Written answers

Thursday, 11 December 2014

Department of Environment, Community and Local Government

Local Authority Finances

Photo of Clare DalyClare Daly (Dublin North, United Left)
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196. To ask the Minister for Environment, Community and Local Government if his attention has been drawn to the fact that Sligo County Council has been incurring revenue deficits in its budget over the past six years and that the cumulative revenue debt stands at €19.67 million while the council's long-term debt is in excess of €120 million; if his attention has been drawn to the fact that the assistant secretary of his Department in a letter to the chief executive of Sligo County Council dated 11 November 2014 highlighted the fact that legislation provides that a county council audit committee should have been in place within three months of polling date, by 23 August 2014 and that the audit committee should be made aware of the gravity of the council’s financial situation; if his attention has been drawn to the fact that a council audit committee was eventually established at the monthly meeting of Sligo County Council on 1 December 2014; if his Department will now consider providing additional funding to the council; and if he will make a statement on the matter. [47628/14]

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 now be in place in each local authority. I note that Sligo County Council have addressed this requirement in recent weeks. 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 continued deterioration of Sligo County Council’s financial position is of serious concern to me. Some €1 million in additional funding for 2014 has been made available for Sligo County Council. This 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 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, which would address the Council’s revenue deficit and long term debt issues; this process is ongoing.

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