Independent audit likely to give Council a clean bill of financial health

An independent auditor’s report into Derwent Valley Council’s financial and community dealings over the past 22 months is expected to give Council a clean bill of financial health.

The report which was completed by local government auditor Paul West at the suggestion of the state government’s Office of Local Government (OLG) in September 2024, is now likely to be before Council in late March.

OLG’s concerns arose from Council’s Audit Panel’s work over the past year, and to the “reasonableness of recent operational processes” relating to “contracts, leasing, major event grants or licensing” between Council and several community groups.

While the detail of the West report is being kept under wraps, first indications are that the audit has given Council a clean bill of financial health, with no evidence of misdealings or missing funds.

West requested, and gained, a two-week extension to his initial timetable, which was to complete his review by December 31, 2024. 

The examination was completed in mid-January, and as is normal practice, is now with Council staff for analysis.

At this week’s Council meeting, its first for 2025, Cr Bingley raised questions about the West report, describing it as a “closed door review” with councillors lacking input to the 15-week process.

In response, Mayor Dracoulis told the meeting that West’s work was “a thorough review.” More, she stressed, it was completed remotely and independent of Council. 

It was not her role, she added, to require the auditor, Mr West, to talk with councillors, but had made it clear to him that councillors were available to contribute as the review required.   

More, she told this week’s Council meeting, the West report would be “coming here soon” for Councillors themselves to review. 

The Gazette understands the likely timeframe will see Council being provided initial copies in the next weeks and a determination made at a closed session at its March meeting of what information will be made public.

Council indicated early in the process that it considered its financial dealings to be above board, and able to bear close scrutiny by an independent auditor.

It acted quickly in response to the four-page review request from the acting director of local government, Mike Mogridge, received on September 19, and had added a “targeted independent review of council governance” to its agenda within a week.