Tag Archives: accounts


From top: FAI; Deloitte; Social Democrats TD Catherine Murphy; Taoiseach Leo Varadkar

This afternoon.

During Leaders’ Questions.

Social Democrats TD Catherine Murphy raised Deloitte and how the company audited the debt-riddled Football Association of Ireland for 23 years.

Ms Murphy said the whole idea of having an external auditor is “that you have independent eyes on your accounts”.

But, she asked Taoiseach Leo Varadkar, “can that really be the case after 23 years of doing the same job for the same organisation?”

She went on to say:

“Financial information which was published recently during the unfolding of the FAI saga showed some startling adjustments to the FAI accounts for previous year.

In 2016, for example, an originally reported profit, it was adjusted from €2.344million to just €66,000.

In 2017, a profit in the accounts of €2.8million was adjusted to the point that it ended up being a loss of €2.9million in their accounts.

“This is in addition to the fact that the Revenue audit in 2019 revealed an underpayment of taxes and, together with interest and penalties, led to additional liability of €2.3million.

“It begs the question: Would the FAI have managed to secure the tax clearance certificate they needed to access Government grants?

“Taoiseach, you, yourself, were a Sports Minister, and you know that Government grants are paid on foot of a tax clearance certificate in addition to audited accounts but should we now be looking at a system whereby organisations are required to show evidence of audit rotation with in-built time limits for each audit period before a rotation is required. Good governance requires such a system.

“The UK, for example, have introduced a system of grading their audit firms which is also used to ensure rotation. They plan to publish the grades and past performance of the large audit companies and they’ve also introduced more powerful audit oversight.”

“…Taoiseach, my questions are: Do you accept that there is an issue with the same external audit firm, having an audit contract with the same organisation for 23 years or indeed anything near it?

The EU Statutory Audit Regulations in 2016 are supposed to introduce that but I don’t understand why that hasn’t happened and would you support making such a rotation system a pre-requisite for Government grant funding in addition to tax clearance certificates?

In response, Mr Varadkar said:

“Thanks deputy, I don’t want to cast aspersions on any particular audit firm, nor on the many thousands of very good people who work in that particular firm. But I do think the deputy asks good question and makes a very good point.

“And it is a principle of good corporate governance, that organisations shouldn’t be audited by the same people for ever and ever and ever again. So I think that’s something, certainly, that Sport Ireland, and other public bodies should examine as to whether it is made a condition of Government grant aid – that auditors are rotated after a period of time.

“And the same applies to board members as well. We often see a situation in a lot of organisations that we fund, whether its charities, whether its sporting bodies, whether its local task force and so on, where you have the same people on the board for 10, 20, you know, 25 years and that’s not good corporate governance either.

“You should have a rotation of board members too so I think they are definitely areas where I think Government can be more active in requiring turnovers of auditors and turnovers of board members as a condition of funding in the future.”

“In terms of the independent audit that’s been done, that was provided to Sport Ireland to the ministers, and is now being passed on to An Garda Síochána, and the Director of Corporate Enforcement is also being notified. The purpose of the audit was to get a clearer picture of the financial and governance issues within the FAI and to chart a course for the association to deal with the serious failings in order to restore confidence and public funding to football in Ireland.

“The board of Sport Ireland considered the reports on the 27th of November, welcomed that the audit found that State funding given to FAI was expended for the purposes that it was given and I think that’s an important point that we should reassure taxpayers and the public, that the taxpayers’ money that was given to FAI was used for the purpose intended…”

Later

Murphy: “…there was a European Union statutory audit regulation introduced in 2016 and it does include mandatory reporting, or mandatory rotation over quite a long period of time. But why doesn’t that not apply here, given that was introduced in 2016?

“And that would have maybe changed the auditors and had  a fresh look at a much earlier stage?”

