Ernst & Young Limited
Tel: +64 9 377 4790
100 Willis Street
Fax: +64 9 309 8137
Wellington 6011 New Zealand
ey.com/nz
PO Box 490 Wellington 6140
Wendy Walker
10 October 2019
Chief Executive
Porirua City Council
Via e-mail [email address]
Mayoral fuelcard expenditure
Dear Wendy
Background
You have requested that we undertake agreed assurance procedures in respect of six specific
transactions on the Mayor’s fuelcard statements. These six transactions were identified by Council
staff as reflecting a different pattern of Mayoral travel than was standard.
We reported to you in our letter dated 4 October 2019 that in the absence of further, more detailed
information from the Mayor that we would be unable to complete the originally requested assurance
procedures. On 7 October 2019 you received the more detailed information from the Mayor. You
have asked that we perform specific additional assurance procedures in relation to the information
you have received from the Mayor and report our factual findings to you.
This report relates to your request that we undertake the agreed assurance procedures.
Scope of procedures
Our agreed assurance procedures have been limited to the following:
► Meet with the Mayor to understand the process and information sources used in compiling the
schedules of events attended by the Mayor and associated mileage during the periods covered
by the transactions identified by PCC for further scrutiny
► Using our professional judgment, we selected a sample of items included in the information
provided by the Mayor on 7 October 2019. We agreed the information contained therein to
the sources advised by the Mayor as being used in compiling the schedules of events attended
by the Mayor and associated mileage during the periods covered by the transactions identified
by PCC for further scrutiny
► Compare the information provided by the Mayor on 7 October 2019 to the content of the
Mayor’s diary and meeting attendance records provided to us by Council to assess whether
the time of day is consistent.
These procedures were performed solely to assist you in evaluating the reasonableness of the costs
incurred through use of the Mayors fuelcard.
A member firm of Ernst & Young Global Limited
Fuelcard
Porirua City Council
Page 2
Attached as appendix 1 is a schedule of the information provided to you by the Mayor together with
the results of our additional assurance procedures as they relate to the judgementally selected sample
of items. We provided a draft of Appendix 1 to the Mayor to confirm it accurately reflects the
information he provided.
Factual findings and observations
Process
We met with the Mayor and his adviser at 3.30pm, 8 October 2019. The Mayor and his adviser
described the process used to compile the tables of information summarised in the attached appendix
1. The compilation approach involved use of diaries, social media posts and date / time stamps on
photographs to create a record of events that were attended by the Mayor during the time between
the refuelling transactions for which he has been asked to provide this additional information.
We requested travel records from the Mayor covering the time periods below on 30 September 2019:
► 31 August 2019 - 2 September 2019
► 28 July 2019 – 30 July 2019
► 22 July 2019 – 24 July 2019
► 2 July 2019 – 4 July 2019
► 30 June 2019 – 2 July 2019
► 25 June 2019 – 27 June 2019.
We received the information pertaining to the period 2 July 2019 – 4 July 2019 at 3.54pm on 9
October 2019. Information in respect of the other requested time periods was received on 7 October
2019.
To minimise delays to similar information requests in the future PCC could benefit from:
► An agreed procedure between the Mayor and Council officials regarding the nature of
information and record keeping that is expected to be available to support the efficacy of the
costs being incurred by Council.
► The Mayor has been able to compile additional information requested in support of the queried
transactions but had not maintained records in a manner that readily enabled such
information to be provided. Given the public interest in public entities being able to defend
expenditure of public monies standard processes should be implemented to capture this type
of information in a timely manner.
► We understand that the Mayoral vehicle is one of a few in the PCC fleet without GPS
technology enabled. GPS technology would capture more accurate information that can be
independently validated.
A member firm of Ernst & Young Global Limited
Fuelcard
Porirua City Council
Page 3
Sample of items
Two categories of travel account for approximately 64% of the mileage included appendix 1. This
travel relates to trips to Palmerston North to collect the Mayors infant child and travel associated with
transporting the Mayors son to
where he is in attendance. We have discussed the
time of day for these trips directly with the Mayor. Based on our analysis of the Mayor’s diary, this
travel aligns with other time commitments. We were provided with photographs which indicate the
Mayor was with his infant child immediately following the trips to Palmerston North, including a
photograph of the Mayor and his infant in attendance at a function on 27 June 2019.
