East Fremantle Approaches Finalisation of Overdue Financial Report
The Town of East Fremantle is on the verge of finalising its financial report for the 2024-25 period, which has been delayed for more than three months past its original deadline. This development comes after the town submitted its financial statements to the Office of the Auditor General in October, only to be informed that accounts from East Fremantle Community Park operator Belgravia Leisure were also required for inclusion.
Audit Delays and External Factors
As a result of the missing audit files from Belgravia Leisure, the Office of the Auditor General was unable to issue its auditor’s report to the town by the statutory deadline of December 31. A spokesperson for the town confirmed that Belgravia Leisure’s auditors have now provided the necessary East Fremantle Community Park audit files to the Office of the Auditor General, and these are close to being finalised. Completion is anticipated this month, which will allow the town to wrap up its annual report and schedule a date for the annual electors’ meeting.
Initially, it was hoped that the annual report could be presented at the town’s council meeting on March 17. However, the council noted during that meeting that the delay was attributable to external factors despite the town’s proactive undertakings. Earlier this year, the Office of the Auditor General named the Town of East Fremantle as one of nine councils that missed the deadline, while acknowledging that the town had been impacted by a one-off event.
Reputational Risks and Administrative Challenges
In a statement, the town emphasised that, to the best of its knowledge, this marks the first instance it has failed to meet the deadline for its annual report. A progress report on the audit presented at the March meeting highlighted that the delay poses a significant reputational risk to the town, stemming from substantiated public embarrassment. The report further explained that local governments not meeting the December 31 statutory deadline are publicly named, leading to reputational damage and stigma.
Administratively, the delay complicates the progression of corporate planning frameworks, as the annual report and annual meeting of electors are pushed significantly into the next calendar year. To address these issues, the town spokesperson indicated that the town is now liaising with Belgravia Leisure on an audit timetable that aligns with statutory timeframes, aiming to prevent future delays.
Increased Audit Costs
In addition to the delays, the Town of East Fremantle is confronting higher audit expenses. The Office of the Auditor General had informed the town last March that its audit fee would be $69,875. However, a staff report at the council’s December 9 meeting cautioned that it would be no surprise if the final amount ended up being double that figure, reflecting the additional complexities and extended timeline of the audit process.
