A number of mostly minor changes have been made to the Local Government Financial Management Regulations 2011.
The most significant change, on which the sector has been consulted, is an increase in the amount of civil liability insurance that each Council must hold - from a minimum of $50 million to a new minimum of $300 million. Councils that are members of the Local Government Mutual Liability Scheme (currently all Councils) need take no action, as the higher coverage is now provided by the LGMLS.
The other changes are:
- The existing "asset sustainability ratio" (used in each Council's long-term financial plan, annual budget, review of budgets, and annual financial reports) is to be re-named, from the 2018-19 financial year, as the "asset renewal funding ratio"
- Removing a need for Council's audited financial statements to be supplied annually to the Minister, although a copy must still be provided to the Presiding Member of the SA Local Government Grants Commission; and
- Clarifying the process under which a regional subsidiary may apply to the Minister for an exemption from the requirement to establish an audit committee.
These changes were published in the Government Gazette on 28 November 2017 at page 4759.
Re-naming of the "asset renewal funding ratio" takes effect from and including the 2018-19 financial year, so does not affect documents prepared for the 2017-18 year.
The other changes take effect immediately.