Introduction

This report is our "annual report" on the audits for 2000-01 of the local government sector in the Auditor-General’s portfolio. Most of these audits are of regional and territorial local authorities – including their subsidiaries – that are established and governed principally by the Local Government Act 1974.

Purposes of this Report

The purposes of this report are to:

• tell Parliament and the local government sector about matters arising from our role as auditor of the sector;
• identify areas appropriate for legislative clarification or amendment; and
• outline our expectations of "best practice" on issues of financial management and reporting, governance, compliance with legislation, and contracting.

Companion Volume – Looking Back and Looking Forward

This report is shorter than in previous years. It should be read as a companion volume to the report of the outgoing Controller and Auditor-General, David Macdonald, entitled Local Government – Looking Back and Looking Forward which was presented to the House of Representatives in May 2002.

That report contained an overview of changes in local government administration during David Macdonald’s term as Auditor-General, and an outline of what he saw as the future challenges for both local government and the Audit Office.