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To assist, the department has prepared a template for use by local governments.

While the template is not in a prescribed form it is suggested that it is used by local governments to standardise the report format and support a uniform process.

Reporting requirements

In November 2017 the proclamation of the Local Government Amendment (Auditing) Act 2017 introduced a number of reforms to auditing laws.

These were outlined in Circular 16-2017 and the accompanying Guide to Local Government Auditing.

This included the introduction of a new category of audits called Performance Audits.

Legislation also now requires local governments to examine an audit report it receives and implement appropriate action in respect to the significant matters raised.

Local governments must prepare a report addressing the significant matters identified in the audit report.

The report should then be considered by the local government's audit committee before being adopted by council.

This report is to be provided to the Minister within three months of receiving the audit report and within 14 days after the local government gives the report to the Minister, the CEO must publish a copy of the report on the local government's official website.

This requirement applies to both a local government's financial audit as well as any Performance Audits undertaken by the Auditor General.

To date the Auditor General has undertaken a number of Performance Audits of selected local governments that include Records Management, Local Government Procurement, Timely Payment of Suppliers and Controls Over Corporate Credit Cards.

Section 7.12A(4)(a) of the Local Government Act 1995 (the Act) refers to the preparation of a report by a local government.

The report is to address any matters identified as significant by the auditor in the audit report, the report is to also state what action the local government has or intends to take in respect to each of those matters.

The department proposes to maintain the ongoing process of examining audit reports to ensure compliance and monitoring the actions that local governments take or intend to take in addressing any significant matters identified in the audit reports.

If you have any questions regarding this information, please contact the department on 61 8 6552 7300 or via email audits@dlgsc.wa.gov.au .