Dáil Éireann debate -
Wednesday, 16 Oct 1991

Vol. 411 No. 1

Written Answers. - Semi-State Company Audit System.

Ruairí Quinn

Question:

210 Mr. Quinn asked the Minister for Agriculture and Food if, in respect of each semi-State company responsible to his Department he will outline (a) the type of internal audit system which has been established, (b) when it commenced to function, (c) the way in which it functions and (d) to whom it reports; whether he has satisfied himself that the system combines the necessary elements of scrutiny on the matter.

Minister for Agriculture and Food (Mr. O'Kennedy)

The annual accounts of all bodies under my aegis are subject to audit by the Comptroller and Auditor General or by independent auditors and examination by my Department is carried out on the report and accounts.

The position regarding internal audit arrangements for each semi-State company is as follows:

Teagasc

(a) Teagasc has appointed a staff member, who is a qualified accountant, as internal auditor to the organisation; (b) the system was set up in April 1991; (c) the internal audits are carried out according to professional accounting practice and (d) reports will be made to the Director in the first instance and will also be available to the Comptroller and Auditor General.

The Racing Board

(a) The Board operates an internal audit system by means of an independent division within the board's administrative structure with special responsibility for the audit of the operations and systems of the board; (b) the audit division is in existence since the establishment of the board in 1945; (c) the division audits, on a regular basis, all of the operations and systems of the board and (d) the division reports directly to the chief executive and its reports are also available to the Comptroller and Auditor General.

The National Stud, Bord na gCon. Coras Beostoic agus Feola and An Bord Glas None of these bodies has separate internal audit units; they rely on stringent internal controls. In the cases of the National Stud and Bord na gCon these include stock audits at regular intervals.

Dublin and Cork District Milk Boards

These boards, which are self-financing, have considered that the level of turnover is not sufficient to warrant the additional cost of a system of internal audit.

I am satisfied that the systems in force combine the necessary elements of scrutiny and managerial autonomy. I consider that the adequacy of internal audit practices is a matter in the first instance for the auditors charged with the responsibility of preparing the annual accounts.