We independently selected a sample of 7 items from Appendix 1, excluding the travel associated with
the items discussed in the preceding paragraph. Our selection was across each of the 6 refuelling
transactions for which the Mayor has provided the additional detailed information. In relation to each
item selected we were provided with access to the source of the information used by the Mayor to
compile the information contained in Appendix 1. Our findings are recorded on appendix 1.
The 7 items specifically sampled account for 287 kms out of a total 2,848 kms in Appendix 1.
We have analysed the Mayor’s estimate of mileage associated with several entries in Appendix 1 using
Google maps. While Google maps assumes a route that may not replicate the Mayor’s travel, we do
not have GPS records for the Mayor’s precise route, the estimated mileage provides a reasonable
comparison for validation. All such items reviewed by us are noted in appendix 1.
We also analysed typical fuel consumption for the Mayor’s vehicle, a 2018 Holden Captiva. Based on
our analysis and strictly on our procedures performed, the Mayor’s mileage was estimated consume
fuel at a rate of 12.7 litres per 100 kms. This is consistent with publicly reported fuel consumption
estimates for this model of vehicle.
Limitations
We have undertaken these additional assurance procedures at your request. Our work has been
conducted under the general terms and conditions expressed in the external audit engagement
agreement dated 18 November 2016. While these procedures have been undertaken on the basis of
the terms and conditions contained in our audit engagement agreement they do not constitute an
audit or a review engagement and therefore we do not provide an assurance opinion.
Because the procedures do not constitute either a reasonable or limited assurance engagement in
accordance with auditing, review or other assurance engagement standards issues by the New
Zealand Auditing and Assurance Standards Board (“NZAuASB”), we do not express any conclusion
and provide no assurance. Had we performed additional procedures, or had we performed an audit or
a review in accordance with auditing, review or other assurance engagement standards issued by
NZAuASB, other matters might have come to our attention that would have been reported to you.
You are responsible for judgements regarding the sufficiency of the additional assurance procedures
we have been requested to perform.
A member firm of Ernst & Young Global Limited
Fuelcard
Porirua City Council
Page 4
Reliance on this Report and Restriction on Use
Neither this report nor any part of it may be published or distributed other than for the specified
purpose without obtaining the written consent of Ernst & Young, unless disclosed in accordance with
any law or by order of a Court of competent jurisdiction.
This report is intended solely for the use of Porirua City Council for the specified purpose set out
above. As the intended user of this report, it is for you to assess both the procedures to determine
whether they provide, in combination with any other information you have obtained, a reasonable
basis for any conclusions which you wish to draw on the subject matter. This report is restricted to
those parties that have agreed the procedures to be performed with us (since others, unaware of the
reasons for the procedures, may misinterpret the results).
We disclaim all responsibility to any party for any loss or liability that the other party may suffer or
incur arising from or relating to or in any way connected with the contents of this report, the provision
of this report to the other party or the reliance upon this report by the other party.
Yours sincerely
Grant Taylor
Partner
Attachment
Copy to:
Tony Appleby, Sector Manager, Office of the Controller and Auditor-General
A member firm of Ernst & Young Global Limited
Fuelcard
Porirua City Council
Page 5
Appendix 1
The tables below reflect the additional information provided by the Mayor in relation to the 6 fuelcard
transactions for which he was requested to provide this data. We have copied the data directly from
the tables contained in the Mayor’s e-mails to the Chief Executive of Porirua City Council. We have not
altered or amended the data in any way with the exception that the data pertaining to the 2nd-4th of
July 2019 which was provided in a handwritten form, has been entered into the table below.
The sample of items selected by EY for further scrutiny have been highlighted in yellow together with
comments summarising the nature of the scrutiny we have been able to undertake.
