A new survey has revealed serious problems with local government budgets.

The Insitute of Chartered Accountants report reveals many Victorian councils are surviving on overdrafts and aren't complying with relevant accounting standards.

The Instiute's Geoff Harry, says while some councils are getting it right, many are operating with big cash deficits and haven't informed the government as required.

"It's close to the wind," he said.

"Uou don't need a lot to go wrong ,and reliance on the overdraught is probably something that gets them by, so it's tight stuff."

"I probably wouldn't want to be running my finances that way," Mr Harry said.

http://www.abc.net.au/news/state/vic/archive/metvic-24may2001-24.htm

-- Anonymous, May 24, 2001