Cork GAA audit report: The 14 key findings on discovery of €176,000

Read an extract from the Cork GAA Audit & Risk Committee final report on the discovery of bank accounts containing €176,000

Páirc Uí Chaoimh. File photo: INPHO/James Crombie

Context

This is the Final Report from the Audit & Risk Committee (“A&R Committee”) on a specific issue relating to the existence and operation of a number of Bank Accounts, pertaining to both the Bord na nÓg Helmet and Hurley Scheme and the Senior Football and Hurling Holiday Funds.

The A&R Committee previously issued an interim report on 28th May 2021 which addressed its progress at that point and commented upon the efficacy of the operation of these Bank Accounts and addressed the appropriate use of these funds and the proper administration of the accounts to date.

This Final Report expands upon the detail of the Interim Report, as further information became available, and addresses the financial control and governance issues, which this matter highlights.

Arising from the A&R Committee’s work, recommendations are made, which the A&R Committee believes will strengthen and reinforce the financial controls and governance as applied.

The A&R committee, having reviewed all the information available, conclude that there was no misappropriation of any monies relating to the Bank Accounts, but there were a number of failures of governance.

By reference to the GAA governance guidelines/framework we believe that there have been failures relating to: Exercising Control; Transparency and Accountability and Operating Effectively. Greater financial control should have been exercised and it is important that those with specific positions of responsibility and control ensure that they have all of the information required to carry out their responsibilities.

The A&R Committee’s discussions with relevant personnel leads to the conclusion that a lack of clarity and the absence of a formal handover procedure, contributed greatly to the confusion and misunderstandings which existed at many levels. This confusion was enhanced by virtue of there being two offices and, in the A&R Committee’s view, a lack of reporting clarity amongst the staff.

Cork GAA Audit & Risk Committee The initial reporting of the matter by the Treasurer to the CEO and Chairperson, created significant turbulence. The matter being made public prior to being properly investigated damaged the reputation of Cork GAA.

There are a small number of items remaining, which the A&R Committee believes need to be followed up until satisfactorily resolved, but it does not believe that the resolution of these issues ought to hold up the issuing of this Report.

Key Outcomes (Findings and Recommendations) by the A&R Committee

Having reviewed the Bank Statements relevant to the Bank Accounts, to the fullest extent possible, and having spoken with relevant personnel, the A&R Committee can summarise the outcomes of the Review as follows:

i) The information handover from the retiring officers to the incoming officers was insufficient and ineffective.

ii) The current Treasurer knew of the existence of the Helmet and Hurley Scheme Bank Current Account but was unsuccessful in ascertaining the details of this account and in taking control of the same from the previous Treasurer.

iii) There appears to be a complete misunderstanding, between the previous and incoming officers, as to why this handover was so ineffective.

iv) The Holiday Fund Bank Accounts, perhaps because of the lack of activity since 2015, were not part of any handover discussion.

v) The monies received for the Helmet and Hurley Scheme should be ring fenced for the purpose stipulated i.e. Helmets and Hurleys for Juveniles.

vi) As noted in our Interim report, the balance on the Helmet and Hurley Scheme Bank Account is c. €89,000, but it should be noted that the Subsidy payments for 2017, 2018 and 2019 have yet to be transferred into the Bord na nÓg Account. The total amount available under this Scheme is c. €197,000.

vii) The substantial balance arises, in our opinion, due to an overly prudent policy with regard to the subsidy granted and an insufficient promotion of the Hurley scheme.

viii) We recommend that the scheme be administered by the Treasurer of Rebel Óg (utilising the Administration Staff of Cork County Board), subject to appropriate annual reporting to the Treasurer of Cork County Board.

ix) The Financial Statements of Cork County Board contain an accrual for two years of Subsidy of €72,000 in total (€36,000 x 2 years), after cross charging €36,000 relating to other Rebel Óg expenses. We believe that this accrual needs to be restored to €108,000 (€36,000 x 3 years) and any cross charging needs to be agreed between the Treasurers of Cork County Board and Rebel Óg.

x) We recommend that Rebel Óg be responsible for the management of the Scheme, utilising the funds available for the purposes specified and that all clubs be given due notice of the Schemes available and how they may apply.

xi) We recommend that the Holiday Fund Bank Accounts be taken under the control of Cork County Board and that these balances be included and merged with the provisions already existing in the Cork County Board Accounts for future Holiday requirements.

xii) As noted earlier in our report we have some very specific governance recommendations, with the more pertinent ones being:

● All activities of Cork County Board should operate out of one office at Pairc Ui Chaoimh.

● Reporting lines must be clear and unambiguous.

● Only officers of Cork County Board ought to have authority over Bank Accounts and the affairs of Cork County Board.

xiii) In earlier reports to the Executive, we recommended the appointment of a Finance Manager and we are glad to see that this role has been filled. This appointment gives Cork County Board an opportunity to reengineer its finance function in line with current best practice and the needs of Cork County Board, in today's economic and regulatory environment.

xiv) In the course of our review we encountered a Cork County Board company named Cork County G.A.A Board SES Co. and as stated in our report, this company administers a Social Employment Scheme. The employees are mainly, but not exclusively working on GAA projects, and to the best of the A&R Committee’s knowledge the Company does a very good job in administering the Scheme. However, Cork County Board need to take responsibility for the control and governance of this company, to avoid any future misunderstandings, similar to the one presently being dealt with.

In conclusion, we would reiterate the observations in our Interim Report, which referred to a list of weaknesses in control and governance that require immediate remediation but also highlighted the fact that all funds were properly applied, controlled and used for the purposes for which they were designated.

The people involved were motivated by doing what was best, in their opinion, for Cork GAA and were generous in giving of their time to that end.

This episode has pointed to some serious financial control weaknesses, but these matters can be rectified and corrected immediately with the appropriate level of application and the oversight by the new Finance Manager. However, there are serious Governance issues including structures, which must be addressed, and this requires the urgent attention of the Executive to instil best practice into the activities of Cork GAA, ensuring its successful future.