<p>
	Nearly 50 charities which get a share in the HSE&#39;s funding of more than &euro;3bn annually are in danger of being downgraded, it has emerged.</p>
<p>
	&nbsp;</p>
<p>
	Charity regulator, John Farrelly said some 47 of these so called section 39 agencies - which are funded by the HSE and provide a range of services in areas like disability and mental health - have failed to report to his office.</p>
<p>
	The former disgraced suicide bereavement charity Console which was at the centre of financial scandal in recent months was a Section 39 agency.</p>
<p>
	It was revealed that the Console founder Paul Kelly squandered charity funds on salaries, care and holidays.</p>
<p>
	Mr Farrelly said there are 778 of these agencies and 530 are now in compliance.</p>
<p>
	But 19pc of these have still not complied with the full reporting regulation covering registration and disclosure, he told the Oireachtas health committee.</p>
<p>
	&quot;If this remains the case they will lose their charitable status,&quot; he warned.</p>
<p>
	Mr Farrelly was making his first appearance before the committee in the wake of the Console scandal.</p>
<p>
	&quot;As a regulator, I hold the view that any organisation which procures services on behalf of the State has a legal and moral responsibility to ensure they are delivered to the highest standards.&quot;</p>
<p>
	He warned that &quot;public money is sacred and if there is any indication of mismanagement or inappropriate spending the funding bodies must intervene and take appropriate action.&quot;</p>
<p>
	The HSE and other funders have to be vigilant, he stressed.</p>
<p>
	He said there is now a &#39;concerns email address&#39; and a phone line to his office which are constantly monitored where people who have information about a charity they want to disclose can contact.</p>
<p>
	The identity of the whistle-blower is kept private.</p>
<p>
	All information is risk assessed and in some cases may be more appropriate for the garda&iacute; to deal with.</p>
<p>
	Asked about the role of trustees in charities he said there is a need to give them support.</p>
<p>
	&quot;They are well intentioned but they may not be not clear on when they should make the right call, he told the committee.</p>
<p>
	There are &quot; well intentioned people out there who are badly informed and badly intentioned people who are well informed.&quot;</p>
<p>
	He called for charities to be as transparent as possible with the public and said their accounting should be easily understood.</p>
<p>
	Asked about the size of some charity chief&#39;s salaries he said it should be proportionate.</p>
<p>
	No &quot;red light&quot; about the extent of salaries had gone off yet but &quot;that may change,&quot; he added.</p>
<p>
	It is a matter for charity trustees to ensure the salary is not impacting on funding for activities.</p>
<p>
	His officials will be quizzing trustees on whether their chief&#39;s salary is &quot;value for money,&quot; he added.</p>
<p>
	He is planning to hire people with specialist skills.</p>
<p>
	&nbsp;</p>
<p>
	(Published by the Irish Independent on the 22nd September 2016)</p>
<p>
	<a href="http://www.independent.ie/irish-news/health/regulator-warns-that-47-charities-risk-downgrade-35069483.html">http://www.independent.ie/irish-news/health/regulator-warns-that-47-charities-risk-downgrade-35069483.html</a></p>
