Statutory Audit Report to the Members of
Mayo County Council
for the Year Ended 31 December 2020
Local Government Audit Service
Prepared by the Department of Housing, Local Government and Heritage
gov.ie/housing
Contents
Auditor’s Report to the Members of Mayo County Council ............................ 1
1 Introduction .......................................................................................... 1
2 COVID-19 – Impact on Local Authorities ............................................. 1
2.1 Overview ....................................................................................... 1
2.2 Restart Grants Scheme ................................................................ 2
2.3 Rates Waiver Scheme .................................................................. 2
2.4 Reimbursement for loss of goods and services income and
COVID-19 related expenditure ................................................................ 3
3 Financial Standing ............................................................................... 3
3.1 Statement of Comprehensive Income ........................................... 3
4 Income Collection ................................................................................ 4
4.1 Summary of Income Collection ..................................................... 4
4.2 Bad Debt Provision ....................................................................... 4
4.3 Government Debtors ..................................................................... 5
5 Transfer of Water and Waste Water Functions to Irish Water ............. 5
5.1 Overview ....................................................................................... 5
5.2 Water related loans ....................................................................... 5
5.3 Water related Assets ..................................................................... 5
5.4 Obsolete Assets ............................................................................ 6
5.5 Sum in dispute with IW ................................................................. 6
6 Loans Payable ..................................................................................... 7
6.1 Loans Payable .............................................................................. 7
7 Bank .................................................................................................... 8
8 Redemption of Bridging Finance ......................................................... 8
9 Fixed Assets ........................................................................................ 8
9.1 Overview ....................................................................................... 8
9.2 Property Management issues ....................................................... 9
9.3 Digitised Computerised Land Bank ............................................... 9
10 Capital Account ................................................................................ 9
10.1 Overview ....................................................................................... 9
10.2 Mary Robinson Centre ................................................................ 10
10.3 Lands at Cloonagh - Castlebar ................................................... 10
10.4 Kiltimagh Velorail Project ............................................................ 10
11 Defective Concrete Blocks Grants Scheme ................................... 11
12 Procurement and Tendering ........................................................... 11
12.1 Procurement and Public Spending Code .................................... 11
12.2 Purchase of Consultancy services .............................................. 11
12.3 Expression of Interest for the future use of the Leisure Complex at
Lough Lannagh ..................................................................................... 12
13 Local Authority Companies ............................................................ 13
13.1 Westport Leisure Centre Limited ................................................. 13
14 Development Contributions ............................................................ 13
14.1 Development Contributions ......................................................... 13
15 Planning & Strategic Infrastructure ................................................. 14
15.1 Housing Estates .......................................................................... 14
16 Governance and Propriety ............................................................. 14
16.1 Overview ..................................................................................... 14
16.2 Internal Audit ............................................................................... 14
16.3 Risk management ....................................................................... 15
16.4 Data protection ............................................................................ 15
16.5 Staff returns under Ethics Act ..................................................... 16
Acknowledgement ....................................................................................... 16
1
Auditor’s Report to the Members of Mayo County Council
1 Introduction
I have audited the Annual Financial Statement (AFS) of Mayo County Council for
the year ended 31 December 2020, which comprises the Statement of Accounting
Policies, Statement of Comprehensive Income, Statement of Financial Position,
Funds Flow Statement and notes to and forming part of the accounts. The financial
reporting framework that has been applied in its preparation is the Code of
Practice and Accounting Regulations for Local Authorities, as prescribed by the
Minister for Housing, Local Government and Heritage.
My main statutory responsibility, following completion of the audit work, is to
express my independent audit opinion on the AFS of the Council, as to whether it
presents fairly the financial position at 31 December 2020 and its income and
expenditure. My audit opinion, which is unmodified, is stated on page 4 of the AFS.
The Council is by law, responsible for the maintenance of all accounting records
including the preparation of the AFS. It is my responsibility, based on my audit, to
form an independent opinion on the statement and to report my opinion. I
conducted my audit in accordance with the Code of Audit Practice. An audit
includes examination, on a test basis, of evidence relevant to the amounts and
disclosures in the AFS. It also includes an assessment of the significant estimates
and judgments made by the Council’s management in the preparation of the AFS,
and of whether the accounting policies are appropriate to the Council's
circumstances, consistently applied and adequately disclosed.
