HuttCity_TeAwaKairangi_BLACK_AGENDA_COVER

 

 

Komiti Iti Ahumoni I Tūraru
Audit and Risk Subcommittee

 

 

20 September 2022

 

 

Order Paper for the meeting to be held in the

Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt,

on:

 

 

Wednesday 28 September 2022 commencing at 4.00pm

 

The meeting will be livestreamed on Council’s Facebook page.

Members of the public wishing to speak to an item on the agenda are asked to contact

democraticservicesteam@huttcity.govt.nz

 

Membership

 

 

 Suzanne Tindal (Independent Chair)

Mayor C Barry (Deputy Chair)

Cr J Briggs

Cr S Edwards

Cr A Mitchell

Cr N Shaw

 

 

 

 

For the dates and times of Council Meetings please visit www.huttcity.govt.nz

 

Have your say

You can speak under public comment to items on the agenda to the Mayor and Councillors at this meeting. Please let us know by noon the working day before the meeting. You can do this by emailing DemocraticServicesTeam@huttcity.govt.nz or calling the Democratic Services Team on 04 570 6666 | 0800 HUTT CITY

 

 


AUDIT & RISK SUBCOMMITTEE
Membership:	                     Independent Chair and 7 Members
	Audit and Risk Subcommittee members should be appointed so that the subcommittee has a diversity of governance skills, experiences and personal qualities. Between them, the members should bring a mix of the following attributes:
1.	Broad governance experience;
2.	Familiarity with risk management disciplines;
3.	Understanding of internal control and assurance frameworks;
4.	 An understanding of financial and non-financial performance reporting;
5.	A good understanding of the roles of internal and external audit; and
6.	A sound understanding of the local government sector.
Use of the matrix below has assisted other councils to consider the best fit for membership of an Audit and Risk Committee.
Quorum:	Half of the members
Meeting Cycle:	Meets on an eight weekly basis or as required
Reports to:	Council

HuttCity_TeAwaKairangi_SCREEN_MEDRES

 

 

OVERVIEW:

This Subcommittee has a monitoring and advisory role in reviewing the effectiveness of the manner in which Council discharges its responsibilities in respect to governance, risk management and internal control.

The Committee is primarily aligned with the Office of the Chief Executive.

Its areas of focus are:

 

§   Oversight of risk management and assurance across the Council Group with respect to risk that is significant

§   Internal and external audit and assurance

§   Health, safety and wellbeing

§   Business continuity and resilience

§   Integrity and investigations

§   Monitoring of compliance with laws and regulations

§   Significant projects, programmes of work and procurement, focussing on the appropriate management of risk

§   The LTP, Annual Report and other external financial reports required by statute.

 

PURPOSE:

To carry out a monitoring and advisory role and provide objective advice and recommendations around the effectiveness of the manner in which Council discharges its responsibilities in respect to governance frameworks, risk management, internal control systems and the Council Group’s financial management practices.

 

DELEGATIONS FOR THE SUBCOMMITTEES AREAS OF FOCUS:

§   The Subcommittee has no decision-making powers other than those in these Terms of Reference.

§   The Subcommittee may request expert advice through the Chief Executive where necessary.

§   The Subcommittee may make recommendations to the Council and/or Chief Executive.

 

Risk Management:

§  Review, approve and monitor the implementation of the risk management framework and strategy, including significant risks to the Council Group.

§  Review the effectiveness of risk management and internal control systems including all material financial, operational, compliance and other material controls. This includes legislative compliance (including health and safety), significant projects and programmes of work, and significant procurement.

§  Review risk management reports identifying new and/or emerging risks.

Assurance:

§  Review and approve, and monitor the implementation of, the assurance strategy and detailed internal audit coverage and annual work plans.

§  Review the coordination between the risk and assurance functions, including the integration of the Council’s risk profile with the internal audit programme. This includes assurance over all material financial, operational, compliance and other material controls. This includes legislative compliance (including health and safety), significant projects and programmes of work, and significant procurement.

§  Review the reports of the assurance functions dealing with findings, conclusions and recommendations (including assurance over risks pertaining to Council Controlled Organisations and Council Controlled Trading Organisations that are significant to the Council Group).

