Figure G1 lists and describes the financial indicators that we use to assess councils' financial sustainability risks. These indicators should be considered collectively and are more useful when assessed over time as part of a trend analysis.
Refer to the data dashboard on our website (www.audit.vic.gov.au/report/results-2020-21-audits-local-government) for individual council financial sustainability data and analysis.
Figure F1 defines the risk ratings that we apply to internal control issues. It also details what the ratings represent and the expected timeline for the issue to be resolved.
FIGURE F1: Risk rating definitions
Click the link below to download a PDF copy of our audit opinions issued for the local government sector for 2020–21.
| Acronyms | |
|---|---|
| IT | information technology |
| LGPRF | Local Government Performance Reporting Framework |
| VAGO | Victorian Auditor-General’s Office |
We conduct our financial audits of the local government sector in accordance with the Audit Act 1994 and the Australian Auditing Standards. As part of an audit, we:
Local Government Victoria classifies councils into five local government comparator groups. These cohorts, which Figure B1 summarises, are determined based on size, demographics and funding.
FIGURE B1: Council cohorts
Click the link below to download a PDF copy of Appendix A. Submissions and comments.
Asset management and information technology (IT) controls are key areas for improvement across the sector.
Councils are required to develop effective internal control systems to maintain proper accounts and records.
Our Annual Plan 2021–22 included a proposed audit of council waste management services. The audit objective was to determine whether local councils’ waste management services provide value for money.
The proposed agencies included Bayside City Council, City of Ballarat, City of Melbourne, DELWP, Grampians Central West WRRG, Greater Dandenong City Council, the Metropolitan WRRG and SV.