Agenda of Risk and Assurance Committee meeting

Audit and Risk Committee meeting Minutes

23 November 2022

DRAFT

MINUTES OF Carterton District Council
Audit and Risk Committee meeting
HELD AT THE Carterton Events Centre, 50 Holloway St, Carterton
ON Wednesday, 23 November 2022 AT 9:30 am

PRESENT: Philip Jones (Chair), Deputy Mayor Dale Williams (Deputy Chair), Mayor Ron Mark, Cr Steve Cretney, Cr Grace Ayling, Marty Sebire (Hurunui-o-Rangi Marae representative)

IN ATTENDANCE: Elected members

Cr Brian Deller, Cr Steve Gallon

Other

Jacques du Toit (Audit NZ) 9.30 – 9.55 am

Council staff

Geoff Hamilton (Chief Executive), Kelly Vatselias (Corporate Services Manager), Geri Brooking (People and Wellbeing Manager), Glenda Seville (Community Services and Facilities Manager), Solitaire Robertson (Planning and Regulatory Services Manager), Johannes Ferreira (Infrastructure Services Manager), Jody Dalziel (Health, Safety and Wellbeing Advisor 9.30 – 10.30 am), Elisa Brown (Communications and Engagement Manager), Marcus Anselm (Communications and Engagement Coordinator), Robyn Blue (Democratic Services Officer)

1 Karakia Timatanga

The meeting opened with a karakia led by M Sebire.

2 Apologies

There were no apologies received.

3 Conflicts of Interests Declaration

There were no conflicts of interest declared.

4 Public Forum

There was no public forum.

5 Reports

5.1 Health, Safety and Wellbeing Update

1. Purpose

This report updates the Audit and Risk Committee on recent health, safety and wellbeing (HS&W) activities.

MOVED

That the Committee:

1. Receives the report.

2. Notes the actions that are being undertaken in response to Council’s responsibility for Health & Safety and Wellbeing.

P Jones / M Sebire

CARRIED

5.2 Progress update on Audit NZ recommendations

1. Purpose

The purpose of this paper is to update the Committee on the progress achieved to date responding to the recommendations presented by Audit NZ, arising from their previous audits.

NOTED

· Councils are having challenges with the assessment of water samples as the role of Drinking Water Assessor was disbanded in the change from assessors being appointed by DHBs to the development of a Water Regulator. Results now need to be independently assessed. Audit NZ is working with the technical team at OAG on auditing the standards (monitoring and sampling processes etc).

MOVED

That the Committee:

1. Receives the report.

2. Notes the progress being made to meet the recommendations made by Audit New Zealand.

Cr S Cretney / Deputy Mayor D Williams

CARRIED

5.3 Treasury Update Report

1. Purpose

The purpose of the report is to provide the Committee with an update on Council’s current Treasury position.

MOVED

That the Committee:

2. Receives the report.

3. Notes the current Treasury position and compliance with policy limits, except for the breach in the debt funding maturity profile.

Deputy Mayor D Williams / Cr S Cretney

CARRIED

5.4 Proposed Audit and Risk Committee schedule for 2023 year

1. Purpose

For the committee to review and amend/make comment to the proposed work programme contained below.

NOTED

· The following amendments to the Audit & Risk Annual work programme:

o The Annual Report Timeline will come to the May Audit & Risk meeting.

o Another committee meeting may need to be scheduled to review the draft Annual Report.

o The full Risk Register will come to the February committee meeting, and risk updates will be provided at subsequent meetings.

· The Council and Committee meeting schedule for 2023 will come to the 7 December 2022 Council meeting for approval.

· A Risk Workshop will be held in late January / early February. This will drive the Terms of Reference of the Committee and possible changes to the frequency of meetings.

MOVED

That the Committee:

1. Receives the report.

2. Notes the amendments to the Audit & Risk Annual Work Programme.

P Jones / Mayor R Mark

CARRIED

6 Exclusion of the Public

RESOLUTION TO EXCLUDE THE PUBLIC

MOVED

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

6.1 - IT Security and Data Management Update

s7(2)(e) - the withholding of the information is necessary to avoid prejudice to measures that prevent or mitigate material loss to members of the public

s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage

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

6.2 - Chief Executive 2022/2023 Performance Review

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

MOVED

That Council moves from Open Council into Closed Council.

Deputy Mayor D Williams / Cr S Cretney

CARRIED

MOVED

That Council moves out of Closed Council into Open Council.

P Jones / Cr S Cretney

CARRIED

7 Karakia WhakamUtunga

The meeting closed with a karakia led by M Sebire.

The meeting closed at 12.02 pm

Minutes confirmed: ……………………………………

Date: ...................................................

Risk and Assurance Committee meeting Agenda

22 February 2023

6 Reports

6.1 Health, Safety and Wellbeing Update

1. Purpose

This report updates the Audit and Risk Committee on recent health, safety and wellbeing (HS&W) activities.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. FOCUS OF ACTIVITIES

The main focus for the reporting period, November 2022 – January 2023, has been responding to continued adverse weather events, ongoing illness and COVID-19, and recruiting for staff vacancies.

3.1 ADVERSE WEATHER IMPACTS

Extreme weather conditions continue to place pressure on our operational and customer service teams. Service demands have not only been to address road and water network impacts, but also to our own infrastructure, particularly inundation at the Wastewater Treatment Plant and Dog Pound facilities.

Our teams have also been providing response support to coastal communities during the recent cyclones, with ongoing liaison to address significant flooding vulnerability at Flatpoint.

3.2 COVID-19 AND SEASONAL ILLNESSES

COVID-19 and illness continue to impact teams. It appears we are currently experiencing a new COVID-19 wave due to the Kraken variant. Occurrences still remain at only 1-2 cases at a time however, meaning teams are able to manage absences and continue providing services.

Safety protocols and risk mitigations are still in place and include staff regularly RAT testing, working from home if symptomatic or close contacts, maintaining distancing where possible, and ensuring good hygiene habits.

3.3 STAFF VACANCIES

A number of teams have been covering staff vacancies, 3 of which were due to retirements in December.

7 roles have recently been filled, including 3 casual or fixed term (externally funded) roles.

We currently have 7 vacancies across 5 teams.

4. GENERAL RISK MONITORING

4.1 HEALTH AND SAFETY INCIDENTS

Reporting of incidents by staff, including near miss reporting, continues to be consistent across all departments. Staff are reminded regularly of our various ways to report incidents and near misses through our staff newsletter, digital noticeboard and posters in staff lunchrooms. The H&S Committee continues to work actively and be leaders in HS&W for the Council.

