Written answers

Thursday, 8 May 2014

Department of Environment, Community and Local Government

Local Authority Finances

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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152. To ask the Minister for Environment, Community and Local Government if his Department has received a request dated 17 February 2014 from the new Sligo county manager seeking a bailout of €15 million for Sligo County Council, to be paid by instalments of €1.5 million per annum over a ten year period, to address the accumulated debts of the council; if it has been brought to his attention that the annual budgets drafted by senior council officials and presented to councillors for adoption have led to Sligo County Council having the highest overall deficit balance of all county and city councils as outlined in its annual financial statements; if it has been further brought to his attention that Sligo County Council had a deficit of €2,815,649 on its revenue account for the year ending 31 December 2008, a deficit of €3,232,961 for the year ending 31 December 2009, a deficit of €2,463,505 for the year ending 31 December 2010, a deficit of €2,973,000 for the year ending 31 December 2011 and a deficit of €2,455,000 for the year ending 31 December 2012; that according to the most recent auditors report released in November 2013, the council's total revenue/capital debt has grown to €94 million; if it is the intention of his Department to provide the additional €15 million bailout sought by the council; and if he will make a statement on the matter. [20803/14]

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 determine its own spending priorities in the context of the annual budgetary process having regard to both locally identified needs and available resources. The elected members of a local authority have direct responsibility in law for all reserved functions of the authority, which includes adopting the annual budget, and are democratically accountable for all expenditure by the local authority.

To enhance the financial management and audit control systems in local authorities, an audit committee, with both councillor and expert external membership, is now in place in each county and city council. The functions of an audit committee include reviewing financial and budgetary reporting practices and procedures within a local authority; reviewing auditors’ reports and special reports and assessing follow-up action by management; assessing and promoting efficiency and value for money, reviewing risk management systems and making such recommendations to the authority as the committee considers appropriate in respect of such matters.

My Department is in regular and on-going correspondence with Sligo County Council in relation to their financial position, including the letter to which the question refers. It is a matter for individual local authorities to manage their own day-to-day finances in a prudent and sustainable manner and funding allocations, through General Purpose Grants, are provided on an annual basis to local authorities, following a full assessment of requirements across the local government system.

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