A Finance, Audit and Risk Committee Meeting

Transcription

1 Tokoroa Office: Phone (07) Fax (07) Putaruru Office: Phone (07) Fax (07) Tirau Agency (Information Centre): Phone (07) Private Bag 7 (Torphin Crescent) Tokoroa 3444 Website: info@southwaikato.govt.nz Finance, Audit and Risk Committee Meeting PUBLIC BUSINESS AGENDA A Finance, Audit and Risk Committee Meeting will be held in the Council Chamber, Torphin Crescent, Tokoroa on Thursday 6 December 2018 Commencing at the conclusion of Corporate and Regulatory Committee OUR VISION Healthy people thriving in a safe, vibrant and sustainable community. TM the South Waikato discover it live it love it

2 Finance, Audit and Risk Committee Reporting to - Council Constitution - Committee of Full Council plus external appointee(s) Meeting frequency - The Committee will hold at least four regular meetings per year, and such additional meetings as the Chairperson shall decide in order to fulfil its duties. A special meeting may be held to review Council's annual report. In addition, the Chairperson is required to call a meeting of the Committee if requested to do so by a majority of Committee Members, the Council or the external auditors. Objective - The primary objective of the Audit and Risk Committee (Committee) is to assist the South Waikato District Council (Council) in fulfilling its overall responsibilities relating to risk management, financial systems and reporting, external audit, treasury, compliance. Key areas of focus: 1. Financial reporting and control systems. 2. External audit reporting and relationship. 3. Risk management framework; financial, legislative, physical, economic, partnership, contractual, project, environmental, managerial, professional, customer/ratepayer, social, political and technological. 1. Composition and tenure 1.1 The Committee will be a committee of the whole. 1.2 The Chairperson must be suitably qualified and may be an external appointment with skills and experience to provide value for the Council. 1.3 The Committee membership may be reviewed by Council but otherwise will be appointed for the term of Council. 2. Meetings 2.1 The Chief Executive, Group Manager Corporate and Finance Manager will normally attend Committee meetings, but the Committee may meet as it determines with the Auditors without management being present. 2.2 The Committee may also ask other Council employees, or other suitably qualified persons with interest or expertise in special topics, to attend Committee meetings or participate for certain agenda items. 2.3 A quorum shall consist of a majority of the Members. Where there is more than one independent member on the Committee, a quorum will include at least one independent member. 2.4 Meetings can be held in person, by telephone, or by video conference. 3. Roles and Responsibilities 3.1 The Committee is directly responsible and accountable to Council for the exercise of its responsibilities. In carrying out its responsibilities, the Committee must at all times recognise that primary responsibility for management of Council rests with the Chief Executive. 3.2 The responsibilities of the Committee may be revised or expanded in consultation with, or as requested by Council from time to time.

3 4. Risk Management The Committee s responsibilities are to: 4.1 review whether management has in place a current and comprehensive risk management framework, and associated procedures for effective identification and management of the Council's financial and business risks, including fraud; 4.2 review whether a sound and effective approach has been followed in developing strategic risk management plans for major projects or undertakings; 4.3 review the effect of Council's risk management framework on its control environment and insurance arrangements; 4.4 review whether a sound and effective approach has been followed in establishing Council's business continuity planning arrangements, including whether disaster recovery plans have been tested periodically; and 4.5 review Council's fraud policy and satisfy itself that Council has appropriate processes and systems in place to capture and effectively investigate fraud-related information. 5. Control Framework The Committee s responsibilities are to: 5.1 review whether management s approach to maintaining an effective internal control framework, including over external parties such as contractors and advisers, is sound and effective; 5.2 review whether management has in place relevant policies, processes and procedures, and that these are periodically reviewed and updated; 5.3 monitor existing corporate policies and recommending new corporate policies to prohibit unethical, questionable or illegal activities. 5.4 determine whether the appropriate processes are in place to assess, at least once a year, whether policies and procedures are complied with; 5.5 review whether appropriate policies and procedures are in place for the management and exercise of delegations; 5.6 consider how management identifies any required changes to the design or implementation of internal controls; and 5.7 review whether management has taken steps to embed a culture which is committed to ethical and lawful behaviour. 6. External Accountability The Committee s responsibilities are to: 6.1 review the financial statements and provide advice to Council (including whether appropriate action has been taken in response to audit recommendations and adjustments), and recommend their signing by the Council; 6.2 satisfy itself that the financial statements are supported by appropriate management sign-off on the statements and on the adequacy of the systems of internal controls; 6.3 review the processes in place designed to ensure that financial information included in Council's annual report is consistent with the signed financial statements; 6.4 satisfy itself that Council has appropriate mechanisms in place to review and implement, where appropriate, relevant external audit reports and recommendations; and 6.5 satisfy itself that Council has a performance management framework that is linked to organisational objectives and outcomes and has appropriate monitoring in place.

4 7. Legislative compliance The Committee s responsibilities are to: 7.1 determine whether management has appropriately considered legal and compliance risks as part of Council's risk assessment and management arrangements; and 7.2 review the effectiveness of the system for monitoring Council's compliance with relevant laws, regulations, and associated government policies. 8. External audit The Committee s responsibilities are to: 8.1 act as a forum for communication between the Chief Executive, senior management, and external auditors; 8.2 provide input and feedback on the financial statements and the audit coverage proposed by the external auditor, and provide feedback on the audit services provided; 8.3 review all external plans and reports for planned or completed audits and monitor management s implementation of audit recommendations. Specifically review annual report content prior to audit and presentation to the Council and attend pre-audit and exit discussions meetings with audit service provider; 8.4 oversee the co-ordination of audit programmes conducted by the external auditors and other review functions: and 8.5 provide advice to the Council on action taken on significant issues raised in relevant external audit reports and good practice guides. 9. Assessment arrangements 9.1 The chairperson of the Committee will initiate a review of the performance of the Committee at least once every two years and present it to Council. 10. Review of Charter 10.1 The Committee will review this document at least once a year Any substantive changes to the terms of reference will be recommended by the Committee and formally approved by Council. 11. Power to act Pursuant to Clause 32 of Schedule 7 to the Local Government Act 2002, the Council delegates all of its responsibilities, duties and powers to the Audit and Risk Committee, with the following exceptions: a) The power to make a rate b) The power to make a bylaw c) The power to borrow money, or purchase or dispose of assets, other than in accordance with the long-term Council community plan d) The power to adopt a long-term plan, annual plan, or annual report e) The power to appoint a Chief Executive f) The power to adopt policies required to be adopted and consulted on under this Act in association with the long-term council community plan or developed for the purpose of the local governance statement g) The adoption of bylaws, review of district plans or district plan changes Management responsibility - Group Manager Corporate

5 Attendees Members Chairperson G Baldwin Mayor J Shattock Deputy Mayor Councillors J Gash A Bell W Cook J Gash M Glucina T Lee W Machen A Ngapo-Lipscombe P Schulte H Van Rooijen Staff Chief Executive B Smit Group Manager Assets T Anderson Group Manager Regulatory S Robinson Acting Group Manager Corporate G Naidoo Acting Group Manager Community H Gaby Communications Manager K Fabrie Personal Assistant (Minutes) B Morunga Agenda Confirmed by: B Smit Chief Executive RECOMMENDATIONS contained in Reports are NOT to be construed as COUNCIL DECISIONS. Refer to Council Minutes for RESOLUTIONS. Finance, Audit and Risk Committee - 6 December

6 Order of Business 1. Apologies Confirmation of Agenda Conflicts of Interest Confirmation of Minutes Confirmation of Minutes Reports Finance, Audit and Risk Report - December Performance Report to 31 October Payroll Audit Report Health and Safety Report - December Members Information Requests Public Excluded Resolution to Exclude the Public Apologies 2. Confirmation of Agenda 3. Conflicts of Interest Finance, Audit and Risk Committee - 6 December

7 4. Confirmation of Minutes 4.1 Confirmation of Minutes Document Information Report To: Finance, Audit and Risk Committee Meeting Date: Thursday, 6 December 2018 Author: Author Title: Gray Baldwin Chairperson Report Date: Thursday, 1 November 2018 Purpose of Report This report is for information purposes only. The purpose of this report is to present past Minutes. Recommendation Finance, Audit and Risk Committee - Thursday 25 October 2018 Public Business That the Minutes of the Public Business of the Finance, Audit and Risk Committee Meeting held on Thursday 25 October 2018 are confirmed as a true and accurate record and the Recommendations therein approved. Finance, Audit and Risk Committee - 6 December

8 Finance, Audit and Risk Committee Meeting PUBLIC BUSINESS MINUTES A Finance, Audit and Risk Committee Meeting was held in the Tīrau War Memorial Hall, Main Road, Tirau on Thursday 25 October 2018 Commencing at 1.04pm Attendees Members Chairperson G Baldwin Mayor J Shattock Deputy Mayor Councillors J Gash A Bell M Glucina T Lee W Machen A Ngapo-Lipscombe P Schulte Staff Acting Chief Executive B Smit Acting Group Manager Corporate G Naidoo Group Manager Regulatory S Robinson Group Manager Community S Marshall Communications Manager K Fabrie Personal Assistant (Minutes) B Morunga 1. Apologies 18/328 Resolved Cr Lee / Cr Bell That apologies from Crs Cook and Van Rooijen be received and sustained. 2. Confirmation of Agenda 18/329 Resolved Cr Schulte / Cr Lee That the Agenda, as circulated be confirmed. Finance, Audit and Risk Committee - 6 December

