Tullamore Leisure Ltd is insolvent according to audit report

THE latest statutory audit report for Offaly County Council carried out by Local Government Auditor Fiona Clancy has revealed that Tullamore Leisure Limited is insolvent.

The audit which was completed in May 2024 states that the principal activity of this company is to hold and maintain a company leisure centre in Tullamore on behalf of the Council.

According to the audit, Offaly County Council has confirmed that it will not seek repayment of grants so long as the terms of the lease entered into 14 years ago between the company and the Council are met.

The Council has also undertaken to provide the financial support necessary to enable the company to continue its operations for the foreseeable future.

The company generated a profit of €32k in 2023 which was attributable to an increase in the grants received and a reduction in the subvention payable to the operator in the year.

The company has agreed to waive its right to rent under the Management License Agreement until 2027. At the balance sheet date, the company's liabilities exceeded its assets by €146k.

The auditor states that ''as this company is a 100% subsidiary of the Council, consideration should be given to reflecting this liability in the Council’s AFS [annual financial statements] in accordance with the Accounting Code of Practice.''

€45k is owed by the company to the Council since April 2018. This company is required to provide audited accounts on an annual basis to the Council in order to apply for grants.

Every local authority is required to publish an annual report, for the National Oversight and Audit Commission setting out how it complies with the Public Spending Code (PSC). The stated objective of the PSC is to ensure the State achieves the best value for the resources at its disposal. The PSC report for 2023 was completed by Internal Audit in May 2024.