Committee Reports > List of Committees > Dáil > 1937 > Committee of Public Accounts > Report - Appropriation Accounts 1935 - 1936

REPORT

GENERAL OBSERVATIONS

Minute of the Minister for Finance dated 5th October, 1937.

Payment of Wages to Rural Industry Manageress.

1. The Committee has received an application from the Officer who was Accounting Officer for the Vote for Gaeltacht Services prior to 1st January, 1935, requesting permission to give evidence before the Committee on the expenditure referred to in paragraph 11 of its last Repart. From copies of correspondence between the Department of Finance and the Accounting Officer, which were submitted with the application, it would appear that the Minister for Finance, following the normal procedure in such eases, requested the Accounting Officer to furnish him with any observations he might wish to offer on the transaction. Instead of complying with the Minister’s request the Accounting Officer took the unusual course of making formal application to the Committee for permission to appear before it for the purpose of amplifying evidence given by the officer who had answered for the Vote before the Public Accounts Committee which considered the Appropriation Accounts for the financial year 1934-35. Having regard to the position of Accounting Officers and their responsibility to the Minister for Finance in relation to matters of public expenditure and control of State funds and to the fact that the matter had already been under consideration, the Committee felt that the Accounting Officer was not justified in refusing to comply with the Minister’s request and it accordingly declined to grant his application.

Attendance of Accounting Officers before the Public Accounts Committee.

2. The Committee has noticed in recent years a growing tendency on the part of Accounting Officers to delegate to one of their officials the duty of attending before the Committee and answering for the Votes for which they are responsible. The reasons given for this delegation do not appear in some instances to be satisfactory.

The Committee again desires to point out that the Accounting Officer is personally responsible for the Appropriation Account which he renders on behalf of his Department and that it is part of his duty to appear before the Committee, when requested, to answer for its correctness and explain any matters arising thereon. The personal attendance of the Accounting Officer should, therefore, be regarded as essential, and the Committee wishes to lay down that in future it will not be prepared to agree to any departure from the correct procedure unless the circumstances are wholly exceptional.

Over-Estimation.

3. The Committee desires to comment on the degree of variation between the total estimates and the amount of expenditure disclosed in the Summary appended to the Appropriation Accounts for the year.

The net total of the Supply grants for the Public Services for the year 1935-36 amounted to £28,338,589 and the net expenditure to £26,050,016 18s. 10d. The total amount to be surrendered was, therefore, £2,288,572 1s. 2d., representing approximately 8.1% of the net estimate. £1,457,586 or 64% of the total due for surrender arose on five Votes:

and in a number of other Votes the amount of the unspent grant was high in relation to the Estimates. The Committee wishes again to direct attention to the necessity of exercising the greatest care in drawing up Annual Estimates.

PARTICULAR ACCOUNTS

Public Works and Buildings.

4. The attention of the Committee has been drawn to a payment of £100 to a Quantity Surveyor for preparing bills for a proposed new school the erection of which was not proceeded with. It appears that the normal procedure was not followed under which authority is obtained for the expenditure involved before taking out Bills of Quantities. The Committee considers that in no circumstances should the preparation of Bills of Quantities be proceeded with before the plans for proposed buildings are finally approved and sanction secured for the work of erection.

App. III.

5. A sum of £2,023 6s. 6d. was expended during the year on the overhaul and repair of a steam dredger built about 1905 at a cost of approximately £10,000. The Committee has considered a minute submitted by the Accounting Officer and recognises that in view of the nature of the work of a dredger large periodical expenditure on overhaul and reconditioning is necessary to maintain it in good working order. The Committee, however, thinks it desirable that agreement should be reached between the Department of Finance and the Commissioners on the extent to which expenditure of this kind may be incurred without the Minister’s prior sanction.

App. IV.

6. A case similar to that commented on in paragraph 2 of the Committee’s last Report was considered, and was the subject of a memorandum by the Accounting Officer. It appears that a wooden structure was erected by the Commissioners of Public Works in 1925-26 for the accommodation of the Gárda Síochána at a cost of £1,462 10s. 9d. As the property was no longer required for the Gárda and a satisfactory letting could not be effected it was sold in 1935-36 for £60.

