Barnardos chief executive Fergus Finlay and some senior management have been paid salaries in excess of health sector pay rates, a HSE internal audit of the children’s charity has found.
The audit, which covered the period 2012 to April 2015, also said information provided to the charity’s board in relation to Mr Finlay’s pay, and donations made by him, were “unclear”.
The audit notes Mr Finlay’s gross salary in 2014 was €114,651 (based on a salary of €111,711 for six months and €117,511 for six months). His pay scale on December 31st, 2014, was €117,511.
On June 1st, 2012, Mr Finlay took a temporary voluntary reduction of 5 per cent in his salary when Barnardos introduced redundancies for staff. His salary was reduced from €117,591 to €111,711 from June 1st, 2012, to June 30th, 2014.
In 2013, public sector pay scales were reduced under the Haddington Road agreement. From July 2013, the HSE pay scale was reduced and ranged from €90,514 to a maximum of €110,183. Mr Finlay’s salary remained at €111,711, which amounted to €1,528 more than the maximum on the HSE scale.
From July 2014, Mr Finlay’s 2012 salary reduction was reversed and from that date his salary of €117,591 was reinstated, thereby now €7,408 greater than the maximum of €110,183 on the HSE scale.
Mr Finlay said he contributed to his salary with money earned through public speaking, broadcasting fees, and other events, although the audit was critical of these contributions being presented to the board and the media as “CEO donations”.
Contributions
The audit asked Barnardos for “actual contributions” made by Mr Finlay. The charity said the figure for the period 2011-2014 was €81,883.
The audit recommended the charity ensure all information is accurate when making statements in relation to Mr Finlay’s donations and “especially when presenting information to the board or the media”.
Mr Finlay said the audit’s recommendations in relation to his salary have now been implemented in full.
Separately, the charity invoiced and received payment for articles written by Mr Finlay for the Irish Examiner. This money was included in Mr Finlay's salary and taxed accordingly. Mr Finlay paid a fee of €200 per month to Barnardos for the service, while the charity classified the fee as a "CEO donation".
The audit recommended the charity cease this practice, which was accepted by Barnardos. “It should be noted that the only reference to this fee being called a donation was for ease of administration on the CEO’s private payslip,” said the charity.
In terms of senior executives, the audit compared the maximum point on the pay scales of the HSE and Barnardos, as of April 2015. This analysis “indicated the charity was paying in excess of HSE pay rates for its top managers”.
The maximum for a director’s salary on the Barnardos scale was €100,407, as opposed to the HSE scale of €79,481. The maximum for an assistant director’s salary on the Barnardos scale was €85,296 as opposed to the HSE scale of €74,551.
The HSE audit recommended management ensure senior management remuneration has “due regard for Government pay policy”. Barnardos said it was “reviewing all pay-scales on a regular basis”.
