Written Answers. - Semi-State Companies Audit System.
Ruairí Quinn
Question:
111
Mr. Quinn
asked the
Taoiseach
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 and managerial autonomy; and if he will make a statement on the matter.
The detailed information requested by the Deputy in respect of the State bodies under the aegis of this Department is as follows:
Arts Council: (1) all grant decisions are made by the Arts Council in plenary session (except for certain decisions made, in accordance with Council Standing Orders, by a sub-committee, chairperson or the director, and subsequently formally notified to the full council); (2) all grant decisions are recorded in the council minutes; (3) payments on foot of grant decisions are subject to strict compliance with the council's general conditions of financial assistance, including Department of Finance tax clearance regulations; (4) all payments are requested by the grantee in writing, supported by the signature of a specialist officer of the council, following which a cheque is issued, signed by two persons; in most cases by the council's finance officer and another person authorised by the council to sign; (5) arts discipline budgets are approved by the council at least twice a year and expenditure from these budgets is closely monitored by the finance officer, any variance being reported to the director who takes corrective action, in consultation with the chairman and council; (6) the administration budget is approved by council at the beginning of each financial year; the director has authority to make all payments on foot of administration expenses within budgets established and agreed in advance by council; (7) the Comptroller and Auditor General carries out a full annual audit embracing a comparable test: to ensure adequate controls are in place; substantive tests: to ensure that data in balance sheet, income and expenditure account and statement of source and use of funds are as stated; analytical tests: to ensure that there are no significant variations as compared with previous years and that, where variations exist, appropriate reasons are given.
The Arts Council's financial procedures have been in effect since 1952. They have been developed and expanded over the years to take account of auditors' requirements.
The Arts Council's annual report and accounts are lodged in the Oireachtas Library.
National Concert Hall: the accounts of the National Concert Hall are audited annually by Hayden Brown, Chartered Accountants, 34 Grafton Street, Dublin 2. The audited report is sent directly to the board of directors. Copies of the annual accounts are sent to the Department of the Taoiseach for submission to the Oireachtas.
The following controls have been operated by the finance officer since the hall commenced operations in 1981: (1) the board of the concert hall receive detailed information on the financial position of the hall at their regualar monthly meeting; (2) bank reconciliations are performed monthly. All cheques are entered into a book of prime entry — cheque payments book — in numerical sequence and then to computer. Cheques which are cancelled are entered as such, as the cheque stub marked with a stamp "cancelled". All lodgements are entered chronologically and separately to the cash receipts books. Any outstanding cheques and/or lodgements at a period end are reconciled to the following month's bank statements, (3) the debtors control account is reconciled monthly. All Statements for each amount outstanding at a period end are sent out monthly. All cheques received on foot of payment for outstanding amounts due to the NCH are entered chronologically and separately in the cash receipts book, and then entered to the computer; (4) the creditors control account is reconciled monthly. Statements sent from suppliers are checked against NCH records; (5) purchases invoices are checked for accuracy against the purchase order and any discrepancy investigated. All money paid to creditors are entered into the cheque payments book numerically, and then entered to the computer.
RHK/IMMA: The accounts of the Irish Museum of Modern Art are audited on an annual basis by: Cooney, Carey & Co., Chartered Accounts, Northumberland Road.
The following controls have been in existence since May 1987: (1) the board of the concert hall receive detailed information on the financial position of the IMMA at their regular monthly meeting; (2) creditors control accounts are prepared on a monthly basis. All credit balances are investigated; (3) when payments are being prepared, the company's ledgers are compared with the suppliers invoice and reconciled. Each invoice is checked with order book and proof of delivery; (4) debtors control accounts are prepared on a monthly basis. All balances in the fourth month are investigated; (5) all debtors cheques are entered separately in cash receipt book; (6) bank reconciliation is done on a monthly basis. All cheques are entered in numerical sequence. Cancelled cheques are entered as cancelled and cheque is attached to cheque stub for verification.
All lodgements are entered separately in cash receipt book; (7) outstanding cheques and lodgements are checked through in subsequent statements.
Temple Bar Properties Limited: (1) the accounting procedures established in October 1990, are controlled by the financial director of the company, who authorises all payments. Cheques are jointly signed by two persons nominated by the board and (2) the board are currently in the process of establishing an audit committee to oversee the procedures involved.
Temple Bar Renewal Limited: (1) the necessary funding, which will be small, will be provided by the Department of the Taoiseach as secretariat to the company and will be subject to the normal audit procedures on that Vote; (2) it is provided in the Temple Bar Area Renewal and Development Act, 1991, that the accounts of Temple Bar Properties Limited, and Temple Bar Renewal Limited shall be audited by the Comptroller and Auditor General. Copies of the report of the Comptroller shall be laid before each House of the Oireachtas.
I am satisfied that these accounting systems represent thorough and accurate monitoring procedures while maintaining management autonomy. I am also satisfied that they are adaptable to changing circumstances and perceived requirements.
Údarás na Gaeltachta: Tuigim ó Údarás na Gaeltachta go bhfuil córas d'iniúchadh inmheánach i bhfeidhm san eagraíocht ó bunaíodh í i 1980 agus go raibh córas i bhfeidhm roimhe sin i nGaeltarra Éireann. Is chuig an bpríomhfheidhmeannach go díreach a thuairiscíonn an t-iniúchóir inmheánach a bhfuil dualgais eile air chomh maith, rud a chiallaíonn gur ar bhonn páirtaimseartha atá an cúram mar iniúchóir inmheánach á chomhlíonadh. Baineann an t-iniúchadh inmheánach le obair an Údaráis féin agus a fhochuideachtaí. Socraítear na córais agus na sceidil dualgas don iniúchadh inmheánach laistigh den eagraíocht chun díriú ar na réimsí sin den obair is mó go bhfeictear gur fiú iniúchadh a dhéanamh orthu. Is gnó do Bhord an Údaráis go príomha, tríd an bpríomhfheidhmeannach, é féin a shásamh go gcuimsíonn an córas d'iniúchadh inmheánach na gnéithe riachtanacha le haghaidh mionscrúdaithe agus de neamhspleáchas bainistíochta agus tá iarrtha agam ar an Údarás an cheist sin a scrúdú agus toradh an scrúdaithe sin a chur in iúl dom. Scrúdaíonn an tArd-Reachtaire Cuntas agus Ciste cuntais an Údaráis go bliantúil.
Bord na Gaeilge: Níl córas foirmiúil iniúchóireachta inmheánach i bhfeidhm i gcás Bhord na Gaeilge. Scrúdaíonn an tArd-Reachtaire Cuntas agus Ciste cuntais an bhoird go bliantúil agus táim sásta gur leor sin.