9 3. Conflicts of Interest There were no Conflicts of Interest declared. 4. Confirmation of Minutes 4.1 Confirmation of Minutes 18/330 Resolved Cr Lee / Cr Gash Finance, Audit and Risk Committee - Thursday 13 September Public Business That the minutes of the Public Business of the Audit and Risk Committee Meeting held on Thursday 13 September 2018 are confirmed as a true and accurate record and the Recommendations therein approved. 5. Reports 5.1 Finance, Audit and Risk Report - October 2018 The Acting CE took the report as read and introduced Steivan Juvalta from the BNZ Private Bank who presented a summary of the world financial markets and their influences on the NZ markets. 18/331 Resolved Cr Bell / Cr Schulte That Report No , Finance, Audit and Risk Report - October 2018, be received. 5.2 Health and Safety Report - 25 August to 5 October 2018 The HR Manager presented the report and highlighted the wellbeing initiatives over the reporting period. She introduced new Health and Safety Manager, Andrew McFadyen, who provided an update as to his plan for health and safety in the organisation going forward. He noted in particular he would like to get Safety Net (Vault) functioning to its capacity and deliver accurate data and statistics to the report. 18/332 Resolved Her Worship / Cr Lee That Report No , Health and Safety Report - 25 August 2018 to 5 October 2018, be received. 5.3 Performance Report - September 2018 The Finance Manager presented the report. She highlighted the change in report format to present a better understanding of each activity. 18/333 Resolved Cr Bell / Cr Schulte That Report No , Performance Report to September 2018, be received. 6. Members Information Requests Her Worship requested an update on the Whakamaru Reserve trees. It was advised that the Parks Manager had an assessment of the trees undertaken and they were deemed unstable. It was planned to have the trees felled before Christmas, but it is unlikely that this be completed in the timeframe. Finance, Audit and Risk Committee - 6 December

10 Councillors expressed concern regarding the Taniwha events that are occurring on the trail. The Parks Manager is considering bringing an Arborist in to fell the at risk trees. An alternate route was also discussed. Concerns were also raised regarding the safety management of people still trying to use the area during the Christmas period, security measures, mitigation of risk and communication to the community is imperative. ACTION: Councillors receive an update on the status of the Whakamaru Reserve trees at the next meeting. 7. Public Excluded Resolution to Exclude the Public Section 48, Local Government Official Information and Meetings Act /334 Resolved Cr Gash / Cr Schulte That the public be excluded from the following parts of the proceedings of this meeting. The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows: General subject of each matter to be considered Reason for passing this resolution Ground(s) Under Section 48(1) for the passing of the resolution Finance, Audit and Risk Committee Minutes - 13 September 2018 That the exclusion of the public from the whole or the relevant part of the proceedings of the meeting is necessary to enable the local authority to deliberate in private on its decision or recommendation in any proceedings before a local authority where the local authority is required, by an enactment, to make a recommendation in respect of the matter that is the subject of those proceedings The public conduct of this part of the meeting would be likely to result in the disclosure of information for which there is good reason for it being withheld. Section 48(1)(a) District Valuation Report That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information, the public disclosure of which would be contrary to the provisions of a specified enactment Section 48 (1)(b)(i) Rating Valuations Act 1998 Section 11: Valuer-General's approval required before general revaluation may be implemented. Section 12: General revaluation to be publicly notified upon completion. (After Valuer-General's certification.) The public conduct of this part of the meeting would be likely to result in the disclosure of information for which there is good reason for it being withheld. Section 48(1)(a) Tīrau Kiwimaze Refund That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in The public conduct of this part of the meeting would be likely to result in the disclosure of information for Finance, Audit and Risk Committee - 6 December

11 the disclosure of information where the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest Section 48(1)(a); Section 7 (2)(c)(ii) which there is good reason for it being withheld. Section 48(1)(a) This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public The meeting closed at 2.23 pm Gray Baldwin CHAIRPERSON Finance, Audit and Risk Committee - 6 December

12 5. Reports 5.1 Finance, Audit and Risk Report - December 2018 Document Information Report To: Finance Audit and Risk Committee Meeting Date: Thursday, 6 December 2018 Author: Author Title: Gordon Naidoo Acting Group Manager Corporate Report Date: Friday, 23 November 2018 Purpose of Report This report is for information purposes only. Background The issues discussed in this report are aligned with the Council vision, community outcomes, Council policies and the Council Strategy. The following services are included in the Finance, Audit, Risk and Technology report: Revenue and Payroll, Finance, Long Term and Annual Plans, Risk and Information Services. Discussion Revenue and Payroll Council KPI: The total amount of rate arrears is less than 7.5% of the current year's total rates paid to Council. Amount of total rate arrears $ 1,402,891 Total amount of current year's rate strike $30,768,665 = 4.6% District Sales 2018/2019 (1 July '18-31 October '18) Sales Mortgagee Transmission All Other Total Rural Area Tirau Putaruru Tokoroa Total all areas Property Sales (including transmission) total 387 for period 1 July 2018 to 31 October 2018 compared to a total of 337 for the same period last year. Finance, Audit and Risk Committee - 6 December

13 Rate Rebate Applications for 2017/ as at 31/10/2018 Total Applications Amount Applications received 601 n/a Unsuccessful applications 24 Applications approved by DIA 495 $283,128 Applications still to be approved by DIA 74 $40,707 Applications still to be processed by Council 8 Finance The team has been busy this month holding meetings to discuss the 2019/20 Annual Plan with any potential changes to the budgets. There are a number of action points to be completed prior to finalising the agenda for the meeting on 13 December. The Annual Plan model has been rolled and work is currently underway to establish what the rates impact is of the potential changes. The performance report has now been changed to include the revised budget ie Annual Plan + carry forwards + budget transfers/council resolutions. Long Term / Annual Plan The Annual Plan 2019/20 is in progress with a workshop scheduled for 13 December. Risk An internal audit report on payroll is included as report 5.3 in the agenda. Information Services Activities since last report (October) Completion of the infrastructure programme; Blanchard training to non-managers; unscheduled Promapp training; Staff are working on completing a training strategy for IS. Infrastructure Completed except for WiFi (delayed by contractor availability for HQ wiring). The requirements for the Events Centre have changed in that a full, public wireless solution for up to 800 simultaneous users will need to be designed and costed. This has been passed to Datacom to provide a proposal. A re-design / replacement of the IS hardware supporting Watermark and related plant is underway A review of the Chambers AV systems has been requested and is being discussed with vendors A request to provide Compliance staff with a mobility solution is being worked on A review of Buildings staff mobility tech has been requested A re-prioritisation of the Warmhome portal development has been requested Deloitte Audit On track. Note that MagiQ have advised that the recommendations with respect to privileged usernames cannot be met as drafted (MagiQ require access to be maintained in order to support the system). We will Finance, Audit and Risk Committee - 6 December

14 therefore implement a new process to validate the use of these IDs will be put in place plus MagiQ personnel will be required to request access each time. Strategic Projects MagiQ upgrade is scheduled to start in December with completion migration, training and production switchover completed by mid-february. ECM upgrade this has been escalated and a proposal is expected from T1 in the next 2 weeks. TaaS required improvements have been sent to Vodafone. Intermittent issues with the Contact Centre software been also raised for action by them. Policies review for IS has started with the Information Management Policy being first off the rank. Recommendation That Report No , Finance, Audit and Risk Report - November 2018, be received. Finance, Audit and Risk Committee - 6 December

15 5.2 Performance Report to 31 October 2018 Document Information Report To: Finance, Audit and Risk Committee Meeting Date: Thursday, 6 December 2018 Author: Author Title: Fiona Ferrar Finance Manager Report Date: Monday, 26 November 2018 Purpose of Report The report is for information purposes only. Discussion This report is to provide the Performance Report to 31 October Recommendation That Report No , Performance Report to 31 October 2018, be received. Finance, Audit and Risk Committee - 6 December

16 PERFORMANCE REPORT To 31 October 2018 Finance, Audit and Risk Committee - 6 December

17 1. Activity Financial Statements Full Council October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance YTD Actual YTD AP Revised External Operating Costs 9,765,782 10,047,127 30,388,504 30,795, ,346 External Capital Costs 1,907,093 2,261,204 11,343,900 17,292, ,111 Loan Repayments 457, ,932 1,178,778 1,178,778 (64,579) Total Costs 12,130,386 12,701,263 42,911,182 49,266, ,878 External Revenue (excl rates) (3,483,655) (3,849,552) (12,830,754) (12,830,754) (368,402) Total Revenue (3,483,655) (3,849,552) (12,830,754) (12,830,754) (368,402) Net Costs/(Revenue) 8,646,731 8,851,711 30,080,428 36,436, ,477 Non-cash and Internal Charges/Recoveries Depreciation 2,344,261 2,646,368 7,939,084 7,939, ,107 Non funded Depreciation (1,463,205) (1,515,724) (4,547,161) (4,547,161) (52,519) Overhead charges 3,595,120 3,178,736 9,535,988 9,535,988 (416,384) Overhead recoveries (3,595,120) (3,178,664) (9,535,984) (9,535,984) 416,456 Copier/Internal SWSEC 89 16,540 52,100 52,100 16,451 Council rates 613, , , ,312 (79,849) Labour Capitalisation Recoveries (929) (77,900) (233,700) (233,700) (76,972) Write-offs 7,355 14,700 44,100 44,100 7,345 Gain on sale 43, (43,016) Total Non-Cash and Internal Charges/Recoveries 1,543,849 1,617,468 3,788,039 3,788,039 73,619 Accounting Surplus/(Deficit) 10,190,580 10,469,179 33,868,467 40,224, ,096 Funding sources Rates revenue (8,953,032) (8,953,264) (26,859,733) (26,859,733) (232) Transfers from ARR (645,385) (626,408) (1,879,236) (4,549,136) 18,977 Transfers from Council/TR created reserves (458,316) (259,328) (105,991) (1,248,636) 422,988 Loans raised (55,842) (1,674,500) (5,023,500) (6,175,302) (1,618,658) Total Funding (10,112,575) (11,513,500) (33,868,460) (38,832,807) (1,176,925) Funding Deficit 78,005 (1,044,321) 7 1,391,269 (900,829) Finance, Audit and Risk Committee - 6 December

