Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698135959727.pdf (Ireland)
An Cheim Computer Sei*vices Limited Directors Report and Audited Financial Statements for the Year Ended 31 August 2016 An Cheim Computer Services Limited Index Directors and other information Statement on Internal Control Directors’ Report Independent Auditors’Report Statement of Income and Expenditure and Retained Revenue Reserves Statement of Financial Position Notes on and forming part of the financial statements Page 1 2-5 6-8 9-10 11 12 13-18 An Cheim Computer Services Limited Directors and Other Information As At31 August 2016 Directors: Secretary: Registered Office: Bankers: Bernard Muilarkey (Chairperson) Mary Kerr Joseph Ryan Noel O’Connor Tom Kelly Noel O’Connor C/0 Dublin Institute ofTechnolog>' 143 - 149 Rathmines Road Dublin 6 Allied Irish Banks Pic 1/4 Lower Baggol Street Dublin 2 Registered number: 407364 Auditor: Comptroller and Auditor General 3A Mayor Street Upper Dublin 1 Charity Number; CHY 17291 .
ANCHEIM STATEMENT ON INTERNAL CONTROL Responsibility fortlie internal control system On behalf of the Board of Directors of An Cheim Computer Services Limited (the "Company"), the Chairman acknowledges the responsibility of the Board for ensuring that a robust system of risk management and internal control is in place in the Company.
The system is designed to manage rather than eliminate risk, and provides reasonable though not absolute assurance that assets are safeguarded, transactions authorised and properly recorded, and that material errors or irregularities are either prevented or would be detected in a timely period.
Key Control Procedures (i) Management Responsibilities As set out above, the Board of Directors are responsible for the system of internal control and risk management and the system has been reviewed as evidenced below under the caption "Annual Review of Controls".

The audit committee was incorporated into the Board of Directors in February 2016 and the Boat'd of Directors assumed the duties.
(ii) Internal Financial Control The Board of Directors has put in place a system of internal financial control based on a framework of regular provision of information to management, administrative procedures including segregation of duties, and a system of delegation and accountability.
It includes: • • Comprehensive budgeting system with an annual budget which is reviewed and agreed by the Board ofDirectors, Regular review by the Board of Directors of periodic and annual financial reports which indicate financial performance against forecast.

- Development of targets to measure financial and other performance.

• • Development of defined capital investment control guidelines, and Development of formal project management disciplines.
(iii) Reporting framework The Company utilises the Internal Audit function of DIT ("Internal Audit").

Internal Audit operates in accordance with the Code of Governance of Institutes of Technology in Ireland.

The work of Internal Audit is informed by analysis of the risk to which the Company is exposed, and annual internal audit plans are based on this analysis.

The plans are approved by the Board ofDirectors.


2 ANCHEIM Wind Down of An Cheim The Company was established as a shared service support to the Institutes of Technology (loTs).

The main focus of the Company was the delivery of a range of technology-related systems (MIS systems) to support human resources, student records, library management and finance needs across the loTs.
The Company was incorporated in 2006 with its own Board of Directors and a Chief Executive Officer with an amiual budget from the HEA.

In 2013, as part of the consolidation of state agencies and also to provide an opportunity for greater synergies within the wider higher education sector, it was agreed to transfer the services of An Cheim to a new company (EduCampus Computer Services Ltd (EduCarapus)) to be formed as a subsidiary of HEAnet, and to wind down An Cheim.
The process of gaming all the necessary governance approvals to establish EduCampus (with charitable status) and of transferring An Cheim services and assets to it was undertaken through 2014 and 2015.

A key objective for all parties was to enswe the continuity of service for core business applications across the loTs and, accordingly, the smooth transfer of activities, staff and resources from An Cheim to EduCampus was seen as being very important.
On October 1st, 2015 the HEA transferred all funding of activities from An Cheim to EduCampus, and all suppliers and clients of An Cheim were informed.

Five of the eight An Cheim staff transferred to EduCampus and three returned to DIT.

The CEO of An Cheim remained as CEO to direct the contract novation process and the wind up of the company.

An Cheim retained the services of a contract member of staff on a inonth-by- month basis to assist in the wind-up process.
The activities, sendees, five staff and all material contracts have transferred successfully from An Cheim to EduCampus and service to all loTs has been maintained.

