Auditor-General again reports financial difficulties for Indigenous Councils: Fraser

26 June 2007

Auditor-General again reports financial difficulties for Indigenous Councils: Fraser

The Queensland Auditor-General’s latest annual report into the financial status of Aboriginal and Torres Strait Island Councils has highlighted the majority are facing difficult financial circumstances.

Local Government Minister Andrew Fraser said the report – tabled in the Parliament by the Auditor-General today – shows nearly two thirds of the state’s 32 Aboriginal and Torres Strait Island Councils were given an unacceptable financial rating.

“It’s clear from this latest report that these councils face an extremely uncertain future if their financial situations are not addressed,” Mr Fraser said.

“The Auditor-General states that there are currently 21 out of 32 Aboriginal and Torres Strait Island Councils that have not received an acceptable financial rating.

“The Local Government Reform Commission established by the Beattie Government in May is investigating boundary changes throughout Queensland and will include Aboriginal and Torres Strait Councils in the review.”

The Auditor-General’s report says there are a significant number of councils that have failed to show tangible improvement in governance, financial performance, timeliness and quality of financial reporting, debt management, the management of commercial activities and basic record keeping.

It says one of the common factors affecting the timely preparation of financial statements is an inability to fill financial positions with key staff.

Mr Fraser said the government had been active in supporting and intervening in Indigenous Councils and had already placed financial controllers with councils including Doomadgee, Mer island and Badu island.

“Most recently the government has also implemented a framework which is tough and leaves councils in no doubt as to what the interventions are involved if they have financial issues.”

The Local Government Reform Commission is due to deliver its recommendations on council boundary changes back to the State Government on August 1, at which time they will also be made public.

Media Contact Chris Taylor 3227 8825

Chris Ward 3227 8821