Galway Bay fm newsroom - City officials have warned the Amenity Grants Scheme is not a slush fund for residents' associations.
The matter has been raised at the city council where councillor Niall McNelis said he knows of some associations who have built up a war-chest from the scheme.
Councillor Colette Connolly asked how many of the applications are audited on an annual basis.
The meeting was advised that all such schemes are subject to audit.
Terms and conditions stipulate that the groups are required to retain evidence of expenditure such as invoices and receipts.
Sinn Fein councillor Mark Lohan was one of many in support of the scheme stating he had full confidence in the people who run the associations.
104 residents associations will share almost 24 thousand euro under this year's funding round for community initiatives which improve the local environment.
Funding is awarded on a sliding scale with grants from €150 to €350.
