Agenda of Performance, Audit and Risk Committee - …...remained relevant. In this first version, February had been blanked out because it had already taken place. However, usually

I hereby give notice that the

Performance, Audit and Risk Committee Meeting

will be held on:

Date: Tuesday, 28 July 2020

Time: 2.00pm

Location: Council Chamber

Third Floor

Office of the Waitaki District Council

20 Thames Street, Oamaru

Agenda

Performance, Audit and Risk Committee Meeting

28 July 2020

Fergus Power

Chief Executive

PERFORMANCE, AUDIT AND RISK COMMITTEE MEETING AGENDA

28 JULY 2020

Page 2


28 JULY 2020

Page 3

Agenda Items

1 Apologies ................................................................................................................................ 5

2 Declarations of Interest .......................................................................................................... 5

3 Confirmation of Previous Meeting Minutes .......................................................................... 6

3.1 Public minutes of the Performance, Audit and Risk Committee Meeting held on 18 March 2020 ....................................................................................................... 6

4 Decision Reports .................................................................................................................. 12

4.1 Treasury Strategy, 2020-21 Financial Year - first quarter ......................................... 12

5 Memorandum Reports .......................................................................................................... 18

5.1 Quarterly Financial Report - Period 12, 30 June 2020 ............................................. 18

5.2 Finance and Corporate Development Group Update ............................................... 32

6 Resolution to Exclude the Public ........................................................................................ 35

7 Public Excluded Section ...................................................................................................... 37

7.1 Public Excluded minutes of the Performance, Audit and Risk Committee Meeting held on 18 March 2020 ............................................................................... 37

7.2 Audit New Zealand Interim Management Report PE ................................................ 37

7.3 Debtors' Report - 2020, Fourth Quarter, 30 June 2020 PE ...................................... 37

7.4 Accounts Payable Analysis, Fourth Quarter, 30 June 2020 PE................................ 37

8 Resolution to Return to the Public Meeting ....................................................................... 37

9 Release of Public Excluded Information ............................................................................ 37

10 Meeting Close ....................................................................................................................... 37


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Page 5

1 APOLOGIES

2 DECLARATIONS OF INTEREST


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Item 3.1 Page 6

3 CONFIRMATION OF PREVIOUS MEETING MINUTES

3.1 PUBLIC MINUTES OF THE PERFORMANCE, AUDIT AND RISK COMMITTEE MEETING HELD ON 18 MARCH 2020

Author: Ainslee Hooper, Governance and Policy Advisor

Authoriser: Lisa Baillie, People and Culture Group Manager

Attachments: 1. Public minutes of the Performance, Audit and Risk Committee Meeting held on 18 March 2020

RECOMMENDATION

That the Performance, Audit and Risk Committee confirms the Public minutes of the Performance, Audit and Risk Committee Meeting held on 18 March 2020, as circulated, as a true and correct record of that meeting.


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Item 4.1 Page 7

UNCONFIRMED MINUTES OF THE

PERFORMANCE, AUDIT AND RISK COMMITTEE MEETING HELD IN THE COUNCIL CHAMBER, THIRD FLOOR,

OFFICE OF THE WAITAKI DISTRICT COUNCIL, 20 THAMES STREET, OAMARU ON WEDNESDAY, 18 MARCH 2020 AT 3.13PM

PRESENT: Cr Colin Wollstein (Chair), Cr Jeremy Holding (Associate Chair), Cr Ross McRobie (Associate Chair), Cr Jim Hopkins (from 3.53pm), Cr Bill Kingan, Cr Guy Percival (part of meeting), Cr Hana Halalele, and Mayor Gary Kircher IN ATTENDANCE: Deputy Mayor Melanie Tavendale Cr Peter Newton Cr Kelli Milmine Fergus Power (Chief Executive) Neil Jorgensen (Assets Group Manager /Deputy Chief Executive) Paul Hope (Finance and Corporate Development Group Manager) Bill Chou (Information Services Group Manager) Ainslee Hooper (Governance and Policy Advisor)

IN ATTENDANCE FOR SPECIFIC AGENDA ITEMS:

Ian Wells (Accounting Manager) Mike Searle (Policy and Strategy Manager) Richard Maher (Programme Manager) Joakimu Mandiwona (Information Technology Manager) Suzanne Butler (Information Services Manager) Audit New Zealand Director (outgoing) Mr Dereck Ollsson Audit New Zealand Manager Ms Jenna Hills Audit New Zealand Director (incoming) Mr Rudie Tomlinson

MEETING OPEN

The Chair declared the meeting open at 3.13pm and welcomed everyone present. He extended a special welcome to members of the Audit Zealand team – outgoing Director Mr Dereck Ollsson, Manager Ms Jenna Hills, and incoming Director Mr Rudie Tomlinson who was taking over as Auditor for local authorities south of the Waitaki River and would be based in Audit’s Dunedin office.

1 APOLOGIES

RESOLVED PAR 2020/001

Moved: Cr Jeremy Holding Seconded: Cr Ross McRobie

That apologies be received from Cr Jim Hopkins for lateness and from Cr Guy Percival for absence due to illness for part of the meeting.

CARRIED


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Item 4.1 Page 8

2 DECLARATIONS OF INTEREST

There were no declarations of interest.

3 CONFIRMATION OF PREVIOUS MEETING MINUTES

3.1 PUBLIC MINUTES OF THE PERFORMANCE, AUDIT AND RISK COMMITTEE MEETING HELD ON 12 NOVEMBER 2019


Moved: Cr Ross McRobie Seconded: Cr Jeremy Holding

That the Performance, Audit and Risk Committee confirms the Public minutes of the Performance, Audit and Risk Committee Meeting held on 12 November 2019, as circulated, as a true and correct record of that meeting.

CARRIED

4 DECISION REPORTS

4.1 PAR COMMITTEE MEETING STRUCTURE AND WORKPLAN

The report, as circulated, outlined a proposed altered approach to the matters to be covered in Performance, Audit and Risk Committee meetings during the 2020 year.

Group Manager Paul Hope introduced the report. He highlighted the proposed quarterly (as opposed to monthly) cycle for group activity reports from both his group and the Information Services group; and the commitments to policy review matters which Audit was keen to see resolved.

