{"id":685,"date":"2021-06-13T20:22:42","date_gmt":"2021-06-13T20:22:42","guid":{"rendered":"http:\/\/legalblog.ie\/?p=685"},"modified":"2021-06-13T21:02:26","modified_gmt":"2021-06-13T21:02:26","slug":"financial-procedures","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/financial-procedures\/","title":{"rendered":"Financial Procedures"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/financial-procedures\/#Overview\" title=\"Overview\">Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/financial-procedures\/#Public_Accounts_Committee\" title=\"Public Accounts Committee\">Public Accounts Committee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/financial-procedures\/#Department_of_Finance\" title=\"Department of Finance\">Department of Finance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/financial-procedures\/#Deartmental_Acconatbility\" title=\"Deartmental Acconatbility\">Deartmental Acconatbility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/financial-procedures\/#Controller_and_Auditor\" title=\"Controller and Auditor\">Controller and Auditor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/financial-procedures\/#Expenditure\" title=\"Expenditure\">Expenditure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/financial-procedures\/#Agencies\" title=\"Agencies\">Agencies<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Overview\"><\/span>Overview<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The estimates are prepared in each financial year.\u00a0 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 D\u00e1il \u00c9ireann.\u00a0 This is done by the annual presentation of the White Paper on receipts and expenditures usually the week before the budget.<\/p>\n<p>Article 17 provides that the D\u00e1il shall consider estimates as soon as possible after presentation.\u00a0 This is undertaken by means of financial resolution.\u00a0 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Public_Accounts_Committee\"><\/span>Public Accounts Committee<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Various D\u00e1il Committees have a role in examining the estimates of government departments. The Public Accounts Committee is appointed under D\u00e1il standing orders to examine and report to the D\u00e1il of the appropriation accounts and the Comptroller and Auditor General&#8217;s report on them.\u00a0 It also reports on other accounts audited by the Comptroller and Auditor General as the Committee sees fit.<\/p>\n<p>The Public Accounts Committee can examine other matters, including the value for money examination inspection under the Comptroller and Auditor General Act 1993.\u00a0 The Public Accounts Committee is appointed for the duration of a D\u00e1il.\u00a0 By convention, its chairperson is from the opposition parties to the government.<\/p>\n<p>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.\u00a0 This is an officer from the particular department.\u00a0 An officer of the Department of Finance also attends.<\/p>\n<p>Witnesses before the Public Accounts Committee may be examined on matters arising from particular appropriation accounts and previous accounts relevant to that witness.\u00a0 It does not extend to the merits of the policies.<\/p>\n<p>Once it concludes examination of accounts of the interim or annual reports of the Comptroller and Auditor General, the PAC reports to the D\u00e1il.\u00a0 The report is published.<\/p>\n<p>The D\u00e1il 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 D\u00e1il of international agreements which may involve a charge on public funds.<\/p>\n<p>The Committee considers the annual output statement for those groups.\u00a0 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Department_of_Finance\"><\/span>Department of Finance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The sanction of the Department of Finance is required for all expenditures.\u00a0 Legislation involving expense or a charge to tax must be examined by the Department.\u00a0 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 D\u00e1il or the allocation in an estimate does not of itself comprise sanction.<\/p>\n<p>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.\u00a0 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.<\/p>\n<p>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.\u00a0 The power to consent may be delegated in certain respects.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Deartmental_Acconatbility\"><\/span>Deartmental Acconatbility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Each department is funded by a D\u00e1il \u00c9ireann vote annually.\u00a0 At the year end, the departments and offices which \u00a0receive a vote prepare an account of expenditure and receipts.\u00a0 This is the appropriation account. The appropriation account is signed by the accounting officer.\u00a0 This is usually the government secretary general or head of the department or office.\u00a0 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.<\/p>\n<p>Secretaries General and heads of offices are appointed under the Exchequer and Audit Departments Act as accounting officers.\u00a0 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.\u00a0 This does not necessarily mean that he is accounting officer.\u00a0 An accounting officer refers to the vote received directly from the exchequer and is required to produce an appropriation account.<\/p>\n<p>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.\u00a0 However, they must be satisfied and assure the correctness of all accounts and accounting under their control.\u00a0 They must employ staff adequately trained in the management of public funds and public financial procedures.<\/p>\n<p>Accounting officers sign a statement of financial control.\u00a0 They are responsible for ensuring that the statutory financial sanction has been obtained and must keep records of the sanction.\u00a0 Under the Comptroller and Auditor General Amendment act 1993 the accounting officer can be required to appear before the Public Accounts Committee.\u00a0 It may not express views on the merits of policies.<\/p>\n<p>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.\u00a0 If the Minister gives contrary directions, the accounting officer should inform the Department of Finance.