It is envisaged that the voluntary wind-up process of the Company will be fully concluded during 2017.

All expenditure has been met and the remaining cash reserves will transfer to EduCampus in due course.
Review of Expenditure Control Procedures During late 2015, the Board of Directors identified that, while the Company was being wound down, expenditure in relation to outsourced IT services continued to arise, This expenditure and the need for same was queried by the Board.

The CEO informed the Board that such expenditure was necessary to facilitate system-wide upgrades to be made in the future.
The Board ceased any further such expenditure, sought a more detailed explanation from the CEO and obtained the services of an independent consultant to better inform itself of this expenditure, in particular as it related to an IT company called DataKi’aft’.

This external independent consultant undertook a Review of expenditure and related procurement and, witli the approval of the Board, brought in specialist expertise to evaluate technical outputs created in the course of procurement.
* DataKraft is the trading name of J Lefebvre Ltd 3 ANCHEIM In December 2016 the Board of Directors received and considered the Review and accepted the findings of tlie Review in its entirety.

These findings identified that, after years of scarce resourcing, there was an overwhelming need for An Cheim to upgrade tlie MIS systems in the loTs and that undertaking such upgrades required significant effort and investment.
However, the mandate for this work was not clear and the Board of Directors was not properly informed given the wind-down mode of the company.

The Review identified that for such a large project, it is unusual that a comprehensive and detailed project plan was not prepared.

The Review also identifies that there was no available documentation of project oversight and that such expected oversight was not apparent.
The Review further questions, the fact tliat so much work was completed without close involvement of the body that would be the beneficiary (i.e.

EduCampus).

The Review also identifies the reluctance of certain individuals to appropriately engage with tlie Review Process.

Procurement In the terms of reference for tlie Review above, the Board of the Company specifically requested a focus on procurement of services in respect of DataKraft.
Three separate procurement processes were conducted concuiTently on eTenders and contracts were awarded in respect of each of these to DataKraft for a total of €143,910 (€47,970 for each contract).

In early 2015, a series of change control documents expanded the scope of the projects and resulted in substantially greater work being completed.

While tlie change control notices specified a daily rate for additional work, they did not provide any indication of the expected total cost of the additional work.
Total payments to DataKraft for the financial year ended 31®’ August 2016 amounted to €941,000.

While all work completed and related invoices were approved by An Cheim staff (including the CEO), competitive tendering processes should have been undertaken in respect of tlie extension of tlie original contracts to comply with all aspects of Public Procurement Guidelines.

As identified above, the Board has reviewed the procedures involved in tlie procurement of these contracts.
As part of the Review an independent technical evaluation of the outputs from these contracts was undertaken.

This additional Teclinical Evaluation concluded that there was some value in these outputs and, subsequently, lliese outputs have been transferred to DIT and have been made available to EduCampus.

It is also noted that no deficit position has been incurred as a result of this procurement issue.
However, the Technical Evaluation also noted that tliere was no evidence of any business cases, cost benefits analyses and/or specifications having been prepared for each deliverable.

The Technical Evaluation further noted that when analysing the deliverables, the time spent on these appears to be excessive and the daily rate is relatively liigh in relation to other daily rales charged during that period.
Having accepted the findings of the Review, the Board of Directors determined that tliere was no value to be gained by ftirther investigation into these contracts.

Transfer of Staff All staff (employees) engaged in the Company (8 in total) were employed by DIT and assigned to the Company.

Arising from the decision to transfer operations from the Company to EduCampus, 5 staff members transferred to EduCampus and 3 staff members returned to DIT.
At the Board meeting of the Company in May 2015, it was agreed to recommend to DIT that liistoric staff grading anomalies in An Cheim should be regularised prior to the transfer of staff to EduCampus and the CEO of the Company was requested to work with DIT HR Department to achieve a satisfactoiy resolution.

This consultation with DIT HR Department took place and a number of staff (3) had their positions regularised.

As part of these anangements and negotiations, the position of COO was regraded.
Arising from 4 ANCHEIM tile negotiations, a retrospective salary payment of €63,000 was made to the COO in late 2015 in respect of services provided at the regraded (higher) level since June 200 8.

