Mr. Seamus McCarthy:

On the cross-Border matter, between ourselves and my counterpart in Northern Ireland, one or other of us takes a lead role in a specific audit. In the case of InterTradeIreland, the lead is the Northern Ireland Audit Office. We co-ordinate on the plan and both offices review the findings of the audit but the work on the ground is carried out by the lead authority. We discuss between ourselves the issues that might arise. It is complicated and there can be further complications if explanations are required, particularly if a body has to go back to parent departments in two jurisdictions. When the explanation comes through, there are processes of presentation of the financial statements on both sides of the Border that may contribute to the delay in submitting it to the Houses.

I refer to the recognition of a deferred pension funding asset. Many third level institutions, particularly universities, have other sources of income apart from grants from the State. They need to recognise that they have accrued pension liabilities but if they did not recognise a matching pension funding asset the picture on their balance sheets would be distorted and it would look like they were insolvent. However, the expectation is that it might be 50 years before these liabilities are drawn down. They are effectively assuming that the Exchequer will meet the pension liabilities as they arise. Because they do not have a guarantee that the State will do that, I am drawing attention to it. It is something we have been doing for many years. If the committee takes the view that it understands that point I will consider whether it makes sense to continue to draw attention to it. I have been reflecting on whether it is necessary.