DFAT Audit Committee: Annual Report 2024

Membership of the Audit Committee

Members of the Audit Committee are drawn from outside the Department of Foreign Affairs. They are appointed by the Secretary General of the Department. During 2024, Derek Moran and Susan Murphy renewed their membership for a further three years. Membership of the Committee during 2024 comprised:

Chairperson

Mr Bill Cunningham (appointed May 2020, and as Chairperson with effect from March 2023) is a retired chartered accountant and former senior partner at PricewaterhouseCoopers. Bill also chairs the Audit Committee of the Mater Hospital Group and holds a number of non-executive directorships in the public, not-for-profit and private sectors.

Members

Dr Susan Murphy

Susan is an associate professor in international development practice, Trinity College Dublin and currently researches and teaches on gender, climate justice, and development research and practice. She is Chair of the Board of Oxfam Ireland (Appointed June 2021).

Mr Derek Moran

Derek is a former Secretary General of the Department of Finance and member of the Scottish Government’s Exchequer Board (Appointed September 2021).

Ms Josephine Mooney

Josephine is a qualified accountant and a retired Deputy Director of the Office of the Comptroller and Auditor General (Appointed April 2023).

Dr Nicolas Marcoux

Nicolas is a key expert for the “Meldea” project, providing assistance to the European Union Commission on external relations. He is a former senior Governance Specialist at the Institute of Public Administration and former member of the ARC of the Commission for Aviation Regulation. Prior to joining the IPA, Nicolas worked for the European Union Commission in various development and assistance capacities in central and eastern Europe and sub-Saharan Africa. (Appointed June 2023).

Prof Anne Matthews

Anne Matthews is a Full Professor of Nursing at the School of Nursing, Psychotherapy & Community Health at Dublin City University (DCU). She has worked in nursing, midwifery, health and social research, education, policy and practice in Ireland, England and Malawi.

Attendance at Meetings

There were five meetings of the Audit Committee during 2024. All meetings were attended by all members, with the exception of two members each being absent from one meeting.

Kenya and Uganda Embassy visits

Introduction

A delegation from the Audit Committee including: chair Bill Cunningham, Audit Committee members Derek Moran and Nicolas Marcoux, as well as EAU Deputy Director Mary Convery, visited the missions of Ireland in Kenya and Uganda in May 2024. The purpose of the visit was to provide members of the Audit Committee with an overview of the range of work and engagement with stakeholders at missions, to deepen their understanding of the work of the Department and to provide observations on this work to the Secretary General and the management team.

Overall, the delegation were very impressed by the excellent work in both missions who are held in high esteem by partners and stakeholders. We found a very positive attitude to Ireland and the work of the missions in each country.

Mission Visit Highlights

The Makuru Development Centre and Songa school

During the delegations’ visit to Kenya, they visited a school established and run by Mercy Sister Sr. Mary Killeen. The experience was impressive and illustrated how the work of the Mission can be leveraged by encouraging Irish volunteers to work there.

Sr. Mary Killeen continues to lead a diverse programme of education, health, and community services in Makuru informal settlement, which is home to over 600,000 people. The visit to Makuru gave a sense of the real living conditions for many Kenyans, as well as seeing the real impact of the floods, bad planning and local governance challenges, and the impact of Irish Aid funding on the ground.

Karamoja Field Visit

A key highlight of the delegations visit Uganda was their visit to the Karamoja region of northern Uganda, where Irish development has been established for over 20 years. The delegation travelled to the region and saw first-hand, the great work which is being / has been done in the local hospital and the school, especially the blood bank initiative and building of the girl’s dormitory, which has enabled more girls to attend school safely. The delegation found the visit to Karamoja most beneficial and would encourage the Department to continue and where possible expand its support in this region.

The Audit Committee is formally appointed by, and advises, the Secretary General of the Department, who is the Accounting Officer for Vote 27 (International Co-operation) and Vote 28 (Foreign Affairs). As appropriate, the Committee will advise the Minister for Foreign Affairs, and the Minister of State for International Development and Diaspora.

The Committee is part of the Department’s governance and assurance framework, appointed to provide independent advice to the Accounting Officer regarding the suitability and robustness of the organisation’s frameworks, systems and procedures for:

1. governance, risk management, internal controls and
2. evaluation of the Department’s policies and strategies

and is responsible to him for its performance in this regard.

The Committee has an advisory role with no executive functions, responsibilities or powers and whilst it reviews and comments, it has no role in approving evaluation and audit reports. It does not have any responsibility or involvement in the review and approval (on behalf of management) of annual financial statements for the Department’s Votes.

