Council in breach of rules with €6m spend
The Local Government Audit Service’s statutory audit report on Cork City Council’s books for 2011 found that the money was spent without recourse to a formal tendering process.
The auditor examined procurement compliance relating to expenditure of a revenue nature in the council’s main directorates.
The report noted that €890,000 was paid to two suppliers in 2011 for hiring of vans and pick-up trucks.
The council initially hired many of the vehicles on a weekly basis in 2007 and retained the same vehicles on a continuous short-term hire basis until Aug 2012.
During this time, the council spent €3.5m on vehicle hire — all procured without recourse to a formal tender process.
The report also found that materials and services to the value of €2.5m were charged to housing maintenance during 2011 — again, these were all procured without recourse to a formal tender process.
The auditor said it was essential that procedures continue to be developed to ensure the council was fully compliant with national and EU procurement regulations and guidelines.
“I have recommended to the manager that a long-term fleet procurement strategy should be put in place to ensure value for money is achieved,” the auditor said.
“This process should include an assessment of the necessity to maintain the current fleet numbers.”
City manager Tim Lucey said the implementation of such a long-term strategy, which included a major retendering process undertaken in 2011, was the subject of a review last year.
It was undertaken in view of changing circumstances and national procurement developments because it was felt that further values could be achieved.
New rates for short-term hire were achieved last August, which will result in significant cost-savings, Mr Lucey said.
“The tendering of fleet under a longer-term procurement strategy is imminent and will address the matter raised at audit.
“All fleet is now being managed through a central fleet management unit.
“In the area of housing maintenance, €2m of the €2.5m referred was successfully tendered in 2012.”
This was primarily in the area of central heating repairs and electrical maintenance and repair, which were procured under EU procurement procedures, he added.
The auditor noted that 2010 recommendations on improving controls and safeguarding income streams from park-by-phone, car parks, and parking fines had not yet been implemented.
“I have written to the manager noting the deficiencies highlighted during the current audit and have recommended in particular that the contract for the park-by-phone service be regularised without further delay,” the auditor said.
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