DE spent £1805,301 irregularly on consultancy costs for Catholic schools projects

DE spent a combined 1,805,301 irregularly paying external consultancy costs for the Derry Diocese Public Private Partnership (PPP) and the Holy Cross College Strabane PPP.

The first was established to provide St Mary's College and St Cecilia's College in Londonderry with new purpose-built accommodation for a total of 1,650 pupils.

The two new schools have now been completed and opened their doors to pupils at the beginning of the current school year. The Holy Cross College Strabane PPP performed the same function in the County Tyrone town.

But according to a newly-published report by the independent watchdog responsible for monitoring the expenditure and proper accounting for of public money in Northern Ireland the DE "in all likelihood incurred irregular expenditure amounting to 4.4m between 2004/5 and 2009/10 on 12 separate projects."

Despite the success of the Londonderry and Strabane projects Kieran Donnelly, the Comptroller and Auditor General for Northern Ireland, expressed disappointment at the Department's failure to regularly account for its expenditure on external consultancy fees on the schools projects.

In 2009/10 the two partnerships accounted for 712,837 of the 2,083,175 in irregular expenditure incurred on external consultancy costs by DE; for the Derry Diocese PPP the sum was 613,879 and for Holy Cross College Strabane PPP it was 98,958.

And since 2004/5 the two North West PPPs have accounted for 1,805,301 of the 4,358,348 in irregular expenditure identified by DE; 1,176,249 for the Derry Diocese PPP - the highest on any of the 12 Northern Ireland projects - and 629,052 for the Holy Cross PPP - the third highest in Northern Ireland.

With regard to the 2009/10 figures Mr Donnelly explained: "Irregular expenditure of 2.1m was incurred in respect of external consultancy fees on six projects which specifically required the approval of DFP.

"Approvals were not retrospectively granted due to the Department's failure to comply with specific conditions as defined in Managing Public Money Northern Ireland.

"The Department incurred further irregular expenditure amounting to 2.3m on consultancy projects in prior years."

Mr Donnelly went on to report that he asked DE to provide him with an explanation of the irregularities in the 2009/10 figures.

He noted: "The Department had anticipated irregular expenditure of 708,000 on the other four projects. Actual irregular expenditure in 2009/10 amounted to 1,935,429 a difference of 1,227,429 (173 per cent increase).

"I asked the Department to explain why there was such a variance.

"The Department advised 'it was not aware of the additional tasks in the Derry Dioceses PPP, Down and Connor De La Salle PPP and Lagan/Tor Bank PPP when the information was being supplied for the 2008/9 resource accounts.'

"I am disappointed the Department did not provide accurate and reliable information on these projects and the costs associated with them."

Consequently, the Chief Auditor concluded that expenditure in 2009/10 amounting to 2,083,175 (including VAT where it cannot be reclaimed) was identified for which the Department had not obtained the necessary approvals.

"This expenditure did not conform to the proper authorities and is therefore irregular. My regularity opinion has been qualified in this respect," he stated.

He added: "The findings are disappointing, particularly in light of information and representations that were given during the 2008/9 audit.

"I therefore urge the Department to ensure these matters are fully remedied and appropriate actions are taken and controls put in place to prevent any recurrence of the failings.

"I will keep progress under review."