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The OAG's inquiry into the stadium

Case study for students: Dunedin stadium.

After DCC changed its long-term plan, the Office of the Auditor-General (OAG) investigated the matter of the new stadium. As well as exploring the use of public funds, the OAG was interested in the relationship between the two councils, as public organisations, and the Trust, as a private organisation.

The OAG found that the funding arrangement between these groups was appropriate for the stage of the project they were at (pre-final funding decision) and so was the councils' spending.

The OAG said that DCC had "adequately considered" the $5.6 million that it was planning to pay the Trust for more feasibility information. (The sum was risky because the information might not be enough for DCC to make a final decision. Also, the final decision might be ‘no', meaning that a new stadium would not be the outcome.) The OAG felt that DCC had enough checks in place to ensure that it was getting value for money from the Trust.

However, the OAG did make a few suggestions to improve the reporting and payment systems being used. To protect the councils and ratepayers if the new stadium went ahead, the OAG advised setting up more formal funding agreements and risk-management strategies.

See the OAG's good-practice guidelines for funding non-government organisations