Agenda of Finance and Performance Committee

FINANCE AND PERFORMANCE COMMITTEE
Membership:	10
Meeting Cycle:	Meets on a six weekly basis, as required or at the requisition of the Chair
Quorum:	Half of the members
Reports to:	Council

HUTT CITY COUNCIL

Finance and Performance Committee

Meeting to be held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

Wednesday 4 July 2018 commencing at 5.30pm.

ORDER PAPER

Public Business

1. APOLOGIES

2. PUBLIC COMMENT

Generally up to 30 minutes is set aside for public comment (three minutes per speaker on items appearing on the agenda). Speakers may be asked questions on the matters they raise.

3. CONFLICT OF INTEREST DECLARATIONS

4. Recommendations to Council - 24 July 2018

i) Remuneration and Employment Policy Amendment (18/1139)

Report No. FPC2018/3/201 by the Chief Executive 8

ii) Internal Audit Charter and Internal Audit Plan 2018-2021 (18/946)

Report No. FPC2018/3/186 by the Risk and Assurance Manager 11

Chair’s Recommendation:

“That the recommendations contained in the report be endorsed.”

5. Risk and Assurance Update and Operational Risk Report 2018 (18/945)

Report No. FPC2018/3/185 by the Risk and Assurance Manager 26

Chair’s Recommendation:

“That the recommendations contained in the report be endorsed.”

6. Finance Update (18/1068)

Report No. FPC2018/3/187 by the Budgeting and Reporting Manager 41

Chair’s Recommendation:

“That the recommendation contained in the report be endorsed.”

7. Information Items

a) Health & Safety Officer Due Diligence Report July 2017 to June 2018 (18/1084)

Report No. FPC2018/3/97 by the Health & Safety Manager 84

Chair’s Recommendation:

“That the information be noted and received.”

b) TechnologyOne SaaS Governance Update (18/1086)

Report No. FPC2018/3/98 by the Chief Information Officer 91

Chair’s Recommendation:

“That the information be noted and received.”

c) Finance & Performance Committee Work Programme 2018 (18/1081)

Report No. FPC2018/3/99 by the Committee Advisor 93

Chair’s Recommendation:

“That the information be noted and received.”

8. QUESTIONS

With reference to section 32 of Standing Orders, before putting a question a member shall endeavour to obtain the information. Questions shall be concise and in writing and handed to the Chair prior to the commencement of the meeting.

9. EXCLUSION OF THE PUBLIC

CHAIR'S RECOMMENDATION:

“That the public be excluded from the following parts of the proceedings of this meeting, namely:

10. Appointment of Directors - Seaview Marina Limited, Urban Plus Limited and Hutt City Community Facilities Trust (18/1091)

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:

(A)	(B)	(C)

General subject of the matter to be considered.	Reason for passing this resolution in relation to each matter.	Ground under section 48(1) for the passing of this resolution.


Appointment of Directors - Seaview Marina Limited, Urban Plus Limited and Hutt City Community Facilities Trust.	The withholding of the information is necessary to protect the privacy of natural persons. (s7(2)(a)).	That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.

This resolution is made in reliance on section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or 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 are as specified in Column (B) above.”

Donna Male

COMMITTEE ADVISOR

9 04 July 2018

Finance and Performance Committee

28 June 2018

File: (18/1139)

Report no: FPC2018/3/201

Remuneration and Employment Policy Amendment

Purpose of Report

1. This report is to get a recommendation for Council to adopt a revised Remuneration and Employment Policy.

Recommendations

That the Committee recommends that the Council adopt the revised Remuneration and Employment Policy attached as Appendix 1 to the report.

For the reason that this will make the Policy consistent with the recent Council resolution to increase minimum wages to $20.55 (the current Living Wage) from 1 July 2018.

Background

2. Council adopted a Remuneration and Employment Policy in May 2017. This followed Council decisions to support the Living Wage in principle, and then (after considering certain legal matters) to pay the Living Wage where it could be demonstrated as the most cost effective way to deliver our services.

3. After considering recent developments in government policy, proposed changes to the Local Government Act, and results of surveys on the subject, Council resolved to increase Council’s minimum wage to the current Living Wage with effect from 1 July 2018.

4. This decision is best implemented by making supporting changes to the Remuneration and Employment Policy.

Discussion

5. The proposed new Remuneration and Employment Policy is attached as Appendix 1.

Options

6. The Committee can recommend adoption of the attached revised Remuneration and Employment Policy, any suitable variation to it, or conclude that it should remain unchanged.

