Mr. Paul O'Toole:

My colleagues and I are pleased to assist the committee's consideration of the SOLAS 2016 Financial Statements in the context of the ETB sector. During 2016 SOLAS provided a net €538.2 million in funding to education and training boards, ETBs, to support its provision of a suite of further education and training opportunities to more than 300,000 learner beneficiaries. This provision was delivered to meet learner, enterprise and community needs and opportunities across the full spectrum of further education and training. For example, an estimated 14,000 learners undertook specific skills courses in areas with employment opportunities and more than 40,000 learners received support to improve their literacy and numeracy.

The delivery of this provision took place against the backdrop of the wide-ranging and continuing reform of the further education and training sector. Since the establishment of SOLAS in late 2013 and the transfer of training responsibilities and associated resources to education and training boards during 2014, SOLAS has worked with education and training boards and in conjunction with the Department of Education and Skills to improve further education and training in Ireland. A body of reforms and improvement programmes have been initiated, are completed or are in train. We expect this process to continue.

The ultimate objective of the reform of the further education and training, FET, sector is to achieve better, measurable improvements to the outcomes for FET learners in terms of their employability, their progression to other further or higher education options, and their participation in life-long learning, as well as societal equity for those experiencing disadvantage in this respect. The achievement of these goals will yield demonstrable benefits to employers seeking employees with FET level skills, as well as benefits for communities in general. In pursuit of this reform programme a range of measures have been put in place and are being implemented. Details of these have been provided in the briefing note for today’s meeting and my colleagues and I will be happy to provide further detail or clarification as may be required by the committee.

While SOLAS does not have a role in the institutional governance of education and training boards as statutory bodies in their own right, we clearly understand and accept our responsibilities in respect of the grants provided by SOLAS to the ETBs. We adopt a multi-layered approach in respect of the governance and oversight of the funding we provide. Key elements of this approach include the preparation and issue by SOLAS of a national parameters and guidelines’ document to each ETB which sets out a framework of requirements arising from policy objectives of the Department of Education and Skills and other Departments, together with a range of reporting and other requirements. These policy instruments include the action plan for education 2016 to 2019; the further education and training strategy 2014 to 2019; the national skills strategy 2025; the action plan for jobs; pathways to work; and a number of social inclusion polices such as the comprehensive employment framework for people with disabilities.

ETBs are requested to develop a proposed response to the above in respect of their catchment areas and taking into account local conditions. They are provided with an initial financial ‘envelope’ to assist planning. Actual financial allocations are not confirmed until the end of the process. This approach seeks to combine a top-down approach reflecting national priorities with a bottom-up approach which reflects local needs and opportunities. Further steps will be outlined later in this statement. On completion of the planning process, which involves significant interaction between SOLAS and ETBs, individual service plans are agreed for the provision of FET activities in each ETB and combined to produce an annual FET services plan. The SOLAS board approves this plan and the individual block grant to each ETB. A detailed review of expenditure and activity is carried out mid-year, in May; at the end of the third quarter, in September; and at year end, in December. ETBs declare funding which is no longer required or may seek additional funding. Their grant allocations are then adjusted accordingly and with board approval.

This is within the financial year in question and subsequently. This ensures that SOLAS and education and training boards, ETBs, apply the claw back principles envisaged under the Department of Public Expenditure and Reform, Circular 13/2014.

The reporting process is subject to a significant level of review. SOLAS receives an annual, formal, declaration regarding further education and training, FET, expenditure from each ETB, which is signed by its CEO and finance officer. This confirms that all funds received by the ETBs have been spent appropriately and in line with requirements, terms and conditions by SOLAS. ETBs also provide their final audited accounts and these are used for review and final reconciliation purposes by SOLAS, comparing previous returns with the audited accounts and making any final funding adjustments that may be required.

SOLAS is represented on the ETB internal audit committee and has access to relevant findings and reports in respect of further education and training. SOLAS participates on the ETB-SOLAS programme management board operated by the Department of Education and Skills and also contributes to a number of specific projects being undertaken by the programme management office.

While very substantial progress has been achieved since 2014 in the reform of further education and training, SOLAS recognises that the process of reform must continue. A series of enhancements to improve the effectiveness of further education and training, through its continual improvement, are in train and include the introduction of new strategic performance agreements with ETBs, a revised funding model and the adoption of appropriate outcome targets.