Cr Ross McRobie noted that there were only three meetings proposed for the year, and – as Associate Chair Risk for the Committee – he wanted to see more than that, especially with regard to the Audit New Zealand final report which he suggested could be covered at the December PAR Committee Meeting. The Chair suggested that a workshop could be held to discuss the proposed meeting structure. Mr Hope advised that the workplan would be a ‘living document’ to ensure it remained relevant. In this first version, February had been blanked out because it had already taken place. However, usually there would be another risk meeting in the first quarter, so that there would be four in total each year.

The issue of appointing an independent member to the Committee was discussed briefly. It was AGREED that the Committee would request an officer report and recommendation be brought to a future Committee Meeting discussing the need for an independent member to be appointed to provide additional expertise in the area of risk management. ACTION: Group Manager Paul Hope

Group Manager Bill Chou also supported the proposed quarterly cycle for Group Updates because it would give his team more opportunity to collect data and be able to demonstrate how major projects were adding value to Council business and to receive Elected member input to ongoing work as required.


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Item 4.1 Page 9


Moved: Cr Bill Kingan Seconded: Cr Jeremy Holding

That the Performance, Audit and Risk Committee adopts the quarterly based meeting structure set out in attachment 1, with any amendments agreed at this meeting.

CARRIED

5 MEMORANDUM REPORTS

5.1 QUARTERLY FINANCIAL REPORT - PERIOD 6, 31 DECEMBER 2019

The report, as circulated, reviewed financial results for the first half of the 2020 financial year, being the period ended 31 December 2019, and included the Treasury Report and summaries of internal loans and special reserve balances at the end of the first quarter, 30 September 2019.

Group Manager Paul Hope spoke to the report, noting that it had been deferred from the cancelled February meeting so the information was older than it would usually be.

There was brief discussion about annual charges; the disappearance of investment funds and the now present short-term borrowings; loans to other entities (it was noted that they were making Council some good returns); and about the Oamaru Whitestone Civic Trust loan being secured by a mortgage over some of the properties which was working well.

It was clarified that some big projects (eg in the harbour and at the airport) had commenced recently and would appear in the next report.


Moved: Cr Ross McRobie Seconded: Cr Colin Wollstein

That the Performance, Audit and Risk Committee receives and notes the information.

CARRIED

6 RESOLUTION TO EXCLUDE THE PUBLIC


Moved: Cr Ross McRobie Seconded: Cr Jeremy Holding

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:


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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

7.1 - Public Excluded minutes of the Performance, Audit and Risk Committee Meeting held on 12 November 2019

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)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

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

7.2 - Audit New Zealand Management Report PE

s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied


CARRIED

7 PUBLIC EXCLUDED SECTION

The public excluded minutes apply to this section of the meeting.

8 RESOLUTION TO RETURN TO THE PUBLIC MEETING


Moved: Cr Ross McRobie Seconded: Cr Jim Hopkins

That the Performance, Audit and Risk Committee resumes in open meeting and decisions made in the public excluded session are confirmed and made public as and when required and considered.

CARRIED


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9 RELEASE OF PUBLIC EXCLUDED INFORMATION

In accordance with Waitaki District Council Standing Orders, and pursuant to resolutions in the public excluded session of this meeting, the Committee decided to release previously public excluded information here in the public minutes of the meeting, as follows:

7.1 PUBLIC EXCLUDED MINUTES OF THE PERFORMANCE, AUDIT AND RISK COMMITTEE MEETING HELD ON 12 NOVEMBER 2019


Moved: Cr Ross McRobie Seconded: Cr Bill Kingan

That the Performance, Audit and Risk Committee confirms the Public Excluded minutes of the Performance, Audit and Risk Committee Meeting held on 12 November 2019, as circulated, as a true and correct record of that meeting.

CARRIED

7.2 AUDIT NEW ZEALAND MANAGEMENT REPORT PE


Moved: Cr Jeremy Holding Seconded: Cr Hana Halalele

That the Performance, Audit and Risk Committee:

1. Receives the report titled “Report to the Council on the audit of Waitaki District Council for the year ended 30 June 2019” and notes the information; and

2. Notes the results of the discussions with the Audit Director and Audit Manager.

CARRIED

10 MEETING CLOSE

On behalf of management and his team, Group Manager Paul Hope thanked Audit Director Dereck Ollsson and the audit team for their cooperative approach to Council’s audit during his term. Council officers had very much appreciated the dedicated time and effort that the auditors had put into the audit process this year.

The Chair also thanked the outgoing Audit Director and his team on behalf of governance members.

There being no further business, the Chair declared the meeting closed, at 4.07pm.

TO BE CONFIRMED at the next Performance, Audit and Risk Committee Meeting, which is currently scheduled to be held on Tuesday, 28 July 2020, following cancellations of intervening Committee Meetings as a result of the COVID-19 lockdown and response period.

..................................................

CHAIRPERSON


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4 DECISION REPORTS

4.1 TREASURY STRATEGY, 2020-21 FINANCIAL YEAR - FIRST QUARTER

Author: Ian Wells, Accounting Manager

Authoriser: Paul Hope, Finance and Corporate Development Group Manager

RECOMMENDATION

That the Performance, Audit and Risk Committee recommends:

That Council:

1. Adopts a Treasury Strategy for the first quarter of the 2020-21 financial year that will guide the selection of the most cost-effective arrangements to limit the use and cost of external borrowings and invest any available funds to best advantage to maximise returns.

DECISION OBJECTIVE

To report and discuss Council’s proposed Treasury Strategy for the first quarter of the 2020-21 financial year as an interim measure as Council transitions to membership of the Local government Funding Agency, acknowledging that membership of the LGFA will require changes to both this strategy and Council’s Investment Policy in future periods

SUMMARY

The Investment Policy adopted as part of the 2018-28 Long Term Plan sets out reporting and accountability requirements which include regular reporting of outcomes in the Treasury activity and the adoption of a quarterly Treasury Strategy

DECISION-MAKING EXPECTATIONS

Governance Decision-Making: That this proposed Treasury Strategy is adopted as an interim measure pending changes that will be made to the Investment Policy along with membership of the LGFA

Operational Decision-Making: That Officers will provide drafts of a proposed amended Investment Policy in due course

Communications Media Releases – contributed to by officers and Elected Members

Media/public enquiries regarding governance decision-making topics above can be addressed by governance

Media/public enquiries regarding operational decision-making topics above can be addressed by officers


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Item 4.1 Page 13

SUMMARY OF DECISION-MAKING CRITERIA

No/Moderate/Key No/Moderate/Key

Policy/Plan Key Environmental Considerations No

Legal No Cultural Considerations No

Significance No Social Considerations No

Financial Criteria No Economic Considerations No

Community Views No Community Board Views No

Consultation No Publicity and Communication No

BACKGROUND

Officers have historically invested surplus funds on relatively short-term bases (generally for no longer than 12 months, often for periods of less than 30 days) with any of four primary banking institutions in order to maximise the returns available.

