Dáil Éireann Debate, Tuesday - 24 July 2018
526. Deputy Catherine Connolly asked the Minister for Education and Skills his views on the observation in a report (details supplied) by the Comptroller and Auditor General that weaknesses in control over grant payments by the board of Caranua continued in 2016; the number of instances in which grant expenditure was not or may not have been used for the purposes intended; and if he will make a statement on the matter. [33460/18]
Amharc ar fhreagraCaranua is an independent statutory body established under the Residential Institutions Statutory Fund Act 2012. That legislation sets out the governance and oversight arrangements for Caranua and assigns various responsibilities to the Board and executive of Caranua and to the Minister for Education and Skills. The Code of Practice for the Governance of State Bodies sets out the specific responsibility of the Board for ensuring that effective systems of internal controls are instituted and implemented and the requirement that the Board review the effectiveness of these systems annually. The role of my Department under the Code is to ensure that Caranua has robust and effective governance arrangements in place across a range of relevant areas. The respective responsibilities of Caranua and my Department are set out in a Performance Delivery Agreement and regular meetings take place between my officials and Caranua to discuss the range of issues referred to in that Performance Delivery Agreement.
The 2016 financial statements of Caranua were received by my Department on 14 June last and were laid before the Houses of the Oireachtas on 13 July in fulfilment of the requirement set down in section 31 of the Residential Institutions Statutory Fund Act 2012. The Comptroller and Auditor General’s certificate to these financial statements noted the Comptroller’s opinion that the statements gave a true and fair view of the assets, liabilities and financial position of Caranua at 31 December 2016 and that the audit evidence obtained was sufficient and appropriate to provide a basis for his opinion. The Comptroller drew attention to the Board’s Statement on Internal Financial Control, which forms part of the financial statements, which disclosed that weaknesses in the Board’s control over grant payments continued in 2016 and noted that this created a risk that in some cases grant expenditure might not have been used for the purpose intended. The Comptroller also noted that the Statement on Internal Financial Control set out the steps being taken by the Board to resolve the specific weaknesses identified. That Statement also reported on the key control procedures within the organisation while also noting that a number of steps have been taken at organisational level to address the control weakness identified in previous years. Ensuring that an appropriate internal financial control framework is in place is a specific responsibility of the Board and I am satisfied that it is taking appropriate measures in that regard.