For this period, incidents were reported as follows:

· 3 near miss reports

· 3 incidents causing damage

· 1 incident resulting in minor injury

· 2 environmental incidents

Follow up actions:

Two of the incidents reported provided opportunities to review and improve policies and processes:

1. Incident resulting in damage

Undertaking a routine enquiry, a staff member was approached by an aggressive member of the public who punched and kicked the CDC vehicle. The staff member was not physically harmed however EAP Services support was offered. The vehicle damage required repair and is covered by insurance.

The staff member captured some footage of the incident on their body camera, including an admission of fault. The matter is being followed up by Police.

We have reviewed our Working Alone policies, associated Standard Operating Procedures (SOPs), and updated the Hazard Register category – Working alone and working remotely.

Working Alone is already one of the 5 Biggest H&S Risks monitored by the Committee.

2. Environmental incident

During a visit to a property, a resident’s dog ran in front of the CDC vehicle as it was being driven at low speed. The dog was struck and died as a result.

The staff member was offered EAP services, and post incident drug and alcohol testing process was undertaken in accordance with our policy.

We have updated the Hazard Register category - Using/driving vehicles.

The H&S Committee and HS&W Advisor have reviewed all incidents and are satisfied that the responsible managers and team leaders are taking appropriate actions in each case. None of the accidents have highlighted major systemic failings.

4.2 CONTRACTORS

Contractors are one of our five biggest risks. Each Committee meeting, the number of contractor audits conducted by staff are reported to provide assurance that the contractor, and staff, are managing H&S risks appropriately. Two of the audits are reported in detail.

The number of audits undertaken for the reporting period was 4.

Contractor 1

· Contractor SiteWise assessment results in SiteWise 91% (Gold status.)

· Review of SiteWise assessment shows they received lower scores in providing evidence of the company’s H&S Policy and Procedures and Records of regular H&S meetings being held. The contractor has been contacted and requested further information be given to SiteWise to raise the scores on those questions.

· The contractor had minor incident while undertaking work with CDC. No one was hurt, and no major damage occurred. Hire machinery suffered minor damage. The contractor reported the incident verbally to CDC immediately following the incident and a written incident report was forwarded the next day.

Contractor 2

· The contractor joined SiteWise at CDC’s request (October 2022) as we use them regularly so require them to be a preferred contractor.

· Reassessments must be done within 6 months of the last assessment, or they are required to undertake an annual assessment.

· The contractor has received an initial low score (46%) as they have not yet submitted enough evidence of their H&S process and practises.

· The HS&W advisors from both CDC and MDC have offered to work with the contractor to assist them in getting to the required minimum score (75%).

· The contractor has also been offered the opportunity to take advantage of the free SiteWise workshops which offer help and guidance for companies to achieve green status.

4.3 VEHICLE AND DRIVER SAFETY

Managers and Team Leaders regularly monitor speed and safe driving behaviour.

Speed Monitoring

Speed recording is at low levels, reflecting staff taking leave over the holiday period. Overall, we still remain well below the national industry average. Regular speed reports continue to be provided to managers to ensure compliance and follow up of breaches.

*Data is taken from the Argus Tracking System installed in all Carterton District Council vehicles. The line graph shows risk points per vehicle, comparing Carterton District Council to the industry average. Risk points are incurred due to speeding where more speed equals more points, and sustained speed equals more points.

4.4 GENERAL ACTIVTIES

An audit of first aid kits and fire extinguishers in all buildings and vehicles has been completed and necessary supplies are being ordered and/or replaced. Copies of the CDC incident reporting form have been placed in all first aid kits.

Most waters SOPs have been reviewed and are to be updated.

Impact alert sensors have been activated in CDC vehicles excluding tractors, mowers and trailers.

5. ENGAGING WITH OUR PEOPLE

5.1 HEALTH AND SAFETY (H&S) COMMITTEE

The Committee meet bi-monthly to report on HS&W issues, and to review incidents, near misses and hazards. The Committee remains well engaged and committed to leading HS&W across the Council. There are ten members representing all teams across the council and supported by the HS&W Advisor.

The Committee have had their first meeting for 2023 which include planning priorities and activities for the year. Two substantial pieces of work are the review of the Wellbeing Strategy and the Hazard Register.

5.2 2022 – 2025 HEALTH & SAFETY (H&S) STRATEGY ACTION PLAN

The HS&W Committee reviewed the Action Plan at their February meeting and set priorities for 2023 as follows:

· Completing the pre-qualification process of our contractors

· Completing a stocktake on all PPE

· Creating a database of PPE stock and role specific PPE

· Talking with staff to identify what the three biggest risks in their role are.

5.3 STAFF POLICIES

Review Schedule Policies

The following policies have been reviewed:

· Equal Employment Opportunities Policy

· Family Violence Policy

· Privacy

· Staff Reimbursement policy (replaced by Sensitive Expenditure).

For upcoming review:

· Complaints Policy

· Protected Disclosures Policy

· Robbery Policy

· Harassment Policy

· Staff Training Policy.

5.4 STAFF WELLBEING

Staff wellbeing remains one of our ‘Top 5 Risks’ with ongoing pressures and uncertainty driven by a number of factors including COVID-19 impacts, staff vacancies, adverse weather, and local government reforms.

Our people leaders are acutely aware of these pressures on their teams, and are actively checking in with staff, encouraging periods of leave, and rearranging priorities where possible. We have also had 5 fixed term staff supporting our Operations Teams over this busy time.

Staff Wellbeing Strategy

The Wellbeing Strategy and Action Plan was developed through consultation with staff, and details objectives and outcomes and is due for review in 2023.

The broad priorities for the year are reviewing the performance development framework including supporting more professional development, increasing social club and council-wide activities and connections, and enhancing people leaders’ competencies and leadership skills.

The Action Plan focus for this quarter are:

· Creating job swapping opportunities

· Re-engagement of staff social club

· Taituarā HS&W survey for all staff

· Preparation for Relay for Life 2023

· Promotion of national wellbeing messages:

o Aotearoa Bike Month

o Walk2Work Day

o International Women’s Day

o World Day for H&S at Work

o World Health Day

5.5 TRAINING AND DEVELOPMENT

Emergency Management

Seven staff completed their EOC Foundation Course in October, with a further five staff scheduled for February. This training provides an introduction to general emergency management, and more specifically for staff that may be required to work in the EOC and Community Hubs in response to an emergency.

