A Health Service Executive (HSE) administrator appointed to the Central Remedial Clinic (CRC) has concluded that the charity arm 'Friends and Supporters of the CRC' existed solely to hide funding from the HSE.
A report published by the HSE today says the overall standard of record-keeping at the Clinic was good, and that "normal financial transactions" were properly supported or vouched, but that there were some exceptions.
But overall, the administrator did not find it necessary to refer any matter to any third party or authority.
It says the relocation of some files was concluded to be part of normal organisation and no sinister motive was behind this.
"In all the circumstances, it would appear that there is no basis for the Office of the Director of Corporate Enforcement (ODCE) being involved in the affairs of the CRC or its related undertaking", it said.
In relation to the 'Friends and Supporters of the CRC', the HSE says it was not aware of the funds being accumulated and "technically, the CRC may not have been required to declare funds held by another company".
But it adds that the only rationale for the establishment of it was to "maximise the HSE funding of CRC services - the inference drawn being that if the HSE had been aware of the level of funds available, it would have reduced its annual allocation to the CRC".
It believes the current functions of the group should be transferred to the CRC Board as soon as possible and, ultimately, the company should be wound up.
"It will, now, be a matter for the CRC and (Friends and Supporters of the CRC) Boards to ensure that funds raised for the benefit of the CRC by The Care Trust are channelled directly to the CRC and for the funds that have been accumulated to be properly and efficiently invested in CRC services and infrastructure" it says.
CEO pay packet criticised
The report also criticised the board of the organisation for rushing into a pay-off deal for retiring Chief Executive, Paul Kiely.
It says the retirement package of Mr. Kiely was over-stated and the administrator says monies should be repaid or recovered.
The administrator John Creegan says the board did not take the time to calculate the golden handshake deal, especially given as Haddington Road pay-cuts were imminent.
And he criticises the board for being aware of austerity, a hardening of public pay policy, and that the level of the CEOs package was the most serious governance issue and they did not inform the HSE of their plans.
Mr. Cregan says the Board of Governors of the CRC then "added fuel to the fire" by offering the position of CEO to a former board member, again without the approval of the CRC.
In a statement, the CRC says that while there are a number of complex legacy issues in terms of remuneration levels, corporate structures and governance, it "welcomes the confirmation...that the CRC has met its commitments to the HSE and its clients and that there are sound systems of financial control in place".
"The new Board and the new CEO are fully committed to addressing the legacy issues contained in this report and are determined to regain the trust of the families and adults who depend on its services, its staff and the wider charity and not for profit community" it adds.
The Board is due to meet immediately to address the outstanding issues in the report.
