Ordinary Meeting
of the
Audit Committee
Date 5 December 2014
Time 9:00
Venue Council Chamber 515 Mackay Street Thames
Members
Chairperson LA Fox
Members HD Bartley PA Brljevich MK McLean JP B Helford P Jones
Steve Baker
Chief Financial Officer
Members of Audit Committee
Tony Fox (Chairperson)
07 866 4836 027 497 0705
Jan Bartley
PO Box 166, Whangamata 3643 07 865 8832 [email protected]
Tony Brljevich (Councillor)
75 Kauri Grove, Coromandel 3506 07 866 7731 021 126 4202
Murray McLean JP 182 Buffao Beach Road, Whitianga 3510 07 866 4158 027 457 0855
Philip Jones
Full order paper and appendices are available on the TCDC website:
www.tcdc.govt.nz/Council/Meetings-and-Minutes/Committees
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Table of Contents
Item Business Page No.
1 Meeting Conduct 4 1.1 Apologies 4 1.2 Public Forum 4 1.3 Items not on the Agenda 4 1.4 Conflict of Interest 4 1.5 20 October 2014 Minutes for Confirmation 5
2 Audits and Reviews 15 2.1 November 2014 - External Audit Work Programme and Action Schedule 15
3 Risk Management 20 3.1 Long Term Plan update 20 3.2 Biosolids Composter 54
4 Audit Committee Work Programme 73 4.1 Audit Committee Action Schedule - updated after 20 October 2014 meeting 73
5 Reports 76 5.1 31 October - Financial Report for the four month period ended 76 5.2 Report asset sales proceeds 5 Dec 2014 Audit Committee 90 5.3 Members' Reports 102
6 Public Excluded 103 6.1 Public Excluded Minutes 105 6.2 Public Excluded Audit Committee Action Schedule 111 6.3 Internal Audit Work Programme and Action Schedule 113 6.4 Council Risk Register 120
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1 Meeting Conduct
In accordance with the Local Authorities (Members' Interests) Act 1968, members are reminded to declare an interest in items in which they have a direct or indirect pecuniary interest. In such circumstances, members are required to abstain from discussion and voting and ensure that the declaration is recorded in the Minutes of the meeting.
1.1 Apologies
The Chairperson invites notice from members of: 1. Leave of absence for future meetings of the Audit Committee; or 2. Apologies, including apologies for lateness and early departure from the meeting,
where leave of absence has not previously been granted.
1.2 Public Forum
A period of up to 30 minutes is set aside for the public to raise matters falling within the terms of reference of the meeting. Each speaker may speak for three minutes but time extensions may be allowed on a vote of not less than 75% of members present at the meeting. Questions from members for information or clarification may be permitted by the Chairperson (Standing Orders Appendix F).
1.3 Items not on the Agenda
The Chairperson will give notice of items not on the agenda as follows:
Matters Requiring Urgent Attention as Determined by Resolution of the Audit
Committee 1. The reason why the item is not on the agenda; and 2. The reason why discussion of the item cannot be delayed until a subsequent meeting.
Minor Matters relating to the General Business of the Audit Committee No resolution, decision, or recommendation may be made in respect of the item except to refer it to a subsequent meeting of the Audit Committee for further discussion.
1.4 Conflict of Interest
The Chairperson invites notice from members of: 1. Any interests that may create a conflict with their role as an elected member relating to
the agenda item(s) for the meeting; and 2. Any interests in items in which they have a direct or indirect pecuniary interest as
provided for in the Local Authorities (Members’ Interests) Act 1968.
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1.5 20 October 2014 Minutes for Confirmation
Memo Information
TO Audit Committee
FROM Michelle Baker - Committee Advisor
DATE 27 November 2014
SUBJECT 20 October 2014 Minutes for Confirmation
1 Purpose of Report
To present the Audit Committee the 20 October 2014 minutes for confirmation
2 Suggested Resolution(s)
That the Audit Committee:
1. Confirms the following minutes Audit Committee Minutes - 20 October 2014
References-Tabled/Agenda Attachments
Attachment A Unconfirmed 20 October 2014 Audit Committee Minutes
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Attachment A
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2 Audits and Reviews
2.1 November 2014 - External Audit Work Programme
and Action Schedule
TO Audit Committee
FROM Steve Baker - Chief Financial Officer
DATE 26 November 2014
SUBJECT November 2014 - External Audit Work Programme and Action Schedule
1 Purpose of Report
To enable the Audit Committee to review actions and progress against recommendations contained with audit and process review reports previously submitted to the Committee.
