Latest news with #SimpsonGrierson
1News
22-07-2025
- Business
- 1News
Council rates error caused by lack of financial reporting knowledge
An external review following a New Plymouth District Council rates GST blunder — which could've cost it $20 million in lost revenue — indicates key managers may not have a sufficiently sophisticated understanding of the rating process and its impacts. The Simpson Grierson review found the council lacked financial reporting and modelling capability which "strongly suggests a need for training, and possibly recruitment/restructure and training". Council chief executive Gareth Green conceded an earlier restructure — which saved the district council $10 million — played a part in the error. "That necessitated some significant pressure being applied through the business. "I think that pressure along with other pressure points in the local government sector has contributed to this [mistake] occurring, so certainly the pressure that restructure has applied has had an impact, most definitely." ADVERTISEMENT He was instigating another restructure designed to bring more financial and local government experience to council staff. Green said this would result in a "small number of job losses" due to new positions being created. He wasn't thinking about falling on his sword. "I do take full responsibility for this, but I am not tendering my resignation at the current time. "My total focus at this point is leading this organisation through this situation and making sure we can resolve it in the best possible way." The Simpson Grierson review also uncovered two further bungles. It revealed the council hiked average residential rates 12.8% rather than 9.9% as advertised. ADVERTISEMENT Summary: The morning's headlines in 90 seconds, including death of a The Cosby Show actor, vape product recalled, and how working less makes us feel better. (Source: Breakfast) The gaffe equated to $102 per ratepayer or $3.1 million. The review also identified an annual plan wording error relating to industrial water use which could've cost council a further $1.4 million in lost revenue. In his report, consultant Jonathan Salter said sophisticated knowledge and understanding of the rating process and rating impacts tended to be the domain of specialist officers with a long-standing understanding of the rating function. These staff were usually intimately familiar with the council's financial reporting and modelling systems, the valuation and rating information database and the district itself, he said. "There appears to have been a lack of capability in these two areas. This strongly suggests a need for training, and possibly recruitment/restructure and training." New Plymouth Mayor Neil Holdom. (Source: ADVERTISEMENT Mayor Neil Holdom said one reason why he called for an independent review when the GST error was discovered was so council could learn from its mistakes. "I just want to make it clear the councillors — the governance team — made decisions based on information that was incorrect. "Our long-term plan was audited by Audit NZ and they also didn't pick up this error in our rating calculation model." Holdom said the proposed restructure would bolster the financial capability and bring people onboard council with local government experience. The Simpson Grierson report also recommended an independent legal review be a component of the annual rate setting process, and that council not rely on the Audit NZ review alone. Holdom said an extra-ordinary meeting on July 22 would consider a proposal for future annual-plan and long-term plan calculations to be externally peer reviewed as part of a parcel of steps to address the recent errors. Salter also wanted the council to review how it handled documents. ADVERTISEMENT "It appears that document management may have been an issue... the restricted water supply targeted rate issue appears to have arisen from an incorrect 'cut and paste' from another document." Holdom earlier described the GST blunder as a "typo" and a "cut and paste" error. The Simpson Grierson consultant also thought council should consider moving away from an average residential rates model to an overall rates model. "This would be a more transparent and certain disclosure. If there is reference to the 'average' rather than 'overall' rates increase, this concept should be defined." At the extraordinary council meeting on July 22, the mayor would recommend councillors approve a one-off rates refund to all residential property owners to ensure the average residential rates increase equalled 9.9%. That would require council to find $3.1 million in savings elsewhere. Councillors would also vote on amending the rates resolution wording regarding properties on a restricted water flow — usually industrial users — to ensure council was able to charge $418 for each cubic metre of water as intended. ADVERTISEMENT
RNZ News
21-07-2025
- Business
- RNZ News
New Plymouth rates blunder caused by lack of financial reporting knowledge
