OFFALY COUNTY Council failed to carry out internal audits for over a year due to Government cutbacks, according to the latest statutory audit report.
Local government auditor Fiona Clancy described the failure to conduct any internal audit between October 2008 and December 2009 as a “serious internal control matter”.
She was critical of the council, and said an “internal audit should be adequately resourced at all times”. The council cited Government cutbacks for its failing.
“This matter exemplifies the negative impact of the staffing moratorium on management control/mitigation measures in general,” the council said in a response published with the audit report. The council has also blamed Government policy for its breach of accounting policies in selling assets to pay for retirement lump sums. Ms Clancy said: “The council transferred €338,000 from the sale of assets from the capital account to the revenue account to pay lump sums in 2009.
“This is not in line with the accounting policies.” The authority responded: “National Government policy on encouraging early retirement accelerated the normal rate of retirement in Offaly County Council. It was necessary to adopt this strategy due to lack of any other funds.”