Only 10 NZ councils pass top audit as new dashboard lifts lid on regions' performance

A new national dashboard is giving residents a clearer picture of how their council’s audited annual report stacks up against others across New Zealand.

Each year, councils are required to produce an annual report outlining their performance for the previous financial year.

These reports are audited to provide independent oversight of the information councils provide to their communities and to increase public accountability.

For the first time, auditor opinions of all 78 councils’ annual reports have been displayed side by side on a digital dashboard, allowing residents to compare their council with others nationwide.

This first iteration relates to the 2024/25 round of annual reports, which were meant to be adopted before the end of October.

Standard audit results are marked green on the national map and indicate annual reports the auditor considered to fairly reflect what occurred and to be in line with best practice.

Only 10 councils received an unmodified, standard audit opinion. Marlborough was the only council in the Top of the South to achieve that result.

Most councils, including Nelson City Council, received non-standard audit results, shown as yellow on the dashboard.

Non-standard results can include an adverse opinion, which signals serious disagreement between the council and the auditor, or a disclaimer of opinion, which indicates the auditor was unable to complete its work due to a lack of information.

Only 10 councils received a standard, unmodified audit opinion in the latest round of annual reports. Photo/1News

In Nelson’s case, the non-standard audit opinion was due to two emphasis of matter paragraphs.

An emphasis of matter paragraph allows the auditor to confirm the annual report is accurate, while highlighting factors readers should consider when interpreting the information.

Nelson’s emphasis of matter paragraphs related to the presumption it would continue delivering water services before the Department of Internal Affairs (DIA) had approved that plan, and the inherent uncertainty involved in measuring greenhouse gas emissions.

Nelson City Council executive director corporate services Nikki Harrison said several other councils received the same emphasis of matter paragraph relating to greenhouse gas reporting.

“Since the audit emphasis was issued, council has maintained a commitment to continuous improvement in its measurement methodologies,” Harrison said.

Nelson has since had its water services delivery plan approved by the DIA.

Most councils were issued non-standard audit results, highlighting concerns or uncertainties in their reporting. Photo/Porirua City Council

A further 54 councils also received an emphasis of matter paragraph relating to uncertainty around water services delivery, including Tasman District Council.

However, unlike Nelson, Tasman was one of 23 councils marked red on the dashboard because it received a qualified audit opinion.

A qualified opinion indicates non-pervasive issues in an annual report, such as incorrect or missing information, or a disagreement between the council and the auditor on a specific section.

In Tasman’s case, the qualified opinion was issued because damage from the 2025 winter storms had not yet been fully accounted for.

Council commentary from the time when the audit opinion was issued said that approach was consistent with other areas that had been hit by severe weather.

A Tasman council spokesperson said the next annual report will need to cover the condition of its assets following the winter storms, as well as the repairs completed since.

The Office of the Auditor-General says the dashboard aims to improve transparency and help communities better understand council performance. Photo/LDR/Max Frethey

However, recovery work will not be finished until December, beyond the date that the council is required to adopt its next annual report.

As a result, the council expects to receive another qualified opinion from Audit New Zealand.

“Audit New Zealand have acknowledged the timing issue and endorsed this approach, as have the independent members of the Audit and Risk Committee,” the spokesperson said.

Tasman’s water services delivery plan has also since been approved by DIA.

The Office of the Auditor-General (OAG), which developed the dashboard, plans to update it annually after each round of council annual reports has been audited and adopted.

Comparisons of councils’ 2025/26 annual reports are expected to be available in early 2027.

The OAG also intends to make more council performance information accessible and comparable online in future.

Local Democracy Reporting is local body journalism co-funded by RNZ and NZ On Air