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Monday
May212012

Destination Coromandel

TCDC has bailed oiut Destination Coromandel to the tune of $75,000, It apparently had a $160,000 operational loss that arose mostly as the result of substantial losses incurred in running a children's event in Whangamata that was grossly 'oversold' by the promoters at the time. The organization was foolish to get involved, and now those who were responsible are running for cover.

It does explain the the departure of Jim Archibold, but that loss was not the only unexplained detail in the accounts presented to the AGM at the Junction Hotel last year. There were other items in the Accounts that should have given rise to greater enquiry, including substantial Sundry Debtors which Jim was quite blase about when I questioned him after the meeting - he indicated that it was an item "in dispute" with HDC. That being the case, it should not have been on the "asset" side of the balance sheet. Niether Cr Bartley, nor Strat Peters who were the Council representatives on the trust at the time appear to be takinhg any heat for the debacle,

It does raise questions about the move to exempt the Trust from the requirements of being a Council Controlled Organisations, and rendering  it responsible only to the tender mercies of the Incorporated Societies Act. I asked HDC CEO Langley Cavers about this at the time, and was told that "the funders will require an annual business plan, and quarterly financial and and financial reporting". That's a relief. I would hope that in the future the funders use appropriate accounting skills to analyse the reports that are provided - there was no evidence of that with last year's accounts, and clearly the audit failed to pinpoint the problem.

 

 

 

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Reader Comments (1)

Accountability is a two-edged sword in that large losses make me wonder what our elected reps were thinking of? But then nothing ventured is a weakness in local gov. Can't growl if things new are attempted.

June 23, 2012 | Unregistered CommenterPeter H Wood,

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