State’s public sector watchdog finds councils are misspending ratepayers’ money
Councils say credit card spending on gifts and lunches are all part of the job. But the Auditor-General sees it differently.
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Councils used credit cards to misspend ratepayers’ money on booze, lunches, movie tickets, chocolates and gifts, the state’s public sector financial watchdog has found.
The expenditure ranged from $10,000 for “confidential study assistance” to $18 for a coffee meeting with a new staff member.
It was unveiled in an audit of Playford, Charles Sturt and Coorong District councils.
Auditor-General Andrew Richardson has made a raft of recommendations – including removing the provision of alcohol and having a senior employee assess credit-card transactions – in his audit, which was released on Tuesday.
Similar reviews of all of South Australia’s 68 councils are expected to follow.
In February 2018, The Advertiser revealed Mr Richardson had launched a wide-ranging inquiry over concerns about the misuse of credit cards in local government.
In the first three reports, tabled in State Parliament on Tuesday, Mr Richardson has cited dozens of examples where the councils “did not demonstrate proper use of public money”.
Mr Richardson pointed out spending on alcohol and gifts for staff members as prime examples of inappropriate use of ratepayers money.
Examples included:
A PHOTO booth for a Christmas party – $810
AN AQUARIUM and plants – $398
JEWELLER vouchers to staff and former managers – $550
MOVIE tickets and other rewards – $2000
LUNCH at the Grange Hotel for a 25-year club of employees – $750
DONATION to a motor neuron disease charity in lieu of bereavement flowers – $80
In one case, a Playford staff member had to pay back a $559 Adelaide day spa voucher after it was deemed not an appropriate use of ratepayers’ money.
Spending of $186 on foods and drinks for “recognition of contractors going the extra mile” also had to be paid back to Playford Council.
Mr Richardson questioned ratepayer value – and transparency – when the Coorong District Council spent $1478.50 on accommodation at an undisclosed hotel.
He made a raft of recommendations to the councils, with a strong focus on improving credit card and staff gift policies.
He suggested Charles Sturt should revise its council members’ allowance and support policy to remove the provision of alcohol.
Playford was told it should consider having a suitable senior officer assess the executive’s credit-card transactions against the expenditure principles and report any questionable transactions. In the report, each of the councils said they were reviewing credit-card policies and, in a number of cases, had made improvements since the audits were undertaken.
Mr Richardson said Charles Sturt indicated that there were still some areas where there was a fundamental difference of opinion between the council and himself, particularly related to acknowledging service and reward and recognition. He said Playford “communicated its dissatisfaction with the examination process”.
The Coorong council hired an external consultant to review credit-card transactions after Mr Richardson’s audit and found similar issues.
Meanwhile, Mr Richardson on Tuesday also released an annual update on the State Budget, which highlights SA’s increasing reliance on federal grants and GST to balance the local books. SA Treasurer Rob Lucas has warned a planned surplus this year is almost certain to be lost, and future deficits are also possible as he grapples with falling GST from coronavirus and bushfires.
Mr Richardson’s report shows a big increase in all revenue from 2018 to 2019, but a smaller spending rise, delivering a surplus last year.
Opposition treasury spokesman Stephen Mullighan said Mr Lucas should take charge of balancing the books.