Ciarán Lynch (Cork South Central, Labour)
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Question 264: To ask the Minister for the Environment, Heritage and Local Government the progress made in regard to the commitment given in the programme for Government to modernise the financial and budgetary processes of local authorities in order that councillors and the public can readily grasp the options open to the local authority when it comes to spending and revenue raising priorities. [20325/08]

John Gormley (Dublin South East, Green Party)
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Substantial progress has been made to date on the modernisation of the financial and budgetary processes of local authorities. Following the roll out of full accrual based accounting, my Department is currently working in partnership with local authorities to develop and implement a new costing system which will deliver enhanced management information, particularly in relation to unit costs. The costing system will introduce a new service structure in local authority accounts to replace the existing programme structure. City and county authorities have prepared or adopted their 2008 budgets under the service structure format, and this will be applied by all local authorities from 2009.

Section 5 of the Local Government (Business Improvement Districts) Act 2006 provides a framework for the establishment by local authorities of audit committees with an appropriate structure and remit. The functions of an audit committee under these provisions are to review financial and budgetary reporting practices and procedures within a local authority, foster the development of best practice in the internal audit function, review auditors' reports and special reports and assess follow-up action by management, assess and promote efficiency and value for money, review risk management systems and make such recommendations to the authority as the committee considers appropriate in respect of such matters. It is a matter for each local authority to prioritise its spending, with the resources available to it, across the range of services it provides.