Concerns have been raised with the Dail Public Accounts Committee about payments to senior staff in Stewart's Hospital, Palmerstown, Dublin and about its appointment of a CEO. The hospital cares for people with intellectual disabilities.

Correspondence between the HSE and the PAC indicates that the hospital recently appointed a CEO without approval from the HSE for the appointment or its rate of pay.

The PAC document shows that the PAC received an anonymous letter last year in relation to the Hospital.

The letter raised issues about allowances paid to the Clinical Director and a former CEO and about the appointment process for the current CEO.

According to a recent letter from the HSE to the PAC dealing with concerns raised in the letter, it was confirmed by Stewart's at a meeting with the HSE on January 9 of this year that it had received no approval, nor had it requested approval, to fill the position of CEO.

The hospital confirmed that it also had not received approval to fill this position at a specific rate of pay.

The letter said the Chairperson of Stewart's had now agreed to make an application to the HSE for approval of the appointment.

According to the HSE, other issues raised in the letter include allowances paid to the Hospital's Clinical Director and alowances paid to a former CEO of Stewart's.

The HSE said it would continue to work with Stewart's until issues relating to pay and appointments were satisfactorily resolved.

The health executive is currently engaging with Stewart's and other Section 38 providers, which include voluntary hospitals and agencies such as the CRC, to ensure compliance with pay policy and governance rules.

It is also seeking similar compliance from Section 39 agencies, which include Rehab.

The Irish Times reports today that an audit has found that the Rehab charity used €700,000 in public funding provided under the charitable lotteries scheme on communications, marketing and hospitality costs linked to lobbying.

This funding was provided on the basis it be used for charitable activities only and not for administrative purposes, according to the audit report by the Department of Justice.

Rehab has disputed the findings and said the audit reports demonstrated a 'serious and material misunderstanding' of the charity lottery compensation fund, according to the Irish Times.

Last month, Minister for Justice Alan Shatter cited the findings of the same audit last month when he highlighted low profit margins in Rehab lotteries.