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AGENDA:Meeting of theFINANCE & AUDIT COMMITTEE
Wednesday 14 March 2018commencing at 5:00pm
at:Clocktower Chambers, Palmerston Street, Westport
Finance & Audit Committee Members:• His Worship the Mayor Garry Howard• Cr J Cleine• Cr D Hawes• Cr S Roche (Chair)• Cr R Nahr• Cr P Rutherford
Public Copy
Terms of Reference
Finance & Audit Committee______________________________________________________________________
PurposeThe Finance and Audit Committee will monitor and assess the following:• The correct level of service is being delivered within the approved financial parameters.• External financial funding is on track to be received within the budgeted financial year.• Council’s level of borrowing is financially sustainable and intergenerational equity requirements are achieved.• Council’s investments are growing as predicted and invested as per Treasury Management Policy and that all
breaches of policy are reported and approved by Council.• Rates are being collected and that debt recovery is under control.• Monitoring of Council’s fiscal prudence indicators.• Both external and internal audit requirements are met.
Delegated Powers• The Finance and Audit Committee has authority to undertake the following functions and to make recommendations
to Council as required:
Financial and Performance Monitoring • Monitoring financial performance to budgets• Monitoring service level performance to key performance indicators • Monitoring of Rates and General Debt collection
External Reporting and Accountability• Enquire of external auditors for any information that affects the quality and clarity of the Council’s financial statements,
and assess whether appropriate action has been taken by management.• Satisfy itself that the financial statements are supported by appropriate management signoff on the statements
and on the adequacy of the systems of internal control (ie letters of representation), and recommend signing of the financial statements by the Chief Executive and Mayor and adoption by Council.
External Audit• Confirm the terms of the appointment and engagement, including the nature and scope of the audit, timetable and
fees, with the external auditor.• Receive the external audit report(s) and review action to be taken by management on significant issues and audit
recommendations raised• Enquire of management and the independent auditor about significant business, political, financial and control risks
or exposure to such risks. Internal Audit• Review the internal audit coverage and annual work plans.
Frequency of Meetings Monthly
Reporting ToCouncil
Reporting TimelineMonthly dashboard report
MembershipChair:• Sharon Roche
Members:• Garry Howard• Robyn Nahr• Phil Rutherford• Dave Hawes• Jamie Cleine
FINANCE & AUDIT COMMITTEE MEETING14 MARCH 2018
INDEX
ITEM: PAGE:
Apologies
1. Members Interest .............................................................................................1
2. Confirmation of Minutes ...................................................................................2
3. Action Point List ...............................................................................................7
4. Financial Performance ....................................................................................8
5. Investments and Borrowings Report ..............................................................17
6. Capital Income and Capital Expenditure Report ...........................................23
7. Debt Recovery Report ...................................................................................29
8. Audit Management Action Points ...................................................................34
Page 1Finance & Audit Committee
FINANCE AND AUDIT COMMITTEE
14 MARCH 2018
Agenda Item No 1
Prepared by - Dean Phibbs - Manager Corporate Services
MEMBERS INTEREST _____________________________________________________________________
Councillors are encouraged to consider the items on the agenda and disclose whether they believe they have a financial or non-financial interest in any of the items in terms of Council’s Code of Conduct.
Councillors are encouraged to advise the Personal Assistant, Corporate Services, of any changes required to their declared Members Interest Register.
The follow flowchart may assist Councillors in making that determination (Appendix A from Code of Conduct).
DRAFT RECOMMENDATION
What is the matter being decided?
Do not discuss or vote.
No conflict. Can discuss and vote.
No conflict. Can discuss and vote.
No conflict. Can discuss and vote.
NO
YES
YES
NO
YES
NO
NO NO
YES YES
Declaration of InterestsGuidance for Elected Members
Who is to make a decision? Council, Council Committee or
Community Board?
Do I have a financial interest in the matter? That is, do I have a reasonable expectation of gain or loss of money as a result of any decision on this matter.
It my financial interest in the matter being decided an interest that is in
common with the public?
Do any of the other exceptions in the Act apply?
Pecuniary conflict of interest.
Could I apply for an exemption or declaration?
Application granted
Can discuss and vote.
That Councillors disclose any financial or non-financial interest in any of the agenda items.
Page 2 Finance & Audit Committee
FINANCE AND AUDIT COMMITTEE
14 MARCH 2018
Agenda Item No 2
Prepared by - Dean Phibbs - Manager Corporate Services
CONFIRMATION OF MINUTES _____________________________________________________________________
Minutes of the meeting held 15 January 2018.
DRAFT RECOMMENDATION
That the minutes from the meeting held 15 January 2018 are confirmed.
Page 3Finance & Audit Committee
MEETING OF THE BULLER DISTRICT COUNCIL FINANCE AND AUDIT COMMITTEE, COMMENCED AT 5pm, 15 JANUARY 2018, AT CLOCKTOWER CHAMBERS,PALMERSTON STREET, WESTPORT
PRESENT:Mayor G Howard, Councillor’s S Roche (Chair), P Rutherford, R Nahr and J Cleine.
IN ATTENDANCE:
Manager Corporate Services (D Phibbs) and PA Corporate Services (M Wilson).
Councillor G Hart.
APOLOGIES:
No apologies were received
1. MEMBER’S INTEREST
No Members Interests were disclosed.
2. MINUTES
Amend minutes to include Councillor D Hawes, who was present.
RESOLVED that the minutes of the 6 December 2017 meeting be accepted with the above amendment.
P Rutherford/J CleineCARRIED UNANIMOUSLY
3. ACTION POINTS
111. An update is expected for the March 2018 meeting.137. An update is expected for the March 2018 meeting.145. Change date to March 2018.147. Change date to March 2018.
RESOLVED that the report be received for information and discussion.R Nahr/S Roche
CARRIED UNANIMOUSLY
Page 4 Finance & Audit Committee
4. FINANCIAL PERFORMANCE
RESOLVED that the report be received for information and discussion.P Rutherford/J Cleine
CARRIED UNANIMOUSLY
5. INVESTMENTS AND BORROWINGS
RESOLVED that the report be received for information and discussion.G Howard/P Rutherford
CARRIED UNANIMOUSLY
6. SIGNIFICANT PROJECTS REPORT
RESOLVED that the report be received for information and discussion.J Cleine/G Howard
CARRIED UNANIMOUSLY
7. AUDIT NZ MANAGEMENT REPORT: 2016/2017 Annual Report
AP: Update the Audit Management Action Points report to include the 2016/2017 recommendations.
RESOLVED that the report be received for information purposes.D Hawes/S Roche
CARRIED UNANIMOUSLY
8. AUDIT MANAGEMENT ACTION POINTS
RESOLVED that the report be received for information and discussion.S Roche/R Nahr
CARRIED UNANIMOUSLY
9. PUBLIC EXCLUDED
RESOLVED that the public be excluded from the following parts of the proceedings of this meeting.Item No
Minutes/Report of:
General Subject
Reason for Passing Resolution
1. Lynn Brooks -Management Accountant
Aged debt Section 7 (f) i maintain the effective conduct of public affairs through the free and frank expression of opinions.
S Roche/G HowardCARRIED UNANIMOUSLY
Page 6 Finance & Audit Committee
FINANCE WORK PLANReviewed.
There being no further business the meeting concluded at 6:10pm Next meeting: 5pm, Wednesday 14 March 2018, Council Chambers, Palmerston
Street, Westport.
Confirmed: ………………………………..…………………Date: ……………………..
Name: ………………………..……………………………….
Page 7Finance & Audit Committee
FINANCE AND AUDIT COMMITTEE
14 MARCH 2018
Agenda Item No 3
Prepared by - Dean Phibbs - Manager Corporate Services
ACTION POINT LIST_____________________________________________________________________
Com
plet
ed
No. Meeting of: Action Point Responsible? Progress: Date required by:
111 11 May 2016 Leases and Licences to Occupy: Update register and provide report
Mike Duff An update was provided by Mike Duff and Rick Barry.
On-going.
February 2018
137 17 May 2017 WestReef Services: work with WestReef Services to tidy-up how H&S KPI’s are measured to provide consistency to the reporting.
Wendy ThompsonRobyn Nahr
Quarterly report to go to Councils October meeting.
February 2018
145 15 Nov 2017 Peel Street yard: remediation report to be provided by Mike Duff.
Sharon Roche
December 2017
147 6 Dec 2017 Westport Airport Grazing: a full report to be pre-sented to Council regard-ing loss of grazing at the Westport Airport, issues to be discussed.
Andy Gowland-Douglas
Sonia Creswell
January 2018
148 15 Jan 2018 Audit Management Report from 2016/2017 Annual Report: Update the Audit Management Action Points list to include the 2016/2017 recommendations.
Dean Phibbs March 2018
DRAFT RECOMMENDATION
That the report be received for information.
Page 8 Finance & Audit Committee
FINANCE AND AUDIT COMMITTEE
14 MARCH 2018
Agenda Item No 4
Prepared by - Wendy Thompson - Financial Accountant
Reviewed by - Dean Phibbs - Manager Corporate Services
FINANCIAL PERFORMANCE: 31 DECEMBER 2017_____________________________________________________________________
1. Report Summary :
To provide Council with a financial performance update for the six month period ending 31 December 2017.
2. Recommendation/draft resolution:
That this report be received for information and discussion.
3. Analysis and Discussion
3.1 Statement of Financial Performance
Operating Result Council has budgeted for a half yearly deficit of ($1,245,000). The actual result is a
deficit of ($1,598,000) which is an unfavourable difference of $353,000. Analysis of the half yearly result is detailed below.
Operating Revenue Overall operating revenue totals $10.5 million compared to a budget of $10.4
million. The significant variance items are within subsidies and grants revenue; being DWC Economic Development Fund $150,000 unbudgeted and NZTA subsidy $112,000 over budget. These are offset by Investment Revenue under budget by $69,000, timing of metered water consumption $58,000 under budget and a number of smaller variances.
