Unapproved payments to staff in University College Dublin are set to be investigated by the Dail Committee of Public Accounts today.
The Dail inquiry follows a report from the Comptroller and Auditor General which found that UCD made payments of over £2 million to staff which were not covered by university legislation or approved by the Minister for Education.
UCD has revised its financial procedures since the controversy emerged this year. But there is speculation that the PAC review could trigger a change in university accounting procedures.
At present the universities receive a block grant from the Higher Education Authority, which each is free to spend as it chooses. University accounts are examined by both internal and external auditors and the office of the C&AG. But the UCD controversy could see new university legislation or even the Department of Education taking a more active role in third-level finance.
According to the C&AG, the university made the payments to staff between 1996 and 1998, mainly for correcting papers, administering exams and directing courses.
One unnamed academic received more than £50,000 annually during this period. Almost half the payments were made through a subsidiary company which offered UCD commerce courses to students overseas.
Asked to explain the payments, UCD's accounting officer said in the C&AG report: "It is a traditional and long accepted practice for universities to make payments for work over and above normal duties".
The money, apart from that routed through the subsidiary company, came out of UCD's general budget, which comes in the form of a block grant from the Higher Education Authority. The UCD officer said future payments would only be made following authorisation by its finance committee.