Olivia Mitchell
Ceist:6 Ms O. Mitchell asked the Minister for Finance the progress which has been made in value for money audits on individual Government policies; and if he will make a statement on the matter. [27983/00]
Ceisteanna – Questions. Priority Questions. - Value for Money Audits.
I am happy to take this opportunity to inform the Deputy of progress across a number of different areas in the conduct of value for money audits. A system of expenditure reviews has been in place since 1997 in accordance with one of the key financial and managerial reforms in the strategic management initiative.
By establishing the review system as a regular part of their annual cycle of work, Departments are assisted in ensuring the efficient use of the resources. The reviews provide a systematic analysis of what is actually being achieved by each programme and a basis on which more informed decisions can be made on the allocation of resources between spending programmes. The reviews are normally carried out by the spending Departments under the aegis of joint steering groups from the spending Departments and the Department of Finance. A steering committee for programme evaluation, chaired by the Secretary General of my Department, was established to oversee the process and to provide an independent assessment of completed reviews. I am making available for the information of the Deputy a list of completed expenditure reviews.
After three years experience it is now appropriate to consider the future development of the process and my Department is currently consulting with other Departments and offices on proposals for the next phase of the expenditure review process.
Following on from the Government's review of its Action Programme for the Millennium, consultants, Deloitte & Touche, were appointed last May to carry out a comprehensive value for money audit of the health services to examine the trend in resource inputs versus the trend in service outputs to clients over the past ten years; the trend in demand for health services over the past ten years; the difference, if any, between the trend in the level of contribution to cost of public and private patients vis-à-vis service levels to each category; differentials in output costs across health boards and hospitals including specialties. The consultants have also been asked to make recommendations on the development of a management information system for the health ser vice. The study is expected to be completed in spring 2001.
All expenditure under the National Development Plan 2000-2006, both EU co-financed and non-co-financed expenditure, will be subject to ongoing evaluation and mid-term evaluation under a number of standard criteria. All evaluations will be required to address five key evaluation questions, namely, rationale, continued relevance, effectiveness, efficiency and impact. The latter four considerations are particularly relevant to the issue of value for money.
Additional information.The Deputy will also be aware that the Comptroller and Auditor General has a statutory mandate for the conduct of value for money examinations under the Comptroller and Auditor General (Amendment) Act, 1993. The purpose of these VFM examinations is to provide the Dáil with independent assurance about economy and efficiency in the use of resources by public bodies audited by the Comptroller and Auditor General and about how well they evaluate the effectiveness of their operations. To date the Comptroller and Auditor General has published reports on 35 VFM examinations.
I am also making available, for the information of the Deputy, a list of the VFM reports published to date.
How many expenditure programmes are there which are subject to review? How many have been subject to value for money audits since 1997? Has any programme been cancelled or seriously reduced as a result of the audits?
The last part of my reply dealt with audits conducted by the Comptroller and Auditor General. There is a list of them.
How many? Do not mind those under the Comptroller and Auditor General.
I have not added them up but I will send the Deputy a copy of them. There must be over 30. There are 35 value for money audits under the Comptroller and Auditor General. I can give the Deputy this list. They are under the various Departments. There are a lot of them.
As regards the Deputy's last question, I have not found one but that is not to say there may not be one.
I put it to the Minister that there are 350 or 360 expenditure programmes, as he defines them. He said the Comptroller and Auditor General has carried out audits on about 30 of them since 1997.
Since 1994.
In the past six years. Is 30 out of 360 satisfactory progress?
The value for money audits conducted by the Comptroller and Auditor General were initiated some time ago. He undertakes work he is asked to do. I do not wish to imply any criticism of the work he does. He publishes them in a booklet and there is good information in it. As regards the expenditure reviews conducted under the Department's remit, a programme is drawn up every year. I would not like to confuse the value for money audits conducted by the Comptroller and Auditor General and the expenditure reviews carried out by the Department. They are two separate items.
Would it be unfair to suggest that the expenditure reviews conducted under the auspices of the Department are a bit of a farce in that very little progress is being made in the number under review compared to the totality of the programme? Would it be true to say nothing happens as a result of the review and that the Book of Estimates is constructed in the traditional way whereas if there is a programme, it is there forever and everyone in a line Department fights for a percentage increase on that programme? There is no evaluation of policy with a view to cutting back.
There were 51 expenditure reviews. I am endeavouring to do something about the matter. I have not been successful to date because, as the Deputy is aware, every line Department defends every piece of expenditure. It is extremely difficult.