Part 2: Audit of the planning document

2.1
In this Part, we explain the requirement for the planning document to be audited and the overall audit opinion we expressed.

2.2
The planning document was completed within the statutory deadline of 31 October 2010. We concluded that the planning document meets the legislative requirements, and provides a reasonable basis for accountability and input into Auckland Council's future planning and decision-making.

2.3
In our audit opinion, we also drew attention to certain aspects of the planning document:

• its preparation for, rather than by, Auckland Council;
• the underlying assumptions and information being those of the former councils and the Auckland Transition Agency;
• levels of service, which are different across Auckland and its local board areas, being presented on an average basis; and
• financial and funding policies that remain to be integrated by Auckland Council.

The audit requirement and our approach

2.4
The planning document must be audited by the Auditor-General or a person appointed by the Auditor-General. The audit must assess the extent to which the planning document complies with the requirements of the legislation.³

2.5
Because the planning document had to be based on the long-term plans of the former councils, which we audited in 2009,⁴ and because of the similarities between the requirements for the planning document and those for long-term plans, we used and updated our existing long-term plan audit methodology. We also used the work from our earlier audits of the former councils where this was possible.

2.6
The planning document and its audit are both significant for and unique to the Auckland reform process. In the circumstances, we had to approach our work differently. Major points of difference in our approach were:

• our audit work had to be planned and initiated before the policy development and legislative process had been completed;
• we completed our audit work concurrently with the preparation work by the Auckland Transition Agency and its workstreams; and
• as a result, our audit work was reliant on effective working relationships with a wider range of agencies than would normally be the case.

Our audit opinion

2.7
The planning document, including our audit of it, was finalised before the statutory deadline of 31 October 2010. In our audit opinion, we concluded overall that:

• the planning document, prepared by the Auckland Transition Agency on behalf of Auckland Council, complies with the requirements of the legislation in all material respects; and
• as a transitional document, the planning document provides a reasonable basis for accountability and input into future planning and decision-making by Auckland Council and its communities.

2.8
The Appendix sets out the text of our audit opinion.

Aspects of the planning document that we highlighted

2.9
In our audit opinion, we included an explanation (mirrored in the planning document) of how the planning document had to be prepared, and the implications of this.

Preparation by the Auckland Transition Agency

2.10
Auckland Council's planning document was required to be in place before Auckland Council became operational on 1 November 2010. The Auckland Transition Agency was responsible for preparing it before 31 October 2010.⁵

2.11
Because the planning document is based on the long-term plans and annual plans of the former councils, it reflects the cumulative decisions and information of those councils and the decisions of the Auckland Transition Agency.

2.12
Because Auckland Council did not exist before 1 November 2010, the Council did not have the opportunity to formally consider the planning document before it was finalised. After 1 November 2010, Auckland Council can assess the extent to which the planning document, as prepared, represents its own aspirations and intent. This assessment may give rise to a range of responses from acceptance to significant revision.

No separate consultation

2.13
The reform legislation did not require public consultation when preparing the planning document, although elements included within it have been consulted on by the former councils.

Other matters we highlighted

2.14
We also highlighted in our audit opinion three key aspects of the planning document:

• Assumptions and underlying information – to a large degree, the planning document reflects the assumptions and underlying information of the former councils, and of the Auckland Transition Agency. We noted in our audit opinion the important assumption about efficiencies and cost reductions for which the source and timing are yet to be identified in detail. We refer to this matter in Part 3.
• Levels of service – the planning document reflects the consolidation of different existing levels of service, the related financial investment, and the associated performance measures and targets. It presents these on an average basis across the Auckland region and its local board areas.
• Funding, financial, and accounting policies – some of the policies used in the planning document are consolidated from the multiple policies of the former councils (the accounting policies and the treasury management policy); others have been brought forward from the former councils (the other interim financial and funding policies) and remain to be integrated by Auckland Council.

3: Clause 7 of Schedule 2 of the Local Government (Tamaki Makaurau Reorganisation) Act 2009.

4: We issued unqualified audit opinions for all these long-term plans. This provided a reasonable basis for planning our audit of the planning document.

5: Section 19A of the Local Government (Tamaki Makaurau Reorganisation) Act 2009.