Minutes of Ordinary meeting of Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

Mēneti Wātea | Open Minutes

Minutes of an ordinary meeting of Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee held in the Council Chambers, 35 Kenrick Street, TE AROHA on Tuesday 12 September 2023 at 9.00am.

Ngā Mema | Membership

	Tiamana \| Chairperson
	Jaydene Kana

	Independent Member
	Joanne Aoake

	Koromatua \| Mayor
	Adrienne Wilcock, JP

	Koromatua Tautoko \| Deputy Mayor
	James Thomas

	Kaunihera ā-Rohe \| District Councillors
	Bruce Dewhurst
	Kevin Tappin
	Gary Thompson

Ngā whakapāha | Apologies

There were no apologies

Members Present via Audio/Visual link

Name	Audio/Visual link
Cr Kevin Tappin	Microsoft Teams

Kaimahi i reira | Staff Present

Name	Title	Item No.
Stephanie Hutchins	Governance Support Officer
Sandra Harris	Placemaking and Governance Team Leader
Dennis Bellamy	Group Manager Community Development	7.1, 7.2, 7.3, 7.4
Kate Stevens	Safety and Wellness Team Leader	7.2
Lesley Steeples	Risk Manager	7.3
Kelly Reith	People, Safety and Wellness Manager	7.4
Fiona Vessey	Group Manager Service Delivery	7.5, 7.6
Rachel Norman	Project Delivery Lead	7.5, 7.6
Sangeeta Singh	Procurement Specialist	7.5, 7.6
Niall Baker	Policy Team Leader	7.8, 7.9, 7.10, 7.11, 7.12, 7.13, 8.1
Manaia Te Waiata	Group Manager Business Support	7.8, 7.9, 7.10, 7.11, 7.12, 7.13, 8.1, 8.2
Anne Gummer	Policy Advisor	7.11
Larnia Rushbrooke	Finance and Business Services Manager	7.4, 8.2

I reira | In Attendance

Name	Position/Organisation	Item	Time In	Time Out
Claudia Brink	Audit Manager, Audit New Zealand	7.8 - 7.13	10.31am	11.54am
René van Zyl	Audit Director, Audit New Zealand	7.8 - 7.13	10.31am	11.54am
Richard Harbord	Sector Manager, Audit New Zealand	7.8 - 7.13	10.31am	11.54am

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

12 September 2023

7 Pūrongo me whakatau | Decision Reports

7.3 Risk Management Update

CM No.: 2765822

Te Kaupapa | Purpose

Update on Risk Management activities

Rāpopotonga Matua | Executive Summary

Risk Appetite:

· The Risk Appetite process has evolved through testing the process on the Spa project, Transport Choices Project and Safety & Wellness categories.

Risk Registers:

· Risk Registers are currently excel based, this poses the risk of not being able to create suitable reports due to the large number of individual Risk Registers.

Tūtohunga | Recommendation

That:

1. The information be received

WHAKATAUNGA Ā-KOMITI | Committee Resolution

That:

1. The information be received

2. Staff to meet with Chair Jaydene Kana to review Risk Registers

Resolution number YV/2023/00003

Moved by: J Aoake

Seconded by: Cr B Dewhurst

KUA MANA | CARRIED

Horopaki | Background

Risk Appetite:

· The Risk Appetite process has been evolving over the last 9 months and is now at a stage that it will be taken to the Executive Team and the Management Group meetings scheduled for 5^th and 7^th of September.

Risk Registers:

· Numerous excel based Project Risk Registers are in use which impacts on the ability to easily generate reports.

Ngā Take/Kōrerorero | Issues/Discussion

Risk Appetite:

· Is aligned with MPDC’s Strategic Direction and Priorities (Community Outcomes) and Long Term Plan activities

· An excel tool has been created to guide users through setting tolerances and measures to ensure progress towards the desired outcome remains within an “acceptable” range.

· The more adverse we are towards Risk the more mitigations will be required ie time, cost, and resources. The more flexible we are towards Risk less stringent mitigations are required.

· Risk Appetite = Comfort zone.

· Going forward Business Cases and Projects will need to include a Risk Appetite Statement, determine and set appropriate Tolerances and Measures.

· Where an opportunity is identified as having high well-being benefits and it is in line with Councils Strategic Objectives, opportunities can be agreed and pursued, provided more rigorous controls, tolerances and measures are put in place to mitigate the risk.

Risk Registers:

Currently reliant on reviewing the status of “top risks” during project meetings ie Risk that rate High, Very High and Extreme.

The Top Risk Report format has been finalised refer attached Transformation Project Risk Report.

MPDC’s requirements in relation to Risk Assessment Software have been determined. Nine providers were reviewed and 3 options have been selected for testing (Promapp, Camm’s and KnowRisk).

The next steps are:

· Confirming the options and costs, that meet MPDC’s requirements.

· Piloting the shortlisted options.

Mōrearea | Risk

Example Top Risk Report – Transformation Project

Pānga ki te pūtea, me te puna pūtea | Financial Cost and Funding Source

The Risk Assessment Software hasn’t been budgeted for, request for funds will be raised once the pilot has been completed.

Ngā Tāpiritanga | Attachments

a.	Transformation Top Risk Report

Ngā waitohu | Signatories

Author(s)

Lesley Steeples

Risk Manager

Approved by

Dennis Bellamy

Group Manager Community Development

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

12 September 2023

7 Pūrongo me whakatau | Decision Reports

7.4 Transformation Team Update

CM No.: 2767518

Te Kaupapa | Purpose

The purpose of this report is to provide an update on work undertaken by the Transformation

Team and MPDC’s Takatū Anamata | Future Ready organisation review. It’s recommended this information is received.

Rāpopotonga Matua | Executive Summary

This report provides an update on work undertaken by the Transformation Team – the internal team set up to support the organisation through the current local government reform programme. This report also provides an update on MPDC’s Takatū Anamata | Future Ready organisation review, which is now at the detailed organisation design stage after having recently completed the high level organisation design stage.

WHAKATAUNGA Ā-KOMITI | Committee Resolution

That:

1. The information is received.

Resolution number YV/2023/00004

Moved by: Mayor A Wilcock

Seconded by: Cr G Thompson

KUA MANA | CARRIED

Horopaki | Background

The Local Government sector is undergoing significant reform and this has the potential to impact MPDC’s ability to deliver both business as usual as well as the activities contained in the 2021-31 Long Term Plan. The reform agenda includes Three Waters, RMA and Future for Local Government.

The MPDC Executive Team identified that a dedicated team is required to lead the organisation through change and support the transformation process.

This report provides the latest update on work undertaken by the Transformation team as well as work undertaken on MPDC’s Takatū Anamata | Future Ready organisation review – this review is about making sure MPDC is future ready and fit for purpose whatever the future may look like.

Ngā Take/Kōrerorero | Issues/Discussion

Latest update:

The Transformation Team continues to meet regularly to ensure there is an overview of all three reform areas and staff are kept well informed. This includes monitoring the impact on the organisation - ensuring risks are reviewed, the ability to maintain business as usual is monitored and any resourcing issues are raised.

Three Waters:

Following the April announcement the National Transition Unit (NTU) have been focussing on Entity A (Northland and Auckland) who are planning to transition on 1 July 2024. The NTU have recently released a preliminary recommended schedule for establishment dates for all entities and have recommended a go live date of 1 July 2025 for Entity B (Waikato).

The upcoming general election has resulted in some uncertainty on the future of the Three Waters reform; however, we continue to operate under current legislation.

Requests for information (RFIs) continue to be worked through. Senior leaders have recently attended the Local Transition Teams (LTT) meeting to ensure they remain up to date.

