Local Government (Financial Management) Amendment Regulations (No. 2) 2005 (WA)
&
Local Government Act 1995
Local Government (Financial Management)
Amendment Regulations (No. 2) 2005
Made by the Governor in Executive Council.
1. Citation
These regulations are the Local Government (Financial
Management) Amendment Regulations (No. 2) 2005.2. Commencement
These regulations come into operation on 1 July 2005.
3. The regulations amended
The amendments in these regulations are to the Local
Government (Financial Management) Regulations 1996*.[* Reprinted as at 24 March 2000. For amendments to 18 March 2005 see Western Australian
Legislation Information Tables for 2003, Table 4, p. 220, and
Gazette 30 December 2004 and 7 January 2005.]4. Regulation 3 amended
Regulation 3(1) is amended by inserting the following definitions in the appropriate alphabetical positions —
“
“AAS 5” means Australian Accounting Standard AAS 5 “Materiality” issued by the Australian Accounting Research Foundation as amended from time to time;
“material” has the meaning given to that term by
AAS 5;
”.
5. Regulation 5 amended
Regulation 5(1)(g) is amended by inserting after “budgets,” —
“ budget reviews, ”.
6. Regulation 8 amended
Regulation 8(1) is amended as follows:
(a) after paragraph (b) by inserting — “ and ”;
'
(b) by deleting the semicolon after paragraph (c) and inserting instead a full stop; (c) by deleting paragraph (d) and “and” after it; (d) by deleting paragraph (e). 7. Regulation 11 amended
Regulation 11(2) is repealed and the following subregulation is
inserted instead —
“
(2) A local government is to develop procedures for the
approval of accounts to ensure that before payment of
an account a determination is made that the relevant
debt was incurred by a person who was properly
authorised to do so.
”.
8. Regulation 13 amended
Regulation 13(4) is repealed.
9. Regulation 22 amended
Regulation 22(1)(d)(i) is amended by deleting “operating and non-operating income and expenses” and inserting instead —
“ sources and applications of funds ”.
10. Regulation 27 amended
Regulation 27 is amended as follows:
(a) after paragraph (m) by inserting — “ and ”;
(b) after paragraph (n) by deleting “; and” and inserting instead a full stop; (c) by deleting paragraph (o). 11. Regulation 33A inserted
After regulation 33 the following regulation is inserted in
Part 3 —“ 33A. Review of budget
(1) Between 1 January and 31 March in each year a local
government is to carry out a review of its annual
budget for that year.(2) Within 30 days after a review of the annual budget of a
local government is carried out it is to be submitted to
the council.(3)
A council is to consider a review submitted to it and is to determine* whether or not to adopt the review, any parts of the review or any recommendations made in
the review. *Absolute majority required. (4) Within 30 days after a council has made a
determination, a copy of the review and determination
is to be provided to the Department.
”.
12. Regulation 34 replaced
Regulation 34 is repealed and the following regulation is
inserted instead —“ 34. Financial activity statement report — s. 6.4
(1) A local government is to prepare each month a
statement of financial activity reporting on the sources
and applications of funds, as set out in the annual
budget under regulation 22(1)(d), for that month in the
following detail —
(a)
annual budget estimates, taking into account any expenditure incurred for an additional purpose under section 6.8(1)(b) or (c);
(b)
budget estimates to the end of the month to which the statement relates;
(c)
actual amounts of expenditure, revenue and income to the end of the month to which the statement relates;
(d)
material variances between the comparable amounts referred to in paragraphs (b) and (c); and
(e)
the net current assets at the end of the month to which the statement relates.
(2) Each statement of financial activity is to be
accompanied by documents containing —
(a)
an explanation of the composition of the net current assets of the month to which the statement relates, less committed assets and restricted assets;
(b)
an explanation of each of the material variances referred to in subregulation (1)(d); and
(c)
such other supporting information as is considered relevant by the local government.
(3) The information in a statement of financial activity
may be shown —
(a) according to nature and type classification; (b) by program; or
(c) by business unit.
