An audit has recommended winding up a State-funded body which works with disadvantaged communities in Waterford.
The Crowe Horwath report has said that Waterford Area Partnership (WAP) is "at risk of collapse" and is "not viable" due to mounting issues at the organisation.
The company is the subject of "major investigations" according to the audit, which was commissioned by the Department of Rural and Community Development, including one by gardaí into its financial transactions. The Charities Regulator and Revenue are also investigating the Partnership, which delivers programmes aimed at alleviating deprivation in Waterford city. It has an annual budget of €3m.
"We do not feel that WAP CLG is viable as an organisation, due to the combination and seriousness of the issues facing the organisation," the consultants said.
As the issues are spread across the organisation and include the "prospect of major investigations into the organisation’s governance and management conduct on a statutory basis", the report viewed that "any effort to save" WAP would be a "risky use of public funds" due to the level of investment required.
It recommended that the department focus on “preserving” some or all of the programmes offered by WAP and identify an alternate organisation which can deliver the programmes. This would allow the "orderly transfer" of WAP's activities and lessen disruption to the programmes and jobs provided by the company. About 40 people are employed through the organisation and its programmes.
Chief executive Richard Grant announced his resignation to board members upon the delivery of the report in recent weeks. Mr Grant and the company did not respond when contacted.
Waterford City and County Council said it would not be commenting until its subcommittee with responsibility for WAP – the Local Community Development Committee – could meet on Thursday to decide on the report’s recommendations.
Legacy problems highlighted by the authors include "major issues" surrounding the delivery of a social inclusion programme worth €1.1m annually, related to accounting procedures and internal controls.
Another legacy issue flagged is that of a rental scheme involving education bodies in the southeast: "Arising from a historic scheme to circumvent rules for the funding of Local Training Initiatives, WAP has a liability for approximately €116,000 owed to Kilkenny and Carlow Education and Training Board and Waterford and Wexford Education and Training Board."
A proposal has been made to the ETBs for the repayment of these funds over a long period, but as of yet no agreement has been made, it added. It is understood gardaí received a complaint last year about the scheme which they are now investigating.
