A performance audit of the Department of Planning and Environment’s Office of Local Government (OLG) has found the Office did not conduct effective, proactive monitoring to enable timely risk-based responses to council performance and compliance issues.
In her report Regulation and monitoring of local government, Auditor-General Margaret Crawford said she assessed whether the OLG was effectively monitoring and regulating the local government sector under the Local Government Act 1993 (the LG Act).
“The OLG in the Department of Planning and Environment does not conduct effective, proactive monitoring to enable timely risk-based responses to council performance and compliance issues,” Ms Crawford said.
“Council performance and compliance varies and a range of issues continue across the local government sector – some significant – that can impact on councils’ operations and sustainability,” she said.
“The Department recognises that an effective and efficient sector is ‘crucial to the economic and social wellbeing of communities across the State,’ but the OLG does not routinely review the results of its regulatory activities to improve its approaches.”
Ms Crawford said the OLG had not clearly defined and communicated its regulatory role to ensure that its priorities were well understood.
She said inadequate performance measurement and reporting on its regulatory activities was a significant transparency and accountability issue, and the OLG couldn’t demonstrate that it was effectively regulating the local government sector.
Ms Crawford made eight recommendations to the OLG, with three to be implemented by December, to publish a council risk assessment tool, ensure its sector engagement strategy clearly articulates its regulatory approach, and enhance processes for regularly tracking and internally reporting on operational activities.
The remaining five to be implemented by July 2024 including: Publication of a report on the OLG’s regulatory activities and performance; Establish a program of yearly reporting on its regulatory performance; An annual calendar of key sector support and monitoring activities; Develop and maintain a data management framework; and Review and update frameworks and procedures for regulatory responses.
The Auditor-General’s 33-page report can be accessed at this PS News link.
