Seanad debates

Friday, 12 March 2021

Nithe i dtosach suíonna - Commencement Matters

Health Services Funding

10:30 am

Photo of Rónán MullenRónán Mullen (Independent)
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Gabhaim buíochas leis an gCathaoirleach faoi dhó agus fearaim fáilte roimh an Aire Stáit agus míle buíochas di as a bheith inár measc agus guím Lá Fhéile Pádraig sona di, ar ndóigh. Tá súil agam go mbainfidh sí taitneamh as cibé beagáinín de shaoire a bheidh aici ar an lá sin.

It is now five years since the controversy surrounding charitable and voluntary organisations such as GOAL, Console and the Central Remedial Clinic. As the House might recall, taxpayers' funding that was given to these organisations, as well as funds donated by ordinary citizens, were abused and misappropriated. This behaviour went unchecked due to poor corporate governance, shoddy accountancy practices and the lack of proper oversight by government and particularly the Departments that provided funding. I hoped we had moved beyond that culture. I thought, as I am sure other Senators had thought, that strict governance and accounting conditions now applied before any State funding would be given to voluntary organisations.

I was surprised to read a report recently about an organisation called Transgender Equality Network Ireland, a company limited by guarantee, or TENI.

Photo of Mary Seery KearneyMary Seery Kearney (Fine Gael)
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I urge the Senator to be cautious in referring to persons or naming any organisation outside the House.

Photo of Rónán MullenRónán Mullen (Independent)
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Absolutely. I understand those concerns. In the preparation of this matter I supplied the details of this to the Government. I take this opportunity, for the avoidance of doubt, that it does not matter to me what organisation is involved but it is the principle when it comes to using almost €750,000 in taxpayers' money over a period of years. It is of no concern to me what organisation is involved, what it does or what it stands for. It is the principle of how taxpayers' money is disbursed that is my only concern in bringing this matter before the House. What I have said so far is on the public record.

In January this year this group filed accounts for 2018 at the Companies Registration Office, CRO, and as I understand it this was almost two years beyond the point where they were due to be filed. The accounts for 2019, due to be filed with the CRO in early 2020, are still outstanding, and the accounts for 2020, due to be filed with the CRO earlier this year, are still outstanding. These filings are a matter of public record at the CRO, and despite apparently failing to file audited accounts for 2018, 2019 or 2020, this organisation received €326,000 from the HSE in 2019 and €180,000 in 202. Moreover, it has been given a commitment to get €230,000 in 2021. Is it not extraordinary that a group three years behind in filing audited accounts continues to receive funding like this?

For the benefit of the Senators who represent political parties, I point out the following by way of contrast. Section 40 of the Electoral (Amendment) (Political Funding) Act 2012 introduced a requirement that political parties would receive no Exchequer funding in any calendar year unless audited accounts for the previous year had been submitted and signed off by the Standards in Public Office Commission. In other words, if a political party did what this group has done, it would not have got a single penny for 2019, 2020 or 2021. This organisation has had nearly €750,000 doled out to it by the HSE in that time. To put that in perspective, it is nearly double what the Labour Party got in Exchequer funding last year and this year.

I am not for a moment suggesting this organisation or any person in its management has committed any wrongdoing. I stress here again that my position here is that sauce for the goose is sauce for the gander. However, one of the reasons we provide funding in the first place is so these organisations can pay to put adequate systems of accounting and financial controls in place.This seems to me to be totally unacceptable and I look forward to the Minister of State's response.

Photo of Anne RabbitteAnne Rabbitte (Galway East, Fianna Fail)
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I am taking this matter on behalf of the Minister for Health, Deputy Stephen Donnelly, and it is his script I am responding with. I thank Senator Mullen for raising the issue and giving me the opportunity to outline the position to the House.

