Agenda of Audit & Risk Committee meeting

Chair	Independent (to be appointed)
Deputy chair	Cr Steve Morris
Members	Deputy Mayor Jen Scoular Mayor Mahé Drysdale (ex officio) Rohario Murray - Tangata Whenua Representative
Non-voting members	(if any)
Quorum	Half of the members present, where the number of members (including vacancies) is even; and a majority of the members present, where the number of members (including vacancies) is odd.
Meeting frequency	Quarterly

Role

The role of the Audit and Risk Committee is:

· To assist and advise the Council in discharging its responsibility and ownership of health and safety, risk management, internal control, and financial management practices, frameworks and processes to ensure that these are robust and appropriate to safeguard the Council’s staff and its financial and non-financial assets.

Scope

· Oversee Council’s relationship with the external auditor.

· Review with the external auditor, before the audit commences, the areas of audit focus and the audit plan.

· Review with the external auditor, representations required by elected representatives and senior management for the purposes of the audit.

· Receive and review the external auditor’s report on the audit and management’s responses to any issues raised.

· Make any recommendations necessary to the Office of the Auditor-General regarding the appointment or re-appointment of an external auditor.

· Review and approve an annual internal audit plan, including the integration of that plan with Council’s risk profile, and monitor the implementation of that plan.

· Review the reports of the internal audit function, in particular considering findings, conclusions, and recommendations and management’s response to such. Make any recommendations to Council on such as the Committee considers appropriate.

· Review, approve and monitor the implementation of Council’s Risk Management Policy, including regular review of the corporate risk register.

· Review reporting of new or emerging risks as needed.

· Review the effectiveness of risk management and internal control systems including all material financial, operational, compliance, and other managerial controls.

· Review the effectiveness of health and safety policies and processes to ensure a healthy and safe workplace for representatives, staff, contractors, visitors and the public.

· Assist elected representatives and the Chief Executive to discharge their statutory roles as ‘officers’ in terms of the Health and Safety at Work Act 2015.

· Monitor compliance with laws and regulations as appropriate.

· Review and provide advice on policies relevant to the Committee’s role including, but not limited to, policies addressing fraud, protected disclosures, and conflicts of interest.

· Review and monitor policy and processes to manage responsibilities under the Local Government Official Information and Meetings Act 1987 and the Privacy Act 2020 and any actions from any Office of the Ombudsman's report.

· Review and monitor current and potential litigation and other legal risks.

Power to Act

· To make all decisions necessary to fulfil the role, scope and responsibilities of the Committee subject to the limitations imposed.

· To establish sub-committees, working parties and forums as required.

Power to Recommend

· To Council and/or any standing committee as it deems appropriate.

Audit & Risk Committee meeting minutes

19 May 2025

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MINUTES

Audit & Risk Committee meeting

Monday, 19 May 2025

Order of Business

1 Opening karakia. 3

2 Apologies. 3

3 Public forum.. 3

4 Acceptance of late items. 3

5 Confidential business to be transferred into the open. 4

6 Change to order of business. 4

7 Confirmation of minutes. 4

7.1 Minutes of the Audit & Risk Committee meeting held on 19 February 2025. 4

8 Declaration of conflicts of interest 4

9 Business. 4

9.2 Presentation of Audit New Zealand's 2025 Audit Plan. 4

9.1 Health, Safety and Wellbeing Quarterly Report: Q3 January to March 2025. 5

9.3 Status Update on Actions from Prior Audit and Risk Committee Meetings. 5

9.4 LGOIMA and Privacy Requests - Quarter 3 - 2024/25. 6

9.5 Policy Review - Risk Management Policy. 6

10 Discussion of late items. 7

11 Public excluded session. 7

11.1 Public Excluded Minutes of the Audit & Risk Committee meeting held on 19 February 2025. 7

11.2 Status Update on Actions from Prior Audit and Risk Committee Meetings - Confidential 8

11.3 Risk Register - Quarterly Update. 8

11.4 Digital/Cyber Risk Quarterly Report 8

11.5 Internal Audit & Assurance - Quarterly Update. 8

12 Closing karakia. 9

Resolutions transferred into the open section of the meeting after discussion. 9

11.3 Risk Register - Quarterly Update. 9

11.5 Internal Audit & Assurance - Quarterly Update. 9

MINUTES OF Tauranga City Council

Audit & Risk Committee meeting

HELD AT THE Tauranga City Council, Ground Floor Meeting Room, 306 Cameron Road, Tauranga

