Local governments are providers of a wide range of services to the community. Their size varies based on the community they serve as well as the functions the councils perform. Councils conduct such services as maintaining roads, water and sewerage infrastructure and the management of community services as varied as convention centres and private hospital facilities.

This report deals specifically with the results of the audits of local governments including Aboriginal Shire and Torres Strait Island councils for the 2006-07 financial year which were completed and certified by audit at the date of this report.

The Local Government (Community Government Areas) Act 2004 brought Aboriginal councils under the Local Government Act 1993. These councils are no longer differentiated from shire councils under the Local Government Act. Because of their transition to accrual accounting and reporting in line with local governments and the changes resulting from the local government reform process, the audit results of both the Aboriginal Shire and Torres Strait Island councils with the results from other local governments have been included in this report.