CONFIDENTIAL TO BOARD MEMBERS ONLY
NEW ZEALAND BLOOD SERVICE
Minutes – NZBS Board Meeting
Minutes of the NZBS Board
Meeting held at:
New Zealand Blood Service & Zoom
71 Great South Road
Epsom
Auckland
In attendance:
Mr David Chamberlain (Chair)
Dr Jackie Blue (Deputy Chair)
Ms Fiona Pimm
Dr Bart Baker
Mr Raymond Lind
Dr Paula Martin
Ms Edie Moke
Apologies:
None
Management:
Ms Sam Cliffe (CEO)
Mr John Harrison (CFO)
Board Secretariat:
Vanessa Siddins (Board Secretary)
Date:
3 December 2020
The meeting commenced at 9.30am.
ITEM 1.0 APOLOGIES
There were no apologies for this meeting.
ITEM 2.0 INTERESTS REGISTER
2.1
Updates to the Interest Register
P Martin advised that her husband is no longer a Board member of Kidney Health New Zealand.
2.2
Declarations of Conflicts of Interest for this Agenda
P Martin declared that she is now an employee of the Of ice of the Auditor General
E Moke declared that for item 6.5 pricing policy she is also a DHB Board member.
ITEM 3.0 MINUTES OF PREVIOUS MEETING/ACTIONS REPORT
3.1
Confirmation of Minutes – 29 October 2020
P Martin requested that an action be added to the action register for J Harrison to contact the ADHB CFO regarding
operational costs for ODNZ.
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Motion:
The presented minutes of the 29 October 2020 NZBS Board meeting be accepted as a true and correct
record of that meeting with the above amendment.
Motion by:
P Martin
Seconded by: E Moke
Carried:
Al present in favour
3.2
Schedule of Outstanding Action Items from Previous Meetings
The status of all action items as outlined` in agenda item 3.2 were noted.
The following action items were discussed:
Item 5.2
S Cliffe noted that the updated Adverse Events Policy was in today’s Board papers.
D Chamberlain suggested that the Board Health and Safety visits could recommence in 2021.
3.3
Matters Arising (Not Covered Elsewhere)
B Baker asked if there were any updates on Whangarei Hospital laboratory accreditation? S Clif e advised that IANZ were
comfortable with the hospital’s plans but wanted to see some tangible action in the next few weeks.
ITEM 4.0 CHAIRMAN’S REPORT
The Chairman had nothing to report that wasn’t covered elsewhere.
ITEM 5.0 CEO REPORT
S Clif e noted that although it had been a chal enging year, the organisation was in good shape operational y with business
processes working wel and a new Executive member starting in the new year who wil be a huge asset to the organisation.
The unknowns around the funding for infrastructure are chal enging and tactics for best approach and response are needed
in the knowledge that there is great potential for growth and development.
On Monday, 30 November this organisation became the national agency for organ donation. The ODNZ team transitioned
and everything went as smoothly as expected. The next step is to put a robust framework in place, noting it will take some
time to change behaviours.
Waikato Blood Bank
Waikato Hospital have agreed to build a temporary blood bank to be ready in nine months’ time. The team have looked at
moving the blood bank to the donor centre but clinical y it was not appropriate as it is too far away. F Pimm didn’t feel
comfortable with nine months as this was too long and she had concerns around the Board’s liability if something goes
wrong. D Chamberlain commented that the Board need to put plans in place to mitigate the potential risks. It was agreed
that a legal opinion was needed on this mat er to be sure the Board have taken al steps possible and that affected staff
are kept informed.
F Pimm highlighted that although the likelihood is very low there is still a risk. B Baker agreed with F Pimm’s statement
and pointed out that we can’t just stop using the current building as it would be a risk for patients and the hospital. We
have obligations to our staf along with obligations to the people of the Waikato region. F Pimm added that the Board need
to have explored all the options.
