SECTION 1

lARNROD ElREANN

Procurement & InternalControls investigationStrictly Private &Confidential

Prepared by:

BAKER TILLY

RYAN GLENNON

I INTERIM|REPORT! 31 January

I 2008

IARNROI) EIRI-AW - PROCTKKMI-N

NTKRNAL, COM ROL

\ VI-STIGATION 3P' JAM \R\ 21)08

Interim Report to the Steering Croup Committee

PRIVATE & CONFIDENTIAL

TABLE OF CONTENTS

CONFIDENTIALITY1. 1.NT'RODL CTION AND BAC'KCROI NO 3

Systems Review 3 Forensic Examination 3Current Status 5

2. EXECUTIVE SUMMARY 7

IMSN Procurement System Review Findings 11 IMSN Procurement Walkthrough Findings 16Management of Stock Findings 22

3. TERMS

REFERENCE & SCOPE

OF THE

ASSIGNMENT 27 4. PROGRAMME

ORK

29 5. DETAILED FINDINGS AND RECOMMENDATIONS 31 6. CONCLUSION 32 APPENDICES:APPENDIX 1 T

ERMS

OF REFERENCEAPPENDIX 2 PERSONNEL I

NTERVIEWED

APPENDIX 3INFORMATION REQUESTED & RECEIVEDAPPENDIX 4P

ROCUREMENT

SYSTEM R

EVIEW

- PROGRAMME OF WORK- FINDINGS & RECOMMENDATIONS- SAMPLE QUESTIONNAIRE

RESULTS! - PROGRAMME OF WORK- FINDINGS & RECOMMENDATIONS

appendix6

MANAGEMENT O

TOCK

REVIEW: - PROGRAMME

ORK

! - FINDINGS

RECOMMENDA TIONSAPPENDIX 7- SAMPLE QUESTIONNAIRE & RESULTS __ _ __PROCUREMENT & MATERIALS DEPARTMENT B

ISINESS

LAN

2006-2009! APPENDIX 8! P R O

L R

\ I

NT \ IO D

K L

G R A P H

APPENDIX 9

_ j

COMPARISON OF PRQCL REM EM MODELS __ __!

APPENDIX

10 | BEST PRACTICE PRQCLREMENT MODEL .VPPRO

HAPPENDIX I 1APPENDIX 12S

TOCK

VALUATION REPORTS

AMPLE

STOCK TRANSFER FORM IN U

- \V

ATERFORD TO

PORTLAOISE

Page I ofM

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Interim Report to (lie Steering Group

Co nun it

tee

PRIVATE & COM'IDENTI \L __

O N F

f D

E N IIA LIT VThe contents of this Interim Report are based on the documents and information andexplanations made available and provided to us. We have not, except where specificallyindicated in this Interim Report, independently verified the information provided orrepresentations made to us.This Interim Report is confidential and is for the benefit of the Jarnrod Eireann SteeringGroup Committee set-up for the purposes of this assignment in accordance with the

Terms ofReference

provided. This report should be treated as highly commercially sensitive and thecopies issued to the Steering Group have been numbered. No responsibility or liability isextended or shall be extended to any third party for the whole or any part of its contents.Should you wish to disclose it to a third party we would request that our permission is soughtin advance.The schedule of information requested by Baker Tilly Ryan

Glennon

provided to IarnrodEireann is set out in

Appendix 3

which also shows details of information actually madeavailable for review by the Company. Attention is drawn to items which were not receivedor do not exist.Following consideration and any comments received from the Steering Group it is intendedto then issue the finalised Interim Report.