Audit Results Report - Annual 2017-18 Financial Audits of Local Government Entities

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Auditor General's overview

This report summarises the results of 42 local government entities’ annual financial report audits completed by my Office to date for the year ending 30 June 2018, following proclamation of the Local Government Amendment (Auditing) Act 2017. This was the first of a 4-year transition of local government financial auditing to the Office of the Auditor General.

In addition to reporting the results of the audits to Parliament, this report is intended to provide further insight for Parliament and the local government sector to our approach for performing and reporting on financial audits.

I recognise that we, together with the sector, have only just begun our journey in this new era of local government financial auditing. The 42 audits completed in 2017-18 represent approximately one third of all WA local government entity audits…

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Report content

Executive summary
This Audit Results Report contains findings from the annual financial audits of local government entities (LGs) that we audited for the 2017-18 financial year. Read more...
Introduction
Under the Local Government Amendment (Auditing) Act 2017 (Amendment Act), proclaimed in October 2017, a staged transition has commenced for local government entities (LGs)…
Summary of auditor's reports issued
At 1 March 2019, we had issued auditor’s reports for 42 LGs for the financial year ending 30 June 2018. Read more...
Financial and management controls
In addition to the material non-compliance matters reported in our auditor’s reports (see Table 1 on pages 11 to 13), we reported other matters to management...
Observations that may improve audit outcomes
The annual financial audit is focussed on providing assurance over a LG’s annual financial report. Read more...
Auditor independence
OAG staff and contractors are required, by the AG Act, the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants...
Financial reporting challenges relating to asset valuations
During our audits we noted a variety of valuation methodologies being used for property, plant, equipment and infrastructure in the WA LG sector. Read more...
Upcoming changes to accounting standards and the local government regulations
A number of significant changes to Australian Accounting Standards will be applicable over the next few years, some commencing in 2018-19. Read more...
Appendix 1: Entities audited
We have to date completed 42 of the 46 audits for 2017-18. The auditor’s reports issued are listed in the table below...
Appendix 2: Certifications issues
In addition to annual auditor’s reports, some LGs needed to acquit moneys received from other sources under grant agreements or other legislation...
Appendix 3: Timeline of communications
A diagram showing the timeline of communications between auditors, management and council members...
Glossary and abbreviations
Providing definitions for terminology used throughout the report. Read more...