20 February 2020
The Queensland Audit Office undertakes an annual audit of Queensland’s 77 local government entities (councils). The purpose of this audit is to assess that councils are providing reliable financial statements that comply with relevant laws and standards.
Queensland Audit Office (QAO) found that all Councils have generally been timelier in finalising their financial statements.
Additionally, the QAO also provides an assessment of Queensland councils’ financial sustainability. Southern Downs Regional Council is very pleased with the QAO’s assessment of its financial sustainability.
Council is shown to have an acceptable operating surplus with a noted improving trend. Meaning that Council is generating surpluses consistently. Council has also been identified as having positive asset sustainability.
Asset sustainability refers to the ability to be able to sufficiently replace or renew assets as they reach the end of their useful lives. Again an improving trend was noted by QAO.
Southern Downs Regional Council Deputy Mayor Jo McNally and Councillor for Finance, Governance, and The Arts has said that she is very pleased with the outcome of the report.
“As the portfolio holder of Finance, Governance and The Arts, I am extremely proud that Council has received green lights on each of the key financial ratios. This is a clear indication that Council has been successful in implementing financial restraint over the last 4 years to ensure financial ratios would be met while still delivering services to the community,” said Councillor Jo McNally.
“Key ratios are Operating Surplus, this ratio has been met by ensuring that rates revenue covers not only operating expenses but is also utilised to fund capital expenditure. Net Financial Liabilities Ratio has been met as Council has sufficient capital to fund liabilities and Asset Sustainability Ratio target achieved by Council as we have demonstrated that we have managed our assets in an efficient manner.
“To receive a green light for Financial Sustainability is vindication that the financial measures we have taken over the last four years have achieved the goal we set at the beginning of this term to ensure Council would be in a better financial position that when we were elected. Council received three out of five green lights in the area of Internal Controls and SDRC finance staff are committed to ensuring these deficiencies are addressed in the short term.
“I would like to thank the Mayor, my fellow Councillors, CEO, Directors, Managers and all staff who have worked extremely hard and been committed over the last four years to turn around the finances of SDRC to ensure we are financial sustainable into the future, to ensure we can continue deliver services to our communities.”
This report is publicly available to access and can be found on the Queensland Audit Office website www.qao.qld.gov.au