2019/2020 Budget Review
Under Regulation 33A of the Local Government (Financial Management) Regulations 1996 (FMR), between 1 January and 31 March in each financial year, a local government must carry out a review of its budget for that year.
The intention of the legislation is to ensure local governments conduct at least one budget review between six and nine months into a financial year.
A budget review compares year to date actual results with the adopted or amended budget. It
establishes whether a local government is meeting its budget commitments and if any variations are required. The review must:
- consider the local government’s financial performance for the period 1 July 2019 to the review date in that financial year;
- amend the budget opening position at 1 July 2019 by reference to the audited closing position at 30 June 2019, including any adjustment(s) required for the introduction of new accounting standards on 1 July 2019. Note: If the previous year’s audit report has not been signed, used the most recent draft financial statement figures;
- consider the local government’s financial position as at the date of the review; and
- review the forecasted outcomes for the end of the financial year.
Regulation 33A(2) and (3) of the FMR states that, within 30 days after a review is carried out, it is required to be submitted to the council. Therefore, if the review date was 31 December 2019, it must be submitted to Council by 30 January 2020. Council
considers the review and determines (absolute majority required) whether to accept the review and any recommendations made in the review.
In accordance with regulation 33A(4) of the FMR, a copy of the Council endorsed review must be provided
to the Department of Local Government, Sport and Cultural Industries within 30 days of its endorsement by council.
If prior budget reviews have been undertaken, the Reg 33A review must still cover the period from 1 July and also cover any
adjustments made as a result of prior reviews.