Consultation

7. Survey results informed the decisions of the Community Plan Committee and Council when making their decisions in June this year.

Legal Considerations

8. Schedule 7 of the Local Government Act 2002 specifies Council’s ability to adopt a Remuneration and Employment Policy.

9. Careful consideration has been given to the purpose of local government in section 10 of the Local Government Act 2002. Council previously obtained legal advice in relation to the Living Wage that highlighted legal difficulties unless paying the Living Wage was the most cost effective way to deliver services. Other organisations disputed this advice.

10. Since that time there have been some developments. Government has stated an intention to revise the relevant sections of the Local Government Act in a way that will remove this potential impediment. A Bill is currently in the select committee process for that purpose. Government has also announced a plan to significantly increase the statutory minimum wage to a level close to the current Living Wage and to lift public sector employees’ pay right up to the living Wage.

11. After considering all these factors, Council considered that any legal risks were now minimal when resolving to further increase minimum wages for the reasons considered at the time.

Financial Considerations

12. The financial implications of this amendment have already been considered and are incorporated in Council’s Long Term Plan adopted on 28 June 2018.

Appendices

No.	Title	Page
1 ⇩	Remuneration and Employment Policy	10

Author: Tony Stallinger

Chief Executive

Approved By: Brent Kibblewhite

General Manager Corporate Services

11 04 July 2018

Finance and Performance Committee

30 May 2018

File: (18/946)

Report no: FPC2018/3/186

Internal Audit Charter

and Internal Audit Plan 2018-2021

Purpose of Report

1. The purpose of this report is to gain approval from the Finance and Performance Committee for the Internal Audit Charter and Internal Audit Plan 2018-2021.

Recommendations

That the Committee recommends that the Council:

(i) approves the Internal Audit Charter, attached as Appendix 1 to the report;

(ii) agrees with prioritisation of the internal audits; and

(iii) approves the Internal Audit Plan 2018–2021, attached as Appendix 2 to the report.

Background

2. Internal audit, an activity within Risk and Assurance, is to enhance and protect organisational value by providing risk-based and objective assurance, advice and insight.

3. Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

[Definition of internal auditing in the Institute of Internal Auditors Professional Practices Framework, which captures the fundamental purpose, nature, and scope of internal auditing].

Internal Audit Charter

4. Support for the authority of internal audit activity is usually articulated in a statement of function and responsibility, generally referred to as the Audit Charter. It articulates the purpose, mission and authority and provides a framework that allows internal audit to function with independence and objectivity.

5. Presently there is no charter for internal audit activity within Council.

6. Attached as Appendix 1 to this report is a proposed draft internal audit activity charter, which is based on the Institute of Internal Auditors model template for internal audit activity charter, part of the Institute of Internal Auditor’s International Professional Practices Framework. This has been endorsed by the Strategic Leadership Team (SLT).

Internal Audit Plan

7. Attached as Appendix 2 to this report is the proposed draft internal audit plan 2018-2021, which has been endorsed by SLT. The three year rolling work programme has been updated to ensure ongoing relevance with Council’s risk profile.

8. The proposed plan was developed through consultation with senior management to obtain an understanding of the key business objectives, associated risks and in light of risk management processes. The plan has been reviewed and adjusted in response to changes in Council’s business, risks, operations, programmes, systems, and controls.

9. The fraud risk review is already underway, as this was earmarked with Audit New Zealand during their 2016-2017 review. The proposed internal audits are then Revenue, Fees and Charges (non-rates revenue) including cash receipting (a segway from the fraud risk review) and Sensitive Expenditure.

10. The previous internal audit plan 2016-2019 was approved by SLT in December 2016.

Other Considerations

11. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of the local government in that it ensures Internal Audit has a documented purpose, authority and responsibility to carry out internal audit activity, outlined in the proposed internal audit plan for 2018-2021. It does this in a way that is cost-effective because it establishes a risk-based plan to determine the priorities of the internal audit activity, consistent with Council’s goals.

Appendices

No.	Title	Page
1 ⇩	Draft Internal Audit Charter - 2018	14
2 ⇩	Draft Internal Audit Plan 2018-2021	18

Author: Enid Davids

Risk and Assurance Manager

Approved By: Brent Kibblewhite

General Manager Corporate Services

29 04 July 2018

Finance and Performance Committee

30 May 2018

File: (18/945)

Report no: FPC2018/3/185

Risk and Assurance Update

and Operational Risk Report 2018

Purpose of Report

1. The purpose of this report is to update the Committee on risk and assurance actions and activities to maintain and improve Council’s internal control framework and to present the Operational Risk Profile.

