DCC internal audits

audit bad news toon-1682 [glasbergen.com] 1

### ODT Online Wed, 4 Mar 2015
Council plans sweeping internal audit
By Chris Morris
An outside company will be paid to pry into every corner of the Dunedin City Council in the wake of the Citifleet fraud. The move came as members of the council’s audit and risk subcommittee yesterday endorsed two new policies designed to better protect the organisation from fraud.
Read more

### ODT Online Tue, 3 Mar 2015
Look at audit, disposal policies
By Chris Morris
The Dunedin City Council is continuing to close the gaps in its defences in the wake of the $1.5 million Citifleet fraud. Councillors at today’s audit and risk subcommittee meeting will consider a new internal audit policy, and an updated asset disposal and write-off policy, which aimed to better protect the organisation against fraud.
Read more

The Council’s audit and risk subcommittee:
Susie Johnstone (Chairperson), Janet Copeland, Councillors Chris Staynes, Richard Thomson, Hilary Calvert and Mayor Dave Cull (Ex-Officio Member)

Agenda – Audit – 03/03/2015 (PDF, 105.3 KB)

Report – Audit – 03/03/2015 (PDF, 164.7 KB)
Audit and Risk Subcommittee Work Plan

Report – Audit – 03/03/2015 (PDF, 63.2 KB)
Governance/Financial Policies

Report – Audit – 03/03/2015 (PDF, 363.9 KB)
Updated Internal Audit Policy (Draft)

Report – Audit – 03/03/2015 (PDF, 216.7 KB)
Updated Asset Disposal and Write-off Policy and Procedures

Report – Audit – 03/03/2015 (PDF, 1.7 MB)
Significance and Engagement Policy

Report – Audit – 03/03/2015 (PDF, 38.1 KB)
Long Term Plan Update

audit keep calm [pinimg.com] 1

Posted by Elizabeth Kerr

*Images: glasbergen.com – bad news toon-1682; pinimg.com – keep calm


Filed under Business, Citifleet, DCC, Democracy, Economics, Media, New Zealand, People, Politics, What stadium

16 responses to “DCC internal audits

  1. Mike

    I’d love to comment on that most recent ODT story … but obviously it’s a sensitive issue and they’ve disabled comments ….

    I hope the auditors will try and track down the hole in the finances that causes our rates to go up at a higher rate than inflation year after year for over a decade now …. it’s as if our water system had a big leak somewhere, slowly getting bigger, and water just kept going missing, in order to keep the same amount of water coming out of our taps they keep having to pour more and more in from the reservoir … if we’re lucky the auditors will find and close this leak and we can return to some long term sanity in our finances.

  2. Whippet

    Will this audit investigate those within council who may have dodgy connections to the city water supply, both past and present, or is that a hands off area ?

  3. Calvin Oaten

    Auditors won’t have to look far if they want to see what Mike asks is the cause of our rates going up at a higher rate than inflation year after year. Problem is they won’t want to see that, they will only be briefed to vet systems and processes. No, if you start at the premise that the ‘consolidated debt’ sits at around $600 million (don’t be fooled by the claimed reductions) and an average interest rate of 5% is levied then that means that starting on July 1st each year there has to be $30 million found and exported out to the banking industry. Gone from Dunedin’s treasure. And when you look at the debt funded non-performing investments (I was going to say assets) like the Stadium, Town Hall Conference Centre, Cycleways and the Otago Settlers Museum, there is a large part of the answer. Look also at the constant life-giving infusions of capital necessary to keep the Stadium breathing. Rates, Subvention payments from Aurora, Injections of capital by the DCC in the guise of paying up uncalled shares, Events promotion monies from the DCC, all in the vain hope that the patient might stop vomiting and lose its deathly pallor. Now auditors are ‘bean counters’ not doctors, it is not for them to decide that any endeavour has terminal cancer or not, just simply to see that it takes its medicine as prescribed in the proper format. It is the elected Mayor, Councillors and Administration heads, whose duty it is see that the city is run on a prudential basis in the best interests of the citizens. That they are, and have been, derelict in these endeavours over the last fifteen years is amply manifest.

  4. Elizabeth

    Comment at ODT Online: [how did some of this get past the censors ???]

    [loud applause]

    Pass me the sick-bucket
    Submitted by JimmyJones on Thu, 05/03/2015 – 2:50pm.

    Only in the ODT are we reminded that everything the DCC does smells like roses and the glass is always two-halves full. This story purports to be news but starts with a promotional statement about how the DCC are “continuing to close the gaps in its defences”. This makes the wrong assumptions that the DCC has already done something effective to “close the gaps” and that now they are doing it again, and also that those gaps are actually closing. Cont./

    {In-comment link added. -Eds}

  5. JimmyJones

    DCC Draft Long Term Plan rejected by auditor. It was revealed at the council meeting (16/3/15) that the draft LTP had failed its review by Audit NZ.

    Because Audit NZ takes a collaborative/appeasement based approach to the DCC, the transgressions must have been quite serious for them to stop the LTP process. Normally transgressions are dealt with by a secret negotiation without any publicity. This time it is also being dealt with without any publicity because:
    » the ODT reporters that attended the meeting are too stupid to decode the simple spin-doctoring, and because
    » Allied Press also has a collaborative/appeasement based approach to the DCC and appear to not publish anything not approved by the DCC’s Macarena spin-doctor team.