Thirty-four staff (11 staff, 23 managers) recently took part in change management training run by the NTU in June. Staff were encouraged to take part in this training to equip them with the tools to deal with change and support their resilience. Managers also gained skills to better support their teams. The NTU is planning two more training opportunities shortly; Te Mana o Te Wai and Career Coaching and we will ensure these are made available to staff.

Results from the second He Ata Staff Sentiment survey were recently received. This is a survey undertaken by the NTU and provides an opportunity for three waters staff to reflect and share how things are going for them. Seventeen of our three waters staff completed the survey during April - May and some results of interest are below:

Question	Agree	Slightly Agree	Neutral	Slightly Disagree	Disagree
I feel informed based on what the water services transition will mean for me	41%	18%	35%	0%	6%
I know where to get the support I need during the water services transition	35%	35%	18%	6%	6%

These results enable us to reflect on what we can do as an organisation to keep staff informed as much as possible and ensure they are aware of support available.

Staff were also asked “I feel ____ about any potential change to my role and career as a result of the water services transition” and we received the following results. We have also compared these to the results of the first survey undertaken in December.

How do staff feel about the change?

Period	Excited	Positive	Relaxed	Uncertain	Anxious
April/May 2023	9%	23%	4%	41%	23%
December 2022	8%	17%	25%	42%	8%

The number of staff who reported feeling anxious about their role and career has increased from 8% to 23% since December. Comments from our staff related to lack of certainty.

Our results are in line with national results. The NTU found this appears to be linked to a lack of clarity at this time following the Government’s refocus, a desire for more specificity on when key transition activities would happen for them, the upcoming General Election and uncertainty caused for some in the Position Review consultation process.

As a result, the NTU have sent out a monthly newsletter that we have shared with our staff. We continue to ensure our staff have access to information as it becomes available and continue to share the support options available.

RMA – the Spatial Planning Bill and the Natural and Built Environment Bills were given royal accent on 24 August. The Climate Adaptation Bill (being the last piece of legislation proposed as part of the Resource Management Reform) is still to be released and consulted on.

In relation to the implementation of the Natural and Built Environment Act, the RMA project team are currently reviewing the provisions that have immediate effect such as fast tracked consenting for certain housing and infrastructure developments (based on the Covid 19 process), a new maximum duration for new freshwater-related consents, changes to council enforcement powers and penalties, changes to the management of contaminated land and changes to aquaculture management.

It is noted that the majority of these are not applicable to Council however; the new maximum duration for freshwater consents will have an impact on Council’s infrastructure team.

Takatū Anamata | Future Ready organisation review

The Takatū Anamata | Future Ready organisation review process has continued.

A two stage consultation process was undertaken on the high level organisation design with the majority of staff agreeing with the proposal at each stage. A final decision has been made which will result in two new Group Manager positions being created to share workload, increase collaboration and enable Council to better achieve its objectives.

Manager input is now being sought before developing a draft detailed organisation design for consultation.

Recruitment for the new Group Manager roles is underway and will allow these roles to have input to the detailed design for their new team.

Mōrearea | Risk

The uncertainty of the Three Waters reform creates a significant risk to our Long Term Plan. A number of key documents are being prepared under current legislation, meaning three waters related infrastructure (and associated expenditure, revenue and debt) is only planned for until 1 July 2026. A change to the reform and subsequent legislation may require us to review the Long Term Plan and associated documents to plan beyond 1 July 2026, with very little time and push out the re-drafting, auditing and consultation of these key documents. This may compromise the adoption timeline.

We are not able to fully mitigate the risk of this, as resources do not allow us to manage two separate processes and documents. To reduce the risk we are developing our own Asset Management Plans (AMPS) instead of using the new Entity’s combined AMP so that we can specifically look at MPDC issues, risks and investment going forward. Even if it is only for two years, we will have some of the information available. The 10 year financials will be put together following the legislation applicable at the time, but informally a broad scenario analysis may be run alongside this to map how changes may affect key financial measures such as debt and rate limits.

Ngā take ā-ture, ā-Kaupapahere hoki | Legal and policy considerations

The reforms will impact across the organisation.

Ngā Pāpāhonga me ngā Whakawhitiwhitinga | Communications and engagement

The Communications Manager is part of the Transformation Team to ensure robust

communications. The Internal Communications Coordinator ensures information is shared with staff on a regular basis.

We recently surveyed staff to gain feedback on how well the organisation review process has been communicated, and an average score of 3.5 was received (5 being excellent). We asked for suggestions of improvement and will take these ideas into consideration during the next phase, suggestions included less reliance on technology and too many emails.

Ngā take ā-Ihinga | Consent issues

Not applicable.

Pānga ki te pūtea, me te puna pūtea | Financial Cost and Funding Source

Not applicable.

Ngā Tāpiritanga | Attachments

There are no attachments for this report.

Ngā waitohu | Signatories

Author(s)

Kelly Reith

People, Safety and Wellness Manager

Approved by

Don McLeod

Chief Executive Officer

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

12 September 2023

7 Pūrongo me whakatau | Decision Reports

7.6 Quarterly Project Management Compliance Report April - June 2023

CM No.: 2768888

Te Kaupapa | Purpose

The purpose of this report is to present to the Committee the first Project Management Compliance Report.

Rāpopotonga Matua | Executive Summary

The project management compliance report represents the Project Management Framework, Process, Templates and tools compliance for Matamata-Piako District Council (MPDC) and compares results from Initial and Subsequent audits during the Fourth Quarter, March – June 2023.

Auditing of the Project Management Process is structured to align with MPDC’s Project Management Framework. Audits are conducted each month and findings provide a baseline for comparing Initial and Subsequent results to monitor any positive or negative changes in compliance for the quarter. The audits are focused to raise awareness for project management and enable support while the project is in progress, with the objective to repeat positive results, reduce areas of risk and non-compliance.

WHAKATAUNGA Ā-KOMITI | Committee Resolution

That:

1. The Project Management Compliance report be received.

Resolution number YV/2023/00006

Moved by: Cr G Thompson

Seconded by: Mayor A Wilcock

KUA MANA | CARRIED

Horopaki | Background

MPDC delivers a large number and variety of projects as part of its usual business and identified a need to improve its project delivery process to reduce the number and scale of incidences of scope and cost creep. The objective should be that the outturn cost of a project is within timeframes and approved budget.

Effective project management requires early engagement of a project manager with the necessary skills and knowledge appropriate to the risk and complexity of a project to comprehensively initiate, plan, deliver and finalise. Historically, projects experience additional costs and overrun largely due to limited capacity and internal oversight, Staff are unaware of their role and responsibilities for a project, objectives and scope are not clearly defined, planning is rushed and emphasis is quickly moved to the delivery stage with little to no finalisation. Delivery team resources are frequently used to manage projects and by default become the “project manager”. This approach fails to provide sufficient capacity, skills and knowledge for the management and oversight of the project as a whole to balance the forces that affect a project: priority, scope, time, cost, and quality.

Project managers should not implement, they are responsible and accountable for day to day management and coordination of the project leading the team that executes the collective work activities throughout the phases of a project/program to achieve the project objectives.

· Along with the Director or Project Leadership Team, Sponsor, Stakeholders and Customer, helps create the Project Brief during the Initiation phase of the project.

· Develops the Project Plan with the project team and manages the team's performance of project activities/tasks

· Responsible for planning, organizing, managing, monitoring, controlling and communicating on all phases of a project

· Status reporting, risk management, tracking the financials

· Escalation of issues that cannot be resolved within the team

· Responsible for finalising the project and obtaining customer sign-off for the project handover document to formally close the project

The Project Delivery Lead has developed and in the infancy stages of implementing the Project Management Framework, processes, procedures, templates, training and auditing. The objective is to improve the project management process and provide organisational guidance and reduce risk however, if there is not a project manager assigned early or resource available to deliver, project management overall will continue to be at a high level of risk to deliver our operational and strategic objectives.

