The following comment from the City of Greater Dandenong to the Acquittal Report Annex B: Local Government, published in February 2011 was erroneously excluded from the published report.
In accordance with section 16A and 16(3) of the Audit Act 1994 a copy of this report, or relevant extracts from the report, was provided to the Treasurer and all relevant agencies with a request for submissions or comments.
Responses were received as follows:
Figure E1 provides examples of performance measures found in our review.
Figure E1
Examples of shortfall of measures on performance indicators
Key strategic activity |
Measure |
Audit comment |
|---|---|---|
Time based measures |
||
Complete Stage 1 of the low energy lighting replacement program. | ||
Indicators used reflect short- and long-term sustainability, and are measured by whether councils or regional library corporations (RLCs):
| AASB | Australian Accounting Standards Board |
| ANAO | Australian National Audit Office |
| CEO | Chief executive officer |
| CFO | Chief financial officer |
| DPCD | Department of Planning and Community Development |
| DRP | Disaster recovery plan |
| KPI | Key performance indicator |
| KSAs | Key strategic activities |
| The Act | Local Government Act 1989 |
Entity |
Audit types |
Financial statements(a) |
Timeliness of audited financial statement completion | |||
|---|---|---|---|---|---|---|
Figure A1
VAGO reports on the results of the 2010–11 financial audits
Report |
Description |
|---|---|
Auditor-General's Report on the Annual Financial Report of the State of Victoria, 2010–11 |
This Part presents the results of our assessment of internal audit and internal controls over procurement and asset management in local government.
Most councils had implemented elements of better practice across internal audit, procurement and asset management, however, opportunities for improvement were identified. It was disappointing that five councils had not established internal audit functions.
All councils are required to report their actual performance against measures and targets associated with the Key Strategic Activities (KSAs) set out in their four year council plans. This requirement was introduced into the Local Government Act 1989 in 2003.
The financial sustainability of the 79 councils and 12 regional library corporations (RLCs) can be assessed by analysing their capacity to meet current and future expenditure as it falls due. The entities must also be able to absorb the effect of financial risks materialising, without significantly changing their revenue and expenditure policies.
This Part provides our insight into the financial sustainability using six indicators for councils and five indicators for RLCs.