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Innuendoes ran rife in Council last Monday as elected representatives pursued matters for prolonged periods prompting frivolous responses when at hand crucial matters more deserving of their time unfolded on their agenda.
Amongst these matters was the financial affairs of Walgett Shire Council.
As ratepayers are aware an extensive restructure is being undertaken within Council to ultimately streamline what may have been perceived as difficult areas.
Not the least of these is the financial reporting and interpretation Councillors are required to make to formulate well-informed decisions for the Shire as a whole.
At the Councillor’s request, auditors Spencer and Steer were requested to address the meeting on the 2000 and 2001 accounts.
Norm Mar Chut, on behalf of Spencer and Steer, reported a $1.89m surplus in 2000 opposed to $697,000 in 2001. A decrease in RTA work was the reason for the difference, he said.
Mr Mar Chut considered Council’s position to be satisfactory based on financial procedures.
For each $1 owed Council had $2.38 to cover it.
It was desirable to have working funds in the order of $1m, said Mr Mar Chut.
It was of concern to Councillor Mitchell that a budget adopted with a $100,000 deficit converted to a $1.078m deficit on paper.
“The budget figure you see is a funding budget explained Mr Mar Chut, “and it is necessary to convert funding to operating.
“Every General Manager presents two forms to Council and it is hard to reconcile back to the other system” said Councillor Mitchell.
“Suggestions have been made to Council both in funding and profit and loss but it is not up to the auditors to implement this, it is up to Council,” said Mr Mar Chut.
“We are not here to look at internal management procedures,” he added.
“Is there a way of explaining in the figures what has happened to the capital expenditure that is married in” questioned Councillor Friend.
“I say to all councils to reconcile their operating profit to their funding result,” responded Mr Mar Chut.
“We just don’t know if we’re on track” said a concerned Councillor Friend.
The question of internal auditors was raised by Councillor Mitchell.
Spencer and Steer provide a risk base audit with the onus for internal auditing on the General Manager, said Mr Mar Chut.
We are responsible for 28 Councils and only three have chosen to appoint internal auditors, he added.
Councillor Mitchell queried who had appointed the auditor, for what period and by whom they could be sacked.
“We have been appointed as auditors by Council until June 2007 and this can only be changed by the Minister, concluded Mr Mar Chut.
In Mr Mar Chut’s absence Councillor Mitchell raised the matter of two letters on file, one to the auditors from Council which discussed their continuation as auditors, and the second from the auditors, which Councillor Mitchell asserted had been withheld from the Councillors despite being received prior to the Carinda, September Open Forum Meeting.
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