There was discussion around whether the Board should ask the Minister/Ministry to indemnify NZBS for this situation? S
Clif e shared the Board’s concerns and noted that staff would have had to vacate the building anyway due to external
scaf olding that is being erected as part of the initial remediation works to strengthen the plant on the roof and the blood
bank wouldn’t be able to operate when they do the internal bracing. Our current plan to is to maintain blood bank operations
and to get staff out as soon and safely as practical. S Cliffe agreed that we do need to seek a liability view from Buddle
Finlay and ask them about what we could ask of the Ministry/Minister. D Chamberlain suggested that we also ask them to
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suggest the best mitigations and who to write to re asking for indemnity. Is there a let er we should send to the Waikato
DHB to formal y ask what the council’s plans are?
S Clif e advised that the Ministry have already received a briefing from Waikato DHB. We have formal y asked Waikato
DHB for assessments on the two building either side, which is the escape route and used as a thoroughfare for patients
and families. Discussion fol owed around the Board’s unease at the lack of concern and urgency that the DHB and council
have shown around this. It needs to be clear to the DHB that the NZBS Board are taking this seriously and the organisation
needs to be sure that we have explored al options for the safety of our staf . It was suggested that the Board Chair could
write to the Minister and copy Waikato DHB. S Cliffe confirmed that we have explored multiple solutions with the landlord.
S Cliffe to get advice from Buddle Findlay around liability and mitigations at Waikato. Letter to Karen Poutasi and Kevin
Snee seeking clarity re Hamilton City Council and DHB actions to cover liability.
ACTION 12.1
Christchurch Blood Bank
S Clif e advised that there are issues with the new site for the Christchurch Blood Bank. In particular, the Lamson pneumatic
tube system as it is a 15 minute walk from the blood bank to the acute services. There has been a lot of correspondence
between S Clif e, S Morley and their acting CEO Andrew Brant. The situation is concerning and staff are worried it will
af ect patient outcomes therefore it is being raised with the Board as a concern. The DHB hasn’t thought about how to get
product to the new block. S Clif e wil keep the Board informed if there is any further deterioration to the service. We are
monitoring this as much as we can and have outlined to the DHB exactly what needs to happen to fix this.
E Moke suggested that we could perhaps explore again the request to share the acute building. S Clif e responded that
she is happy to have the conversation with the DHB again and that we don’t need a lot of space, it’s location that is
important for access to the acute services.
Organ donation
S Cliffe noted that the proposed roles and functions of the national agency for organ donation had been sent to the Ministry
and we had formal y writ en back to the Ministry outlining the organ donation funding shortfall. P Martin had been doing
some investigation of public documents to try and understand what the appropriations were, for the national agency. The
Board needs to have a discussion today how/if/when we wil respond. A Briefing to the incoming Minister (BIM) was writ en
along with supplementary papers to Minister Lit le. We received a heavily redacted version of the BIM back from the
Ministry (for public release) around underfunding which the Ministry refute. Other statements were also redacted around
self-reliance in plasma, however we hope that these statements wil be unredacted.
There are multiple concerns, including the lack of clarity on the purpose of the funding. S Clif e advised that the shortfall
for the current service is $200-300k per annum. It had become clear through the process that the extra $250k was intended
to top up $1.7m to the $1.9m needed to break-even. D Chamberlain added that the feedback from the Ministry had been
that money is tight. We need to be careful that the Ministry don’t conflate organ donation funding with the Blood Service
funding.
The organisation needs to prioritise equity for its core business activities such as the Waikato donor centre as we don’t
want to end up being funded for organ donation and not our core collections network. S Clif e has been discussing scenario
planning with J Harrison and D Chamberlain. Waikato is urgent, then the Auckland satellite site then Tauranga but al can
be viewed as urgent. ISBT 128 was due to start next year and would not be able to go ahead without funding matters
resolved, as it can’t be prioritised over blood col ection needs. The development of 71 Great South Road would need to
pause and we would need to increase prices to at least 10+% for the next few years, however this does not feel like the
appropriate course of action. We could ask the landlord to fund al of the satellite site and repay over the term of the lease.
D Chamberlain suggested a paper from management to the Board outlining the alternative funding models if there was no
capital injection. J Harrison advised he would do this as part of the budgeting process to be discussed at the end of
January. S Clif e added that she didn’t feel these options would be palatable.
