Dáil Éireann Debate, Tuesday - 6 November 2012
174. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the plans he has to review the auditing system of Irish ODA, any future changes to the system; and if he will make a statement on the matter. [48401/12]
Amharc ar fhreagraInternal Audit in my Department operates at all times to high standards in line with the International Standards for the Professional Practice of Internal Auditing as published by the Institute of Internal Auditors and, in this regard, our auditing systems have evolved quite considerably over the past number of years.
Audit assurance in my Department is delivered in a number of ways including audits directly undertaken by the Internal Audit Unit; Irish Aid Missions and selected partners are audited annually by commissioned internationally reputable audit firms; reliance on audit reports from the National Auditors General in partner countries, where Public Expenditure Financial Accountability or other assessments have given satisfactory ratings to these bodies, audits commissioned with other donors of jointly funded programmes.
The audit function of my Department is suitably staffed with qualified accountants at HQ and in Irish Aid missions and all staff have relevant experience in the delivery of aid programmes overseas.
External oversight of the audit function in my Department is carried out in a number of ways.
Firstly, the Comptroller and Auditor General reviews the operation of the Department’s Internal Audit function and places reliance on its work for the purpose of its annual report. This report is in turn examined by the Public Accounts Committee.
Secondly, my Department has in place a fully independent Audit Committee which reports to and advises the Secretary General. The Audit Committee provides oversight of the evaluation and audit function, reviews the work programme and audit policies, and assesses the operation of the Department’s system of Risk Management. The Audit Committee meets approximately 8 times each year, including annually with the Office of the Comptroller and Auditor General. It publishes an annual report on its work.
The work of the Evaluation and Audit Unit in my Department is in line with international auditing standards employing a risk-based approach to determine its multi-annual workplan. This is approved by the Secretary General and overseen by the independent Audit Committee.
The role of audit has evolved in recent years to include reviews by my Department of partner Governments’ public financial management systems in countries where Irish Aid implements its development programmes. Evidence gathered from these reviews demonstrates that National Audit Offices (NAOs) are operating effectively. This in turn allows my Department to use National Audit Offices as part of our audit systems.
As part of the Evaluation and Audit Unit’s strategy to strengthen the capacity of National Audit Offices, my Department supports a global initiative known as the INTOSAI Donor Cooperation (International Organisation for Supreme Audit Institutions) and Ireland is a prominent member of this initiative providing both funding and in-kind support.
Regular reviews of the overall audit approach, audit work programmes and resources are undertaken by the Evaluation and Audit Unit to ensure that developments in audit keep abreast of the challenges posed by the expanding programme. As part of this process the Evaluation and Audit Unit proposed in 2011 that an external review of the audit systems employed by my Department be undertaken and this review is scheduled to take place in 2013. I look forward to the outcome of this review. In addition, the Evaluation and Audit constantly monitors its own performance and adjusts its operation to ensure maximum effectiveness.
