External audit, or financial audit, is an independent examination and opinion of a council’s financial statements, and whether the council is complying with accounting standards, laws and regulations.
The Local Government Act 1993 requires each council to have their annual financial reports externally audited by the NSW Auditor-General so that the community and councillors have access to an independent opinion on its’ validity. The NSW Audit Office conducts these audits on behalf of the NSW Auditor-General.
Since 2017, the NSW Auditor-General has also reported to the NSW Parliament each year on local government sector-wide matters arising from the examination of financial statements of councils and any other issues that the Auditor-General has identified. Links to the NSW Audit Office, and the Audit Office’s Reports on Local Government, are provided below.
Resources
- NSW Audit Office
- NSW Audit Office – Factsheet: NSW Local Government Sector – About Financial Audits – PDF
- NSW Audit Office – Report on Local Government 2018
- NSW Audit Office – Report on Local Government 2017