Council forced into finance overhaul after $20m budget error

Sunshine Coast Council will overhaul its financial management systems after an independent review exposed “systemic shortcomings” that contributed to a $20 million accounting error.

The error, linked to depreciation calculations made over five years, created a $20m shortfall in the 2025/26 budget and forced its delay earlier this year. Councillors were told at last week’s ordinary meeting that urgent reforms were now underway to restore confidence in the organisation’s financial oversight.

The review, presented to the Audit Committee, warned of “continuing systemic shortcomings in the process for finalising the annual financial statements” that had been “highlighted and evident over recent years.”

Councillors Jenny Broderick and Ted Hungerford attended the meeting, where the committee stressed that some of the required changes would take time. “There is a need for candid reporting on progress in meeting those objectives and any risks to their achievement,” the report stated.

The council has agreed to adopt all recommendations and will prepare a comprehensive action plan and roadmap to guide improvements. Recruitment is also underway for a newly defined finance manager role to support the chief finance officer with expanded responsibilities.