Auditor rules Buller District Council CEO's payout 'appropriate'

The council paid Paul Wylie $221,680.

The amount of the severance payment from the Buller District Council to its departing chief executive was "appropriate", says Audit New Zealand.

The council paid Paul Wylie $221,680 when he resigned for personal reasons in January this year. He was 11 months short of completing his five-year contract.

Audit NZ reviewed the settlement amount as part of its annual audit of the council.

It said the council was a public entity spending public money, so such severances must not be seen as inappropriate or excessive. The council was also legally required to disclose the settlement in its annual report.

"We were satisfied that the settlement paid was appropriate," the auditor said.

"We were also satisfied that the disclosure was fairly stated and complied with the legislative requirements of the Local Government Act."

All up, Wylie's exit cost Buller ratepayers $234,000 including legal fees.

He departed after the council refused his request for a pay rise and a two-year contract extension and the relationship between him and the council deteriorated.

He was the highest-paid council chief executive on the Coast. In the 2014/15 financial year his remuneration package was $251,948. He racked up another $42,868 in expenses.

His successor, Andy Gowland-Douglas, has a $190,000 remuneration package. She has moved to Westport with her husband and three children.

Audit NZ gave the council an unqualified audit report. It said the council's financial statements and statement of service performance fairly represented activity for the year and the council's financial position at year end.

The council reported a deficit for the year of $1.09 million. It had budgeted for a $1.53m surplus.

Audit NZ accepted that the result was largely due to lower than budgeted grant and subsidy revenue and unbudgeted losses of non-cash expenses relating to interest rates and property markets.

- Westport News