For much of the 2019-20 financial year, however, such investments have not been possible, as there has not been the level of surplus funding available for bank deposits as was previously the case.

There are a number of contributory causes –

• Lending to the Kurow-Duntroon Irrigation Company, and to Waitaki District Health Services Ltd

• Works undertaken to complete the Hamnak water pipeline in both 2019 and the early part of the 2020 financial year and other water-related upgrades

• Unbudgeted works related to the removal of mould infestation in the Forrester Gallery, and expenditure on the refurbishment and upgrading of both that facility and the north Otago Museum

• Completion of the harbour dredging project

In short, many of the projects for which the previously surplus funding was tagged have now been completed, or are under way.

As has been outlined in previous Treasury Strategy discussions, Council is fortunate in that its cashflows are generally highly predictable, and have historically followed the pattern outlined below:

High cash balance Medium cash balance Low cash balance

August September October

November December January

February March April

May June July

This regularity of cashflows results from invoicing annual rates in four instalments and charging water-by-meter and trade waste on a quarterly basis. Provided payment of rate instalments and those other regular charges is made by the due date, Council can rely on having surplus funds in four months each year. These surplus funds have historically been used for investment purposes, with term deposits maturing over subsequent months to provide funds for operational purposes.


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Item 4.1 Page 14

Due to the factors outlined above and a reduced opening cash position, the peak balances available every three months will not be nearly as large as in recent years. For that reason, there will be less, if any, funds for investment and the next two months in each cycle will be periods in which Council can expect to rely heavily on the use of loan facilities.

Loans to external parties.

Council has made decisions over the years to utilise surplus funds to support community-driven developments intended to improve and expand economic and community benefits. These have included increasing irrigation opportunities, developing facilities for the elderly, and supporting and promoting the region’s history, heritage and culture. These loans to third parties have also provided a good level of return to Council and are reported in each Treasury Report presented to the Committee.

The interest rates on these external loans are market based and set at the start of each financial year. Given the current market conditions, the rates to be charged during the 2020-21 financial year can be expected to remain low for the foreseeable future, particularly given that the Reserve Bank has guaranteed that the Official Cash Rate (OCR) will remain depressed at 0.25%, or lower, for a very long time.

Term Deposits

During months listed as “high cash balance” in the preceding table, or when principal repayments are made by external borrowers, the primary focus will be on repaying external loan facilities utilised, thus reducing/minimising the cost of servicing those facilities. If Officers identify an opportunity to place funds on deposit, suitable short-term deposits will be placed, but interest rates are currently exceptionally low, and range from 0.05% for Council’s call account to around 1.35% for 12 months.

External Borrowing options

BNZ

During the 2019-20 financial year, Council approved the establishment of borrowing facilities with the BNZ, and the following arrangements have been formalised:

• An overdraft of $250,000

• Two Customised Average Rate Term Loan facilities, together providing available funding of $15,000,000

Only limited use has been made of the overdraft facility as, with careful and prudent management, the CARL facilities have proven extremely flexible and effective. At 30 June 2020, Council had borrowed $7,400,000 of the $15,000,000 available in the CARL facilities.

As an interim measure, this Strategy proposes the continued use of the current arrangements with the BNZ until, and even beyond, formalisation of Council’s membership of the LGFA.

LGFA

It is expected that Council will become a full member of the LGFA towards the end of the first quarter of the 2020-21 financial year., and that membership of the LGFA will result in Council being able to access increased levels of funding at reduced cost. As a consequence, use of the BNZ facilities will reduce, and may no longer be required.

For that reason, it is likely that this Treasury Strategy will need to be fully updated for the Second Quarter and future periods.


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Item 4.1 Page 15

2020-21 Annual Plan

Rapidly changing circumstances during the 2019-20 financial year meant that Council was not able to earn the levels of investment income forecast in the 2019-20 Annual Plan (through having almost no funds for term deposits), and incurred greatly increased levels of interest expense due to the amounts of external funding utilised.

The 2020-21 Annual Plan has adopted a more conservative approach based on actual results for 2019-20. Details of items included in the 2020-21 Annual Plan are below:

2020-21 Annual Plan

$

2019-20 Actual

$

2019-20 Annual Plan $

Revenue - External Interest 1,044,000 975,957 1,064,906

Expenditure – Overdraft Interest 5,000 2,982 10,000

Expenditure – External Loan facilities 240,000 145,279 -

Expenditure – Bank Charges and facility fees 67,000 60,245 34,000

Budgeted revenue takes into account improved interest rates t be earned from Council’s lending to NOIC, and slight increases in revenue from other borrowers.

Projections

Projected Cashflows over the next twelve months are outlined below, and reflect anticipated principal repayments from North Otago Irrigation Company Ltd and from Observatory Village Lifecare, both reflected in amended loan arrangements.

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21

Projected outwards cashflows, and likely funding sources, by month

Bank accounts Bank Deposits Loan Repayments

Operating cashflows Use of overdraft or borrowings Projected payments


28 JULY 2020

Item 4.1 Page 16

It is anticipated that NOIC will repay $2,000,000 of loan principal upon signing a new loan documentation. As the precise timing of loan repayments from the retirement village, and from any future share sales by NOIC is as yet unknown, a monthly amount has been allowed

SUMMARY OF OPTIONS CONSIDERED

Option 1 – Adopt the Treasury Strategy as outlined, making prudent use of term deposit opportunities and external funding facilities as required, endeavouring at all times to maximise interest revenue and minimise borrowing costs wherever practical

Option 2 – Direct officers to research and present an alternative strategy

ASSESSMENT OF PREFERRED OPTION

Option One is preferred, as it is the continuation of the current strategy and viewed by officers as the most viable available option given Council’s present funding circumstances.

