Arts Council Faces Accountability Crisis After €6.5m IT Project Failure

The cancellation of a €6.5 million IT project by the Arts Council has raised serious concerns regarding accountability and governance within the agency. A report by the Dáil Public Accounts Committee describes persistent weaknesses that contributed to the project’s abrupt termination before its delivery in 2022. This situation has resulted in significant financial losses to taxpayers, estimated at €5.3 million, according to the Comptroller and Auditor General.

The review highlighted ongoing issues related to “governance, performance measurement, and accountability” that remain unresolved following the project’s collapse. The report emphasizes the need for the development of stronger oversight mechanisms to ensure that similar issues are identified and escalated in a timely manner.

One of the recommendations includes timely filing of financial statements for State agencies to promote transparency. It notes that the Arts Council’s 2023 financial statements were not submitted to the Oireachtas concurrently with their presentation to the Department of Arts and Culture in July 2024. This delay has drawn criticism and calls for enhanced governance practices.

In addition to improved oversight, the report advocates for “enhanced governance and approval procedures” concerning capital expenditure. These measures aim to ensure that all departments and agencies deliver clear value for money to the public. The Arts Council has been urged to report back to the Public Accounts Committee on the progress of these new governance procedures.

The Arts Council is primarily funded by the State, receiving just under €134 million in taxpayer funding in 2023. The failed IT project was initially budgeted at €3 million, but the costs ballooned before its cancellation. While most of the funds were lost, approximately €1.2 million is believed to be salvageable for use in a new replacement system.

The issue gained prominence during the tenure of former arts minister Catherine Martin. Last May, Maura McGrath, the council’s chair who was appointed in June 2024, voiced her concerns during a Public Accounts Committee meeting. She argued that small, specialized State bodies like the Arts Council are often ill-equipped to manage complex IT projects independently.

In the Arts Council’s recently published annual report for 2024, McGrath expressed her “deep concern” regarding the failure of the council’s business transformation program and the associated write-down of €5.3 million reflected in its 2023 accounts. “I was not expecting to be dealing with this when I took up my position,” she stated, committing to rigorously pursue any necessary reforms at the council.

The report from the Dáil Public Accounts Committee serves as a critical reminder of the need for robust governance frameworks to prevent similar financial missteps in the future and to uphold the integrity of public funding in the arts sector.