§  Review and monitor management’s responsiveness to the findings and recommendations, inquiring into the reasons that any recommendation is not acted upon.

Fraud and Integrity:

§  Review, approve and monitor the implementation of the assurance strategy, including the fraud and integrity aspects.

§  Review the arrangements in place by which staff may, in confidence, raise concerns about possible improprieties in matters of financial reporting, financial control or any other matters, and ensure that there is proportionate and independent investigation of such matters and appropriate follow-up action.

§  Review the procedures in relation to the prevention, detection, reporting and investigation of bribery and fraud.

§  Review and monitor policy and process to manage conflicts of interest amongst elected and appointed members, management, staff, consultants and contractors.

§  Review internal and external reports related to possible improprieties, ethics, bribery and fraud related incidents.


 

Statutory Reporting:

§  Review and monitor the integrity of the Long Term Plan and Annual Report including statutory financial statements and any other formal announcements relating to the Council’s financial performance, focussing particularly on the areas listed below.

§  Compliance with, and the appropriate application of, relevant accounting policies, practises and accounting standards.

§  Compliance with applicable legal requirements relevant to statutory reporting.

§  The consistency of application of accounting pollicies, across reporting periods, and the Council Group.

§  Changes to accounting policies and practices that may affect the way that accounts are presented.

§  Any decisions involving significant judgement, estimation or uncertainty.

§  The extent to which financial statements are affected by any unusual transactions and the way they are disclosed.

§  The disclosures of contingent liabilities and contingent assets.

§  The clarity of disclosures generally.

§  The basis for the adoption of the going concern assumption.

§  Significant adjustments resulting from the audit.

External Audit:

§   Discuss with the external auditor, before the audit commences, the nature, scope and fees of the external audit, areas of audit focus, and error and materiality levels.

§   Review, with the external auditors, representations required by elected members and senior management, including representations as to the fraud and integrity control environment.

§   Review the external auditor’s management letter and management responses, and inquire into reasons for any recommendations not acted upon.

§   Where required, the Chair may ask a senior representative of the Office of the Auditor General to attend meetings of the Subcommittee to discuss the office’s plans, findings and other matters of mutual interest.

Interaction with Council Controlled Organisations and Council Controlled Trading Organisations:

§   Other committees dealing with CCO and CCTO matters may refer matters to the Audit & Risk Subcommittee for review and advice.

§   This Subcommittee will inquire to ensure adequate processes at a governance level exist to identify and manage risks within a CCO. Where an identified risk may impact on Council or the Council Group, the Subcommittee will also ensure that all affected entities are aware of and are appropriately managing the risk.

 

Matrix of Experience, Skills and Personal Qualities

Experience, Skills and Personal Qualities

Member A

Member B

Member C

Member D

Independent Chairperson

The recommended combination of experience is:

·           financial reporting

 

 

 

 

 

·           broad governance experience

 

 

 

 

 

·           familiarity with risk management disciplines

 

 

 

 

 

·           understanding of internal control and assurance frameworks

 

 

 

 

 

·           good understanding of the roles of internal and external audit

 

 

 

 

 

·           local government expertise

 

 

 

 

 

For an “advisory-oriented” audit committee, particular emphasis should be placed on:

·           Strategy

 

 

 

 

 

·           Performance management

 

 

 

 

 

·           Risk management disciplines

 

 

 

 

 

In determining the composition of the audit committee, the combined experience, skills, and personal qualities of audit committee members is critical. Members should bring:

·           the ability to act independently and objectively

 

 

 

 

 

·           the ability to ask relevant and pertinent questions, and evaluate the answers

 

 

 

 

 

·           the ability to work constructively with management to achieve improvements

 

 

 

 

 

·           an appreciation of the public entity’s culture and values, and a determination to uphold these

 

 

 

 

 

·           a proactive approach to advising the governing body and chief executive of matters that require further attention

 

 

 

 

 

·           business acumen

 

 

 

 

 

·           appropriate diligence, time, effort, and commitment

 

 

 

 

 

·           the ability to explain technical matters in their field to other members of the audit committee

 

 

 

 

 

 

    


HUTT CITY COUNCIL

 

Komiti Iti Ahumoni I Tūraru | Audit and Risk Subcommittee

 

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

 Wednesday 28 September 2022 commencing at 4.00pm.

