Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 475: To ask the Minister for the Environment, Heritage and Local Government the criteria governing spending by a local authority of moneys accruing when, for example, a local authority sells a parcel of land; the categories of projects or items on which such moneys can be spent; and if he will make a statement on the matter. [38658/05]

Dick Roche (Wicklow, Fianna Fail)
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Current accounting policies, as set out in my Department's code of accounting practice, require that all assets above specified threshold values are included in a local authority balance sheet. Accordingly, the proceeds from the disposal of assets such as land would normally be included as a reserve in the balance sheet; this reserve is then available to be applied for the replacement of the disposed asset, the purchase of other assets or for other appropriate purposes approved by the local authority.

Before the start of each year, the manager of a local authority is required to submit a report to the council indicating the capital projects proposed for the forthcoming year and following two years. Current expenditure by a local authority is determined in the context of its annual budgetary process.