sarah cremin

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Sarah Cremin

From: Deirdre Keyes <[email protected]>Sent: 15 February 2019 16:24To: Public Accounts CommitteeSubject: RE: meeting on 21 February 2019Attachments: KWETB Briefing to the PAC.pdf; Letter to PAC Secretariat.pdf

Categories: Red Category

Many thanks for the confirmation. I am attaching a letter and briefing for the Committee. I will forward my opening statement on Monday and also confirm the witnesses to be present. Should the committee require any further information please do not hesitate to contact me. Kind Regards Dr Deirdre Keyes Chief Executive, KWETB Kildare and Wicklow Education and Training Board Level 5, Áras Chill Dara, Devoy Park, Naas, Co. Kildare +353 45 988 000| kwetb.ie

From: Public Accounts Committee [mailto:[email protected]] Sent: Friday 15 February 2019 15:03 To: '[email protected]' Cc: '[email protected]' Subject: meeting on 21 February 2019

Dr Keyes, please note the meeting will be proceeding next week as previously planned. Please revert if you require further information. With regards, Pat. Pat Fannin | Committee of Public Accounts Houses of the Oireachtas | Kildare House | Dublin 2 | D02 XR20 T: +353 1 6184123 https://www.oireachtas.ie/

Oireachtas email policy and disclaimer. http://www.oireachtas.ie/parliament/about/oireachtasemailpolicyanddisclaimer/ Beartas ríomhphoist an Oireachtais agus séanadh. http://www.oireachtas.ie/parliament/ga/eolas/beartasriomhphoistanoireachtaisagusseanadh/

CREMINS

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PAC32-R-1987(i) A Meeting 21/02/2019

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Further Information

CREMINS

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PAC32-R-1987(ii) A Meeting 21/02/2019

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The report is submitted by

Dr Deirdre Keyes

Chief Executive

On behalf of KWETB

February 15th 2019.

Kildare and Wicklow Education and Training Board (KWETB) Briefing to the Public Accounts Committee (PAC).

CREMINS

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PAC32-R-1987(iii) A Meeting 21/02/2019

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Outline of Briefing

Section 1: Introduction and Context

This Section will provide the background to both the C & AG audit report, KWETB Financial Statements

2015 – Supplementary Report, on the KWETB 2015 audit accounts and the report on Investigation into

Certain Matters in KWETB, under Section 40 of the ETB Act 2013, known as the Thorn Report.

Section 2: KWETB Corporate Governance Programme

This Section will provide an overview of the KWETB action plan, ‘KWETB Corporate Governance

Programme’ to include a status report. This is a robust corporate governance action plan developed

in line with the recommendations and findings of the Thorn Report, relevant C & AG Reports and also

the requirements of Education and Training Board Act, 2013, the Code of Governance for ETBs, 2016,

and other relevant statutory instruments and Circulars.

Section 3: KWETB Section 40 Report Update

This Section will provide an update on the status of the actions committed to in the Thorn report by

the Executive.

Section 4: Key Audit Concerns

This section addresses the remaining concerns as expressed by the Controller Auditor General

following the 2015 audit, (page 9, section 28).

Appendix 1: Thorn Report Terms of Reference and Recommendations

For convenience we have included the Terms of Reference and associated recommendations from the

Thorn Report. Recommendations have been numbered for ease of reference.

Appendix 2: KWETB Corporate Governance Programme Plan

A summary programme of work associated with the KWETB Corporate Governance Programme Plan.

Appendix 3: Board Response to the Direction of the Minister under Section 41 (3) of the Act of 2013

Letter as issued to the Minister, in December 2018, with regard to confirmations on his directions to

the Board under Section 41 (3) of the Act, 2013.

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Section 1: Introduction and Context

During April 2017, in the course of the Audit of the Comptroller & Auditor General (C &AG) of KWETB

financials for 2015, queries were raised directly with KWETB and thereafter a number of issues were

brought to the attention of the Department of Education and Skills (DoES). The Department

corresponded with KWETB and sought responses to the issues concerned.

In October 2017, having considered the issues raised by the C & AG and subsequent responses, the

Minister for Education and Skills appointed Dr Richard Thorn to conduct an investigation into the

operation of Kildare and Wicklow Education and Training board (KWETB), in accordance with his

powers under Section 40 of the Education and Training Board Act (2013). The purpose of the

investigation was to consider the performance by the Board of its functions in relation to public

procurement, usage and disposal of assets and propriety and other matters. (Appendix 1: Terms of

Reference)

A draft report was issued to KWETB for response in January 2018. This response formed part of the

final Thorn Report. The final Report was issued by Dr. Thorn to the Minster in July, 2018. The KWETB

response, as noted by Dr Thorn in the final Report, was both comprehensive and constructive in the

manner the Executive and Board committed to dealing with the recommendations and findings of the

Report through the actions and commitments as set out.

On 12th September, 2018, the final Report, ‘Investigation into Certain Matters in Kildare and Wicklow

Education and Training Board’, was issued for the attention of the Board and Executive of KWETB.

Whilst the report outlined that in relation to the ETBs governance procedures, adequate

arrangements to manage procurement and conflicts of interest were in place according to KWETB

documented procedures, it highlighted serious concerns and shortcomings on an operative basis in

the implementation of procurement process and in relation to management intervention in a number

of projects1. The key findings of the Report focused on a number of issues relating to the operation of

policies and procedures for procurement and tender processes, conflicts of interest, use of rented

properties and disposal of assets. The Report also found that the Board should be more proactive in

ensuring oversight of the ETBs management of projects.

