THE BOARD of a Co Kerry credit union claimed the body maintained "adequate" accounting records after its auditor found that the body did not maintain proper books of account, writes Arthur Beesley, Senior Business Correspondent.

The agm of Ballybunion Credit Union was adjourned a fortnight ago after a brief discussion on the accounts for the year to September 2007, which recorded an increase to €173,252 from €32,884 in its annual surplus after a transfer to its statutory reserve.

It is believed that the Financial Regulator is attempting to broker a resolution before the agm is reconvened.

Auditor Louise Carey, who practises in Listowel, qualified her report on the accounts. Circulated to all members of the credit union, her report said "we have not obtained all the information and explanations we consider necessary for the purposes of our audit".

The evidence available to the auditor was limited "because a fixed asset register was not maintained and proper monthly accounts have not been prepared" and any adjustment to the fixed asset figure could have a significant impact on the surplus.

"We are unable to form an opinion as to whether the financial statements give a true and fair view of the state to [ sic.] the credit union's affairs as at 30 September 2007," the report said.

Ballybunion Credit Union said early yesterday afternoon that there was no-one available to respond to queries from The Irish Times.

Martin Flavin, chairman of the credit union, did not return a phone call to his home yesterday.

"The board is satisfied that the fixed assets are correctly stated in the financial statements, and that adequate accounting records have been maintained," said the directors in their annual report.

A spokesman for the Financial Regulator declined to comment on the situation at Ballybunion.