18 Assets Mgmt/Business Services October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 288, , , ,650 (13,165) External Capital Costs - 4,332 13,000 13,000 4,332 1 Total Costs 288, , , ,650 (8,833) External Revenue (excl rates) Total Revenue Net Costs/(Revenue) 288, , , ,650 (8,833) Non-cash and Internal Charges/Recoveries Depreciation 1,568 5,304 15,916 15,916 3,736 Overhead charges 52,224 47, , ,985 (4,232) Overhead recoveries (377,836) (326,484) (979,451) (979,451) 51,352 Copier/Internal SWSEC ,900 2, Total Non-Cash and Internal Charges/Recoveries (323,129) (272,220) (816,650) (816,650) 50,909 2 Accounting Surplus/(Deficit) (35,000) 7,076 13,000 13,000 42,076 Funding sources Transfers from ARR - (4,332) (13,000) (13,000) (4,332) Total Funding - (4,332) (13,000) (13,000) (4,332) Funding Deficit (35,000) 2, ,744 Notes 1. Capital GIS work is yet to be started 2. Overhead recoveries are higher than expected due to the increase of activities in overhead departments Finance, Audit and Risk Committee - 6 December

19 Property October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 393, ,915 1,181,211 1,181,211 9,573 External Capital Costs 146, ,672 1,015,400 1,688, ,567 1 Loan Repayments 65,794 72, , ,305 6,978 Total Costs 605, ,359 2,414,916 3,087, ,117 External Revenue (excl rates) (176,395) (175,652) (526,950) (526,950) 743 Total Revenue (176,395) (175,652) (526,950) (526,950) 743 Net Costs/(Revenue) 428, ,707 1,887,966 2,560, ,860 Non-cash and Internal Charges/Recoveries Depreciation 116, , , ,669 33,300 Non funded Depreciation (79,784) (72,640) (217,906) (217,906) 7,144 Overhead charges 172, , , ,002 (3,436) Overhead recoveries (319,468) (366,824) (1,100,483) (1,100,483) (47,356) Copier/Internal SWSEC (232) Council rates 277, , , ,068 (54,009) 2 Total Non-Cash and Internal Charges/Recoveries 166, ,828 (140,650) (140,650) (64,589) Accounting Surplus/(Deficit) 595, ,535 1,747,316 2,420, ,271 Funding sources Rates revenue (290,869) (288,924) (866,766) (866,766) 1,945 Transfers from ARR (54,265) (63,960) (191,876) (247,576) (9,695) Transfers from Council/TR created reserves (214,479) (19,556) (58,671) (163,619) 194,923 3 Loans raised (5,627) (210,000) (630,000) (1,142,352) (204,373) Total Funding (565,239) (582,440) (1,747,313) (2,420,313) (17,201) Funding Deficit 30, , ,070 Notes 1. Pensioner Housing at Kindergarten St is now complete. Other expected capital work has not been completed due to timing changes for projects as a result of health and safety issues being addressed before work can start. Tokoroa office utilisation plans being finalised for work to start later in the year. 2. Council rates higher than budget due to the high overall rates increase 3. Reserve transfer high due to Council rates expense for SWDC all in September and WRC all in October. Finance, Audit and Risk Committee - 6 December

20 Parks and Reserves October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 509, ,305 2,626,994 2,626, ,150 1 External Capital Costs 80, , ,500 1,329, ,891 2 Loan Repayments 25,832 20,616 61,833 61,833 (5,216) Total Costs 615,923 1,212,749 3,570,327 4,017, ,826 External Revenue (excl rates) (86,967) (67,116) (201,338) (201,338) 19,851 3 Total Revenue (86,967) (67,116) (201,338) (201,338) 19,851 Net Costs/(Revenue) 528,956 1,145,633 3,368,989 3,816, ,677 Non-cash and Internal Charges/Recoveries Depreciation 116, , , ,196 23,941 Non funded Depreciation (2,718) (2,716) (8,153) (8,153) 2 Overhead charges 349, , , ,684 (39,068) Overhead recoveries (152,046) (128,060) (384,183) (384,183) 23,986 Copier/Internal SWSEC ,450 1, Council rates 102,313 85,002 85,002 85,002 (17,311) Labour Capitalisation Recoveries - (5,032) (15,100) (15,100) (5,032) Write-offs 7, (7,225) Total Non-Cash and Internal Charges/Recoveries 421, ,642 1,031,896 1,031,896 (20,568) Accounting Surplus/(Deficit) 950,167 1,546,275 4,400,885 4,848, ,108 Funding sources Rates revenue (1,166,057) (1,159,596) (3,478,775) (3,478,775) 6,461 Transfers from ARR (113,932) (109,040) (327,104) (477,104) 4,892 Transfers from Council/TR created reserves (4,659) - - (97,668) 4,659 Loans raised (10,451) (198,332) (595,000) (795,000) (187,881) Total Funding (1,295,099) (1,466,968) (4,400,879) (4,848,547) (171,869) Funding Deficit (344,933) 79, ,240 Notes 1. Work on concreting/bollarding/fixing bridges has been delayed due to the availability of the contractor, but has now been scheduled. Other under expense is due to more work being expected over the summer months. 2. Only a small portion of the expected capital work has either started or has been completed to date. For the Skatepark - Basketball Half Court & Learn to Ride SWOT analysis has been written for Council consideration of site options 3. Higher portion of reserve/sportsground annual lease has been received in the earlier part of this year than expected. Finance, Audit and Risk Committee - 6 December

21 Roading (including Southtech) October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 1,591,571 1,274,502 4,428,676 4,428,676 (317,069) 1 External Capital Costs 670, ,668 5,062,000 7,079, ,328 2 Loan Repayments 112, , , ,021 1,979 Total Costs 2,373,936 2,181,174 9,832,697 11,849,697 (192,762) External Revenue (excl rates) (1,450,097) (1,050,524) (5,063,160) (5,063,160) 399,573 3 Total Revenue (1,450,097) (1,050,524) (5,063,160) (5,063,160) 399,573 Net Costs/(Revenue) 923,839 1,130,650 4,769,537 6,786, ,811 Non-cash and Internal Charges/Recoveries Depreciation 1,106,984 1,109,592 3,328,774 3,328,774 2,608 Non funded Depreciation (1,099,469) (1,097,860) (3,293,576) (3,293,576) 1,609 Overhead charges 427, ,948 1,073,727 1,073,727 (69,525) Overhead recoveries (17,084) 46, , ,418 63,892 Copier/Internal SWSEC 2,046 1,400 4,200 4,200 (646) Council rates 16,085 14,666 14,666 14,666 (1,419) Total Non-Cash and Internal Charges/Recoveries 436, ,554 1,268,209 1,268,209 (3,482) Accounting Surplus/(Deficit) 1,359,875 1,563,204 6,037,746 8,054, ,329 Funding sources Rates revenue (1,468,368) (1,460,112) (4,380,307) (4,380,307) 8,256 Transfers from ARR (1,612) (10,480) (31,440) (31,440) (8,868) Transfers from Council/TR created reserves (248,489) (242,000) (54,000) (642,788) 230,489 Loans raised (12,382) (524,000) (1,572,000) (2,011,450) (511,618) Total Funding (1,730,852) (2,236,592) (6,037,747) (7,065,985) (281,740) Funding Deficit (370,977) (673,388) (1) 988,761 (78,411) Notes 1. The overspend in expenditure is due to timing differences across the programme 2. Substantial roading projects are underway with the Church St, Totman Rd and Horahora Rd rehabilitation complete. Totman Rd and Horahora Rd pavement rehabilitation has also been completed. 3. Higher NZTA subsidy received due to early claims on work completed as a result of the good weather. Finance, Audit and Risk Committee - 6 December

22 Services (including Watermark) October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 3,020,124 2,855,311 8,499,512 8,499,512 (164,813) 1 External Capital Costs 427, ,900 2,754,600 5,084,800 (182,598) 2 Loan Repayments 49,173 49, , , Total Costs 3,496,794 3,150,163 11,403,965 13,734,165 (346,631) External Revenue (excl rates) (1,083,070) (1,388,848) (4,166,550) (4,166,550) (305,778) 3 Total Revenue (1,083,070) (1,388,848) (4,166,550) (4,166,550) (305,778) Net Costs/(Revenue) 2,413,725 1,761,315 7,237,415 9,567,615 (652,410) Non-cash and Internal Charges/Recoveries Depreciation 750, ,848 2,807,531 2,807, ,127 4 Non funded Depreciation (120,618) (136,712) (410,145) (410,145) (16,094) Overhead charges 911, ,748 2,201,181 2,201,181 (177,756) Overhead recoveries (293,794) (209,252) (627,748) (627,748) 84,542 Copier/Internal SWSEC 1,389 1,748 5,250 5, Council rates 207, , , ,576 (4,746) Labour Capitalisation Recoveries (929) (67,468) (202,400) (202,400) (66,540) 5 Total Non-Cash and Internal Charges/Recoveries 1,455,595 1,460,488 3,976,245 3,976,245 4,893 Accounting Surplus/(Deficit) 3,869,320 3,221,803 11,213,660 13,543,860 (647,517) Funding sources Rates revenue (2,757,767) (2,734,720) (8,204,143) (8,204,143) 23,047 Transfers from ARR (421,294) (618,728) (1,856,200) (4,186,400) (197,434) Transfers from Council/TR created reserves (184,338) 5,560 16,680 16, ,898 Loans raised (27,382) (390,000) (1,170,000) (1,170,000) (362,618) Total Funding (3,390,781) (3,737,888) (11,213,663) (13,543,863) (347,107) Funding Deficit 478,538 (516,085) (3) (3) (994,623) Notes 1. Solid Waste is currently overspent by $374k due to Resource Consent compliance, improving Health & Safety and increases in operational costs at Tokoroa. This has been offset by savings in the other activities including Watermark ($213k). 2. Costs associated with the Wastewater consents and Wetlands Tīrau are overspent based on the projects being brought forward 3. Tokoroa landfill income is down due to patronage and no longer accepting waste from outside the district. Water by meter income is down by $77k which is a timing difference. Watermark internal charges are down by $187k due to staffing shortages. This is offset by the under expense in note 1 above. 4. Depreciation lower than expected due to the timing of capital projects 5. Staff shortages in services has meant less internal charges to capital projects Finance, Audit and Risk Committee - 6 December

