Tag Archives: Boards

DCHL & DVML: Call for directors

ODT 4.10.14 DCHL directors advert p21ODT 4.10.14 (page 21)

Is it our collective good fortune that “Don’t you know who I am?!?!” Sir John Hansen is ending his tenure as chairman for the sympatico boards of DVML and DVL?

Although, here is evidence that the Fubar Stadium GOES ON………..

We know public release of the Stadium Review initiated by DCC chief executive Sue Bidrose is pushed out until November. It’s all VERY messy, that nothing will DIE —regrouping the DVML board for the $20 million pa loss-making stadium won’t turn the structure into crushed aggregate and salvaged steel (for sale) at pumpkin hour.

A few bunnies will apply. We’ve had bunnies all along at DCHL —look what that’s cost Dunedin ratepayers and residents. Same applies for DVL and DVML. No change will happen while the stadium continues to drain the finances of Dunedin City Council under Liability Cull’s mayoralty of disasters and increased spending.

Remember this BS?

Dunedin City Council – Media Release
DCHL Names New Directors

This item was published on 31 Oct 2013

Dunedin City Holdings Limited (DCHL) has announced the appointment of two new directors to the parent company board and another two to its subsidiary company boards. More than 50 applications were received for the DCHL Board. […] DCHL Chair Graham Crombie says the new directors bring strengths that will add valuable skill sets to the boards they have been appointed to. “We needed people that could make informed business decisions, but at the same time complement the skill set of the directors already around the Board table. Following on from last year’s result we needed people comfortable working in a highly visible public arena to help us build on the excellent work done by the previous directors and maintain the forward momentum.”
Read more

Related Posts and Comments:
30.9.14 DCHL financial result
25.9.14 DVML on Otago Rugby and Rod

Posted by Elizabeth Kerr

24 Comments

Filed under Business, DCC, DCHL, DVL, DVML, Economics, Hot air, Media, Name, New Zealand, NZRU, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

Real reason behind Invermay slaughter/restructure?

Supplied. ODT 6.8.14 (page 25)

ODT 6.8.14 Letters to the editor Simmers p25

Posted by Elizabeth Kerr

10 Comments

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John Ward, no mention of stadium or CST trusteeship

Otago Magazine June 2014 p23 (1)The University of Otago chose to profile its chancellor, Invercargill’s John Ward, in the June 2014 issue of Otago Magazine (pages 22-24). Note Mr Ward omits to mention the Stadium, or his trusteeship on the Carisbrook Stadium (Charitable) Trust. Isn’t that funny. Well, he looks a bit pursed in the photograph anyway.

Otago Magazine June 2014 pp 22, 24

Source: http://www.otago.ac.nz/otagomagazine/otago072837.pdf
Thumbnail: Photo by Alan Dove

Related Posts and Comments:
20.5.14 Tim Hunter on Ward, McLauchlan, Hayne #Highlanders
10.2.14 University of Otago major sponsor for Highlanders
31.5.13 University of Otago development plans

Posted by Elizabeth Kerr

1 Comment

Filed under Business, Construction, CST, Fun, Hot air, Media, Name, New Zealand, ORFU, People, Pics, Politics, Project management, Property, Site, Sport, Stadiums, University of Otago, What stadium

McLauchlan replies! #handsalloverit #UoOteamofthree

ODT 1.7.14 Letter to the editor (page 8)
ODT 1.7.14 Letter to editor Dickie p8

****

### ODT Online Fri, 20 Jun 2014
Dunedin is ‘the laughing stock of the country’
By Vaughan Elder
Dunedin is a “laughing stock” over a proposal to launch an independent airline, Dunedin International Airport Ltd chairman Stuart McLauchlan says. Otago Air had no chance of getting off the ground, he said.
Read more

### ODT Online Fri, 20 Jun 2014
City’s mentality praised
By David Loughrey
The Dunedin City Council and the Otago Regional Council should get together to underwrite air services to Dunedin, an aviation expert says. Former University of Otago air transport research director Dr David Duval said Otago Air was a great Dunedin idea, but not one anybody should go ahead with.
Read more

[steering/connected/influential ??]

