Seven Qld councils three months behind in completing 2023 financial statements

Queensland Auditor-General Brendan Worrall has revealed 17 councils are yet to implement mandatory cyber security training for staff recommended three years ago.

Queensland councils are failing to be transparent about their financial health amid new revelations executive staff at more than a third of local governments are unqualified.

A Queensland Audit Office report into the financial health of local governments has raised significant “deficiencies” in the quality of financial reporting, spurred by a lack of qualified staff.

Auditor-General Brendan Worrall noted, with the next local government elections due on March 16, that seven councils were still yet to complete their 2023 financial statements – three months after the October 31 deadline.

“This means their communities cannot evaluate the financial health of their councils and see where public money has been spent,” he said.

Queensland Auditor-General Brendan Worrall.

Of the 77 Queensland councils, 14 missed the October 31 financial reporting deadline, which Mr Worrall said was likely due to poor accounting practices and a lack of ability to attract and retain skilled staff.

The Audit Office found that, as at June 30, more than a third of councils did not have a professionally-qualified head of finance, which Mr Worrall said could result in “weaker internal controls and governance” and delays in preparing financial statements.

“Some councils spend significant amounts each year on consultants and contractors to fill this skills gap – although this helps complete their financial reporting each year, it generally does not build capability within their finance teams,” he said.

A total of 17 councils were yet to implement mandatory cyber security training for staff as recommended three years ago, says Auditor-General Brendan Worrall. Picture: iStock

Revenue to Queensland’s local government rose 9 per cent to $15bn in the 2022-23 financial year while expenses jumped 6 per cent to $13bn.

The audit office also found 48 of Queensland’s 77 councils were financially unsustainable, up from 46 last year and 45 in the 2021 report.

Local Government of Queensland chief executive officer Alison Smith said it proved the pressures facing councils.

“This audit office report comes just weeks after the LGAQ released a report into cost-shifting that found a staggering $360m gap every single year between what councils were being paid to provide and what they were having to spend to support critical community needs,” she said.

“It is no surprise that when councils are having to step in because the state and federal governments and the private sector have pulled the pin on services that so many are falling into the red.

“Queensland councils have reached a tipping point where they and their communities cannot continue to fund the services and infrastructure that are properly the responsibility of state and federal governments and the private sector.”

The qualifications of council engineers also created concern for the Auditor-General, with 27 councils failing to review the registration status of their engineering staff within the past 12 months, and 14 councils having a head of engineering without a current registration with the Board of Professional Engineers.

Queensland Auditor-General Brendan Worrall. Picture: NCA NewsWire/Jono Searle

The Crime and Corruption Commission in December 2022 noted “only a practising engineer can undertake professional engineering services without supervision”, and a breach “may be committing corrupt conduct”.

Mr Worrall also noted ongoing “widespread weaknesses” in the protection of information systems, and revealed 17 councils were yet to implement mandatory cyber security training for staff as recommended three years ago.

“They may be at a higher risk of cyber attacks than their peers that have provided cyber security training to their staff,” he said.

The Auditor-General also recommended councillors and mayors elected on March 16 should be educated about the “unique challenges of their council and its strategic objectives and operations”.