Mr. Seamus McCarthy:

Gabhaim buíochas leis an gCathaoirleach. The 2023 appropriation accounts for Vote 20 - An Garda Síochána recorded gross expenditure of €2.3 billion. This was an increase of just over €150 million, or 7%, on the prior year. Expenditure related to the payment of salaries, wages and allowances totalled €1.4 billion in 2023. An Garda Síochána spent a further €426 million on pension and gratuity payments to retired gardaí. These two areas account for just under 80% of total expenditure in the period.

The Vote has a single expenditure programme encompassing all of An Garda Síochána's operations. Apart from standard administration cost categories, non-pay expenditure was incurred in service-specific areas such as transport, aircraft, communications and other specialist equipment and compensation for injuries in the line of duty or due to other causes of harm.

An Garda Síochána's capital building programme is a significant area of spending each year, with charges totalling €47.2 million in 2023. This includes payment of €17.5 million to the Office of Public Works in respect of An Garda Síochána's share of the cost of developing Terminal 7 in Rosslare Europort. It also includes expenditure of almost €6.5 million for the final phases of the substantial new Garda premises at Military Road in Kilmainham.

A total of €15 million of unspent capital funding was carried over to 2024, and the amount remaining unspent and liable for surrender at the end of the year was €10.3 million.

In my audit report, I state that I am of the opinion that the appropriation account properly presents the receipts and expenditure of Vote 20 for 2023, and that the account has been prepared in the form prescribed by the Minister for Public Expenditure, National Development Plan Delivery and Reform. Without qualifying my opinion, I consider that €10.9 million of the €17.5 million paid to the OPW in respect of the Rosslare Europort in 2023 was not compliant with the public financial procedures guidelines issued by the Department of public expenditure, or with the accounting policies issued by the Department for the 2023 appropriation accounts. The same accounting issue also affects three other Votes, and Chapter 3 of my report explains the matter in more detail. If Members wish to explore this issue further, it can be discussed with the Secretary General of the Department of public expenditure when he appears in a couple of weeks.

Separately, I drew attention to three other matters disclosed by the Accounting Officer for Vote 20 in the statement on internal financial control. These relate to non-compliant procurement by An Garda Síochána of €5.9 million worth of goods and services in 2023, certain weaknesses in relation to control of stocks, attributed to lack of availability of personnel, and the steps taken to address those weaknesses, an unprompted voluntary disclosure made by An Garda Síochána to the Revenue Commissioners, and payment of €7.5 million in respect of tax liabilities, on foot of a review of the payment of travel and subsistence claims. This matter was ongoing when the audit was being completed.

The report before the committee today examines the cost of policing non-public duty events, and controls over the recoupment of those costs, where considered appropriate. Non-public duty events include private or restricted-access gatherings, such as sporting fixtures, concerts and festivals where An Garda Síochána agrees with promoters or sponsors to provide additional policing services. The Commissioner may, by law, set charges to recover costs associated with policing non-public duty events. Clear policies and principles are required to determine in what circumstances cost recovery is appropriate, and to determine the setting of fees and charges when it is agreed that cost recovery should be pursued. In general terms, the policy is to recover full additional costs incurred related to commercial non-public duty events; not to pursue recovery of costs where an event has broad community or charitable purposes; and 50% recovery where there is a blend of public, community and private interests in an event.

In 2023, An Garda Síochána recovered just over €7 million through non-public duty fee charges. However, discrepancies were identified between actual policing costs incurred and the amounts recovered. At present, a flat rate of €45 per Garda hour is applied. This rate fails to account for overtime, and Sunday or bank-holiday premiums, and is applied to all ranks on duty. As a result, the report found the flat rate represents an assumed, rather than the actual, cost.

A review of a sample of 15 non-public duty events in 2022 and 2023 highlighted inconsistent application of the cost-recovery rate. For several large commercial events, the recorded Garda hours worked on the events exceeded those originally estimated, leading to shortfalls in cost recovery. The examination also found that decisions to waive or reduce fees were not sufficiently documented. This undermines the integrity of the charging regime and potentially results in subsidising commercial activity with public funds. Furthermore, we found fees charged were recorded on a stand-alone spreadsheet that is not integrated into Garda financial accounting records. There was no audit trail for the invoices that were raised, or subsequently reduced or cancelled. This exposes the organisation to an unnecessary level of financial risk.

The report made a number of recommendations aimed at addressing the weaknesses identified to align the non-public duty charging regime with actual policing costs, strengthen governance and safeguard public resources from inadvertent subsidisation of private events. I am glad to report that the Accounting Officer has accepted the recommendations and has outlined actions to implement them.