Peter McVerry Trust to be investigated amid 'serious cashflow problem'

A homeless tent on Henry Street. Picture: Leah Farrell/RollingNews.ie

The founder of the Peter McVerry Trust has said his charity is being investigated because it is suffering from a "serious cashflow problem".

Fr McVerry said the issue happened because his charity had tried to help too many people.

"We expanded too fast in our desire to accommodate as many people as possible," he said.

"We are working with our funders to ensure continuity of care to very vulnerable people who avail of and are reliant on our services."

He also said that the charity is solvent because its assets exceed its liabilities and said, "We hope to resolve our cashflow situation".

His comments come as the Approved Housing Bodies Regulatory Authority has launched an investigation into the trust.

It has been launched following the discovery of “concerns” related to “financial and governance issues” at the charity.

In a statement on its website, the AHBRA said it has appointed inspectors pursuant to Section 46 of the Housing (Regulation of Approved Housing Bodies) Act 2019, to conduct “a statutory investigation” of the trust.

It stated: “The AHBRA has determined a statutory investigation is required having identified concerns in relation to the organisation.

“The AHBRA had been first notified of a number of financial and governance issues by PMVT through the notifiable events process in July 2023.”

They said it was important to note that “the commencement of a statutory investigation is not in itself a finding of any wrongdoing”.

The inspectors it has appointed have been asked to prepare and submit to AHBRA a report on their investigation and findings.

The AHBRA added: “The AHBRA will not be making any further comment while the investigation is ongoing.”

Mr McVerry is not involved in the day-to-day operations of the trust, but remains the secretary of its board.

Francis Doherty, who had been its director of housing and communications, took over as chief executive of the organisation in June of this year.

According to the charity’s last annual report, for 2021, the trust employed 506 core staff and has more than 600 properties.

Added to that, it provides over 2,000 residential placements per night.

Income in 2021 was €53.2m, down from €56.4m in the previous year.

Despite the drop, operational expenditure was €51.3m, up from €43.9m in 2020.

The 2021 annual report noted that Fr McVerry receives no salary, expenses or allowances, and “nor ever has”.

The trust is also subject to periodic and random audits by external organisations such as local authorities and other state agencies from which the charity receives funding.

As a result, Peter McVerry Trust is required to make quarterly and annual returns for funding received.

According to the AHBRA website, a notifiable event is "a material, significant, or exceptional issue, event, or change within an organisation".

The body is interested in such events which may put a number of things "at risk", including the interests or safety of tenants and other service users and the "financial health" of an approved housing body (AHB).

The AHBRA said: "When deciding whether a matter is a notifiable event, an AHB should consider the risk to its organisation and the potential impact."

The Department of Housing was notified earlier this year of acute “cash flow pressures” at the charity.

In a statement last month, Mr Doherty said the charity has “obligations to regulators and statutory funders” to disclose challenges as they arise and the organisation has done so “proactively and transparently”.

The Department of Housing, which does not fund any homeless service directly, and Local Government and Heritage and the Dublin Region Homeless Executive are the charity’s largest sources of funding.