Governance Reform

2014 Act Reforms

Part 7 of the 2014 Act provides for a range of changes in local authority governance arrangements.  Elected members are given an enhanced policy making role.  This applies in relation to a number of areas, including economic development and enterprise support, stronger oversight of powers and policy implementation with increased obligations on the executive, relative to the elected members.

The office of chief executive of each of the new local government areas was established.  The existing county managers could be appointed chief executive.  There will be a single chief executive for the newly merged county.

The role of local authority’s Strategic Policy Committees are strengthened.  Provision is made for changes in local authority audit arrangements and a National Oversight and Audit Commission was established.

Municipal districts are established at sub-county level outside of Dublin.  The councillors for the municipal district perform particular reserved functions in respect of their district.  All Town Councils were dissolved and incorporated into the relevant counties for all purposes.

The municipal districts consist of specified local electoral areas determined by ministerial order for the purpose of the 2014 local elections.  The members elected for the areas are to be known as municipal district members.

Part 8 of the legislation provides for the financial relationship between the county and municipal district level and the functions of the municipal district members in relation to the budgetary process.

Chief Executive

The chief executive replaces the role of county and city manager. The chief executive has duties to assist in the formulation of policy by the council and to comply with the council’s directives where the elected members have authority to give them.  They must support implementation and account to the council for it.

The elected members may decide on the appointment of the chief executive on the recommendation of the public appointment service following a selection process.  The process is to recommence when the public appointment service nominee is not appointed.

The chief executive must have regard to the views of elected members expressed at meetings of the council or municipal district members and committees and in written response to draft such new amended policy.

Elected members may request reports by the chief executive on actions taken and planned in exercise of his functions.  It may review implementation of action.

Duties of Chief Executive

It’s the duty of the chief executive to carry out lawful directions of the elected members or joint body for which he is chief executive in relation to the exercise and performance of reserved functions of the local authority or joint body.

It is the duty of the chief executive to advise and assist elected the council, joint bodies and to

• assist the corporate group policy, each Strategic Policy Committee and Local Community Development Committee within its administrative area as regards the exercise and performance
• by the council of its reserved functions,
• by the Strategic Policy Committee or Local Community Development Committee of its functions in relation to the reserved functions of the local authority and as regards any matter or thing in relation to such exercise or performance or
• in respect of which the council, corporate policy group, Strategic Policy Committee or Local Community Development Committee requests the advice and advice or assistance of the chief executive and he shall have regards to such advice or assistance.

The same principle applies to the municipal district members when exercising reserved functions.

Relationship with Members

Reserved functions set out in schedule 3 to the Act may be performed in respect of each municipal district by the members concerned.  Reserved functions listed in Part 3 of Schedule  14A must be performed by the elected members of the entire authority.Provisions regarding meetings, procedures, members, committees, expenses and ethics apply with modifications to meetings and actions of the municipal district members.

The former power of the elected members to direct, be manager in relation to planning matters is removed.  The power to direct decisions involving provision of goods, services, finance or other assistance may no longer be the subject of directions by the elected members.Amendments were made to the procedure in relation to exercise of the remaining powers to direct the council executive to take particular actions.

For the purpose of  supervision by the elected members of functions conferred on the council by law, the chief executive shall, when requested, report on the actions taken and planned to be taken to carry out the directions of the elected council (or joint  body) in relation to the exercise and performance of the reserved function.

Following consideration of the above report or a management report, the council may by resolution, adopt a statement indicating that it is of the opinion that the actions proposed by the chief executive are insufficient for the purpose or are not sufficient to secure efficient discharge of such functions.  The resolution shall state the reasons for the opinion.

Within 14 days of the adoption of a statement, the executive is to provide a response indicating the changes, if any, to the actions he proposes to take.  Where he considers it warranted, he has to indicate whether in his opinion the policy of the council requires review and amendment.  The chief executive is to advise on the review of any policy, or implementation when requested by the elected member.

Reporting

On or before the seventh day of each month and such other date in each month as is determined by resolution of the council, the chief executive is to prepare a report, known as the management report, in relation to the performance of his executive functions during the preceding calendar month, including implementation of policy or other matters required by the council in the exercise of its reserved functions and the provision of services by the council.  A copy of the management report is to be sent to each member of the local authority.

The Minister may prescribe the form and content of the management report, by regulation.  They may co-ordinate, the management report with such other reporting requirements in any other legislation.  It may prescribe elements of the management report, including information to be provided quarterly on such other basis as may be specified.

Information and Support

The chief executive is obliged to assist the council and municipal district members, the Corporate Policy Groups, Strategic Policy Committees and Local Community Development Committee.  The  chief executive is obliged to report on the implementation of policy determined by the elected members.  Any council members not satisfied with the report,  may by a resolution adopt a statement outlining the reasons for their view.

Within 14 days of such resolution, the chief executive must provide a comprehensive response indicating what new actions are to be taken and why no alternative course is available.  The elected members may request the chief executive to advise on the review of policy or implementation of policy on foot of this report.

The Chief executive is obliged to provide information to the council and municipal district members, Strategic Policy Committees and Local Community Development Committee.  There is to be a monthly management report prepared for the members by the chief executive in relation to the performance of  executive functions, implementation of policies and other matters required by the council in exercise of its reserved functions and provision of services.

Budget and Audit

The legislation provides for new audit procedures and regulations. The local authorities are required to establish audit committees within three months of taking office.

The functions of the audit committees are provided for.  The Minister may make regulations regarding membership, meetings and reports of the audit committee.

The Minister may by regulation set out a budgetary format and process to formulate a local authority budget.The district members are given a role in the budgetary process.The Minister may make regulations to change in the budgetary time tables.

NAOC

The National Oversight and Audit Commission is established.  It is to be independent in the performance of its functions.  Its functions include review of local government performance in fulfilling national, regional and local obligations in comparison to performance indicators.

It must oversee financial performance, implementation of national policy including public-sector reforms.  It must support the development of best practice.

The Minister or another Minister in respect of his relevant functions may request the NOAC to prepare a report.  It sets out the methodology to be followed in preparing, submitting and publishing reports.  The chief executive is to prepare within 28 days, a receipt of the relevant NOAC report, an implementation plan setting out how the issues raised are to be a responded to.  It is a reserved matter for the elected members to adopt the implementation plan.

Local government bodies have a duty to provide information requested to the NOAC.  The NOAC may publish its intentions to prepare a report and request submissions from the public.

These are to be considered when preparing the report. Provision is made for eligibility, disqualification and tenure of members of the NOAC.   The NOAC may hold office for two periods not to exceed five years.