourable variance is due to the timing of the Alexandra Library building upgrade. Currently this project is in the design phase.
Parks and Recreation $1.072M favourable against budget:
This favourable variance is driven by a mixture of the timing of project budgets and contractor’s availability to perform the work. Projects include landscaping, signage and irrigation. The Cromwell pool replacement heat pump accounts for half of the capital budget variance. The work on installing the heat pump is well underway and is expected to be completed in late June.
Roading ($1.639) unfavourable against budget:
This unfavourable variance is due to the timing of the budget and work programme. Year-to-date $1.226M of the $1.365M annual revised budget has been spent. There is currently no budget allocated year-to-date March 2022, with the budget being allocated out over April, May and June. Other roading projects include footpath renewals $127k, carpark renewals $161k, structures renewals $173k, sealed road renewals ($584k), gravel road renewals ($206k) and drainage renewals ($50k). These variances are due to the timing of budgets and the work programme.
Three Waters is $2.1M favourable against budget:
The favourable variance is due to the timing of construction projects. The main drivers include the Lake Dunstan water supply $1.062M, water treatment plant and capacity upgrades $2.3M, wastewater improvements $135k and water stimulus fund projects $383k.
2021/22 Annual Plan |
CAPITAL EXPENDITURE |
YTD Actual |
YTD Revised Budget |
YTD Variance |
|
2021/22 Revised Budget |
Progress to date against revised budget |
$000 |
|
$000 |
$000 |
$000 |
|
$000 |
|
6,058 |
Council Property and Facilities |
1,088 |
3,464 |
2,376 |
|
9,305 |
12% |
382 |
Waste Management |
384 |
571 |
187 |
|
913 |
42% |
- |
i-SITEs |
- |
1 |
1 |
|
4 |
0% |
50 |
Customer Services and Administration |
15 |
33 |
18 |
|
62 |
24% |
204 |
Vehicle Fleet |
139 |
167 |
28 |
|
256 |
54% |
248 |
Planning |
- |
139 |
139 |
|
348 |
0% |
352 |
Information Services |
193 |
354 |
161 |
|
1,369 |
14% |
164 |
Libraries |
98 |
248 |
150 |
|
512 |
19% |
1,713 |
Parks and Recreation |
729 |
1,801 |
1,072 |
|
3,755 |
19% |
7,420 |
Roading |
5,289 |
3,650 |
(1,639) |
|
8,129 |
65% |
14,243 |
Three Waters |
18,444 |
20,546 |
2,102 |
|
40,295 |
46% |
30,834 |
Grand Total |
26,379 |
30,974 |
4,595 |
|
64,948 |
41% |
Statement of Financial Position
The Statement of Financial Position (Balance Sheet) is a new report which will be included in the reports to both Council and to the Audit and Risk Committee. It is included to show the comparisons between actuals and budget. Below the financial position is a table summarising the reserves and the cash balances. This gives assurance that there are available funds to meet the cash financial reserve balances typically included in Council’s set of financial reports.
