Oireachtas Joint and Select Committees
Thursday, 27 February 2014
Public Accounts Committee
Payments to Section 39 Companies: Discussion
3:50 pm
Ms Marie Kelly:
That goes back a number of years. When the National Rehabilitation Board, NRB, was dissolved and FÁS was set up and became responsible for budget service provision, we had to pay training allowances on behalf of FÁS. We are like a managing agent which is just part of the process. There is no administration charge. We pay the allowances to the clients and then we bill FÁS and because there was a timing difference, FÁS gave a float of €1.5 million a number of years ago at the very start. Discussions have taken place recently with SOLAS on how such funds are to be distributed and managed in future. The float goes back a number of years. It allowed us to pay the allowances while we recoup them later from FÁS, so it was a timing issue.
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