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Audit report raises concern over fixed assets
Galway Bay fm newsroom – A statutory audit report into city council accounts has raised concern over the ‘inadequate’ manner in which fixed assets are recorded.
The report for the year ended 2012 also raises issue with funding for capital balances, commercial water collection levies and purchasing and procurement issues.
The balance sheet shows net assets of 1.2 billion at the end of December 2012.
However, the audit states that the current system whereby individual sections manage their own property portfolio is not working.
It adds that where adequate records of assets owned are not held, or where asset records are incomplete, there’s a rish that assets may be inadequately insured or may be lost to the authority.
The councils head of finance, Edel McCormack says work is underway to resolve the matter and from 2011 the fixed asset register was reconciled to the housing database and the insurance register.
Meanwhile, the rates debtor at the year end was 17.1 million- an increase of .7 million in the year which represents a signficant drain on the cash flow of the council.