PAC wants Government to start publishing net worth

Accounts: Finance Minister Paschal Donohoe and Public Expenditure and Reform Minister Michael McGrath working on Budget 2021. Photo: Gerry Mooney

John Mulligan Twitter Email

April 13 2021 02:30 AM

The Public Accounts Committee (PAC) wants the Department of Public Expenditure and Reform (DPER) to start publishing statements of Ireland's net worth, along with State assets and liabilities, in line with international budgetary standards.

The PAC has said it remains unhappy with the current situation whereby the implementation of an OECD recommendation on the matter has been delayed and wants a final timeline to be adopted by the third quarter.

“In 2019, the Organisation for Economic Cooperation and Development recommended that the State improve its financial reporting by incorporation elements of accrual accounting,” noted Sinn Féin TD Brian Stanley, who’s chairman of the PAC.

“This would include the maintenance of a State balance sheet that would present the State’s net worth, including its liquid assets and continuous liabilities, essentially providing a more holistic picture of the State’s finances,” he added.

He noted that the PAC was previously told by the DPER that the approach recommended by the OECD had been accepted by Government, but that the changes required would be implemented on a phased basis.

“However, the Committee remains concerned that DPER could not provide a clear timeline for the implementation of the necessary reforms to move to accrual accounting and requested a detailed timeline by the end of quarter three this year, as well as annual progress updates,” said Mr Stanley.

“While this is a technical recommendation, it is important as it relates to the provision of increased transparency and accountability in our public finances.”

The PAC also wants the Department of Finance to conduct a tender process without delay to secure external accounting advice in order to complete the outstanding financial statements for the Credit Union Restructuring Board.

The PAC said that during its examination of the Finance accounts, the Committee identified an issue around the lack of published accounts for the Credit Union Restructuring Board since 2016.

“The Department told the Committee that it has taken the decision to procure external accounting advice to assist in completing the audit [of the 2017 Financial Statements] and that the tender process would commence shortly,” said Mr Stanley.

“The Committee remains unsatisfied with this situation and is of the opinion that it must be resolved promptly to ensure proper oversight of State funds can take place,” he said.