All grant aided bodies are subject to governance and accountability arrangements and are advised of their obligations under various Department of Public Expenditure and Reform circulars including the Code of Practice for the Governance of State Bodies, Public Spending Code and the Management of and Accountability for Grants from the Exchequer Funds.
The overall principle of the circular on the Management of and Accountability for grants is that there should be transparency and accountability in the management of public money, in line with economy, efficiency and effectiveness. The provisions of this circular apply to the payment of grants to any agency as well as to any onward movement of such funds.
Every state body under the aegis of my Department reports, through an Annual Report and Financial Statement, their compliance with the Code of Practice for the Governance of State Bodies. The Chairperson is required to make a Statement on the System of Internal Controls operating in the Body. The statement is reviewed by both the Internal Audit Committee and the Board and are subject to review by external auditors to confirm the body’s compliance with the requirements with the Code. The Code requires that Statements of Internal Control must include specific information including an affirmation by the Chairperson that the Body has appropriate procedures for financial reporting, internal audit, travel, procurement and asset disposals. The Chairperson is also obliged to affirm that Codes of Conduct for the Board and its employees are in place and are being complied with.
My Department also has in place Service Level Agreements with all the Bodies under its aegis and has regular bi-lateral meetings with the Bodies concerned. Issues of governance, accountability and financial control are regular agenda items at those liaison meetings.
