LINZ VAH Rating Revaluation Audit Handbook Final Copy 3 November 2004

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Description

Page 2 of 34 Contents 1 Introduction ............................................................................................................................................5 2 Attainment Level ....................................................................................................................................6 3 Risk Assessment ...................................................................................................................................6 4 Terms and Definitions (as per Rating Valuation Rules 3.1)...................................................................8 5 Abbreviations .........................................................................................................................................9 6 Management Control ...........................................................................................................................10 7 General Revaluations ..........................................................................................................................18 APPENDIX A – Explanation of Statistical Rules ......................................................................................................26 APPENDIX B – Definition of Sales Classification System .......................................................................................28 APPENDIX C – Expansion of Rule 7.4 .... ...

Sujets

• management

Informations

• Publié par: Vowyong
• Nombre de lectures: 33
• Langue: English

Extrait

         

   

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        Contents    1   5   2   ....ev.l........ttaiAt Lenmen...................................................................................................6....................   3   ................................ssmeAsse....nt..................................................................................6.............isk R   4   Terms and Definitions (as per Rating Valuation Rules 3.1)...................................................................8   5   ................................iverbbA..snoita..................................................................9.....................................   6   ................................................01........l...ntrot CoemennagaM................................................................   7   tionalua Reveral.............s..................................neG........8..1.................................................................   APPENDIX A – Explanation of Statistical Rules......................................................................................................26   APPENDIX B – Definition of Sales Classification System.......................................................................................28   APPENDIX C – Expansion of Rule 7.4....................................................................................................................29    

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Committee Representation   Committee LINZ VAH was responsible for the preparation of this Handbook and consisted of the following representatives:    Nominating Organizations   Nominating Organization Quotable Value NZ Beca Valuations Limited Valuation and Management Services State Valuation Office Auckland City Council Valuation Division Valnet Wellington City Council Land Information New Zealand   Related Documents New Zealand Legislation Rating Valuations Act 1998 – Rating Valuation Rules 3.1 Local Government (Rating) Act 2002 Local Government Act 1974 and 2002 Te Ture Whenua M
ori Act / M
ori Land Act 1993      

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       1 INTRODUCTION   This document is designed to assist Territorial Authorities (TAs) to fulfil their obligations to provide assurance to LINZ that their district valuation roll meets the minimum compliance requirements for a revaluation. The handbook is a quality improvement tool and as such will be periodically reviewed for currency and if amended if necessary. Compliance with the handbook requirements will not automatically mean approval for a revaluation and LINZ will continue to determine its own level of assurance requirements.   Scope   This handbook is generic in nature and applies to quality management in the process of revaluations as contained in the Rating Valuations Rules version 3.1, by: (a) Providing a self assessment tool for Valuation Service Providers: (b) Enabling measurement of compliance with the Rating Valuations Rules: (c) Providing a quality assurance tool for TAs.   Purpose   The purpose of the handbook is to:   (a) Establish the degree of attainment against the Rating Valuations Rules version 3.1; (b) Identify areas of compliance, and/or areas requiring additional improvement in order to reduce risk levels and provide robust rating valuation services to ratepayers.   This will be achieved by:   (c) Focusing on the required outcomes of the Rating Valuations Rules version 3.1; (d) Identifying common acceptable solutions (system, processes, methods etc.) appropriate to the service and setting that will attain the desired outcomes; (e) Recognizing alternative solutions that achieve the same outcome whilst providing robust rating valuation services to ratepayers; (f) Evaluating the level of attainment within a continuous quality improvement framework, and in relation to the maturity of the service.   Audit framework   The audit process requires each TA to determine the level of attainment it currently achieves for each relevant criterion. The levels of attainment are based upon a continuous quality improvement model and are incremental.        

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A yliattraP laitPAned         ATTA 2   EVEL    At INMENT L L vele atniemtn FAiatt denluF A yl

Interpretation  The service can clearly demonstrate implementation (practice evidence, training, records, visual evidence etc.) of the process, systems or structures in order to meet the required outcome of the criterion. 1. There is evidence of appropriate process (policy/procedure/guideline etc.), system or structure implementation without the required supporting documentation.  2. Or a documented process (policy/procedure/guideline etc.), system or structure is evident but the service is unable to demonstrate implementation where this is required.  The service is unable to demonstrate appropriate processes, systems or structures to meet the required outcome of the criterion.   

UAttained Una NANot Applicable       3 RISK ASSESSMENT   This process requires the service (internal or external) to identify the degree of risk to the accuracy of the district valuation roll associated with the level of attainment achieved by the service for each criterion.   The “risk” should be assessed in relation to the possible impact on the consumer, based on the consequence and likelihood of harm occurring as a result of the criterion not being fully implemented.   The Risk Assessment Matrix should be used when the audit result for any criterion is partially attained (PA) or unattained (UA).   To use the risk assessment matrix you should:   (a) Consider the consequence on the accuracy of the district valuation roll of the criterion being only Partially Attained (PA) or Unattained (UA) – ranging fromextreme risk of non compliancetonon complianceccoriur; ng (b) Consider the likelihood of this adverse event occurring as a result of the criterion being only Partially Attained (PA) or Unattained (UA) – ranging from the occurrence beingalmost certaintorare; (c) Plot your findings on the Risk Assessment Matrix in order to identify the level of risk – ranging fromCritical  to Negligible; (d) Prioritize risks in relation to severity (e.g.rCalicittoigglNeelbi); (e) Take appropriate action to eliminate or minimize risk within the time frame indicated by theAction Required   column.     

