If all potential legal cases are to proceed against An Coimisiún Le Rincí Gaelacha (CLRG), it may not be able to continue as a going concern “to govern our beautiful art form”.
That is the warning sounded by directors of Irish dancing’s largest and oldest governing body, CLRG, in new 2024 accounts that show it recorded losses of €717,796 last year as it continued to count the cost of dealing with the fallout from the 2022 scandal of alleged cheating in Irish dancing.
Accounts filed to the Companies Office for CLRG show its finances were affected further by the affair relating to alleged “feis-fixing” as last year’s losses of €717,796 included a €500,000 special provision for potential litigation.
In the face of the mounting losses, the CLRG wrote to members last year to advise it was abandoning its own investigation into the alleged cheating in Irish dancing.
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However, in a note attached to the new accounts on making the €500,000 legal cost and settlement provision, the directors state “there are several potential legal cases that may be taken against An Coimisiún Le Rincí Gaelacha”.
The note states one registrant has issued proceedings against the organisation regarding the suspension of registration in 2022. It adds “there is concern that the company may face further litigation from additional registrants based on the outcome of the above”.
The company has estimated a potential outflow of €500,000 for damages and legal fees, but the exact amount is subject to the outcome of the legal process. Directors have considered up to 12 potential extra cases when making the provision.
They state going forward such legal costs “would not be able to be met from company reserves leading ultimately to there being no organisation to govern our beautiful art form”.
They caution that if all potential legal cases as outlined by the solicitors were to proceed, “then the organisation may not be able to continue as a going concern”.
However, they state that they “are satisfied that ... continued and enhanced financial stewardship should ensure that the organisation returns to a viable position”.
The accounts disclose that 2024 income included a grant of €475,712 from Glasgow Life.
The new accounts lay bare the financial impact of the alleged feis-fixing scandal on the CLRG.
Before the scandal erupted in 2022, the CLRG had accumulated profits of €2.1 million at the end of 2021. At the end of last year CLRG was sitting on an accumulated loss of €370,364 - a negative swing of €2.47 million across the three years.
In a statement on Thursday, the CLRG said: “throughout 2024, CLRG have implemented a range of initiatives to reduce costs and increase revenue for the organisation. By continuing to hold meetings online, the company has achieved significant savings, while a renewed focus on enhancing the profitability of our flagship events has delivered strong results”.
It added: “Enhanced communication amongst members has led to more transparent financial reporting. Notably, the company recorded a net deficit of €217,796 for the year ended 31 December 2024, compared with €704,269 in 2023. Cash-flow forecasting for the next 12 months also indicates substantial improvement in our financial position.”
They state: “We are delighted to see a rise in registration numbers, reflecting an international level of support. CLRG remains committed to enhancing our financial stewardship and ensuring that we can govern this beloved art form for many years to come.”
In his report on the 2024 financial statements, Eoin O’Riordan, of chartered accountants and statutory audit firm Leahy O’Riordan, states “while the company is in a stronger trading position than in previous periods, the impact of the potential legal cases may be significant”.
He said: “This condition indicates that existence of a material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern.”
