SA councils fighting push by Auditor General to scrutinise how ratepayers’ money is spent

COUNCILS are defying a push by the state’s spending watchdog to closely scrutinise how ratepayers’ cash is spent, leaked documents show.

The LGA argued the plan would not be of benefit to ratepayers.

• Mayor took donations, footy tickets from developers
• From $10 cheeses to $300 scarfs, the gifts for our councillors
• Auditor General to investigate councils’ credit card usage
• Onkaparinga’s $70k credit bill in 18 months
• The mayor, his online lover and two ratepayer-funded foreign trips

COUNCILS are defying a push by the state’s spending watchdog to closely scrutinise how ratepayers’ cash is spent, leaked documents show.

The Advertiser has learned local government leaders are challenging the Auditor-General’s Department’s bid to inspect council finances, revenues and expenditure.

“Many” local authorities argue the move would cost ratepayers but provide no “benefit”.

That’s according to correspondence between the State Government and the Local Government Association.

The government, however, believes the landmark reforms will boost transparency and accountability, provide better-quality audits and more consistent financial checks.

The minister with oversight of councils, independent MP Geoff Brock, has expressed frustration at LGA claims that more scrutiny was of little community value.

Minister for Local Government, Geoff Brock. Picture: Picture: Bianca De Marchi

Local Government Association SA president Lorraine Rosenberg

Details of the stand-off comes amid a public backlash over questionable council spending and an official Auditor-General’s inquiry into councils’ use of corporate credit cards.

Onkaparinga, one of the state’s biggest councils, has come under fire over its spending, including a golf club membership for its CEO and lavish staff credit card expenditure.

The Advertiser also revealed Port Pirie’s mayor, John Rohde, billed ratepayers for two overseas trips in six weeks, during which he met up with his online girlfriend.

A council review criticised his “error in judgment”.

MORE: Adelaide mayor took footy tickets, donations from developers.

LGA chief executive Matt Pinnegar denied being against more scrutiny.

“The Auditor-General can continue to use discretionary powers to investigate issues of concern as they arise, rather than imposing additional costs on South Australian ratepayers,” he said.

In 2016, a parliamentary inquiry found no “oversight” over council audits, a lack of independence and work quality concerns.

MPs strongly urged new powers for government auditors in order to scrutinise SA’s 68 councils.

Port Pirie Mayor John Rohde

Since then Mr Brock and the LGA have debated its merits in letters and meetings.

While Mr Brock is supportive, LGA president and Onkaparinga mayor Lorraine Rosenberg said “many” councils rejected the idea over cost fears.

In contrast, an LGA report last year said it should be “considered as a serious alternative”.

Under state law, the Auditor-General can “examine the efficiency and economy” of any publicly funded body and compel co-operation. Reports are tabled in State Parliament.

But councils’ financial statements are audited privately.

While Auditor-General fees were unavailable, the average audit cost for a large council in SA is $44,000.

The LGA says that in comparison, auditing a similar-sized council in Victoria costs $61,000, $79,000 in NSW, and $191,000 in Queensland.

The LGA wants council reform to be a “priority” for the next state government, including “standardising” audits.

With councils responsible for $22 billion of public assets and combined $2 billion annual budgets, it argues councils are already subject to extensive scrutiny including from the State Ombudsman and Independent Commissioner Against Corruption.

Mr Brock’s spokeswoman said: “The government has made it clear that it expects all councils to lead reforms, which improve transparency and accountability to ratepayers.

“This approach has included ongoing discussions ... about responsibility for council audits to be moved to the Auditor-General.”

The LGA, she added, had indicated “further work is required”.

The Liberal Party does not support the Auditor-General being involved in council audits.