Report of the Local Government Efficiency Review Group

7.6.3 Local authorities should consider the suitability of their credit control
procedures for each of the main sources of income. Management of this
area should be the responsibility of either the financial or management
accountant, who should report directly to the head of finance. General
principles of good practice such as, weekly or monthly arrears monitoring
and early intervention should be shared between local authorities.
7.6.4 The Group has been advised that there are a number of local authorities
that have significant deficits on their revenue accounts. In this context, the
Group recommends that the necessary remedial actions continue to be
pursued.
Recommendations:
7.7.1 The essence of the audit function is to draw the attention of responsible
authorities to failures and failings and to have these rectified. Publicity and
public probing play an important role in this respect. In the Group’s view, to
give a greater focus and impact to the work of the Local Government Audit
Service, particularly in terms of the recommendations made by external
auditors, the Local Government Director of Audit should produce an annual
report covering all of his functions and deal specifically with the primary
local authorities. This report should be made to the Oireachtas Committee
on the Environment, Heritage and Local Government for purposes of debate
with appropriate local representatives and managers presenting with regard
to local spending of central funding. This could act as a spur to enhanced
performance and efficiency at local level.
7.7.2 In addition to the above recommendations, the Group recommends that:
• The internal audit function in local authorities be resourced by staff with
suitable professional qualifications and sufficient ICT skills to allow the
extraction and analysis of data from the financial systems;
• Opportunities for exchange and secondment of audit personnel with
the private sector be explored;
• The scope for sharing internal audit services between local authorities
be pursued as a matter of priority;
• The annual internal audit plan be discussed with the local government
auditor and presented to the as local authority audit committee before
finalisation;
• Any VFM studies or efficiency reviews carried out within the local
authority be reported through internal audit. The role of VFM officer
within an authority could be assigned or extended to cover internal
audit;
• Authorities to have local arrangements in place for the internal
checking of receipts, including motor tax. This work should be separate
from internal audit;
• Regulations, as provided for in the 2006 Act, to be made on the
operation of audit committees. This should include good practice as
identified from experience to date;
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