THE Shire of Northam has been recognised by the Office of the Auditor General as one of its 2025 best practice entities for financial reporting and controls.

The recognition reflects the shire’s performance across several areas including timely preparation of financial reports, strong working papers and effective financial management controls.

A total of 138 local government entities were audited by the Auditor General last year, with the findings released in a recently published report.

“Of continuing concern is the quality of financial reports submitted for audit,” Auditor General Caroline Spencer said.

“The value of current year errors and the number of prior period errors increased largely as a result of issues linked to property and infrastructure assets.”

About 33 per cent of local governments provided five or more versions of their financial report to the audit team, with one unnamed council submitting 19 versions.

“As I’ve said before, this signals a need for greater care and capability in financial reporting,” Ms Spencer said.

“Multiple revisions create delays, cost time and resources and reflect gaps in quality assurance processes.”

In contrast, the Shire of Northam was highlighted among a select group of councils recognised for best practice outcomes.

A Shire of Northam spokesperson said the shire was pleased to receive the recognition, noting Northam was among the top 10 Band 1 and 2 entities recognised in the report and one of only four regional local governments to achieve the result.

The recognition places Northam among the stronger performers in the sector at a time when financial reporting standards continue to face scrutiny across Western Australia.

The Auditor General’s report noted that councils achieving best practice outcomes typically demonstrated robust financial controls, effective internal review systems and well-prepared supporting documentation before audit submission.