Ngā Tāpiritanga | Attachments

a.	R&A - Quarterly Project Management Compliance Report April - June 2023

Ngā waitohu | Signatories

Author(s)

Rachel Norman

Project Delivery Lead

Approved by

Fiona Vessey

Group Manager Service Delivery

The meeting adjourned for morning tea at 10.17am and reconvened at 10.31am.

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

12 September 2023

7 Pūrongo me whakatau | Decision Reports

7.8 Final report to Council on the Audit for the year ended 30 June 2022

CM No.: 2765967

Te Kaupapa | Purpose

The purpose of this report is to provide committee members with an overview of the internal control and financial/non-financial reporting matters identified by Audit NZ during the final audit for the year ended 30 June 2022 and outline how Council is addressing the matters.

Rāpopotonga Matua | Executive SummaryAudit New Zealand is Council’s external auditor appointed by the Office of the Auditor-General to conduct the audit on their behalf. Audit NZ issues reports to the Council on how the council can enhance and improve our processes, procedures and disclosures.

A report has been issued which outlines issues identified and makes recommendations for significant items that need to be addressed. This year, the report includes priority ratings for recommendations, being urgent, necessary and beneficial. The report is attached.

WHAKATAUNGA Ā-KOMITI | Committee Resolution

That:

1. The information be received.

2. Note the matters identified by the Audit New Zealand in its report to Council for the year ended 30 June 2022, and management responses to those matters.

Resolution number YV/2023/00008

Moved by: Chair J Kana

Seconded by: Cr G Thompson

KUA MANA | CARRIED

Horopaki | Background

Audit New Zealand is Auckland Council’s external auditor appointed by the Office of the Auditor-General to conduct the audit on their behalf. Audit New Zealand works with the council throughout the year reviewing our internal controls, and auditing our annual report.

Audit NZ reports to the council with recommendations on how the council can enhance and improve our processes, procedures and disclosures.

Audit New Zealand earlier provided a draft report to management on the audit for the year ended 30 June 2022 and this was presented to the Committee at its 13 June meeting. At the time staff had not had an opportunity to discuss the Auditors’ initial findings and assessments and make comment on these. The draft was provided for information only at that point with the intention of discussing any progress on this report at the meeting. Staff felt it was appropriate to share the report with the Committee in it’s very raw format at that time, given the 2023 Annual Report and audit would be commenced before this Committee meeting.

Following the June Risk and Assurance meeting further discussions have taken place with audit, management responses have been provided and a final report has been issued which outlines issues identified and makes recommendations for significant items that need to be addressed. This year, the report includes priority ratings for recommendations; being urgent, necessary and beneficial. The report is attached.

Ngā Take/Kōrerorero | Issues/Discussion

The report sets out Audit NZ recommendations and their priority.

Mōrearea | Risk

There is a risk that actions undertaken by management to address internal control deficiencies may not be considered sufficient or appropriate to address Audit New Zealand’s concerns.

In order to mitigate this risk, the financial control and risk teams have regular open discussions with Audit New Zealand to ensure that matters are being progressed to Audit New Zealand’s satisfaction.

Ngā take ā-ture, ā-Kaupapahere hoki | Legal and policy considerations

There are no legal issues arising directly arising from the information contained in the report.

Local Government Act 2002 (LGA 2002) Decision-making requirements

Having regard to the decision-making provisions in the LGA 2002 and Councils Significance Policy, a decision in accordance with the recommendations is assessed as having a low level of significance.

All Council decisions, whether made by the Council itself or under delegated authority, are subject to the decision-making requirements in sections 76 to 82 of the LGA 2002. This includes any decision not to take any action.

Local Government Act 2002 decision making requirements	Staff/officer comment
Section 77 – Council needs to give consideration to the reasonable practicable options available.	Options are addressed above in this report.
Section 78 – requires consideration of the views of Interested/affected people
Section 79 – how to achieve compliance with sections 77 and 78 is in proportion to the significance of the issue	The Significance and Engagement Policy is considered above. This issue is assessed as having a low level of significance.
Section 82 – this sets out principles of consultation.

Policy Considerations

1. To the best of the writer’s knowledge, this recommendation is not significantly inconsistent with nor is anticipated to have consequences that will be significantly inconsistent with any policy adopted by this local authority or any plan required by the Local Government Act 2002 or any other enactment.

Ngā Pāpāhonga me ngā Whakawhitiwhitinga | Communications and engagement

No communications is planned. Council will continue to work on resolving and clearing the outstanding issues.

Ngā take ā-Ihinga | Consent issues

There are no consent issues.

Te Tākoha ki ngā Hua mō te Hapori me te here ki te whakakitenga o te Kaunihera | Contribution to Community Outcomes

The relevant Community Outcomes are set out below:

Connected Infrastructure

Infrastructure and services are fit for purpose and affordable, now and in the future.

Quality infrastructure is provided to support community wellbeing.

We have positive partnerships with external providers of infrastructure to our communities.

Economic opportunities

We are a business friendly Council

Our future planning enables sustainable growth in our District.

We provide leadership and advocacy is provided to enable our communities to grow.

Healthy communities

Our community is safe, healthy and connected.

We encourage the use and development of our facilities.

We encourage community engagement and provide sound and visionary decision making.

Environmental Sustainability

We support environmentally friendly practices and technologies.

Development occurs in a sustainable and respectful manner considering kawa/protocol and tikanga/customs

We engage with our regional and national partners to ensure positive environmental outcomes for our community.

Vibrant Cultural values

We promote and protect our arts, culture, historic, and natural resources

We value and encourage strong relationships with Iwi and other cultures, recognising wāhi tapu and taonga/significant and treasured sitesand whakapapa/ ancestral heritage.

Tangata Whenua with Mana whenua status (those with authority over the land under Māori lore) have meaningful involvement in decision making.

Pānga ki te pūtea, me te puna pūtea | Financial Cost and Funding Source

There are no financial implications directly arising from the information contained in the report as no financial decision is sought.

Ngā Tāpiritanga | Attachments

a.	Matamata-Piako District Council - Report to Governors - Final (Under Separate Cover)

Ngā waitohu | Signatories

Author(s)

Niall Baker

Policy Team Leader

Anne Gummer

Policy Advisor

Approved by

Erin Bates

Strategic Partnerships and Governance Manager

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

12 September 2023

7 Pūrongo me whakatau | Decision Reports

7.9 Audit New Zealand Audit Proposal Letter for years ending 30 June 2023, 2024 and 2025

CM No.: 2765945

Te Kaupapa | Purpose

The purpose of this report is to provide the Committee an opportunity to discuss the Audit proposal letter for the years ending 30 June 2023, 2024 and 2025.

Rāpopotonga Matua | Executive Summary

Audit New Zealand have provided their audit fee proposal for the audit of the financial years ending 30 June 2023, 2024 and 2025.

The audit proposal letter contains the statutory basis for the audit and how audit fees are set, the entities covered by this proposal, team members and hours planned to be spent and proposed fees.

René van Zyl, Audit Director and Claudia Brink, Audit Manager will be in attendance to answer any questions the committee may have in relation to this letter.

WHAKATAUNGA Ā-KOMITI | Committee Resolution

That:

1. The information be received.

2. The Committee provide any feedback on the Audit proposal letter for the years ending 30 June 2023, 2024 and 2025.

Resolution number YV/2023/00009

Moved by: Chair J Kana

Seconded by: Mayor A Wilcock

KUA MANA | CARRIED

Horopaki | Background

The Annual Report contains information regarding the Council’s financial and non-financial performance for that year against budgets and specified performance targets. The Annual Report is required to be audited by independent auditors. The auditors appointed to audit Council by the Auditor-General are Audit New Zealand (Audit NZ).

