Significant cuts at Bóthar in 2024 helped the charity reduce its losses last year by 64.5%, cutting them to €100,854, as it continued to recover from the financial scandal that hit it in 2021.
New accounts for County Limerick charity Bóthar CLG show its losses fell from €282,824 in 2023 to €100,854 last year as it cut its costs by 40% from €1.05m to €628,852 in the 12 months to the end of June.
The charity's income continued to decline last year, falling 32% from €768,595 to €525,739. That's comparable to pre-scandal and pre-COVID-19 levels of €4.6 million in 2019.
Bóthar's former CEO has admitted to embezzling funds from the organisation and said he gave tens of thousands of euros in cash to the two founders.
Cuts at the charity over the past three years have included redundancies, while Bóthar has put its Dublin and Limerick properties up for sale as it continues to deal with the fallout from its 2021 financial scandal.
New reports signed by the board on March 25 revealed that a criminal investigation launched by police following a formal complaint about historical practices was ongoing, while a separate investigation by the Charity Regulatory Authority into past financial irregularities had been suspended pending the outcome of the police investigation.
The Directors report that extraordinary but necessary cost-cutting measures have been taken over the last three financial periods, including cutting back on certain aspects of the organisation's operations.
They argue that “these steps were difficult for the organization, but necessary to restore its stability and regain public trust.”
The directors note that “these measures will allow the organization to return to its core business and restructure its programmatic work.”
Regarding the charity's going concern status, its management states that “Bóthar continues to implement cost-cutting measures where necessary.”
They add: “The target of achieving a low deficit in the financial year ending 2024 has been successfully achieved, and the company’s next target is to break even in 2025.”
The reports say the organisation's progress in financial years 2022, 2023 and 2024 “demonstrates significant progress towards full compliance with corporate governance standards, particularly the requirements of the Charities Regulatory Authority”.
The note said: “This process has had a significant impact on both the company's finances and reputation, resulting in the sale of its premises in Dublin and Limerick.
“While the company continues its charitable activities, the associated overhead costs are putting significant pressure on its reserves.
Directors say the sale of Limerick property last year “led to an increase in cash”. Cash resources rose from €261,888 to €465,232 in 2024.
The memo states: “Given the significant reduction in expenses in recent years, the board intends to use the funds to further marketing campaigns and fund projects to increase awareness of the company's work and, through ongoing fundraising, ensure the future of the organization's mission.”
The number of employees decreased from four to three, as personnel costs fell from €308,248 to €224,968.
Donations fell from €284,695 in 2023 to €273,476 last year, while inheritance income rose from €142,900 to €184,263. In-kind donations fell from €341,000 to €68,000.
Bóthar's alleged embezzlement first came to public attention in 2021 when Bóthar filed a High Court injunction against its former CEO, David Moloney.
Alleged irregularities at Bóthar first came to light in the 2019 financial year from an anonymous whistleblower who reported improper travel expenses.
Sourse: breakingnews.ie
