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Appendix C: Audit context

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Appendix B: Sector context

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Appendix A: Submissions and comments

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3. Internal controls and financial reporting issues

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Snapshot

The number of internal control and financial reporting issues across the sector has decreased but there is still room for improvement. The number of IT control issues has decreased but councils' outsourcing their IT services poses new risks.

2. Financial analysis

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Snapshot

Snapshot image with text: The sector generated a lower surplus as councils did not receive any financial assistance grants in advance. Cash reserves declined but are still sufficient to meet short-term obligations. Adjusted underlying result has declined over the past 6 years. Debt levels remain low.

1. Audit outcomes

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Snapshot

Snapshot image with text: Councils' financial reports and performance statements are reliable. Fewer councils had errors in their performance statements compared to last year. 18 of 79 councils did not meet legislative timelines.

Our recommendations

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We consulted with the audited agencies and considered their views when reaching our conclusions. The agencies' full responses are in Appendix A.

This year's recommendations

RecommendationAgency response

Councils

 

1

 

Appendix G: Data sources used in this review

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Appendix F: Procurement model definitions

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Appendix E: Project self-assessments 2021–22 to 2024–25

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Victorian Auditor-General's Office
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The Victorian Auditor-General’s Office acknowledges Australian Aboriginal peoples as the traditional custodians of the land throughout Victoria. We pay our respect to all Aboriginal communities, their continuing culture and to Elders past, present and emerging.

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The Victorian Auditor-General’s Office acknowledges Australian Aboriginal peoples as the traditional custodians of the land throughout Victoria. We pay our respect to all Aboriginal communities, their continuing culture and to Elders past, present and emerging.

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