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Council responds on use of purchasing cards by staff

By Chris Ashmore

SENIOR Donegal County Council figures have defended the local authority’s use of purchasing cards in light of some media reports that cast the Council in a bad light.

Raising the matter at a plenary meeting of the Council in Lifford this week, Chief Executive Officer John McLaughlin expressed his satisfaction with the use of purchase cards by employees and insisted that the Council had “a good check system” and that he was “happy with it.”

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Explaining the background, he pointed out that an internal audit had been carried out and the report had been published on its website back in May “so the public can see what we do”.

He said that In August, a story on the topic appeared in a newspaper “without us having a right to reply, which was not helpful to us.”

He continued: “It was quite selective, and did not tell the full story.”

This, he maintained, could mislead the general public and would leave people thinking poorly of the Council and there were reputational matters too.

He told councillors there was a need to “have the full story out there.” He outlined how the Council uses purchasing cards, how there are electronic systems in place to track transactions, how purchases need to be approved by line managers and how there are internal controls. A report on the matter, compiled by the Council’s Director of Finance, Richard Gibson, was circulated to councillors.

He stated that “the Council uses Purchasing Cards as part of the efficient management of Council business. For context, the Council spent almost €390m in 2024. Expenditure on Purchasing Cards was in the sum of €1,582,596.32 which is approximately 0.4 per cent of total Council expenditure. Importantly, the Internal Auditor found no evidence of financial wrongdoing.”

He highlighted how purchasing cards “are an efficient way of doing business for the Council. Council workers requiring, for example, materials to repair houses or on roads jobs, can purchase low-value goods and services without the need for excess paperwork.”

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“Around 250 members of staff have a Purchasing Card. For the eight-month period January to August 2024, there were 7,203 transactions accounting for a spend value of €991,067. Average expenditure per transaction was €138. The vast majority of these transactions occur in local shops/businesses, which is good for the County’s economy.”

All unreconciled transactions at year-end have since been reconciled and the Council is currently updating its policy.

He concluded: “Council management is satisfied with the use of purchasing cards as a means of doing Council business and will be encouraging increased use of purchasing cards where appropriate to continue to deliver effective and efficient services to the public.”

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