23 CS Management/Customer Services October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 202, , , ,013 12,162 Total Costs 202, , , ,013 12,162 External Revenue (excl rates) 6 (32) (100) (100) (38) Total Revenue 6 (32) (100) (100) (38) Net Costs/(Revenue) 202, , , ,913 12,124 Non-cash and Internal Charges/Recoveries Overhead charges 126,923 99, , ,656 (27,371) Overhead recoveries (330,735) (326,788) (980,366) (980,366) 3,947 Copier/Internal SWSEC 863 1,268 3,800 3, Total Non-Cash and Internal Charges/Recoveries (202,948) (225,968) (677,910) (677,910) (23,020) Accounting Surplus/(Deficit) - (10,895) 3 (49,997) (10,895) Funding sources Rates revenue Total Funding Funding Deficit - (10,895) 3 (49,997) (10,895) Finance, Audit and Risk Committee - 6 December

24 Community Services October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 682, ,804 2,087,330 2,170,330 64,730 1 External Capital Costs , , , ,007 2 Loan Repayments 110,008 50, , ,153 (59,956) Total Costs 792, ,188 2,562,483 2,763, ,782 External Revenue (excl rates) (2,122) (2,000) (6,000) (6,000) 122 Total Revenue (2,122) (2,000) (6,000) (6,000) 122 Net Costs/(Revenue) 790, ,188 2,556,483 2,757, ,903 Non-cash and Internal Charges/Recoveries Depreciation 10,948 22,200 66,601 66,601 11,252 Non funded Depreciation - (68) (200) (200) (68) Overhead charges 175, , , ,614 (3,737) Copier/Internal SWSEC ,004 56,500 56,500 17,495 Council rates 1, (546) Total Non-Cash and Internal Charges/Recoveries 188, , , ,445 24,396 Accounting Surplus/(Deficit) 978,490 1,115,790 3,194,928 3,395, ,300 Funding sources Rates revenue (956,836) (951,644) (2,854,925) (2,854,925) 5,192 Transfers from ARR - (10,000) (30,000) (30,000) (10,000) Transfers from Council/TR created reserves (11,971) (3,332) (10,000) (10,000) 8,639 3 Loans raised - (100,000) (300,000) (300,000) (100,000) Total Funding (968,807) (1,064,976) (3,194,925) (3,194,925) (96,169) Funding Deficit 9,683 50, ,003 41, Difference is mainly attributable to the $30k underspend in Warm Homes and $34k less spent in Marketing & Promotion, the Logistics & Distribution Project and expected loan costs that were expected at this stage of the year. 2. The strategic residential property projects are yet to be started and the District Branding Signs project is in it's early stages. Talking pole relocation from Leith Place is expected to take place before Christmas with the pole placement in the forest expected in early Timing variances due to activities funded by targeted rates. Finance, Audit and Risk Committee - 6 December

25 Leisure October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 387, ,942 1,316,319 1,316,319 48,960 1 External Capital Costs 13,359 80, , ,500 67,145 2 Loan Repayments 41,629 27,364 82,087 82,087 (14,265) Total Costs 442, ,810 1,639,906 1,768, ,840 External Revenue (excl rates) (130,368) (106,576) (330,226) (330,226) 23,792 3 Total Revenue (130,368) (106,576) (330,226) (330,226) 23,792 Net Costs/(Revenue) 312, ,234 1,309,680 1,438, ,632 Non-cash and Internal Charges/Recoveries Depreciation 98,820 95, , ,277 (3,728) Non funded Depreciation (43,959) (36,356) (109,072) (109,072) 7,603 Overhead charges 182, , , ,840 (12,298) Copier/Internal SWSEC (1,868) 1,032 3,100 3,100 2,900 Council rates 7,057 5,650 5,650 5,650 (1,407) Total Non-Cash and Internal Charges/Recoveri 242, , , ,795 (6,930) Accounting Surplus/(Deficit) 555, ,932 2,005,475 2,134, ,702 Funding sources Rates revenue (574,391) (571,192) (1,713,583) (1,713,583) 3,199 Transfers from ARR (27,715) (35,128) (105,395) (239,395) (7,413) Loans raised - (62,168) (186,500) (186,500) (62,168) Total Funding (602,106) (668,488) (2,005,478) (2,139,478) (66,382) Funding Deficit (46,876) 5,444 (3) (5,003) 52,320 Notes 1. External expenditure is under due to less expense on R&M plant and equipment across all the pools. 2. Capital works are in progress. Tokoroa pool roof repairs have started. Pool resurfacing upgrades at Tīrau started in October and are expected to be completed before they open for the season. 3. Events Centre arena fees, function facility hireage and catering charges are higher than expected year to date. Finance, Audit and Risk Committee - 6 December

26 Libraries October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 256, , , ,787 11,041 External Capital Costs 29, , , , ,063 1 Loan Repayments 10,215 12,296 36,885 36,885 2,081 Total Costs 296, ,715 1,360,672 1,386, ,185 External Revenue (excl rates) (16,512) (19,828) (59,490) (59,490) (3,316) Total Revenue (16,512) (19,828) (59,490) (59,490) (3,316) Net Costs/(Revenue) 280, ,887 1,301,182 1,327, ,869 Non-cash and Internal Charges/Recoveries Depreciation 41,973 55, , ,174 13,419 Non funded Depreciation (39,664) (46,428) (139,279) (139,279) (6,764) Overhead charges 219, , , ,747 (44,087) Copier/Internal SWSEC 1,091 1,632 4,900 4, Council rates 1,831 1,420 1,420 1,420 (411) Write-offs ,000 1, Gain on sale Total Non-Cash and Internal Charges/Recoveries 224, , , ,262 (36,883) Accounting Surplus/(Deficit) 504, ,923 1,862,444 1,888, ,986 Funding sources Rates revenue (468,274) (463,816) (1,391,445) (1,391,445) 4,458 Transfers from ARR (1,976) (7,000) (21,000) (21,000) (5,024) Loans raised - (150,000) (450,000) (450,000) (150,000) Total Funding (470,250) (620,816) (1,862,445) (1,862,445) (150,566) Funding Deficit 34,687 25,107 (1) 25,899 (9,580) Notes 1. Only $28K (18%) of the expected district library collection has been updated and $2k of the miscellaneous capex has been used for the rollaway shelving in Putāruru. All other budgeted projects are being assessed and this has meant that the start dates for some projects are later than expected. Finance, Audit and Risk Committee - 6 December

27 Regulatory October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 824, ,435 2,804,441 2,882, ,522 1 External Capital Costs 19,042 41, , ,700 22,026 2 Loan Repayments 37,287 40, , ,064 3,065 Total Costs 881,242 1,033,855 3,048,705 3,141, ,613 External Revenue (excl rates) (672,513) (671,976) (1,375,940) (1,375,940) 537 Total Revenue (672,513) (671,976) (1,375,940) (1,375,940) 537 Net Costs/(Revenue) 208, ,879 1,672,765 1,765, ,151 Non-cash and Internal Charges/Recoveries Depreciation 14,993 23,880 71,638 71,638 8,887 Overhead charges 485, ,532 1,345,572 1,345,572 (36,881) Overhead recoveries (111,238) (124,964) (374,893) (374,893) (13,726) Copier/Internal SWSEC 2,001 5,936 17,800 17,800 3,935 Write-offs 130 6,032 18,100 18,100 5,902 Total Non-Cash and Internal Charges/Recoveries 391, ,416 1,078,217 1,078,217 (31,883) Accounting Surplus/(Deficit) 600, ,295 2,750,982 2,844, ,268 Funding sources Rates revenue (876,702) (871,252) (2,613,767) (2,613,767) 5,450 Transfers from ARR (19,042) (5,740) (17,221) (17,221) 13,302 Transfers from Council/TR created reserves (54,641) - Loans raised - (40,000) (120,000) (120,000) (40,000) Total Funding (895,744) (916,992) (2,750,988) (2,805,629) (21,248) Funding Deficit (295,717) (195,697) (6) 38, ,020 Notes 1. Underspend in expenses is mainly due to $94k less in salaries across the group, $9K less in software costs in building control year to date, $8k less spent in the noise contract than expected and $16k less in disctrict plans costs. 2. The project for the purchase of the generator for the Events Centre is yet to start, carryover projects from in Civil Defence relating to CD Radios and associated equipment is complete. Finance, Audit and Risk Committee - 6 December

28 Corporate October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 1,273,401 1,372,708 4,056,873 4,353,473 99,307 1 External Capital Costs 519, , , ,800 (361,650) 2 Loan Repayments 5,550 5,524 16,577 16,577 (26) Total Costs 1,798,832 1,536,464 4,408,150 4,896,850 (262,368) External Revenue (excl rates) 134,384 (367,000) (1,101,000) (1,101,000) (503,888) 3 Total Revenue 134,384 (367,000) (1,101,000) (1,101,000) (503,888) Net Costs/(Revenue) 1,933,216 1,169,464 3,307,150 3,795,850 (766,256) Non-cash and Internal Charges/Recoveries Depreciation 80, , , ,358 22,664 Non funded Depreciation (76,993) (122,944) (368,830) (368,830) (45,951) Overhead charges 446, ,152 1,365,435 1,365,435 8,764 Overhead recoveries (1,603,155) (1,308,264) (3,924,785) (3,924,785) 294,891 Copier/Internal SWSEC (11,078) (18,700) (56,100) (56,100) (7,622) Labour Capitalisation Recoveries - (5,400) (16,200) (16,200) (5,400) Write-offs - 8,336 25,000 25,000 8,336 Gain on sale 43, (43,102) Total Non-Cash and Internal Charges/Recoveries (1,120,947) (888,368) (2,665,122) (2,665,122) 235,083 Accounting Surplus/(Deficit) 812, , ,028 1,130,728 (531,173) Funding sources Rates revenue (393,768) (452,008) (1,356,022) (1,356,022) (58,240) Transfers from ARR (5,550) 238, , , ,550 Transfers from Council/TR created reserves 205, (296,600) (205,621) Total Funding (193,696) (214,008) (642,022) (938,622) (20,312) Funding Deficit 618,573 67, ,106 (551,485) Notes 1. $62k of the variance due to lower staff numbers in IS, $11k less in cloud services utilised to date, $9k less in valuation fees and $17k less in Microsoft Software Annual Licencing year to date. 2. Timing variance due to IS core infrastructure upgrades purchased and installed. Loan for this is still to be raised. 3. The BNZ investment portfolio has an unrealised loss of $358k and $5k in realised losses year to date. There is $193k less than expected for interest and dividends year to date. There is $5k less in expected IS salary recovery on capital projects. This has been offset in part by $58k in vested assets like the Sea Scout Hall and Tīrau waste water infrastructure. Finance, Audit and Risk Committee - 6 December

