Local Government Act 1995
Local Government (Audit) Regulations 1996
Reprint 1: The regulations as at 10 October 2003
Guide for using this reprint
What the reprint includes
Endnotes, Compilation table, and Table of provisions that have not come into operation
1.Details about the original regulations and legislation that has amended its text are shown in the Compilation table in endnote 1, at the back of the reprint. The table also shows any previous reprint.
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3.A table of provisions that have not come into operation, to be found in endnote 1a if it is needed, lists any provisions of the regulations being reprinted that have not come into operation and any amendments that have not come into operation. The full text is set out in another endnote that is referred to in the table.
Notes amongst text (italicised and within square brackets)
1.If the reprint includes a regulation that was inserted, or has been amended, since the regulations being reprinted were made, editorial notes at the foot of the regulation give some history of how the regulation came to be as it is. If the regulation replaced an earlier regulation, no history of the earlier regulation is given (the full history of the regulations is in the Compilation table).
Notes of this kind may also be at the foot of Schedules or headings.
2.The other kind of editorial note shows something has been —
•removed (because it was repealed or deleted from the law); or
•omitted under the Reprints Act 1984 s. 7(4) (because, although still technically part of the text, it no longer has any effect).
The text of anything removed or omitted can be found in an earlier reprint (if there is one) or one of the written laws identified in the Compilation table.
Reprint numbering and date
1.The reprint number (in the footer of each page of the document) shows how many times the regulations have been reprinted. For example, numbering a reprint as “Reprint 3” would mean that the reprint was the 3rd reprint since the regulations were published. Reprint numbering was implemented as from 1 January 2003.
2.The information in the reprint is current on the date shown as the date as at which the regulations are reprinted. That date is not the date when the reprint was published by the State Law Publisher and it is probably not the date when the most recent amendment had effect.
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Reprinted under the Reprints Act 1984 as |
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at 10 October 2003 |
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Local Government (Audit) Regulations 1996
CONTENTS
1.Citation1
2.Commencement1
3.Interpretation1
4.Prescribed amount of debt which disqualifies person as auditor — s. 7.4(2)(b)2
5.Prescribed entity, employment or membership of which disqualifies person as auditor — s. 7.4(2)(c)2
6.Prescribed class of persons, membership of which disqualifies person as auditor — s. 7.4(2)(d)2
7.Audit agreements3
8.Notification required on termination of audit agreement4
9.Performance of the audit4
10.Report by auditor5
11.Statement of hours and fees6
12.Auditor’s conflict of interest6
13.Statutory requirements to be the subject of compliance audit — s. 7.13(i)6
14.Compliance audit return to be prepared9
15.Completion of compliance audit9
Notes
Compilation table10
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Reprinted under the Reprints Act 1984 as |
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at 10 October 2003 |
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Local Government Act 1995
Local Government (Audit) Regulations 1996
These regulations may be cited as the Local Government (Audit) Regulations 1996 1.
These regulations come into operation on 1 July 1996.
In these regulations, unless the contrary intention appears —
“Australian Accounting Standards” means the “Statements of Accounting Standards” issued by the Australian Accounting Research Foundation;
“compliance audit” means an audit of compliance with the statutory requirements prescribed by regulation 13;
“section” means section of the Act.
[Regulation 3 amended in Gazette 23 Apr 1999 p. 1722.]
4.Prescribed amount of debt which disqualifies person as auditor — s. 7.4(2)(b)
The amount prescribed for the purposes of section 7.4(2)(b) is $5 000.
5.Prescribed entity, employment or membership of which disqualifies person as auditor — s. 7.4(2)(c)
The prescribed entities for the purposes of section 7.4(2)(c) are, in relation to a local government —
(a)a regional local government in which the local government is a participant; and
(b)an incorporated association which the local government has formed or taken part in forming under the Associations Incorporation Act 1987.
6.Prescribed class of persons, membership of which disqualifies person as auditor — s. 7.4(2)(d)
(1)The prescribed classes of persons for the purposes of section 7.4(2)(d) are —
(a)persons who are disqualified for membership of a council under section 2.22;
(b)persons who are insolvents under administration within the meaning of the Corporations Act 2001 of the Commonwealth; and
(c)persons who are closely associated with a relevant person.
