A recent review has criticised WA’s Department of Local Government for not treating poor money management seriously enough.

The report from the Public Accounts Committee says the Department of Local Government was not following up on sub-standard or delayed financial audits of councils.

It also said the authorities were not publishing information they did receive in an easily accountable way.

The report revealed “significant matters of non-compliance” with audits of 67 local governments in 2014, nearly half the state’s local government areas.

The findings were made possible by a WA Government decision to widen the auditor-general's remit to cover councils.

“The fact that ... 58 of 132 reports from the 2013-2014 financial year provided no readily discernible data or commentary on ratios, is a stark illustration of the problems that emerge in the absence of uniform reporting guidelines,” the report stated.

“It is imperative that a reporting regime is established, whereby audit findings are rated on a standardised scale.”

Committee chair MP Sean L'Estrange said local governments must make their audit results readily-available, but said the department has to “lift its game” in handling the process too.

“Once councils are audited, these results should be published in a place where the public can access them,” he told reporters.

“If all of this information was open and transparent and up there for public scrutiny, then you are probably going to get a better service and more efficient local government.”

Fellow committee member Mr Johnston said the failure to properly scrutinise councils was deeply concerning.

“The Department of Local Government has a lot of information about poorly performing local governments but has not been publishing that for the benefit of the public,” the Labor MP said.

“It is astounding that the department takes no action against these councils that are poorly performing.”

Local Government Minister Tony Simpson said he would look for improvement ahead of his formal response, which is expected shortly.

“We will see whether we can put in those recommendations to take it that step further and make it a simpler reporting mechanism, but also in a list with every other local government,” he said.

“If we start putting out those comparisons, some of the parameters will be a little different but it all comes down to a scorecard. That is probably somewhere the sector has to go.”