Division 2 Accounting records, financial reports and auditing
(1) A council must keep such accounting records as are necessary to correctly record and explain its financial transactions and its financial position.(2) In particular, a council must keep its accounting records in a manner and form that facilitate:(a) the preparation of financial reports that present fairly its financial position and the results of its operations, and(b) the convenient and proper auditing of those reports.
413 Preparation of financial reports
(1) A council must prepare financial reports for each year, and must refer them for audit as soon as practicable (having regard to the requirements of section 416 (1)) after the end of that year.Note. Under section 416 (1), a council’s financial reports for a year must be prepared and audited within 4 months after the end of the year concerned, and under section 428 (2) (a) the audited financial reports must be included in the council’s annual report.(2) A council’s financial reports must include:(a) a general purpose financial report, and(b) any other matter prescribed by the regulations, and(c) a statement in the approved form by the council as to its opinion on the general purpose financial report.(3) The general purpose financial report must be prepared in accordance with this Act and the regulations and the requirements of:(a) the publications issued by the Australian Accounting Research Foundation, on behalf of the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia, under the title Australian Accounting Standards, as in force for the time being, subject to the regulations, and(b) such other standards as may be prescribed by the regulations.(4) (Repealed)
415 Auditing of financial reports
(1) A council’s auditor must audit the council’s financial reports as soon as practicable (having regard to the requirements of section 416 (1)) after they are referred for audit.(2) A council’s financial reports must be audited in accordance with the requirements of:(a) the publications issued by the Australian Accounting Research Foundation, on behalf of the Australian Society of Certified Practising Accountants and the Institute of Chartered Accountants in Australia, under the titles Statements of Auditing Standards and Statements of Auditing Practice, as in force for the time being, subject to the regulations, and(b) such other standards as may be prescribed by the regulations.(3) The regulations may prescribe matters that an auditor must consider and provide comment on in auditing a council’s financial reports.
416 Time for preparation and auditing of financial reports
(1) A council’s financial reports for a year must be prepared and audited within the period of 4 months after the end of that year.(2) A council may from time to time apply to the Director-General for an extension of that period.(3) A council must make such an application if requested to do so by its auditor.(4) Before deciding whether or not to grant an extension, the Director-General may require the council to give reasons, additional to those set out in the application, as to why the extension should be granted.(5) The Director-General may grant an extension of such period as, in the opinion of the Director-General, is necessary in the particular circumstances of the case.(6) A council must notify its auditor of any application for an extension made under this section and of the outcome of the application.
(1) A council’s auditor must prepare 2 reports:• a report on the general purpose financial report• a report on the conduct of the audit.(2) The report on the council’s financial reports must include the following:(a) a statement as to whether, in the opinion of the auditor, the council’s accounting records have been kept in accordance with the requirements of this Division,(b) a statement as to whether, in the opinion of the auditor, the council’s financial reports:(i) have been prepared in accordance with the requirements of this Division, and(ii) are consistent with the council’s accounting records, and(iii) present fairly the council’s financial position and the results of its operations,(c) a statement as to whether, in the opinion of the auditor, any information relevant to the conduct of the audit has been unobtainable by the auditor,(d) a statement setting out particulars of any material deficiency in the accounting records or financial reports that has come to light in the course of the audit.(3) The report on the conduct of the audit may contain such statements, comments and recommendations as to the conduct of the audit of the council’s financial reports as the auditor considers appropriate to include in the report.(4) As soon as practicable after completing the audit, the auditor must send a copy of the auditor’s reports to the Director-General and to the council.(5) As soon as practicable after receiving the auditor’s reports, the council must send a copy of the auditor’s report on the council’s financial reports, together with a copy of the council’s audited financial reports, to the Director-General and to the Australian Bureau of Statistics.
418 Public notice to be given of presentation of financial reports
(1) As soon as practicable after a council receives a copy of the auditor’s reports:(a) it must fix a date for the meeting at which it proposes to present its audited financial reports, together with the auditor’s reports, to the public, and(b) it must give public notice of the date so fixed.(2) The date fixed for the meeting must be at least 7 days after the date on which the notice is given, but not more than 5 weeks after the auditor’s reports are given to the council.Note. Unless an extension is granted under section 416, the meeting must be held on or before 5 December after the end of the year to which the reports relate.(3) The public notice must include:(a) a statement that the business of the meeting will include the presentation of the audited financial reports and the auditor’s reports, and(b) a summary, in the approved form, of the financial reports, and(c) a statement to the effect that any person may, in accordance with section 420, make submissions (within the time provided by that section and specified in the statement) to the council with respect to the council’s audited financial reports or with respect to the auditor’s reports.(4) Copies of the council’s audited financial reports, together with the auditor’s reports, must be kept available at the office of the council for inspection by members of the public on and from the date on which public notice of the holding of the meeting is given and until the day after the meeting (or any postponement of the meeting).
419 Presentation of the council’s financial reports
(1) A council must present its audited financial reports, together with the auditor’s reports, at a meeting of the council held on the date fixed for the meeting.(2) The council’s auditor may, and if so required in writing by the council must, attend the meeting at which the financial reports are presented.
420 Submissions on financial reports and auditor’s reports
(1) Any person may make submissions to the council with respect to the council’s audited financial reports or with respect to the auditor’s reports.(2) A submission must be in writing and must be lodged with the council within 7 days after the date on which those reports are presented to the public.(3) The council must ensure that copies of all submissions received by it are referred to the auditor.(4) The council may take such action as it considers appropriate with respect to any such submission, including the giving of notice to the Director-General of any matter that appears to require amendment of the council’s financial reports.
(1) A council’s auditor may, at any time during the audit of a council’s financial reports, report to the Minister on any matter relating to those reports or to the conduct of the audit.(2) The auditor must give the council a copy of any report made to the Minister under this section.