Denis Naughten (Roscommon-South Leitrim, Fine Gael)
Link to this: Individually | In context

Question 506: To ask the Minister for Health and Children if her Department or State and semi-State agencies under the control of her Department issue guidelines to voluntary groups provided with public funds as to the maximum percentage that should be allocated to administration; if guidelines are issued on salaries for employees of such groups; if value for money audits are carried out on such groups; the last year in which such an audit was performed on each group; and if she will make a statement on the matter. [1987/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

The main area of direct funding to voluntary groups by my Department is the National Childcare Investment Programme 20006-2010 (NCIP). This is managed by the Childcare Directorate of the Office of the Minister for Children and Youth Affairs. (OMCYA). The key elements of the NCIP are the delivery of a capital grant scheme to develop childcare facilities, which is open to both commercial and community-based providers including voluntary groups, and the Community Childcare Subvention Scheme 2008-2010 (CCSS), which is confined to community-based providers including voluntary groups.

In the case of both schemes, applicants are required to demonstrate that their project meets value for money criteria, including sustainability. However, as independent childcare providers, responsibility for management of the services' administrative and salary costs rests with the provider. Implementation of the NCIP at local level is supported by 33 City and County Childcare Committees (CCCs) which are companies limited by guarantee and managed by voluntary boards. The OMCYA advises the CCCs of the maximum pay levels which may be paid to their staff from the funding provided. The CCCs were included in a Value for Money Review of the childcare investment programmes which was undertaken by the OMCYA and published in 2007.

My Department also issues grants under the National Lottery Fund and it is a condition of these grants that certification of expenditure be submitted to my Department as soon as possible after the end of the financial year or when the project is completed to ensure that the funding is spent on the particular project for which it was allocated. The issue of salary levels does not therefore arise within this context.

The HSE also funds a wide range of bodies to provide services on its behalf or services which are similar or ancillary to the services it provides. The terms under which the HSE provides this funding is broadly governed by sections 38 and 39 of the Health Act 2004. Theses bodies would range from large voluntary hospitals and providers of services for people with a disability to small voluntary groups providing services in their local community.

With respect to these bodies it is a matter for the HSE to conclude the necessary agreements in respect of the terms and conditions under which services are provided by them. The same pay and conditions as are applied to the HSE, would also apply to those voluntary bodies whose employees are members of the public sector pension schemes and who are deemed to be public servants. This would include the major voluntary organisations providing services for people with disabilities and the voluntary hospitals. These are covered by circulars issued by my Department which set out the pay for each grade as approved by me with the consent of the Minister for Finance. It is a condition of any arrangement under section 38 of the 2004 Act that the body concerned must submit its annual accounts to the HSE for examination.

Following on from the recommendations made in the C&AG report Provision of Disability Services by Non-Profit Organisations published in 2005 the Health Service Executive has been engaged in a process of strengthening existing Service Level Agreements [SLAs] and Grant Aid Agreements for all service providers funded by the HSE, as provided for under Sections 38 and 39 of the Health Act 2004. This process has included substantial consultation with the umbrella organisations representing the voluntary sector and representatives of the Association of Hospitals. These agreements will further strengthen the accountability of all service providers, including voluntary groups to ensure that services are provided in the most cost efficient manner possible. My Department is in consultation with the HSE in relation to the finalisation and implementation of these agreements.