Alongside the issuing of the report, the Minister, in accordance with Section 41 (3) of The Education

and Training Board Act, 2013, gave a number of directions to the Board in relation to the performance

of its functions. In addition to these directions, the Secretary General of the Department of Education

and Skills also directed the Chief Executive on a number of matters. Those matters related to the

commitments already made by KWETB as part of their response submitted in relation to the draft

Thorn Report, the expectations of the Department in terms of the delivery of these actions and the

reporting and oversight arrangements that were to be put in place. Whilst the proactive approach to

1 A number of issues have been referred to the Garda National Economic Crime bureau and this investigation is still underway.

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date of the ETB in addressing many of the issues as set out in the Thorn Report by way of KWETBs

initial response, the seriousness of the findings was once again noted and the need for a robust

governance action plan highlighted. KWETB accepted the findings and agreed in full to the directions

of the Minister and Secretary General.

On September 21st, the Board of KWETB met to consider the final report in particular the Ministers

directions as set out. The Board accepted the directions in full. Thereafter the Executive set about the

completion of a robust Corporate Governance Programme which would include not just the actions

as set out in response to the Thorn Report recommendations, but other key governance areas in line

with the Code of Governance for ETBs (2016), DPER and other regulatory frameworks as relevant to

ETBs.

The ‘KWETB Corporate Governance Programme ‘(Appendix 2) was approved by the Board on

December 13th

A report was prepared and presented to the DoeS on January 13th, 2019 providing detail of the

Corporate Governance Programme, in particular the update on the actions as agreed within the Thorn

Report. The Chairperson of KWETB also prepared a response to the Minister directly, confirming the

status of the directions and particular actions that pertained to the Board (Appendix 3).

In addition to the investigation as instigated by the Minister under Section 40 of the ETB Act 2013, the

C & AG resumed its audit investigation in April, 2018. This concluded in May 2018. During September

and December of 2018, draft reports were issued to the Chief Executive for response. The Chief

Executive accepted the findings and outlined the actions and responses that KWETB had instigated to

address these concerns and findings. The final supplementary report of the C & AG was issued to the

Chief Executive of KWETB on January 15th and in line with Section 52 (1) of the ETB act 2013 were laid

in front of the House of the Oireachtas on Thursday February 14th.

Of significance at this point also is the issuing of Circular 0002-2019, The Code of Practice for the

Governance of Education and Training Boards. The Executive are currently reviewing this Circular in

order to advance the KWETB Corporate Governance Programme in line with this new framework.

The KWETB Corporate Governance Programme, a specific update on the actions agreed as part of the

Thorn Report responses and also a briefing of how KWETB addressed the concerns as expressed in the

final C & AG Report as issued to the Chief Executive on January 15 are now included as part of our

briefing to the PAC.

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Section 2: KWETB Corporate Governance Programme

Corporate Governance Summary

2 Organisation Support and Development (OSD) division consists of Finance, Corporate Services (incl Procurement, ICT), HR, IR/ER, Communications

Thematic Areas Objective Key Deliverables

1. Clarification of

Expectations in OSD

Team2

Ensure all OSD staff are very clear on

expectations from a corporate

governance point of view and affect a

culture change through the clarification

and embedding of OSD Values and

behaviours.

KWETB diagnostic report

OSD values

OSD values audit report

2. Robust System of

Internal Controls

Ref Thorn Recommendations 1 a )ii

Define and operationalise a robust

system and mechanism of internal

controls to ensure the integrity of

financial and accounting information,

promote accountability and safeguard

KWETB assets and resources.

Internal control policy &

procedures

3. Sign-off Authority

Policy

Define, communicate and implement

appropriate sign-off authority levels in

KWETB.

Sign off authority policy &

procedure

Implementation plan

4. Asset Management

Policy

Ref Thorn Recommendations 1 a) v

Ensure KWETB asset management policy

and practices are in line with the Code of

Practice for Governance of ETB’s

ensuring the integrity of the

management of KWETB assets.

Asset management policy &

procedure

Implementation plan

5. Robust KWETB

Governance

Framework

Ref Thorn Recommendations 1 a )ii;

Engage 3rd party expert to evaluate and

optimise KWETB Corporate Governance

policies, procedures, practices and

competencies in line with the Code of

Practice for Governance of ETB’s and

best practice.

3rd Party work proposal

Board questionnaire

Board evaluation report

KWETB governance action

plan

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6. Robust Procurement

Process

Ref Thorn Recommendations 1 a) ii; 1 a)

x

Optimise KWETB procurement process,

procedures and practices ensuring they

are in line with new sector Procurement

Policy and best practice.

Procurement checklist

New procurement policy &

procedures

Implementation plan

7. KWETB Procurement

Plan

Create a robust Procurement Plan for

KWETB ensuring best value for money

and adherence to procurement policy

and procedures.

KWETB procurement plan

Staff training plan

8. Procurement

Training

Ensure all staff involved in procurement

have the competencies to fulfil their

role in line with KWETB enhanced

Procurement policy.

Training needs analysis

Robust training plan

9. KWETB

Representation on

ETBI Procurement

Network Forum

Provide an opportunity for KWETB

procurement staff to engage and

network with others in the sector and

be at the leading edge of developments

in procurement best practice.

Two staff representatives

10. OSD Resource Plan

(critical immediate

needs)

Ensure OSD team have the required

resources and the appropriate

competencies required to discharge

their current responsibilities to a high

standard taking into consideration

challenges faced.

Business case

Agreement with DoES

Role Profiles for agreed new

roles

Hiring plan

Interview schedule

Induction and training plan

11. OSD Workforce Plan

(long-term needs)

Create and implement an OSD

workforce plan to ensure optimal

deployment of resources to match

future needs of the organisation.

Future needs identified

Business case

Agreement with DoES

Hiring plan

Role profiles for existing staff

Interview schedule

Induction and training plan

12. KWETB Risk

Management

Framework

Define KWETB risk management policy

and implement a robust structured

process to identify potential threats to

KWETB and to define a strategy for

Enhanced KWETB Risk

Management Policy

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elimination of the impact of the risks as

well as the mechanism to effectively

monitor and evaluate this strategy.

