It is a matter for each local authority 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 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, is now in place in each county and city council. 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.
Optimising financial stewardship and value for money are cornerstones of the Government’s Action Programme for Effective Local Government. To this end, the Local Government (Reform) Bill, currently before the Oireachtas, provides for a more robust system of performance monitoring in the form of a National Oversight and Audit Commission for Local Government (NOAC). I expect that the Commission will provide, at a level not before seen, independent, high quality scrutiny of local government performance in fulfilling national, regional and local mandates. I anticipate the principal roles of the Commission to include oversight of the implementation of national policy by local government, monitoring and evaluation of the implementation of public service reform and delivery of the efficiency agenda, and supporting the development and enhancement of best practice in the performance of local government functions. The NOAC will also have a role in overseeing the spending of monies provided by the Exchequer at local level.
The NOAC will report to me, and to other relevant Ministers in respect of services within their areas of responsibility discharged by local government bodies, which include local authorities, regional assemblies, and any trust or other body where a local authority or regional assembly exercises actual or effective control. Reports will also be made available to the Oireachtas Joint Committee on the Environment, Culture and the Gaeltacht and, as appropriate, to other Joint Oireachtas Committees with oversight responsibilities for the relevant policy areas.
I expect the Local Property Tax to have multiple benefits, including a more sustainable and resilient system of funding for local authorities and therefore a sounder financial footing for the provision of essential local services; greater local scope for financial decision-making concerning service provision - in particular, the inclusion of the local variation mechanism from 2015 will further increase the autonomy of local authorities; and a strengthening of democracy at local level with a more active relationship between local authorities and local electorates. A stronger democratic relationship and clearer lines of accountability can only have a beneficial impact on service provision from the perspective of the service user.