2 Issue
The Audit Committee has requested that progress reports on implementing audit findings be reported back to each meeting. The attached reports outline progress with respect to Council's External Audit Work Programme (Attachment A)
3 Suggested Resolution(s)
That the Audit Committee:
1. Receives the reports. 2. Notes the progress made to date; and 3. Confirms that the items indicated as complete be removed from the action schedules.
References-Tabled/Agenda Attachments
Attachment A November 2014 - External Audit/Review Recommendations Action Schedule
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Attachment A
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3 Risk Management
3.1 Long Term Plan update
Memo Information
TO Audit Committee
FROM Joy Hames - Project Manager - Long Term Plan
DATE 25 November 2014
SUBJECT Long Term Plan update
1 Purpose of Report
The purpose of this report is to respond to the Committee's request for assurance that the Long Term Plan 2015-2025 is fully compliant with relevant legislation. It also updates the Committee on the proposed audit programme and timing.
2 Background
At its meeting on 20 October 2014, the Audit Committee was updated on progress with the Long Term Plan project and the changes to the Local Government Act 2002 (LGA 2002) enacted in August 2014. One of those changes is the fundamental shift in emphasis in the purpose of the Audit. To recap, previously, the auditor was to report on:
the extent to which the Council had complied with the requirements of the Act in respect of the Long Term Plan; and
the quality of the information and assumptions underlying the forecast information provided in the Plan.
The new provisions require the auditor to report on:
whether the consultation document gives effect to the purpose of that document (is it fit for purpose); and
the quality of the information and assumptions underlying the forecast information provided in the consultation document.
This change now means that compliance with the legislation is even more clearly the responsibility of Council. Accordingly, this committee requested that a report be presented to this meeting setting out how members can be assured that the consultation document and Long Term Plan comply with the requirements of the LGA 2002.
3 Discussion
Approach to compliance with the LGA 2002 There are a range of tools that assist us with the Long Term Plan project and several of these are relevant to assurance that we are compliant with the LGA 2002. The Long Term Plan guidance series provided by the Society of Local Government Managers (SOLGM) and their supporting training is an important input to ensuring that all of the requirements to produce a coherent and compliance Long Term Plan is achieved. These guides are:
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Jigsaw 4: Piecing it Together - a quick reference to the entire range of process and content requirements that make up a successful Long Term Plan.
More Dollars and Sense (Third Edition) - deals with the financial aspects of the Long Term Plan.
Performance Management Frameworks - setting performance measures and targets under the Local Government Act.
Telling Our Stories 2015 - presenting an effective Long Term Plan consultation document
Living Through Another LTP - managing a Long Term Plan process under the LGA 2002.
Significance and Engagement Policy. Each of these guides contains discussions on relevant aspects of the legislation as well as good practice guidance and examples. Long Term Plan project personnel have all participated in the training and make use of the guides relevant to their areas of responsibility. Within the guide "Living Through Another LTP" there is a specific tool - Checklist for Long-Term Plans - which has been updated to include the August 2014 legislation changes. This checklist is being used by the project manager as a key resource to ensure that all key legislation is being considered as part of the Long Term Plan and consultation document development. It will be completed alongside the drafting of the consultation document and the draft Long Term Plan, to provide documented assurance that the mandatory requirements have been completed. A copy of this checklist is attached for information. Another aspect of ensuring that Council is compliant with legislation when preparing the Long Term Plan is the self-assessment questionnaire completed for Audit NZ. They noted in their communications to us on the questionnaire that it enables Audit NZ to better understand the systems and processes in place to support the Council in working within the provisions of the Act. Lastly, as noted in the previous report, we have prepared a quality assurance checklist to ensure compliance with legal requirements as well as wider quality assurance considerations. Again, this checklist will be completed alongside the development of the consultation document, draft Long Term Plan and final Long Term Plan. This checklist overlaps with the SOLGM list but this is a "belts and braces" approach to ensuring we are compliant. A copy of this checklist is also attached. Audit Process Since the last committee meeting, Council officers have met with our Audit Director and Audit Manager, respectively Ben Halford and Maree Procter, to discuss the audit approach and timetable. These matters will be formalised through the Audit Engagement Letter but the early indications are that there will be less up-front work on the Audit this year and that it will mostly be conducted once the draft consultation document, infrastructure strategy and financial strategy are available. We expect to be able to provide a more definitive update at the meeting.