I planned and performed my audit so as to obtain all the information and
explanations, which I considered necessary to provide sufficient evidence to give
reasonable assurance that the financial statement is free from material
misstatement, whether caused by fraud or error.
This report is prepared in accordance with Section 120 (1) (c) of the Local
Government Act, 2001 and should be read in conjunction with the audited AFS.
2 COVID-19 – Impact on Local Authorities
2.1 Overview
The COVID-19 outbreak and the emergency measures taken to mitigate it have
had a significant impact on the finances of local authorities during 2020. This
has resulted in a reduction in income from some sources, an increased level of
COVID-19 related expenditure and related government subvention for the local
authority.
At a national level, the Government introduced a number of schemes including
the restart grant schemes and rates waiver scheme to support businesses, as
2
noted in paragraphs 2.2 and 2.3 below. In addition, local authorities were
reimbursed by the Department for the loss of income from goods and services
and for additional COVID-19 expenditure incurred by them (see paragraph 2.4).
In June 2021, it was agreed by the General Accounts Working Group to amend
Note 23 and include an additional Note 24 in relation to Restart Grants / Plus in
the audited Annual Financial Statements 2020.
2.2 Restart Grants Scheme
During 2020, the Government decided to support commercial micro, small and
medium businesses, through the Restart Grant Scheme and later the Restart
Grant Plus Scheme. The qualifying businesses were required to have a rateable
premises and experienced a loss of turnover due to the COVID-19 restrictions.
The scheme provided for assistance with the costs of reconnecting with the
marketplace, reopening their business and re-employing staff. Qualifying
businesses who met the specified eligibility criteria could apply to the local
authority for grants under these schemes.
Under the service level agreement between Enterprise Ireland, Department of
Enterprise, Trade and Employment, the Department and each local authority,
the Council had responsibility to manage within its functional area the
processing of applications and payments, in accordance with the criteria
specified, and to make reports to the above Government departments to enable
oversight and review of the scheme. Each business was responsible to self-
certify in completing its application that it met these criteria.
The Council only verified the application against a rate account, where one
existed, and confirmed that the applicant had fully completed the application
including the declaration. The Council did not have to verify any other
information included in the application. Where rates were not assessed in 2019
or 2020, estimates of liability were made by the local authority, where an
estimate could not be made the minimum grant payment was paid. This was
necessary to determine the support available to the relevant business.
Accordingly the audit of expenditure under these schemes, which amounted to
€20.2m in Mayo County Council for the year ended 31 December 2020, was
limited to the specific responsibilities of local authorities, as set out above, and
did not include the verification of other eligibility criteria declared by the
applicants.
The accounting treatment for this is set out in Note 24 in the AFS.
2.3 Rates Waiver Scheme
In order to support both the local government sector and commercial ratepayers,
a funding package of €900m was allocated by the Government to fund the cost
of a waiver of commercial rates for nine months from 27 March 2020 to 27
December 2020.
3
The waiver was available to businesses, which were forced to close, and those,
which experienced significant negative economic disruption due to public health
restrictions, imposed in response to COVID-19.
The total amount received by Mayo County Council for the year ended 31
December 2020 was €12.9m.
The accounting treatment for this is set out in Note 23 in the AFS and further
disclosure is included in Appendix 7.
The methodology and manner for calculating rates income collection differs in
2020 compared to prior years.
2.4 Reimbursement for loss of goods and services income and
COVID-19 related expenditure
The Department reimbursed the Council for the loss of goods and services
income and additional expenditure incurred by them as a result of COVID-19.
The total amount received by Mayo County Council for the year ended 31
December 2020 was €4.1m, split between €2.4m for the loss of goods and
services income and €1.7m for additional COVID-19 related expenditure.
3 Financial Standing
3.1 Statement of Comprehensive Income
The closing surplus for the year amounted to €194k. The Council has achieved
a surplus in four out of the last five years:
YEAR
2020
2019
2018
2017
2016
€k
€k
€k
€k
€k
Surplus/
(Deficit)
194
468
416
(599)
305
The surplus is as a result of the Council maintaining strong budget and financial
controls. The cumulative deficit totalled €3.9m at 31 December 2020 and
remains a serious matter for the Council to address. It is noted in paragraph
10.1 that the Council also has unfunded balances that require funding.
