Committee Reports > List of Committees > Dáil > 1975 > Committee of Public Accounts > Interim and Final Report - Appropriation Accounts 1972 - 1973

APPENDIX 2.

MINUTE OF THE MINISTER FOR FINANCE ON REPORT, DATED 23 JANUARY, 1975, OF THE COMMITTEE OF PUBLIC ACCOUNTS ON THE APPROPRIATION ACCOUNTS, 1971-72

PART I—GENERAL OBSERVATIONS.

Paragraphs 4, 5, 8, 11, 12, 15, 17 and 18.

These paragraphs do not appear to call for comment.

REPORT DATED 23 JULY 1969.

Paragraph 1—Fees for professional services in connection with building projects.

The consultant’s report—Professional Fees in the Building Industry by Professor J. Parry Lewis—was received by the National Prices Commission in December, 1974. It was published in full by the Commission on 6 March, 1975 as an occasional paper. All interested parties were invited to submit not later than 18 April, 1975 their comments on the analysis and conclusions as set out in the occasional paper. The Commission has considered all comments received and it intends to publish its conclusions and recommendations in a monthly report in the near future.

Paragraph 2—Difficulties in recruitment of civil service staff.

The improvement in recruitment to certain General Service Recruitment Grades has continued. Vacancies in those grades on 1 April, 1975 were as follows:

REPORT DATED 12 NOVEMBER 1970.

Paragraph 3—Question of duplicate control of certain activities of the Department of Defence.

In accordance with the Committee’s wishes, every effort is being made to expedite the examination of the recommendations of the Public Services Organisation Review Group relating to the Department of Defence. The Committee will be informed of developments.

REPORT DATED 13 JULY 1972.

Paragraph 6—Grants-in-Aid.

The Minister notes the Committee’s comments and, in particular, its view that the fact that a grant-in-aid is subject to scrutiny by the Comptroller and Auditor General does not relieve the responsible Accounting Officer from satisfying himself that the moneys so voted have been expended strictly in accordance with the intentions of Dáil Éireann. As the Committee is aware from the existing rules governing grants-in-aid, the Accounting Officer’s responsibilities are confined to

(a) satisfying himself that the accounting system and organisational arrangements of the grantee are adequate to ensure the proper administration of the money;

(b) arranging to obtain in due course a copy of the audited accounts of the grantee for the year in which the issue is made;

(c) where the grant-in-aid is for a specific purpose, arranging to obtain a separate account of the expenditure;

(d) where the grant-in-aid represents the greater part of the total income of a grantee, arranging that the books and accounts of the grantee will be made available, if required, for examination by the Comptroller and Auditor General;

(e) notifying the grantee of the purposes and conditions under which the money will be issued to ensure that the grantee is fully aware of his responsibility in connection with the subsequent disposal of such moneys.

It is only where it is clear from the face of the accounts of the grantee that, notwithstanding the above procedures, moneys have not been spent in accordance with the intentions of Dáil Éireann that the Accounting Officer would be in a position to take up the matter with the grantee.

Paragraph 7—Recovery of moneys.

The Attorney General has consulted legal advisers abroad concerning the steps which might be taken to recover moneys unaccounted for from the £100,000 Grant-in-Aid for Northern Ireland Relief. In accordance with the advice received steps are now being taken to recover certain moneys. The Minister will keep the Committee informed of the position.

REPORT DATED 28 JUNE 1973.

Paragraph 9—Audit of accounts of State-Sponsored Bodies.

As announced in Dáil Éireann by the Minister for Transport and Power on 13 May, 1975, the Government has decided to put down a motion for a resolution in Dáil Éireann and Seanad Éireann establishing a Joint Committee of the Dáil and Seanad to review the activities of State-sponsored bodies engaged in trading or commercial operations. The Minister for the Public Service is also considering proposals for similar arrangements in relation to the non-commercial State-sponsored bodies.

Paragraph 10—Payments to Special Regional Development Fund (Grant-in-Aid).

Having regard to the Committee’s observations in previous Reports, a detailed examination of the activities of the Central Development Committee and the county development teams and of the operation of the Fund has been carried out by the Department of the Public Service. In the light of this examination and, in particular, of the views expressed by the representatives of the Departments primarily involved and of the county development teams, it has become apparent that the issue will have to be considered in the wider context of the distribution of the functions of Government at subnational levels.

In the meantime, while Foir Teoranta will deal with requests for industrial reconstruction finance, it has now been decided that the Fund may continue to grant-aid projects of an industrial nature. Close consultation takes place with the Industrial Development Authority in all such cases and the Central Development Committee will continue to pay particular attention to the need to ensure that there is no overlap with other agencies.

Paragraph 13—Changes in accommodation requirements in National Schools.

The Committee’s views on the need for proper planning and co-operation between the agencies involved are endorsed by the Minister and have been communicated to the Commissioners of Public Works and the Department of Education.

Paragraph 14—Cost/benefit study of arterial drainage schemes.

The Committee will be furnished with the report when it is completed. It is expected that the report will be finalised shortly.

Paragraph 16—Use of native fuels for heating of buildings erected for State occupation.

