Financial Procedures
Overview
The estimates are prepared in each financial year. The process is still largely annual although certain elements of capital expenditure operate on a multi-annual basis.They must be prepared and presented to Dáil Éireann. This is done by the annual presentation of the White Paper on receipts and expenditures usually the week before the budget.
Article 17 provides that the Dáil shall consider estimates as soon as possible after presentation. This is undertaken by means of financial resolution. The Constitution provides that legislation to give effect to the financial resolutions in each year i.e. the Finance Act and the Appropriation Act must be enacted within that year.
Public Accounts Committee
Various Dáil Committees have a role in examining the estimates of government departments. The Public Accounts Committee is appointed under Dáil standing orders to examine and report to the Dáil of the appropriation accounts and the Comptroller and Auditor General’s report on them. It also reports on other accounts audited by the Comptroller and Auditor General as the Committee sees fit.
The Public Accounts Committee can examine other matters, including the value for money examination inspection under the Comptroller and Auditor General Act 1993. The Public Accounts Committee is appointed for the duration of a Dáil. By convention, its chairperson is from the opposition parties to the government.
The Comptroller and Auditor General attends meetings of the Public Accounts Committee as a witness, as required. As each vote is examined, the principal witness is the accounting officer in respect of that vote. This is an officer from the particular department. An officer of the Department of Finance also attends.
Witnesses before the Public Accounts Committee may be examined on matters arising from particular appropriation accounts and previous accounts relevant to that witness. It does not extend to the merits of the policies.
Once it concludes examination of accounts of the interim or annual reports of the Comptroller and Auditor General, the PAC reports to the Dáil. The report is published.
The Dáil select Committee on Finance and Public Expenditure considers bills initiated in the Department of Finance and the Taoiseach estimates for those departments and bodies under them and proposals which concern approval by the Dáil of international agreements which may involve a charge on public funds.
The Committee considers the annual output statement for those groups. The Minister for Finance engages with the Committee on economic and budgetary projections for the coming three years in accordance with the stability program update.
Department of Finance
The sanction of the Department of Finance is required for all expenditures. Legislation involving expense or a charge to tax must be examined by the Department. The sanction of the Department of Finance/Minister for Finance in relation to vote of expenditure is a key element of the management and control of public expenditure. The voting of the money in the Dáil or the allocation in an estimate does not of itself comprise sanction.
The Ministers and Secretaries Act provides that the expenses of each department sanctioned by the Minister for Finance are paid out of public monies provided by the Oireachtas. In the case of agencies outside of departments, the relevant statute provides for the sanction of the Minister of Finance either directly or through a delegated sanction. The Department of Finance will give sanction in writing.
Expenditure by non-commercial state sponsored bodies requires the approval of the relevant minister and will generally require consent from the Department of Finance as well. The power to consent may be delegated in certain respects.
Deartmental Acconatbility
Each department is funded by a Dáil Éireann vote annually. At the year end, the departments and offices which  receive a vote prepare an account of expenditure and receipts. This is the appropriation account. The appropriation account is signed by the accounting officer. This is usually the government secretary general or head of the department or office. This officer is responsible for the preparation of the account and its submission to the Comptroller and Auditor General by first April in the following year.
Secretaries General and heads of offices are appointed under the Exchequer and Audit Departments Act as accounting officers. Other officers are appointed as such under the relevant legislation in respect of the body concerned. It is typically the chief executive, a director or chairman of the body is accountable to the Public Accounts Committee. This does not necessarily mean that he is accounting officer. An accounting officer refers to the vote received directly from the exchequer and is required to produce an appropriation account.
An accounting officer is responsible personally for funds under his control and for the propriety of the transactions in each account. The accounting officer need not be an accountant or examine the correctness of all underlying transactions. However, they must be satisfied and assure the correctness of all accounts and accounting under their control. They must employ staff adequately trained in the management of public funds and public financial procedures.
Accounting officers sign a statement of financial control. They are responsible for ensuring that the statutory financial sanction has been obtained and must keep records of the sanction. Under the Comptroller and Auditor General Amendment act 1993 the accounting officer can be required to appear before the Public Accounts Committee. It may not express views on the merits of policies.
If the accounting officer differs with the Minister regarding the propriety or treatment of payments or receives, the accounting officer should inform the Minister of his view and the reason and suggest consultation with the Department of Finance. If the Minister gives contrary directions, the accounting officer should inform the Department of Finance.
