Approved Housing Bodies Regulatory Authority publishes inspectors’ report on the Peter McVerry Trust

Report finds significant failings in governance, financial management and conflict of interest handling

PMVT to undergo intensive oversight and monitoring programme

The Approved Housing Bodies Regulatory Authority (AHBRA) today published the report of the independent inspectors appointed to investigate the Peter McVerry Trust (PMVT).  

The objective of the investigation was to ascertain the PMVT’s compliance with the Housing (Regulation of Approved Housing Bodies) Act 2019 and AHBRA’s regulatory standards for AHBs. AHBRA’s statutory remit is the protection of housing assets funded by the State. In line with this, the investigation focused on the areas of governance, financial management and property management.

The investigation that informed the report was conducted from 1 October 2023 to 30 May 2024 and includes issues arising between 1 January 2022 (when AHBRA’s relevant regulatory functions came into effect) and 31 August 2023.

Key factual findings of the inspectors

  • The recording of the PMVT’s housing assets on its fixed asset register and its impact on the AHB’s balance sheet and financial statements was not accurate.
  • There was limited management of capital and creditor liabilities relating to the PMVT’s housing assets and a lack of financial policies and procedures in place.
  • The Board did not have appropriate oversight of capital acquisitions and expenditure and did not evaluate the impact of such capital expenditures on cashflows.
  • The documented financial controls, for example for expenditure over €50,000, were not implemented within the organisation.
  • The PMVT’s list of preferred suppliers was not subjected to a tendering process, and did not adhere to procurement guidelines, despite the significant expenditures incurred with each supplier.
  • The use of the sinking fund was not appropriate and did not align with Board restrictions on its use.
  • Potential conflicts of interest regarding some suppliers and advisors were not disclosed to the Board/Committees.
  • Appropriate financial policies and procedures and financial management and reporting were not in place, which resulted in many of the above noted inadequate controls and procedures within the PMVT.

Statement from Fergal O’Leary, CEO of AHBRA:

“This report highlights serious failings in governance, financial management, and conflict of interest handling within the Peter McVerry Trust. These failings represent significant breaches of AHBRA’s regulatory standards for Approved Housing Bodies and underline the urgent need for robust reforms within PMVT.  

PMVT has acknowledged the seriousness of the findings and has committed to undertaking a comprehensive programme of corrective actions to address the deficiencies. Building on actions taken to date, the PMVT will now implement reforms which are designed to ensure full compliance with regulatory standards.

An independent expert reporting to AHBRA will oversee and verify the progress of these reforms over the next six to nine months to ensure their effectiveness. AHBRA will closely monitor this work to ensure that the PMVT meets its regulatory obligations. As a result, AHBRA is not proposing to use its enforcement powers at this stage, but this will be kept under review.

It is important to emphasise that responsibility for addressing these deficiencies lies solely with the PMVT. While AHBRA will exercise intensive oversight and monitoring to ensure the necessary changes are made, accountability for implementing these reforms remains with the PMVT Board and management’’.  

Restoring trust

Mr. O’Leary said “The deficiencies highlighted in the report are of significant concern and have the potential to diminish public and funder confidence. While we acknowledge that the PMVT continued to deliver vital services during this period, non-compliance with regulatory standards is unacceptable.  

Regrettably, the publication of this report does not draw a line under the matter. It represents only an interim phase in the PMVT’s journey to restoring trust in its organisation. For its part, AHBRA is committed to overseeing and monitoring the necessary reforms as the PMVT works to meet the required standards of governance and financial management so that public and funder confidence is restored.

At a sector level, AHBRA will continue to deepen our oversight and strengthen our regulatory approach to ensure that all AHBs understand their statutory responsibilities and operate to the necessary standards of governance and accountability’’.

Collaboration with key stakeholders  

Since receiving the inspectors’ report in October 2024, AHBRA has engaged with the Department of Housing, Local Government and Heritage (as its parent Department and a funder of AHB assets and homelessness services) and the Charities Regulator to ensure that the PMVT’s continuing corrective actions are effective, comprehensive and address all of its statutory obligations.  

The full investigation report is available here.

Media Contact: Maisie Lynch / Sebastian Enke, Alice Public Relations, Email: media@alicepr.com, Phone: 086-896-6298 / 087-323-9496 / 01-558-2151.

Contact for General Queries: Communications@ahbregulator.ie

Notes to editors:

The Approved Housing Bodies Regulatory Authority (AHBRA) was established in February 2021 to oversee the effective governance, financial management and performance of voluntary and co-operative housing bodies (referred to as Approved Housing Bodies or AHBs) in accordance with the legal framework set out in the Housing (Regulation of Approved Housing Bodies) Act 2019.

In February 2022, the Minister for Housing, Local Government and Heritage approved the Standards for AHBs, which were developed by AHBRA, following engagement with the AHB sector and a wide range of key stakeholders. The Standards cover governance, financial management and reporting, property and asset management, and tenancy management. They establish a set of outcomes that AHBs are required to achieve to demonstrate the protection of housing assets provided or managed by AHBs. Section 37(8) of the Housing (Regulation of Approved Housing Bodies) Act 2019 requires all AHBs to comply with these Standards.

Under the provisions of the Act, AHBRA may appoint one or more inspectors to conduct a statutory investigation into the affairs of an AHB, where it considers it is necessary to do so for the purpose of any of AHBRA’s functions. The investigation into PMVT commenced following receipt of a Notifiable Event from the AHB in July 2023, which highlighted several financial and governance issues.

Notifiable events

A Notifiable Event is a material, significant, or exceptional issue, event, or change within an organisation.  AHBRA has a regulatory interest in such changes or events, as they may have a serious or significant impact on an AHB. When deciding whether a matter is a Notifiable Event, an AHB should consider the risk to its organisation and the potential impact.