Even though overtime is not payable in respect of the regraded level, the retrospective salary payment was not reduced to take account of overtime payments that the COO had already received in respect of the same period.
Sanction to make the retrospective salary payment was not sought from the Department of Education and Skills or the Department of Public Expenditure and Reform, An Cheim staff who opted to return to DIT returned on their original staff grading and did not return on revised grading.

Annual Review of Controls We confirm that a formal review of the system of internal controls was carried out for the year ended 31 August 2016 by Dublin Institute of Technology Internal Audit.
Other than as identified above, there have been no material losses, contingencies and uncertainties disclosed in the financial statements or the auditor’s report on the financial statements resulting from weaknesses in internal control for the period covered by this Statement on Internal Control.
Chairperson Signed:- Noel O’Connor Director Date:- Date:- 5 An Chdm Computer Services Limited Directors Report The Directors of the Company present tlieir Report and the Financial Statements for the year ended 31 August 2016.
Directors Responsibility Statement The Directors are responsible for preparing the Financial Statements in accordance with applicable Irish law and generally accepted accounting practice in Ireland including the accounting standards issued by the Accounting Standards Board and published by Chartered Accountants Ireland.

Irish company law requires the directors to prepare financial statements for each financial year.
Under the law, the directors have elected to prepare the financial statements in accordance with Irish Generally Accepted Accounting Practice ("Irish GAAP’*).

Under company law, the directors must not approve the financial statements unless they are satisfied they give a true and fair view of the assets- liabilities and financial position of the company as at the financial year end date and of the income and expenditure of the canpany for the financial year and otherwise comply with the Complies Act 2014.
In preparing those Financial Statements, the Directors are required to: • • • • select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; ensure applicable accounting standards have been followed, subject to any material departures which are disclosed and explained in tlie Financial Statements; prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for ensuring that the company keeps or causes to be kept adequate accounting records which correctly explain and record the transactions of the company, enable al any time the assets, liabilities, financial position and surplus or deficit of the company to be determined with reasonable accuracy, enable them to ensure that the financial statements and directors* report comply with the Companies Act 2014 and enable the financial statements to be audited.
They arc also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Accounting Records In order to ensure that proper accounting records are kept in accordance with Section 285 of the Companies Act 2014, appropriately qualified personnel are employed and appiopriate resources arc made available to the company's finance function.
The accounting records are kept at the company’s registered office CYO Dublin Institute of Technology, 143- 149 Rathmines Road, Dublin 6.

Principal Activity The Company has been jointly launched by (he Department of Education and Skills and each of the Institutes of Technolc^y established pursuant to the Institutes of Technologies Acts 1992 to 2006, being Letterkenny IT, IT Sligo, Athlone IT, Galway-Mayo IT, Limerick IT, IT Tralee, Cork IT.
Waterford IT, IT Carlow, IT Tallagin, Dun Laoghaire lADT, IT Blanchardstown, and Dundalk IT, the Dublin Institute of Technolo^es Acts 1992 to 2006, being Dublin IT, (collectively, the "Institutes”) for the purposes of providing proven information technology systems (hat have been modified specifically for the various Institutes.
In carrying out its activities the Company provides improved communication and services to students and staff of the Institutes, as well as supporting new models of education delivery and management, enabling each of the Institutes lobe more effective in their operations.

By virtue of the central management of student, libraiy, finance and HR informaticxi in relation to each of the Institutes, the Company supports new ways of delivering higher and craft education.
The Company is also responsible for the implementation of standardised Management Information Systems (“MIS”) in the institutes.

The purposes of the MIS programme being implemented by the Company include the supporting of new way's to provide education, facilitate different learning models in an environment in which new ser\'ices are developed (e.g.

distance learning, lifelong learning), as well as offering improved services for students and staff of foe Institutes.
6 An Chdm Computer Services Limited Directors Report (Continued) Review of Business The Company was incorporated on 30 August 2005 to act as a vehicle to run the Management Information Systems ("MIS") Project within the Institutes as detailed in the Principal Activi^ note above.

The Company reports a nil surplus in the income and expenditure account for the year ended 31 August 2016 (2015 -Nil Surplus).
The result has been arrived at after receiving income from the Higher Education Authority (previously the Department of Education and Skills) in the sum of €2,706,610, discharging expenditure of €2,707,720 and receiving interest of €1,110.
Future Developments The Higher Education Authority, the body from which the Company derives the majority of its income directed in April 2014 that the Company will be wound and Its assets and liabilities will be transferred toEduCampus Services Limited, a subsidiary of HEAnet Limited.

