Ms Geraldine Tallon:

When they have reported to the relevant local authority, the report goes before the elected members and is normally dealt with by the audit committee of the local authority. The director of audit provides a copy of the audit report to the head of the local government division in the Department. As far as the Department is concerned, we review the findings of reports and if issues arise in regard to particular areas or schemes, we generally consult within the Department to assess and review the situation. The local government division holds annual meetings with local authorities and meets more frequently with authorities that are financially pressured in the current climate. We normally assess the outcomes identified in audit reports and, if necessary, we write to the manager with our views or invite the local authority in for a discussion. Our procedures have tightened considerably in recent years and have been reviewed in detail by the EU and IMF in the context of the indebtedness of the State generally. I will ask Mr. Des Dowling to comment on the specifics of how we operate from that point of view. The formal position is that the local government audit report goes to the elected members and the city or county manager is accountable to them for its findings.