A report of the Interim Administrator to the Central Remedial Clinic (CRC) has found the Friends and Supporters of the CRC was established as a separate company to maximise its level of funding from the HSE.

The administrator's report says the inference of this was: "if the HSE had been aware of the level of funds available, it may have reduced its annual allocation to the CRC".

The administrator called for all the functions of the Friends and Supporters to be transferred to the CRC as soon as possible and said the company should be wound up.

Among issues the report say still need to be addressed include the executive team structure, pay, and the full application of public sector pay cuts to former CEO Paul Kiely.

There has been a major public controversy over Mr Kiely's €740,000 retirement package. The administrator's report says that overpaid monies should be repaid or recovered.

The administrator says inhis report the CRC Board appeared to be more concerned about the clinic's independence and the attention that revealing the level of the former CEO Mr Kiely's pay would attract, rather than the level of remuneration itself.

A number of undesirable governance practices are identified which are to be addressed by the CRC and the Friends and Supporters, the report says.

Despite the CEO's pay being the most serious governance issue to be faced by the CRC Board, it chose not to inform the HSE of the proposed package, the report notes.

A number of undesirable governance practices are identified which are to be addressed by the CRC and the Friends and Supporters, the report says.

It says the donation by the Friends group of €700,000 to the CRC in 2013, to enable the clinic fund the severance agreement entered into with its former CEO Mr Kiely, and an unsecured interest free long term loan of €3 million to the CRC to assist in financing its Care Trust's pension liabilities had little or no narrative in board minutes.

The report says losses sustained by the CRC Medical Devices firm will be a drain on the resources of the Friends and Supporters and on the funds raised for the benefit of the CRC.

In the past, the CRC operated an executive payroll in addition to a general payroll, the report reveals

The relport says ast year, the Friends and Supporters recorded lottery proceeds of €1.7 million from The Care Trust.

The administrator says that irrespective of who owns the shares in The Care Trust, the beneficiary, which is the CRC, should get the funds generated from the lotteries directly from The Care Trust.

The report says that following changes made, a new Board and CEO are in place at the CRC and it has sound systems of financial control in place, with no issues of concern identified in the audit of the 2013 accounts.

The administrator says that at no stage did he find it necessary to refer any matter to any third party or authority and the overall standard of record-keeping and the normal financial transactions were properly supported and vouched.