EduCampus Sendees Limited was incorporated in June 2015.

On I October 2015 all activities of the An Cheim company transferred to EduCampus.
The focus of the An Cheim company during the period Isl October 2015 to 31 st August 2016 has been to divest itself of all acti\dties not forming part of the transfer of assets and liabilities; to work wdlh EduCampus to effect the transfer and nox'alion of rele\'ant contracts and to prepare the Company for wind up under a members voluntary liquidation.

Principal risles and uncertainties The Company has plans to enter into a members volunlaiy liquidation following the transfer of assets and liabilities.
The Company has received no income since 1 st October 2015, however the Directors are satisfied that sufficient financial resources are made available to meet the Company’s ongoing funding requirement.

Annual Review of Internal controls The Directors confirm that a formal review of the effectiveness of the system of internal controls for the year ended 31 August 2016 was performed by the Directors in October 2016.
Annual Governance Statement The Directors have implemented the Code of Governance of Irish Institutes of Technology.

Events since the Year End On 1st October 2015, the Company transferred all of Its operational actiwties to EduCampus under a Business Transfer Agreement.

The Company Is in the process of novating all relevant contracts under this agreement to EduCampus and to tenninating all other contracts in advance of a planned members voluntary liquidation.
Results for the Year The results for the year ended 31 August 2016 are set out on page 11.

7 An Cheim Computer Services Limited Directors Report (Continued) Directors On 18 July 2016 Tom Kelly was appointed as a director.

In accordance with the Articles of Association Noel O’Connor and Bernard Mullarkey were required to retire as Directors by Rotation and being eligible were re-elected.
The Directore did not hold any beneficial interests in the shares of the Company either at any time during the year or at the end of the year.

Auditors The Comptroller and Auditor General has been appointed to audit the company under the Comptroller and Auditor General (Amendment) Act, 1993.

There is no relevant audit information of which the auditors are unaware of.
Bernard Mullarkey Noel O’Connor 8 Comptroller and Auditor General Report for presentation to the Houses of the Oireachtas An Cheim Computer Services Limited I have audited the financial statements of An Cheim Computer Services Limited for the year ended 31 August 2016 under Section 5 of the Comptroller and Auditor General (Amendment) Act 1993.

The financial statements comprise the statement of income and expenditure and retained revenue reserves, the statement of financial position and the related notes.
The financial reporting framework that has been applied in their preparation is the Companies Act 2014 and generally accepted accounting practice in Ireland.

Winding up of An Cheim The Higher Education Authority directed in April 2014 that the company be wound up and that its assets and liabilities be transferred to EduCampus Services Limited, a subsidiary of HEAnet Limited.

The process of transferring assets and liabilities was completed in December 2016.
The activities formerly undertaken by An Cheim are now being undertaken by EduCampus Services Limited.

The directors envisage that the voluntary winding up process of the company will be concluded during 2017.

Responsibiiities of the directors The directors are responsible for the preparation of the financial statements, for ensuring that they give a true and fair view and otherwise comply with the Companies Act 2014 and for ensuring the regularity of transactions.
Responsibilities of the Comptroller and Auditor General My responsibility is to audit the financial statements and to report on them in accordance with applicable law.

My audit is conducted by reference to the special considerations which attach to bodies in receipt of substantial funding from the State in relation to their management and operation.
My audit is carried out in accordance with the International Standards on Auditing (UK and Ireland) and in compliance with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements, sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.
This includes an assessment of • whether the accounting policies are appropriate to the company’s circumstances, and have been consistently applied and adequately disclosed.

the reasonableness of significant accounting estimates made by the directors in the preparation of the financial statements, and the overall presentation of the financial statements.

• • I also seek to obtain evidence about the regularity of financial transactions in the course of audit.
Opinion on the financial statements In my opinion, the financial statements: • give a true and fair view of the assets, liabilities and financial position of An Cheim as at 31 August 2016 and of its income and expenditure for the year then ended; and • have been properly prepared in accordance with generally accepted accounting practice in Ireland: and • have been properly prepared in accordance with the requirements of the Companies Act 2014.
Matters on which I am required to report by the Companies Act 2014 I have obtained all the information and explanations that I consider necessary for the purposes of my audit.

