How Property Rating Valuations Are Audited

The Valuer-General undertakes the following three types of audits to check compliance with the Rating Valuations Act 1998 (the Act) and the Rating Valuations Rules (Version 3.0):

1. Roll Maintenance audit to check ongoing maintenance of the District Valuation Roll (DVR) and supporting data.
2. Revaluation audit to check the overall accuracy of rating valuations assessed for a general revaluation.
3. Objections audit to check the processing of property owner's objections to their rating valuation.

The following deals primarily with the revaluation audit.

At the beginning of each calendar year, the Territorial Authority (TA) must notify the Valuer-General of its intention to conduct a General Revaluation, and the effective date of the revaluation. This allows the audit planning to start.

An audit engagement letter is then sent to the TA, with a copy sent to their Valuation Service Provider (VSP). The letter will include a questionnaire and a request for a revaluation report (Basis) on the methodologies used, market evidence, market comments and conclusions reached for defined property groups. The objective of the audit is to certify approval or non-approval of the general revaluation of the district in accordance with Section 11 of the Act.

Once the VSP has assessed the proposed rating valuations, they must provide the Valuer-General with the completed questionnaire, a copy of the Basis and electronic files of the property data and the sales. The Valuer-General must receive this information no less than 15 working days before the proposed implementation date.

The audit process involves analysis of the Basis and the audit files prior to an on-site visit of the VSP. The visit includes interviews with staff involved in assessing the valuations to ensure that:

• All relevant evidence has been considered.
• The conclusions from the evidence are reasonable.
• The conclusions have been applied correctly.
• Reasonable processes and systems are in place to achieve compliance with the legislation.

At the end of the 15-day period a letter of approval or non-approval is sent to the TA.

An Audit Report is later provided to the TA and VSP to summarise the findings and recommendations resulting from the audit.