MONEY TO BURN
ADMINISTRATORS PAY $100K FOR REPORT FROM CONSULTANT THAT THEY WERE MEANT TO WRITE THEMSELVES
GEELONG’S administrators spent more than $100,000 outsourcing work to gauge the value of their 18-month term.
Instead of delivering their own evaluation of the City of Greater Geelong as it headed into a new councillor-led era, the administrators used Ernst & Young to carry out a review.
The work — delivered over a month — cost the council $102,024, CEO Kelvin Spiller yesterday told the Geelong Advertiser.
It comes amid an increasing reliance on the consultants, who have been paid to carry out a series of reviews across the organisation.
Council’s annual report shows that more than $5 million was spent on consultants — a rise of 52 per cent — during 2016-17.
Casual staff and supplementary labour also soared during the same period.
Mr Spiller defended the use of the “nationally recognised and highly credible experts”, who were also engaged to review a range of other external consultants’ reviews.
“The administrators were of the view that it was important to get a comprehensive, holistic and independent assessment of progress ... and to thoroughly look at where attention is required.”
Mr Spiller said two of the three administrators — Kathy Alexander and Peter Dorling — briefed the new councillors last week.
They are also understood to have spoken with Local Government Minister Marlene Kairouz.
In the 24-page report, Ernst & Young said their findings would be used “for the purpose of the administrators assessing the progress of CoGG’s transformation projects”.
However the administrators have not provided their own public assessment, despite writing four previous quarterly reports for the Government.
Ratepayers Geelong president Andrew Senia said the external report confirmed many of his group’s fears about the council’s lack of financial responsibility.
“Ratepayers are sick and tired of their money being wasted,” he said.
While the administrators did not undertake any new borrowings in 2016-17, there is a rising debt crunch on the horizon.
The council’s loan balance is budgeted to top $105 million in 2018-19, before rising to $124 million in 2020-21.
The Ernst & Young report reveals that an external consultant has been appointed to lead a review of existing and future services.
However the review has been placed on hold, while an internal working group begins its own cost analysis of the council’s 126 services.
Ernst & Young said the return of councillors meant an ongoing review was required, “with some candidates flagging services as a key platform to their campaign”.
Mr Senia said his organisation had been receiving
complaints from residents about council’s inability to protect public assets, show fiscal responsibility and properly use its resources.
“If councillors are not prepared to exercise financial prudence, then they should step down.”
The report also indicated that:
THE 30-year Clever and Creative plan needed to have buy-in from councillors, with the need to have annual planning and reporting on outcomes;
LIMITED progress had been made on financial planning further than four years in advance; and,
THE $11.75m ICT upgrade recommendations would require significant investments in future budgets.