Audit finds €120k Cork city marathon shortfall

An event management company, which formerly organised the Cork City Marathon, withheld more than €120,000 from the city council according to a local government audit, with an auditor saying that the matter was handled poorly by council management.

An internal audit review is going to be undertaken into the matter, which occurred two and a half years ago, council chief executive Valerie O’Sullivan told the Local Government Audit Service (LGAS), an independent body under the Department of Housing, Local Government and Heritage that audits local authorities.

A yet-unpublished LGAS audit report into Cork City Council in 2024 says: “Following a tender process held in 2020, Cork City Council outsourced the event management services for the Cork City Marathon.

“On 12 December 2023, the service provider formally notified the council that it would terminate the contract on January 12, 2024. Management advised that approximately €122k of entry fees were withheld by the contractor but decided not to pursue claiming these back.”

Concerns

The auditor outlined four concerns they had with the matter, firstly that the overall payments to the contractor exceeded the terms of the signed contract.

Additionally, the bank account designated for receiving entry fees did not require the council’s authorisation for withdrawals, and entry fees continued to be paid into this bank account after the contractor informed the council that they were discontinuing the service.

The auditor added: “Management’s decisions and actions regarding this matter were not adequately documented.

“Those charged with governance should consider a thorough review of the terms and handling of this matter.”

Ms O’Sullivan said: “The auditor’s comments are noted.

“In order to review and learn from this process, an internal audit review will be undertaken. This will incorporate the concerns highlighted by the local government auditor.”

In early 2024, Cork City Council confirmed that it will manage the Cork City Marathon that year, after Davis Event Agency (DEA), which had been running the event since 2019, cut ties.

DEA “exercised their right to terminate their contract in accordance with its terms and without liability for compensation or damages”, and Cork City Council had no prior knowledge that the contract would be terminated.

Managed

Cork City Council previously managed the marathon from 2007 to 2019, before DEA took over the reins, and has been managing it since.

A council spokesperson told The Echo: “Cork City Council assumed direct delivery of Cork City Marathon under the direction of a new team in 2024. The event enhances sporting, tourism, and recreation opportunities for the city.

“Cork City Council collaborates with multiple agencies including emergency services, volunteers, sporting bodies, commercial sponsors, and city stakeholders to ensure a safe and enjoyable marathon experience for all.

“The new team have successfully grown participant numbers since assuming direct delivery, with almost 12,000 participants expected to take part across the three events in 2026.

“Cork City Council is committed to the long-term sustainability of the event for the city and will continue to directly deliver Cork City Marathon.”

The Echo also contacted Davis Event Agency for comment.