Special Report 118 - Governance, internal control and value for money issues in Inland Fisheries Ireland
Inland Fisheries Ireland (IFI) is the State agency responsible for the management, protection and conservation of Ireland’s inland fisheries and sea angling resources. It was established in 2010 under the Inland Fisheries Act 2010 (the Act), amalgamating the previous Central Fisheries Board and the regional fisheries boards. It operates under the aegis of the Department of Climate, Energy and the Environment.
In 2022 and 2023, a number of disclosures were made to the Minister for the Climate, Energy and the Environment and to the Comptroller and Auditor General that raised concerns around IFI’s governance arrangements and the adequacy of its system of internal control.
The audit reports for the 2021 and 2022 annual financial statements drew attention to a number of significant issues of concern about IFI’s affairs, in particular matters in relation to governance, internal control, the regularity of certain transactions and value for money issues. This examination reviewed and reports on those matters in more detail.
Board of Inland Fisheries Ireland
Section 6 of the Act provides for a Board of IFI comprising ten members, including a Chair. Following several resignations in 2022 and early 2023, including two successive Chairs, the Board membership fell to five members which was just sufficient to form a quorum for a meeting.
In February 2023, the Minister removed the remaining board members on a no fault basis and appointed two persons, under Section 18 of the Act, to perform the functions of the Board on a temporary basis, pending its reconstitution.
A new Board was appointed by the Minister in January 2024.
Fisheries protection activity
A key function of IFI is the protection and conservation of fisheries resources including both fish and their habitats, with responsibility extending to inland surface waters and inshore waters within 12 miles of the shore. As part of this function, IFI uses a range of protection and enforcement measures.
IFI carries out protection patrols that include lake, river and coastal patrols using a range of assets that includes boats, motor vehicles, drones, bikes and quad vehicles. The total area (including islands) subject to these patrols varies between river basin districts (RBD), ranging from 8,000 square kilometres to 18,000 square kilometres.
In 2018 and 2019, IFI invested €3.5 million in a replacement fleet of 12 rigid inflatable boats (RIBs) for patrolling. However, recorded patrolling levels fell in 2019 due to revision of the requirements for qualified coxswains to lead patrols. This resulted in the number of qualified coxswains dropping sharply along with additional losses due to the retirement or departure of trained staff from the organisation. The capacity to undertake patrolling was gradually restored, through training of additional personnel. In 2023, the number of patrols per RIB undertaken represented an average of around 81% of the target set by IFI.
Prosecution of offences
IFI can initiate prosecutions for serious fisheries and environmental offences such as fish kills and water pollution.
Formal delegated sanction from the Board is required for IFI officers to initiate prosecutions. In March 2023, in response to a legal challenge in a prosecution case, IFI discovered that formal sanction of IFI staff was not in place. This discovery led to IFI withdrawing approximately 50 prosecution cases (initiated across the six RBDs). This has had a significant impact on IFI’s ability to perform its protection function and has also exposed IFI to potential financial loss and legal costs.
Formal delegated sanction of IFI officers to prosecute cases was put in place in June 2023. Prosecutions have recommenced from that date.
Management of dormant accounts funding
Between 2019 and 2021, IFI received a total of €1.18 million from the Dormant Accounts Fund. An internal audit review in January 2022 reported a number of significant weakness in IFI’s administration of this funding. In particular, it was not clear in some cases that expenditure was fully aligned with the purpose of the funding. This led to IFI refunding over €28,000 to the Dormant Accounts Fund in 2022.
A tender competition was carried out in 2019 for a novice angler activation programme with a contract value of €19,750, funded from the Dormant Accounts Fund. A subsequent legal review commissioned by the Board in July 2021 identified a number of shortcomings in the operation of the tender competition. In particular, the review noted that the evaluation panel made serious errors in the manner in which the tender submissions for the programme were evaluated. However, it concluded that the outcome of the tender competition should stand.
An internal audit review in relation to grant funding of €4,000 provided by IFI in March 2021 to Maugherow sea angling club was completed in March 2023. The audit identified significant weaknesses in IFI’s governance framework, risk management and internal controls for the grant programme.
