Last week, Audit NZ director Dereck Ollsson wrote to the council saying it had decided to defer signing off the audit report until after the statutory December 31 deadline.
In the document, he said their ability to complete the audit had been significantly affected by the accumulation of several issues, including a high volume of errors in the consolidation process and misstatements it had identified during the audit process.
"For us to be able to complete a quality audit for the city council and its community, we need quality information in a timely manner in order to give us the necessary time to complete the work.
"We have not received that in relation to several significant matters."
Council finance and assurance group manager Michael Day responded, indicating his disappointment about the whole situation.
He believed Audit NZ failed in its communication.
During a meeting with Mr Ollsson on November 24, he asked whether there was anything that would prevent the signing of the annual report on December 20.
"To which your reply was ‘nothing’.
"From the issues outlined in your letter those issues were very real at 24 November, and should have been highlighted immediately."
The matter was brought to the council yesterday during a risk and assurance committee meeting where members pointed out they faced similar delays last year.
Chairman Bruce Robertson acknowledged the situation was frustrating but said it was likely the process would be concluded in February.
Cr Darren Ludlow was unhappy that Audit NZ blamed the council for the delay.
He called for a sector-wide response as he believed many councils would face a similar situation.
Invercargill Mayor Nobby Clark agreed in part and believed his council should make a stand on its own.
"I just found this whole letter ... just a butt-covering exercise and it needs to be challenged."
