Taxpayer funded left leaning RNZ has revealed an $11.8 million loss for the year to June, more than 25 times the $470,000 it had forecast, and plans to cut the equivalent of 58 full-time jobs by the end of March.
The public broadcaster published its annual report on Monday, setting out plans to axe about one in six staff and cut running costs by at least 5 percent.
Chief executive Paul Thompson said he took responsibility for the "poor and unsustainable" result.
"Personally, I am gutted this has occurred after more than a decade of leadership of RNZ," he wrote.
"This was not the outcome RNZ anticipated or one that management regards as acceptable. We recognise this is a poor result, and it deserves a clear explanation."
The full scale of the loss only became clear in October, while the company was finishing its annual accounts and having them checked, Thompson said.
The board and management had relied on "internal financial reporting" that gave them the wrong picture, meaning RNZ failed to cut spending enough after a 7 percent drop in regular funding.
RNZ wrongly counted $2m from land sales as income in its budget. Staff costs came in $3.2m over budget, including $1.4m in redundancy payments. Other running costs went $6.4m over budget, with much of the extra spending tied to the recent Auckland office move and work to get properties ready to sell.
Thompson said his focus now was on restoring RNZ to a "sustainable financial position."
"We must make difficult choices to live within our means, and I recognise those changes will be hard for our people," he wrote.
Proposed changes affecting staff would be subject to the required employment processes, RNZ said.
Former chair Jim Mather, who had oversight during the financial year, said the result was "extremely disappointing" and acknowledged the board was ultimately responsible for "prudent financial stewardship."
The board — now chaired by Brent Impey — would commission an independent review into the loss, why RNZ's own reports failed to pick it up and whether it had the right checks in place.
RNZ brought in $70.6m over the year, putting the loss at about $1 for every $6 of income. Government funding made up $67.3m of that total, most of it through NZ On Air.
The company expected to lose another $7.8m this financial year and said it had enough money in reserve to get through until its finances stabilised in 2027/28. The broadcaster ended June with $8.5 million in cash, down from $18.8 million a year earlier.
EY, which audited the accounts for the Auditor-General, flagged a breach of the Crown Entities Act over a $5m overdraft RNZ set up without the required approval from ministers. RNZ was authorised for an overdraft only up to $3.5m. The report said RNZ drew down no more than $2.3m through the financial year and had since closed the overdraft.
The broadcaster was also checking whether it needed approval for a separate $3.7m deal to sell equipment for its new Auckland office and rent it back.
In a fresh statement on Monday, Impey said RNZ would continue delivering trusted public media.
"This is a financial reporting, controls and oversight issue. It does not impact RNZ's journalism or its content for audiences."
The report follows the unexpected resignation of chief financial officer Hilary Parker, who left immediately on 2 October. Her departure prompted an emergency board meeting and the appointment of director Richard Dellabarca as interim finance chief. Impey previously declined to explain her departure, but said Parker had resigned of her own accord and there was no suggestion of criminality.
Thompson is due to leave RNZ on 31 December, having announced his resignation on 22 May. NZME's chief audio officer Jason Winstanley will take over in 2027. Chief News Officer Mark Stevens will be interim CEO from 1 January until Winstanley's start date.