Businessman Joe Butterfield censured, fined $28,000

Joe Butterfield accepted he did not carry out the engagements to the standard expected of a chartered accountant. Photo / 123RF

Prominent South Canterbury businessman Joe Butterfield has been censured by the New
Zealand Institute of Chartered Accountants and made to pay a total almost $28,000 in penalty and costs.

He was censured for drawing fees as a trustee for three months, after he had been replaced as a trustee, non-compliance of record keeping and that he failed to act with co-trustees, in an unnamed estate's administration.

Butterfield (78) is a former chairman of the South Canterbury District Health Board for
nine years, was honoured with a New Zealand Order of Merit for services to business and
community in 2013 and is in the Timaru District Council's Hall of Fame, for International
Sportspersons or Administrators; namely for yachting-related achievements.

In March 2015, Butterfield was replaced by then health minister Dr Jonathan Coleman as
chairman of the Southern District Health Board, a role he had from 2010.

Butterfield was contacted yesterday and said he would not be appealing the tribunal's
decision, otherwise he had "no further comment to make".

In the decision by the institute's disciplinary tribunal, released last month, the four person
Wellington-based tribunal said Butterfield accepted he did not carry out the engagements
to the standard expected of a chartered accountant, acting as a professional trustee.

The decision said it had taken into account Butterfield was no longer in public practice
nor doing any accounting work.

In its finding, the tribunal said it had been advised Butterfield continued to be a co-trustee of six trusts, and ordered copies of its decision be sent to those co-trustees; to which Butterfield made no objection.

The complaints against Butterfield were laid by an unnamed male and female, of which
he had acted as their accountant, and also as trustee or executor of their estates.

He had failed to act unanimously with co-trustees in administering an estate, nor complied with trust deed provisions over record keeping and his payment of remuneration.

The member [Butterfield] continuing to act as though he was a trustee of that trust and
to draw fees for his professional services for approximately three months after he had been replaced as a trustee," the decision said.

He had been replaced as trustee on September 16, 2016.

On the charge of "conduct unbecoming" an accountant, the decision said Butterfield
accepted he did not address perceived conflicts of interests, or "threats to his objectivity", and his failures "represent a significant oversight and breach" of the institute's code of conduct.

Butterfield, who the institute described as having a "previously unblemished record over
a number of decades", was ordered to pay the institute a penalty of $4000.

A costs order against Butterfield was made for $23,913, but he sought to have those
reduced to $15,000 and queried the charge-out rate.

However, the tribunal found the costs order was "fair and reasonable", and ordered Butterfield pay $23,900.

The tribunal said it had no issue suppressing the complainants' names and those of Butterfield's clients, but it also wanted to name the company he was a director or consultant of during the relevant period.

His conduct occurred "within the environment of that firm", the decision said.

However, Butterfield requested name suppression of the firm, pleading if there was to be
criticism of the firm, it should have the opportunity to be heard, also saying where he worked at the time "is of little moment".

The decision said given no complaint was laid against the firm, it would follow general
practice and suppressed Butterfield's firm's name.

- Otago Daily Times