Sport NI management breakdown cost taxpayers £1.5 million

In a report published on Wednesday, the auditor general Kieran Donnelly spells out the governance issues that arose from a “relationship breakdowns” at the top of the body responsible for promoting sport and physical recreation in Northern Ireland.

The report concluded that Sport NI fell far below the accepted standard of public record keeping essential in the public sector in order to support accountability.

Well-publicised difficulties within Sport NI – between chief executive Antoinette McKeown and chairman Brian Henning – arose in February 2015, which led to the “precautionary suspension” of Ms McKeown in March 2015. Mr Henning stepped down in March 2016.

Claims of gross misconduct against Ms McKeown were upheld by an independent disciplinary panel and she was eventually dismissed in November 2016.

However, an appeal panel found that decision “unsafe” and that, on the balance of probabilities, “did not support the allegations” that were made.

Ms McKeown was reinstated and returned to work in July 2017 and later accepted a payment of £25,000 in settlement of a gender and religious/political beliefs discrimination case.

The NIAO report identifies the breakdown in the relationship as occurring within 18 months of Ms McKeown being appointed in September 2013, but adds: “What is less clear is evidence to support the reasons for the breakdown. There is no record of key discussions and an inconsistent adherence to Sport NI performance assessment procedures.”

Commenting on the findings of the report, the auditor general Mr Donnelly said: “This report reflects fundamental failings in the governance of Sport NI over a sustained period, failings which cost an estimated £1.5 million.

“It is unacceptable that the resolution of issues arising from relationship breakdowns within Sport NI were allowed to drift for four years, distracting Sport NI from its core business of promoting sport and physical recreation.”

Mr Donnelly added: “Good relationships between the board, the chief executive officer and senior management are key if an arm’s length body is to operate effectively.

“Signs of relationship breakdown within senior levels should be addressed by the body’s board as a corporate governance priority, and sponsor departments must be proactive in assessing the situation and taking appropriate action.”

Mr Donnelly was also critical of the “significant delays” in the submission of financial statements, although he noted this has now been rectified.

He said: “I am concerned that Sport NI has taken over two years to return its preparation of financial statements to the expected standards and timetable since the return of the chief executive officer and the strengthening of the board.

“The preparation of financial statements to an acceptable standard and on a timely basis is a key governance requirement, providing accountability for the funds made available to a body.”

A DfC spokesperson said the department will carefully consider the report’s findings.

“There are important lessons to be learned which have been highlighted in the report, not just for Sport NI and the department, but for the wider public sector. The department will carefully consider these recommendations before taking the appropriate next steps.”

The DfC spokesperson said the department will continue to support the board of Sport NI and the chief executive as they deliver their plans to transform the organisation, but would not be making any further comment until the formal audit process is fully complete.

Sport NI said it welcomed the publication of the report and that it is committed to ensure that the recommendations are fully implemented, and that it has invested considerable time and resources into a transformation programme over the past three years.

Sport NI also said it was committed to working in partnership with the Department for Communities to ensure standards of good governance are maintained.

Chairman George Lucas said: “We have worked closely with our sponsor department, Department for Communities, and the NIAO to diligently address the issues of the past, and I would acknowledge their support.

“Also, I would thank the board, CEO and the exceptional team within Sport NI who have led and embraced significant positive changes in governance, culture and strategy, to enable us to look forward to a positive future for sport in Northern Ireland.”