Backslapping hides loss

AT THE October 18, 2023 South Gippsland Shire Council meeting, all Councillors voted that Council adopts the proposed 2023 Annual Report.

This was accompanied by glowing speeches from Councillors amidst much of the usual backslapping and self-congratulations which I find difficult to listen to.

One Councillor spoke in glowing terms about the reported $20.3 million dollar profit the Council managed to produce that financial year. Unfortunately, she did not mention that in reality Council did not produce a profit at all but a loss of millions of dollars because the adjustments to produce the real net Loss, referred to by professional accountants as the Underlying Net Loss, was omitted in the 2023 report.

Adjustments required include the Capital Grants Income in the amount of $14.831 million, the $3.175 million in Found Assets, Cash and Non-Cash Contributions Received of $2.466 million, and

Prepayments related to the 2024 Financial Year.

I question the reasons for these omissions and why Councillors have no idea these adjustments would show a Net Loss which may well run into many millions of dollars.

There is much more in this report that I find unacceptable and I hope to submit more Letters to the Editor in the coming weeks.

Gus Blaauw, Secretary South Gippsland Action Group, Venus Bay