DONEGAL County Council
management has rejected suggestions that the local
authority is insolvent.
The Council's chief executive, Seamus Neely, was
responding to recent audit figures showing that the
organisation is running at a deficit of €17.7
million.
He said while the audit figures are accurate there
was an "inaccurate interpretation of aspects of the
report particularly in relation to comments around
the financial solvency of the Council".
"It is factually incorrect to suggest that any
business whether public or private sector and which
happens to have a revenue deficit at the end of a
particular year in its balance sheet is insolvent.
"This misrepresents the position of any such
business to its stakeholders including in the case
of Donegal County Council, its elected members, its
employees, its customers (and) those businesses that
provide goods and services to the Council, amongst
others," said Mr Neely.
"In this context I can give full assurance to all of
the stakeholders of the Council of fullest
confidence in the ongoing financial management of
the organisation and reject any notion or suggestion
that the organisation is insolvent or any
connotations associated with such a term."
Mr Neely said he was "pleased to report" that the
provisional figures for the year-end position had
improved by some €785,000 in respect of the County
Council alone and as a result of the merger with the
town councils and on a once-off, exceptional basis,
by a further €2.045 million.
He said this would see the 2013 deficit reduced by
some €2.83 million to less than €15 million.
He said the Council’s financial statement also
included a credit position on its specific revenue
reserve, amounting to some €3.375 million at the end
of 2014. "When netted off against the general
revenue deficit this €3.375 million would reflect a
net deficit position of approximately €11.6
million," Mr Neely added.
He said he was confident the Council's approach to
bad debt is "fair and equitable". |
