FAS chief defends executives' expenses (again!)

what about the auditors of FAS? Surelay as a company, FAS would have had to have an audit every year. should they not have come accross this whole expense fiasco before now? you wouldnt expect to see a heading in teh accounts of FAS for "travel to Florida" of €640,000 but a review of the expense woudl have revealed this. Also i woudl be surprised if there was not an internal audit committee in FAS. If so what was there role in all of this?
 
Why did you feel the need to post the same message twice?
I reckoned that you didn't seem to get the point first time, as you repeated your misleading and incorrect claim about the board membership.

If I resigned from my job in the morning, I can't see my employer saying, "sorry to see you go, here's 2 years salary"
While I don't agree with the payment and I'm not defending it in anyway, such payments would by no means be unusual at top levels in the private sector.
 

Of course expenses are "tax free". They're tax free in the private sector as well. I know a senior level auditor in the C&AG and her daily expenses excluding mileage are about €160 for three meals and board. Definitely not excessive.

If FAS are just following general public service travel and expense guidelines then this has much wider implications.

Believe me this is not the norm by any means. I know people working at fairly senior levels in the civil service and they were all appalled.

I agree. He’s from Birr, down the road from Brian. This sort of “I know him well, he’s a descent skin” attitude is sickening.

When I heard this the first thing that popped into my head was "Isn't FAS supposed to decentralise to Birr?". The second thought was to chastise myself for even being so naive as to imagine anything else would be the case.


It's still an awful lot of money to spend on air travel on this one project. What the hell was it? I've lectured in science for two years and I've never heard of it. Was it pitched at third level or secondary or primary? To hear Hot Rod on the radio I thought we'd launched a second IDA with a mandate to pursue a space programme or something but the papers seemed to be billing it as a secondary level project. In which case it was a jolly boys outing for the senior level people and a great experience for the students involved but hardly the foundation stone for building an aerospace research industry.

I suggest that the office of the Comptroller and Auditor General needs to be expanded.

Absolutely. One of the major problems is that many semi-states and local authorities are audited by private sector auditors rather than the C&AG. Private sector auditors have quite different requirements when it comes to auditing and might not see €400 haircuts as a problem once they are properly accounted for.


This sticks out for me too. Is he saying that he booked a flight for first class direct with one airline then redeemed it for two business class flights with another airline (fraud)? Or is he pointing to some imaginary accounting in his head where he was intending to buy one first class ticket with one airline but then at the last minute decided to bring the wife (and clearly feeling first class is only worth paying for with someone else's money) decided to book two business class tickets instead?

Does such a system operate in the civil service or is it each to own with regard to travel arrangements

This might have been answered elsewhere but it's fairly tightly controlled. In my own case as a public sector employee I get an allowance specific to the country I'm travelling to and the number of hours I'm staying. The hotel must be booked by the travel department but comes directly out of my allowance. Airline flights are economy only.

Perhaps the only extravagances allowed are airport taxis but only outside of the hours of work.

Now the $400 it for a group of people, Mary Harney being one (getting her hair done for an official engagement). There may well be massive waste in FAS but this is not it.

I wouldn't consider haircuts in any way a reasonable expense.


Excellent post, I couldn't agree more. I have been routinely shocked by the incompetence of FAS. Shane Ross and others seemed to tripping over themselves recently to mention the "good work performed by people on the ground" but personally I haven't seen it.


There is absolutely no way this is standard even for very senior civil servants. Business class maybe but not first class. It should also be pointed out that the senior executives travelling on the FAS ticket were public sector employees not civil servants. It's an important distinction often glossed over and I say this as a public sector employee myself, the major waste is in the public sector not the civil service, by virtue of size alone if nothing else.
 

UCD Professor Niamh Brennan, [broken link removed] who is one of Ireland's leading Corporate Governance experts was quoted in the Irish Indo yesterday as saying that the $400 nail bar bill and most of the other controversial expenditure items would be too small to attract the attention of auditors, due to the constraints imposed by materiality.

http://en.wikipedia.org/wiki/Materiality_(auditing)
 
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Very interesting. It seems that “Death by a thousand cuts” is not a diagnosable ailment in the public sector.
 
