Dáil Éireann Debate, Wednesday - 5 February 2014
111. Deputy Niall Collins asked the Minister for the Environment, Community and Local Government the procedure for appointing members to the audit committees of local authorities; and if he will make a statement on the matter. [5734/14]
View answerSection 122 of the Local Government Act 2001 provides for audit committees in each city and county council. While section 5 of the Local Government (Business Improvement Districts) Act 2006 provided for the replacement of section 122 with a new provision, that new section was not commenced.
Detailed guidelines were prepared for local authorities dealing with various issues including membership, meetings, access, reporting and working procedures of audit committees. In particular, the guidelines advised local authorities that audit committees should generally have five members, including at least three external members, and not more than two serving or retired Councillors. Where total expenditure (current and capital) by a local authority in 2005 exceeded €250m, the guidelines provided that a local authority could consider having a seven member committee, including at least four external members, and not more than three serving or retired Councillors. The Committee should be established by resolution of the Council and the external members should be approved by the Council on the nomination of the Manager following consultation with the Cathaoirleach/Mayor.
The legislative position in relation to audit committees will change arising from the inclusion of section 59 of the Local Government Reform Act 2014 which, when commenced, will substitute a revised provision for section 122 of the 2001 Act. The new section will require audit committees to be established by each local authority within three months of the 2014 local elections and the committees’ role, functions and operation will be clearly set out in regulations following consultation with interested parties.