29 Executive October Monthly Financial Statement 18/19 18/19 18/19 18/19 YTD Variance Notes YTD Actual YTD AP Revised External Operating Costs 335, ,385 1,161,698 1,161,698 13,948 Total Costs 335, ,385 1,161,698 1,161,698 13,948 External Revenue (excl rates) Total Revenue Net Costs/(Revenue) 335, ,385 1,161,698 1,161,698 13,948 Non-cash and Internal Charges/Recoveries Depreciation 5,084 5,984 17,950 17, Overhead charges 45,601 38, , ,545 (6,757) Overhead recoveries (389,765) (434,836) (1,304,493) (1,304,493) (45,071) Copier/Internal SWSEC 3,643 2,768 8,300 8,300 (875) Total Non-Cash and Internal Charges/Recoveries (335,438) (387,240) (1,161,698) (1,161,698) (51,803) Accounting Surplus/(Deficit) - (37,855) - - (37,855) Funding sources Rates revenue Total Funding Funding Deficit - (37,855) - - (37,855) Finance, Audit and Risk Committee - 6 December

30 2. Investments included in current and non-current assets The table below shows a breakdown of long term investments as at 31 October 2018, the fund manager for each type of investment, and reporting against the limits in the Investment Policy. Investment type Fund Manager Investment Policy Council $000 Total Benchmark $000 Lower limit Upper limit Actual % BNZ $000 NZ Cash 1,003 1,003 5% 0% 10% 5% NZ Fixed Interest 4,886 4,886 8% 3% 13% 25% International Fixed Interest 4,140 4,140 22% 17% 27% 21% Total NZ & International Fixed Interest 9,026 9,026 35% 30% 40% 47% Australian Equities 2,730 2,730 20% 15% 25% 14% International Equities 6,648 6,648 40% 35% 45% 34% International Cash % 0.0% 10.0% 0% *New Zealand Property % 2.5% 12.5% 0% *New Zealand Equities % 7.5% 17.5% 0% *Commodities % 0.0% 7.5% 0% Total Asset Replacement Reserves 19, , % $5 million economic and community project funds on call 1,055 1,055 $5 million economic and community project funds on term deposit 0 Total $5million economic and project funds 0 1,055 1, Loans External Loans 14,938,364 BNZ Loan Summary Type Interest rate Maturity Value Fixed 4.26% 29/03/2019 2,500,000 Fixed 3.97% 30/06/2020 2,500,000 Floating 3.85% Revolving 9,720,743 14,720,743 * External loan balance shown as at 31 October 2018 * BNZ Loan summary is the expected balance for the quarter ending 31 December Rates Rates outstanding as at 31 October 2018 totals $7,428,149 Current instalment balance $5,979,286 Arrears relating to rates charged this year $338,934 Penalties balance $45,103 Arrears still outstanding from previous years $1,063,957 Court Costs $869 Total Due $7,428,149 Finance, Audit and Risk Committee - 6 December

31 %Rates Collection % Rates Collected YTD This Year Arrears as at 1 July 2018 $1,550, Current Year Levied $15,382, Penalties charged $64, Current year including penalties $15,447, Current Rates and Penalties Collection % History Comparison to same month last year Rates Account Arrears History Finance, Audit and Risk Committee - 6 December

32 Commentary on collection of rates arrears relating to previous years: Both the number of accounts, and the $ amount outstanding as the start of the rating years has steadily reduced from previous years. (1334 accounts and $1,780,728 at 7/2014 has reduced to 1024 accounts and $1,550,044 at 7/2018). As the number of accounts with previous year's arrears reduces, the collection ratio deteriorates due to the remaining accounts being made up of a higher proportion of hard to collect arrears. These are properties that sometimes require debt collection through the District Court and possibly rating sales to reduce or clear arrears. Debt collection action is taken as required. Accounts are referred to Council prior to any action to commence a rating sale. 5. Council reserves as at 31 October 2018 Asset replacement reserves An amount of money equivalent to the current year's depreciation is transferred to these reserves during the year. These funds are then available to fund future capital expenditure and loan repayments. Asset Replacement Reserves Closing Balance Balance as at at 31 October Jul $ Bridges ARR (522,819) 522,819 Cemeteries ARR (59,426) 53,712 District Recycling ARR (132,716) 137,044 General ARR (303,937) 308,891 General Properties ARR (134,052) 136,217 Information Systems ARR (881,805) 876,255 Parks & Reserves ARR (49,730) 16,857 Putāruru CCTV ARR (21,188) 21,188 Refuse Disposal ARR (957,401) 915,259 Sport & Event Centre ARR (564,940) 591,464 Sportsgrounds ARR (102,344) 125,763 Stormwater ARR (5,483,311) 5,613,946 Swimming Pools ARR (72,674) 86,171 Toilets ARR (127,403) 109,420 Tokoroa CCTV ARR (26,517) 26,517 Trade Training Centre ARR (39,594) 39,594 Vehicle ARR (260,556) 309,222 Wastewater ARR (6,225,581) 6,173,705 Water ARR (3,252,086) 3,534,985 TOTAL (19,218,078) 19,599,032 Finance, Audit and Risk Committee - 6 December

33 ed rate reserves ed rates are levied on specific properties for a specific purpose. The funds are kept in separate reserve accounts, so they are only used for that specific purpose. ed Rate Reserves Closing Balance Balance as at at 31 October Jul $ Water Supply 626,486 (722,214) Wastewater 296,807 (309,752) Stormwater 477,637 (557,164) Refuse Collection 52,263 (55,360) Upper Atiamuri Hall 29,028 (29,224) Puketurua Hall 1,850 (749) Waotu Hall 4,245 (3,328) Lichfield Hall 34,430 (34,363) Arapuni Hall (7,122) 9,544 Tapapa Hall (8,186) 5,414 Piarere Hall (106) 106 Tirau Community Board (3,379) 5,207 Tokoroa CBD (21,846) 36,652 Putāruru CBD (28,621) 17,802 District Recycling 167,330 (147,917) TOTAL 1,620,814 (1,785,347) Council created reserves These reserves are created by Council for a specific purpose. The funds have been set aside and are able to be used at Council's discretion. Council Created Reserves Closing Balance Balance as at at 31 October Jul-17 $ Pensioner Housing Account (53,093) (89,163) SWDC Asset Purchase 308,034 (58,034) South Waikato Investment Fund (SWIF) (1,236,932) 1,054,623 South Waikato Economic Development Trust (39,108) 29,108 Riverside Access Reserve (416,626) 416,626 SW Financial Contributions - Reserves (51,059) 57,830 SW Financial Contributions - Roading (174,861) 187,791 National Waste Levy Reserve (200,675) 188,223 Stormwater Financial Contribution (1,941) 1,941 Water Financial Contibution (920) 920 Wastewater Financial Contibution (0) 0 Mayoral grants reserve - - Forestry/Airport Reserve (389,220) 389,220 Land Purchase 14,880 (23,389) TOTAL (2,241,522) 2,155,697 Finance, Audit and Risk Committee - 6 December

34 6. Invoices paid over $500,000 Since September 2018 there has been one invoice paid which was over $500,000. Date Creditor Amount Reason 23/10/18 Downers EDI Works Limited $538,708 October Road Maintenance Payment 7. Performance Reporting Update for the 4 months to 31 October 2018 Key Performance Indicators as at 31 October 2018 Activity Achieved Slipping Not Achieved Not yet measurable Total Transport and Roading Solid Waste and Recycling Water Supply Stormwater 5 5 Wastewater 5 5 Recreation and Facilities Community Development Regulatory Governance and Corporate Total Finance, Audit and Risk Committee - 6 December

35 ASSETS & SERVICES Key Performance Indicators ROADING SOLID WASTE/RECYCLING EXCEPTIONS ROADING FOOTPATHS this KPI is measured at the end of the year ROADING SAFETY No. of fatalities or serious injury attributable to road condition ROADING REQUESTS URGENT % urgent requests responded to on time (within 2 days) RECYCLING COLLECTION No. of enquiries and requests responded to within 2 working days ROADING CONDITION this KPI is measured at the end of the year ROADING SEALED ROADS this KPI is measured at the end of the year % 100% (2 of 2) 90% 93% ROADING FOOTPATHS ROADING REQUESTS REFUSE COLLECTION Proportion of footpaths with % non-urgent requests responded No. of enquiries and requests displacement < 15mm to on time (within 10 days) responded to within 2 working days 90% n/a 90% 100% (211 of 211) 90% 92% ROADING CONDITION RECYCLING PROPORTION Smooth travel exposure Amount recycled as a at least 70% of NZTA target proportion of residual waste 70% n/a ROADING SEALED ROADS No more than 15% of the sealed road network exceeds useful life 10% 14% RESOURCE CONSENT COMPLIANCE No. of Formal Enforcement Actions from WRC s in RED: missed by >5% s in AMBER: missed by <5% s in GREEN: achieved Total network 283,000m %Exceed start 14.8% Exceed end n/a %Exceed end n/a Finance, Audit and Risk Committee - 6 December