The views of the Committee as regards the wider use of native fuels (turf and anthracite coal) have been noted. Because of the recent changes in relative costs, there is now a tendency to choose solid fuel installations in preference to electricity or gas where this is feasible.

PART II—PARTICULAR ACCOUNTS.

Paragraph 25, 27 and 31.

These paragraphs do not appear to call for comment.

Paragraph 19—Garda Síochána.

As requested by the Committee, the attention of Accounting Officers is being directed to the need for strict compliance with the assurance given by the Minister for Finance in 1931 to the effect that if, in exceptional circumstances, it is proposed to award a pension not definitely covered by statute or existing authority, no payment will be made until an Estimate expressly indicating the extra-statutory nature of the pension has been presented to the Dáil and passed.

Paragraph 20—Roinn na Gaeltachta.

The Minister agrees with the Committee’s observations, in particular, that the use, even on a temporary basis, of grant-in-aid moneys for purposes other than those for which they were voted, is to be deprecated. The Minister notes that the Committee accepts the Accounting Officer’s statement that the £275,000 grant-in-aid capital moneys issued were not intended for purposes other than those for which they were voted but it is not satisfied that this fact was clearly brought to the attention of Gaeltarra Éireann. The Minister has been advised by the Accounting Officer that the Departmental covering minute issued with the payment in question was in the same form as that issued with similar previous payments and that there was no departure from the normal procedure in this instance.

However, the Minister in requesting the Department of the Gaeltacht to remind Gaeltarra Éireann that grant-in-aid moneys should not be used for purposes other than those for which they are voted.

The principle referred to by the Committee—that moneys voted for the service of a particular year, which are not required for the service of that year, should be surrendered to the Exchequer and should not be issued to meet expenditure in a subsequent year—is subject to qualification in the case of grants-in-aid. As indicated in a note prefaced to the annual Estimates for Public Services, any amount remaining unexpended out of the sums issued from a grant-in-aid subhead will not be liable to surrender. Arrangements are now in operation to ensure that issues to Gaeltarra Éireann are sufficient only to meet immediate requirements and that large balances are not allowed to accumulate.

Paragraph 21—Stationery Office.

The discounts allowed in the Rank Xerox contract are related to the volume of copying in Government Departments; usage by other agencies of the Public Service is not a factor.

The substantial growth in photocopying, which is not a phenomenon confined to the Civil Service, has been brought about by the introduction of high-speed copiers capable of producing good quality copies and requiring little or no expertise to operate. This has encouraged the use of such photocopiers in place of slower, more expensive and errorprone manual systems and also made it more efficient and more economical to do certain work on the copiers which formerly would have been done on stencil duplicators or by typing. Strict control over the usage of copiers is maintained at a number of levels. Direct control is generally exercised by a key-operator or by an officer of supervisory grade. Usage is monitored by Departmental Organisation and Methods Officers who, on the basis of their specialised knowledge and training in this field, generally set the guide lines to be followed by the users. In addition, Departments are urged by way of official circular to ensure economy in copying.

Information available to the Department of the Public Service indicates that the number of photocopiers in use in the Civil Service rose from 100 in March 1970 to 181 in August 1972. In November 1974 the figure stood at 282. The number of those supplied by firms other than Rank Xerox was 79, 146 and 223 respectively. In money terms those firms’ share of Government copying rose from 8% in 1970/71 to 15% in 1971/72 and to 17% in 1972/73. In 1973/74 their share had risen to 23%.

The Department of the Public Service regularly reviews the pricing structures of copying machines available on the Irish market. Each new copier on the market is critically examined and an assessment is made, on a continuing basis, of the supplier’s ability to provide a maintenance service and to maintain supplies of consumables.

Paragraph 22—Valuation and Ordnance Survey.

Contributions being paid by local authorities in respect of the expenses of the annual revision of valuations could be increased only by legislation. When appropriate legislation regarding valuation is being considered, account will be taken of the desirability of increasing these contributions.

Paragraph 23—Breaches of Accounting Principles.

The Minister notes the concern expressed by the Committee in regard to the increase in recent years in the breaches of Government accounting principles, particularly by the Department of Education. He endorses the Committee’s views on the importance of strict compliance on all occasions with these principles which are fundamental to Parliamentary control over Voted moneys. As suggested, these views are being brought to the attention of all Accounting Officers.

The Minister is informed that the necessity for compliance with Government accounting requirements has been strongly impressed on all officers of the Department of Education. In so far as the Department of Finance is concerned, the Committee is reassured that the Department will not condone any breach of accounting principles.

The whole question of civil service training in Government accounting has been under active consideration for some time by an inter-departmental committee on which the Office of the Comptrollr and Auditor General is represented. On the recommendation of the inter-departmental committee a pilot two day course for administrative officers in accounting principles was held recently. The course was regarded as quite successful and it is proposed to arrange further similar courses and to include sessions on accounting principles in existing training courses, where appropriate. Training will be directed at grades up to and including middle management. The question of improving on the job training for accounts branch staffs is also being examined.

Paragraph 24—Issues under the Taisci Stáit Teoranta Act, 1963.