ON Monday, 19 May 2025 AT 9.30am

MEMBERS PRESENT:	Deputy Mayor Jen Scoular, Cr Steve Morris, Ms Rohario Murray (online)
ALSO PRESENT:	Cr Glen Crowther, Cr Marten Rozeboom (online), Cr Rod Taylor (online)
IN ATTENDANCE:	Paul Davidson (Chief Financial Officer), Alastair McNeill (General Manager: Corporate Services), Sheree Covell (Treasury and Financial Compliance Manager), Tracy Benjamin (Health, Safety & Wellbeing Manager), Jan Pedersen (Head of People, Performance and Culture), Joanna Thomas (Manager: Libraries & Community Hubs), Kath Norris (Team Leader: Democracy Services), Sharon Herbst (Policy Analyst), Chris Quest (Manager: Risk & Assurance), Clare Sullivan (Team Leader: Governance Services), Caroline Irvin (Governance Advisor).
EXTERNAL:	Leon Pietersie, Audit NZ

1 Opening karakia

Cr Steve Morris opened the meeting with a karakia.

2 Apologies

Apology

Committee Resolution AR/25/2/1

Moved: Deputy Mayor Jen Scoular

Seconded: Cr Steve Morris

That the apology for absence received from Mayor Mahé Drysdale be accepted.

Carried

3 Public forum

Nil

4 Acceptance of late items

Nil

5 Confidential business to be transferred into the open

Nil

6 Change to order of business

The Chairperson advised that item 9.2 would be taken before item 9.1 due to presenters being in attendance for item 9.2.

7 Confirmation of minutes

7.1 Minutes of the Audit & Risk Committee meeting held on 19 February 2025

Committee Resolution AR/25/2/2

Moved: Cr Steve Morris

Seconded: Deputy Mayor Jen Scoular

That the Minutes of the Audit & Risk Committee meeting held on 19 February 2025 be confirmed as a true and correct record.

Carried

8 Declaration of conflicts of interest

Nil

9 Business

Due to technical difficulties, the live stream began just after the start of this item.

9.2 Presentation of Audit New Zealand's 2025 Audit Plan

Staff Sheree Covell, Treasury and Financial Compliance Manager

Paul Davidson, Chief Financial Officer

External Leon Pietersie, Audit NZ

Actions

· That the correct definition of Council was used in staff reports.

· That staff provide Councillors with a report on the risk pool, specifically around financials and timing.

· That staff develop a revaluation policy and bring a report back to the Audit & Risk Committee to highlight any risk created as a result of any revaluations.

Committee Resolution AR/25/2/3

Moved: Deputy Mayor Jen Scoular

Seconded: Ms Rohario Murray

That the Audit & Risk Committee:

(a) Receives the report "Presentation of Audit New Zealand's 2025 Audit Plan".

Carried

TIMESTAMP: 19:55

9.1 Health, Safety and Wellbeing Quarterly Report: Q3 January to March 2025

Staff Tracy Benjamin, Health, Safety & Wellbeing Manager

Jan Pedersen, Head of People, Performance and Culture

Joanna Thomas, Manager: Libraries & Community Hubs

Actions

· That staff provide a more detailed breakdown of unplanned turnover, provide the dates for upcoming My Team Pulse surveys, and provide numbers instead of percentages in the results survey.

Committee Resolution AR/25/2/4

Moved: Ms Rohario Murray

Seconded: Cr Steve Morris

That the Audit & Risk Committee:

(a) Receives the report “Health, Safety and Wellbeing Quarterly Report: Q3 January to March 2025”.

Carried

TIMESTAMP: 1:00:41

9.3 Status Update on Actions from Prior Audit and Risk Committee Meetings

Staff Caroline Irvin, Governance Advisor

Alastair McNeil, General Manager Corporate Services

· It was noted that the legal risk workshop had not yet taken place, and that this action in the schedule was not yet closed.

Actions

· That a report on critical risk be brought to a Council meeting in June 2025.

· That staff consider bringing a complimentary report on critical risk to Audit & Risk Committee meetings going forward.