New Plymouth District Council chief executive Gareth Green concedes an earlier restructure played a part in the error. Photo: Taupō District Council / Supplied An external review following a New Plymouth District Council rates GST blunder - which could've cost it $20 million in lost revenue - indicates key managers may not have a sufficiently sophisticated understanding of the rating process and its impacts. The Simpson Grierson review found the council lacked financial reporting and modelling capability which "strongly suggests a need for training, and possibly recruitment/restructure and training". Council chief executive Gareth Green conceded an earlier restructure - which saved the district council $10 million - played a part in the error. "That necessitated some significant pressure being applied through the business. "I think that pressure along with other pressure points in the local government sector has contributed to this [mistake] occurring, so certainly the pressure that restructure has applied has had an impact, most definitely." He was instigating another restructure designed to bring more financial and local government experience to council staff. Green said this would result in a "small number of job losses" due to new positions being created. He wasn't thinking about falling on his sword. "I do take full responsibility for this, but I am not tendering my resignation at the current time. "My total focus at this point is leading this organisation through this situation and making sure we can resolve it in the best possible way." The Simpson Grierson review also uncovered two further bungles . It revealed the council hiked average residential rates 12.8 percent rather than 9.9 percent as advertised. The gaffe equated to $102 per ratepayer or $3.1 million. The review also identified an annual plan wording error relating to industrial water use which could've cost council a further $1.4 million in lost revenue. In his report, consultant Jonathan Salter said sophisticated knowledge and understanding of the rating process and rating impacts tended to be the domain of specialist officers with a long-standing understanding of the rating function. These staff were usually intimately familiar with the council's financial reporting and modelling systems, the valuation and rating information database and the district itself, he said. "There appears to have been a lack of capability in these two areas. This strongly suggests a need for training, and possibly recruitment/restructure and training." New Plymouth Mayor Neil Holdom. Photo: RNZ / Robin Martin Mayor Neil Holdom said one reason why he called for an independent review when the GST error was discovered was so council could learn from its mistakes. "I just want to make it clear the councillors - the governance team - made decisions based on information that was incorrect. "Our long-term plan was audited by Audit NZ and they also didn't pick up this error in our rating calculation model." Holdom said the proposed restructure would bolster the financial capability and bring people onboard council with local government experience. The Simpson Grierson report also recommended an independent legal review be a component of the annual rate setting process, and that council not rely on the Audit NZ review alone. Holdom said an extra-ordinary meeting on 22 July would consider a proposal for future annual-plan and long-term plan calculations to be externally peer reviewed as part of a parcel of steps to address the recent errors. Salter also wanted the council to review how it handled documents. "It appears that document management may have been an issue ... the restricted water supply targeted rate issue appears to have arisen from an incorrect 'cut and paste' from another document." Holdom earlier described the GST blunder as a "typo" and a "cut and paste" error. The Simpson Grierson consultant also thought council should consider moving away from an average residential rates model to an overall rates model. "This would be a more transparent and certain disclosure. If there is reference to the 'average' rather than 'overall' rates increase, this concept should be defined." At the extraordinary council meeting on 22 July, the mayor would recommend councillors approve a one-off rates refund to all residential property owners to ensure the average residential rates increase equalled 9.9 percent. That would require council to find $3.1 million in savings elsewhere. Councillors would also vote on amending the rates resolution wording regarding properties on a restricted water flow - usually industrial users - to ensure council was able to charge $418 for each cubic metre of water as intended. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
21-07-2025
- Business
- RNZ News
New Plymouth District Council rates blunder caused by lack of financial reporting knowledge
New Plymouth District Council chief executive Gareth Green concedes an earlier restructure played a part in the error. Photo: Taupō District Council / Supplied An external review following a New Plymouth District Council rates GST blunder - which could've cost it $20 million in lost revenue - indicates key managers may not have a sufficiently sophisticated understanding of the rating process and its impacts. The Simpson Grierson review found the council lacked financial reporting and modelling capability which "strongly suggests a need for training, and possibly recruitment/restructure and training". Council chief executive Gareth Green conceded an earlier restructure - which saved the district council $10 million - played a part in the error. "That necessitated some significant pressure being applied through the business. "I think that pressure along with other pressure points in the local government sector has contributed to this [mistake] occurring, so certainly the pressure that restructure has applied has had an impact, most definitely." He was instigating another restructure designed to bring more financial and local government experience to council staff. Green said this would result in a "small