Sport Ireland relied on “clean, unqualified” audits of the Football Association of Ireland (FAI) when approving grants for the association, an Oireachtas committee will hear on Wednesday.
John Treacy, Sport Ireland’s chief executive, will tell TDs and Senators it is “now clear” that the financial statements produced by the FAI to underpin those audits did not give a true and fair view of its financial health.
Mr Treacy will explain how his organisation, tasked with the development of sport in the State, approves grants and that it “places fundamental reliance” on an auditor’s signed opinion of the financial accounts of organisations it funds.
He will tell the committee that each year these audits gave a “clean, unqualified opinion” on the FAI’s financial position. Revised accounts published earlier this month showed that the FAI had liabilities of some €55 million at the end of last year.
Financial problems
“The audit opinion stated that the auditors had not identified any material misstatements, and that the financial statements, in the auditor’s opinion, gave a true and fair view of the financial position of the FAI,” Mr Treacy will say in his opening statement.
“What is now clear from the filing of the H4 notice [that proper accounts were not kept] in April, and the re-stated and revised FAI financial statements, is that this was not the case”.
Sport Ireland is to appear on Wednesday at the Oireachtas sport committee to discuss the FAI’s financial problems, but the association itself has turned down a second invitation in the space of a week to discuss the issues.
In a letter to the committee on Tuesday, the FAI said it was focused on the financial restructuring of the organisation and the appointment of an independent chairperson and three independent directors.
“At this moment in time, this requires the undivided attention of the board of the association and key management, it is for this reason that the association is regretfully not in a position to appear before the joint committee.”
Minister for Sport Shane Ross is also scheduled to attend the committee meeting.
Insulting
Sinn Féin TD Donnchadh Ó Laoghaire criticised the FAI in the Dáil on Tuesday, saying it is “insulting to the many fans of football and to communities throughout the country that the FAI will not come before the committee”.
Mr Treacy will also tell the committee that the FAI board and management is responsible for preparing financial statements which audits are based upon, and that under company law, its directors must not approve accounts unless they are satisfied they give a true and fair view of its financial position.
Deloitte Ireland, the FAI’s auditor, has previously said it takes its statutory obligations seriously and has acted accordingly, and that it has a robust audit process in line with those obligations.
