Killarney to table ‘action plan’ on controversial Deloitte report

Killarney Golf and Fishing Club has scheduled its AGM for November 5 amid ongoing rancour and discord over the actions of the club’s management council.

An internal Deloitte report from April of this year highlights operational flaws, deviations from the club constitution, and lack of appropriate communication between the seven-person council and the club’s general manager, Cormac Flannery.

Flannery has overseen an improvement in the club’s financial position since coming in as GM towards the end of 2013, with consecutive years of profit up to last year.

In a recent communique to members, he says profits for the 11 months up to last month show a 2018 pre-depreciation profit of €140,000.

The Deloitte report — commissioned by the management council after members sought it last year— highlights instances where the general manager “was not invited to a number of management council meetings between November 2017 and January 2018, a period of time during which the council met relatively frequently”.

It does add that Flannery was invited to council meetings held in February and March 2018.

Article 14.3 of the constitution provides for the attendance of the general manager at management council meetings,” the report notes.

Dissatisfied members have sought a special general meeting to discuss the findings of the Deloitte report but the AGM will instead be presented with a management council action plan on the document, which will be provided to members in advance of the AGM.

“There is very little unity of purpose at the golf club at the moment,” a long-standing club member stated yesterday.

Popular golf professional Dave Keating left Killarney GC yesterday after more than a decade at the club, declining to comment to the Irish Examiner on the reasons for his departure.

However, in correspondence to club members, he provides a detailed breakdown of his financial dealings with Killarney and admits he is “desperately disappointed to leave.”

David Keating, who reluctantly left Killarney Golf Club yesterday, with general manager Cormac Flannery. Picture: Niall O’Shea

The Deloitte report acknowledges that the operations at and management of Killarney Golf Club has improved “significantly” since the restructure in 2013, but recommends further improvement in key areas of the club’s management including:

• Where important decisions, with material legal and/or commercial implications, have to be made, procedures should be put in place to allow each council member adequate time to consider the issues and relevant implications of a decision. They should also be provided with the full pack of information required (including legal advice where necessary) to make an informed decision
• The management council must ensure that it is strategically and financially focused and further should empower the general manager to carry out his role in the operational aspect of the club
• (The) general manager should be invited to all future management council meetings and there should be a forum for the general manager to express concerns and have these concerns assessed where these arise
• Greater gender balance on the management council. “It is recommended that as part of the constitution review, new articles are drafted for consideration by the members in line with Article 19.1 of the constitution) which include provisions to support achievement of a best practice position for gender balance on the management council”
• The current draft strategic plan should be bolstered in terms of strategies to drive income and financial performance of the club and once finalised it is used to form the basis for an implementation plan

The Deloitte report points out instances where the general manager has communicated with the management council by email on topics of importance and has not been responded to. Deloitte says the GM (Flannery) also set out concerns including the lack of interaction/input to decision making by the management council and changes/decisions being made across the Club without his involvement or knowledge.

The reports says: “The general manager has indicated that he received no response or engagement from the management council on the concerns raised within his email. The management council has had verbal engagement with the general manager on the issues raised.”

Flannery is currently representing the club at a trade show for golf tour operators in Slovenia, but in recent correspondence with members, he highlighted positive trends for 2019 bookings, which are 50% ahead of this time last year.

He bemoaned the loss of Keating’s “commitment, professionalism, and expertise which he displayed every single day of his 11-year tenure”.

Flannery added: “David promoted Killarney tirelessly at home and abroad and we’ve had thousands of golfers play at the club over the years who may otherwise never have done so. His contribution operationally towards looking after our membership and visiting golfers since 2008 has been immense, and his financial contribution to the club since becoming an independent contractor in 2013 has been a huge part of our financial success since becoming a members’ club.”

In final correspondence to members, Keating sets out “for clarification purposes” his company’s (David Keating Golf) financial contribution to Killarney Golf & Fishing Club since May 2013.

From 2008-2013 I was an employee of the club, but due to the club’s financial position in 2012 my circumstances changed. After detailed negotiations with Killarney Golf Club and Deloitte, it was decided to outsource a number of services to David Keating Golf and a contract was agreed between all parties and approved by Fáilte Ireland. The purpose of this contract was twofold; to reduce the club’s annual cost base by outsourcing the supply of services, and to also provide a solid income stream for the club into the future.

“The financial gain to the club has been as follows: 1. Annual cost reduction to the club from May 1st, 2013 of €245k per annum; 2. Payments to the club from May 1st 2013 to October 1st 2018 amounting to €494,419.08 excl. VAT; 3. Retainer payments from Killarney Golf Club to David Keating Golf from May 1st 2013 to October 1st last amounting to €72,000 excl. VAT. One final payment will be made on October 18th for €12,940 excl. VAT.”

Keating summarises as follows: Total cost reduction figure over a 5½-year period of €1.3475m — Nett financial gain from David Keating Golf annual payments to KGC of €435,359.08. The 2018 Killarney Management Council “were not happy with my ongoing contract, or format of same,” Keating states.

Three positions on the management council will become available at next month’s AGM. Members can submit motions for same up to next Monday, October 22.