Minister Catherine Martin published an interim report today by Mazars, the forensic accountant appointed to examine the use of the barter account and any other identified off-balance sheet accounts in RTÉ.
Speaking following a meeting with the Chair of the RTÉ Board and RTÉ Director General earlier today, Minister Martin said: “The report from the forensic accountants again sets out alarming gaps in internal policies, procedures and controls that existed in RTÉ.”
The Minister has made the remarks after an independent review she commissioned into off-balance sheet accounts used by the broadcaster states in an interim report that there were significant gaps in controls and record keeping.
The report also reveals there was a lack of signed contracts between RTÉ and the barter media agencies used and that there was an absence of budgetary reporting for barter account purchases.
Key issues highlighted in the report are:
- An apparent lack of signed contracts between RTÉ and the barter media agencies used;
- No properly documented policy and procedures for use of the barter account and inadequate record keeping;
- An absence of budgetary reporting for barter account purchases;
- Goods or services acquired through the barter account outside RTÉ standard purchasing and procurement processes;
- No formal list of staff limiting who could make purchases through the barter account;
- No formal list of approvers for purchases.
The report also sets out the broad parameters of the levels of income and expenditure which was transacted though the barter account, with €7.4m in advertising revenue generated through the barter media agencies over the five-year period from 2017 to 2022.
The report sets out that it did not identify any revenue benefit to RTÉ in utilising the barter account for the purchase of goods and services compared to cashing out the full net value of the advertising revenues.
Further details included in the report include:
- The net benefit to RTÉ When RTÉ opted to “cash out” the trade credit balance in the account, that it was at a rate of 65% of the available trade credit balance, however, again, a formal documented process or evidence of approval in respect of cash-outs was not provided.
- While RTÉ has a Code of Business Conduct which contains guidelines in respect of gifts and entertainment, it does not set specific thresholds or approvals which could be applied to barter account transactions.
- While RTÉ maintains a record of purchases through the barter account, supporting evidence such as invoices and receipts are not stored in an easily accessible manner.
Minister Martin added: “This lack of properly documented policy and procedures for using the account, and an apparent lack of checks and controls over who used it, is not befitting a public service organisation, and cannot be repeated.”
However, the Minister will be providing a copy of the report to the independent Expert Advisory Committee examining governance and culture in RTÉ, so that they may consider it as part of their ongoing work.
The interim report sets out details of what has been assessed by the forensic accountant to date. Their work is continuing and a final report is expected to be submitted to Minister Martin in October.
Minister Martin confirmed today that once received, the final report will be brought to Cabinet for their information before being published.
A copy of the report is available here.
In meeting with RTÉ Chair and Director General this morning, the Minister received further confirmation of changes in policy and practice designed to rebuild trust with staff and the public alike.
Following publication of the second Grant Thornton report, a new process for publication of top 10 presenters pay is being put in place, which will also see the earnings published each year in the annual report starting from the 2023 report.
The Chair of the RTÉ Board also confirmed to the Minister that since April of this year, the barter account is no longer used for purchasing goods or services and that if any further controls are needed on foot of the Mazars report, they will be put in place.
It was also confirmed that progress is being made in developing a new register of interests, and a commitment was given to timely and transparent engagement with all ongoing enquiries and examinations including those by Oireachtas committees.
Minister Martin added: “It is also important to say that the first steps have been made to ensure proper controls are put in place. I am re-assured from my conversation with the Chair and DG this morning that genuine change is underway.”
