OPINION: Mayor provides clarity on city’s recent audit finding, says $14 million is not ‘missing’

Over the past week, there has been strong community interest in an audit finding regarding $14 million in restricted grant funding.

These are fair questions, and to be clear: no money has been lost.

Every dollar is accounted for and remains available for the projects it was intended to fund.

When a figure like $14m is discussed publicly, especially in relation to council finances, people naturally want clear answers.

They want to know what happened, whether public money is safe, what is being done to fix the issue, and whether the city is being open with them.

Those are fair questions. There has also been commentary suggesting that $14m has gone missing or that the city has somehow lost this money.

I want to provide clarity on that point. The $14m has not disappeared.

The issue identified through the audit process relates to how restricted grant funding was managed through the city’s cashflow and accounting processes.

It does not mean grant funding has been lost or hidden.

The city receives grant funding for specific projects and purposes.

That funding is restricted, which means it must remain available for the work for which it was provided.

Over previous years, unspent grant funding was held within the city’s main municipal account, rather than being separately quarantined in a dedicated restricted funds account.

Because those funds were sitting within the municipal account, they formed part of the city’s broader cash position and were used to support municipal activities and cashflow.

In simple terms, the issue is that restricted grant funding was not separated and managed clearly enough from the city’s day-to-day funds.

That process was not good enough, and the city accepts that it needed to be fixed.

A separate account has now been established for unspent grant funds so that restricted funding is clearly protected for its intended purpose.

Further work is also under way to review grant revenue and expenditure, strengthen cashflow reporting, and improve how restricted funds are monitored and managed.

This issue was first identified by the city last year and formed part of the audit process.

It has since been considered by the Audit, Risk and Improvement Committee, reported to council and discussed publicly, with the latest report focused on the controls and process changes now being implemented.

It is a significant issue with how restricted grant funding was managed within the city’s cashflow, and the city is now working through the actions required to correct that process and strengthen controls for the future.

Council meetings are an important forum for elected members to ask questions, raise concerns and debate matters on behalf of the community.

That is especially important when the issue relates to public finances.

They are also formal decision-making meetings, governed by standing orders and meeting procedures.

Those rules are in place to ensure debate is fair, orderly and respectful, and that council decisions are made through the proper process.

As mayor and presiding member, it is my responsibility to guide meetings in accordance with those procedures and ensure council can continue its business appropriately.

Strong debate has a place in the council chamber. So does respect for the process, the role of the chair, and the responsibility all elected members have to the community they represent.

I understand there is frustration in the community, and I also understand that explanations alone are not enough.

What matters now is the work being done to strengthen financial controls, improve transparency, and ensure restricted funding is managed clearly and appropriately into the future.

Glenn Wilson is the mayor of the City of Kalgoorlie-Boulder