Operating Expenditure Operating expenditure totals $12.1 million compared to a budget of $11.6
million. The total unfavourable variance is $500,000 and includes recognition of the book loss on Derivative Contracts of $183,000; which is directly related to market interest rate movements since 1 July 2017. Other significant variances are the DWC Economic Development Fund payments $150,000 unbudgeted and Westport Water electricity over budget $80,000.
3.2 Statement of Financial Position Net debt (being external debt less term deposits) has remained stable since the
end of the last financial year. However, debt is expected increase by the end of the
Page 9Finance & Audit Committee
financial year to fund some of Council’s significant capital projects including the Westport Water Supply tunnel repairs.
3.3 Cash Flow Statement Net operating cash flow of $2.3 million remains positive during the six months
to 31 December 2017. This was offset by fixed asset purchases of $2.1 million. Overall Council’s cash position increased by $0.3 million since 1 July 2017.
3.4 Dashboard – Operational Financial Performance Indicators
Rev
enue
Expe
nditu
re
Activity CommentDemocracy Property Amenities & Reserves Economic Development, Tourism & Museum Support
Community Services Regulatory Roading Solid Waste Support Wastewater Water Westport electricity and Punakaiki
maintenanceAirport
4.0 Dashboard - Non Financial Performance Measures
4.1 Background A well balanced reporting system will include both financial and non-financial
measures. Ideally non -performance reporting measures should provide information on key risk areas for Council to enable it to more effectively manage those risks.
The table of non- performance measures was developed to help monitor key risk areas of Council and to help monitor organisational efficiency within Council.
5.0 Considerations
5.1 Strategic impact The quarterly financial reports provide an overview of Council’s financial
performance and position during the financial year. This allows Council to monitor trends and evaluate progress against the strategies, financial budgets and service delivery adopted in the 2015/25 Long Term Plan and subsequent 2017/18 Annual Plan.
Page 10 Finance & Audit Committee
5.2 Significance assessment The Significance and Engagement policy sets out the criteria and framework for
a matter or transaction to be deemed significant. The content included in this report is not considered significant for the purpose of public consultation but is an important component of monitoring progress against the 2017/18 Annual Plan.
5.3 Values assessment The Buller District Councils values are: One Team; Community Driven; We Care;
Future Focussed; and Integrity.
A performance reporting system aligns most strongly with Integrity.
Public reporting of Council’s performance against budgets and key performance indicators encourages open and honest discussion and decision making.
5.4 Risk analysis Risk is assessed by taking into account the likelihood of an event occurring and
the result of that event.
Council prepares financial budgets to balance income and spending for each financial year. Budgets are based on the best information available at the time but subsequent financial performance will be affected by events outside Council’s control during the year. Regular monitoring of financial performance reduces the risk of financial pressure on Council because income and expenditure variances are identified early and mitigating actions can be put in place as required.
5.5 Policy / legal considerations The Local Government Act (2002) and associated regulation govern the activities
of Buller Council including preparation of Long Term and Annual Plans, financial prudence requirements and annual financial reporting.
The terms of reference of Finance and Audit Committee include monitoring financial performance to budgets.
5.6 Tangata whenua considerations Not applicable.
5.7 Views of those affected Council’s financial budgets are consulted on with the community during Long Term
and Annual Plan processes.
5.8 Costs Because this report is for information purposes it does not generate activity or any
associated costs.
5.9 Benefits The benefits of a quarterly financial reporting regime include early identification of
budget variances and intervention measures at a Council wide level.
5.10 Media / publicity There are no media or publicity opportunities with this report.
Page 11Finance & Audit Committee
STATEMENT OF COMPREHENSIVE REVENUE & EXPENSEFOR THE 6 MONTHS ENDED 31 DECEMBER 2017
ParentDec-17Actual
$000
Dec-17 Budget
$000
2017/2018Budget - Full Year
$000OPERATING REVENUEGeneral Rates 4,146 4,157 8,314Targeted Rates (excluding Metered Water) 2,750 2,759 5,517Metered Water Charges 44 102 204Rate Penalties 80 75 150Subsidies and Grants 1,619 1,345 4,442Dividend & Subvention Revenue 0 0 910Investment Revenue 249 318 636Development and Financial Contributions 17 53 105Fees & Charges 1,618 1,550 3,091Gain on Derivative Contracts 0 0 0Vested Assets 0 0 101Total Operating Revenue 10,523 10,359 23,470
OPERATING EXPENDITUREEmployee Costs 2,303 2,329 4,658Depreciation & Amortisation 2,737 2,731 5,462Finance Costs 487 558 1,115Other Expenses 6,410 5,987 11,499Assets Written Off 0 0 350Loss on Derivative Contracts 183 0 0Loss on Sale of Investment Property 1 0 0Total Operating Expenditure 12,121 11,604 23,084
Net Surplus (Deficit) Before Taxation (1,598) (1,245) 386 Income Tax Expense 0 0 0Net Surplus (Deficit) After Taxation (1,598) (1,245) 386
Other Comprehensive Revenue & ExpensesIncrease/(decrease) in Infrastructure Revaluation Reserves
0 0 0
Total Comprehensive Revenue and Expenses (1,598) (1,245) 386
Page 12 Finance & Audit Committee
STATEMENT OF CHANGES OF EQUITYFOR THE 6 MONTHS ENDED 31 DECEMBER 2017
ParentDec-16
7Actual$000
2017/2018Budget - Full Year
$000
Equity as at 1 July 318,476 325,979Total Comprehensive Revenue and Expense (1,598) 386 Total Equity at End of Period 316,878 326,365
Components of EquityAccumulated Funds 167,842 166,725Reserves 4,993 5,385 Asset Revaluation Reserve 144,043 154,255Total Equity at End of Period 316,878 326,365
Page 13Finance & Audit Committee
STATEMENT OF FINANCIAL POSITIONPERIOD ENDED 31 DECEMBER 2017
ParentDec-17Actual
$000
2016/2017Actual
$000
2017/2018Budget - Full Year
$000CURRENT ASSETSCash and cash equivalents 3,271 3,245 1,030Trade and other receivables 2,462 4,518 4,858Inventories 13 11 13Other current assets 22 35 35Short term investments 14,998 12,684 13,784Assets held for sale 161 161 0Total Current Assets 20,927 20,654 19,720
NON CURRENT ASSETSInvestment in council controlled organisations 19,645 19,576 20,035Other investments 494 2,753 0Investment property 7,632 7,687 7,568Infrastructural assets 275,667 276,324 294,822Other non current assets 21,096 21,170 19,595Intangible assets 75 106 50Total Non Current Assets 324,609 327,616 342,070Total Assets 345,536 348,270 361,790
CURRENT LIABILITIESTrade and other payables 1,786 3,018 3,982Derivative financial instruments 0 0 55Employee entitlements 533 580 451Provisions 35 35 0Current portion of term debt 36 8,510 107Total Current Liabilities 2,391 12,143 4,595
NON CURRENT LIABILITIESDerivative financial instruments 939 756 1,100Provisions 1,566 1,566 1,483Bond deposits 82 83 82Employee entitlements 246 246 140Term debt 23,434 15,000 28,025Total Non Current Liabilities 26,267 17,651 30,830
EQUITYAccumulated Funds 167,842 169,441 166,725Reserves 4,993 4,992 5,385Asset Revaluation Reserve 144,043 144,043 154,255Total Equity 316,878 318,476 326,365Total Liabilities & Equity 345,536 348,270 361,790
Page 14 Finance & Audit Committee
STATEMENT OF CASHFLOWSFOR PERIOD ENDED 31 DECEMBER 2017
ParentDec-17 Actual
$000
2017/2018Budget - Full Year
$000
CASHFLOWS FROM OPERATING ACTIVITIESCash was provided from:Rates 7,402 13,981Other revenue 3,656 7,532Interest received 266 636Dividends and subvention payments received 475 1,220
11,798 23,369Cash was applied to:Payments to suppliers and employers 9,126 17,227Interest paid 487 1,115Net GST movement (66) 0
9,546 18,342Net Cash From Operating Activities 2,251 5,027
CASHFLOWS FROM INVESTING ACTIVITIESCash was provided from:Sale of investment property 0 100Investment realised 7,865 0
7,681 100Cash was applied to:Purchase of fixed assets 2,110 7,225Purchase of investments 7,755 500Purchase of equity investments 0 35
9,865 7,760Net Cash From Investing Activities (2,185) (7,660)
CASHFLOWS FROM FINANCING ACTIVITIESCash was provided from:Loans raised 0 2,585
Cash was applied to:Repayment of loans 40 107Net Cash From Financing Activities (40) 2,478
Net Increase (Decrease) in Cash 26 (155)Opening Cash as at 1 July 3,245 1,185 Closing Cash as at 31 December 3,271 1,030
Page 15Finance & Audit Committee
NON-FINANCIAL REPORTING MEASURESFOR PERIOD ENDED 31 DECEMBER 2017
Ach
ieve
d /
N
ot A
chie
ved
Activity No. Measure Target CommentaryRegulatoryBuilding 1 Ensure quality
assurance requirements for building consent authorities are met as required by regulation 17 of the Building Consent Authorities Regulations 2006
Continue to retain accreditation by passing ANZ Audits
Audit completed and new Certificate of Accreditation has been received. Next accreditation audit due December 2019.
Resource Management
2 Process non-notified resource consents within statutory deadlines
100% of consents processede within statutory timeframes
100% Compliance. There have been 26 Resouce consents completed since 1 July 2017 (2017: Full year 60 consents).
Emergency Management
3 Maintain 3 teams of trained civil defence volunteers
30 trained volunteers (3 teams)
100 volunteers. Focus is on increased BDC staff and volunteer participation throughout the district.
Water SuppliesAll Water Supplies
4 Safety of drinking water
Meets 100% bacteria/ protozoa compliance criteria
Westport, Reefton & Inangahua Junction compliant. Punakaiki & other rural supplies non-compliant.
Westport Water
5 Maintenance/Renewal of water reticulation main
Number of shutdowns for Westport water trunkmain
Wastewater / SewerageAll Sewerage Systems
6 Provide adequate capacity by measuring how often does the sewer overflows
less than 5 dry weather sewage overflows from Councils sewerage system per 1,000 sewerage connections
1 recorded in September 2017 due to an issue within the property boundary.
