ABC report raises audit concerns about RLSSAQ

The ABC TV's 7.30 program has reported on an audit of the Royal Life Saving Society Australia Queensland branch (RLSSAQ) that it claims reveals serious governance and management issues within the organisation.
The ABC allege that the report questions whether the business dealings between the RLSSAQ and Deputy President and former Executive Director Les Mole could present a conflict of interest.
The revelations originate from a previously confidential 2010 audit commissioned by the Queensland Department of Sport and Recreation into the RLSSAQ.
The audit highlights issues in relation to:
ï¾ Adherence to appropriate purchasing policy and procedures;
ï¾ The documentation of sponsorship arrangements; and
ï¾ The organisation's conflict of interest policy.
Mole, who has more than 40 years experience in the life saving movement and is the current National President of Royal Life Saving Society of Australia, is at the centre of many of the audit's concerns.
Mole's aquatic supply company, Vici, is a major sponsor of the society but the report suggests that the company does not pay any money for the privilege.
The audit found sponsors pay by supplying products, brochures and banners, general maintenance, advice and discount on storage.
Mole has also had commercial dealings with RLSSQ, owning two companies that have done business with it while he also brokered a property bought by RLSSAQ.
The auditor asked the RLSSAQ what policies it had to obtain quotes for the purchase of goods and services, and if there was "any possibility Vici has provided goods to RLSSQ that may have been 'inflated' or higher prices when compared to those offered by alternative suppliers".
No response was provided.
In its recommendations, the audit gave a "high priority" to the society conducting "an immediate review of its purchasing policy and procedures".
Another topic the auditor examined was the society's 2008 purchase of the Burpengary Aquatic Centre, north of Brisbane, for $1.95 million.
When the RLSSAQ board met to decide whether to buy the centre, then-treasurer Mr Mole did not take part and "excused himself from the meeting after declaring he had a conflict of interest in the business opportunity".
The board decided it would offer $1.8 million for the centre but would go as high as $2 million.
In relation to the sale, the audit says "given the substantial investment made and the fact that the business is generating losses for the organisation, it is essential that a further assessment of this purchase be considered and undertaken".
Subsequent media reports have suggested that Queensland Community Safety Minister Jack Dempsey will reassess any future Queensland Governmet funding to RLSSAQ.
Minister Dempsey said the new Queensland Government was not aware of the audit, but would reassess future funds before taxpayers' money was handed over.
Minister Dempsey is apparently aslo asking for a full briefing on his department's past funding arrangements with the Society and Queensland's Auditor-General is considering an investigation into the RLSSAQ.