Risk Management and Auditing

Audit and Finance Committee 

The Audit and Finance Committee is in place to assist Council in the effective management of financial reporting, risk and internal controls. The committee meets on a monthly basis.

Its membership comprises of 5 elected members, Cllr Knight, Cllr McNally, Cllr Court, Cllr Baker and the Mayor, the Chief Executive Officer, General Manager Corporate Services, Financial Controller, and Manager Business Performance & IT, and General Managers.

During the year, the Audit and Finance Committee dealt with:

  • 2013/14 Annual Budget.
  • Current year financial reporting. 
  • Risk management.
  • Outstanding debtors review.
  • Council controlled organisation reporting and statement of intent. 
  • Monthly and quarterly performance reporting. 
  • Strategic risk reporting. 
  • Internal Audit programme.

Internal Audit Programme

The following reviews were undertaken during the year:

  • Review of Development Contributions policies, processes and methods of payment and collections. Recommendations in place.
  • Review of Road Assessment and Maintenance Management System with Roading Business Unit by Business Performance and IT Team.
  • Far North District Council IT Infrastructure review by Eagle Technologies and review of IT security audit by Keon Securities
  • Completion of drinking water annual assessor audit.

External Audit Programme

The following reviews were undertaken during the year:

  • Council established a Roading Business Unit twelve months ago and successfully received a clear audit by New Zealand Transport Agency. 
  • Resource Consents compliance audit completed by Northland Regional Council.

Insurance Audits

The following reviews were undertaken during the year:

  • Insurable risk review – to ensure that Council maintains the correct balance in insurance cover versus risk.

Insurance 

Council has a responsibility to the community to ensure that the nature and extent of our insurance cover is adequate. Council has insurance policies that cover: 

  • Material Damage (excluding underground assets).
  • Business Interruption.
  • Motor vehicle.
  • Trustee Liability.
  • Statutory liability.
  • Employers liability.
  • Marine  hull.
  • Forestry.
  • Crime.
  • Public liability and indemnity.

These insurances are reviewed annually and adjusted accordingly, having consideration for the various associated risks, past history and the benefit of expert advice of Council’s insurance brokers. 

Council liaises regularly with its insurance brokers regarding changes in legislation, court decisions and industry best practice. Council manages public and property liability claims based on the framework and advice of its insurers. Regular contact is made with the insurance brokers to discuss claims and/or risk mitigation activities. 

Risk Management  

The Far North Risk Management Policy 2012/13, sets out Council’s commitment to risk management. The policy is aligned to the risk management standard, AS/ISO31000 and sets key directions for further development of Council’s risk management systems and processes during 2013/15. It is applicable to the management of all risks facing the organisation including; financial, reputation, Occupational Health and Safety, personnel and legislative. 

Year 1 actions implemented during 2012/13 included: 

  • Implementation of a risk management 
  • software programme.
  • Allocation of resource focusing on risk 
  • for the organisation.
  • Development of a training and awareness programme.
  • Quarterly meetings conducted with the 
  • General Managers and Managers.
  • Updated risk management policy and operational framework communicated across the organisation.

Action plan for the next 12 months include:

  • Review and develop frameworks, procedures and tools.
  • Improve access of frameworks, procedures and tools for staff.
  • Consideration of risk registers in organisation business planning.
  • Improve consideration of risk across organisational processes including Council reports and business cases. 

Risk categories 

The following broad categories of risks to the organisation have been considered in our risk management framework:

Strategy: Strategic risks are those risks at an organisation level.
Operational: Operational risks are those risks at an operational level.
Projects: Project risk assessments provide the capability of identifying risks linked to Actions/projects.