There was further discussion around funding for the organ donation national agency noting it may have not been apparent
to the Ministry how much it cost to run the ODNZ service. The $250K agreed by cabinet in 2018 had been in the budget
since 2019 with $250k ongoing to establish the service, this was under the heading of policy initiatives. There was another
initiative of $700k ongoing, which the Ministry says is no longer available. S Clif e added that the Ministry have advised us
that they are trying to find some one-of funding to assist NZBS. The Board felt that they needed to take a strong position
on why the funding was no longer available but also note it is entirely possible it’s a legitimate decision by the Government
not to give us the money. The budget bid process is not clear and the Minister needs to be made aware what the outcomes
wil be if the budget bid is not successful.
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S Cliffe advised that management have a let er ready to go and can strengthen the approach as per the views of the Board
and get it to the Ministry as it’s important the Board’s view is documented.
S Cliffe to
write to MoH around lack of funding for national agency for organ donation. Once a response has been received,
write to the Minister with briefing paper.
ACTION 12.1
Motion:
The Board received and noted the Chief Executive’s report.
Motion by:
J Blue
Seconded by: B Baker
Carried:
Al present in favour
ITEM 6.0 DECISION PAPERS
6.1
Year End Financial Statements and Statement of Performance – Pre-Board sign-off Review
J Harrison advised the figures dif er from those tabled earlier in the year due to the Holidays Act work that Ernst & Young
(EY) undertook moving the estimated remediation shortfall in the 2019/20 year to $1.2m, thus taking the remediation
accrual to $2.9m. Another issue arising was that this breached the interest cover ratio which pushed us into a potential
breach position. Technically at 30 June if our banking covenant was breached NZBS would need to treat term debt as
current debt. Consequently, NZBS entered discussions with Westpac on the mat er. Westpac had formal y confirmed
NZBS hadn’t breached interest rate cover and Audit NZ were happy with this resolution meaning the status quo was
maintained for al debt classification.
The Chair noted he had received on behalf of the Board the Let er of Representation from Management and noted the
CFIS letter had been filed on 12 August 2021.
6.1.1
2019/20 Management Letter to the Board from Audit NZ
Motion:
The Board confirmed the receipt of the 2019/20 Management Report to the Board from Audit NZ and in
so doing, noted;
1. the ESCO assessment grades for NZBS control environments in the 2019/20 financial year were
maintained at the top grading of ‘
very good’ for al three control environments and,
2. there were no substantive issues arising from the 2019/20 year-end audit work.
Motion by:
B Baker
Seconded by: F Pimm
Carried:
Al present in favour
6.1.2
Variation to Westpac MOCL Terms – Revised Definition of Interest Cover Ratio
Motion:
The Board having reviewed the Westpac
Let er of MOCL Facility Variation incorporating a change in the
basis of interest cover ratio calculation approved the execution of the Acceptance of the changes
document and in so doing authorised the digital signatures of the Chair and deputy Chair be added to
confirm acceptance of the MOCL change on behalf of the New Zealand Blood Service.
Motion by:
F Pimm
Seconded by: R Lind
Carried:
Al present in favour
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6.2
AUDIT NZ Attendance – Financial Statements Adoption Considerations, 2019/20 Audit Outcomes and
Management Report, issue of Audit Opinion (Audit NZ At endees: Lauren Clark, Associate Audit Director
and Penica Cortez, Audit Manager)
The Chair welcomed
Lauren Clarke, Audit Director and Penica Cortz, Audit Manager from Audit NZ to the meeting at
11.30am. The Board then invited Francois Steyl, Financial Control er to join the meeting with the auditors. Thanks were
given for al the work and ef ort that had been put into what was a chal enging year for everyone. J Harrison noted he was
very proud of how the finance team had delivered early in the audit process and hoped it had been a good process in the
circumstances for Audit NZ.
L Clarke commented that they had started the year expecting to be finished the NZBS audit by mid-August, then Covid-
19 came along. She was impressed at how ready the finance team were. A big issue this year had been Holiday Act
remediation liability. Also of importance was the clarification around the potential breach with the bank. In terms of
inventory, as the largest NZBS asset Audit NZ had put a lot of ef ort into their inventory work. Management have been
presented with the audit management report which is in the papers and noted NZBS control environments had been
assessed as very good with only some minor mat ers raised.