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          oohilekiLd      The The The The The Level of  likelihood likelihood likelihood likelihood likelihood      this  of this of this of this  of of this Action Required Risk    occurring occurring occurring occurring occurring is c   niat alsmo er    likely t is   is   is   yunlikel   is   rare   moderate   Critical  The consequence Requires immediate review of these criteria not of the revaluation to being met would determine its acce tabilit seriously threaten and whether corrective the acceptability  Moderate Low HighCritical Critical  the in order to rectif action for approval of the identified issue is revaluation and a ro riate. If no pose an  appropriate corrective   action is available re-    assess revaluation future with client.     The consequence Hi h of these criteria not Requires an urgent review being met would of the revaluation to threaten the Cirtical   High   Modereta   Low Negligible  tabilit determine its acce acceptability for  appropriateand identif approval of the corrective action. If no revaluation and a ro riate corrective pose a  action is available re-   assess revaluation future    with client.     The consequence  deMotera of these criteria not  a review of theRe uires being met would revaluation to identify and threaten the High   oMtedera   ateoderM   Low Negligible  riate im lement a ro acceptability for corrective or risk mitigation   approval of the actions.   revaluation and pose a               The consequence Low of these criteria not Requires a review of the being met would revaluation to identif and threaten the teradeMo   Low   Low   Low    elbigilgeN implement appropriate acceptability for corrective or risk miti ation approval of  s.ontica revaluation and pose a                  Ne li ible  Requires no additional     neve action or planning if these criteria are  NegligibleLow Low   Negligible Negligible   not met.     Figure 3.1 - Risk Assessment Matrix   Page 7 of 34

      4 TERMS AND DEFINITIONS (AS PER RATING VALUATION RULES 3.1)   AUDIT FILE means the district valuation roll data,sales data,and market rental data   required by the Valuer-General for audit purposes. (See Appendix A of Rating Valuation Rules, Parts 1, 2, and 3 for details of the data fields required.)    DVR is the District Valuation Roll–set out in section 2 of the Rating Valuations Act 1998.and has the same meaning   ERROR the term “error” as used in Rule 6 refers to an incorrectly entered value or to an error in the factual data (e.g. incorrect floor area) used to calculate the value.   EXTRAORDINARY EVENT means situations such as erosion, subsidence, submersion or other natural calamity, which have a lasting impact on the value of the affected properties.   GROSS SALE PRICE means the total sum paid for a property including the land, buildings, chattels, goodwill and stock etc. Gross Sale Price must equal the sum of Net Sale Price plus Chattels plus Other.   HISTORY OF CHANGES means a record of all alterations made to the district valuation roll.   IMPLEMENTATION means the process of transferring the proposed revaluation values and associated data to the district valuation roll.   INSTRUMENT has the meaning set out in section 5C (7) of the Rating Valuations Act 1998.   LAND USE DATA means the data   relating to permitted and actual uses and descriptive details concerning the principal structure. (See Appendix C of Rating Valuation Rules, for details of the data fields required).   MASS APPRAISAL DATA means the data relating to the physical attributes of site and improvements recorded for residential properties. (See Appendix D of Rating Valuation Rules, for details of the data fields required.)   LG(R)A is the Local Government (Rating) Act 2002.   NET SALE PRICE means the part of the price that is attributable to land and improvements only. It does not include items such as chattels, plant and machinery etc. This is the sum paid for the land and buildings of a property excluding chattels, goodwill, stock and plant equipment etc.   NOTIFICATION includes transmission by electronic means.   OUTLIER is any assessment where value movement is at a substantial variance to the general level of value movement for that type of property.   OWNER has the meaning set out in section 5 of the Local Government (Rating) Act 2002.   OWNERSHIP indicates whether a property is in Crown, local authority or M
 (See Appendix B of Ratingori ownership. Valuation Rules, for details of data fields required.)   PROPERTY CATEGORY means the category code used to identify the highest and best use classification of each property. (See Appendix F of Rating Valuation Rules, for details of data fields required.)     RATEABLE VALUE as defined in section 13(3) of the Local Government (Rating) Act 2002 and also includes the value of improvements.   RATEPAYER as defined in sections 10 and 11 of the Local Government (Rating) Act 2002.   REVALUATION BASIS means the evidence and analysis justifying the value levels adopted for various property categories.   RID means the Rating Information Database as defined in section 27 of the Local Government (Rating) Act 2002.   ROLL MAINTENANCE means alterations during the currency of the District Valuation Roll as provided by section 14 of the Rating Valuations Act 1998.   RVA means the Rating Valuations Act 1998.

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