CONCLUSION

Assuming adoption of this proposed strategy, officers will continue to direct their efforts to maximising wherever possible returns form Council’s investments while minimising as much as is practical the costs of financing Council’s ongoing operational and capital funding requirements.


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Item 4.1 Page 17

ADDITIONAL DECISION-MAKING CONSIDERATIONS

Outcomes

We keep our district affordable

We enable opportunities for new and existing business

We provide and enable services and facilities so people want to stay and move here

We understand the diverse needs of our community

Waitaki’s distinctive environment is valued and protected

We maintain the safest community we can

Financial Considerations

Critical to Council’s ongoing operations


Item 5.1 Page 18

5 MEMORANDUM REPORTS

5.1 QUARTERLY FINANCIAL REPORT - PERIOD 12, 30 JUNE 2020

Author: Ian Wells, Accounting Manager

Authoriser: Paul Hope, Finance and Corporate Development Group Manager

RECOMMENDATION

That Performance, Audit and Risk Committee receives and notes the information.

PURPOSE

This report reviews projected financial results for the 2020 financial year and includes the Treasury Report covering the full year as well as summaries of internal loans and balances of special reserves.

COMMENTARY

The GAAP Financial Reports (Appendix A) show a projected operating deficit of $(2.663m) against a budgeted surplus for $1.671m. These projections are indicative only and are subject to change arising from recognition of actual figures and also, possibly, from the audit process

Total projected revenue is $51.296m, under budget by ($1.560m).

Revenue Projected Year end

$000

Budget $000

Variance $000

User Charges –

COVID-19 impacts on Aquatic Centre, Opera House, car parking = -$415k, minor impacts of lockdown on Tradewaste and Landfill operations

Oceana Gold trucking waste out of the district = reduced revenue

Lean Meats 3 month closedown = reduced Tradewaste

4,256 5,057 -791

Regulatory Charges –

Consent fees and LIM charges reduced due to both an ambitious budget and to effects of COVID-19 lockdown

1,755 2,197 -442

Development Contributions –

A sign of continuing development in the district

1,028 885 +143

Government Grants –

Roading programme set back due to COVID-19 = reduced revenue -1,075

Application for PGF funding for airport developments not successful/not required = reduced revenue -$700k

Lotteries funding for Gallery = $500k more income

8,426 9,560 -1,134


Item 5.1 Page 19

Finance Revenue –

Term deposits have not been used much in 2019-20 = reduced revenue -$92k

976 1,065 -89

Dividend and Subvention Payments –

Civic Financial Services +100k

Whitestone dividend and subvention totaled $984k

1,084 500 +672

Assets vested in Council –

Never budgeted. These are items of roading or water/sewer infrastructure, or land for parks and reserves, vested in Council as a result of subdivision activity. The final value is unknown, but at least $76k has been identified – estimated at $100k

100 - +100

Other Gains and Losses –

Generally, gains on disposal of assets, and the results of the annual revaluation of Forestry holdings. Known at this stage are the increased value of forestry holdings = $25k, and known gains of $37k on disposals

62 - +62

Expenditure is projected at $53.959m, over budget by $2.775m

Expense Projected Year end

$000

Budget $000

Variance $000

Depreciation –

Increased charges due largely to the revaluation of Council’s property portfolio, including parks and reserves, and the Oamaru Airport. Charges for the 11 months to May are known; June’s charge has been estimated at $1,300k

15,188 14,258 +930

Finance Charges –

It was acknowledged when setting the 2019-20 Annual Plan that some borrowing might be required on an infrequent basis. Instead, Council has had to rely on external funding for much of 2019-20, resulting in the level of cost reported.

148 10 +138

Other Expenses –

Unbudgeted impact of mould remediation in the Gallery and refurbishment of both the Gallery and Museum = $453k

Unbudgeted use of external resources in the Building and Planning units = $223k

Net effect of rating sales and debt write-off = $177k

Includes an estimate for late accruals of $400k

COVID-19 impacts – reduced travel & training = -174k, reduced general contracting/maintenance = -404k

25,706 24,357 +1,349


Item 5.1 Page 20

STATEMENT OF FINANCIAL POSITION

Asset / Liability Projected Year end

$000

Budget $000

Variance $000

ASSETS

Property Plant and Equipment –

Effect of capital projects, including the new Oamaru reservoir which has commenced earlier than planned, and the property revaluation of $38,711k, less increased Depreciation. May change once actual spend on Intangibles is clearer

837,427 798,459 +38,968

Intangible Assets –

Purchased and internally generated software and systems – estimated split of capital expenditure between intangibles and PPE above

1,040 572 +468

Forestry –

Reflects change in valuation by $25k over 2019 value. The budget assumed a larger increase in valuation, but did not anticipate the depressing effect on log prices arising from COVID-19

294 345 -51

Loans to Other Entities – Term portion

The total of external loans that are not due for payment in the next 12 months. Anticipated changes to the arrangements regarding the NOIC loan have been taken into account in determining this figure, and so may change if those arrangements are not formalised by the time the audit commences

29,234 30,564 -1,330

Cash and Cash Equivalents –

Varies from day to day. Includes Council’s everyday accounts as well as the BNZ Call account

559 967 -408

Receivables –

Reduced on both budget and prior year – lower receivables from NZTA, May GST refund received during June, effect of COVID-19 lockdown on Water usage = reduced Water Billing and Tradewaste invoicing

5,144 6,325 -1,181

Prepayments –

Insurance prepaid four months amounts to $222k

656 480 +176

Loans to Other Entities – Current portion

Loan principal payments due within 12 months, and include $2 million from NOIC (budget $0) and $708k (budget $1 million) from Observatory Village

3,807 1,430 +2,377

Assets held for sale –

Properties actively being marketed, other items to be sold in the short-term

290 - +290


Item 5.1 Page 21

LIABILITIES

Trade and Other Payables –

Increase due to capital works, includes an allowance for late accruals $900k

7,264 6,725 +539

Short Term Borrowings –

BNZ facilities utilised, 2019-20 Annual Plan did not contemplate this position arising

7,400 - +7,400

Employee Entitlement Liabilities –

Increased staff numbers result in greater liability, but the Accumulated Leave liability itself is higher than budget as a result of COVID-19. Leave was not able to be taken during the lockdown, and opportunities for leave are now more limited

1,632 1,200 +432

Provisions –

Term

Current

These are the Provision for Closed Landfill Aftercare. The split between what is to be spent in the 2020-21 period and in future periods has yet to be determined

365

262

493

16

-128

+246

CAPITAL EXPENDITURE

Total capital expenditure to date is $19.758m, which is under the forecasted $29.562m. The most significant variations are mainly due to budget timing issues:

• Roading – total $6.598m is under budget by $3.071m, primarily due to the effect of works delayed or deferred due to the COVID-19 pandemic. Indications are that much of this work will be completed in the 2020-21 financial year.