Recommendations

It is recommended that the Committee:

(i) notes the information in this report; and

(ii) notes the Operational Risk Profile 2018 as approved by the Strategic Leadership Team, attached as Appendix 1 to the report.

Background

2. The Risk and Assurance Manager provides an update twice a year on the actions and activities to maintain and improve Council’s assurance and risk management framework. The Risk and Assurance Update was last presented to the Finance and Performance Committee on 29 November 2017.

Discussion

Operational Risk Profile

3. Attached as Appendix 1 to the report is the Operational Risk Profile for 2018, which outlines the top operational risks across Council, as approved by the Strategic Leadership Team (SLT) and Risk Management Working Group.

4. Operational risk is uncertainty that arises from internal processes, people and systems or from external events. The profile provides a snap shot high level means of identifying context, risk and treatment actions.

5. Operational risk has been assessed in accordance with the Risk Management System. Risk ratings are derived from a combination of consequence and likelihood assessments for the risk based on the risk ranking matrix. The risk status update provides an indication of a decrease, no change or increase in the risk ranking.

6. The operational risk profile was last presented to the Finance and Performance Committee on 2 August 2017.

7. The risk treatment actions have been updated for activity since the previous profile. The underlying risk factors are dynamic and change overtime. In turn, awareness of changing circumstances and risk factors are met by corresponding activity and treatment actions to address arising opportunities and threats. Risk ratings have mostly remained unchanged. Details for the two changes since the previous update to the Committee are detailed below.

8. Responsibilities and supporting processes of the risk management framework are reinforced regularly. Managers periodically review operational risk in their respective division, identifying emerging themes, and provide assurance on risk treatment actions in place and any issues. Processes are in place for escalation outside of the regular reporting channels. Divisional Managers will next review and update their operational risks in July 2018.

Risk rating changes to previous operational risk profile

9. The rating has increased (worsened) for health and safety risk (#1) serious injury/significant harm of a staff member/contractor/volunteer while carrying out a Council role either out in the field or in a Council facility.

10. This reflects the current challenges with public aggression, which is particularly felt by frontline staff in Community Services (hubs and libraries). Acknowledgment and actions to support staff is underway to ensure all practicable actions are taken. Health and safety plans continue to progress areas that require attention and improvement.

11. A separate Health and Safety update is provided at this Committee meeting.

12. The rating has increased (worsened) for the council facilities risk (#2) serious injury/significant harm of staff/volunteer/contractor/third party/visitors/ customers/public at a Council facility as a result of a building failure. The risk factor for natural hazards has increased following the 14 November 2016 Kaikoura earthquakes. Correspondingly, the likelihood of another event occurring increases. Actions are underway to address our susceptibility to, resilience and preparedness for natural hazards. Including resilience of our Council facilities.

Internal Audit

13. The three year rolling internal audit plan (for 2018-2021) has been updated and is presented in a separate paper at this meeting. That paper also proposes the establishment of an Internal Audit Charter.

14. The Silverstream Landfill internal audit was completed on 19 December 2017. The overall objective was to assess the adequacy and effectiveness of management’s control of operational risk associated with the Silverstream Landfill, and to identify opportunities for improvement. Audit work aimed to avoid gaps and overlaps with other sources of assurance.

15. The Silverstream Landfill internal audit opinion on management control is ‘effective’. The control framework is appropriate and effective. Controls are appropriately designed and executed as intended. Two low rated findings were raised regarding, (a) controls around data maintenance of pricing within the Landfill 3000 system and, (b) controls over the ongoing validity of any/all special pricing arrangements could be improved.

16. Fieldwork for the fraud risk review is in the reporting stage. A full update will be provided in the next Risk and Assurance update.

17. Monitoring processes are in place to track and follow up findings from internal audits, to ensure corrective actions are cleared as the resolution date falls due.

18. Monthly reporting continues to assess management’s compliance with legislative and regulatory requirements. For the 2017/2018 year there have been no significant breaches.

Risk Management Working Group

19. The Risk Management Working Group (RMWG) has met twice since the 29 November 2017 update provided to the Finance and Performance Committee.

20. An updated approach to crisis management and crisis management teams was approved by SLT on 3 April 2018. This simplifies the process and applies to all Council facilities. A test will be undertaken once the plan documentation has been updated.

