Originally Posted by
Junior
I 'like' the response on the Grants to member clubs and leagues. Massaging of the numbers would be a polite way of putting it!
From the Times...
The accounts also show that the FAI cut the grant aid paid to soccer clubs and leagues around the State by €377,000 last year due largely to the spiralling costs of servicing its debts from the redevelopment of the Aviva Stadium.....
......This resulted in the grant aid paid to affiliates being reduced to just over €1 million last year from €1.4 million in 2010.
From the Independent..
Meanwhile, the FAI last night denied it had cut grants to clubs and leagues by €377,000 in 2011. This figure was contained in an Irish Times report which said it had obtained a copy of the association's accounts to be presented to the AGM on July 21.......
.......No comment was forthcoming from the FAI on the salary amounts mentioned, but a brief statement refuted the notion that grants had been reduced in 2011, stating: "The FAI has not cut club grants by €377,000 between 2011 and 2010.
"In reality, the grants paid out amounted to €1.2m in both 2010 and 2011 and this can be vouched by the independent auditors.
"Under the relevant line item (development and operating grants to affiliates), the accounts show a lower amount in 2011 due to an accrual or over provision reported in the 2010 accounts which was actually paid out to clubs and leagues in 2011. This can also be vouched by the independent auditors."
To 'over provide' in 2010 by €0.2m (17% of the €1.2m payment) seems excessive and for it to be signed off by the auditors a little bizarre. For the auditors to sign off on a €1.4m cost in 2010 I would suggest that was the true cost of grants in 2010 that had been presented to them by the FAI Finance team (whether that money had actually been passed down at that point is largely irrelevant and simply down to timing of cash exchanging hands).
As we move on to 2011 and the FAI realise they dont have the cash to meet a similar €1.4m commitment for grants in 2010 they simply hand over less money (cut grants) and release the 'over accrual' from 2010.
Either way something is amiss imo. Either 2010 accounts were misleading to suggest €1.4m of grants were being handed down to member clubs or the explanation for the 2011 reduction is also misleading (quite materially imo).