Catherine Murphy (Kildare North, Social Democrats)
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446. To ask the Minister for Environment, Community and Local Government the extent of his Department's funding of a cancelled building proposal (details supplied) on a site at Dromahair in County Leitrim; if he will provide an itemised list of all instances where State funds were spent on this proposal and, respectively, the purpose for same; his views that the proposal and moneys spent on it to date represent value for money for the taxpayer; the amount spent by Leitrim County Council relating to the site and former proposals to date; if he will account for the findings of the internal audit unit of his Department, which found a lack of documentation relating to key decisions and serious audit trail deficiencies; and if he will make a statement on the matter. [35793/15]

Alan Kelly (Tipperary North, Labour)
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The total funding allocated by my Department under the Capital Assistance Scheme to Leitrim County Council in respect of the project concerned is €538,711. The Capital Assistance Scheme provides funding to local authorities for the advancement of sheltered housing projects that the authorities have agreed with approved housing bodies. The funding in this case relates to land costs of €456,000 and professional and legal fees of €82,711 incurred by the approved housing body. I understand that Leitrim County Council have incurred costs of €800 in relation to having the site valued; the exact breakdown of this expenditure is a matter for the local authority.

The project in question was originally proposed by Leitrim County Council in 2005 in respect of a proposed development at Dromahaire, County Leitrim by the approved housing body for a sheltered housing development of 30 units of accommodation for disabled persons, the elderly and elderly emigrants. In advancing the design of the proposed development, the approved housing body had acquired a site at Dromahaire and incurred other costs relating to the project.

Following a detailed assessment and appraisal of the project proposal, the local authority deemed that there was insufficient housing need at that time to justify its advancement and the commitment of public funding that would be required. In light of the costs already incurred by the approved housing body, the local authority submitted an application for these costs to be paid to the approved housing body which, in the circumstances, my Department agreed to fund.

The review of this project undertaken by my Department’s Internal Audit Unit highlighted certain weaknesses in the operation of the Capital Assistance Scheme, particularly in relation to record-keeping and clarity around procedures and processes. It identified the need to review the Department’s circulars to provide more clarity regarding the respective roles and responsibilities of local authorities, Approved Housing Bodies and the Department. A structure was put in place within my Department’s Housing Division following completion of the Internal Audit review to examine and implement its recommendations. As a result, a comprehensive review of and updating of the main Departmental circular relating to the Capital Assistance Scheme is being undertaken which, inter alia, has resulted in the full alignment of the project assessment and approval procedures under the Scheme with the Capital Works Management Framework for publicly funded construction projects.