Peter McVerry Trust seeks another 'full audit' of its books as it admits it 'overextended itself'

The Peter McVerry Trust owns, leases or manages 1,616 housing units across the country. File picture

The Peter McVerry Trust is seeking new auditors after acknowledging “with hindsight” it “overextended itself”, as regulatory probes into its affairs continue.

For the second time this year, the charity has gone out to tender for a “full audit” of its books and accounting practices.

It comes against the backdrop of financial problems at the housing charity, which runs a range of housing services as it owns, leases or manages 1,616 housing units across the country.

“The scope of this work expanded enormously in recent years and with the benefit of hindsight it is now accepted that the organisation overextended itself and underestimated the financial commitment required,” it said.

“As a result, it encountered cashflow difficulties and required exceptional State support funding from the Department of Housing in late 2023.

“In response to its difficulties, a range of operational, governance and rationalisation measures are under discussion with the Department of Housing. In the context of financial sustainability, all service provision going forward can only be on the basis of 100% cost recovery.” 

Last year, the Government agreed to give a bailout worth €15m to the charity on the condition of reform in the organisation.

It came after the charity informed the Department of Housing it was facing serious cashflow problems.

The Charities Regulator and the Approved Housing Bodies Regulatory Authority both appointed inspectors to carry out separate investigations into financial and governance matters at the trust.

It is understood a draft of the report from the former has already been completed and circulated to relevant parties.

In its request for new auditors, the charity said the audit should provide the organisation with “assurance that [its] financial management, processes and controls are robust”.

“The audit process should assess compliance with established policies, plans and procedures and in their absence, recommend such policies, plans, procedures as may be required,” it said.

It also asked that the auditors provide the board of the charity with an assessment of the organisation “from a going concern and sustainability point of view”.

The position of internal auditor at the charity is also currently vacant and is to be advertised imminently.

The Peter McVerry Trust appointed a new chief executive earlier this year, as Niall Mulligan took the reins after the previous CEO resigned in October after just over four months in the position.

Francis Doherty tendered his resignation to the board of directors against the backdrop of a statutory investigation into financial and governance issues at the organisation.

Earlier this year, the charity was warned that it may be compelled to appear before the Oireachtas housing committee after it previously declined an invite. It said it would be inappropriate to appear as two investigations were under way.