Long-term planning is not new for local authorities. They have been required to prepare long-term financial strategies since 1996, and they are now required to prepare Long-Term Council Community Plans (LTCCPs) under the Local Government Act 2002 (the Act).
The emphasis on long-term planning in the Act reflects the concerns of Parliament and the public that the governing and accountability framework for local government should give it incentives to plan for sustainable long-term service delivery, informed by an understanding of community needs and views.
I am required to audit the LTCCPs under sections 84(4) and 94(1) of the Act. While other countries have adopted long-term planning requirements for local government, auditing the reasonableness of the LTCCP and issuing an audit opinion is unique to New Zealand.
This report outlines the results of, and matters arising from, our audits of Long-Term Council Community Plans (LTCCPs). This includes specific stages of the LTCCP development process, including the LTCCP Statement of Proposal and its Summary (which is used for community consultation) and the final LTCCP adopted by the local authority. My auditors issue audit opinions on the LTCCP Statement of Proposal as well as the final LTCCP.
As preparation of LTCCPs is a relatively new and complex process, there is room for improvement. My report is intended to assist with improvements for the next round of LTCCPs for 2009-19.
I also commissioned an external review by four experts in four areas that are central to preparing an LTCCP - sustainable development, performance information, asset management information, and financial management and strategies.
I considered that this external review would help to stimulate debate in the local government sector about the effect of the requirements to prepare LTCCPs and about the direction of future change to address the requirements and intentions of the legislation relating to LTCCPs.
Kevin Brady
Controller and Auditor-General
22 June 2007