In December, our Incident Management Team undertook training to review the response to an emergency in our district. With numerous weather-related issues over the past few months, the Team is very capable in leading robust and appropriate responses.

Leadership Development

Seven team leaders and managers will be attending a leadership development workshop to build upon their existing experience and expertise, and further develop skills, tools and knowledge models. The training has been developed specifically for Carterton and South Wairarapa District Council staff with a focus on transformational leadership, leading through change and uncertainty, and coaching for performance.

5.6 EMPLOYEE ASSISTANCE PROGRAMME

The Employee Assistance Programme (EAP) is a workplace wellness programme designed to boost staff performance by proactively helping them resolve personal and work issues. The programme offers confidential and short-term support that assists with a variety of issues, including financial, legal, physical and mental health. EAPs are an essential part of supporting the health and wellbeing of Council staff, increasing productivity and encouraging a positive work environment.

1 staff member accessed EAP services in this reporting period.

6. FIVE BIGGEST HEALTH AND SAFETY RISKS

The five biggest H&S risks are identified and actively monitored to ensure control and reduction measures are in place.

Currently the five biggest risks we are focusing on are:

1. Contractors

2. Working alone and remotely

3. Under reporting

4. Behaviour

5. Staff wellbeing

Risk

Controls and reduction measures

Actions

Contractors

Council hires contractors because it doesn’t always have the expertise or capacity to undertake the activities.

Contractors pose a risk principally because we have little control over their staff and their work standards while they are on the job. It is not possible for us to supervise them at a micro level. We are reliant on them to employ staff who are trained and competent to undertake the work assigned while at all times observing safe practices and their obligations under the Health and Safety at Work Act.

· SiteWise contractor management system

· Contractor briefing and induction processes

· Site safety checklists

· H&S plans included in procurement process

· Regular contractor audits

· All CDC contractors are being moved to SiteWise, an online contractor management platform. H&S information is provided and assessed. An assessment score of 75% or over indicates competency. At present 82% of CDC contractors are at competency level. We are working with contractors that have not yet achieved the 75% assessment mark.

IN PROGESS.

· Managers and team leaders will be receiving training on the reviewed contractor processes for Sitewise.

IN PROGESS.

· Contractor COVID 19 safety plans and protocols are reviewed to ensure alignment with council protocols and MOH guidelines.

ONGOING.

Working Alone and Remotely

Being such a small organisation, it is often impossible for staff to work in teams or even in pairs. Staff are often required to work alone and remotely, where in some cases poor cell phone coverage is an additional factor.

With the introduction of flexible working arrangements due to COVID-19, we have staff working from home more than we have had in the past.

· Staff policies:

o Working From Home Policy

o Remote Working Guidelines

· Appropriate communication devices and body cameras

· Sign in/sign out systems

· Leadership support

· Garmin refresher training, and Working Alone refresher training will be co-ordinated in house with those staff that work alone.

IN PROGRESS.

· Working Alone policies and associated Standard Operating Procedures (SOPs) reviewed.

COMPLETE.

· Hazard Register category – Working alone and working remotely updated.

COMPLETE.

Under Reporting

While there is a good level of reporting any physical accidents, the risk of under-reporting of near misses needs to be constantly monitored.

This is due to a combination of staff thinking “nothing happened so why report it,” and the perceived amount of time required to make a report.

· Staff policies:

o H&S Policy

· Employment Agreement and Job Description obligations

· H&S induction process

· H&S communications through posters, T.V. screen notices, and staff newsletters

· Staff notebooks

· “Sh!t That Was Close” Campaign

· H&S Committee

· Staff meeting, and Leaders Roopu, agenda item

· ELT reporting

· Encouragement of reporting.

ONGOING.

Behaviour

An unintended consequence of changes in our environment has seen Carterton District Council having to manage situations where people’s behaviours pose a risk of somebody threatening or assaulting them, possibly with a weapon with potential of a fatality.

Introduction of a range of services and experiences such as Wi-Fi, together with external environmental factors such as transition of mental health patients into the community, troublesome youth, drug and alcohol abuse have potential to result in an increase in problematic individuals frequenting CDC premises and dealing with CDC staff in the community.

Cash held on premises also presents potential for robbery.

· Staff policies:

o Robbery Policy

o H&S Policy

· Staff training:

o De-escalation

o Personal safety

o Customer service

o Cash handling and robbery

· Appropriate physical office design and security measures including cameras and communication devices

· Electronic payment mechanisms

· Community engagement and risk awareness

· Leadership support

· Refresher training to be delivered by July 2023.

IN PROGRESS.

· Robbery Policy to be reviewed.

IN PROGRESS.

Staff Wellbeing

Being a small organisation and having departments under-staffed is placing some teams under pressure and the need to work long hours. Staff under pressure pose a risk to themselves, the organisation, and customers. Staff under pressure can lead to burnout, stress, fatigue, all leading to both mental/physical and social affects, contributing to lower performance levels.

Working long hours under pressure can lead to poorer mental health including stressful feelings, an increase in anxiety, depression and lower quality sleep patterns. This will contribute to a higher number of accidents occurring, bad decisions being made, irritability and concentration/memory issues.

Employees physical health can be compromised with the increased risk of a stroke, heart problems, high cholesterol and high blood pressure.

Combined stressors of busy workloads, staff vacancies and absences, local government reforms, and COVID-19 can impact staff wellbeing.

· Staff policies:

o Staff Wellbeing Strategy

o Hours of Work and Fatigue Policy

o Leave Policy

· Wellbeing communications through posters, T.V. screen notices, and staff newsletters

· Early recognition of stress, fatigue and burnout symptoms

· Managers support a safe environment to talk

· EAP Services available

· Clearly defined position descriptions and resourcing

· Relieving staff available from councils

· Filling of vacant roles.

ONGOING

· Address lack of work-space issues through physical relocation, working from home flexibility where appropriate, re-design of existing spaces.

ONGOING.

· Supporting staff uncertainty caused by Three Waters, RMA, local government reforms and COVID-19 impacts.

ONGOING.

7. CONSIDERATIONS

7.1 Climate change

None of the issues reported in this paper are considered to have climate change implications.

7.2 Tāngata whenua

There are no decision implications for tāngata whenua.

7.3 Financial impact

All work undertaken is within planned budgets.

7.4 Community Engagement requirements

No community engagement is required.

7.5 Risks

There are no decisions required in this report.

8. Recommendation

That the Committee:

1. Receives the report.

File Number: 327074

Author: Geri Brooking, People and Wellbeing Manager

Attachments: Nil

Risk and Assurance Committee meeting Agenda

22 February 2023

6.2 Government Reform Update

1. Purpose

For the Committee to receive an update on Central Government’s reform changes impacting upon Local Government.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

There are a number of significant pieces of work being completed by Central Government which impacts Local Government.