StormwaterAll Stormwater Systems
7 Provide adequate capacity by measuring for each flood event the number of habitable floors affected.
No more than 5 houses inudated by stormwater flooding per event per 1,000 properties connected to Councils stormwater system
NIL houses.
Solid WasteSolid Waste (Litter)
8 Provide adequate capacity for the collection of litter
The number of extra litter bins empties by the contractor above that provided for in the contract with Council
377 bins (1st quarter 106 bins).
Page 16 Finance & Audit Committee
NON-FINANCIAL REPORTING MEASURESFOR PERIOD ENDED 31 DECEMBER 2017
Ach
ieve
d /
N
ot A
chie
ved
Activity No. Measure Target CommentarySupportHealth and Safety
9 To comply with Health and Safety policies and legislation by monitoring incidents and lost time due to work related accidents for Buller District Council and Buller Holding Subsidiaries
No incidences or lost time from work related accidents for Council and subsidiaries
377 bins (1st quarter 106 bins).
Health and Safety
10 To comply with Health and Safety policies and legislation
Setup systems, procedures and policies to comply with legislation (commentary on progress required)
Implemeting Vault software to manage, record and report on systems, policies & procedures and incidents.
Other Key AreasAll Activities 11 Commitment to
customer service as measured by the number of complaints or action required as measured by the number of service level requests outstanding in Council and subsidiaries
Number and type of service level requests outstanding for Council and Subsidiaries
Council currently has completed and closed 367 service requests between 1 July and 31 December 2017. At 31 December there were 190 outstanding requests for various reasons including ongoing monitoring.
Westport Airport Authority
12 Passenger numbers remain high enough to continue a viable air passenger service to and from Westport
Level of passengers does not drop below the level as stipulated in the contract between Council and the service provider
Required level of passengers achieved
Page 17Finance & Audit Committee
FINANCE AND AUDIT COMMITTEE
14 MARCH 2018
Agenda Item No 5
Prepared by - Wendy Thompson - Financial Accountant
Reviewed by - Lynn Brooks - Management Accountant
INVESTMENTS AND BORROWINGS: FEBRUARY 2018_____________________________________________________________________
REPORT SUMMARYThis report summarises Councils cash investments and borrowings for the month ended February 2018, interest earned for the period from 1 July 2017 to 28 February 2018 and policy compliance.
RECOMMENDATION/DRAFT RESOLUTIONThat the report be received for information.
ISSUES AND DISCUSSION
InvestmentsInvestments have decreased by $0.6 million in total from the last report circulated to the end of December 2017. This is mainly due to the effect of the rates billing cycle and monthly creditor payment obligations. The trading account closing balance is $1,469,700. This relatively high end of month balance is the result of rates instalment three falling due on 28 February.
Interest RevenueInterest revenue to the end of February 2018 is $678,734 compared to a budget of $667,144. Council will continue to reinvest term investment funds at the most favourable interest rate when deposits are up for renewal. There are often opportunities to take advantage of bank pricing differences to maximise returns even in time of low interest rates.
Borrowings and Net Debt PositionTotal borrowings have reduced gradually as the EECA loan is paid down, with a current balance of $23,450,000.
Net debt (borrowings less term investments) has increased to $6,651,805 from the $6,072,000 balance in October due to the movement in investments and the trading account balance.
Page 18 Finance & Audit Committee
Considerations
1. Strategic impact It is important that Council retains suitable cash holdings and credit facilities to
ensure its activities and capital projects are able to be funded in a timely and affordable manner.
2. Significance assessment The significance policy sets out the criteria and framework for a matter or transaction
to be deemed significant. The content included in this report is not considered significant because the matters disclosed are of a routine nature, and not large in terms of total assets and total annual operations of council.
3. Values assessment � The Buller District Councils values are: One Team; Community Driven; We Care; Future Focussed; and Integrity.
� Treasury management functions and reporting align most strongly with the values of Future Focussed and Integrity.
� Consideration of current and future cash requirements and intergenerational equity are required when managing cash deposits and credit facilities.
� Public reporting of investments and borrowings encourages open and honest discussion and decision making.
4. Risk analysis � Risk is assessed by taking into account the likelihood of an event occurring and
the result of that event. � Cash flow management is an integral part of ensuring Council is able to deliver the services and projects it has committed to in successive Long Term and Annual Plans.
� This risk is mitigated by establishing policies and procedures, engaging staff to manage investment and borrowings and regular reporting to Council to ensure high level oversight.
5. Policy / legal considerations � The Local Government Act (2002) and associated regulations prescribe prudent
financial management and nationwide benchmarks. The financial prudence benchmarks are now compulsory sections included in Council Long Term/Annual Plans and Annual Reports.
� Council’s Investment Policy and Treasury Policy govern the management of cash assets and borrowings.
6. Tangata whenua considerations None identified
7. Views of those affected Council’s financial strategies, investment levels and borrowing projections are
included in the Long Term Plan and Annual Plan consultation processes.
8. Costs There are no extraordinary costs relating to investments and borrowings.
9. Benefits The benefits of structured Treasury management include risk minimisation, prudent
cash management and long term financial stability.
10. Media / publicity None identified.
Page 19Finance & Audit Committee
INVESTMENTS AND BORROWINGS REPORT1. BANK BALANCE
This Month28 Feb-18
Last Month31 Jan-18
Last Year30 Jun-17
Council $1,469,689 $187,908 $585,661
2. MONTH END BANK BALANCE
-$200,000$0
$200,000$400,000$600,000$800,000
$1,000,000$1,200,000$1,400,000$1,600,000
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Month End Bank Balance
2015/16
2016/17
2017/18
3. SUMMARY OF INVESTMENTS
This Month28 Feb-18
Last Month31 Jan-18
Last Year30 Jun-17
Term Deposits 16,798,148 17,098,148 17,098,148Other Loans (includes loan to Holding Company)
2,464,277 2,487,923 2,537,348
Total Investments $19,262,425 $19,586,071 $19,635,496
4. SOURCE OF FUNDS
This Month28 Feb-18
Last Month31 Jan-18
Last Year30 Jun-17
Depreciation Funds 1,000,000 1,000,000 1,000,000West Coast Package (Govt subsidy for halt to logging)
2,829,551 2,829,551 2,829,551
Harbour (profit from past harbour operations)
1,979,092 1,979,092 1,979,092
Freeholding Proceeds (sale of leasehold land)
2,840,838 2,840,838 2,840,838
Capital Sponsorship (deposits from V2010 sponsors)
5,034,038 5,034,038 5,034,038
Reserves Contribution Funds 1,314,630 1,314,630 1,314,630Short Term Funds (rates income plus tds held pending debt reduction )
1,800,000 2,100,000 2,100,000
$16,798,148 $17,098,148 $17,098,148
Page 20 Finance & Audit Committee
5. INVESTMENTS PORTFOLIO PERFORMANCE (12 Month Average)
3.69%
2.06%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Actual Benchmark
Investments Portfolio Performance (12 Month Average)
6. INTEREST REVENUEActual
YTDBudget
YTDBudget
Full YearInterest Revenue $678,734 $667,144 $1,220,715
7. COMPLIANCE WITH INVESTMENT POLICY
All term deposits are held with New Zealand Registered banks with no more than $10 million with any one institution. The terms and maturity dates of investments are spread to minimise Council’s exposure to interest rate fluctuations while still aiming to optimise interest earned.
Council has approved the investment in NBS which sees us in breach of the Treasury Management Policy. This breach will continue as investments mature and are rolled over.
8. SUMMARY OF BORROWINGSThis Month
28 Feb-18Last Month
31 Jan-18Last Year30 Jun-17
External Debt:Westpac Loan Facility 3,433,860 3,433,860 3,433,860LGFA Loan Facility 20,000,000 20,000,000 20,000,000EECA Loan 16,093 35,989 66,241
$23,449,953 $23,469,849 $23,500,101Weighted Average Interest Cost 4.00% 4.00% 4.60%
Net Debt:Total Borrowings 23,449,953 23,469,849 23,500,101Less: Term Deposits 16,798,148 17,098,148 17,098,148
$6,651,805 $6,371,701 $6,401,953
Page 21Finance & Audit Committee
9. DEBT AND INVESTMENTS 3-YEAR TREND
$5
$7
$9
$11
$13
$15
$17
$19
$21
$23
$25
Mar/15
Jun/15
Sep/15
Dec/15
Mar/16
Jun/16
Sep/16
Dec/16
Mar/17
Jun/17
Sep/17
Dec/17
$ MillionsDebt and Investments: Three Year Trend
Debt
Term Deposits
Net Debt
10. COMPLIANCE WITH TREASURY POLICY
10.1 Interest Expense / Total Income
4.6%
10.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Actual Limit
Interest Expense / Total Income
10.2 Gross Debt / Total Income
0.95
2.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Actual Limit
Debt / Total Income
Page 22 Finance & Audit Committee
10.3 Gross Debt per Rateable Property
$3,120
$5,500
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Actual Limit
Debt Per Rateable Property
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Total Debt
10.4 Fixed Rate Debt - Compliance with Treasury Policy
-
5
10
15
20
25
Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22 Mar/23 Mar/24 Mar/25 Mar/26 Mar/27
$ Millions
Maximum Fixed Rate Minimum
Current borrowings are in compliance with the limits specified in Council's Treasury Policy.
Investments are in breach of Councils Treasury Management Policy in respect that there is more than 10% of the portfolio invested in a Building Society. Council ratified this breach via resolution to obtain ongoing sponsorship proceeds for the NBS Theatre.
Page 23Finance & Audit Committee
FINANCE AND AUDIT COMMITTEE
14 MARCH 2018
Agenda Item No 6
Prepared by - Lynn Brooks - Management Accountant
Reveiwed by - Dean Phibbs - Manager Corporate Services
CAPITAL INCOME AND CAPITAL EXPENDITURE REPORT_____________________________________________________________________
1. REPORT SUMMARY
This report presents a high level overview of the annual budget and projected end of year totals for capital income and capital expenditure. This report is presented for information and monitoring purposes.
