Joe Costello (Dublin Central, Labour) | Oireachtas source

The Government's international aid programme, Irish Aid, which is managed by my Department, is recognised internationally for its effectiveness in delivering results for the poorest and most vulnerable communities.

Approximately one quarter of Ireland’s overseas development assistance is channelled through non-governmental organisations, NGOs. This reflects the strong contribution Irish NGOs make in the fight against world poverty and hunger, and the broad support they continue to receive from the Irish public. Given the level of Government funding for the NGO sector their internal governance arrangements are a matter of legitimate public interest. NGOs are independent organisations and the salary levels of their employees are determined by their boards.

All NGO applications for funding are required to include information on the formal decision-making structure in the organisation which has legal responsibility for the administration and use of Irish Aid funds. The Department applies a series of rigorous appraisal criteria to all NGO funding applications. In particular it assesses the cost efficiency and effectiveness of programmes on the basis of NGO expenditure decisions. Grants are only dispersed once a framework of realistic and measurable results is agreed. Financing agreements between Irish Aid and NGO partners include clear parameters and administration costs for major funding partnerships. A limit of 6% of funding provided can be allocated to administration costs with remuneration levels for senior executives being reviewed in the context of the overall administration costs.

Irish Aid ensures funding is used for its intended purposes. The review of annual and financial reports is set against agreed objectives and budgets. These desk reviews are also supplemented by field monitoring visits, evaluations, audits and ongoing reviews of compliance. In 2012 Irish Aid entered into agreements for a new series of programme grants with the larger Irish development NGOs for their long-term development work over a four-year period. These NGOs must adhere to standards above and beyond those mandated currently in Irish law including, notably, best practice for financial reporting based on the statement of recommended practice in place in the UK. NGOs receiving programme grants are required to set out in their published audited accounts the number of staff in receipt of salaries above €70,000. Contracts signed between Irish Aid and NGO partners stipulate that annual audited accounts must be submitted as part of the annual reporting process. Irish Aid also requires partners to publish their audited accounts on their websites.

Additional information not given on the floor of the House

My Department also provides funding to the Ireland-United States Commission for Educational Exchange (the Fulbright Commission), which has charitable tax-exempt status with the Irish Revenue Commissioners, on an annual basis. The Commission is also funded by the United States Government. The Commission was established by the Educational Exchange (Ireland and the United States of America) Act, 1991 to facilitate the administration of educational and cultural exchanges between Ireland and the United States of America. The members of the Commission are nominated by the Minister for Foreign Affairs and Trade and by the U. S. Ambassador to Ireland. While terms and conditions, including staff salary levels, are set by the Commission itself, details of the staff salary levels are made available to my Department. I understand that these salary levels are comparable to those offered for similar-level administrative posts in the public sector.Members of the Commission do not receive remuneration.

Through the Reconciliation and Anti-Sectarianism Funds, which support cross-community outreach in Northern Ireland and the border counties, cross-border co-operation and sensitive commemorative and cultural events, my Department paid grants to a total of 155 organisations in 2013. The Funds receive applications from a range of non-governmental organisations (NGOs), community groups, and voluntary organisations. Funding is awarded for project costs only and it has been a long-standing policy that salary costs are generally ineligible for support from the Funds.

Applicants are closely scrutinised before funding is awarded and there are robust mechanisms in place for annual reporting and accounting by recipient organisations. Organisations in receipt of grants of €10,000 and above are required to submit a tax clearance certificate from the Revenue Commissioners and those in receipt of grants of €12,500 and above are required to submit independently audited accounts.

The Emigrant Support Programme provides funding to non-profit organisations and projects to support Irish communities overseas and to facilitate the development of more strategic links between Ireland and the global Irish. Applicant organisations to the Emigrant Support Programme should be established as registered charities, charitable bodies or voluntary/not for profit organizations. Applicants must apply for funding yearly and organisations receiving grants under the Programme are required to submit a financial report for each programme funded, together with certified or audited accounts.

The vast majority of funding under the Emigrant Support Programme is provided to organisations overseas, with approximately 18% allocated to Irish-based organisations in 2013. Given the geographic breadth of the organisations supported by the Emigrant Support Programme, it would not be appropriate to benchmark any salaries against Irish public service scales. However, the Programme has been engaged in audits of specific organisations from year to year to ensure value for money.

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