County council €1.74m in the red

Clare County Council was €1,743,845 in the red at the close of 2010, according to the statutory audit of the local authority’s accounts for the year ending December 31, 2010.

Meanwhile, the council was advised their level of borrowing should be “carefully monitored” after the local authority’s “long-term borrowing increased by a net €.45m during the year to €119m at December 31, 2010”. The report was issued to members of Clare County Council at November’s meeting of the local authority on Monday.
The auditor’s report stated that during 2010 there was a slight reduction in the deficit on the previous year, with the closing debit balance in 2009 standing at €1,856.539.
“It is essential that income and expenditure continues to be closely monitored and corrective action taken on variances from the approved budget,” the auditor advised.
County manager Tom Coughlan said the financial performance of Clare County Council for 2010 was achieved through the adjustment of work programmes and effective budget control of both expenditure and income throughout the organisation. “This active budget control continues on an ongoing basis as we operate in this difficult economic climate,” he added.
The county manager also noted that the increase in long-term borrowing in 2010 was due to the drawdown of a loan for €5.4m to finance the council’s contribution to the overall project cost on the water services investment programme.
Meanwhile, the report documented that the balance sheet showed net assets of €2.891 billion at December 31, 2010.
The auditor noted that by the end of 2010 the combined valuations of land, housing and buildings came to €346m.
The auditor recommended that in view of the current economic position that these assets be revalued and the appropriate accounting adjustments be reflected in future annual financial statements. This was noted by the manager.
Meanwhile, under commercial water, the auditor stated that the collection performance at 33% “is far from satisfactory”.
“The debtors at year-end amounted to €9.79m. More resources should be assigned to the collection of this debt,” the auditor stated.
The manager stated the payment of all revenue sources “has become more difficult in light of the current economic climate and significantly impacts on the council’s cash flow and bank overdraft facility”. He added that every effort is made to meet with customers and agree payment plans, while acknowledging the difficult financial environment they are encountering.