An independent review has found significant failings in the governance and oversight of the Arts Council, triggered by a troubled IT upgrade project. The project, initiated in 2018, ultimately cost the State €6.7 million before being abandoned, resulting in an overall loss of €5.3 million for the council.
Governance and Oversight Concerns
The review, commissioned by the Department of Culture, identified failures at both board and management levels. It highlighted an “immature risk culture” and “limited board oversight” as key contributors to the project’s difficulties. The committee, chaired by Professor Niamh Brennan, made 149 recommendations for improvement.
The report stressed the need for legislative changes to allow for a more diverse Arts Council board, prioritizing skills in areas like governance, human resources, and law – beyond simply expertise in the arts. The review also noted that the Arts Council’s initial business case for the project underestimated costs, failing to account for VAT and related expenses.
Project Challenges
The committee found that the project’s objectives and scale shifted significantly during its development, and the Arts Council lacked a clear vision from the outset. These changes were not adequately assessed for risk. The review also pointed out that managing the project during the Covid-19 pandemic presented additional challenges.
The review involved interviews with 41 stakeholders and a review of 1,930 documents. While the Arts Council provided requested documentation, the committee noted that some documents were initially withheld and obtained from other sources. A pattern of decisions bypassing board approval and overly detailed, difficult-to-interpret reports to the board were also identified.
What’s Next?
Minister for Culture Patrick O’Donovan is expected to present the review’s findings to Cabinet on Tuesday. The Government could consider establishing a “pool of expertise” to assist public-sector bodies with similar projects. Legislative changes to the composition of the Arts Council board are also a possibility. Maura McGrath, chair of the Arts Council, has stated she will “rigorously” pursue necessary reforms.
Frequently Asked Questions
What prompted this review?
The independent review was ordered following the abandonment of a controversial IT upgrade initiative undertaken by the Arts Council, which resulted in a significant financial loss to the State.
What specific skills are being sought for the Arts Council board?
The expert advisory group recommended that the Arts Council board include members with skills in governance, human resources, and law, in addition to knowledge of the arts.
What was the total cost of the abandoned IT project?
The IT project initially budgeted at €3 million ultimately reached a cost of €6.7 million before being abandoned, resulting in an overall loss of €5.3 million for the Arts Council.
Given the scale of the issues identified in this review, what role should independent oversight play in ensuring accountability for public funds?
