Joint Press Statement by the Department of Foreign Affairs and GOAL

Because of concerns earlier this Summer in relation to matters of accountability for public funds, the Department asked accountants Ernst & Young to undertake a review of GOAL operations. Minister of State Liz O'Donnell, together with officials of the Department and the Agency for Personal Service Overseas (APSO), have met with representatives of GOAL following submission of the report.

The report identified a number of deficiencies, and recommended the implementation of stricter financial controls and improved management structures within GOAL.

The report did not find evidence that funds were improperly diverted for purposes other than development.

GOAL indicated its acceptance in full of the report's recommendations, some of which have already been implemented. Based on the undertakings given by GOAL to implement fully the recommendations, the Department indicated that GOAL is eligible to apply for funding for development and emergency projects, which the Department will consider according to its normal criteria and approval procedures.

GOAL and the Department look forward to continued cooperation in the future.

Ernst & Young

Review of the Operations of GOAL 1995 & 1996

Recommendations

1. Expenditure on running costs without appropriate approved funding should be ceased. Specific donor approval should be obtained for the application of donor funds to running costs before any related commitments are made.

2. Monthly project returns should show the source of income by donor, project and approved project element, matched to project expenditure by project element.

3. APSO's application forms should be completed to reflect the correct number of agencies who have been approached to fund individual APSO personnel.

4. ECHO's application forms should also be completed correctly. An accurate estimate should be made of the percentage of the total funding being requested from ECHO, taking into account other donors who have contributed to the individual.

5. The financial statements should separately disclose donor income and expenditure by project and approved project element. This detail should be disclosed and reconciled as part of the audited financial statements.

6. Monthly field reports should include an income and expenditure statement for each individual project and approved project element which can then be reconciled to the Final Financial Report for each project.

7. All field offices projects should be reviewed annually by a local auditor where income for the project exceeds IR£25,000.

8. Separate project bank accounts should be opened for each project at field level. The project bank account should be reconciled monthly. This would separately identify all the income and expenditure for individual projects which may be sponsored by more than one donor.

9. Interim project reports should be made to each donor (ie. DFA) on a six monthly basis. This report should contain details of the income and expenditure for that project by donor and by approved project element. Where there was more than one donor for a particular project, income and expenditure should be shown separately for each donor to that project.

10. For APSO funded personnel, more accurate travel information should be kept by GOAL in Dublin. Third party documentation should be retained to support the actual return date of APSO personnel from the field.

11. A review of the organisation structure of GOAL should be undertaken to ensure that there are clear lines of reporting and accountability and adequate managerial controls in place to manage the expanding operations of the organisation.

12. A more comprehensive review of management and operational processes and procedures, including personnel, projects and fund-raising should be undertaken to identify the procedures and processes appropriate to the scale of GOAL operations. The Executive Committee should establish clear guidelines in relation to the nature and scope of projects to be supported by GOAL.Top