An audit engagement provides readers with a high level of assurance that the financial statements fairly reflect the group’s financial position, performance and cash flows for the period.

The audit proposal letter provides details on the audit fee budget for the financial years ending 30 June 2023, 2024 and 2025 and outlines areas that may result in an increase in fees over and above budgeted fees.

Ngā Take/Kōrerorero | Issues/Discussion

The audit proposal letter generally provides information on:

· audit fees

o the statutory basis for the audit

o how audit fees are set

o assumptions relating to the fees

o the proposed fees for the audit for the three financial years covered by the engagement letter

o reasons for any changes to fees

o what the Office of the Auditor-General (OAG) overhead charge covers

· audit hours

o hours Audit New Zealand and the Office of the Auditor-General plan to spend on the audit for the financial years ending 30 June 2023 - 2025

o reasons for any changes to hours

· entities covered by the proposal

· key members of the audit team.

The letter lists examples of items that could potentially cause an increase in the proposed fees.

The previous fees for 2022 and proposed audit fees for the financial years 2023, 2024, and 2025 are as follows:

Total audit fees

2022 actual

2023 budgeted

2024

2025

Total audit costs including estimated disbursements

222,123

217,549

233,501

250,567

Mōrearea | Risk

The key risk related to this letter is a potential increase in audit fees. This could occur if there is a significant increase in the audit scope which would require extra audit effort, such as ongoing work in relation to asset revaluations, costs related to the implementation of three waters reform legislation etc.

To mitigate this risk, Audit New Zealand and Council staff meet regularly to discuss audit issues to ensure they are managed and resolved efficiently. Council staff are also discussing internally and with Audit New Zealand how the annual audit can be made more efficient.

Ngā Whiringa | Options

There are no options.

Ngā take ā-ture, ā-Kaupapahere hoki | Legal and policy

The requirement for the Annual Report to include an audit opinion is a statutory requirement under the Local Government Act 2002.

Section 98 of the Local Government Act 2002 requires Council to prepare and adopt in respect of each financial year an annual report.

Local Government Act 2002 (LGA 2002) Decision-making requirements

Having regard to the decision making provisions in the LGA 2002 and Councils Significance Policy, a decision in accordance with the recommendations is assessed as having a low level of significance.

Local Government Act 2002 decision making requirements	Staff/officer comment
Section 77 – Council needs to give consideration to the reasonable practicable options available.	There are no options to consider – the Committee is asked to give any feedback and on the audit proposal.
Section 78 – requires consideration of the views of Interested/affected people	The audit is a statutory requirement. There is no community impact.
Section 79 – how to achieve compliance with sections 77 and 78 is in proportion to the significance of the issue	The Significance and Engagement Policy is considered above. This issue is assessed as having a low level of significance.
Section 82 – this sets out principles of consultation.	There is no consultation regarding the audit process.

Policy Considerations

Ngā Pāpāhonga me ngā Whakawhitiwhitinga | Communications and engagement

Council staff have confirmed and finalises the council and Audit New Zealand’s delivery timelines, to ensure a timely and efficient annual audit process.

Ngā take ā-Ihinga | Consent issues

There are no consent issues.

Te Tākoha ki ngā Hua mō te Hapori me te here ki te whakakitenga o te Kaunihera | Contribution to Community Outcomes

The relevant Community Outcomes are set out below:

Connected Infrastructure

Infrastructure and services are fit for purpose and affordable, now and in the future.

Quality infrastructure is provided to support community wellbeing.

We have positive partnerships with external providers of infrastructure to our communities.

Economic opportunities

We are a business friendly Council

Our future planning enables sustainable growth in our District.

We provide leadership and advocacy is provided to enable our communities to grow.

Healthy communities

Our community is safe, healthy and connected.

We encourage the use and development of our facilities.

We encourage community engagement and provide sound and visionary decision making.

Environmental Sustainability

We support environmentally friendly practices and technologies.

Development occurs in a sustainable and respectful manner considering kawa/protocol and tikanga/customs

We engage with our regional and national partners to ensure positive environmental outcomes for our community.

Vibrant Cultural values

We promote and protect our arts, culture, historic, and natural resources

We value and encourage strong relationships with Iwi and other cultures, recognising wāhi tapu and taonga/significant and treasured sitesand whakapapa/ ancestral heritage.

Tangata Whenua with Mana whenua status (those with authority over the land under Māori lore) have meaningful involvement in decision making.

Pānga ki te pūtea, me te puna pūtea | Financial Cost and Funding Source

The proposed audit fees are detailed above.

Funding is allocated in each Long Term Plan/Annual Plan to produce and audit the Annual Report.

i. Cost

The production of the Annual Report and Summary has a budget of $7,000 (excluding audit costs) for production of the Annual Report and Summary.

Audit fees have a budget of $145,000. In view of the audit proposal letter, the budget will need to be reviewed.

ii. Funding Source

The Annual Report cost is provided for within the strategies and plans activity budgets. The Annual Report and audit are funded from general rates.

See separate report on Audit Proposal letter for 2023 Audit fees.

Ngā Tāpiritanga | Attachments

a.	Matamata-Piako District Council - Audit Proposal Letter_31.08.23

Ngā waitohu | Signatories

Author(s)

Niall Baker

Policy Team Leader

Anne Gummer

Policy Advisor

Approved by

Niall Baker

Policy Team Leader

Erin Bates

Strategic Partnerships and Governance Manager

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

12 September 2023

7 Pūrongo me whakatau | Decision Reports

7.11 Audit Plan for the year ending 30 June 2023

CM No.: 2766005

Te Kaupapa | Purpose

The purpose of this report is for the Committee to receive the draft Audit Plan for the year ending 30 June 2023 and to provide feedback. The proposed Audit Plan has the final audit scheduled for 11 September 2023.

Rāpopotonga Matua | Executive Summary

Audit NZ have provided an audit plan for the audit for the year ending 30 June 2023. The purpose of this audit plan is to discuss audit risks and issues, audit process, reporting protocols, audit logistics and expectations.

WHAKATAUNGA Ā-KOMITI | Committee Resolution

That:

1. The information be received.

2. The Committee receive the draft Audit Plan for the year ending 2023 and provided feedback.

Resolution number YV/2023/00011

Moved by: Chair J Kana

Seconded by: Cr G Thompson

KUA MANA | CARRIED

Horopaki | Background

Section 98 of the Local Government Act 2002 requires Council to prepare and adopt in respect of each financial year an annual report. The annual report contains information regarding the Council’s financial and non-financial performance for that year against budgets and specified performance targets. The annual report is required to be audited by independent auditors. The auditors appointed to audit Council by the Auditor General are Audit New Zealand.

Ngā Take/Kōrerorero | Issues/Discussion

Attached to the report is the draft 2023 Audit Plan, which formally sets out arrangements for this year’s audit.

The Audit Plan outlines the proposed approach to the audit, matters of particular interest in the audit approach (both for Council specifically and the local government sector in general), fees and timeline.

There will be additional audit focus area on the pecuniary interests register, materiality and the performance measures.

Ngā Whiringa | Options

The Committee has the option of providing feedback to Council on the Audit Plan for the year ending 30 June 2023.

Ngā take ā-ture, ā-Kaupapahere hoki | Legal and policy considerations

Section 98 of the Local Government Act 2002 requires Council to prepare and adopt an annual report each financial year.

There are no policy or bylaw issues.

Local Government Act 2002 (LGA 2002) Decision-making requirements

Having regard to the decision making provisions in the LGA 2002 and Councils Significance Policy, a decision in accordance with the recommendations is assessed as having a low level of significance.

