FUNDING ISSUES:TAXPAYERS GIVE more than €1.5 billion in funding to voluntary groups to provide services for people with disabilities. However, there is concern over the lack of transparency and accountability in how this money is spent by not-for-profit organisations.
The Comptroller and Auditor General examined this area a few years ago, and found a widespread failure among voluntary bodies to provide audited financial statements or disclose levels of executive pay. An audit of 42 non-profit organisations between November 2004 and January 2005 found that 12 groups did not file accounts for 2003.
These groups received approximately €100 million that year.
It also noted several cases in which financial statements carried qualified audit opinions due to uncertainty over issues, such as the verification of fund-raising amounts.
In the case of St John of God – one of the major service providers – it found that no financial statements had been received between 2000 and 2004. During this time the organisation continued to receive funding worth €288 million.
The HSE says it had addressed the issues raised by the comptroller’s report and says service level agreements more detailed than before.
In addition, Minister of State with responsibility for disability John Moloney has established a value-for-money group to examine how money is being spent.
In the meantime, The Irish Times has established that executive pay across most voluntary organisations has been rising, even at a time when they are receiving less State funding.
Records released under the Freedom of Information Act show that nine of the 13 largest voluntary organisations paid their chief executives increased salaries between 2008 and 2009.
St Michael’s House in Dublin received about €75 million in State funding up to October 31st, 2009, compared to €90 million in 2008. During the same period, the chief executive’s total salary package increased from €198,186 to €201,024.
In Cork, Enable Ireland received €33.5 million in 2009, down from €39 million the year before. The salary of the chief executive increased from €165,673 in 2008 to €169,093 in 2009.
Some organisations have pointed out that despite pay increases, the pension levy and higher tax rates meant chief executives’ pay went down.
