'A double up in compliance': Mayor questions annual report red tape

A Canterbury district council has questioned the regulatory burden while adopting its annual report.

Waimakariri District Council adopted its 2023/24 Annual Report on Tuesday, October 15, but questioned the need for it following on from its audited Long Term Plan (LTP).

‘‘It is a massive document,’’ Mayor Dan Gordon said.

‘‘But it does seem like a double up in compliance. When we have a fully audited LTP, why do we have to do a fully audited annual report when it is essentially reporting on the same thing.

‘‘Maybe it is something the Government could look at, especially when we are being advised to be more efficient.’’

The cost of auditing fees from Audit New Zealand has long been a contentious issue for councils.

Last year North Canterbury’s three councils called for a review of the way Audit NZ conducts its auditing of councils.

All three have faced hikes in their audit fees, leading them to question the scope of the audits and whether they provide value for ratepayers’ money.

Audit NZ proposed a 47 per cent hike last year for the Kaikōura District Council to $188,730, which would have been 2 per cent of the council’s annual budget.

A spokesperson for the Office of the Auditor-General said last year that auditing gave transparency on council activities, but acknowledged it could be a burden on smaller councils.

‘‘Audits give communities trust and confidence that councils are fairly reporting on how they use ratepayers’ money and the services they provide to communities.’’

The Waimakariri District Council posted a net surplus for the year of $50 million, $24 million higher than budget.

‘‘The surplus is greater than budget, but it doesn’t tell the full story as it includes assets and land being transferred to the council,’’, acting finance and business support general manager Greg Bell said.

The council’s revenue was $145 million, while expenditure was $156 million, $18.9 million above budget.

The extra $18.9m in expenses was due to ‘‘overspend’’, resulting from installing a new computer system and renewal and upgrade work ‘‘which doesn’t always have a capital value’’, Mr Bell said.

The council’s debt grew from $180 million to $200 million during the year, which was about 6% of the council’s total asset value of $2,626 million.

By David Hill, Local Democracy Reporter

■ LDR is local body journalism co-funded by RNZ and NZ On Air.