Former Shire chief defends accounting practices

Former Shire of Denmark chief executive Cliff Frewing has been forced to defend the Shire’s use of its reserve funds account after concerns were raised in the community.

There has been criticism about the reserve funds account being drawn down significantly last financial year, but Mr Frewing said he had no problems with the Shire’s budget.

“It is appropriate that I respond to comments made publicly about the Shire reserve fund accounting practices as I was the CEO when the budget was adopted,” he said.

“I have no concerns with the accounting practices employed by the Shire — the opposite is the case as I believe the systems and procedures in place are as good as any I have seen.”

Mr Frewing admitted the plant reserve had been reduced.

“Yes, for this budget year, there is a reduction in the balance of the plant reserve at the end of the financial year compared with the beginning of the year,” he said. “There is nothing unusual about that — it happens regularly.

“Interestingly and coincidently, our neighbouring local governments budgets — that is Albany, Manjimup and Plantagenet — all reveal plant reserve reductions this financial year.”

Mr Frewing indicated no funds held in reserves had been used for any form of payout.

In his farewell to the Shire, Mr Frewing highlighted a need for an improvement in the attitudes of the local community.

“I would like to say that I have not understood the amount of negativity that exists in this town,” he said.

“If this negative energy could be turned into positive energy, the town would take off and be a much better place.”