Audit and Risk Committee 1 5 Decemb e r 2015 Our u it res pon se We wi ll fo l l ow up o n prog r ess m a de agai n s t o u r pr evi o us rec o mmenda t ion s , and ga i n on u nde r st o ndi ng of i mp rovemen t s e n d e m e rging issues s i nce ou r l os t rev i ew. As por t o f this wo r k, we w i l l cons i der t he f i ndi ngs fro m th e OAG le po r t i nto the M E T I p r o j e c t . W ' e wi ll rev i w the l arge pro j ects vnd er way oc r o ss t o o g r ou p w i t h a view t o upda t i ng o u r undersf a nd i n g o f Ifle governan c e (lr r ongemenl Inpla c e and t he ri s k s and l ss oe s that cou l d i m pac t pr oj e ct de U. . , e ry . We w i l l l so assess w h at i f an y f i n an ci al re p o ni ng an dd i sc l osu r e i.s l l e s m ay a r i se a nd how m anagement isaddres . sing t h e W e wi ll test sa m pl e o f sm aller pr o j ects t o en s u r e t h e Co u nci l ' s pro c esses a nd p o l ices ore c onsfslen tl ya p p l ie d . W here a ppr opria t e, t hl s wo rk w il l be c ondu c ted I n conj l J l ' l ctioo w i th appli c a b l e C C O oudit o r s a nd wu b e s upp orted y o ur Spec ial i st Aud i t a nd A s s u r a nce Services I SM S l e a r n . Y ou r business s sues r o je d m n g em e nt E l A t Ih e C o uo c i l g r oup leve l , t he r e o r e a n u m ber of m o j or p r oje c t s at vor i ous s 10ges o f com p l elion. T he s e i nclu d e: • C RL ; • M E lI • New C ore ( di scuss e d sepo r at e l y o b oveh • Hv n ua 4 W al C ' r m a l n P ro j ed; • Cen t r o l f nter ce p to r was te w ol e r tu nne l ; • No rsG o; and • S k yPa lh . T hese l a r gi p r oj os ore high r i k d u e t o t he i r sca l e, pro mi nen c e , th e complexi t yo f ' t he p r o c ure m en t or r cnge m enr s , d t h ei r fl n an c la l lmpod. There f ore i t I s v it a l t ho t t h e Co u nci l ho on ap p rop r ia t e moni t ori n g an d frcmewo i pr ojects 1 0 manag e d e l ive r y. T he C ounc il a lso need s to e n su r e th o t l t s ma l l er va l ue p r o ] a s com pl y wi t h i h pc l lc l e s and pr oc ess e s, os t he re I s ri s k lhot t he proje c t ma n age m en t proc t k e app li ed t o s m a l le r pr a jech may no t b o s r ig o rous. P ro j ect m anag e m en t prac t ice s . should b e co n s id e r e d i n lig ht o f ee r r e p or te d fi ndin g . e n d r e co m m e n d a t i o ns t o d o t e in t h i s a r ea. u i t rl s l cs Inc uck • n o n - co mp l i an ce w i t h th e Co u nc i l ' s p ol i cies , p r oc e du r e s a nd good p r act i ce exp ec tati ons w h e n manag i l 19 pr o j eos a n d • pole m i o l tO I m i ssta t ement of W I P, asse t b el on c es, exp e ndi tu r e a n d re l ated d ls do s u r es I n t he 20 1 6 f i nanc ial statemen l s .. • • • • l E s e C U ::: « P r o c u r e men t ---- - - , ---------- .---- " T h e C ounci l ' s ma jo r pr oj e c t s i nvo l v e si gn i f ican t pr ocu re m e nt dec i s i ons . In a ddi t io n t o th i s a numb e r of th e C ou n c i l ' s ex i st i ng c on t r acts w i l l be u p fo r r n e wo l or r e t ende rin g in the nea r fut u r e. i w i lt f ol l o w up o n the s ta t u s o f ou r pre v i ous re om m e ndat i o os cn d upd a t e o u r und e r s t an d i n g o f prog r ess mod e a n d e m erging I ss ue s s ince o u r l ad r vi ew. Audi t NZAr ra n gements f or Si x M onth Re v ie w E n ga g e m e nt and 30 Ju ne 2016 Aud i t of An n u al Report Page 123