2020/21 Full Year |
2020/21 YTD March Actual |
STATEMENT OF FINANCIAL POSITION |
2021/22 YTD March |
2021/22 Full Year Revised Budget |
2021/22 Full Year |
$000 |
$000 |
for the period ended 31 March 2022 |
$000 |
$000 |
$000 |
|
|
EQUITY |
|
|
|
392,499 |
382,751 |
Ratepayers equity |
404,031 |
410,719 |
389,661 |
12,318 |
10,009 |
Surplus/(Deficit) |
14,382 |
18,420 |
7,726 |
7,035 |
14,638 |
Council Reserves |
7,905 |
4,176 |
4,177 |
487,476 |
483,506 |
Property revaluation reserve |
487,404 |
496,640 |
496,629 |
(17) |
(20) |
Investment shares fair value revaluation reserve |
(17) |
(20) |
(20) |
80 |
80 |
Restricted reserves |
80 |
80 |
80 |
899,391 |
890,964 |
Total equity |
913,785 |
930,015 |
898,253 |
|
|
REPRESENTED BY: |
|
|
|
|
|
Current assets |
|
|
|
6,514 |
15,051 |
Cash and cash equivalents |
3,594 |
19,896 |
19,896 |
10,000 |
5,000 |
Other financial assets |
5,000 |
8,000 |
8,000 |
4,852 |
1,054 |
Receivables |
3,078 |
3,171 |
3,171 |
- |
- |
Non Current assets held for sale |
- |
- |
- |
5,394 |
2,342 |
Inventories |
6,988 |
(815) |
1,509 |
- |
- |
Investment Bond |
- |
625 |
625 |
26,760 |
23,447 |
Total current assets |
18,660 |
30,877 |
33,201 |
|
|
Less current liabilities |
|
|
|
256 |
495 |
Agency and deposits |
259 |
273 |
273 |
13,254 |
4,078 |
Payables and deferred revenue |
8,900 |
4,705 |
4,705 |
673 |
581 |
Employee entitlements |
697 |
1,010 |
1,010 |
- |
- |
Borrowings and other financial liabilities |
- |
- |
- |
14,183 |
5,154 |
Total current liabilities |
9,856 |
5,988 |
5,988 |
12,577 |
18,293 |
Working capital |
8,804 |
24,889 |
27,213 |
|
|
Non-current assets |
|
|
|
111 |
109 |
Available for sale financial assets |
111 |
109 |
109 |
282 |
295 |
Loans and receivables |
241 |
333 |
333 |
26,030 |
22,830 |
Work in Progress |
47,424 |
60,961 |
26,929 |
852,766 |
846,563 |
Property, plant and equipment |
849,599 |
864,417 |
864,363 |
1,272 |
845 |
Intangible assets |
1,250 |
2,271 |
|
431 |
355 |
Forestry assets |
431 |
357 |
357 |
5,925 |
1,675 |
Investment property |
5,925 |
1,683 |
1,683 |
886,817 |
872,672 |
Total non-current assets |
904,981 |
930,131 |
896,045 |
|
|
Less non-current liabilities |
|
|
|
- |
1 |
Provisions |
- |
5 |
5 |
- |
- |
Borrowings and other financial liabilities |
- |
25,000 |
25,000 |
- |
1 |
Total non-current liabilities |
- |
25,005 |
25,005 |
|
|
|
|
|
|
899,394 |
890,964 |
Net assets (assets minus liabilities) |
913,785 |
930,015 |
898,253 |
This table has rounding (+/- 1)
4. Accounts
Receivable
As at 31 March 2022, Council had $47k outstanding in accounts receivables greater than 90 days. The key contributors over $5k include:
Sundry debtors:
· Top Shelf Productions $5.7k (agreement to fund People on Bikes Series 2)
Resource consents:
· M N Shaw $6.8k (payment plan in place – balance to be paid by 30 June 2022)
Type of Debtor |
Current |
30 Days |
60 Days |
> 90 Days |
Other |
$ 945,991 |
$ 19,260 |
$ 6,479 |
$ 14,769 |
Building Consents |
$ 52,248 |
$ 40,097 |
$ 3,201 |
$ 18,166 |
Resource Consents |
$ 973,637 |
$ 47,203 |
$ 5,415 |
$ 14,813 |
TOTAL |
1,971,876 |
$ 106,560 |
$ 15,095 |
$ 47,747 |
Type of Debtor |
Mar-22 |
Feb-22 |
Jan-22 |
Mar-21 |
Other |
$ 986,498 |
$ 726,097 |
$ 175,546 |
$ 92,016 |
Building Consents |
$ 113,711 |
$ 132,621 |
$ 97,148 |
$ 34,002 |
Resource Consents |
$ 1,041,069 |
$ 92,396 |
$ 84,218 |
$ 192,312 |
TOTAL |
$ 2,141,278 |
$ 951,114 |
$ 356,912 |
$ 318,330 |
Debt is actively managed and monitored and if a debtor is past our three-month threshold, their information is sent to our debt collection agency, Receivables Management Limited.