4 Suggested Resolution(s)
That the Audit Committee:
1. Receives the Long Term Plan update report, dated 25 November 2014.
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References-Tabled/Agenda Attachments
Attachment A QA schedule for 2015-25 LTP Attachment B Checklist for the Long-Term Plans
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Attachment A
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Attachment B
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3.2 Biosolids Composter
Memo Information
TO Audit Committee
FROM Bruce Hinson - Infrastructure Group Manager
DATE 4 November 2014
SUBJECT Biosolids Composter
1 Purpose of Report
The purpose of this report is to inform the Audit Committee of a decision from the Infrastructure Committee regarding the future operation of the Whitianga Biosolids composter.
2 Background
Council currently have an operational Biosolids Composter in Whitianga. This composter mixes biosolids from the Whitianga, and at times Pauanui, wastewater treatment plants and also green waste from multiple locations. The composter has been operation in Whitianga for over a year now and has met consent requirements producing Aa grade compost. This compost has been utilised on Council owned parks and reserves. The composter has shown good operational results however the cost benefit for undertaking the operation is not as easily proven. To assess the financial viability of the composter plant, Morrison Low was engaged to provide an updated assessment of the financial viability of the biosolids composting operations performed at the Whitianga site. Earlier financial analysis was completed at the time the composting operations was undergoing trials. The financial models produced then, are now considered overly complex and potentially misleading for evaluating the plant in its operating status. A new, simplified forecasting model has been built for to undertake the required analysis. This new model has also had the latest updated costs input into it. This report was presented to the Infrastructure Committee on 29 October 2014. The Infrastructure Committee resolved to:
Resolved
That the Infrastructure Committee:
1. Receives the "Biosolids Composter" report dated 15 October 2014. 2. Approves the recommendation to suspend the operation of the composter
plant and undertake investigation on future optimisation. 3. Requests staff provides an updated report to the Infrastructure Committee
in April 2015 including decommissioning plans and confirmation of volumes of costs and options for disposal.
4. Requests this is referred to Audit Committee to consider any financial risk to ratepayer
Moved/seconded by: French/Fox
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3 Issue
Assessment results have shown that there is limited, to no, financial benefit to continuing the existing operation of producing compost.
4 Discussion
Options Assessment The assessment (Attachment A) considers the economic analysis of the composting operations. It assesses the biosolids output of the Whitianga and Pauanui Wastewater Treatment Plants (Whitianga WWTP and Pauanui WWTP) under two scenarios:
Option 1 - All WWTP output goes direct to landfill and the Composter is decommissioned.
Option 2 - All Whitianga WWTP output goes to the Composter, as well as some of the Pauanui WWTP output. The compost produced is either sold on a wholesale/bulk basis or used by TCDC for its own purposes.
The best way to compare the two options is to use the Net Present Value (NPV) of the two scenario forecasts. This is covered in detail in Attachment A. The NPV results over a twenty year period are shown below:
Scenario NPV
Scenario 1 – Landfill $6.34 million
Scenario 2 – Composter $7.22 million
Scenario 1 - Direct to Landfill has 13% less outflow cost than Scenario 2 - Biosolids to Composter, and is the more economically attractive option based on this analysis. This difference is significant over a 20 year period, however though optimisation works the cost difference could be reduced or even reversed. Also, when the costs are viewed as an annual amount, they are less the $50,000 per year. Environmental Careful consideration also needs to be given to the environmental benefits in undertaking this composing operation and the reduced dependency landfill operations. While future landfill and transport costs are likely to rise, we are unable to forecast these with any certainty. However, the environmental and sustainability benefits may be a factor in any decision made. Market Research Market research for the compost has not been explored to any great level of detail and is a potential for closing the gap on two scenarios. Operations Contract Enhanced operation though an externally run contract with strict KPI's is another avenue to pursue to find operational efficiencies or alternative operational strategies.