Related Posts and Comments:
20.5.14 Tim Hunter on Ward, McLauchlan, Hayne #Highlanders
15.5.14 Stadium (fubar): cringe
31.3.14 Audit services to (paying) local bodies #FAIL ● AuditNZ ● OAG…
25.3.14 Delta blues . . . and Easy Rider
20.3.14 Delta: Report from Office of the Auditor-General
27.2.14 Stadium: a conversation
10.2.14 University of Otago major sponsor for Highlanders
2.10.13 Greater Dunedin caucus arrives
6.8.13 Busted hacks! Media rates Cull and shiny-arsed suit brigade
15.7.13 Leave Otago white collar criminals ALONE, and other unfairness
[comment] 6.5.13 Elizabeth re ‘consultants and dunedin city council and sfc’
15.12.12 Perspective: stadium turmoil outweighs arts festival failure
10.12.12 Proposed hotel, 41 Wharf St – “LEARNING FROM LAS VEGAS”
20.11.12 DCC vs Anzide Properties decision: The road “has no legal basis”
12.11.12 Delta purchases | Vandervis OAG complaint accepted
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
14.6.12 Silence on debt run up at ORFU black-tie dinner
9.6.12 City Property to compete more obviously in the market…
8.5.12 Owners of neglected buildings
29.3.12 Dunedin City Council company sponsors Highlanders
15.3.12 Message To ORFU Creditors, if you want to see your money
4.3.12 Tartan Mafia
17.2.12 Does the insolvent ORFU deserve any more community support?
28.10.11 DVML, DVL and DCHL annual reports
16.10.09 Highlanders news

Posted by Elizabeth Kerr

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Stadium: DVML, DVL miserable losers! #grandtheftdebt

### ch9.co.nz June 20, 2013 – 6:18pm
DVML forecasts small profit
The company that runs Forsyth Barr Stadium has forecast a small surplus for the first time in 2015. DVML has been running at a loss, but forecasts that will change to a $10,000 surplus. But the company that owns the stadium, DVL, has forecast its loss will be about $1 million more than expected, at more than $5 million. DCC chief executive Paul Orders said both were just projections, and the DVL loss was due to tax changes. The forecasts will be considered by the council on Monday.
Ch39 Link [no video available]

SURPRISE
Reports for the Council meeting to be held on Monday 24 June 2013 at 1pm not yet available at the DCC website.

Posted by Elizabeth Kerr

9 Comments

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DCC Annual Report to 30 June 2012 – borrowing and interpretation

DCC Annual Report (PDF, 1.1 MB)

Comments received.

Mike
Submitted on 2012/11/18 at 12:48 pm
well spotted – so in essence DVML quietly borrowed an extra $8.5m and managed to transfer it to the DCC without incurring any tax because it was a ‘capital gain’ rather than a ‘dividend’

Rob Hamlin
Submitted on 2012/11/18 at 2:07 am
Another little gem from the DCC annual accounts. A positive little Kimberly it is. Calvin Oaten and I found this little morsel from the sewers of local government yesterday and will now share it with you.

On page 132 it has a table of figures titled ‘Separately Disclosed Revenue’. One line entry towards the bottom is particularly interesting. The title is ‘Profit on sale of Stadium (2012)……. $8,480,000’. This profit appears in both ‘Core Council’ (DCC only) and ‘Consolidated’ (Council & DCHL) columns.

Initially, this seems like great news. We’ve sold the bloody thing and got eight and a half million dollars for it. But, as is always the case, things are not all as they appear.

Nearly sixty pages later, on page 188, we have the following sheet of gibberish:

“Sale of Forsyth Barr Stadium to Dunedin Venues Limited

On the 31 May 2012 the Council sold it’s [sic] interest in the stadium to a wholly owned subsidiary Dunedin Venues Limited. This was the culmination of a project spanning five years during which time the method of delivering the project changed and as a result there is a technical accounting surplus on disposal of $8,380,000. The following note is an explanation of these technical accounting issues.

