The Town of East Fremantle is grappling with a significant financial and administrative setback, with warnings its audit costs could double and confirmation it has missed a crucial deadline for finalising its annual report.
Audit Fee Set to Skyrocket
Council officials have been told the cost of auditing the town's financial statements is now likely to be significantly more than originally quoted. In March, the Office of the Auditor-General (OAG) provided an indicative audit fee of $69,875 excluding GST. However, a staff report presented at the council's December 9 meeting warned this figure could end up doubling.
The primary driver of this cost blowout is the extra work required to audit the accounts for the East Fremantle Community Park (EFCP). The OAG directed the council in July to redo its 2024-25 financial statements to include the park's income and losses. This complexity is compounded by a pre-existing audit agreement the park operator, Belgravia Leisure, has with the firm HLB Mann Judd.
The December report stated it "would be no surprise" if the initial fee doubled. The town is already covering specific costs, including a $14,000 technical review by the OAG of its agreements with Belgravia Leisure and a $15,000 fee for HLB Mann Judd's audit of the EFCP accounts.
Annual Report Deadline Passes Unmet
Compounding the financial pressure, the council has also missed its deadline to finalise its 2024-25 annual report. A meeting was held on December 11 between town and OAG representatives in an effort to review the EFCP accounts and complete the report by year's end.
While a report days earlier was optimistic, Town CEO Jonathan Throssell confirmed to PerthNow on December 17 that the audit had not been cleared. The OAG has deferred signing off until next year. The town has notified the Department of Local Government, Industry Regulation and Safety of the delay.
"We will communicate with our community about the dates for the annual report to be received by council, and for the annual electors’ meeting, in due course," Mr Throssell said. He explained the delay was due to the OAG waiting for documentation related to the standalone audit of the community park, a requirement that is new for this financial year.
Council Defends Park Project Amid Governance Scrutiny
The integrated community and sporting precinct, home to the East Fremantle Football Club and other sporting groups, has been a major investment. The town has pledged $8 million to its redevelopment, with the State Government contributing $26 million and additional funds from Lotterywest and the AFL Facilities Fund.
At his final meeting before retiring, former mayor Jim O'Neill defended the council's decision to develop the park. "Obviously, like all large projects, especially for a small local government, it was going to be complex and there were issues, but they were all worked through with utmost professionalism, community input and transparency," he said in September.
The audit challenges have prompted broader reflections on governance. At the same December meeting, the council authorised an extra $21,307 to implement findings from a separate information systems audit. Councillor Andrew White noted the need to invest in governance was "going to only grow," a sentiment echoed by colleagues navigating the complex audit process.
