Kiama Council has placed its Annual Financial Statements 2021-22 on public exhibition, for our community to examine and make submissions.
CEO Jane Stroud said the 2021-22 statements represented a significant step forward for Council’s financial reforms, and the goal of achieving an unmodified audit opinion.
“It is important to remember the 2020-21 financial statements, which were only finalised in April 2023, received a pervasive and qualified audit opinion across the board,” Ms Stroud said.
“So to be able to release the 2021-22 statements containing just three qualifications: the opening balances from 2020-21, fixed assets valuations cycle (which is not complete) and a component of restricted and unrestricted cash reserves is a remarkable considering the historically difficult and turmultous year that 2021 was.”
Ms Stroud said the improved audit opinion was pleasing given the investment of time and effort by Council management, staff and advisers in the last two years.
“What gives me confidence, and should give others, is that the audit opinion clearly states confidence that the decisions and direction of Council’s current strategy satisfy Going Concern requirements that were a major issue twelve months ago.”
“We know we still have a long road ahead to lift the audit qualifaction and improve financial sustainability, but we are already two years along that journey since 2021, and many proactive and difficult decisions have been made by Councillors.
Ms Stroud said Council was already addressing the areas of concern in the audit of the 21-22 statements, including a revaluation of the fixed asset register. “This is a considerable, long term project, involving more than $550 million worth of community land, roads, and footpaths.
“In recent months we’ve worked through about $200 million worth of assets, however it may take up to three years to finish the job alone, and have the qualifactions removed from the financial statements.”
“What’s particularly pleasing, and a huge credit to everyone involved, is the positive comments of the NSW Audit Office, when the statements were presented to councillors at their meeting on 19 September.”
“They provide context to correct some of the assertions abounding in the news cycle today.”
