Audit report: Most government entities fail to meet government cuts target

Most entities failed to reach the government’s budgetary target of reducing arrears in 2011 by 10%, the Auditor General says in the annual audit report tabled in Parliament this evening. The following are highlights of the report as detailed by NAO: - Letters of Comfort and Bank Guarantees reached €1,142 million (against €1,037 in 2010). These constitute Contingent Liabilities for government; and· substantial excess of actual over the budgeted figures of various items of Expenditure were once again reported; in some instances identical to previous year. - From the verification of Arrears of Revenue Returns forwarded to NAO, it transpired that most entities failed to reach Government’s budgetary target of reducing arrears in 2011 by 10%. Audit Reports and Management Letters prepared by Local Government Auditors revealed that a number of weaknesses and concerns reported in previous years still prevail, and have been included again in this Report. The following concerns were also noted: · For the second consecutive year, no audit opinion was expressed on the Financial Statements of one Council, due to the various material shortcomings encountered.· Seventeen Local Councils and two...