THE Bastow Charleton interim report into the FAI's ticket management operation highlights the need for a radical overhaul of the association's outmoded structures, and recommends a "complete review of the rules of the FAI, its Council and Committee structures, and a review of its staff structure".
The accountancy firm's report, given to the FAI before last Friday night's senior council meeting, identifies serious deficiencies in the recording, custody and control of the association's records and assets, and cites inordinate delays in the lodgement of monies, accrued from ticket sales at US 94, which instead lay in the FAI safe.
Accordingly, the report says that amongst the key priorities now facing the association is immediate clarification of the officers responsibilities, "and how they relate to the position of the general secretary".
The report also recommends that the FAI "introduce strong internal controls and segregation of duties over the allocation of tickets and collection of cash receipts", and that it appoints "a chief financial officer with a proven track record to oversee the implementation of newly adopted systems and procedures and to participate, fully in the future development of the FAI".
Looking ahead to their full report, which the FAI has indicated may be made public, Bastow Charleton "believe that the FAI is entitled to further explanations from officers on what they term "other match" tickets, which the FAI procured for bartering purposes for Irish matches during the US 94 finals.
Bastow Charleton propose to review "ticket control and accounting procedures for the recent home international matches to substantiate gross revenues" and to review "the management structures, authorisation and accounting control procedures to highlight for the FAI any major areas of exposure".
The external auditors also propose to trace the cash transactions between the FAI's former treasurer, Joe Delaney, and the ticket agent he dealt with, aka George The Greek.
According to the interim report, "there was no written evidence that any of the $474,125 worth of other match tickets were exchanged for Irish match tickets, apart from 314 tickets (value $14,424) for the Italy v Ireland game".
In "aggressively" pursuing all possible avenues for tickets, with the declared intention of bartering them for Irish games, the report states that "this approach appears to have led the officers to abandon reasonable control procedures".
The five officers at the time were president Michael Hyland, senior vice president Louis Kilcoyne, vice president Joe Delaney, vice president Des Casey and honorary treasurer Charlie Walsh.
The interim report states that the aforementioned five officers "entrusted $474,125 worth of readily marketable tickets to one person, Mr Joe Delaney. Furthermore, the five officers withdrew normal supervisory responsibilities, regarding these tickets from the chief executive, Mr Sean Connolly, and the (association's) accountant, Mr Michael Morris".
In a further summary of its findings, the Bastow Charleton report states: "There is evidence that the executive functions of senior staff were restricted and their role in controlling FAI finances inhibited by the involvement of certain officers in the day to day management of the FAI."
The report adds: "Mr Delaney has advised us that he dealt with ticket agents, without checking their credibility/reliability, and handed over $474,125 worth of World Cup tickets to such an unfamiliar agent, without security other than a $30,000 third party cheque drawn in favour of another unknown third party".
"So far as the FAI is concerned, the custody, exchange and/or sale of these tickets was entirely uncontrolled, and remains Undocumented, and the five officers appear to have been aware of this position."
Bastow Charleton cite inordinate delays in the receipt and lodgement of tickets from the US 94 World Cup finals and, as of November 1st of that year, £344,000 remained to be collected and lodged. Furthermore, FAI records indicate that £39,000 is still outstanding from US 94 ticket sales.
The report claims that "large amounts of both Irish and foreign currency were held in the FAI safe for prolonged periods without obvious explanation".
It also transpires that of an additional allocation of 942 tickets for the opening group game between the Republic of Ireland and Italy in the Giants Stadium, New Jersey, 555 were given to the officers, and a further 199 to the general secretary's office. According to the report, this was "a considerably larger share than their normal allocation".
Bastow Charleton's investigation also establishes that the first entry into the FAI's computerised ticket system was made in April 1995, nine months after the game. Evidence from FAI staff and officers indicate that Holland match receipts were not lodged intact, but used to pay $50,000 in cash to a hotel in Orlando", to offset part of the official party's accommodation costs, and to "pay $31,500 in cash for travelling expenses and outlay in the US".
Adding together unsold tickets at US 94, complimentary tickets, and the shortfall in the bartering policy at both US 94 and Italia 90, it is estimated that the total loss to the association was in the region of £364,000.
Furthermore, 2,000 complimentary tickets are issued for most home international matches (out of 33,000). "Accordingly," the report states, "there may be a loss of ticket revenue of up to £70,000 for each of these matches".