36 ASSETS & SERVICES Key Performance Indicators WATER SUPPLY WATER SUPPLY QUALITY No. of unsecure water sources treated for protozoa WATER SUPPLY QUALITY No. of tests E-coli < one per 100ml STORMWATER STORMWATER FLOODS EVENTS No. of flood events in a year EXCEPTIONS WATER SUPPLY LOSS this KPI is measured at the end of the year 7 7 of 7 97% 100% 0 0 WATER SUPPLY FAULTS WATER SUPPLY COMPLAINTS STORMWATER COMPLAINTS Median attendance time No. of complaints per No. of complaints per for disruptions 1000 connections 1000 connections This month 30mins This month 1 This month 0 90% 60 mins p.a. 29mins 7 per annum 1 7 per annum 0 WATER SUPPLY RELIABILITY STORMWATER FLOODS Median response time No. buildings flooded that for call-outs comply with Building Code 60 mins 100% WATER SUPPLY RELIABILITY Median resolution time 0 0 STORMWATER CALL OUTS Median response time for call outs s in RED: missed by >5% s in AMBER: missed by <5% for call-outs to attend flood events s in GREEN: achieved 12 hrs 2hrs 4hrs 0 WATER SUPPLY LOSS Water loss in reticulation network 20% n/a STORMWATER COMPLIANCE No. of Formal Enforcement Actions from WRC 0 0 Finance, Audit and Risk Committee - 6 December

37 ASSETS & SERVICES Key Performance Indicators WASTEWATER PARKS & RESERVES BUILDING EXCEPTIONS WASTEWATER COMPLIANCE No. of Formal Enforcement Actions from WRC 0 0 WASTEWATER COMPLAINTS No. of complaints per 1000 connections This month 0 7 per annum 0 WASTEWATER BLOCKAGES Median time to clear blockages from notification PARKS & RESERVES URGENT % urgent requests responded to on time (within 2 days) This month 100% (3 of 3) 100% p.a. 100% PARKS & RESERVES NON-URGENT % non-urgent requests responded to on time (within 10 days) This month 84% (41 of 49) 100% p.a. F 81% (74 of 91) PENSIONER HOUSING OCCUPANCY % occupancy of units over the year 95% S 93.7% PUBLIC TOILETS % customer Requests for Service responded to within 2 days 90% 100% (20 of 20) PARKS & RESERVES NON-URGENT continuing high volume of requests and getting new staff up to speed has resulted in this KPI not being met. PENSIONER HOUSING OCCUPANCY - October has unfortunately seen an increased number of tenants pass away or need to be moved to retirement homes in quick succession. This left an unusual amount of units to be worked on at one time. These units are undergoing refurbishments from light painting to remodelling of kitchen and contractors have now completed most works and property team have new tenants organised to move in. Leading into December there are currently two units remaining that are scheduled to have work completed by end of month. 24hrs 4hrs WASTEWATER CALL OUTS Median response time for call-outs 60 mins 20 mins WASTEWATER OUTFLOWS No. of dry weather outflows per s in RED: missed by >5% s in AMBER: missed by <5% s in GREEN: achieved F or F = Not achieved S or S = Slipping 1000 connections 22 per annum 2 Finance, Audit and Risk Committee - 6 December

38 COMMUNITY RECREATION FACILITIES EVENTS CENTRE LIBRARIES POOLS Key Performance Indicators EVENTS CENTRE USAGE No. visits per resident per year LIBRARY VISITS No. visits per resident per year POOL VISITS No. visits per resident per year This month 3,645 This month 13,607 This month 7,521 44,142 p.a. 22, ,462 p.a. 48, p.a. 25,552 2 per resident per resident S per resident S 3.3 EXCEPTIONS LIBRARY VISITS We achieved target this month, but low numbers in previous months mean that we are tracking behind for the year. POOL VISITS - Historically, the numbers of people visiting the pools is at its highest in summer months from November to March and lowest in winter months July, August and April. We therefore expect this KPI to move back on track over summer. EVENTS CENTRE SATISFACTION Satisfaction level rating by users 90% 99% LIBRARIES SATISFACTION Satisfaction level rating by users 95% 100% DISTRICT POOLS SATISFACTION Satisfaction level rating by users 90% 98% LIBRARY ONLINE No. visits to online library services and social media This month 1, p.a. 6,624 LIBRARY GROUPS No. of groups engaging with district libraries This month per year 86 POOL WATER QUALITY No. of pool water tests complying with NZ standards 90% 98% s in RED: missed by >5% s in AMBER: missed by <5% s in GREEN: achieved F or F = Not achieved S or S = Slipping Finance, Audit and Risk Committee - 6 December

39 COMMUNITY DEVELOPMENT & CIVIL DEFENCE Indicators COMMUNITY DEVELOPMENT CUSTOMER SERVICES Satisfaction level rating for frontline Customer Services team CIVIL DEFENCE CIVIL DEFENCE EXERCISE No. SWDEOC or Managers exercise per annum Key Performance EXCEPTIONS COMMUNITY CONTRACTS This KPI percentage can only be measured at the end of the year but the quarterly assessment shows it is currently on track. 80% 96% 1 per year 0 COMMUNITY COLLABORATION No. of interagency collaboration CIVIL DEFENCE TRAINING No. training sessions/exercises meetings attended within WCDEMG 10 per year 5 3 per year 3 COMMUNITY EVENTS No. of events with 2 or more key stakeholders supporting/partnering CIVIL DEFENCE VISITS No. visits to local organisations 8 per year 5 This month 4 20 per year 11 COMMUNITY CONTRACTS % of KPIs met by community contract holders 90% On track Finance, Audit and Risk Committee - 6 December

40 REGULATORY COMPLIANCE & BUILDING CONTROL ANIMAL CONTROL URGENT 100% urgent requests responded to within 1 hour This month YTD 100% (5 of 5) 100% (36 of 36) ANIMAL CONTROL DOOR TO DOOR Door to door programme completed by end of November End Nov 2018 BUILDING CONTROL Meet with builders and designers at least twice per annum Completed Oct-18 2 p.a. S 0 Key Performance Indicators BUSINESS CASE & RESOURCE MANAGEMENT BUSINESS CASE MANAGEMENT 90% of relevant projects contacted within 3 working days This month 100% (7 of 7) YTD 100% (11 of 11) RESOURCE MGMT MONITORING No. hours per annum monitoring land use, compliance & existing 80hrs p.a. RESOURCE MGMT CONSENTS 45hrs YTD 95% non-notified consents processed in 10,20 or 40 working days This month YTD 100% (4 of 4) 100% (14 of 14) ENVIRONMENTAL HEALTH ENV. HEALTH - FOOD ACT 2014 % of premises verified annually 90% n/a ENV. HEALTH - HEALTH ACT 1956 % of premises inspected annually 95% n/a LIQUOR LICENSING % of on/off/club licenses inspected annually 100% n/a EXCEPTIONS BUILDING CONTROL CONSENTS have achieved this month s target, however the results show YTD target is slipping. ENV. HEALTH - FOOD ACT 2014 this KPI is measured at the end of the year. Interim measurements are being determined to track progress ENV. HEALTH HEALTH ACT 1956 this KPI is measured at the end of the year. Interim measurements are being determined to track progress LIQUOR LICENSING this KPI is measured at the end of the year. Interim measurements are being determined to track progress BCA ACCREDITATION Council will retain accreditation as a Building Consent Authority Retained BUILDING CONTROL CONSENTS 95% of consents processed within 20 working days This month YTD Completed 100% (26 of 26) S 92% (156 of 169) PLANNING INPUT > CONSENTS Planning input into Building Consent completed 5 days YTD 100%(29 of 29) 100%(29 of 29) LIQUOR LICENSING COMMUNITY South Waikato Liquor Accord group meetings per year Finance, Audit and Risk Committee - 6 December per year 0 s in RED: missed by >5% s in AMBER: missed by <5% s in GREEN: achieved F or F = Not achieved S or S = Slipping

41 GOVERNANCE & CORPORATE Key Performance Indicators COMMUNICATIONS FINANCE & REVENUE CORPORATE & EXECUTIVE COMMS OIRs No. of official information requests responded to within 20 or 40 days This month 100% (2 of 2) 100% p.a. F 90% (28 of 31) COMMS MEDIA QUERIES % of media queries responded to within 2 working days 90% 100% (20 of 20) COMMS MEDIA QUERIES 2 % of media queries resolved within 5 working days 90% 100% (20 of 20) COMMS SATISFACTION Satisfaction level rating by community 75% S 72% COMMS IN MEDIA Media statements in local media within 28 days 60% 100% (1 of 1) FINANCE ed rates revenue vs. rateable expenditure $500,000 n/a REVENUE/RATES % of rate arrears compared to total rates due 7.5% 4% GOVERNANCE SATISFACTION Community satisfaction level for participation in decision-making 70% S 64% LTP & ANNUAL PLANS LGA compliance: adoption of Long Term Plans and Annual Plans 100% Plans n/a ELECTIONS Error-free elections conducted as per Local Elections Act % elections n/a DEMOCRACY LGA compliance: elected officials functions & document consultation Complied 100% INFORMATION SERVICES UPTIME System availability 24hrs/365 days per year 99% 99% EXCEPTIONS COMMS OIRs Official information requests are handled by individuals who can be based in any Group. Achieving the 20 day processing timeframe is the responsibility of individual staff. Current resource levels are placing a strain on staff meeting this KPI, in conjunction with their day to day work. Staff are frequently briefed on not leaving these till the last minute. COMMS SATISFACTION & GOVERNANCE SATISFACTION these results came from the Customer Satisfaction Survey, which are measured every quarter. That report notes a general drop in satisfaction with governance, trust, communication and participation. Although Governance Satisfaction, shows as not achieving, there is possibility of improvement pending the next set of results due at the end of January LTP & ANNUAL PLANS this KPI is measured after the Annual Plan is adopted. ELECTIONS this KPI is completed once elections have been held. FINANCE this KPI is measured at the end of the year, however we are on track. s in RED: missed by >5% s in AMBER: missed by <5% s in GREEN: achieved F or F = Not achieved S or S = Slipping Finance, Audit and Risk Committee - 6 December

