Audit urges checks on centenarian payments

AN INTERNAL audit of the Office of the President has recommended stronger checks on payments made to people on their 100th birthday following a surge in the numbers entitled to the €2,540 allowance.

Last year a record 379 Irish citizens who reached 100 years of age received the centenarian’s bounty, a 140 per cent increase over the past decade.

The main reason for the increase was a decision in 2006 to extend eligibility for the payment to Irish citizens living outside the State.

Last year, for example, more than 150 recipients resided outside the jurisdiction.

An internal audit found that there were strong controls over the payment of the bounty to people resident in Ireland.

Verification visits are carried out by staff at the Department of Social Protection, and spot-checks are carried out on paperwork.

However, an internal audit report states that the Office of the President should consider strengthening checks for those living outside the jurisdiction.

At present, recipients living abroad are required to provide their birth cert or passport and two recent proofs of identity, such as photo ID or utility bills.

The fact that these recipients live abroad means that controls are inevitably weaker.

Overall, the payment costs the State just under €1 million a year and accounts for the bulk of the President’s budget each year.

The first president of Ireland, Douglas Hyde, introduced the centenarian’s bounty in 1940, at which time those who reached their 100th year received £5.

In 1996, the bounty stood at £300. But in 2000 the payment was increased to €2,540.

In the same year, the president began marking the birthday of those who had their 101st and subsequent birthdays. They receive a commemorative coin in a presentation box. A new coin is designed each year.

The Government’s spending estimates for this year indicate there will be a record 388 recipients.

Overall, the internal audit of the Office of the President carried out in October last year found there were good controls in place over expenditure, use of credit cards and other payments.

While just over €3 million was allocated in 2010, the provisional out-turn was €2.7 million. The cost of the centenarian’s bounty and staff costs accounted for almost 90 per cent of spending.

The report said there was room for greater efficiency in areas such as procurement, mobile phone and computer equipment. It also said there should be a more formal system for refunding costs from the president’s household account.

“Justification should be provided for the need for staff to have an official mobile or data phone and this should be approved by senior management in the office,” the report states.

“The continuing usage of Blackberrys should be reviewed. Data download allowances each month should be cancelled where such an allowance is not justified based on usage.”

In addition, it said the president’s asset register should be updated more frequently to safeguard public funds, property and gifts received by the office.

Consideration should also be given to advertising for the provision of taxi services, while separate tendering processes should be put in place for mobile phone and IT services, the report found.

The audit was carried out by the Department of Public Expenditure and Reform.

100 UP - BY THE NUMBERS

€2,450 - The allowance Irish citizens are awarded when they reach 100 years of age

€300 - The allowance before the last increase in 2000

379 - The number of citizens who received the allowance last year