ILEX makes progresson spending control

TOP civl servant Noel Lavery says spending controls have been tightened by ILEX since unapproved expenditure on a number of projects including elements of the Ebrington Barracks development were disclosed last autumn.

Mr Lavery, Accounting Officer at ILEX’s sponsor department, the Office of First Minister and Deputy First Minister (OFMDFM), said he and his counterpart at the Department of Social Development (DSD), now hold monthly accountability meetings with the company to “consider progress against an agreed action plan.”

Both DSD and OFMDFM officials have been shadowing ILEX to ensure procedural propriety since learning last November of unapproved expenditure on a number of projects dating back to 2008.

Speaking on OFMDFM Governance issues at Stormont early last month Mr Lavery said ILEX has been addressing the issues encountered in the past.

“At present, there is good progress; there have been no further breaches,” he told the OFMDFM Committee.

The Department has instituted extra controls. Delegated limits on ILEX have been reduced, and there is additional scrutiny of drawdown requests and business case approvals.

“I ask you to note that, in his report, the Comptroller and Auditor General (C&AG) states that he understands that progress has been made by ILEX in strengthening its governance and other structures,” he added.

Ulster Unionist Party MLA Danny Kinahan told the Committee that: “When you read about Ebrington barracks, it says that the Department spent more than £4 million when it was supposed to spend only £3 million.”

He asked: “What is in place to stop the Department just spending again and you only hearing about it later?”

Mr Lavery replied: “ILEX manages that contract on our behalf, so it gets the expenditure certificated, and we get documentation before we make the payment.

“However, a commitment was made without departmental approval. The Department’s accounts are qualified because it makes the payment. The money goes through our books, so our accounts are qualified.

“ILEX is now monitoring expenditure against every business case approval. That action has been introduced by its new finance director and deputy chief executive.

“We have strengthened our procedures on drawdown. We are looking for confirmation from them that they have business case approval, so that I have an explicit assurance specific to the contract.”

He said this assurance was on top of a quarterly assurance from the ILEX chief executive Aideen McGinley that all expenditure is within the proper approvals.