Local authorities are to be made more accountable for the money they spend under new financial standards published by Minister for the Environment John Gormley.
The Financial Management Reporting in Local Government report sets out compulsory procedures for financial control and reporting, which must be implemented by local authorities from the end of this year.
The procedures relate to the content of financial reports, the introduction of three-year financial plans, delegation of responsibility for financial reports and financial training for both staff and councillors.
The report from the value for money unit of the Government's local authority auditing service was written following an audit of the financial management of seven local authorities of varying size with annual budgets ranging from less than €50 million to €800 million.
The authorities surveyed were Dublin City Council, Cork County Council, South Dublin County Council, Kilkenny County Council, Kerry County Council, Longford County Council and Naas Town Council.
The audit found that all local authorities had devolved responsibility for budget control throughout the organisation and all had annual financial reviews but also found there was "scope to enhance the quality and content of these reviews".
Only four of the seven authorities reported on financial matters to councillors on a formal basis and two authorities reported to councillors "as considered necessary".
Three local authorities had formal written procedures for financial reporting.
Only one had a financial management training programme for staff and none had training in financial management for councillors.
