Auditor Mgt Letter – Valuations at 30 June

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  • #21221
    Melissa McCulloch
    Blocked

      Central Coast

      Morning All

      I received a copy of our AO Management letter last night with a recommendation around having valuations balanced to the VG at 30 June each year.

      How many council’s are actually balancing their land valuations at 30 June each year? My concern with this recommendation is that it will not always be achievable with all other tasks we need to do at 30 June, particularly if the last full supp was the fortnight prior, OR if the 30 June supp falls over a weekend.

      Are there any councils setting their RIDs and parking supps for the remainder of the year? CCC don’t do this, we reconcile to the last full supp prior to 30 June and just request a copy of the balances at 30 June.

      All thoughts and feedback welcome.
      Cheers
      Mel

      #21222
      Andrew Butcher
      Keymaster

        Hi Mel
        This is unacceptable and needs to be raised with the OLG.
        I will make sure that it is on our next Executive Committee agenda and let you know the outcome.

        Regards,
        Andrew

        #21223
        Robert Hay
        Participant

          The Hills

          Hi Mel

          A total lack of understanding by the AO of how a Council sets it rate in $ and how it relates to valuations.

          The question back to the AO based on their recommendation is how can a Council after setting its rates continue to process supps and not in the best case underrate or in the worse case overate and end up being Gazetted?

          Another area that the AO need to be educated on how rates work.

          I close my valuation register after Council sets its final rates and charges.

          Robert

          #21224
          Simone Fisher
          Participant

            Wollondilly

            Hi Mel,
            I agree with Rob & Andrew the AO is taking a strict interpretation of sec 509 that isn’t practical & for Council’s who part year rate isn’t needed. Having said this though processing supps to 30th June & even requesting a supp list for 30th June is what I was taught some 25+ years ago was the correct process & I think was common practice by allot of Rates Clerks back in the day.

            We stop processing supps & close our valuations on 30th April each year, 1. as we part year rate & can’t issue supp notices after 1 May & 2. as the Council’s that I’ve worked at wouldn’t have thought too favourably at us being Gazetted for overrating & we would most likely end up on the local news.

            Many many years ago (probably 15+) I remember the OLG including this issue in one of their presentations at a conference & were advised by a number of RP’s how overrating & being reported in the Government Gazette is a big issue for Council’s.

            Happy to see this will be raised with OLG & would be good to see the AO taking a practical approach to it just how auditors have for 20+ years.

            Thanks,
            Simone

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