The following (two) extract pages provide further detail of the capital income and expenditure for the year to date.
There are not any issues that require a decision Council to progress the collection of capital income or utilisation of capital expenditure processes which are underway and ongoing by Council staff.
2. RECOMMENDATION/DRAFT RESOLUTION
That the report is accepted for information purposes.
3. ISSUES & DISCUSSION
This report is presented to Council to monitor capital income and expenditure movements.
Council requires a high level overview of the capital works progress of Buller District
Council. This information, when taken in conjunction with all other aspects of the financial results provides a full view of the financial performance and financial position of Buller District Council at 31 December 2017.
3.1 Capital Income
Community Services capital funding includes the NBS sponsorship agreement which is in place until March 2019 and the Pulse Energy Recreation Centre sponsorship agreements which are in place until April 2022.
The Roading and Urban Development program involves negotiation with NZTA for agreed works programmes and associated subsidies. The budget of $1.16m as set in the Buller District Council Annual Plan has a variance with NZTA’s funding budget because it is expected BDC will receive $274k additional funding if all the capital works are completed by year end. This additional funding offsets the funding variances in the prior two years which saw less NZTA funding received
Page 24 Finance & Audit Committee
than budgeted for. The timing of NZTA income received correlates to the capital expenditure incurred which is generally completed during February to April when weather conditions are more favourable for this type of activity, so we expect to see the largest portion of work being completed in the summer months and into the later part of the financial year.
The Water project for Waimangaroa has been held up while an appropriate bore site option is decided. The approved subsidy for this project will be available for drawdown once the scheme is completed which may fall into the next financial year. The Ngakawau Hector drinking water project and subsidy income has not progressed as planned and receipt of capital funding for this project has not been budgeted for.
Property, Amenities and Reserves includes a budget of $200,000 Government funding for the Fox River Toilets. The actual subsidy to be received is expected to be $255,160.
3.2 Capital Expenditure
Airport capital expenditure is over budget due to the purchase of a mower which was unbudgeted. It is expected the costs will be somewhat offset by lower mower maintenance costs for the remainder of the year.
Community Services expenditure includes library books, library furniture and NBS theatre equipment. It is expected the expenditure will meet budget.
Environmental Services expenditure includes two items which are unbudgeted, including some necessary communication assets for Civil Defence.
Property, Amenities and Reserves expenditure includes budgets for the Punakaiki Community Centre, cemetaries, new public toilets at Fox River, $70,000 for the sea wall at Punakaiki Beach Camp and sundry capital for Council buildings. Of these, it is expected $100,000 may not be required for Punakaiki Community Centre as there is further planning and community input required before this project proceeds. There is also $80,000 that will be incurred for the Clocktower. The two public toilets are expected to cost more than budget, however this is offset in full by a subsidy being received.
Water projects are closely monitored. It is expected the Westport water supply tunnel repairs will be completed by the first quarter of 2018/2019 financial year, so we have indicated the deferral of $2.6m of budgeted expenditure in the attached schedule. It is also expected that the Waimangaroa water supply will not progress until later in the year, therefore the associated costs and income have been deferred until the next financial year.
4. CONSIDERATIONS
4.1. Strategic impact
The capital income & capital expenditure report provides an overview on the provision of capital expenditure projects and helps readers to understand if Councils’ strategic position taken in the last long term plan (where it was agreed to minimise rates increases and limit capital expenditure to those assets that could be used as a springboard for District economic growth) is being met.
The provision of capital projects within timeframes and approved budgets provides
Page 25Finance & Audit Committee
a measure against this core strategic priority and its probable long term impact on our community.
4.2. Significance assessment
The significance and engagement policy sets out the criteria and framework for a matter or transaction to be deemed significant. The content included in this report is not considered significant by nature as value as Council’s capital program is integral to service provision.
4.3. Risk analysis
Risk is assessed by taking into account the likelihood of an event occurring and the result of that event.
Capital projects are perceived to have some greater than usual potential to place council at risk as the funds involved are usually significant. The project may be an irregular or unusual kind, therefore the costings may need to be revised as the work progresses. The scale of capital projects may result in project delays which result on Council not delivering the assets or services as envisioned in Long Term or Annual Plans.
This risk is mitigated by engaging staff to monitor and regularly report on the projects therefore acting on any issues that arise early on, and to ensure project progress is well understood by staff and governance.
4.4. Policy / legal considerations
The Local Government Act 2002 governs the activities of Buller District Council and sets out the requirement for consulting on the annual plan and long term plan to agree the budget and the key performance indicators with the community.
This report assists with two key purposes of that act (located at section 3) stating the purpose of the act is to promote the accountability of local authorities to their communities, and provide for local authorities to play a broad role in meeting the current and future needs of their communities for good-quality local infrastructure, local public services, and performance of regulatory functions.
4.5. Values The Buller District Council values are: we care, integrity, one team, community
driven and future focussed. This report aligns with those values as it presents information about the capital projects for our community.
4.6 Tangata whenua consultation considerations
The contents of the report are not a matter requiring consultation with Tangata whenua.
4.7 Views of those affected
Council’s capital projects are consulted on with the community during Long Term and Annual Plan processes.
4.8 Costs
There are no extraordinary costs for the capital projects predicted at this stage of
Page 26 Finance & Audit Committee
the financial year. The amounts which may need to be carried forward to the next financial year are identified so they can be included in the next annual plan budget.
4.9 Benefits
The benefits of reviewing the capital income and expenditure periodically are the capital projects and their funding are monitored at a Council wide level.
4.10 Media / publicity
There are no media or publicity opportunities with this report.
Page 27Finance & Audit Committee
Activ
ityBU
DGET
Sign
ifica
nt V
aria
nce
Det
ails
Cont
ribut
ions
Re
ceiv
edTo
tal
Proj
ecte
dPr
ojec
ted
Varia
nce
Proj
ect
Tim
elin
esFu
ndin
g So
urce
sTo
tal V
aria
nce
over
/(un
der)
over
/(un
der)
Pro
mo
tio
n &
Develo
pm
en
t0
00
00
0
Co
mm
un
ity S
erv
ices
NBS
Thea
tre
34,7
000
34,7
0034
,700
00
Spon
sors
hip
agre
emen
ts in
pla
ce co
ntin
ue to
Mar
ch
2019
Pulse
Ene
rgy
Recr
eatio
n Ce
ntre
400,
000
200,
000
200,
000
400,
000
00
Spon
sors
hip
agre
emen
ts in
pla
ce co
ntin
ue to
Apr
il 20
22.
En
vir
on
men
tal
Serv
ices
00
00
00
Pro
pert
y,
Am
en
itie
s &
Reserv
es
200,
000
025
5,16
00
55,1
6055
,160
55,1
60Bu
dget
ed to
rece
ive
grea
ter t
han
expe
cted
Gov
ernm
ent
Subs
idy
for N
orth
Bea
ch a
nd F
ox R
iver
toile
ts.
Air
po
rt0
00
00
0
Ro
ad
ing
& U
rban
Develo
pm
en
tNZ
TA re
vise
d ca
pita
l inc
ome
budg
et is
$1,
429,
134
NZ
Tra
nsport
Agency -
Capital F
undin
g1,
155,
033
125,
997
1,02
9,03
61,
155,
033
00
0Va
riatio
n of
$27
4,10
1 (e
xtra
fun
ding
)may
be
rece
ived
at
end
of y
ear d
ue to
NZT
A ap
prov
ed C
apita
l Ex
pend
iture
if a
ll pr
ojec
ts a
re co
mpl
eted
. The
capi
tal
prog
ram
is u
sual
ly co
mm
ence
d la
ter i
n th
e fin
ancia
l ye
ar a
s wea
ther
cond
ition
s for
thes
e p
roje
cts i
s mor
e su
itabl
e fro
m su
mm
er o
nwar
d th
eref
ore
the
maj
ority
of
cont
ribut
ions
are
rece
ived
in th
e la
st h
alf o
f the
yea
r.
So
lid
Waste
00
00
00
Wate
r
Ngak
awau
Hec
tor D
WS
Subs
idy
00
00
00
0Pr
ojec
t del
ayed
.W
aim
anga
roa
DWS
Subs
idy
402,
638
00
0(4
02,6
38)
(402
,638
)(4
02,6
38)A
wai
ting
wat
er b
ore
site
conf
irmat
ion.
Fun
ding
unl
ikel
y to
be
draw
n do
wn
by e
nd o
f yea
r 201
8.
