Written Answers. - Departmental Accounting Practices.
Pat Rabbitte
Ceist:
22
Mr. Rabbitte
asked the
Minister for Arts, Heritage Gaeltacht and the Islands
the steps which have been taken to address the shortcomings in the annual accounts of her Department identified in the Annual Report of the Comptroller and Auditor General; and if she will make a statement on the matter.
[31819/01]
I refer the Deputy to my response on 8 November to Parliamentary Question No. 22 on this issue from Deputy Quinn.
As acknowledged by the Secretary General of my Department in his statement to the Committee of Public Accounts on 16 October, the shortcomings highlighted by the Comptroller and Auditor General were indefensible irrespective of the circumstances in which they had arisen. He noted that the Department's outdated accounts system would be discarded as soon as a replacement system, being developed under the management information framework initiative, has been installed. He outlined also the remedial action being taken in the interim to ensure that my Department will provide an effective and accurate financial service within the existing con straints. With my support, a number of actions have been initiated.
A full internal review of the structures and staffing in the accounts branch of my Department has been carried out. A lack of professional accountancy expertise has been identified and this is being addressed in the short-term through consultancy help from Deloitte & Touche. A further outcome of the review was the identification of a lack of resources at middle management and general clerical level. Two extra appointments have already been made, and a further six are envisaged. Turnover of personnel has also been a contributor to problems in the accounts area of my Department and efforts are being made to manage this, in so far as is feasible.
Manuals have been drafted that document procedures and outline the steps that must be carried out, on a daily, monthly and annual basis, with particular emphasis on recording receipts and reconciling monthly with the PMG, the issue which gave rise to particular concern in the audit of my Department's accounts by the Office of the Comptroller and Auditor General. Most of the initial training for accounts personnel has been provided in-house, with the help of consultants. This is the only realistic approach given that most of the major problems arise from our accounts system. However, options for general training for accounts personnel, are also being identified and they will be followed up in the context of the performance management and development system process.
An interim fixed assets register system has been put in place on a spreadsheet basis. My Department recognises that manual recording of capital assets in a spreadsheet format is a short-term solution, which must be superseded by fixed asset software and, accordingly, in conjunction with external consultants, is finalising a specification for this at present. When the most appropriate software is identified and acquired, a considerable amount of checking and inputting will be needed before the system is fully operational. It is the aim to have a computerised central assets register for the 2002 appropriation account.
The internal audit function of my Department has been strengthened to ensure that we will in future have a more robust system of internal checks and balances. The unit is undertaking a major risk evaluation project in relation to all of my Department's responsibilities in conjunction with the Institute of Public Administration. The workshop phase of this project, which involved senior divisional management, has just been completed and the resulting data is being analysed at present.
In the light of these and other steps, I am satisfied that effective connective action is being taken to address the failings identified by the Comptroller and Auditor General and I am confident that my Department will meet the challenge of providing a first class accounts service into the future.
