Management at Waterford County Council were yesterday urged to make a full statement regarding the discovery by a local government auditor of a €53,000 undercharging of development contributions in respect of two projects in the county.
According to the report of local government auditor Patrick J Healy, there "were two significant errors amounting to €53,000 in the calculation of Part V planning contributions" in the council's set of accounts for the year 2003.
Part V planning contributions are payments made by developers to local authorities in lieu of providing a portion of a development for social and affordable housing as set out in the Planning and Development Act 2000.
Mr Healy noted in his report: "To compound and add to my concern, these contributions were signed off and approved by a second member of staff. The developer in both cases had paid the agreed contribution and as a result, the undercharge is uncollectable."
Mr Healy was also critical of the council's allocation of resources for its own internal audit of its accounts and he noted there was an absence of proper monitoring and review of the council's control.
"Internal audit has not received the attention and resources required for the proper functioning of the section. This section has not operated as an effective internal audit section since September 2003," said Mr Healy in his report.
Mr Healy said Waterford county manager Ray O'Dwyer needs to ensure the council complies with the appropriate statutory instrument in relation to internal audits of accounts.
"Many of the difficulties I encountered at audit highlight the absence of proper monitoring and reviewing of the council's control systems. The absence of proper checking and review means that errors and other difficulties can arise and may remain undetected," he cautioned.
Mr Healy's comments have led to both Fine Gael Cllr DamieGeoghegan and Sinn Féin Cllr Brendan Mansfield calling for a full statement on the whole issue of Part V planning levies and the council's internal audit system.
Last April, gardaí confirmed that they had launched an investigation into alleged planning irregularities at Waterford County Council, following the suspension of an official working there.
The official's suspension followed a preliminary internal inquiry initiated by the council after a series of complaints by a member of the public regarding the activities of a council staff member involved in the general planning area.
At a subsequent council meeting, Mr O'Dwyer told councillors that an allegation of misconduct had been made and been referred to An Garda Síochána, and he would not be making further comment.
A Waterford County Council spokesman could not be contacted for comment last night on Mr Healy's report.
Mr Healy works for the Local Government Audit Service attached to the Department of the Environment, Heritage and Local Government.