44 Report by Auditor-General on loss incurred by local authority


For the purposes of this section and sections 45 and 46, a local authority is to be regarded as having incurred a loss to the extent that any of the following actions and omissions has occurred and the local authority has not been fully compensated for the action or omission concerned:


money belonging to, or administrable by, a local authority has been unlawfully expended; or


an asset has been unlawfully sold or otherwise disposed of by the local authority; or


a liability has been unlawfully incurred by the local authority; or


a local authority has intentionally or negligently failed to enforce the collection of money it is lawfully entitled to receive.


If the Auditor-General is satisfied that a local authority has incurred a loss, the Auditor-General may make a report on the loss to the local authority, and may include in the report any recommendations in relation to the recovery of the loss or the prevention of further loss that the Auditor-General thinks fit.


The Auditor-General must send copies of the report to the Minister and every member of the local authority.

Compare: 1974 No 66 s 706A