An independent audit from Crowe Horwath found there was a disconnect between management’s intentions for the project and the information provided to council.

The hub, which was built last year, ended up with a $351,000 shortfall and the Kaniva Community Hub committee was required to pay the difference, through a loan from the Kaniva-Leeor United Football Club.

Council then resolved in September to reduce the overall debt owing by the group to $200,000.

The audit report found that the projected cost of the project should have been reduced by $350,000 before a tender was awarded.

“A council paper recommended that certain aspects of the project would be deleted from the tender, resulting in a $350,000 reduction in the project cost,” the report stated.

“However, the deleted items were reinstated, without any formal consultation or approval of council.

“A review of project management documentation indicated that management intended the project would be completed in full and that ways of raising additional funding would be dealt with throughout the construction period.

“Further, documentation that was provided to council failed to highlight a funding gap.”

The report found that documentation also didn’t state that council would need to advance significant funding from the football club to enable completion of the project.

The report also found the additional costs were ‘unreasonably imposed’ on the club.

Overall, the audit found that council didn’t comply with its legal requirement and overall, management’s reporting to council about the project was minimal. 

The auditor made a number of recommendations, including that management should review its current processes. 

A statement West Wimmera Shire Council said since the completion of the audit review, improved processes involving procurement, risk assessment and project management had been implemented to reduce the likelihood of similar failings in future activities.

Mayor Jodie Pretlove declined to comment on the matter further.