Finance, Legal & Risk Management

Transcription

1 Finance, Legal & Risk Management Why we do it Finance: To provide the organisation with effective strategy, planning, use, monitoring and reporting of its financial and business resources and to provide financial transactional services to the organisation. To provide the organisation with high quality and cost effective legal advice. To enable the organisation to minimise its risks through good risk management practices and appropriate insurance cover. What we do Finance Finance comprises Financial and Management Reporting, and Transactional Financial Services. This includes Land and Rating Information, Accounts (accounts payable, sundry invoicing), Water Revenue and Maori Land and Revenue Collection. Finance plays a key leadership role in supporting and encouraging the organisation to think and act smarter about financial management. It helps support the organisation to be financially responsible and accountable about how we spend, save, generate and manage our funds. Financial and management reporting is broadly split between the provision of strategic financial advice, guidance, recommendations and financial reporting to senior management, the Executive Team, the Council and business support which is the core business of a generic finance department. The Council has over 50 separate activities, has an operational expenditure budget in excess of $150 million funded mostly by rates revenue and user fees and manages over $3 billion of fixed assets. The Land and Rating Information team manage the creation of new land parcels resulting from subdivisions in the City, and the rates assessed on these properties. Rates revenue is the major source of Council revenue used to continue providing facilities and services to our City. 1

2 The Accounts team invoices all Council s customers and pays suppliers in a timely and efficient manner. Water Revenue manages the invoicing of water consumed by each household and business in our City. Maori Land and Revenue Collection manages the collection of rates and water debt. It also deals with wider Maori land issues where rates debt is involved. Legal The Legal Services function comprises the following key components: The provision of practical and strategic legal advice which takes account of Council s policy objectives and any relevant commercial, legal and/or political issues. Providing advice and contributing to the development of policies, procedures, plans, statutory and non-statutory documents, templates and reports to Council and its Committees. Management of legal proceedings involving Council. Monitoring legislative changes to identify any impacts and implications for the Council, and formulating relevant submissions relating to the proposed changes. Reporting to the Executive Team, Council and its Committees on legal issues. Reporting to Council s insurer on liability issues. Developing and maintaining strong working relationships with internal and external customers. Management of external legal service providers. Undertaking functions to ensure compliance with Council s Information Law obligations. The risk management function is primarily focused at providing: Renewal of insurance cover for Council. Co-ordination of insurance claims. Advice on insurance and risk management issues. Current delivery 2

3 Management Accounting: Strategic financial management advice and recommendations are presented regularly to the Executive Team and the Council. A sophisticated treasury management framework to support the Councils borrowing and investment requirements is maintained. Borrowing requirements are managed by having a mix of bank funding, issuing bonds to wholesale/retail investors and coordinating issuing redeemable preference shares on behalf of Council controlled organisations. Council is a participant in the Local Government Funding Agency (LGFA) created in the 2011/12 financial year. This will be another source of funds for Tauranga City Council Financial performance of the organisation is reported monthly. Financial management policies to comply with the requirements of the LGA 2002 have been developed. The Finance team continue to be valuable contributors to corporate projects. The financial aspects of the Development Contribution policy, funding for growth and opportunities to increase revenue from non-rate revenue funded activities is managed. Annual production of Budgets and Annual Reports Financial Accounting: Tax, statistical and New Zealand Transport Agency returns are completed. The fixed asset register is being integrated with asset management plans and the insurance schedules. Systems support, business planning and programming solutions are provided to internal customers as they arise. Transactional Financial Services: The Land and Rating Information team continue to apply the rating policy consistently across the City. Rates assessments, invoices, remissions and rebates are administered effectively to all ratepayers in the City. New land parcels and associated street naming are managed effectively. A city-wide revaluation will occur in The Accounts team continues to process approximately 2,000 to 3,000 payments to contractors and suppliers each month. Process improvements continue to be evaluated. Invoices are issued on behalf of all relevant Council activities to customers and collection of any outstanding debt occurs. 3

4 Water Revenue obtains cyclical water consumption readings from every household and business connected to the City s water supply system and invoices them accordingly. Invoices are issued on a quarterly basis. Revenue Collection achieves a high collection rate of land and water rates debt, through the various collection methods available to customers. Many historic Maori land issues are resolved through effective negotiation. Quality, pragmatic and solution-based legal advice is provided to all groups within Council by the Legal Services division. Succinct and accurate reporting on legal issues is provided to the Executive Team, Council and its Committees, within agreed timeframes. Internal and external customers are dealt with in a proactive, professional, responsive and timely manner. External legal services are currently provided by Cooney Lees Morgan, Simpson Grierson, Heaney and Co. and Brookfields on an as required basis. Procedures are developed, reviewed and enhanced to ensure that they work effectively and efficiently. Insurances are renewed annually. Claims are processed promptly. Additional delivery in the next three years Finance: Work with activity areas to develop and implement initiatives to assist the business in improving efficiencies and effectiveness Additional delivery in years four to ten 4

5 5