Written answers

Tuesday, 29 November 2011

Department of Environment, Community and Local Government

Local Authority Funding

9:00 pm

Photo of Joan CollinsJoan Collins (Dublin South Central, People Before Profit Alliance)
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Question 355: To ask the Minister for the Environment, Community and Local Government if his attention has been drawn to the fact that in the Local Government Auditor's report presented to the Council in 2010, the auditor pointed out that Sligo County Council borrowed €11.2 million to purchase lands at Lisnalurg, Sligo, and that the council subsequently sold some of the lands in question to a number of purchasers for the sum of approximately €9.6 million; if his further attention has been drawn to the fact that had the council repaid €9.6 million of the loan it would have had an outstanding balance of €1.6 million to repay in addition to whatever interest was owed; that the auditor discovered that when the council received the €9.6 million for the sale of the lands, only €5.2 million of that sum was used to reduce the loan; if he is aware that the accrued interest on the outstanding loan up to the end of 2008 amounted to €3.3 million; and that the elected members of Sligo County Council adopted the following motion in May 2010: that the Council be provided with a comprehensive report relating to the purchase of 83 acres of land at Lisnalurg, including the reason for purchasing the lands, the amount of moneys borrowed to purchase the lands, the subsequent reason for recommending the sale of 49 acres of the lands and the reason for failing to use the proceeds of the sale to reduce the loans and interest payable, and the details of the accrued interest paid on the outstanding loans to date; and to ask the Minister if he is aware that to date the county manager has not provided the council with the report it sought; the steps he will take to ascertain what happened to the remaining €4.4 million which the council received for the sale of the land; if he will indicate the total accrued interest on the said loan up to the end of 2010; if he will pay the full interest on the loan; and if he will make a statement on the matter. [37122/11]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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It is a matter for each local authority, including Sligo County Council, to manage its own day-to-day finances in a prudent and sustainable manner. It is also a matter for the manager, when requested, to furnish any relevant information in his possession to the elected council.

The Local Government Audit Service is responsible for external audits of local authorities and gives an audit opinion on the annual financial statement as prepared by an authority. The auditor, who is independent in the exercise of professional functions, may also issue a separate report on any matter or matters arising from the statutory audit. Issues highlighted in audit reports are brought to the attention of the manager, the elected members and also the audit committee. I also receive copies of audit reports on the annual financial statements of local authorities.

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