Council Annual Report ticked off by Audit
Council adopted its Annual Report 2011-12 last week following a very clean audit by Deloitte.
"The audit process looks at a number of areas and processes," said Ben Smit, Council's Corporate Group Manager. "Council is pleased that we passed with flying colours on how we review our estimates and make judgements; how we manage our sensitive expenditure; conflicts of interest for both elected members and management; policies and procedures in relation to fraud; progress against work planned (capital expenditure); council controlled organisations; decision making and consultation; and legislative compliance."
In terms of the revaluation area, audit suggested a few improvements to how we conduct revaluations. "Each year Council revalues a group of assets; this year we looked at parks and reserves, land and buildings. Improvements are identified each time; Council will be revaluing water supply and wastewater this coming year."
The Annual Report indicates that Council spent $544,000 more than we received.
"There are three key reasons for this," said Mr Smit. "Part of this relates to the legal costs and pay out relating to the High Court determination of the legal case with Council's previous solid waste contractor. However, Council is appealing that decision and we are hopeful that this amount will show up in this year's finances as a plus."
In addition Council is constantly refurbishing its roads. A few have been refurbished a little earlier than anticipated so the remaining value of the roads had to be written off. Also the timing of the grants and donations received for the South Waikato Sport and Events Centre are out of sync with our budget so this shows as a variance to budget.
Due to the slow economic climate, the revaluation of land, building, parks and reserves was also lower than budget. However this is an accounting entry only and has no impact on actual cash or the ratepayer. ends: words: 310
The Annual Report 2011-12 is now available. Access here.