Local Government (Audit) Regulations 1996 (WA)
Western Australia
Local Government Act 1995
Western Australia
Local Government Act 1995
These regulations may be cited as the
These regulations come into operation on 1 July 1996.
In these regulations, unless the contrary intention appears —
The amount prescribed for the purposes of section 7.4(2)(b) is $5 000.
The prescribed entities for the purposes of section 7.4(2)(c) are, in relation to a local government —
(a) a regional local government in which the local government is a participant; and
(b) an incorporated association which the local government has formed or taken part in forming under the
Associations Incorporation Act 2015 .
(1) The prescribed classes of persons for the purposes of section 7.4(2)(d) are —
(a) persons who are disqualified for membership of a council under section 2.22; and
(b) persons who are insolvents under administration within the meaning of the
Corporations Act 2001 of the Commonwealth; and(c) persons who are closely associated with a relevant person.
(2) For the purposes of subregulation (1)(c) a person is to be treated as being closely associated with a relevant person if the person —
(a) is in partnership with the relevant person; or
(b) is an employer of the relevant person; or
(c) is a beneficiary under a trust, or an object of a discretionary trust, of which the relevant person is a trustee; or
(d) is a body corporate —
(i) of which the relevant person is a director, secretary or executive officer; or
(ii) in which the relevant person holds shares having a total value exceeding —
(I) the amount prescribed for the purposes of section 5.62; or
(II) the percentage of the total value of the issued share capital of the company prescribed for the purposes of section 5.62,
whichever is less;
or
(e) is the spouse, de facto partner or child of the relevant person and is living with the relevant person; or
(f) has a relationship specified in any of paragraphs (a) to (d) in respect of the relevant person’s spouse or de facto partner if the spouse or de facto partner is living with the relevant person.
(3) In this regulation —
An agreement between a local government and an auditor is to include —
(a) the objectives of the audit; and
(b) the scope of the audit; and
(c) a plan for the audit; and
(d) details of the remuneration and expenses to be paid to the auditor; and
(e) the method to be used by the local government to communicate with, and supply information to, the auditor.
(1) Where an agreement between a local government and an auditor is terminated —
(a) the local government is to, within a period of 30 days from the termination, give to the Departmental CEO —
(i) notice of the termination; and
(ii) the reasons for the termination;
and
(b) the auditor is to, within a period of 30 days from the termination, advise the Departmental CEO of the termination.
(2) Notwithstanding any provision of an agreement between a local government and an auditor to the contrary, an auditor is to be given notice in writing of the termination of his or her appointment.
(1) In this regulation —
(2) An auditor must carry out an audit in accordance with the Australian Auditing Standards made or formulated and amended from time to time by the Auditing and Assurance Standards Board established by the
Australian Securities and Investments Commission Act 2001 (Commonwealth) section 227A.(3) An auditor must carry out the work necessary to form an opinion whether the annual financial report —
(a) is based on proper accounts and records; and
(b) fairly represents the results of the operations of the local government for the financial year and the financial position of the local government at 30 June in accordance with —
(i) the Act; and
(ii) the Australian Accounting Standards (to the extent that they are not inconsistent with the Act).
(1) In this regulation —
(a) the strategic community plan as defined in the
Local Government (Administration) Regulations 1996 regulation 19BA; or(b) the corporate business plan as defined in the
Local Government (Administration) Regulations 1996 regulation 19BA; or(c) another plan or informing strategy specified by the Auditor General; or
(d) another document specified by the Auditor General.
(2) The CEO must provide a copy of an audit document to the Auditor General within 14 days after the Auditor General requests it for the purposes of a financial audit under Part 7 Division 3A of the Act.
(1) An auditor’s report is to be forwarded to the persons specified in section 7.9(1) within 30 days of completing the audit.
(2) The report is to give the auditor’s opinion on —
(a) the financial position of the local government; and
(b) the results of the operations of the local government.
