Financial policy and accounting

The department offers local governments:

• on-going support to build financial reporting and financial management information capability
• information on upcoming Annual Local Government Finance Forums or webinars on accounting and regulatory changes and advice on topical financial reporting and budgetary matters
• relevant, timely and reliable financial information via LG Alerts/circulars, to assist in their effective management of financial compliance
• on-going updates to proposed Model Financial Statements (MFS) and related guidelines
• information on Financial Better Practice Reviews.

Introduction to local government accounting

The Introduction to Local Government Accounting is a guide to assist new starters with accounting principles specific to Western Australian local government:

Budget and budget review 

Below is guidance to assist local governments in preparing budgets and notes in accordance with applicable authoritative requirements.

Financial reporting

Model Financial Statements

Accounting guidelines and circulars

The following technical accounting guidelines will assist local governments to ensure they are complying with AAS, the Local Government Act 1995 and associated regulations: 

• LG Alert: Local Government Regulations Amendment (Financial Management and Audit) Regulations 2022 
• LG Alert: Local Government Asset Revaluations
• LG Alert: Local Government Financial Better Practice Review Program
• Use of Corporate Credit Cards (Operational Guideline)

Audit 

Guidance to assist councils in understanding the role of audit and audit committees: 

• LG Alert: OAG Audit Report IT (Audit report identifies cyber security issues)
• LG Alert: OAG Guide to managing fraud and corruption risks
• LG Alert: OAG Financial Audit Results — Local Government 2020-21
• The appointment, function, and responsibilities of audit committees
• OAG Audit Committee Better Practice Guide.

Links to Local Government Act 1995, Regulations and Orders (legislation.wa.gov.au): 

• Local Government Act 1995
• Subsidiary legislation in force
• Local Government (COVID-19 Response) Order 2020
• Local Government (COVID-19 Response) Amendment Order 2022.

Links to other Legislation:

• WARR Act WALW — Waste Avoidance and Resource Recovery Act 2007
• Health (Miscellaneous Provisions) Act 1911 (sewerage run by local government)
• Treasury — The Financial Administration Bookcase.

Accounting guidelines and circulars

The following technical accounting guidelines will assist local governments to ensure they are complying with AAS, the Local Government Act 1995 and associated regulations: 

• LG Alert: Local Government Regulations Amendment (Financial Management and Audit) Regulations 2022 
• LG Alert: Local Government Asset Revaluations
• LG Alert: Local Government Financial Better Practice Review Program
• Use of Corporate Credit Cards (Operational Guideline)

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Budget and audit extensions

Under the Local Government Act 1995:

• a local government's budget for the financial year must be in place no later than 31 August of that year
• the draft financial statements for the previous financial year must be submitted for audit no later than 30 September in the next financial year.

If a local government finds itself unable to meet these statutory deadlines, it can request the Minister for an extension to these deadlines. However, an extension must be requested prior to the deadline expiring, as the Act does not permit for retrospective extensions.

Applications must be accompanied by sufficient evidence to indicate that the applicant has authority to submit the application on the local government's behalf. In practice, the application will require a simple majority resolution of council or a letter/email from the CEO.

If an application is submitted without proof of authorization, DLGSC will contact the applicable CEO to confirm that the application was submitted on their instructions.    

Copies of the application forms are provided below and should be submitted to legislation@dlgsc.wa.gov.au

Disclaimer

Although every care has been taken in the production of these documents, neither the Crown in the right of the State of Western Australia nor any servant or agent of the Crown accepts responsibility for any loss or damage suffered at any time by any person as a result of any error, omission or inaccuracy in the publication whether or not the error, omission or inaccuracy has resulted from negligence or any other cause.