Committee Reports > List of Committees > Dáil > 1974 > Committee of Public Accounts > Report - Appropriation Accounts 1970 - 1971

REPORT

PART I—GENERAL OBSERVATIONS

MINUTES OF THE MINISTER FOR FINANCE DATED 24th MAY, 1973, AND 11th OCTOBER, 1973

REPORT DATED 23 JULY, 1969

Fees for professional services in connection with building projects.

1. The Committee notes from the Minute of the Minister for Finance dated 11 October, 1973, that the National Prices Commission, the Restrictive Practices Commission and the Examiner of Restrictive Practices have functions in regard to the fees paid for professional services in connection with building projects. The Minute states that these bodies had been in consultation to examine how best this question might be approached and that they hoped to reach conclusions fairly shortly. The Minister has promised to keep the Committee informed of developments.

Difficulties in recruitment of civil service staff.

2. The Committee notes that improved recruitment procedures and recent organisational changes in the Minister’s Department are having satisfactory results in reducing the number of vacancies but that the continuing expansion in all sectors of the civil service and the growth in alternative employment opportunities available for school leavers and university graduates have aggravated the recruitment difficulties. It also notes that the Minister is satisfied that normal organisational structures, coupled with the constant expansion and diversification of the service, already provide the advancement prospects necessary; that it is hoped that the ending of the marriage bar for women civil servants will reduce wastage, especially in the clerical assistant grade and that the progress now being made towards equal pay should also make a significant contribution towards a reduction of losses of trained staff. The Committee is aware of changing patterns of employment recently and wishes to be kept informed by the Departments of the Public Service and Finance of the situation in this regard. It proposes to keep the situation under review and requests statistics showing the number of vacancies in the various entry grades of the civil service and the number of applications therefor.

REPORT DATED 12 NOVEMBER, 1970

Question of duplicate control of certain activities of the Department of Defence.

3. The Committee will await the further communication which the Minister has promised on the subject of duplicate control of certain activities in the Department of Defence.

Deficits of Voluntary Hospitals.

4. The Committee notes that the Departments of Health and Finance agree in principle with its suggestion that Exchequer moneys should in future be issued directly to voluntary hospital authorities out of ordinary subhead moneys rather than indirectly out of grant-in-aid moneys. It notes that the matter is at present under consideration including the question whether legislative changes will be required. It will await further information.

Capital developments by University College, Dublin, at Celbridge, Co. Kildare.

5. The Committee notes that the Minister has been informed that as yet no decision has been taken on the appraisal by the FAO of the plans for the further development of the Faculty of Agriculture at University College, Dublin, including the Lyons Estate. It further notes that this project is also being examined by the World Bank which has been asked to provide funds for the development. The Committee will await the outcome.

Current expenditure on comprehensive schools.

6. The Committee notes the views expressed by the Department of Education on the suggestion that the particulars of current expenditure on comprehensive schools and also of income, if any, might be best supplied in the form of a receipts and payments account for each school. Before considering this matter any further the Committee would welcome the views of the Department of Finance, as the control agency for the control and management of the public finances.

REPORT DATED 13 JULY, 1972

Appendix 2A.

Grants-in-Aid.

7. The Committee notes from his Minute dated 24 May, 1973, that the Minister for Finance is largely in agreement with its recommendations for strengthening the control over public funds involving payments by way of grant-in-aid. In regard to the issue of such funds in advance of Dáil approval it accepts that circumstances might arise which would require the urgent expenditure of public funds in advance of such approval but it suggests that it is only in very exceptional circumstances this course should be followed. The Committee does not accept that there might be justification for exempting expenditure of certain grant-in-aid moneys from audit by the Comptroller and Auditor General and draws attention again to its recommendations in Paragraph 81 of its report of 13 July, 1972.

The Committee notes with approval the intention of the Minister for Finance to impose additional conditions in regard to the control of grant-in-aid moneys in any particular case where he considers that these are warranted.

Recovery of Moneys.

8. The Committee has been informed by the Minister for Finance that officers of his Department, with the assistance of the Department of Foreign Affairs, made several visits to Germany for the purpose of interviewing a number of persons, who, there was reason to believe, could be of assistance in tracing and possibly recovering some of the missing moneys. The Minister has stated that the enquiries made by his officers have established certain facts which have been reported to the Attorney General and that as matters of German as well as Irish law arise in connection with these reports, advice is being obtained as to the steps which should now be taken.

The Committee notes that when these matters have been brought to a conclusion it will be informed of the result.

REPORT DATED 28 JUNE, 1973

Financial rationalisation in relation to State Funds.

9. The Committee notes that the Minister for Finance has accepted its suggestion to have the funds under the control of Departments, other than the Department of Finance, examined with a view to determining whether there is any scope for financial rationalisation in relation to them and that he will inform the Committee of the result in due course.

Audit of Accounts of State-Sponsored Bodies.

10. The Committee has been informed by the Minister for Finance that he considers it desirable that some system of Parliamentary review of State -sponsored bodies should be developed as quickly as possible but that there are serious practical difficulties in devising a suitable form of review and that any arrangements must take into account the outcome of the investigations into the setting up of the Aireacht-Executive structure which are now going on in a number of Departments. The Committee has also been informed that the Minister is arranging to have the matter submitted to the Government.

