Dr. James Browne:

As I was going to say, we have sent in a comprehensive report on the issues that were raised by the committee and I hope it will meet its requirements. I will give a very short presentation initially and then we will take questions as they arise. I thank members for the opportunity to discuss the 2013-14 financial statements. I am here in my capacity as president of the university and chief financial officer. My colleagues have been introduced so I will not introduce them again.

In general, I believe NUI Galway has made very significant progress in recent years. We have been enabled to become leaders and to welcome leaders in teaching and research from all over the world. NUI Galway has continued to rise in the world recognised rankings, QS and Times Higher Education and is now ranked in the top 2% of universities in the world. We are also recognised in the top 200 most international universities in the world. I believe that is a significant achievement in the last number of years of austerity in the country and the third level sector.

Our research is recognised internationally, with significant success in recent times, particularly in acquiring EU funding where we are national leaders in terms of our ability to attract funding from the European Union Horizon programme. We are committed to being a top-ranked and research-led university and our students and graduates want and deserve no less.

Like other Irish universities, NUI Galway has faced many challenges, with increased numbers of students, lower staff numbers, changes in funding models and overall reductions in support available to the university. On funding, the sector and NUI Galway welcome the recommendations of the Cassells group on higher education funding. Those recommendations are being considered by the Oireachtas Joint Committee on Education and Skills and we welcome that. We understand that there are challenges involved in implementing these recommendations. However, we are acutely aware that they now need to be addressed and we wish to impress on the committee the importance of addressing that issue in due course.

However, today's business, the financial accounts of 2013-14, is somewhat different and we are here to provide the committee with material to address concerns it has raised, specifically regarding three issues, namely, the relationship with Galway University Foundation, non-compliance with procurement and the delay in production of accounts. I will take members through each of these very briefly. The details are in the submission.

The mission of Galway University Foundation is to advance the strategic priorities and academic objectives of NUI Galway. Its primary function is to generate financial support for our programmes and activities and it plays a vital part in the university's development. The foundation does not receive funding from the university or the State for its fundraising activities. The expansion of our campus in recent years by 40% in terms of square meterage would not have been possible without the foundation's support. Let me be clear about that and acknowledge the tremendous support of private donors and of the foundation in helping the university to achieve its goals. It is important to note that all the projects in question, which cost €300 million, have been completed without any debt on the State or university. That is in great measure due to the support of the foundation, which is able to leverage public money with and through private money. The foundation is absolutely critical for the university and its future. My experience would suggest that that is the case.

Turning to procurement, the university's policy is very clear. We wish to encourage best practice, establish policy and procedures, provide training and advice, monitor compliance and co-ordinate procurement, both locally and in collaboration, where appropriate, with national partners. In recent years, the university has devolved procurement activities and established what we term decentralised centres of excellence in procurement in the university in major areas such as buildings and estates, information systems and also library services. This has been a significant success for the university. We welcomed the establishment of the Office of Government Procurement and we certainly support its development. The transition to this centralised national approach has not been without challenges and we respect that. However, we acknowledge that significant progress has been made and we believe that the office is now working well with the university.

The third issue raised by the committee was the delay in the accounts. Let me explain very briefly. The university produces two formats of annual financial statements each year - the so-called HEA funding statements and GAAP format financial statements. Both are audited by KPMG. The GAAP accounts are audited by the Comptroller and Auditor General. The university adheres to long-established audit timelines. In September 2013, the university undertook a detailed review of the appropriateness of its accounting treatment due to a highly technical issue. This led to delays in the presentation of the financial statements to the university's governing authority. This had knock-on effects on the provision of subsequent financial statements. We can talk about the detail of that later on if members wish.

That is my opening statement. I thank the committee for the opportunity to address it. I and my colleagues are very happy to provide further clarification, if necessary.