FAI had 'used all available funding from bank accounts' at time of €100k loan from Delaney
THE Football Association of Ireland (FAI) had used all available funding from its various bank accounts at the time former chief executive John Delaney provided it with a €100,000 loan.
The revelation comes in correspondence from the Association to the Oireachtas Sport Committee this evening.
The letter from interim chief executive Rea Walshe addresses a number of queries raised by TDs and Senators at the Committee's meeting with FAI representatives last week.
Mr Delaney gave an account of the circumstances of the €100,000 loan he gave the FAI in 2017 when he appeared before the Committee last Wednesday.
He told committee members he was advised at an internal FAI finance meeting on April 25, 2017 that if all cheques and FAI bank transfers issued to third parties at that time were presented for payment, the FAI would have exceeded its €1.5m bank overdraft.
The committee was also told by FAI officials that the Association had 24 bank accounts.
The FAI was asked at the Committee why other bank accounts were not used to cover outgoing costs at the time.
The letter from Ms Walsh this evening says that "at the time the Association was provided with the €100,000 loan, it had utilised all available funding across its bank accounts."
The committee was also told last week that a particular creditor sought to draw down funds on April 26, 2017.
TDs and Senators heard that the financial director made contact with then-ceo Mr Delaney proposing to lodge cheque for €100,000 to the Association's bank account in order to honour the request for draw down from this creditor.
The FAI did not identify the creditor at last week's meeting.
In the letter this evening it said that the category or payment and payment terms to the creditor are "commercially sensitive".
Mr Delaney was paid back in June 2017 and the committee heard that no interest was levied or paid on the loan.
The letter also says that the FAI holds an active tax clearance certificate, "which confirms that all current and prior tax affairs are in order".
It also addresses a question on why the €100,000 loan was not included in monthly financial accounts.
Ms Walshe said that the monthly accounts presented to the Board and Finance Committee contain the Profit and Loss account.
The €100,000 loan is said to have been accounted for on the balance sheet.
The letter says: "Balance sheet accounts are reviewed by the finance team on a monthly basis. The transaction did not affect the Profit and Loss account of the Association."
On the question of which account the €100,000 was paid into Ms Walshe says it was the FAI's deposit account, "which is the account the majority of out receipts go into.
"This is the bank account listed on our invoices.
"An internal transfer from this account to our main current account, which holds the overdraft facility, was then performed."
In the letter Ms Walshe apologises to the committee for the late response to their queries.
She says: "However, as you will have seen today Mr Delaney has stepped aside from his role as Executive Vice President and we have had two resignations from the Board."
FAI response to Oireachtas
Dear Mr Kelly
Firstly, let us apologise for this late response however, as you will ahe seen today Mr DElaney has stepped aside from his role as Executive Vice President and we have had two resignations from the Board.
Further to our meeting with the Committee last week, queries arose and we had said we would revert as quickly as possible and in so far as we could, given the ongoing processes.
In relation to the queries raised please see our responses below.
Auditing Process and whether auditors had access to all books and records including records of cheques?
As part of the audit process, we are obliged to provide and do provide access to all the books and records of the Association for the financial year.
Does the FAI have an active Tax Clearance Certificate?
The Association holds an active tax clearance certificate, which confirms that all current and prior tax affairs are in order.
Overdraft - why there is a difference between the overdraft as per the 2016 financial statement and the current overdraft
In 2013 the Association moved its overdraft facility from Danske Bank to Bank of Ireand. In 2016 the Association successfully refinanced its bank loans from the Corporate Capital Trust to Bank of Ireland. The amendments of the overdraft facility formed part of the restructuring.
Why was the €100,000 not included in the Monthly Financial Accounts?
The monthly accounts presented to the Board and Finance Committee contain the Profit and Loss account which would be the normal way to assess the up-to-date performance of the business in relation to variances to budget. The €100,000 loan was accounted for in the balance sheet. Balance sheet accounts are reviewed by the finance tam on a monthly basis. The transaction did not affect the Profit and Loss account of the Association.
Why were other bank accounts not utilised in the absence of the €100,000 loan issue?
At the time the Asssociation was provided with the €100,000 loan, it had utilised all available funding across its bank accounts
What was the category of payment and payment terms of the creditor?
We confirm that this information is commercially sensitive
What account was the €100,000 paid into?
It was lodged into our deposit account, which is the amount the majority of our receipts go into. This is the bank account listed on our invoices. An internal transfer from this account to our main current account, which holds the overdraft facility, was then performed.
What comprises the €430,000 contained on note 20 of the 2016 Financial Statements
The €430,000 related to the CEO's salary and the honorarium to officers of the Board
If you have any further please do not hesitate to contact us