Future challenges and emerging risks
For grant-dependent councils, there is lack of certainty about the amounts that will be available in the future. This uncertainty makes it difficult to make some medium term decisions and to plan for financial sustainability in the long term.
The Department of Local Government, Racing and Multicultural Affairs sets the ratios that councils use to measure sustainability. The department needs to consider if these ratios are still relevant or if they should be more fluid, to address the changing needs of councils.
The council elections in March 2020 may result in significant changes in some councils’ governance structures. During this time, councils will need to maintain effective internal control environments to protect their assets, deliver quality community services, and prevent fraud and error. Not appropriately addressing significant control deficiencies in a timely way may indicate weaknesses in a council’s broader internal control framework and unnecessarily expose the council to the risk of error or fraud.
For more information
For more information on the results, financial performance, and future challenges and emerging risks highlighted in this summary presentation, please see the full report on our website.