Local Government Act 2002 decision making requirements	Staff/officer comment
Section 77 – Council needs to give consideration to the reasonable practicable options available.	There are no options to consider – the Committee is asked to give any feedback on the audit plan.
Section 78 – requires consideration of the views of Interested/affected people	The audit is a statutory requirement. There is no community impact.
Section 79 – how to achieve compliance with sections 77 and 78 is in proportion to the significance of the issue	The Significance and Engagement Policy is considered above. This issue is assessed as having a low level of significance.
Section 82 – this sets out principles of consultation.	There is no consultation regarding the audit process.

Policy Considerations

Ngā Pāpāhonga me ngā Whakawhitiwhitinga | Communications and engagement

There are no communication or consultation issues.

Timeframes

The proposed Audit plan contains the final audit programme. Adoption of the Annual Report is scheduled for 25 October 2023 Council meeting.

Ngā take ā-Ihinga | Consent issues

There are no consent issues.

Te Tākoha ki ngā Hua mō te Hapori me te here ki te whakakitenga o te Kaunihera | Contribution to Community Outcomes

The relevant Community Outcomes are set out below:

Connected Infrastructure

Infrastructure and services are fit for purpose and affordable, now and in the future.

Quality infrastructure is provided to support community wellbeing.

We have positive partnerships with external providers of infrastructure to our communities.

Economic opportunities

We are a business friendly Council

Our future planning enables sustainable growth in our District.

We provide leadership and advocacy is provided to enable our communities to grow.

Healthy communities

Our community is safe, healthy and connected.

We encourage the use and development of our facilities.

We encourage community engagement and provide sound and visionary decision making.

Environmental Sustainability

We support environmentally friendly practices and technologies.

Development occurs in a sustainable and respectful manner considering kawa/protocol and tikanga/customs

We engage with our regional and national partners to ensure positive environmental outcomes for our community.

Vibrant Cultural values

We promote and protect our arts, culture, historic, and natural resources

We value and encourage strong relationships with Iwi and other cultures, recognising wāhi tapu and taonga/significant and treasured sitesand whakapapa/ ancestral heritage.

Tangata Whenua with Mana whenua status (those with authority over the land under Māori lore) have meaningful involvement in decision making.

Pānga ki te pūtea, me te puna pūtea | Financial Cost and Funding Source

Funding is allocated in each Long Term Plan/Annual Plan to produce and audit the Annual Report.

i. Cost

The production of the Annual Report and Summary has a budget of $7,000 (excluding audit costs) for production of the Annual Report and Summary.

Audit fees have a budget of $145,000. The budget for the Long-Term Plan 2024-34 is currently being developed and the audit fees budget will need to be reviewed as part of this.

ii. Funding Source

The Annual Report cost is provided for within the strategies and plans activity budgets. The Annual Report and audit are funded from general rates.

See separate report on Audit Proposal letter for 2023 Audit fees.

Ngā Tāpiritanga | Attachments

a.	Audit Plan - draft 31 Aug 2023 (Under Separate Cover)

Ngā waitohu | Signatories

Author(s)

Anne Gummer

Policy Advisor

Niall Baker

Policy Team Leader

Approved by

Niall Baker

Policy Team Leader

Erin Bates

Strategic Partnerships and Governance Manager

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

12 September 2023

7 Pūrongo me whakatau | Decision Reports

7.12 Draft Annual Report 2022-23

CM No.: 2766439

Te Kaupapa | Purpose

The purpose of this report is for the Committee to review the draft Annual Report. The document will be circulated separately.

Rāpopotonga Matua | Executive Summary

The Local Government Act 2002 (LGA) requires Council to adopt its Annual Report and Summary by 31 October each year. The draft report and summary is circulated separately.

WHAKATAUNGA Ā-KOMITI | Committee Resolution

That:

1. The draft Annual Report and Summary be received.

Resolution number YV/2023/00012

Moved by: Cr B Dewhurst

Seconded by: Cr G Thompson

KUA MANA | CARRIED

Horopaki | Background

The LGA requires Council to adopt the Annual Report and Summary by 31 October each year. The Summary must be published within one month of its adoption. The Annual Report and Summary must be audited, and an opinion on the Annual Report and Summary provided to Council and the report’s readers.

The following items will be provided to Council once the Annual Report is to be adopted later this year:

a. the final Annual Report and Summary 2022-23

b. the draft Audit Opinions for the Annual Report and Summary 2022-23

c. the warrant of fitness for the Annual Report and Summary 2022-23

d. the letter of representation for the Annual Report and Summary 2022-23and staff review of representations made

e. the misstatement schedule from the Annual Report final audit

f. the draft management report on the Annual Report 2022-23

g. the Chief Executive’s Reporting Certificate for the Debenture Trust Deed

h. the Auditor’s Independent Assurance Report for the Debenture Trust Deed

i. the letter of representation for the Debenture Trust Deed and staff review of representations made.

Ngā Take/Kōrerorero | Issues/Discussion

Under the Local Government Act 2002 Council is required to obtain an audit of its Annual Report and Summary. Auditing on the Annual Report and Summary 2023-24 commenced on 12 June with the first interim audit. Final auditing begins on 11 September.

Council has a 15% interest in Waikato Regional Airport Limited (WRAL). Their audit has not been complete. Audit have indicated they will be focusing on the airport’s investment property. MPDC’s subsequent sign off will be dependent on whether there are any significant changes to the WRAL accounts.

Audit requires that any material events after balance date be reported to enable an assessment as to whether it needs to be reflected in Council’s accounts. This will continue until the Annual Report adoption. Any material events could require additional auditing and financial updates (depending on the situation) and could further affect the adoption date.

PBE FRS 48 is a new reporting standard that Council are required to apply to its performance reporting in this year’s Annual Report. It applies to public benefit entities and came into effect for annual financial reports covering periods after 1 January 2022. The standard applies to Section 3 of the Annual Report which reports on the performance of each of Council’s groups of activities. The way Council apply this new standard is a particular focus of this year’s Annual Report audit. The standard is attached to this report.

The new reporting standard requires an entity to present information that enables users to understand and assess an entity’s service performance for the year.

There are three key qualitative characteristics to keep in mind when considering what service performance information to present:

• Faithful Representation – to be useful, service performance information must be faithfully representative of the entity’s service performance. To provide users with confidence that service performance information is presented in an unbiased manner that reports both favourable and unfavourable aspects of an entity’s service performance, the users need information to understand how each reported performance measure has been measured and/or evaluated.

• Understandability – for users to be able to form an assessment of an entity’s performance it should be clear what each performance measure means and how it is being measured or evaluated. More complex measures or descriptions will likely require increased disclosure to explain the measurement basis and how it was applied.

• Verifiability – to ensure an entity’s service performance information is reliable, and faithfully representative, the reported service performance measures must be capable of independent verification. To be verifiable, the measurement bases or evaluation methods need to be made avaliable to the intended users so that users can understand the extent to which the performance claims can be substantiated.

Staff are currently in the process of working with Audit to ensure Council’s performance reporting is presented in line with this new standard.

Financial Summary

A Draft Annual Report is due to be submitted to Audit on 6 September 2023.

In 2022-23, Council has focused on maintaining its services to support the community. Council delivered an extensive range of activities and services to similar levels as detailed in the Long Term Plan 2021-31 and at a similar standard as previous years. Comparisons to both targets and previous year’s results are available in the full Annual Report.

There are a total of 58 performance measure targets which Council reports on in the Annual Report. Council achieved its target performance for 37 of these.

Council partially achieved its target on one measure, and did not achieve its target on 19 measures. Two measurement results are pending.