It seems clear that, as in the previous case, the original expenditure was out of proportion to the value of the structure. The Committee was informed that only four buildings of the type were constructed, of which two are still occupied by Gárdaí, and it wishes to emphasise the necessity of taking all possible steps in the future to safeguard the State against possible loss arising from uneconomic expenditure of the kind under discussion.

App. VI.

7. The Committee considered the memorandum submitted by the Accounting Officer on Arterial Drainage Schemes operations carried out by the Commissioners of Public Works and the causes that led to the difference between the expenditure and the amount of the grant provided in Sub-head J (2). The Committee is of opinion that in the light of experience it should be possible for the Commissioners of Public Works to estimate more closely the probable outlay on Arterial Drainage Works and Schemes.

Gárda Síochána.

8. The Gárda Síochána (Designations, Appointments and Discipline) Regulations, 1924, made by the Minister for Justice, with the approval of the Executive Council, under Section 18 of the Gárda Síochána (Temporary Provisions) Act, 1923, prescribe the conditions to be fulfilled by candidates for appointment as Gárdaí. A considerable number of recruits who did not fulfil the required conditions were enrolled from time to time, and it would appear that as they were not admitted to the Force in accordance with the regulations payment to them was irregular. The position has now been rectified by the enactment of the Gárda Síochána Act, 1937. The Committee trusts that in future the regulations will be complied with and that the necessity for covering irregular action by retrospective legislation will not arise.

9. The regulations governing payment of mileage allowances to Inspectors using their own motor cars on official business provide that where the distance travelled in any financial year exceeds a certain mileage payment at a reduced rate is made in respect of the excess. Attention was drawn to the case of an Inspector who, having completed the mileage for which payment could be made at the full rate, engaged hired cars for journeys in respect of which only the reduced rate would be payable if he had used his own car. The Committee recognises that payment for hired cars in these circumstances was not expressly precluded by the regulations, but considers it reasonable to take the view that the mileage rates payable were fixed on the understanding that Inspectors who provided themselves with cars would be required to use them for all official journeys for which the use of motor cars was required or permissible. It is suggested that the possibility of revising the regulations to provide for cases of this kind might be considered.

App. VII.

10. Expenditure amounting to £50, approximately, was incurred in connection with the salvage and repair of a motor boat which was swamped. It appears that as the boat-house was accessible only at certain states of the tide the boat had been left at its moorings. Continued expenditure on the maintenance of the boat-house, in these circumstances, is clearly undesirable, and the Committee will be glad to learn whether steps can be taken to rectify the position.

Circuit Court.

App. IX.

11. The Committee has had under consideration the case of a Court Messenger who had claimed and received payments of travelling expenses for journeys which purported to have been made by rail and cycle, and of subsistence allowance for numerous absences from headquarters. It appears that the claims had been furnished on a hypothetical basis, that the journeys had, in fact, been made in the Messenger’s own motor car, and that subsistence had been paid which was not warranted by actual absence from headquarters. The circumstances of the case have been fully investigated by the Departments of Justice and Finance and both Departments were satisfied that the hypothetical claims were furnished in good faith; as the Messenger had not obtained permission to use his own car for official purposes he felt precluded from charging on a mileage basis. It appears to have been established that the amounts paid over the period in question were less than the amounts payable under the regulations had the claims been based on actual fact. The Committee, however, desires to express the view that the submission of claims which do not disclose all material facts is very irregular.

Primary Education.

12. Students admitted to Training Colleges are required to give an undertaking to adopt the teaching profession and to serve in National Schools for not less than a stated period. In the event of their failure to carry out their undertakings they, and their guardians, become liable to repay the amount expended by the State on their training. Discussions have been proceeding between the Departments of Finance and Education on the procedure to be followed in certain cases, and the Committee will be glad to be informed when final agreement between the Departments has been reached.

13. The Committee has had again under consideration the question of irregularities in the records of National Schools resulting in overpayments to teachers. Proposals for revision of the rules in order to deal more effectively with these cases have been under consideration for some time; the Committee hopes that it will be found possible to bring the revised rules into operation at an early date.

