Jim Daly (Cork South West, Fine Gael)
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130. To ask the Minister for Education and Skills if a use it or lose it by year end rule is or has been in operation within his Department when devolving funding to agencies under his remit on an annual basis; and if he will make a statement on the matter. [29194/16]

Richard Bruton (Dublin Bay North, Fine Gael)
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The principles underpinning the funding of agencies are set out in the Public Financial Procedures and circulars issued by the Department of Public Expenditure and Reform, including Circular 13/2014 concerning management and accountability of grants from Exchequer funds.

Funds for the different bodies in the education sector are provided for in Vote 26: Education and Skills and are voted upon by the Dáil through the Annual Estimates process. Following this, agencies are advised of expected allocations which reflect their agreed work programmes. During the course of the year, the Department of Education and Skills issues advanced grant payments to the different bodies under agreed tranching arrangements.

In certain cases, pre-funding may lead to unexpended balances of grant money at year’s end. In accordance with Public Financial Procedures unspent or surplus funds are expected to be surrendered to the Exchequer at year end.

However, with the approval of the Department, and on foot of sanction from the Department of Public Expenditure and Reform, these balances, or a portion thereof, may be retained by the grantee if deemed necessary to meet outstanding financial requirements. Such balances should be kept to a

minimum and are taken into account when considering the following year’s grant. The Department may also use its discretion to determine if some base level of funds should be maintained by the bodies involved for the following year.