Finance Function:

The Finance Function of Cobh Town Council is headed by the Town Clerk who reports directly to the Director of Services.
The Town Clerk is responsible for the following:
-Financial and Management Accounting - including preparation of Estimates and Annual Financial Statement
-Budgetary control
-Financial reporting, back up and advice
-Financial returns, internal and external
-Management of long and short term finances.
-Investment and borrowing
-Payroll
-Creditors Payments i.e. Accounts payable
-Development/improvement of financial systems
-Insurance/Risk Management

Local Government Acts, 1941- 2001
Local Government (Financial Provision) Acts 1978-1997
Local Government (No 2)Act, 1960
City and County Management (Amendment)Act, 1955
Holiday (Employees)Acts, 1971-1991
Worker Protection (Regular Part Time Employees)Act, 1991
Payment of Wages Act, 1991
Prompt Payment of Accounts Act, 1997
Local Government (Superannuation)Act, 1980

The revenue budget which the local authority is required by law to prepare each year is called the ‘Draft Local Authority Budget. The preparation of the Budget is the responsibility of the Director of Services, and the detailed work of compiling the financial information is carried out by the Town Clerk and Administrative Staff.

The format of the estimates documentation is prescribed in the ‘Public Bodies Orders’ and is standard to all local authorities. It is based on eight programme groups with associated sub programmes groups.

HOUSING AND BUILDING
ROAD TRANSPORT AND SAFETY
WATER SUPPLY AND SEWERAGE
DEVELOPMENT INCENTIVES AND CONTROLS
ENVIRONMENT PROTECTION
RECREATION AND AMENITY
AGRICULTURE, EDUCATION, HEALTH AND WELFARE
MISCELLANEOUS

The cost of maintaining current services, implementing any desired improvements and introducing any new items is estimated. The income from State grants, charges for various services and other miscellaneous sources is estimated.

The deficiency in funds is then met from commercial rates. The rateable valuation multiplier (formerly the rate in the pound) is determined by dividing the deficit by the effective commercial valuation for the Urban Area.

The adoption of the estimate is a reserved function of the elected members. A statutory Estimates meeting must be within the prescribed period (as notified to the Council by the Department of the Environment and Local Government), each year to consider the Book of Estimates for the following financial year.The Local Authority must publish notice of this meeting, giving at least seven days clear notice in newspapers circulating in the area.

The Book of Estimates must be circulated to the Elected members at least seven days before the Statutory meeting and is available for purchase by any member of the public at Cobh Town Council Offices.

The Members are not bound to adopt the estimate of expenses as prepared by the Director of Services, but may amend it at their own discretion.

The meeting may be adjourned for a period not exceeding 21 days from the first statutory meeting.At the final statutory meeting the Members must:
- Adopt Estimate of Expenses
-Determine rateable valuation multiplier
-Adopt rate of charge for each service proposed

Failure by the Council to adopt an Estimate could result in abolition of the Council and its replacement by a Commissioner appointed by the Minister of the Environment and Local Government.

The annual accounts of a local authority is called the “Annual Financial Statement”. The accounting structure for these accounts is set out in the “Public Bodies” Order 1946 (as amended) and is very different from the format of private sector accounts.
These accounts are designed to ensure accountability of the Local Authority. The Local Authority accounts are prepared on a receipts and expenditure basis while private sector accounts reflect income and expenditure.
Only amounts actually receipted by year end are reflected in the annual financial statement, while in the case of the expenditure a period is allowed for payment of “unpaid bills” which are outstanding at year end and subsequently paid early in the next year, to be charged into final accounts.
The Annual Financial Statement is set out in the same programme group format as the Estimate of Expenses and gives details of receipts and expenditure on each service. These accounts do not contain a standard balance sheet as used in private sector accounting, but the statement of Balances gives the net cash position of the local authority. In addition the accounts contain a statement of debtors and a statement of creditors at year end along with various other explanatory statements.

All accounts for goods, services etc., are processed having been approved for payment by the certifying officer within the Council. Tax is deducted from payments as required by law.

The above Act became effective on 2nd January, 1998 and sets time limits for payment of accounts by local authorities to suppliers and contractors etc., and makes the local authority liable for interest on late payments.

Where payment is late the supplier is entitled to be paid interest, at a rate set by the Minister, from the date the payment was due to the date the account is paid. In the case of an incorrect invoice, interest becomes due 10 days after receipt of correct invoice, if later than prescribed date. The supplier cannot waive this interest.

Penalty interest is not payable re disputed goods if agreed between parties. Supplier may seek arbitration re disputed goods and purchaser must agree to arbitration decision.

Arrangement of insurance cover for Public Liability, Employers Liability and all other relevant risks is the responsibility of the Town Clerk and the Staff of the Town Council. Insurance claims are dealt with by our insurers and by the Town Clerk.