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Overview

Role of the Auditor-General

The role of the Auditor-General is to provide Parliament with independent assurance of public sector accountability and performance. This is achieved through reporting to Parliament on the results of its financial and performance audits.

About the Auditor-General Report

The report summarises the audit results of Queensland’s 77 local government entities (councils) and the entities they control.

The Queensland Audit Office (QAO) found that all financial statements completed to date are reliable and comply with relevant standards, and that councils have generally been more timely in finalising their financial statements. Councils have continued to improve their year end processes and the quality of their draft financial statements, which has helped them to reduce the average time required to finalise their financial statements (to 15.99 weeks from 21.87 weeks in the last five financial years). The QAO noted, however, that four councils were yet to finalise their 2018-19 financial statements and that five councils did not meet their statutory reporting deadline because they had problems completing their asset valuation process.

The QAO also reported that financial sustainability continues to be a challenge for local governments, with more than half of councils spending more delivering services to their community than they receive in revenue from rates, fees and charges, and grants, particularly in rural, remote and Indigenous areas.

The report contains a number of recommendations for councils and for the Department of Local Government, Racing and Multicultural Affairs (DLGRMA). 

For councils, the QAO outlines a significant series of actions for all councils to consider to strengthen governance frameworks, strengthen internal controls and processes, secure employee and supplier information, improve cyber security awareness, strengthen asset management, improve financial management, improve the timeliness of financial reporting to communities, improving monitoring of controlled entities and long-term obligations for landfill rehabilitation, and improve new system implementations. 

For DLGRMA, the QAO recommended the department implement legislative changes to require all councils to have audit committees with independent chairs, as well reviewing the current financial sustainability ratios for local governments, and requiring entities controlled by councils to make their financial statements publicly available. DLGRMA expressed in-principle support for implementing legislative changes to mandate independently chaired audit committees (subject to stakeholder consultation), and confirmed its support for implementing the other two recommendations, including outlining early steps toward implementation. DLGRMA supported all recommendations made to councils.

Referral to Committee 

Standing Order 194B provides that the Committee of the Legislative Assembly shall as soon as practicable after a report of the Auditor-General is tabled in the Assembly refer that report to the relevant portfolio committee(s) for consideration. 

The committee is responsible under section 94 of the Parliament of Queensland Act 2001 for assessing the integrity, economy, efficiency and effectiveness of government financial management by examining government financial documents and considering reports of the Auditor-General.

The Committee of the Legislative Assembly referred this Auditor-General’s report to the committee on 20 February 2020 for consideration.

Referral Lapsed

The 56^th Parliament has been dissolved by proclamation dated 6th October 2020.  Following the dissolution of the Parliament, Auditor-General reports referred to portfolio committees must be re-referred to a portfolio committee in the new Parliament by the Committee of the Legislative Assembly.