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5 Recommendation
It is recommended that the operation of the plant is suspended as of the end of November 2014. Focus can then be given to looking at exploring the following:
Environmental benefits
Market research
Investigate enhancements
Options for contracting the operations These tasks will need to be undertaken by an external provider as there is limited capacity or capability to do so by Council. It is envisaged that the investigation works could be undertaken within three to four months. Once this work is completed the plant could be run under an external contract arrangement for 12 months to test the potential to make the composter either cost neutral or profitable. After this operational period a final decision can be made to decommission the composter or continue operations.
6 Suggested Resolution(s)
That the Audit Committee:
1. Receives the "Biosolids Composter" report dated 4 November 2014.
References-Tabled/Agenda Attachments
Attachment A Review of Organic Processing Options
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Attachment A
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4 Audit Committee Work Programme
4.1 Audit Committee Action Schedule - updated after 20
October 2014 meeting
TO Audit Committee
FROM Steve Baker - Chief Financial Officer
DATE 26 November 2014
SUBJECT Updated after 20 October 2014 Meeting - Audit Committee Action Schedule
1 Purpose of Report
To provide the Audit Committee with an update to the Audit Committee Action Schedule following the 20 October 2014 meeting.
2 Suggested Resolution(s)
That the Audit Committee:
1. Receives the report.
References-Tabled/Agenda Attachments
Attachment A Updated after 20 October 2014 Meeting - Audit Committee Action Schedule
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Attachment A
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5 Reports
5.1 31 October - Financial Report for the four month
period ended
TO Audit Committee
FROM Steve Baker - Chief Financial Officer
DATE 25 November 2014
SUBJECT Financial Report for the four month period ended 31 October 2014
1 Purpose of Report
To provide the Audit Committee with cumulative financial information for the year to date to enable it to monitor the financial performance of the organisation
2 Background
A local authority must manage it revenues, expenses, assets, liabilities, investments, and general financial dealings prudently and in a manner that promotes the current and future interests of the community.
3 Issue
To enable the Thames-Coromandel District Council to fulfil the above requirements, financial performance must be monitored on a regular basis. The Committee has also requested that staff provide an update on Council's performance against the Local Government (Financial Reporting and Prudence) Regulations 2014 Accordingly Councils performance is shown in the attached table for the 2013/14 year as per the Annual Report.
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Benchmark Achieved Comments
Rates benchmark Yes Under the Council Policy limit of CPI increase
Debt benchmark Yes $39.9m under the Council Policy limit of 150% of rates revenue
Rates indicator $2,134.00 per rating unit (inc GST)
Debt indicator $1,959.84 per rating unit (inc GST)
Balanced budget benchmark No
Council has chosen not to fund depreciation on NZTA funding for roads and the AC component of the ES3 wastewater plants
Essential services benchmark No
Council has recently built 3 brand new ES3 wastewater plants and accordingly does not need to spend large capital sums on these plants at present from depreciation
Debt servicing benchmark Yes Council at 4.1%
Operations control benchmark Yes Net cash flow exceeded budget by $1.6m
Debt control benchmark Yes $27.6m under debt level forecast in the 2012-2022 TYP
4 Suggested Resolution(s)
That the Audit Committee:
