Audited statements ‘very positive’ for management, council

Narrabri Shire Council’s work in ensuring it had adequate information for financial statements has been praised by auditors.

Council’s audited statements have been issued with a modified audit opinion after a disclaimer of opinion was issued last year.

The disclaimer was issued as auditors were unable to form an opinion as a result of the absence of information. This related to flood and impairment events and the accounting around work in progress.

“So our modification this year is not a disclaimer. It’s very positive for council that they have been able to provide us with sufficient evidence for June 30, 2023 balance sheet figures,” said Jacob Sauer, audit principal for Forsyths, at an extraordinary meeting of council on Tuesday.

“It cannot be understated how much work council and management put in to be able to get to the situation where we have sufficient evidence for closing balances.

“It is a big step in the right direction.”

Following the auditor’s report to council, Cr Greg Lamont queried a change to the restricted cash figure in the financial statements presented at the April meeting to the statement included with Tuesday’s business paper.

Cr Lamont said it could appear to be misleading to some in the community that council is in a better financial position than it actually is.

Mr Sauer said the query was not for the auditors to comment on.

“Internal allocations are a management and council decision,” he said.

General manager Rob Williams reemphasised that council staff have turned around a historical audit in the space of 12 months which is an incredible achievement.

“In April, draft statements were presented to council. We are now looking at the final statements,” Mr Williams said. “It was indicated at the time it would change.

“The accounting standards have been met. Those guidelines have been met. There is nothing untoward.”

Cr Ron Campbell moved that the audited statements be presented. This was seconded by Cr John Clements.

“We’re in a very good position now,” Cr Campbell said.

“Everything has been open and transparent. We’ve been engaged heavily throughout this whole process. I’m completely satisfied with the auditor’s comments and the work the staff have done.”

Cr Clements said he still held some concerns, and there are criticisms of the budget, however, acknowledged the turnaround in council’s systems.

Cr Lamont attempted to move an amendment for the Office of Local Government to conduct an investigation into council’s financial affairs.

“Because of my concerns about the treatment of moving restricted cash to unrestricted cash by staff, and that matter not coming back to council for ratification beforehand, I believe we need a full investigation into the financial situation,” Cr Lamont said.

Crs Rohan Boehm and Robert Browning voted in favour of the amendment while Crs John Clements, Cathy Redding, Lisa Richardson, Brett Dickinson, Ron Campbell and Darrell Tiemens voted against the motion.

Cr Boehm said he didn’t believe there was any malfeasance, however, councillors needed to be able to ask hard questions.

Cr Richardson said councillors had many opportunities to ask questions about the statements.

“Our team has done their job. Everyone is happy,” she said. “There is nothing malicious.”

The initial motion was passed with Crs Lamont and Boehm voting against it.