Opinion
Issue No. 37 - October/November 2007
Business lessons in council shakeout
During the past three years, local government in SA has been putting itself through the wringer in a thorough-going review.
Local government adviser Allen Bolaffi, who has been heavily involved, calls it “a brave move and one commended by all who work in the sector”.
But more importantly, Allen says SA’s councils are becoming better prepared for long-term viability than many SA businesses.
The Managing Partner of accounting firm UHY Haines Norton Adelaide, Allen has a particular interest in governance, audit and the public sector.
He chairs the Adelaide City Council Audit Committee and the Onkaparinga City Audit Committee and is a member of Adelaide Hills Council and Flinders University audit committees.
He has co-authored works on audit and governance for the Local Government Association and has assisted with the development of templates for setting up audit committees and model operational specifications for audits in local government. He also is an experienced company director, as a non-exectutive director of Arrowcrest Group, John Shearer Holdings Limited, Drake Foodmarkets Group, Macfield Leasing Corporation Group and The Australian Performance Laboratory.
“What does (the review process) mean for us ratepayers? Well, it actually means a great deal,” Allen says.
“The review has made the business of local government more resilient, more efficient and more sustainable.
“But what does sustainability mean, and why is it relevant to us?
“We are used to hearing about economic sustainability and how the environment needs to be considered in business decisions.
“Essentially, sustainability in the public sector was defined as a local government’s ability to withstand financial shocks arising from matters beyond its control, without the need to substantially increase their revenue from ratepayers.”
To achieve sustainability, Allen says, local governments needed to r...
