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Rest Assured - August 2004

I am writing this editorial in what is perhaps the lull before the storm. The range of topics in this newsletter reflects the business as usual aspects, but hints at the new requirements and associated responsibilities affecting all of us over the next few years. New LTCCP expectations (full outcomes based, and audited), and the implementation of NZ IFRS, are issues we need to be aware of.

Rest Assured - May 2003

Five months into the life of the new Local Government Act 2002 (the Act), how would we say we are faring? At its most immediate and commonplace, the Act reformulates and restates many of the principles and processes that we were all familiar with in the Local Government Act 1974. Yet the LGA Listserv and our conversations with you simply buzz with questions, confusion, tips and hints. The Act is clearly challenging our thinking.

Rest Assured- November 2002

This newsletter comes midway through clearance of local authority annual reports. Implementation of FRS-3 "Accounting for Property, Plant & Equipment" has provided some challenges. The sector generally has coped well with the changes, with any issues along the lines discussed prior to the reporting round. This issue does "mop up" one of the areas that has received some media coverage - heritage assets. With the completion of the 2002 reporting round by end of November, focus will fall on implementation of the Rating Act. Many authorities are already anticipating the LG Bill's passage and we note some of the feedback received from and given to the sector. We also offer a "heads up" on new consultation techniques and Deputy Auditor-General Kevin Simpkins notes a new initiative in progressing verification of sustainable development reports. With the impending implementation of two significant new pieces of local government legislation, authorities and their auditors have much to discuss. We would welcome the opportunity to talk these issues over as the current audits are wrapped up and we meet for our annual exit discussions.

Rest Assured - August 2002

The auditor's lot at this time of the year is "heads down" and working to finalise audit opinions. While some local authorities are nearing completion, much of our focus is on Council LATEs. However as a result of our Local Government Seminar Series and Councils "balancing their books" a range of issues are becoming apparent. Often they are relevant to most authorities. This newletter focuses on a number of these particularly accounting for landfills, the definition of affiliated entities and valuation of assets. We also note two other matters coming across our desk - members' interests and consultation. Many COuncils will be meeting with their audit director over the next couple of months. We would urge Councils to explore and discuss these on-going matters with their auditors.

Rest Assured Guidance - August 2002

Accounting for landfills is proving to be more problematic than first anticipated. The prime area of difficulty continues to be that relating to colsure and post-closure costs.

Rest Assured Paper - July 2002

Local authorities are currently wrestling with the thorny issue of not only how to account for heritage assets but what actually constitutes such an asset. Head-scratching challenges may include the most appropriate method of valuing such diverse assets as a native moth collection, a century-old town hall building and a tree. Audit New Zealand sees strong value in encouraging debate within the sector and an exchange of ideas on best practice. To that end, we have prepared a discussion paper covering the sector's likely approach, directing local authorities to relevant guidance, and providing suggestions on areas such as valuation and capitalisation of expenditure for a variety of asset groups.

Rest Assured - May 2002

The Local Government Bill - it may not rule yet, but it is certainly dominating Councillors, Chief Executives and Senior Managers’ thinking. When will it be reported back to the House? Will it be passed before the election? These are the usual questions posed during our many discussions with the sector. While many of the issues in the Bill are still being robustly debated – Part 5, for example – many councils appear anxious to start work now on the expected regime. We are fielding a number of calls on preparing strategies and LTCCPs. The Bill also promotes the concept of Triple Bottom Line Reporting or, as it is increasingly known, Sustainable Development Reporting. In this edition, our specialist Leanne Holdsworth looks at the Bill through an SDR lens. As well as the Local Government Bill, councils also now have the Rating Act to wrestle with. In the midst of these challenges, comes the annual "audit round". This year sees the introduction of the new Financial Reporting Standard 3: Accounting for Property, Plant & Equipment. FRS-3 has been much debated and was the core subject of our well-attended accounting seminars last year. The focus now is implementation. This issue has two articles on assets not generally recognised under SSAP 28 but which must be recognised for 2002 under FRS-3 – heritage assets and land under roads. The question is what value to put on these? Brian Smith outlines the broad view on heritage assets, augmented by a think piece on our website www.auditnz.govt.nz,while John Dunckley of DTZ New Zealand comments on valuing land under roads. All in all, 2002 looks like being a challenging year for councils and auditors alike!