*€1.6m was the expenditure on Ennis 2040 in 2023, primarily on three projects, two of which have been paused.
A POLICY to maintain proper controls, governance and procedures in Clare County Council as recommended by an external audit has not been implemented and has missed its timeline for completion.
In a twenty page external audit completed by local government auditor, Joanne Greene of Clare County Council’s annual financial statement for 2023 it was revealed that the local authority paid €8m for two pieces of land adjacent to the Cliffs of Moher which elected members were unaware of and €1.9m for lands in Bunratty where a complete file was not maintained.
As per its annual financial statement for 2023, the Council recorded an interest in eleven companies, an increase of four from 2022, at the time of the external audit, the audited financial statements were not complete for nine of these companies.
This prompted Ms Greene to suggest, “the Council should adopt a guideline policy on governance requirements for all its subsidiary and associate companies to ensure that appropriate corporate governance procedures are in place. Despite the Council’s efforts, this process is not yet finalised. It is the responsibility of the Council to implement and maintain proper controls and procedures to ensure propriety and proper governance are in place for all companies”.
“Obtaining fully audited financial statements for our subsidiary companies in time to align with the current financial reporting year continues to be a challenge for the auditing firms,” said former Council Chief Executive, Pat Dowling in response. He said draft guidelines on governance requirements for all subsidiary and associate companies are in place, “the body of work is ongoing with a timeline for completion in quarter one of 2025”.
This timeline was not met. Speaking at last week’s meeting of the Council, interim Chief Executive, Carmel Kirby said the process had “started” and that a report would come before the elected members when it was drafted. “I can assure members and the public there is good governance across Clare County Council and all its directorates”.
One such subsidiary is the Ennis 2040 DAC which is 100 percent owned by the Council. In her audit, Ms Greene noted, “the Council finances Ennis 2040 by borrowing funds and then releasing the money to the company when it’s needed. The Council records all cash advanced to Ennis 2040 as a debtor, while the firm records an equivalent amount as a liability”.
In 2023, Ennis 2040 carried out works on the Council’s behalf totalling €927,000, total expenditure for the end of that year stood at €1.6m, “the majority of this expenditure was in relation to Francis Street, Abbey Street and Harvey’s Quay projects,” the audit noted. Two of these three projects, proposals to build on car parks in Abbey Street and Harvey’s Quay were paused in March 2025.
The audit found that in 2023 a further €408,000 was incurred by Ennis 2040 for works undertaken on behalf of the Council but the works were funded from the Council’s own resources. “By the end of 2023, the Council had advanced €2.2m to Ennis 2040 by way of a cash advance, this was recorded as a long-term debtor in note three of the AFS. Ennis 2040 had a corresponding liability included in their 2023 draft accounts. In 2022, a loan of €5m was drawn down by the Council. At the end of 2023, €1.2m of this had not passed over to Ennis 2040 and the corresponding liability is included in accounts”.
Dowling said Ennis 2040 was in “its early stages of delivery” and that the €10m loan “will be repaid from the success of the project implementation. As projects within the Ennis 2040 strategy moves through planning and into construction, the remainder of the loan will be drawn down as required”.
Expenditure for the county library project which officially opened in November 2024 hit €17m while at the time of the external audit it was listed as €16.1m, this increase will have to see the Council “provide additional financing from their own resources,” warned Ms Greene if the figure went above the €16.1m.
“Assessment of Council exposure if any to additional costs will be reviewed at final account stage which will fall due in January 2025 and available for the auditor to review during audit 2024,” Dowling commented.
Also in the county town, the external audit outlines that the Ashline Housing Project on the Kilrush Rd had a final budget of €11.2m agreed by the Department of Housing. The project was to redevelop an abandoned traveller accommodation site and adjacent site to construct forty housing units with access roads. “Works commenced in late 2020 at a budget cost of €10.5m and was substantially complete by June 2022. However due to agreed charge orders, ex-gratia payments for COVID closures, inflation, supply chain delays and utility costs, the original budget increased”.