Book Surplus on disposal of the stadium $ ‘000
Sale price 225,000
Capitalised stadium cost including interest 216,520
Surplus on sale of asset as per 2012 Annual Accounts 8,480
Less stadium costs written off to operations in 2007-2008 5,537
Plus stadium revenue included in operations in 2007-2008 (583)
Surplus on disposal 3,526

Book surplus on disposal of the stadium
The method of undertaking the stadium project changed over the years of the project. The accounting treatment always followed the method of project delivery and was audited as being the correct treatment at the time. In 2007–2008 year it was expected that the project would be delivered by a third party and that the Council expenditure was therefore operational. This resulted in $5,537,000 being correctly expensed in 2007–2008 year. In subsequent years once the decision was made that the Council would build the stadium, the expenditure was correctly capitalised. The surplus of $3,526,000 would remain as it is the difference between all the costs incurred by the Council and the sale proceeds received.”

Also on page 123 we have this note to one of the CCO fragmentary reports:

CCO Property Plant and Equipment
All CCO property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
The Stadium is a separate class of asset and is recorded at cost less any accumulated depreciation and any accumulated impairment losses.”

So what happened? Well, you may remember that the total cost of the Stadium came in at around $216.5 million. Then, last year the DCC acquired a ‘valuation’ for the Stadium (God knows how and God knows from who) of $225 million. Its commercially realisable value is in fact, as we all know, the commercial value of the site minus the costs of demolition and removal, which is as near zero as makes no difference.

However, it now appears that DVL then ‘bought’ the stadium from the DCC at this higher valuation. It is hard to see any good reason why they would do this, as the historical cost of the stadium itself was $216.5 million – this figure would have fitted well with their own policy for valuation in the note on page 123. As the structure was brand new when ‘bought’, a second valuation was unnecessary. The historical cost of construction would have been more than adequate as a transfer price.

However, it appears that this unnecessary valuation exercise and its absurd outcome has allowed a further $8.5 million to be transferred from DCHL to the DCC this year on top of the $17.95 million handed over as a dividend, for a total of $26.45 million. It can also be claimed now with a straight face that DVL are acting in accordance with their requirement to record assets at cost as $225 million is what they ‘paid’ for it!!

Now let’s deal with the gibberish on page 188, which covers the financial year 2007-2008 (presumably ending 1 April 2008). Apparently, this specific structure incurred over five and a half million dollars of costs and over half a million dollars of REVENUE!!! before it had been fully designed or even approved as a specific entity that the DCC was actually going to construct! The final approval came nearly a year later I seem to recall.

I personally find this reduction in this ‘accounting profit’ to be wholly incredible. I can also find no adjustments matching this $5 million or so in the costs side of the DCC’s figures – even though the $8.5 million extra revenue appears in its entirety. Mind you, in the 200 pages plus of fragmentary and largely useless figures, I guess that I could have missed it.

Page 13 is also interesting. It is entitled ‘Audit Report’. Properly audited accounts require a signed statement by the auditor to form part of them, stating that the auditor’s unqualified opinion that they are satisfied with the accounts – or a statement of their reservations (qualifications) if they are not.

Page 13 is blank (surprised?)

On page 1, we have the following statement:

“This report asks the Council to approve and adopt the Annual Report for the year ending 30 June 2012.

The Director of Audit New Zealand responsible for the audit and the Audit Manager will attend to discuss the audit and answer any questions from councillors.”

In my opinion this is utterly inadequate basis upon which to approve this report. It should not have been even presented to Council, let alone approved, without a complete auditor’s report being attached to it.

It seems that the Council will have to find $25 million plus in savings by next year just to tread water, and that’s if we don’t get any more unpleasant surprises. Interesting times.

