I propose to take Questions Nos. 62 and 114 together.
My Department is the national paying authority for the European Social Fund, ESF, in Ireland. It is also the managing authority for the Employment and Human Resources Development Operational Programme and for the EQUAL Community Initiative Programme, both co-funded by the ESF. In addition, ESF is used to part-fund some employment related measures in the two regional operational programmes, BMW and S&E, and the PEACE II programme. In order to assist my Department in ensuring that ESF money is spent correctly, in accordance with both national and EU regulatory requirements, it was decided to set up a functionally independent ESF financial control unit in May 1999. The control unit is tasked with ensuring full compliance with the requirements of the European regulations in so far as ESF expenditure in Ireland is concerned. Under my signature, the manager and controllers of the FCU are authorised officers under Regulation 3(1)(b) of the European Communities (Financial Checks) Regulations 1999 (S.I. No. 123 of 1999), and are empowered to carry out checks on all ESF co-funded expenditure in Ireland. The unit is also required to provide advice to the paying authority on the proper management and control of ESF-funded operations, in accordance with the relevant EU regulations; devise and conduct an annual audit programme; issue audit reports as appropriate; engage on an ongoing basis with the appropriate officials in my Department.
The work programme of the unit is agreed and overseen by a steering committee. The unit is co-funded through ESF technical assistance.
While the unit is functionally independent in terms of its audit work, it comes within the remit of my Department for administrative purposes. Appointments to the financial control unit are on a temporary contract basis and the posts are subject to Civil Service regulations and all other Acts in force relating to employment in the Civil Service.