There is a credit balance of ($77k) in current month outstanding invoices in “under 500”. This relates to building and resource consent debtors where payment has been made in advance of the invoice.
5. Investment
As at 31 March 2022, Council had cash balances of $8.59M, of which term deposits totalling $5M mature within 90 days.
Bank |
Amount |
Term (Month) |
Start Date |
End Date |
Fixed Rate |
KiwiBank |
5,000,000 |
1 |
16 March 2022 |
19 April 2022 |
0.70% |
Weighted average interest rates for all council term deposits is 0.70%.
6. Internal Loans
Forecast closing balance for 30 June 2022 is $4.075M.
OWED BY |
Original Loan |
1 July 2021 |
30 June 2022 Forecast |
Opening Balance |
Closing Balance |
||
Public Toilets |
670,000 |
491,239 |
468,048 |
Tarbert St Bldg |
25,868 |
13,067 |
11,574 |
Alex Town Centre |
94,420 |
49,759 |
44,545 |
Alex Town Centre |
186,398 |
91,041 |
79,921 |
Alex Town Centre |
290,600 |
155,412 |
139,137 |
Centennial Milkbar |
47,821 |
21,284 |
18,192 |
Vincent Grants |
95,000 |
19,000 |
9,500 |
Pioneer Store Naseby |
21,589 |
10,949 |
9,609 |
Water |
867,000 |
717,829 |
691,212 |
ANZ Bank Seismic Strengthening |
180,000 |
149,030 |
143,504 |
Molyneux Pool |
650,000 |
571,900 |
539,400 |
Māniōtoto Hospital |
1,873,000 |
1,775,142 |
1,723,630 |
Alexandra Airport |
218,000 |
204,485 |
197,216 |
Total |
5,219,695 |
4,270,138 |
4,075,488 |
7. External Community Loans
The total amount of external loans at the beginning of the financial year 2021-22 was $189k. As at 31 March 2022, the outstanding balance was $148k. Council has received $40.9k in principal payments and $7.1k in interest payments.
Owed By |
Original Loan |
1 July 2021 Actual Opening Balance |
Principal |
Interest |
31 March 2022 |
Cromwell College |
400,000 |
130,770 |
26,369 |
5,218 |
104,400 |
Māniōtoto Curling |
160,000 |
35,662 |
10,248 |
1,167 |
25,413 |
Oturehua Water |
46,471 |
22,623 |
4,307 |
795 |
18,316 |
|
606,471 |
189,055 |
40,924 |
7,180 |
148,129 |
8. Reserve Funds table
· As at 30 June 2021 the Council has an audited closing reserve funds balance of $7.035M. This reflects the whole district’s reserves and factors in the district-wide reserves which are in deficit at ($16.7M). Refer to Appendix 1.
· Taking the 2020-21 audited Annual Report closing balance and adding 2021-22 income and expenditure, carry forwards and resolutions, the whole district is projected to end the 2021-22 financial year with a closing deficit of ($12.825M).
Appendix 1 - Council Wide Reserve Funds 2021-2022.pdf ⇩
Report author: |
Reviewed and authorised by: |
|
|
Ann McDowall |
Leanne Macdonald |
Finance Manager |
Executive Manager - Corporate Services |
16/05/2022 |
16/05/2022
|
|
22.2.5 Cyber Security, Information and Records Management, and Privacy update
Doc ID: 581244
1. Purpose
To consider an update on:
· Cyber Security Plan 2022-2025
· Information and Records Management Plan 2022-2025
· Privacy Plan
That the report be received.
|
2. Discussion
Information Services in addition to cyber security have been working on plans for information and records management and privacy.
In this report, the following topics will be covered:
Cyber Security Plan 2022-2025
· Audit and plan status
· What is happening in New Zealand?
· What is happening at Central Otago District Council?
· ALGIM Cyber Security Programme update
· Cyber Security programme of work by actions.
