A Charities Regulator investigation found serious failings in financial oversight at BirdWatch Ireland, “inappropriate” spending and use of charity credit cards, and funding earmarked for conservation projects being diverted to cover staff salaries during periods of financial pressure.
The watchdog’s investigation concluded the funds of the wild bird conservation charity had “not been properly safeguarded” in recent years, pointing to a series of shortcomings in practice and governance.
In a report, published on Wednesday, the regulator said Birdwatch Ireland’s board had “inadequate oversight” of credit card and travel spending, as well as salary increases at a time when the charity was facing a cash deficit.
The investigation, undertaken by inspectors appointed by the regulator last year, raised concerns about several matters involving the charity’s former chief executive, Declan O’Sullivan, who was in the role from 2016 until early 2020.
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The report found Mr O’Sullivan had used a BirdWatch credit card to pay for repairs to his wife’s car.
The former chair of the board, Gerry Lyons, told inspectors he had approved the payment because the chief executive was using the car at that time for work, and as he had worked more days than contracted.
Inspectors said the chief executive’s use of the credit card to pay for his wife’s car repairs was done “without the approval or knowledge of the board of BirdWatch”.
Mr O’Sullivan was employed by the charity to work part-time as chief executive, working 2½ days a week for a salary of €78,000.
The former chief executive had also received a €4,000 loan from the charity in 2019, which was later paid back. “No evidence of any consideration by the board as to how loaning charitable funds to an employee advanced the charitable purpose of BirdWatch was provided to the inspectors,” the report said.
Mr O’Sullivan said he had no comment to make on the findings of the regulator’s report.
The report revealed during one point in 2020 the charity did not have enough funds to cover the salaries of all staff.
This led to the charity using “restricted” funding, which is provided for a specific purpose or project, to cover general spending.
An external report previously commissioned by BirdWatch Ireland found it had spent €500,000 in restricted funding on general costs, the report said.
The charity did not have sufficient funds to pay the salaries of all staff in May 2020, so temporarily used €18,000 in funds from a project to protect the endangered curlew bird to cover payroll costs. The report said this “directly breached the written agreement” for the part State-funded project.
In a letter to the regulator last May, BirdWatch Ireland said the funds “were not misappropriated but were used for other conservation projects” and general spending.
In a September 2020 board meeting, a statement was read out by staff which claimed the board’s lack of financial oversight had brought the organisation “to the brink of insolvency”.
The regulator’s report said in 2019 the charity incurred a loss of €290,600, and had net liabilities of €427,000. Inspectors found €880 was spent on the charity’s credit card for a Christmas party that year, which they said was “not an appropriate use of charitable funds at a time of cash flow difficulties”.
The report concluded inappropriate spending and an overall lack of financial controls indicated “that the funds of BirdWatch have not been properly safeguarded”.
A spokesman for BirdWatch Ireland said the charity had already been introducing reforms before the publication of the report. The organisation’s finances were also in a much more stable position at present, he said.
BirdWatch Ireland primarily works for the conservation and protection of wild birds and their habitats. The organisation has several thousand members, with 30 local branches run by volunteers. It also runs a number of nature reserves, and employs about 30 staff.
