Seán Fleming (Laois, Fianna Fail) | Oireachtas source

To help the committee, I will step forward to the next correspondence, which deals with this.

No. 1561 is from the Higher Education Authority, HEA, in relation to examination of expenditure at Cork Institute of Technology, CIT, and the ability of technological universities to borrow, which they have an entitlement to do. In fairness to the HEA, it gives us a response in its letter, No. 1561, a paragraph of which I will now read into the record as there has been quite a bit of discussion about it. We had written to it about the weakness in control. The letter states:

[Our] correspondence was considered by HEA Board’s Finance and Governance Committee at its meeting on 24 July 2018. At the meeting the Committee agreed that that the HEA should reply to CIT noting the process changes the Institute has implemented and recommending a change to the sign-off process. Specifically, the Committee recommended that in relation to the change made to CIT’s hospitality procedure that requires prior approval from the Vice-President for Finance and Administration for President or Governing Body-related expenditure over €500, the Committee was of the view [that is, the HEA board's finance and governance committee] that it would be more appropriate for such expenditure to be signed off by the Chairman of the Governing Body’s Finance Sub-Committee. A letter to that effect issued to CIT on 29 August 2018.

In relation to the amount of expenditure incurred for these events that the HEA considers was not subject to appropriate controls (ca. €6,700), the HEA is currently considering the most appropriate means of recouping this money from CIT.

In fairness, I could have read that before the conversation started, but there is a system in place and at least somebody is doing something. I do not know how €6,700 will affect the CIT. There is a strong point being made here as a result of the ongoing discussions related to that particular function. For the first time at national level, the HEA will specifically recoup money that in its view was not subject to appropriate control. It is a small victory but there is a matter of principle established here, which must be widely circulated. Where the HEA or other bodies come to the conclusion that the expenditure was not subject to appropriate control it will have to be recouped from the body. There is a point that is being well made, and it has been helpful. Once the message gets out that that money will have to be recouped where HEA is satisfied that it was not appropriate, there is a good lesson learned here. This item of correspondence is helping with the conversation we are having, and we will note and publish it. We want confirmation in due course that the money has been recouped.