OSD/Schools/FET risk registers

& mitigation plan

13. Conflict of Interest

(Ethics in Public Office

Process and Practice

Optimisation)

Ref Thorn Recommendations 1 a)ii

Aligned with the ethics and standards as

articulated in the Ethics in Public Office

Act 1995, create and implement robust

procedures and practices to identify and

manage real or perceived conflicts of

interest that may be damaging to

KWETB activities and reputation if not

managed appropriately.

Robust procedures to identify

and manage conflicts of

interest in KWETB

Implementation plan

14. Best Practice

Document

Management Process

& System

Ref Thorn Recommendation 1 a)ii

Define and implement best practice

document management process and

system to ensure the integrity of

documents stored and the optimal

retrieval of the same.

Policy document convention

template

New procedures and systems

15. Delegated

Responsibility Policy

and Procedures

Ref Thorn Recommendations 1 a) iii

Create and implement an effective

process to enable responsibility to be

delegated and managed in a manner

that ensures clarity of understanding

and expectation.

Enhanced policy & procedures

Register of delegated

responsibilities

16. Fraud Risk

Management

Framework/Program

Develop and implement a robust fraud

risk management framework that will

enable KWETB have controls that first

prevent fraud from occurring, detect as

soon as a fraud happens and respond

effectively to fraud incidents if they

occur.

Enhanced fraud risk

management policy

Fraud risk assessment report

Enhanced fraud controls

Ongoing fraud evaluation

plans

17. Role of Employer’s

Representative (ER)

Ref Thorn Recommendations 1 a) ix; 2,

b); 1 a)x

Ensure the role of the ER is respected in

all building projects for which KWETB is

the employer.

Implementation of best

practice through effective

communication to all relevant

staff

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18. KWETB Policy re Pool

Vehicles

Ref Thorn Recommendation 1 a) vi

Cease the practice of the using pool

vehicles in KWETB in an orderly and

structured fashion, adhering to

appropriate procedures to dispose of

vehicles ensuring best value.

Professional evaluation

Quotes from the trade

Invoice for sale of vehicles

Change of ownership forms

19. Protected Disclosure

Policy

Review and enhance existing KWETB

Protected Disclosure Policy to ensure

that the culture and working

environment in KWETB encourage,

facilitate and support any employee to

‘speak up’ on any issue that could

impinge on KWETB’s ability to carry out

its roles and responsibilities to the high

standard expected.

Enhanced KWETB protected

disclosure policy, procedures

and form

Communications/training plan

20. Embed Key

Governance Related

Policies/Procedures

in KWETB

Communicate and implement best

corporate governance rules, practices

and processes, ensuring KWETB is

effectively managed and governed in

accordance with the Code of Practice for

the Governance of ETB’s

Register for all key corporate

governance policies

Training Plan

21. New Code of

Governance for ETB’s

Review the ‘new’ Code of Practice for

the Governance of ETB’s and implement

any changes to KWETB policies,

procedures and practices as required

New code of practice for

governance of ETB’s

Training plan

22. Statutory Reporting Develop and implement systems and

practices to enable KWETB honour its

obligations regarding Statutory Reports,

delivering the same on time and to the

highest standards

All reports published within

deadline

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KWETB Corporate Governance Programme Status

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Section 3: KWETB Section 40 Report Update

KWETB Actions Committed to in the Thorn Report

Update Status 11/01/2019

Thorn Report Recommendation Reference

A memorandum of clarification has been issued to all staff with a role in procurement to emphasise that the practices on sales proceeds referred to in the recommendation are inconsistent with the KWETB Procurement Policy

This action is to address the past occasional practice of offsetting sales proceeds against items purchased. This practice has ceased and all purchases of motor vehicles are from reputable dealers willing to provide guarantees.

Complete Recommendation 1 a) vii

Active engagement with external expert agency or agencies to develop a strategy for a comprehensive review of Corporate Governance structures at KWETB and to address any gaps identified

KWETB are utilising the services of IPA and IPB in developing and implementing best fit corporate governance policies, procedures and controls and in the development of staff and board competencies

Substantial Progress

Recommendation 1 a) ii

Carry out a comprehensive procurement training needs analysis to identify staff training needs with respect to procurement to develop the competencies of the KWETB Procurement Team

Staff procurement training needs have been identified and training provided. This is reviewed on a regular basis and needs addressed through formal training.

Complete Recommendation 1 a) iii

Clarify roles, responsibility and authority with respect to procurement processes and systems of internal control

Roles, responsibilities and authority with respect to procurement processes and systems have been clarified. Internal Controls have been updated significantly and are regularly reviewed and enhanced

Complete Recommendation 1 a) viii

Conduct an audit of current building projects to confirm that no instructions to accelerate construction projects are in effect

An audit of current buildings projects was carried out to confirm that no instruction was issued to accelerate existing construction projects. KWETB is following PWC in full.

Complete Recommendation 1 a) ix

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Create a KWETB procurement plan compliant with OGP Frameworks for 2018-2020

KWETB have created an initial procurement plan compliant with OGP Frameworks for 2018-2020. However ETBI are working with ETB’s at sectoral level to define a procurement template and process to create a robust procurement plan and we have representation on the work group.

Early Progress Recommendation 1 a) iii Recommendation 1 a) viii

Develop an organisational chart and related policies clearly identifying areas of delegated responsibility with respect to procurement and other key decision-making functions, with these arrangements to be brought to the Board

KWETB have clarified roles, responsibilities and sign off authority levels of those involved in procurement. This information is clearly stated in our Procurement Policy and related documents.

Complete Recommendation 1 a) iii

Formal training in Public Procurement Systems and Practices for the Procurement Team including team members attending Certificate in Public Procurement Programme

Staff have been trained and are proficient in public procurement systems and practices. Staff follow the procurement guidelines in relation to best tender management process and practices to ensure optimal value for the tax payer. We continually evaluate our procurement training needs and address any needs identified.

