Open letter to the members of Basketball Ireland

Legacy issue finally resolved

As you know, we are now at the half way point in our seven year plan to pay off the serious over-runs on current spending which emerged in 2009. Since that time, the Association has transformed itself with a new Board of Directors to oversee the business of Basketball, a new Council to lead the development and regulation of the game of Basketball, and a new Secretary General to lead the work of the staff at headquarters at the National Basketball Arena.
One outstanding issue from the past is the Community Hoops Programme. In the period from 1999 to 2006, BI received grants totalling €1.753 million from the Department of Sport for this programme. While some of this money was spent on providing Hoops around Ireland, most of the money was spent on development programmes to maximise the use of these and other basketball facilities throughout the country. The then management and Board of BI were under the impression that this was acceptable to the Department.
In 2009, the Department began an audit on this programme and discovered that while all of the grant money was spent on basketball, €1.24 million of the Capital grant had been spent on development programmes for basketball rather than on the purchase of equipment. After the Department of Sport was moved into the Department of Transport, Tourism and Sport (DTTS), an internal DTTS audit report confirmed this position.
The DTTS has now informed us of the sanctions which it is imposing on BI for the serious error of using Capital grants for current expenditure. In its written decision, the DTTS notes “as mitigating circumstances” that “the grant-aid diverted from the Community Hoops programme monies were spent on other basketball-related activities”, and it also takes into account “the important work of BI and its efforts to regularise its financial position and corporate structure since this case was discovered”, before noting that BI must repay 10% of the €1.24 million and will not be permitted to apply for capital funding for the next five years. In addition, a provisional 2008 grant for the Arena will not now be forthcoming.
The Board of BI is very disappointed at this decision of the DTTS (which will hamper the progress which has been made since 2009 and which will delay much needed work on the National Basketball Arena) but it notes that the monetary sanction could have been much bigger and that the capital programme ban could have been for much longer. The Board has therefore taken the view that now is the time to draw a line in the sand with regard to this long-standing legacy issue and has agreed a schedule for the repayment of the €124,000. The Board has also decided to absorb the necessary repayments within our current five-year projections without further imposition on our members.
Meanwhile, the matter will be outlined and discussed in further detail at the AGM in June.

Thank you for your ongoing support.

Paul Meany (Chairman, Basketball Ireland)