Information and Records Management Plan 2022-2025
· Audit and plan status
Future reports will include the following:
· Archives New Zealand Information Management Maturity Assessment update
· Information and Records Management programme of work by actions
Privacy Plan
· Audit and plan status
Future reports will include the following:
· Department of Internal Affairs Privacy Maturity Assessment Framework update
· Privacy programme of work by actions
Cyber Security Plan 2022-2025
Audit and plan status
The new Cyber Security Plan 2022-2025 will be based on the external audit scheduled to start 1 June 2022.
Attached is the draft Cyber Security Plan 2022-2025 that will form the basis of this audit.
Focus areas of cyber security focus since the last report have been on:
· Preparing for the external audit
· User education, training and awareness
· Protective technology improvements to maximise value
· Updating and reviewing actions related to the requirements and controls for the Association of Local Government Information Management (ALGIM) Cyber Security Programme framework
What is happening in New Zealand?
Council utilise Computer Emergency Response Team (CERT) as a resource for cyber security support. CERT NZ works to support businesses, organisations and individuals who are affected (or may be affected) by cyber security incidents. CERT provide trusted and authoritative information and advice, while also collating a profile of the threat landscape in New Zealand.
The following highlights quarter four 2021 cyber security incidents across New Zealand:
More details on the current threat landscape can be found here: Quarter Four Report 2021 | CERT NZ
In addition to the quarterly report, a summary of 2021 is now available: 2021 Report Summary | CERT NZ. Highlights of 2021:
What is happening at Central Otago District Council?
The following outlines what Council protective technologies are doing for the 17 April 2022 to 17 May 2022 period:
· Potentially unwanted applications (PUAs)
Managed Threat Response service over the last 30 days:
ALGIM Cyber Security Programme update
Association of Local Government Information Management (ALGIM) has defined a Cyber Security framework which is powered by SAM for Compliance giving councils the ability to manage and reduce organisational Cyber Security related risk. As part of the programme, councils that demonstrate defined levels of achievement and improvement will receive awards at the ALGIM annual conference.
The latest ALGIM Cyber Security Programme Management Status Report is attached for your information (Appendix 1).
The upcoming external audit will reset Council’s compliance levels.
The following details the current snapshot of how Council is preforming within this framework benchmarked against other Councils:
· The following shows that Council is 82.83% compliant with the framework controls:
· The following shows how Council is tracking against other councils within this framework over the last 12 months:
· The following is a summary of the controls by status:
Overall, Information Services are regularly reviewing the framework once a month, updating controls and working on outstanding actions and improvements.
The following is summary of the improvements within each function:
Identify:
· Governance – Digital and Information Strategy is due to be finalised June 2022, which will include Cyber Security. This is currently with the Leadership Group for final feedback.
Manage
· Access Control – Planned physical security work has been delayed due to COVID-19. Work on remote access agreements with our contractors is being progressed.
· Information and Data Security – USB portable drives access restriction testing is progressing; exemptions are yet to be agreed.
Protect
· Awareness and Training – this is currently the focus, Phriendly Phishing virtual training, reporting and staff education is ongoing. Onsite specialist training has been delayed due to COVID-19.
· Protective Technology – After the core functionality was initially deployed and bedded in, improvements to maximise its value are being investigated and deployed to meet Council policies and standards.
Detect
· Anomalies and Events – Events Management Procedure has been finalised and implemented.
Respond
· Review of the Information and Communication Technology (ICT) Disaster Recovery Plan has been completed. Testing of this updated plan will confirm our ability to respond and meet the business continuity requirements.
Recover
· ICT Disaster Recovery Plan and the Back-up and Recovery Procedure have been completed. Minor testing of recovery solution has been completed. Major testing is being worked through.
The following shows how Council is tracking by each function within the framework when compared to other councils:
The following shows the trend by each function over the last 12 months.
Cyber Security programme of work
The Cyber Security Plan is supported by Cyber Security programme of work. A new programme of work will be prepared as part of the audit and new Cyber Security Plan 2022-2025.
