General News
2 September, 2024
Budget investigation ends with a whimper
Horsham Rural City Council will not be penalised for failing to submit its budget on time.
Council's failure to adopt its annual budget by the statutory deadline of June 30 - as required under the Local Government Act - was understood to be unprecedented.
The budget failure led to an investigation by the Local Government Inspectorate following intervention from Local Government Victoria executive director Mike Gooey.
Mr Gooey, responding to a request from CEO Sunil Bhalla to extend the deadline, warned him of the consequences and urged council to seek "urgent legal advice".
The budget was finally adopted at a council meeting on July 22.
Eight days later, in an astonishing attack from within the council chamber cohort, three councillors - Claudia Haenel, Ian Ross and David Bowe - released a joint statement saying appropriate governance was not followed, that council was not sufficiently briefed, and that relevant documentation was not provided to councillors in a timely manner.
They argued "failure by our leaders" had put council staff under "immense pressure and caused significant reputational damage to council".
Council issued a formal statement on Tuesday morning saying the Local Government Inspectorate had concluded its investigation.
"The Inspectorate reviewed relevant documentation and held discussions with HRCC staff to understand the reasons behind the delay," the statement said.
"It was acknowledged that HRCC had applied for an extension from the Minister for Local Government in mid-June 2024, but due to timing, the request could not be considered.
"While there is no offence or penalty provision for breaching Section 94(1) of the Act, the Inspectorate emphasised the importance of timely budget adoption as a cornerstone for council operations.
"HRCC will continue to work with the Inspectorate as it monitors compliance with future budgetary and governance requirements."
Mr Bhalla said at the July 22 meeting that he saw no problem with the budget delay.
"There are no consequences," he told councillors.
On that occasion, he was correct.