The Department of Children and Youth Affairs has confirmed that a Co Galway childcare centre has had to pay back most of the funding it received from Pobal.
An audit found the number of children registered with the centre greatly exceeded the actual number using its services.
Naíolann na nOileán in Leitir Móir, Co Galway applied for and was approved for funding under the Community Childcare Subvention in 2010.
However, following visits and audits by Pobal, it was found that the sum applied for was seven times greater than what the centre was entitled to based on child attendance numbers.
The Pobal audit found anomalies in the attendance patterns and in the numbers of children attending the service.
Naíolann na nOileán is operated by Muintearas, a subsidiary of Údaras na Gaeltachta.