Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

696. To ask the Minister for Health the steps he has taken to ensure that grant aided organisations are spending their moneys appropriately in view of the revelations regarding a charity (details supplied) in 2016; if his attention has been drawn to concerns relating to organisations funded by his Department; if so, the action he has taken; if his Department has issued new procedures regarding the use of credit cards; and if he will make a statement on the matter. [46096/17]

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

All agencies under the aegis of my Department and which receive funding from it, including the HSE, must comply with financial obligations under Circular 13/2013 – Public Spending Code, Circular 13/2014 – Management of and Accountability for Grants from Exchequer Funds and also with the requirements in the Department of Public Expenditure and Reform’s Code of Practice for the Governance of State Bodies. These agencies are reminded of their obligations each year in their Letter of Determination which confirms their funding for that year. Each year also, each agency confirms to my Department that it has complied with the requirements in the Code of Practice.

A primary function of the HSE is to manage and deliver health and personal social services. It can either do this itself or it can enter an arrangement under section 38 or section 39 of the Health Act 2004 with a service provider to deliver the service. Funding oversight of the 39 agencies funded under section 38 of the Health Act and over 2,000 agencies funded under section 39 of the Health Act is the responsibility of the HSE under its establishing legislation.

The HSE has established a framework of governance over funded agencies including a requirement for those agencies to sign a service level agreement or a grant aid agreement depending on the level of grant funding being provided. Agencies in receipt of funding in excess of €250,000 are subject to a service level agreement and agencies in receipt of funding less than €250,000 are subject to a grant aid agreement. The framework provides national standardised documentation which governs grant funding provided to the agencies. It also seeks to ensure the standard, consistent application of good governance principles which are robust and effective to ensure that both the HSE and the grant-funded agency meet their respective obligations.

The HSE requires that all grant aided non-statutory agencies submit their annual audited accounts to the HSE. As part of its annual audit plans, the Internal Audit Division of the HSE conducts audits of a number of the agencies each year. Such audits generally focus on the systems of internal control operated by the funded agencies, and compliance with the HSE Service Level Agreement (SLA). The scope is distinct from the statutory annual audit of accounts carried out by the external auditors of the agencies. A number of Internal Audits have also been conducted by the HSE into its own management processes and controls over the funding and monitoring of services provided by non-statutory agencies. In addition, the Comptroller and Auditor General may also undertake a review of the HSE's monitoring and oversight of grants to health agencies and the findings of such a review were the subject of a recent meeting of the Public Accounts Committee.

New procedures have not been issued by my Department to the agencies under its aegis in relation to credit cards. The specific focus of the Deputy's question appears to relate to an agency which was funded under section 39 of the Health Act. I have therefore referred the question of whether it has introduced new procedures in relation to credit cards for the agencies funded by it to the HSE for direct reply to the Deputy.