Local government entities: 2017–18 results of financial audits

Tabled Report 18: 2018–19

Tabled date

2019-05-15

Report year

2018-19

Community amenities Local government

Entities audited

Not identified in the published HTML audit scope.

Recommendations

1. QAO's text Addressed to: the Department of Local Government, Racing and Multicultural Affairs

   mandates that the chair of a council audit committee is an independent member

2. QAO's text Addressed to: the Department of Local Government, Racing and Multicultural Affairs

   reviews the appropriateness of the net financial liabilities ratio, as most councils favour cash over debt.

   We recommend, as we have in prior year reports, that the Department of Local Government, Racing and Multicultural Affairs mandates:

3. QAO's text Addressed to: the Department of Local Government, Racing and Multicultural Affairs

   audit committees for all councils

4. QAO's text Addressed to: the Department of Local Government, Racing and Multicultural Affairs

   that financial statements of controlled entities be made publicly available, preferably in a consistent location.

5. QAO's text Addressed to: as we have in prior year reports, that councils

   continue to assess their processes for ensuring that asset registers are complete and remain current over time

6. QAO's text Addressed to: as we have in prior year reports, that councils

   review and update their month end close processes to include:

   • monthly accrual statements of financial performance and position, and cash flow information
   • variance analysis, key ratios, trends, and other non-financial information that will enable councillors and council executives to better understand their council’s financial performance and outlook

7. QAO's text Addressed to: review their accounting for rehabilitation of landfills. This

   review their accounting for rehabilitation of landfills. This should include:

   • assessing open and closed landfill sites and whether a liability has been recognised
   • ensuring all future costs associated with their obligations under their environmental authority (licence) are included in the provision

8. QAO's text Addressed to: review their accounting for rehabilitation of landfills. This

   review their monitoring controls and memberships of their controlled entities’ boards, and:

   • appoint independent directors to provide specialist skills, experience, and diversity
   • establish appropriate mechanisms for oversight and to manage conflicts of interest.

   These recommendations should be addressed if councils and their entities are to improve their financial stewardship.

Authoritative report — Queensland Audit Office

Report PDF on QAO