(2)For the purposes of subregulation (1)(c) a person is to be treated as being closely associated with a relevant person if the person —
(a)is in partnership with the relevant person;
(b)is an employer of the relevant person;
(c)is a beneficiary under a trust, or an object of a discretionary trust, of which the relevant person is a trustee;
(d)is a body corporate —
(i)of which the relevant person is a director, secretary or executive officer; or
(ii)in which the relevant person holds shares having a total nominal value exceeding —
(I)the amount prescribed for the purposes of section 5.62; or
(II)the percentage of the total nominal value of the issued share capital of the company prescribed for the purposes of section 5.62,
whichever is less;
(e)is the spouse, de facto partner or child of the relevant person and is living with the relevant person; or
(f)has a relationship specified in any of paragraphs (a) to (d) in respect of the relevant person’s spouse or de facto partner if the spouse or de facto partner is living with the relevant person.
(3)In this regulation —
“relevant person” in relation to a local government, means a member of the council of the local government or an employee of the local government.
[Regulation 6 amended in Gazette 28 Sep 2001 p. 5357‑8; 30 Jun 2003 p. 2615.]
An agreement between a local government and an auditor is to include —
(a)the objectives of the audit;
(b)the scope of the audit;
(c)a plan for the audit;
(d)details of the remuneration and expenses to be paid to the auditor; and
(e)the method to be used by the local government to communicate with, and supply information to, the auditor.
8.Notification required on termination of audit agreement
(1)Where an agreement between a local government and an auditor is terminated —
(a)the local government is to, within a period of 30 days from the termination, give to the Executive Director —
(i)notice of the termination; and
(ii)the reasons for the termination;
and
(b)the auditor is to, within a period of 30 days from the termination, advise the Executive Director of the termination.
(2)Notwithstanding any provision of an agreement between a local government and an auditor to the contrary, an auditor is to be given notice in writing of the termination of his or her appointment.
(1)An audit is to be carried out in accordance with the “Auditing Standards” and “Auditing Guidance Statements” adopted from time to time by the Australian Society of Certified Practising Accountants and The Institute of Chartered Accountants in
(2)An auditor is to carry out such work as is necessary to form an opinion as to whether —
(a)the accounts are properly kept; and
(b)the annual financial report —
(i)is prepared in accordance with the financial records; and
(ii)represents fairly the results of the operations of the local government and the financial position of the local government at 30 June in accordance with the Australian Accounting Standards and the Act.
(1)An auditor’s report is to be forwarded to the persons specified in section 7.9(1) within 30 days of completing the audit.
(2)The report is to give the auditor’s opinion on —
(a)the financial position of the local government; and
(b)the results of the operations of the local government.
(3)The report is to include —
(a)any material matters that in the opinion of the auditor indicate significant adverse trends in the financial position or the financial management practices of the local government;
(b)any matters indicating non‑compliance with Part 6 of the Act, the Local Government (Financial Management) Regulations 1996 or applicable financial controls in any other written law;
(c)details of whether information and explanations were obtained by the auditor; and
(d)a report on the conduct of the audit.
(4)Where it is considered by the auditor to be appropriate to do so, the auditor is to prepare a management report to accompany the auditor’s report and to forward a copy of the management report to the persons specified in section 7.9(1) with the auditor’s report.
11.Statement of hours and fees
An auditor is to provide to the Minister with the auditor’s report a detailed statement of —
(a)the hours worked on the audit; and
(b)the remuneration and expenses due to the auditor by the local government.
12.Auditor’s conflict of interest
An auditor is to report a possible conflict of interest to the Minister as soon as possible after the auditor becomes aware of the possible conflict of interest.
13.Statutory requirements to be the subject of compliance audit — s. 7.13(i)
For the purposes of section 7.13(i) the statutory requirements set forth in the Table to this regulation are prescribed.
