♦ Te Puni Kokiri
REAL151NG MAORI POTENTIAL
16 December 2016
1982
Merepeka Raukawa-Tait
Act
Board Chair, Te Pou Matakana Limited
1 Edmonton Road
Henderson
AUCKLAND 0612
Tena koe Merepeka
Te Pou Matakana: Verification of the 2015/16 incentive payment
Information
Thank you for engaging with us throughout the verification process for the 2015/16
incentive payment for Te Pou Matakana.
I am writing to confirm that Te Puni Kokiri has approved the 2015/16 incentive payment of
$633,804.00 to Te Pou Matakana. This represents significant achievement, and I
commend Te Pou Matakana for its performance against challenging targets.
Official
I understand that some of the recommendations for improvements from the 2014/15 period
have been implemented and were visible in 2015/16. While I appreciate there may have
been a small number of areas identified for improvement from this period, I have agreed
the
to the full payment. This recognises the commitment Te Pou Matakana makes to
continuous improvement.
Our team has worked alongside Te Pou Matakana to describe a small number of areas for
refinement. The attached summary report provides additional detail and more fulsome
under
feedback.
Next steps
Upon receipt of an invoice from Te Pou Matakana for
$633,804.00 (plus GST), we will
process payment as soon as possible.
My team will continue to engage with yours to develop and agree the incentive payment
Released
mechanism for the 2016/17 financial year, bearing in mind the lessons learned from this
year's verification process.
Te Puni KOkiri, Head Office, Te Puni
KOkiri House
143 Lambton Quay 6011, PO Box 3943 Wellington 6140, New Zealand
Waea (Ph) +64 4 819 6000
Waea Whakaahua (Fax) +64 4 819 6299
Tmera (email) info@tpk.govtnz
Paetukutuku (Web) www.tpk.govt.nz
1982
Act
Information
Official
the
under
Released
1982
Withheld under Section 9(2)(a)
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
Question No. 12—Whānau Ora
12. JO HAYES (National) to the
Minister for Whānau Ora: Does he agree with the
Prime Minister's statement on Whānau Ora incentive payments that "the Minister has
said he is looking at the way that some of those arrangements work with Whānau Ora"?
Hon PEENI HENARE (Minister for Whānau Ora): Yes, I agree with the statement by
our Prime Minister, including this statement in the same interview: "It was an incentive
payment that the last Government set up with Whānau Ora."
Jo Hayes: Why, then, did RNZ report that he wasn't looking to make any changes to the 1982
contracts—
SPEAKER: Order! The member wil resume her seat. It's really important that questions
start off with an area that a Minister is responsible for, and no Minister is responsible for
Act
why Radio New Zealand does anything.
Jo Hayes: OK. Why was he not aware of the incentive payments in Whānau Ora
contracts when first asked about it last week?
Hon PEENI HENARE: I was aware of the incentive mechanism in the contracts that are
entered into with the commissioning agencies, as the member wil be, seeing as they
were released to her in the Official Information Act request I gave.
Jo Hayes: Has he made further inquiries with his col eague the Hon Wil ie Jackson
Information about
his involvement with the National Urban Māori Authority and the Manukau Urban Māori
Authority, and any dividends he may or may not have received from incentive payments
following yesterday's question in the House?
Hon PEENI HENARE: No.
Official
Jo Hayes: When was he first made aware of his col eague's administrative error as it
relates to his Whānau Ora portfolio?
the
Hon PEENI HENARE: I can't give the exact date of when I was made aware. However, I
do understand that the resignation was received before my colleague the Hon Willie
Jackson became a Minister, and that it took some time for the administration to catch up
online.
under
Jo Hayes: Has he now received al of those facts in regards to incentive payments after
his col eague Mr Jackson had said the Minister hadn't received any facts?
SPEAKER: Sorry, can the member repeat the question.
Jo Hayes: Has he now received al of those facts in regards to incentive payments after
his col eague Mr Jackson said on
One News that the Minister hadn't received all the
facts?
Released
Hon PEENI HENARE: I have always known about the incentive mechanisms in the
contract.
1982
Act
Withheld under Section 9(2)(a)
Information
Official
the
under
Released
to publish the letter, once it is finalised, on the OAG website. Publishing the letters on their
website is standard practice for OAG.
6. Following discussion and review, the OAG agreed to provide the final copy of the letter to
Michelle Hippolite, and publish the letter on their website, on 15 Paenga-whawha 2019 and
to provide Te Puni Kokiri the opportunity to inform Ministers and Commissioning Agencies
of the letter prior to its public release.
7. An advance copy of the letter is
attached to this aide memoire for your reference. Officials
intend to inform the Commissioning Agencies, and provide a copy, of the letter on the
morning of 15 Paenga-whawha, prior to the public release of the letter that afternoon.1982
Comment
Act
8. The letter from the OAG noted that no evidence was found that indicated Te Puni Kokiri
has incurred expenditure that is unlawful. In other words, the OAG did not identify anything
that suggested payments were made in excess or outside the scope of Parliamentary
appropriations or other legislative authority, or that Te Puni K6kiri has otherwise acted with
financial impropriety. In addition, the OAG were satisfied that Te Puni Kokiri has appropriate
processes and practices in place to ensure that the agreed outputs have been achieved,
or delivered, before the incentive payments are made.
9. The OAG acknowledged that the objective of incentive payments is to encourage
innovation and improve the delivery of Whanau Ora outcomes. To encourage and stimulate
Information
increased performance, the OAG noted that the incentivised targets should be suitably
challenging but not so challenging that they are unobtainable. The OAG also noted that it
is important that the targets are agreed at an appropriate time in the performance period.
10. The OAG considered it important for Te Puni K6kiri to regularly review the incentive
payment scheme, including the targets that are set to ensure they are suitably challenging,
and the timing of the target-setting process. Officials agree with this finding and will
Official
endeavour to ensure this process is implemented in the future.
11. The OAG signalled that its Annual Work Plan includes undertaking a performance audit
the
that will follow up on its previous audit of Whanau Ora. The audit will include further
consideration of contract management systems and practices with Commissioning
Agencies as part of the OAG's annual audit of Te Puni K6kiri. Officials have noted the
OAG's intention to undertake a performance audit and will work with the OAG to provide
any information required.
under
Risks and mitigation
12. Commissioning Agencies have not yet been made aware of the letter from the OAG
outlining its findings with regard to the incentive payment process. Commissioning
Agencies may be dissatisfied with the content in the letter, or with the publication of the
letter. Officials intend to mitigate this risk by providing a copy of the letter, and discussing
the content of it, with Commissioning Agencies prior to the public release of the letter.
Released
13. Although the letter acknowledges that the incentive payments were carried out without
financial impropriety, officials consider that further action or scrutiny is likely to occur. In
particular, the public release of the letter is likely to spur media and public attention on the
Whanau Ora incentive payments. The findings within the OAG letter, or the key messages
Page 2
1982
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
1982
Act
Withheld under Section 9(2)(a)
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
1982
Act
Information
Official
the
under
Released
Document Outline