This report is a standard report to the Audit and Risk Committee which outlines any key changes in government reform since the previous update report to the Committee.

4. Three waters review Update

4.1 Overview

The Government’s Three Waters Reform proposals are a comprehensive change to the way fresh water, wastewater and storm waters are managed for our communities.

The reforms shift the current 67 council-owned and operated three waters services into four new publicly owned entities to manage the future delivery of these services from July 2024.

Papers have gone to previous Audit and Risk Committee and Ordinary Council meetings, which outline the reform in more detail.

4.2 Changes since the last update report

Parliament passed the first WSE bill on 7^th December 2022 and introduced two more pieces of legislation on the Water Services Entities at the same time.

The first Bill created the four Water Services Entities (WSE) and set out the transition rules for transferring Three Waters assets, staff, planning, revenue and debt responsibilities to the four new WSE’s. This passed the third and final reading on 7^th December and received the Royal Assent on 15^th December 2022.

The second Bill introduced in December amends a range of other legislation. This Bill transfers powers and responsibilities that Territorial Authorities hold (such as powers under the Public Works Act) to the WSE’s where they relate to three waters. The second Bill is a very technical but expected next step following the passing of WSE Bill 1. CDC did not make a submission on the second Bill.

At the same time the government introduced a third Bill (Water Services Economic Efficiency and Consumer Protection Bill) dealing with pricing, charging, overall economics and consumer protections around the WSE’s. This Bill is being led by MBiE while the first two Bills are being led by DIA.

CDC in partnership with the Wellington region councils made an extensive and well considered submission to MBIE during the policy phase of this Bill in earl 2022. This was supported by a range of experts in both economic regulation and consumer protection.

The third Bill sets the Commerce Commission up as the Water Services Entity economic and consumer regulator. Taumata Arowai continues as the Water Services regulator (focussed on quality of supply) dealing with WSE’s but also non-WSE water supplies e.g. small providers, papakainga etc. Te Mana O Te Wai sets out the overall policy framework for freshwater management.

The third WSE Bill covers:

· Price & Quality regulation;

o Inputs - Cost of Capital, investment principles, cost allocations, depreciation rates, valuations etc.

o Information disclosure regime (daylight is the best disinfectant).

o Quality regulation (low cost should not equal low quality).

o Price regulation (maximum prices / unit, maximum aggregate revenues, CPI increase path etc).

· Consumer Protections

o WSE operational efficiency framework.

o Consumer responsiveness.

o Consumer protections and service levels.

o Dispute resolution.

· Enforcement regime and penalties.

In a significant change from the draft policy the third Bill proposes to appoint a Water Services Commissioner. This change is considered by Management to be positive. A dedicated Water Services Commissioner will be able to ensure the Commerce Commission is able to resource up to cope with the huge amount of work required, without being distracted with other industries or issues.

A small group from the Wellington region councils have considered the third Bill and believe it is generally consistent with our previous submission at the policy level. In areas where the Bill differs, we believe it can be made to work, subject to appropriate implementation.

The main challenge for the third Bill comes from implementation. This includes the connection of the third Bill with other legislation, national policy statements, other regulators, and the final transition of assets and services from local authorities into the WSE’s.

Submissions officially closed on 12^th February, however MBiE have acknowledged workload pressures and have been open to granting extensions for Council submissions.

Submissions on the third Bill have been made by LGNZ, Taituara and Water New Zealand. Three Wellington Region Councils have sought extensions of time for submissions beyond 17^th February.

Having reviewed the third Bill, Water NZ submission, and feedback from within the Wellington region Councils, CDC Management decided against making a further submission on this Bill. This is in part due to capacity constraints, but also because other submissions have already covered off key points, and because the third Bill aligns well with other economic and consumer protection legislation already in force e.g. electricity, telecommunications.

5. Resource Management ACT

5.1 Overview

On 10 February 2021 the Government confirmed its intent to repeal and replace the RMA and set out a work programme for the initial stages of the review. The reform package broadly accepts the recommendations of the Resource Management Review Panel in its June 2020 report on “new directions for resource management in New Zealand”.

It is likely that transition provisions will be developed to ensure that the planning standards, other national direction and the RMA as a whole remain in effect until their replacements are developed. This is likely to take several additional years (beyond 2022).

The government has advised that in the interim, Councils should continue with business as usual, and any planned review work should place a particular emphasis on reviewing the performance of their plans and establishing implementation practices that could be carried over into a future system.

The Government plans to repeal the Resource Management Act and enact three new pieces of legislation this parliamentary term. The new laws are the:

· The Spatial Planning Act (SPA) which requires the development of long-term regional spatial strategies to help coordinate and integrate decisions made under relevant legislation

· The Natural and Built Environment Act (NBA) is the main replacement for the RMA which aims to protect and restore the environment while better enabling development

· A Climate Adaptation Act (CAA) to address complex issues associated with managed retreat, and funding and financing climate adaptation.

The Natural and Built Environment Bill (NBE Bill) and Spatial Planning Bill (SP Bill) were introduced to Parliament in November 2022.

The Climate Change Adaptation Bill is likely to follow in 2023.

National and Built Environments Act (NBA)

The NBA will be the primary piece of legislation to replace the Resource Management Act (RMA). Like the RMA, the NBA will be an integrated statute for land use and environmental protection. The National and Built Environments (NBE) Bill also set out how the environment is to be protected and enhanced. It will specify positive outcomes to be promoted for the natural and built environments. This is a shift from the RMA which focuses on managing adverse effects rather than achieving positive outcomes. These limits, targets and outcomes will be provided by the National Planning Framework, a key component of the NBE Bill, that consolidates what is known as ’national direction’ in the existing resource management system (i.e. existing National Policy Statements, National Environmental Standards, etc.)

The new NBE Bill requires anyone exercising powers, functions or duties under the Act to give effect to the principles of Te Tiriti o Waitangi and recognise Te Ao Māori. Under the current legislation, decision-makers are only required to 'take into account' those principles. Te Oranga o Te Taiao is an integral concept in the new NBE Bill. It is an intergenerational ethic that emphasises the importance of the health and wellbeing of te taiao (the environment) for current and future generations.

The new NBE Bill consolidates planning documents into a single Natural and Built Environment Plan (NBE Plan) for each region. NBE plans will have similar functions to those performed by regional policy statements, and district and regional plans under the current system, in regulating land use and natural resource use in each region through rules and policies.

