Written answers

Wednesday, 4 November 2015

Department of Foreign Affairs and Trade

Departmental Funding

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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213. To ask the Minister for Foreign Affairs and Trade the funding allocated by his Department to organisations not audited directly by the Comptroller and Auditor General; the names of these organisations; the funding allocated to each over the past five years; the process in place to ensure that value for money is achieved and that the funding allocated is audited; and if he will make a statement on the matter. [38671/15]

Photo of Charles FlanaganCharles Flanagan (Laois-Offaly, Fine Gael)
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though hardly any of the organisations funded by the Department of Foreign Affairs and Trade are directly audited by the Comptroller and Auditor General, I am satisfied that, as a general principle, organisations allocated funding under the Department of Foreign Affairs and Trade’s two Votes (Vote 27 – International Co-operation and Vote 28 – Foreign Affairs and Trade) are required to have their accounts independently audited and/or certified and the Department attaches the highest priority to seeking to ensure that value for money is achieved. Regarding Vote 27,Ireland has provided in excess of €3 billion to Official Development Assistance (ODA) over the past five years. On average about 80% is managed by Irish Aid in the Department of Foreign Affairs and Trade under Vote 27 – International Cooperation. The remaining 20% is accounted for by ODA-eligible contributions made through other Government Departments and Ireland’s share of the EU Development Cooperation Budget. A summary of ODA allocations for the past five years is as follows:

Summary of ODA 2010 - 2014

Other ODA Vote 27 Total ODA
Year €m€m€m
2014138.57 476.29 614.86
2013140.39 496.70637.09
2012121.52507.38628.90
2011136.86520.18657.04
2010154.28521.55675.83
Total 691.62 2,522.10 3,213.72
Regarding funding to organisations from Vote 28, a tabular statement follows the reply detailing allocations to organisations over the past five years.

Ireland provides development assistance to over eighty of the world’s least developed countries. We focus in particular on nine key partner countries, most of them in sub-Saharan Africa. Our engagement with our key partner countries is at a strategic level, and we provide support for their long-term development, especially in the areas of health, nutrition, education, gender equality and governance.

The Government’s aid programme is delivered through a wide range of partners and channels, including government systems, Irish and international Non-Governmental Organisations (NGOs) and missionary organisations, and UN and other multilateral agencies and organisations. For example in 2014 just under 50% of Ireland’s total ODA was delivered through the multilateral system – as both assessed and voluntary contributions - slightly in excess of one quarter was delivered through NGOs, while about twelve percent, or some €75 million was delivered through partner country systems.

Each year my Department publishes an analysis of expenditure under Ireland’s aid programme in the statistical annexes to the Irish Aid Annual Report. These annexes provide a detailed analysis of Ireland’s aid programme, including an analysis of funding provided to our key developing partner countries, and listings of grants paid to multilateral organisations and NGOs in excess of €50k. The detailed annexes are available at for each year 2010 through to 2014.

Ireland’s aid programme is implemented in challenging, complex and often inherently risky environments. My Department has implemented a comprehensive system of internal controls to mitigate against these risks, ensure the efficient and effective use of resources and deliver value for money. It operates rigorous systems for planning, monitoring, evaluating and auditing all funding provided for under the aid programme. Programmes are closely monitored at mission and headquarters level to ensure they deliver on the intended results, and are meeting our overall objective of contributing to the eradication of extreme poverty and hunger in some of the poorest countries and communities in the world.

I am satisfied that the Department has in place a comprehensive system of controls which ensures all expenditure provides value for money, and that funding provided under the aid programme is used to the greatest possible effect for the purposes intended.

Turning to Vote 28 , a summary of the auditing and control processes in place in the main organisations that the Department funds is as follows:

My Department makes substantial assessed contributions to the United Nations (UN)each year. The UN has a robust audit function with internal and external audit functions. The United Nations Board of Auditors oversees the external audit function. Under their supervision audit opinions and financial statements for each UN organisation are prepared and submitted for examination to the Advisory Committee on Administrative and Budgetary Questions (ACABQ) who in turn forward to the General Assembly. In addition, in coordination with our EU partners, Ireland also participates in negotiations on the UN Regular and Peacekeeping budgets in the Fifth Committee, and strives to ensure that value for money is achieved for the United Nations and its member states.

The budget of the Organisation for Economic Cooperation and Development (OECD) is negotiated on a biennial basis to reflect the priorities of member countries and ensure value for money. The budget is approved by the OECD Council. Ireland participates fully in this process. The OECD also operates a thorough system of internal and external audit procedures. Annual financial statements are prepared by the OECD Executive Directorate and examined by the external auditor, currently the French Cour Des Compteswhich also audits French Government accounts. The external auditor reports to the Audit Committee, comprising six members from the permanent delegations of members and three experts proposed by the supreme audit institutions of member countries. The external auditor and the Audit Committee make regular financial reports to the OECD Council.

The Council of Europebudget is approved by the Committee of Ministers which consists of the Foreign Ministers of each member state. Internal audits are conducted by the Directorate for Internal Oversight and the external audit function is discharged by the supreme audit institution of a member state, appointed by the Committee of Ministers for a non-renewable term of five years.

The International Fund for Ireland (IFI)is an independent international organisation set up by the Irish and British Governments in 1986. The Board of the International Fund for Ireland, as set out in its rules and procedures, appoints independent accountants and auditors who are selected by competitive tender. The audit report is incorporated into the annual report and accounts of the IFI, submitted to the Irish and British Governments. Details of the funding provided to individual organisations is published in the Annual Reports of the IFI.