Of course expenses are "tax free". They're tax free in the private sector as well. I know a senior level auditor in the C&AG and her daily expenses excluding mileage are about €160 for three meals and board. Definitely not excessive.

Yes but in the vast majority of companies in the private sector, expenses are vouched for. They don't just get a supplement whether they spend it or not. I have an ex auditor from the C&AG sitting two desks away from me. He got €150 for accomadation and around €50 for meals. He said they very rarely spent over €100 per night on accomadtion. Breakfast more often than not included in with the B&B or Hotel so the €50 was really only for two meals and as he said lunch was often a sandwich. If he was away for more than a week in the same place, he got the allowance for the weekend even though he more often than not came back to Dublin for weekend. He knows people who claimed the milage even though they took turns car pooling to assignments if there was more than one person travelling. He said it was not uncommon to make a "profit" of around €500 on a week long assignment depending on where it was.

Why on earth can expenses not be vouched for?
 
I know a HSE employee, front line staff and all that, who was employed in Meath but mover to Dublin. She requested a transfer but could only be temporarily seconded (for three years so far). She gets a travel allowance from Meath to Dublin even though she lives in Dublin. She asked that this be stopped (as she lives in Dublin) and was told off by her manager for “causing trouble”. She was then rounded on by her union rep for the same thing.
 
Someone is pulling your leg, or has a poor memory. The public service travel and subsistence rates are public knowledge - see http://www.finance.gov.ie/viewdoc.asp?DocID=5327&CatID=28&StartDate=1+January+2008&m= for the current ones. The 24 allowance (currently €145) includes accommodation AND all meals. There is no extra €50 for meals. My experience is that some nights you make a few quid on the allowance, particularly if you choose a B&B, and some nights you lose a few quid. I stayed in Jury's Inn Cork (not exactly the lap of luxury) on business earlier in the year at about €90 per night, plus €12 breakfast. We had dinner with a 1/2 bottle of wine, and a pub lunch, and I was over my allowance.

If there are multiple people claiming mileage while car pooling, this is fraud and weak management. If this is happening, report it today and make it stop. If he gets the allowance for staying the weekend, he doesn't get the travel costs for returning to Dublin.

The only way anyone is making any money through T&S is
a) fraud
b) stay in crappy accommodation

Why on earth can expenses not be vouched for?
This is a double-edged sword. By sticking to the fixed allowance (as commonly happens in the private sector for sales staff out on the road), it is up to the employee to manage the costs. The exposure to the employer is fixed. If you want vouched expenses, then you have to be prepared to pay the extra when the accomodation costs pushes you over the fixed cost per day.
 

Er, Fás is audited by the Comptroller & Auditor General
 
I can't see much evidence of this by reading their accounts.

http://www.fas.ie/en/PubDocs/AnnualReports/ANNUAL_REPORT07/accounts.htm

1. The Audit Report is "clean" ie no qualifications or other matters highlighted for readers' attention.

2. The Statement on the System of Internal Financial Control states this: (particularly relevant passages highlighted by me)



3. There are no disclosures in the Accounts of internal control weaknesses or other problems.
 
Strange, I thought what sparked the Garda investigation was the C&AG audit. I could be mistaken though.

I know auditors working in the public and private sector, this was a difference in audit procedures pointed out to me on both sides. Maybe it's not as big an issue as I thought.
 
I know auditors working in the public and private sector, this was a difference in audit procedures pointed out to me on both sides. Maybe it's not as big an issue as I thought.

I am an auditor myself (private sector) and I am damn glad it was not me who signed the last Fás audit report. Had any private-sector auditor done so, they would now be facing serious questions on their knowledge of the transactions highlighted last week, leading probably to a rigorous investigation into their compliance in this case with professional standards, and the possibility of significant professional sanction at its conclusion. Its interesting that the C&AG are spared this discomfort. Another case of 4 legs good,... ?