• Water – total $4.238m is under budget by $4.397m due to deferral of some projects and delays resulting from the COVID-19 lockdown. Again, much of this work will be caught up in the 2020-21 financial year.

• Sewer – total spend of $3.625m is under budget by $0.720m, again as a result of the lockdown on works at both the Oamaru and Omarama facilities which, at 31 March, were ahead of forecast.

• Property – total $1.960m is under budget by $0.949m. The budgeted hanger project at Oamaru Airport was scaled back, reducing its projected cost by about $1.0m. Works on the continuing redevelopment of the Museum and Gallery are just behind budget.

• Parks and Recreation – total $668k is under budget by $769k. Although construction and development of public toilet facilities is progressing ahead of budget, works in the Public Gardens and other areas are behind plan.

• Alps2Ocean – total $571k is ahead of budget by $374k, due to the need to complete works related to flood damage incurred in late 2018 prior to the deadline for MBIE funding (which was achieved), and to ongoing works.

• Motor Vehicles – total spent to date on replacement vehicles is $197k, virtually on budget,

• Information Technology – total spent to date of $669k is under budget by $600k as the department continues to undertake development work, deals with staffing vacancies and prioritises projects.


Item 5.1 Page 22

More detail on individual projects and budgets has been, or will be, provided in separate group activity reports.

IMPACT OF COVID-19 AND OTHER MATTERS The financial impact of COVID-19 can now be seen in this report. During the six weeks that Alert Level 4 and 3 restrictions were in place, Council saw a significant drop in user charges income, some of which will continue for some period of time (continued free parking and expected reduced usage of the Opera House). Although this has been partially offset by some reduced costs, it has had a noticeable effect on the financial position at year-end. Council officers are currently working on quantifying the potential impact of the crisis on the current and coming financial year and developing steps to mitigate the loss of income in particular. Attachments

Appendix A – Financial Reports, projected at Period 12, with explanations for significant variances

Appendix B – Treasury Report

Appendix C – Internal Loans at 31 March 2020

Appendix D – Special Funds and Reserves at 31 March 2020


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Item 5.1 Page 23

APPENDIX (A) – FINANCIAL REPORT, PROJECTED AT 30 JUNE 2020

Statement of Comprehensive Revenue and Expensefor the year ended 30 June 2020

2020 2020 2019

Projected Budget Actual

$000 $000 $000 $000 % Commentary on key items $000

Revenue

Rates Revenue 32,941 32,931 32,116 10 0.0%

User Charges 4,266 5,057 4,950 (791) -18.3% Aquatic Centre - Covid-19 & closed for R&M - -200

Opera House - Covid-19 - -131

Carparking - reduced during/since lockdown - -84

Tradewaste - Lean Meats/Covid-19 - -83

Landfill charges - Oceana Gold & Covid-19 - -64

Gallery & Museum - closed for refurbishment - -12

Lakes Camping - season curtailed - -8

Water connection charges + 61

Regulatory Charges 1,755 2,197 1,744 (442) -27.7% Consent fees - Covid-19 + ambitious budget - -407

LIM charges - possibly Covid-19 effect - -12

Development and RMA Contributions 1,028 885 1,570 143 21.5% Roading - -44

Sewer + 15

Water + 79

RMA + 93

Government Grants and Subsidies 8,426 9,560 9,191 (1,134) -18.8% NZTA Roading subsidy - -1076

PGF for proposed airport hanger - -700

MBIE for Alps2Ocean construction/support - -153

MfE waste minimisation funding - Covid-19 - -18

LINZ for District Plan + 50

MBIE for freedom camping ambassadors + 53

MSD for family violence programme + 68

MBIE for public toilet projects + 177

Lotteries for Gallery development + 500

Other Grants and Donations 414 357 504 57 21.1% Otago Community Trust - Covid-19 response + 25

Finance Revenue 976 1,065 1,064 (89) -10.1% Virtually no Bank deposits in 2020 - -92

Petrol Tax 199 215 214 (16) -9.9% Lost revenue directly due to Covid-19 - -16

Infringements and Fines 45 89 48 (44) -93.6% Freedom Camping infringements - -29

Parking infringements - Covid-19 impact - -13

Dividend and Subvention Payments 1,084 500 672 584 0.0% Civic Financial Services special dividend + 100

Whitestone Contracting subvention payment + 484

Assets vested in Council 100 - 459 100 Estimated only

Other gains and Losses 62 - - 62 100.0% Property/vehicle sales & estimated

Total Revenue 51,296 52,856 52,532 (1,560) -4.0%

Variance from

Budget


28 JULY 2020

Item 5.1 Page 24

APPENDIX (A) – FINANCIAL REPORT, PROJECTED AT 30 JUNE 2020 (CONTINUED)

Statement of Comprehensive Revenue and Expensefor the year ended 30 June 2020

2020 2020 2019


$000 $000 $000 $000 % Commentary on key items $000

Variance from

Budget

Expenses

Personnel costs 12,567 12,559 11,560 8 0.1% Wages & salaries + 204

Kiwisaver - Council contributions + 7

Recoveries/other savings - 203

Depreciation and amortisation 15,188 14,258 14,185 930 8.7% P12 estimated $1300 - projected impact of revaluation

Finance Costs 148 10 1 138 1971.4% Effect of unbudgeted external borrowings

Other expenses 25,706 24,357 28,368 1,349 6.9% Refurbishment, Gallery and Museum + 453

