State training agency FÁS spent over €600,000 on a television advertisement that was never broadcast.
A report by Comptroller and Auditor General John Buckley highlights a 'substantial and prolonged breakdown in budgetary control' at the agency.
Read the C&AG report on FÁS
Tánaiste Mary Coughlan said she would accept the resignations of the FÁS board if they were offered to her.
Mr Buckley also found that spending exceeded budgets by up to 66%.
Between 2002 and 2008, FÁS spent just over €48m on advertising and promotional activities - the largest advertising spend in the non-commercial State sector.
However, Mr Buckley found that budgetary control was poor and expenditure in this area exceeded budgets by 38%.
As well as the €600,000 spent on the television advert, the agency spent a further €600,000 with no services at all delivered.
Criticising wasteful expenditure, Mr Buckley said that public procurement requirements were not always met.
Overall, the report finds that advertising and promotional activities lacked strategic direction and that much of the advertising was ineffective in increasing awareness of FÁS services.
Report findings are serious - O'Toole
FÁS Director General Paul O'Toole has said that the findings of the report are a very serious issue.
Mr O'Toole said the organisation was determined to get to the bottom of any irregularities and had carried out a root and branch review of its procedures.
Asked about Opposition calls for heads to roll over the waste of money, he said that was a matter for the Tánaiste, the board and the Government.
He said the board was taking the matter very seriously and will meet again shortly to discuss the report in depth.
Mr O'Toole replaced Rody Molloy, who resigned last November due to a controversy over excessive expenses.
