Mr. Gavan O'Leary:

I am one of the assistant secretaries in the Department of Education. In beginning my statement, I have been asked to convey the sincere apologies of my Secretary General, Ms Bernie McNally, for not being able to attend the committee today. Unfortunately, she is unwell, and in line with current public health advice she is self-isolating and unable to be here.

I thank the committee the invitation to attend today to discuss the Department of Education 2020 appropriation accounts, chapter 7 of the Comptroller and Auditor General's Report on the Accounts of the Public Services 2018, which deals with the purchase of sites for school provision, and chapter 8 of the 2019 report, which deals with the management of the schools estate. As indicated by the Chairman, I am joined by officials from the Department who will cover various aspects of the matters under discussion. We are also joined remotely by three assistant secretaries covering different areas of the Department. We have provided the committee with briefing material in advance and hope this has been of some assistance.

As the committee is aware, a new Department of Further and Higher Education, Research, Innovation and Science was established after the formation of the new Government in 2020. Functions previously performed by the Department of Education and Skills were transferred to the Department of Further and Higher Education, Research, Innovation and Science in 2020. The Vote 26 2020 accounts cover those functions that remain with the Department of Education and relate predominantly to primary and post-primary education.

The Department's net voted expenditure in 2020 was €8.379 billion. Of this, €925 million was capital expenditure. Net pay and superannuation account for approximately 78% of the Department's overall budget. In 2020, this provided for almost 93,000 public service employees and 42,000 public service pensioners.

The Department’s programme expenditure now covers one programme area, namely, programme A. The overall net expenditure for 2020 was €8.241 billion and covered, for example, pay and superannuation costs for teachers and special needs assistants; grants to schools, including capitation payments; costs associated with teacher education; and provision of school transport. This sum also covered additional costs arising due to the impact on schools of Covid-19.

Due to the transfer of functions I referred to earlier, the Department's Revised Estimates Volume, REV, was further revised to take account of the transfer of functions in 2020. Funding was also allocated as part of the further Revised Estimates process to cover costs arising due to Covid-19. In July 2020, the Government agreed a living with Covid package, which made funding available from the Covid-19 reserve fund to support the reopening of schools in September 2020.

As the impacts of Covid-19 developed, supplementary supports were also agreed during the remainder of 2020 and beyond. The funding for these supports totalled €639 million for the 2020-21 school year. Of this, €331 million was allocated for expenditure in 2020. This was allocated to cover additional costs arising due to Covid-19, such as additional substitution to cover teacher absences on sick leave, additional capital works to schools to enhance their safety in a Covid-19 environment, capitation for personal protective equipment, PPE, hand sanitisers etc. and school transport. The full amount was not spent in 2020. However, due to the uncertainties arising from Covid-19, it was prudent to make provision in the Vote for more negative scenarios in the later months of 2020.

Moving to procurement, the statement of internal financial control that forms part of the appropriation account provides details regarding the control systems in place. It also notes details of instances of non-compliance with public procurement rules. Such instances have arisen for reasons such as urgency, need for business continuity and sole supplier. The Department is vigilant regarding good procurement practice and is committed to following the guidance available. The Department is actively engaged with the procurement reform programme and is taking the opportunity to use centralised contracts and frameworks where appropriate.

On the question of public sector reform, the statement on internal financial control also notes the Department activity in the area of shared services. The Department is advancing a range of initiatives across the entire education and training sector and is actively leading and participating in the rolling out of shared services.

On the school capital programme, this committee meeting will also discuss chapter 7 on the purchase of sites for school provision and chapter 8 on the management of the schools estate. These chapters included a number of recommendations from the Comptroller and Auditor General. The Department is actively addressing these recommendations, with significant progress made. The Department is taking every opportunity to continuously improve and strengthen its processes through its integration and harnessing of data, allowing for better strategic planning and delivery of its overall school building programme.

I will mention briefly some developments in 2021 and 2022. The Covid-19 pandemic had an impact on the Department's activity in an unprecedented manner and the 2020 accounts. This impact has continued into 2021 and 2022. The education system's response was aligned to our core national priority of saving lives while being focused on ensuring continuity of education for learners, including a particular focus on more vulnerable students.

On the Ukrainian crisis, the arrival of a large number of Ukrainian children of schoolgoing age has created challenges in finding school places for them and responding to their needs. There is a significant cost associated with this important work, which will be reflected in the 2022 accounts.

On special education needs, more than €2 billion of the Department’s budget is invested in special education needs. A significant amount has been achieved. For example, by the end of this year we will have 2,500 special classes across the country. However, there is still an amount to be done and the Department is working intensively to ensure that all children with special educational needs can access a high quality and inclusive education in their locality. I thank members for the opportunity to address the committee. We are happy to take any questions.