Audits of Rating Valuations

Here you will find an overview of the processes used by the Valuer-General to audit property rating valuations made by local authorities.

Types of audits

There are four types of property audits and all are designed to ensure that valuations comply with the Rating Valuations Act 1998 and the Rating Valuations Rules 2008.

The audits used are:

• revaluation audit
• roll maintenance audit
• objections audit
• process and controls audit.

Publication of an audit report

The Territorial Authority (TA) and valuation service provider (VSP) are provided with an audit report, which includes a summary of the findings and recommendations.

Revaluation audit

The revaluation audit checks the overall accuracy of rating valuations assessed for a general revaluation. (The Valuer-General certifies approval or non-approval of the general revaluation of the district in accordance with Section 11 of the Act.)

The following outlines the revaluations audit process:

1. Territorial Authority contacts the Valuer-General

At the start of the calendar year, the TA notifies 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.

2. Audit engagement letter sent

An audit engagement letter is then sent to the TA, with a copy sent to the TA’s VSP.

The letter includes:

• a questionnaire
• a request for a revaluation report (called the "basis") on the methodologies used
• market evidence
• market comments
• an assurance statement (pdf 25KB) and
• conclusions reached for defined property groups.

3. VSP assesses the proposed rating valuations

Once the VSP has assessed the proposed rating valuations, the VSP must provide the Valuer-General with:

• the completed questionnaire
• a copy of the "basis"
• 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.

4. Audit analysis and on-site visit

The audit process involves analysis of the basis and the audit files prior to an on-site visit of the VSP. Staff involved in assessing the valuations are interviewed 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.

5. Certification by Valuer-General

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

Revaluation audit report

The revaluation audit report includes a ranking table that summarises the TA and VSP’s performance against a minimum standard for eight critical parts of the revaluation process.

Roll maintenance audit

The roll maintenance audit checks ongoing maintenance of the district valuation roll and supporting data.

Objections audit

The objections audit checks the processing of property owners' objections to their rating valuation.

Process and controls audit

The process and controls audit assesses how prepared a VSP is for a revaluation. The audit tests the systems, planning and documentation to support a revaluation. It is carried out approximately six months prior to an upcoming revaluation.