Basic spending checks were missing from Belfast's failed £1.3 million sterling Capital of Culture bid, a scathing new report revealed today.
Proper receipts were produced for less than a third of credit card expenses, the Northern Ireland Audit Office investigation found.
While the inquiry found there was no misuse of public funds, it criticised Imagine Belfast, the company running the project for using inexperienced staff, general confusion and alarming delays. By the time this was rectified 75% of the total cash used had been used.
"Any organisation spending money on the scale of Imagine Belfast would be expected to have in place basic controls such as documented financial procedures, comprehensive tendering procedures, segregation of duties, hospitality guidelines, proper supporting documentation for expenditure and proper authorisation procedures," the report said.
"In our view, the board of the company and the sponsor organisations should have been alert from the outset to the need for sound internal control systems."
Despite a high-profile campaign, Belfast's hopes of landing the coveted European Capital of Culture 2008 title were dashed when the city failed to make the shortlist from which Liverpool emerged victorious.
It was a huge blow for Belfast City Council, which first suggested making a bid, and the Department of Culture, Arts and Leisure, which provided the bulk (stg£800,000) of funding.
However, Auditor General Mr John Dowdall also expressed reservations about whether a realistic period of time had been allowed for bid. An external evaluation found the company which ran Liverpool's bid was fully set up and operating 22 months before the deadline, while Imagine Belfast was only functioning completely 10 months in advance.
Department of Culture consultants also concluded administration had been placed in the hands of inexperienced staff, unfamiliar with public sector accountability. "It appears that some of the difficulties in Imagine Belfast were caused by insufficient staff with the appropriate skills, which added to the challenges facing the company," the Audit Office report said.
PA