Risk and Audit Committee Meeting Minutes

16 September 2020


   MINUTES OF Central HAwkes Bay District Council
EXtraordinary Risk and Audit Committee Meeting
HELD AT THE Council Chamber, 28-32 Ruataniwha Street, Waipawa
ON Wednesday, 16 September 2020 AT 10:00am


PRESENT:              Mr Neil Bain (Chair)

                                 Mayor Alex Walker

Cr Tim Aitken (attended via audiovisual link – Zoom)

Cr Gerard Minehan

Cr Brent Muggeridge

Cr Jerry Greer



Monique Davidson (Chief Executive)

Brent Chamberlain (Chief Financial Officer)

Joshua Lloyd (Group Manager, Community Infrastructure and Development)

Bridget Gibson (Governance and Support Officer)

Kieron Wright (Ernst & Young)

1            Apologies



2            Declarations of Conflicts of Interest


3            Standing Orders

Committee Resolution  

Moved:       Mayor Alex Walker

Seconded:  Cr Jerry Greer

THAT the following standing orders are suspended for the duration of the meeting:

·      20.2 Time limits on speakers

·      20.5 Members may speak only once

·      20.6 Limits on number of speakers

And that Option C under section 21 General procedures for speaking and moving motions be used for the meeting.

Standing orders are recommended to be suspended to enable members to engage in discussion in a free and frank manner.




4            Report Section

4.1         Draft Annual Report for the Year Ended 30 June 2020


The matter for consideration by the Council is to receive the Draft Annual Report for the Year Ended 30 June 2020.

Committee Resolution  

Moved:       Cr Brent Muggeridge

Seconded:  Mayor Alex Walker

That, having considered all matters raised in the report :

a)    the Risk and Assurance Committee receive the Draft Annual Report 2019/2020; and

b)    the Risk and Assurance Committee endorse the adoption of the Annual Report to Council subject to the Chair’s approval of requested amendments.



Mr Chamberlain presented the report.

It is noted that the CHBDC Annual Report is still in draft form and is subject to amendments before adoption by Council at the recommendation of the Risk and Assurance Committee.

Introduction and Overview:

·         Response to Covid-19 and Drought:

Pg.27 agenda – provides an overview on how Covid has impacted Council.  Accounts receivable/debtors additional information on response. Significant that Covid-19 has been adequately reflected throughout the financials.

·         Working across Hawke’s Bay pg. 32:

Essentially reflects the Hawke’s Bay Council’s working together. Shared IT support across the region is reflected by the sharing of the website formats, and the IT Department has a contract with Hastings IT who support CHBDC through helpdesk support.  Cyber security, phone systems and other IT services are shared between CHBDC and Hastings Council.

·         Financial Performance:

Further commentary needs to be added on the topic of higher personnel costs. Articulation around the summary requires more detail.

·         Compliance and responsibility:

The final report content will be consistent with last year’s audit report there is one anomaly in the Covid-19 management that will be picked up and expanded on.

·         Community Leadership Group – pg. 46

Comparison between last year and this year’s non-financial reporting will be added to this section.

·         Planning and Regulatory:

Going forward, payments to personnel and payments to suppliers could be separated. A short section on contract management and how the outsourcing is going on aggregate.  Contractors relative to budget could be outlined next year to give transparency to personnel versus supplier.

·         Solid Waste pg. 61:

That commentary surrounding the impacts of Coivd-19 for e.g. the stop of recycling due to lockdown be included in the  non-financial measures.

·         Recreation and Community Facilities – pg 76:

Waipukurau Library being closed for seismic issues will be noted in the Report.

·         Financial Information – pg 88:

Debt control benchmark - a planned tabular summary of what makes up nett debt versus planned debt would be a useful addition to future Annual Reports.

·         Statement of Financial Position pg. 93.

Accrued Interest on Long Term Debt heading to be changed to offer easier understanding on the figure displayed.

·         Statement of Changes in Equity

Transfer to special funds of $125,000 — some clarity in this area to be added.

·         Financial Impact Statement pg. 97

Disclosure of Councillor fees note 15 page 26 – Mr Chamberlain to check that the elected members’ remuneration is disclosed accurately. Amendment to be made. Descriptions of the models of responsibility to be included to reflect decisions on remuneration.

Pg. 120 -  summary of internal debt and external debt to be explained in a separate table, with a description, to provide more transparency and understanding for the reader.. A report to be brought to the Committee on how the allocation of external and internal debt across functions is reported.



Committee Resolution  

Moved:       Mayor Alex Walker

Seconded:  Cr Gerard Minehan

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:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

5.1 - Ernst Young Management Report - Audit Findings

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(f)(i) - free and frank expression of opinions by or between or to members or officers or employees of any local authority

s48(1)(a)(i) - 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 would exist under section 6 or section 7



6            Date of Next Meeting


THAT the next meeting of the Central Hawke's Bay District Council Risk and Assurance Committee be held on 16 September 2020.



7            Time of Closure


The Meeting closed at 12:01.


The minutes of this meeting were confirmed at the Risk and Audit Committee Meeting held on 12 November 2020.