Norma Foley (Kerry, Fianna Fail)
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The Comptroller and Auditor General (C&AG) carried out an examination of the provision of school transport and completed his report in August 2017 – the C&AG Special Report 98. The C&AG report referenced a surplus in the Transport Management Charge element of the costs. This amount was held by way of an uncommitted reserve by Bus Éireann to be used solely for the purposes of the School Transport Scheme. An amount of €6.7 million in respect of the uncommitted reserve was repaid to my Department in full in December 2018.

The documentation in relation to this amount formed part of the School Transport Scheme annual reporting from Bus Éireann, as evidenced in the attached report.

Bus Éireann’s bank accounts are reviewed by independent auditors as part of the annual audit process. Bus Éireann’s School Transport scheme annual costs are set out in the Annual Statement of Account. This Statement of Account is independently audited by the Bus Éireann auditors in accordance with the 1975 Summary of Accounting Arrangements and this report is submitted to my Department on an annual basis. In addition, separate to the audit of the Statement of Account, the Financial Statements for the Bus Éireann group are independently audited on an annual basis.

The 1975 Summary of Accounting Arrangements form the basis of the payment to Bus Éireann for the operation of the School Transport Scheme. The 1975 Summary of Accounting Arrangements , which remain in place, have been the subject of challenges to the High Court, the Court of Appeal and the Supreme Court, all of which were unsuccessful. There is no profit and the uncommitted reserve in the Transport Management Charge element of the costs could only be used on the school transport scheme. The school transport scheme operates on the basis of cost recovery and any surplus was sealed in the school transport scheme.