Dáil Éireann Debate, Wednesday - 6 March 2024
93. Deputy Michael Fitzmaurice asked the Minister for Education if she will publish documentation whether bank accounts and fund transfers or otherwise that proves €8.195 million surplus from school transport was held by Bus Éireann for her as of 31 December 2011; and if she will make a statement on the matter. [10998/24]
Amharc ar fhreagra94. Deputy Michael Fitzmaurice asked the Minister for Education the transaction purportedly returning the net cash surplus of €6.7 million to her in 2018 from the ringfenced account; and if she will make a statement on the matter. [10999/24]
Amharc ar fhreagraI propose to take Questions Nos. 93 and 94 together.
The School Transport Scheme is a significant operation managed by Bus Éireann on behalf of the Department of Education. In the current school year over 161,600 children, including over 135,000 pupils travelling on primary and post primary services, 19,800 pupils with special educational needs, and 6,800 pupils who have arrived to Ireland from Ukraine are transported on a daily basis to primary and post-primary schools throughout the country.
The total cost of the scheme in 2023 was €382.02m.
The 1975 Summary of Accounting Arrangements form the basis of the payment to Bus Éireann for the operation of the School Transport Scheme. In this regard, the Department reimburses Bus Éireann for a range of costs incurred in the operation and administration of the scheme. Re-imbursement to Bus Éireann is on a cost recovery basis.
The Comptroller and Auditor General (C&AG) carried out an examination of the provision of school transport and completed its report in August 2017 – the C&AG Special Report 98. The C&AG report referenced a surplus in the Transport Management Charge element of the costs. This amount was held by way of an uncommitted reserve by Bus Éireann to be used solely for the purposes of the School Transport Scheme. The balance on the uncommitted reserve was €8.1m at the end of December 2011 and reduced to €6.7m at the end of December 2018 when it was repaid fully to the Department.
The school transport scheme is a demand-led service based on the number of eligible children who apply to avail of transport. My Department works with Bus Éireann to analyse costs to the scheme on an on-going basis while each year the company produces an audited statement of account. This ensures that the financial information provided by Bus Éireann is in accordance with the relevant summary of accounting arrangements.
Bus Éireann provide the Department with an annual projected cost of school transport services together with a provisional spread of payments. These figures are incorporated into the Department’s annual profile of expenditure and are monitored on a monthly basis both in terms of the Department’s monthly profile of expenditure and Bus Éireann information based on actual costs versus projected costs. Expenditure headings and profiles are discussed at monthly meetings held between the Department and Bus Éireann. Where changes in projected expenditure occur, a new year-end forecast is submitted by Bus Éireann and reflected in a revised spread of payments.
Actual expenditure is finalised in the Bus Éireann annual statement of account which is independently audited by the Bus Éireann auditors in accordance with the 1975 Summary of Accounting Arrangements. Balances, where they occur, are accounted for in the following year’s projected cost.