Complete Recommendation 1 a) iii Recommendation 1 a) viii

Identify staff training needs with respect to procurement to develop the competencies of the KWETB Procurement Team

Staff procurement training needs have been identified and training provided. This is reviewed on a regular basis and needs addressed through formal training.

Complete Recommendation 1 a) viii

Implement plan to heighten awareness of procurement practices and policies across KWETB among Board Members, Senior Managers, Principals, FET Coordinators, OSD Managers and staff in general

KWETB has implemented and adheres to the new sectoral Procurement Policy and procedures which is based on national and EU requirements. Resources engaged directly in procurement are fully aware of the new policy and process are implementing the same.


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Internal review of existing procurement policies and procedures

KWETB has implemented and adheres to the new sectoral Procurement Policy and procedures which is based on national and EU requirements.


Introduce best-practice document management and policy approval practices and conventions including revision dates, by whom, promulgation, changes, distribution etc.

All policies are presented to the Board for noting or approval as required and follow best document protocols and conventions. We have expanded this action to included best document management practices and systems for all our documents to ensure the integrity and optimal retrieval of the same.

Early Progress Recommendation 1 a) iii

KWETB confirms that it will adhere to DoES technical guidelines and provisions included in relevant construction contracts

KWETB respects the role of the Employer's Representative, as established in construction practice in various guidelines, for which KWETB is the employer.

Complete Recommendation 1 a) ix Recommendation 1 a) x Recommendation 2 b)

KWETB confirms that the Procurement Policy of the KWETB is based on national and EU requirements


Complete Recommendation 2 b)

KWETB has secured the services of an external expert agency (Irish Public Bodies) to advise on best practice and procedures with respect to Corporate Governance and to respond to any recommendations arising from reports on the performance of KWETB

KWETB are utilising the services of IPA and IPB in developing and implementing best fit corporate governance policies, procedures and controls and in the development of staff and board competencies. This work is ongoing.


Recommendation 1 a) i and ii

KWETB is currently reviewing the operation of a carpool with a view to the review or termination of this practice

KWETB has ceased the operation of a carpool.

Complete Recommendation 1 a) vi

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KWETB is engaged with an external expert agency (Irish Public Administration) to determine their suitability to compliment the work of IPB with respect to enhancement in Corporate Governance

KWETB have had extensive engagement with IPA and have determined their suitability to complement other work we are engaged in with IPB. KWETB have identified areas where IPA can provide expert support and guidance and they are currently facilitating the Board self-evaluation.

Complete Recommendation 1 a) ii

KWETB representation on national ETBI procurement networking forum for best practice

KWETB have secured representation on the national ETBI procurement network and are actively engaged on the same.


KWETB will ensure that the requirements of the Code of Practice for the Governance of ETB’s in respect of the Board approval for ‘the acquisition, development and disposal of land or any interests in land including buildings’ are adhered to and recorded appropriately in Board minutes

The Executive and Board members of the KWETB are adhering to the requirements of the Code of Practice for the Governance of ETB’s in respect of Board approval for 'the acquisition, development and disposal of land, including buildings, or any interest in land, including buildings.

Complete Recommendation 1 a) v

Promote best procurement behaviour through leadership role modelling, encouraging appropriate behaviour and identifying behaviour that may not be aligned with expectations and policy

KWETB Executive Team and managers follow existing procurement policies and procedures and Public Works Contracts in all cases and promote and role model best practices.


Review and optimise Asset Management Systems across KWETB

KWETB has initiated an audit of existing assets and are implementing a process to actively manage the same.

Early Progress Recommendation 1 a) viii

Review KWETB staffing levels and roles and responsibilities as part of ongoing Workforce Planning

KWETB has reviewed its staffing levels and have acquired core resources needed to ensure best corporate governance practices. A workforce plan is currently being created to identify future needs, roles, deployment and responsibilities.


Recommendation 1 a) iii Recommendation 1 a) viii

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Procurement Policy of the KWETB is based on national and EU requirements is confirmed


Complete Recommendation 1 a) x

The role of the Employer's Representative, as established in construction practice in various guidelines and relevant contracts is, and will continue to be, adhered to in all building projects for which the KWETB is the employer

The role of the Employer's Representative, as established in construction practice in various guidelines, is respected in all building projects for which the KWETB is the employer.

Complete Recommendation 2 b) Recommendation 1 a) ix Recommendation 1 a) x

The support of an external expert agency will be sought to assist KWETB in ensuring that the Procurement Policy will be adhered to through the development of a system of internal control

KWETB are utilising the services of IPA and IPB in developing and implementing best fit corporate governance policies, procedures, practices and controls and in the development of staff and board competencies


Recommendation 1 a) x Recommendation 2 b)

With the support of an external expert agency, develop a risk management architecture for KWETB with respect to construction projects

KWETB are utilising the expertise of IPB to develop a risk management architecture for KWETB and will review and enhance existing risk management processes with respect to construction projects. We are planning to run a workshop with ER’s and IPB to develop a risk management register for construction projects.

Early Progress Recommendation 1 a) ix Recommendation 1 a) x Recommendation 2 b)

With the support of an external expert agency, review protocols to ensure conflicts of interest do not influence procurement matters, that systems of internal control are fit for purpose, and ensure compliance with relevant regulations

KWETB has engaged with IPB to review and enhance current systems of internal controls and conflict of interest to ensure they are fit for purpose and are compliant with relevant regulations. We have made substantial progress on Internal Controls.


Recommendation 1 a) viii

With the support of an external expert agency, review protocols to ensure conflicts of interest do not influence procurement matters.

