Financial programme for council staff

LOCAL councillors and council staff are to be given training in financial management to improve the smooth running of local government.

The measure is recommended in a new report which also suggests a three-year rolling expenditure programme to be introduced in each council to complement the existing annual budgetary process.

Local authorities throughout Ireland currently spend about €9.5 million in a year and a new costing system is being introduced to help with financial management at council level.

A value-for-money report published yesterday by the Local Government Audit Service stressed the importance of financial management in each local authority and the need for responsibility and accountability to be taken at management level for the financial well being of the authority.

Launching the report, environment minister John Gormley said that local authorities had a responsibility to ensure there is “transparency, accountability and value for money” for their expenditure.

He said financial management reporting facilitates decision-makers within local authorities, at official and representative levels, as well as helping them to respond to clients.

The report recommends effective financial management structures throughout each local authority; procedures to ensure identified problems are addressed; reporting on the financial management and the delivery of capital projects and any related funding issues; three-year rolling financial plans in addition to the annual budgetary process; written procedures in the area of financial management and financial management training for local authority personnel and councillors.

Councils have been given until January of 2009 to implement the reforms.

The latest report aims to build on the modernisation programme that has been underway in the local government sector in recent years.

The new costing system for local authority expenditure, according to Mr Gormley, will provide information on the costs of individual services.

Progress on implementing the report’s recommendations will be kept under review by the Value for Money Unit.