21. A non-structural review of the Pavilion building was completed late 2017 to ensure it meets the higher requirements necessary for a civil defence operations centre. There is a programme of minor remedial works to ensure current standards are met.

22. A review of the emergency management function and structure is underway, led by the General Manager, City Transformation.

23. The external emergency power supply plugin for the Administration Building is progressing. Once the emergency power feed has been confirmed and tested, a work instruction will be documented. Monthly testing of the Pavilion generator and uninterrupted power supply remains in place.

24. Emergency generator supply retrofit for the Walter Nash Centre (now Council’s disaster recovery site and a community evacuation centre) is progressing and is anticipated to be tested in the second half of 2018. The 2016 Kaikoura earthquakes highlighted and increased the prioritisation of emergency requirements. Retrofitting of Koraunui Stokes Valley Hub, Walter Mildenhall Naenae bowls and future developments for Fraser Park and plans for Naenae and Wainuiomata community hubs will include emergency power.

25. IT security, recovery timeframes and increase availability between production and recovery site was discussed at the RMWG. This will be confirmed once emergency power supply is operational, as above.

26. The Administration Building armed aggression emergency evacuation plan/procedures are also being reviewed.

Other Considerations

27. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of local government in that it provides the Finance and Performance Committee with information to support their governance role. It does this in a way that is cost-effective because it provides assurance on the effective and efficient management of risk within Council.

Appendices

No.	Title	Page
1 ⇩	Operational Risk Profile 2018	30

Author: Enid Davids

Risk and Assurance Manager

Approved By: Brent Kibblewhite

General Manager Corporate Services

44 04 July 2018

Finance and Performance Committee

15 June 2018

File: (18/1068)

Report no: FPC2018/3/187

Finance Update

Purpose of Report

1. The purpose of this report is to present the Council’s year to date financial performance for the 11 months ended 31 May 2018 as well as the forecast for the year ended 30 June 2018.

Recommendations

That the Committee notes Council’s May 2018 year to date financial performance and the full year forecast for the year ending 30 June 2018.

Financial Performance Summary

2. Council’s May 2018 year-to-date performance as well as a full-year forecast to 30 June 2018 is attached as Appendix 1 to the report. A high level summary is provided below.

3. A list of operating and capital works projects is attached as Appendix 2 to the report. A high level summary is provided below.

4. Council’s treasury compliance report as at 31 May 2018 is attached as Appendix 3 to the report.

Net Operating Result – May Year to Date

5. Excluding Community Facilities Trust (CFT) grants, capital subsidies, depreciation and unrealised gains and losses, Council is $2.1M favourable to budget as at 31 May 2018. This is due to additional revenue of $1.5M mainly from additional reserve contributions, consents fees, metered water charges and landfill fees. Additionally, operating expenditure is $0.6M less than planned mainly due to timing of some operating costs and savings in interest expense.

6. Including CFT grants, capital subsidies and depreciation, Council is $3.0M unfavorable to budget. This is mainly due to lower capital subsidies than planned due to later than planned commencement of construction of the shared path projects. Additionally, depreciation is significantly higher than planned due to a budgeting error as a result of the new budgeting system which has now been corrected.

Net Operating Result – Full Year Forecast

7. Excluding CFT grants, capital subsidies, depreciation and unrealised gains and losses, Council is currently expected to finish the financial year $1.3M favourable to budget (previous forecast $1.2M favourable). As noted above, this is mainly due to estimated additional revenue of $2.4M from reserve contributions, consents fees, metered water charges, landfill fees and vested assets.

8. However, this is offset by operating expenditure estimated to be of $1.1M over budget mainly due to additional employee costs, operating software license costs, project costs now being correctly expensed and additional costs being incurred in some activities such as Environmental Consent, Water Supply and Solid Waste which are offset by additional revenue.

9. Including CFT grants, capital subsidies and depreciation, Council is expected to finish the financial year $3.6M unfavourable to budget. As noted above, this is mainly due to lower capital subsidies and higher depreciation than planned.

Gains/Losses on Revaluation of Financial Instruments and Property Revaluations

10. Council has a number of interest rate swap agreements in place to comply with its treasury management policy and to provide some certainty with future interest costs.

11. Due to fluctuations in the interest rate market, the overall value of these agreements is constantly changing. Year to date, there has been a $2.3M unrealised loss in the revaluation of Council’s total interest rate swaps as interest rates have fallen. Council has no intention to realise any interest rate swaps and this revaluation is a non-cash item.

12. The revaluation of Council’s infrastructure assets, land, buildings and parks and reserves for the three years ended 31 December 2017 resulted in total revaluation increase of $72.6M.

