Dáil Éireann Debate, Thursday - 8 May 2014
34. Deputy Dominic Hannigan asked the Tánaiste and Minister for Foreign Affairs and Trade Irish Aid's policy in regard to the secondary organisations that deliver the programmes that it funds primary organisations to do; if it carries out any inspection of the secondary organisations to ascertain the way the money is being spent; and if he will make a statement on the matter. [20740/14]
Amharc ar fhreagraPartnership is the cornerstone of Irish Aid’s civil society policy. In line with international best practice and the principles of sustainability and ownership for development, Irish Aid values partnership with government and multilateral organizations and with non-governmental organizations (NGOs). Participation and collaboration with local organisations is critical in designing and managing overseas development programmes which are relevant to the local context. Irish Aid requires its partner organisations to demonstrate commitment to transparency, accountability and effective and efficient use of public funds. Prior to approval of grants, all proposals and applicant organisations are assessed by Irish Aid. Grant applicants are required to meet eligibility criteria in terms of technical capacity, governance, management and accounting systems. Where relevant, an NGOs’ capacity to manage onward granting of funds and to ensure appropriate oversight of expenditure is also assessed.
NGOs funded by Irish Aid must have a formal decision-making structure which can take legal responsibility for the administration and use of public funds. In addition, NGOs are required to have appropriate risk management systems in place to monitor and mitigate against risk, including the risk associated with partnership grant management. In this way Irish Aid aims to ensure that the systems and processes are in place for full accountability and transparency in the use of public funds provided to NGOs. All organisations in receipt of Irish Aid grants must also submit independently audited financial accounts.
Where Irish Aid funding is on-granted by an NGO to other implementing partners, the NGO management is required to satisfy themselves as to the suitability of the implementing partner to carry out this role. In particular, details must be set out by the applicant organisation regarding its principles and approach to the selection of partners. A written agreement between the organisation directly funded by Irish Aid and its implementing partners is expected to set out the respective roles and responsibilities and ensure clarity as to funding arrangements.
Each NGO is required to report annually to Irish Aid on progress towards expected results. Irish Aid maintains regular oversight of partnership performance and on-granting of funds through review of annual narrative reports, expenditure reports and annual audited accounts and risk registers. NGOs are also subject to field monitoring visits by representatives of Irish Aid. Terms of reference for such visits would normally include a review of sub-granting agreements and systems in place to monitor and track performance of the relevant partner organisations.