Waste
wate
r0
00
00
0
Su
pp
ort
00
00
00
TO
TA
L2,
192,
371
325,
997
1,51
8,89
61,
589,
733
(347
,478
)(4
02,6
38)
55,1
60(3
47,4
78)
BULL
ER D
ISTR
ICT
COUN
CIL
Capi
tal P
roje
cts E
xter
nal C
ontr
ibut
ions
Inco
me
Proj
ectio
n fo
r the
Yea
r End
ed 3
0 Ju
ne 2
018
(Act
ual t
o 30
Dec
embe
r 201
7, Fo
reca
st f
or Ja
nuar
y 20
18 t
o Ju
ne 2
018)
INCO
ME
- EXT
ERNA
L CON
TRIB
UTIO
NSVA
RIAN
CE A
NALY
SIS
Furt
her
Cont
ribut
ions
Ex
pect
ed to
30
June
201
8
Page 28 Finance & Audit Committee
SIG
NIF
ICA
NT
VA
RIA
NC
E D
ET
AIL
S
Ca
rry O
ver
fro
m
2016/1
7
Bu
dg
et
Set
for
2017/1
8
Co
mb
ined
Bu
dg
et
an
d
Ca
rry O
ver
for
2017/1
8
Less B
ud
get
Pro
vis
ion
No
w
No
t R
eq
uir
ed
Fin
al B
ud
get
Fo
r 2017/1
8
2016/1
7 W
ork
In
Pro
gre
ss
Ca
rrie
d
Fo
rwa
rd
2017/1
8
Pro
jecte
d
Exp
en
dit
ure
To
tal P
roje
cte
d
Exp
en
dit
ure
an
d
Wo
rk in
Pro
gre
ss
for
2017/1
8
Pro
jecte
d B
ud
get
Un
der
Sp
en
d
Pro
jecte
d B
ud
get
Over
Sp
en
d
Un
bu
dg
ete
d
Exp
en
dit
ure
Pro
jects
to
Reb
ud
get
or
Ca
rry O
ver
into
2018/1
9
TO
TA
L
VA
RIA
NC
E
over
bu
dg
et
(un
der)
bu
dg
et
Air
po
rt0
5,0
00
5,0
00
05,0
00
018,0
12
18,0
12
00
13,0
12
013,0
12
Co
mm
un
ity S
erv
ices
253,2
94
221,8
34
475,1
28
0475,1
28
60,8
68
414,2
60
475,1
28
00
00
0
En
vir
on
men
tal S
erv
ices
038,9
11
38,9
11
038,9
11
038,9
11
43,2
52
00
4,3
41
04,3
41
Pro
pert
y, A
men
itie
s &
Reserv
es
145,9
60
599,6
67
745,6
27
0745,6
27
11,4
56
634,1
71
620,7
87
(180,0
00)
55,1
60
00
(124,8
40)
Ro
ad
ing
& U
rba
n D
evelo
pm
en
t116,7
21
1,8
36,9
22
1,9
53,6
43
01,9
53,6
43
01,9
39,1
38
1,9
39,1
38
(14,5
05)
00
0(1
4,5
05)
So
lid
Wa
ste
0137,9
00
137,9
00
0137,9
00
0137,9
00
137,9
00
00
00
0
Wa
ter
668,4
70
3,3
91,6
84
4,0
60,1
54
04,0
60,1
54
161,5
73
1,2
98,5
81
986,4
62
(3,0
73,6
92)
00
(3,0
73,6
92)
(3,0
73,6
92)
Wa
ste
wa
ter
247,4
19
615,5
57
862,9
76
0862,9
76
924
862,0
52
862,9
76
00
00
0
Sto
rmw
ate
r0
205,0
08
205,0
08
0205,0
08
0205,0
08
205,0
08
00
00
0
Pro
fessio
na
l B
usin
ess U
nit
05,0
04
5,0
04
05,0
04
00
5,0
04
00
00
0
Su
pp
ort
284,6
36
167,8
25
452,4
61
0452,4
61
74,5
33
377,9
28
452,4
61
00
00
0
To
tal B
uller
Dis
tric
t C
ou
ncil
1,7
16,5
00
7,2
25,3
12
8,9
41,8
12
08,9
41,8
12
309,3
54
5,9
25,9
61
5,7
46,1
28
(3,2
68,1
97)
55,1
60
17,3
53
(3,0
73,6
92)
(3,1
95,6
84)
BU
LL
ER
DIS
TR
ICT
CO
UN
CIL
Cap
ital
Exp
en
dit
ure
Pro
jecti
on
fo
r th
e Y
ear
En
ded
30 J
un
e 2
018
(Ac
tua
l to
Se
pte
mb
er
20
17
, F
ore
ca
st
fro
m O
cto
be
r 2
01
7
to J
un
e 2
01
8 )
BU
DG
ET
EX
PE
ND
ITU
RE
VA
RIA
NC
E A
NA
LY
SIS
Pro
jec
ted
Sp
en
d:
$5
,00
0 B
ud
ge
t fo
r p
lan
t. B
ud
ge
ted
sp
en
din
g t
o d
ate
is
sig
ns
an
d
a g
as
op
era
ted
bir
d s
ca
rer.
U
nb
ud
ge
ted
exp
en
ditu
re r
ide
on
mo
we
r re
qu
ire
d
rep
lace
me
nt
(Mo
we
r C
ost
$1
6,8
02
).
Ca
rry O
ve
r fr
om
20
16
/17
in
clu
de
s: U
rba
n S
tre
ets
ca
pe
(S
ea
l L
oo
p S
ign
s) $
12
5,0
00
a
nd
Vis
ion
20
10
Pro
jects
be
ing
In
an
ga
hu
a f
un
din
g $
34,9
89
an
d S
ed
do
n f
un
din
g
$9
3,3
05
.
Wo
rk i
n P
rog
res
s i
nc
lud
es
: $
2,0
93
on
re
po
rt f
or
wo
rk r
eq
uir
ed
to
Re
eft
on
Po
ol a
nd
$5
8,7
75
on
th
e U
rba
n S
tre
ets
ca
pe
(S
ea
l L
oo
p S
ign
s).
P
roje
cte
d
sp
en
d:
Th
is c
ap
ita
l e
xpe
nd
itu
re c
ate
go
ry in
clu
de
s lib
rary
bo
oks,
lib
rary
fu
rnitu
re a
nd
N
BS
th
ea
tre
eq
uip
me
nt
an
d it
is n
ot
exp
ecte
d t
ha
t th
ese
ite
ms
will
be
ove
rsp
en
t b
y th
e y
ea
r e
nd
.
Se
dd
on
Wa
rd 2
01
0 u
rba
n d
esi
gn
fu
nd
ing
($
93
,30
5)
ma
y n
ot
be
sp
en
t b
y ye
ar
en
d.
Ina
ng
ah
ua
Wa
rd 2
01
0 R
ee
fto
n B
roa
dw
ay
urb
an
de
sig
n f
un
din
g
($2
6,5
59
) co
ntin
ue
s.
Th
e D
istr
ict
Sig
na
ge
pro
ject
ha
s b
ee
n c
om
ple
ted
$3
5,9
86
u
nd
er
bu
dg
et.
We
stp
ort
urb
an
de
sig
n 7
Da
y M
ake
ove
r p
roje
ct
co
sts
are
cu
rre
ntly
be
ing
an
aly
sed
.
Un
bd
ug
ete
d E
xp
en
dit
ure
: to
pu
rch
ase
bo
dy
ca
me
ras
for
the
An
ima
l C
on
tro
l O
ffic
ers
($
1,8
62
) a
nd
Civ
il D
efe
nce
Ra
dio
se
ts (
$2
,47
9).
Ca
rry O
ve
r fr
om
20
16
/17
in
clu
de
s:
$2
5,6
20
ga
rde
n/p
layg
rou
nd
wo
rks,
$1
00
,00
0
Pu
na
ka
iki C
om
mu
nity
Ce
ntr
e,
$2
0,3
40
Vic
tori
a S
qu
are
ca
pita
l w
ork
no
t co
mp
lete
d
at
yea
r e
nd
. W
ork
in
Pro
gre
ss in
clu
de
s: $
4,7
77
sp
en
t o
n P
un
aka
iki C
om
mu
nity
Ce
ntr
e,
$5
,00
0 o
the
r la
nd
an
d $
1,6
79
on
Pe
el S
tre
et Y
ard
.
Un
de
rsp
en
d:
Pu
na
ka
iki C
om
mu
nity
Ce
ntr
e $
10
0,0
00
un
like
ly t
o p
rog
ress
an
d b
e s
pe
nt
by
yea
r e
nd
an
d C
lockto
we
r p
roje
ct
no
t u
nd
ert
ake
n.
Est
ima
ted
ove
rsp
en
d $
55
,16
0 o
n b
oth
F
ox
an
d N
ort
h B
ea
ch
to
ilets
ho
we
ver
this
is
off
set
by
un
bu
dg
ete
d c
ap
ita
l in
co
me
of
$5
5,1
60
.
Ca
rry O
ve
rs f
rom
20
16
/17
: F
oo
tpa
ths
$8
4,7
91
an
d P
alm
ers
ton
Str
ee
t
Ca
me
ras+
fla
gs+
ligh
ts $
31
,93
0.
It
is e
xpe
cte
d t
ha
t th
e r
oa
din
g p
rog
ram
me
will
be
co
mp
lete
d a
s b
ud
ge
ted
fo
r a
t ye
ar
en
d.
Re
pla
ce
me
nt b
an
ne
rs a
nd
fla
gs
ha
ve b
ee
n
co
mp
lete
d $
14
,50
5 u
nd
er
bu
dg
et.
Bu
dg
et
is f
or
litte
r b
ins.
Ca
rry O
ve
rs 2
01
6/1
7:
We
stp
ort
wa
ter
sup
ply
$4
7,2
71
an
d W
est
po
rt N
um
be
r 1
Tu
nn
el b
racin
g $
62
1,1
99
. W
ork
in
Pro
gre
ss
in
clu
de
s:
We
stp
ort
wa
ter
sup
ply
$5
,47
3 a
nd
$1
31
,99
5 t
un
ne
l b
racin
g c
ost
s.
Pro
jec
t U
nd
ers
pe
nd
: in
clu
de
s a
n
est
ima
ted
$2
.6m
fo
r th
e W
est
po
rt T
un
ne
l b
racin
g w
hic
h a
fte
r d
iscu
ssio
n w
ith
3
Wa
ters
te
am
is
exp
ecte
d t
o b
e c
om
ple
ted
in
th
e f
irst
qu
art
er
of
20
18
/20
19
ye
ar.
T
his
als
o in
clu
de
s $
47
3,6
92
fo
r W
aim
an
ga
roa
wh
ich
is
no
t e
xpe
cte
d t
o b
e s
pe
nt
by
en
d o
f ye
ar
an
d w
ill c
arr
y o
ver
to n
ext
ye
ar.
Ca
rry O
ve
rs 2
01
6/1
7:
Se
we
r m
od
elli
ng
an
d s
ep
ara
tio
n f
or
We
stp
ort
Se
we
r a
nd
ca
pita
l w
ork
s fo
r R
ee
fto
n S
ew
er.
W
ork
in
Pro
gre
ss
in
clu
de
s:
sew
er
mo
de
llin
g a
nd
sep
ara
tio
n f
or
We
stp
ort
Se
we
r.