Committee Resolution AR/25/2/5

Moved: Cr Steve Morris

Seconded: Deputy Mayor Jen Scoular

That the Audit & Risk Committee:

(a) Receives the report "Status Update on Actions from Prior Audit and Risk Committee Meetings", noting that the public excluded workshop had not yet taken place.

(b) Notes that this is a recurring report, which will be provided to each subsequent meeting of this Committee.

Carried

TIMESTAMP: 1:06:54

9.4 LGOIMA and Privacy Requests - Quarter 3 - 2024/25

Staff Sarah Pharo, Administrator Democracy Services

Kath Norris, Team Leader: Democracy Services

Committee Resolution AR/25/2/6

Moved: Cr Steve Morris

Seconded: Ms Rohario Murray

That the Audit & Risk Committee:

(a) Receives the report "LGOIMA and Privacy Requests - Quarter 3 - 2024/25".

Carried

TIMESTAMP: 1:08:23

9.5 Policy Review - Risk Management Policy

Staff Sharon Herbst, Policy Analyst

Chris Quest, Manager: Risk & Assurance

Alastair McNeil, General Manager Corporate Services

Action

· That staff hold a workshop for Councillors on how they should carry out risk management.

Committee Resolution AR/25/2/7

Moved: Cr Steve Morris

Seconded: Deputy Mayor Jen Scoular

That the Audit & Risk Committee:

(a) Receives the report "Policy Review - Risk Management Policy".

(b) Defers the adoption of the revised policy to the Audit & Risk Committee meeting on 29 July 2025.

Carried

10 Discussion of late items

Nil

11 Public excluded session

Resolution to exclude the public

Committee Resolution AR/25/2/8

Moved: Deputy Mayor Jen Scoular

Seconded: Ms Rohario Murray

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
11.1 - Public Excluded Minutes of the Audit & Risk Committee meeting held on 19 February 2025	s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(b)(i) - The withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
11.2 - Status Update on Actions from Prior Audit and Risk Committee Meetings - Confidential	s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(b)(i) - The withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
11.3 - Risk Register - Quarterly Update	s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
11.4 - Digital/Cyber Risk Quarterly Report	s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(b)(i) - The withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret	s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
11.5 - Internal Audit & Assurance - Quarterly Update	s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

Carried

12 Closing karakia

Ms Rohario Murray closed the meeting with a karakia.

Resolutions transferred into the open section of the meeting after discussion

11.3 Risk Register - Quarterly Update

Staff Chris Quest, Manager: Risk & Assurance

Chris Smith, Risk & Business continuity Advisor

Alastair McNeil, General Manager Corporate Services

Committee Resolution AR/25/2/9

Moved: Deputy Mayor Jen Scoular

Seconded: Ms Rohario Murray

That the Audit & Risk Committee:

(a) Receives the report "Risk Register - Quarterly Update".

(b) Notes that the report can be transferred into the open section of the meeting at the conclusion of this meeting.

(c) Notes that the attachment is to remain in the public excluded to prevent the disclosure or use of official information for improper gain or improper advantage.

Carried

Attachments

1 Risk Register Quarterly Update

11.5 Internal Audit & Assurance - Quarterly Update

Staff Jon Hobbs, Audit & Assurance Lead

Alastair McNeil, Manager Corporate Services

Committee Resolution AR/25/2/10

Moved: Deputy Mayor Jen Scoular

Seconded: Ms Rohario Murray

That the Audit & Risk Committee:

(a) Receives the report "Internal Audit & Assurance - Quarterly Update".

(b) Notes that the report can be transferred into the open section of the meeting at the conclusion of this meeting.

(c) Notes that the attachments are to remain in the public excluded to prevent the disclosure or use of official information for improper gain or improper advantage.

Carried

Attachments

1 Internal Audit & Assurance - Quarterly Update

The meeting closed at 11.59am.

The minutes of this meeting were confirmed as a true and correct record at the Audit & Risk Committee meeting held on 29 July 2025.

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

Cr Steve Morris

CHAIRPERSON

Audit & Risk Committee meeting Agenda

21 July 2025

9.3 2025 Interim Audit Results

File Number: A17848249

Author: Sheree Covell, Treasury & Financial Compliance Manager

Authoriser: Paul Davidson, Chief Financial Officer

Purpose of the Report

1. This report presents Audit NZ’s report to the Council following the interim phase of the annual Council audit for 2024/25.

Recommendations

That the Audit & Risk Committee:

(a) Receives the report "2025 Interim Audit Results".

