Hamilton City Council has voted to accept recommendations made in an audit report that severely criticised the council's handing of V8 Supercar racing in the city.
The Audit New Zealand report, released two weeks ago, highlighted problems with the council's spending on hosting the race since 2008, including governance structures and reporting processes.
The council voted unanimously to accept proposals from its chief executive to improve reporting structures, accountability and governance so something similar does not happen again.
Mayor Julie Hardaker says the council now has to work hard at restoring public confidence in councillors and senior management.
She says this will include carrying out a review on contracts undertaken in the last few years to make sure everything is above board.
Ms Hardaker says the Government has the council on notice and the vote will send a clear message the council is now on the right track.