Update on outstanding matters related to Kaipara District Council audits

22 August 2012

File Ref: EN/LCA/03-3318

Kaipara District Council
Private Bag 1001
Dargaville 0310

Dear Mayor and Councillors

On 13 August 2012, I wrote to you setting out the significant outstanding matters relating to the audits of the Council’s 2010/11 annual report and 2012-22 Long-Term Plan (LTP). That letter included separate letters from our Appointed Auditor on each audit, and a possible audit report wording on the 2010/11 annual report.

I understand those letters were tabled and considered by the Council in Committee on the same day, but that they have not yet been circulated more widely.

Since that date, Council management and our Appointed Auditor have continued to deal with the outstanding issues and their potential impact on the 2010/11 annual report or LTP. These matters are set out on page 3 of our letter to the Council about the annual report (headed “The outstanding issues related to the 2011 audit”) and on pages 3 and 4 of our letter about the LTP audit (relating to disclosures of information within the LTP, calculations in the financial model, and performance information).

Significant matter for your attention: Financial viability

The remaining significant matter relating to both the 2010/11 annual report and the LTP is your own assessment of the Council’s financial viability. Your assessment of whether the Council is a going concern is critical and requires your specific attention. I understand you met yesterday to consider this.

Our Appointed Auditor will work with the Council to finalise these matters.

Publication of our letters

In my covering letter on 13 August, I said I expected the Council to make public that letter and the attached letters about the 2010/11 annual report audit and the LTP audit. I confirm that this is still my expectation, and advise that we will publish those letters and this letter on our website today.

Yours sincerely

Bruce Robertson
Assistant Auditor-General, Local Government