(b) Notes the recommendations contained within the report to Council by Audit NZ including recommendations from the previous audit.

Executive Summary

2. This report presents Audit New Zealand’s report to Council following the interim phase of the annual Council audit for 2024/25.

3. The interim audit phase was focused on the assessment of Council’s control environment and review of a number of prior year audit recommendations. There are three new recommendations and nine existing recommendations. One recommendation was closed during the interim audit.

4. Below is a table summarising the three new recommendations and the status of existing recommendations. More detail on the new recommendations is included in the background section of this report. The recommendations from previous years are in progress and will be worked through in the final audit.

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5. There are no significant risks to be brought to this Committees attention as a result of this phase of the audit.

Background

6. Audit New Zealand has completed its interim audit of TCC for the year ended 30 June 2024.

7. The attached audit report outlines matters identified during the audit, makes recommendations and includes Council comments on these recommendations. An update on matters identified during previous audits is also provided.

8. Audit New Zealand provides recommendations for improvement and prioritises these as urgent, necessary, or beneficial. The report also reviews earlier recommendations and notes whether these have been addressed by TCC.

9. There were three new recommendations made by audit, two of which are deemed necessary and one beneficial. These are detailed below.

New Recommendation #1: Completeness of Interest Register

10. During Audit NZ’s review of Council’s Interest Register it was identified that one Councillor had failed to declare an interest. Wile there were no related transactions, it is important that all interests are declared so that actual or perceived conflicts can be adequately managed.

11. The interest register for is currently reviewed six monthly by Democracy Services and Internal Audit. This can be increased to quarterly if resourcing is available.

New Recommendation #2: Breach of Elected Members & Resource Policy

12. During Audit NZ”s review of sensitive expenditure it was identified that the Mayor’s attendance at an LGNZ National Meeting had not been approved by the appropriate parties. To comply with the Elected Members Expense and Resource Policy 2024, the mayor’s expenditure, including conference attendance, should be pre-approved by the Deputy Mayor or CEO, with documented evidence of authorisation.

13. The process has been confirmed with relevant staff and will be followings going forward.

New recommendation #3: Late Capitalisation of Asst

14. A vehicle asset was recorded as acquired and capitalized on 1 July 2024, but supporting documentation shows it was acquired in June 2024. Capitalisation should occur in the correct accounting period to support accurate financial reporting and depreciation calculations.

15. Staff strive to complete as much capitalisation as possible prior to 30 June. Efforts are concentrated on WIP of material value as the close off date approaches. In this instance, the vehicle was paid for on 17 June for a total value of $61k.

16. High level checks are done on material WIP balances and adjusted accordingly for year-end results. There is no material impact on financials from this.

Prior Year Recommendations

17. There are nine recommendations from prior years all of which continue to be monitored and worked on. The detail and TCC staff comments are on pages 7-10 of the audit report. Staff continue to work on solutions for these recommendations but consider them of a low risk to the organisation.

Statutory Context

18. The audit process helps build trust in Council’s systems and processes for service provision, management control and financial accountability. The audit of Council’s systems and Annual Report is a key element of Council’s accountability to the community.

Options Analysis

19. There are no options presented in this report.

Legal Implications / Risks

20. There are no specific legal implications or risks directly as a result of this report. Consultation / Engagement

Significance

21. The Local Government Act 2002 requires an assessment of the significance of matters, issues, proposals and decisions in this report against Council’s Significance and Engagement Policy. Council acknowledges that in some instances a matter, issue, proposal or decision may have a high degree of importance to individuals, groups, or agencies affected by the report.

22. In making this assessment, consideration has been given to the likely impact, and likely consequences for:

(a) The current and future social, economic, environmental, or cultural well-being of the district or region.

(b) Any persons who are likely to be particularly affected by, or interested in, the matter.

23. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the matter is of low significance.

ENGAGEMENT

24. Taking into consideration the above assessment, that the matter is of low significance, officers are of the opinion that no further engagement is required prior to Council making a decision.

Next Steps

25. Council will continue to work through recommendations for improvement in our processes and reporting. A final report from Audit NZ will be presented to this committee following the adoption of the 2024/25 Annual Report.

Attachments

1. TCC Interim Report to Governors 30062025 - A18452030 ⇩

Audit & Risk Committee meeting Agenda

21 July 2025