Decision to scrap exam fees contributed to State Examinations Commission’s €2m deficit

The Government’s decision over recent years not to charge students for sitting the Leaving and Junior Certificate examinations has contributed to a €2 million deficit on the books of the organisation that runs the process.
The State Examinations Commission (SEC) said in its financial report for 2023, which was published on Thursday, that it recorded a deficit of €2.014 million last year. This was down from €2.217 million in 2022.
The accounts also show that the SEC reported a legal settlement of €60,000 in 2023. The cost of legal proceedings were €4,151.
The SEC was established in 2003 with a role of holding, assessing and certifying the second-level State examinations as well as some trade and professional examinations.
The report maintains that the scale of financial deficit has fluctuated over recent years but that it had been hit by the Government decision to scrap fees for the State examinations. The report says that the SEC has two sources of income: State funding from the Oireachtas and fees charged to those sitting examinations.
Last year it received €107 million in State funding.
The new report says that in 2017 it had undertaken a review into the background to a deficit that had built up in the period 2014-2016. It says the review found that this had been primarily caused “by the cumulative effect of insufficient provision being made with the SEC budget for the increase in candidature over the period and the increase in number and scale of accommodations sought by candidates with special education needs since 2013″.
The report says the SEC accepted the recommendations of the review which included an enhancement of the budget estimate process to secure appropriate funding and to decrease the deficit over time.
It says that from 2017 to 2019 the deficit was reduced from €2,194,292 to €609,225.
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“However, in 2022 the deficit increased to €2,217,901. This increase in the deficit was associated with the decision taken by the Department of Education not to charge examination fees to candidates again in 2022 and also with very significant decisions which were taken about the 2022 examinations which impacted on the SEC budget after the conclusion of the estimates process.
“These factors, coupled with long-standing issues associated with receiving an appropriate level of funding for essential activities, [continue] to impact the deficit position. In 2023 the deficit reduced to €2,014,523.”
The Government decided in 2020 that fees for sitting State examinations would not be charged.
In 2023 fees were reintroduced for students seeking to appeal examination results.