One performance measures was not measured; the footpath level of service which is measured by an assessment due in 2023-24.

Mōrearea | Risk

There is a risk register in place.

Ngā Whiringa | Options

The Committee may wish to provide comment on the draft report.

Ngā take ā-ture, ā-Kaupapahere hoki | Legal and policy considerations

The LGA requires Council to adopt the Annual Report and Summary by 31 October each year.

Local Government Act 2002 (LGA 2002) Decision-making requirements

Having regard to the decision making provisions in the LGA 2002 and Councils Significance Policy, a decision in accordance with the recommendations is assessed as having a low level of significance.

Local Government Act 2002 decision making requirements	Staff/officer comment
Section 77 – Council needs to give consideration to the reasonable practicable options available.	Options are addressed above in this report.
Section 78 – requires consideration of the views of Interested/affected people	There are no affected persons; this is a statutory audit process.
Section 79 – how to achieve compliance with sections 77 and 78 is in proportion to the significance of the issue	The Significance and Engagement Policy is considered above. This issue is assessed as having a low level of significance.
Section 82 – this sets out principles of consultation.	There is no consultation planned.

Policy Considerations

2. This recommendation is ‘significantly inconsistent’ with adopted policies and plans. This means Council needs to clearly identify:

a. the inconsistency; and

b. the reasons for the inconsistency; and

c. any intention of Council to amend the policy or plan to accommodate the decision.

Ngā Pāpāhonga me ngā Whakawhitiwhitinga | Communications and engagement

The Final Annual Report and report on Audit of the Annual Report will be presented to the Audit & Risk Committee 30 November, with Council adopting the Annual Report at its December meeting.

The 2022-23 Annual Report Summary will be available to the public on Council’s website following adoption. An E-newsletter will be sent to those who have indicated an interest in the Annual Report and Summary.

Ngā take ā-Ihinga | Consent issues

There are no consent issues.

Te Tākoha ki ngā Hua mō te Hapori me te here ki te whakakitenga o te Kaunihera | Contribution to Community Outcomes

The relevant Community Outcomes are set out below:

Connected Infrastructure

Infrastructure and services are fit for purpose and affordable, now and in the future.

Quality infrastructure is provided to support community wellbeing.

We have positive partnerships with external providers of infrastructure to our communities.

Economic opportunities

We are a business friendly Council

Our future planning enables sustainable growth in our District.

We provide leadership and advocacy is provided to enable our communities to grow.

Healthy communities

Our community is safe, healthy and connected.

We encourage the use and development of our facilities.

We encourage community engagement and provide sound and visionary decision making.

Environmental Sustainability

We support environmentally friendly practices and technologies.

Development occurs in a sustainable and respectful manner considering kawa/protocol and tikanga/customs

We engage with our regional and national partners to ensure positive environmental outcomes for our community.

Vibrant Cultural values

We promote and protect our arts, culture, historic, and natural resources

We value and encourage strong relationships with Iwi and other cultures, recognising wāhi tapu and taonga/significant and treasured sitesand whakapapa/ ancestral heritage.

Tangata Whenua with Mana whenua status (those with authority over the land under Māori lore) have meaningful involvement in decision making.

Pānga ki te pūtea, me te puna pūtea | Financial Cost and Funding Source

The production of the Annual Report and Summary has a budget of $7,000. Annual Report audit fees have a budget of $155,000.

The Annual Report cost is provided for within the Strategies and Plans activity budgets. The Annual Report and audit are funded from general rates.

Ngā Tāpiritanga | Attachments

a.	PBE FRS 48 Service Performance Reporting - PBE FRS 48 Jan22 (Under Separate Cover)

Ngā waitohu | Signatories

Author(s)

Niall Baker

Policy Team Leader

Anne Gummer

Policy Advisor

Approved by

Erin Bates

Strategic Partnerships and Governance Manager

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

12 September 2023

7 Pūrongo me whakatau | Decision Reports

7.13 Limited Assurance Engagement in respect of the Council’s Debenture Trust Deed

CM No.: 2766028

Te Kaupapa | Purpose

The purpose of this report is to receive a copy of the audit assurance engagement letter for Council’s Debenture Trust Deed.

Rāpopotonga Matua | Executive Summary

Council, in common with other local authorities and commercial entities, uses a debenture trust deed to secure its debt.

Council is required by the trustees to have an annual audit of its debenture trust deed processes.

Attached to the report is the Confirmation of Engagement – Limited Assurance Report in respect of the Matamata-Piako District Council’s Debenture Trust Deed.

WHAKATAUNGA Ā-KOMITI | Committee Resolution

That:

1. The Limited Assurance Engagement Letter for the Council’s Debenture Trust Deed be received.

Resolution number YV/2023/00013

Moved by: Chair J Kana

Seconded by: Mayor A Wilcock

KUA MANA | CARRIED

Horopaki | Background

Council has put a Debenture Trust Deed in place. As a shareholder of the New Zealand Local Government Funding Agency (LGFA), Council is required to have a Debenture Trust Deed to be able to participate as a borrower and a shareholder of the LGFA and take advantage of the lower interest rate margins.

One of the key advantages of the Debenture Trust Deed is that it is recognised as an industry standard for local authorities. A Debenture Trust Deed is a deed entered into between a local authority and a trustee under which the Council grants a security interest in its rates and rates revenue to the trustee to hold on behalf of holders of "stock" issued under the Debenture Trust Deed. The Council can then issue "stock" to creditors which has the benefit of the security granted to the trustee.

Under the Debenture Trust Deed, Council grants this same security to its financiers by issuing either "Security Stock" or "Debenture Stock". Debenture Stock is a type of debt instrument (for example, a bond) which also grants its holders the benefit of the security over rates granted to the trustee.

Ngā Take/Kōrerorero | Issues/Discussion

The Confirmation of Engagement – Limited Assurance Report in respect of the Matamata-Piako District Council’s Debenture Trust Deed was received on 28 August. This confirms the terms of the Limited Assurance Engagement and the nature of, and limitations to the services that Audit NZ will provide.

Ngā Whiringa | Options

The Committee has the option of providing feedback on the Report provided.

Ngā take ā-ture, ā-Kaupapahere hoki | Legal and policy considerations

There are no legal or policy matters.

Local Government Act 2002 (LGA 2002) Decision-making requirements

Having regard to the decision making provisions in the LGA 2002 and Councils Significance Policy, a decision in accordance with the recommendations is assessed as having a low level of significance.

Local Government Act 2002 decision making requirements	Staff/officer comment
Section 77 – Council needs to give consideration to the reasonable practicable options available.	There are no options to consider- the report is for information.
Section 78 – requires consideration of the views of Interested/affected people	There is no community impact.
Section 79 – how to achieve compliance with sections 77 and 78 is in proportion to the significance of the issue	The Significance and Engagement Policy is considered above. This issue is assessed as having a low level of significance.
Section 82 – this sets out principles of consultation.	There is no consultation regarding the assurance report.

Policy Considerations

Ngā Pāpāhonga me ngā Whakawhitiwhitinga | Communications and engagement

There are no communication, consultation issues.

Ngā take ā-Ihinga | Consent issues

There are no consent issues.

Te Tākoha ki ngā Hua mō te Hapori me te here ki te whakakitenga o te Kaunihera | Contribution to Community Outcomes

The relevant Community Outcomes are set out below:

Connected Infrastructure

Infrastructure and services are fit for purpose and affordable, now and in the future.

Quality infrastructure is provided to support community wellbeing.

We have positive partnerships with external providers of infrastructure to our communities.

Economic opportunities

We are a business friendly Council

Our future planning enables sustainable growth in our District.

We provide leadership and advocacy is provided to enable our communities to grow.

