You Might Like To Check That Report For Errors

12 Jul

The July 16 agenda has a report requesting a Council Controlled Organisation be exempt from the CCO reporting requirements.  The author may need to confirm which Trust requires an exemption.

The heading and recommendation is

SPORT AND RECREATION TRUST EXEMPTION

RECOMMENDATIONS
That the Invercargill Community Recreation and Sports Trust be exempted from being
a Council Controlled Organisation pursuant to Sections 7(3) and 7(5) of the Local
Government Act 2002.

Looking good so far.

The report continues

I NVERCARGILL CITY CHARITABLE TRUST

This is a separate trust altogether from the Invercargill Community Recreation and Sports Trust BTW.

The report then returns to discussing the trust specified at the start

Background

The Invercargill Community Recreation and Sports Trust is a Council Controlled Organisation(CCO) that provides funding to the Invercargill District for sports and arts.

Sadly the next statement is again discussing the Invercargill City Charitable Trust

The Trustees are the Mayor, Deputy Mayor and Chief Executive.

The Invercargill Community Recreation and Sports Trust has Cllrs Dennis, Sycamore, Ludlow, Pottinger, and Dean as trustees.  The Invercargill City Charitable Trust has Shadbolt, Ludlow, and King (a.k.a the Mayor, Deputy Mayor and Chief Executive).

Back to the report

The Issue
As a Council Controlled Organisation, the Invercargill Community Recreation and Sports
Trust has specific requirements for governance and accountability which far outweigh the
nature and purpose of the Trust. For example, as a CCO the Trust is required to have a
Statement of Intent, have a half yearly report and have performance objectives. The costs
associated with undertaking these activities outweigh any associated benefits given the
Trust’s level of activity.

In order to exempt the Trust from its legislated CCO requirements, a resolution to that effect
must be passed by Council under sections 7(6) of the Local Government Act 2002, reviewing
the exemption previously granted.

I agree with everything said there and I remember Jackie Kruger applying to council for the first exemption.  The problem is if they follow the final portion of the report

CONCLUSION
The Invercargill City Charitable Trust should be exempted from the CCO requirements due to
the nature of the trust.

The conclusion is WRONG.  I would support the recommendation though

That the Invercargill Community Recreation and Sports Trust be exempted from being
a Council Controlled Organisation pursuant to Sections 7(3) and 7(5) of the Local
Government Act 2002.

The ICRST serves a purpose as an umbrella organisation and provides interest based grants to groups.  I endorse it being exempt.

The ICCT looks to be laundering money or circumventing legislation and requires some investigation – $424,654 expense for Production and Technical Services…’nuf said.

 

 

 

 

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