Dr. Graham Love:

I thank the committee for the invitation to contribute at this meeting. As I hope members will be aware, I recently took up the role as chief executive of the HEA - it was 12 days ago - and I look forward to getting to grips with the many challenges and opportunities facing the higher education sector.

Regarding the HEA's financial statements for 2015, I am pleased to note that these were signed by the Comptroller and Auditor General in June 2016 with no issues arising. I understand that the committee also wishes to talk to the HEA today about a number of issues relating to funding and governance in the higher education sector.

In terms of funding, the HEA is taking a proactive approach to many of the challenges facing some of our institutions. In the case of institutes of technology, IOTs, the HEA conducted an in-depth review of the financial health of the IOT sector in 2016. This review provided evidence of the serious financial position of many IOTs and, arising from it, the HEA is progressing an action plan to address many of these issues together with the IOTs.

This year, the HEA commenced a review of its allocation model for the funding of higher education institutions. The review is designed to ensure that Exchequer funding for the higher education sector is structured in such a way as to deliver on national objectives, reinforce mission diversity, ensure sustainability and quality and drive performance.

Since 2015, the HEA has reviewed its approach to the oversight and governance of higher education institutions. This resulted in the development and implementation of a governance framework for the higher education system. The framework consists of many new elements underpinning good governance practice, for example, more detailed governance reporting requirements and financial memorandums between institutions. Another important feature of the framework is an annual rolling review of corporate governance compliance. The first of these was commenced in 2016, focused on procurement practices and drew on many of the findings and discussions that have taken place at this committee regarding higher education institutions' compliance with national procurement guidelines.

The governance framework also deals with issues relating to the timeliness of financial statements, which was addressed in the Comptroller and Auditor General's recent report on financial reporting in the public sector. The delays in institutions' submissions of their financial statements are regrettable, but can in the main be attributed to circumstances and accounting issues unique to the higher education sector. I am pleased to note the progress that has been made in recent years in reducing these delays and, on behalf of the HEA, I am grateful to the Office of the Comptroller and Auditor General for the attention it has given this matter and the constructive way that it is working in partnership with the HEA to address the issues.

I wish to touch on issues relating to protected disclosures in University of Limerick, UL. These matters have been the subject of much debate and comment, including in the media, and are clearly sensitive and serious in nature. The HEA's role has in the first instance been that of a recipient of the protected disclosures. We have met and engaged with the disclosers and the university since early 2015. This process of engagement culminated in the Mazars report published last year into the processes employed by UL to inquire into the original allegations and then an attempted facilitation process to explore the possibility of addressing and resolving the issues. It is regrettable that these issues have yet to be resolved and have resulted in hurt and distress for the individuals concerned as well as damage to the reputation of the university. As the HEA has in effect exhausted its powers in this regard, we have raised the matter with the Department of Education and Skills, which I understand has had engagement with the university recently on the matter.

I will be happy to brief the committee with an update on the IOT merger process. Four consortia are applying to become technological universities. Each consortium is at a different stage, but all have and are making considerable progress towards merging and achieving technological university, TU, designation. The HEA's briefing paper to the committee addresses this in further detail.

I am happy to answer whatever questions the committee may have. I hope that members will understand that, having only recently taken up the CEO role, I am still familiarising myself with much of the detail of the issues and will defer on occasion to my colleagues to ensure that we address the questions asked.