The Department’s Reconciliation Fundawards grants to organisations working to further peace and reconciliation in Northern Ireland, on a cross-border basis and between Ireland and Britain. In 2011, the budget allocated to the Reconciliation Fund was €3m. Since then, the budget has been maintained at €2.7m. In the context of the 2014 Stormont House Agreement, the Government underlined its commitment to support measures to promote reconciliation, including through continued annual provision of €2.7m in the Reconciliation Fund.

Details of grants awarded from the Reconciliation Fund, including the names of all organisations granted funding, is available on the Department’s website going back to 2012. ()

Applications to the Fund are assessed on the basis of a number of criteria, as set out in the Reconciliation Fund Strategy 2014-2017. These criteria include a requirement to assess the value for money of the proposed project, as well as the organisation’s financial management capacity and sustainability. Each project is assessed through a combination of project visits and monitoring as well as completion of narrative and financial reports outlining in detail the activities carried out, the costs involved, and progress towards the objectives of the project, and detailing how the grant has contributed to the achievement of some, or all, of the Reconciliation Fund key objectives; and, submission of a signed copy of either: (i)The organisation’s accounts, (where the grant is less than €12,500 or equivalent) or (ii) The audited financial statements of the organisation (where the grant exceeds €12,500 or equivalent). Organisations are required to keep supporting documentation for all grant expenditure and are obliged to cooperate fully with any form of audit, evaluation or requests for further reporting on this grant requested by the Department.

In relation to the Department’s Emigrant Support Programme (ESP) , a planned programme of audits is in place to ensure the continued quality of the projects funded. In 2014, audits were completed on six organisations funded by the ESP: five in Britain and one in Ireland. These were undertaken by a consultant appointed on the basis of a public tender. A further six audits will take place in 2015 – with another five organisations based in Britain along with one based in Ireland being audited this year by an external consultant. In addition, reviews of two US-based organisations funded by the ESP were undertaken in 2014 by the Department’s Evaluation and Audit Unit. Separately, in 2013, a review of the work of six of the largest recipients of ESP funding in Britain was undertaken and, in 2014, the Clinton Institute in UCD completed a future needs analysis of the Programme.

As part of ‘Global Irish: Ireland’s Diaspora Policy’ which was launched in March 2015 a commitment has been made to spending 1% of the overall Emigrant Support Programme on quality assurance to ensure that the limited resources available are used to best effect to support the Irish diaspora abroad.

It should also be noted that all applicants for funding under the Emigrant Support Programme are required to submit either certified or audited accounts. For organisations granted below €100,000, the organisation’s accounts should be certified by an independent, practising accountant. For organisations granted over €100,000, the audited financial statements of the organisation are sought. Recipients of funding are also required to submit narrative and financial reports outlining progress since the award of the grant and detailing how the grant has contributed to the achievement of some, or all, of the Emigrant Support Programme’s key objectives. Where an organisation has used ESP funds inappropriately, has failed to use funds for the purposes for which they were granted or fails to satisfactorily report on how funds were utilised, the Department will take follow-up action, up to and including the refund of the identified amount of funds.

Full details of all recipients of ESP funding since 2006 are available at the following link:

The Department has funded Atlantic Corridor Irelandin facilitating, through its network activities and international linkages, the development of projects that assist in supporting sustainable development and enhanced educational attainment in the midlands region. Over the course of the Department’s involvement with Atlantic Corridor procedures were put in place requiring reports providing financial information, clear description of aims and outcomes of projects, and information as to other sources of funding secured by Atlantic Corridor. An up to date tax clearance certificate and auditor’s certificate were also required before funding was disbursed.

Vote 28 – Grant locations20142013201220112010
Emigrant Support Programme12,152,909 10,859,058 11,586,357 11,567,810 11,933,470
Communicating Europe---127,394 259,210
European Movement---100,000 234,000
Anglo-Irish & North-South Co-operation2,861,290 2,697,761 2,696,962 2,997,704 2,998,993
International Fund for Ireland5,150,000 150,000 150,000 150,000 195,000
Grant to Irish College Paris150,000 150,000 150,000 150,000 150,000
Asia Europe Foundation65,000 65,000 99,987 100,000 100,000
Biological and Toxic Weapons Convention3,998 4,541 5,305 7,197 2,846
Convention on Certain Conventional Weapons-3,691 6,604 5,178 -
Council of Europe2,611,624 2,714,872 2,900,247 2,937,198 2,985,697
Comprehensive Test Ban Treaty Organisation (CTBTO)404,789 400,434 477,700 459,414 427,767
Intergovernmental Legal Bodies189,381 169,567 164,969 160,969 153,725
Misc. Contributions to Int. Organisations203,696 23,843 19,340 -1,000
The (Nuclear) Non-Proliferation Treaty8,406 1,636 10,001 --
OECD2,162,829 1,958,138 1,918,493 1,932,193 1,997,694
Grants for N/S & Anglo-Irish Co-operation2,861,290 2,697,761 2,696,962 2,997,704 2,998,993
Grant to Administration of International fund for Ireland5,150,000 150,000 150,000 150,000 195,000
Organisation for the Prohibition of Chemical Weapons275,885 224,310 331,738 603,029 340,760
Organisation for Security Co-operation in Europe1,167,608 1,095,642 1,092,402 1,119,840 1,062,233
UN Contributions31,013,219 31,832,777 34,910,496 39,135,179 45,259,772
Wassenaar Arrangement10,232 11,128 11,004 10,389 8,020
World Trade Organisation--1,916,306 1,936,728 -
Grants to Organisations - Title V of EU Treaty397,462 366,389 227,379 225,621 493,522
Atlantic Corridor Project175,000 175,000 175,000 175,000 175,000

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