D Chamberlain noted the assessment of very good was in three categories and gave his congratulations to J Harrison and
F Steyl. He then commented that the non-material misstatement based around EY and Holidays Act. L Clarke added that
it was fortunate for NZBS that al three of the DHBs also used EY, therefore the EY methodology used here enabled Audit
NZ to assess the reasonableness of the estimate for Holidays Act remediation. J Harrison advised that we have now
commenced the second stage of the engagement focused on payrol system rectification and remediation initial y for
existing employees fol owed by past employees. We are fol owing the formal process which includes MBIE and the unions.
J Harrison has planned the first payments in the 2022/23 financial year and was anticipating this wil be completely
remediated by the end of 2023/24 financial year.
Management left the meeting room at 11.48am to enable the Board to have a discussion with Audit NZ.
L Clarke advised the Board that it was a clean audit opinion apart from the required reference to Covid. There were no
concerns to raise and it was noted that the finance team had worked closely with auditors. The Chair noted that the Board
have a lot of faith in J Harrison, S Cliffe and the team. L Clarke added that she had been wary of the changeover in key
roles, however everything was managed wel .
Management returned to the meeting room at 11.50am
D Chamberlain extended his thanks to F Steyl for all his work, especial y coming in so late in the piece and again extended
his thanks to the Finance team.
Letter of Representation to Audit New Zealand
Motion:
The NZBS Board, noted the receipt of the supporting management Let er of Representation,
approved
the
providing of a Let er of Representation
to Audit NZ and
authorised the digital signatures of the NZBS
Chair and Deputy Chair be af ixed to the
Let er of Representation on behalf of NZBS.
Motion by:
F Pimm
Seconded by: R Lind
Carried:
Al present in favour
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Approving the Financial Statements for the 2019/20 Financial Year
Motion:
The NZBS Board
approved the tabled
Financial Statements reporting a deficit result of $4,848k for the
year ended 30 June 2020 and authorised the digital signatures of the NZBS Chair and Deputy Chair be
affixed to the
2019/20 financial statements on behalf of the Board.
This approval was provided after having confirmed:
• Audit New Zealand was issuing an unmodified Audit Opinion,
• there had been no substantive changes to the previously circulated financial statements other than had
already been advised,
• there were no material misstatements within the financial statements,
• the going concern convention underpinning the financial statements remained a valid assumption for the
foreseeable future, defined as the next 12 months from the date of signing the 2019/20 financial
statements on 3 December 2020.
and in so approving also noted;
• such approval also covered the
2019/20 Annual Statement of Performance,
• the reported result included a nil price rebate declaration to DHBs,
• the Financial Statements wil be made available publicly on the NZBS website, once the NZBS Annual
Report has been presented to the House of Representatives via the Of ice of the Clerk (Bills Office).
Motion by:
B Baker
Seconded by: R Lind
Carried:
Al present in favour
Statement of Responsibility – 2019/20 Financial Year
Motion:
The NZBS Board
approved the 2019/20 Statement of Responsibility as required by the Crown Entities Act
2004 (the Act) and authorised the digital signatures of the NZBS Chair and Deputy Chair be af ixed on behalf
of NZBS to the 2019/20
Statement of Responsibility therein acknowledging the responsibilities NZBS has
under the Act and NZBS compliance with those responsibilities over the 12 months to 30 June 2020.
Motion by:
R Lind
Seconded by: E Moke
Carried:
Al present in favour
Statutory Disclosures
The Chair noted that P Martin was employed at the of ice of the Auditor General.
J Harrison thanked the Board for their support along with the auditors. The Board noted their appreciation for Audit NZ and
the Finance team for getting us through to this stage.
Motion:
that the NZBS Board
approved the 2019/20 Statutory Disclosure document as presented within the Annual
Report and authorised the digital signatures of the NZBS Chair and Deputy Chair be af ixed to the Statutory
Disclosure document on behalf of the Board of New Zealand Blood Service.
Motion by:
R Lind
Seconded by: E Moke
Carried:
All present in favour
E Moke extended her thanks to the management team and particular the Director Finance for achieving three ‘very good’
ratings for a number of years in a row. As a new board member she was proud of the work that has been done. The Chair
agreed it was a good outcome.