The Committee notes that in formulating arrangements for a review it is envisaged that consultation will take place with the State-sponsored bodies and the Comptroller and Auditor General on the question of the feasibility and desirability of having the accounts of all the bodies to be reviewed audited by the Comptroller and Auditor General.

The Committee wishes to be kept informed of developments.

Payments to Special Regional Development Fund (Grant-in-Aid).

11. The Committee notes the decision of the Minister for Finance that the functions of the Special Regional Development Fund in assisting projects of an industrial nature will be transferred to the Industrial Development Authority in the case of grant applications and to Fóir Teoranta in the case of requests for reconstruction finance. It notes that a co-ordinating committee for industrial services (C.C.I.S.) was set up some years ago under the aegis of the Department of Industry and Commerce with representation from the major State agencies concerned with industry, and that this Committee concerns itself with improving co-ordination between State agencies, eliminating unnecessary overlaps and ensuring that interested parties are as well briefed as possible on the various State services and incentives. The Committee also notes that the question of liaison between the various State agencies is receiving attention in connection with the investigations which are being carried out into the establishment of the Aireacht-Executive framework in certain Departments. Having regard to the efficiency and success of the existing scheme, the Committee is concerned that the effectiveness of the county development teams would be maintained. It repeats the observation contained in its Report of 12th November 1970 that: ‘It is of the essence of this type of activity that the local authorities should be closely involved with expenditure and the development teams consist of the county manager, the county engineer, the Chief Agricultural Officer, the Chief Educational Officer and the Chairman of the county council in question. The Fund is administered by the Minister for Finance who employs the teams’ secretaries’. The Committee points out that its former observations were directed to the payment of grants from the Special Regional Development Fund for a type of activity which was clearly within the sphere of Bord Fáilte Éireann. The Committee wishes to emphasise that no criticism was implied of the Central Development Committee, the County Development Teams or the County Development Officers and, further, is of opinion that the retention of these institutions and their staffs is essential to the efficient use of the Special Regional Development Fund. The Committee wishes to be kept informed of developments.

Payments in respect of overtime

12. The Committee has been informed by the Minister for Finance that the filling of vacancies in the Meteorological grades in the Department of Transport and Power is now satisfactory but that recruitment to the Technical Officer grades in the Radio Service is still a problem and that as a consequence, overtime working in these grades on a wide scale is still necessary. The Committee notes that the Minister has accepted its recommendation that this matter be kept under consideration.

Accommodation grants to hotels and guest houses.

13. The Committee is glad to note that, in accordance with its recommendation, Roinn na Gaeltachta will in future include in the notes to its Appropriation Accounts a list of supplementary grants paid by it to hotels and guesthouses.

PART II—PARTICULAR ACCOUNTS

SECONDARY EDUCATION

14. The Comptroller and Auditor General drew attention to a case in which a sum of £3,000 paid towards the expenses of a study of post primary building costs was charged to a subhead which provided specifically for grants to meet charges on building loans (Subhead I.1.). The Accounting Officer explained that as the payment arose after the estimate had been prepared it had to be put into some subhead and it was decided to charge it to Subhead I.1. as it related to an effort to reduce building costs. The Committee considers that, while the amount was relatively small, the charging of a payment to a subhead which did not make provision for it contravenes an important principle of Government accounting. It holds the view that the expenditure involved should have been accounted for specifically, if necessary, in a special subhead opened with the sanction of the Minister for Finance.

VOCATIONAL EDUCATION

15. The Comptroller and Auditor General drew attention to the fact that running costs of Regional Technical Colleges, as well as the cost of some equipment, was charged to the subhead which provided for grants to Vocational Education Committees (Subhead A) although a special Subhead (I.1) had been opened in the estimate to meet the running costs of these colleges and provision had been made in Subhead I.2 for capital expenditure on these colleges. The Accounting Officer informed the Comptroller and Auditor General that provision for teachers’ salaries, administration and maintenance costs of Regional Colleges had been included in Subhead A and that the provision in Subhead I.1 was used mainly to put the Vocational Education Committees in funds to meet expenditure on equipment.

The Committee must insist that provision to meet the running costs of the Regional Technical Colleges, including teachers’ salaries and administration and maintenance costs, should be made in full in the subhead opened for that purpose and that payments to meet these costs should be charged to that subhead only. Likewise, expenditure in respect of capital equipment for these colleges should be charged in full to the subhead providing for capital expenditure. Any departure from this course leads only to laxity in accounting.

The Committee notes the assurance given by the Accounting Officer to the Comptroller and Auditor General that for 1971-72 separate accounts will be kept for the Regional Technical Colleges and that the grants to meet operational costs and capital costs will be paid from separate subheads.

The Comptroller and Auditor General also pointed out that sums amounting to £360,000 were issued from Subhead I.1 (Running Costs) to a number of Committees towards the end of March, 1971, to meet expenditure on equipment and that he was not satisfied that the sums so issued had been fully expended by 31 March, 1971. These moneys were specifically voted by Dáil Éireann to meet matured liabilities in the year ending on that date and any balance unspent in the year should have been surrendered to the Exchequer. The Committee takes a serious view of any departure from this long established and fundamental principle of government accounting.

