Leo Varadkar (Dublin West, Fine Gael)
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Question 89: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the breakdown of grants-in-aid in 2007 and to date in 2008; and if she will make a statement on the matter. [25103/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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Grants-in-Aid are defined in the Department of Finance's Public Financial Procedures as differing in a number of respects from other voted grants. For example, one of the characteristics of a Grant-in-Aid is that any unexpended sum issued from a Grant-in-Aid Subhead is not liable to be surrendered to the Exchequer at the end of the year. However, strict instructions are in place to avoid monies being paid out which could remain unexpended at the year-end.

Only one Subhead in my Department's Vote is designated as a Grant-in-Aid Subhead. This Subhead relates to the part-funding of the Irish Auditing and Accounting Supervisory Authority (IAASA). My Department funds 40% of IAASA's core overall administrative costs, with the balance being provided by way of a levy on the prescribed accountancy bodies.

In 2007, a gross sum of €957,000 was paid in respect of IAASA's costs from the Grant-in-Aid Subhead in my Department's Vote. This is the full amount of the Authority's payroll costs, the payment of which is administered by my Department. However, as the total payroll costs exceed the 40% limit on Departmental funding, IAASA makes a refund to my Department to ensure that the Exchequer's net contribution is within the agreed limit. Thus in 2007, a refund of €310,095 was made to the Department by the Authority, leaving a net Exchequer payment of €646,905 to IAASA for the year.

For 2008, provision has been made for a gross payment of €1.547 million for IAASA in my Department's Vote. This amount will be reduced by an estimated refund of €398,000 from IAASA, leaving a net payment of €1.149 million. The increase in the Exchequer payment in 2008 reflects the fact that IAASA had a number of vacant posts in 2007, which led to the Authority underspending on its original allocation.