Almost €1 million spent on sportswear using students’ smart card

Almost €950,000 in student cash earmarked for 'educational material' was spent on sports clothing and shoes in 2010 - equivalent to 15% of all payments made to retailers under the smart card scheme for university students.

The Auditor General has raised questions on the way university students are allowed to spend their annual €400 in cash under the smart card scheme, with 300 outlets that accept the smart card selling everything from fitness equipment to CDs.

"It is unclear whether a number of retail outlets participating in the Smart Card Scheme, some of which were paid substantial amounts during 2010, stock any items considered to be of an educational nature," the National Audit Office said in its annual report.

Part of the annual €23 million grants system to university students includes an annual fixed amount that can be spent in various retail outlets, for purchase of educational material such as books for instance.

However, the NAO says that retail outlets also include car hire and pharmacies, saying the nature of some of the businesses "sheds doubt on [their] eligibility to participate in the scheme."

During 2010, the NAO found that smart card payments for sportswear totalled €942,393 - equivalent to 15% of all payments to retailers in 2010.

It was also noted that the funds being spent on sportswear - particularly sports clothes and sports shoes - was increasing, when in 2009 these payments amounted to 11% of the total smart card spend.

The NAO also found that inspectors who are supposed to verify these payments, did not retain the fiscal receipts that evidence the sale of non-educational items. "Once the retailer is warned of the infringement... the receipts are disposed of."

Indeed, the NAO said there are doubts whether inspections of the retail outlets - which cost €8,786 in 2010 - are even carried out.

The inspectors are actually 'persons of trust' appointed by the student maintenance grants board, and not employees governed by an agreement.

Indeed, inspections were found to be unreliable: 14 of 20 retailers listed in a May 2010 inspection report featured again in the following month, in the same order in the report by the same inspector.

"An inspector alleged they purchased a camera from one of the retailers... according to the supplier's statement, no transactions were effected by smart card during the foregoing month," the NAO said.

And non-compliance by retailers appears to be on the increase. For example, out of the 38 outlets claimed as visited in April 2011, inspectors reported they had purchased 15 non-educational items, including mobile top-up cards, fitness equipment, CDs, magazines and a toy.

Certain retailers also take the bulk of sales from the smart card scheme. Some 18 outlets, which were never inspected, had sales of €133,930 in 2010. Another 33 retail outlets that made sales of €422,523 were never included in inspections lists.