The extent of the lack of financial controls in the Abbey Theatre is expected to be fully revealed for the first time in a consultants' report which may be discussed by the theatre's board today. Deirdre Falvey, Arts Editor, reports.
The theatre commissioned the report by KPMG after it emerged in May that the expected losses for 2004, the theatre's centenary year, were likely to be €1.85 million. This was twice the expected figure.
Asked if the report would be published, the Abbey said last night that it had not been finalised and no comment would be made until it had been received and considered.
There is expected to be a board meeting this week, probably this afternoon, but this was not confirmed by the theatre. The Abbey said the report would be presented to the Arts Council after it was considered by the board. A staff meeting would also be held.
It is thought there is some tension both within the theatre and between it and the Arts Council, about how the report should be handled. There may also be issues in the report that require legal consultation.
The Abbey commissioned KPMG to review the theatre's accounting and financial control systems at management and governance level. It is believed that KPMG conducted a wide-ranging examination of last year's accounts and the systems in place to manage them.
Detailed examinations are likely to have been made of the accounts relating to the various productions staged last year, including one of the biggest hits, The Shaughraun. This was an expensive show to put on because of its elaborate set and costumes.
It is understood it cost more than €250,000 to stage and contributed to the operating losses for 2004, despite it being such a popular success.
The consultants are also expected to have looked at how the costs for the national tour of The Playboy of the Western World were only included in the accounts at a late stage.
The theatre's Book of Days, produced to celebrate its centenary last year, is also believed to have lost money.
The report is likely to show that widespread systemic failure, lack of monitoring of expenditure and a reluctance to address the issues are at the root of the financial crisis.
It is understood a number of different financial software systems are used by the theatre, but they are not compatible with each other.