En
d o
f Y
ea
r: t
he
ro
utin
e c
ap
ita
l w
ork
s a
re b
ein
g
me
t h
ow
eve
r th
e s
ign
ific
an
t ca
pita
l w
ork
s m
ay
be
at
risk
of
no
t m
ee
tin
g s
ch
ed
ule
as
the
de
sig
n w
ork
ha
s n
ot
yet
be
en
co
mp
lete
d.
Th
ere
are
no
ca
rry
ove
rs o
r W
ork
in
Pro
gre
ss.
It is
exp
ecte
d t
he
bu
dg
et
will
be
fu
lly
spe
nt
at
yea
r e
nd
.
Bu
dg
et
is f
or
soft
wa
re.
Ca
rry O
ve
r 2
01
6/1
7 i
nc
lud
es
: M
AG
IQ s
yste
m m
od
ule
s $
19
,34
1,
GIS
sys
tem
$
11
,88
0,
Info
rma
tio
n M
an
ag
em
en
t co
sts
$1
51
,87
6,
We
bsi
te c
ost
s $
10
,00
0,
Sys
tem
s a
nd
ne
two
rk $
19
,78
9,
Te
lep
ho
ny
$7
0,0
00
an
d m
ob
ile p
ho
ne
s $
1,7
50
.
Wo
rk i
n P
rog
res
s i
nc
lud
es
: $
8,7
25
MA
GIQ
sys
tem
mo
du
les,
$1
5,0
28
In
form
atio
n
Ma
na
gm
en
t, $
3,2
71
ne
two
rk u
pg
rad
es,
$4
6,4
24
te
lep
ho
ny
pro
ject
(co
mb
ine
d w
ith
o
the
r W
est
Co
ast
Co
un
cils
) a
nd
$1
08
5 P
ub
lic W
IFI.
At
this
po
int
in t
he
ye
ar
it is
no
t co
nsi
de
red
th
ere
will
be
an
y p
roje
ct
ove
r-ru
ns
or
un
de
rsp
en
ds.
We
aw
ait m
ore
in
form
atio
n o
n t
he
In
form
atio
n M
an
ag
em
en
t p
roje
ct
wh
ich
ma
y b
e d
ela
yed
- b
ett
er
info
rma
tio
n o
n t
his
pro
ject
sho
uld
be
kn
ow
n n
ext
qua
rte
r.
Page 29Finance & Audit Committee
FINANCE AND AUDIT COMMITTEE
14 MARCH 2018
Agenda Item No 7
Prepared by - Lynn Brooks - Management Accountant
Reveiwed by - Dean Phibbs - Manager Corporate Services
DEBT RECOVERY REPORT_____________________________________________________________________
1. REPORT SUMMARY
This report presents and classifies the outstanding balances of rates and sundry debtors as at December for monitoring and information purposes.
There are not any customers with arrears that require a decision of Council to progress the debt recovery processes which are underway and continuous.
2. RECOMMENDATION/DRAFT RESOLUTION
The recommendation is this report be accepted for information purposes.
3. ISSUES AND DISCUSSION
This report is presented to provide monitoring information on debt trends for Council.
Council requires a high level overview of the debt owed to Buller District Council. This information, when taken in conjunction with all other aspects of the financial results provides a full view of the financial performance and financial position of Buller District Council at 31 December 2017.
Rates debt follows an expected pattern whereby every third month, when the rates are accrued the rate debt increases, then it decreases for the following two months. The total rates debt at December 2017 is slightly lower compared to December 2016. Comparing the amount of serious default as a proportion of total debt at December 2017 to December 2015 and 2016, this has reduced. Rates debt has decreased over the total timeframe reported in the graph.
Looking into the detail further, the “long term serious monitored” (which is the red category in the graph) is showing downward movement in the past three months. The trend was that this category was growing slightly over time, but this has been curbed . We are closely monitoring the debt trends and applied many different approaches to combat current debt so that it does not reach the long term and at external debt collection stage as well as worked closely on target cases. The use of Facebook and text messaging continues to provide some positive results.
Sundry Debtors decline over the timeframe shown in the graph. The serious default category indicated in red in the graph is due to non-payment of leasehold property.
Page 30 Finance & Audit Committee
This continues to be an area of focus and increasing collection measures. Arrears overall are lesser during the nine month period to September 2017 compared to the last two prior years. This can be attributed to one significant sponsorship debtor being transferred to Councils’ CCO as direct sponsorship, and some greater debt collection measures in place.
4. CONSIDERATIONS
4.1 Strategic impact The debt recovery report provides feedback on the effectiveness of the strategic
direction of Council and the interaction between Council and our District economy. .
In the last long term plan it was agreed to minimise rates increases and limit new services or assets to only those that could be used as a springboard for District economic growth.
The change in Council customers’ debt levels and their classification provide a measure against this core strategic priority and provides an overview of its impact on our community.
This report also assists with understanding the current local economic climate along with the impacts of Council charges, and the community ability and willingness to meet those charges.
4.2 Significance assessment The Significance and Engagement Policy is written in accordance with The Local
Government Act 2002 (LGA 2002) section 76AA. This part of the Act sets the general approach to determine if a proposal or decision is significant requiring the Council to make judgements about the likely impact of that proposal or decision on:
a) The District; b) The persons who are likely to be particularly affected by, or interested in, the
proposal or decision; c) The financial impact of the proposal or decision on the Council’s overall
resources; and d) The capacity of, the Council to perform its role and carry out its activities, now
and in the future.
The Significance and Engagement Policy sets out the criteria and framework for a matter or transaction to be deemed significant. The content included in this report is not considered significant because the matters disclosed are of a routine nature, and not large in terms of total assets and total annual operations of Council.
4.3 Risk analysis Risk is assessed by taking into account the likelihood of an event occurring and
the result of that event.
When credit is extended by Council a risk arises that the amounts owing are not recovered when due, or that over time total debt owing grows to an unsustainable level and puts pressure on cash flow.
This risk is mitigated by engaging staff to monitor and recover debt therefore acting on indebtedness early on which yields better results, and regular reporting to Council to ensure oversight.
Page 31Finance & Audit Committee
4.4 Values The Buller District Values are: Integrity, Future Focussed, Community Driven, One
Team and We Care. Monitoring debt and undertaking debt collection processes most closely aligns to the values of integrity and future focussed.
4.5 Policy/legal considerations The collection of rates debt is enforceable under the Local Government (Rating)
Act 2002. Other legislation dealing with credit extended by Council and debt recovery include the Property Law Act 2007, Residential Tenancies Act 1986 and the Resource Management Act 1991. The Financial Delegations Policy, Treasury Management Policy and Rates Remission Policies also apply to the collection of Council debt.
4.6 Tangata whenua consultation considerations The contents of the report are not a matter requiring consultation with tangata
whenua.
4.7 View of those affected It is equitable for all our ratepayers, the public and individual debtors that all
amounts outstanding should be collected through consistent processes.
4.8 Costs There are no extraordinary costs for debt recovery and the costs for continuing
debt recovery are included in the annual plan budget.
4.9 Benefits The benefits to collection of debt is the cash flow of Council is maintained. There is
also fairness and equity for all ratepayers and service consumers in that everyone is paying their portion of the cost.
4.10 Media/publicity There are no media or publicity opportunities with the content of this report.
Page 32 Finance & Audit Committee
Rate
s Acc
ount
s - D
ebt R
ecov
ery R
epor
t
Repo
rt cu
toff
date
31 D
ecem
ber 2
017
Last
rate
s ins
talm
ent d
ue d
ate
28 N
ovem
ber 2
017
Next
rate
s ins
talm
ent d
ue d
ate
28 Fe
brua
ry 2
018
Inte
rnal
Deb
t Rec
over
y Ana
lysis
Stat
us
Flag
Cate
gory
No. o
f R
atep
ayer
sTo
tal A
rrear
sBa
lanc
e YT
DCu
rrent
Yea
rAr
rear
sFo
rmal
Revi
ewTo De
bt
Agen
cy
Title
Se
arch
Mon
itor
Prog
ress
Furth
er
Lette
rCo
ntin
ue
Sale
Pr
oces
s
Com
men
t
Plac
ed w
ith E
xter
nal D
ebt C
olle
ctio
n32
213,
260
36,3
2017
6,94
027
%√
Arre
ars p
lace
d w
ith C
redi
t Rec
over
ies.
Refe
r to
the
anal
ysis
belo
w.
No cu
rren
t mai
ling
addr
ess
21,
260
560
700
0%√
Sent
to d
ebt c
olle
ctio
n fo
r tr
acin
g, a
lso tr
acin
g so
me
thro
ugh
bank
dep
osits
& so
cial m
edia
.
Appr
oach
Mor
tgag
ee20
51,1
5022
,075
29,0
754%
348
,625
Rate
paye
rs w
ith m
ortg
ages
are
pur
sued
for p
aym
ent
unde
r the
Rat
ing
Act,
colle
ctin
g pr
ior y
ear a
rrea
rs.
Awai
ting
Decis
ion
2386
,419
30,1
4356
,276
9%1
3,16
5√
√M
ore
com
plica
ted
case
s, ie
hou
se u
ninh
abita
ble
/ pr
oper
ty o
n m
arke
t etc
requ
ire cl
ose
mon
itorin
g.
Miss
ed m
ore
than
two
inst
alm
ents
2351
,760
25,2
5726
,503
4%√
Revi
ewin
g fo
r pos
sibili
ty o
f Mor
tgag
ee A
ctio
n.
Unde
r Act
ion
- Sho
rt T
erm
Mon
itore
d43
108,
462
45,5
0362
,959
10%
√√
Revi
ewed
syst
emat
ically
with
eac
h ra
tepa
yer.
Paym
ents
Insu
fficie
nt37
32,3
6626
,067
6,29
91%
13,
800
√√
Revi
ewed
syst
emat
ically
. W
ork
thro
ugh
optio
ns to
incr
ease
pay
men
ts/r
esol
ve d
ebt.
Long
Ter
m M
onito
red
5010
5,85
853
,360
52,4
988%
√Fi
nanc
ial h
ards
hip,
pay
ing
min
imum
am
ount
s. Re
view
ed 6
mon
thly
(Aug
/Feb
), m
ore
frequ
ently
if in
de
cline
.
