The Shire of Halls Creek in Western Australia's Kimberley region has been named by the State's Auditor-General as one of several councils failing to meet statutory financial reporting deadlines, with auditors warning the delays may signal deeper governance problems.

In its audit of Halls Creek, the Auditor-General said "significant effort" was required to validate opening balances from 2024, with the process expected to drag on months beyond required timeframes.

The Auditor-General's report warns that repeated delays in finalising financial statements can leave communities without timely access to information about how public money is being managed.

For remote councils such as Halls Creek, the report notes, those delays can have significant consequences for confidence in governance and the delivery of local services.