I invite the Comptroller and Auditor General, Mr. Purcell, to introduce Vote 38, chapters 12.1 and 12.2 and the social insurance fund 2005.
Chapters 12.1 and 12.2 of the annual report of the Comptroller and Auditor General read as follows:
Overpayments
The Department of Social and Family Affairs administers some 50 welfare schemes paid through Vote 38 and the Social Insurance Fund. Expenditure on assistance and insurance schemes was €6.30bn and €5.46bn respectively in 2005.
Table 37, Table 38, Table 39, and Table 40 outline overall expenditure on various schemes over the period 2001 to 2005, and for the same period, the amounts recorded as overpayments, the amounts of overpayments attributed to fraud or suspected fraud and the Department's cumulative record of recovery since 2001.
Table 37 — Scheme Expenditure
|
2001
|
2002
|
2003
|
2004
|
2005
|
|
€m
|
€m
|
€m
|
€m
|
€m
|
Social Insurance
|
3,517
|
4,198
|
4,649
|
5,081
|
5,460
|
Social Assistance
|
3,983
|
4,940
|
5,460
|
5,821
|
6,296
|
Total
|
7,500
|
9,138
|
10,109
|
10,902
|
11,756
|
Table 38 — Number and Amount of overpayments recorded for recovery (Numbers shown in brackets)
|
2001
|
2002
|
2003
|
2004
|
2005
|
|
€m
|
€m
|
€m
|
€m
|
€m
|
Social Insurance
|
6.79 (15,786)
|
9.72 (23,723)
|
10.60 (26,174)
|
12.12 (26,131)
|
11.02 (22,420)
|
Social Assistance
|
19.26 (14,274)
|
19.41 (15,084)
|
28.77 (17,459)
|
44.85 (20,000)
|
36.24 (17,126)
|
Total
|
26.05
(30,060)
|
29.13
(38,807)
|
39.37
(43,633)
|
56.97
(46,131)
|
47.26
(39,546)
|
Table 39 Number and Amount of overpayments attributed to fraud or suspected fraud (Numbers shown in brackets)
|
2001
|
2002
|
2003
|
2004
|
2005
|
|
€m
|
€m
|
€m
|
€m
|
€m
|
Social Insurance
|
3.27 (5,321)
|
4.59 (8,121)
|
5.07 (9,606)
|
6.24 (10,771)
|
5.53 (8,587)
|
Social Assistance
|
7.73 (5,350)
|
7.43 (5,728)
|
8.88 (7,148)
|
12.69 (8,483)
|
13.13 (7,758)
|
Total
|
11.00
(10,671)
|
12.02
(13,849)
|
13.95
(16,754)
|
18.93
(19,254)
|
18.66
(16,345)
|
The amount of overpayments attributed to fraud or suspected fraud compared to total overpayments since 2001 is summarised in Figure 4.
Figure 4
|
The Department's record of recovery of overpayments during the period 2001 — 2005 is shown in Table 40.
Table 40 — Departments record of recovery of overpayments 2001 to 2005
|
2001
|
2002
|
2003
|
2004
|
2005
|
|
€’000
|
€’000
|
€’000
|
€’000
|
€’000
|
Overpayments not disposed of at 1 January
|
64,374
|
65,452
|
70,621
|
85,953
|
115,993
|
Overpayments recorded for recovery
|
26,049
|
29,130
|
39,367
|
56,9671
|
47,261
|
less
|
|
|
|
|
|
overpayments recorded in prior years cancelled
|
(668)
|
(394)
|
(381)
|
(693)
|
(1,826)
|
sums recovered in cash
|
(9,873)
|
(8,892)
|
(10,397)
|
(11,506)
|
(11,246)
|
sums withheld from current entitlements
|
(5,185)
|
(6,734)
|
(6,521)
|
(8,332)
|
(8,715)
|
net amounts written off as irrecoverable
|
(9,245)
|
(7,941)
|
(6,736)
|
(6,396)
|
(10,217)
|
Overpayments not disposed of at 31 December
|
65,452
|
70,621
|
85,953
|
115,9931
|
131,250
|
1. Revised
Of the €131,250,158 overpayments outstanding at 31 December 2005 — €34,295,696 dates from 2005; €38,787,682 from 2004; €22,834,566 from 2003 and €35,332,214 from earlieryears.