No P
aym
ents
- Pr
oper
ty o
n M
arke
t1
6,50
71,
977
4,53
01%
√An
nual
Rev
iew
.
Miss
ed A
ugus
t 201
7 &
Nov
embe
r 201
7 in
stal
s95
95,6
7883
,461
12,2
172%
√Le
tters
sent
- m
onito
ring.
Miss
ed o
ne in
stal
men
t onl
y14
158
,375
58,3
750
0%√
Lette
rs se
nt -
mon
itorin
g.
Paym
ent p
lans
24
520
,591
13,9
406,
651
1%1
1,63
3√
Revi
ewed
ann
ually
and
upd
ated
as r
equi
red.
Aban
done
d La
nd T
ende
r Pro
ject
6825
3,05
630
,113
222,
943
34%
√Ab
ando
ned
Land
tend
er p
roce
ss p
rogr
essin
g.
Tota
ls78
01,
084,
742
427,
151
657,
591
100%
657
,222
Exte
rnal
Deb
t Rec
over
y Ana
lysis
(refe
r Not
e 1
& N
ote
2)
Stat
us
Flag
Cate
gory
No o
f R
atep
ayer
sBa
lanc
e
Lega
l8
84,0
00
Unab
le to
trac
e ra
tepa
yer
(No
know
n ad
dres
s)8
46,5
10
Activ
e - n
o ar
rang
emen
t3
11,0
00
Paym
ent P
lans
1353
,000
Aban
done
d La
nd1
3,65
5
Tota
ls33
198,
165
Note
2
Note
1
Furth
er A
ctio
n to
Com
men
ceLe
aseh
old
Arre
ars
No.
$Pr
evio
us Y
ears
Arre
ars
$
%
BDC
repo
rtin
g in
clude
s all
arre
ars i
nclu
ding
curr
ent r
ate
inst
alm
ents
and
pen
altie
s, ho
wev
er
Cred
it Re
cove
ries b
alan
ces o
nly
inclu
de re
mai
ning
bal
ance
of a
hist
orica
l deb
t.
Tim
ing
diffe
renc
es e
xist b
etw
een
acco
unt t
otal
s as p
aym
ents
rece
ived
by
Cred
it Re
cove
ries
are
upda
ted
and
proc
esse
d by
Cou
ncil
mon
thly
.
0200
400
600
800
1,00
0
1,20
0
1,40
0
1,60
0
010
0,00
020
0,00
030
0,00
040
0,00
050
0,00
060
0,00
070
0,00
080
0,00
090
0,00
01,
000,
000
1,10
0,00
01,
200,
000
1,30
0,00
01,
400,
000
Rate
Arre
ars M
onth
ly Tr
end
from
May
201
4 to
Dec
embe
r 201
7
Rout
ine
Colle
ctio
n
Ongo
ing
Mon
itore
dSe
rous
Def
ault
Aver
age
Tota
lArr
ears
$Av
erag
e Ar
rear
s $
*Re
pres
ents
m
onth
a ra
tes
inst
alm
ent f
alls
due.
\\ey
wa\
shar
ed$\
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nce\
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cil M
eetin
gs &
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orts
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ance
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udit
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ee\M
eetin
g F&
A Re
port
s Feb
ruar
y 20
18\F
&A
Rate
s Deb
t Man
agem
ent
05-0
1-20
18
Page 33Finance & Audit Committee
Sund
ry D
ebto
rs -
Debt
Rec
over
y Rep
ort
Repo
rt cu
toff
date
Agei
ng cy
cle -
curr
ent d
ue
Stat
us
Flag
Debt
or T
ype
No. o
f De
btor
sOv
erdu
eLe
ss th
an
$2,0
00
$2,
001
to
$10,
000
Over
$1
0,00
1At
Deb
t Ag
ency
/M
ortg
agee
Lette
r Se
ntPa
ymen
t Pl
anIn
Di
sput
eFo
rmal
Re
view
To D
ebt
Agen
cy /
Mor
tgag
ee
Mon
itor
Prog
ress
Furt
her
Lette
r/M
eetin
g
Othe
r Opt
ions
Com
men
ts
Leas
ehol
d Pr
oper
ties
2713
0,91
715
57
111
√√
√Re
nts i
nvoi
ced
6 m
onth
ly in
adv
ance
. Som
e lo
ng
stan
ding
arr
ears
rece
ivin
g in
crea
sed
colle
ctio
n m
easu
res.
Orow
aiti
Conn
ectio
n5
11,3
052
32
2√
Two
over
due
acco
unts
rem
ain
lodg
ed w
ith C
redi
t Re
cove
ries.
Libra
ries
0
Wat
er13
5,22
612
12
√Pa
ymen
t pla
ns p
rom
oted
for t
hose
with
long
stan
ding
de
bt.
Re
sour
ce M
anag
emen
t11
72,1
956
14
42
1√
√So
me
long
stan
ding
arr
ears
rece
ivin
g in
crea
sed
colle
ctio
n m
easu
res.
Rent
als
1195
,123
72
22
21
One
very
larg
e am
ount
und
er le
gal a
ctio
n. O
ther
s un
der a
gree
d pa
ymen
t pla
ns a
nd o
ngoi
ng m
onito
red.
Regu
lato
ry Li
cenc
es
e.g.
Foo
d Pr
emise
s6
1,85
26
6Ti
min
g of
Ann
ual L
icenc
es b
illin
g, m
ost o
f gro
up a
re
aged
two
mon
ths o
nly.
Sund
ry14
27,2
7014
4√
Inst
alm
ent a
rran
gem
ents
ent
ered
into
for t
hose
with
lo
ng st
andi
ng d
ebt.
Trad
e W
aste
74,
000
71
Annu
al in
voici
ng cy
cle in
June
.
Build
ing
Cons
ents
31,
836
32
Whe
re o
verd
ue,
this
repr
esen
ts in
spec
tions
not
yet
co
mpl
eted
due
to ti
min
g of
bui
ldin
g pr
oces
s.
Cem
eter
y3
1,94
93
1In
stal
men
t arr
ange
men
ts e
nter
ed in
to fo
r tho
se w
ith
long
stan
ding
deb
t.
LIM
s0
Shor
t ter
m d
ebto
r.
Tota
ls10
035
1,67
375
1213
Actio
n to
Dat
eFu
rthe
r Act
ion
to C
omm
ence
31 D
ecem
ber 2
017
31 Ja
nuar
y 20
18
Age
of D
ebt
No. o
f Acc
ount
Hol
ders
pe
r Deb
t Thr
esho
lds
37%
59%
4%
Inte
rnal
Deb
t Rec
over
y (d
ebit
bala
nces
due
)
- 500
1,0
00 1
,500
2,0
00 2
,500
3,0
00 3
,500
4,0
00 4
,500
5,0
00
-
100
,000
200
,000
300
,000
400
,000
500
,000
600
,000
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Tota
l Arr
ears
$
Debt
or A
rrea
rsM
onth
ly Tr
end
Serio
us D
efau
lt
Ongo
ing
Mon
itore
d
Rout
ine
Colle
ctio
n
Aver
age
\\ey
wa\
shar
ed$\
Fina
nce\
Coun
cil M
eetin
gs &
Rep
orts
\Fin
ance
& A
udit
Com
mitt
ee\M
eetin
g F&
A Re
port
s Feb
ruar
y 20
18\F
&A
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ry D
ebto
rs M
anag
emen
t 31
Dece
mbe
r 201
7
Page 34 Finance & Audit Committee
FINANCE AND AUDIT COMMITTEE
14 MARCH 2018
Agenda Item No 8
Prepared by - Dean Phibbs - Manager Corporate Services
AUDIT MANAGEMENT ACTION POINTS_____________________________________________________________________
RECOMMENDATION/DRAFT RESOLUTION:
That the report be received for information and discussion.
Page 35Finance & Audit Committee
OU
TSTA
ND
ING
AU
DIT
MA
NA
GEM
ENT
AC
TIO
N P
OIN
TS:
2015
No.
Subj
ect
Det
ail
Resp
onsi
ble
Stat
usC
omm
ents
Plan
ned
Com
plet
ion
Dat
e1
Infra
stru
ctur
e as
set v
alua
tions
.Im
prov
e qu
ality
of R
oadi
ng d
ata
in R
AMM
use
for
next
val
uatio
n. R
ecom
men
datio
ns in
GH
D re
port
used
.
Man
agem
ent
Acco
unta
ntIn
pr
ogre
ssAs
set d
ata
cond
ition
and
per
form
ance
pr
oces
ses
wer
e id
entifi
ed in
the
AMP
as
an im
prov
emen
t pla
n ite
m. C
ounc
il w
ill as
sess
opt
ions
to e
ffect
an
appr
opria
te
regi
me
durin
g 20
15/1
6. T
his
proc
ess
will
stre
ngth
en li
fecy
cle
man
agem
ent a
nd
asse
t val
uatio
ns.
June
201
7
6R
ates
revi
ew.
Com
plet
e a
revi
ew o
f Cou
ncil’s
rate
s. W
hole
sale
ch
ange
s ar
e ne
eded
in ra
tes
as th
ere
are
antiq
uate
d di
ffere
ntia
ls a
nd m
any
fixed
am
ount
ta
rget
ed ra
tes.
Man
ager
C
orpo
rate
Se
rvic
es
In
prog
ress
Con
firm
ed th
is is
stil
l in
prog
ress
. Th
e ne
w s
yste
m w
ill no
t be
impl
emen
ted
until
20
18/2
019
at th
e ea
rlies
t.
Febr
uary
201
8
Page 36 Finance & Audit Committee
OU
TSTA
ND
ING
AU
DIT
MA
NA
GEM
ENT
AC
TIO
N P
OIN
TS:
2015
No.