 

ORDER PAPER

 

Public Business

 

1.       APOLOGIES

No apologies have been received.

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

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.

4.       Recommendation to Council | TE KAUNIHERA O TE AWA KAIRANGI - 4 October 2022

Hutt City Council Group Annual Report 2021/22 (22/2233)

Report No. ARSC2022/4/192 by the Principal Advisor, Strategic and Business Planning      9

Chair’s Recommendation:

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

 

5.       Payroll tax compliance evaluation update (22/2264)

Report No. ARSC2022/4/14 by the Finance Project Manager                             253

Chair’s Recommendation:

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

 


 

6.       ComplyWith (22/2271)

Report No. ARSC2022/4/193 by the Legal Co-ordinator                                    258

Chair’s Recommendation:

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

 

7.       Information Items

a)      Hutt City Council Three Waters Growth Study 2022 (22/2314)

Report No. ARSC2022/4/160 by the Strategic Advisor                             265

Chair’s Recommendation:

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

 

b)      Petone Wharf Update (22/2319)

The Director Neighbourhoods and Communities, Andrea Blackshaw will present a verbal update on the Petone Wharf project.

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.

 

 

 

Katherine Davey

DEMOCRACY ADVISOR

 


                                                                                       1                                                28 September 2022

Audit and Risk Subcommittee

05 September 2022

 

 

 

File: (22/2233)

 

 

 

 

Report no: ARSC2022/4/192

 

Hutt City Council Group Annual Report 2021/22

 

Purpose of Report

1.    The purpose of this report is to progress the review and approval of Council’s Group Annual Report and Summary Annual Report 2021/22.

Recommendations

That the Subcommittee recommends that Council endorses the adoption of the Group Annual Report for the year ended 30 June 2022 (attached as Appendix 1 to the report), subject to satisfactory resolution of the following outstanding items:

(a)     completion of final design and minor editorial changes;

(b)     completion of the external audit and any adjustments required; and

(c)     receipt of final audit clearance from Audit NZ;

For the reason of meeting legislative requirements and to inform and engage with the community

 

Background

2.    The Local Government Act 2002 requires local authorities to prepare, complete and adopt (by resolution) an Annual Report within four months after the end of the financial year to which it relates.  The Annual Report, and a summary of the information it contains, must be made publicly available within one month after its adoption.  The statutory deadline for adoption of the Annual Report has been extended this year to 31 December 2022 due to audit resourcing constraints.

3.    There is a requirement to prepare both a Full Annual Report (FAR) and a Summary Annual Report (SAR). Both these documents are required to be audited, although not the full reports but rather parts of each of the FAR and SAR.  The auditor’s opinion will state exactly what pages of the FAR and SAR have been audited.  The SAR includes the front section of FAR and the summary sections of non-financial and financial performance results.

4.    The final FAR must contain the Auditor-General’s (audit) report and the SAR must contain the Auditor-General’s report on whether the summary represents, fairly and consistently, the information regarding the major matters dealt with in the Annual Report.

5.    Information to be included in the Annual Report includes:

      Groups of activities;  Capital expenditure for groups of activities; Statement of service provision;  Funding impact statement for groups of activities; Council-controlled organisations;  Financial Statements;  Funding impact statement;  Rating base information;  Reserve funds;  Key person remuneration (includes elected members);  Employee staffing levels and remuneration; Severance payments; Statement of compliance;  Activities undertaken to establish and maintain processes to provide opportunities for Māori to contribute to the decision-making processes of the local authority.

Discussion

Outline of high level process

6.    The Audit and Risk Subcommittee’s (ARSC) role, from the terms of reference of the Subcommittee, is to review and monitor the integrity of the Annual Report including statutory financial statements and any other formal announcements relating to the Council’s financial performance, focussing particularly on: compliance with accounting and legal requirements, consistency of application of accounting policies and changes to these; disclosures; significant adjustments resulting from the audit.

7.    Policy, Finance and Strategy Committee’s (PFSC) role is to monitor the integrity of reported performance information.

8.    The external audit plan was presented to ARSC on 28 June 2022, including the approach to be undertaken by Audit NZ. The interim audit was completed in July 2022 in line with these plans and progressed well. Audit NZ has not produced an interim management report as there were no new management recommendations from this audit.

