A tranche of State funding has been released to the crisis-hit Peter McVerry Trust, after the homelessness charity sought upwards of €2 million to allow it to continue running its services in the short-term.
Last month the charity, which is facing a major financial crisis, sought a bailout of €8 million from the State, which officials from the Department of Housing and the Dublin Region Homeless Executive (DRHE) are currently considering.
Officials recently wrote to Minister for Housing Darragh O’Brien stating the charity would need €2.3 million, in order to maintain the services it runs in the short-term, according to a source familiar with the matter.
It was agreed late last week that some interim funding should be released to the charity by the DRHE.
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The trust is one of the largest providers of homeless services in the State, but a shortfall in income and significant debts has brought it close to collapse in recent months.
While interim funding was signed off to be released to the charity in recent days, discussions are ongoing about a broader bailout by the State.
Mr O’Brien previously said any bailout of the charity would come attached with conditions, which one source said would likely include financial and governance reforms.
A spokeswoman for the DRHE said it was agreed the agency would “release a payment for homeless services” to the trust, in advance of Mr O’Brien considering “broader recommendations” from officials.
“The immediate priority is the continuity of services to persons experiencing homelessness. To this end, the DRHE will provide the trust with sufficient funding to ensure that homeless services will not be interrupted in the short term,” the spokeswoman said.
The DRHE did not outline how much of the requested €2.3 million in funding had been agreed to be released to the charity, while the Peter McVerry Trust did not respond to requests for comment.
Meetings of the oversight group of officials considering the matter have discussed past financial shortcomings that would need to be addressed at the charity going forward.
One department source said it appeared certain routine financial practices, such as raising purchase orders for services to be carried out, had not been happening “on a timely basis” in the past.
The oversight group has discussed potential income that could be raised from invoices the trust had not yet submitted to public funders for services it was providing.
It is believed the trust is also examining other options, such as whether it could secure a loan to provide funding.
The charity has sold property, including a site used for homeless accommodation in north Dublin which raised €1 million, with plans for further property sales to raise another €5.8 million.
The trust reported an income last year of about €60 million, the majority of which comes from State funding.
Francis Doherty, who took over as chief executive of the trust in June, resigned from the role in October, claiming the charity’s board had made his position untenable.
In his resignation letter Mr Doherty said the charity had been on the brink of “imminent financial collapse” by July this year.
He claimed he had identified concerning information about a number of financial issues predating his appointment, including the “potential mismanagement of donor funds”.
The current financial problems facing the charity had arisen over a number of years, which he said pointed to “repeated and long-standing governance failings”.
The Charities Regulator and the Approved Housing Bodies Regulatory Authority, which regulates non-profit housing bodies, are conducting parallel statutory investigations into financial and governance issues at the charity.