Information and Records Management Plan 2022-2025
Audit and plan status
Staff have been preparing the first Information and Records Management (IRM) Plan.
The purpose of the information and records management plan is to assess how Council currently manages its information and records what actions it needs to undertake to improve that management.
Information and records are key strategic assets of an organisation. These assets need to be actively managed to maintain and improve value. Information and records management assets take many forms, including data and business systems. Our digital and information strategy and this information and records management plan will guide Council to make its current operations more effective by managing information and records.
The new Information and Records Management Plan 2022-2025 will be based on the external audit scheduled to start 1 June 2022.
Attached is the draft Information and Records Management Plan 2022-2025 that will form the basis of this audit.
The Information and Records Management Plan is supported by Information and Records Management programme of work. A new programme of work will be prepared as part of the audit and Information and Records Management Plan 2022-2025.
Privacy Plan
Audit and plan status
Staff have been preparing the first Privacy Plan.
Central Otago customers need to have trust and confidence in the way Council manages its personal information. This plan has a close relationship with Cyber Security Plan, and Information and Records Management Plan.
The purpose of this Privacy Plan is to assess how Council currently protects customer’s personal information and what actions it needs to undertake to improve that protection.
The next steps for the Privacy Plan is to be reviewed by the Executive Team.
Attached is the draft Privacy Plan, including the self-assessment carried out in early 2022. Further assessments will be carried out once the plan is finalised.
Appendix 1 - ALGIM Cyber Security Programme Management Status Report ⇩
Appendix 2 - DRAFT Cyber Security Plan 2022-2024 ⇩
Appendix 3 - DRAFT Information and Records Management Plan 2022-2024 ⇩
Appendix 4 - DRAFT Privacy Plan ⇩
Report author: |
Reviewed and authorised by: |
|
|
Nathan McLeod |
Leanne Macdonald |
IS Manager |
Executive Manager - Corporate Services |
17/05/2022 |
18/05/2022
|
|
22.2.6 Privacy and LGOIMA Requests Policies
Doc ID: 581151
1. Purpose
To note the Privacy Policy and Local Government Official Information and Meetings Act Request Policy are now finalised following incorporation of the recommended changes.
That the report be received. |
2. Discussion
On 25 February 2022, the Audit and Risk Committee supported the Chief Executive approval of the Privacy Policy and Local Government Official Information and Meetings Act (LGOIMA) Request Policy, upon the following changes to be made:
· LGOIMA Request Policy changes included simplification of the charges tables and subject to Staff Delegation Manual in relation to release of information.
· Privacy Policy changes included: expanding the scope to include elected members, Council’s obligations as an employer and staff consideration for personal information.
These changes have been made as per Appendix 1 and 2. Both policies have been approved by the Chief Executive and implemented, including being released on Council’s website and staff intranet.
Further implementation tasks are ongoing for the Privacy Policy, including updating and standardising terms and conditions across all seven Council owned and managed websites.
Appendix 1 - Privacy Policy ⇩
Appendix 2 - LGOIMA Request Policy ⇩
Report author: |
Reviewed and authorised by: |
|
|
Nathan McLeod |
Leanne Macdonald |
IS Manager |
Executive Manager - Corporate Services |
16/05/2022 |
17/05/2022
|
|
22.2.7 Health, Safety and Wellbeing Report
Doc ID: 580825
1. Purpose
To provide an update on the health, safety and wellbeing performance at Central Otago District Council.
That the report be received.
|
2. Discussion
2.1 COVID-19 Management update
Council continues to review its COVID-19 management risk assessments and make any required operational changes.
On April 5, 2022, council lifted the My Vaccine Pass requirement from pools, libraries and i-Sites.
Following the national move to the orange traffic light setting, Council offices returned to operating 50% staff capacity.
2.2 Contractor management
Council has 140 contractors on its Sitewise pre-qualification list. The average score of 89% is consistent with last quarter.