9.    The final audit will start on 19 September 2022 and the audited FAR and SAR are expected to be available for Council adoption in December 2022. The statutory deadline for the completion of the FAR and SAR is
31 December 2022. Current resource deployment by Audit NZ means that we are expecting the audit to be completed by the end of November 2022. This assumes that any technical matters are resolved in a timely manner.

10.  Wellington Water Ltd has advised that they expect their audit and Annual Report to be completed in late November 2022. It is unclear at this stage what the audit outcome will be regarding the two performance measure issues that were highlighted in the last audit (customer complaints and water loss).

11.  A briefing of the ARSC was undertaken on 12 September 2022 to provide an opportunity to review the unaudited draft FAR content and to provide feedback to officers. Feedback received has been considered and incorporated in the draft Annual Report (Appendix 1) where appropriate.

12.  Post the elections in October 2022, the new incoming Council will determine the approach and timing of the adoption of the audited FAR and SAR.

13.  The planned order of governance review and sign-off processes for the Group Annual Report 2021/22 is as follows:

·    Review of the interim unaudited performance results by Policy, Finance and Strategy Committee on 6 September 2022;

·    Review by ARSC of FAR key auditable content on 28 September 2022, FAR endorsed and recommended by ARSC to Council;

·    The new incoming Council, post the October 2022 elections, will determine the approach and timing of the adoption of the FAR and SAR;

·    Following receipt of audit opinion, the new Council will approve and adopt the Group Annual Report 2021/22; both FAR and SAR before the end of December 2022.

Risk and mitigations

Risk of error, omission and non-compliance in preparation

14.  There is a risk that errors or non-compliance with legislation and accounting standards could occur in the preparation of the Annual Report.  To mitigate this risk, quality assurance reviews were performed on the results and commentary.  The reviews focused on accuracy, completeness and reasonableness of disclosures and legislative compliance.

15.  External specialist advice has been sought where deemed necessary.  This included specialist support for asset revaluations from Aon New Zealand Ltd and actuarial specialist advice from Eriksen Global in regards to the landfill aftercare provision.

Reviews of accuracy, completeness and fairness

16.  Several reviews of the annual report take place by officers with differing levels and areas of involvement in reporting.

17.  These reviews have been undertaken by:

·    Members of the project team collating the various content, including leads from Finance, Communication and Strategy and Planning;

·    Key Team leads and Business Unit Managers;

·    The Project Oversight Group, whose membership includes Director of Strategy and Engagement, Head of Strategy and Planning, Group Chief Financial Officer, Head of Customer, Communications and Engagement, Head of Chief Executive’s Office, Head of Mayor’s Office and Kaitatari Tumuaki Māori;

·    The Corporate Leadership Team.

18.  All the technical quality assurance reviewers who perform reviews from a financial perspective are Chartered Accountant qualified or equivalent and have the appropriate technical accounting skills and knowledge.

Options

19.  There are no options to consider.

Publicity considerations

Communication plans for the Annual Report

20.  We plan to deliver relevant and concise messages to the community on publication of the Annual Report in December 2022 via our website, media release, social media, and direct email to stakeholders. 

21.  The FAR and SAR will be available within one month of adoption by the Council, including publication on the Council’s website, hard copies available in key Council facilities and accompanied by public notices and social media collateral.

Climate Change Impact and Considerations

22.  The Annual Report provides an opportunity to highlight 2021/22 climate change responses.

Legal Considerations

23.  The Local Government Act 2020 sets out the information and timing requirements for the Annual Report.  The 2021/22 Annual Report and Summary must be completed and adopted by 31 December 2022, and then made publicly available within one month.

Financial Considerations

24.  To meet accounting standards, there were some key adjustments recorded in the financial statements for this 30 June 2022 year end:

·    An increase in the valuation of property, plant and equipment of $199M across the Group, with Aon New Zealand Ltd providing technical specialist advice and support. This increases the total value of assets of the Group up to $1.8B;

·    An increase to the provision for landfill aftercare of $2.1M, which follows an actuarial assessment by Eriksens Global. This increases the provision to $8.5M;

·    Software as a Service projects (part of the Go Digital Programme) were initially budgeted as capital expenditure, however due to accounting standard changes this has been updated to be operational expenditure resulting in a transfer of $1.5M of costs.

