Thomas Pringle (Donegal, Independent)
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114. To ask the Tánaiste and Minister for Justice and Equality if the recommendation of the Oireachtas Joint Committee on Justice and Equality report on wards of court requesting a comprehensive and independent audit of the cases identified by a group (details supplied) will be implemented to ensure that optimum protection is afforded to all previous and current wards of court; and if he will make a statement on the matter. [21890/18]

Charles Flanagan (Laois, Fine Gael)
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The Report on Wards of Court of the Oireachtas Joint Committee on Justice and Equality recommended that a comprehensive audit be conducted of cases identified by the group referenced which they believe had funds significantly depleted during the financial crisis 2007–2009.

As the Deputy will be aware, the High Court has jurisdiction in wards of court matters and management of the courts is the responsibility of the Courts Service, which is independent in exercising its functions under the Courts Service Act 1998.

However, in order to be of assistance to the Deputy, I have had enquiries made and the Courts Service has informed me that following its appearance before the Oireachtas Joint Committee on Justice and Equality on 11 October 2017, the Courts Service considered how it could further assist the Committee in its deliberations and a letter issued to the Committee offering to commission an independent audit of the cases identified. In commissioning this audit the Courts Service offered to engage with the group and take on board any data it wished to have included in this audit. This offer was declined at that time.

The Courts Service decided, however, in the interests of transparency and good governance to proceed with the independent audit and the Committee was informed accordingly. Following a competitive procurement process in December 2017, Mazars, a leading international audit firm and with no previous involvement in the management or audit of court funds was appointed to conduct the audit. It commenced its independent review of 63 cases in January 2018. In conducting this audit, Mazars was given unrestricted access to all financial records in relation to these cases and the audit was conducted in accordance with International Standards on Auditing (Ireland).

Mazars has completed their review and their report has been made available to the group, the Oireachtas Joint Committee on Justice and Equality, the Public Accounts Committee and to my Department.

The Courts Service has advised that the review shows that there were no significant losses incurred by these cases during the financial crisis and that virtually all of these cases had net realised gains when units were sold. The very significant investment returns from investment performance extended the available funds to meet ongoing care and maintenance for these cases by a considerably longer period of time than would have been the case if these cases had not been invested in the Growth Fund.

Investment of court funds is carried out in line with the strategies devised and reviewed on a regular basis by the Investment Committee, chaired by the President of the High Court. The Investment Committee reviews the investment strategies with the assistance of its investment advisors to ensure the protection and suitable investment of funds of wards, minors and others lodged in court for the benefit of those persons. Investment policies and orders made thereunder must be in accordance with the Trustee (Authorised Investments) Act 1958.

The Courts Service has advised that a conservative investment policy is being operated. When deciding where and how to invest court funds, the overriding objective is the achievement of an optimal total financial return having regard to the need for liquidity and capital security, taking account of income generation and capital growth requirements. Where there is a requirement to generate a higher return to sustain the value of the funds for the longest period possible, such funds are invested in longer term growth and income generating strategies.

The Courts Service has further advised that a prudent approach to investing court funds is adopted and takes only measured and appropriate risks, based on independent investment advice, in the best interests of all beneficiaries. The Courts Service has informed me that the independent review carried out by Mazars, and the review carried out by Aon Hewitt in 2016 as well as the annual independent external audits over many years, found no evidence of negligence or mismanagement of funds.