Investigation finds £26,000 Welcome to Yorkshire expenses claimed for ‘personal’ items

An independent investigation has found £26,000 worth of expenses at Welcome to Yorkshire were claimed for personal items which did not benefit the company.

The report by accountants BDO has been made public today, together with a separate investigation by Clarion Solicitors which concentrated on the culture, governance procedures and management of the troubled tourism body.

Both investigations followed the departure of the company’s chief executive, Sir Gary Verity, who stepped down earlier this year amidst concerns raised about his expenses and his behaviour toward staff.

Sir Gary said he was leaving due to health and personal reasons, but at the time it was reported he had voluntarily paid back £40,000 to the organisation upon his departure.

The Board of Welcome to Yorkshire has said it accepts the findings of both investigations.

Keith Stewart, interim Chairman, said: “I would like to take this opportunity to apologise on behalf of the organisation to those who have been affected by actions and mistakes made. Where we have let people down, we are truly sorry.”

The BDO Expenses report states: “Of the £900,000 of expenses reviewed, we identified expenses in the sum of £26,000, which we consider to be personal.

“We are not in a position to conclude whether the majority of material expense claims were reasonable and proportionate. This is because Welcome to Yorkshire did not have specific guidelines or polices to govern entertainment expenses.

“In recent years Welcome to Yorkshire has seen significant growth in its profile. The support functions, systems of internal control and governance have not developed at a commensurate rate.”

The investigators note that explanatory information on one £6,600 invoice “did not reflect the service that was provided to Welcome to Yorkshire.”

They add: “We are aware that this matter was known, it was investigated at the time and the sum was subsequently repaid to Welcome to Yorkshire.”

The report by Clarion states many of the people who participated in its investigation voiced concerns about Sir Gary.

It adds: “Unfortunately, many participants stated they felt unable to raise concerns at the relevant time, although some were concerned about the behaviour of Sir Gary Verity.

“We found the culture of Welcome to Yorkshire was not open or focused on employee wellbeing, development or engagement.

“The perceived inability to effect cultural change and address behavioural concerns has inevitably, negatively impacted how the senior management team are perceived by some other employees. There is a lack of trust which must be rebuilt.”

The Board of Welcome to Yorkshire has said it accepts the findings of both investigations.

Keith Stewart, interim Chairman, added: “Both reports have identified a number of areas which require improvement and instances where the leadership of the organisation has fallen short of the high standards not only we, but our brilliant team, members, funding partners and stakeholders expect.

“One of the critical findings from both reports was that whilst Welcome to Yorkshire had processes in place around expenses and HR, unfortunately these weren’t always followed properly or implemented in the most appropriate way and there was a lack of oversight at the most senior level.

“We have undertaken a number of improvements in these areas and have committed to continue to do so.

“In addition, the report into culture, governance procedures and management of the organisation found behavioural concerns were not always addressed, and that our culture was not always open or focused on employee wellbeing, development or engagement.

“We have introduced a number of new measures, including employing a head of HR, to improve this.

“The report into expenses identified some which it felt were for personal rather than for business uses. These have all been repaid. We have prioritised a recommendation for changes to our Board, including a full audit and refresh of its membership by April 2020.

“We know it has been an incredibly difficult period for everyone involved, particularly our amazing team, who continue to deliver the vital work that Welcome to Yorkshire does on a daily basis.

“We would like to assure all our staff, former staff and partners that the measures we have already put in place, and that will continue to be introduced, will ensure the same things cannot happen again.”

He said the company’s Board would have a “full refresh” by April 2020, noting the body would also be made more transparent.

And Stewart said all senior management team and Board expenses over £250 will be published on the Welcome to Yorkshire website.

A whistle-blowing policy is being written, which staff will be briefed on how to use, while the BDO report into expenses has been passed to West Yorkshire Police.

Welcome to Yorkshire said a head-hunter has been appointed to help with the search for a new chief executive and it expects to have someone in place by April.