Technical Instruction.

14. Certain engineering equipment required for courses of instruction for teachers was purchased direct from traders instead of through the Post Office Stores Department. It appears that the items in question required expert selection and that the Government Contracts Committee had approved of the proposal to purchase direct. In agreeing with the action taken in this case the Committee wishes to emphasise its view that the regulation for purchasing through the central purchasing departments should be departed from only in very exceptional circumstances.

Science and Art.

15. Attention has been drawn to the fact that expenditure from the account of the Grant-in-Aid for Publications in Irish exceeded the amount available by £452 13s. 1d. The appropriation account did not disclose any excess on the Grant-in-Aid sub-head, but as the amount provided in that sub-head, together with the balance carried forward on the grant-in-aid account from the previous year, was not sufficient to meet the expenditure, the amount provided by Dáil Eireann for this service to the 31st March, 1936, was exceeded.

The Committee recognises that the circumstances in this case were exceptional and that owing to the fact that unanticipated expenditure fell to be met at the end of the financial year it was not possible to obtain additional funds by way of Supplementary Estimate. The Committee desires to point out, however, that the intention of the Dáil in voting a Grant-in-Aid is that it should suffice for all requirements, exceptional as well as normal, and that the use of general departmental balances to meet the excess expenditure as happened in this instance is highly irregular.

Dundrum Asylum.

App. XII.

16. In the Report of the Comptroller and Auditor-General it was pointed out that payment of lodging allowance had been made irregularly to certain married attendants who are not provided with official quarters. The memorandum furnished at the request of the Committee by the Department of Finance (Appendix XII to this Report) indicates that the conditions of service of the five attendants concerned provided for recoupment of the rent actually paid, subject to a minimum payment of an allowance of 5/- a week in each case. It appears that these attendants, following a decision in the Saorstát Courts, ceased to pay rent from 29th July, 1933, but continued to pay rates for the houses occupied, and that the Minister for Finance is definitely of opinion that the allowances should have been reviewed from the date mentioned, and fixed at the minimum of 5/- per week. In fact, rates in excess of this figure were continued up to 27th August, 1936, when the payments were queried by the Comptroller and Auditor-General. The amounts overpaid range from £20 to £32 and total approximately £150.

The conditions of service were, it is stated, accepted in writing and the attendants therefore should have been aware that allowances in excess of those authorised were being paid. In the circumstances, the Committee is in agreement with the view of the Minister for Finance that the overpayments should be recovered.

Superannuation and Retired Allowances.

17. The Committee has had under consideration an award of an annual allowance and a lump sum made to a representative abroad. The officer had not reached the statutory age for retirement, but it appears that his Department had come to the conclusion that the organisation and efficiency of his office would be improved by his removal and in these circumstances an award of compensation under Section 6 of the Superannuation Act of 1909 was made. That section provides for the grant of compensation to any person “retiring or removed from the public service in consequence of the abolition of his office, or for the purpose of facilitating improvements in the organisation of the Department to which he belonged, by which greater efficiency and economy can be effected.” The Committee is not fully satisfied that the circumstances of the present case were such as to justify an award under Section 6.

The amount of the award was also the subject of comment. The officer was provided with free residence, fuel, and light, and the annual value of these emoluments was taken into account in the calculation of the award, although it was stated in foot-notes to the Estimates for his Department that the emoluments were non-pensionable. The Accounting Officer stated that it was felt that exceptional treatment was called for in so far as the officer was being summarily removed from office and his pension, if the emoluments were excluded, would be very small. The Committee cannot regard this position as justifying the increased award. The officer was removed from office and the inference is that because of such removal he is given the benefit of certain emoluments, which benefit would be withheld had he completed a full period of service. The Committee, accordingly, feels that it should express its disapproval of the action taken.

Unemployment Insurance and Unemployment Assistance.

18. Under Section 26 of the Unemployment Assistance Act, 1933, County Borough and Urban Area Councils are required to pay to the Minister for Industry and Commerce in every financial year commencing after 31st March, 1934, certain sums based on the rateable value at the beginning of the immediately preceding financial year of such County Boroughs or Urban Areas. These receipts are accounted for as Appropriations in Aid of the Vote for Unemployment Insurance and Unemployment Assistance.