Table
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Local Government Act 1995 |
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s. 2.25 s. 2.29 s. 3.12 s. 3.16 s. 3.18 s. 3.32 s. 3.50 s. 3.51 s. 3.52(4) s. 3.57 s. 3.58(3) and (4) s. 3.59(2), (4) and (5) s. 4.20(2), (4) and (5) s. 4.32(6) s. 4.39(2) s. 4.41 s. 4.43(1) s. 4.47 s. 4.61(2) and (3) s. 4.64 s. 5.4 s. 5.5 s. 5.7 s. 5.8 s. 5.10 s. 5.12 s. 5.15 s. 5.16 s. 5.17 s. 5.18 s. 5.21 s. 5.22 |
s. 5.23 s. 5.24 s. 5.27 s. 5.29(1) s. 5.32 s. 5.33 s. 5.36(4) s. 5.37(2) and (3) s. 5.38 s. 5.39 s. 5.42 s. 5.43 s. 5.44(2) s. 5.45(1)(b) s. 5.46 s. 5.50 s. 5.53 s. 5.54 s. 5.55 s. 5.56 s. 5.57 s. 5.58 s. 5.67 s. 5.68(2) s. 5.73 s. 5.75 s. 5.76 s. 5.77 s. 5.88 s. 5.94 s. 5.95 s. 5.96 |
s. 5.98 s. 5.99 s. 5.100 s. 5.103 s. 6.2 s. 6.4 s. 6.8 s. 6.9 s. 6.11 s. 6.12 s. 6.13 s. 6.17(3) s. 6.19 s. 6.20 s. 6.21 s. 6.33(3) s. 6.34 s. 6.35(4) s. 6.36 s. 6.38 s. 6.46 s. 6.47 s. 6.51 s. 6.76(6) s. 7.3 s. 7.9(1) s. 9.4 s. 9.6(5) s. 9.29(2) Schedule 2.2 cl. 6, 7 and 9 Schedule 2.3 |
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Local Government (Administration) Regulations 1996 |
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r. 5 r. 6 r. 8 r. 9 r. 10 r. 11 r. 12 r. 13 r. 14(1) r. 19 |
r. 22 r. 23 r. 28 r. 30 r. 31 r. 33 r. 34 r. 34A r. 34B r. 34C |
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Local Government (Audit) Regulations 1996 |
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r. 7 |
r. 10 |
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Local Government (Elections) Regulations 1997 |
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r. 7 r. 8 r. 13 r. 17 r. 26(4) |
r. 30G r. 30H r. 40 r. 81 |
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Local Government (Financial Management) Regulations 1996 |
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r. 5 r. 6 r. 8 r. 9 r. 11 r. 12 r. 13(2) r. 19 r. 33 |
r. 34(1)(a) r. 35 r. 51 r. 53 r. 54 r. 55 r. 56 r. 57 |
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Local Government (Functions and General) Regulations 1996 |
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r. 7 r. 9 r. 10 r. 11 r. 12 r. 14(1) and (3) r. 15 r. 16 |
r. 17 r. 18(1) r. 19 r. 21 r. 22 r. 23 r. 24 |
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Local Government (Uniform Local Provisions) Regulations 1996 |
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r. 9(8) |
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Local Government (Miscellaneous Provisions) Act 1960 |
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s. 245A(5)(aa) |
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s. 21(1) |
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Cemeteries Act 1986 |
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s. 40 |
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Local Government Grants Act 1978 |
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s. 12(4) |
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[Regulation 13 inserted in Gazette 23 Apr 1999 p. 1722‑4.]
14.Compliance audit return to be prepared
(1)A local government is to carry out a compliance audit for the period 1 January to 31 December in each year.
(2)After carrying out a compliance audit the local government is to prepare a compliance audit return in a form approved by the Minister.
(3)A compliance audit return is to be —
(a)presented to the council at a meeting of the council;
(b)adopted by the council; and
(c)recorded in the minutes of the meeting at which it is adopted.
[Regulation 14 inserted in Gazette 23 Apr 1999 p. 1724‑5.]
15.Completion of compliance audit
(1)After the compliance audit return has been presented to the council in accordance with regulation 14(3) a certified copy of the return together with —
(a)a copy of the relevant section of the minutes referred to in regulation 14(3)(c); and
(b)any additional information explaining or qualifying the compliance audit,
is to be submitted to the Executive Director by 31 March next following the period to which the return relates.
(2)In this regulation —
“certified” in relation to a compliance audit return means signed by —
(a)the mayor or president; and
(b)the CEO.
[Regulation 15 inserted in Gazette 23 Apr 1999 p. 1725.]
Notes
1This reprint is a compilation as at 10 October 2003 of the Local Government (Audit) Regulations 1996 and includes the amendments made by the other written laws referred to in the following table. This table also contains information about any reprint.
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Citation |
Gazettal |
Commencement |
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Local Government (Audit) Regulations 1996 |
24 Jun 1996 p. 2827‑32 |
1 Jul 1996 (see r. 2) |
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Local Government (Audit) Amendment Regulations 1999 |
23 Apr 1999 p. 1722‑5 |
23 Apr 1999 |
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Corporations (Consequential Amendments) Regulations 2001 Pt. 8 |
28 Sep 2001 p. 5353‑8 |
15 Jul 2001 (see r. 2 and Cwlth Gazette 13 Jul 2001 No. S285) |
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Equality of Status Subsidiary Legislation Amendment Regulations 2003 Pt. 24 |
30 Jun 2003 p. 2581‑638 |
1 Jul 2003 (see r. 2 and Gazette 30 Jun 2003 p. 2579) |
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Reprint 1: The Local Government (Audit) Regulations 1996 as at 10 Oct 2003 (includes amendments listed above) |
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By Authority: JOHN A. STRIJK, Government Printer