Committee Reports > List of Committees > Dáil > 1975 > Committee of Public Accounts > Interim and Final Report - Appropriation Accounts 1971 - 1972

APPENDIX 17.

EXPENDITURE ON SCHOOL BUILDINGS—ACCOUNTING PROCEDURES

An Cléireach,

An Coiste um Chuntais Phoiblí.

At the proceedings of the Committee on 27th June in connection with the Appropriation Accounts for the Vote for Primary Education Mr. J. R. Whitty of this Department undertook to provide a memorandum on the accounting procedures in relation to expenditure on school building. A memorandum for the information of the Committee is attached accordingly.

Accounting Officer,

Department of Finance.

7 November, 1974.

Memorandum for the Public Accounts Committee.

Accounting Procedures in relation to expenditure on school buildings.

1. The control exercised by the Department of Finance on the building programme of the Department of Education differs with regard to (a) aggregated building programmes such as primary schools, secondary schools and universities and (b) “one-off” building projects such as teacher training colleges, the National College of Physical Education, Limerick, the Remand Home at Oberstown etc. The Office of Public Works is responsible for the provision of primary schools and the remainder is the responsibility of the Building Unit of the Department of Education. This Unit, which includes a professional element, was set up in 1966 because of the urgency involved in the provision of additional student places at second level following upon the introduction of the free education scheme.

2. Once a total capital budget for education is agreed within the total capital programme, this budget is allocated by the Department of Education over the different areas in accordance with its own priorities subject to prior specific Finance sanction in regard to “one-off” projects and in regard to primary and second level schools involving a change in the normal standard of accommodation for such schools, for example, a large increase in the standard floor area per pupil. The authority delegated to the Building Unit with regard to aggregated building programmes is analogous to that which has been delegated for many years in relation to primary schools under the Office of Public Works. Neither the Department of Education nor the Office of Public Works has authority to exercise virement between subheads without Finance sanction.

3. The cost of each school is controlled within the Department of Education on a standard cost per square metre basis with allowance for special contingencies. This system of controlling costs on a price per square metre basis with its corollary of close scrutiny of design so as to eliminate waste space and provide a high ratio of educational activity area to ancillary area was initiated by the Building Unit in 1966 and applied to the building projects for which it was responsible in the second and third education levels and adopted by the Office of Public Works for the larger primary schools. The introduction of this cost planning and control system has meant substantial savings without affecting the quality of educational building. The cost limit introduced in 1966 was £59.20 per square metre. This limit was increased to £66.60 per M² in 1970, to £70 in 1973 and to £75.35 in 1974. The national building price index showed an increase of 65% between 1966 and 1973. In the same period the cost limits for school building increased by 18% and allowing for price variation clauses, actual costs increased by about 23%. Prior to the change in the control system circulation and other ancillary areas often constituted 100% or more of the teaching area; this has now been reduced to 70% thus effecting a substantial saving. In passing it might be mentioned that comprehensive and community schools as well as Regional Technical Colleges were included in two sets of proposals for a World Bank loan. In each case the plans, specifications etc. were drawn up by the Building Unit subject to its own norms and standards and were passed after detailed scrutiny by the professional advisers of the Bank.

4. The Department of Education do not enjoy quite the same measure of delegated authority with regard to “one-off” projects. These projects are designed to fulfil particular needs within the education system and in each case prior specific authority must be got from the Department of Finance. When seeking Finance sanction the Department of Education outline the need for the institution, the course to be provided and an outline of schedule of accommodation together with an estimated cost. Once these have been agreed the Finance sanction will specify the total capital sum that may be expended on the institution. In relation to projects financed wholly from State funds excesses arising because of increases in material costs and wage rates from the date of placing the contract may be met by the Department of Education without further recourse to the Department of Finance. However, any material change in the outline specification involving the provision of extra space or more costly amenities would require the prior sanction of the Minister for Finance.

Department of Finance.

7 November, 1974.

Mr. C. H. Murray,

Accounting Officer,

Department of Finance.

The Committee of Public Accounts at a meeting today, which was called to discuss the delay in the completion of its business in connection with the Appropriation Accounts 1971-72, took note of the fact that information sought by it on 27th June 1974 from a Department of Finance representative in relation to expenditure on school building was not received until 7th November 1974.

The Committee requests your observations on the delay in furnishing the information.

Cléireach an Choiste.

17 Nollaig,1974.

An Cléireach,

An Coiste um Chuntais Phoiblí.

I refer to your letter (D36/72) of 17th December concerning the delay in furnishing information to the Committee of Public Accounts in relation to expenditure on school building which a former officer of this Department said that he would provide.

The preparation of the note for the Committee required consultation with the Department of Education and the Office of Public Works. During the course of these consultations the Finance officer concerned was assigned to another Department.

I regret the delay in furnishing the note for the Committee.

Accounting Officer,

Department of Finance.

20 December, 1974.