Ms Mary Hurley:

As Accounting Officer, I am pleased to be here to assist the committee in its examination of the 2021 appropriation account for Vote 42 and the relevant aspects of Chapter 6 - Central government funding of local authorities. I am joined by colleagues, Mr. Fintan O’Brien, assistant secretary for rural development; Mr. J.P. Mulherin, assistant secretary for corporate affairs; Mr. Paul Geraghty, principal officer in the social inclusion and communities unit; and Mr. Ken Jordan, finance officer. We look forward to discussing the expenditure and activity of the Department in 2021 with the committee.

I have provided some detailed briefing in advance, focusing mainly on the Department’s activities in 2021 but also providing some background information on the Department since its establishment. This is the first time an appropriation account for the Department has been examined by the committee. It is, therefore, important to recall that the Department was established in July 2017. At that time, the community functions were transferred from the then Department of Housing, Planning, Community and Local Government and the rural development functions transferred from the then Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs. Subsequently, in January 2018, the community services programme was transferred to the Department and in September 2020, our functions were further widened to include responsibility for the Islands.

The Department has made significant progress since its establishment, including providing key inputs to the national development plan, NDP, developing and implementing five-year policy frameworks for both community development and rural development, and establishing a range of new schemes such as the rural regeneration and development fund and the community centres investment fund.

Before briefly focusing on 2021, I acknowledge and welcome the work of the Comptroller and Auditor General and the engagement of his team with the Department in recent years. This has helped the Department to continuously develop and improve its systems. In that context, since establishment, the Department has placed a very strong focus on its corporate functions, with an audit committee, an internal audit function, an inspection and compliance unit, an evaluation function and a risk management framework. These are all well established within the Department. Despite the many challenges of delivering such a diverse range of schemes, the well-developed control and risk framework ensures that the Department is well placed to minimise risk insofar as this is possible.

The Department’s gross expenditure in 2021 totalled €344.4 million, which included full use of a deferred capital surrender of €13.18 million carried forward from 2020. This expenditure resulted in a gross saving of €19.8 million, with €16.8 million of this carried forward for use in 2022. Therefore, approximately €3 million in gross allocation was surrendered to the Exchequer, with €2 million of this related to the pay and non-pay administration funding for the Department and the Charities Regulator. This strong expenditure outcome was in the context of a very challenging year, given the ongoing impacts of the Covid-19 pandemic.

A number of key deliverables are included for 2021. More than 4,000 locally led rural development projects were supported by the LEADER programme by the end of 2021, with €56 million spent in the year. The rural regeneration and development fund, RRDF, approved funding of €85 million for 25 projects throughout the country, with a spend of €24 million on previously approved projects.

The town and village renewal scheme supported town centre regeneration, remote working and streetscape improvements, with more than €24 million in funding for that purpose. The local improvement schemes delivered improvements to more than 600 roads, with almost €21 million in funding used for this purpose. The social inclusion and community activation programme and the community services programme deliver combined support of €94 million, helping to address disadvantage and secure vital community services. Supports for the community and voluntary sector total €17.5 million, which includes the scheme to support national organisations and support for public participation networks.

We all know the significant challenges faced in 2021 due to the pandemic, and the delivery of the larger projects within the RRDF was particularly impacted by construction site closures. The Department identified these challenges early in the year. The reallocation of resources at an early stage, and the use of capital carryover, ensured our resources were put to best use. The account also details the fact that in 2021, our audit and inspection functions identified claims made by Mayo County Council, under the outdoor recreation infrastructure scheme, for projects that were not completed. We have engaged extensively and intensively with Mayo County Council to identify and fully rectify the issues that gave rise to these claims being made when they should not have been. As chapter 6 shows, local authorities are vital for us to deliver on our mandate, with €193 million of our 2021 spend flowing through the local authority system. I note that, based on more than 450 project inspections over 2021 and 2022, the issues identified in Mayo County Council are very much an exception to the usual delivery by local authorities and our other delivery partners.

In closing, 2021 was a challenging year. However, the Department very effectively utilised its resources, working in partnership with many others, to ensure positive impacts for communities throughout the country.

I acknowledge that the committee’s invitation noted a particular interest in discussing Benefacts. As the committee is aware, the Benefacts funding relationship was not with this Department. However, I am more than happy to discuss this area, and the issue of the possible development of a national funding platform for grant applications and management in the context of central government funding for the community and voluntary sector. We look forward to engaging with the committee and answering any questions members may have.