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. A major Commonwealth Parliamentary Inquiry outlined Local Government's financial position well. For more information regarding the report - click here.

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 Independent Inquiry into the Financial Sustainability of Local Government in SA - https://www.lga.sa.gov.au/goto/fsinquiry.

• More information on the Commonwealth Parliamentary Inquiry report (Hawker Report) "Rates and Taxes: A Fair Share for Responsible Local Government" - https://www.lga.sa.gov.au/goto/fairshare.

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;
• accural accounting;
• National Competition Policy;
• performance measurement and benchmarking;
• infrastructure asset management;
• internal controls; and
• Governance.

A range of resources (to the right) have been developed to assist Councils apply good practices in financial management.

What's New

2011 Model Financial Statements for SA

The LGA's Financial Management Project Group and the South Australian Local Government Financial Management Group (SALGFMG) have been working with Coalface Software Solutions to develop a set of Model Financial Statements for South Australian Councils for 2011. The Model Financial Statements are now available.

A copy of the Model Financial Statements 2011 can be found here: 2011 Model Financial Statements

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

• Financing Local Government's Contribution to Community Development - Centre for Economic Studies 2002 400 kb
• A Framework for Financial Management - LGA 2001 723 kb
• Internal Financial Controls - Best Practice Manual 2002 4624 kb
• LG Financial Management Regulations 1999 - LGA Discussion Paper 2000 158 kb
• Fees & Charges Guide to GST, Div. 81 - LGA 2002 938 kb
• Investment Policy & Review of Investments 204 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
• GST Guidance from the ATO - Garbage Disposals Guidance Note - 2000 70 kb
• GST Guidance from the ATO - GST Treatment of Developer Contributions - 2000 99 kb
• Financial Management Scoping Study July 2003 592 kb
• 2011 Model Financial Statements