number of job losses" due to new positions being created. He wasn't thinking about falling on his sword. "I do take full responsibility for this, but I am not tendering my resignation at the current time. "My total focus at this point is leading this organisation through this situation and making sure we can resolve it in the best possible way." The Simpson Grierson review also uncovered two further bungles . It revealed the council hiked average residential rates 12.8 percent rather than 9.9 percent as advertised. The gaffe equated to $102 per ratepayer or $3.1 million. The review also identified an annual plan wording error relating to industrial water use which could've cost council a further $1.4 million in lost revenue. In his report, consultant Jonathan Salter said sophisticated knowledge and understanding of the rating process and rating impacts tended to be the domain of specialist officers with a long-standing understanding of the rating function. These staff were usually intimately familiar with the council's financial reporting and modelling systems, the valuation and rating information database and the district itself, he said. "There appears to have been a lack of capability in these two areas. This strongly suggests a need for training, and possibly recruitment/restructure and training." New Plymouth Mayor Neil Holdom. Photo: RNZ / Robin Martin Mayor Neil Holdom said one reason why he called for an independent review when the GST error was discovered was so council could learn from its mistakes. "I just want to make it clear the councillors - the governance team - made decisions based on information that was incorrect. "Our long-term plan was audited by Audit NZ and they also didn't pick up this error in our rating calculation model." Holdom said the proposed restructure would bolster the financial capability and bring people onboard council with local government experience. The Simpson Grierson report also recommended an independent legal review be a component of the annual rate setting process, and that council not rely on the Audit NZ review alone. Holdom said an extra-ordinary meeting on 22 July would consider a proposal for future annual-plan and long-term plan calculations to be externally peer reviewed as part of a parcel of steps to address the recent errors. Salter also wanted the council to review how it handled documents. "It appears that document management may have been an issue ... the restricted water supply targeted rate issue appears to have arisen from an incorrect 'cut and paste' from another document." Holdom earlier described the GST blunder as a "typo" and a "cut and paste" error. The Simpson Grierson consultant also thought council should consider moving away from an average residential rates model to an overall rates model. "This would be a more transparent and certain disclosure. If there is reference to the 'average' rather than 'overall' rates increase, this concept should be defined." At the extraordinary council meeting on 22 July, the mayor would recommend councillors approve a one-off rates refund to all residential property owners to ensure the average residential rates increase equalled 9.9 percent. That would require council to find $3.1 million in savings elsewhere. Councillors would also vote on amending the rates resolution wording regarding properties on a restricted water flow - usually industrial users - to ensure council was able to charge $418 for each cubic metre of water as intended. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
17-07-2025
- Business
- RNZ News
Council $3.1m rates blunder: New Plymouth households could be overcharged by $102
The New Plymouth District Council building. File photo. Photo: RNZ / Robin Martin An urgent review of New Plymouth District Council's (NPDC) annual plan has revealed that it has hiked residential rates by 12.8 percent, rather than the 9.9 percent indicated. The blunder equates to $102 per ratepayer or $3.1 million. The error was discovered as part of a review ordered when the NPDC approved its annual plan in May, exclusive of GST, meaning it could've forgone $20m in revenue. New Plymouth Mayor Neil Holdom took personal responsibility for the mistakes and recommended that councillors approve a one-off rebate for ratepayers at an extraordinary meeting next week. That would require the NPDC to find $3.1 million in savings elsewhere. It was not the only mistake in the latest review. The review and subsequent report produced by Simpson Grierson also identified a resolution wording error relating to industrial water use. The rates resolution wording would need to be amended to ensure properties on a restricted water flow were able to be charged $418 for each cubic metre of water as intended. This gaffe could've cost the council $1.4m in lost revenue. Holdom said he was extremely disappointed by the errors and the impact they could have had on the community. "As mayor, I take responsibility for the integrity of the information we use to make decisions. Councillors acted in good faith based on the data presented to us. "We now know that information was flawed, and the safeguards we had to verify the validity of that information and the assumptions behind it have failed. "I want to offer my sincere apology to our community. You deserve better. The buck stops with me, and I am committed to ensuring we learn from this, fix the underlying issues, to rebuild public confidence and find a way to put this right." Holdom said the reporting errors did not affect the validity of the rates, but