Late accruals/other adjustments estimated + 400

Backfill - external resources utilised + 223

Bad Debts (rating sales & other writeoffs) + 177

Audit/Consultants/Lawyers/Valuers + 160

Insurance premiums + 99

Recruitment costs + 55

Telephone charges + 51

Electricity + 34

Dredging - -58

Tourism Waitaki funding support - -76

Travel/accommodation/training - Covid-19 - -174

General contractors/maintenance works - -404

Other gains and Losses 350 - 1,539 350 0.0% Estimated only

Total Expenses 53,959 51,184 54,114 2,775 6.8%

Surplus / (Deficit) before Tax (2,663) 1,672 (1,582) (4,335)

Other Comprehensive Revenue and Expense

Gain/(Loss) on revaluation of Infrastructural Assets - - 22,690

Gain/(Loss) on revaluation of Properties 38,711 5,354 - 33,357

Total Other Comprehensive Revenue and Expense 38,711 5,354 22,690

Total Comprehensive Revenue and Expense $36,048 $7,026 $21,108 32,697


Item 5.1 Page 25

APPENDIX (A) – FINANCIAL REPORT, PROJECTED AT 30 JUNE 2020 (CONTINUED)

Statement of Financial PositionProjected for the year ended 30 June 2020

Council Only

2020 2020 2019


$000 $000 $000

Public Equity

Ratepayers' Equity 310,208 310,208 310,208

Revaluation Reserve 519,500 488,494 480,934

Operating Reserve 21,407 26,598 24,255

Other Reserves 15,654 15,875 15,312

Total Public Equity $866,769 $841,175 $830,709

Non-Current Assets

Property Plant and Equipment 836,427 798,459 793,768

Intangible Assets 1,040 572 908

Forestry 294 345 269

Assets held for Sale 1,150 1,150 1,150

Other Financial Assets

- Investments in CCO's 4,912 4,912 4,912

- Investments in other entities 145 145 145

- Loans to other entities 29,234 30,564 29,252

873,202 836,147 830,404

Current Assets

Cash and Cash Equivalents 559 967 366

Receivables 5,156 6,325 6,408

Prepayments 656 480 443

Inventory 22 10 14

Other Financial Assets

- Term deposits - 4,250 600

- Loans to other entities 3,807 1,430 40

Assets held for Sale 290 - 787

10,490 13,462 8,658

Total Assets 883,692 849,609 839,062

Non-Current Liabilities

Provisions 365 493 365

365 493 365

Current Liabilities

Trade and Other Payables 7,264 6,725 6,447

Short Term Borrowings 7,400 - -

Employee Entitlement Liabilities 1,632 1,200 1,249

Provisions 262 16 292

16,558 7,941 7,988

Total Liabilities 16,923 8,434 8,353

Net Assets $866,769 $841,175 $830,709


Item 5.1 Page 26

APPENDIX (B) – TREASURY REPORT 2019-20 Treasury Overview This report reviews Treasury performance for the 2019-20 financial year, and projects Council’s expenditure profile and anticipated funding over the next twelve months. As an investor, Council would find current interest rates disappointing, and under conditions imposed by the COVID-19 pandemic, no improvement is likely for a very long time to come. However, as Council has no funds available for bank deposits, and is now a borrower, continuing low rates are a bonus. Council has reported Interest income of $976k. This was under budget by $89k, primarily arising from greatly reduced interest from bank deposits, as Council is no longer in the position of being able to place funds on deposit. Interest rates earned on Council’s loans to external parties continue to provide good returns, but generally interest rates have been far lower than was budgeted. Overall Cash Position Council’s operating cash continues to reach historically low levels, and as the graph below demonstrates, Council is now utilising its Customised Average Rate Loan facilities on a regular basis – at 30 June the total borrowed amounted to $7.4 million and reached $10.2 million on 20 July. Reasons for the need to borrow have been covered in previous reports, but are largely related to capital projects such as the Hamnak water pipeline, works on the Airport Hanger and the new Oamaru water reservoir, unplanned operational expenditure arising from mould remediation at the Forrester Gallery, and advances made to both the Kurow-Duntroon Irrigation Company and to Waitaki district Health Services Ltd. The cost of servicing this level of borrowing, at $148k, has well-exceeded both the budget of $10k and last year’s actual cost of $1k. The 2020-21 Annual Plan provides for $285k for loan servicing.

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

$ M

illio

ns

Total Funds, year on year

2020

2019

2018

2017


Item 5.1 Page 27

APPENDIX (B) – TREASURY REPORT 2019-20 (CONTINUED)

The graph below illustrates the cyclical nature of Council’s operations, largely focused on the inflow of funds arising from the quarterly rating cycle, the fortnightly payroll and related payments to the IRD, and the outflow of cash around the 20th of every month. Total Funds, 2019/20 Financial Year

Projected outgoings analysis and likely source of funds This graph shows likely cash outgoings by month. Any gap between available funds from operational cash flows and loan repayments, and projected expenditure, is met by additional borrowings. If inwards cashflows exceed operating costs, Council has an opportunity to repay borrowings.

-12.0-11.0-10.0

-9.0-8.0-7.0-6.0-5.0-4.0-3.0-2.0-1.00.01.02.03.04.05.06.07.08.09.0

10.011.012.013.014.015.016.017.018.019.0

Do

lla

rs -

Milli

on

s

Total Funds, 2019/2020, Fourth Quarter

2020

2019

2018

2017

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21

Projected outwards cashflows, and likely funding sources, by month

Bank accounts Bank Deposits Loan Repayments

Operating cashflows Use of overdraft or borrowings Projected payments


Item 5.1 Page 28

APPENDIX (B) – TREASURY REPORT 2019-20 (CONTINUED) Term Deposit investments at 30 June 2020 Council held no term deposits with banking institutions at year end. The cyclical nature of Council’s cashflows as depicted in the graph on the previous page demonstrates that there are only very limited opportunities to place funds on deposit, and even then, for only very short terms. The reality of the position now facing Council suggests that there will be no real opportunities over the next 12 to 18 months The present Treasury Strategy recognises the need to utilise external borrowing facilities, and places on officers the responsibility of managing its dual goals of maximising interest revenue while minimising interest expense. Other Investments – Loans and advances Council has loans outstanding to community groups and other entities as set out below. North Otago Irrigation Company Limited –

• Balance at 30 June 2020 $17,000,000

• Interest earned for the year $466,650

• Interest is charged and paid monthly

• The total advance is to be repaid in 2022. Observatory Retirement Village Trust –

• Balance at 30 June 2020 – total of Stage 1 and Stage 2 loans $11,656,638

• Interest earned for the year on interest-bearing components was $395,521

• Interest on stage 1 is charged quarterly, interest on stage 2 is charged monthly

• Principal repayments will commence in 2021, with payments totaling $708,000 expected. Kurow-Duntroon Irrigation Company Limited –

• Balance at 30 June 2020 $3,076,935 (loan is now fully drawn down)

• Interest earned since 23 September (date of initial loan draw-down) $76,935

• Interest is compounded to the loan principal quarterly.

