Dáil Éireann Debate, Wednesday - 19 February 2014
9. Deputy Patrick O'Donovan asked the Tánaiste and Minister for Foreign Affairs and Trade if he is satisfied that those charitable and non-governmental organisations that are funded by his Department, partially or otherwise, operate salary systems in keeping with that in the public sector; if he is satisfied that staff in those organisations are not in receipt of top-ups; and if he will make a statement on the matter. [8002/14]
Amharc ar fhreagraThis question relates to the expenditure of Irish Aid moneys and the allocation of such moneys to non-governmental organisations working overseas, specifically in light of the recent controversy about top-ups and excessive salaries being paid to executives in receipt of moneys from the HSE and other agencies of the State. I seek assurances that the salaries within those organisations are in compliance with the guidelines for the public sector.
The Government's international aid programme, Irish Aid, which is managed by my Department, is recognised internationally for its effectiveness in delivering results for the poorest and most vulnerable communities.
Approximately one quarter of Ireland’s overseas development assistance is channelled through non-governmental organisations, NGOs. This reflects the strong contribution Irish NGOs make in the fight against world poverty and hunger, and the broad support they continue to receive from the Irish public. Given the level of Government funding for the NGO sector their internal governance arrangements are a matter of legitimate public interest. NGOs are independent organisations and the salary levels of their employees are determined by their boards.
All NGO applications for funding are required to include information on the formal decision-making structure in the organisation which has legal responsibility for the administration and use of Irish Aid funds. The Department applies a series of rigorous appraisal criteria to all NGO funding applications. In particular it assesses the cost efficiency and effectiveness of programmes on the basis of NGO expenditure decisions. Grants are only dispersed once a framework of realistic and measurable results is agreed. Financing agreements between Irish Aid and NGO partners include clear parameters and administration costs for major funding partnerships. A limit of 6% of funding provided can be allocated to administration costs with remuneration levels for senior executives being reviewed in the context of the overall administration costs.
Irish Aid ensures funding is used for its intended purposes. The review of annual and financial reports is set against agreed objectives and budgets. These desk reviews are also supplemented by field monitoring visits, evaluations, audits and ongoing reviews of compliance. In 2012 Irish Aid entered into agreements for a new series of programme grants with the larger Irish development NGOs for their long-term development work over a four-year period. These NGOs must adhere to standards above and beyond those mandated currently in Irish law including, notably, best practice for financial reporting based on the statement of recommended practice in place in the UK. NGOs receiving programme grants are required to set out in their published audited accounts the number of staff in receipt of salaries above €70,000. Contracts signed between Irish Aid and NGO partners stipulate that annual audited accounts must be submitted as part of the annual reporting process. Irish Aid also requires partners to publish their audited accounts on their websites.
Additional information not given on the floor of the House
My Department also provides funding to the Ireland-United States Commission for Educational Exchange (the Fulbright Commission), which has charitable tax-exempt status with the Irish Revenue Commissioners, on an annual basis. The Commission is also funded by the United States Government. The commission was established by the Educational Exchange (Ireland and the United States of America) Act, 1991 to facilitate the administration of educational and cultural exchanges between Ireland and the United States of America. The members of the commission are nominated by the Minister for Foreign Affairs and Trade and by the US ambassador to Ireland. While terms and conditions, including staff salary levels, are set by the commission itself, details of the staff salary levels are made available to my Department. I understand that these salary levels are comparable to those offered for similar-level administrative posts in the public sector. Members of the commission do not receive remuneration.
Through the Reconciliation and Anti-Sectarianism Funds, which support cross-community outreach in Northern Ireland and the Border counties, cross-Border co-operation and sensitive commemorative and cultural events, my Department paid grants to a total of 155 organisations in 2013. The funds receive applications from a range of non-governmental organisations, community groups, and voluntary organisations. Funding is awarded for project costs only and it has been a long-standing policy that salary costs are generally ineligible for support from the funds.
Applicants are closely scrutinised before funding is awarded and there are robust mechanisms in place for annual reporting and accounting by recipient organisations. Organisations in receipt of grants of €10,000 and above are required to submit a tax clearance certificate from the Revenue Commissioners and those in receipt of grants of €12,500 and above are required to submit independently audited accounts.
The Emigrant Support Programme provides funding to non-profit organisations and projects to support Irish communities overseas and to facilitate the development of more strategic links between Ireland and the global Irish. Applicant organisations to the Emigrant Support Programme should be established as registered charities, charitable bodies or voluntary or not for profit organisations. Applicants must apply for funding yearly and organisations receiving grants under the Programme are required to submit a financial report for each programme funded, together with certified or audited accounts.
The vast majority of funding under the Emigrant Support Programme is provided to organisations overseas, with approximately 18% allocated to Irish-based organisations in 2013. Given the geographic breadth of the organisations supported by the Emigrant Support Programme, it would not be appropriate to benchmark any salaries against Irish public service scales. However, the programme has been engaged in audits of specific organisations from year to year to ensure value for money.
In 2012 the overall budget was €629 million and NGOs received approximately €159 million. Given the scale of the money involved it is essential we do not leave any scope for an information vacuum to develop and NGOs need to be encouraged to publish as much information as possible. I welcome the Minister of State's reply in this context. As a percentage of our overall gross national income we give more than France, Germany and Austria, none of which is a bailout country. Given the economic collapse and meltdown which happened we need to be accountable for every cent that goes out of here. I do not dispute the good work done by Irish Aid or NGOs but given what we have seen in the charities sector in recent months we must ensure every stone is turned over to ensure there are no top-ups or CEO payments in excess of the salaries of the Ministers of State or the Tánaiste. There needs to be absolute clarity on this and the sooner the NGOs can provide it, the better.
I agree entirely with the Deputy. We have very stringent measures in place. Any NGO to which we provide funding can use a maximum of 6% for administration purposes. Any NGO with revenue of more than €100,000 must be audited externally and independently. Any large NGO must declare salaries over €70,000. Dóchas, the umbrella organisation for NGOs, has put in place guidelines for best practice for NGOs and it also monitors them. Our new policy document clearly places huge emphasis on accountability, transparency, ensuring internal and external auditing takes place and ensuring the audited accounts of the various NGOs are put up on websites.
Will the Minister of State examine encouraging NGOs funded through Irish Aid to level with the people they stop on the side of the street to ask if they would sign a direct debit and tell them exactly what percentage of the money goes to the charitable purpose, how much goes to the collector and how much goes to the organisation for administration? On any street in urban Ireland one is bound to meet a representation of an organisation funded by Irish Aid through the Department with a clipboard and a very good tale of the work they do, which no one disputes, but one must almost drag out of them what percentage of the money winds up sinking a bore hole in Uganda. The Minister of State should encourage them to spell out from the start, similar the terms and conditions of a telephone contract, the percentage the collector gets, the percentage the NGO gets for administration and the percentage from which the person in the developing country benefits.
Dóchas has been to the forefront in developing codes of good practice on governance and financial management. The organisations which come under its umbrella form the vast majority of organisations we deal with. Of course donations come from various sources, such as the public, bequests and donor funding, and it is extremely important all NGOs are transparent and accountable on the allocation of the money they receive.
