Dr. Graham Love:

I thank the committee for the invitation to speak to it. I am accompanied by my colleagues, Mr. Tim Conlon, interim head of system development and performance management; Ms Sheena Duffy, interim head of system funding and governance; and Mr. Stewart Roche, management accountant.

Every year the Higher Education Authority, HEA, allocates and distributes over €1 billion in funding across a range of funding streams to the higher education sector. As this is a major responsibility for an agency likes ours, I am happy to note that the HEA's financial statements for 2016 were signed by the Comptroller and Auditor General in June 2017 with no issues arising. Our draft 2017 statements have also recently been audited by the Comptroller and Auditor General and we are addressing follow-up queries. Today the committee will also discuss CIT's and UCC's financial statements. Our briefing paper addresses several issues related to these two institutions. I will be happy to provide further details of the HEA's engagement on these matters. The briefing paper also sets out other developments related to the higher education sector that are of interest to the committee.

The HEA continues to monitor University of Limerick's implementation of the recommendations arising from the Thorn report. It also engages with the university on how it is demonstrating to its staff, students, stakeholders and wider community its commitment to learning from the report and its findings. The HEA continues to fulfil its governance role through its rolling governance reviews. The first such review dealt with procurement and resulted in positive engagement with the sector, as well as key stakeholders such as the Office of Government Procurement and the Education Procurement Service. It has culminated in annual higher education procurement summits, most recently last month, and the introduction of a corporate procurement plan pack for institutions to adapt.

The second review dealt with intellectual property policies and arose directly from the engagement of the Committee of Public Accounts with the HEA and the higher education sector. This has been a valuable exercise, with important recommendations being implemented. This year's rolling reviews will focus on staff remuneration and benefits, as well as student non-progression.

In 2017 the committee had a productive engagement with the higher education sector on the timeliness of financial reporting. A clear message was sent to the HEA and the institutions we fund on the importance of preparing and submitting financial statements promptly. Previous delays inevitably had a knock-on effect. However, the HEA notes the improvements made, as reflected in the Comptroller and Auditor General's most recent report on public sector financial reporting. I again acknowledge the constructive engagement we have had with the Office of the Comptroller and Auditor General on these matters.

Since the HEA last appeared before the committee there have been several important developments in the higher education sector. On an operational level, the review of the funding model for higher education institutions was published. It will introduce important changes to the way in which the HEA allocates funding and seeks to incentivise institutions to target growth areas such as STEM subjects, lifelong, part-time and flexible learning. It also proposes the introduction of a financial penalty for serious breaches of governance by institutions.

On a wider strategic level, earlier this year the system performance framework for the period 2018 to 2020 was launched, with its focus on six key system objectives, ranging from meeting Ireland's skills requirements, improving equality of opportunity and improvements in governance. A key element is the next cycle of strategic dialogue with higher education institutions, whereby institutions' performance will be measured against these key objectives for the higher education system.

This year has seen the passing into law of the technological universities legalisation. This is an exciting step in the future of higher education which builds on the strengths and original missions of institutes of technology and also enhances their regional, national and international impact.

I acknowledge the role of the Committee of Public Accounts in its scrutiny of higher education matters. Last year's meetings with the HEA and institutions were robust and frank but also useful in bringing matters to the fore. The HEA sees the committee not only, rightly, as a watchdog but also a partner in improving governance and accountability in the higher education sector. This is a relationship that I, as chief executive of the HEA, believe it is important to continue to develop.