It appears that the payments made by the local bodies were, in fact, based on the valuations under the Valuation Acts, less deductions in respect of, e.g., Government property, vacant buildings, railway property. The Attorney-General has advised that certain deductions can legally be made, but it seems necessary that a definite agreement should be reached as to what types of abatement are properly allowable and also that the actual amounts deducted under each head should be certified by the Department of Local Government and Public Health.

Office of the Revenue Commissioners.

19. The Committee considered a case in which Customs duty amounting to £700 was remitted without statutory authority. It appears that Section 11 of the Finance Act, 1935, which became operative on 16th May, 1935, imposed a duty of 2/- per cwt. upon rice, rice flour, and rice meal, but excluding any preparation which, in the opinion of the Revenue Commissioners, is made from rice husk. In July, 1935, a consignment of the preparation described as “rice bran” was imported which was found on examination not to be made wholly from rice husk and was consequently liable to duty. Having regard to all the facts of the case, the authority of the Minister for Finance was obtained for the remission of the duty legally payable. The Committee views with some concern the exercise in such circumstances of the discretion to remit extra statutorily a duty so recently imposed by law.

Army.

20. The attention of the Committee has been drawn to the practice of allowing soldiers’ pay to accumulate to their credit. It is pointed out that it involves the postponement to another financial year of the payment of claims which had already matured, and that it affords opportunities for the committing of offences which lead to public loss. In one instance a pay clerk availed of the system to misappropriate moneys belonging to members of his Unit over a period of nearly twelve months before he was detected, and the deficiencies in the accounts concerned had to be made good out of public funds. It is apparent that in this case adequate supervision was not exercised by the responsible pay officer, and the Committee suggests that the laudable object of encouraging thrift among members of the Forces might be attained by some method not open to abuse of this kind. It wishes to reassert the principle that all claims which are ripe for payment in any financial year should normally be discharged in that year.

21. Referring to the grant of sick leave and medical treatment, including sanatorium treatment, to officers of the Forces, the Comptroller and Auditor-General stated that the precise extent to which the combined privileges might be granted in any individual case is not clearly defined, and that a few cases came to notice in which the maximum entitlement under the regulations appeared to have been exceeded. The Committee is informed that a new regulation dealing with this matter is being considered, and it hopes that it will be found possible to fix with certainty therein the extent to which public funds are liable for this service, and the entitlement of the individual officer.

22. The attention of the Committee was drawn to the apparent laxity in the control exercised over expenditure on the provision of hospital treatment for the families of married soldiers. Under this scheme it appears that no age limits have been prescribed for children, and that soldiers’ sons and daughters over twenty years of age have been afforded treatment; nor has any limit en set to the duration of treatment and maintenance in hospitals, which has been provided in some cases continuously for ds up to three years. It would seem that sufficient informa always readily available to verify the claims received spitals. The Committee would have thought that a scheme ind would be subject to rigid control and that the extent tate’s commitments with regard to it would have been efined. As it understands that a regulation to rectify ion will be issued, it wishes to be informed of its pro due course.

Army regulations provide for the issue of pay and allow- to members of the Reserve for the days of their actual ance when they are mobilised for annual training, and this ittee has had under consideration the question of entitle to pay for the days that Reservists are mobilised and bilised The Accounting Officer expressed the view that men who report in sufficient time to be fully equipped and ready to start training next morning are entitled to be paid for the day on which they report. With this view the Committee is in entire agreement, but it notes that a day’s pay and allowances have been issued to men who reported shortly before midnight, though they lived in the locality of the mobilisation centre, and it fails to see how the necessary duties of preparing and equipping men who present themselves at such a late hour could have been completed. The Committee also finds it difficult to reconcile with the regulations the issue of two days’ pay to members of the Reserve who have attended for training for only twenty-five hours; and while appreciating the difficulties inherent in the mobilisation of a large number of men on the same day the Committee thinks that contingencies of this kind should be provided against, and it suggests that the advisability of amending the regulations might be considered.

