Auditor General Report Shows South Burnett Council Leading in Financial Management
The Auditor-General’s Report on Local Government has marked the South Burnett Regional Council highly on the crucial financial sustainability indicator.
CEO Mark Pitt said that Council’s net financial liabilities were 9.1% compared with the median of nine rural/regional Councils of -26.2%. “The South Burnett Regional Council is way ahead in the financial health stakes,” said Mr Pitt.
“Our asset sustainability ratio of 110.7% was also higher than the median for similar Councils of 98.2%.”
Importantly, the South Burnett’s relative risk assessment indicator was at the lowest end of the spectrum.
“Our cash position is strong, and our loan levels and debt management are all within respectable limits,” said Mr Pitt.
Mayor Otto said that the report was encouraging, however cautioned that while the South Burnett’s historical financial performance was sound, the future financial sustainability of council will come with challenges. “We are going to need to be very careful about the decisions we make moving forward.”
“Council has reported deficits for the past two years and is likely to do so again in 2022/2023. This has been the result of increasing depreciation costs due high to asset revaluations. We have more revaluations coming this next year. The Queensland Grants Commission has reduced Council’s financial assistance grants by $1.5m over the next three years - a decision that has me completely baffled,” said the Mayor. “We have written to the Queensland Government and received no satisfactory response.”
“Coupled with inflationary pressures, this will give rise to significant challenges for both our community and the council. More than ever, we will need to manage our finances very carefully,” said Mayor Otto.
The Auditor-General’s Report can be found here.