25.  The unaudited performance measure results, financial results and major projects information are in line with those presented to PFSC on 6 September 2022.

26.  The final audited group results will be presented to the new Council before the end of December 2022, together with commentary about any changes that have been made.

Appendices

No.

Title

Page

1

Draft Group Annual Report 2021/22

14

    

 

 

 

 

 

Author: Marty De Boer

Principal Advisor, Strategic and Business Planning

 

 

 

Author: Darrin Newth

Financial Accounting Manager

 

 

 

 

 

 

Reviewed By: Jenny Livschitz

Group Chief Financial Officer

 

 

 

Approved By: Jarred Griffiths

Director Strategy and Engagement

 


Attachment 1

Draft Group Annual Report 2021/22

 











































































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                                                                                       1                                                28 September 2022

Audit and Risk Subcommittee

09 September 2022

 

 

 

File: (22/2264)

 

 

 

 

Report no: ARSC2022/4/14

 

Payroll tax compliance evaluation update

 

 

 

 

Purpose of report

1.    Council approved a tax risk governance framework in May 2018. At a meeting of the subcommittee in April 2022, the subcommittee noted and received a report on the payroll tax compliance evaluation, a requirement of this governance framework.  The evaluation was conducted in January 2022 and reported on in March and June 2022.

2.    The subcommittee also noted and received the planned actions arising from the evaluation recommendations.  The purpose of this report is to provide an update on the actions.

 

Recommendation

That the Subcommittee notes the closure of the 14 evaluation recommendations attached as Appendix 1 to the report.

 

Progress on the actions

3.    PwC determined that Council had a high level of Pay As You Earn (PAYE) compliance, and commended Council on its commitment to meeting its PAYE compliance obligations and ensuring its tax risks are managed appropriately.

4.    Notwithstanding this high level of compliance by Council, certain recommendations were made by PwC. At June 2022, 12 out of the 14 recommendations had been closed.  Since June 2022, the remaining two recommendations have been closed.

5.    The detailed list of actions is attached in Appendix 1.

 

 

 

 

Appendices

No.

Title

Page

1

Detailed update of audit findings

255

    

 

 

 

 

 

 

Author: Angela Leong

Finance Project Manager

 

 

 

 

 

 

Approved By: Jenny Livschitz

Group Chief Financial Officer

 

 

 

 

 

 

 


Attachment 1

Detailed update of audit findings

 




                                                                                       1                                                28 September 2022

Audit and Risk Subcommittee

12 September 2022

 

 

 

File: (22/2271)

 

 

 

 

Report no: ARSC2022/4/193

 

ComplyWith

 

Purpose of Report

1.    The purpose of this report is to present the key findings from the ComplyWith survey on legal compliance.

Recommendations

That the Subcommittee notes the contents of the report which details the key results of the ComplyWith legal compliance survey namely:

(a)           the second survey recorded 49 non-compliances, out of which 17 are already resolved; and 

(b)the remaining 32 joins the 12 unresolved Corrective Actions from the previous survey, bringing the total number of outstanding Corrective Actions to 44 as of 15 September 2022.

 

Background

2.    Council uses ‘ComplyWith’, a legal compliance management tool, to identify and monitor legal compliance risks. During the implementation stage in September 2021, legal obligations were carefully mapped to the responsible roles within Council. These staff complete an online compliance survey twice a year which enables them to proactively identify legal risks and issues. The ‘Corrective Actions’ function on ComplyWith allows staff to monitor risks and set Action Plans which encourage staff to lay out the steps needed to take to resolve non-compliances. The function also helps track unresolved risks by sending staff regular reminders.

3.    The first ComplyWith survey went out to 101 staff on 1 November 2021. The survey covered the period between 1 May to 31 October 2021 and staff reported on obligations under 109 Acts and Regulations. A total of 91 non-compliances were recorded, out of which 79 are resolved to date. The remaining 12 Corrective Actions are being reviewed regularly by staff and the Corporate Leadership Team (CLT).

