Local Government Reform Act 2014

60.

Consideration of annual financial statement and auditor’s report

60. The Principal Act is amended by substituting the following for section 121:

“121. (1) Following receipt by the local authority or joint body (in this section referred to as a ‘relevant authority’) of the audited financial statement, auditor’s report or auditor’s special report, the chief executive of the relevant authority shall provide that statement or report to the audit committee for consideration at the next practicable meeting of the committee.

(2) The local government auditor who conducted the audit, or who has been appointed in accordance with section 124, shall attend a meeting of the audit committee to present his or her report and clarify such issues as may be necessary in relation to the content of the auditor’s report or special report.

(3) The audit committee shall report to the relevant authority on its consideration of the audited financial statement, auditor’s report or auditor’s special report at the next practicable meeting of the relevant authority following the audit committee’s consideration.

(4) At any time within 3 months of the audited financial statement, auditor’s report or auditor’s special report having been submitted to the relevant authority in accordance with section 120, the local government auditor who carried out the audit may notify the local authority or joint body that he or she wishes to discuss it with that authority.

(5) Following notification under subsection (4), a local government auditor is entitled to attend the next meeting of the relevant authority following the notification to discuss the audited financial statement, auditor’s report or auditor’s special report, as the case may be, or to attend such other meeting of the relevant authority as the local government auditor may specify.

(6) Subject to any guidelines the Minister may issue from time to time, the matters to be discussed by an audit committee or the relevant authority at a meeting during any period when the local government auditor concerned attends shall be limited to matters directly related to the audited financial statement, the auditor’s report or the auditor’s special report, as the case may be.

(7) A local government auditor is entitled to qualified privilege in relation to any statements made by him or her at any meeting that he or she attends under this section in his or her capacity as such an auditor.”.