Local Government (Financial Management) Amendment Regulations 2008 (WA)

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2720 GOVERNMENT GAZETTE, WA 20 June 2008

LG302*

Local Government Act 1995

Local Government (Financial Management)

Amendment Regulations 2008

Made by the Lieutenant-Governor and deputy of the Governor in
Executive Council.

1.            Citation

These regulations are the Local Government (Financial
Management) Amendment Regulations 2008.

2.            Commencement

These regulations come into operation as follows:

(a) regulations 1 and 2—on the day on which these regulations are published in the Gazette;
(b) the rest of the regulations - on the day after that day or on 1 July 2008, whichever is the later.

3.            The regulations amended

The amendments in these regulations are to the Local
Government (Financial Management) Regulations 1996.

4.            Regulation 3 amended

(1) Regulation 3(1) is amended as follows:
(a) by deleting the following definitions -
Australian Accounting Standards Board;

"AAS 5"
"AAS 27"
"Australian Accounting Standard"
"material"
"non-current asset"
"operating revenue"
"operating statement"
"statement of cash flows"

"statement of financial position";

(b) by inserting in the appropriate alphabetical positions -

IE

"AAS" means the Australian Accounting Standards
made and amended from time to time by the

20 June 2008 GOVERNMENT GAZETTE, WA 2721

"Australian Accounting Standards Board" means the body corporate of that name continued by the Australian Securities and Investments Commission

Act 2001 (Commonwealth);

"balance sheet" means a balance sheet (or equivalent)

that meets the requirements of the AAS for

balance sheets;

"cash flow statement" means a cash flow statement

(or equivalent) that meets the requirements of the

AAS for cash flow statements;

"Form", if followed by a number, means the form of

that number in Schedule 2;

"income statement" means an income statement (or

equivalent) that meets the requirements of the

AAS for income statements;

"material variance" means a variance that is material

for the purposes of the AAS;

"non-current asset" means an asset that is not a

current asset for the purposes of the AAS;

"operating revenue" means revenue that is operating

revenue for the purposes of the AAS;

"restricted asset", of a local government, means an

asset the use of which is restricted, wholly or
partly, by a law made or a requirement imposed
outside of the control of the local government,
where the restriction is relevant to assessing the
performance, financial position or financing and

investment of the local government;

(c) by deleting the semicolon after the definition of

"section" and inserting instead a full stop.

(2) Regulation 3(2) is repealed and the following subregulation is
inserted instead -
(2) If a term is given a meaning in the AAS, it has the

same meaning in these regulations unless the contrary

intention appears.

(3) Regulation 3(3) is repealed.

5.           Regulation 4 replaced

Regulation 4 is repealed and the following regulation is inserted instead

4.           Effect of AAS

(1) These regulations are in addition to and not in

derogation of the requirements of the AAS.

2722 GOVERNMENT GAZETTE, WA 20 June 2008
(2) If a provision of the AAS is inconsistent with a
provision of these regulations, the provision of these
regulations prevails to the extent of the inconsistency.
(3) All words in the Act or these regulations that import
revenue or expenditure are to be interpreted to permit
compliance with the requirements of the AAS.

6.            Regulation 5.-k inserted

After the heading to Part 2 the following regulation is inserted -

"
5A. Local governments to comply with AAS
Subject to regulation 4, the annual budget, annual financial report and other financial reports of a local government must comply with the AAS.

7.            Regulation 14 replaced

Regulation 14 is repealed and the following regulation is inserted instead -

33  

14. Disclosure requirements for operating revenue and
expenses

If the AAS require operating revenue or expenses to be disclosed by nature or type classification, disclosure in accordance with those standards must be by means of notes to, or a separate statement accompanying, the

annual budget and the annual financial report.

8.            Regulation 22 amended

(1) Regulation 22(1) is amended as follows:
(a) by inserting after "includes" -

the following ";

(b)

by deleting paragraphs (a) and (b) and inserting instead -

44

(a) an income statement;

(b) a cash flow statement;
(c) by deleting paragraph (d)(i) and inserting instead -

"

(i) the revenue and expenditure that have

been taken into account to determine the

budget deficiency; and

(d) by deleting "and" after paragraph (h).
20 June 2008 GOVERNMENT GAZETTE, WA 2723

(2) Regulation 22(2) by deleting "statement of cash flows," and

inserting instead -

cash flow statement, ".

9. Regulation 27 amended
Regulation 27 is amended as follows:
(a) in paragraph (i)(i) by deleting "operating" and inserting instead -

46 income

(b) in paragraph (j) by deleting "operating" and inserting instead -

46 income

(c) in paragraph (n) by deleting "operating statement." and inserting instead -

44 income statement. ".

10.          Regulation 30 amended

Regulation 30(1) is amended as follows:

(a) in paragraph (a) by deleting "operating" and inserting instead -

46 income

(b) by inserting after paragraph (a) - " and

11.         Regulation 33 amended

Regulation 33 is amended by deleting "Executive Director" and inserting instead -

Departmental CEO ".
12. Regulation 33A amended
(1) Regulation 33A(1) is amended by inserting after "each" -
46

financial ".

(2) After regulation 33A(1) the following subregulation is
inserted -

(2A) The review of an annual budget for a financial year

must -

(a)

consider the local government's financial performance in the period beginning on 1 July and ending no earlier than 31 December in that financial year; and

(b)

consider the local government's financial position as at the date of the review; and

2724 GOVERNMENT GAZETTE, WA 20 June 2008

(c) review the outcomes for the end of that

financial year that are forecast in the budget.

13.          Regulation 34 amended

(1) Regulation 34 is amended by inserting before
subregulation (1) -

"

(1A) In this regulation -

"committed assets" means revenue unspent but set

aside under the annual budget for a specific

purpose.