(3) The report must include a report on the conduct of the audit.
[(4A) deleted] (4) Where it is considered by the auditor to be appropriate to do so, the auditor is to prepare a management report to accompany the auditor’s report and to forward a copy of the management report to the persons specified in section 7.9(1) with the auditor’s report.
An auditor is to provide to the Minister with the auditor’s report a detailed statement of —
(a) the hours worked on the audit; and
(b) the remuneration and expenses due to the auditor by the local government.
An auditor is to report a possible conflict of interest to the Minister as soon as possible after the auditor becomes aware of the possible conflict of interest.
For the purposes of section 7.13(1)(i) the statutory requirements set forth in the Table to this regulation are prescribed.
s. 3.57 | s. 3.58(3) and (4) | s. 3.59(2), (4) and (5) |
s. 5.16 | s. 5.17 | s. 5.18 |
s. 5.36(4) | s. 5.37(2) and (3) | s. 5.42 |
s. 5.43 | s. 5.44(2) | s. 5.45(1)(b) |
s. 5.46 | s. 5.51A | s. 5.67 |
s. 5.68(2) | s. 5.69(5) | s. 5.70 |
s. 5.71B(5) and (7) | s. 5.73 | s. 5.75 |
s. 5.76 | s. 5.77 | s. 5.88 |
s. 5.89A | s. 5.104 | s. 5.120 |
s. 5.121 | s. 7.1A | s. 7.1B |
s. 7.3 | s. 7.6(3) | s. 7.9(1) |
s. 7.12A | ||
r. 18A | r. 18C | r. 18E |
r. 18F | r. 18G | r. 19 |
r. 19C | r. 19DA | r. 22 |
r. 23 | r. 28 | r. 34B |
r. 34C | ||
r. 7 | r. 10 | |
r. 30G | ||
r. 7 | r. 9 | r. 10 |
r. 11A | r. 11 | r. 12 |
r. 14(1), (3) and (5) | r. 15 | r. 16 |
r. 17 | r. 18(1) and (4) | r. 19 |
r. 21 | r. 22 | r. 23 |
r. 24 | r. 24AD(2), (4) and (6) | r. 24AE |
r. 24AF | r. 24AG | r. 24AH(1) and (3) |
r. 24AI | r. 24E | r. 24F |
(1) A local government is to carry out a compliance audit for the period 1 January to 31 December in each year.
(2) After carrying out a compliance audit the local government is to prepare a compliance audit return in a form approved by the Minister.
(3A) The local government’s audit committee is to review the compliance audit return and is to report to the council the results of that review.
(3) After the audit committee has reported to the council under subregulation (3A), the compliance audit return is to be —
(a) presented to the council at a meeting of the council; and
(b) adopted by the council; and
(c) recorded in the minutes of the meeting at which it is adopted.
(1) After the compliance audit return has been presented to the council in accordance with regulation 14(3) a certified copy of the return together with —
(a) a copy of the relevant section of the minutes referred to in regulation 14(3)(c); and
(b) any additional information explaining or qualifying the compliance audit,
is to be submitted to the Departmental CEO by 31 March next following the period to which the return relates.
(2) In this regulation —
(a) the mayor or president; and
(b) the CEO.
An audit committee has the following functions —
(a) to guide and assist the local government in carrying out —
(i) its functions under Part 6 of the Act; and
(ii) its functions relating to other audits and other matters related to financial management;
(b) to guide and assist the local government in carrying out the local government’s functions in relation to audits conducted under Part 7 of the Act;
(c) to review a report given to it by the CEO under regulation 17(3) (the
CEO’s report ) and is to —(i) report to the council the results of that review; and
(ii) give a copy of the CEO’s report to the council;
(d) to monitor and advise the CEO when the CEO is carrying out functions in relation to a review under —
(i) regulation 17(1); and
(ii) the
Local Government (Financial Management) Regulations 1996 regulation 5(2)(c);
(e) to support the auditor of the local government to conduct an audit and carry out the auditor’s other duties under the Act in respect of the local government;
(f) to oversee the implementation of any action that the local government —
(i) is required to take by section 7.12A(3); and
(ii) has stated it has taken or intends to take in a report prepared under section 7.12A(4)(a); and
(iii) has accepted should be taken following receipt of a report of a review conducted under regulation 17(1); and
(iv) has accepted should be taken following receipt of a report of a review conducted under the
Local Government (Financial Management) Regulations 1996 regulation 5(2)(c);
(g) to perform any other function conferred on the audit committee by these regulations or another written law.
