Part 7: Events are still unfolding

7.1
As we have mentioned, events resulting from the 2024/25 contracting round have continued to unfold as we completed this report.

7.2
Oranga Tamariki assured us that it was improving its processes, in part in response to an independent review of its social service provider contract management that it commissioned from Ernst & Young Limited (EY) in August 2024.³²

7.3
We asked Oranga Tamariki to provide us with further information on the steps it had taken to implement EY's recommendations. Oranga Tamariki told us that it considered that, of the 12 recommendations EY had made in its December 2024 report:

• five were actively progressing;
• five were in the early scoping stage; and
• two recommendations had been completed.

7.4
However, at the time we wrote this report, Oranga Tamariki had not provided information that was detailed enough to reassure us that it had made material improvements to its procurement and contract management systems.

7.5
We were told that the Minister's announcement on 30 January 2025 that Oranga Tamariki had been asked to extend a range of contracts to 31 December 2025 delayed many of the actions Oranga Tamariki had planned to implement.

7.6
We understand that Oranga Tamariki was asked to provide advice about the Minister's request the evening before it was announced. This meant that, when we wrote this report, Oranga Tamariki was assessing the implications of the Minister's request and rethinking how and when it would implement changes.

7.7
As mentioned in paragraph 6.28, Oranga Tamariki also had yet to finish work on refreshed terms and conditions and providing social sector pay equity funding.

7.8
Our inquiry did not focus on the Minister's request to pause the contracting round and extend certain contracts to 31 December 2025. However, it has a strong link to our work. When we were finalising our inquiry, there was a lack of clarity about the financial implications of the request and the processes that had been followed to approve a potentially significant use of public resources.

7.9
In addition to the actions being taken to address the EY recommendations, Oranga Tamariki announced changes to roles and responsibilities in its senior leadership team in February 2025. Specifically, Oranga Tamariki:

• changed the focus of the Deputy Chief Executive, Enabling Communities & Investment's role to devolving services and functions to its partners; and
• established and appointed a new Deputy Chief Executive, Commissioning and Investment role.

7.10
Oranga Tamariki told us that the new Deputy Chief Executive had begun planning for a revised Commissioning and Investment strategy and action plan, which was due to Cabinet for consideration by the end of August 2025.

7.11
We intend to monitor this situation closely and follow up with Oranga Tamariki as it makes improvements in response to this report's recommendations.

32: This work was intended to be completed in two phases. However, Oranga Tamariki discontinued the second phase after we publicly announced that we would inquire into its procurement and contract management practices.