Spatial Planning Act

The Spatial Planning Act (SPA) will provide a more strategic and coordinated approach to long-term regional planning. It will require spatial planning at the regional level through the development of regional spatial strategies (RSSs).

Regional spatial strategies will see central government, local government and Māori working together, in consultation with the community, to identify how their region will grow, adapt and change over the next thirty-plus years. They will focus on significant issues and opportunities facing the region.

Regional spatial strategies will set out a vision and objectives to guide a region’s development accompanied by a set of priority actions to turn the vision into a reality. They will identify areas that:

· are suitable for development

· may require protection, improvement and restoration

· require infrastructure

· are particularly vulnerable to the effects of climate change and natural hazards.

The NBE Bill requires Regional Planning Committees to be established in each region, comprising members from local government, Māori, and central government (though central government members only participate in relation to RSS).

Regional Planning Committees will be established as committees of all councils in the region. They will be stewards of RSS and NBE plans under the new system. A Regional Planning Committee will prepare RSS and NBE plans covering every local authority in the region, with local authorities retaining responsibility for implementing and administering NBE plans.

Under the current resource management system, district plans are required to be reviewed every 10 years. With the current timeline, the new Wairarapa Combined District Plan would serve most of its statutory term before being replaced with an NBE plan. In addition, the updated data, analysis, and new provisions prepared for the Wairarapa Combined District Plan will help inform the new NBE plan.

5.2 Changes since the last update report

Submissions were due on the 05/02/2023 for all three pieces of legislation. Council has not submitted on these but relied on Taituarā and Local Government New Zealand to represent the views of Councils.

6. Emergency Management Bill

6.1 Overview

In December 2021, the Minister for Emergency Management announced that a new Emergency Management Bill will be introduced to replace the Civil Defence and Emergency Management Act 2002.

The Civil Defence Emergency Management (CDEM) Amendment Bill arose from a review of the legislative framework for recovery. There are two stages to the review:

· Stage One: focussed on small to moderate-scale emergencies (which are the most frequent experienced in New Zealand; for example, from floods and weather-related event) and enhancing the recovery provisions in the Civil Defence Emergency Management Act 2002; and

· Stage Two: focussed on large-scale emergencies (i.e., like the 22 February 2011 earthquake) and what legislation might be needed for recovery. Stage Two has not yet commenced.

The CDEM Amendment Bill seeks to provide a smooth and coordinated transition of arrangements and powers from the response phase to the recovery phase. The proposed amendments have regard to the constitutional conventions that need to accompany any legislation that provides powers in emergency-like situations.

The Wellington CEDM Group undertook a joint submission on the Modernising the Emergency Management Framework document that was distributed by NEMA on 14 January 2022. The group’s feedback focused on five main areas, these are summarised below:

· That there needs to be more thought given to a number of the proposals to help respondents understand ‘what’ (exactly) is being proposed in each of the options that are being presented.

· The development of proposals should be undertaken in collaboration with CDEM Groups and iwi/Māori in order to help understand their different perspectives and areas of concern – especially in relation to ‘how’ decisions are going to be implemented. After all, if selected options are poorly informed, poorly crafted or misunderstood by those who then have to implement them, then they are unlikely to be delivered in the way they were intended and are unlikely to achieve their desired outcomes.

· The CDEM groups has repeatedly been told in both written and verbal form that resourcing is ‘not in scope’ for this particular piece of work. As the above listed responses show, given current local government funding pressures, the ability of NEMA and CDEM Groups to deliver on what is proposed is going to take additional resources – resources that are not currently budgeted or able to be funded by CDEM Groups. This being the case, we think any final statement of support for the proposed changes will be dependent on there being full transparency on where the additional funding is going to come from and when it is going to be available.

Concerns about the timeframes that have been identified for this legislative change. Rather than rush things though and end up with something that is not fit-for-purpose, we strongly recommend that the Minister and NEMA slow the process down to ‘do it once, do it right’ and get a systematic review that aligns with the opportunities presented by the 3 Waters review, RMA reforms (which are critical to Reduction) and the pending reforms in Local Government.

6.2 Changes since the last update report

None.

7. Local Government Review

7.1 Overview

As a result of the cumulative changes being progressed as part of the Government’s reform agenda, the overall purpose of the Review is to identify how our system of local democracy and governance needs to evolve over the next 30 years, to improve the wellbeing of New Zealand communities and the environment, and actively embody the Treaty partnership.

The Review’s initial focus will be on how local government will be a key contributor to the wellbeing and prosperity of New Zealand and an essential connection to communities in the governance of New Zealand in the future.

This will enable scoping of the broader work to follow. The Review will then focus on answering the priority questions identified during its initial scoping work.

On 30 September 2021 an interim report presented to the Minister signalled the probable direction of the review and key next steps.

7.2 Changes since the last update report

On the 28^th October 2022 the panel delivered it’s Draft Report for consultation and feedback. The report makes 29 recommendations across five main areas being:

· Strengthened local democracy.

· Authentic relationships with hapū and iwi and Māori.

· A focus on wellbeing.

· Genuine partnership between central government and local authorities, and

· More equitable funding.

The Draft Report is available here.

Some of the recommendations within the Draft Report seem aspirational, specifically suggestions on how to improve the relationship between central and local government, and ideas around changes to the local government funding model. This is a deliberate attempt by the Panel to evoke feedback on the draft recommendations.

The recent local body elections highlighted low voter turnout as a key risk to ensuring robust democratic processes in local government. Media focussed on the recommendation to lower the voting age to 16, as a way to strengthen local democracy.

Interestingly the Draft Report skirted the issue of a 4-year electoral term, or aligning local authority elections with central government elections, which traditionally have a much higher voter turnout.

The Panel have been running feedback sessions and webinars directly with Councils and also via LGNZ. Consultation feedback is open until 28^th February 2023. Management are not recommending CDC make a submission at this time.

8. CONSIDERATIONS

8.1 Climate change

Responses to the Emergency Management Bill proposal included considerations in climate change emergencies such as flooding and severe drought becoming more frequent.

8.2 Tāngata whenua

Responses to the Emergency Management Bill proposal included suggestions that Māori have a greater input in option development.

8.3 Financial impact

Feedback to the Emergency Management Bill specifically incorporated the inadequate provision of funding for some proposed additional shared responsibilities.

8.4 Community Engagement requirements

All the above proposed legislative changes are the responsibility for Central Government to coordinate public responses.