Figure 1. Sitewise contractor scores (retrieved May 10, 2022)
Council continues to improve its contractor monitoring processes. In March 2022, the Capital Projects team trialled a new site observation reporting process. This process will build a record of contractor health and safety performance on Council projects. 12 reports have been submitted through this process to date. The process will be introduced to other areas of the business in June 2022.
Contractors raised seven incidents to Council during the reporting period.
2.3 Incident and injury reports
There were 51 reports made between January-March 2022. These reports include safety observations, near misses, and incidents.
Council’s Risk Management Policy has a five-level risk consequence rating system. This system is used to determine incident severity. A rating of 1 or 2 is considered business as usual. All reports submitted this period were within business as usual.
Figure 2. Council risk consequence ratings (Source: Risk Management Policy)
Graph 1 shows the percentage of completed corrective actions. One action remains in progress this quarter.
Graph 1: Status of corrective actions
2.3.1 Employee incidents
Of the 52 reports submitted, 30 incidents affected employees.
Employees continue to raise health and safety concerns proactively. 70% of employee reports submitted this quarter were proactive.
Graph 2 shows the areas of concern employees are reporting in.
Graph 2: Employee reports by area of concern
2.3.1a Recordable injuries
Recordable injuries include fatalities, lost time injuries (LTI), medical treatment injuries (MTI), first aid injuries (FAI) and non-treatment injuries.
There was one recordable injury during the reporting period January-March 2022.
Reporting period |
Non-treatment injury |
FAI |
LTI |
MTI |
Fatality |
Total recordable injuries |
July-Sept 21 |
2 |
1 |
0 |
0 |
0 |
3 |
Oct-Dec 21 |
5 |
1 |
2 |
0 |
0 |
8 |
Jan-Mar 22 |
1 |
0 |
0 |
0 |
0 |
1 |
Table 2: Recordable injuries (employees)
2.3.1b Lost time injury frequency rate
Council has set the national benchmark for Lost time injury frequency rate (LTIFR) (1.99) as its target. LTIFR measures the number of lost time injuries per 200,000 hours worked.
During the reporting period, Council’s LTIFR has decreased from 2.27 to 2.18.
There were no lost time injuries during the reporting period.
Graph 3: Trend information for LTIFR (lost time injury frequency rate)
Month |
Average LTIFR (YTD) |
No. of injuries |
April 2021 |
0 |
0 |
May 2021 |
0 |
0 |
June 2021 |
1.66 |
1 |
July 2021 |
1.39 |
0 |
August 2021 |
1.19 |
0 |
September 2021 |
1.04 |
0 |
October 2021 |
1.85 |
1 |
November 2021 |
2.50 |
1 |
December 2021 |
2.27 |
0 |
January 2022 |
2.26 |
0 |
February 2022 |
2.22 |
0 |
March 2022 |
2.18 |
0 |
Table 3: Lost time injury frequency rate data
2.3.2 Public incidents
There were 21 incidents involving members of the public during the period January-March 2022. Most incidents occurred at council pools. 19 of those incidents involved injury and are further explained in the public injuries section (2.3.2a) below.
Graph 4: Public incidents by business activity
2.3.2a Public injuries
During the reporting period, there were 19 injuries to members of the public. Graph 5 shows the types of injuries that are occurring.
Reporting period |
Non-treatment injury |
FAI |
MTI |
Fatality |
Total recordable injuries |
July-Sept 21 |
2 |
7 |
0 |
0 |
9 |
Oct-Dec 21 |
0 |
11 |
0 |
0 |
11 |
Jan-Mar 22 |
2 |
17 |
0 |
0 |
19 |
Table 4. Recordable injuries (public)
Graph 5: Public incidents by injury type
2.4 Critical risk
Incidents were reported in all critical risk areas during this reporting period.
Psychosocial hazards (including anti-social behaviour and threatening communications) were the focus area this quarter. Customer Services staff have undertaken de-escalation training. Council continues to support employees to report hazards and incidents related to psychosocial hazards.