The departments have internal audit departments, sections and units which examine whether systems, procedures and controls are adequate and are observed. The independent audit function should be independent, properly staffed and trained. The Department of Finance has published internal audit standards.
Where a department is responsible for a body, it will generally hold it to account on behalf of the Minister. This will include evaluating budgets against those set in  corporate plans as well as monitoring the achievement of objectives and targets.
Relevant legislation will generally provide returns and reporting to the Department of Finance. The Department of Finance has published codes of practice in relation to the governance  of state bodies. Accounting officers should be satisfied in relation to bodies under the aegis of their department in relation to compliance with the code of practice.
Controller and Auditor
The Comptroller and Auditor general is provided for in the Constitution. Article 33 provides that there should be a Comptroller and Auditor General to control on behalf of the State, all disbursements and to audit all accounts of monies administered by or under the authority of the Oireachtas.
The Comptroller must report to the Dáil periodically as provided by law. The Comptroller is appointed by the President on the nomination of the Dáil and is independent. The Comptroller must ensure that no money is issued by the exchequer/Central Fund or the Department of Finance except for purposes approved by the Oireachtas. The Comptroller is the Auditor General and audits government accounts for accuracy, regularity and for compliance with economy and efficiency measures.
Banking transactions on the Central Fund are undertaken through the exchequer account which is kept at the Central Bank. The Minister for Finance or an officer of the NTMA must requisition the Comptroller and Auditor General requiring issue of a credit on the exchequer account. The person should have power to authorise requisitions of that kind. The Comptroller and Auditor General must be satisfied that the requisition is correctly and properly issuable and sends a communication to the Central Bank, approving the credit.
The Comptroller and Auditor General audits the appropriation account, stock and store accounts, accounts of revenue collection, accounts of the Central Fund, accounts of non-commercial state-sponsored bodies, accounts of HSE, Garda Siochana and the NTMA.
The Comptroller and Auditor General’s office have the power to inspect books, accounts and records of any department or agency which it audits. If the C&AG considers there is evidence of matters which might be reported, the facts are put to the relevant accounting officer for explanation. Depending on the reply, the C&AG may qualify the certificate on the appropriation account and report the matter to the Dáil.
The Comptroller and Auditor General lays copies of the audited appropriation accounts before the Dáil before [30th September] in the year following the financial year. The accounts and reports thereon are laid before the Minister for Finance by [31st August] who must ensure they are presented to the Dáil in accordance with the requirements with the appropriation accounts. There are similar procedures regarding the accounts for their major entities such as the ETBs, and the HSE.
The Comptroller and Auditor General reports to the Dáil on instances where amounts approved have been exceeded. He also reports on failure to follow procedures, unsanctioned expenditures, irregularities, waste, details of poor controls and transactions which merit the attention of the Committee on Public Accounts.
Expenditure
There are two categories of government expenditure, voted and non-voted. Non-voted expenditure is declared by law to be paid from the Central Fund without reference to the Dáil. It consists of Central Funds charges with are permanent charges on the State revenue and are not subject to annual reviews.
The most significant item is interest on the national debt and sinking fund for debt repayment. Also included are payments towards EU budget, salaries of the President, judiciary, Comptroller and Auditor General and other independent offices. The running costs of the Oireachtas are administered by the Houses of the Oireachtas Commission and are charged on the Central Fund.
There are other charges on the Central Fund arising as part of the capital program. They are generally advances to state bodies in respect of State development agencies such as the ESB. The legislation imposes an upper limit on issues that may be made in a five-year period.
Voted expenditure is ordinary capital and non-capital expenditure voted annually by the Dáil. The services to which they relate are known as supply services and monies are a supply grant. Expenditure is approved under votes. Several votes may relate to a single department.
Supply estimates are the basis for the appropriation of monies and for the Department of Finance to draw on the Central Fund to meet expenditure. Authority is given by the Central Fund (Permanent Provisions) Act 1965 and the Appropriation Act which is annual.
Agencies
The degree of control in respect of agencies is generally less than in respect of government departments. They will generally submit operating budgets to the parent department for forwarding to the Department of Finance. Borrowing or overdraft by the agency must be approved in advance by the department concerned and should be controlled and monitored. The approval of the Department of Finance will be required.
Agencies should not change their policies significantly or engage in new activities without the prior consent of the parent minister or the Minister for Finance.
The chief executive officer of a state body under a department must confirm that the appropriate financing, reporting, auditing, procurement, procedures have been carried out. The CEO will have a responsibility to appear before the PAC if required. A representative of the parent department will also attend.