The Department of Employment and Learning (DEL) is at present conducting an investigation into the 2005/06 financial statements of Fermanagh College.
The investigation was prompted by what DEL has described as, 'serious concerns' raised by the external auditor in relation to 'procurement activity.'
This fresh investigation follows hot on the heels of the College agreeing to repay £1.1million to the Department following what was at the time described as, 'fundamental breaches' of Department guidelines with respect to the way the college provided its work-based learning scheme. The money is to be paid back over a four year period starting last April.
Fermanagh College was merged with Omagh College and Dungannon College last year to form the South-West College.
In its recently published 2006/07 annual accounts, the DEL refers, both to the this earlier issue and to the current investigation.
Commenting on the former, Dr Aideen McGinely, the Accounting Officer with the Department of Education and Learning, writes:
'Last year, I reported some concerns over the standard of financial management in Fermanagh College. In particular, I had concerns in relation to a number of payments that were made for the delivery of a work-based learning scheme administered by the College.
'Following a review of the scheme, the College agreed to repay £1.1 million to the Department in installments over the four financial years from April 2006 to March 2010'.
Dr McGinley then goes on to give details on the present investigation.
'In the course of the audit of the 2005/06 financial statements for Fermanagh College, the Department was informed that serious concerns had been raised by the external auditor in relation to procurement activity.
'Tender documentation could not be found for all capital building additions in 2005/06 and the auditor had reported some concerns about the validity of one of the invoices presented for payment. The Department has notified DFP (the Department of Finance and Personnel) and NIAO (the NI Audit Office), in line with established procedures, and has commenced an investigation'.
It is understood that this investigation will be completed by the end of this month. A spokesperson for the DEL told the Herald yesterday: "The Department, in association with Fermanagh College and its successor body, South West College, have been investigating issues raised by the external auditor in relation to procurement of minor capital works.
"The Department is in the process of finalising its investigation and anticipates that the review will be completed by the end of January."
A spokesman for the South West College said he had nothing further to add to the department's statement.
Returning to the £1.1 million that is to repaid commenting specifically on the financial management within Fermanagh College, the DEL annual accounts' department said the College's progress was being monitored.
"The College also commissioned a number of internal reviews, including a comprehensive investigation into financial management within the College. The results of these reviews have been incorporated into an action plan which is being implemented by the College Governing Body. Progress is being monitored by the Department."