Management of Aasleagh Lodge and cottages
IFI owns a substantial period property called Aasleagh Lodge, built as a fishing lodge adjacent to the Errif river in Mayo. In addition to the lodge, the grounds of the property encompass two self-catering cottages and an IFI operations base. Until 2015, the lodge and cottages were staffed and operated as bed and breakfast/self-catering accommodation, specialising in catering for anglers. In April 2015, following a competitive procurement process, an external operator was appointed to operate the lodge and cottages. The contract was for a period of just under five years, but was terminated the following year when the external operator withdrew from the contract.
Subsequently, an arrangement was entered into with an IFI staff member to operate the cottages as tourism rentals on a profit-share basis. This arrangement continued to operate for five years, and was extended to include the lodge in 2021.
An internal audit review completed in January 2023 of the operation of Aasleagh Lodge and the cottages during the years 2014 to 2022 identified significant weaknesses in IFI’s procurement, contract management and financial management practices.
The deficiencies in control identified by internal audit exposed IFI to financial risk and may not have resulted in optimal value for money outcomes.
Management of business expenses
IFI’s headquarters are located in Citywest, Dublin. In November 2021, the CEO’s work base was changed from Citywest to the IFI regional office in Ballyshannon. The change was made without authorisation by the Board, and there is no evidence of a business case having been prepared to support the change. In June 2023, the Section 18 appointees changed the CEO’s base back to Citywest, with effect from February 2023 (i.e. from the date of their appointment).
Between late 2021 and June 2023, the CEO claimed subsistence payments totalling €7,972 related to periods when he was in Dublin for IFI business purposes. This included €1,041 paid after the Section 18 appointees took up their role, and which was subsequently refunded to IFI.
In 2020, IFI made 53 credit cards available to its staff for use, who spent a combined total of over €148,000 on the cards. By the end of 2024, IFI had reduced the number of credit cards in operation down to 17. Notwithstanding the reduction in the number of credit cards in operation, it remains excessive for an organisation of IFI’s size.
Vehicle fleet management
During 2023, IFI staff had access to a total of 434 vehicles, of which 196 were owned by IFI and 43 were leased on a seasonal basis. Casual business hirings for short periods, and employee-owned vehicles accounted for the other vehicles used. Notwithstanding the nature of IFI’s work, the number of vehicles used appears to be very high.
Uninsured vehicles
Following a road traffic accident in August 2021, IFI discovered that 15 of its hired vehicles, including the vehicle involved in the accident, had been uninsured for a period. All the uninsured vehicles had been hired between 1 June and 27 July 2021. IFI subsequently changed its insurance arrangements so that its vehicles no longer have to be insured on an individual basis.
The total costs incurred by IFI in relation to the August 2021 road traffic incident, including vehicle repair costs, totalled almost €230,000. IFI has stated that it does not anticipate any further legal action against it in respect of the accident.
Vehicle-related benefit-in-kind
Almost a quarter of the vehicles owned by IFI at the end of October 2023 were electric. Between 2019 and 2021, IFI installed electric vehicle charging points at seven of its employees’ homes at a total cost of over €11,700. This was subsequently identified as being taxable as ‘benefit-in-kind’ (BIK) to the employees. IFI has confirmed that it has removed six of the charging points, which are currently warehoused at its offices in Citywest. The charging points are currently being assessed for reuse, or for sale or scrapping should reuse not be possible. The remaining charger was bought out by the IFI staff member.
IFI did not verify with the Office of the Revenue Commissioners (Revenue) in advance of installing the electric vehicle charging points whether BIK arose. Following an internal review, IFI made a payment of tax, including interest and penalties, to Revenue of over €17,600 in 2023.
Separately, in 2019, Revenue undertook a review of IFI’s BIK compliance, particularly the circumstances where pool vehicles were being brought home by IFI staff. Revenue determined that IFI vehicles parked overnight at staff residences are liable to BIK. This resulted in IFI paying a settlement (including interest and penalties) of €278,000 to Revenue in 2019.
Agency staff and remuneration
For several years there has been extensive use of agency staff by IFI resulting in IFI consistently operating above its sanctioned staff numbers. The cost of hiring agency staff in 2021 was €743,000. This had increased to €882,000 for 2022.
Payments totalling over €11,000 were made in 2021 to two agency staff that had been employed for over two years with no break of service. This gave the employees an entitlement to statutory redundancy payments.
Separately, during 2021 and 2022, IFI made other settlement and redundancy payments totalling almost €99,000 to 12 employees.
