asked the Minister for Local Government and Public Health if special audits of county councils and other public bodies affected were made up to the date of taking over of control by county managers; also if special stocktakings in county homes and mental hospitals were undertaken; if not, if he will state if it is now proposed to ascertain correctly and assess liability for irregularities and illegal payments as between the superseded county councils and county managers; also if he will state whether members of the superseded county councils are still liable to surcharge, and whether county managers are now liable to surcharge in like manner as were the former county councillors.
Ceisteanna—Questions. Oral Answers. - Local Authorities—Special Audits.
On the coming into operation of the County Management Acts, 1940 and 1942, the Public Assistance Act, 1939, and certain portions of the Local Government Act, 1941, instructions were issued to county councils to close their accounts on the 25th August, 1942, the day before the County Management Acts and other Acts mentioned came into force. The Public Bodies Order, 1942, prescribed the form in which the accounts are to be kept thereafter. The accounts up to and including 25th August, 1942, were and are being audited separately from those of the succeeding periods. The closing of the accounts on 25th August, 1942, of course, involves the investigation of the stocks position on that date. There should, therefore, be no difficulty at audit in fixing responsibility for any illegal payments in that period. The transfer of executive functions of councils to county managers, such as the authorisation of payments, does not involve superseding county councils or affect in any way the real financial control which is vested in the councils. When the authorisation of payments out of county funds was made by elected members and illegal expenditure was incurred and subsequently surcharged, it was not unusual for the persons surcharged in their appeals for remission of the surcharges to declare that the payments were made in good faith and without knowledge on their part that they were contrary to law. It was, indeed, difficult for elected members to make detailed examination of the various payments made at finance meetings before signing the treasurer's advice notes and, for that reason, appeals for remission of surcharged payments were generally allowed.
As from the 26th August, 1942, however, county managers will be liable to be surcharged if they make illegal payments out of the funds of the council.