Varadkar: “Deputy I honestly don’t know why that doesn’t apply in this case but I will check it out and provide you with a more detailed reply. It may well be, and I’m only guessing here, that that directive applies to bodies that are majority, or majorly publicly funded, whereas this is abode that received only a small proportion of its funding from the Government. But that’s just my guess, that’s often the way European directives work.

“They apply to largely funded or majority funded bodies, not ones that receive a proportion of their funding from the State but, like I said, I’ll check out on that. And I will ask the Minister for Public Expenditure to examine the wider issueif public money is going to a third party, through to a voluntary body,  to charity, to an NGO, surely it is appropriate that they are properly audited and they rotate their auditors and a bit like the FAI, appropriate that they should rotate their leadership as well, their chairman, their board members, and not have the same people in charge for 10, 20, 30 years which is just bad corporate governance practice, I think we’ll all agree.”

Watch back in full here (from 34.30)

Previously: Vanessa Foran: Let’s See That Again In Slow Motion

UPDATE:

Fiachra Ó Cionnaith tweetz:

The FAI has declined to attend a meeting of the Oireachtas sports committee tomorrow which was due to discuss the ongoing financial issues at the organisation.

Accountant and FAI VP Paul Cooke (left in pics 1 and 2) and FAI President Donal Conway at the Football Association of Ireland Annual accounts publication for 2018 this afternoon.

This afternoon.

The FAI published their reports and financial statements for 2017 and 2018.

They have revealed that the organisation has net current liabilities of more than €55million and that former CEO John Delaney agreed a settlement with the organisation of €462,000.

The reports and statements for 2017 and 2018 can be read here

Earlier:

FAI President Donal Conway

 

This morning/afternoon.

Football Association of Ireland tweetz:

Donal Conway is to step down as President of the Football Association of Ireland at an EGM on January 25, 2020…

Meanwhile…

Former CEO of FAI John Delaney

This afternoon.

VIa RTÉ:

The FAI has disclosed that the organisation has current net liabilities of more than €55m, following the release of their 2018 accounts.

The association has been in discussions with UEFA as well as their banking partners since the end of 2018 in an effort to provide financial stability within the organisation.

Presenting the 2018 accounts at the FAI headquarters, executive lead Paul Cooke explained how the association came to a severance settlement with former CEO John Delaney, which amounted to 462,000, including a pension payment.

FAI reveals liabilities of €55m (RTÉ)

Rollingnews

Earlier

At 1pm.

The Football Association of Ireland is expected to publish its accounts for 2018, as well as revised figures for 2017 and 2016.

Details of former CEO John Delaney’s severance package are also expected to be among the figures.

They figures were supposed to be published yesterday but on Wednesday the FAI announced that they’d be published today instead.

Also on Wednesday, mobile phone firm Three announced that it will be ending its partnership with the FAI when their current deal expires next July.

Further to this…

The Irish Independent reports:

Irish football is being told to prepare for a “bomb” when the FAI’s accounts are presented today, with debts of over €50million expected to be revealed.

The association’s former CEO, Bernard O’Byrne, has warned that possible new sponsors will stay away from a “toxic” FAI until more changes are made at board level.

FAI expected to reveal debt ‘bomb’ of more than €50m at today’s presentation of accounts (Aidan Fitzmaurice and John Fallon, Irish Independent)

Previously: Three Mobile

“John Delaney Could Run Anything”

For The Last Time, It Was A BRIDGING Loan

“We Were Told ‘There’s No Story Here'”

Rollingnews

UPDATE:

0710moneyclaimed-620x349 ozcashThe introduction of lower thresholds for what constitutes an ‘inactive account’ – from seven years to three years – has allowed the Australian Securities and Investments Commission to commandeer more than $85 million in unclaimed money from Australian bank accounts linked to account holders overseas in 2013.

Account holders (including many Irish names linked to Aus$670K in unclaimed funds) can recover their money by contacting the regulator and proving ownership.

Full list of accounts here.

Unclaimed accounts windfall (The Age)

(H/T: Mark Geary)