A recent audit by the Local Government Audit Service has exposed significant financial management challenges within Cork County Council, revealing the council’s complete failure to collect derelict site levies in 2023 and highlighting systemic issues in administrative processes.
The comprehensive audit found that not only did the council collect no money from the derelict site levy last year, but it also failed to issue over €200,000 worth of invoices due to a “lack of a centralised approach”. By the end of 2023, the council was left with €362,000 in outstanding levies.
Under current regulations, local authorities must maintain a derelict sites register, with property owners in urban areas obligated to pay a 7% levy based on the market value of their land. However, the audit indicates that collection of this levy remains problematic across many parts of Ireland.
In 2023, Cork County Council issued invoices totaling just €28,000, with no amounts collected during the entire year. An additional €235,000 in potential levy invoices were not even issued, further compounding the financial oversight.
Responding to the audit, the council has initiated steps to address these shortcomings. They have centralized the management of derelict sites registers across eight municipal districts, bringing 110 properties under systematic review. A new process for escalating unpaid levies has been established, including potential court proceedings against defaulters.
The audit also highlighted other significant challenges facing the council. A €57 million project to convert public lighting to energy-efficient LED luminaries has experienced substantial delays. By August 2024, only one-quarter of the project was completed, with total spending reaching €28.8 million. Management attributes these delays to pandemic-related disruptions and difficulties in staff recruitment and retention.
Additionally, the council saw a notable 30% increase in staff overtime and allowances, reaching €14.45 million. The council has indicated that a review of these allowances is currently ongoing.
The audit underscores a critical point made in its overview: “Public bodies being accountable to citizens is increasingly important in today’s environment to allow trust and confidence to be built upon.”
As local government continues to face scrutiny, Cork County Council’s response to these audit findings will be crucial in demonstrating its commitment to financial transparency and efficient public resource management.