Capital Expenditure – May Year to Date

13. Excluding external subsidies, Council is $24.3M favourable to budget. This is mainly due to delays in a number of projects including $2.0M for the Events Centre, $5.7M for Strategic Property Purchases, $4.8M for the shared path projects, $2.4M for Integrated Community Services projects, $2.9M relates to Parks and Reserves projects and the balance is spread across a number of other activities.

Capital Expenditure – Full Year Forecast

14. Excluding external subsidies, Council is expected to be $20.4M favourable to budget at year end. This includes $19.9M of carry-overs to 2018/2019, as approved by Council on 6 June 2018. These carry-overs are mainly due to delays on the shared path projects, strategic property purchases and the Making Places projects.

Asset Sales

15. Asset sales are forecast to be $6.8M under budget mainly due to delays in the sale of Mitchell Park, Copeland St and strategic properties, as well as the option to lease rather than sell the seawall/breakwater to Seaview Marina Limited (SML).

Net Debt

16. Net Debt is currently forecast to be $158.1M at year end, being $1.6M favourable to budget. Council has $20.0M of debt maturing in 2018/2019 and this was pre-funded in June 2018 to best mitigate against both interest rate and liquidity risks at maturity. Funds from pre-funding have been placed on deposit resulting in nil impact to Net Debt at year end.

Annual Leave Liability

17. Annual leave liability at the end of May is slightly higher than May last year. Over the past two years the overall liability has shown a slight downward trend as reflected in the chart below.

Treasury Compliance

18. All limits within the Treasury Risk Management Policy have been fully complied with including debt limits.

Consultation

19. There are no consultation requirements arising from this report.

Legal Considerations

20. There are no legal considerations arising from this report.

Financial Considerations

21. There are no financial considerations in addition to those already noted in this report.

Other Considerations

22. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of the local government in that it provides Councilors with the necessary information to effectively undertake their governance role.

Appendices

No.	Title	Page
1 ⇩	Financial Tables for the Period Ended 31 May 2018	45
2 ⇩	Projects List for the Period Ended 31 May 2018	68
3 ⇩	Treasury Compliance Report for the Period Ended 31 May 2018	82

Author: Philip Benseman

Budgeting and Reporting Manager

Author: Mark de Haast

Chief Financial Officer

Reviewed By: Brent Kibblewhite

General Manager Corporate Services

Approved By: Tony Stallinger

Chief Executive

90 04 July 2018

Finance and Performance Committee

19 June 2018

File: (18/1084)

Report no: FPC2018/3/97

Health & Safety

Officer Due Diligence Report

July 2017 to June 2018

Purpose

1. To provide the Committee with health and safety information to assist them in fulfilling their due diligence duties as described under the Health and Safety at Work Act 2015 (HSW Act).

Recommendation

That the report be noted and received.

Background

Elected Members Due Diligence Duties

2. Council is described as a Person Conducting a Business or Undertaking (PCBU) under the HSW Act. The duty of a PCBU under the HSW Act is to ensure so far as reasonably practicable the safety of its workers and ‘others’ whilst work is being carried out. The Mayor and Councillors are referred to as officers under the HSW Act and are required to help the PCBU comply with this duty and they do this by performing due diligence. Due diligence includes taking reasonable steps:

a) to ensure that Council has and implements, processes for complying with any duty under the HSW Act;

b) to gain an understanding of the nature of Council’s operations and generally of the hazards and risks associated with our operations;

c) to ensure the business has appropriate resources and processes to eliminate or minimise risk to health and safety;

d) to ensure the business has processes for receiving, considering and responding in a timely way information about incidents, hazards, and risk;

e) to acquire, and keep up-to-date knowledge of workplace health and safety matters; and

f) to verify the provision and use of any resources and processes.

Our Health & Safety Strategy to 2021

3. To provide the best local government services and be amongst the best in providing health and safety excellence we have taken a look at where we are now and where we need to be by 2021. Our health and safety strategic goals are focused on

Our People - our people are informed, capable and assured

Our Processes - our processes and systems are enabling, agile and integrated

Our Equipment - our assets and equipment are fit for purpose and maintained.

4. By achieving this we will be managing health and safety effectively and efficiently. The approach we are using provides consistency in direction of activity for the organisation over the next three years.

