Pádraig Ó Céidigh (Independent) | Oireachtas source

I get that there is a big difference between regulation and governance. It is a totally different mindset and way. I know this from different matters, including aviation and the Commission for Aviation Regulation and so on. The witnesses are right. I fully accept that and it is important to make that distinction or draw that line in the sand. That is not the role of Sport Ireland, nor do I think it should be.

From my perspective, there is a significant level of integrity, openness and calling it as it is in Sport Ireland and the people involved in it. It is important to state that and I appreciate that. Overall, the organisation is doing a very fine job, it is very genuine and committed. There is a separation between Sport Ireland and the governing bodies. The latter have a particular role, particularly when they are companies limited by guarantee, as is the case with the FAI. From memory, the FAI got a clean audit from a very reputable firm in 2017, which was the year for which accounts were most recently lodged in the Companies Office.

My understanding is that that loan was provided in May and was repaid in July or August. If that was the situation, a person looking at the accounts at year end will ask two questions. He or she would wonder whether the loan was repaid, meaning that it may not be a factor from an auditor's perspective, and would also wonder about the materiality of it. The FAI's turnover for the year in question was just north of €50 million. Some 6% of that approximately €51 million came from Sport Ireland. It is a significant amount of money, but is not huge when compared with the overall. Sport Ireland made a profit of approximately €2.7 million, and had net total assets of around €22.5 million. If a sanction was created, perhaps by withholding the second part of the payment from the FAI, it seems that its finances are in a good enough position that it would still be well able to look after the grassroots. I am aware that there is a process in place to deal with that, but it is ultimately a factor that makes people sit up and think, and reflect. It is not the style of Sport Ireland, nor should it be.

I had to leave for a meeting earlier, so perhaps my next question has already been answered. Were any red flags raised around the FAI over the last couple of years? Was there anything that gave Sport Ireland pause or reason to believe that it should look at the FAI? Was there any sense of a domino effect?

Bodies in receipt of reasonably significant State funding, from Sport Ireland or otherwise, should be compelled to have an independent board governance audit carried out. The Institute of Directors can do that, and others do it as well. It is not very expensive, and in my view it should be done at least once every five years. A body which grants funds has fixed criteria when it comes to decisions to grant, but there is much more involved for organisations such as the FAI which can have a material effect on the overall benefits of the process. I suggest there should be a wider governance code in place, not a regulatory code. I was surprised, like Senator Feighan, that there are 575 companies listed on governance.iein class A, class B or class C. The FAI is in class C on that website, but is not included. That would be a flag for me. What is Mr. Treacy's opinion on that?