Council’s liquidity ‘reasonably stable’, debt level drops: Auditor representative

Narrabri Shire Council has been described as having reasonably sustainable liquidity and declining debt as part of the audit process of financial statements from the 2024/25 financial year.

A representative of council’s contract auditor, Forsyths, made a presentation to the final meeting of the year in 2025.

Paul Cornall told the meeting an unmodified opinion had been issued.

This was also confirmed by the NSW Audit Office and marked a significant improvement after council had been issued with a disclaimer of opinion on its 2021/22 financials and a qualified opinion in 2022/23.

Mr Cornall acknowledged the audit report had been signed in December, instead of October, due to asset recording of flood works renewals.

He made particular mention of changes in the income statement on the previous year as council grant stimulus funding had started to end.

Asset write-offs had increased too, following the renewal and replacements of council-maintained structures including roads and bridges.

Council’s business paper noted a deficit before capital income items of $29.1 million, largely due to the $17 million loss on disposal of assets.

This was an increase of $12 million on the previous year due to a large number of grant funded roads projects being capitalised in the year.

Mr Cornall noted that cash overall had fallen.

“Council’s liquidity remains reasonably stable. The available cash has dropped. Loans have also dropped from $2.8 million to $2.4 million due to repayments,” he said.

Council’s debt level is among the lowest of other North West local government areas.

Mr Cornall also noted that $34 million had been spent on infrastructure.

The debt service ratio, measuring the ability to cover debt repayments, had dropped slightly, however, Mr Cornall said council still had a “reasonably healthy cover”.

Following Mr Cornall’s report to council, the presentation of the 2024/25 audited financial statements including auditors reports was brought forward. This was moved by Cr Ethan Towns and seconded by Cr Ryan Whillas.