Annual Report


Each year, a council must prepare an annual report which reports on the activities of the council for the preceding financial year.

The annual report must be submitted to the Minister for Local Government within 3 months of the end of the financial year or at a later time if permitted by the Minister.

Within one month of providing the annual report to the Minister, the council must consider its annual report in an open council meeting. Prior public notice is given of this meeting as well as advice about where copies of the annual report can be obtained.

An annual report must include:

  • A report on the council’s operations during the financial year

  • Audited standard statements for the financial year

  • Audited financial statements for the financial year

  • A copy of the performance statement and a copy of the auditor’s report on the performance statement

Report of operations

The report of the council’s operations includes a broad range of information, and particularly:

A statement which reviews the performance of the council against the strategic indicators in the Council Plan, plus

Information on a range of other matters such as major works undertaken, the range of activities undertaken, major policy initiatives and major changes in the council’s functions or structures

Details about the council, including information about the councillors, the chief executive officer, senior officers and the organisational structure

Financial statements

A council’s financial statements document the actual financial results for the financial year and the previous financial year. These statements are compiled on an accruals basis in accordance with Australian accounting standards like other organisations, although there are some differences because councils are not-for-profit organisations.

The financial statements are certified by the Council’s Principal Accounting Officer and two councillors as well as being audited by the Auditor General.

Standard statements

The standard statements compare the financial results for the year with the budget for that year and provide an explanation of any significant variation between the two.

The standard statements are certified and audited in a similar manner to the financial statements.

There are four Standard Statements (and they are also included in the council’s strategic resource plan and budget:

  • Standard statement of financial performance (also known as the “standard income statement”)

  • Standard statement of financial position (also known as the “standard balance sheet”)

  • Standard cash flow statement

  • Standard statement of capital works

Performance statement

The performance statement must include:

  • The Key Strategic Activities and the related targets and measures from the budget

  • The actual results achieved in respect to those targets and measures during the financial year

The performance statement is audited by the Auditor General. If the statement shows that the council has substantially failed to achieve its targets and measures, the statement must be accompanied by a written explanation of the failure.

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