Tuesday 26 September 2017

Rehab enjoyed five-fold increase in profits in Angela Kerins' final year

Angela Kerins, former chief executive of the Rehab group
Angela Kerins, former chief executive of the Rehab group

Gordon Deegan

REHAB group increased operating profits more than five-fold in the final year under former chief executive, Angela Kerins.

Rehab's annual report for 2013 shows that the group - which employs 3,200 across Ireland and the UK - increased its operating surplus from €200,000 in 2012 to €1.1m last year.

Revenues at the group declined by 3pc from €183m to €178m in the 12 months to the end of December last.

The accounts disclose that former board member and Fine Gael trustee Frank Flannery received €65,000 for consultancy services provided to Rehab last year.

The former Fine Gael party officer received €66,000 for the same service in 2012.

However, the annual report and accounts are short on detail in terms of Ms Kerins' salary - or the salary bands of other high earners.

Ms Kerins resigned as chief executive in controversial circumstances in April of this year and has since initiated High Court proceedings against the Dail's Public Accounts Committee (PAC).

In a statement, recently appointed chairman of Rehab Sean Egan said: "From late 2013 a public focus on the charity sector in Ireland brought to the fore some aspects of Rehab's governance and management which did not meet the high standards which all of our stakeholders have the right to expect.

"On behalf of Rehab, the board has expressed its deep regret at these failings, and Rehab is committed to changing for the better."

The Rehab Group carried out a root-and-branch review of its governance in the wake of a series of recent controversies including the running of its lottery scheme.

The accounts show that last year, the group received €2.7m from the Charities Lottery Fund- down from the €4.1m the previous year.

According to Rehab the winding down of the fund "will mean a significant reduction in funds available for capital projects in the coming years".

The board has decided to adopt the statement of recommended practice for accounting and reporting by charities - this is expected to mean Rehab provides far more detail in the 2014 set of accounts.

Irish Independent

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