Melbourne City Games Bank City Council embraces creative accounting to fund Commonwealth Games deficit

Melbourne City Council has been asked to fun an extra 6Muillion Dollars to help bail out the State Government for ever increasing costs associated with the holding of the Melbourne 2006 Commonwealth Games.

The Age March 4, 2006

A deal between the Melbourne City Council and the State Government reported in the Age indicates that the State Government would provide ongoing funding for Moomba in return for the City of Melbourne raiding the Council’s bank account an chipping in an extra 6 Million dollars. Although ten full details of the offer are unknown what is clear is that this proposal is creative accounting where the the State Government’s cost games are reduced making the squares on the book look more acceptable. (If that is a all possible).

The costs to the Council should be the same on paper 6 Million (less the loss of investment interest) with the State Government paying the Council back in yearly subsidies of Moomba – The State gets reduced games coast and the City of Melbourne books show a decreased costs for Moomba.

The City of Melbourne regally embarks on such creative accounting exercises and this is one reason why the City of Melbourne is prepared to go to such lengths to avoid accountability and disclose of its costs.

By agreeing to help bail out the State Government the City Council hope to win favour and support from Spring Street. If one turns a bling eye to the other. You scratch my back and I’ll scratch yours as both entities conspire to mislead the public.

The article published in the Age is well worth reading as the costs published are just the tip of the ice-berg with much more costs hidden away under different budget items or attributed to current costs.

Any serious analysis and review can only raise questions and doubts as to the overall benefits

All in the name of the games.