Armidale Regional Council has accepted the findings of the Audit Office of NSW, which has made five recommendations to improve the local government’s long-term financial planning processes.
In a statement, the Council said it was committed to strengthening its long‑term financial planning and monitoring.
“While the Long-Term Financial Plan meets mandatory legislative requirements, improvements are needed to ensure it is supported by stronger data, analysis and evidence,” the Council stated
” Ongoing system and data limitations stemming from the council merger have impacted financial forecasting, asset management data and reporting integration. The One Council (TechOne) system integration project is underway and will improve data quality, reporting accuracy and long‑term financial decision‑making. “
The audit assessed whether the Council was effectively developing, integrating, monitoring and reviewing its Long-Term Financial Plan (LTFP) so that strategic goals could be achieved in a financially sustainable way.
The audit considered the LTFP’s alignment with the Integrated Planning and Reporting (IP&R) framework, including links to the Delivery Program, Operational Plan, Asset Management Plans and Workforce Management Strategy.
The Council said it views the audit as a valuable opportunity to strengthen governance, improve financial planning practices and enhance the way long-term decisions are supported by reliable data and reporting.
Key audit findings:
- The audit found that Armidale Regional Council’s LTFP includes the essential elements required under the IP&R Guidelines, but that some aspects require further development and stronger integration.
- The main improvement areas identified were:
- More detailed sensitivity analysis and scenario modelling
- Stronger integration between the LTFP and other IP&R documents
- Improved asset data and whole-of-life costing for infrastructure assets
- Clearer linkage between financial risks, mitigations and the LTFP
- More timely and regular reporting to the elected Council on financial performance and progress.
- The audit also noted that historical system limitations, legacy merger impacts and gaps in asset management data have affected the quality and depth of previous long-term financial planning.
The Council says it was already aware of many of the gaps identified in the audit, particularly those relating to asset data, systems integration, whole-of-life costing and the need to strengthen links between planning documents.
“Council has already commenced work to address these issues, including through the One Council TechOne system integration project, improved asset register migration and stronger internal review processes involving the Executive Leadership Team,” it stated.
“Council accepts the five recommendations and is actively working to improve its LTFP, reporting processes and integration across the IP&R framework.”
The Council says it will strengthen the connection between enterprise risk management and the LTFP by regularly reviewing financial risks, assigning actions, timeframes and accountable officers, and incorporating key risks and mitigations into future LTFP updates.
It will also work to improve integration across the Delivery Program, Operational Plan, Asset Management Plans, Workforce Management Strategy and LTFP, including clearer identification of costs, funding sources, timing and whole-of-life impacts.
“Council will continue improving asset data quality through the TechOne asset register migration, with the aim of creating a single source of truth for asset information and improving the reliability of asset renewal, maintenance and depreciation forecasts.”
“Council will include more detailed sensitivity analysis and scenario planning in future LTFPs, including testing the financial impacts of key assumptions such as grants, rates, employee costs, capital projects, water security and asset renewal needs.
“Council will continue strengthening regular financial reporting to the elected Council, including through QBRS, investment reporting, LTFP reporting and improved enterprise budgeting tools.”
