Cork GAA audit report: No misappropriation of funds but 'serious financial control weaknesses' raised

The Cork GAA audit and risk committee has said the discovery of €176,000 in two Cork GAA bank accounts highlighted “a number of failures of governance” and “some serious financial control weaknesses”.

The committee’s final report into the existence of the long-standing accounts and the manner in which they came to light concluded “that there was no misappropriation of any monies”, but was critical of governance inadequacies that require “immediate remediation”.

The two accounts under the spotlight are used for two distinct purposes - the Bord na nÓg Helmet and Hurley Scheme and the Cork Senior Football and Hurling holiday funds.

The report of the audit and risk committee, circulated to club delegates in advance of Tuesday’s county board meeting, said there were failures relating to “exercising control”, “transparency and accountability”, and “operating effectively”.

One key finding of the committee was that the information handover from the retiring officers to the incoming officers was “insufficient and ineffective”. The report added that “there appears to be a complete misunderstanding between the previous and incoming officers as to why this handover was so ineffective”.

“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 committee observed.

“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.” 

The initial reporting of the matter by county board treasurer Diarmuid Gowen to Cork GAA CEO Kevin O’Donovan and chairperson Marc Sheehan created “significant turbulence”, the report stated. The committee also noted that the accounts discovery being made public prior to being properly investigated “damaged the reputation of Cork GAA”.

Other key findings by the committee included: county board treasurer Diarmuid Gowen knew of the existence of the Helmet and Hurley Scheme bank account but was “unsuccessful” in ascertaining the details of this account and in taking control of same from previous county board treasurer Pearse Murphy; the Holiday Fund bank accounts were not part of any handover discussion; the monies received for the Helmet and Hurley Scheme should be ring fenced for the purpose stipulated i.e. helmets and hurleys for juveniles.

The report recommended that Rebel Óg be responsible for the management of the Helmet and Hurley Scheme and that the Scheme be administered by the treasurer of Rebel Óg, subject to appropriate annual reporting to the Cork county board treasurer.

A further recommendation was 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.

With regard to achieving improvements in governance, the report said all activities of Cork County Board should operate out of one office at Páirc Uí Chaoimh; reporting lines must be clear and unambiguous; and only officers of Cork County Board ought to have authority over bank accounts and the affairs of Cork County Board.

“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.” 

Cork chairman Marc Sheehan said the executive is fully committed to dealing with the committee’s recommendations in a timely fashion and remediating the “structural deficiencies” that have been highlighted.