Discussion

4.    The second ComplyWith survey was released on 1 July 2022 and covered the period between 1 November 2021 to 30 June 2022. A total of 92 staff completed the survey who answered 2,501 obligations under 103 Acts and Regulations.

5.    The second survey recorded 49 non-compliances, out of which 17 are already resolved.  The remaining 32 joins the 12 unresolved Corrective Actions from the previous survey, bringing the total number of outstanding Corrective Actions to 44 to date.

6.    All 44 Corrective Actions have an Action Plan set in place and are periodically reviewed by staff and the CLT. Appendix 1 of the report provides a high-level summary of the 44 outstanding Corrective Actions.

 

7.    The next survey will go out on 25 January 2023 following the Wellington Anniversary weekend. The survey will look back at the period between 1 July to 31 December 2022.

Overview of key results from the second survey

Governance

8.    One non-compliance was reported where delegated authority was taken on by the Inspections Team Lead until the Building Manager was on board. Action already taken to arrange delegations to the correct officer.

Local Government

9.    Two non-compliances were recorded against obligations under the Local Government Act 2002 and Local Government (Financial Reporting and Prudence) Regulations 2014.

·     The Remuneration Policy is scheduled for review as part of the People & Capability team workplan for 2022/23.

·     The refund of Development Contributions funds that was collected for a project in Eastbourne is no longer proceeding for now. Recent information of three waters growth related investment requirements indicates that a project of a similar nature to the one removed is likely to be required.

Employment

10.    One non-compliance under the Employment Relations Act 2000 and the Children’s Act 2014 was recorded. The non-compliance relates to the Holidays Act Remediation Project and will be resolved by the end of October. Action has been taken to update the process to ensure effective management of staff vetting requirements.


 

Health & Safety

11.  Four non-compliances were recorded under this category. The development and rollout of Health & Safety induction training for staff and leaders, upgrade of Assura, Council’s Health & Safety system, and the review of the Health & Safety Policy have all contributed to the improvement of this category’s compliancy rate since the previous survey.

·     The emergency procedures have recently been reviewed, updated, and published on Te Pātaka (staff intranet).  The distribution of printed copies to all sites will be completed by the end of September.

·     A partial non-compliance relating to the storage of pest animal bait was identified. The Parks & Reserves team are completing a stocktake of all products stored on site, which will ensure the Hazards Register is up to date.

·     It was also noted that there may be some confusion around the obligation for overlapping duties. Targeted information will be sent to staff with this obligation, with a particular focus on contract management responsibilities. 

Buildings

12.     A total of 12 non-compliances under the Building Act 2004 were recorded. Two of the remaining non-compliances relate to the International Accreditation New Zealand (IANZ) audit requirements which have been subsequently cleared (see paragraph below). The remaining non-compliances relate to not meeting statutory timeframes for regulatory functions which are reported through to Council’s Infrastructure and Regulatory Committee.

·     INAZ audits technical functions/procedures carried out against building regulations. IANZ also regulates the ability of Building Consent Authorities (Councils) to issue consents and other functions, i.e., holds approval of accreditation of BCA regulations.

·     The IANZ audit team was on site from 24th to 26th of August assessing Council’s BCA functions on specific elements of compliance with building regulations. The outcome of the audit was that Council’s building consent authority is viewed as being low risk. The next audit will be in February 2024, which means Council has moved to a two-year review cycle. Findings of the initial report of IANZ will be fully reported through to Council’s Infrastructure & Regulatory Committee.

·     Systems and processes are being improved and resources are being put in place to clear backlogs and to assist in meeting statutory deadlines/ requirements.

·     In response to the non-compliance recorded against the obligation under the Fire & Emergency NZ Act 2017 and (Fire Safety, Evacuation Procedures and Evacuation Schemes) Regulations 2018, action is being taken to distribute the updated Emergency Procedure flip chart to all sites.


 

Environment

13.  Action is being taken to ensure local plans are continually updated. Staff turnover, lack of experienced Civil Defence Emergency Management staff and BAU commitments were identified as factors that challenge the regionally agreed staffing targets. To address this, investment in training for staff has been conducive and its progression is shown through foundational training that is being conducted. A new Controller has been resourced and recruitment of Alternate Controllers is an ongoing resourcing initiative that is being taken to support the Emergency Management Lead.

