LAST week the NSW Auditor-General tabled a Performance Audit Report titled Financial Management and Governance in MidCoast Council.

The audit involved a retrospective look at Council’s processes between July 2019 and June 2022.

The Report details the merger challenges that Council faced and highlights some inadequacies in our procedures during this time.

These findings were not a surprise to staff or Councillors.

Merging four corporate and financial systems into one is a complicated exercise and has taken considerable time and resources.

As well as highlighting these procedural inadequacies, the Report also documents the continuing improvements that have been made by Council during this period to resolve these issues.

The report accurately reflects the journey we have been on since the NSW Government merger of the four previous entities into one (three Councils and the Water Authority).

The report is critical of delays in finalising a reliable Long-Term Financial Plan (LTFP).

This plan depends heavily on accurate and reliable asset information.

We have spent the last few years verifying and revaluing all our assets.

While the former entities had asset management systems in place, they were not of sufficient quality or consistency to provide the level of confidence required for longer-term financial modelling.

I am pleased that these asset management plans are nearing completion, and we will be considering them at our Ordinary Council meeting next week.

We will also be considering an updated Long-Term Financial Plan at the meeting.

This Plan has, for some time, indicated that we face challenges in our General Fund (which covers our transport assets, open spaces, and all our community services), with predicted future deficits.

This is primarily due to our reliance on grant funding and our inherited backlog for roads and other public infrastructure maintenance and renewals.

Our cashflows, however, are strong.

In recognition of these future budget challenges, Councillors last year called for a Financial Sustainability Strategy.
This is currently being worked on and will be reported at the end of this calendar year.

At the same time, Council is undertaking service reviews with a view to optimising service delivery to our community, eliminating unnecessary expenditure, and identifying opportunities to generate additional non-rate revenue streams.

We welcome the Report and the additional insights it has provided and will continue to implement the recommended improvements.

A copy of the audit report and Council’s response can be found at https://www.midcoast.nsw.gov.au/Your-Council/Our-news/News-releases/Update-from-the-Mayor’s-desk-response-to-performance-audit-report

By MidCoast Mayor Claire PONTIN