Michael Kitt (Galway East, Fianna Fail)

Irish Aid has in place rigorous accounting and audit controls. Audits of the Irish Aid programme are undertaken on the basis of a three year rolling work plan, managed by the evaluation and audit unit, with clear priority being given to the audit of expenditure in programme countries. The strategy embraces four separate, though very complementary, approaches: (a) work carried out directly by Irish Aid's evaluation and audit unit and by our internal auditors based at missions in programme countries; (b) work carried out by internationally reputable audit firms commissioned by Irish Aid; (c) joint donor funded audits of specific programmes, for example, of the health sector in Mozambique, where Ireland jointly funds an audit with Canada, Denmark and Switzerland; and (d) audit reports obtained from partner organisations, for example, those carried out by national audit offices and by non-governmental organisations.

Our own internal auditors, based in our missions in the programme countries, implement an audit programme which consists of the independent examination of partner organisations in receipt of Irish Aid funding. Where any issues of concern arise, senior management is alerted. Management in turn has the responsibility of providing responses to such audit queries and to follow-up on the implementation of the recommendations made.

In addition to the above, the internal auditors actively review the controls in place at our missions. The missions, moreover, are audited annually by internationally reputable audit firms.

NGO partner organisations funded by Irish Aid are subject to external audits. They are funded under the multi-annual programme scheme or the Civil Society Fund, and are required to submit their annual audited financial statements to Irish Aid.

The evaluation and audit unit also conducts its own internal audit-review work of NGO partners as part of its evaluation and audit work programme. This will be further developed in the period ahead.

In addition to those robust internal systems, the Department has an audit committee which reports to the Secretary General. It provides an independent appraisal of the Department's audit and evaluation arrangements through regular interaction with the evaluation and audit unit and senior management.

Regular reviews of the overall audit approach, audit work programmes and resources are undertaken by management to ensure that developments in audit keep abreast of the challenges posed by the expanding programme. The audit committee also reviews the overall audit approach and work plans of the evaluation and audit unit.

See this speech in context