(4) A statement of financial activity, and the
accompanying documents referred to in
subregulation (2), are to be —
(a) presented to the council — (i) at the next ordinary meeting of the council following the end of the month to which the statement relates; or
(ii) if the statement is not prepared in time to present it to the meeting referred to in subparagraph (i), to the next ordinary meeting of the council after that meeting;
and
(b)
recorded in the minutes of the meeting at which it is presented.
(5) Each financial year, a local government is to adopt a
percentage or value, calculated in accordance with
AAS 5, to be used in statements of financial activity for
reporting material variances.(6) In this regulation — “committed assets” means revenue unspent but set aside under the annual budget for a specific
purpose;
“restricted assets” has the same meaning as in
AAS 27.
”.
13. Regulation 35 repealed
Regulation 35 is repealed.
14. Regulation 36 amended
(1) Regulation 36(1)(a) is amended by deleting “income,
expenditure and”.(2) Regulation 36(2) is amended by deleting “include, adjacent to
the end-of-year figures in the operating statement (required by
AAS 27) and for the items referred to in the Table to this
subregulation, the original budget estimates for those items for
the financial year.” and inserting instead —“ include —
(a) the statement included in the annual budget to regulation 22(1)(d); and
(b)
adjacent to the end-of-year figures in the operating statement (required by AAS 27) and for the items referred to in the Table to this subregulation, the original budget estimates for those items for the financial year.
”.
15. Regulation 48 amended
Regulation 48(f)(v) is amended by deleting “financed by
income other than” and inserting instead —“ funded other than by revenue from ”.
16. Regulation 50 amended
(1) Regulation 50(1) is amended as follows:
(a) after paragraph (d) by deleting “and”; (b) after paragraph (e) by deleting the full stop and inserting — “
;
(f) the gross debt to revenue ratio; (g) the untied cash to trade creditors ratio; and (h)
the gross debt to economically realisable assets ratio.
”.
(2) After regulation 50(1) the following subregulation is inserted — “
(1a) The ratios referred to in subregulation (1) may also be
expressed as percentages or factors of one.
”.
(3)
Regulation 50(2) is amended by inserting the following definitions in the appropriate alphabetical positions — “
“economically realisable assets” means total assets
other than infrastructure assets;
“gross debt” includes all borrowings under
section 6.20 and all utilised overdrafts;
“gross debt to economically realisable assets ratio”
means the ratio determined as follows —
gross debt
economical ly realisable assets ;
“gross debt to revenue ratio” means the ratio
determined as follows —
gross debt
total revenue ;
“infrastructure assets” means all tangible assets of
economic value that are not economically
realisable, and includes roads, bridges, drains andrecreational facilities;
“total revenue” means the total operating revenue
excluding all specific purpose grants;
“untied cash to unpaid trade creditors ratio” means
the ratio determined as follows —
untied cash
unpaid trade creditors .
”.
17. Regulation 56 amended
Regulation 56(4) is amended as follows:
(a) after paragraph (h) by inserting — “ and ”;
(b) by deleting the semicolon at the end of paragraph (i) and “and” after it and inserting instead a full stop; (c) by deleting paragraph (j). 18. Regulation 66 amended
(1) Regulation 66(3)(b) is amended as follows:
(a) after subparagraph(ii) by deleting “and’; (b) after subparagraph (iii) by deleting the full stop and inserting instead — “
; and
(iv) any right to impose interest on the cost of proceedings to recover any unpaid rate.
”.
(2) Regulation 66(4) is repealed. 19. Regulation 71 amended
Regulation 71(1) is amended by deleting “that remain unpaid after the date determined in accordance with section 6.51(1)” and inserting instead —
“
, and the costs of any proceedings to recover such
charges, that remain unpaid after the date of becomingdue and payable
”.
20. Schedule 1 amended
Schedule 1 Part 2 is amended by deleting “/Income” in both
places where it occurs.21. “Income” changed to “revenue”
Each provision listed in the Table to this regulation is amended
by deleting “income” in each place where it occurs and inserting
instead “revenue”.
Table
r. 5(1)(d)(i) r. 29(f)(v) r. 7(b) r. 45(b) r. 27(j) and (k)(i)
By Command of the Governor,
G. M. PIKE, Clerk of the Executive Council.
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