Lunch 12.00-12.45pm
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6.3
Annual Policy Reviews
S Cliffe advised that management weren’t suggesting any changes.
6.3.1
NZBS Board Expenses Policy
After a brief discussion the Chair felt that the policy remained fit for purpose and highlighted that no alcohol costs were to
be paid for.
E Moke noted that there is a typo in item 5.2.4 of the policy ‘Alcohol costs wil be not be met by NZBS’.
The NZBS Board acknowledge the policy with the one change noted.
Motion by:
B Baker
Seconded by: E Moke
Carried:
Al present in favour
6.3.2
NZBS Board Code of Conduct
D Chamberlain reminded the Board that the customary method of communications is from the Board to the Chair then to
the Chief Executive. If it is something formal or serious it is always important to revert back to that structure. This keeps
matters simple and transparent. If the Board members communicate with the Chief Executive in less formal circumstances,
they should just copy the Chair in.
The NZBS Board reviewed and noted the NZBS Board Code of Conduct and no changes were made.
Motion by:
F Pimm
Seconded by: R Lind
Carried:
Al present in favour
6.3.3
NZBS Board Conflicts of Interest Policy
D Chamberlain noted it was important to always keep the register of interests up to date.
The NZBS Board reviewed and noted the Board Conflicts of Interest Policy and no changes were made.
Motion by:
E Moke
Seconded by: J Blue
Carried:
Al present in favour
6.4
Conflicts of Interest Policy – NZBS Employees
The NZBS Board received and noted the Conflicts of Interest Policy for NZBS Employees.
6.4.1
Executive Team Conflicts of Interest Register
The Board could not see any issues within the Executive Conflicts of Interest Register.
The NZBS Board received and noted the Executive Team Conflicts of Interest.
6.5
Pricing Guidelines Policy annual review
J Harrison noted the current Pricing Policy is working well for the organisation with a clearly defined process. It was
highlighted that Fusion 5 bought out Mindful who provide the support for the Cognos and Valumax software.
P Martin queried the section in the Policy on the legislative environment as this has changed as of 30 November with
ODNZ now part of NZBS. There is now a new function in section 5 and we have noted an outstanding issue around the
funding model in relation to that section. A fee for service is not relevant in al our functions now. J Harrison commented
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that this was a good point and hadn’t seen the national agency for organ donation sitting under this policy framework
therefore wil add a sentence / paragraph about that up front in the policy.
ACTION 12.3 J Harrison agreed the policy did not take into account funding mechanisms. B Baker queried if this policy would need a
complete re-write if we have to increase our prices? J Harrison responded that we could use the policy as a framework
and accept in the Policy an element of capital recovery in excess of the annual depreciation charge. If we try to fund
significant spend ie three projects, this wil have a significant impost on pricing but still applying the same methodology. S
Clif e suggested that this issue could be best resolved at the end of January Board meeting.
Discussion fol owed on the outstanding funding model for organ donation. An option would be a 10% price levy for a year
acknowledging that this will likely be unpalatable to the DHBs.
J Harrison to come back with adjustments for discussion at the January Board meeting.
ACTION 12.3 6.6
Dead of Lease Renewal – Dunedin Blood Bank
J Harrison advised this was a straight forward renewal. B Baker noted there was no increase in rental.
Motion:
The NZBS Board approved the new Deed of Renewal of Lease for the Dunedin blood bank on the terms
outlined and in so approving nominated the Chair and Deputy Chair to sign the lease documents on behalf
of New Zealand Blood Service.
Motion by:
B Baker
Seconded by: E Moke
Carried:
Al present in favour
6.7
Revised Adverse Financial Event Policy
J Harrison had endeavoured to reflect the discussion at the last Board meeting in the refreshed policy around making an
assessment of the reserve. Currently it is sit ing at $4m and the Policy has been amended to reflect that fact. It was noted
that reserve adequacy wil be reviewed annually as part of the Policy review.
There was discussion around the implications of process migration from CSL Behring and the cost of a loss of a larger
pool size. J Harrison noted that the reserve is a first line of defence, not the complete management of a situation. D
Chamberlain highlighted that receiving the cost of the pool does not actually replace the plasma.