To date Council is progressing well to achieve these goals, examples include:

· a new transparent health and safety online system, ‘Assura’, enabling:

a) easy staff incident reporting through a staff portal; and

b) visibility of our hazard management systems and more access to relevant information (standards, code of practices, guidelines and information sheets);

· promotion of a new cultural change tagline ‘thinksafe – worksafe – homesafe’;

· a vastly improved new employee induction process; and

· targeted ‘high hazard’ staff training including aggression and violence de-escalation, heights training, table saw use accreditation, using mobile elevated platforms training.

Health & Safety Report July 2017- June 2018

Workplace Notifiable Events

5. We report all notifiable events in our workplace to Worksafe New Zealand. As well as serious injuries we also report any notifiable incidents (high risk near misses), where serious harm or death may have occurred but did not.

6. There has been one notifiable injury this year when a staff member caught their leg on a cardboard storage box left on the floor. Our staff member received a long deep gash in their lower leg which required stitching. The storage box was removed from the floor and stored appropriately. WorkSafe was informed of the accident and no further action has been taken by Worksafe at the time of writing this report.

Summary of Incidents

7. Table 1 below shows the number of staff and customers workplace incidents that have occurred in each financial quarter from 1 July 2017 to June 2018.

Accidents –121 accidents occurred on Council worksites this year and of these 77 required onsite first aid treatments, 28 required no treatment and 16 required referral to a medical professional. Considering the amount of customers using our facilities and the nature of services provided by Council, this is a satisfactory result, however we can do better as we believe all accidents are preventable and we work towards this goal.

Near Misses - The Health and Safety team encourage staff to report all incidents including near misses. Near misses are our chance to learn, be made aware of potential hazards and put controls in place to minimise or eliminate risks. There were 99 near miss incidents involving staff reported over the last 12 months. Of the near misses reported, the vast majority can be attributed to verbal abuse from the public to our staff members resulting in no injuries (psychologically or physically). The remaining near misses were associated with equipment failure and work practices and Council has taken appropriate action to minimise or stop reoccurrence.

Staff Pain and Discomfort - These incidents relate to staff who are feeling bodily pain or discomfort whilst working. The majority of staff reports received are mainly attributed to incorrect ergonomic postures used whilst working at workstations, ie, neck, shoulder, back, arm aches and pains, and can remedied by advising staff of best practice methods of work ergonomics or supplying additional ergonomic tools (ergonomic keyboards/mouse, wrist supports, foot stools), to correct posture and support the recovery of their injuries.

Table 1: Health & Safety Incidents Q1 -17 to Q4 -18

	Q1 Jul-Sep 17	Q2 Oct-Dec 17	Q3 Jan- Mar 18	Q4 Apr-Jun 18
Total Accidents	39	33	29	20
LTI (Medical)	2	2	0	0
Non LTI (Medical)	3	2	4	3
Non LTI (First Aid)	26	21	20	10
Non LTI (Non-Medical)	8	8	5	7
Near Miss	30	27	34	8
Staff Pain & Discomfort	4	4	4	2

Graph 1: Health & Safety Incidents Q1 -17 to Q4 -18 / Trend line

8. By adding a trend line to these statistics this infers that the overall number of reported health and safety incidents at Council over the past financial year is decreasing.

Lost Time Injuries

9. Lost Time Injury (LTI) is an important measure of the effectiveness of our injury prevention initiatives. The definition of a LTI is a staff member that has been signed off sick by a medical professional due to receiving a workplace injury. Council has implemented a number of injury prevention initiatives since October 2017 to reduce our exposure to LTI’s including:

· inviting staff to participate in ‘being prepared for work’ including stretching and moving classes;

· providing online manual handling training to staff, guidance information and ensuring manual handling is one of the top of mind topics in staff health and safety meetings where appropriate; and

· inviting ACC representatives to discuss other injury prevention with our managers.

10. For the year ending 30 June 2018 Council has had a total of four lost time injuries totalling 177 lost work days, all four injuries occurred between July and December 2017. There have been no further LTI’s reported in 2018. 105 of the 177 lost work days are for a single LTI for a staff member working for the Community Facilities Trust who was off work with a back injury. Other LTI injuries include a torn Achilles tendon, a broken hand and a shoulder ligament injury.

Health & Safety Compliance

External Compliance

11. External compliance includes legislation, codes of practice, industry standards, best practice guidelines and audits. Council has recently passed an external Council wide health & safety audit based against the standard AS/NZS 4801:2001 Occupational health and safety management systems.

12. Council has also ensured we are compliant with two major health and safety regulation requirements rolled out in the last 12 months, including the Hazardous Substances 2017 and Asbestos Regulations 2016 (Asbestos Management Plan to be completed by 1 April 2018).

