The Department of Internal Affairs has implemented major
changes after more than $12 million in overstated funding was
granted by the Lottery Grants Board last year.
In December, Internal Affairs issued a statement
acknowledging the forecasting errors for funds made available
to the Lottery Grants Board in 2013-14.
Those funds - $12.44 million - were honoured by the board as
it was able to use reserves to meet the promised higher
amount, Lottery Grants Board secretary Robyn Nicholas said.
An independent review into the error by PwC was released to
the Otago Daily Times under the Official Information
Of the 18 pages in the report, 10 pages were withheld by the
department as they could affect the ''free and frank
expression of opinions''.
An internal audit by Internal Affairs, which recommended
management make improvements to the grant-related system, was
also considered during the PwC review.
PwC recommendations adopted by Internal Affairs include
moving from multiple spreadsheets to a functional client
management system, better reporting on financial forecasts
and increased training for back-up finance staff.
During 2013, more than $220 million in lottery profits was
returned to the community via statutory agencies and