Jonathan O'Brien (Cork North Central, Sinn Fein)
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129. To ask the Minister for Education and Skills the education and training boards who have notified her or her Department of their intention to apply for overdraft facilities; the stage at which these processes are currently; and if she will make a statement on the matter. [39508/14]

Jan O'Sullivan (Limerick City, Labour)
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Section 49 of the Education and Training Boards Act, 2013, confers a power of borrowing on an Education and Training Board (ETB), subject to the submission of a proposal to the Board, and if approved in principle by the Board, to the Minister for Education and Skills for approval.

My Department has issued Circular 0066/2014 to ETB, concerning the procedures to be followed where an ETB wishes to obtain the approval of the Minister to borrow. A copy of the circular is set out for the Deputy's information.

Overdraft facilities should be avoided except for limited periods to meet short term cash-flow situations. They are not to be used for capital expenditure and cannot be used to extend an ETB's expenditure and commitments over and above the amounts authorised by my Department.

In the current year Cavan and Monaghan ETB; Laois and Offaly ETB; Galway and Roscommon ETB and Kerry ETB have sought and obtained approval for borrowing from my Department.

Circular 0066/2014

BOO – Airgeadas agus Pearsanra Riaracháin ETB Financial and Administrative Personnel

An Roinn Oideachais agus Scileanna Department of Education and Skills

Cor na Madadh Cornamaddy

Baile Átha Luain Athlone

Co. na hIarmhí Co. Westmeath



To the Chief Executives and Chairpersons of Education and Training BoardsCircular 0066/2014

Procedures for Borrowing by Education and Training Boards

The power to borrow money is a reserved function of an ETB Board. Section 49 of the Education and Training Boards Act 2013 sets out the procedures to be followed, which are summarised as follows:

1. The Chief Executive prepares and submits a proposal in writing to the Board that the Board should borrow for the purposes of carrying out the board’s functions.

2. The Board considers the proposal and then, if it is decided in principle that the proposal should be accepted, seeks the consent of the Minister for Education and Skills.

3. Once the consent of the Minister has been obtained, the Board may accept the Chief Executive’s proposal and borrow in order to carry out the functions of the board

Accordingly, two meetings of the Board will be necessary; one to first consider the proposal and, if it is decided in principle that the proposal should be accepted, a second to accept the proposal, having obtained the consent of the Minister.

This Circular should be read in conjunction with Section 49 of the Act.

This circular can be accessed on the Department of Education and Skills web page: www.education.ie.

Any queries regarding this circular letter should be addressed to ETB Financial and Administrative Personnel Section (Tel: 09064 83769, Fax: 09064 84058, Email: financialetb@education.gov.ie ).

_____________

Matthew Ryan

Principal Officer

Schools Division

August 2014