Aligned with the ethics and standards as articulated in the Ethics in Public Office Act 1995, KWETB is currently reviewing and implementing robust procedures and practices to identify and manage real or perceived


Recommendation 1 a) iii

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conflicts of interest that may be damaging to KWETB activities and reputation if not managed appropriately

Workshop with Finance and Procurement team to identify issues, clarify expectations and identify actions to enhance existing practices

A very successful workshop with the Finance and Procurement teams was delivered. Roles, responsibilities, expectations were clarified and processes optimised.


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Section 4: Key Audit Concerns

Concerns remaining after the C & AG 2015 Audit Area of Concern Current Status

Incomplete documentation in relation to certain procurements.

KWETB is adhering to the new sectoral procurement policy and can confirm all procurement documentation availability.

KWETB procurement documentation was held ‘offsite’ i.e. not within direct control of the ETB.

All procurement documentation is now held onsite.

Consultants to advise on Capital Projects were appointed without competition.

All consultants are now appointed through an open, competitive process.

Some contracts were awarded where it appeared from documentation that the successful bidder failed to meet certain required minimum standards.

All contracts are now awarded through an open, competitive process and successful bidders meet certain required minimum standards.

Documentation provided to the audit team did not explain the basis on which certain decisions were taken – there were inconsistencies and a lack of supporting information for the scoring of tenders.

All contracts are now awarded through an open, competitive process and supporting information for the scoring of tenders is available in all cases.

Contracts were identified that were awarded to a firm with connections to the (then) Chief Executive, which were not disclosed.

In line with our current Procurement Policy and procedures all persons involved in the key stages of the process are required to make conflict of interest declarations.

KWETB rented an industrial property in 2015 which was subsequently partially licensed to the same connected firm, with inadequate documentation of the on-licensing arrangements – rent and service costs were only paid to KWETB after concerns were raised by the audit.

Comprehensive documentation is now required for all property to be rented by KWETB. This includes a detailed business case and adherence to a robust procurement process in all cases.

Procedures regarding change orders in relation to the construction of a school in Arklow were not followed. This resulted in additional expenditure of €483,000.

KWETB currently complies in full with the Public Works Contracts guidelines provided by the Department of Education and Skills.

KWETB disposed of a van within a year of purchase, but received no payment until after audit queries were raised. In addition, a full year’s motor tax was paid by KWETB just before the disposal occurred.

KWETB currently follows best practice, as identified by the Internal Auditor, when disposing of vehicles.

KWETB incurred significant expenditure with certain hotels without a competitive procurement process.

KWETB has implemented a robust procedure for approval of the use of hotels in line with the KWETB Hospitality and Gifts Policy.

Subsistence claims by the (then) Chief Executive did not comply with regulations.

KWETB travel and subsistence claims are currently monitored to ensure they are in line with the KWETB Travel and Subsistence Policy, (including those of the Chief Executive).

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Appendix 1: Thorn Draft Report Terms of Reference and

Recommendations

Terms of Reference 1 a) To examine and report on the robustness of the ETB’s responses to the issues raised in

the C&AG Audit and the Department’s subsequent correspondence and identify any lacunae, inconsistencies or

insufficient clarity in the responses provided with particular reference to the following matters:

Terms of Reference 1 a) i. Compliance with Department procedures in relation to the procurement and

delivery of various building projects

Terms of Reference 1 a) ii. The governance arrangements in relation to procurement matters in 2015, 2016

and to date in 2017

Recommendations 1 a) ii

1. The Board of KWETB, utilising the services of an external agency, should develop a checklist of policies and procedures covering procurement, and any related matters, to include their version control, promulgation and sign-off by Board members and members of the Executive.

2. The Board of KWETB, utilising the services of an external agency, should develop and approve a policy and procedures for managing real or perceived conflicts of interest at Board or Executive level.

3. The Board of KWETB, utilising the services of an external agency, should review the arrangements for the functioning of the Audit Committee to ensure its effectiveness and adjust as required.

4. The Board of KWETB should take an active, rather than a passive, role in ensuring that there is effective oversight of governance arrangements within the KWETB.

Terms of Reference 1 a) iii. The effectiveness of arrangements put in place, in the years 2015, 2016 and to

date in 2017, by the delegation of functions or otherwise to ensure a conflict of interest did not occur with

particular regard to procurement, asset disposal or leasing that concerned companies referred to in the

C&AG Audit

Recommendations 1 a) iii

5. Any functions delegated under Section 16 of the Act should be clearly and unambiguously laid out in a document prepared by the CE and tabled at the Board.

6. The Board of KWETB should take an active, rather than passive, role in ensuring that there is effective oversight of governance arrangements within the KWETB.

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Terms of Reference 1 a) iv. The access to and usage of an ETB rented property by a company referred to in

the C&AG Audit, the origin of this arrangement, the agreements reached, the conditions attached including

rent level, payments in respect of works carried out, the timeliness of invoicing for rent and utilities due and

receipt of same

Recommendation / Action 1 a) iv

7. In the absence of the establishment of the authenticity of the tender report and documentation, the Investigator cannot make a finding as to whether an acceptable procurement process for the remedial works took place. Determination of the authenticity of the tender report and documentation reconciliation of the inconsistencies requires investigative powers beyond the scope of this Investigation and the matter has been forwarded to the Garda National Economic Crime Bureau.

Terms of Reference 1 a) v. The business case for the ETB’s intended use of the rented property and any

impact of its unavailability for this intended use

Recommendation 1 a) v

8. Notwithstanding the urgency of a requirement to establish education and training provision in any location, the Executive and Board members of the Kildare and Wicklow Education and Training Board should ensure that the requirements of the Code of Practice for the Governance of Education and Training Boards in respect of Board approval for 'the acquisition, development and disposal of land, including buildings, or any interest in land, including buildings' are adhered to.

Terms of Reference 1 a) vi . The operation and use of pool vehicles and business case for same

Recommendation 1 a) vi

9. The business case for maintaining a collection of car pool vehicles should be reviewed to ensure currency and the procedure for recording vehicle use examined to ensure that it meets standards

required to ensure no BIK obligations accrue.

