Mr. Seamus McCarthy:

Gabhaim buíochas leis an Leas-Chathaoirleach. The Health Information and Quality Authority was established in 2007. Its primary functions are to set standards and regulate health and social care services, and to advise on the collection and sharing of information across healthcare services. Much of the authority’s work is focused on inspections across the disability, older people’s and children’s sectors. Designated residential care centres must formally register with the authority.

The authority’s financial statements, like some others in the broader health sector, are presented with separate income and expenditure accounts, covering current and capital spending. The income and expenditure account on the current side records total income in 2023 of €38.5 million. Of this, €7.4 million, or around 19%, was received from registration and annual fees paid by regulated residential centres. Most of the remaining income in 2023 was received from the Vote for health. Some €1.1 million was received form the Vote for children, equality, disability, integration and youth. The latter was provided in respect of the authority’s role in monitoring the International Protection Accommodation Services' residential facilities.

The authority’s recurrent expenditure in 2023 was €38.3 million, of which 75% related to staff costs. In 2023, the authority’s average headcount was 351, with 80% of those staff employed in regulation functions. The authority recognised capital funding of €5.8 million in 2023, including €4.78 million from the Vote for health, as reflected in the capital income and expenditure account. Total capital expenditure was also €5.8 million, €2.3 million of which was spent on what is referred to as "software in the cloud". This expenditure relates mainly to the costs of a major ongoing ICT project for the development of new regulatory software systems for the authority, to be hosted by an external service provider under a multi-year service contract. The ICT software development costs are a charge on the authority’s capital income and expenditure account, but under accounting standards, they do not result in the creation of a related intangible asset on the authority’s statement of financial position.

I issued a qualified audit opinion in respect of the authority’s financial statements for 2023. The qualification is only in relation to the authority’s accounting treatment for pensions. As provided for by law, the Minister for Health has elected to direct certain health sector bodies, including the authority, to account for staff pensions as they are paid. Generally accepted accounting practice requires recognition of pension liabilities as they accrue.

Other than that, I am satisfied that the financial statements give a true and fair view of the authority’s financial position at the year's end and of the transactions for the year.