Report snapshot: Local government 2024

About this report 

The report presents the results of the local government sector financial audits for the year ended 30 June 2024.

Audit results

Unqualified audit opinions were issued for 124 (of 128) councils, 8 (of 9) county councils and 11 (of 13) joint organisations. 

Disclaimers of opinion were issued for Glen Innes Severn Council and the New England Weeds Authority.  

Qualified audit opinions were issued for Snowy Valleys Council and Moree Plains Shire Council. 

Timeliness improved as 88% of councils lodged their audited financial statements by the statutory deadline of 31 October (67% in the previous year).

Findings

Financial sustainability is a concern for some councils

There were 35 councils that met none or just one of the three key financial sustainability benchmarks. Sixteen councils have insufficient cash and investments, not subject to external restrictions, to meet three months of their expenses (excluding depreciation and interest). 

Revenue growth lags expenditure growth after adjusting for inflation, resulting in negative growth in real terms. 

About 40% of councils did not break even in 2023–24. 

Cyber security remains a risk 

Cyber security controls have improved, especially regarding cyber governance. However, control gaps were identified in cyber security training and risk management of third-party systems.  

Recommendations 

• The Department of Planning, Housing and Infrastructure should reduce councils’ financial reporting burden, and remove non-value-adding disclosures from financial statements.
• Councils should perform more robust month-end processes, quality reviews of financial statements and supporting working papers before they are submitted for audit.

Further information

Please contact Renee O'Kane, Chief of Staff, on 9275 7347 or by email.