The WA Department of Housing’s funding for remote Aboriginal communities suffers from poor oversight and a lack of coordination, an audit has found.

The report from WA’s auditor-general comes as the state prepares to reveal its plans for the future of over 270 remote communities.

The threat of closure for dozens of these communities has prompted protests and vocal social media campaigns nationwide.

The report backed the claim that at least 24 of the 84 Aboriginal communities surveyed were not eligible to receive services provided by the program - such as power, water and wastewater - because they have less than 50 people.

But the auditors found that the department had not applied its eligibility criteria since 2008, and so did not know if the right communities were in the program.

They also reported on the actual provision of the services, finding that while water and power supplies were generally reliable, tests detected E. coli or Naegleria microbes in at least one community in every month of the two years to June 2014.

In that same time, four communities showed excessive levels of uranium in their water, up to double the allowable level under Australian guidelines.

But again the department was largely unaware, as it did not have an up-to-date view of the condition of the program's $765 million worth of assets.

“Poor contracting means Housing is not getting full value from the program manager and its $1 million a year fee,” the report said.

“Poor oversight means there is a risk that Housing may have overpaid for services.

“The remoteness of communities directly affects the cost of supporting them, but better coordination of maintenance and repair for program assets and public housing could reduce these costs.”

Opposition Indigenous affairs spokesman Ben Wyatt said the report was a damning indictment of the Barnett Government’s role in providing services to remote communities.

He said that while Premier Colin Barnett had commented that between 100 and 150 remote communities could close, the Government's own house was not in order.

Mr Wyatt called for senior Department of Housing bureaucrats who failed to do their job to be sacked.

“What I hope this does is highlight to the Premier, highlight to the State Cabinet that, you know what, the Government itself is pretty bad at providing services to Aboriginal people,” he told the ABC.

“So you don't just turn on those Aboriginal people, declare they have failed, declare they're riddled with sexually transmitted disease and must be closed.”