ARTA Annual Report 2009 - Auckland Transport

21 Capital Management
ARTA’s capital is its equity (or owner’s interest), which comprise retained earnings and reserves. Equity is
represented by net assets.
The owner’s interest is largely managed as a by-product of managing revenues, expenses, assets, liabilities
and general financial dealings. The objective of managing these items, as set out in the Local Government
(Auckland) Amendment Act (LGAAA) 2004, is for ARTA to plan, fund and develop the Auckland regional
land transport system for the Auckland region.
The LGAAA requires ARTA to operate in a financially responsible manner and have regard to the reasonably
foreseeable needs of future generations. ARTA has in place asset management plans for major classes of
assets detailing renewals and maintenance programmes and must contribute to the ARC’s Long Term Council
Community Plan in order for the ARC to make adequate and effective provision to fund ARTA’s activities in
line with its obligations under the Local Government Act 2002.
ARTA has the following reserves:
Capital Grants Reserve – the capital grants reserve represents capital expenditure grants that have not been
offset by an associated depreciation charge.
22 Comparative Figures
Comparative figures included in the financial statements relate to the financial year end 30 June 2008.
Where necessary these figures have been reclassified on a basis consistent with current disclosure for 2009.
23 Auckland Council – Council Organisations
Due to enactment of the Local Government (Tamaki Makaurau Reorganisation) Act 2009 the existing local
authorities in the Auckland region will be dissolved on 31 October 2010. The functions, duties, and powers of
the existing local authorities will become the functions, duties and powers of the single unitary authority (the
Auckland Council) that will be responsible for governing the entire Auckland region from 1 November 2010.
The Auckland Transition Agency will develop an organisational structure for the new Auckland Council and
appropriate Council Organisations so that the Council can operate efficiently and effectively on and from
1 November 2010. The Auckland Transition Agency will develop a change management plan that includes
protocols and processes for managing the transition of:
i) assets from existing local government organisations to the Council structure;
ii) staff from existing local government organisations to the Council structure having regard to the
existing employment agreements applying to the staff.
Decisions are yet to be made on the Auckland Council’s organisational structure and operations including
how the Council Organisations (including the Auckland Regional Transport Authority) will be vested and
integrated into a relevant organisational structure.
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