(1) The CEO is to review the appropriateness and effectiveness of a local government’s systems and procedures in relation to —
(a) risk management; and
(b) internal control; and
(c) legislative compliance.
(2) The review may relate to any or all of the matters referred to in subregulation (1)(a), (b) and (c), but each of those matters is to be the subject of a review not less than once in every 3 financial years.
(3) The CEO is to report to the audit committee the results of that review.
(1) In this regulation —
(2) The former provisions continue to apply in relation to an auditor’s report relating to the accounts and annual financial report of a local government for the financial year ending on 30 June 2021.
This is a compilation of the
24 Jun 1996 p. 2827‑32 | 1 Jul 1996 (see r. 2) | |
23 Apr 1999 p. 1722‑5 | 23 Apr 1999 | |
28 Sep 2001 p. 5353‑8 | 15 Jul 2001 (see r. 2 and Cwlth | |
30 Jun 2003 p. 2581‑638 | 1 Jul 2003 (see r. 2 and | |
1 Jun 2004 p. 1917 | 1 Jun 2004 | |
31 Mar 2005 p. 1042-3 | 7 May 2005 (see r. 2) | |
30 Sep 2005 p. 4418-20 | 30 Sep 2005 | |
21 Dec 2010 p. 6758-61 | r. 1 and 2: 21 Dec 2010 (see r. 2(a)); Regulations other than r. 1 and 2: 22 Dec 2010 (see r. 2(b)) | |
30 Dec 2011 p. 5579-81 | r. 1 and 2: 30 Dec 2011 (see r. 2(a)); Regulations other than r. 1 and 2: 31 Dec 2011 (see r. 2(b)) | |
8 Feb 2013 p. 867‑8 | r. 1 and 2: 8 Feb 2013 (see r. 2(a)); Regulations other than r. 1 and 2: 9 Feb 2013 (see r. 2(b)) | |
21 Jun 2013 p. 2449-50 | r. 1 and 2: 21 Jun 2013 (see r. 2(a)); Regulations other than r. 1 and 2: 22 Jun 2013 (see r. 2(b)) | |
18 Sep 2015 p. 3804‑13 | 1 Oct 2015 (see r. 2(b)) | |
30 Dec 2016 p. 5969‑70 | 31 Dec 2016 (see r. 2(b)) | |
26 Jun 2018 p. 2384‑9 | 27 Jun 2018 (see r. 2(c)) | |
18 Oct 2019 p. 3679-84 | 19 Oct 2019 (see r. 2(b) and | |
SL 2021/15 2 Feb 2021 | 3 Feb 2021 (see r. 2(b) and SL 2021/13 cl. 2) | |
SL 2021/16 2 Feb 2021 | 3 Feb 2021 (see r. 2(b) and SL 2021/13 cl. 2) | |
SL 2022/88 17 Jun 2022 | 1 Jul 2022 (see r. 2(b)) | |
audit committee................................................................................................................ 3
audit document......................................................................................................... 9A(1)
Australian Accounting Standards............................................................................. 9(1)
CEO’s report.................................................................................................................. 16
certified...................................................................................................................... 15(2)
compliance audit.............................................................................................................. 3
former provisions...................................................................................................... 18(1)
relevant person............................................................................................................ 6(3)
section................................................................................................................................ 3
value.............................................................................................................................. 6(3)
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