The Accounting Officer attributed the fall in the number and value of overpayments in 2005 to initiatives taken by his Department to deal with overpayments and combat fraud.
Specific control initiatives undertaken by the Department in 2005, which led to the identification of significant levels of overpayment included
The Lower Back Pain Project
A Disability Allowance mail shot where payments are made using electronic funds transfer
Data-matching exercises involving
Special Investigations Unit in unemployment cases;
And in One -Parent Family (OPF) cases
student unemployment cases
Child Benefit in OPF cases
The General Register's Office data-matching (Marriages and Deaths)
Prosecutions
Cases involving abuse of the system are considered with a view to taking legal proceedings. Prosecutions are taken against employers who fail to carry out their statutory obligations and persons who defraud the social welfare payments system. Prosecutions can either be by summary or indictment proceedings. Civil proceedings are taken to facilitate the recovery of scheme overpayments or the collection of PRSI arrears. Such cases are only taken where it has been established that the debtor has sufficient means to discharge the debt.
During 2005, 412 criminal cases (2004 — 476 cases) were forwarded to the Chief State Solicitor's Office for prosecution as shown in Table 41.
Table 41 — Criminal cases forwarded to the Chief State Solicitor
|
2005
|
2004
|
Unemployment Assistance
|
197
|
191
|
Unemployment Benefit
|
53
|
226
|
Disability Benefit
|
19
|
9
|
One Parent Family Payments
|
19
|
23
|
Other Schemes
|
10
|
10
|
Offences Committed by Employers
|
14
|
17
|
Total
|
412
|
476
|
A total of 256 criminal prosecutions (2004 – 259 prosecutions) involving social welfare recipients were finalised in court in 2005. The total amount of overpayments assessed in these cases of persons who attempted to or obtained benefits/assistance fraudulently was €1,346,770 (2004 — €1,116,492). The results of these 256 court cases and the penalties imposed are given in Table 42.
Table 42 — Results of Criminal Cases finalised in Court in 2005
|
Unemployment Assistance
|
Unemployment Benefit
|
Disability Benefit
|
One Parent Family Payments
|
Other
|
Total
|
Fined
|
46
|
56
|
4
|
6
|
4
|
116
|
Community Service
|
3
|
3
|
0
|
0
|
0
|
6
|
Imprisoned
|
3
|
1
|
0
|
0
|
0
|
4
|
Probation Act
|
33
|
41
|
5
|
5
|
1
|
85
|
Suspended Sentence
|
17
|
5
|
1
|
1
|
0
|
24
|
Struck-out
|
4
|
2
|
1
|
0
|
1
|
8
|
Dismissed
|
2
|
0
|
0
|
0
|
0
|
2
|
Bound to the Peace
|
2
|
0
|
0
|
0
|
0
|
2
|
Liberty to re-enter
|
4
|
2
|
1
|
0
|
0
|
7
|
Decree Obtained
|
1
|
0
|
0
|
0
|
1
|
2
|
Total
|
115
|
110
|
12
|
12
|
7
|
256
|
Prosecutions of 15 cases involving employers (2004 – 16 employers) were also finalised with 14 being fined and 1 receiving a suspended sentence.
The number of prosecutions finalised inthe courts since 2001 is summarised inFigure 5.
Figure 5
|
Between 2001 and 2005, a total of 76 cases were sent to the Chief State Solicitor's Office (CSSO) for the pursuit of civil proceedings. In this period, 66 cases (including 49 pre-2001cases) have been finalised. The breakdown per year is set out in Table 43
Table 43
|
2001
|
2002
|
2003
|
2004
|
2005
|
Total
|
Sent to CSSO in the year
|
14
|
11
|
21
|
17
|
13
|
76
|
Finalised in the year
|
8
|
11
|
14
|
12
|
21
|
66
|
Of the 66 finalised, settlement was reached in 8 cases without going to court (this involved recovery of €92,868), 2 were finalised in court (decrees awarded), 12 cases were not pursued due to the circumstances of the debtor, 10 cases were statute barred, 34 made arrangements to repay the debts in instalments. There are 78 cases that have yet to be finalised.