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Local Government Act 2002

Council-controlled organisations and council organisations - Monitoring and reporting

69: Financial statements and auditor's report

You could also call this:

“The council's company must show its money details and goals in a yearly report”

When a council-controlled organisation reports on its operations, it needs to include some important financial information. This report must have audited financial statements for the organisation and any companies it owns. These statements show all the money that came in and went out during the year.

The report also needs to include a special report from an auditor. This auditor’s report looks at two things. First, it checks if the financial statements are correct. Second, it looks at how well the organisation met its goals and targets for the year.

It’s important that the financial statements are prepared in a specific way. They must follow rules that accountants use, called “generally accepted accounting practice”. This helps make sure the information is accurate and easy to understand for people who need to read it.

All of this information helps people see how well the council-controlled organisation is doing with its money and its goals. You can find more details about what needs to be in the report in section 67 of this law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM172300.

Topics:
Government and voting > Local councils
Business > Industry rules
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“The Auditor-General checks the books for groups run by the council”

Part 5 Council-controlled organisations and council organisations
Monitoring and reporting

69Financial statements and auditor's report

  1. A report on the operations of a council-controlled organisation under section 67 must include—

  2. audited consolidated financial statements for that financial year for that organisation and its subsidiaries; and
    1. an auditor's report on—
      1. those financial statements; and
        1. the performance targets and other measures by which performance was judged in relation to that organisation's objectives.

        2. The audited financial statements under subsection (1)(a) must be prepared in accordance with generally accepted accounting practice.

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