Healthy communities

Our community is safe, healthy and connected.

We encourage the use and development of our facilities.

We encourage community engagement and provide sound and visionary decision making.

Environmental Sustainability

We support environmentally friendly practices and technologies.

Development occurs in a sustainable and respectful manner considering kawa/protocol and tikanga/customs

We engage with our regional and national partners to ensure positive environmental outcomes for our community.

Vibrant Cultural values

We promote and protect our arts, culture, historic, and natural resources

We value and encourage strong relationships with Iwi and other cultures, recognising wāhi tapu and taonga/significant and treasured sitesand whakapapa/ ancestral heritage.

Tangata Whenua with Mana whenua status (those with authority over the land under Māori lore) have meaningful involvement in decision making.

Pānga ki te pūtea, me te puna pūtea | Financial Cost and Funding Source

The estimated fee for this Limited Assurance Engagement is $7,700.

Ngā Tāpiritanga | Attachments

a.	Matamata-Piako District Council D23 -Tri-partite engagement letter - Debenture Trust Deeds (Under Separate Cover)

Ngā waitohu | Signatories

Author(s)

Niall Baker

Policy Team Leader

Anne Gummer

Policy Advisor

Approved by

Erin Bates

Strategic Partnerships and Governance Manager

Larnia Rushbrooke

Finance and Business Services Manager

Komiti o te Mōrearea me te Tūmaru | Risk & Assurance Committee

12 September 2023

8 Ngā Pūrongo Whakamārama | Information Reports

8.1 Long-Term Plan 2024-34 Update

CM No.: 2765488

Te Kaupapa | Purpose

The purpose of this report is to provide the Committee with an update on the Long Term Plan 2024-34 (LTP) project to Council.

Rāpopotonga Matua | Executive Summary

We are at the “crunchy” time of developing the Long Term Plan. While this is always a multi-faceted project with lots of moving parts, a number of teams have been affected by additional Annual Report and Annual Plan work which has made the timeframes even more critical.

The timeline for the project centres on key dates for completion of the draft documents in December 2023, auditing in January / February 2024 and consultation in March / April 2024.

WHAKATAUNGA Ā-KOMITI | Committee Resolution

That:

1. The information be received.

2. The Committee provide feedback on the Long-Term Plan 2024-34 project.

Resolution number YV/2023/00014

Moved by: Chair J Kana

Seconded by: Deputy Mayor J Thomas

KUA MANA | CARRIED

Horopaki | Background

Council is required to prepare and adopt a LTP under the LGA. The Long Term Plan sets out the activities, budgets, Financial Strategy and key financial policies of the Council for the next 10 years and the Infrastructure Strategy for the next 30 years. The LTP is required to be updated every three years, with the last LTP being approved in 2021 (available online https://www.mpdc.govt.nz/plans/long-term-plan).

The LTP:

· describes the type of district our communities have told us they want – our community outcomes

· identifies the key projects to take place over the next 10 years

· provides an overview of each activity we will carry out and the services we will provide for the next ten years determines how much this will cost and how it will be funded.

It also provides communities the opportunity to have a say on where Council are heading and to ensure planning is robust. In completing the plan Council are required to do a number of things, including:

· take a sustainable development approach and promote community interests

· carry out our business in a clear, transparent and accountable manner

· operate in an efficient and effective manner, using sound business practices

· take into account community views by offering clear information and the opportunity to present views

· provide opportunities for Māori to contribute to decision making

· collaborate and co-operate with other agencies and councils to achieve desired outcomes.

The LTP is a complex document covering all activities of Council, major strategic documents, financial policies, auditing and a large consultation component with the community.

The LTP must be adopted prior to 30 June 2024. The project timeline for LTP is typically 18 months or more, and involves staff across the whole organisation, elected members and the community. A high level overview of the timeline is set out under Communication and Timeline heading below.

Ngā Take/Kōrerorero | Issues/Discussion

Council workshops are scheduled on a weekly basis on a Wednesday (other than when formal Council meetings occur) through to December 2023 to provide adequate opportunities for members to discuss and consider issues relevant to the project.

Overall timeline

The timeline for the project centres on key dates for completion of the draft documents in December 2023, auditing in January / February 2024 and consultation in March / April 2024. The Project on a Page (attached) provides an overview of the different building blocks and the associated timelines for the project. The below table provides a summary of key milestones and timelines.

Audit

Audit NZ have requested a meeting with Council staff to discuss the LTP. The indicative audit timelines are for audit planning from 11 to 14 December 2023, and auditing from 15 January to 1 March 2024.

A detailed audit delivery timeline has been requested. The detailed timeline should include for example, when the following quality reviewed documents will be available for audit:

· Consultation document

· Infrastructure strategy

· Financial strategy

· Financials

· Performance framework

· Other key information

At the time of preparing this report, the meeting with Audit NZ staff had not taken place. A verbal update can be provided at the Committee meeting.

Key

	= in progress / on track
	= completed
	= completion delayed / some issues
	= not on track / not started

Description	Start	Finish	Comments	Status
Briefing Papers	Mid-2022	January/ February 2023	Completed and distributed to elected members
Demographic/Growth/Economic/Assumptions - NIDEA/ - FutureProof (demographic projections) - Infometrics (economics)	Oct 2021	May 2023	Completed - Workshop with technical experts held on 9 August. Te Ngira: Institute for Population Research Prof. Michael Cameron (demographic projections) Alchemists: Tony Fenton (for land use projections)
Revaluation of Assets	Jan 2023	June 2023	Ongoing – due for completion mid-September 2023.
Community Outcomes/Vision Review	February 2023	June 2023	Completed – new strategic direction has been formally adopted by Council
Rates Structure	April 2023	June 2023	Workshop held 2^nd August. Direction to be confirmed by Council
Activity Plans (including budgets)	April 2023	Aug/Sep 2023	Work underway
~~Right Debate (pre engagement – possible level of service review)~~	~~April 2023~~	~~Aug 2023~~	No longer planned
Infrastructure and Financial Strategy	April 2023	Oct 2023	Work underway
Asset Management Plans (excluding 3 water assets)	Feb 2023	Oct 2023	Work underway
Policy Review	April 2023	Oct 2023	Significance and engagement policy has been adopted. Workshops on revenue and financing policy workshops scheduled in September 2023.
Council controlled organisation section	July 2023	Nov 2023	Not yet commenced.
Māori participation in decision making	July 2023	Oct 2023	Iwi aspirations have been discussed with Te Mana Whenua Forum and Council – further engagement between Council and Forum to occur.
Budgets/ Financials/ Notes	July 2023	Dec 2023	Budgeting is scheduled for September/ October 2023
Document development	July 2023	Dec 2023	Work underway
Quality checks and administration	July 2023	Dec 2023	Not yet commenced.
Communications Strategy and implementation	Feb 2024	Dec 2024	The engagement approach will be determined by the topics of the Consultation Document.
External Audit Process	Jan 2024	June 2024	Not yet commenced, audit dates to be confirmed with Audit NZ. Meeting with Audit NZ scheduled for early September 2023.
Special Consultative Procedure	Jan 2024	June 2024	Engagement will be undertaken in early 2024.

Three Waters

The Government’s Water Services Reform (previously known as Three Waters) aims to improve the safety, affordability and reliability of drinking water, wastewater and stormwater services. It involves a new service delivery model, and quality, economic and consumer protection regulation for the sector.

The Water Services Entities Act 2022 established the Water Services Entities and their functions, objectives and accountability arrangements. It also sets transitional oversight arrangements with the Department of Internal Affairs (DIA) to review and where applicable confirm local government decisions if these will prejudice the water services reform, or have a negative impact on assets or liabilities that will be transferred to the new entities. These oversight arrangements have now taken effect.