Date
Trip
Km
Source of information / EY comments
Transaction 1 – 31 August 2019 – 2
September 2019
Photo provided by the Mayor indicates
31.08.19
Parliament national women’s awards
50
this event took place on 30 August and
therefore outside the time period.
Flower Show Paramata
15
TBay bowls event (patron)
7
Plim rugby event
15
Source - from Mayor's calendar. The
event was a church service in the Grand
Hall at Parliament. The service focused
1.09.19
Parliament church event
50
on the Right to Life bill. Per Google
maps, travel distance Titahi Bay to
Parliament is circa 24.4 kms (one
direction).
Waitangirua church conf
15
Note 1
Per Google maps, travel distance Titahi
wellington
30 Bay to Parliament is circa 28.6 kms (one
direction).
Elim Church
7
Note 1
Per Google maps, travel distance Titahi
Palmerston North
250
Bay to Massey University campus in
Palmerston North is circa 124.6 kms
(one direction).
2.09.19
Office and misc
5
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Fuelcard
Porirua City Council
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Transaction 2 – 28 July 2019 – 30 July
2019
28/07/2019
Pukerua Bay Workshop
32
T Bay Golf
7
AOG Church Tokelau
20
Plim hall workshop
20
In official diary
Per Google maps, travel distance Titahi
Wellington Dinner Stakeholder dinner
60
Bay to Wellington CBD is circa 24.1 kms
(one direction).
29/07/2019
Wellington Lions Launch
60
30/07/2019
Tairangi School
16
Misc
18
Palmerston North pick up
250
Note 1
Transaction 3 – 22 July 2019 – 24 July
2019
This entry is prior to the fuelling
7.00am Parliament meeting Rob Frank
22/07/2019
50
transaction which is recorded as
Mike
11.55am on 22/7/19.
Office
MPI Stakeholder meeting
50
Proactive rehab stakeholder
Tuktuk fundrasier
Per Google maps, travel distance Titahi
Youth declaration Parliament
50
Bay to Parliament is circa 24.4 kms in
one direction.
Salvation Army Fashion Show
15
23/07/2019
60
Note 1
HLC regeneration
20
PM hosted event in Parl. Evening. Public
record. Per Google maps, travel
Parliament Sir Edmond Hilary
50 distance Titahi Bay to Parliament is circa
24.4 kms in one direction.
24/07/2019
Goodshop launch
15
60
Note 1
60
Note 1
Cannons Creek Boxing
16
Misc
30
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Fuelcard
Porirua City Council
Page 7
Transaction 4 – 2 July 2019 – 4 July
2019
2/7/2019
Gear homestead – Wellington Water
10
Tairangi School
20
T Bay Kohanga
7
3/7/2019
38
Chamber of Commerce
10
60
Note 1
250
Note 1
4/7/2019
Police college
10
Photo provided of Mayor at the event
celebrating post production of movie at
Park Road Post in Mirimar. Per Google
maps, travel distance Titahi Bay to Park
Post Production Billy Graham boxing
64
Road Post is 31.5 kms in one direction.
Misc
40
Transaction 5 – 30 June 2019 – 2 July
2019
Date
Trip
Km
30/06/2019
Island Bay
60
Note 1
Palmerston North
250
Note 1
1/07/2019
60
Note 1
In diary. Mayor provided official
US Embassy Lower Hutt
50
invitation for the Independence Day
event
Plim Sports
15
Titahi Bay Community Group
7
2/07/2019
Gear Homestead Violo
10
HLC community engagement
20
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Fuelcard
Porirua City Council
Page 8
Transaction 6 – 25 June 2019 – 27 June
2019
25/06/2019
60
Note 1
Office
Waitangirua Mall Meeting
20
In Mayor’s diary
Palmerston North
250
Note 1
26/06/2019
Office
7
Arena ceremony
Committee meeting
60
Note 1
27/06/2019
Committee meeting
Photo from Mayor's camera roll on
Meeting PM
7
phone.
Whitiraia Lunch
60
Note 1
Note 1
Palmerston North
1,250
Travel required to collect infant child
Transport of child
570
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