<\/p>\n<p>The departments have internal audit departments, sections and units which examine whether systems, procedures and controls are adequate and are observed.\u00a0 The independent audit function should be independent, properly staffed and trained.\u00a0 The Department of Finance has published internal audit standards.<\/p>\n<p>Where a department is responsible for a body, it will generally hold it to account on behalf of the Minister.\u00a0 This will include evaluating budgets against those set in \u00a0corporate plans as well as monitoring the achievement of objectives and targets.<\/p>\n<p>Relevant legislation will generally provide returns and reporting to the Department of Finance.\u00a0 The Department of Finance has published codes of practice in relation to the governance \u00a0of state bodies.\u00a0 Accounting officers should be satisfied in relation to bodies under the aegis of their department in relation to compliance with the code of practice.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Controller_and_Auditor\"><\/span>Controller and Auditor<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Comptroller and Auditor general is provided for in the Constitution.\u00a0 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.<\/p>\n<p>The Comptroller must report to the D\u00e1il periodically as provided by law.\u00a0 The Comptroller is appointed by the President on the nomination of the D\u00e1il and is independent.\u00a0 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.\u00a0 The Comptroller is the Auditor General and audits government accounts for accuracy, regularity and for compliance with economy and efficiency measures.<\/p>\n<p>Banking transactions on the Central Fund are undertaken through the exchequer account which is kept at the Central Bank.\u00a0 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.\u00a0 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.<\/p>\n<p>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.<\/p>\n<p>The Comptroller and Auditor General&#8217;s office have the power to inspect books, accounts and records of any department or agency which it audits. If the C&amp;AG considers there is evidence of matters which might be reported, the facts are put to the relevant accounting officer for explanation.\u00a0 Depending on the reply, the C&amp;AG may qualify the certificate on the appropriation account and report the matter to the D\u00e1il.<\/p>\n<p>The Comptroller and Auditor General lays copies of the audited appropriation accounts before the D\u00e1il before [30th September] in the year following the financial year.\u00a0 The accounts and reports thereon are laid before the Minister for Finance by [31st August] who must ensure they are presented to the D\u00e1il in accordance with the requirements with the appropriation accounts.\u00a0 There are similar procedures regarding the accounts for their major entities such as the ETBs, and the HSE.<\/p>\n<p>The Comptroller and Auditor General reports to the D\u00e1il on instances where amounts approved have been exceeded.\u00a0 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Expenditure\"><\/span>Expenditure<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are two categories of government expenditure, voted and non-voted.\u00a0 Non-voted expenditure is declared by law to be paid from the Central Fund without reference to the D\u00e1il.\u00a0 It consists of Central Funds charges with are permanent charges on the State revenue and are not subject to annual reviews.<\/p>\n<p>The most significant item is interest on the national debt and sinking fund for debt repayment.\u00a0 Also included are payments towards EU budget, salaries of the President, judiciary, Comptroller and Auditor General and other independent offices.\u00a0 The running costs of the Oireachtas are administered by the Houses of the Oireachtas Commission and are charged on the Central Fund.<\/p>\n<p>There are other charges on the Central Fund arising as part of the capital program.\u00a0 They are generally advances to state bodies in respect of State development agencies such as the ESB.\u00a0 The legislation imposes an upper limit on issues that may be made in a five-year period.<\/p>\n<p>Voted expenditure is ordinary capital and non-capital expenditure voted annually by the D\u00e1il.\u00a0 The services to which they relate are known as supply services and monies are a supply grant.\u00a0 Expenditure is approved under votes.\u00a0 Several votes may relate to a single department.<\/p>\n<p>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.\u00a0 Authority is given by the Central Fund (Permanent Provisions) Act 1965 and the Appropriation Act which is annual.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Agencies\"><\/span>Agencies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The degree of control in respect of agencies is generally less than in respect of government departments.\u00a0 They will generally submit operating budgets to the parent department for forwarding to the Department of Finance.\u00a0 Borrowing or overdraft by the agency must be approved in advance by the department concerned and should be controlled and monitored.\u00a0 The approval of the Department of Finance will be required.<\/p>\n<p>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.<\/p>\n<p>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.\u00a0 The CEO will have a responsibility to appear before the PAC if required.\u00a0 A representative of the parent department will also attend.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-685\" data-postid=\"685\" class=\"themify_builder_content themify_builder_content-685 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Overview The estimates are prepared in each financial year.\u00a0 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 D\u00e1il \u00c9ireann.\u00a0 This is done by the annual presentation of the White Paper on receipts and expenditures usually the week before the budget. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[56],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/685"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=685"}],"version-history":[{"count":5,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/685\/revisions"}],"predecessor-version":[{"id":694,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/685\/revisions\/694"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}