Rotorua Lakes Council has came under fire from the Office of the Auditor-General for historical issues stemming from its long-term plan process.
The council says it was advised about the issues regarding its long-term plan in July, had rectified them, and had subsequently been given a clean bill of health.
In a report dated December 1, presented to Parliament on December 3, Auditor-General Lyn Provost said three councils - Rotorua District, Mackenzie District and Wairoa District - failed in their statutory requirements to adopt their audited 2015-2025 long-term plans (LTP) by July 1, 2015.
The council was also asked to explain to the Office of the Auditor-General (OAG) "uncertainties over the limit being imposed on all capital expenditure".
"We consider the delay in providing those three communities with an LTP to be unacceptable," the report stated.
"Local authorities should be able to plan effectively to meet the statutory deadline. We notified the Department of Internal Affairs of the breach of section 93 of the act. It is a matter for the minister of local government to determine what, if any, further action is required," the report stated.
The OAG also questioned where the council would find savings of $56.4 million over the 10 years of the plan.
"The council has decided to set a funding envelope for the life of this plan that funds only 85 per cent of the planned capital expenditure programme that the council set out in its consultation document.
"On page 84 of the plan, the council broadly outlines how it plans to reduce its capital expenditure, but at this stage has not identified any specific proposals to achieve the total level of savings required."
Council chief financial officer Thomas Colle said the OAG was happy with the council's explanations and no further action would be taken against it.
"The council committed to a 85 per cent funding envelope in the LTP, so the council would not spend beyond 85 per cent of the underlying capital works programme, effectively not requiring $56.4 million to be funded during this LTP," he said.
"As explained in the LTP, this is achieved by a number of factors including delays and timing of projects, managing costs, cancellation of projects and is not managed by simply cutting programmes.
"History shows this naturally occurs and during the last six years council has only averaged 74 per cent of capital spend," Mr Colle said.
With regard to the delay in adopting the LTP, Mr Colle said the council sought legal advice in early July on any impact of the late adoption, contact was also made with the Department of Internal Affairs.