Combined Section 15/16 Manual of the Standards Commission

4.2 Functions of the Standards Commission under the Party Leaders Allowance Act and administrative actions taken by it in the performance of those functions

Each year the Department of Finance notifies the Standards Commission of the amount of funding paid to the parliamentary leader of each qualified party in respect of the preceding year.

The Standards Commission writes to each of the parliamentary leaders at the beginning of March each year advising them of the need to furnish a statement of expenditure from the allowance in respect of the preceding calendar year. The letter advises that they must provide details, under each heading, of the specific items to which the expenditure was applied and that the statement must be accompanied by an auditor's report. A Statement of Expenditure of the Party Leaders Allowance form is included for completion and return to the Standards Commission by 31 March. This date is not specified in the legislation. It is chosen to ensure that party leaders have sufficient time to furnish their statements, having regard to the statutory deadline of 30 April (i.e. the end of the 120 day period). A sample form can be found at Appendix 13 of this Manual.

If a Statement of Expenditure has not been received by 31st March, the Standards Commission writes to the party leader concerned advising him/her of the provisions of the Party Leaders Allowance Act regarding the cessation of payment of funding if the statement and auditor's report are not received by 30 April.

The Standards Commission is required to consider each statement and auditor's report furnished to it and, if necessary, consult with the parliamentary leader on any matter contained in the statement.

The Standards Commission acknowledges receipt of each Statement of Expenditure of the Party Leaders Allowance and accompanying Auditor's report. Each statement is checked to ensure that it has been correctly completed, and that the funding has been spent in accordance with the provisions of the legislation. It should be noted that where funding in respect of a particular year is not spent in that year, it must be accounted for in the statement(s) for the year in which it is actually spent.

Where an error is discovered, the Statement is returned and the party leader afforded an opportunity to amend the statement. If it considers it appropriate to do so, the Standards Commission may also request further clarification in relation to details provided in the Statement. Where a statement has been amended or further clarification provided, the Standards Commission may request that the party's auditors verify the amendment(s) or clarification(s).

The Standards Commission is required to furnish a report to the Minister for Finance on the statements and auditors' reports received. This report is normally furnished when all Statements of Expenditure of the Party Leaders Allowance have been finalised. In its report the Standards Commission must indicate:

1. whether the statements and auditors' reports have been submitted within the specified period,
2. whether any expenditure is disclosed which does not comply with subsection 1(10)(5),
3. whether the statements are adequate, or
4. whether the statements are inappropriate.

In relation to (1) above, while the Party Leaders Allowance Act provides that an allowance shall not be paid unless the statement and auditor's report have been received within the required timescale, the Standards Commission has been informed by the Department of Finance that payment of the Allowance will be suspended until such time as the statement and auditor's report have been received.

As payment of the Party Leaders Allowance is made by the Department of Finance in arrears on a monthly basis, and as the Standards Commission's report is not usually published until the end of May, the Standards Commission writes separately to the Department of Finance in early May advising of the Statements of Expenditure which have been received by 30 April, and whether any Statements remain outstanding at that point. Where a Statement of Expenditure has not been received by 30 April and the Standards Commission has notified the Department of Finance of this fact, it will inform the Department of Finance if and when the Statement is received.

The Standards Commission is required to lay a copy of the report to the Minister for Finance before each House of the Oireachtas. In practice, the Standards Commission furnishes a copy of the report to the Minister for Finance the day before it is laid before the Houses of the Oireachtas. A copy of the statements and auditors' reports received must be retained by the Standards Commission for three years and be made available for public inspection and copying. The report and summary details of the Statements of Expenditure are published on the website of the Standards Commission.

The Statements of Expenditure and correspondence with parliamentary leaders relating to them are retained on physical files. The Standards Commission also maintains physical and electronic files relating to general correspondence regarding the Party Leaders Allowance.

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