Chief Executive's Response
Through careful financial planning and appropriate management action together
with Government support Mayo County Council delivered a moderate surplus of
€194k against what was probably the most difficult and challenging year ever
faced by the Council. The operating environment in 2021 and 2022 will remain
extremely uncertain and challenging but we will continue to take all reasonable
steps to ensure that the accumulated deficit on the revenue account is reduced.
4
4 Income Collection
4.1 Summary of Income Collection
Appendix 7 to the AFS shows the movement on the major revenue collections in
the year. The collection yields over the last two years were as follows:
Income
Yield
Debtors
Source
2020
2019
2020
2019
%
%
€m
€m
Rates
82
88
4.2
3.9
Rents & Annuities
87
88
1.1
1
Housing Loans
79
77
0.9
1
As set out in paragraph 2.3 a commercial rates waiver scheme was introduced
for nine months from 27 March 2020 to 27 December 2020 for specified
businesses. The percentage collected figure for rates is not comparable to the
2019 AFS because of this waiver. The Council included a note in the AFS to
disclose that the percentage collected if the amount of the waiver had been
included in the "amount collected" column instead of the amount waivered would
have been 88%. This figure is more directly comparable to the 2019 collection
percentage of 88%.
Chief Executive's Response
The significant financial challenges from both COVID-19 and Brexit, made 2020
an extremely difficult year. Notwithstanding this, there is an onus on this Council
to collect debts owing to it and our collection rates although impacted, especially
as a result of the COVID-19 pandemic, overall remained relatively steady in
2020. During 2021, we will continue to maintain and strengthen our focus on
debt collection working with our commercial and non-commercial customers in a
proactive manner commensurate with their financial capacity. There will be a
requirement for us to pay additional attention to revenue collection in 2022 as
Governments supports are reduced.
4.2 Bad Debt Provision
The 2019 audit report recommended that management review the bad provision
for rates. It is noted that the Council significantly increased this provision. In my
opinion, the bad debt provision for rates, rents and loans is now adequate. It is
noted however, that the Council is amongst the highest in the Country for
vacancy occupancy rates, and this necessitates the need to constantly monitor
this bad debts provision.
Chief Executive's Response
The bad debt provision will be assessed in 2021 and will be kept under review
thereafter as the impact of COVID-19 continues to be monitored.
5
4.3 Government Debtors
€8.1m of Government debtor balances were reviewed. This represents 60% of all
Government debtors of €13.4m.These debtors were in general found to be well
managed and controlled. €7.2m of the €8.1m referred to above was received post
year-end. All efforts should be made to recoup the balance outstanding. It is
acknowledged that of the €900k outstanding, all of this sum was accrued at year-
end, invoiced post year end, and relates to 2020 debtor balances.
5 Transfer of Water and Waste Water Functions to Irish
Water
5.1 Overview
The Water Services Act (No 2) 2013 was enacted in December 2013 and provides
for the transfer of water services from the Local Authorities (LAs) to Irish Water
(IW) from January 2014. In addition, the Act provided for the transfer of assets
and certain liabilities related to water services from LAs to IW.
Chief Executive's Response
Mayo County Council continues to provide water services under the terms of a
Service Level Agreement (“SLA”) with IW which is due to expire in 2025.
5.2 Water related loans
As at 31 December 2020, the Council had loans for water activity with an
approximate value of €3.2m. The cost of repaying capital and interest on these
loans is fully funded from the Department.
Chief Executive's Response
The Council’s water and sewerage related borrowings continue to be serviced
by the Department and we await direction from the Department regarding their
future treatment.
5.3 Water related Assets
A review of the 358 assets that were for transfer to IW at 1 January 2014
identified the following:
80 assets have been transferred to date. Significant progress was made
in 2021 in that 52 of these were transferred
A further 47 assets are underground assets. Underground assets
automatically vested with IW post transfer of functions to IW
Significant work has been conducted on transferring a further 76, but
additional investigative work is required by the Council on some of these
6
A further 134 assets require further discussion and information by the
Council
Four duplicate assets or disused assets require further work by the
Council
The Council are focusing on a further 17 assets in 2021 and identifying
any issues associated with them.
