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07 November 2025
Auditor’s Report Highlights Challenges Ahead
Council received the audited financial statements for FY 2024-2025 at its October 29 meeting.
Independent auditor, Mr Jacob Sauer, attended the Council meeting via video link to offer an overview of his team’s audit of the financial reports and to share his observations of significant audit findings.
The audit specifically looked at Council’s financial position in terms of its position to continue operating for the coming 12 months and is not a long-term view of a set of accounts. The auditor issued a qualified audit opinion as the accounts were not amended in accordance with Council’s resolution in August when considering the ARIC minutes.
The main concerns identified during the audit were the obligation for Council to remove waste from Norfolk Island, and the many uncertainties surrounding the financial liability this might represent. Recognising the difficulty in reasonably estimating an amount, Mr Sauer noted that these costs may be partially or even fully met by external parties.
The report noted that Council was still in the process of calculating the cost of the current obligation and so had relied on an estimate to freight the waste from the island, although not practical. He further noted the 27.5% reduction in grants and contributions revenue, resulting from the finalisation of grant funded projects, with the auditor noting that grant funding appears to be slowing in the local government space, generally.
In acknowledging the results of the work undertaken by Mr Sauer and his team, Lead Administrator, Mr Scott Mason noted the severity of Council’s financial situation.
“The dire state of our financial predicament is clear. When I consider we have available cash of $4.5M, and the magnitude of our asset backlog of $55M, it is my opinion that during this or next financial year, we will become insolvent!”
“We will do everything within our power to avoid this outcome and identify ways we can do the best we can, with fresh perspectives about possible solutions for NI problems. The executive team is on board to find ways to innovate to improve our current standing including looking to the community for local knowledge that may assist us in this goal,” Mr Mason said.
Financial Administrator Mr Gary Mottau said that NIRC’s financial performance is benchmarked against the Office of Local Government NSW, and it has not met the benchmark for two years.
“The uncertainties noted in the audit report clearly point to a need for Council to move away from the current method of constant reprioritisation of funds for operational spending for core services such as roads and assets, in a world where reduced grants fundings is greatly reduced.”
Mr Mottau suggested that a deliberate effort of engaging with community would be made to access local knowledge which may to assist in finding solutions. In moving the resolution, Mr. Mottau said the community would have continued opportunity to make submissions about the report for seven days after the meeting,
Draft Code of Meeting Practice 2025 Presented to Council
Under the Local Government Act, Norfolk Island Regional Council must revise and adopt a draft Code of Meeting Practice, using the Model Code of Meeting Practice for Local Councils in NSW as a guide.
Council officers presented a report to the 29 October Council meeting which included the draft code, and a plan for implementation within the required timeframe.
Financial Administrator, Mr Gary Mottau said the report provided by Officers was excellent, and he was pleased to see some innovation applied in order for Council to be able to meet the implementation deadline of 31 December 2025.
The model code suggests 42 days public exhibition, whereas NIRC generally applies a 28-day period of public exhibition. Our last meeting for the year will be held on 10 December 2025, 41 days after seeking submissions from the public.
The motion allowed for a delegation to the Acting GM to implement the new Code of Meeting Practice provided no further submissions were received after the 10 December Council meeting, and before submissions closed on the 11 December 2025.
Development Application approved
Administrators will recommend a development application for minor works to a property subject to a Heritage Overlay to the Minister’s delegate, subject to conditions proposed for the application, which is located in Kingston and Arthurs Vale Historic Area, and is listed in the Norfolk Island Heritage Register.
The proposed development involves works that are considered minor works, and as the subject land is within the Heritage Overlay, the proposed development is classified as permissible with consent and requires development approval. The planning assessment concluded that the proposed development complies with the relevant provisions of the Heritage Overlay.
No public comments were received as a result of public consultation and invitation on the DA and no issues that detract from the merits of the proposal have been raised by public authorities.
Amended Airport Fees and Charges Proposed
Proposed amendments to Airport Fees and Charges aim to better reflect the actual cost of service provision, and to fund appropriate resourcing levels at Norfolk Island airport, as required by legislative and safety regulations.
The cost of meeting the terms of airport regulations and safety considerations rises as the number of flights arriving rises. As airport activity increases, so the need for additional resources to monitor safety and other considerations also rises.
Currently fees and charges are contingent on the amount of aircraft activity at the Norfolk Island Airport. Should this activity increase, the need for additional resources also increases.
The amendment to fees and charges proposes to ensure coverage of costs via a demand-driven process, which will work well for future needs and will negate the need for operational costs to be borne by the airport’s maintenance budget.
Ordinary council meetings schedule for 2026
The schedule of meeting dates as detailed below have been confirmed for the 2026 Ordinary Meetings of Council:
Christmas 2025 Shutdown Period
Norfolk Island Regional Council will close its office over the Christmas holiday period from 4.00pm Wednesday 24 December 2025, reopening at 9.00am Friday 2 January 2026.
Essential and Emergency Services will be in place with contact numbers available on Council’s website and Facebook page from December.
ENDS