Appendix D. Financial sustainability
Indicators used reflect short- and long-term sustainability, and are measured by whether councils or regional library corporations (RLCs):
Appendix C. Acronyms and glossary
Acronyms
| 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 |
Appendix B. Audit status
Inner metropolitan councils and associated entities
Entity |
Audit types |
Financial statements(a) |
Timeliness of audited financial statement completion | |||
|---|---|---|---|---|---|---|
Appendix A. VAGO reports on the results of audits
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 |
6 Internal controls
At a glance
Background
This Part presents the results of our assessment of internal audit and internal controls over procurement and asset management in local government.
Conclusion
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.
5 Performance information
At a glance
Background
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.
4 Financial sustainability
At a glance
Background
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.
3 Financial results
At a glance
Background
This Part analyses the financial results of Victoria’s 79 local councils and 12 regional library corporations (RLCs).
2 Audit opinions and quality of reporting
At a glance
Background
This Part deals with the results of the audits of 79 local councils, 12 regional library corporations and 14 associated entities. The timeliness and accuracy of an entity's financial report is integral to the quality of financial reporting. This part compares financial reporting practices in 2010–11 against better practice and time lines, and with 2009–10 performance.
1 Background
1.1 Introduction
This report covers the results of the audits of 105 local government sector entities, comprising councils, regional library corporations, companies, trusts and joint ventures, as set out in Figure 1A. The 105 entities are named in Appendix B of this report.
Figure 1A
Local government reporting entities
Type of entity |
2010 |
2011 |
|---|---|---|
Councils |