Timaru District Council Faces Delay in Annual Report Adoption as Auditors Work Through Investments
The Timaru District Council’s adoption of its annual report for the 2022/23 financial year has been delayed due to ongoing work by auditors to review the council’s investments. The meeting held to table the report was adjourned three times on Tuesday, with auditors still needing to analyze the council’s holdings in its investments, including the port and Alpine Energy.
According to Chief Executive Bede Carran, the auditors have yet to complete their review of the reporting process for the council’s investments through its holdings company. The council’s financial advisor, consultant Jason Rivett, and Chief Financial Officer Andrea Rankin authored the report, which was originally scheduled to be presented at the meeting starting at 1 pm on Tuesday.
The council’s financial situation for the financial year ending on June 30, 2023, as outlined in the report, shows a deficit of $13.3 million, which is lower than the expected surplus of $241,000. Under the Local Government Act 2002, local authorities are required to finalize and adopt their annual reports, including audited financial statements, within four months following the end of the financial year.
The meeting on Tuesday was initially adjourned until 4 pm to allow the auditors to complete their work on the report. However, Carran requested another hour, explaining that auditors and accountants aim for precision and were ensuring the accuracy of every debit and credit entry. Carran stated that the team was approaching the end of the process and planned to reconvene at 5 pm with positive progress to report.
Unfortunately, when the meeting resumed at 5 pm, Carran announced that the audit had not yet been completed. He humorously noted that the only certain things in life are death and taxes, adding that adoption of the report had encountered a hiccup. The consolidation of the group and the calculation of the tax effect within the Timaru District Holdings Ltd. (TDHL) were the primary issues contributing to the delay.
Rivett and Rankin reported in their document that the audit plan for the annual report had been presented to the council’s audit and risk committee in July. A preliminary interim audit was conducted on June 19, followed by the final audit commencing on September 18. The audit opinion was initially intended to be issued by the day of the meeting—Tuesday.
Carran assured the council members that the issue would be resolved, and the report would be adopted on November 14. He anticipated that the report would receive an unmodified opinion from the auditor, indicating that the financial statements were accurately presented in accordance with the relevant financial reporting framework. However, the delayed adoption would be noted in the report.
The audit process had begun one month behind schedule, which Carran characterized as disappointing for the hardworking team involved. Nevertheless, he expressed confidence that they were nearing the end of the journey. The councilors would be provided with the latest version of the report once it becomes available.
In conclusion, the Timaru District Council has faced a delay in adopting its annual report as auditors continue to work through the council’s investments. The meeting to table the report was adjourned multiple times as auditors meticulously reviewed the council’s holdings in its investments. Despite the delay, Chief Executive Bede Carran assured council members that the issue would be resolved, and the report would be adopted in the near future. The council’s financial advisor and chief financial officer collaborated on the report, highlighting a deficit for the financial year ending on June 30, 2023, contrary to the forecasted surplus. The auditors were focused on ensuring the accuracy and precision of the report’s financial statements before its adoption.
