A new report has catalogued a series of issues related to State-funded NGO the Peter McVerry Trust. The report from the Approved Housing Bodies Regulatory Authority (AHBRA) criticised the charity for “significant breaches of regulatory standards” with the head of the AHBRA saying the document highlighted “serious failings in governance, financial management, and conflict of interest” handling within the McVerry Trust.
The AHBRA is an independent authority, tasked with providing the regulation of Approved Housing Bodies (AHBs) for the purposes of protecting housing assets provided or managed by such bodies.
AHBRA CEO Fergal O’Leary said that the Trust “acknowledged the seriousness of the findings and has committed to undertaking a comprehensive programme of corrective actions to address the deficiencies.”
It follows a string of concerns about the financial management of the charity, with the resort finding there was no adequate register of assets maintained by the organisation.
In October 2023, the McVerry Trust, whose purpose is to look after those who are homeless, formally requested that the state provide them with a bailout. As reported by Gript, they wrote to the Department of Housing asking for assistance in addressing the serious level of PAYE tax debt and other sums owed to creditors.
Gript was one of the few outlets which had managed to access the Trust’s accounts for 2022 prior to their being taken down as the seriousness of the situation facing the company became apparent.
Gript’s Dr Matt Tracey has extensively covered the controversy over the McVerry Trust, and last year reported that the housing regulator had ordered a statutory investigation of the well-known homeless charity over finance concerns.
The accounts to the end of December 2022 were previously published and showed a surplus for the year of just under €4.5 million which was significantly up on the €1.86 million for 2021. Total income was also substantially up, by more than €8 million from 2021 to €61.74 million in 2022.
In 2021, as reported by Dr Tracey, the charity employed a total of 504 people, including 492 who were full time employees. Of their total income of more than €53 million in 2021, total staff and administrative costs came to more than €50.5 million.
As reported last year: “The bulk of the McVerry Trust income comes from the state, 72% in 2022, and as part of that the McVerry Trust drew down €821,890 from the Department of Children, Equality, Disability, Integration and Youth for the “provision of accommodation and services,” alongside a once off payment for “works” at the Augusta Lodge.”
In September, the charity found itself facing fresh criticism when it was revealed it wanted full State funding despite a €15 million bailout. A September report by the Comptroller & Auditor General found that an interim chief of the charity was paid at a rate of €1,000 per day from the budget of the Department of Housing before a new permanent chief executive was appointed last April.
Between 2019 and 2022 the housing NGO received some €140 million from State sources.
The new report out today found “no one” within the organisation acknowledged responsibility for maintaining a register. Further, it said that the recording of land in the register was “not accurate” and “could not be relied upon to provide a fully comprehensive record of the fixed assets” while the charity’s board “did not have appropriate oversight” of procurement and expenditure.
It said financial controls which were supposed to be in place for spending of over €50,000 had not been implemented.
In addition, inspectors said there existed potential conflicts in respect of some suppliers but these conflicts “were not declared by those potentially conflicted” to the board of the organisation, while the use of the sinking fund was not appropriate and restrictions imposed by the board were “not adhered to.”
Responding to a request for comment, the Board of the Peter McVerry Trust told RTE that it was regretful about what had transpired, as it acknowledged its overall responsibility.
The Board said that it expressed “particular regret” that matters were kept from the Board “by persons who should have acted otherwise.” It also said operations of the Trust “are very different today” as a result of “intensive work” undertaken since mid-2023.
The Peter McVerry Trust’s funding model prior to this year was based on 70 per cent State income and 30 per cent from fundraising, however according to the Controller & Auditor General, the charity’s current budget request is “based on 100 per cent cost recovery from the State”.
The Peter McVerry Trust is still in talks with State funders in relation to its 2024 budget.