A report commissioned by Sport Ireland into governance at Cycling Ireland has discovered multiple shortcomings and "failures" as well as a lack confidence by the board in the executive, who are full-time paid officials.
The report, which has been made available after queries from stickybottle, also says the board of Cycling Ireland saw fit to "intervene in the high-performance area" while the holder of the president's post - a voluntary role - signed off on payments.
Grants were applied for by others in Cycling Ireland that could "not be supported by evidence" and this "represented poor practice and undermine confidence in the integrity" of Cycling Ireland, the report finds. It added the false quotation documents used by Cycling Ireland to apply for Department of Sport capital grants "have no place in any procurement procedure".
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The Sport Ireland KOSI Audit report also deals with the aftermath of the grants debacle, noting no immediate investigation was carried out within Cycling Ireland which "further undermines confidence in effectiveness, control and accountability" within the national governing body.
"There was an absence of full openness on the issues arising from the above on the part of the executive. A straight forward open explanation of what happened and why things happened was not provided," the KOSI report says.
It added the decision of the head of high performance - Brian Nugent - to "signal resignation from his position at a crucial point in the run up to the Tokyo Olympics" did not "point to an organisation working collectively, effectively and in harmony".
The KOSI report was commissioned by Sport Ireland in response to false quotation documents being used by Cycling Ireland in 2020 to apply for capital grants from the Department of Sport and a separate case involving Cycling Ireland trying to access money from the Sport NI Sustainability Fund.
Before two volunteer Cycling Ireland board members appeared at the Oireachtas Committee on Tourism, Culture, Arts, Sport and Media on Wednesday of this week, Cycling Ireland issued a statement which claimed the KOSI report had been "published in October 2021".
However, following queries from stickybottle on Thursday, Cycling Ireland has confirmed this evening, Friday, that Sport Ireland did not publish the KOSI report. Furthermore, it confirmed a link to the report had just now, Friday, been added to the Cycling Ireland website.
The KOSI report should not be confused by the BDO report into the proposed, but discontinued, contract under which Cycling Ireland had intended to fund an academy for young Irish cyclists within the EvoPro Racing team. The Oireachtas committee on Wednesday had been due to host a discussion on the BDO report - by auditors BDO - though that report is still not available.
The main findings of the separate KOSI report - by Sport Ireland in the wake of the issues with the two grants, in the Republic and Northern Ireland - are listed below. The sections of text below in italics are direct quotes from the Sport Ireland KOSI Audit report. There is also a link to that full report at the bottom of this piece.
KOSI Audit | Findings in detail
Finding 1: Errors and ineptitude in preparation of grant applications
There were failings in procedures, processes and practice in Cycling Ireland in two grant applications made on behalf of the Body. The first related to the inclusion of false comparative quotations as part of a capital grant submission to the Department of Transport, Tourism and Sport. The second related to an erroneous interpretation of the criteria for accessing the Sport NI Sustainability Fund which could not be supported by evidence. The applications in both instances represented poor practice and undermine confidence in the integrity of the body.
- The finding in relation to this principle 5 - Behaving with integrity - was rated as 'high' meaning it "represents a significant weakness in the current control environment, financial management or governance and required immediate action by management".
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Finding 2: Procurement
Finding 1 also points to a lack of rigour in procurement procedure in Cycling Ireland. False quotations have no place in any procurement procedure. That this happened evidences an absence of adherence to good practice.
- This finding related to 'general financial controls' and rating was 'high', meaning it "represents a significant weakness in the current control environment, financial management or governance and required immediate action by management".
Finding 3: Absence of openness regarding errors and indiscretion
There was an absence of full openness on the issues arising from the above on the part of the executive. A straight forward open explanation of what happened and why things happened was not provided.
- This finding related to 'transparency and accountability' and the rating was 'high', meaning it "represents a significant weakness in the current control environment, financial management or governance and required immediate action by management".
Finding 4: Absence of new grant procedure
Following on from the negative outworking of the erroneous grant submissions, not to prepare, agree and implement a revised grant procedure to ensure that confidence in CI’s grant application process can be restored, is a failure.
- This finding related to principle 2 of 'exercising control over the organisation' and the rating was 'high' meaning it "represents a significant weakness in the current control environment, financial management or governance and required immediate action by management".
Finding 5: Failure to fully investigate
The failure of the executive to carry out a full investigation as soon as possible and address the shortcomings that led to the two events happening, further undermines confidence in effectiveness, control and accountability within CI. It is noted an investigation is currently underway.
- This finding related to principle 3, 'transparency and accountability' and the rating was 'high' meaning it "represents a significant weakness in the current control environment, financial management or governance and required immediate action by management".
Finding 6: Lack of Board confidence in executive
The IPA was engaged to carry out a review of Board Governance. Recommendations include that a ‘Schedule of Matters’ should be agreed between the Board and the executive regarding separation of responsibilities. The continuing role of the president in signing off payments and the necessity considered by the board to intervene in the high-performance area points to a lack of full confidence of the board in the executive.
- This finding related to principle 1 'leading the organisation' and the rating was 'high' meaning it "represents a significant weakness in the current control environment, financial management or governance and required immediate action by management".
Finding 7: Not working effectively
For its part the executive is uncomfortable with what is considered as over reach on behalf of the board. Notwithstanding these issues, the decision of the Head of High Performance to signal resignation from his position at a crucial point in the run up to the Tokyo Olympics does not point to an organisation working collectively, effectively and in harmony.
- Thus finding related to principle 4 'working effectively' and was 'high' meaning it "represents a significant weakness in the current control environment, financial management or governance and required immediate action by management".
You can read the full Sport Ireland KOSI Audit report by following this link.