Internal Compliance

13. Internal compliance includes review of policies, procedures and completion of audits such as reviews of reported incidents and hazards and the effectiveness of controls. The health and safety team and contract managers have completed 29 external audits on our worksites and contractors this year. All health and safety processes, policies, guidelines and forms have been reviewed in the past 12 months.

Hazard Management

14. Hazard registers contain details of our known hazards at different Council sites. Our health and safety software Assura allows staff to record new hazards which are reviewed by the managers, Health and Safety team and health and safety committee regularly. At the time of reporting Council had no outstanding critical hazards/risks, however a top priority for hazard/risk reduction this year has been providing staff with extra training and support around safety against public aggression and violence. This still remains our top priority going forward into 2018/2019.

15. All hazard registers across Council facilities are regularly reviewed and updated in consultation with staff and managers from each of the sites.

Employee Participation

Health and Safety Committees & Employee Participation

16. Our Health and Safety Committee have met six times in the last 12 months. Where possible, SLT members will attend Health and Safety Committee meetings as part of their due diligence obligations.

17. Our health & safety system Assura also provides an application allowing staff to easily report good and bad safety suggestions. This aside, all staff are encouraged to participate in discussion of health and safety matters within their team meetings.

Health and Safety Training and Wellness Initiatives

18. Listed below are the health and safety training programmes and wellness initiatives along with the number of attendees (#) held over the last 12 months. Note that the amount of Lifeguard Safety Induction Training is not included in these statistics but will be in future reports.

H&S Training Completed	Attendees
Aggression and Violence De-escalation Training	94
St John First Aid	70
Workplace Induction / Safety Passport (Online)	45
Drug and Alcohol Awareness Training	32
H&S Essentials Training	23
Workstation Ergonomics (Online)	21
Manual Handling (Online)	5
Using Mobile Elevated Platforms	4
Working at Heights	4
Health & Safety Representative Training	3
ICAM Advanced Investigation Techniques	3
Fire extinguisher training	1
Scaffolding Safety	1

19. The following Wellness topics were implemented during the past year (attendance figures not recorded).

Wellness Initiatives

Flu Vaccination

Stretch Classes

Weekly Meditation & Pilates Classes

6 week Fitness Challenge (Nourished AS)

Men’s Health Month

Women’s Health Month

Contractor Management

20. The Health and Safety at Work Act 2015 requires all Persons Conducting Business or Undertaking (PCBU) to consult, cooperate and coordinate with each other. Council has been working with our contractor managers and contractors to identify and establish a solid preferred contractor database (those with proven good health and safety systems, processes and practices), and has established an audit schedule for existing contractors. On top of Council Contract managers meeting regularly with contractors, we also monitor contractor health and safety by receiving monthly reports from several large core contractors involved in higher risk work for us, for example, Downers, Fulton Hogan, Intergroup, however more engagement in health and safety with our less high profile contractors is required.

Event Management

21. There has been a gradual increase in the frequency and sophistication of events held across the City and while these have been highly successful they increase Council’s risk profile for health and safety. We will be working more closely with the Events Team in this key area to identify more opportunities to make our events even safer.

Appendices

There are no appendices for this report.

Author: Dave Tyson

Health & Safety Manager

Approved By: Brent Kibblewhite

General Manager Corporate Services

92 04 July 2018

Finance and Performance Committee

19 June 2018

File: (18/1086)

Report no: FPC2018/3/98

TechnologyOne SaaS Governance Update

To provide the Finance and Performance Committee with an update on the TechnologyOne SaaS Project and Project Governance Structure.

Recommendation

That the report be noted and received.

Background

1. At the Finance and Performance Committee meeting on 2May 2018 the business case to move Council’s TechnologyOne software to SaaS (Software as a Service) was approved.

2. The Finance and Performance Committee requested an update at the next meeting on the governance procedures that would be put in place for the project.

Governance

3. Progress is being made on establishing a governance group. The group will align to the Prince2 Project Management governance group structure and consist of a Senior Manager, Senior User representative (Divisional Manager), CIO, Project Manager and an external quality assurance representative.

4. I have a proposal from KPMG to participate on the governance group as the external representative. They will provide assurance that the project is set up to deliver successful outcomes. The scope of their assurance work will include the following aspects of project management controls:

Initiation	Scope and scope change	Organisational Change
Structure	Risk and Issues	Vendor Management
Governance	Reporting	Quality
Planning	Cost Management	Training
Team and Resource	Go-Live Readiness	Closure

Project Update

5. On the approval of budget, we entered into the final contract negotiations with TechnologyOne. This is progressing with the aim to have a contract signed by the end of June 2018.