The Minister agrees generally with the Committee’s views regarding the passage of the necessary legislation in this case.

Paragraph 26—Agriculture—Córas Beostoic agus Feola.

The Minister endorses the Committee’s concern at the delay of Córas Beostoic agus Feola in submitting its accounts for certification by the Comptroller and Auditor General. He wishes to point out that there was no delay in his Department in according the necessary sanctions. The need for prompt clearance of accounts and the arrangements requisite to secure this have been the subject of discussions between officers of the Departments of Finance and Agriculture. Following a recent direction from the Department of Agriculture, Córas Beostoic agus Feola have given an assurance that in future all accounts will be finalised with the least possible delay.

Paragraph 28—Primary Education: Delegated Authority.

Delegated authority always applied to expenditure on aggregated building programmes for Vocational Schools which are financed from the Local Loans Fund. The extension of delegated authority relates to the building programmes for secondary schools which commenced in 1966 and for community schools which started in 1970. If sanction were required for each individual school, whether for a new school or a scheme of improvements, individual sanctions would be required for upwards of 300 cases annually. This would represent a considerable increase in the workload and could not be handled without additional staff.

Delegated authority similar to that involved in the Department of Education’s aggregated building programme has not been extended to other departments. However, the provision for building, equipment and furnishing of national schools has been transferred from the Vote for Public Works and Buildings to the Vote for Primary Education. The delegated authority, noted by the Committee, which the Office of Public Works has enjoyed for many years in this respect, has also been transferred to the Department of Education.

With regard to the Church of Ireland Training College, on 11 November, 1974 the Department of Education set out in a minute to the Department of Finance the final position and sought authority to pay the excess expenditure involved. The Department of Finance sought further clarification of a number of items in a letter of 21 February, 1975. Clarification of these items has now been received by the Department and authority to pay the excesses involved has been accorded to the Department of Education. The Minister agrees with the view of the Committee that the Department of Education exceeded their delegated authority in this instance: he has advised the Department of Education accordingly and stressed the necessity of securing his Department’s prior sanction in any other such cases.

Paragraph 29—Primary Education—St. Patrick’s College, Maynooth.

The Minister has been advised by the Department of Education that steps have been taken by the Accounting Officer to ensure that breaches of the type commented on in this paragraph will not recur. In addition to the specific instructions already given to all section heads as to the necessity for strict adherence to the principles of Government accounting, extracts from the Committee’s Report have been sent to all officers concerned.

Paragraph 30—Secondary Education—Use of Suspense Account in respect of prefabricated building units.

The scheme for bulk purchasing of mobile pre-fabricated classrooms was terminated in 1974. The Department of Education have expressed regret at the excessive duration of the suspense account and have indicated that the account will be cleared in the current year.

Paragraph 32—Reformatory and Industrial Schools—Accounting for a course in child care.

The Minister agrees with the Committee’s view that the balance of the grant which remained unspent at the end of the year should have been surrendered to the Exchequer.

It is understood that an audited statement of accounts and balance sheet in respect of the course has now been forwarded by the Department of Education to the Comptroller and Auditor General. The Department has arranged to obtain an audited statement of account in regard to future courses in child care. Arrangements have also been made for Departmental officers to examine the grantee’s books of account to ensure that payments are in order and the other requirements of Government accounting are met.

Paragraph 33—Universities and Colleges and Dublin Institute for Advanced Studies.

The Minister for Finance has been advised that the Department of Education, in deference to the wishes of the Committee, will make provision for total site work development and landscaping at the Plassy site in Limerick under one subhead and will include it in full in the capital costs of the National Institute for Higher Education.

Paragraph 34—Transport and Power—Interest payment by CIE.

The Minister agrees with the view of the Committee and is bringing it to the attention of the Department of Transport and Power and CIE. The interest amounting to £422,951 in respect of the half year ended 31 March, 1972, payable to the Exchequer by CIE, became due on 1 April, 1972. Payment was, however, temporarily withheld by CIE because of serious cash difficulties which arose for the Board in the year 1972/73. These difficulties arose mainly because the Board was not permitted to increase its fares and rates in the year 1972/73 pending completion of an investigation by the National Prices Commission, and also, to a lesser extent, because of a shortfall in the Board’s grant provisions in previous years.

To meet the Board’s cash difficulties a Supplementary Estimate for £2.732 million was passed by Dáil Éireann on 28 March, 1973 and the £422,951 due in respect of interest for the half year ended 31 March, 1972, was paid by CIE to the Exchequer on 29 March, 1973.

Paragraph 35—Supplementary Grants to Córas Iompair Éireann.

The Minister notes the views of the Committee. He is of the opinion that, while the Appropriation Act in itself represents necessary and sufficient statutory authority for the issue of supply, it is desirable that special legislation should be enacted, where possible, to vary or modify an existing statutory provision regarding voted moneys. The Minister considers that, where, exceptionally, the enactment of special legislation may not be feasible, a note on the face of the enabling estimate should make it clear to the Dáil that a grant supplementary to a statutory grant is proposed.

GIVEN under the Official Seal of the Minister for Finance

Secretary, Department of Finance.