The Department of Health's role is to provide strategic leadership for the health service and to ensure that Government policies are translated into actions and implemented effectively. This includes governance and performance oversight to ensure accountable and high-quality service. Any proposal to provide Exchequer funding would require detailed consideration of the service need and potential costs and the decision would then be subject to public procurement rules. Any organisation funded from the Exchequer is required to conform to the Government principles as outlined in the service arrangement and Department of Public Expenditure and Reform Circular 13/2014, Management of and Accountability for Grants from Exchequer Funds. This circular outlines the public financial management principles, procedures and additional reporting requirements to be followed in the management of grant funding provided from public money, as well as the reclassification of grants and grant-in-aid.

The overall principle is that there should be transparency and accountability in the management of public money, in line with economy, efficiency and effectiveness. In general, good governance is central to how State agencies direct and control their functions and relate to their stakeholders to manage their business, achieve their mission and objectives and meet the necessary standards of accountability, integrity and propriety. All bodies that fall under the Department must comply in full with the code of practice for governance of State bodies.

In relation to HSE-funded services, sections 38 and 39 of the Health Act 2004, as amended, provide for the HSE to contract with a non-statutory body to provide health and other allied services on its behalf. As part of a HSE-wide initiative to improve governance arrangements for the funding of non-statutory agencies, a national compliance framework has been developed to ensure a consistent approach.

Where the annual funding allocated for the contracted service is less than €250,000, the oversight and governance arrangements are defined via a grant aid arrangement. Where the annual funding allocated for the contracted service exceeds €250,000, the oversight and governance arrangements for the contracted services are defined via a service level agreement signed between the HSE and the voluntary agency. The provider is required to provide an annual report to the HSE in respect of the service no later than 30 September each year.

For all section 38 funding arrangements, as well as those section 39 funding arrangements in excess of €3 million in annual funding, an annual compliance statement is required to be submitted to the HSE compliance unit by the agency, which relates to compliance with corporate governance requirements for the prior year. Within the HSE, the non-statutory sector compliance unit evaluates the annual compliance statements received from the section 38 and section 39 agencies that are required to submit such a compliance statement and the compliance documentation and guidance are reviewed and updated annually, as required.

Photo of Rónán MullenRónán Mullen (Independent)
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I thank the Minister of State for her reply but she is in the unfortunate position, as Ministers often are here, of having to deliver a speech on behalf of another Minister. I listened carefully but did not hear the answer to the core issue, which is whether an organisation that has not submitted audited accounts should be getting State money. The serious questions I have remain, namely, whether it is common practice that the HSE or the Department of Health would commit funding to organisations that have not filed audited accounts in successive years, whether the timely filing of audited accounts is not a condition of receiving funding in the first place and whether this is the only organisation that has been treated this way, which I would find hard to believe. Surely we all agree that every euro of taxpayers' money must be subject to the same controls and safeguards. It is no fault of the Minister of State but I am not happy that I have received any kind of response to the substance of the questions I have asked.

Photo of Anne RabbitteAnne Rabbitte (Galway East, Fianna Fail)
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Perhaps the second concluding part of it will address that. I am scanning over it in the time allocated.

Additionally, it should be noted that, in accordance with the above, all providers in receipt of funding are contractually obliged to adhere to all relevant legislation, which includes company law legislation as applicable to other organisations.HSE national mental health is aware of the Companies Registration Office, CRO, audited accounts filing by the company that has been referenced by the Senator. The reason these documents were late was due to a staffing issue, which has now been resolved. The 2018 accounts were filed with the CRO in December 2020 and were reviewed. The 2019 accounts are complete and are in the process of being signed by the directors and will be filed thereafter. The 2020 audit will commence shortly and will be filed on time from this point forward. The HSE is in constant communication with the group and receives regular finance and service updates. At no stage was there a reluctance from this organisation to engage with the HSE and all explanations were furnished. This addresses the point that the HSE has been continually in contact with the group. There was a staffing issue but files have been lodged. That is my understanding from the information given to me by the Minister.