Written answers

Wednesday, 12 November 2014

Department of Environment, Community and Local Government

Local Authority Finances

Photo of Clare DalyClare Daly (Dublin North, United Left)
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167. To ask the Minister for Environment, Community and Local Government if it has been drawn 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; and that according to the most recent auditor's report released in November 2013, the council's total revenue-capital debt has grown to €94 million; if it has been drawn to his attention that according to the most recent annual financial statement dated 1 July 2014, the council incurred a further deficit of €1.9 million for the year ending 31 December 2013; if it has been further brought to his attention that despite the additional €1 million funding provided by his Department to the county council this year, that concern is now growing that the council will incur a further deficit in the current year; if it is the intention of his Department to provide the €15 million bailout sought by the chief executive of the council on 17 of February 2014 in order to address the council's accumulated and growing debt; and if he will make a statement on the matter. [43488/14]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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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 include adopting the annual budget and authorising borrowing, 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, should have been in place in each county and city council within three month of the local elections polling date. The functions of an audit committee 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.

The allocation of the €1m in additional funding for 2014 is fully conditional on a realistic and achievable financial plan, which charts a path to long term financial sustainability, being agreed between my Department and the Council. While it is a matter for individual local authorities, including Sligo County Council, to manage their own day-to-day finances in a prudent and sustainable manner, my Department is in regular consultation with the Council in relation to its financial position, including in relation to the agreement of a long term financial plan.

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