Local Councils (Audit) (Amendment) Regulations, 2007

L.N. 135 of 2007

LOCAL COUNCILS ACT

(CAP. 363)

Local Councils (Audit) (Amendment) Regulations, 2007

IN exercise of the powers conferred by articles 67 and 72 of the

Local Councils Act, the Deputy Prime Minister and Minister for Justice

and Home Affairs, after consultations with the Prime Minister and

Minister of Finance, has made the following regulations>-

The title of these regulations is the Local Councils (Audit) Title.

(Amendment) Regulations, 2007 and they shall be read and construed

as one with the Local Councils (Audit) Regulations 1993, hereinafter L.N. 156 of 1993.

referred to as “the principal regulations”.

In regulation 2 of the principal regulations after the definition Amends regulation

2 of the principal

“Council’s administrative office” there shall be inserted the following regulations.

new definition>

“the Director” means the Director for Local Government<

Regulations 4 to 9 of the principal regulations shall be Renumbers

regulations 4 to 9

renumbered as regulations 5 to 10 respectively.

of the principal

regulations.

Immediately after regulation 3 of the principal regulations there Adds new

regulation 4 to the

shall be inserted the following new regulation>

principal

regulations.

4. (1) Auditors shall conduct mid-term audits

“Mid-term

audits.

whenever there is a change in the Executive Secretary. The

Mayor shall inform the Auditor General and the Director

whenever the Executive Secretary hands in his notice of

termination of employment or when the Local Council does

not intend to renew his contract.

(2) The Auditor General shall appoint an

individual or partnership to carry out the mid-term audit. The

fee for this audit, which will be paid by the Local Council

involved, will be agreed beforehand between the Auditor

General and the Local Government Auditor appointed to audit

that particular Council. The fee shall not exceed the fee

payable for the Financial Year and Audit.

(3) After concluding each mid-term audit, the

auditors shall present to the Auditor General the financial

statements covering the period from 1 st April to the last day

of the employment of the outgoing Executive Secretary, and

an Audit Report thereon. The auditors are also to draw up a

Management Letter on the financial position of the Council

pointing out any errors, omission and, or shortcomings and

weaknesses encountered. The auditors are to supervise any

adjustments and corrections that might be necessary.

(4) The time limit by which the documents listed

in subregulation (3) hereof are to be submitted to the Auditor

General shall be agreed upon between the Auditor General

and the auditors carrying out such audit.”.

In regulation 7, as renumbered, of the principal regulations,

immediately after subregulation (2) thereof there shall be added the

following new subregulation>

“(3) The Auditor General may request the auditors to submit

a special report on any other matter which he deems may require

further review.”.

For regulation 8, as renumbered, of the principal regulations,

there shall be substituted the following>

“8. (1) After concluding each audit, the auditors shall

submit to the Auditor General the financial statements prepared

by the Executive Secretary of the Council, the Audit Report thereon

and the Management Letter by not later than the 30 th June of each

year, or if this happens not to be a working day, the first following

working day>

Provided that, if there are any adjustments to be carried out,

the auditors are to bring these to the attention of the Local Council

and return the financial statements so that the necessary adjustments

are carried out and approved by the Local Council and revised

financial statements drawn up. The final approved financial

statements duly signed by the Executive Secretary and the Mayor,

are to be returned to the auditors who will append the Audit Report

and Management Letter and submit them to the Auditor General

by not later than the 30 th June of each year, or if this happens not to

be a working day, the first following working day.

(2) The Auditor General will then forward the financial

statements, the Audit Report and Management Letter to the Local

Council. The Mayor and the Executive Secretary in return are to

submit the Council’s response to the Director, the Auditor General

and the auditors by not later than August 14 of each year and if

this happens not to be a working day, the first following working

day, or six weeks after receipt of the Management Letter from the

Auditor General, after seeking the Local Council’s approval.

(3) The Council and the Executive Secretary shall>

(a) implement the auditors’ recommendations relating

to non-compliance with the Act, these regulations and other

regulations or procedures issued under the Act< and

(b) give due consideration to the implementation of

the recommendations made by the auditors to correct any

weaknesses in the Council’s accounting and financial

operations.”.

Immediately after regulation 10 as renumbered of the principal Adds new

regulation 11

regulations there shall be inserted the following new regulation>

to the principal

regulations.

“Ad hoc

The Minister or the Auditor General may request

audit.

an ad hoc audit of any Local Council’s operations, from any

other entity empowered to do so by any legislation in force.”.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

Lm0.16 (€0.37)