Dáil Éireann debate -
Thursday, 19 Oct 1995

Vol. 457 No. 3

Written Answers. - Accruals Based Accounting.

Noel Dempsey

Question:

108 Mr. Dempsey asked the Minister for Transport, Energy and Communications if he has hired consultants to examine accruals accounting in his Department or for any body under the aegis of his Department; if the lowest tenderer was appointed; and if he will make a statement on the matter. [15269/95]

Minister for Transport, Energy and Communications (Mr. Lowry)

As part of the strategic management initiative in the Civil Service, my Department is undertaking a pilot project for the introduction of an accruals based accounting system for the Department's accounts. This represents the first occasion on which a Government Department has proposed to introduce accruals accounting for its core activities. The accrual accounts will not take the place of the cash based system, that is statutorily required, but it will involve the maintenance of "shadow" accounts produced on an accruals basis.

Given the complexities of the issues involved and the importance of the project, consultants have been engaged to assist with the process. However, as the long-term viability of the project depends on the Department developing its own competence and skills, the consultants are engaged in a facilitatory role only.

The tendering procedures outlined in the Government publication, Public Procurement 1994, were fully complied with in the appointment of the consultants. Following public advertising in the national newspapers by my Department, a number of tenders were received. Although the company chosen, KPMG — Stokes Kennedy Crowley, did not submit the lowest tender, their proposal was considered the most suitable from the Department's point of view.

The project commenced in April, 1995 and is likely to be of 12 months duration.