Chief Executive's Response
The Council will continue its work with IW to complete the process of transferring
title of assets from the Council to IW recognising that some of the more complex
transactions remain to be completed.
5.4 Obsolete Assets
The Council has approximately 30 small waste treatment plants that were
operational in January 2014 and obsolete in 2020. These assets continue to be
managed by the Council.
Chief Executive's Response
This work is subject to ongoing discussion with IW and the availability of
financial resources to complete this work.
5.5 Sum in dispute with IW
There is a sum in dispute between IW and Mayo County Council. This relates to
the recoverability of the overhead charges on sums invoiced by Mayo County
Council to IW. Mayo County Council have invoiced IW €638K since 2018,
including €228k in 2020 which IW are disputing as monies due. The Council
should seek to resolve this matter with IW.
Chief Executive's Response
This is being dealt with under the dispute resolution provisions of the SLA and
Mayo County Council will work towards early agreement.
7
6 Loans Payable
6.1 Loans Payable
Capital debt amounted to €128.5m at the 31 December 2020.This is further
analysed as follows:
Source of
Borrowings
2020
€m
Mortgage and voluntary housing related borrowings
and other
recoupable loans
54.2
Loans fully recoupable
pertaining to IW
3.2
Land Acquisition
Loans
(including
assets)
63.8
Bridging Finance, recoupable
loans and
shared ownership rented
equity loans
7.3
Total
128.5
The following funding arrangements exist in relation to the above loans:
Repayments of mortgage and voluntary housing related borrowings and
recoupable loans are matched by corresponding income. A mortgage loan
funding position exists, in that loans receivable pertaining to mortgage and
voluntary housing are €106.9k less than loans payable at the 31 December
2020
Interest and principal repayments on the remaining IW related loans at
year-end 2020 of €3.2m are being serviced by the Department.
All loans to fund land acquisitions (including assets/grants) are fully
serviced on an interest and principal basis with the exception of affordable
housing bridging loans and pre 86 index linked loans with a total balance at
31 December 2020 of €6.69m.The affordable housing loans relate to
borrowings on houses acquired for resale under the affordable housing
scheme. In 2010, 23 houses were allocated to Approved Housing Bodies
under leases for a five-year period. Interest costs on these loans are fully
recoupable from the Department subject to qualifying criteria being met.
8
7 Bank
Refundable deposits amounted to €5.2m at 31 December 2020. At 2019 audit I
recommended that management should consider ring-fencing a sum equal to
the amount of refundable deposits in a separate investment account, as these
sums may have to be refunded to individuals/developers. It is noted that the
Council have ring-fenced a sum of €5m in investments at 31 December 2020,
and transferred this sum from the bank account to Investments, which
substantially mitigates this risk.
Chief Executive's Response
The comments of the auditor are noted and the Council will continue to ring-
fence refundable deposits in a separate investment account.
8 Redemption of Bridging Finance
IW assumed responsibility for balances owing on Local Authority water services
capital projects at 1 January 2014, which amounted to €12.15m. Pending receipt
of this money the Council was granted sanction to borrow €10.4m. This loan
was subsequently redeemed by the Department along with all other water
related HFA borrowings, and the €12.15m was also received from IW.
The Council has effectively been allocated the €10.4m twice, from both the
Department and IW. The Council has notified the Department of this matter. The
Council has ring fenced monies received from the borrowings for €10.4m and
this is appropriately reflected in the AFS. It has sought permission to utilise
these monies to fund other unfunded balances and remaining water services
loans. All efforts should be made to bring resolution to this matter.
Chief Executive's Response
As the auditor has mentioned the Council has notified the Department of this
matter and we expect that it will be finalised in due course.
9 Fixed Assets
9.1 Overview
The Council has €3.53bn in fixed assets. These are further classified in the AFS
as follows:
Operational €473k
Infrastructural €2,988k
Community €11k
Non-operational €59k
9
9.2 Property Management issues
It is acknowledged that significant efforts have been made by the Council to
address property management issues. However, issues still exist, and the
following issues were noted during the audit:
Title deeds did not exist for some assets
The Council identified and brought to my attention a small number of
historic assets in 2020 that had not previously been included in the Fixed
Asset Register in previous years.
