Every vocational education committee is obliged to make monthly returns available to my Department. The financial monitoring reports received by my Department from the County Westmeath Vocational Education Committee during 1993 did not indicate any departure from the approved 1993 budget. Its statutory financial statement for the year 1993, which was received in my Department in April 1994, showed a deficit of £450,000 and an overdraft with County Westmeath treasurer bank of £574,000 at the end of 1993. The statutory financial statement does not differentiate between pay and non-pay balances.
I emphasise that we are talking about an unaudited financial statement. Confirmation of surpluses or deficits in the course of audit requires judgments on cash assets and liabilities included in the financial statement. Consequently, the balance of cash assets and liabilities in the audited accounts can be different from those shown on the financial statement initially submitted by a committee. The approval of the Minister had not been sought or given for incurring this overdraft as required by the Vocational Education Act, 1930. I am greatly concerned at these developments and at their implications for the effectiveness of the County Westmeath Vocational Education Committee financial management and control procedures generally.
My Department has brought these matters to the attention of the local government auditor who is responsible for the audit of accounts of vocational education committees until the end of 1993. My Department has also written formally to the Westmeath Vocational Education Committee seeking is observations. On receipt of the observations of the Westmeath Vocational Education Committee, I will consider what further action would be appropriate.
In the course of recent contacts, my Department was made aware of the concerns of the treasurer bank and a verbal request for approval of overdraft facilities has been made by a delegation from the Westmeath Vocational Education Committee. This request is still under consideration.
The matter of the property in France arises under the vocational training opportunities scheme (VTOS). In general, approval for a vocational training opportunities scheme is conveyed in units of 20 students and inclusive funding is provided separate from the vocational education committees general second-level budget. This funding is intended to cover all the costs of the programme, including instruction, equipment, payments to students in respect of school books and other expenses and accommodation where necessary. In view of the overall pressure on school places, vocational education committees provide accommodation for the VTOS in many instances through renting-leasing and meet the cost out of the general VTOS budget. Specific approval for this renting or leasing is not generally sought or given.
In the case of the County Westmeath Vocational Education Committee, approval in principle was given to the provision of a VTOS module in France provided this could be done within the normal level of funding for the scheme. No specific sanction for leasing-purchasing premises was given. Following continuing contacts and discussions and the submission of additional information, the Westmeath Vocational Education Committee was informed in February 1994 not to take further action in the matter until it had been fully considered by the Department. This was repeated in May 1994. My Department is considering all aspects of the proposal in the light of additional information and clarification being made available by this vocational education committee.
I have asked my Department to examine the general financial operation of the Westmeath Vocational Education Committee. On receipt of this information I will consider what further action I should take.
