The Charities Regulator has identified a number of failings in relation to the oversight of the conservation organisation, BirdWatch Ireland (BWI).
An inspector's report into the charity has been published today.
It lists a number of failings regarding the management of the organisation’s finances over a five-and-a-half-year period.
The investigation was triggered by allegations from a whistleblower in 2019, that a BirdWatch Ireland credit card was being used inappropriately.
It was alleged that the then-interim CEO of BWI, Declan O’Sullivan, was using the card to make cash withdrawals and to pay for repairs to his wife’s car.
Mr O’Sullivan, who is referred to in the report as 'CEO 2’, served as Interim CEO of BirdWatch Ireland from April 2016 until the end of March 2020.
The whistleblower also expressed concern about expenses claims and the use of donations to the charity.
These claims ultimately led to a wider investigation of the organisation’s finances and structures.
Birdwatch Ireland is the country’s biggest independent conservation organisation, with 27 branches nationwide.
The organisation receives most of its income from Government and EU grants, as well as some funding from subscriptions and donations.
The investigation by the Charities Regulator covers the period from January 2016 to August 2021.
It found that during this time, over half a million euro that was earmarked for specific projects was instead used as working capital, and not properly ring-fenced for its intended purpose.
Today’s report said the board of Birdwatch Ireland failed to ensure adequate financial controls were in place; that there was an "inappropriate structure" for financial governance; and no proper oversight of expenditure linked to credit cards, overtime, redundancy, salary increases or travel and subsistence payments.
Investigators conducted a detailed review of documentation from BirdWatch Ireland and interviewed 17 past or present employees or trustees (board members).
They found no evidence that personal use of a BWI credit card had been approved in advance by the board.
Mr O’Sullivan told inspectors that "there was absolutely no items submitted for any expenses…without prior approval from the Chair".
In relation to a €4,000 loan to Mr O’Sullivan in early 2019, there was "no evidence of any consideration by the Board as to how loaning charitable funds to an employee advanced the charitable purpose of BirdWatch Ireland". This loan was subsequently paid back, with interest, in November 2019.
Mr O’Sullivan told the inquiry that "everything is documented about that, absolutely" but the report said inspectors found no evidence of a loan agreement "between CEO 2 and BirdWatch Ireland".
The report said overtime payments to Mr O’Sullivan were "contrary to their employment contract….[and] not validated or approved in advance as required".
It states that there was "inadequate oversight by the Board of CEO 2’s performance".
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Wider financial issues were "compounded by project managers incurring expenditure without due reference to the status of cash availability".
And signals "that could have alerted the Board to possible issues were not sufficiently challenged".
The report also found discrepancies in relation to recruitment practices at BirdWatch Ireland.
Inspectors sampled six employees who worked for the charity, in the period under review.
Contracts for three could not be provided; ads for four of the roles could not be provided; there was no evidence of interview for four applicants and no approval of one of the positions evident from board minutes.
The regulator said it is continuing to engage with the organisation, to ensure the implementation of all recommendations made in today's report.
The current CEO of BirdWatch Ireland, Linda Lennon, said she has been working since her appointment in May of this year, to ensure the right processes, procedures and financial plans are in place at the charity.
She said substantial changes had been made to strengthen and change policies, oversight and governance at BirdWatch Ireland.
Ms Lennon said she was very aware of the role BWI plays and that the organisation was committed to ensuring every possible step was taken to avoid any repetition of the issues outlined in today's report.
