Local government financial controls and investment processes have not kept pace with technological advancements like AI, or with rising governance expectations, says an expert.
“Manual processes simply can’t keep pace with the complexity of today’s investment environment,” Andrew Murray – CEO of Curve Securities – said.
Murray suggests councils shift toward automated investment and compliance platforms. “Tighter budgets and stricter compliance demands are forcing local governments to rethink outdated investment practices, with manual processes increasingly exposing councils to compliance risks, lost returns, and costly administrative inefficiencies,” he said.
As Murray points out, state audit offices in NSW, Queensland, and Victoria have all publicly criticised their local councils for relying on outdated manual processes, which have contributed to poor investment reporting, policy breaches, and missed financial opportunities.
Murray also cites the 2024 Audit Office of NSW report as evidence that councils relying on outdated, manual practices are increasingly falling short, with more than a third (36 per cent) unable to effectively monitor financial performance and 40 per cent failing to meet key operating benchmarks.
With councils managing increasingly large amounts of excess funds, the risks of manual investment management are growing harder to ignore, said Murray.
“Some Sydney metropolitan councils are managing over $400 million in fixed-term investments. That requires a level of oversight and accuracy that spreadsheets can’t provide. The opportunity cost of missing better rates or failing compliance checks compounds over time, costing councils, and by extension their communities, real money.”
Automated solutions are becoming increasingly critical
Real-time rate data from dozens of banks, monthly reporting obligations, and evolving investment limits make it increasingly difficult for finance teams to keep up, especially without automated tools, Murray said.
Public sector organisations have a responsibility to implement investment practices that meet the highest standards of governance, particularly in an environment of tighter regulation, he added.
“There’s a clear expectation that councils invest surplus funds at the best available rate to ensure financial responsibility, transparency, and value for the community. Automated solutions are becoming increasingly critical for risk management and accountability in the public sector,” Murray said. “Modernising investment management isn’t just about efficiency – it’s about upholding the financial standards the public demands.”
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