Extension sought for Gosford Council audit

The Central Coast Council has applied to the NSW Office of Local Government for an extended deadline to audit the former Gosford Council's accounts for the period July 1, 2015 to May 12, 2016.

As part of the amalgamation process Council was directed by the NSW Government to put out a tender for one audit firm to look at the finances of both Gosford and Wyong Councils.

Price Waterhouse Coopers were awarded the tender and started work in June.

The NSW Government required both sets of books to be audited by December.

The former Wyong Council finances were presented to Council on Wednesday, November 23 highlighting a $26.7 million surplus for the 2015-16 financial year.

Council Administrator Mr Ian Reynold said that while the report highlighted a healthy surplus it needed to be kept in perspective in light of the cut-off date for the merger.

"The financial year for the former Wyong Council was cut off on May 12 so it effectively means 12 months of revenue were matched with 10 and a half months of expenses," Mr Reynolds said.

"That should not take away though from the great work Wyong Council did to get their finances in order to be able to deliver valuable services to residents," he said.

The former Council had reported a small surplus for the 2014-15 financial year.

Mr Reynolds said Price Waterhouse Coopers was familiar with Wyong Council's books because they had been the council's previous external accountant.

"They were not familiar with the structure at Gosford Council so they had to ask lots of questions and staff have been answering those questions," Mr Reynolds said.

He said Council was in the process of writing to the NSW Office of Local Government to request an extension on the deadline for the audit of the Gosford accounts and that he had already spoken to the Office of Local Government about the need for more time.

Mr Reynolds said Gosford Council was a "new world" for Price Waterhouse Coopers and the auditors needed "time to really understand the different systems".

Those differing systems and structures included information technology and ledger structures.

Mr Naven said he expected the audit to be complete by February or March.

He confirmed the accounts of both former councils were governed by the same Local Government Code of Accounting Practice and Financial Reporting.

It was too early for anyone to be making suggestions about the outcome of the Gosford Council audit, he said.

"The auditors are doing their assessment testing now and the same process will happen as has happened with the Wyong Council accounts."

Interviews, 23 Nov 2016

Ian Reynolds, Central Coast Council

Stephen Naven, Central Coast Council

Reporter: Jackie Pearson