1. Receives the report.
References-Tabled/Agenda Attachments
Attachment A October 2014 Financial results for the period ended Attachment B October 2014 Capex Report Attachment C October 2014 Balance Sheet
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Attachment A
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Attachment B
Property, Plant & Equipment Projects 2014/15
JDE
Annual Plan
Reference 2014/2015
Number NZ$000's
THAMES
Wastewater
Thames Renewals 2044 200
Thames Pump Station Upgrades 2042 33
Local Transportation
Footpath Rehabilitation 1174 28
Footpath Construction 1145 71
Streetlight Improvements 2295 11
Streetlight Renewals 2296 11
Street Furniture Renewals 2298 5
Rhodes Park Entrance Improvements 2395 15
Harbour Facilities
Thames Renewals 2291 13
Swimming Pools
Thames Pool Renewals 2393 16 Libraries
Thames - Library Books 1066 76
Thames - Furniture & Fittings 1013 3 Parks & Reserves
Neighbourhood Reserves 9995 12
Renewals 1069 13
Thames Skatepark 2292 163
Minor Reserves Projects 2293 97
Reserve Carpark Reseals 2294 14
Water - Matatoki
Renewals 2092 70
New Supply & Reticulations 2231 295
Water - Thames Valley
Renewals 2091 172
New Supply & Reticulations 2230 688
Water - Thames Urban
Thames Urban Reservoir Replacement 2214 Renewals 1254 734
Stormwater
Renewals 1248 673
TOTAL THAMES 3,413
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JDE Forecast
Reference 2014/2015
Number NZ$000's
COROMANDEL
Wastewater
Coromandel Renewals 2051 25
Coromandel Pump Station Upgrade 2048 22
Coromandel Treatment Plant Improvements 2341 2,023
Oamaru Bay Renewals 2054 2
District Transportation
Waikawau No 3 Bridge 2378 165
Waikawau No 4 Bridge 2398 132
Local Transportation
Footpath Rehabilitation 1175 5
Footpath Construction 1147 47
Streetlight Improvements 2302 18
Streetlight Renewals 2303 4
Comm Rdg - Coro Colv Street Furniture Renewal 2304 Halls
Coromandel Citizens Hall Refurbishment 2176 40
Parks & Reserves
Neighbourhood Reserves 9996 24
Coro Sportsville 1020 315
Water
Renewals 1258 25
Stormwater
Renewals 2031 68
TOTAL COROMANDEL 2,915
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JDE Forecast
Reference 2014/2015
Number NZ$000's
MERCURY BAY
Wastewater
Matarangi Renewals 2057 10
Matarangi Pumpstation Upgrade 2055 19
Whitianga Pumpstation Upgrade 2144 135
Whitianga Renewals 2059 92
Cooks Beach Renewals 2066 10
Cooks Beach Pumpstation Upgrade 2063 13
Hahei Renewals 2068 10
Hahei Consent Renewal 2122 90
Solid Waste
Transfer Station Whitianga 2401 350
Weighbridge Infrastructure 2400 75
Local Transportation
Footpath Rehabilitation 1176 26
Footpath Construction 2018 266
Streetlight Improvements 2310 24
Blacksmith Lane Footpath Legalisation 2313 22
Comm Rdg - M/Bay Streetlight Renewals 2311 Cemeteries
Mercury Bay Development Stage 1 2385 40
Halls
Whitianga Civic Centre Fire Brigade Land 2254 45
Libraries
Mercury Bay - Library Books 1067 30
Mercury Bay - Furniture & Fittings 2004 2
Harbour Facilities
Ferry Landing Historic Wharf Refurb 2364 257
Mercury Bay Destination Boat Ramp 2363 142
Mercury Bay Wharf Interp Signage 2391 22
Mercury Bay Renewals 2353 60
Parks & Reserves
Neighbourhood Reserves 9997 227
Renewals 1077 49
Minor Reserves Projects 2307 139
Brophy's Beach Coastal Erosion 2367 680
Cathedral Cove All Weather Parking 2396 15
Mercury Bay Sports Ground 1027 Coroglen Upgrade 2392 95
Hazard Mgmt - Cks Bch Flood Protection Wall 2268 Hazard Mgmt - Buffalo Beach Coastal Erosion (Stage 2) 2380 Comm Facil - Parks Coroglen Land Purchase (second Parcel) 2404 Water - Matarangi
Renewals 1259 250
Water - Whitianga
Renewals 1260 94
Ohuka Park AOB Extension 2402 184
Water - Hahei
Renewals 1262 32
Consent Renewal 2403 87
Stormwater
Renewals 2032 88
Renewals Whitianga 2033 88
TOTAL MERCURY BAY 3,766
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JDE Forecast
Reference 2014/2015
Number NZ$000's
TAIRUA/PAUANUI
Wastewater Tairua Renewals 2216 44
Pauanui Renewals 2217 20