(2) Regulation 34(1) is amended by deleting "sources and
applications of funds," and inserting instead -
" revenue and expenditure, ".
(3) Regulation 34(3) is amended by inserting after paragraph (a) -

or

(4) Regulation 34(4)(a) and "and" after it are deleted and the
following is inserted instead -

44

(a) presented at an ordinary meeting of the council

within 2 months after the end of the month to

which the statement relates; and

(5) Regulation 34(5) is amended by deleting "AAS 5," and
inserting instead -

the AAS, ".

(6) Regulation 34(6) is repealed.

14.         Regulation 36 amended

(1) Regulation 36(1)(a) is amended by deleting "operating" and
inserting instead -
44

income ".

(2) Regulation 36(2) and the Table to it are repealed arid the
following is inserted instead -

"

(2) The annual financial report is to include the

following -

(a) the rate setting statement included under

regulation 22(1)(d) in the annual budget for the
year to which the report relates;

20 June 2008 GOVERNMENT GAZETTE, WA 2725

(b)

adjacent to each item in that rate setting statement that states an amount, the end-of-year amount for the item;

(c)

adjacent to each item in the income statement that states an end-of-year amount, the original or amended budget estimate for the item;

(d)

adjacent to each item that states an end-of-year amount required by a provision of these regulations listed in the Table to this subregulation, the original or amended budget estimate for the item.

Table

Provision Provision Provision
r. 36(1)(a) r. 36(1)(e) r. 38(1)(b)
r. 38(1)(c) r. 38(l)(e) r. 39(a)
r. 39(bXv) r. 39(d)(iv) r. 39(e)(vi)
r. 39(e)(vii) r. 40(d) r. 40(e)
r. 42(2) r. 43(a)(ii) r. 43(bXii)
r. 43(c)(iv) r. 44(b) r. 45(a)(i)
r. 45(b) r. 46(a) r. 48(dXi)
r. 48(d)(vii) r. 48(f)(ii)-(v) r. 49

15.          Regulation 38 amended

(1) Regulation 38(1)(f) is amended by deleting "statement of
financial position -" and inserting instead -

balance sheet

(2) Regulation 38(2) is amended by deleting "AAS 27" and
inserting instead -
" the AAS, "

16.          Regulation 45 amended

Regulation 45 is amended as follows:
(a) by inserting after "include" -

the following ";

(b) by deleting paragraph (a)(i) and (ii) and "and" after

subparagraph (ii) and inserting instead -

44

(i)     an income statement;

(ii)     a balance sheet;

IF

(c) by deleting "and" after paragraph (a);

(d) in paragraph (b) by deleting "operating" and inserting

instead -

44

income ".

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17.          Regulation 46 amended

Regulation 46 is amended as follows:

(a)

in paragraph (d) by deleting "principal activities," and inserting instead -

the future,

(b) by inserting after each of paragraphs (a) and (b) -
46 1

and

18.          Regulation 50 amended

Regulation 50(2) is amended as follows:

(a) by deleting the following definitions -

"current assets"
"current liabilities"
"restricted assets"
"total assets"
"total liabilities"

"total revenue";

(b) by inserting in the appropriate alphabetical positions -

"current assets" means the total current assets as

shown in the balance sheet;

"current liabilities" means the total current liabilities

as shown in the balance sheet;

"total assets" means all current and non-current assets

as shown in the balance sheet;

"total liabilities" means all current and non-current

liabilities as shown in the balance sheet;

"total revenue" means the total operating revenue

excluding all specific purpose grants, contributions
and donations that are used for asset development
and acquisition;
19. Regulation 51 amended
Regulation 51(2) is amended as follows:
(a)

by deleting "Executive Director" and inserting " Departmental CEO

(b) by inserting before "CEO" - " local government's ".

20.          Regulation 54 amended

Regulation 54(b) is deleted.

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21.          Part 6 replaced

Part 6 is repealed and the following Part is inserted instead -

Part 6— Transitional matters

79. Local Government (Financial Management)
Amendment Regulations 2008, provisions for
(1) In this regulation -
"amending regulations" means the Local Government

(Financial Management) Amendment of those regulations;

"new law" means these regulations as in force after the

amending regulations come into operation;

6601(1 law" means these regulations as in force

immediately before the amending regulations

come into operation.

(2) This regulation does not affect the operation of the Interpretation Act 1984 Part V unless the contrary intention appears.
(3) Despite the amending regulations, the old law applies to and in respect of the financial reports required for, and other matters relating to, the financial year ending
on 30 June 2008.
(4) If a budget for the financial year beginning on 1 July 2008 is adopted under section 6.2 before that date, it need not be revised to be in accordance with the new law.

22.          Schedule I amended

Schedule 1 Part 2 is repealed and the following Part is inserted
instead -
Part 2 Nature or type classifications

Revenue

Rates
Operating grants, subsidies and contributions
Non-operating grants, subsidies and contributions
Profit on asset disposals
Fees and charges
Service charges
Interest earnings
Other revenue

2728 GOVERNMENT GAZETTE, WA 20 June 2008

Expenditure

Employee costs
Material and contracts
Utility charges (electricity, gas, water etc.)
Depreciation on non-current assets
Loss on asset disposal
Interest expenses
Insurance expenses
Other expenditure

23.         Schedule 2 amended

extent that these have been varied in the Statement of
Accounting Policies required by Australian Accounting

Schedule 2 is amended in Form 1 by deleting "(except to the notes to the annual financial report)".

By Command of the Lieutenant-Governor and deputy of the Governor.

G. M. PIKE, Clerk of the Executive Council.

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