    In deciding to keep audit failures secret from the public, Audit NZ needs to remember that their duty is to the renters, ratepayers and taxpayers and not the likes of Dave Cull, Sue Bidrose and Grant McKenzie.

  6. JimmyJones

    After a week of negotiations between the DCC and Audit NZ, the draft LTP is now ready to be approved for consultation by the councillors. Because the process is secret, we don’t really know to what degree that the LTP is now legal, and what level of compromise was acceptable to Audit NZ. The Auditor-General employs Audit NZ and it should tell us if it believes that the law should be negotiable.

    Secret audits look to me like something that the Audit and Risk Subcommittee (ARS) should be dealing with (if their attitude to openness and honesty was genuine).

    The draft LTP is scheduled for adoption tomorrow (Tues 24/3/15, 12.00 pm) at an extraordinary council meeting. There is an agenda and 3 other documents available.

  7. Elizabeth

    Dunedin City Council Extraordinary Meeting 24 March 2015
    Commencing at 12.00 NOON
    Council Chamber, Municipal Chambers

    Agenda – Council – 24/03/2015 (PDF, 28.3 KB)
    Extraordinary Meeting

    Agenda Item 4
    Report from the General Manager Services and Development (Simon Pickford).
    Refer to pages 4.1 – 4.8.
    Supporting documents and consultation document circulated separately and are also
    available on the Dunedin City Council website.
    Please also bring with you to the meeting the plastic document wallet of LTP documents previously distributed.
    Reports and recommendations contained in this agenda are not to be considered as Council policy until adopted.

    Report – Council – 24/03/2015 (PDF, 176.8 KB)
    Adoption of Draft Long Term Plan 2015/16 – 2024/25 Supporting Documents and Consultation Document

    Report – Council – 24/03/2015 (PDF, 2.8 MB)
    Adoption of Draft Long Term Plan 2015/16 – 2024/25 Supporting Documents and Consultation Document

    Attachment 7 – Dunedin City Council Draft Long Term Plan Consultation document for adoption 24 March 2015

    Report – Council – 24/03/2015 (PDF, 2.4 MB)
    Adoption of Draft Long Term Plan 2015/16 – 2024/25 Supporting Documents and Consultation Document

    Draft Infrastructure Strategy for adoption 24 March 2015 (replaces previously issued document)

  8. Calvin Oaten

    The Audit and Risk Subcommittee (ARS) DUH!!!? That is where Crs Richard Thomson and Chris Staynes hibernate scheming how best to kneecap Cr Lee Vandervis. They wouldn’t know what to audit, or their arses from their elbows. The whole place is a disorganised shambles, no wonder Audit NZ have their antennae tuned.

    • JimmyJones

      Calvin, I think you are right. Have you noticed how they avoid calling the Audit and Risk Subcommittee, “ARS” and prefer “ARC” (“C” for Committee – which it isn’t).

  9. Lyndon Weggery

    Draft LTP released tomorrow and still no word on whether or not empirical evidence has been collected by Council staff for Councillors to support the dubious claim in the November 2014 Stadium Review report that the operations of the New Stadium are worth $60M pa to the Dunedin economy. No wonder Audit NZ are concerned about DCC finances!!!

  10. Calvin Oaten

    Come on Lyndon, just the Fleetwood Mac show alone is worth $8 to $10 million. I know because Terry Davies said so.

  11. Elizabeth

    ### dunedintv.co.nz March 24, 2015 – 5:55pm
    Draft long term plan approved for public consultation
    The Dunedin City Council has approved its draft long term plan for public consultation, despite several concerns over the document.

  12. Lyndon Weggery

    It is interesting to read the comments of two of the younger Councillors (Hawkins and MacTavish) about the draft LTP in today’s ODT. Saddled with subsidizing the New Stadium costs they are now only realizing that to keep faith to the self-imposed aim to keep rates rises to no more than 3% pa cuts to services or further rates rises are inevitable. That’s why the recent Stadium Review has so let down the ratepayers and residents of Dunedin. To transfer a further $30M of Stadium debt back to the Council and recommend a further ratepayer subsidy of $1.32M is of course going to put our operational finances under extreme pressure. A golden opportunity was lost to face up to reality and sheet home the cost of this “albatross” around our necks to the ones in the community who benefit the most from it – the rugby supporters paying the true cost of a ticket to games and making sure every concert pays its own way. Otherwise our finances will further deteriorate and any further new projects will have to be put on hold until the finances improve. As I have pointed out to Council on many occasions Dunedin has an ageing population with increasing numbers of baby boomers moving into full retirement soon on limited incomes. There seems to be a mind-block with councillors as to our ability to keep on wearing annual rates increases (well beyond the annual inflation rate) without something coming to grief in the family budget.

  13. Calvin Oaten

    Lyndon, you say, “and any further new projects will have to be put on hold until finances improve”. You seriously underestimate our “great Leader’s” ability to not see the obvious and simply go ahead regardless. Just look at the ongoing escalation of the ‘cycleways’ project. Watch the Mosgiel pool quietly float to the surface. Worse, watch the citizens’ debt burden via rate increases and borrowing escalate. Nothing will stop this crazed outfit from making Dunedin the “best little city in the world”.

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