A report into the finances of the Irish Blood Transfusion Service has found that a failure to budget properly contributed to a €4.5m deficit in the year 2000.
The Comptroller and Auditor General's report also said the IBTS had severe cash-flow problems during 2000 and 2001, which resulted in it paying interest penalties of more than €320,000 to suppliers.
Legal costs at the Lindsay Tribunal, as well as the Government's failure to reimburse capital expenses, contributed to the cash-flow problems, it said.
Meanwhile, the report also revealed that defects in a computerised system being introduced by the IBTS have led to a delay of almost four years and a doubling of the cost of the system to €9m.