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New Zealand’s experience of the Christchurch earthquakes Image

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24 October, 2011

INTOSAI Working Group AADA

Lyn ProvostController and Auditor General - NZOctober 2011

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• the events

• the impact

• audit implications

Overview

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INTOSAI Working Group AADA

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Christchurch – where the quakes hit

24 October, 2011

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INTOSAI Working Group AADA

• 4 September 2010 – the first quake

• 26 September 2010 – the aftershock

First quake and aftershocks

24 October, 2011

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• 181 lives lost• 500,000 tonnes of silt• state of emergency in force for 69 days• New Zealand’s costliest

natural disaster• international aid

22 February 2011 – the fatal quake

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Aftershocks continue............• 8,300 earthquakes in the Canterbury region since September

• 4.2 magnitude aftershock on six month anniversary of February quake

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Earthquake damage: people and property

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Christchurch Central Business District

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INTOSAI Working Group AADA24 October, 2011

Government response

• emergency powers including for expenditure

• cost – $13.6 billion and rising

• evolution of governance/agencies

• new legislation needed after February quake

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Our role

• The New Zealand Auditor-General’s mandate

- financial audit

- performance audit

- inquiry

- controller function

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Our audit staff• 40 staff in

Christchurch

• office in the CBD Red Zone, so relocated

• no IT infrastructure

• resilient attitude

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Our office in Christchurch

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Ongoing funding implications • sheer scale• private sector funding

• insurance• messy and complex

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Big dollars, strong powers• Key audit risks:

Lack of:

- coordination

- right action

- robust and appropriate process

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INTOSAI Working Group AADA24 October, 2011

Business as usual…

…when there is no business as usual

• Auditing impact

- accountability exemptions

- accounting impacts

- new decision making processes

- relevant and timely

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Auditor-General reflections

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INTOSAI Working Group AADA

• People -look after your own

• Financial audits- authority for expenditure- new agencies and changing

accountability arrangements- accounting for uncertainty

• Performance audits/inquiries- work in progress