24. The Committee notes with approval that a definite accounting system has now been established for the technical stores belonging to the Air Corps, and that improved financial control has been provided for. It assumes that no undue delay will arise in connection with the disposal of stores which have been found to be obsolete and surplus to requirements.

In addition to the losses brought to notice in the Appropriation Account a quantity of consumable stores was not accounted for at stocktaking, and the Committee considers it important that all discrepancies of this kind from whatever cause arising should be brought to notice, and that the statement would not be confined to those of a particular category.

Army Pensions.

25. The attention of the Committee has been directed to the case of a claim for pension which had been finally dealt with under the Army Pensions Act, 1932. The Act did not provide for the review of cases of this kind, but the original finding was held to be invalid because the provisions of the Army Pensions Regulations had not been complied with when arrangements were being made for the medical examination of the applicant. Consequently the case was re-opened and the original finding was reversed. The Committee is not concerned with the merits of the individual case, but it notes that in a previous year it had under consideration a somewhat similar comment regarding the effect of incorrect procedure on claims which had originally been refused. As it views with disfavour the possibility that the terms of the Army Pensions Acts could be prejudiced by defects in the Department’s procedure possibly involving increased charges on public funds, it considers that adequate precautions should be taken to secure strict compliance with the requirements of legislation in its application to the investigation of claims.

Agriculture.

26. The Committee was informed that accounts of the trade in cattle carried on by the Department with Germany and Belgium for the period to 31st March, 1935, and for the year to 31st March, 1936, had been prepared and audited under Section 39 of the Slaughter of Cattle and Sheep Act, 1934, but had not yet been presented to Dáil Eireann, and also that an account of the purchase of cattle for canning in the year 1935-36 was in course of preparation. The Committee considers that accounts of this kind should be furnished for audit in sufficient time to enable them, if referred to this Committee, to be dealt with on the examination of the Appropriation Accounts for the corresponding financial year.

App. XV.

27. A problem arising on the administration of the Pigs and Bacon Act, 1935, was under discussion by the Committee. Section 6 provides for the making of an order fixing the appointed day for Part II of the Act and Section 28, which is contained in Part II, provides for the payment by bacon curers of a fee for every pig or carcase presented for veterinary examination. A Price Order was issued by the Pigs Marketing Board directing the collection of a fee of 5d. per pig from 1st October, 1935, on the assumption that the order under Section 28 prescribing the fee would be made. The appointed day for Part II of the Act was, however, deferred until 1st April, 1937, and it was, therefore, not possible legally to prescribe or collect the fee under Section 28 before that date. As, however, the fees had been deducted by the curers from producers under the Price Order made by the Marketing Board, it was decided by the Department that the only possible course was to collect the fees from the curers after adjustment in respect of fees collected under the Fresh Meat Acts. The sum involved is stated to be approximately £4,000.

Although in all the circumstances the Department had no option but to recover from bacon curers the amounts deducted from producers, the Committee feels that the collection of moneys not legally payable is to be deprecated and that the exceptional circumstances of this case suggest that it would be desirable to introduce legislation to regularise the position.

App. XVI.

28. The payment of bounty at less than the statutory rate on certain exports of creamery butter to the Continent by the Newmarket Dairy Co. was under discussion by the Committee, and the Department of Agriculture has submitted a memorandum on the matter. The Company is the property of the State, and the butter was exported pursuant to Trade Agreements which had been entered into by the Government. The rate of bounty payable is prescribed from time to time by Regulations of the Minister for Agriculture made under Section 34 of the Dairy Produce (Price Stabilisation) Act, 1935.

The payment of bounty at the statutory rate would have given the Company a net return greater than the fixed home value, and it was contended that there was no good reason why this course should have been taken. The Committee is, however, of the opinion that the Department of Agriculture was not justified in varying a rate of bounty prescribed by Statutory Order. Payment at the full rate could have been made and the Company required to make a refund of the excess, but if this course was not considered desirable, the Committee feels that an amending Order covering the special payment should have been made.

JAMES M. DILLON,

Chairman.

9 December, 1937.