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ACT Welcomes PM’s Report On Waipareira Trust

ACT Leader Hon Richard Prebble welcomes the Department of the Prime Minister and Cabinet (DPMC) report into Waipareira Trust’s administration of Government programs.

The report highlighted the problems that the Trust and other voluntary organisations have had in being accountable for the delivery of taxpayer funded social programs.

“It appears that all Government departments have had difficulties, but they don’t seem to have communicated which would have resulted in earlier action being taken.

“The issues identified are significant;”

 Department of Work and Income (DWI)

DWI reports that staff ‘may have become confused as to where their accountabilities lay.’ The Prime Minster’s office believes ‘it is quite surprising that their ongoing evaluation and monitoring functions did not more readily identify concerns and deal with them in a more timely fashion.’

 Skill New Zealand (SNZ)

SNZ reported ‘lapses in the Waipareira Trust’s standards of administration reporting and record-keeping .’

 Department of Corrections (DoC)

DoC commented ‘on difficulties with the Waipareira Trust dating back to 1998. The Department of Corrections continues to be concerned about the content, quality and timeliness of the financial reports from the Waipareira Trust.’

 Department of Child, Youth and family Services (CYFS)

‘Issues raised by CYFS in relation to Waipareira Trust included incomplete income reconciliation, koha payments authorised by the financial controller instead of the Chief executive, a contract signed after the services were delivered and two employees wrongly entering contracts in their own capacity.’

 Health Funding Authority (HFA(

‘The HFA has experienced a number of issues with the Waipareira Trust, including concerns that the Waipareira Trust was not meeting its contract obligations. The HFA also identified administrative inaccuracies in payments from the Waipareira Trust.
 Early Childhood Development

‘…concerns related to delivery of contracts under target. The financial penalty was not invoked because of staff turnover.

 Ministry of Education (MED)

“Waipareira Trust failed on a number of occasions to provide and respond to the MED’s feedback on their quarterly reports as required by the contract.


“The DPMC said ’these concerns centred primarily on poor administrative systems, inadequate information held by the Waipareira Trust and underdeveloped financial and outcome reporting.

“The end result is that the DPMC believes there has clearly been a lack of transparency and accountability. They point out however, that these problems are not unique to Waipareira Trust.

“The Coalition’s closing the gaps strategy is dependant on voluntary organisations, like Waipareira Trust, delivering substantial, taxpayer funded social programs.

“This issue is a demonstration of the importance of Parliamentary scrutiny. If the ACT party had not raised our concerns, which the report shows were justified, the Coalition would have gone ahead with a significant purchase of social programs administered by voluntary organisations.

“New Zealand could then have discovered in three years time that great sums of taxpayer money had been wasted.

“It now appears that because of ACT’s initiative there will be better accountability processes, better book keeping, stronger capacity and hopefully better outcomes for Government social programs.

“If that is the result, I will personally be very pleased,” said Hon Richard Prebble.

ENDS

Richard Prebble is away at Caucus Retreat. To get in contact with him please contact his Press Secretary Mike Lorigan on (025) 203 3231. Thanks

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