From the VAGO website:

Business Planning for Major Capital Works and Recurrent Services in Local Government

 

Under Section 136 of the Local Government Act 1989 (the Act), all councils are required to implement principles of sound financial management; including managing financial risks prudently having regard to economic circumstances; ensuring that decisions and actions have regard to financial effects on future generations; and to ensuring full, accurate and timely disclosure of financial information relating to the council.

The 2006 Inter-governmental Agreement Establishing Principles Guiding Inter-Governmental Relations on Local Government Matters further commits councils to demonstrating sound public governance through good fiscal management; to consider available resources and competing priorities when making service-delivery decisions; and to improve their strategic planning and development of appropriate pricing regimes.

It has been six years since the Act was amended to shift away from annual planning to longer-term four year Council Plans and Strategic Resource Plans. It is timely therefore to determine whether this has strengthened business planning and budgeting.

The audit will review the business planning and budgeting practices for selected capital works and recurrent services in a sample of metropolitan and non-metropolitan councils.

The report is expected to be tabled by end of September 2011.