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The Comptroller and Auditor General’s annual report carries important messages
It would be unfair to conclude that the instances of lax controls and wasteful spending highlighted in the latest annual report from the Comptroller and Auditor General were symptomatic of the entire public service.
In a spending budget running to over €120 billion, some things will inevitably go wrong. But nor can the findings be dismissed as unusual. From the National Children’s Hospital to the Leinster House bike shed to the constant overspending in some departments, it is clear that there are issues to be addressed in how expenditure is planned, undertaken and controlled. The C&AG’s findings range from the micro to the macro.
In terms of specific instances, one of the most telling is in relation to refugee accommodation, where three precontract agreements with potential providers worth €100 million entered into by the Department of Children were cancelled due to a policy change in 2025. Substantial sums have been paid out in legal settlements as a result. As the report says, this was a cost “ for which no value has been obtained and represents a substantial loss to taxpayers.
” Two lessons emerge here. One is that particular care is needed when the State has to respond to urgent and unexpected issues. The second is that processes in relation to contingent liabilities need to be adhered to. In this case the Department of Public Expenditure was not informed.
At a broader level, when looking at the Department of Education, the report says that consistent overspending – ranging between €320 million and €1 billion per annum, in the years since 2021 – points to systemic problems. There are always difficulties in areas where demand is unpredictable, but, as the report said, better forecasting should be possible. Improved controls and information systems are also needed to help civil servants to allocate resources and better identify the causes for overspending.
Some departments, including education, argue that they are structurally underfunded, meaning overspending is inevitable. It is important that next week’s budget makes realistic allocations, rather than pencilling in figures for 2027 which everyone knows are set to be exceeded. The annual report from the C&AG reminds public servants that great care is need in handling State funds, most of them raised from taxes. In some cases there is a worryingly lax approach.
In others, departments and agencies seem willing to learn from experience and work to improve value for money. Balancing greater speed of action with adequate controls is a challenge. The evidence of recent overspending on major projects and the unsatisfactory level of some State services – despite expenditure increases – has left the public sceptical about how the money they pay in taxes is used. Trust here needs to be earned, rather than taken for granted.
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