John Deasy (Waterford, Fine Gael)
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Question 102: To ask the Minister for Foreign Affairs the details of the eight audit reports covering Irish Aid spending, produced as a result of the audit visits carried out by the evaluation and audit unit in 2006 and 2007; and if he will make a statement on the matter. [12633/08]

Michael Kitt (Galway East, Fianna Fail)
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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. During 2006 and 2007 eight visits took place to programme countries covering a range of aspects of the audit process.

The countries and number of times visited were: Mozambique (2), Zambia (2), Ethiopia, Tanzania, South Africa and Uganda. The purpose of the visits varied from recruitment and induction of newly recruited internal auditors, presentations and updates on audit to Heads of Missions, attendance at training courses on Public Financial Management in Africa, visit by a member of the independent audit committee and audits on Irish Aid programme expenditure.

The reports and information prepared include details of recruitment and induction carried out, minutes of meetings held, documentation on training courses and reports on findings and recommendations made.

The findings and recommendations arising from these visits are geared towards strengthening the existing systems to cater for the expanding budget of Irish Aid. Examples include:

A recommendation to strengthen Irish Aid's approach to assessing partners' governance and financial systems prior to funding being committed. This has been implemented.

A recommendation that Embassies should introduce a uniform checklist for use prior to payments of grants to partners. This recommendation has been implemented, and the checklist ensures that all necessary approvals and documentation are in order when payment is being made.

The need to strengthen partners' reporting on the use of Irish Aid funds and ensure that the Embassies have a formal system to review these reports. This recommendation has been implemented.

A recommendation that Irish Aid should host Public Financial Management training courses for Embassy-based staff to enhance their capacity to work with government partners to strengthen their systems of financial control. This recommendation has been implemented.

John Deasy (Waterford, Fine Gael)
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Question 103: To ask the Minister for Foreign Affairs the changes to the oversight and control of Irish Aid spending in recipient countries that have been recommended as a result of the audit visits carried out by the evaluation and audit unit in 2006 and 2007; the recommended changes that have been implemented; and if he will make a statement on the matter. [12634/08]

John Deasy (Waterford, Fine Gael)
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Question 105: To ask the Minister for Foreign Affairs the changes to the oversight and control of Irish Aid spending in recipient countries that were recommended in 2006 and 2007 by Irish Aid internal auditors based on location at Irish Aid missions; the recommended changes that have been implemented; and if he will make a statement on the matter. [12636/08]

John Deasy (Waterford, Fine Gael)
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Question 106: To ask the Minister for Foreign Affairs the changes to the oversight and control of Irish Aid spending in recipient countries recommended in 2006 and 2007 by joint donor funded audits; the recommended changes that have been implemented; and if he will make a statement on the matter. [12637/08]

John Deasy (Waterford, Fine Gael)
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Question 107: To ask the Minister for Foreign Affairs the changes to the oversight and control of Irish Aid spending in recipient countries recommended in 2006 and 2007 by audit reports obtained from partner organisations; the recommended changes that have been implemented; and if he will make a statement on the matter. [12638/08]

John Deasy (Waterford, Fine Gael)
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Question 108: To ask the Minister for Foreign Affairs the concerns regarding oversight and control of Irish Aid spending in recipient countries that were brought to the attention of senior management in 2006 and 2007; the changes that were implemented as a result of these concerns; and if he will make a statement on the matter. [12639/08]

Michael Kitt (Galway East, Fianna Fail)
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I propose to take Questions Nos. 103 and 105 to 108, inclusive, together.

The work programme of the Evaluation and Audit Unit is primarily focused on providing assurance with regard to monies already spent by Irish Aid in recipient countries. I would emphasise also that Irish Aid has in place robust systems for oversight and control of spending that commence before funding is even committed. In this regard, major programme expenditure to recipient countries (and large Irish NGOs) is subject to a comprehensive approval process by a Project Approval and Evaluation Group (PAEG). The group is chaired by the Director or Deputy Director General of Irish Aid. Its members include independent external consultants who review all expenditure proposals. The approval process includes a risk assessment, which aims to ensure that risks are considered at the commencement of Irish Aid's support for a programme, and that appropriate mitigation strategies are embedded in the programme.

A key element of oversight and control is the Irish Aid financial procedures manual which contains clear, centralised rules against which all the programme country missions are audited. This manual is regularly reviewed. In addition each of the missions has suitably skilled finance and audit personnel whose job is to assist and advise management on the implementation of these procedures.

The Evaluation and Audit Unit's audit process is an important oversight mechanism for Irish Aid programme country expenditure and is organised as follows:

(a) Work carried out directly by Irish Aid's Evaluation and Audit Unit, and by 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 (e.g. 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 (e.g. those carried out by National Audit Offices and by non-governmental Organisations).

The day to day work of the Internal Auditors in programme countries, which is overseen by the Evaluation and Audit Unit at Headquarters, focuses on issues arising in all audit reports received. Based on the audit work described above, issues can arise at the Missions, but more generally in partner organisations (both Governments and NGOs). The Internal Auditors, together with Embassy-based Programme Development Staff, work together with these partner organisations to assist with the implementation of audit recommendations. In some cases this means assisting with strengthening the capacity and systems of these partners.

Some examples of changes to oversight and control on Irish Aid spending, introduced as a result of audit work, are as follows:

The implementation by Irish Aid of an agreed approach to assessing partners' governance and financial systems prior to funding being committed.

The introduction of a uniform checklist for use in all Embassies prior to payments of grants to partners. This will ensure that all necessary approvals and documentation are in order when payment is being made.

Strengthening of partners' reporting on the use of Irish Aid funds and ensuring that the Embassies have a formal system to review these reports.

Hosting Public Financial Management training courses for Embassy-based staff to enhance their capacity to work with government partners to strengthen their systems of financial control.

The Department's Audit Committee provides an independent appraisal of Irish Aid's audit and evaluation arrangements through regular interaction and follow-up with the Evaluation and Audit Unit and with Senior Management. The Committee meets regularly with the Secretary General and, annually, with the Comptroller and Auditor General. It also publishes an annual report on its work. The Audit Committee actively monitors implementation of the recommendations of their reports.

John Deasy (Waterford, Fine Gael)
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Question 104: To ask the Minister for Foreign Affairs the number of Irish Aid internal auditors based on location at Irish Aid missions; and the location of each of these auditors. [12635/08]

Michael Kitt (Galway East, Fianna Fail)
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Irish Aid has seven internal auditors based at its missions abroad. The locations in question are Ethiopia, Uganda, Tanzania, Mozambique, Zambia (Lusaka), Zambia (Northern Province) and Lesotho.