Each council's financial statements are audited annually under the Auditor-General Act 2009, the Financial Accountability Act 2009, and the Financial and Performance Management Standard 2009.

The chief executive officer (CEO) presents a statement of accounts at council meetings. Before 30 November each year, council must prepare and adopt an annual report for the last financial year and this report must address issues of public interest. Ideally the CEO also will present council with a review of the local government’s long-term financial forecast.

Local governments are required to include a community financial report containing a summary and analysis of the financial performance and position in a form that is readily understandable. This report is intended to give members of the community (who may not readily understand formal financial statements) an understanding of the financial performance and position of the council.

Legislation extracts

• Local Government (Finance, Plans and Reporting) Regulation 2010 - s152 Financial report

   

  152 Financial report (1) The local government must prepare a financial report. (2) The chief executive officer must present the financial report— (a) if the local government meets less frequently than monthly—at each meeting of the local government; or (b) otherwise—at a meeting of the local government once a month. (3) The financial report must state the progress that has been made in relation to the local government’s budget for the period of the financial year up to a day as near as practicable to the end of the month before the meeting is held.

• Local Government (Finance, Plans and Reporting) Regulation 2010 - s104 Preparation of long-term financial forecast

   

  104 Preparation of long-term financial forecast (1) A local government must, at least annually, prepare a long-term financial forecast. (2) The long-term financial forecast must— (a) contain a forecast of the following for each year during the period of the forecast— (i) income; (ii) expenditure; (iii) the value of assets, liabilities and equity; and (b) include the following documents covering each year of the period of the forecast— (i) a statement of financial position; (ii) a statement of cash flow; (iii) a statement of income and expenditure; (iv) a statement of changes in equity. (3) The long-term financial forecast must also state the relevant measures of financial sustainability for the period of the forecast. (4) The long-term financial forecast must cover a period of at least 10 years and be reviewed annually. (5) The local government must consider the long-term financial forecast before planning new borrowings.

• Local Government (Finance, Plans and Reporting) Regulation 2010 - s103 Preparation of community financial report

   

  103 Preparation of community financial report (1) A local government must prepare a community financial report for each financial year. (2) The community financial report for a financial year must— (a) contain a summary and an analysis of the local government’s financial performance and position for the financial year; and (b) be consistent with the general purpose financial statement for the financial year; and (c) include the relevant measures of financial sustainability for the financial year; and (d) be in a form that can be easily understood by the community.