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Terms of Reference 1 a) vii. The sale of a motor vehicle and the timelines in relation to the decision to

dispose of the vehicle, the assessment of its value, the date of sale, the supporting documentation in

relation to the sale and the timeliness of receipt of the proceeds of same by the ETB

Recommendation 1 a) vii

10. The practice of offsetting sales proceeds against items purchased, as here, and as initially

proposed at Section 5 [above], is not a good practice and should cease. Future purchases of motor

vehicles should be from reputable dealers willing to provide guarantees.

Terms of Reference 1 a) viii. The tender assessment process in relation to a drawdown contract awarded to a

company referred to in the C&AG Audit

Recommendations 1 a) viii

11. In respect of summer works scheme contract, reduced tender times bring the risk of diminished competition and thus increased costs. While shortened tender response time is provided for in the Department guidelines, this should only be used in extremis, be fully justified, and auditable, and documented at the time of the decision to reduce the tender response time. Further, every effort should be made, within procurement guidelines, to maximise the opportunity for tenderers to make submissions so as to ensure competition is maximised.

12. Should the restriction on the drawdown contract element of the investigation be lifted, the

Investigator recommends that Company 3 be requested to provide any and all documentation

relating to this tender process to determine if CVs and financial information, not present in files of

the ETB, were present for the evaluation.

Terms of Reference 1 a) ix. The sequence of events and the nature of the particular problems which gave

rise to claims for additional payments on a building project referred to in the C&AG audit

Recommendation 1 a) ix

13. The role of the Employer's Representative, as established in construction practice in various guidelines, should be respected in all building projects for which the KWETB is the employer.

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Terms of Reference for Which No Recommendations Were Identified

Terms of Reference 1 b) Where lacunae, inconsistencies or insufficient clarity are identified, to establish the

factual position in relation to the matters in question in so far as it is reasonably practicable to do so.

Findings/Recommendations

No findings or recommendations identified under this Term of Reference in the Draft Report.

Terms of Reference 1 c) In the light of the above, to report and make recommendations as appropriate, in

relation to the ETB’s compliance with the relevant requirements regarding governance, procurement, ethics and

Department policies and procedures.



Terms of Reference 2 a) The investigation may include: any other matter which was raised in the C&AG Audit or

the Department’s subsequent correspondence which, in the light of the ETB’s response, the Investigator

considers is a cause of concern or a matter of public interest



Terms of Reference 2 b) The investigation may include: any other matter which, during the course of his/her

investigation, comes to the attention of the Investigator and which the Investigator considers is a cause of

concern or a matter of public interest. If the Investigator considers that it is not feasible or appropriate to

deal with such matters within this investigation, s/he may bring such matters to the attention of the

Minister.

Recommendation 2 b)

14. The role of the Employer's Representative, as established in construction practice in various

guidelines, should be respected in all building projects for which the KWETB is the employer.

Terms of Reference 1 a) x. To examine and report on the purpose for and the procurement and award of a

contract to an independent expert for a school building project. within this investigation, s/he may bring

such matters to the attention of the Minister.

Recommendations 1 a) x

15. The Procurement Policy of the KWETB is based on national and EU requirements and should be adhered to in all cases without exception.

16. The role of the Employer's Representative, as established in construction practice and through

various guidelines, should be respected in all building projects for which is the the employer.

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Appendix 2: KWETB Corporate Governance Programme Plan3

KWETB Corporate Governance Programme

Start Finish % Complete

07/02/2016 28/12/2020 51%

Clarification of Expectations in OSD 19/06/17 31/05/19 69%

1:1 Between OSD Director and OSD staff & stakeholders 19/06/17 14/07/17 100%

Develop OSD organisational diagnostic report 17/07/17 25/07/17 100%

Share diagnosis with KWETB CE and Executive Team 26/07/17 28/08/17 100%

Create OSD Team workshop agenda 03/07/17 14/07/17 100%

Deliver workshop 30/08/17 30/08/17 100%

Follow up on any action items 31/08/17 29/09/17 100%

Create OSD Values Framework 11/02/18 11/04/18 100%

Communicate and embed OSD Values Framework 12/03/18 29/05/18 100%

OSD Values Audit and Action Plan 10/12/18 19/04/19 30%

Implement Action Plan 22/04/19 31/05/19 0%

Robust System of Internal Controls 01/01/18 27/03/18 100%

Identify best practice through IPB 12/02/18 12/02/18 100%

Review of existing KWETB internal controls 01/01/18 28/02/18 100%

Develop draft KWETB Internal Controls 01/03/18 12/03/18 100%

Develop Implementation Plan 12/03/18 12/03/18 100%

SMT sign off 12/03/18 12/03/18 100%

Sign off by Audit Committee 15/03/18 15/03/18 100%

Board Sign off 27/03/18 27/03/18 100%

Implement New System of Internal Controls 27/03/18 27/03/18 100%

Sign Off Authority Policy 21/05/18 30/04/19 69%

Review Sign Off Authority 21/05/18 23/08/18 100%

Develop Enhanced Sign Off Authority 19/06/18 22/06/18 100%

Secure Approval from SMT 23/08/18 23/08/18 100%

Sign off by Finance Committee 06/09/18 06/09/18 100%

Share with Board for Noting 11/09/18 13/11/18 100%

Implement New Sign Off Authority 29/10/18 29/10/18 100%

Embed Policy in KWETB 29/10/18 30/04/19 40%

3 Information captured 11/01/19

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Asset Management Policy and registers incl Leases - Acquisition, Development, and disposal

14/01/18 29/11/19 18%

Cease the practice of offsetting sales proceeds against items purchased

14/01/18 15/01/18 100%

Identify Best Practice 17/10/18 09/11/18 100%

Evaluate KWETB Current Policy, Systems & Practices re adherence to Code of Practice for Governance of ETB's

