A statement about Ohakune's accounts

Waimarino Bulletin, Volume 1, Issue 49, 29 May 1984, Page 2

A statement about Ohakune's accounts

Ohakune is not teetering on the brink of bankruptcy. Regardless of your recent correspondent's fear and interpretation of the most recently published accounts, the community is adequately solvent. Local Government Accounting Regulations are, perhaps regrettably, not designed to show more than 'cash in' and 'cash out' over the statutory accounting period. Normally this authority readily balances its books. Three factors make the 1982-83 accounts appear less than perfect: (1) An Audit Office requirement that all funds, and not only rate revenue, be accounted for in the Borough accounts; including such direct payments as Department of Labour P.E.P. wage monies. From 1983-84 onwards this will, naturally, be estimated for. (2) Over expenditure in Parks and Reserves. The justifiably praised improvements over this period in the appearance of the town had to be paid for! (3) The necessary purchase of a truck that the Borough certainly needed but had not estimated for in this particular year. It was a deliberate decision of Council to purchase the vehicle. The Audit Office have expressed no grave concerns with the financial management of the Borough but are obliged to point out any erring in our ways. The deficit of $37,664 is reduced to approximately $13,000 in the 1983-84 year (as yet unaudited) and

disappears entirely in the current year. To some extent, and under the present systems governing territorial local authorities, such occurrences are difficult to avoid on occasions. This is particularly so in this rapidly developing town where the Council is under significant pressure to keep pace with the rate of development. Normal commercial accounting procedures would, of course, take into account the many millions of dollars worth of community owned assets; plant, land, property; all owned by the 'shareholders' in the Borough. The easiest way to fully balance the books would be to further raise the rates and increase cash revenue. Our rates in Ohakune are set at

approximately one-third of the permissable level allowed for by regulation. I can't see any of our 'shareholders' agreeing that this would be a good idea. Local body accounts are most difficult to follow. I have read that a Wellington City ratepayer hoping to find out how much the Michael Fowler Centre has cost and, secondly, what the on-going cost will be to the ratepayer, faces a virtually impossible task. All I can do in an effort to help our 'shareholders' understand the full process is to issue a sincere invitation to attend the monthly meetings of the Finance and Administration Committee.

W.

Taylor

Mayor