West Coast ratepayers have direct debits charged twice
By local democracy reporter Brendon McMahon:
The West Coast Regional Council rates mess has reared its head again with the council admitting an "administration error" caused some ratepayers to be charged twice through direct debit.
Council's Risk and Audit Committee chairperson Frank Dooley said front line staff have been wearing the outcome of a poor system, which reflected years of under investment because of a fear of "putting the rates up".
The latest blunder comes after council overcharged some West Coast ratepayers last year, forcing officials to reissue invoices in December.
Invoices for 2023-24, from December 12, should show exactly what people owed for their second installment, Dooley said.
Ratepayers have been contacting the Local Democracy Reporting and posting to social media after their rates direct debits were double dipped - and sometimes for variable amounts.
"Incomprehensible" invoices, some with charges dated as 2022-23 instead of 2023-24, have also been pointed out.
Council chief executive Darryl Lew said the direct debit mistake reflected ongoing issues with council's rates accounting system.
"We acknowledge the administration error that resulted in duplicate payments, those individuals affected have been reimbursed within 24 hours," he said.
Council had also responded "to a small number" of ratepayers concerned at their accounts, and having "difficulty understanding the invoices".
"We appreciate this is a complex matter for many ratepayers and rates direct debits are calculated on an individual basis, taking into consideration many factors including rating district levies and the ratepayer's current account balances."
Lew said the direct debits have been recalculated to reflect the difference between the previous rates payments and the new calculation for the rating period.
"Those affected ratepayers will be notified in due course," he said.
In the first problem to arise, as the 2023-24 invoices arrived, ratepayers in special rating districts like Greymouth and at Harihari were shocked to find huge rates increases of up to 300%.
The final due date was January 20, after two previous payment extensions.
However, ratepayers were encouraged late last year to still pay their first incorrect installment, with the assurance this would be balanced out with the second installment.
Lew was also asked why the refreshed 2023-24 rates invoices sent out on December 12 still had 2022-23 quoted at the bottom.
Dooley, an accountant, said the new invoices sent out should have said 2023-24.
The invoice system problem reflected wider issues affecting council administration due to under investment, he said.
Dooley said they are waiting a final report from Price Waterhouse Cooper, commissioned by council late last year, to investigate the rates system.
"We need to improve that system but without seeing the PWC report, I can't make further comment."
Council rates staff have been "inundated" over the issue.
"There was a system break down and that shouldn't have been the case. Councils need to make sure the systems are right.
"Why haven't we got an annual report? Exactly the same problem: we haven't invested in systems and we haven't invested in people," he said.
"The lack of investment over a number of years is coming back to bite us and we have got to change that."
$700,000 mistake left to fester at Coast council for three years
By local democracy reporter Brendon McMahon:
A billing mistake that saw a debt of just over $701,000 sit on the West Coast Regional Council books for three years should never happen again, according to the head of its finance committee.
Council this week congratulated itself on the recovery of long standing debt in the past few months, the ongoing rebuild of its finance management system, and a pending report back on four internal audits driving the rebuild.
However, Risk and Assurance Committee chairperson Frank Dooley (pictured) said the error made back in 2021, leaving a $701,718 debt on the council's books, still needed to be cleared up through the council's annual reporting.
Caused by a "clerical error", the debt was indicative of the council's previous dysfunction where a billing mistake was left to fester instead of being proactively followed up, he said.
"It was a double up in an invoice.
"You just don't follow up three years later," Dooley said.
A public outcry in late 2023 spurred a flurry of activity by council to sort out its rates and debt systems after some ratepayers were overcharged by up to 300% in the first installment for 2023-24.
It has already adopted a new system to chase up external debt and internal audit reviews are currently underway into:
* cash handling
* credit card and fuel card expenditure
* procurement (capital and operational)
* rates setting and charging processes.
Chief executive Darryl Lew said the findings should be reported directly to the committee by June.
He said it reflected "a significant body of work" with new actions out of it needing to align now with the 2024-34 long-term plan and a planned revision of council's committee structures, he said.
Councillor Peter Haddock said council's commitment to do a fix up had been quite a resource commitment when it was "running low".
But it was essential to rebuild the organisation.
Councillor Peter Ewen said that was significantly helped by changes at the top in the past year, with the chair replaced and a new chief executive.
"A lot of the progress that has come about is because we now have communication between the chair and the chief executive.
"It's made a hell of a difference," Ewen said.
On May 16, Dooley told LDR the $701,718 dated back to a claimant being invoiced twice and the amount then being carried over in council's debtors' ledger.
He said there had been no inquiry until recently about it when it became clear the amount was disputed.
The "mistake" had made a $700,000 impact on council's bottom line.
"The impact of that $700,000 reversal will probably be in the annual report."
Dooley said at this point he was unsure if that particular mistake could have been repeated.
"I don't really know but that's why you have to drill down debtors on a regular basis - that's when you pick it up.
"Errors have to be investigated and corrected, and that hasn't been happening," he said.
Council was now working with its auditors to build new systems including ensuring accurate rendering of rates debt.
"We're starting to drill down, asking are they accurate or not?
"I've got a lot of confidence now … we're putting in place the appropriate procedures and controls so we can manage this on a day to day basis and make it effective."
Dooley said part of the issue had been inadequate staff numbers - despite some question around an increase in staff at council.
"If you don't have those people doing the right job, it creates inefficiencies, and creates a massive cost to the ratepayers - every time we make a mistake it costs.
"I'm really pleased about the progress."
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