Victoria's Constitution recognises local government as one tier of government. Democratically elected councillors govern councils, and their operations are managed by a council-appointed chief executive officer. While administered under the Local Government Act 1989, each council operates autonomously and is directly accountable to ratepayers.
In Victoria, the local government sector comprises 79 councils, their 10 regional library corporations and 16 associated entities. While administered under the Local Government Act 1989, each council operates autonomously and is directly accountable to ratepayers. Local Government Victoria (LGV), within the Department of Environment, Land, Water and Planning (DELWP), provides policy advice, oversees legislation and works with the Minister for Local Government and local councils.
| AASB | Australian Accounting Standards Board |
| DELWP | Department of Environment, Land, Water and Planning |
| DPC | Department of Premier and Cabinet |
| ESC | Essential Services Commission |
| IT | Information technology |
| LGPRF | Local Government Performance Reporting Framework |
| LGV | Local Government Victoria |
| KMP |
Ordered to be published
VICTORIAN GOVERNMENT PRINTER November 2017
PP No 347, Session 2014–17
Dear Presiding Officers
Ordered to be published
VICTORIAN GOVERNMENT PRINTER November 2017
PP No 346, Session 2014–17
Dear Presiding Officers
Responsibility of public entities to achieve their objectives in reliability of financial reporting, effectiveness and efficiency of operations, compliance with applicable laws, and reporting to interested parties.
The systematic allocation of the depreciable amount of an intangible asset over its expected useful life.
An item or resource controlled by an entity that will be used to generate future economic benefits.
The fair value of a non-current asset on a specified date.
Our assessment of financial reporting performance against better practice was based on elements outlined in Figure F1.
Figure F1
Better practice elements to financial report preparation
|
Key area |
Better practice |
|---|---|
|
Financial report preparation plan |
Develop a 'financial report preparation plan' incorporating: |
Appendix E sets out the definitions we use for the current and prior years that assist us in assessing and reporting on financial sustainability risks across the water sector.
However, these financial sustainability indicators are only indicative, highlighting financial sustainability risks at a cohort level—metropolitan, regional urban and rural—looking at each entity relative to the cohort against a five-year average.
Figure D1 shows the risk ratings applied to management letter points raised during an audit.
Figure D1
Risk definitions applied to issues reported in audit management letters
|
Rating |
Definition |
Management action required |
|---|---|---|
|
Extreme |
Figure C1 shows the dates when entities' 2016–17 financial and performance reports were certified and auditor's reports were issued.
Figure C1
Acquittal of audits
Note: FMA—Financial Management Act 1994.