[ends]

Posted by Elizabeth Kerr

16 Comments

Filed under Business, DCC, DCHL, DVL, DVML, Economics, Name, People, Politics, Project management, Property, Site, Stadiums

Dunedin City Council – all reports posted, belatedly!

Annual reports for council-owned companies were withheld from public and media scrutiny, without notice, prior to the council meeting held on Monday, 29 October 2012. The Mayor of Dunedin Dave Cull and DCC chief executive Paul Orders are individually responsible for deliberately withholding this financial information. Although, along with them, we suspect other players in the woodpile.

### ODT Online Wed, 31 Oct 2012
Report about stadium loss slips under radar
By Chris Morris
A worse-than-expected $3.2 million loss recorded by the company running Dunedin’s Forsyth Barr Stadium did not rate a mention at this week’s Dunedin City Council meeting. It emerged yesterday Dunedin Venues Management Ltd and Dunedin Venues Ltd’s annual reports had quietly slipped through Monday’s full council meeting without a question or word of debate. There had been no mention of DVML or DVL on the meeting’s public agenda, and it appeared the reports had not been circulated publicly, to media or even some council staff, as required, in the days before the meeting, the Otago Daily Times discovered yesterday.
Read more

DUNEDIN CITY COUNCIL AGENDA
MONDAY, 29 OCTOBER 2012, 2.00 PM
COUNCIL CHAMBER, MUNICIPAL CHAMBERS29 October 2012

Agenda – Council – 29/10/2012 (PDF, 118.9 KB)

Report – Council – 29/10/2012 (PDF, 77.9 KB)
ISCOM Approved Out of Water Supply Area Connection – Mr J D MacDonald, 3509 Sutton-Clarks Junction Road, RD 2, Outram 9074

Report – Council – 29/10/2012 (PDF, 1.1 MB)
Approval and Adoption of Annual Report

Report – Council – 29/10/2012 (PDF, 788.2 KB)
Vehicle Access John Wilson Ocean Drive

Report – Council – 29/10/2012 (PDF, 4.6 MB)
Speed Limits Bylaw Review

Report – Council – 29/10/2012 (PDF, 978.0 KB)
Speed Limits – Safer Speeds Demonstration Area

Report – Council – 29/10/2012 (PDF, 1.8 MB)
Submission on the Local Government Regulatory Performance Issues Paper

Report – Council – 29/10/2012 (PDF, 155.1 KB)
Meeting Schedule for 2013

Report – Council – 29/10/2012 (PDF, 1.2 MB)
Aurora Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.8 MB)
Delta Annual Report 2012

Report – Council – 29/10/2012 (PDF, 813.7 KB)
Dunedin International Airport Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.0 MB)
Dunedin Venues Limited Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.1 MB)
Dunedin Venues Management Limited Annual Report 2012

Report – Council – 29/10/2012 (PDF, 225.0 KB)
Taieri Gorge Railway Annual Report 2012

Report – Council – 29/10/2012 (PDF, 2.8 MB)
Dunedin City Treasury Annual Report 2012

DCC Link

### ODT Online Wed, 31 Oct 2012
Stadium finances dismay
By Chris Morris
Dunedin Mayor Dave Cull says the Forsyth Barr Stadium’s finances are “not sustainable”, after confirmation the company running the venue lost nearly $1 million more than expected in its first year of operation. The result was contained in Dunedin Venues Management Ltd’s 2011-12 annual report, released to the Otago Daily Times yesterday, which showed the company lost $3.2 million in its first year. That was $814,000 worse than the $2.4 million loss forecast in May, when DVML’s revelations of a half-year, $1.9 million loss prompted the council to launch a review of the entire stadium operation.
A copy of Dunedin Venues Ltd’s annual report was also released yesterday, and showed the company that owned the stadium – and received rent from DVML – recorded a $4.312 million loss for the same period.
Read more

Posted by Elizabeth Kerr

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Filed under Business, DCC, DCHL, DVL, DVML, Economics, Media, Name, People, Politics, Project management, Property, Stadiums