Audit of Console finds ‘serious governance concerns’

The HSE audit into the suicide charity Console found there were “serious governance concerns”, revealing widespread failings in proper standards in management.

The audit notes there were inadequate governance structures during the period examined. “Console was controlled and dominated by Paul Kelly. He was responsible for the full running of the charity,” it said.

It found he continued to operate as a “shadow director” even after he resigned as a director in 2013.

The report states that auditors encountered “significant difficulties obtaining information and explanations, and explanations, when received, were inconsistent and vague”.

For example, the report found that Mr Kelly and his wife Patricia were/are directors of at least 12 companies.

“Inconsistencies in names, signatures, and dates of birth were identified by the audit on statutory documents with the [Companies Registration Office] in relation to these 12 companies,” it states.

“Information contained in some statutory declarations filed with the [Companies Registration Office] was incorrect. For example the number of directorships held by the CEO’s wife.”

Ms Kelly also signed using her maiden name of Dowling when filing details of her directorships of some of the companies.

According to the draft report, Mr Kelly was and is a director, company secretary, chair, and cheque signatory of Console.

However, throughout the audit Mr Kelly described his wife’s role as a volunteer and not employed by the organisation, when in fact she was a key officer of the company.

Other financial issues raised by the report include whether the issue of expense claims not being signed had been approved.

“Controls around receipting donations and fundraising were lax and non- existent. Console did not maintain a receipts book, there was no record listing all amounts received, and money received was not lodged intact into Console’s bank account,” states the report stated.

In relation to Console’s helplines, between 2012 and 2014 Console reduced the number of helplines from six to two. The report states that Console informed the audit team that the cost of running its two helplines in 2014 was €346,560, of which the HSE provided €294,000.

During the audit no documentation was provided to the audit team to support this costing.

In May 2012 Mr Kelly and and his wife established a separate company in England to operate Console UK.

Significant issues were identified in relation to Console Ireland and Console UK.

Console Ireland incurred expenditure in excess of €140,000 in relation to Console UK between 2012 and 2014. This was not disclosed in either Console Ireland’s audited financial statements or in Console UK’s accounts.

In essence Irish funders and donors are funding a UK charity.

“As director of services [at Console UK], Tim Kelly [their son] is paid a salary of stg£31,300. This is paid by Console Ireland directly to him at a rate of £600 per week and it is not taxed,” states the report.

It found that between 2012 and 2014, Paul Kelly received “consultancy payments” totalling €218,586, Ms Kelly received salary payments of €67,149, while Tim Kelly received £93,924.