• Repayments start date to be confirmed once the project is completed Oamaru Whitestone Civic Trust –

• Balance at 30 June 2020 $532.500 ($406,500 interest-bearing, $126,000 interest-free)

• Interest earned for the year $15,023

• Interest is charged and paid quarterly

• Council provides a grant to match the quarterly interest charge

• The Trust has an approved loan facility with Council of $500,000, plus further Heritage Fund facilities

• The Trust has committed to annual payments of $15,000 for the interest-bearing loan balance and $24,000 relating to the interest-free advance.

New Zealand Airline Academy Limited –

• Balance at 30 June 2020 $60,000

• Interest earned for the period $4,816

• Interest is charged and paid quarterly

• The total advance is due to be repaid April 2021. Waitaki District Health Services Limited –

• Balance at 30 June 2020 $700,000

• Interest earned since 6 December 2019 (date of initial loan draw-down) $10,548

• Interest is charged and paid quarterly. Other Investments – CCTOs Amounts invested in Council Controlled Organisations (CCOs) comprise the majority of the value of the other investments held by Council. Council has included in its budgets for 2020-21 dividend revenue of $500,000.


Item 5.1 Page 29

APPENDIX (C) – INTERNAL LOAN BALANCES AT 31 MARCH 2020

This table shows the internal loan position at 31 March 2020. Significant new loans taken out this year to date are detailed below.

Project $000

Moeraki Wastewater 1,218

Omarama Waste Water improvements 610

Gallery & Museum remediation and refurbishment 570

Breakwater 480

Holmes Wharf project 408

Harbour dredging 235

Airport Hanger infrastructure 210

Oamaru water – new reservoir 165

Property loans – compounding interest 125

Oamaru water – capacity improvements 113

Hampden closed landfill 39

Ohau drinking water standards upgrade 37

Public Toilets 26

Information Services – various projects 16

New Loans 4,252

Interest Balance Increased Principal Balance

Expense 1 Jul 2019 Borrowing Repaid 31 Mar 2020

$000 $000 $000 $000 $000

Roads and Footpaths 12 457 - (45) 412

Waste Water 27 437 1,829 (26) 2,240

Stormwater Drainage - - - - -

Water Supply 272 10,473 365 (926) 9,912

Waste Management and minimisation 4 184 42 (56) 170

Arts, Heritage and Culture 2 91 1 (7) 85

Parks and Recreation 15 568 26 (25) 569

Community amenities 12 454 12 (48) 418

Oamaru Harbour and Historic Precinct 56 1,892 1,123 (259) 2,756

Commercial and Development Activities 199 7,991 923 (400) 8,514

Support Services (598) - - - -

- 22,547 4,321 (1,792) 25,076


28 JULY 2020

Item 5.1 Page 30

APPENDIX (D) SPECIAL FUNDS AND RESERVES BALANCES AT 31 MARCH 2020

Balance at Transfers to Transfers from Balance at Transfers to Transfers from Balance at

Type of Reserve Purpose of Reserve 1 July 2018 Reserves Reserves 30 June 2019 Reserves Reserves 31 Mar 2020

$000 $000 $000 $000 $000 $000 $000

Special Reserves

Development Funds

Roading 477 297 (263) 511 220 (197) 534

Water 1,315 654 (1,119) 850 302 (249) 903

Sewer 2,407 332 (44) 2,695 156 (702) 2,149

Total Development Funds A 4,199 1,283 (1,426) 4,056 678 (1,148) 3,586

Other Council-created Funds B

Disaster & Insurance Excess Funds Contingency for rapid response C 3,953 150 (273) 3,830 90 (44) 3,876

Land Endowment Fund Operational funding D 855 224 (359) 720 157 (18) 859

Community Housing Fund Community housing projects & upgrades E 619 25 143 787 14 - 801

Forestry Planting Fund Net proceeds from forestry activities F 1,363 68 (32) 1,399 32 - 1,431

Other Council-created funds Established for other specif ic purposes 1,484 1,151 (164) 2,471 331 (179) 2,623

Total Special Reserves 12,473 2,901 (2,111) 13,263 1,302 (1,389) 13,176

Trust Funds

Waitaki Heritage Fund Support for heritage projects 378 44 (151) 271 24 (31) 264

RMA Reserve Future recreational developments G 951 418 (132) 1,237 189 (64) 1,362

Oamaru Public Gardens 150 5 - 155 4 - 159

North Otago Museum 146 8 - 154 3 (1) 156

Other community purposes 327 2 (98) 231 5 (5) 231

Total Trust Funds 1,952 477 (381) 2,048 225 (101) 2,172

Reserved Funds

SPARC and Creative NZ Funds Funds for community organisation grants 2 30 (32) - 38 (13) 25

Loan Funds Repayments of heritage loans 1 - - 1 - - 1

Total Reserved Funds 3 30 (32) 1 38 (13) 26

Total Restricted Reserves $ 14,428 $ 3,408 ($ 2,524) $ 15,312 $ 1,565 ($ 1,503) $ 15,374

Future expansion and upgrading

infrastructure for grow th

Grants, donations, bequests and other gifts

for specif ic purposes


28 JULY 2020

Item 5.1 Page 31


28 JULY 2020

Item 5.2 Page 32

5.2 FINANCE AND CORPORATE DEVELOPMENT GROUP UPDATE

Author: Paul Hope, Finance and Corporate Development Group Manager

Authoriser: Fergus Power, Chief Executive

RECOMMENDATION

That the Performance, Audit and Risk Committee receives and notes the information.