The Government announced a reset of the reform in April 2023. The changes include increasing the number of water services entities from four to ten and establishing them in a staged approach from 2024 to 2026 (i.e. ‘go live’ between 1 July 2024 and 1 July 2026).

The new water services entity that will serve Matamata-Piako District are scheduled to transfer to a new entity on 1 July 2025.

Three other Bills to implement the reform and incorporate the reset have now completed the Parliamentary process: The Water Services Entities Amendment Bill, the Water Services Legislation Bill and the Water Services Economic Efficiency and Consumer Protection Bill.

The key features of the transitional arrangements with respect to the LTP are:

· The transitional provisions include planning and reporting obligations reflect that council responsibilities for water services will continue for part of the period covered by the 2024-34 LTP, and detailed information would only be required for the first two financial years.

· The 2024-34 LTP, and associated consultation document, must explain to communities that water services are to be transferred to a water services entity during the 2024/25 or 2025/26 financial years; the implications of, and any significant risks associated with, the transfer; and how the council is planning to deal with these implications and risks.

· The transitional provisions set out the minimum information that needs to be included about water services in the LTP, for up to two years, only – ensuring there is continued transparency and accountability to communities about things like proposed levels of service and expenditure.

· Transitional provisions inserted into the Local Government (Rating) Act clarify that local authorities should set and that local authorities should set and collect rates for water services the whole financial year. If responsibilities are transferred to a entity part-way way through that year, any unapplied rates revenues would also be transferred to entity.

Provisions affecting the 2024-34 LTP

· Must plan to at least maintain existing levels of service

· The LTP must include information in Schedule 10 for groups of activities –for the first two years:

o capital expenditure for groups of activities (Schedule 10 of the Local Government Act 2002, clause 3)

o statement of intended levels of service provision (Schedule 10, clause 4)

o funding impact statement for groups of activities (Schedule 10, clause 5)

o forecast financial statements (Schedule 10, clause 12)

o funding impact statement (Schedule 10, clause 15)

[This information is not required for 2025/26 if responsibilities are being transferred on/before 1 July 2025].

Councils are not required to:

· include information on DIA non-financial performance measures for water services (though still need to comply with PBE FRS48 Service Performance Reporting)

· include information on water services in infrastructure strategies

· estimate the effects of any uncertainty relating to water services reforms

In addition, Councils are not required to amend an adopted LTP to deal with any change or decision on entity establishment dates.

Mōrearea | Risk

Risk management involves the identification and assessment, then avoidance, mitigation or elimination of risks. An LTP risk register has been developed, and will be monitored and updated throughout the project.

The Project Team is also maintaining an Issues Register to capture issues as they arise and ensure issues are considered and reviewed in a timely manner as they relate to the project.

A key risk for the LTP remains the transition phase for the water reform. Also, the Water Services Reform may be repealed or significantly changed if there is a change in government following the general election.

Ngā Whiringa | Options

Council may wish to consider providing any feedback or comments on the Project Plan and timeline.

Ngā take ā-ture, ā-Kaupapahere hoki | Legal and policy considerations

Requirement for a Long Term Plan

The preparation of the LTP is a requirement under the Local Government Act 2002. Schedule 10 of the LGA sets out the requirements for a LTP. The LTP must include information about;

- Community Outcomes

- Groups of Activities

- Capital Expenditure for groups of activities

- Statement of service provision

- Funding impact statement for groups of activities

- Variation between territorial authority’s longer term plan and assessment of water and sanitary services and waste management plans

- Council controlled organisations

- Development of Māori capacity to contribute to decision-making processes

- Financial strategy and Infrastructure Strategy

- Revenue and financing policy

- Significant and engagement policy

- Forecast financial statements

- Financial statements for previous year

- Statement concerning balancing of budget

- Funding impact statement

- Rating base information

- Reserve funds

- Significant forecasting assumption

Mayoral Powers

Under LGA s41A, “it is the role of a mayor to lead the development of the territorial authority’s plans (including the long-term plan and the annual plan), policies, and budgets for consideration by the members of the territorial authority.”

Council policies and strategies

As part of the preparation of the LTP, Activity and Asset Management Plans will be checked against Council’s key strategic and policy documents and wider regional and national documents for strategic fit. The preparation of the Long Term Plan may lead to the review of some Council policy documents.

Local Government Act 2002 (LGA 2002) Decision-making requirements

Having regard to the decision making provisions in the LGA 2002 and Councils Significance Policy, a decision in accordance with the recommendations is assessed as having a low level of significance.

Local Government Act 2002 decision making requirements	Staff/officer comment
Section 77 – Council needs to give consideration to the reasonable practicable options available.	This report provides the Committee with an update; there are no options to consider at this stage.
Section 78 – requires consideration of the views of Interested/affected people	The LTP is subject to a consultative process
Section 79 – how to achieve compliance with sections 77 and 78 is in proportion to the significance of the issue	The Significance and Engagement Policy is considered above. This issue is assessed as having a Low level of significance, as this report is an information update. The LTP overall has higher signififance
Section 82 – this sets out principles of consultation.	<Insert text> The LTP is subject to a consultative process and these principles will be considered as part of the consultation/communications plan.

Policy Considerations

Ngā Pāpāhonga me ngā Whakawhitiwhitinga | Communications and engagement

The Long Term Plan project is one of Council’s key opportunities to engage with our communities to find out what their aspirations and priorities are.

The LTP is subject to the special consultative process under the LGA (s83). The special consultative process is a structured one month submission process with a hearing for those who have submitted and wish to speak to their submission.

A Communication and Engagement Strategy for the project will be discussed with Council in the latter part of 2023. This strategy will set out how we plan to engage with and get our communities involved in the development of the LTP. There is no pre-engagement planned prior to the development of the consultation document.

Ngā take ā-Ihinga | Consent issues

There are no consent issues.

Te Tākoha ki ngā Hua mō te Hapori me te here ki te whakakitenga o te Kaunihera | Contribution to Community Outcomes

The relevant Community Outcomes are set out below:

Connected Infrastructure

Infrastructure and services are fit for purpose and affordable, now and in the future.

Quality infrastructure is provided to support community wellbeing.

We have positive partnerships with external providers of infrastructure to our communities.

Economic opportunities

We are a business friendly Council

Our future planning enables sustainable growth in our District.

We provide leadership and advocacy is provided to enable our communities to grow.

Healthy communities

Our community is safe, healthy and connected.

We encourage the use and development of our facilities.

We encourage community engagement and provide sound and visionary decision making.

Environmental Sustainability

We support environmentally friendly practices and technologies.

Development occurs in a sustainable and respectful manner considering kawa/protocol and tikanga/customs

We engage with our regional and national partners to ensure positive environmental outcomes for our community.

Vibrant Cultural values

We promote and protect our arts, culture, historic, and natural resources

We value and encourage strong relationships with Iwi and other cultures, recognising wāhi tapu and taonga/significant and treasured sitesand whakapapa/ ancestral heritage.

Tangata Whenua with Mana whenua status (those with authority over the land under Māori lore) have meaningful involvement in decision making.

Pānga ki te pūtea, me te puna pūtea | Financial Cost and Funding Source

The development of and consultation on the Long Term Plan is funded from the Strategy and Engagement Activity Operating budget.

Ngā Tāpiritanga | Attachments

There are no attachments for this report.

Ngā waitohu | Signatories

Author(s)

Niall Baker

Policy Team Leader

Approved by

Erin Bates

Strategic Partnerships and Governance Manager

a.	Annual Safety and Wellness Report 2022-2023
b .	Safety and Wellness Quarterly Report April-June 2023
c .	May 2023 Safety and Wellness Update
d .	July 2023 Safety and Wellness Update