Tairua Pumpstation Upgrade 2071 67
Pauanui Pumpstation Upgrade 2072 37
District Transportation
Tairua Manaia Rd Causeway 2349 620
Puketui Valley Rd Hikuai Dust Seal 2399 25
Local Transportation
Footpath Rehabilitation 1177 44
Footpath Construction 1156 95
Streetlight Improvements 2323 8
Streetlight Renewals 2324 8
Street Furniture Renewals 2322 1
Halls
Pauanui Community Amenity 2177 473
Pauanui Community Amenity Land Purchase 2002 Pauanui Community Amenity Furniture & Fittings 2390 12
Libraries
Tairua - Library Books 2157 9
Tairua - Furniture & Fittings 2168 2
Harbour Facilities
Tairua Mary Beach Wharf & Boat Ramp Enhancement 2317 1,181
Tairua Renewals 2316 16
Parks & Reserves
Renewals 1081 14
Minor Reserves Projects 2319 47
Coastal Walkway 2369 85
Water - Tairua
Renewals 1263 69
River Bank Filtration 2325 645
Water - Pauanui
Renewals 1265 88
Aquifer Reconfiguration 2277 329
Stormwater - Tairua
Renewals 2035 71
Stormwater - Pauanui
Renewals 2036 68
TOTAL TAIRUA/PAUANUI 4,075
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JDE Forecast
Reference 2014/2015
Number NZ$000's
WHANGAMATA
Wastewater Onemana Renewals 2081 10
Onemana Pumpstation Upgrade 2079 12
Whangamata Renewals 2085 123
Whangamata Pumpstation Upgrade 2083 35
Local Transportation
Footpath Rehabilitation 1178 8
Footpath Construction 1157 159
Street Lighting Streetlight Improvements 2332 18
Streetlight Renewals 2333 11
Lindsay Rd to Wattle Pl Link Road Service Lane Legalisation Projects 2375 106
Esplanade Carpark Improvements 2397 30
Xmas Lights & Decorations 2335 2
Street Furniture Renewal 2235 3
Harbour Facilities
Whangamata Renewals 2327 50
Parks & Reserves
Neighbourhood Reserves 9999 133
Renewals 1087 14
Whangamata Harbour Walkway 2329 8
Minor Reserves Projects 2330 46
Water - Onemana
Renewals 1266 15
Water - Whangamata
Renewals 1267 120
Consent Renewal 2337 60
Stormwater
Renewals - Onemana 2141 35
Renewals - Whangamata 2038 25
TOTAL WHANGAMATA 1,022
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JDE Forecast
Reference 2014/2015
Number NZ$000's
DISTRICTWIDE (No specific Community Board area)
Community Health & Safety Plant & Equipment Leadership Thames Administration Building 1011 86
Thames County Building 1012 25
Strategic Planning
Computer Software 1103 619
Computer Hardware 1104 240
Furniture & Fittings 1106 68
Plant & Vehicles 1105 387
Emergency Management
Emerg Mgmt - Plant 1108 26
Warning Systems Economic Development
Coromandel Harbour Facilities 2394 850
Tourism Gateway Signage District Transportation
Area-wide Pavement Treatment 1179 1,500
Unsealed Road Wearing Course Replacement 2345 650
Unsealed Road Basecourse Replacement 2346 300
Major Drainage Control 1180 600
Maintenance Chip Seals 1181 1,300
Thin AC Surfacing 1268 500
Seal Widening 1182 165
Bridge Component Replacement 2347 211
Minor Safety Projects 1164 454
Traffic Services 2162 145
Dust Sealing 2163 148
Preventative Maintenance 2196 184
Road Legalisation 1189 50
Land Legalisation Cemeteries
Minor Projects 2338 17
Public Conveniences Renewals 1088 321
Solid Waste Compactor Replacements 2022 46
Transfer Station Miscellaneous Improvements 2024 105
Transfer Stations Renewals 2023 70
Community Litter Bin Replacements 2028 25
Transfer Station Transporter Bins 2199 41
Molok Replacements 2027 7
New Moloks 2200 30
TOTAL DISTRICTWIDE (No specific Community Board area) 9,171
TOTAL CAPITAL PROJECTS 24,363
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Attachment C
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5.2 Report asset sales proceeds 5 Dec 2014 Audit
Committee
Memo Information
TO Audit Committee
FROM Angela Jane - Governance and Strategy Manager
DATE 27 November 2014
SUBJECT Proposed policy on distribution of asset sales proceeds
1 Purpose of Report
The report requests the Audit Committee consider a proposed policy for the distribution of asset sales proceeds and make a recommendation to the Council for its adoption and/or alternation.
