We have consulted with DELWP and the councils named in this report, and we considered their views when reaching our audit conclusions. As required by section 16(3) of the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those agencies and asked for their submissions and comments. We also provided a copy of the report to DPC.

Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

Responses were received as follows:

In this part of the report we summarise the financial outcomes of the local government sector for the year ended 30 June 2018, and comment on the sustainability of the sector.

The detailed data and calculations that underpin our commentary are provided in Appendix E, which lists our financial sustainability indicators, risk assessment criteria, benchmarks and the results of each indicator for each of the councils for the eight financial years 2013–14 to 2020–21.

Entities require well‐designed and efficient internal controls to help them meet their objectives reliably and cost‐effectively, including delivering accurate and timely external and internal financial reports.

Councils and their related entities prepare an annual financial report, and councils also prepare a performance statement annually.

The financial report shows financial performance and position, and is prepared in line with relevant Australian Accounting Standards and applicable legislation. The performance statement outlines a council's performance against performance indicators set by the Minister for Local Government.

We audit both the financial reports and the performance statements.

1.1 Overview

The Victorian local government sector consists of 79 councils, 10 regional library corporations and 16 associated entities.

The sector delivers a range of services to local municipalities including operating aquatic facilities, maintaining local roads, waste management, and delivering family services.

The Victorian local government sector consists of 79 councils, 10 regional library corporations and 16 associated entities. Each year, we audit the finances of these 105 entities.

This report outlines the results of our 2017–18 audits of the financial reports and performance statements of these entities. We also analyse the financial results and outcomes of the sector.

Ordered to be published

VICTORIAN GOVERNMENT PRINTER September 2018

PP No 440, Session 2014–18

Backlog

Backlog refers to the number of residential properties not serviced by a water authority, usually where: