I propose to take Questions Nos. 211, 212, 215, 216 and 217 together.
The Government's international development programme, Irish Aid, is focused on supporting countries and communities experiencing the greatest levels of need. This support is delivered primarily through trusted partners, including multilateral organisations and non-governmental organisations operating in some of the world’s poorest, most climate-vulnerable, and conflict-affected regions.
Indirect administrative costs constitute an essential component of the implementation of development projects and programmes. These costs, covering items such as office rental, legal services, and internal audit functions, enable partner organisations to operate effectively and efficiently, thereby ensuring the delivery of meaningful assistance to those most in need.
We are committed to reporting administrative costs incurred by the Department to the OECD Development Assistance Committee, which monitors and reviews international ODA figures and statistics. For 2022, 2023, and 2024, administrative costs consistently represented some 3% of Ireland's total ODA, excluding eligible supports for Ukrainian refugees.
With respect to partner organisations, the Department does not apply standardised thresholds for indirect administrative costs, given the diversity of sectors, contexts, and geographical settings in which grant recipients operate. Nor does the Department maintain a consolidated schedule or aggregate total of such costs. Instead, benchmarks or ceilings for administrative costs are applied at the level of individual grants or schemes where appropriate. Each grant undergoes a detailed, case-by-case assessment of administrative costs, taking into account contextual factors and available alternatives. These assessments form part of the Department’s standard grant-awarding and grant-management processes.
If a prospective grantee’s administrative costs are assessed as excessive, the grant does not proceed. As a result, the Department does not maintain records of such instances, as no financial relationship is established with organisations whose applications are not advanced.
For competitive grant schemes, such as Ireland’s Civil Society Partnership for a Better World (ICSP), the same criteria are applied to all applicants and are published in advance. For example, under ICSP, headquarters administration and programme quality costs are each eligible for funding up to a maximum of 6% of the total annual ICSP allocation. Other grants are assessed on their individual merits, with regard to value for money for beneficiaries and Irish taxpayers. The Department does not maintain records of the number of grants to which such conditionality, such as overhead thresholds, applies.
Once a grant has been awarded, the Department undertakes monitoring and risk management, as part of its standard approach to grant management. This includes the application of governance and compliance conditions, as well as robust internal and external controls, including audits and evaluations. Compliance with agreed indirect cost rates forms part of a broader assessment process that reflects the often complex and dynamic environments in which partner organisations operate.
Ireland’s commitment to fostering high-quality partnerships “characterised by mutual trust and flexible and reliable funding”was highlighted in Ireland’s 2020 OECD-DAC Peer Review as a core strength of the our ODA programme.