10/12/18 14/12/18 100%

Identify Suitable KWETB Asset Management Systems Software

14/01/19 28/02/19 60%

Secure Approval 04/03/19 12/03/19 0%

Update practices/procedures in line with new systems. 18/03/19 22/03/19 0%

Develop Implementation Plan incl Training 25/03/19 24/05/19 0%

Implement New Policy and Procedures 03/06/19 29/11/19 0%

Robust KWETB Governance Framework 03/01/18 31/12/19 15%

Engage 3rd Party Expert 22/03/18 30/03/18 100%

Develop Draft Work Schedule 03/01/18 03/01/18 100%

Inform Board 03/01/18 03/01/18 100%

Finalise Questionnaire 14/09/18 21/09/18 100%

Deliver Questionnaire 24/09/18 24/09/18 100%

Board Member Interviews 22/10/18 15/11/18 100%

Board Member Workshops 19/11/18 07/12/18 100%

Draft Report 10/12/18 21/12/18 100%

Final Report 21/12/18 26/03/19 40%

Identify Action Plan 26/03/19 14/05/19 0%


Robust Procurement Process 08/08/17 28/06/19 83%

Review Existing process/practices 08/08/17 08/08/17 100%

Identification of Weaknesses 08/08/17 08/08/17 100%

Action Plan to Address Weaknesses 21/08/17 03/11/17 100%


Develop a Procurement policies & procedures check List 01/02/18 21/09/18 100%

Board Sign off on New Sector Procurement Policy 27/03/18 27/03/18 100%

Implementation of New Sector Procurement Policy 28/03/18 14/12/18 100%

Review implementation of Procurement Process 24/02/19 28/06/19 0%

SMT to assess the implementation process 24/02/19 29/03/19 0%

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Formulate responses to Weaknesses identified. 01/04/19 30/04/19 0%

Develop and implement a plan to address weakness 05/05/19 28/06/19 0%

KWETB Procurement Plan 03/09/18 01/11/19 15%

Development of Sectoral Template 03/09/18 29/03/19 20%

Sign Off by SMT and Board 15/04/19 14/05/19 0%

Training of Staff 15/05/19 14/06/19 0%

Finalise Procurement Plan 01/09/19 01/09/19 0%

Implement Procurement Plan 01/11/19 01/11/19 0%

Procurement Training 05/02/18 08/11/18 100%

Carry Out Needs Analysis 05/02/18 27/02/18 100%

Identify Training Needs 05/03/18 09/03/18 100%

Develop Training Plan 12/03/18 16/03/18 100%

Deliver Training 19/03/18 08/11/18 100%

KWETB Representation on ETBI Procurement Network Forum

07/02/16 31/12/18 100%

Identify Appropriate Resource 07/02/16 07/02/16 100%

Secure Place on Forum 07/02/16 07/02/16 100%

Ensure Attendance 07/02/16 31/12/18 100%

OSD Resource Plan (Critical Immediate Needs) 19/04/18 30/04/19 59%

Identify Critical Resource needs 04/11/18 04/11/18 100%

Develop Business Case 19/04/18 27/04/18 100%

Secure Resources from DoES 24/05/18 24/05/18 100%

Create Hiring Plan 01/10/18 16/11/18 100%

Develop Role Profiles 01/10/18 16/11/18 100%

Advertise Roles 16/10/18 12/02/19 100%

Organise/Deliver Interviews 12/11/18 29/03/19 30%

Induct New Resources into the Team 20/11/18 30/04/19 25%

OSD Workforce Plan (Long-term Needs) 01/10/18 30/10/19 33%

Develop Strategy re Workforce Planning 08/10/18 29/03/19 90%

Evaluate Current Resource deployment 15/10/18 30/04/19 50%

Identify optimisation opportunities 15/10/18 30/04/19 30%

Implement Changes 15/10/18 28/06/19 15%

Identify Future Needs 01/03/19 28/06/19 50%

Develop Business Case For DoES 01/04/19 28/06/19 0%

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Seek Resources from DoES 28/06/19 15/07/19 0%

Develop Role Profiles 01/10/18 15/07/19 30%

Advertise Roles 15/07/19 13/09/19 0%

Organise/Deliver Interviews 15/07/19 30/09/19 0%

Induct New Resources into the Team 30/09/19 30/10/19 0%

KWETB Risk Management Framework 05/01/18 01/07/19 68%

KWETB Risk Management Workshop with IPB 28/01/18 30/01/18 100%

Agree SMT Workshop Schedule 15/02/18 15/02/18 100%

Develop Draft KWETB Risk Management Policy 20/03/18 20/03/18 100%

Embedding Risk Management in KWETB JK/IPB Meeting 26/03/18 26/03/18 100%

Input from SMT re Draft KWETB Risk Management Policy 09/05/18 09/05/18 100%

Presentation to Audit Committee re Risk Management 16/05/18 16/05/18 100%

Sign off by KWETB Board 19/06/18 19/06/18 100%

Implementation of KWETB Risk Management Policy 10/12/18 20/02/19 90%

SMT FET Risk Register Workshops 01/11/18 25/03/19 33%

Develop FET Draft Risk Register 01/11/18 30/04/19 33%

Sign off of FET Risk Register 13/05/19 13/05/19 0%

Implementation of FET Risk Register 14/05/19 01/07/19 0%

SMT Schools Risk Register Workshops 17/04/18 17/04/18 100%

Develop Draft Schools Risk Register 05/01/18 19/12/18 100%

Sign off of Schools Risk Register 21/12/18 21/12/18 100%

Implementation of Schools Risk Register 14/01/19 28/02/19 40%

SMT Corporate Risk Register Workshops 26/02/18 26/03/18 100%

Develop draft Corporate Risk Register 26/03/18 26/03/18 100%

SMT Sign off of Corporate Risk Register 04/03/18 18/04/18 100%

Implementation of Corporate Risk Register 18/04/18 20/04/18 100%

Ethics in Public Office Process and Practice Optimisation 11/08/18 10/05/19 65%


Review Current KWETB Procedures and Practices 10/10/18 10/10/18 100%

Identify Action Plan to Address Weaknesses 15/10/18 11/01/19 100%

Share/Promote 'updated' KWETB Procedures and Practices 14/02/19 22/03/19 0%

Implement 'updated' KWETB Procedures and Practices 25/03/19 10/05/19 0%

Best Practice Document Management Process & System 12/03/18 30/04/20 40%

Create proposed policy document convention template 12/03/18 09/04/18 100%

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Communicate and share with OSD Leads 15/04/18 30/04/18 100%