Critical risk
|
Existing controls |
New or upcoming controls |
Related incident reports |
Driving and vehicles |
· Vehicle User Policy · E-Roads installed in fleet vehicles · 5-Star ANCAP rated vehicles · Licenced drivers · Fleet inductions for new starters · Annual snow chain fitting training |
· Vehicle User and Safe Driving policy review (including a review of driver training) · The health and safety committee is using E-road reports to recognise safe drivers · Snow chain fitting was held in May 2022
|
1 |
Remote or isolated working |
· Working from Home Policy · Panic buttons · Work plans and risk assessments · Pair or buddy work systems
|
· Procurement project for a lone worker app · Work from home risk assessments
|
1 |
Psychosocial hazards
|
· Employee Assistance Programme (EAP) · Wellbeing programme · Regular 1:1s · Flexible working · Equal Employment Opportunity (EEO), Discrimination, Harassment and Bullying Policy · Performance Management Policy · Fit for Work Programme
|
· De-escalation training completed by new customer services team members · De-escalation training planned for aquatics teams
|
9 |
Biological hazards
|
· High-risk vaccinations programme · Barriers and fences · PPE is provided |
· Reviewed our risk assessments for COVID-19 · Promoted annual flu vaccines
|
12 |
Hazardous chemicals
|
· Chemical register · Display safety data sheets · Appropriate storage · Quantities stored is kept at a minimum · Ventilation and circulation of air is monitored · PPE is provided for handling or working with chemicals · Records of training are maintained · Fire schemes updated with FENZ (chemical registers) · Qualified contractors
|
· A third-party health and safety contractor is supporting aquatics to audit hazardous chemicals procedures and handling practices |
1 |
Table 5. Critical risk and controls
2.5 Training and initiatives
· Health and Safety Representatives will attend Stage 1 and Stage 2 training in May and June 2022.
· Fire warden training will return in the new financial year.
· Flu vaccinations were offered on-site at Alexandra Service Centre in May 2022.
· 43 staff participated in Move it March 2022. This is the first time this initiative has been run remotely.
· Financial wellbeing seminars will run from March-November 2022 in partnership with BNZ.
· Staff supported Pink Shirt Day on May 20, 2022
· New starters in the Customer Services team have completed de-escalation training
The following regular training was completed:
Training |
Jan-Mar 2022 |
Financial YTD |
New staff inductions |
10 |
45 |
First aid |
17 |
42 |
Fire warden |
0 |
25 |
Chain fitting |
13 |
NA |
Table 6. Training register excerpt
Appendix 1 - Risk Management Policy 2020-2021.pdf ⇩
Report author: |
Reviewed and authorised by: |
|
|
Rachel Ennis |
Louise Fleck |
Health, Safety and Wellbeing Officer |
Executive Manager - People and Culture |
19/05/2022 |
19/05/2022
|
|
Doc ID: 582660
1. Purpose
To consider the Chair’s report.
That the report be received.
|
Nil
|
Doc ID: 582662
1. Purpose
To consider the members’ reports.
That the reports be received.
|
Nil
|
22.2.10 June 2022 Governance Report
Doc ID: 581855
1. Purpose
To report on items of general interest, consider the Audit and Risk Committee’s forward work programme and the current status report updates.
That the report be received.
|
2. Discussion
Forward Work Programme
The Audit and Risk Committee’s forward work programme has been included for information (appendix 1).
Status Report
The status report has been updated with actions undertaken since the last meeting (appendix 2).
Appendix 1 - Audit and Risk Forward Work Plan ⇩
Appendix 2 - Audit and Risk Status Update ⇩
Report author: |
Reviewed and authorised by: |
|
|
Wayne McEnteer |
Sanchia Jacobs |
Governance Manager |
Chief Executive Officer |
24/05/2022 |
30/05/2022
|
3 June 2022 |
The date of the next scheduled meeting is 30 September 2022.
3 June 2022 |
10 Resolution to Exclude the Public
That the public be excluded from the following parts of the proceedings of this meeting. The general subject matter 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 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
|