FINANCIAL REPORT AN INSULT TO COUNCILLORS

THE FINANCIAL Report on the Revenue Account for the quarter ending end of September 2011 which the County Manager has had circulated to councillors can only be described as an insult to the Council, Cllr Declan Bree told this months meting of Sligo County Council

“For the past three years the County Manger has withheld the quarterly financial reports from the members of this Council.

“When I recently complained to the Minister for the Environment and Local Government about the lack of information being provided to councillors, the Minister replied to me and told me the that the Local Government Audit Service Report on Financial Management Reporting in Local Government, published in 2007, recommended that financial management reports should be provided to the elected Council on a regular basis, at least quarterly, to support councillors in their financial governance role. The Minister said that the recommendation was to be implemented by January 2008.” Cllr Bree told the Council.

“The record will show that in the period since January 2008 to date the County Manager has witheld all the quarterly financial management reports from the members of this Council. And despite the fact that this Council sought information on our finances it was not provided to us.

“Local self government is supposed to be about openness and transparency and about accountability. Yet the fact is that the information which this elected Council was entitled to was consistently withheld from us. Some councillors appear to find such a situation acceptable, but I certainly don’t.

“Now that the Minister has intervened, we are provided with a Financial report for the 3rd Quarter of 2011 which consists of one sentence:- “At the end of September 2011, the Revenue Account balance is indicating a Deficit of approximately €2.5.million.”

“That is not a financial report and it is unacceptable.” said Cllr Bree.

“It has to be said today that what is happening in terms of the finances of this Council is unsustainable.

“Last year the County Manger encouraged the Council to borrow €15million to clear debts including the 2009 revenue deficit of €7.5 million.

“However despite taking out the loan we discovered this year that the €7.5million Revenue deficit wasn’t cleared and an additional €2.46 million from 2010 had been added to it.

“In addition, in March this year the County Manager encouraged the Council to increase its overdraft from €5 million to €7.5 million and despite such a significant increase, the Manager came back two months ago and recommended that the overdraft be further increased, from €7.5 million to €11 million. And in addition today we are told that the Revenue Balance up until September this year is indicating a deficit of approx €2.5million.

“Add that €2.5million to the €9.46 million Deficit Balance carried over from last year and in addition consider the €11million overdraft, plus the €15million that was borrowed last year and it will give us an indication of the manner in which the finances of this Council are being managed.  This is clearly unsustainable.

“While other councils may have had difficulties, the fact of the matter is that Sligo County Council in the only Council in the entire country where the revenue deficit is increasing year by year. This Council is now on the verge of bankruptcy.” Cllr Bree said.

Cllr Bree then proposed the following motion: “Recognising that the Local Government Audit Service Report on Financial Management Reporting in Local Authorities recommends that financial management reports be provided to the elected Council at least quarterly, and further recognising that each local authority in accordance with the EU/IMF Financial Support Programme, is required to report on its financial position on a quarterly basis to the Department of the Environment in a prescribed format, this Council resolves that a copy of the said quarterly report in the same prescribed format be provided to the elected members of the Council each quarter.”  The motion was seconded by Cllr Sean MacManus and was unanimously adopted.