OSD Leads to implement for policies in their function 03/06/18 28/02/19 100%

Review Best Practice Document Management System & Practices

07/01/19 15/03/19 0%

Evaluate Current system/practices in KWETB 18/03/19 30/04/19 0%

Identify optimisation opportunities 01/05/19 14/06/19 0%

Secure Sign off from CE/Dir 22/04/19 22/04/19 0%

Run Tender Competition 17/06/19 17/10/19 0%

Develop Implementation Plan incl Training 18/10/19 31/01/20 0%

Implement New System & Procedures 03/02/20 30/04/20 0%

Delegated Responsibility Policy & Procedures 15/10/18 11/06/19 38%


Review Current KWETB Policy & Procedure 23/11/18 27/11/18 100%

Identify Opportunities to Optimise the same 29/11/18 19/12/18 100%

Develop an Appropriate Plan 02/01/19 19/02/19 40%

Implement Plan 20/02/19 11/06/19 0%

Fraud Risk Management Framework/Program 22/01/19 28/12/20 3%

Review KWETB Fraud Risk Management Policy 22/01/19 01/02/19 100%

Engage with IPA/IPB re Approach, Best Practice 26/03/19 29/04/19 20%

Enhance and implement KWETB Fraud Risk Management Policy

07/05/19 04/06/19 0%

Perform a comprehensive fraud risk assessment 17/06/19 09/08/19 0%

Design and deploy fraud preventive and detective control activities

26/08/19 14/10/19 0%

Monitor and evaluate KWETB Fraud Risk Management Program

11/11/19 28/12/20 0%

Role of Employer's Representative 14/01/18 28/02/19 100%

Review role of ER as established in Public Works Contract 21/01/18 05/02/18 100%

Communicate within Buildings Team & SMT 18/02/18 26/02/18 100%

Ensure role is respected in all building projects 04/03/18 22/03/18 100%

Audit of Current Buildings to Ensure no Instructions to Accelerate Projects are in Effect

11/03/18 11/03/18 100%

Ensure ER role is Adhered to in all Building Projects 10/03/18 10/03/18 100%

Confirmation that KWETB is and will continue to adhere to relevant DoES Building Contracts

14/01/18 28/02/19 100%

KWETB Policy re Pool Vehicles 14/01/18 30/04/18 100%

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Review current policy & practice 14/01/18 22/01/18 100%

Inform SMT of change 28/01/18 05/02/18 100%

Dispose of vehicles according to Code of Practice for Governance of ETB's

11/02/18 30/04/18 100%

Protected Disclosures Policy 18/11/18 30/08/19 17%

Reviewing existing policy 18/11/18 23/11/18 100%

Evaluate best practice 25/11/18 06/12/18 100%

Identify enhancements 17/12/18 25/12/18 100%

Sign off by Board 26/03/19 08/04/19 0%

Communicate new policy 08/04/19 30/08/19 0%

Embed Key Governance Related Policies / Procedures in KWETB

01/11/18 28/03/19 52%

Establish a list of the Key Governance Related Policies /Procedures

01/11/18 15/02/19 90%

Establish a communications and protocol for key Governance Policies/Procedures

01/11/18 30/02/19 70%

Establish a plan for the dissemination/training of the key Governance Policies/Procedures

01/11/18 01/03/19 50%

Put in place a mechanism to record and maintain records of communications/training

01/11/18 21/02/19 70%

Conduct communications/training 01/12/18 28/03/19 0%

New Code of Governance for ETB's 30/01/19 11/11/19 12%

Review draft code and provide input 11/02/19 26/02/19 100%

Create a plan to communicate and imbed 30/01/19 28/02/19 10%

Deliver imbedment plan 04/03/19 30/04/19 0%

Review success of imbedment plan and enhance if needs be 09/09/19 11/11/19 0%

Statutory Reporting 01/04/18 11/02/20 28%

Published Statement of Strategy 14/01/19 11/02/20 0%

Prepare action plan 14/01/19 29/03/19 0%

Consultation with stakeholders 01/04/19 30/09/19 0%

Collate all relevant feedback 24/04/19 30/09/19 0%

Create Draft Report 02/10/19 03/12/19 0%

Solicit Feedback 03/12/19 30/01/20 0%

Approve Report 31/01/19 31/01/19 0%

Publish Statement of Strategy 11/02/20 11/02/20 0%

Published Annual Financial Statement 01/01/19 29/03/19 43%

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Approve Report 21/03/19 27/03/19 0%

Publish Report 29/03/19 29/03/19 0%

Published Service Plan 01/04/18 26/03/19 68%




Approve Report Finance Committee 26/02/19 26/02/19 0%

Submit to Department of Education 28/02/19 28/02/19 0%

Approve Report KWETB 26/03/19 26/03/19 0%

Publish Report 01/04/18 01/04/18 0%

Published Annual Reports 01/01/19 28/06/19 0%




Approve Report 25/04/19 15/05/19 0%

Publish Report 28/06/19 28/06/19 0%

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Appendix 3: Board Response to the Direction of the Minister under

Section 41 (3) of the Act of 2013

sarah cremin

Documents