Subj
ect
Det
ail
Resp
onsi
ble
Stat
usC
omm
ents
Plan
ned
Com
plet
ion
Dat
e1
Valu
atio
n of
in
frast
ruct
ure
asse
ts
Cou
ncil
had
plan
ned
to re
valu
e its
infra
stru
ctur
e as
sets
, effe
ctiv
e 30
Jun
e 20
17 a
nd in
clud
e th
ese
reva
lued
am
ount
s w
ithin
the
2017
Ann
ual R
epor
t.
This
was
in li
ne w
ith it
s ac
coun
ting
polic
y to
re
valu
e th
ese
asse
t cla
sses
eve
ry th
ree
year
s as
th
e la
st re
valu
atio
n w
as p
erfo
rmed
in 2
014.
Gro
up
Man
ager
As
sets
and
In
frast
ruct
ure
Proc
ess
impr
ovem
ents
for C
ounc
il’s
reva
luin
g of
infra
stru
ctur
e as
sets
is b
eing
ad
dres
sed,
incl
udin
g de
dica
ted
reso
urci
ng
and
sche
dulin
g.
2N
on-fi
nanc
ial
perfo
rman
ce
repo
rting
Audi
t rec
omm
end
Cou
ncil
revi
ew th
e tim
elin
es a
nd
qual
ity a
ssur
ance
pro
cess
es o
ver t
he n
on-fi
nanc
ial
info
rmat
ion
incl
uded
in th
e dr
aft A
nnua
l Rep
ort.
Th
is is
par
ticul
arly
impo
rtant
for p
erfo
rman
ce
targ
ets
rela
ting
to th
e m
anda
tory
mea
sure
s in
ac
cord
ance
with
und
erly
ing
legi
slat
ion.
Gro
up
Man
ager
As
sets
and
In
frast
ruct
ure
Proc
esse
s w
ill be
put
in p
lace
to im
prov
e th
e qu
ality
and
tim
elin
ess
of n
on-fi
nanc
ial
perfo
rman
ce re
porti
ng, p
artic
ular
ly
man
dato
ry m
easu
res.
A fr
amew
ork
will
be d
evel
oped
to im
prov
e co
llect
ion
of
info
rmat
ion
arou
nd c
ompl
aint
s to
Cou
ncil.
3D
ises
tabl
ishm
ent
of W
estp
ort H
ar-
bour
Lim
ited
Audi
t req
uest
that
Cou
ncil
and
man
agem
ent k
eep
them
info
rmed
dur
ing
the
dise
stab
lishm
ent p
roce
ss
as W
estp
ort H
arbo
ur L
imite
d tra
nsfe
rs it
s as
sets
an
d lia
bilit
ies
and
win
ds d
own
its o
pera
tions
dur
ing
2017
/201
8.
Man
ager
C
orpo
rate
Se
rvic
es
Cou
ncil
are
wor
king
in p
artn
ersh
ip w
ith
Bulle
r Hol
ding
s Li
mite
d to
dis
esta
blis
h W
estp
ort H
arbo
ur L
imite
d an
d w
ill ke
ep
Audi
t NZ
info
rmed
thro
ugh
the
proc
ess.
4As
set
man
agem
ent
plan
s
This
issu
e hi
ghlig
hts
the
impo
rtanc
e of
the
Cou
ncil
havi
ng g
ood
asse
t man
agem
ent p
lans
in p
lace
with
hi
gh-q
ualit
y as
set c
ondi
tion
info
rmat
ion
unde
rlyin
g th
e pl
an.
Asse
t man
agem
ent p
lans
will
be im
plem
ente
d m
ore
effici
ently
thro
ugh
portf
olio
co-
ordi
nato
rs to
ow
n an
d dr
ive
thei
r res
pect
ive
mai
nten
ance
and
re
new
al p
rogr
ams,
as
wel
l as
stra
tegi
c al
ignm
ent
acco
unta
bilit
y by
man
agem
ent.
Gro
up
Man
ager
As
sets
and
In
frast
ruct
ure
OU
TSTA
ND
ING
AU
DIT
MA
NA
GEM
ENT
AC
TIO
N P
OIN
TS:
2015
No.
Subj
ect
Det
ail
Resp
onsi
ble
Stat
usC
omm
ents
Plan
ned
Com
plet
ion
Dat
e1
Valu
atio
n of
in
frast
ruct
ure
asse
ts
Cou
ncil
had
plan
ned
to re
valu
e its
infra
stru
ctur
e as
sets
, effe
ctiv
e 30
Jun
e 20
17 a
nd in
clud
e th
ese
reva
lued
am
ount
s w
ithin
the
2017
Ann
ual R
epor
t.
This
was
in li
ne w
ith it
s ac
coun
ting
polic
y to
re
valu
e th
ese
asse
t cla
sses
eve
ry th
ree
year
s as
th
e la
st re
valu
atio
n w
as p
erfo
rmed
in 2
014.
Gro
up
Man
ager
As
sets
and
In
frast
ruct
ure
Proc
ess
impr
ovem
ents
for C
ounc
il’s
reva
luin
g of
infra
stru
ctur
e as
sets
is b
eing
ad
dres
sed,
incl
udin
g de
dica
ted
reso
urci
ng
and
sche
dulin
g.
2N
on-fi
nanc
ial
perfo
rman
ce
repo
rting
Audi
t rec
omm
end
Cou
ncil
revi
ew th
e tim
elin
es a
nd
qual
ity a
ssur
ance
pro
cess
es o
ver t
he n
on-fi
nanc
ial
info
rmat
ion
incl
uded
in th
e dr
aft A
nnua
l Rep
ort.
Th
is is
par
ticul
arly
impo
rtant
for p
erfo
rman
ce
targ
ets
rela
ting
to th
e m
anda
tory
mea
sure
s in
ac
cord
ance
with
und
erly
ing
legi
slat
ion.
Gro
up
Man
ager
As
sets
and
In
frast
ruct
ure
Proc
esse
s w
ill be
put
in p
lace
to im
prov
e th
e qu
ality
and
tim
elin
ess
of n
on-fi
nanc
ial
perfo
rman
ce re
porti
ng, p
artic
ular
ly
man
dato
ry m
easu
res.
A fr
amew
ork
will
be d
evel
oped
to im
prov
e co
llect
ion
of
info
rmat
ion
arou
nd c
ompl
aint
s to
Cou
ncil.
3D
ises
tabl
ishm
ent
of W
estp
ort H
ar-
bour
Lim
ited
Audi
t req
uest
that
Cou
ncil
and
man
agem
ent k
eep
them
info
rmed
dur
ing
the
dise
stab
lishm
ent p
roce
ss
as W
estp
ort H
arbo
ur L
imite
d tra
nsfe
rs it
s as
sets
an
d lia
bilit
ies
and
win
ds d
own
its o
pera
tions
dur
ing
2017
/201
8.
Man
ager
C
orpo
rate
Se
rvic
es
Cou
ncil
are
wor
king
in p
artn
ersh
ip w
ith
Bulle
r Hol
ding
s Li
mite
d to
dis
esta
blis
h W
estp
ort H
arbo
ur L
imite
d an
d w
ill ke
ep
Audi
t NZ
info
rmed
thro
ugh
the
proc
ess.
4As
set
man
agem
ent
plan
s
This
issu
e hi
ghlig
hts
the
impo
rtanc
e of
the
Cou
ncil
havi
ng g
ood
asse
t man
agem
ent p
lans
in p
lace
with
hi
gh-q
ualit
y as
set c
ondi
tion
info
rmat
ion
unde
rlyin
g th
e pl
an.
Asse
t man
agem
ent p
lans
will
be im
plem
ente
d m
ore
effici
ently
thro
ugh
portf
olio
co-
ordi
nato
rs to
ow
n an
d dr
ive
thei
r res
pect
ive
mai
nten
ance
and
re
new
al p
rogr
ams,
as
wel
l as
stra
tegi
c al
ignm
ent
acco
unta
bilit
y by
man
agem
ent.
Gro
up
Man
ager
As
sets
and
In
frast
ruct
ure
Jan-
18Fe
b-18
Mar
-18
Apr-1
8M
ay-1
8Ju
n-18
Jul-1
8Au
g-18
Sep-
18Oc
t-18
Nov-
18De
c-18
Inte
rnal
Rep
ortin
g
F&A
Repo
rts
- BD
C Qu
arte
rly F
inan
cials
Half
year
lyTh
ree
quar
terly
Quar
terly
- BD
C Op
erat
iona
l
- BD
C Tr
easu
ry
- BD
C De
btor
s
- BD
C Ca
pita
l
- BD
C Si
gnifi
cant
Pro
ject
s
- BH
L Qua
rter
ly F
inan
cials
Coun
cil R
epor
ts
- Bu
dget
Car
ry O
vers
2017
Car
ryov
ers
Rate
s Ove
rhau
l Pro
ject
- Ra
tes O
verh
aul
Delib
erat
ions
Amen
dmen
ts to
ra
ting
mod
elFi
nalis
e &
ado
pt fo
r in
clusio
n in
LTP
Data
base
inte
grity
ch
ecks
Stm
t of P
ropo
sal +
Co
nsul
tatio
n Do
cCo
mm
unity
mee
tings
+
Adve
rtisi
ng
2018
-202
8 Lo
ng T
erm
Pla
n
- Lo
ng T
erm
Pla
nW
orks
hop
Wor
ksho
pW
orks
hop
+ Ad
opt
Draf
t LTP
Cons
ulta
tion
Road
show
s + H
earin
gsAd
opt F
inal
Pla
nCo
mm
unity
&
stra
tegi
c wor
ksho
ps +
en
gage
men
tAd
opt d
raft
visio
nW
orks
hop
2019
/202
0 An
nual
Pla
nW
orks
hop
2019
/202
0 An
nual
Pla
n
2017
/201
8 An
nual
Rep
ort
- BD
C An
nual
Rep
ort
Syst
ems A
udit
Audi
tAd
opt
Publ
ish S
umm
ary
&
repo
rt
- BH
L Ann
ual R
epor
tAu
dit
Grou
p Fi
gure
sAn
nual
Rep
ort
Othe
r Ope
ratio
nal P
roje
cts
- In
sura
nce
Nego
tiatio
nsFi
nalis
e
FINA
NCE
WOR
K PL
AN
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