8.5 Risks

Each of the proposed legislative changes has a potential impact on the form and function of local government.

9. Recommendation

That the Committee:

1. Receives the report.

File Number: 327470

Author: Solitaire Robertson, Planning and Regulatory Services Manager

Attachments: Nil

Risk and Assurance Committee meeting Agenda

22 February 2023

6.3 Progress update on Audit NZ recommendations

1. Purpose

The purpose of this paper is to update the Committee on the progress achieved to date responding to the recommendations presented by Audit NZ, arising from their previous audits.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

At the completion of each audit, Audit NZ sets out their findings from the audit in a report to the governing body. This report draws attention to areas where Audit have made recommendations for improvement. These recommendations are then added to this report. This report proves a mechanism for the Audit and Risk Committee to monitor the Council’s progress in relation to the implementation of these recommendations on a regular basis.

Management can comment on the Audit recommendations, noting planned actions, or if management considers time/resource/financial costs outweighs the benefits gained by implementing the recommendation. The Committee can provide guidance on prioritisation of recommendations, and whether to accept the risk associated with any of the recommendations (i.e. where time/resource/financial costs outweighs the benefits gained by implementing the recommendation).

4. Discussion

There are currently 10 recommendations listed in Appendix 1. The draft 2022 report has just been received from Audit NZ and is being presented separately at this meeting. Updates on existing recommendations have been added to Appendix 1, including removing three recommendations Audit NZ have cleared. The cleared recommendations relate to:

· Procurement

· Creditor Masterfile changes

· Review of payments listing

The new recommendations identified in Audit NZ’s 2022 report will be added to this update report going forward.

Of the previous recommendations, management has noted an additional three as cleared, though these have been left in the appendix until Audit NZ reviews them as part of the 2023 audit, and agrees they are cleared. This can take a full year of the new process/control being in place before Audit agree to clear the issue. A further seven recommendations are in progress.

These findings and recommendations are set out in Attachment 1, which also includes an explanation of the rating criteria. Management’s comments and details of progress to date are identified with each recommendation.

Staff continue to work towards clearing the outstanding items. Edits since the last report are in red font.

5. CONSIDERATIONS

5.1 Climate change

There are no climate change considerations.

5.2 Tāngata whenua

There are no tāngata whenua considerations.

5.3 Financial impact

Our responses to most of the outstanding recommendations can be covered within existing budgets.

As a small council, it can be challenging to implement some recommendations within current resources. We are considering roles and priorities within the team, and also weigh up the benefits of implementing recommendations against costs (whether financial, or staff time).

5.4 Community Engagement requirements

There are no community engagement requirements.

5.5 Risks

There are risks associated with outstanding Audit recommendations. There are currently no ‘Urgent’ recommendations outstanding, which would identify a more significant level of risk. When considering Audit recommendations, we look at the level of importance assigned, and as discussed above, the benefits of implementing versus the costs involved.

6. Recommendation

That the Committee:

1. Receives the report.

2. Notes the progress being made to meet the recommendations made by Audit New Zealand.

File Number: 327077

Author: Kelly Vatselias, Corporate Services Manager

Attachments: 1. Audit recommendations update ⇩

Risk and Assurance Committee meeting Agenda

22 February 2023

6.5 Treasury Update Report

1. Purpose

To provide the Committee with an update on Council’s current Treasury position.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

CDC’s treasury position and management are reported at each Audit and Risk Committee meeting. This covers the current debt position, forecast debt position, compliance with policy and covenants, and risks.

This report incorporates analysis undertaken by PwC, who are engaged to advise on Council’s treasury management.

This report sets out the treasury position on 31 December 2022 advising the current status of debt, and compliance against the parameters outlined in the Council’s Liability Management Policy. An update on the position of investments is reported to the Investment Committee. The report reflects the treasury movements over the first quarter of the 2022/2023 financial year, that ends on 30 June 2023.

4. CURRENT DEBT POSITION

The council’s current debt position is:

LGFA	$14,700,000
Internal borrowings	$ 6,153,000
TOTAL	$20,853,000

The capital programme for the 2022/23 year, including carry forwards, is $14m. $6.5m of this capital spend is to be funded through loans. On 30 June 2022 we held $2m that we had pre-funded toward capital spend subsequently carried forward, as we took advantage of LGFA’s low interest rates last year.

We also have internal borrowings of approximately $6.2m. This can be a prudent way to manage debt as we effectively spend Council cash holdings on capital expenditure and reflect this use of equity as internal loans. However, it is not always visible in financial reporting, as only external debt is shown in the Statement of Financial Position. Our internal debt is shown in our Annual Report as part of our borrowings note disclosure.

The average fixed interest rate on our borrowings with LGFA is currently 2.4%.

Interest rates have responded to economic conditions arising from the pandemic and global supply issues. LGFA funding continues to be competitive compared to other lenders, at rates although increased in line with others that align with sovereign debt. Council is in a good position with a low average interest rate, but borrowings necessary to fund aspects of the 2022/23 capital programme and a bond that will need to be refinanced in April will raise this average rate. Currently internal borrowings have mitigated the external interest expense. Should we choose to refinance these internal borrowings, it will increase the external interest expense.

The current interest rate has been achieved through borrowing from a number of different bonds, ranging from 6 months to eight years. In selecting the bonds, we considered interest rates, and the timing of bonds. Also, we have restructured borrowings related to three waters reform in bonds that mature about July 2024.

The following graph identifies the anticipated level of borrowing under the 10 Year Plan (black line) and the desirable proportion of that borrowing at fixed rates (red line). The grey line shows a minimum level of borrowing at fixed rates. In effect the graph reflects a desirable balance between fixed and floating rates.

5. LIABILITY MANAGEMENT COMPLIANCE

Council adopted the Treasury Management Policy (which includes Liability Management Policy and Investment Policy) in June 2022.

The Policy stipulates parameters relating to the prudent management of debt. For the purposes of this report, the key policies are each addressed separately, as relevant. Some of these parameters were included in the previous policy, and reported to ARC, however some of them were new, and were first reported against at the August 2022 ARC meeting. When a new policy is adopted, there can be a period of non-compliance, as changes are made over time to ensure compliance with any new requirements. Where this has occurred, this is noted.

