Official Information Request - 14 May 2017

Sent: Thursday, 8 June 2017 3:39 p.m.

Subject: TRIM: Information request - financial transparency of Te Tatau o Te Arawa Board

I refer to your email of 14 May 2017 to CE Geoff Williams requesting information on the financial transparency of the Te Tatau o Te Arawa Board, and reply below as per your questions:

1. Is it true that $250k is granted to the Te Tatau o Te Arawa Board (TTOTA) by the RLC each year?
As resolved at the Extraordinary Council meeting held on 26 May 2015, Council committed to an annual $250,000 (GST inclusive) payment to the Board to provide for administrative, reporting, financial, governance and other support for the board to carry out its functions and obligations under the 18 December 2015 Partnership Agreement signed between Rotorua Lakes Council and Te Tatau o Te Arawa Board.

2. How is the expenditure described and justified in the RLC audited accounts?
As per number 1 above, Council provides $250,000 to TTOTA annually as per a Funding Agreement.

3. Is the TTOTA Board expected to submit a budget for approval by the RLC prior to the annual grant being made?
Budgets are not required. Payments are made in accordance with the Funding Agreement between RLC and TTOTA that requires TTOTA to continue to meet its functions and obligations under the 2015 Partnership Agreement.

4. Can I have copies of TTOTA budgets submitted and approved?
See Q.3.

5. Is it true that $290k will be granted to the TTOTA in election years?
As resolved at the Extraordinary Council meeting held on 26 May 2015, Council committed an additional $40,000 on top of the annual $250,000 - a total of $290,000 (GST inclusive) - in an election year.

6. What restrictions will be placed on expenditure of the extra $290k in election year?
In an election year TTOTA receives $290,000 total ($250,000 + $40,000). The $40,000 is used to carry out the elections, i.e. paying for the service of an independent election management company (see Q.17 and Q.18). The $250,000 is the annual payment as per the Funding Agreement.

7. How will the TTOTA account to the RLC for the expenditure of the base grant and election year grant?
As per the Funding Agreement between RLC and TTOTA, TTOTA undertakes to provide to the Council on an annual basis:

• Audited, if applicable, financial statements; and
• An annual report.

8. How much of the base grant is spent on salaries, attendance allowance, travel allowance and other expenses?
Line by line detail on these matters is not required as long as TTOTA continues to meet the reporting requirements per Q.7 above and its functions and obligations under the 2015 Partnership Agreement, including (but not limited to):

• Establishing an independent Te Arawa board who represents the collective interests of Te Arawa with Council
• Appointing two Te Arawa board members to the Strategy Policy & Finance Committee and two to the Operations & Monitoring Committee of Council
• Appointing one representative to Council's Resource Management Act Policy Committee
• Appointing Te Arawa people to Council's strategy working groups

9. How does the compensation paid to the RLC mayor and councillors compare to the compensation paid to the members of the TTOTA Board and to members of the RLC Community Boards?
TTOTA manages payments to, and activities of, their own members.

10. What constituencies do each of the members of the TTOTA represent?
14 members were elected to TTOTA with representation/seats broken down as follows:

1 - Koeke (elder)

6 - Te Arawa Iwi/Hapū

2 - Ngāti Whakaue

2 - Māori land trusts and incorporations

1 - Pan Te Arawa entity

2 - Rangatahi (youth)

11. How are TTOTA members elected?
Other than its inaugural 2015 election, elections of TTOTA Trustees will take place in the same year as local body elections, in each case not later than the date of local body elections. The Trustees are elected in accordance with the following:

(a) At least 60 days prior to any Trustee election, an independent election management company shall be engaged as Returning Officer to develop an agreed election timetable and manage the election process.

(b) Nominations of candidates for election must be through the completion of a Te Arawa partnership board nomination form.

(c) The TTOTA Executive Officer shall ensure validity of all nominations, before sending to the Returning Officer to develop and manage election material and processes.

(d) All seats are voted for "at large", i.e. by all voting age Te Arawa individuals enrolled on the Te Arawa Lakes Trust register.

(e) Election results, subject to objections and appeals, are published within 24 hours of election count.

(f)The newly elected board is confirmed at a general meeting at the conclusion of the objections and appeals process.

12. What was the size of the turnout as a percentage of the total eligible to vote when members of the TTOTA were first elected?
2,839 people voted out of a list of 11,153, or 25.45% of eligible voters.

13. What is the number of meetings that TTOTA members are required to attend to receive attendance payments?
TTOTA manages payments to, and activities of, their own members.

14. What trips in NZ and overseas have members of TTOTA been on as part of their official duties?
TTOTA manages payments to, and activities of, their own members. However, Council resolved to ask a representation to attend the Local Government NZ awards alongside Council last year.

15. What were the purposes of such trips?
See Q.14.

16. Are the trips funded from the RLC grant or other RLC funds?
See Q.14.

17. Since citizens standing for council are self funded how is the allocation of an additional $40k justified?
Citizens standing for election to TTOTA also self-fund their own campaigns.

The $40,000 is used to carry out the elections, i.e. paying for the service of an independent election management company.

18. How are theTTOTA Board elections conducted to ensure they meet the standard criteria guaranteeing the quality of elections?
See Q.11

In their 2015 election, ElectioNZ.com independently oversaw and managed the election process for TTOTA through their Chief Returning Officer, Warwick Lamp. ElectioNZ.com is the same election management company that RLC uses to manage its own elections.

19. How does the RLC assure the Auditor General that TTOTA Board elections comply with transparency and fidelity standards?
See Q.18

20. How do you as CEO assure ratepayers that they are getting good value for money made to TTOTA?
The contribution of TTOTA Board members are visible on Council committees and through other portfolio and advisory groups. They also contribute in Council workshops and with formal submissions. As noted previously functions and obligations under the 2015 Partnership Agreement, include (but are not limited to):

• Establishing an independent Te Arawa board who represents the collective interests of Te Arawa with Council
• Appointing two Te Arawa board members to the Strategy Policy & Finance Committee and two to the Operations & Monitoring Committee of Council
• Appointing one representative to Council's Resource Management Act Policy Committee
• Appointing Te Arawa people to Council's strategy working groups

TTOTA and Council are collaboratively working towards several agreed goals towards improving Rotorua - including assisting Council with its decision-making and other processes; exercise of functions; and exercise of powers by meeting five objectives:

• Help Council meet its Rotorua 2030 commitment to effectively partner with Te Arawa
• Improve the delivery of Council's legal and statutory obligations to Māori
• Strengthen Te Arawa's participation in Council decision-making
• Identify strategic opportunities to work closely together for the betterment of Rotorua district
• Build iwi capacity and capability to partner with local government

We are obliged to advise that you may contact the Ombudsman at the address below if you have any concerns with the response provided by Council, by writing to:

The Office of the Ombudsman

PO Box 10 152

WELLINGTON 6143

Alternatively, you may email info@ombudsman.parliament.nz or use the online complaints form available at www.ombudsman.parliament.nz/make-a-complaint.

Regards