the council was taking action to mitigate their impact. At an extraordinary meeting on 22 July, the NPDC council would decide between the following options: Holdom said improvements to NPDC's internal processes and checks would be implemented immediately following the findings of the independent review. Chief executive Gareth Green proposed structural changes to strengthen financial capability and oversight within the organisation. "On behalf of the NPDC organisation, I wish to offer my sincere apologies to the mayor and councillors, and our entire community, for the failure of our systems and processes that led to these errors." "As the leader of the staff organisation of NPDC, it is my responsibility to ensure that we have adequate safeguards to ensure that every piece of advice we provide our elected members is accurate and robust. "That clearly has not been the case in this instance, and this failing shows that change is required." Green said he was committed to implementing changes swiftly and building back the trust and confidence of the community. Holdom said councillors would also be asked to update council policy to implement an independent review of all future financial plans. "This situation highlights the risks of insufficient specialist financial experience, particularly in local government." Holdom said that while Audit NZ signed off on the long-term planning process that included the incorrect rating assumption, "the community rightly expects that process to provide assurance [that] the underlying models and data are robust". "That assurance did not eventuate in this case. We owe it to our community to be honest, to take ownership, and to do better. That's exactly what we are doing." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
17-07-2025
- Business
- RNZ News
Council $3.1m rates blunder: New Plymouth households overcharged by $102
The New Plymouth District Council building. File photo. Photo: RNZ / Robin Martin An urgent review of New Plymouth District Council's (NPDC) annual plan has revealed that it has hiked residential rates by 12.8 percent, rather than the 9.9 percent indicated. The blunder equates to $102 per ratepayer or $3.1 million. The error was discovered as part of a review ordered when the NPDC approved its annual plan in May, exclusive of GST, meaning it could've forgone $20m in revenue. New Plymouth Mayor Neil Holdom took personal responsibility for the mistakes and recommended that councillors approve a one-off rebate for ratepayers at an extraordinary meeting next week. That would require the NPDC to find $3.1 million in savings elsewhere. It was not the only mistake in the latest review. The review and subsequent report produced by Simpson Grierson also identified a resolution wording error relating to industrial water use. The rates resolution wording would need to be amended to ensure properties on a restricted water flow were able to be charged $418 for each cubic metre of water as intended. This gaffe could've cost the council $1.4m in lost revenue. Holdom said he was extremely disappointed by the errors and the impact they could have had on the community. "As mayor, I take responsibility for the integrity of the information we use to make decisions. Councillors acted in good faith based on the data presented to us. "We now know that information was flawed, and the safeguards we had to verify the validity of that information and the assumptions behind it have failed. "I want to offer my sincere apology to our community. You deserve better. The buck stops with me, and I am committed to ensuring we learn from this, fix the underlying issues, to rebuild public confidence and find a way to put this right." Holdom said the reporting errors did not affect the validity of the rates, but the council was taking action to mitigate their impact. At an extraordinary meeting on 22 July, the NPDC council would decide between the following options: Holdom said improvements to NPDC's internal processes and checks would be implemented immediately following the findings of the independent review. Chief executive Gareth Green proposed structural changes to strengthen financial capability and oversight within the organisation. "On behalf of the NPDC organisation, I wish to offer my sincere apologies to the mayor and councillors, and our entire community, for the failure of our systems and processes that led to these errors." "As the leader of the staff organisation of NPDC, it is my responsibility to ensure that we have adequate safeguards to ensure that every piece of advice we provide our elected members is accurate and robust. "That clearly has not been the case in this instance, and this failing shows that change is required." Green said he was committed to implementing changes swiftly and building back the trust and confidence of the community. Holdom said councillors would also be asked to update council policy to implement an independent review of all future financial plans. "This situation highlights the risks of insufficient specialist financial experience, particularly in local government." Holdom said that while Audit NZ signed off on the long-term planning process that included the incorrect rating assumption, "the community rightly expects that process to provide assurance [that] the underlying models and data are robust". "That assurance did not eventuate in this case. We owe it to our community to be honest, to take ownership, and to do better. That's exactly what we are doing." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
