In November 2019, the University of Auckland purchased a house in Parnell in Auckland. The University said the house would be used for accommodation, business-related operations, and functions. The house cost about $5 million, and the University entered into a tenancy agreement with the incoming Vice-Chancellor from the start of her five-year term of employment.

The Office of the Auditor-General was interested in this matter because it seemed an unusual purchase for the University to make. It raised questions about the University’s use of public resources and how it manages sensitive expenditure. The focus of our work was on the University’s actions and decision-making processes. Overall, it was not clear that the University recognised, at any stage of the process, that the purchase involved sensitive expenditure or gave proper consideration to this when making decisions. The University has not been able to show that this sensitive expenditure was appropriate in all respects. This is because the University has not been able to demonstrate that it has met key principles of managing sensitive expenditure well.

Sensitive expenditure decisions should:  

• Have a justifiable business purpose
• Preserve impartiality
• Be made with integrity
• Be moderate and conservative
• Be made transparently
• Be made with proper authority.