Dr. Ruaidhrí Neavyn:

The process is based on an allocation of funding from the budget that we receive on an annual basis from the HEA. The way it is done, effectively, is that the senior managers responsible for the particular areas submit a proposed budget; we review them based on the proposed budget that we receive from the HEA - we receive an indication early in any financial year - and then have a discussion. What I do, with the finance department, is meet each senior manager to discuss the proposed budget and we allocate based on that discussion and the available budget. During the year we monitor and review expenditure in these cost centres and if people are busting their budgets, then, obviously, we deal with the matter. In this instance, there was no proper adherence to the policies and procedures in place.

The spend of the institute is also brought to the attention of the governing body and the audit and finance committees, in particular, the finance committee because during that time period in Waterford there was both an audit committee and a finance committee. The finance committee dealt with the accounts and day-to-day expenditure, while the audit committee dealt with risk management and the internal audit plan. We are amalgamating the two committees because, obviously, we believe that is an important recommendation made within the Quigley report. However, it is also a decision the institution made, that actually there should be one committee to have complete oversight of the risks associated with expenditure. That is an important point to make in that regard.