The Committee provides advice and an independent appraisal of the audit and evaluation arrangements, with a view to strengthening governance, risk management and internal controls, as well as helping to enhance the effective operation of the audit and evaluation function within the Department. In particular, and in keeping with its Charter, the Committee undertakes to:

Support:

• the role and independence of the Evaluation and Audit Unit in carrying out its work
• the implementation of the Department's Counter Fraud Policy

Review:

• the Department's Evaluation and Audit Strategy and the work programmes arising form this
• the implementation of these programmes
• the adequacy of resources available for the Evaluation and Audit function

Examine:

• internal audit and reviews of the Department's governance, risk management, and internal control systems
• evaluations of performance carried out by the Evaluation and Audit Unit
• other reviews and analytical exercises carried out by the Evaluation and Audit Unit
• reviews of fraud control systems

In line with the Department’s Internal Audit Charter, the Head of the Evaluation and Audit Unit prepares an annual report on the activities of the Unit for the Secretary General, a copy of which is provided to the Audit Committee.

The Audit Committee meets with representatives of the Comptroller and Auditor General at least once a year. The Committee has a good working relationship with the Office of the Comptroller and Auditor General and these meetings essentially involve the sharing of information and views. The Committee has no direct involvement in the annual audit of the financial statements for the Department’s Votes conducted by the Office of the Comptroller and Auditor General, but does review comments on internal controls and track implementation of any recommendations made.

The Audit Committee also refers to guidance provided by the Department of Public Expenditure, National Development Plan Delivery and Reform to ensure compliance with the role of Audit Committees in central Government.

The Charter of the Audit Committee (see Appendix 1) sets out its role and terms of reference.

Financial Management

The financial parameters of the two Votes that comprise the Department’s expenditure programmes are as follows:

The Audit Committee met with officials of the Office of the Comptroller and Auditor General in February 2024 to discuss the audits of the two appropriation accounts for 2022, and the progress on the 2023 audits.

The Audit Committee welcomed the unqualified opinions provided by the Comptroller and Auditor General in the reports on the audits of the 2022 Appropriation Accounts for both Vote 27 and Vote 28 and the assurance provided to the Accounting Officer by the audits. It was noted that there were no issues of major concern and that the Comptroller and Auditor General was satisfied in all the main risk areas. The Office of the Comptroller and Auditor General officials thanked the Department for the level of cooperation and assistance received during the audit process, noting that this had also enabled timely completion of the audits.

The Audit Committee had two meetings with the Chief Operating/Financial Officer (COO/CFO) in 2024. During those meetings, the Committee received updates on implementation of management letter points noted by the Comptroller and Auditor General, an update on progress regarding the Financial Management Shared Services and the Department’s Grant Management System projects. COO/CFO also provided updates on capital investment budgets being managed by the Department. The Committee commended the COO/CFO and his team on their work during the year.

Risk Management

Risk management continues to be an area of significant focus for the Audit Committee. During 2024, the Department introduced the e-Risk management system and updated the Risk Appetite Statement and Risk Management Policy. The Committee continued to engage with the Chief Risk Officer and Department management on the risk management systems and processes in place across the Department. Risk registers for key divisions of the Department were reviewed over the course of the five meetings held during the year, focusing in particular on emerging and heightened risks being managed by the Department, such as crisis response to conflicts in Ukraine, Gaza, Lebanon and Sudan. The Committee also met with the Chief Risk Officer and her team in September. The Committee acknowledged the good progress in relation to risk management and welcomed further refinement of the process including stronger buy in from senior management in the risk management process and a further refinement of the risk appetite statement.

Audit Report Reviews and Recommendations Tracking

During 2024, the Evaluation and Audit unit conducted a total of 12 audits, which included ten mission audits and two audits at HQ. The Audit Committee continued to monitor and track implementation of audit recommendations by management. Sustained focus on progress in implementing recommendations is important and is one of the means of assurance for the Accounting Officer that the control environment in the Department is maintained, and improved where necessary.

During the year the Evaluation and Audit Unit continued to follow up on recommendations of previous audit reports, and presented progress updates to the Committee during the year. The Committee welcomed confirmation of progress on implementation of the audit recommendations, including completion of all recommendations in eight reports. The Committee also reviewed the EAU 2024 audit work plan.

Internal audit reports reviewed during 2024 were as follows:

• Internal Audit of systems for management of human resources at Embassy Lilongwe
• Internal Audit of the systems for management of human resources at Embassy Addis Ababa
• Internal audit of the systems for management of human resources at Embassy Maputo
• Internal Audit of Procurement Embassy Maputo
• Internal Audit of human resources at Embassy Lusaka
• Internal Audit of the systems for management of Human Resources at Embassy Pretoria
• Internal Audit of Procurement Systems in Embassy Kampala
• Internal Audit of Governance and Controls- Protocol II
• Internal Audit of the systems for management of human resources at Embassy Dar es Salaam
• Review of Visa services administration, process and oversight arrangement, Embassy Abu Dhabi (jointly with D/justice)
• Internal Audit of Embassy Abu Dhabi
• Internal Audit of systems for management of Micro Grants Scheme

Counter-Fraud Policy

The review of the Department’s Fraud Register was a standing agenda item at each of the Audit Committee meetings during 2024. The Committee was updated on changes to the Department’s Fraud Register, informed of new cases of fraud / suspected fraud that were added to the fraud register and updated on existing cases that, following full investigation, were closed.

