Public Accounts Committee to pursue College

Published 3 Apr 2009 09:00 0 Comments

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Dr. Aideen McGinley

The Public Accounts Committee is to undertake an investigation after a damning Audit Office report raised 'serious concerns' over financial management at Fermanagh College.

As Accounting Officer for the Department of Employment and Learning (DEL), Dr. Aideen McGinley will be one of the witnesses to be questioned on the content of the Audit Office report at a public evidence session of the Public Accounts Committee to be held in the Senate Chamber, Parliament Buildings in May. Mrs. McGinley has been Permanent Secretary of DEL since February 2006.

The Public Accounts Committee report on its investigation will be launched in June.

It was last week"s publication of the 'Governance Examination of Fermanagh College of Further Education' that prompted the Public Accounts Committee investigation.

In response to this publication, members of the the Assembly"s Employment and Learning Committee have said they were shocked by comments made in the report, which also reviewed the financial management of the further education sector in Northern Ireland.

Chairperson of the Committee, Sue Ramsey MLA said, 'This is a very worrying situation. It seems that this is a case of some of the colleges and the Department for Employment and Learning taking their eye off the ball. The Committee will be exploring this issue with the Minister, Sir Reg Empey, and his officials. We hope that lessons have been learned.'

Deputy Chairperson of the Committee, Robin Newton MLA added: 'There seems to have been a serious lack of control and regard for processes with respect to financial management in some of these colleges. This is an issue that must be thoroughly investigated.'

The Audit Office report notes that a number of Departmental and consultancy reviews in 2005 and 2006 on Fermanagh College highlighted serious failings in financial management and raised questions about the propriety of the use of public funds.

The report stated that DEL had concluded in 2006 that funding claimed and received from the Department itself by Fermanagh College had not met the necessary funding criteria. This funding related to Work Based Learning (WBL) training for employer companies, which began in 2001. The College agreed to repay funding of £1.14 million.

A consultant commissioned to undertake a comprehensive review of financial management within the College noted significant weaknesses in corporate governance, business and financial planning, management information systems and issues over financial control.

There was a lack of structure in the operation of the senior management team. Meetings were ad hoc and minutes were either not kept or, if produced, were vague with no decisions or action points recorded. Staff recorded that there was no clear sense of there being a Senior Management Team within the college.

Of that management team, the Audit report quotes from a Deloittes report that noted that the Principal had failed to deal appropriately as Accounting Officer (which was his role during the period under review) with the significant financial management weaknesses within the College. Because of his extended sick leave, Deloittes were unable to interview him about the issues they wished to investigate.

In terms of the Work Based Learning (WBL) courses provided at the College, it is noted that DEL"s circular made no provision for third party involvement in the training but the College entered into an agreement with a company (Company A) principally involved in the provision of training and employment services to young people to deliver the programme. 'The Principal consistently stated in writing and orally that there was no third party involvement, but payments of £0.6 million were made to Company A in the three years up to 31 July 2005,' says the report about the former head of the College.

The former Vice-Principal was Acting Principal during three occasions during the Principal"s sickness absences during a period of time in 2004, over two further periods in 2005. The report notes that as Acting Principal he had 'limited periods' to address the weaknesses and there was no evidence he had received any training or support to enable him to discharge these duties effectively.

The former Finance Director was initially appointed in Fenruary 1997 as Finance Officer. No records were available in the College to support her salary level or the process or timing of her promotion to Finance Director. It was also not possible to find an agreed job description, says the report. 'Objectives were not established and therefore performance could not be measured against targets. Deloittes noted that it appeared that the Finance Director was directly accountable to the Principal"s Accounting Officer and to the Governing Body for the College"s financial information and administration systems as well as estates management "therefore she shares responsibility for the weaknesses identified in financial management and control",' the report states.

This article appeared in Impartial Reporter 02 Apr 09

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