6. We are currently advertising for a new role of Business Transformation Manager who will take the project management lead.

7. On signing of the contract the project team and governance group will be established and project plans and timeframes confirmed.

8. At this stage the tentative Go-Live timeframe for Technology SaaS is March 2019.

Appendices

There are no appendices for this report.

Author: Lyndon Allott

Chief Information Officer

Approved By: Tony Stallinger

Chief Executive

Attachment 1

Finance & Performance Committee Work Programme 2018

Cycle 1 28 February	Officer	For Council
Notice of Motion	Cr Barry
Rates Postponement Scheme for Residential Ratepayers Aged 65 and over	B Kibblewhite	·
Draft SOIs for CCOs – CFT, SML, UPL	B Cato	·
Draft SOI for LGFA	B Kibblewhite
Six Monthly Reports for CCOs	B Kibblewhite
Audit NZ Final Management Report	D Newth
Six Monthly Report – Huia Pool Development and Funding	M Sherwood
Finance Update	B Kibblewhite
Appointment of Director SML and UPL	B Cato	·
Finance & Performance Work Programme	A Doornebosch

Cycle 2 2 May	Officer	For Council
CCO Lending	M de Haast	·
Update of Agreement with GWRC to collect rates	M de Haast
Tax Risk Management Update	D Newth
Council Asset Revaluations	D Newth
Renewal of Council’s Line of Credit	M de Haast
Six Monthly Strategic Property Update	G Craig
Business Case – TechOne SaaS Proposal	L Allott
Education Delegation to Minoh, Japan & Taizhou, China	L Goss-Wallace
Finance Update	M de Haast
Appointment of Directors to CFT	B Cato	·
Finance & Performance Work Programme	A Doornebosch

Cycle 3 4 July	Officer	For Council
Risk and Assurance Update and Operational Risk Register	E Davids
Internal Audit Charter and Internal Audit Plan 2018 - 2021	E Davids	·
Remuneration and Employment Policy Amendment	T Stallinger	·
Finance Update	M de Haast
Health & Safety Update	D Tyson
Technology One SaaS Governance Procedures	L Allott
Appointment of Directors to UPL/CFT/SML	B Cato	·
Finance & Performance Work Programme	Committee Advisor

Cycle 4 26 September	Officer	For Council
Annual Reports for CCOs – CFT, SML, UPL	M de Haast	·
Standard and Poor’s Credit Rating Review	M de Haast	·
Audit NZ Interim Management Report	D Newth
2017/18 Provisional Financial Result	D Newth
Six Monthly Report – Huia Pool Development & Funding	M Sherwood
Operational Cost Increases and User Charges	M Sherwood
Finance Update	M de Haast
Technology One SaaS Update	L Allott
Report on The Dowse Exhibits	M de Haast
Sale & Supply of Alcohol (Fees) Regulations 2013 – Regulation 19 (1) – Reporting by Territorial Authorities	D Bentley
Finance & Performance Work Programme	Committee Advisor
17 October	Officer	For Council
Hutt City Council’s Annual Report	J Askin/M de Haast	·
Audit NZ Final Management Report	D Newth	·
Annual Report for LGFA	M de Haast	·

Cycle 5 28 November	Officer	For Council
2018/19 Annual Plan Timetable and Assumptions	J Askin/M de Haast
Risk and Assurance Update and Strategic Risk Register	E Davids
Six Monthly Strategic Property Update	G Craig	·
Finance Update	M de Haast
Insurance Update	M de Haast
2019/20 Revenue Increase and Cost Reduction Targets Update	M de Haast
Technology One SaaS Update	L Allott
Health & Safety Update	D Tyson
Activity Report – Organisation	Finance/Legal/HR/Elected Members
Finance & Performance Work Programme	Committee Advisor

Pending

Rates Differential 10 Year Plan – M de Haast/W Moore

Fraser Park Sportsville Update – Including progress against FPS Business Case – M Reid – June 2019

Redesign of GWRC Bill – M de Haast

Deputy Mayor D Bassett	Cr G Barratt
Cr J Briggs	Cr MJ Cousins
Cr S Edwards	Cr M Lulich

Cr L Sutton	Mayor WR Wallace (ex-officio)

Determine and monitor:

Consider and make recommendations to Council:

General: