Challenges faced by councils.

What the Auditor-General reports tell us about the real reporting pressure on councils

The Auditor-General’s recent local government reporting gives a practical picture of where councils are under pressure. In the 2023–24 local government audit cycle, 91.5% of financial statements were submitted on time. In the same cycle, 116 audit findings were raised, and 93 of those findings — 80.17% — related to internal control environments, including oversight, risk assessment, segregation of duties and independent review of reconciliations.

The previous year showed similar stress points. In the 2022–23 audit results, Local Government recorded 100 audit findings, including 14 high-risk findings. Those are not abstract indicators. They point to pressure in the systems, controls and review mechanisms that support sound reporting and compliance.

The pressure is not evenly distributed across the sector. In the Auditor-General’s 2021–22 local government commentary, rural councils were highlighted as a concern, with average growth in expenses outpacing average growth in revenue over a four-year period. That matters because limited financial capacity and tight resourcing make it harder to maintain strong planning, evidence, controls and reporting disciplines year after year.

Taken together, the audit story is clear. Councils do not just need help at annual report time. They need stronger year-round alignment between planning, implementation, controls, evidence and review. That is especially true for smaller councils trying to meet growing expectations with limited internal capacity.

Source: Auditor‑General Reports, Tasmania, 2021–2024.