Review of councils’ financial sustainability
Report for Northern Territory Department of Housing, Local Government and Regional Services
In November 2011 the Department of Housing, Local Government and Regional Services engaged Deloitte to review the financial sustainability of the eleven shire councils in the Northern Territory. A steering committee of local government sector representatives and senior Northern Territory Government officers assisted this undertaking.
The review included an analysis of councils' financial planning and control mechanisms such as: financial plans, budgets and financial statements for the years 2008/09, 2009/10 and 2010/11. It also involved field visits to each shire council to obtain a deeper understanding of the financial performance by the council.
This report details the outcomes of the review including:
- A financial analysis of the councils’ financial information
- Identification of the critical issues including a risk assessment
- Commentary on council financial sustainability across core and non-core services and fee-for-service operations
- Commentary on the key issues affecting the councils.
It also recommends a framework of actions for the local government sector, the Northern Territory Government and other parties to effectively address these issues.