The City of Vincent must correct a $3.2 million budget bungle.

The City of Vincent must correct a $3.2 million budget bungle.

The Department of Local Government wants the City of Vincent to explain a bureaucratic bungle which has seen a $3.2 million deficit in its recent budget.

In the city’s 2014-15 budget, staffers incorrectly reported a $3,199,799 deficit as surplus.

If not corrected the bungle could result in an estimated deficit of $6,339,558 by 30 June 2015.

The Department of Local Government has demanded the council submit a report to them by August 26 with the view of achieving a balanced budget by June 30, 2015.

New Vincent CEO Len Kosova presented a late item to council on Tuesday night to try and address the embarrassing error.

“The $6.4 million revised budget deficit must be addressed through cost savings in the city’s operating and capital budgets,” he wrote.

“This will impact the city’s 2014/15 capital works program and may impact some of the city services and initiatives.

“There is a risk that some core services and programs may be affected by these budget measures.”

 Mr Kosova said he was "surprised" and "disappointed" by the accounting error.

"Our primary concern is to our council, community and admistration who expect we are accurate with our data entry," he told WAtoday.

"We need to get more reliable and accurate in our accounting.

"From now on I would like to see more regular reporting to council on budget and expenditure matters."

Mr Kosova said it was too early to say whether director of finance Mike Rootsey, who was acting CEO when he drew up the budget, would be reprimanded or lose his job over the error. Mr Rootsey is currently overseas.

"I'm not going to jump to any conclusions until I have a conversation with him and have a better understanding of the circumstances," he said.

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