In this section:





Financial Statement

Financial Overview

Total expenditure on capital and revenue services in 2002 amounted to €90.4m (2001 €87.0m). Of this €42.8m. (2001 €38.1m) was spent on revenue services and €47.6m (2001 €48.9m) was spent on capital services. Both figures indicate a very high level of activity during the year and the €47.6m spent on capital services is an indication of the Council’s ongoing commitment to position Sligo and the North West region to have a good quality of physical, social and recreational infrastructure and a satisfactory range of ancillary services.

Prompt Payments Act

The council’s policy is to process payments in accordance with the provisions of the Act.

Financial Management System

Much work continues to be done on the development of the financial managements systems in the local authorities.

As part of Better Local Government a major program was put in place to ensure maximum efficiency and effectiveness in local authorities. In relation to the finance function this involved enabling it to provide a more professional role in the management of its finances.

The Department of the Environment and Local Government introduced a new financial management system (FMS). This involved the introduction of a full double - entry system of accounts operated on the accruals principle which replaced the traditional approach of preparing accounts on a receipt and expenditure basis. The old system was an outdated, single entry, cash based system which contained a number of drawbacks. It is also proposed to introduce a new costing system to adequately generate information on the true cost of providing a service.

These systems will provide the financial information necessary for enhanced planning and decision making. They will also offer the opportunities for enhanced efficiencies and value for money through the automation of predominately manual processes and increased systems integration. Phase 1 of the FMS (Agresso) rolled out in April 2001 and concentrated on the purchase to pay cycle and stock incorporating creditors and accruals. Phase 2 of this new financial management system - Accounting for Income and the take on of Debtor balances is being implemented during April - June 2003.

The structure of the Annual Financial Statement (AFS) has been changed to bring it into line with modern reporting formats and structures. The notes to the accounts will support the two main schedules that now form the financial accounts (the Revenue Account Statement and Statement of Balances). All of the remaining schedules that form part of the existing format of the AFS will now be included as appendices.

These changes both to the format and content of the AFS for 2002 are as follows:

A limited form of asset accounting relating to purchased assets was introduced in 2001 following the implementation of the new system Agresso. This is now being extended. The current target from the Department is to have the AFS for 2003 prepared on an accrual basis, incorporating a balance sheet that will include all assets both historical and current. The Capital Account will be de-aggregated and shown under various assets, liabilities and reserves in the balance sheet.

  Revenue Account Capital Account Totals
  2002 € 2001 € 2002 € 2001 € 2002 € 2001 €
Expenditure 42,798 38.067 47,648 48,862 90,446 86,929
Receipts 42,776 35.669 44,577 47,689 87,303 83,388
Surplus(Deficit) -72 -2,368 -3,071 -1,173 -3,143 3,541
Opening Balance -1,987 381 -1,067 106 -3,054 487
Closing Balance -2,059 -1,987 -4,138 -1,067 -6,197 -3,054

Revenue Account-Adopted Estimates Programme Groups € Expenditure % Adopted Estimates €
Housing and Building 3,541 8 4,067
Road Transportation & Safety 16,774 39 15,187
Water & Sewerage 3,785 9 3,420
Developmental Incentives & Control 2,458 6 1,954
Environmental Protection 6,441 15 5,897
Recreation & Amenity 2,480 6 2,457
Agriculture, Education,Health & Welfare 2,927 7 2,603
Miscellaneous 4,392 10 39,298
Total 42,798 100 39,298

Sources of Funds-Revenue Account 2002 € 2002 % 2001 € 2001 %
Local Government Fund 11,204 26 8,151 23
Other State Grants 17,047 40 14,920 42
Goods/Services 10,528 25 8,539 24
Rates 2,468 6 2,266 6
Urban Change 1,479 3 1,823 5
Total 42,726 100 35,699 100

Sources of Funds-Capital Account 2002 € 2002 % 2001 € 2001 %
Local Government Fund        
Other State Grants 26,446 59 33,250 70
Goods/Services        
Rates        
Urban Change        
Borrowing 11,046 25 10,640 22
Transfer from Revenue 663 2 429 1
Redemp. Housing Loans 1,940 4 983 2
Other Receipts 4,482 10 2,387 5
Total 44,577 100 47,689 100

Sources of Funds-Total 2002 € 2002 % 2001 € 2001 %
Local Government Fund 11,204 13 8,151 10
Other State Grants 43,493 50 48,170 58
Goods/Services 10,528 12 8,539 10
Rates 2,468 3 2,266 3
Urban Change 1,479 2 1,823 2
Borrowing 11,046 13 10,640 13
Transfer from Revenue 663 0 429 0
Redemp. Housing Loans 1,940 2 983 1
Other Receipts 4,482 5 2,387 3
Total 87,303 100 83,388 100