Finance review to strengthen Council processes

Hamilton City Council’s financial systems and processes will be considerably strengthened following a strategic review which found they did not meet best practice.

Chief Executive Barry Harris this week received a report from Deloitte, following his commissioning in December of a high-level review of the financial systems and processes at Council.

The confidential report highlights shortcomings with processes, systems, use of IT, communication, controls and reporting. It did not highlight issues with the accuracy of financial information.

As a result, the Chief Executive has decided to establish a new Chief Financial Officer position. The 31 strong Finance team will report to the CFO, separating the Finance and Performance functions within Council. An acting CFO will be appointed while recruitment of this person is underway.

Commenting, Barry Harris says:”Rigorous and robust financial reporting systems are critical to the organisation, and this review which has highlighted the areas where we need to strengthen our financial practice.

“Our new Chief Financial Officer will lead the necessary changes to rapidly implement the recommendations in the review and ensure the necessary systems and processes and IT solutions to support these are in place.

“I stress the review did not take issue with the integrity of Council’s financial information, instead highlighting the risks associated with the systems presently used.

“I am confident these changes, along with the many others already implemented over the past year will ensure we have quality systems and processes in place to offer the very best service we can to the city and its ratepayers.”

The report is confidential to the Chief Executive as it contains information that if made publically available, would breach the privacy of individuals, and potentially impact on the ability of Council to implement the review’s recommendations. Click here for a summary of recommendations.