Report recommends independent review of accounts for state agencies

It comes just weeks after controversy erupted within the Arts Council over its failure to deliver an IT system, which cost almost €7m.

An expert review into the governance of the Arts Council is now under way.

A key recommendation from the report outlines that there is “merit” for the department to engage with the New Economy and Recovery Authority (NewERA).

This agency is a division of the National Treasury Management Agency, and provides financial and commercial advice to Government ministers, departments, and state agencies.

The report says that the department should consider engagement with NewERA to possibly provide its state agencies with “financial and advisory services”.

It also recommends that the accounts of all state bodies be subject to review by a qualified accountant within the internal Financial Advisory Unit, if their accounts are not already independently audited.

The report was commissioned by the department in 2024, in the wake of controversy over the governance practices of RTÉ — one agency that was under its control.

The report says there are “challenging situations” for a small number of state agencies over their relationship with the central department.

“State bodies which are self-funding or partially so, and/or have a role which requires a heightened degree of independence, may be somewhat more sensitive to the proximity of relationship with the department,” the report reads.

It also says that some agencies can be “defensive” in regards to oversight, saying that this is “geared towards protecting what they see as an essential degree of autonomy necessary to perform their mandate”.

Despite some state agencies seeking autonomy, the report states that it is crucial that all bodies must be “subject to sufficient oversight and accountability to ensure that it is performing effectively and delivering its objectives” and that public resources are used “efficiently and effectively”.

It also says there is merit in improving relationships at a senior level to help foster “a shared culture of good governance”.