Auditors Report Damning Indictment of Managment of Council Finances

A NUMBER of councillors were unhappy when I referred to Sligo County Council as a basket case when we discussed the finances of the Council at our last meeting. Cllr Declan Bree told the January meeting of Sligo County Council

"However the Auditors Report for 2010 which we have before us clearly confirms that what I have been saying about the management of the finances of this Council is absolutely correct.

"The Local Government auditor may be somewhat more diplomatic with his language however the fact is that the report before us is scathing of the manner in which the finances of this Council have been managed.

"Given the ongoing refusal of Fianna Fail and Fine Gael councillors to challenge the County Manager over the past number of years this Council now finds itself in a major financial crisis.

"The auditor expresses concern in relation to the financial performance of the Council and the assumptions underlying the budgetary process.   He expresses concern in relation to the financial standing of the Council and its increasing level of debt.  He tells us that the Council’s revenue debt increased by 33% in 2010 to €9.98 million and he points out that salaries were underestimated by €1.42 million or 11%.

"He says there was an insufficient audit trail in relation to a number of capital products and despite having raised the issue in the past he again highlights the fact that there is no evidence of legal services being tendered for in most cases.  

"The report indicates that millions of Euro were spent on the Model Niland Gallery and other projects despite the fact that the Council did not have money to cover the costs.

"In addition the auditor says that the Council’s registers of lands and buildings have not been properly maintained and he points out that the Councils long term debt increased by €10.7 million to €76.9 million.

"The auditor confirms that as a result of borrowing and refinancing in 2010 the Council reduced its short-term overdraft to €3 million.

"However we all know that when the Auditors Report for 2011 is published it will show that within months of the overdraft being reduced to €3 million, the majority of councillors supported the recommendations of the County Manger to consistently increase the overdraft and today this Councils overdraft stand at €11 million.  

"It should now be obvious to most people that what is happening here in terms of the finances of this Council is not only unacceptable, it is unsustainable.  In essence what is happening here is a microcosm of what occurred in Anglo Irish Bank.

"This report is a damning indictment of the manner in which the Council manages its financial business.

"And I have to say that I find it amazing that the County Manager is not present at the meeting on the day the Council is dealing with the Auditors Report.  Can you imagine the C.E.O. of a company in financial crisis, being absent from the Board meeting on the day the Auditors Report is to be considered.   It could only happen in Sligo County Council.

"Given the contents the Auditors Report I now challenge the Fine Gael and Fianna Fail councillors to propose a vote of confidence in the County Manager."

Cllr Bree then proposed the following motion:- “Having considered the contents of the Local Government Auditors Report for the year ending 31st December 2010 and recognising the grave financial crisis the Council finds itself in, the elected members of Sligo County Council request the Minister for the Environment to meet as a matter of urgency with an all party delegation of councillors to consider the critical financial position of the Council and to seek the advice and assistance of the Department of the Environment and Local Government in terms of resolving the crisis.”  The motion was seconded by Cllr Sean Mac Manus and was unanimously adopted.