Nine local councils in New South Wales are at risk of not meeting their financial obligations, according to the latest audit report. The Audit Office of New South Wales found that 16 councils have insufficient cash to meet three months of expenses, highlighting concerns about their financial sustainability. The report also noted that 35 councils met just one or none of the three key financial sustainability benchmarks, with Bathurst Regional and Shoalhaven City councils failing to meet any benchmarks for at least three years.
The audit results show that while 88% of councils lodged their audited financial statements on time, there are still significant challenges ahead. Rural councils, in particular, face the biggest financial challenge, with the lowest differential between revenue and expenses. The report recommends that councils improve their financial reporting, asset management, and risk management processes to address these concerns.
