General News
26 August, 2024
No offence or penalty for HRCC late budget adoption
HRCC suffered no penalty for late budget lodgement
Horsham Rural City Council has released the following statement regarding the decision by the Inspectorate's findings about council's late lodgement of the 2024-25 budget.
" The Local Government Inspectorate has concluded its investigation into the adoption of Horsham Rural City Council's budget.
"The investigation found that HRCC failed to adopt its annual budget by the statutory deadline of 30 June 2024, as required under Section 94(1) of the Local Government Act 2020.
"The budget was instead adopted at a council meeting held on 22 July 2024."
"The Inspectorate reviewed relevant documentation and held discussions with HRCC staff to understand the reasons behind the delay.
"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.
No offence or penalty
"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," the statement concluded.
Elected members supported the motion to accept the Inspectorate's findings at the August 28 council meeting. The motion was moved by Cr Claudia Haenel, seconded by Ian Ross and subsequently carried.
Public notified of delay in June
The public was informed early in June the budget would not meet the June 30 deadline, the matter was discussed at the July meeting.
At this meeting, HRCC CEO Sunil Bhalla explained that the lateness was due to the council's internal changeover to a new accounting program and the ensuing issues officers experienced.
When questioned about the timing of the council's request for an extension from the Minister for Local Government Melissa Horne, Mr Bhalla told the meeting a letter of request had been sent on June 19.
He also informed the meeting that the council had received a letter of acceptance of correspondence from the LGV, but no direct approval from the minister for an extended date had been received.
Upon questioning from elected members, Mayor Robyn Gulline said council may be reported to the Inspectorate for the late lodgement.
Mr Bhalla told the meeting he did not expect any repercussions to council for the late lodgement as he had been in contact with Local Government Victoria to explain the difficulties council had experienced with the new accounting software.