Chief Executive's Response
Extensive work has been undertaken in recent years to identify and quantify the
number of properties without title deeds. Although this is now considered to be a
relatively small number of properties, progress is continuing on this and will
continue to advance in 2022.
9.3 Digitised Computerised Land Bank
Mayo County Council are currently creating a digital property register for land
assets. On completion of this, they have informed me that they will conduct a
strategic review of all land assets in 2022. This is welcome and important in
order to maximise potential from the land bank.
10 Capital Account
10.1 Overview
Issues were noted pertaining to the management of the capital account.
Specifically, the following items were noted:
The drawdown of a €15m loan in 2018 was set aside to fund a portion of
the Council's unfunded balances
Additional unfunded balances exist in Mayo County Council at 31
December 2020. It is acknowledged that in some cases these balances
are supported by land assets
Controls and procedures strengthened significantly in recent years pertaining to
the management of the capital account. It is also apparent that significant efforts
have been made in 2020 to fund unfunded balances where possible, however
outstanding issues still exist.
10
Chief Executive's Response
The Council has made significant progress in 2020 in resolving unfunded
balances. The Council is focused on resolving the remaining balances over time
and will continue to work towards reducing these balances as resources allow.
10.2 Mary Robinson Centre
The Council is engaged in a project to transform Victoria House into a valuable
resource for the community. This project is named the Mary Robinson Centre.
The Council have informed me that the funding for the project is €5.6m. The
income sources for this project includes philanthropic funding and community
group funding.
It is important that all monies are received from the above sources in order to
ensure project is adequately funded.
Chief Executive's Response
The project is being developed as a partnership between the Mary Robinson
Centre, NUI Galway and Mayo County Council and discussions in respect of
project funding are ongoing.
10.3 Lands at Cloonagh - Castlebar
The Council purchased land at Cloonagh, Castlebar for strategic development in
2020. The Council should identify a funding source for this land.
Chief Executive's Response
Funding options for this purchase will be considered further in 2022.
10.4 Kiltimagh Velorail Project
Velorail is an activity tourism offering that involves cycling along a closed railway
line on specifically designed four wheeled rail bikes. External funding for this
project included funding for one element of the scheme that was the subject of
two different funding proposals, and a drawdown from two different agencies
amounting to €80k from each agency.
The Council repaid €80k of these monies to the Department as this funding was
now covered by another funding source, and have informed me that they have
conducted a post project review, and implemented procedures to ensure this will
not re-occur. This issue will be examined again during the 2021 audit.
Chief Executive's Response
In the early stages of this project €80k in advance funding was provided from
the Department to Mayo County Council for a specific basic rail bike as part of
the overall Velorail project. Subsequently, a local community development group
identified superior rail bikes with enhanced safety and operational features
11
and successfully applied for funding to a separate agency for them. As a result,
Mayo County Council advised the Department that the rail bike element of the
project was now covered by another funding source and it was agreed that the
amount of €80k from the Department would be returned to them.
11 Defective Concrete Blocks Grants Scheme
The Defective Concrete Blocks Grant Scheme opened for applications on
Monday 29
th
June 2020. This grant scheme applies to the owners of dwellings,
which are damaged due to defective concrete blocks containing excessive
amounts of deleterious minerals, namely mica or pyrite.
To date, Mayo County Council has received 131 stage 1 applications under the
Defective Concrete Block Scheme of which 95 approvals have been granted.
The Government is currently finalising details of this scheme.
12 Procurement and Tendering
12.1 Procurement and Public Spending Code
Mayo County Council is required to publish an annual report setting out how it
complies with the above code. The stated objective of the Code is to ensure the
State achieves best value for the resources at its disposal. In its report
pertaining to 2020, the checklists completed by the Council and result of the in-
depth review showed a reasonable level of compliance with the Public Spending
Code with some areas of improvement noted.
12.2 Purchase of Consultancy services
A review of tendering procedures in Mayo County Council highlighted that the
Council has engaged a firm since 2001 pertaining to software licensing in the
area of financial management within the Council. Payments totalling €148k
(€7.5k per annum approximately) have been made since 2002. This service was
not tendered for.
