Financial controllers for Torres Strait councils: Fraser

22 February 2007

Financial controllers for Torres Strait councils: Fraser

Mer Island Council has voluntarily agreed to pass control of its finances to a State Government-appointed financial controller.

Local Government and Planning Minister Andrew Fraser said a qualified audit report of the Torres Strait council’s finances for the 2004-05 financial year had raised serious concerns over accountability and asset control.

“The Department of Local Government and Planning provides advice and assistance to improve the governance and administration of island councils, based on the negotiation of a Performance Development Plan with each council,” Mr Fraser said.

“Mer Island Council has satisfied conditions under the Community Services (Torres Strait) Act 1984 for the appointment of a financial controller and the council has voluntarily accepted the appointment.

“The financial controller who has been selected for the role is a senior officer from the Department with significant experience working with Indigenous councils.

“The financial controller will work cooperatively and constructively with the Mer Island Council to address the serious financial accountability issues it currently faces.

“The appointment is for an initial period of six months, with provision for an extension.”

In addition to accepting the appointment, council must:

• Negotiate a new Performance Development Plan with the state
• Implement a Performance Planning and Review System for the Council Clerk and senior managers and
• Implement a set of governance performance targets

MerIsland, also known as MurrayIsland, is the eastern-most of the Torres StraitIslands and is home to about 500 people.

Meanwhile, Mr Fraser said the Badu Island Council – located 40km north of Thursday Island – was also experiencing a critical cash flow situation.

“An authorised inspection of Council records shows a Council that is very close to financial collapse.

“Compounding the situation is the Council’s poor documentation of its financial position.

“The Council has recently approached the department seeking assistance in turning around its financial fortunes.

“The likely outcome will be the appointment of a financial controller to help Badu Island Council address such issues as debts owed to the ATO and the need for a sound 2006-07 budget.

“Both these actions will assist in providing for sustainable local government in these communities.”

Media contact Chris Taylor 3227 8825 or 0419 710 874