NSW’s Auditor-General has called for the Office of Local Government (OLG) to introduce more transparent and meaningful performance reporting.

The Auditor General says in a new report that OLG’s framework focuses on outputs while remaining silent on aspects “fundamental to transparent reporting on service delivery”.  

The audit recommends the OLG develop a more transparent system that focuses on outcomes for residents and ratepayers, singling out a number of councils, including Tweed Shire, Shellharbour, Liverpool City, Dungog, Eurobodalla and Albury City, as ‘better practice’ examples.

The report says the current output-focused approach risks “unjustified and adverse interpretations of performance” – an issue that arises regularly in debates over the financial sustainability of individual councils.

Local Government New South Wales (LGNSW) welcomed the report, saying it reiterates points the sector has been making for years.

LGNSW President Linda Scott said councils want to promote the importance of data and reporting.

Cr Scott said that councils strongly support being able to better inform the community about their good work.

“The 2012 audit of the OLG found the public reporting system required of councils did not include adequate information to judge council performance, and although OLG commenced a review of the Framework in 2013 it was deferred, with revised guidelines due last year,” she said.

“This report from the Auditor General is a timely reminder to the Government that if they are genuine about council transparency and accountability to ratepayers they need to get cracking to work with the sector on new guidelines and a response to the IPART inquiry.”

Cr Scott said the state’s 128 councils provide a wide range of services under 67 Acts, administered by 27 different NSW Government agencies, so moves to consolidate and coordinate the reporting system were well overdue.

“LGNSW will continue to work closely with the Auditor General to improve approaches to comparative reporting, which currently don’t adequately acknowledge that councils need to tailor their service types, level and mix to the needs of their local communities,” she said.

“LGNSW urges the Government and the OLG to accept the Auditor General’s recommendations that they adopt a partnership approach to the development of a better reporting system, and that they consolidate the raft of reporting requirements.

“I also call upon the Government to remove the secrecy provisions so the Auditor General can share her draft findings, so the entire sector can work together to build a smart reporting system that is able to clearly demonstrate when councils are efficiently delivering the outcomes their communities want and need.”