The Arts Council’s 2023 Annual Report and Financial Statements were submitted to my Department last summer and brought to my attention on taking office.
Within the annual report are details of an unsuccessful IT system development project at the Arts Council. The accounts include the Comptroller and Auditor General’s report, which notes an overall loss of value in respect of that project estimated at €5.3 million, up to June 2024. The total cost of the project to date is €6.675m. In light of this, the Secretary General of my Department initiated an examination of the Arts Council project that was finalised on 6 February. The detailed examination of the project from its inception, includes a number of key findings and 36 recommendations. The examination found that the Arts Council was not prepared for the scale of the project and did not put in place adequate resources to deliver it. The examination also found that the oversight, monitoring and reporting arrangements by the Department over the lifespan of the project were inadequate. The report of the examination is published on my Department's website.
The Annual Report and Accounts of the Arts Council were considered by the Government and they have now been laid before both Houses of the Oireachtas.
Last week, I met with the Chairperson and the Director of the Arts Council and conveyed my deep concern regarding all aspects of the project. The Arts Council has committed to implementing the recommendations contained in the examination. It has also stated that it was engaging with contractors with a view to seeking legal redress. My Department has put in place a range of actions to address the shortcomings in oversight which were highlighted in the examination. I have also instructed my Department to commence an external review of governance and culture at the Arts Council.