Shortcomings identified in management of State finances

The payment of Border allowances to soldiers after the end of the Troubles is among the shortcomings in the management of State…

The payment of Border allowances to soldiers after the end of the Troubles is among the shortcomings in the management of State finances identified in the latest report from the Comptroller and Auditor General (C&AG) which was published today.

C&AG John Buckley is the Constitutional Officer with responsibility for the audit of public funds. He is totally independent in the exercise of his functions and reports to Dáil Éireann in accordance with governing legislation.

The newly-released annual report for 2007 highlights other lapses in the administration of public funds which included:

• Purchasing Garda vehicles, some of which took more than a year to deploy.

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• Building up €1.2 billion in development levies by local authorities.

• Paying disproportionate management fees for the administration of a savings scheme. It costs €1 million per year to administer a scheme that generates €4 million to €4.5 million annually.

• Not using competitive processes in the procurement of goods and services for a large element of prison service purchasing.

• Paying out flood relief money in advance of local capacity to spend it. Over €9 million advanced in 2007 will not be utilised until 2009.

The report examines both the Revenue collection and the expenditure of the central government. Overall, there was a deficit of €1.6 billion for the year compared with a surplus of €2 billion in 2006.

The report also reviews the progress made by the Health Service Executive in implementing a transformation programme and examines its budget management arrangements.