Governance and Ethics BID Workshop 18 June 2018 Maureen Glassey, Senior Investigation Advisor Integrity Unit

Session Overview This session will provide you with an opportunity to Understand Auckland Council’s approach to integrity Explore the Governance Model Local Government Official Information and Meetings Act 1987 Build on your understanding of conflicts of interest and your obligation to declare the same (both financial and non-financial) Explore the difference between actual and perceived conflicts of interest and how to recognise and manage, or mitigate them Work through some real life scenarios Discuss your own situation & non- financial)

The Integrity Unit Overview Managing the prevention, detection and investigation of unethical behaviour at Auckland Council Our Charter, Speak Up We are here to offer confidential advice, guidance or assistance 0800ACINTEGRITY

Office of the Auditor General Where do we fit? AG: Greg Schollom (approx 4000 public entities) Independent Auditor of AC’s Annual Report Independent Audit of AC’s Long Term Plan Office of the Auditor General Provides Assurance to the Chief Executive and the Governing Body re organisational risk Oversees the work of both Internal and External Audit Oversees council’s Internal Control Audit & Risk Committee Reports to the Chair of the Audit and Risk Committee Internal Audit & Integrity

What is good governance? Leadership Ensures accountability and transparency Setting clear expectations and responsibilities Enabling Participation Risk management Compliance

Role of the executive committee (board) Strength of purpose Leading the development of the association purpose, goals and strategy An effective governance culture Acting as a team with high performance culture committed to engaged, quality governance of the entity. The culture is characterized by effective relationships between the board, BID manager, association and BID members and other stakeholders Holding to account Through effective and professional oversight Ensures purpose and strategy are understood and implemented by management Effective compliance Ensuring the association remains solvent Ensures the correctness of financial reports and processes Scan and manage existing and prospective risks to the association and BID programme.

The CONSTITUTION Refer to your constitution to ensure you: Are following the associations rules regarding governance, membership rights and AGMs etc Executive committee/board entitlements, processes and responsibilities Reporting and legal obligations Are not acting outside the rules Remember if you are operating in breach of the constitution, you are in breach of the Auckland Council BID Policy and Operating Standards  

Problems, issues and serious concerns Business associations are required to advise Auckland Council of situations which they believe could be defined as a problem or issue which, if unresolved, becomes a serious concern.  This includes where there are breaches of the business association's constitution.

Trust and Confidence “… it is1 simply wrong for an official to accept money or like benefits in it is sim”…ply wrong for an official to accept money or like benefits in return for what has been done in an official capacity…” y wrong for an official to accept money or like benefits in return for what has been done in an official capacity…” hat has been done in an official capacity…” “… it’s not about putting the hand brake on; its about increasing trust and confidence in Auckland Council…” Mark Maloney, Head of Internal Audit, Auckland Council

PERCEIVED VS ACTUAL CONFLICTS

When to Participate “If in doubt, stay out”. (Office of Auditor General) In deciding whether to participate, consider the: extent of your personal links or involvement with the other person or group degree to which the matter under discussion directly affects that person or group perception.

What to do? Be aware of the situation Take advice Make a decision Declare that you have a conflict of interest when the matter comes up at the meeting Refrain from discussing or voting on the matter Ensure that your declaration and abstention is recorded

Scenario One Mr Smith and Mrs Jones are board members of the Kiwi Business Association. Mr Smith becomes aware that Mrs Jones is a part owner of a printing company who is the supplier of promotion posters etc to the business association. What does Mr Smith do? What does the board do? What does the BID Manager do?

Scenario Two Miss Green has an issue with Auckland Transport regarding the bus stop outside her shop and has recently been elected onto the board of the Kiwi Business Association. Miss Green wants to move the bus stop and is demanding the board support her on this request. What does the board do? What does the BID Manager do?

Scenario Three Kiwi BID Manager is new to the job and has both a current adopted strategic and annual business plan to implement. The board is expecting the Manger to start implementing the plan against the budget allocations. Two board members are lobbying the BID Manager to focus on areas of the plan that favour their businesses. What does the BID Manager? What does the board do?

Scenario Four The BID Manager has just completed a rebranding project for the Kiwi Business Association and Kiwi BID programme. The project involved consultation workshops with members of the business association, community, key stakeholders, the association board. The engagement process included a presentation to the association members at the recently held AGM, who voted in favour supporting the new brand and positioning statement for the association. The board of the Kiwi Business Association has received the completed project, the engagement evidence and formally approved the new brand and has instructed the BID Manager to start the implementation process. In the wake of this decision by the board, one board member has then publicly criticised the decision and the Managers implementation plan. What does the BID Manager? What does the board do?

THANK YOU Maureen.Glassey@aucklandcouncil.govt.nz Integrity@Aucklandcouncil.govt.nz 0800ACINTEGRITY