[Andrew Butcher]

Latest correspondence from LGNSW:

Dear Andrew,
As you will all be aware, the Auditor General has followed up her 2021 Local Government Report released last month with a letter to General Managers ‘recommending’ councils “undertake a stocktake of the rural firefighting equipment vested to councils and record the value in the council’s financial statement” – see an example sent to Cabonne Council. We suspect the Auditor General has established this requirement to create a trigger to issue qualified audit opinions to non-conforming councils in 2022.

Notwithstanding the Auditor General’s ‘recommendation’, we note correspondence addressed to the Auditor General from the Secretary of the Department of Planning and Environment dated 7 June 2022 stating: “the State’s position is that it does not control RFS assets. Councils need to assess whether they control any rural firefighting equipment in accordance with Australian Accounting Standards”. The correspondence also makes clear that “The Minister for Local Government (does) not have legal authority to direct councils in this matter”.

You would have received our 24 June Member Message advising you LGNSW immediately wrote to the Auditor General, Treasurer, Minister for Local Government and Minister for Emergency Services expressing the sector’s strong objection to the determination that RFS assets are the property of councils for accounting purposes. We called on the Government to acknowledge rural firefighting equipment is vested in, under the control of, and the property of the RFS, thereby clearing up this mess once and for all. See a copy of our letter to Government here.

Since then, we have been heartened by feedback from a number of councils who have already written to the Auditor General, advising they have determined they do not control any rural firefighting equipment in accordance with Australian Accounting Standards and will not be undertaking a stocktake. If your council has yet to form an opinion on the issue of RFS asset control, we urge you to do so as early as possible and to communicate that to the Auditor General.

We particularly encourage councils on the metropolitan fringe who may not have examined the matter for a number of years to consider whether they are in a position to discontinue recording RFS assets on financial statements. We are aware that the vast majority of rural and regional councils, who are disproportionately affected by the Auditor General’s and Government’s position, would be grateful for this support and solidarity.

We also encourage all councils, including metropolitan councils not directly affected to move Mayoral Minutes in support of their fellow councils who are impacted. To assist, LGNSW has prepared a template Mayoral Minute and accompanying report. This template resolves to write to several members of the Government, Opposition and cross benchers, with contact details located here.

We believe the more Members of Parliament who are made aware of this shameless cost-shift onto local government, the greater the likelihood of affirmative action – and it is our hope that the Auditor General and the Government receive 128 letters (one for each of NSW’s general purpose councils) notifying them that the relevant council has formed the opinion they do not control any firefighting equipment and will not be undertaking a stocktake of RFS assets.

In closing, I would like to acknowledge the considerable efforts and support of Local Government Professionals CEO Vicki Mayo, Secretary/Public Officer of Country Mayors Kent Boyd (his ‘other hat’), Leeton Council General Manager Jackie Kruger and Revenue Professionals NSW Chair Andrew Butcher. Each of these organisations continues to work closely with LGNSW in seeking Government recognition – once and for all – that rural firefighting equipment is vested in, under the control of and the property of the RFS.

Thank you in anticipation for your support. If you have any questions or concerns, please don’t hesitate to call/email.
Kind regards,
Scott Phillips
Chief Executive