The department has an important role in
building capacity and good governance in the local government sector,
and providing effective regulation through ensuring compliance with the Local Government Act 1995
and regulations. By adopting a risk-based approach, and accepting that
not all risks can be eliminated, the department is able to direct
resources toward the greatest threats to a local government's ability to function effectively in the interests of its community.
governments produce a wide range of information that is used by the department to categorise local governments according to their potential
risk. The department has prepared this Risk Profile for the last six
Where a local government is
reporting, or being reported, as non-compliant with legislative
requirements and/or producing financial results below prescribed
standards, the department makes the organisation aware of the fact and
provides advice on how to remedy the situation.
these circumstances, officers should be engaging with elected members,
preferably via the Council's Audit Committee, so the council can be
apprised of the situation and, as appropriate, develop strategies to:
- initiate action plan(s) for continuing improvement; and
what council considers might be sound financial health for itself where
that might be below sector standards or benchmarks.
understand that both the Western Australian Local Government
Association (WALGA) and Local Government Professionals Australia (WA)
(LG Professionals) have now been provided with details of the local
governments identified on the profile, together with information on the
assessment criteria used to determine their level of risk.
Additionally, I am advised that the department has formed a reference
group with WALGA and LG Professionals, to better coordinate the
provision of assistance to high risk local governments.
The department has advised that, in light of the sector's concerns, it will
be reviewing the way it communicates with the sector about the Risk
Profile, and will be more proactive in advising strategies for local
governments to improve their categorisation. I will continue to call
meetings annually with the Corruption and Crime Commission, Public
Sector Commission, the department and the sector to discuss more serious
and systemic risks and work on solutions.
encourage you to familiarise yourself with your local government's
compliance requirements, so that you can contribute to the good
governance of your organisation, to ensure there is transparent and
proper accountability for your community.
Hon David Templeman MLA
Minister for Local Government;
Heritage; Culture and the Arts