1. Public Spending Code (PSC) Quality Assurance Guidelines
Sonya Kavanagh
Public Spending Code Co-Ordinator
Kildare County Council

2. Background Circular 13/13 updated PSC obligations
PSC – Expenditure Planning, Appraisal and Evaluation in the Irish Public Service
PSC replaces all previous guidelines, circulars and direction in relation to appraisal and VFM
Based on objective of employing good practices at all stages of the Expenditure Life Cycle
All public bodies in receipt of public monies must comply

3. Breaking down the Code
PSC includes 3 specific elements for the Planning Appraisal and Evaluation of expenditure within the public services
Compliance with requirements at each stage of expenditure life cycle
Compliance with reporting requirements at each stage of a capital project
Compliance with Quality Assurance.

4. Understanding the Code
Some Important points in understanding the PSC
Overview of Context of the Code
The PSC relates to both Capital and Current Expenditure
The critical element of the PSC is the compliance with the requirements for Planning, Appraisal and Evaluation requirements
The remainder of the PSC is recording and reporting on activity and compliance

5. Applying the Code to Local Government
LAs, in the main, are Sponsoring Authorities under the code i.e. LAs receive Grants, Rates, LPT, Service Charges etc.
LAs can also be Sanctioning Authorities under the code i.e. Where LAs provide funding of €0.5m or more to another body in a calendar/financial year.
Both definitions have obligations under the PSC
All Spending Departments need to review and understand their obligations under the PSC and align processes/practices if and where necessary.
A new QA process must be implemented in Local Government to meet the reporting requirements of the Code

6. Applying the Code to Local Government
LA Current Expenditure – Revenue Expenditure formally adopted by members in statutory budget process.
Service Level is proposed as most appropriate for the PSC
LA Capital Expenditure is project based funded by grants, Planning Contributions, Revenue provisions or borrowing
Job Code/Project is proposed as most appropriate for the PSC
The PSC suggests Finance is best placed to implement the code. However, the view of the HOFs is that
Applying the element of the PSC to project/programme expenditure life cycle is specifically the responsibility of the Spending Departments under the direction of the Accounting Officer i.e. CE
HOFs have agreed to assist in the framing of Guidelines for the initial implementation of the QA process.

7. Public Spending Code Quality Assurance Requirements Deadline – 30th September 2015

8. Quality Assurance – Summary of Five Stage Process
QA Process
Assigned to:
Data Provided by:
Step 1
Project Inventory
Coordinator
(Assigned by CE)
Project/Programme Owners within the organisation
Step 2
Publish Summary information on Website of procurements in excess of €10m
Procurement Officer
Project Inventory – review projects in excess of €10m to determine if they contains procurements over €10m (Details for PSC template provided by Project/Programme Owner)
Step 3
Complete
PSC Checklists (7)
for overall LA
Compliance Statement provided by Project/Programme Owners within the organisation
Step 4
In depth Check on a small number of selected projects
Internal Audit
Evidence provided by Project/Programme Owners within the organisation
Step 5
Complete Summary report for NOAC and website
Drafted by Coordinator and signed by CE
Steps 1 – 4

9. Step 1 QA Process Project Inventory – Basic Principles
Project/Programmes to be identified under 3 categories
Expenditure being considered
Expenditure being incurred
Expenditure recently ended
The reporting year will inform the criteria to be applied for sourcing the relevant information i.e.
Expenditure being considered (for/in 2014)
Expenditure being incurred (in 2014)
Expenditure recently ended (in 2014)
Project/Programmes to be listed in one category only

10. Step 1 - QA Process Kildare County Council’s Draft Project Inventory
The draft Inventory has to be discussed and agreed with the relevant budget holders / project managers.

11. Step 2 - QA Process Publication of Procurements over €10m
Compile a list of Projects which appear on the Project Inventory for values of €10m or more.
Review selected projects to determine if they consist of procurements/contracts over €10m
Format required by the PSC is set out on Page 8 of the Guidelines for each procurement over €10m
Publish on Website

12. Step 3 - QA Process Complete Checklists – 1 to 7
Checklist Completion aligned with Project inventory
Expenditure Category
Checklist to be completed
General Obligations
Checklist No 1
Expenditure being considered
Capital Projects – Checklist 2
Current Expenditure – Checklist 3
Expenditure being incurred
Capital Projects – Checklist 4
Current Expenditure – Checklist 5
Expenditure recently ended
Capital Projects – Checklist 6
Current Expenditure – Checklist 7

13. Step 4 - QA Process In-depth Check on Small Number of Projects
A more detailed review of the integrity of the Appraisal, Planning and implementation stages
To be completed by Internal Audit
Values of Projects selected must be at least 5% of the total value of all projects on the Inventory
5% is a minimum over a three year period
Same projects not to be selected more than once in the 3 years unless a serious deficiency discovered
Over a 3 – 5 year period each stage of the life cycle and every scale of project should have been included in the in-depth check.

14. Step 5 - QA Process Summary Report
Report must contain:
Project Inventory prepared.
Website reference for where the procurements over €10m are published.
A copy of the completed checklists.
The report compiled following the in depth review of a subset of schemes.
A note of how inadequacies identified in the QA process will be addressed.
Must be certified by Accounting Officer i.e. CE
Published on Website and submitted to NOAC

15. Questions?? Go easy on me!