A USI probe sparked by E&L revelations of expenses claimed by the union's president, Colman Byrne, has concluded the national student union's financial management structures "do not conform with best practice" and are "in urgent need of remedy".

The report also describes as "an error of judgment" an arrangement whereby USI paid part of the rent for Byrne's apartment so that one of the rooms could be used by regional convenors when visiting Dublin.

The report's findings have deepened the crisis of confidence in USI's leadership, particularly in colleges where disaffiliation has been a matter of hot debate. The presentation of the interim report to the union's national council led UCD students' union president, Ian Walsh, to resign from USI's finance committee last week; and while the council voted confidence in Colman Byrne, the union's education officer abstained in that vote. Walsh resigned from the finance committee in protest at that vote of confidence in Colman Byrne, which was taken on the basis of the interim report of the investigation into the expense claims. Walsh says the finance committee's investigation is now fatally compromised and has called for a new independent investigation.

Malcolm Byrne, education officer of USI, was one of seven members of the national council who abstained on the confidence vote in Colman Byrne; 16 members voted in Byrne's favour. Asked by E&L why he felt unable to vote confidence in his president, Malcolm Byrne explained: "We were presented with an interim report which made clear that further issues had still to be considered. I didn't feel able to make a decision on the expense claims without all the facts before me. "I believe the organisation and the president have nothing to fear from full financial accountability." The interim report admits that the finance committee "has not been functioning as it should" in monitoring expenses paid to union officers, but exonerates Colman Byrne of the charge of making any unjustified claim.

The report said the committee had heard a detailed explanation from Byrne of his claims for expenses "backed up by extensive documentation [and] receipts". However, it recommends "greater precision" in making claims in the future and promises proposals to "bring current arrangements to the highest level of best practice and transparency".

While the committee found that the decision to rent a room in Byrne's apartment was an error of judgment, it is described as being "motivated by a desire to reduce the costs for officers staying in Dublin". However, Colman Byrne faces another interrogation from the finance committee on Thursday, when he will be asked to present statements for the "USI credit card" of which he is the custodian.

College news is compiled by Roddy O'Sullivan