42 Capex Report - October 2018 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Assets Group 1,324,881 15,194,368 2,276,070 9% Business Support 13, GIS 13,000 Equipment upgrade not yet started Cemeteries 10,396 14,000 10,396 74% Berm Installation 3,896 5,500 3,896 71% Berm constructed, project completed Ash Berm Installation 2,000 2,000 Ash Berm constructed, project completed Capital Expenditure 3, Berm Installation 4,500 5,000 4,500 90% Berms constructed, project completed Property Mgmt 5, ,000 3% Condition Assessments 50,000 Underway Water Tightness, Compliance & HVAC 5, ,000 4% Halls 96, Miscellaneous Capex 2, Miscellaneous Capex 5,000 Compressor Replacement for Outdoor HVAC unit that feeds 5 offices, plus Server room Pricing being sought to replace guttering around building Ceiling Paint Foyer 3,500 Leaks to be repaired before painting starts Arthur Fountain Studio St 45,000 Underway. Due for completion end November Stage Curtains 12,500 Replaced in last financial year Miscellaneous Capex 8, Miscellaneous Capex 4, Address Hot Water Issues 10,000 Hot water solutions are being investigated Miscellaneous Capex 5,000 Finance, Audit and Risk Committee - 6 December

43 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Improvements of local roads 39, , ,300 8% Minor Improvements Capex 485, Stafford Place Splitter Island 41, Old Taupo Rd Minor Improvement 39,500 This is the Horahora Rd Improvement Project work to date This project is in the design phase and works are planned to start early November Project Investigation 16,408 38, Stafford Place Splitter Island 23,368 6,500 Maintenance + operations local roads 29, ,000 66,100 8% Formation Widening 350, Horahora Rd - Rehabilitation 8,527 11,300 Complete Totman Rd - Rehabilitation 8,093 4,800 In-progress Footpath Renewals 12,864 50,000 In progress Pensioner Housing 115, ,300 22% Pensioner Unit 4 - Kingergarten Place Tokoroa 65,252 50, % Upgrade Works 50,475 85,300 59% Purchase of Tainui St 380,000 Playgrounds 2,499 Final parts of the Capital works to complete the Kindergarten Place Units, includes access ramps, landscaping, painting and construction work. All works are now complete on this project Manaia St, Tokoroa and Little St, Tirau capital work completed to date Playground Equipment Renewals 2,499 Eco Chime Quartet purchase Property 24, ,800 3% Upgrade Works 12,000 Currently scoping works ATC Building - Roof Replacement 6, CCTV for Council Properties (10 Cameras) 15,000 Finance, Audit and Risk Committee - 6 December

44 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Health & Safety Issues 25,000 Works to start in November Interior Repaint 1, HVAC Remedial Work 18, ,000 8% Upgrade Works 60, Tokoroa office Utilisation 1, ,000 0% Upgrade Works 3,934 6,800 58% CCTV for Tokoroa Depot (10 Cameras) 15, Upgrade Works 12,200 Renewal of local roads 601,080 6,044,000 1,721,645 10% Leith Pl Improvements ex ,420 3,578,000 2% RCR infrastructure progress claim, consultancy charges etc, progress Project underway. Plans being finalised and drawn. Some furniture to be purchased to enable some better office utilisation in the short term. New fencing by Old Fulton Hogan Building (Demolished) Tenders have been received and due to the tender price being much higher then budgets the project is be reviewed CCTV Cameras 12,382 11, % Supply and installation complete Sealed Road Resurfacing 1,070, Maintenance Chip Seal 4, ,000 Internal cost works charged, project scheduled for late November Asphalt Surfacing - Resurfacing in CBD 100, Drainage Renewals 160, Culvert Renewal 39,151 38,400 Culvert replacement McMeekan Dr Drainage Improvement 5,395 5,395 PS on-going Pavement Rehabilitation 850, Church St - Rehabilitation 160, ,800 Complete Project Investigation 29,817 40,800 Internal design cost Finance, Audit and Risk Committee - 6 December

45 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Horahora Rd Pavement Rehab 119,631 65,400 Complete Totman Rd - Pavement Rehab 85,466 82,100 Complete Traffic Services 210, Traffic Services Signs Renewals 23,871 90,000 Replacement of damaged or missing signs to date Streetlighting Capitals 41, , Assoc Improvements Seal Widen 165,000 Consultancy costs in relation to carriage lighting contract Horahora Rd - Rehabilitation 42,050 Complete Totman Rd - Rehabilitation 19,528 33,700 Complete Reserves 51,378 1,193, ,446 4% Tirau Walkway ex (39,783) 192,668-21% Memorial Sportsground Entrance off SH1 10, ,000 5% Playground Equipment Renewal - Dunhams 24,181 37,000 27,192 65% Consultancy charges to date offset in part by the expected funds yet to be received from Kiwirail Entranceway work completed to date including landscaping Swingset installed, cushionfall surfacing installed. Top ups of cushionfall in other playgriunds completed, replacement spinner installed in Tirau Village Green playground Playground Equipment Renewal - Okoroire/Prospect Reserve 26,500 Awaiting on design options for skateable item(s) and quote from supplier Okoroire - Prospect Reserve Half Court 10,000 Pad for skateable item(s) when design confirmed Signage, Furniture, Bins & Fences Renewal 11,829 17,500 7,634 68% Replacement signs for Snowsill and Duxfield reserves now installed. Picnic table frames now manufactured ready to install into Duxfield and Arapuni Village Green sites. Fencing works in various reserves completed. 200L bin installed at Tirau Domain. Finance, Audit and Risk Committee - 6 December

46 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Install Bbq`s - Dunhams Point 22,000 21, Walkways Development 25,356 52,000 31,356 49% Te Waihou Bridge/Boardwalk Refurbishment 11,000 1, Jim Barnett Reserve - Bridge Replacements 15, Renewal & Upgrades of Internal Reserve Roads 19,345 50,000 40,690 39% Putaruru Waterpark Design & Refurbishment 400, Town Maintenance 10,000 9,405 Shelters being manufactured for installing over existing BBQ units to provide shade and also due to rainfall draining off plates causing overflow of fat collection containers. Sloss Road Reserve walkway now completed. PO issued for concrete path to be installed in Tirau Cemetery from carpark to RSA area. PO issued for construction of 3 sections of boardwalking for sloping / boggy area totalling 180m in length. Bridges have been assessed to prioritise upgrading works needed, PO issued to complete works. Little Waipa reserve internal road regrading/metalling completed. PO issued to Downer for sealing Duxfield reserve entrance and re-metalling Duxfield internal road. Urbanism Plus engaged to provide graphics and lead consultation sessions with community leaders, Councillors and the public to then provide a design brief for Landscape architect. Project cancelled, increase in LoS will be provided in new Parks Contract. Funding has been used to install bollards and re-levelling/seeding work at Okoroire- Prospect Reserve Oraka Stream 150,000 Wastewater 344,804 2,495,500 95,129 14% Health & Safety 30, Tokoroa Wwtp Enhance Nitrogen Removal Treatment Plant Digestor 83,253 1,881,000 4% Tender documents are being reviewed Treatment Plant Sludge Thickener 170, Wastewater Resource Consent 202,274 Tokoroa and Arapuni consents have been lodged with WRC Finance, Audit and Risk Committee - 6 December

47 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments UV Lamps 4,932 40,000 5,418 12% Quotes received Tokoroa Plant & Equipment Replacement ,000 21,317 0% Design in progress Putaruru UV 7,000 Quotes received Putaruru Plant & Equipment Replacement 6,405 47,500 12,594 13% Grundfos adaptor replaced at Market St Miscellaneous Capex 5,772 Putaruru WWTP digestor related costs Tirau Plant & Equipment Replacement ,000 13,800 0% Work in progress Tirau Wwtp Membranes 27,000 30,000 27,000 90% Membrane plates received Kittow St Sewer 50,000 Design in progress Wetlands Tirau 13,882 15,000 Beca wetland design professional services Solid Waste 42, ,600 11% Recycling Station Relocation - Tirau 25,000 Awaiting community board to determine a location to move too Refurbish Kiosk 26,205 26, % Landfill Portacom Tipping Platform 1,700 26,400 6% Landfill Aftercare 80, Solid Waste Disposable - Landfill Future 14, ,000 10% Transfer station to be designed Capital projects 5, Croad Pl-chip sealing yard 82,000 Sportsgrounds 16, Construction of Skate Park 16,664 Downer to seal yard and property team to repair leaks in the office Bollards completed. Works for additional seating and removal of old railings to be completed Sportsgrounds & Courts 121,500 20,000 Finance, Audit and Risk Committee - 6 December

48 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Skatepark - Basketball Half Court & Learn to Ride 100, Replace Sports Equipment 21,500 20,000 SWOT analysis written for Council consideration of site options Gym guru exercise equipment being manufactured, PO issued for concrete pads at Glenshea Park's lower field to compliment fitness stations on top fields. Stormwater 1, ,200 0% Tokoroa Minor New Works 1,500 11,200 13% Engineering consultancy assistance SH1 Stormwater 180,000 Design in progress with NZTA Putaruru Minor New Works 10, Hillcrest Stormwater 60,000 Design in progress Okoroire/Goodwin Stormwater Improvements 50, Arapuni Minor New Works 5,000 Unsubsidised roads 200,000 40, Non-sub roading projects 200, Christmas - Feature Lighting 40,000 Scheduled for December Water 38,989 1,878,500 57,054 2% Health & Safety 30, Reticulation Replacements 153,000 Leith Pl work on hold as part of the development Tokoroa Capital Maintenance 15, Tokoroa Plant & Equipment Replacement 2,423 62,000 4% Call for prices Tokoroa Reticulation Replacements 330,000 10,000 Belmont work complete waiting invoice Putaruru Capital Maintenance 15, Putaruru Plant & Equipment Replacement 139,000 Designs in progress Putaruru Reticulation Replacements 13,777 35,000 28,054 39% Work to take place in December Finance, Audit and Risk Committee - 6 December

