True

Overview

Role of the Auditor-General 

The role of the Auditor-General is to provide Parliament with independent assurance of public sector accountability and performance. This is achieved through reporting to Parliament on the results of its financial and performance audits.

About the Auditor-General Report

This report summarises the audit results of Queensland’s 77 local government entities (councils) and the entities they control. It also highlights the purpose and importance of accounting for depreciation expense.

Auditor-General recommendations

The Auditor-General made 5 new recommendations, which are outlined below:  

Recommendations 1 to 3 are for councils

1. That all councils implement policies and procedures that specify when ex-gratia payments (which an entity is not legally required to make under a contract or otherwise) are appropriate.
    The policies and procedures should outline:

• who is authorised to approve ex-gratia payments
• under what circumstances is it appropriate for such payments to be made
• documentation to support - the reason and nature of the payment - the amount, including supporting calculations
• when it is appropriate to enter into non-disclosure agreements in making such payments.

2. That councils assess climate risks and develop strategies to address them. They should consider updating their strategic plans, risk registers, and long-term budgets to reflect the financial and
    operating impacts of these risks.

3. That all councils review the asset consumption ratio for their water infrastructure assets. Where the ratio is below 60 per cent, councils should assess the need for repairs/renewals to their water
    infrastructure assets that will reinstate these assets to a level that provides the appropriate level of service to their community.

Recommendations 4 and 5 are for the Department of Local Government, Water and Volunteers

4. That the Department of Local Government, Water and Volunteers (department) develops guidance material for councils to determine when ex-gratia payments are made. The guidance should:

• include expectations for internal governance specify the required documentation, including supporting calculations, to support ex-gratia payments
• specify the financial reporting and disclosure requirements
• address the use of non-disclosure agreements and the circumstances when these would be appropriate.

5. That the department amends the sustainability guideline so that councils are required to calculate and report on the asset consumption of each asset class in their financial statements.

Referral to Committee 

Standing Order 194B provides that the Committee of the Legislative Assembly shall as soon as practicable after a report of the Auditor-General is tabled in the Assembly refer that report to the relevant portfolio committee for consideration.

The committee is responsible under section 94 of the Parliament of Queensland Act 2001 for assessing the integrity, economy, efficiency and effectiveness of government financial management by examining government financial documents and considering reports of the Auditor-General.

The Committee of the Legislative Assembly referred this Auditor-General report to the committee on 1 May 2025.

Public Briefing

A public briefing will be held with the Queensland Audit Office on Wednesday, 27 August 2025 at 9:30am - program