In Q1 2024, the Audit Committee and the DCAD Senior Management Group received a detailed report of fraud/suspected fraud for the previous year. The report highlighted trends, such as hotspot countries, funding partners, and nature/types of fraud, as well as details on the financial sums involved including recovered and unrecovered funds.

The Audit Committee welcomed the ongoing work by the Evaluation and Audit Unit to support the Department in relation to fraud prevention and investigations, and the work to analyse trends and provide wider strategic focus on identifying and addressing root causes of potential fraud and to strengthen management of programme risk, including through bespoke fraud awareness training. The Committee noted the reduced number of reported frauds over previous years and will continue to monitor the reporting. During the Audit Committee delegation’s visit to Kenya and Uganda fraud incidence and detection was discussed both with the missions; staff and the partners and agencies working with Irish Aid in the region.

Evaluation Review

The following Evaluation Reports were presented throughout the year:

Studies

Thematic Evaluations & Other Departmental Areas of Work

Mission Strategy Evaluations

Spending and Corporate Governance Reviews

The Audit Committee welcomed these evaluation reports, which inform members about key elements of the Department’s work and inform management on the achievement of the department’s strategic goals. The Committee noted the lessons identified in the evaluations and the value afforded to the Department by the findings. It also welcomed the updates received during the year on the implementation of recommendations of previous evaluations and looks forward to continued progress in tracking implementation of evaluation recommendations.

Evaluation and Audit Work Plan and Annual Report

At the start of the 2024, the Director of Evaluation and Audit discussed with the Audit Committee the Unit’s proposed rolling work plan for 2024 to 2026, together with the detailed plan for 2024. The Committee provided comments on the plan and received regular updates on progress during the year.

The Committee received a report after the year end from the Director of Evaluation and Audit on implementation of the Unit’s work plan for 2024. The Committee is satisfied that the work was completed appropriately in line with the plan and appropriate amendments.

The Committee emphasised the importance of an Evaluation and Audit Unit that is appropriately resourced and that pursues a well-articulated work plan and strategy. While there were some staff changes during the year, the Committee is satisfied that, overall, the Unit was appropriately resourced for the year.

Advisory

The Audit Committee notes that the Evaluation and Audit Unit provides time in its work plans for the provision of advice when required by business units within the Department. In particular advice is given when decisions may arise involving increased risk, in addition to fraud issues and investigations. Committee members appreciate that the skills and experience that the Unit has, and continues to develop, are important as a support for the Department when advice is required. The Committee is also aware that it can be difficult to estimate exactly the time required in any given year to allow for this work and encourages sufficient contingency provision in this regard in annual work plans. In providing advisory services, the Unit is conscious of the need to maintain its independence from the implementation of such advice.

Irish Government Economic and Evaluation Service

The Evaluation and Audit Unit is a constituent unit of the Irish Government Economic and Evaluation Service (IGEES) and is represented through the Director on its Internal Advisory Group. The Committee welcomes the active participation of the Evaluation and Audit Unit in IGEES and supports it in exploring the opportunities that the service affords for knowledge sharing and learning among Government Departments.

International Networks

The Audit Committee was briefed throughout the year on the Evaluation and Audit Unit’s participation in relevant international networks and events. These provide an important opportunity to leverage the capacity of the Unit, share knowledge and learning, and contribute to better assurance, accountability and learning.

Meetings

Meeting with the:

• Secretary General
• Director General of Corporate Services Division
• Director General of Human Resources Division
• Director of Strategy, Governance and Change Unit
• Director General of Ireland, U.K. and Americas
• Director General of Development Cooperation and Africa Division
• Director General of Citizen Services Division and Chief Risk Officer
• Chief Financial and Operating Officer

Networks

The Evaluation and Audit Unit participates in a number of national and international networks for the purposes of professional collaboration, keeping abreast of best practice, and experience sharing, as illustrated in the diagram below.

In February 2025, the Audit Committee’s work plan for 2025 was discussed and agreed with the Secretary General to ensure that it covers key areas of strategic concern to the Audit Committee and to the Secretary General. The Committee’s work plan largely tracks that of the Evaluation and Audit Unit. However, the Committee will continue its thematic approach to frame its work plan during the year. Areas of particular focus, in addition to standing items including fraud, will include risk management and in particular, the Department’s response to the crises in Ukraine and Gaza, (including Health and Safety), Global uncertainty, cyber security, Implementation of the new passport system and the impact of new role in trade policy assigned to the Department. The Committee will continue to monitor implementation of audit and evaluation recommendations and emerging issues and risks of strategic importance to the Department.

Note of Thanks

Finally, the Committee wishes to thank the Evaluation and Audit Unit for the support and assistance provided throughout 2024 and in particular for its role as Secretariat to the Committee. To deliver on its mission, the Audit Committee relies on an independently functioning Evaluation and Audit Unit that is appropriately resourced to execute an extensive programme of work. We are pleased to note that the Unit was so resourced in 2024.

See the main Audit Committee page for the Charter.