PUBLIC WORKS AND BUILDINGS

16. The Committee was informed that changes in accommodation requirements in national schools under erection were being notified belatedly to the Commissioners of Public Works by the Department of Education thereby resulting in delays in the completion of the works and, no doubt, in additional expenditure on the revision of plans and bills of quantities. The Accounting Officer explained that the Commissioners were the executive agency of the Department of Education in this matter and that they provided school accommodation in accordance with the Department’s instructions.

He added that the Department of Education tries to assess accommodation needs by carrying out surveys on the projected number of school-going children in an area, having regard to local development, housing, factories, etc., after consultation with local authorities. He confirmed that, despite some exceptions, procedures were working satisfactorily. The Committee sees the problem as basically one of effective communication, aggravated by delays between the date of sanction and the date of tender, and feels that this is an aspect which needs close attention by all the parties concerned, i.e. the Department of Education, the Office of Public Works and the Local Authorities.

17. The Committee was informed that a cost/benefit study had been commenced in 1970-71 the results of which are expected to be of assistance in considering the merits of carrying out arterial drainage in the future; and that the study represents a scientific assessment of the benefits of drainage and is being carried out in conjunction with the Department of Agriculture and Fisheries, the Department of Finance and An Foras Taluntais. It covers one catchment drainage scheme in progress and one about to commence. The Accounting Officer informed the Committee that the results of the study in the case of one scheme, namely, the River Maigue, were expected to be known at an early date. The Committee would like to be kept informed on this matter.

18. The Comptroller and Auditor General drew attention to the agreement governing the lease of the College of Science to University College, Dublin, under which provision is made for the payment to the Commissioners of Public Works of a proportion of the repair, replacement and operating costs of the installation at the Central Heating Station which services Government Buildings and other adjacent State buildings including the College of Science. A contract for the replacement of the boilers in the Station was completed in 1967 at a cost of £65,248. The Comptroller and Auditor General had inquired regarding the amount assessed as payable by University College, Dublin, towards this capital expenditure. On examination, the Accounting Officer informed the Committee that a sum of £11,146 had been assessed as the capital contribution due from University College, Dublin, towards the cost of works carried out by the Office of Public Works at the Station. This sum has not been paid as the college authorities are pleading that it should be a lot less because of the likelihood that they will vacate the College of Science sometime. The Committee considers that as this is a matter between a State agency and an educational institution in receipt of State subventions, it should be brought to a satisfactory conclusion without any further delay.

Appendix 7.

19. The Committee discussed with the Accounting Officer the extent to which native fuel is being used in the heating of buildings erected for State occupation. He explained that while it was still Government policy to use native fuel as far as possible the use of such fuel is not always feasible for technical reasons. At the request of the Committee he furnished information regarding the type of fuel being used or to be used in buildings recently completed or in course of construction. The information discloses that 49 projects completed since 1 August, 1972, and 66 under construction in December, 1973, incorporate heating installations designed to use fuel as follows:— electricity—94, oil—12, gas—5, and native fuel (turf or anthracite coal)—4.

SAVINGS BANK FUND DEPOSIT ACCOUNT

Appendix 8.

20. The Comptroller and Auditor General drew attention to a transaction which involved an exchange of sizeable blocks of Government stocks between an Assurance Company and the Deposit Account at prices agreed between the Company and the Department of Finance. As there was no documentation available in the Department to indicate the considerations which gave rise to the transaction or the basis on which the agreed prices were reached the Comptroller and Auditor General found it necessary to write to the Accounting Officer for this information. In the course of his examination and in a memorandum subsequently submitted by him to the Committee the Accounting Officer explained at length the circumstances which gave rise to the transaction and he stated that these circumstances are unlikely to arise again. The Committee is concerned that satisfactory documentation to support this transaction was not available to the Comptroller and Auditor General. While it may be normal as the Accounting Officer states for deals in stocks to be arranged over the phone nevertheless the Committee considers that a transaction such as this involving public moneys should be fully documented.

In considering the correspondence between the Comptroller and Auditor General and the Accounting Officer in relation to the transaction referred to in the previous paragraph the Committee were concerned that although the Comptroller and Auditor General sought information from the Accounting Officer on 6 April, 1971 and issued a number of reminders, a reply was not furnished to him until 18 April, 1972.

The Committee expects that requests by the Comptroller and Auditor General for information would be dealt with promptly and it considers that the delay in furnishing the information sought in this case was entirely unwarranted.

GARDA SÍOCHÁNA

21. The Committee noted that expenditure in respect of wireless equipment is accounted for as a miscellaneous item under Subhead B—Travelling and Incidental Expenses. The Accounting Officer was questioned as to whether it would not be more appropriate to make provision for this expenditure under a separate head or to include it under Subhead D.—Clothing and Equipment. He agreed that there was no special reason why it could not be better identified. The Committee recommends that consideration be given to the matter in the preparation of future estimates.

VIVION de VALERA

Chairman.

28th February, 1974.