PURPOSE

To update the Performance, Audit and Risk Committee on the activity in the Finance and Corporate Development Group over the last quarter, April to June 2020.

INTRODUCTION

All of the key matters that officers have been working on have flowed through Council so all members will be aware of the developments and in most cases, resolution of these issues.

These matters included:

• Assisting with the COVID-19 response including staffing the CDEM Emergency Operations Centre, rates arrangements

• Budget review and reshaping

• Annual plan preparation

• Rates year-end and rating setting process

• Rate and debtor payment arrangements and direct debit recalculations

• Interim audit preparation and action

• NOICL refinancing arrangement

• Local Government Funding Agency participation, including consultation

• CouncilMARK preparation and coordination.

FINANCE The COVID-19 lockdown had a limited impact on the delivery of financial services. Although it was initially thought all services would be able to be delivered remotely, the reality we quickly faced was that, in spite of the best efforts of the finance and IS teams, it was found that some processing heavy functions needed the infrastructure in the main building to be delivered effectively. The other major issue that had to be resolved was how to process invoices so that they could be approved for payment. The information services team did a great job of developing and supporting a solution in a very short timeframe that allowed this to happen. This system has proved to be a good introduction to the system-wide changes that will occur later in the year when there will be an upgrade to the next version of the Authority Finance System. The last major development occurred as the country transitioned to Pandemic Alert Level 3. Tania Hoefsloot started with the finance team in the System Accountant role. It is great to have Tania on board to help with the LTP and Annual Report as well as helping to improve the financial management reporting across Council.


28 JULY 2020

Item 5.2 Page 33

RATES A focus for much of the quarter was getting the database as “clean” as possible for the coming rating year. The limited amount of activity during lockdown allowed several quality audits to be undertaken that identified a number of adjustments that needed to be made to the underlying property information and rate type attached to a specific property.

Another matter that the rates team has been monitoring has been the change in payment pattern due compared to the prior year as a way of assessing the impact of COVID-19.

Amounts Outstanding

Letter Sent # R/P's Total Due 17/06 Current Bal Paid

Arrears 389 $529,911.93 $494,164.64 $35,747.29

Instalment 4 Only 547 $341,822.70 $171,229.10 $170,593.60

936 $871,734.63 $665,393.74 $206,340.89

Number of Ratepayers

No Payment Partial Payment Full Payment

Arrears 284 78 27

Instalment 4 Only 308 117 122

592 195 149

All of the ratepayers with balances outstanding at the start of the rating year were written to, confirming that no penalties would be charged until the Instalment 1 due date but that both instalment and arrears penalties would be charged once that date was passed. Once this occurs, the team will have a better idea of the real impact of the crisis on people’s ability to pay.

During July, the focus has been on setting the rates for the year and getting the information to the print house for distribution. By the time of the meeting, most people should have received their rates demand. A number of queries are expected to be received as people see their rates have changed from the previous year. The Rates Team will be working with the Customer Contact Team to answer these questions as efficiently as possible.

The last major work stream has been meeting with Quotable Value about the impending revaluation. That is happening now and will be implemented in November, to be used in rating beginning 1 July 2021.

POLICY In addition to playing a significant role in most of the matters noted at the start of this memorandum, the Policy Team has continued work on the Policy Register and the By-law, Strategies and Policies 2020 work programme. A number of items have already been addressed and work will continue with an emphasis on items that need to be completed to allow the Long Term Plan process to continue. If the Committee would find it of interest, a more detailed update could be provided at the next meeting.


28 JULY 2020

Item 5.2 Page 34

HEALTH and SAFETY Responding to the COVID-19 pandemic was the primary focus in April and May as the Health and Safety Advisor was a key part of Council’s response. The closure of facilities and working remotely also greatly reduced the number of incidents being reported, although some issues did emerge with people working in different environments including home office set ups. Since the return to Pandemic Alert Level 1, the focus has shifted back to general health and safety matters including the election of members to the Health and Safety Committee. The other major piece of work was a review and plan to get contractors and their health and safety practices assessed in SiteWise during 2020/21. Since the start of the new reporting year and with the reopening of the Aquatic Centre in particular, there has been an increase in reported incidents. This increase has been investigated by the Aquatic Centre team and the Health and Safety Advisor. The key matters identified so far include:

• Improved awareness and reporting;

• Some new team members and returning staff getting used to the physical demands of their roles; and

• Changes created by the upgrade work and a need to adapt procedures to the changes. The Aquatic Centre Supervisor has been asked to attend the meeting to give the Committee an update on the risks that have been identified and the mitigations that are being put in place to address them. WORK PLAN / MEETING CONTENT It was hoped that a draft of a revised work plan / meeting content schedule could be presented at the meeting. However, other work commitments prevented this from happening. Although every effort will be made to cover all the items in the previous schedule, the focus will be on the critical components of the Long Term Plan, starting with a review of the financial strategy.


28 JULY 2020

Page 35

6 RESOLUTION TO EXCLUDE THE PUBLIC

RECOMMENDATION

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

7.1 - Public Excluded minutes of the Performance, Audit and Risk Committee Meeting held on 18 March 2020


s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied



7.2 - Audit New Zealand Interim Management Report PE


s7(2)(c)(i) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar



28 JULY 2020

Page 36

information, or information from the same source, and it is in the public interest that such information should continue to be supplied


7.3 - Debtors' Report - 2020, Fourth Quarter, 30 June 2020 PE



7.4 - Accounts Payable Analysis, Fourth Quarter, 30 June 2020 PE


s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities



28 JULY 2020

Page 37

7 PUBLIC EXCLUDED SECTION

8 RESOLUTION TO RETURN TO THE PUBLIC MEETING

RECOMMENDATION

That the Performance, Audit and Risk Committee resumes in open meeting and decisions made in public excluded session are confirmed and made public as and when required and considered.

9 RELEASE OF PUBLIC EXCLUDED INFORMATION

10 MEETING CLOSE

Documents

Agenda of Performance, Audit and Risk Committee - …...remained relevant. In this first version, February had been blanked out because it had already taken place. However, usually