At its November Ordinary Meeting Hilltops Council adopted its Annual Report with a presentation from auditors given during the meeting with Mayor Ingram expressing concerns over items the Audit Office NSW wants to work on in the future.

Every year Council must prepare its annual report which showcases its achievements it has reach implementing its Delivery Program including the Operational Plan, in this case for the 2024/2025 year.

The report includes program details, outlines and activities as well as the audited financial statements including the auditor's report and the conduct of the audit for the financial year.

The auditors stated in the report that 'the auditor has expressed an unmodified audit opinion on the Council's financial statements,' meaning no changes were needed to the Council's 2024/2025 Hilltops Council Financial Statements which will now be publicised and submitted to the Office of Local Government and the Minister for Local Government, as is the norm.

As part of their auditing process the auditors gave a presentation during the Ordinary Meeting by Audit Office NSW Financial Audit Director Reiky Jiang and Ernst and Young Partner Irene Tzavaras.

"We have completed our audits of your Council's general purpose financial statements and special purpose financial statements and I am pleased to report to you today that we issued clean audit opinions for both of those," Ms Tzavaras said.

"Which means that the financial statements contain no material mis-statements and they present fairly."

The presentation showed that though rates and annual charges increased by 4.9 per cent, operating grants and contributions to Council decreased by $2.2 million or 12.4 per cent for the 2024/2025 financial period while the capital grants and contributions decreased by 2.3 percent or $500,000.

The net operating result before capital grants and contributions decreased by 86.4 per cent.

Ms Tzavaras attributed the drop in grants recognised for natural disasters, infrastructure and community programs and receiving less financial assistance grants in advance this year compared to the year before.

"Council reported an operating result of $8.7 million for the current year, this was $6.2 million lower than the 2024 year," Ms Tzavaras said.

"Much of this decrease was due to the decrease in grants and contributions revenue as well as the increase in employee related expenses."

This all resulted in a deficit of $12.3 million compared to a $6.6 million in 2023/2024.

Following the presentation Mayor Ingram made a comment in regards to the Audit Office 'concerning itself' with longer term financial plans.

"I've been involved in local government for 13 years now and struggle to do financial plans for 12 months, let alone have 10 year financial plans out in front and be accountable for them," he said.

"I think that, in my terms, that is a complete waste of resources for any audit office to try and hold a Council or any one accountable to long term financial plans.

"It is just not practicable."

Mayor Ingram also expressed concerns in regards to AONSW's focus on climate risks.

"Help me, local government auditors are now being involved in climate risk," he said.

"It just boggles my mind a bit."

The third item Mayor Ingram wanted to touch on from the presentation was in relation to the future financial sustainability of local governments.

"I guess you talked to the state government in regards to that, because unless the state government changes some attitudes, our financial sustainability is only going one way," Mayor Ingram said.

Councillor Flanery echoed the Mayor's comments.

Mayor Ingram made a final comment before the draft documents were adopted.

"I would very much appreciate it if the auditors could be present in our chamber to hand the report to us," Mayor Ingram said.

"I think, again, a small sign of respect for Council and I'll leave that with the Audit Office to discuss between now and then.

"Thank you both for your reports."