Rotorua Lakes Council has reduced its debt by $1.2million to $167.5million and its 2014-2015 operational result is $700,000 better than forecast.
Audit New Zealand has almost completed its audit of the council's books, but chief financial officer Thomas Colle provided Mayor Steve Chadwick and councillors with an annual report update at a council meeting this week.
The council's operations and monitoring committee will consider the audited version of the annual report at its October 21 meeting.
"The pleasing thing is the operational result is on budget and we are back on track. We have spent what we said we would," Mr Colle told the council.
Revenue for the 12 months ended June 30 was $102.45million.
Chief executive Geoff Williams said the hard work for the council's finance team started two years ago when staff picked up irregularities in the way the finance system captured information.
"We had self-funding reserves that weren't really self-funding reserves at all. There was a view around airport debt and where that sat and where it was in reality and then there was a whole range of issues around the way that we were receiving revenue for services.
"So we tidied that up and in the second year, just gone, staff identified a range of entries sitting in the books which should be written off as they are no longer 'work in progress'."
That $9.2million writedown of assets did not impact on the operational result and further tidied up the council's books, he said.
"In very real terms we've got a very good outcome, an outcome, in fact, that exceeded expectations. It was an outstanding result. Partway through the year council identified some significant financial pressures within the organisation and the risk that we were going to significantly exceed budget if we didn't actually put into place a series of corrective actions.
"At that time the councillors stated option was what we could possibly do as an alternative, but we provided the assurance that we would bring the organisation in on budget, or thereabouts. So this as an outcome is a significant one," Mr Williams said.
At the meeting Councillor Charles Sturt said it was a "wonderful" result.
"I'm delighted that we've retired $1.2mdebt and that we've held back $500,000 - maybe it's contingency we used to do years and years ago - but certainly in the case of an event occurring we need to call on that cash without going through the formal process of borrowing."
Mayor Steve Chadwick also congratulated Mr Colle and the council's finance team.