Regional local governments ace responsible financial reporting in Auditor General’s top 20 list

Local governments across WA’s regions have aced their reporting obligations, with the Shire of Denmark getting a special mention in the WA Auditor General’s best practice top 20.

The Office of the Auditor General summarised the results of the annual audits of 135 local government bodies for the financial year ending June 30, 2024, in its local government report for 2023-24, which was released on April 24.

The Shire of Denmark and City of Albany were the only local governments in the Great Southern to make the top 20 list, with Denmark singled out for its efficiency and audit readiness.

“It demonstrated what can be achieved with efficient internal review processes and well-prepared financial statements,” acting auditor general Sandra Labuschagne said.

“The shire submitted required documents by September 6 and received a clear opinion on October 18, allowing for timely reporting to their ratepayers and stakeholders.

“Good preparation leads to fewer issues, faster sign-off and better outcomes for their community.”

Regional local governments fared particularly well, making up 17 of the top 20, with the shires of Irwin, Exmouth, Chapman Valley, Perenjori, Three Springs and Cue in the Mid West and Gascoyne accounting for about a quarter of the list.

The Wheatbelt was also well-represented in Beverley, Lake Grace, Brookton and Dumbleyung, as was Goldfields-Esperance with the shires of Esperance and Menzies.

The Shire of Dardanup was the only South West shire to make the list and there were none from the Kimberley or Pilbara.

Ratings were based on factors such as timeliness, the quality of the reporting and the standard of the papers which supported the councils’ financial documentation.

Also taken into consideration were the availability of key staff during the audit process and how any accounting issues were resolved.

According to Ms Labuschagne, accurate financial reporting remained a concern, with some councils submitting four versions of their financial statements before an audit could be completed. One council submitted 16 versions.

She urged councils to take greater care with their reporting.

“Multiple revisions create delays, cost time and resources, and reflect gaps in quality assurance processes,” she said.

The top 20 were:

• City of Albany
• Town of Bassendean
• Shire of Beverley
• Shire of Brookton
• Shire of Chapman Valley
• Shire of Christmas Island
• Shire of Cue
• Shire of Dardanup
• Shire of Denmark
• Shire of Dumbleyung
• Shire of Esperance
• Shire of Exmouth
• Shire of Irwin
• Shire of Lake Grace
• Shire of Menzies
• Shire of Mundaring
• Shire of Murray
• Shire of Perenjori
• Shire of Three Springs
• City of Vincent