Local Authority Finances

Dáil Éireann Debate, Tuesday - 10 March 2015

Tuesday, 10 March 2015

Ceisteanna (552)

Clare Daly

Ceist:

552. Deputy Clare Daly asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the annual financial statement for 2013 presented by the chief executive officer of Sligo County Council to the elected members of the council in July 2014, which indicated that the council had a deficit of €1.9 million in its revenue budget in 2013; if it has been further drawn to his attention that the recently released report of the local government auditor states that the deficit in the revenue budget for 2013 was €6.31 million; if he will consider introducing legislation, or regulations, to ensure that annual financial statements issued by council chief executive officers reflect the actual financial position of a council; and if he will make a statement on the matter. [10563/15]

Freagraí scríofa

Minister for the Environment, Community and Local Government

Section 108 of the Local Government Act 2001 requires that each local authority shall prepare an Annual Financial Statement in accordance with the Local Authority Accounting in Ireland Code of Practice and Accounting Regulations issued by my Department. Section 108 also requires that as soon as practicable after the preparation of an Annual Financial Statement, such statement, with a report by the Chief Executive, shall be sent to each member of the local authority. When presenting an Annual Financial Statement, the Chief Executive is presenting unaudited or draft accounts. These cannot be taken as final accounts until the Local Government Audit Service (LGAS) completes their audit. The LGAS is statutorily responsible for carrying out an independent audit of each local authority’s financial statement and issues arising in the course of an audit are matters between the LGAS and the Council concerned.

The continued deterioration of Sligo County Council’s financial position is of serious concern to me. 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 I expect will address such issues for the future.