49 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Waihou Chlorine Disinfection 20,000 Design complete Pinedale Reservoir 100, Putaruru Drinking Water Disinfection 13, ,000 14,000 2% Blue spring water supply consultancy work Putaruru Water - Te Waihou Screen 105,000 Design in progress Capital Component of Maintenance 40, Reticulation Replacements 5, Tirau Capital Maintenance 12, Tirau Plant & Equipment Replacement 39,000 Awaiting prices Tirau Reticulation Replacements 40,000 Church St Firemain complete awaiting costing Arapuni Plant & Equipment Replacement 4,998 15,000 33% Pump repaired Arapuni Reticulation Renewal 4,291 28,000 15% Community Group 43,289 1,432,400 43,225 3% Community Services ,000 0% Pole Installation 43, Pole Installation 10, District Branding - Signs ,000 2% Strategic Residential Property Projects 300, District Gateway Project 75,000 Events Centre 2,617 10,000 26% Poles to be moved out of Leith Place before Christmas (before Leith Place works start) anticipated cost: $30-35K. Remainder of budget to be used in early 2019 for pole placement within forest and talking activation project To be used to move existing poles per the Talking Poles to be moved out of Leith Place before Christmas (before Leith Place works start) anticipated cost: $30-35K. Remainder of budget to be used in early 2019 for pole placement within forest and talking activation project Plant Replacement 2,617 10,000 26% Car park lighting replacement in Sept. Finance, Audit and Risk Committee - 6 December

50 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Libraries 29, ,900 5% Library Collection 27, ,000 19% 18% of expected library collection budget spent to date, continuously monitoring through the year Miscellaneous Capex 12,000 Project to be started January; Re-Roofing & Water Tightness 400,000 Working with Property team on the initial assessment of the building Review Space Requirements 50,000 Project to start after the assessment of the buildings Miscellaneous Capex 1,976 2,900 68% Rollaway shelving conversion for the Putaruru Library Miscellaneous Capex 6,000 Expect to use funds for interior and exterior building signage Pools 10, ,500 43,225 3% Tokoroa pool projects 96, Floor Finishings - Changing Rooms 8,886 12,000 74% Further floor tiling in eating area completed in August Miscellaneous Capex 42,000 Contingency for pool breakdowns Tokoroa Pool Roof 1, ,000 2% Pool roof repairs are in progress Plant Replacement 5,000 Seasonal. Pools to open in November Pool Upgrades 33, Pool Upgrades 57,000 43,225 $57,000 transferred from Tokoroa upgrade budget to cover pools resurfacing starting October. Corporate Group 519, ,800 99% Corporate Funding 60, ,100 33% Vested Assets 60,527 Donated wastewater and drainage fittings received Furniture Renewals 61 22,100 0% Monitor Arm and Clamp purchased for user Vehicle Replacement 160,000 Finance, Audit and Risk Committee - 6 December

51 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Information Services 459, , % Core Infrastructure Hardware 90, Peripherals Hardware 8, UPS Hardware 41, Core Infrastructure Hardware 312,905 12, % IS Infrastructure Upgrade: Capital purchase and physical installation complete. Configuration ongoing Runrate: end-of-life replacement and new-starters, IS Infrastructure Uprade Desktops Hardware 2,025 58,500 3% Runrate: end-of-life replacement and new-starters Peripherals Hardware 11,500 Runrate: end-of-life replacement and new-starters Printers Hardware 10,500 Spend is pending review of internal Print Services Servers Hardware 12,000 New Watermark and Network management servers planned Q Software Network 6,000 Upgrades to ManageEngine suite Storage Hardware 11,500 Veeam backup upgrades expected Telephone Systems Hardware 3, UPS Hardware 11,000 Covers replacement devices and WAN comms updates To be removed. Spend complete. $11K to be cut from budget OCE Scanner Wide format 23,200 Spend is pending review of internal Print Services Server and Storage Upgrade 3, Infrastructure Upgrade 185,000 Carried Forward from prior yeay and funds the Core, UPS, Server and Storage upgrades (144K) Regulatory Group 19, ,700 14% Civil Defence/Rural Fire 19, ,700 14% Replace CD Radios 3,500 3, % CD radios used with bgan to purchase new compliance radios Finance, Audit and Risk Committee - 6 December

52 Account YTD Actuals 18/19 incl c/overs and transfers Approved green forms 18/19 % of Revised Annual CAPEX Comments Explorer 700 BGAN 8,750 8, % This is as per the Replace CD Radio note above Replace CD Radios 3,962 3, % Fitting Costs associated with the CD Radios Honda Generator 2,830 3,200 88% Generator at Events Centre 120,000 Purchase of Honda EG5500CX with additional running accessories to come Finance, Audit and Risk Committee - 6 December

53 5.3 Payroll Audit Report Document Information Report To: Finance Audit and Risk Committee Meeting Date: Thursday, 6 December 2018 Author: Fiona Ferrar Author Title: Finance Manager Report Date: Thursday, 8 November 2018 Purpose of Report This report is for information purposes only. Background Council are now using the Datacom system to process payroll. To ensure that the payroll function is still operating effectively, Management requested an internal audit to perform and end-to-end review over SWDC's payroll function. The audit was carried out by KPMG in June and July The internal audit objectives were to: Assess the adequacy of design and/or operating effectiveness of processes and controls over the payroll function; and Provide recommendations for improvement where opportunities exist. Discussion Included in the report from KMPG are a number of key strengths. Staff identified the following positive aspects that Management should continue to build on to enhance the overall control environment over SWDC s payroll processes: Tone at the Top: there is a strong tone at the top recognising the importance of good practice in the payroll function to mitigate key business risks. SWDC staff and Management also demonstrated a good and consistent understanding of payroll processes. Continuous improvement culture: SWDC have recently invested in Datacom to improve the overall efficiency and quality of their payroll processes. The system provides a number of useful functions and strategic insights in payroll data and payroll calculation methods. Exception report review: review of exception reports is a key control for SWDC s payroll function. The payroll exception reports are reviewed by the Human Resources (HR) Manager and the Finance Manager prior to payroll payment approval. Datacom payroll instruction manual: SWDC has a comprehensive pack of instruction manual for various users (i.e. employee, managers, and payroll admin). They act as reference guides to enable users to perform necessary functions in their roles. There were also five audit findings - four rated as medium and one as low. These findings and the action points established to address those findings are included in the overall report which is attached. Recommendation That Report No , Payroll Audit Report, be received. Attachments Payroll Internal Audit Report - KPMG (ECM ) Finance, Audit and Risk Committee - 6 December

54 5.4 Health and Safety Report - December 2018 Document Information Report To: Finance Audit and Risk Committee Meeting Date: Thursday, 6 December 2018 Author: Author Title: Andrew McFadyen Health and Safety Manager Report Date: Friday, 23 November 2018 Purpose of Report This report is for information purposes only. This report is to provide an update on Health and Safety performance for the period 6 October to 23 November Recommendation That Report No , Health and Safety Report 6 October 2018 to 23 November 2018 be received. Discussion A review of SafetyNet s performance indicator section and recorded events was completed to enable the development of performance measures for lead and lag indicators relating to health and safety. At the time of report SafetyNet is providing data relating to lost time injury frequency rates (LTIFR), total recordable frequency rates (TRIFR) for this current financial year. Detailed information can be found under critical element 3. The definitions for the used for both Lost Time Injury Frequency Rate and Total Recordable Injury Frequency Rate have been aligned to the Business Leaders Health and Safety forum to enable trend and performance comparisons against similar industry sectors. Critical Element 1 Employer commitment to safety management practices Each group is continuing to review their critical risks. Critical Element 2 Planning, review and evaluation Nothing to report this period. Critical Element 3 Hazard Identification, assessment and management An electronic Take5 risk management process has been developed within SafetyNet using the Vault Check application. Staff will be trained in this process over upcoming weeks. The process is focused on having staff look at the task at hand and asking themselves Am I safe to work? This will provide staff with the ability to identify hazards, record observations and improve the way in which we capture and record safety data and information in real time. Finance, Audit and Risk Committee - 6 December

55 Critical Element 4 Incident and injury reporting, recording and investigation Notifiable Events There are no notifiable events for this period. Current ACC claims There is one open claim for this period. This claim dates back to May 2018 with ACC waiting on further medical opinions from specialist to enable them to progress the claim further. Lost Time Injuries There are no lost time injuries for this period. Our current Lost Time Injury Rate (LTIFR) is 0.0 per 200,000 work hours for this financial year to date. Medical Treatment and First Aid For the current reporting period we recorded two staff first aid treated injuries. Our current total recordable injury frequency rate (TRIFR) is 1.86 per 200,000 work hours. Current TRIFR does not include contractors as further investigation is required in to capturing hours worked by contractors. Safety Trends Figure one: Performance indicators for events reported in financial year 2018/19 Figure two: Total recordable injury frequency rate per 200,000 work hours for financial year 2017/18 Finance, Audit and Risk Committee - 6 December

56 Figure three: Event type by site for reporting period. Figure four: Events by person involved for reporting period. Table One: Summary of events for reporting period. Event Date Site Name Type of Event Event Severity Event Subject Involved Person Type 14/10/2018 Event Centre Injury Minor Falls from a height (01) Third Party 16/10/2018 Property Management Injury Moderate Being hit by moving objects (05) Worker 18/10/2018 Event Centre Injury Minor Falls on the same level (including trips and slips) (02) Third Party 26/10/2018 Asset Group Management Incident Moderate Environmental Worker Finance, Audit and Risk Committee - 6 December