Mr. Seán Ó Foghlú:

Before I comment specifically on the report, I would like to emphasise the seriousness with which the Department regards the types of governance issues that have been raised in it. I will identify briefly some of the measures that we, together with the Higher Education Authority, HEA, have taken.

We have been working together with the Higher Education Authority on developing and strengthening the governance framework for higher education over the past few years. Measures that have been taken include: the introduction of a new governance framework for the higher education system in 2015; reduced timelines for the submission of draft accounts for certification by the Comptroller and Auditor General and for the submission of annual governance statements to the HEA; the HEA to meet quarterly with the Comptroller and Auditor General to discuss the status of audits of financial statements and any issues arising; in 2016 the HEA commenced the introduction of a programme of rolling reviews on governance matters; and, in addition, the HEA ensures that codes of practice are in place in respect of the institutes of technology and the universities, and an updated code was put in place in January of last year in the institutes of technology and it is anticipated that there will be an updated one for the universities soon.

On the report and the professional added years awards for pension purposes, with effect from 30 April 2018 all applications for the award of professional added years must be submitted to the Department for approval. The Department is also undertaking a review of awards of added years made by UL to employees in the recent past.

On the admission of certain subsidiary company staff into the university pension scheme, the Department with the HEA is conducting a review of the circumstances surrounding the admission of the two individuals into the UL superannuation scheme. This review is examining the circumstances of their entry and any costs associated with the pension benefits and will identify any actions necessary to rectify the pension position if it is determined that they were incorrectly admitted to the scheme.

I refer to the severance payments to senior managers at UL and the Institute of Technology Sligo. On UL, the Department acknowledges the concerns of the Comptroller and Auditor General in respect of the instances of misrepresentation by the university with regard to the circumstances of the severance deals. From my perspective, as Accounting Officer, this is not acceptable practice for any higher education institution. In order to ensure that such misrepresentation is not a feature of the university’s future relationship with the Comptroller and Auditor General, the Department has communicated its serious concerns to the university and highlighted the importance of full disclosure and transparency in responding to all such requests. The university has confirmed to the Department that it has taken specific measures to ensure that all future interactions with the Comptroller and Auditor General are open and transparent.

On IT Sligo, in November 2018 the Department issued a circular to the sector providing guidance on the processing of severance payments in the public sector as well as a new guidance note to the sector in regard to reporting for and sanction of redundancy payments. The Department also agreed to issue guidance to the institutes of technology regarding sabbatical arrangements for academic staff. The guidance will be informed by the findings of the HEA’s third rolling review which is looking specifically at staff remuneration and benefits in higher education institutions, encompassing issues such as compliance with public sector policy on salary and remuneration, pensions, expenses and other related benefits such as sabbatical leave. The review will be completed and published in 2019.

The Department is committed to ensuring that the recommendations of the Comptroller and Auditor General's report are fully implemented and will liaise with the HEA and the institutions as appropriate to facilitate this. We are currently examining the matter of recoupment of funding from higher education institutions where governance breaches have been identified and considering the most appropriate options available to us in that respect.