Mary Coughlan (Donegal South West, Fianna Fail)

My Department and I closely monitor the operation of FÁS and the implementation of its labour market programmes. The medium-term policy direction of FÁS is set out in its multi-annual statement of strategy, which is developed in close co-operation with officials in my Department. Overall responsibility for the management of FÁS lies with its board. Its internal governance structures include an executive board comprising the director general and seven assistant directors general. The executive board reports to the senior board.

Senior officials from my Department meet senior executives in FÁS on a regular basis to maintain the alignment of Government policy with programme delivery. In addition, a senior official from my Department is a member of the board of FÁS. The budget for FÁS is agreed on the basis of detailed discussions between FÁS, my Department and the Department of Finance in the context of the annual Estimates process. The allocation of funding to FÁS is aligned to Government policy in the context of the provision of active labour market supports to meet the changing needs of the labour market.

The annual financial accounts of FÁS are audited by the Comptroller and Auditor General. These accounts include a number of statements relating to financial compliance, which form part of the FÁS annual report and, in accordance with the provisions of the Labour Services Act 1987, are presented to me by FÁS and laid before the Houses of the Oireachtas.

When issues of concern relating to expenditure in FÁS were brought to my attention following my appointment as Minister for Enterprise, Trade and Employment last year, I acted quickly to seek assurances from FÁS that the issues highlighted by the Comptroller and Auditor General's value for money report had been addressed. I then proceeded to request the Comptroller and Auditor General to carry out an examination of the activities of the FÁS corporate affairs division since 2000 and to report on the effectiveness of management and control systems across the FÁS organisation. I have recently received a report from the Comptroller and Auditor General that deals with the examination of advertising and promotion in FÁS and it forms part of this investigation. This report will be laid before the House in due course.

In addition, my Department is currently carrying out a review into the active labour market programmes funded by my Department, including those delivered by FÁS. The review focuses on the efficiency and effectiveness of these programmes in the context of current labour market policy changes and challenges. The review will draw conclusions on the balance of resources and the rationale for the allocation of public funding in the context of current and future labour market policy challenges, including the implementation of the national skills strategy. It is expected that these conclusions will inform policy decisions on the allocation of funding in the context of the Estimates campaigns of 2010 and future years.

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