Latest news with #RiskandAssuranceCommittee
Scoop
11-07-2025
- Business
- Scoop
Council Accepts Report Into Community Facilities Overspend And Commits To Enhanced Controls
Ruapehu District Council's Risk and Assurance Committee has accepted the recommendations of a comprehensive report into the $700,000 overspend in the Community and Recreational Facilities activity area. The report, prepared by Executive Manager Finance and Strategy Quentin Speers, examined all aspects of how the overspend occurred and outlined the corrective actions required to prevent a recurrence. A five-member team undertook an in-depth review, looking into operational decision-making, supplier management, contract cost escalation, and compliance to procurement policy. Mr Speers said that in response to the overspend, Council has moved swiftly to enhance project and contract management processes. 'The proposed improvements underway include better budget oversight, tighter contract and conflict of interest management, stronger project governance, increased staff training, and the improved use of technology,' he said. The investigation found that several weaknesses in project management and internal controls were further exacerbated by the limitations of Council's existing financial system. This system is due to be replaced within the next 12 months. The new Datascape Financial System will provide greater visibility and control by enabling Council to assign and monitor expenditure more accurately against specific projects within each activity area - something not possible under the current system. Chief Executive Clive Manley acknowledged the review team for their efforts in untangling what he described as 'a complex web of interrelated systems, decisions and events' to uncover the root causes of the overspend and develop a plan to move forward. With the Risk and Assurance Committee accepting the report's findings and recommendations, the next phase of the investigation will examine the role of staff and suppliers, the rationale behind key decisions, and any further actions that may be necessary. As key staff have been on extended leave, this aspect of the investigation has not been possible until now. To ensure transparency and community confidence, this phase will be overseen by an independent specialist, appointed in agreement with the mayor and the independent Chair of the Risk and Assurance Committee. Mr Manley noted that this next stage may take some time, and he will not be making further comment until the process is complete. 'It's important that the investigation is allowed to follow due process, and I urge people not to jump to conclusions. This needs to be a fair and impartial process for everyone involved,' he said. 'This has been a very challenging time for Council, both for elected members and staff. I would like to thank them for their professionalism throughout. While this overspend occurred in one activity area, the learnings will be applied across all of Council's operations. 'The community should have confidence that the strengthened controls and reporting mechanisms will provide the necessary disciplines to significantly reduce the risk of any future unauthorised overspend occurring.'
Scoop
08-05-2025
- Business
- Scoop
Carterton's Urban Ratepayers To Cop Double-Digit Rates Rise
Despite Carterton's rate take signalled to rise 8.6%, urban ratepayers will likely cop twice that. At Wednesday's Risk and Assurance Committee, Carterton councillor Steve Laurence said the council was facing reputational risk with the incoming rates rise due to increased depreciation funding for water assets. 'We are telling people, and they are expecting, an increase of 8.6%, but in fact almost everybody in urban Carterton is going to get a rates rise of about twice that,' he said. He declared a conflict of interest as a commercial ratepayer before saying the commercial rates rise would likely be 25%, 'on top of the 25% increase last year'. 'I'm not sure that is the best possible sector to be dealing with that.' The draft annual plan was included in the agenda for the committee meeting but the rates examples page was blank. The estimated rates intake rise for the 2025-26 year in the Long-Term Plan was about 13% but the council had found savings to bring it to 8.6%. Deputy Mayor Steve Cretney said because of this, the council's reputational risk had 'reduced somewhat', but he understood where Laurence was coming from. Council chief executive Geoff Hamilton said the council's depreciation reserves for waters was 'depleted'. The council was currently charging 50% depreciation and this would increase to 75% in 2025-26 and 100% the year after. Hurunui-o-Rangi Marae representative Marty Sebire said 'to an extent, the chickens are coming home to roost from a decision in 2012 when it was decided to not fully fund depreciation and so the reserve hasn't built up'. 'And again in 2018 when there was a decision to fund even less depreciation. 'They were political decisions, not accounting decisions.' Lawrence said because water assets were urban, the 8.6% overall rates rise meant 'practically zero' rates rises for rural properties, and 'twice that 8.6% in the urban area'. Councillor Grace Ayling agreed that the reality of the 8.6% rates rise was a 'huge reputational risk'. 'It's little comfort to anyone who will receive their rates bill who had a whopping bill last year and the year before and the year before. 'We're taking from the same pool of people that can't afford this level of rates increase. 'The fact that there has been a theoretical 5% saving doesn't make people feel happier and the 8.6 is more like 15% for a lot of people who live in town which is half of our constituents.' She said the council was 'living outside its means and continually putting money into projects that aren't waters, roading, and key infrastructure'. 'Our ratepayers can't afford to keep doing this.' The final Draft Annual Plan 2025-26 would be presented to council for adoption on May 14. Subsequent to the adoption of the Annual Plan, the rates resolution for setting the 2025/26 rates would also be presented for adoption. – LDR is local body journalism co-funded by RNZ and NZ On Air.
