Financial Management Expenditure

The expenditure of monies by the Council is classified under two headings:

• Current (or revenue) expenditure,
• Capital expenditure.

Current (revenue) expenditure is financed by state grants, rates on commercial property and miscellaneous income (charges for services, housing rents, housing tenant purchase repayments, etc.). Day to day expenditure of the Council such as housing maintenance, salaries, etc. is classed as revenue expenditure. Generally speaking this type of expenditure produces no permanent asset.

The main sources of funding for revenue expenditure are:

• Government Grants and Subsidies:
• Commercial rates
• Goods and Services (e.g. housing rents, fees and charges for services)

Capital Expenditure - i.e. expenditure on creating assets e.g. house building, major road improvement works etc.

The main sources of funding for capital expenditure are:

• Capital Grants from Central Government
• Borrowing
• Other Capital Receipts e.g. Sale of Lands.

Capital expenditure is financed by capital grants received from Central Government, loans and capital receipts. This expenditure is used in the provision of Council houses, water and sewerage schemes, major road improvements, works, etc. Prompt submission of claims to Central Government Departments ensures that any capital allocations are forwarded to the Council at an early date thus ensuring that capital works proceed promptly and are fully funded.

Annual Budget

In accordance with Section 102 of the Local Government Act 2001 each Local Authority is required to prepare an annual budget setting out:

• The expenditure estimated to be necessary to carry out its functions, and
• The income estimated to accrue to it.

This budget estimates the costs of maintaining current services, implementing any desired improvements and introducing any new items. It also estimates the income from state grants, charges for various services and other miscellaneous sources. The shortfall between the two is met by commercial rates.

A statutory budget meeting must be held each year to consider the Draft Budget for the following financial year. The Budget is available for inspection/purchase by any member of the public at the offices of Kilrush Town Council, Market Square, Kilrush. The adoption of the Budget is a reserved function of the Elected Members who may adopt, amend or reject the Draft Budget as prepared by the Manager.

Annual Financial Statement

While the Budget sets out the proposals for the forthcoming year, details of actual figures at year-end are contained in the Annual Financial Statement. This replaced the Abstract of Accounts and contains and represents a change to full accrual accounting based on double entry and incorporating a full balance sheet. The Annual Financial Statement is prepared in accordance with the Accounting Code of Practice.

Payroll And Creditors Payments

The Finance Section is responsible for the processing of payroll for all Council staff, for deduction of PAYE, PRSI and other statutory and non-statutory deductions and for all returns relating to same. All accounts for goods, services, etc. are processed through this section having been approved for payment by the certifying officer of the relevant section with the Council. Tax is deducted from payments as required by law.

The Prompt Payment of Accounts Act 1997 and the Late Payment in Commercial Transactions Regulations 2002 sets time limits for payment of accounts by local authorities to suppliers, contractors, etc. This makes the Local Authority liable for interest on late payments. Where payment is late the supplier is entitled to paid interest, at a rate set by the Minister from the date the payment was due to the date the account is paid. Penalty interest is not payable regarding disputed goods if agreed between the parties. Suppliers may seek arbitration regarding disputed goods and purchasers must agree to the arbitration decision.

Revenue Collection.

Revenue Collection involves the collection of all income due to Kilrush Town Council. In addition to commercial rates which are separately dealt with the following charges must also be collected:

• Housing rents,
• Tenant Purchase annuities,
• Commercial water charges,

The collection of this income involves the issue of demands, receipting of payments, follow up on slow payment and appropriate action in the case of defaulters. Kilrush Town Council wishes to facilitate its customers in making payments as conveniently as possible. To this end a variety of payment methods operate ranging from:

• Payment at Council Cash office,
• Deduction from Social Welfare payments under the Household Budget Scheme,
• Bank Standing Orders.

In the case of non-payment of an amount due, the Council makes every effort to secure payment, and this can involve legal action where no other option is available. It is very important that a customer who has difficulty in meeting any payment should contact the relevant Revenue Collector or other official of the Council at an early stage to discuss the situation.

Rates/Valuation. Rates System.

All fixed property has a rateable valuation but rates are only payable on commercial property. The rateable valuation is used by the Local Authority to determine the commercial rates payable by each ratepayer. Rateable valuations are fixed and altered by the Commissioner of Valuations, not by the Local Authority, but requests for revisions of valuation must be submitted through the Local Authority.

Revision of Valuation

There is a system of continuous revision of valuation throughout the year. Any person may apply, on payment of a fee per listing, for revision of valuation, through the Local Authority, who will submit it to the Commissioner. Kilrush Town Council automatically list new properties or those where significant alterations have taken place and submit a list of revision requests to the Commission of Valuations.

Rate Collection

Rates are payable in two installments, the first on issue of the demand, and the second on 1^st July. The rated occupier is liable for payment of rates but where a property is vacant the owner becomes liable. Where the Council is unable to obtain payment in the normal way legal proceedings may be taken to recover the outstanding amount with costs. Following this an installment order may be sought or a judgement mortgage obtained and registered against the property. Under the Local Government Act 1941, a Rate Collector has the power to seize goods to cover the value of the amount outstanding and can also offset any monies due to a ratepayer against rates due. Members of the Council can be disqualified for non-payment of rates.

Schedule of Uncollected rates

Not later than thirty days after the close of a financial year the rating authority completes a Schedule of Uncollected Rates showing details of all amounts outstanding. Reasons for non-collection are outlined. The arrears are considered by the Town Manager who may decide to strike them off as irrecoverable, direct that they be carried forward to the following year's warrant or disallow the claim and direct the collector to lodge the amount concerned. Rates struck off by the Town Manager cannot be restored by the Local Government Auditor. After the schedule has been prepared the manager must submit a report thereon to the Members of the Town Council at the next practicable meeting of the Council. A Rating Authority may publish in local newspapers a list of uncollected rates and the ratepayers concerned.

Audit/Control

An important element of the Finance function is the whole system of internal control. Internal checking of all monies receipted and lodged is carried out on an ongoing basis.

The Local Government Auditor is appointed by the Minister for the Environment, Heritage and Local Government to audit the accounts of a Local Authority each year and to report on them. The Auditor must be satisfied that all transactions are properly accounted for, that the Annual Financial Statement is correct and that the accounting and control systems in operation are sound. Notice of the commencement of the Local Government Audit is published and members of the public are entitled to bring to the attention of the Auditor any item of the accounts which they believe to be incorrect.

Classes Of Records Held

• All reports generated by the Financial Management System - Agresso.
• Suppliers (Receipts and Payments) and Masterfile data.
• Expenditure Reports
• Cancelled and Duplicate Paying Orders.
• Sick Pay records.
• Records of salary/wage adjustments.
• Records of overtime.
• Records of rates of pay.
• Timesheets.
• Paypath details.
• Records of deductions.
• Payroll registers/masterfiles/histories.
• Rate book.
• Certificates of Valuation.
• Applications for revision of valuation.
• Payment records.
• Rate Collection Accounts.
• Commercial Water Collection Accounts.
• Claims to various Government Departments.
• Reports to Council Meetings.
• Bank Statements.
• Various other financial records.