D Chamberlain requested that the phrase self-insurance should not be used and J Harrison agreed to change it to capital
reserve where referenced in the policy document.
Motion:
The NZBS Board formal y reviewed the refreshed Adverse Financial Event policy post Board feedback
and fol owing discussion and above suggested changes approved the reviewed Adverse Financial Events
policy.
Motion by:
B Baker
Seconded by: F Pimm
Carried:
Al present in favour
6.8
Auckland Satel ite Site Business Case - Agreement in Principle to Progress
S Cliffe noted that this document was for discussion, seeking any refinements to secure an agreement in principle to
progress a satellite site. Initial y there were questions about necessity, but after doing the analysis management are now
certain this is needed. S Cliffe believes we need to be the national tissue agency for the country and that there are real
opportunities for us to be self-reliant in some of these things. As we progress with the redevelopment of the building it is
clear that there are underlying issues which mean it is not capable of doing what we need to. Now we have been able to
project the amount of plasma that would go through the facility as wel as the volume and weight, it is apparent that it would
compromise health and safety by not having enough logistics space and the necessary floor loading for these increased
volumes.
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The downside of a satel ite site is how far away it might be. A site close to here has been identified, but there are hurdles
with zoning and potential y its size. Some of the costs incurred by having a satel ite site wil be balanced by developing
71GSR dif erently. S Clif e and J Harrison are both commit ed to this change and think that the business case is compelling.
It was also noted that the team have done the homework and know that what we need can’t be achieved in Christchurch.
F Pimm suggested a partnership with an investor such as Ngāi Tahu for a building development in Auckland. S Cliffe
agreed we need a strong partnership with a landlord and a long term lease, similar to our 30-year lease with Dilworth Trust.
B Baker felt this was a good paper and the issues with the floor loading in logistics were compel ing. There was also good
clarity around the issues with clean rooms and potential for future developments in CarT cel therapy for improving patient
outcomes and services.
D Chamberlain asked if initial y there would be building empty space? S Clif e responded that we might decide to build
four clean rooms but only commission one in the first year. It was highlighted that we are not going to be able to continue
with our current clean rooms in Auckland as Medsafe have informed us that they are no longer compliant under their new
rating system.
There was discussion around where the satel ite site would sit if we prioritised properties within our capital bid? S Clif e
advised that it would sit second with Waikato at the top along and Tauranga in the top three. P Martin commented that this
needs to be clear in the Board papers at the end of January.
S Clif e added that a number of factors had changed since the initial plan was agreed to redevelop 71 Great South Road
in 2018. For instance, CSL Behring have moved the goal posts with regards to pooling sizes. Tissue has arrived sooner
than anticipated eg the heart valve bank. We are two years away from having to be out of Tauranga. S Clif e summarised
that today the Board was being asked to support an agreement in principle to continue work on this business case, in
paral el with bids for funding.
Motion:
The NZBS Board having considered the business case for an Auckland Satel ite site;
1. Approved in principle the establishment of a satel ite site, enabling ongoing scoping and concept
planning to proceed as outlined in this initial business case;
2. Requested that a suitable clinical survey be undertaken in the relevant sectors to gain further
understanding of the clinical requirements and provide a measure of validation to the potential growth
opportunities a satel ite site could address;
3. Planned to seek Ministerial approval to maintain the current Multi-Option Credit Line (MOCL) funding
arrangements on an ongoing basis. The Ministerial approval to be informed of the 2021/22 Budget
and 3-year financial projections currently under preparation.
Motion by:
R Lind
Seconded by: J Blue
Carried:
Al present in favour
6.9
RFP for Supply of Next Generation Sequencing (NGS) kits
S Cliffe noted that this RFP had come to the Board due to the quantum of spend over the life of the kits. The total cost is
S.9 (2) (b) (ii) over the life of this critical product, noting it is in the budget.
Motion:
The NZBS Board having considered the recommendation from the NZBS evaluation panel;
1. Noted that a formal RFP process was operated by NZBS for the purchase of Next Generation
Sequencing (NGS) Kit for Human Leucocyte Antigen (HLA) Typing.
