Part 2: Timeliness in annual reporting

2.1
In this Part, we set out:

• the statutory requirements for adopting and publicly releasing an annual report; and
• when local authorities:
  • adopted their annual reports and the reasons why some local authorities were late in doing so;
  • publicly released their annual reports; and
  • publicly released their audited summary annual reports.

2.2
Annual reports provide information that helps communities to assess how well their local authorities perform. For communities to do this effectively, the information must be comprehensive and timely.

2.3
Each year, we look at how timely local authorities' annual reports have been.

2.4
The Act requires each local authority to:

• complete and adopt its annual report – containing audited financial statements and service performance information – within four months after the end of the financial year;
• make publicly available its annual report within one month of adopting it; and
• release an audited summary of the annual report within one month of adopting the annual report.

2.5
The local authority decides when to prepare and publish the audited annual reports and summaries, within the timing requirements of the Act.

Adopting annual reports

2.6
For 2011/12, only one authority missed the deadline to complete and adopt its audited annual report within four months after the end of the financial year, an improvement on the previous two years.

2.7
Figure 1 shows the dates when our audits of local authorities were completed, which gives an indication of when local authorities were able to adopt their annual reports.

Figure 1
When local authority audits for 2008/09, 2009/10, 2010/11, and 2011/12 were completed

* We excluded the former Auckland local authorities in the 2008/09 and 2009/10 totals but included Auckland Council in 2010/11 and 2011/12. Auckland Council prepared a report for the eight months ended 30 June 2011 and had to meet the same statutory time frames as other local authorities.

2.8
One local authority failed to meet the statutory deadline for 2011/12, eight failed to do so for 2010/11, and seven for 2009/10. The local authority that failed to meet the statutory deadline for 2011/12 had met the deadlines for 2010/11 and 2009/10.

2.9
We are disappointed that, despite better timeliness overall, one local authority missed the deadline. This failure highlights the need for local authorities to know and have appropriate procedures and resources to meet - their statutory obligations.

2.10
In line with what happened in 2010, many local authorities will want to adopt their 2012/13 annual reports before the October 2013 local body elections. Being able to adopt an annual report early depends on how well a local authority plans and prepares for it.

Releasing annual reports to the public

2.11
We looked at when local authorities released their annual report to the community. The Act allows up to one calendar month between when a local authority adopts the annual report and when it releases that report. Figure 2 shows how well local authorities met this deadline.

Figure 2
When local authorities released their annual reports for 2008/09, 2009/10, 2010/11, and 2011/12

2.12
One local authority missed the one-month deadline for releasing its annual report to the community. The local authority that failed to meet the statutory deadline for 2011/12 had met the 2010/11 and 2009/10 deadlines.

2.13
Most local authorities publish their annual report on their website. In our view, local authorities should be able to publish their annual reports on a website within a few days of adopting their reports. We expect all local authorities to be able to achieve this.

2.14
Compared with previous years, more local authorities are releasing their annual report soon after adopting it.

Releasing summary annual reports to the public

2.15
We reviewed the timing of the release of audited summaries of annual reports. Releasing an audited summary is an important part of a local authority's accountability to its community. The summary is the most accessible and understandable information for most readers, and the easiest document to circulate and make widely available.

2.16
Figure 3 shows that, compared with the previous three years, there was a slight increase in 2011/12 in the number of local authorities that made summaries of annual reports available within the statutory deadline of one month after adopting the annual report.

Figure 3
When local authorities released their audited summary annual reports for 2008/09, 2009/10, 2010/11, 2011/12

2.17
Three local authorities did not provide their community with audited summaries of their annual report within one month of adopting their annual report. All of these local authorities had met the deadline for 2010/11.

2.18
As with the annual report, local authorities know they must produce a summary annual report. We consider that local authorities need to project-manage how they produce and publish their summary annual report.