14.  Systems and processes are being improved and resources are being put in place to comply with statutory deadlines under the Resource Management Act 1991 and Regulations.

15.  Requirements for destroying wild animals were not previously documented as part of Council’s processes. Officers are now consulting with Greater Wellington for advice on the process and documentation required. A Council resolution will be sought and plans on destruction of wild animals will be submitted to the Minister of Conservation prior to a request for permission.

Health

16.  Three non-compliances were recorded under the Food Act 2014, Food Regulations 2015, and Australia New Zealand Food Standards Code. Resourcing is in place to clear the backlog created during the COVID-19 pandemic. 

Managing Information

17.  Compliance rate of this category has improved since the previous survey. It is evident that there is an increase in reporting of privacy incidents signalling an improved awareness of privacy and the associated processes. Action is being taken to provide guidance and advice related to secure areas, disposal of personal information, the correction of personal information, and privacy statements to further improve staff awareness.

18.  A breach was recorded of an instance where personal information was published on the Council website relating to five liquor license certificates. Prompt action was taken where Council legal team was advised of the error and personal information immediately taken off the website.

Climate Change Impact and Considerations

19.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.


 

Appendices

No.

Title

Page

1

Appendix 1 - High-level Summary of Outstanding Corrective Actions

263

    

 

 

 

 

 

Author: Lakna Siriwardena

Legal Co-ordinator

 

 

 

 

 

 

Approved By: Bradley Cato

Chief Legal Officer

 


Attachment 1

Appendix 1 - High-level Summary of Outstanding Corrective Actions

 


 


                                                                                       1                                                28 September 2022

Audit and Risk Subcommittee

19 September 2022

 

 

 

File: (22/2314)

 

 

 

 

Report no: ARSC2022/4/160

 

Hutt City Council Three Waters Growth Study 2022

 

 

 

 

 

Recommendation

That the report be noted and received.

 

Purpose of report

 

1.    Wellington Water Limited (WWL) presented a summary of its work on the Three Waters Growth Study to Council at a briefing on 31 August 2022. The Growth Study (Growth Study) was undertaken over a two-year period to assess the anticipated forecast population growth for Lower Hutt and identify three water infrastructure improvements to accommodate this growth over the next thirty years.

Background

 

2.    The key findings of the Growth Study are:

·    $1.27B is required over 30 years to meet the demand of future population growth, and to bring existing networks to target levels of service;

·    18% of this funding – $0.23B – is budgeted for in Hutt City Council’s current Long-Term Plan 2021-31;

·    On average $35M in additional funding will be needed per year for the next 30 years, to meet growth demands and bring networks to target levels of service; and

·    Stormwater improvements make up 64 per cent ($810M) of the estimated investment to provide these essential services for the expected population growth.

3.    At the Audit and Risk Subcommittee meeting on 30 August 2022 the Chief Executive provided an update on the Growth Study. The Subcommittee requested officers consider and report back on managing associated risk arising from the Growth Study findings, including:

a.   Environmental including climate change,

b.   Funding and financing,

c.   Community impact and service levels

d.   Communications and stake holder engagement.

4.    Since this meeting of this Subcommittee, officers have met with WWL to discuss the findings and consider the financial implications in relation to the current Long Term Plan (2021-2031) and the Annual Plan 2023/24.

5.    With an estimated $1.27B investment over the next 30 years required to meet predicted growth and/or levels of service, officers are working on a prioritisation framework to identify possible timing of the investment, noting that only $0.23B of the $1.27B is in the current Long Term Plan.

6.    This new investment is in addition to the large increase in investment which Council has committed in the current LTP to renew ageing three waters infrastructure and address a backlog of deferred renewals.

7.    Further meetings with WWL are planned over the next few weeks so that officers will be able to brief the incoming Council and provide options for consideration in December 2022 for the draft 2023/24 Annual Plan.

8.    Risks associated with the Study findings will be evaluated over the next few months and reported to Council in early 2023. This work will be done within the context of the Government led Three Waters Reform for which there are a number of transitional planning risks which will also need to be closely managed.

Appendices

There are no appendices for this report.   

 

 

 

Author: Bruce Hodgins

Strategic Advisor

 

 

 

 

 

 

Approved By: Jo Miller

Chief Executive