Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Council draws line under shambles

Council draws line under shambles

http://www.themud.co.nz/#!shambles/cbxc

9 May 2013

A review by accounting giant Price Waterhouse Coopers has found current management at the Rotorua District Council cannot fully reconcile the previous management's financial assumptions.

The report into the review was released at the RDC on 8 May in a presentation headed by Mayor Steve Chadwick and Chief Executive Officer Geoff Williams.

The review cost $45,000 and the mayor was able to feel vindicated after being criticised when it was launched following her election in November 2013.

The review focussed on processes and the adequacy of past financial disclosures made to elected members and those made to the public during previous long-term plan and annual report processes, a council statement said.

"It confirms an overly complex and ineffective RDC financial reporting culture at the time, which hampered decision-making against a backdrop of rising costs and reducing revenue."

Asked by The Mud as to whether there was any suggestion that this complexity was seen as being in any way deliberate, Steve Chadwick denied this and added: "This report confirms that there was nothing covertly omitted from councillors."

Councillors who were serving at the time have been strongly criticised for not placing under greater scrutiny, what the review calls, the administration’s "overly complex and ineffective RDC financial reporting culture".

"I believe from this (review report) that it was an overly complex financial structure which the councillors dived into and loved the detail, and missed the critical issue, which was trends," the mayor said.

The previous reporting systems appear to have been so difficult to fathom that the new management team of CEO Geoff Williams and chief financial officer Dave Foster ended up drawing a line under December 2013 and starting afresh.

This is highlighted in the final statement in the report that "Neither the [new] financial nor operational management have been able to fully reconcile the assumptions put forward by the previous executive."

Asked by The Mud what this statement meant - given in accounting terms failing to reconcile meant things did not add up - Dave Foster said the new team came to the conclusion it was better to try to put [the situation] right rather than try to reconcile the history of what had occurred previously.

He had been doing this work for 25 years, and people had said he was good at it, but he could not get to the bottom of [what had happened].

"What we had to turn our minds to is what we need to do to put it right, so our reconciliation is very much focused on: What are we currently doing? what are we currently spending? and what are realistic numbers across each one of the activities that we deliver."

The new executive team had done three forecasts but had not tried to tie them back to the past and reconcile it, because "We don't actually see any future merit in that.'

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news