Queries raised over Galway City Council procurement practices

A review of expenditure by City Hall has raised questions about procurement practices in Galway City Council.

An independent audit committee’s report on the annual financial statements of the local authority found that “no evidence could be supplied to indicate compliance with procurement rules and regulations” in relation to €927,000 of monies spent by the Council last year.

The lack of evidence of compliance with procurement rules relates to €927,000 out of a review of €8.2 million in non-pay expenditure.

Arrangements have been put in place to properly procure some €722,000 of it in 2018 and a further €96,000 related to expenditure that will not be incurred by the Council in future years.

The remaining €109,000 “remains to be addressed”.

Audit committee chair, Niall Bradley said: “It would appear from the above findings that if management continues to implement these controls, improved procurement compliance should be evident in future years.”

In response, Chief Executive of City Council, Brendan McGrath said the Council’s Procurement Team continues to work with various departments to ensure compliance with existing rules, while “maximising the benefits in achieving value for money and efficiencies”.

Mr McGrath said it was a “very positive” audit report.

The auditor reviewed some €511,000 of debt owing to the Council for housing rents. Of the outstanding monies, some 56% were reducing their arrears but the remainder were either “not making payments or not meeting their current debts as they fall due”.

The auditor highlighted how the Council’s commercial rates collection of 78% was below the national average of 84%. That was the case even though it had improved in 2017 by 3%, which resulted in a €1.3 million reduction in debtors.

The cash collected in the year from rates increased by €400,000 to €34.6 million, “which is a welcome development given that rates accounted for 46% of the Council’s total revenue income in 2017”, the report said.

In response to Mayor Niall McNelis, Mr McGrath said the cost to the Council of the audit was €41,000.