Dublin culture report ‘shocked and surprised’ Board members

Mr McLaughlin resigned from his position in Londonderry, to which he was seconded from his Dublin post, after just five months and was subsequently suspended without prejudice from his role as Chief Executive Officer (CEO) shortly after his return to Temple Bar Cultural Trust (TBCT).

TBCT has released information pertaining to the takeover of its duties by its sole shareholder Dublin City Council, with Board members described as being “shocked and surprised” at a damning report’s findings.

In a document entitled ‘New Cultural Strategy for Dublin’ it is laid out that the Board of TBCT “will be wound up and its functions transferred to Dublin City Council as recommended by the Latitude Report in August 2011. Cultural and property related responsibilities will be the subject of a transfer that is scheduled to be completed by year end.”

The original cultural remit of TBCT will be reviewed and developed as part of the Council’s new strategy.

Current Chairman of TBCT, Daithi O’Ceallaigh stated: “The findings of the Management Investigation Report into the internal audit of 2011 confirm a historical absence of governance and inadequate financial procedures that have eroded trust in the compamy and undermined its cultural remit. The report notes the renewal of the Board which commenced at the end of 2011 led to improvements in standards of corporate governance.”

TBCT recently ordered an independent investigation into the Dublin City Council audit of the organisation which showed glaring gaps in financial procedures. The recent investigation carried out by Turlough O’Connor had a remit to investigate whether sufficient grounds existed to warrant disciplinary procedures in respect of any individual/s relating to Dublin Council’s internal audit of 2011. Mr O’Connor was also asked to make recommendations to TBCT, of a non-dsciplinary nature, to assist in addressing concerns arising from the investigation. He was also asked to assess whether or not confidential information concerning TBCT was leaked to the media.

The conclusions drawn by Turlogh O’Connor’s investigation largely back the findings of Dublin Council’s internal audit into TBCT.

The findings state as key observations: “The depth and extent of the governance and finacial shortcomings identified by Dublin City Council in its audit report covering 2011 were ‘extensive and surprising’ and ‘were for the most part, basic and elementary.’

“The Financial Procedures Inititiave implemented in November 2011 brought the governance of the company in accordance with good practice. Criticism of the Board in the period to the end of 2011 including ‘up to late 2011/early 2012, the board failed in its duty of oversight and givernance by not inquiring into and satisfying itself that proper procedures were in place around financial transactions’.”

The conclusions reached by Mr O’Connor also state that the renewal of the board in 2011 resulted in diligent checks being put in place by the incoming chairman and interim CEO, but also says: “The findings of the Dublin City Council Internal Audit of 2011, conducted in 2012 and published in 2013 shocked and surprised all current Board members.”

The independent investigation also concluded that “certain procedures are adopted to protect the confidentiality of Board documents and these were adopted by the Board as appropriate.

It added: “The Board is entitled to consider initiating disciplinary action against certain employees of the trust.”

And, aspects of the internal audit carried out by Dublin City Council into TBCT were revisited. With regard to TBCT credit card usage in 2012, the TBCT statement says: “After the publication of Dublin City Council internal audit of 2011 in March this year and based on its findings in respect of credit card use, an audit of credit card usage in 2012 was commissioned by the Board and carried out by the Company’s external auditors. The findings of this audit mirror Dublin City Council’s audit of 2011 with a similar level of unauthorised and unvouched expenditure identified. These issues were addressed by the Financial Procedures Initiative of December 2012 that introduced proper standards of governance and financial procedures. This has resulted in an 85% reduction in credit card expenditure year to date in 2013, with all expenditure now fully authorised and vouched.”

The Board of TBCT has also now asked Dublin Council to carry out a separate internal audit of the flagship Rainscreen Project- a high level art installation in Meeting House Square in the Temple Bar district which had been flagged up within the council’s own recently published internal audit report.