5.1 Borrowing limits

The policy specifies the following borrowing limits, and Council is currently within all of them:

Limit	Council Limit	LGFA Lending Policy Limit	Position on 31 December 2022
Net external interest expense as a percentage of annual rates income	<15%	<25%	0.7%
Net interest expense as a percentage of total revenue	<15%	<20%	0.5%
Net external debt as a percentage of total revenue	<150%	<175%	61%
External debt plus available committed facilities plus liquid assets over existing external debt	Are maintained at or above 110%	Are maintained at or above 110%	180%

5.2 Liquidity Risk

Liquidity refers to the availability of financial resources to meet all obligations as they arise, without incurring penalty costs. This anticipates that Council has a minimum level of surplus liquidity to meet unexpected cash expenditure or revenue shortfall. The Policy calls for Council to maintain at least $2m in bank, call and term deposits with a maturity date of no greater than 30 days.

On 31 December 2022 liquid assets amounted to $11.8 million with the liquidity ratio being 180%, compared to the limit of 110%.

Term deposits longer than 30 days or linked to debt prefunding activity, are excluded from the liquidity calculations, whereas uncommitted bank facilities are included in liquidity and current ratio calculations.

LGFA is currently rated AAA by S&P Global Ratings.

5.3 Debt Funding Risk

The maturity profile of the total committed funding in respect to all external debt and committed bank facilities, is to be controlled by the following system.

Period	Minimum	Maximum
0 to 3 years	15%	60%
3 to 7 years	25%	85%
7 years plus	0%	60%

The current profile on 31 December 2022 was:

As shown above, we are in breach with 64% of our total debt set to mature within the next three years.

A funding maturity profile that is outside the above limits, but self corrects within 90 days is not in breach of this Policy. However, maintaining a maturity profile beyond 90 days requires specific approval from Council.

This breach is driven by the decision to limit 3 Waters related debt to no longer than 2024 where possible. Further borrowing to meet future 3 Waters related spend will exacerbate this situation if the same approach is taken, however it is planned to borrow further 3 waters related debt at longer terms.

Given the breach is a result of the structuring of 3 waters debt, it is the view of officers that the breach is acceptable. A resolution passed by ARC in August 2022 recommended Council approve the continued breach of this limit. This was approved at the December Council meeting.

5.4 Interest rate risk

Interest rate exposure refers to the impact that movements in interest rates have on the Council’s financial performance. Council’s objective in managing interest risk is to minimise debt servicing cost and to maintain stability of debt servicing costs.

Factors that influence interest rates for long and short-term securities are beyond the control of the Council. It is prudent to be aware of where interest rate cycles are when deciding the type of borrowing to be undertaken and what arrangements might need to be entered into to manage the interest on borrowing.

Exposure to interest rate risk is managed and mitigated through fixed/floating interest rate risk control limits based on the period to maturity and a suitable fixed/floating mix for individual periods. A 10-year period would set a fixed/floating mix of 25:75.

However, currently we are not reflecting that mix as the 3 Waters funding approach using short-term bonds on fixed low interest rates has given an interest rate profile as follows.

We have considered our interest rate exposure when drawing down borrowings and have structured our borrowings across bonds that end at different dates.

Interest rates are continuing to increase, and we will continue to monitor interest rates and consider ways to manage our interest expense.

6. forecast position

We have completed year 1 of the Long-Term Plan (2021/22). We had forecast net debt to be $18m on 30 June 2022 whereas at year-end net debt was $13.4 million. This reflects $14.7 million gross debt less the repayment provision of $1.3 million. This excludes $6.2 million of internal borrowing but does include prefunding of capital expenditure now to occur in 2022/23.

Our forecast borrowings under the Annual Plan for 2022/23 (year 2 of the LTP) is an additional $5.3 million, with a repayment provision of $1.3 million. A further $1.2 million of borrowings related to capital expenditure carried forward from 2021/22 will increase this forecast to $6.5 million, as signalled above. We will continue to assess the best time to drawdown these borrowings in line with spend forecasts and funding environment.

This level of borrowing is well within policy limits, as shown in the Borrowing Limits table above.

Currently we are still holding internal debt and will continue to assess whether it is more prudent to continue to hold this internally, or transfer to external debt through the LGFA. There are a few considerations here, including interest expense, whether we want to rearrange the reserve funds to invest in managed funds, and the fact that most of the internal borrowings relate to 3 waters assets.

6.1 Counterparty Credit exposure

Credit risk is the risk that a party to a transaction will default on its contractual obligation. Council is exposed to credit risk when there is a deterioration of the credit rating:

· of an entity with which the Council places its investments.

· of a counterparty with whom the Council may transact financial derivative contracts.

To avoid such risk, investment is made in instruments that are issued by entities that fit within the following:

Counterparty / Issuer	Minimum S&P long term / short term credit rating	Investments maximum per counterparty ($m)	Interest rate risk management instrument maximum per counterparty ($m)	Total maximum per counterparty ($m)
NZ Government	N/A	Unlimited	None	Unlimited
Local Government Funding Agency (LGFA)	AA- / A-1	20.0	None	20.0
NZ Registered Bank	A- / A-1	10.0(1)	10.0	20.0

Currently counterparty relationships are established with BNZ, ANZ and Westpac. Involving others will be based on our requirements, and their credit rating.

7. NEXT STEPS

Staff will continue to monitor and report on treasury position and compliance to the ARC. As new borrowings are drawn down, compliance with policy requirements will be considered, as well as advice from PwC, to ensure we move to full compliance as soon as possible. However, if we continue with the strategy of having 3 waters related debt maturing by the end of 2024, we will continue to breach the debt funding maturity profile.

8. CONSIDERATIONS

8.1 Climate change

There are no specific climate change considerations.

8.2 Tāngata whenua

There are no specific tāngata whenua considerations.

8.3 Financial impact

There are no financial impacts resulting from the decisions in this report.

8.4 Community Engagement requirements

There are no community engagement requirements.

8.5 Risks

Key risks relate to treasury management areas outlined above. As demonstrated, we comply with policy, except in one instance for a clear reason, and have significant headroom in terms of our borrowing capacity.

As borrowings increase, risk becomes higher. For example, changes in interest rates can have a significant impact. We continue to manage these risks and meet monthly with our external advisor PwC to assist in this.

9. Recommendation

That the Committee:

1. Receives the report.

2. Notes the current Treasury position and compliance with policy limits, except for the breach in the debt funding maturity profile.

File Number: 327166

Author: Kelly Vatselias, Corporate Services Manager

Attachments: Nil

Risk and Assurance Committee meeting Agenda

22 February 2023

6.6 2023/24 Annual Plan update

1. Purpose

To update the Committee on the timeline for the preparation and adoption of the 2023/24 Annual Plan.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

Council produces a Long-Term Plan (LTP) every three years. Annual Plans are produced for Years 2 and 3 of an LTP, confirming forecasts and taking into account any changes that have occurred since the LTP was adopted. Following Year 3 a new LTP is prepared and adopted.

