- Reforms to local government financial reporting will reduce costs and improve transparency for ratepayers
- Changes in line with recommendations from the Auditor General
- All credit card transactions to be publicly reported at council meetings from September
- Changes being implemented as part of the Cook Government’s major local government reforms
Key reforms to bolster financial transparency in local governments are now coming into effect, as part of the ongoing delivery of the Cook Government’s major package of reforms.
The reforms will simplify annual financial reporting – reducing cost and complexity of reporting – while ensuring that critical financial information is made available to ratepayers.
Under the changes, all local governments will be required to publicly disclose all employees’ credit card transactions at council meetings each month, commencing in September, and listed in the meeting minutes.
New standardised templates are now available to assist local governments in preparing financial statements for the 2022-2023 financial year – a standard template for larger councils, and a further simplified template is available for smaller councils which generally have less complex financial operations.
These changes to simplify financial reports have been based on recommendations by the Office of the Auditor General (OAG).
Local Government Minister David Michael said the changes will simplify and standardise financial reporting and auditing for all local governments in Western Australia, making the reports clearer and more easily understood by ratepayers.
OAG audits on local government financial statements will still be carried out in accordance with Australian Auditing Standards and will remain generally consistent with reporting for State Government agencies.
More information is available on the Department of Local Government, Sport and Cultural Industries website.
Comments attributed to Local Government Minister David Michael:
“It is critical that local government financial information is clear and transparent. Ratepayers must be able to have a clear view into how their local government is spending funds to benefit the community.
“The new requirement for credit card spending to be presented at council meetings allows anyone to review and have confidence in how local government funds are being used.
“I know some local governments have already adopted public reporting of transactions, which has ensured clear accountability.
“Reforms to financial statements will reduce cost and complexity. New templates will also make the process of reporting more consistent across the State.
“As the new Minister, I’m very proud to continue the delivery of the Cook Government’s landmark local government reforms.”