Chief Executive's Response
Mayo County Council as part of the Local Government Sector uses the common
financial management system Agresso and a specialist report writer/ analysis
software package to compliment the data analytics and reporting. This use
commenced in 2002 following the introduction of the Agresso FMS system and
was procured as a specialist service at that time. Costs incurred in the
intervening years is licencing charges similar to any software package in place.
12
12.3 Expression of Interest for the future use of the Leisure Complex
at Lough Lannagh
Mayo County Council sought expressions of interest for the future
use/arrangements of the Leisure Complex at Lough Lannagh in relation to the
following areas:
Swimming Pool and Toddler Pool
General Purpose Rooms
Gym and Aerobics Studio
Expression of interests resulted in three proposals for management of the above
facility, two related to all areas and one for swim facilities only. The Council
decided that one of the above proposals best fitted its needs. It proceeded to
form a tenancy agreement with this provider alone.
This provider was awarded a tenancy agreement without a competitive tender
for the year ending 15 March 2020.This tenancy agreement was subsequently
extended on three separate occasion without competitive tender to 6 October
2020, 30 June 2021 and again until 31 December 2021. The Council paid this
provider a total of €997k from April 2019 until July 2021.
The Council has agreed to pay the provider a minimum of an additional €160k
until December 2021 without competitive tender. The Council should consider if
the manner in which it dealt with this tenancy agreement represented best
practice.
Chief Executive's Response
Mayo County Council gave extensive consideration to the various models of
operation of leisure facilities and modes of procurement. Given the complexity of
such operations and to finalise a comprehensive and robust request for tender it
was deemed necessary to obtain accurate operational data over a 12 month
period. In this context expressions of interest were sought, and a short-term
tenancy agreement was put in place with the view to procuring a longer term
service contract thereafter. The COVID-19 pandemic emerged and interfered
with the intended process. The service provider’s contract was extended to
enable the service to continue during the pandemic as it was impossible to
tender under the uncertainties that COVID-19 presented. In addition to providing
normal services when restrictions allowed the provider adapted under lockdown
periods to sustain services by introducing and delivering services online. This
was a unique circumstance for Mayo County Council during unprecedented
times unlikely to reoccur again. Consideration is now being given to the future
management and operation arrangements for the facility.
13
13 Local Authority Companies
13.1 Westport Leisure Centre Limited
The audit was completed prior to 31 March 2021, and financial statements
included in appendix 8 of Mayo County Council’s AFS.
In 2020, the Council advanced Westport Leisure Centre €305K towards wages.
At year-end, the Westport Leisure Centre owed approximately €110K to the
Council.
There is regular reporting to management on financial and non-financial
activities.
Chief Executive's Response
The comments of the auditor are welcomed, and the Council will continue to
work with the external auditors of its associated company and to ensure that the
audits of these companies are carried out in a timely manner.
14 Development Contributions
14.1 Development Contributions
A review of deposits and development contributions identified the following:
The Council should design, maintain and update a Part V register for all
planning permissions approved after 1 September 2015 in accordance
with the new reporting structure introduced by the Department.
The Development Contribution Scheme from 2004 is accounted for on an
accrual basis. The review of the Development Contribution Scheme 2004
is required to be undertaken no later than 5 years after its adoption. A
review of this scheme is now due.
The Council should formalise policies and procedures for management of
refundable deposits
Chief Executive's Response
A Part V register is in place for new Part V’s and the review of Part V’s back to
1st September 2015, is underway. With regard to the review of the Development
Scheme, a review will be undertaken, commencing in 2022. A review of policies
and procedures for management of refundable deposits is underway.
14
15 Planning & Strategic Infrastructure
15.1 Housing Estates
The changes introduced in planning legislation during 2008 allowed developers of
unfinished housing estates, the majority of homeowners on the estates or the
management companies set up therein, the power to require local authorities to
take such estates in charge. Compliance with the aforementioned legal
requirements could result in significant future expenditure being incurred by this
Council in bringing these estates up to the required standards under the conditions
of the respective granted planning permissions.
Management have represented that the Council have in excess of 54 files (1212
houses) pertaining to the taking in charge of estates that require additional work to
be carried out. Some of these files relate to formal requests from developers or
residents for the Council to take them in charge. The Council have represented
that whereas the majority of these will require some work to be carried out on
them; a large number would not be designated as unfinished housing estates.
