Mr. Tony O'Brien:

I thank the Cathaoirleach. I wish members a good afternoon. I thank them for the opportunity to make a very brief statement.

At the outset, I want to acknowledge the concerns that were expressed here about our decision not to appear on 19 June last. It was a decision we did not make lightly, but we do fully appreciate and regret the frustration this caused the committee at that time. I also want to thank the committee and its secretariat for the courtesy shown in arranging for today's appearance.

On behalf of the Peter McVerry Trust, I am pleased also to have finally been able to present the 2023 financial statements. I appreciate the committee's patience as we undertook the detailed and in-depth audit. The trust acknowledges without reservation that the issues uncovered in 2023 represented a fundamental breakdown in financial oversight and governance. These failures have had significant implications for public confidence, regulatory compliance and the stewardship of public funds. In publishing the 2023 financial statements, we are providing a detailed account of what happened in that period. This in itself represents an important milestone for the organisation. Members will have noted the current leadership of the trust, and our new external auditors have pulled no punches.

The trust got into financial difficulties due to its practice of underbidding in competitive tenders and taking on projects and services that were not fully funded. These decisions resulted in a growing and unsustainable deficit in its income and expenditure. This was compounded by poor accounting policies and practice. The opening balances for 2023 had to be restated due to material findings during the audit. The major items are listed in note 23. There were two major issues, one of which was depreciation. We had to apply depreciation to the housing stock from the date of purchase, resulting in an impact of over €9 million. When the fixed asset register was corrected to accurately record the assets, the impact was almost €26 million.

Members will also have noted that of the €15 million in exceptional Government funding agreed in November 2023, only €3.9 million is reflected in the 2023 accounts as that was the part of these funds received by the end of that year. The remaining funds followed in subsequent accounting periods. The trust is progressing the asset transfer process agreed with the Department of housing as part of the €15 million loan facility, and we remain committed to paying the full value of that facility through the transfer of unencumbered assets to local authorities.

We are also actively working to meet the conditions set out by both the AHBRA and the Charities Regulatory Authority. This includes a detailed compliance plan with clear milestones and timelines, which we are implementing in close consultation with both bodies. We are committed to building a financially sound, transparent and accountable organisation that can deliver its mission with integrity. Part of that will include a policy of full cost recovery for services provided to the public sector. We welcome the scrutiny of this committee and are prepared to answer members' questions.