Written answers

Tuesday, 24 May 2016

Department of Education and Skills

School Transport Administration

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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131. To ask the Minister for Education and Skills the scientific or verification-based monitoring he has in place to ensure that State aid or payments to Bus Éireann for school transport are not used to cross-subsidise the provision of transport services in Athlone, Balbriggan, Cork, Drogheda, Dundalk, Galway, Limerick, Navan, Sligo and Waterford that Bus Éireann operates in competition with the private sector operators. [11191/16]

Photo of John HalliganJohn Halligan (Waterford, Independent)
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The accounting rules governing Bus Éireann's operation of the School Transport Scheme are laid down in the 1975 Summary of Accounting Arrangements. These Arrangements require Bus Éireann to charge my Department for all direct costs - contractors, fuel, maintenance etc.

In line with the Accounting Arrangements, a charge of 13% of certain direct costs is levied to cover all other costs associated with the Scheme. This charge is commonly referred to as the School Transport Management Charge. The School Transport Management Charge is used to defray immediate overheads incurred by Bus Éireann in respect of the School Transport Scheme. Any surplus which may remain after accounting for the overheads referred to above is used to provide a reserve for additional expenditure which subsequently may be required in connection with the School Transport Scheme.

My Department receives an Annual Statement of Account in respect of the School Transport Scheme which includes an audit opinion provided by independent external auditors. For 2015 and prior years the opinion states that the financial information of Bus Éireann's School Transport Scheme is prepared, in all material respects, in accordance with the Summary of Accounting Arrangements relating to the Transport Scheme for Primary and Post-Primary School Children dated 1 January 1975. The auditors have stated that they believe that the audit evidence they have obtained is sufficient and appropriate to provide a basis for their audit opinion.

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