Contact Declan Bree

Declan Bree

1 High Street
Sligo.
Republic of Ireland.

Tel:   071 9145490
Fax:  071 9145490

Email: dbree@eircom.net

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Thursday
Nov292012

AUDITORS REPORT DAMNING INDICTMENT  

“THE LOCAL GOVERNMENT Auditors Statutory Report for 2011, released this week, is a damning indictment of the manner in which Sligo County Council manages its financial business and it clearly confirms what I have been saying about the management of the Council, said Cllr Declan Bree.

The Auditor Mr Raymond Lavin, in his report expresses concerns in relation to the financial performance of the Council and in regard to the financial standing of the Council and its increasing level of debt.

“Not only has the auditor confirmed that the Council’s revenue deficit increased by an alarming 30% last year - to almost €13 million - he also went on to say that in his opinion the deficit figure was actually understated in the Council’s accounts.” said Cllr Bree.

“Comparing the Council’s budget with the actual outturn the Auditor has pointed out that the expenditure by the Council in 2011 was significantly higher than that provided for in the budget.  

“He said the Council needs to prepare realistic achievable budgets and these budgets need to be carefully monitored and implemented.   Indeed he said the same in his reports in 2009 and 2010.  But no one seems to be listening.

“The auditor has again this year complained about an insufficient audit trail in relation to a number of Council projects and he also complains that the Council’s registers of lands and buildings have not been properly maintained.

“The fact that the Council purchased an interest in property in Ballymote for the sum of €100,000 without any valuation or without any formal agreement being drawn up in accordance with regulations and guidelines is indicative of the manner in which the Council management transacts its affairs

“An area of particular concern relates to the recent Financial Appraisal of the Council carried out earlier this year by a firm of private consultants.   According to the Auditors Report the consultants were advised by Council management that the Council would break even this year.  However he points out that the unaudited accounts for the first half of 2012 indicate a deficit of €1.5 million for the first six months.

“What is particularly amazing is the revelation that a sum of €4 million which Management included in last years Council budget as income, was nothing less than pure fantasy.   

“According to the County Manger it was assumed that there would be €4 million savings arising through a voluntary redundancy package and redeployment, and it was decided to show the financial impact of this as income of €4 million in the Council budget.   Where else but in Sligo could such a preposterous budget be concocted.” said Cllr Bree

“To add insult to injury everyone of us including the dogs on the street knew there was no possibility whatsoever of the government introducing a voluntary redundancy scheme.

“The Council is now over €80 million in debt and is it any wonder? For the past number of years the County Manager has consistently asked councillors to adopt annual budgets that were based on fantasy, budgets that bore no resemblance to reality, budgets that were absurd and unattainable, budgets that led to massive deficits in the revenue account each year.  And to make up for the shortfall each year the County Manger then urged councillors to take out loans and increase overdrafts.

“Unfortunately the majority of councillors dance to the County Managers tune and they have constantly voted for budgets which have undermined the council’s financial viability.

"It should now be obvious to most people that what is happening in terms of the finances of the Council is not only unacceptable, it is unsustainable.” Cllr Bree said.

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