The additional work to be carried out on the above estates, along with their
management, could represent a significant financial cost to the Council
Chief Executive's Response
Provision for the additional cost of the taking in charge of these estates will be
provided in future Council budgets, should funding circumstances allow.
16 Governance and Propriety
16.1 Overview
Corporate Governance comprises the systems and procedures by which an
entity is directed or controlled. It is the responsibility of the Chief Executive to
ensure the sound system of financial management and internal processes are in
place.
16.2 Internal Audit
Since 2015, the Council's internal audit function has been outsourced. The
number of days attributed to internal audit activities under the outsourcing
arrangement is 70. Given the scale, diversity and complexity of the Council
activities I consider this may be insufficient for internal audit activity.
Internal audit issued three reports in 2020 and account has been taken of them
in the conduct of this audit.
15
Chief Executive's Response
The Council tendered for the provision of Internal Audit Services and have
appointed Crowley’s DFK. A work programme, which was approved by the Audit
Committee, has been agreed. Crowley’s DFK have concluded a number of
reports and we will continue to keep this function under review in the context of
our workforce planning and available resources.
16.3 Risk management
Risk management continues to be embedded into the Council's activities. The
Risk Officer, Head of Corporate Services, has a direct reporting line to the
senior management team.
The Risk Register reports risks by Directorate. Risks are categorised into
operational, financial and reputational. Each risk has a weighted score having
regard to impact and likelihood with accompanying control action and frequency
e.g. weekly checks, monthly checks. Risks are assigned to a Risk Owner. The
Risk Register was not approved by the senior management team in 2020.
The Audit Committee reviews risks at its meetings. The ISO 31000 Risk
Management was last updated in 2018. Work is progressing to ensure that all
sections are aligned to the updates.
Chief Executive's Response
The Council notes the recommendation of the Auditor in relation to the Risk
Register and will ensure that it is reviewed on a quarterly basis with any updates
approved by the senior management team.
16.4 Data protection
The EU General Data Protection Regulation (GDPR) provides a single,
harmonised data privacy law for the European Union and was directly applicable
from 25 May 2018. Public bodies, whose activities have a commercial
comparative in the private sector, are subject to fines and potential court cases
seeking damages in the event of an infringement. As such, County Councils are
subject to the above.
The Council appointed a full time Data Protection Officer from January 2018.
Mayo County Council has put in place a Data Protection Policy and Privacy
Statement designed to ensure compliance with the provisions of the Data
Protection Acts and the General Data Protection Regulation (GDPR).
Although work has been conducted in this area, the Data Protection Officer has
identified a significant body of ongoing work which is necessary in order to
maintain and enhance compliance with the legislation.
16
Chief Executive's Response
Additional training across the organisation and resources will be assigned to
deal with this work. A review of the Data Retention policies will also be
commencing in 2022.
16.5 Staff returns under Ethics Act
Section 171 of the Local Government Act, 2001 requires those to whom Section
167 (1) of the Act applies typically council members and senior staff to submit
an annual declaration to the nominated Ethics Registrar. Statutory Instrument
No 582/2002 set the last day of February as the return date for these forms.
The responsibility for completion of the ethics return rests with the Councillor or
staff member for whom the Council deemed the legislation applicable.
Five staff returns were not received on or before the statutory deadline of 28
February 2021.
Chief Executive's Response
A follow up with all staff with outstanding returns will be undertaken 2 weeks
prior to the statutory deadline and will be brought to the attention of senior
management for follow up.
Acknowledgement
I wish to record my appreciation for the courtesy and co-operation extended to
audit by the management and staff of the Council. I would like to acknowledge
the assistance of all the Council staff in facilitating this audit. I would like to
thank the Chief Executive, the Acting Chief Executive, the Head of Finance, the
Acting Head of Finance and in particular the Management and Financial
Accountant’s and all the finance staff. I would like to particularly acknowledge
the assistance of the audit liaison officer and IT support staff for their assistance
with this process.
_______________________
Ray Lavin
Principal Auditor
15 October 2021
Department of Housing, Local Government and Heritage
gov.ie/housing
