The Arts Council commits to implementing recommendations arising from examination undertaken by Department of Arts, Media, Communications, Culture and Sport
The Arts Council distributes funding to artists and arts organisations across Ireland. To do so, we operate an online application and payment system, which has been in place since 2008. In 2023, 90% of our €143m expenditure directly supported artists and the public.
In 2018, recognising that our ageing online systems were presenting challenges and required improvement, we requested sanction to develop new IT systems, to improve user experience and integrate five existing business systems into one. In 2019, following approval of capital funding, development of these systems commenced.
This Business Transformation Programme (BTP) was ambitious in nature, an exceptional project for the Arts Council, and two IT contractors were procured through the public procurement process to help us deliver this complex objective. The BTP project was not delivered.
The Arts Council acknowledges the significant expenditure on this project and the associated write-off of this expenditure of €5.3m. We greatly regret that this ambitious and complex project was not completed. We take our role as custodian of public money very seriously and for that reason we are engaging with our contractors with a view to seeking legal redress.
Maura McGrath, Chair said: “As the newly appointed Chairperson of the Arts Council I am deeply concerned at the non-delivery of this project and the costs incurred. I have assured Minister O'Donovan that whatever measures and reforms are required will be rigorously pursued by me, the Arts Council Board and the executive. We will work with the Department to address this issue and ensure it cannot recur, and I have already initiated an external governance review. We, at the Arts Council, have been given funds to invest in the arts and support artists. This is the public trust we hold, and the trust I am determined to uphold.”
Maureen Kennelly, Director said: “It was always our intention to deliver the best possible service for artists and arts organisations by replacing our ageing IT systems. The Arts Council made decisions based on external advice and expertise throughout this project. We greatly regret that this ambitious and complex project was not completed and we are engaging with the contractors with a view to seeking legal redress. We have provided all information to the Department to ensure their examination of this project is comprehensive and we are engaging with the implementation of the recommendations. The need for a new system remains and I am determined to provide an improved grants management system for the arts sector.”
The Arts Council considers the following factors to have contributed significantly to the non-delivery of the project:
Firstly, the contractors, appointed through the public procurement process, delivered substandard work
Thirdly, on delivery of the product, which was not fit for purpose, we were advised that the work could be remedied and so a decision was taken to continue the Programme to protect initial investment.
The development work that followed and ongoing reviews revealed that the deficiencies and bugs were so fundamental, it was not cost effective to continue. In line with our project governance, we evaluated and as a result, the project was paused in late 2023 and following a cost benefit analysis it was decided to discontinue it in June 2024.
We have worked and continue to work closely with the Office of the Government Chief Information Officer (OGCIO) as well as with our line Department. The Arts Council’s ICT team has now been significantly strengthened, including the appointment of two senior ICT experts and in addition we have established a new Project Management Office.
We can keep and re-use some work already done on business processes and technical deliverables, relating to user requirements, data migration, integration of payment system, process maps, content governance, and test strategy. The total expenditure was €6.675m, some of which was withheld, of which work with a value of €1.2m is reusable. We are withholding monies and are engaging with the contractors with a view to seeking legal redress.
The need for an upgraded IT system still exists, particularly an online application system for artists and arts organisation. We remain committed to finding an alternative solution.
View the 2023 Annual Report here.
If you have any comments or questions, please contact feedback@artscouncil.ie.