Changes suggested for council asset valuation

There is room for improvement in how the Central Otago District Council values it assets, Audit New Zealand says.

The public sector watchdog did not dispute that the value of council assets increased by almost $1million in the 2018-19 financial year, but made recommendations regarding how valuations were conducted in the future.

The council’s books were the focus of an Audit New Zealand report presented at an online meeting of the council’s audit and risk committee yesterday.

According to the report, the council revalues specific assets on a cyclical basis.

Those revalued in 2018-19 were roading, three waters (water supply, waste water and stormwater) and land and buildings.

Appointed auditor Dereck Ollsson told the meeting the valuation resulted in an increase in the value of the council’s asset base of about $99.9million.

Improvements could be made, he said.

When it came to roading, the valuer had made assumptions about installation dates, as construction date information was not recorded; it was recommended management review and update dates for the next valuation.

In the case of three waters, the valuers noted detailed component information for new plant projects completed since the previous valuation had not been included in the plant asset register.

Instead, high level project costs had been used, Mr Ollsson said.

‘‘More detail can be included in the system.’’

When it came to the council’s annual report he suggested quality assurance measures be implemented ‘‘so once we receive the report it is full and complete product’’.

He recommended changes be made to address these issues to allow for more accurate internal and external reporting of asset information.


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