2. Approved NZBS to finalise all contract and related mat ers with S.9 (2) (b) (ii) in the knowledge
the planned spend wil be in the order of S.9 (2) (b) (ii) over 5 years, and
3. Authorised and delegated to the Chief Executive Of icer the authority to execute the finalised contract
with S.9 (2) (b) (ii) on behalf of the New Zealand Blood Service
Motion by:
B Baker
Seconded by: F Pimm
Carried:
Al present in favour
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ITEM 7.0 DISCUSSION PAPERS
7.1
Organisational Risk Register
S Cliffe advised that a new risk has been added around the Waikato blood bank site noting this will be updated with an
action plan. Another new risk wil be added around the Christchurch Blood Bank site.
P Martin commented that the Transition of ODNZ by 30 November (item 9) needs to be updated and perhaps move it to a
higher risk with regards to issues with staf ing levels.
Motion:
The NZBS Board received and noted the organisational risk register.
Motion by:
J Blue
Seconded by: P Martin
Carried:
Al present in favour
ITEM 8.0 MONTHLY / REGULAR REPORTS
8.1
Director Finance’s Report – 4 Months to 31 October 2020 with Ful Year Forecast
J Harrison took the paper as read noting he was happy with how the organisation was travel ing albeit being underpinned
by Covid recoveries money. Reporting earnings saw a surplus of just over $2m with favourable manufacturing variances.
Revenue was just over $13m in line with budget. The CMO is confident Ig will increase in the second half of the year. The
term deposits rol ed over at 1%. There has been a positive recent surge of the $NZ against the $AUS hit ing 0.95c on the
cross rate. The early ful year forecast is for a surplus, bearing in mind we are greatly assisted this year the by Covid
recovery monies. Overall there is a lot happening in the business with the ongoing drive for source plasma and the
restoration of the plasma buf er. November was a steady month and J Harrison is happy with how we are managing the
multitude of projects including ODNZ integration.
E Moke queried if we are separating ODNZ costs? J Harrison advised that they have a separate cost centre and we can
show them separately and in the consolidated position. There is an element of overhead costs being incurred and we are
capturing those additional costs, noting that there will be inevitable transition costs. To date there have been many
additional costs including, privacy, legal, time recording, a business analyst and moving costs, which the Blood Service
was absorbing. J Harrison added Finance had established granularity around direct and indirect costs for ODNZ. The
Holidays Act compensation for ODNZ remains with ADHB for employees prior to 30 November 2020.
Motion:
The Board received and noted the Director Finance’s report.
Motion by:
E Moke
Seconded by: F Pimm
Carried:
Al present in favour
ITEM 9.0 INFORMATION PAPERS
9.1
Quarter 1 Ministry Monitoring Report
S Clif e noted the Ministry is moving to a dif erent reporting format. J Harrison has been sit ing in on Ministry meetings with
other Crown entities around the new format noting, however a standard form is proving chal enging for MOH as the
agencies al have dif erent sets of drivers.
The Board Chair received and noted the Quarter 1 Monitoring Report provided to the Ministry of Health.
ITEM 10.0 CORRESPONDENCE
10.1
Response letter from Director General re Roles & Functions for Organ Donation
The response letter from Director General re Roles & Functions for Organ Donation dated 11 November 2020 was noted
by the Board.
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ITEM 12.0 GENERAL BUSINESS
J Blue noted that she has had message from Andy Tookey around organ donation rates.
ITEM 13.0 BOARD MATTERS
13.1
Board Work Programme and Calendar 2020
The NZBS Board Work Programme and Calendar 2020 was taken as read.
13.2
NZBS Board Member Tenure Timetable
The NZBS Board Member Tenure Timetable was taken as read.
13.3
Confirmed Board meeting dates 2021
The NZBS Board meeting dates for 2021 were taken as confirmed.
ITEM 14.0 NEXT MEETING
The next Board meeting wil be a Video Conference on Thursday 28 January 2021 where the first version of the 2021/22
Budget wil be presented.
Close of Meeting: The meeting closed 2.20pm
Certified as a true and correct record:
________________________________
David Chamberlain – Board Chairman
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