Finance

Finance

Local Government in SA manages its finances conservatively under extreme constraints. It has access to one tax, Council Rates, has very low debt and receives an unfair share of State and Federal government funding.

In 2005 the LGA commissioned an Independent Inquiry into the Financial Sustainability of Local Government in SA. Background to the inquiry, its final report and processes for responding to its 62 recommendations can be found - here.

More information on the Financial Sustainability of Local Government in SA - https://www.lga.sa.gov.au/goto/fsp.

Information to assist Councils in this area can be found below.

Financial Management

There is a continuing evolvement and reform of financial management practices occuring, both directly and indirectly, in Local Government. Recent and current changes and issues include:

• increased scrutiny by the community;
• an expectation to do more with less;
• accrual accounting;
• National Competition Policy;
• performance measurement and benchmarking;
• infrastructure asset management;
• internal controls; and
• Governance.

A range of resources have been developed to assist Councils apply good practices in financial management which can be found at www.lga.sa.gov.au/goto/fsp.

What's New

2012 Better Practice Model - Financial Internal Controls

The LGA President has written to the Minister for State/Local Government Relations, seeking his approval to have the Better Practice Model - Financial Internal Controls prescribed as the standard by which auditors will asess the internal financial controls of Local Government.

2012 Better Practice Model - Financial Internal Controls (791 kb)

2012 Model Financial Statements for SA

The South Australian Local Government Financial Management Group (SALGFMG) worked with Coalface Software Solutions to develop the set of Model Financial Statements for South Australian Councils for 2012.

Model Financial Statements 2012 (1386 kb)

Local Government Reform

In February 2010 the LGA, working collaboratively with the Department of Planning and Local Government, received funding approval from the Australian Government's Local Government Reform Fund towards a comprehensive  "Improving SA Councils' Asset and Financial Management Practices" project. The LGA has underpinned this initiative with organisational changes to showcase an ongoing Local Government Reform agenda.

More information about the LGA's Local Government Reform Program and the "Improving SA Councils' Asset and Financial Management Practices" project can be obtained via the following link: www.lga.sa.gov.au/goto/reform.

Useful links

• Financial Sustainability Information Papers
• Model Financial Statements 2012 (1386 kb)
• 2012 Better Practice Model - Financial Internal Controls (791 kb)
• A Framework for Financial Management - LGA 2001 723 kb
• Full Cost Attribution - A Guide to Implementation - LGA 2001 397 kb
• Emergency Services Assets - Guide to Accounting for the Transfer to State - LGA 2000 174 kb
• GST Implementation Manual - LGA 2000 534 kb
• Financial Management Scoping Study July 2003 592 kb