2 Background
The attached policy discussion document was considered at a recent Council Long Term Plan workshop which the Community Board Chairs also attended. At the workshop a modified option of the original discussion document was considered the preferred policy stance. The attached discussion document (Appendix A) has been altered to reflect the workshop discussions and a policy drafted to reflect the preferred policy stance. The process for identifying surplus assets as guided by the Council's Property Strategy is included in the attachment as Appendix B.
3 Issue
A policy on the use of asset sales proceeds was considered necessary at this time in order to include estimated income in the 2015-25 Long Term Plan.
4 Discussion
The policy discussion points are included in the attachment.
5 Suggested Resolution(s)
That the Audit Committee:
1. Receives the 'Proposed policy on distribution of asset sales proceeds' report, dated 27 November 2014.
2. Recommends to the Council the adoption and/or alteration of the proposed policy on asset sales proceeds.
References-Tabled/Agenda Attachments
Attachment A Proposed policy asset sales proceeds and appendices
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Attachment A
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5.3 Members' Reports
The Chairperson invites members to provide a brief verbal report on activities undertaken and meetings attended in the period since the last meeting. Written reports and Minutes of meetings attended are presented below.
Recommendation That the Audit Committee: 1. Receives the Members' Reports.
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6 Public Excluded
Resolution to Exclude the Public Section 48, Local Government Official Information and Meetings Act 1987.
Recommendation That the public: 1. Be excluded from the following parts of the proceedings of this meeting
namely:
Item Business 6.1 Public Excluded Minutes 6.2 Public Excluded Audit Committee Action Schedule 6.3 Internal Audit Work Programme and Action Schedule 6.4 Council Risk Register
The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
General Subject of
each matter to be
considered
Reason for passing this
Resolution in Relation
to Each Matter
Ground(s) Under Section
48(1) for the Passing
of the Resolution
Public Excluded - 20 October 2014 Minutes for Confirmation
(7)(2)(i) – Enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).
(48)(1)(a) – That the public conduct of the whole or 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.
Public Excluded - Updated after 11 June 2013 - Audit Committee Action Schedule
(7)(2)(c)(i) – 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.
(48)(1) – Subject to subsection (3) of this section, a local authority may by resolution exclude the public from the whole or any part of the proceedings of any meeting only on one or more of the following grounds:
(48)(1)(a) – That the public conduct of the whole or 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.
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Internal Audit - Councils payroll process
(7)(2)(c)(i) – 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)(f)(ii) - Maintain the effective conduct of public affairs through the protection of such members, officers, employees, and persons from improper pressure or harassment.
(7)(2)(h) – Enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities.
(48)(1)(a)(i) – That the public conduct of the whole or 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. Where the local authority is named or specified in the First Schedule to this Act, under section 6 or section 7 (except section 7(2)(f)(i) of this Act.
Council Risk Register - Update November 2014
(7)(2)(g) – Maintain legal professional privilege.
(7)(2)(c)(i) – 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.
(48)(1)(a) – That the public conduct of the whole or 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.
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