SA Local Government Finance Management Group Conference The New Finance and Rating Act and its Impac

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SA Local Government Finance Management Group
ConferenceThe New Finance and Rating Act and
its Impact on the Act

• Michael Kelledy, Partner
• 7 April, 2006

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Proposed Operational Dates

• Passed 22 November 2005
• Operational by Proclamation
• Original proposal
• 1 April 2007 Sections 155 and 158
• 1 April 2007 Sections 182 and 182A
• 1 January 2007 all other provisions
• Current proposal 1 January 2007 (as a package)

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What is Being Removed?

• Public consultation on rating changes (if in
  annual business plan)
• Rates by fixed charge only
• Rating policy
• Ministerial role regarding separate rates
• Differential criteria for locality
• Restrictive minimum rate approach

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What is Being Removed (cont)

• Discretion to establish audit committee
• Mandatory 5 year auditor appointment
• Inability to impose differential service
  charges/rates

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What is New?

• Strategic Management Plans
• Long term financial plan
• Infrastructure and asset management plan
• Various assessments inc
• Sustainability of financial performance
• Proposals regarding debt levels
• Service levels
• Infrastructure commitments
• Specific declaration of constituent plans
• Comprehensive review every 4 years

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What is New?

• Audit
• Audit committee mandatory
• Auditor
• 5 year rotation
• 2 year break
• Audit committee recommendation
• Annual report obligations
• Audit reports to principal member

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What is New?

• Annual Business Plan
• In conjunction with budget
• Prescribed (detailed) content
• Firstly, draft annual business plan
• Public consultation
• Summary annual business plan

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What is New?

• Procedural Timetable
• After 31 May before 31 August
• Annual business plan
• Budget
• Valuations
• Rates

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What is New?

• Rating Issues
• Must consider maximum residential increase
• Extension of discretionary rebates
• Must consider all Section 166 applications
• Seniors postponement
• E-mail rates notices

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What is New?

• Efficiency Economy Audits
• Request auditor or other qualified person
• Report on
• Financial management
• Management/use of resources
• Not part of audit
• In conjunction with or separate from audit
• Report to principal member and audit committee

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What is New?

• Miscellaneous
• Related administrative standards
• Ombudsman
• Audits
• Investigation
• Section 270 policy
• Regional subsidiary charter review
• Annual report

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