Council adopted its most recent LTP in 2021, covering the period 2021-2031. As part of the Special Consultative Procedure undertaken in relation to this LTP, significant work was done to consult with the community and collect submissions on the content of the plan.

At the February Council meeting the Council resolved not to formally consult on the 2023/24 draft annual plan given the changes between year three of the LTP and the changes planned to the draft annual plan are not significant under the Council’s Significance and Engagement Policy.

This report focuses on the key dates in the planned timeline from now until the Council adopts the final 2023/24 Annual Plan, which must be adopted by 30 June 2023 as required by the Local Government Act 2002. Other areas discussed include consultation, changes, and other risks.

4. Discussion

4.1 Consultation

As discussed above, the Council has resolved not to formally consult on the 2023/24 Annual Plan.

The Council considered requirements of the legislation, proposed changes to the plan, the Council’s Significance and Engagement Policy, the lack of specific consultation topics, and past legal advice around not formally consulting on Annual Plans to help inform this decision.

Officers are continuing to work on the annual plan and are developing a communications plan to deliver key information to residents and develop options for providing feedback.

4.2 Proposed key dates

DATE	MILESTONE
25 January 2023	Annual Plan workshop with Councillors (Complete)
1 February 2023	Annual Plan workshop with Councillors (Complete)
15 February 2023	Council decides whether to formally consult (Complete)
22 February 2023	Annual Plan timeline to ARC
5 April 2023	Draft Annual Plan - workshop with Councillors
19 April 2023	Draft Annual Plan made public for engagement, and feedback
17 May 2023	Workshop to discuss any public feedback
24 May 2023	Draft Annual Plan to ARC for review
21 June 2023	Final Annual Plan and Rates Resolution distributed to councillors
28 June 2023	Council adopts annual plan

Council is not required to adopt the draft plan given there will be no formal consultation.

4.3 Changes to this annual plan

Overall, the changes planned to the 2023/24 Annual Plan are not considered significant under Council’s Significance and Engagement Policy. However, there are some areas officers wish to bring to the attention of the Committee, particularly considering any potential risks to Council.

Funding of Three Waters depreciation

Council is facing significant cost increases in a number of areas, including borrowing costs, insurance, electricity, fuel, transfer station contract etc.

In order to mitigate the impact of these cost increases on rates, Council has discussed the option of not funding depreciation on Three Waters assets. Depreciation on Three Waters assets is currently funded by rates which is then used to fund the asset renewals programme. Given the Three Waters reform means that Council would no longer have ownership of these assets from 1 July 2024, and the pressure on rates, Council has considered whether it should continue to fund depreciation. A number of other councils are also considering this approach. Council is aware of the pressure on our community facing increased costs of living, and wishes to minimise rates increases.

Should this approach be taken, there is a risk of the Three Waters reform not going ahead, and Council therefore not having funding for the Three Waters renewal programme in 2024/25. If this were to happen, Council could choose to fund the programme using borrowings.

There is also a risk that sufficient depreciation reserves will not be available to fund the 2023/24 renewals programme. Currently, it is expected that reserves will be sufficient, however additional work is being done to confirm this, including forecasting our year-end position, and refining the capex programme for the 2023/24 year. If reserves were not sufficient, Council could fund the shortfall through borrowings.

Adjustment for Three Waters transition

The National Transition Unit has obtained advice from PwC on accounting considerations for Three Waters reform.

One of the pieces of advice relevant to the 2023/24 Annual Plan is the date at which Councils should recognise the transfer transaction under Three Waters reform.

The advice is that Councils should derecognise their transferring assets and liabilities on 30 June 2024 and recognise any consideration received/receivable. The gain or loss resulting is recognised in surplus or deficit.

PwC’s opinion is currently with the OAG for their comments. Whatever is decided, the accounting treatment will need to be consistent across all Councils. Previous similar public sector transfers (e.g. in the tertiary sector) have taken this same approach.

While officers accept that it makes sense to recognise the transfer transactions on 30 June 2024, it does mean disclosures and accounting treatments will need to be presented for the first time in the 2023/24 Annual Plan, given the balance date is 30 June 2024.

Currently officers are still completing work on different Three Waters aspects, including upcoming meetings with DIA to discuss debt transfers. This makes it difficult to determine the exact transactions to be recognised in the annual plan at this stage. We are also expecting to receive further guidance from DIA/NTU on these transactions. Officers plan to release the draft 2023/24 Annual Plan without these adjustments, but with a disclosure to explain the changes expected to be made in the final version of the plan. Closer to the adoption date we will then be in a position to make these adjustments to the final 2023/24 Annual Plan. These adjustments will have no impact on rates for the 2023/24 year.

5. NEXT STEPS

Officers will continue working on the annual plan and develop a communications plan to deliver key information to residents and develop options for providing feedback.

The final Draft Annual Plan 2023/24 will be presented to Council for adoption (along with the Rates Resolution) at the 28 June 2023 meeting.

6. CONSIDERATIONS

6.1 Climate change

No climate change consideration.

6.2 Tāngata whenua

Appropriate communications with iwi would be carried out as part of informational community engagement activities.

6.3 Financial impact

No financial impacts arising from the decisions in this report.

6.4 Community Engagement requirements

Council has no legislative requirement to consult formally on the 2023/24 draft Annual Plan.

An informational communication and engagement campaign is planned to be undertaken with the community.

6.5 Risks

Council has followed legislative, and legal guidance in relation to the decision to not formally consult.

There is the risk that staff do not meet the timelines proposed. This could lead to a delay in the adoption of the annual plan. This risk is not considered significant, as staff have already started preparation of the annual plan, and we expect to meet the timelines as set out. If, however this were to occur due to unforeseen circumstances (e.g. a Covid lockdown, unexpected staffing change etc), we would notify elected members and would update the planned timeline.

7. Recommendation

That the Committee:

1. Receives the report.

2. Notes the proposed 2023/24 Annual Plan timeline.

File Number: 327448

Author: Kelly Vatselias, Corporate Services Manager

Attachments: Nil


AGENDA Risk and Assurance Committee meeting
Date:	Wednesday, 22 February 2023
Time:	9:30 am
Location:	Carterton Events Centre 50 Holloway St Carterton
P Jones (Chair) Deputy Mayor D Williams (Deputy Chair) Mayor R Mark	Cr S Cretney Cr G Ayling M Sebire - Hurunui-o-Rangi Marae representative