South Australian Numbered Acts

LOCAL GOVERNMENT (FINANCIAL MANAGEMENT AND RATING) AMENDMENT ACT 2005 (NO 60 OF 2005) - SECT 13

13—Insertion of Chapter 8 Part 3 Division 5

After section 130 insert:

Division 5—Other investigations

130A—Other investigations

        (1)         A council may, as it thinks fit, request its auditor, or some other person determined by the council to be suitably qualified in the circumstances, to examine and report on any matter relating to financial management, or the efficiency and economy with which the council manages or uses its resources to achieve its objectives, that would not otherwise be addressed or included as part of an annual audit under Division 4 and that is considered by the council to be of such significance as to justify an examination under this section.

        (2)         An examination and report under subsection (1) may be requested—

            (a)         if appropriate, on the basis that it will be conducted in conjunction with an annual audit; or

            (b)         on the basis that it will be conducted as a separate examination and report.

        (3)         An examination under this section—

            (a)         is not to operate or apply so as to limit the role or functions of a council under this or any other Act, or the lawful role or functions of any member of a council; and

            (b)         is to be undertaken in such manner as the person conducting the examination thinks fit and without undue influence from a member of the council or the chief executive of the council.

        (4)         The chief executive officer must, at the request of a person conducting an examination under subsection (1)—

            (a)         produce to the person for inspection any documents relevant to the examination;

            (b)         provide to the person explanations or information required by the person.

Maximum penalty: $10 000.

        (5)         The report on an examination must be provided—

            (a)         to the principal member of the council (who must ensure that a copy is immediately provided to the chief executive officer, and that copies are provided to the other members of council for their consideration at the relevant meeting under subsection (6) or (7)); and

            (b)         to the council's audit committee.

        (6)         Unless subsection (7) applies, the report must be placed on the agenda for consideration—

            (a)         unless paragraph (b) applies—at the next ordinary meeting of the council;

            (b)         if the agenda for the next ordinary meeting of the council has already been sent to members of the council at the time that the report is provided to the principal member of the council—at the ordinary meeting of the council next following the meeting for which the agenda has already been sent, subject to the qualification that this paragraph will not apply if the principal member of the council determines, after consultation with the chief executive officer, that the report should be considered at the next meeting of the council as a late item on the agenda.

        (7)         The report may be the subject of a special meeting of the council called in accordance with the requirements of this Act (and held before the ordinary meeting of the council that would otherwise apply under subsection (6)).

        (8)         The report on an examination must be kept confidential until it is received at the relevant meeting of the council held under subsection (6) or (7) or, if the council so resolves at that meeting, until a later date specified by the council (being not later than 60 days after the date of the meeting).