In my opinion, the accounting records of the company were sufficient to permit the financial statements to be readily and properly audited.

The financial statements are in agreement with the accounting records.

In my opinion, the information given in the directors’ report is consistent with the financial statements.
Matters on which I report by exception • I report by exception if I have not received all the information and explanations I required for my audit, or if I find • any material instance where money has not been applied for the purposes intended or where the transactions did not conform to the authorities governing them, or the statement on internal control does not reflect An Cheim’s compliance with the Code of Governance of Irish Institutes of Technology, or the disclosures of directors’ remuneration and transactions as specified by the Companies Act 2014 are not made, or there are other material matters relating to the manner in which public business has been conducted.
• • Independent review of expenditure, procurement and other matters in An Cheim The statement on internal control sets out the background to an external review commissioned by the Board of An Cheim.

The review examined, inter alia, the procurement process and payments from An Cheim in respect of outsourced IT work carried out during 2015.
The statement on internal control discloses a number of critical findings from the review, including • that the mandate for the work was not clear and that the Board was not kept fully informed in relation to it.
Report of the Comptroller and Auditor General (continued) • • the level of work carried out without the close involvement of the intended beneficiary, and the fact that payments of €941,000 were made to the service provider during the year ended 31 August 2016 without an appropriate competitive tendering process.
Retrospective salary payment The statement on internal control also discloses that a retrospective salary payment of €63,000 was made to a member of staff during the year of account in connection with the regrading of his position, with effect from 1 June 2008.

Overtime is not payable in respect of the regraded (higher) level.

The retrospective payment was not reduced to take account of overtime payments that the staff member had already received in respect of the same period.
An Cheim did not seek sanction from the Department of Education and Skills or the Department of Public Expenditure and Reform prior to making the payment.
AA.t Seamus McCarthy Comptroller and Auditor General 31 May 2017 An Cheim Computer Services Limited Statement of Income and Expenditure and Retained Revenue Reserve for the Year Ended 31 August 2016 Income Expenditure Interest Receivable Net results for the Year Notes 5 7 8 2Q16 € 2(?7J € 2,706,610 7,703,536 (2,707,720) (7,704,479) (1.110) (943) 1,110 - 943 - The income arose solely from continuing operations.
There were no recognised gains or losses other than those dealt with within the Income and Expenditure Account.

The Company had no recognised gains or losses other than the result for the year as disclosed above and therefore no separate statement of total recognised gains and losses has been presented.
On behalf of the Board Director: Director: Date: Bernard Mullarkey Noel O’Connor II An Cheim Computer Services Limited Statement of Financial Position As At 31 August 2016 Assets Employed Fixed Assets Tangible Assets Current Assets Debtors Cash at Bank and in Hand Creditors (amounts falling due within one year) Net Current Assets Total Assets Less Current Liabilities Deferred Capital Funding Net Assets Represented by: Resenes Called up Share Capital Presented as Equity Income and Expenditure Account Notes 2016 € 2015 € 8 9 10 12 11 518,108 1,622,774 7,811 1,920.175 2,424.855 2.758,602 1,927,986 5.183.457 (1.927,984) (5.183.455) 2 2 518.110 1.622.776 (518,108) (1,622.774) 2 2 - 2 2 2 - 1 Bernard Mullarkey Noel O’Coruior v/s/n- An Ciieim Computer Services Limited Notes to the Financial Statements for t he Year Ended 3] Au&ust 2016 1 Statement of Accounting policies Tile significant accounting policies adopted by the Company are explained in (a) - (j) befow (a) Currency The Financial Statements are prepared in Euro.
(b) Stniement of Compliance The Financial Statements of the cwnpany have been prepared in accordance with Financial Reporting Standard 102 (FRS102) issued by the Financial Reponhg Council, and promulgated for use in Ireland by Chartered Accountants Ireland and Avith the requirements of the Higher Education Authority.

These are the first set of Financal Statements prepared in accordance with FR102.

The date of transition to FRS102 is I September 2014.
The prior year financial statements were reviewed and no re-statement was deemed to be required for material adjustments on adoption ofFRS102 in tlie current year.

(c) Basis ofPrcpflration The Financial Statements have been prepared under die historical cost convention tn accordance with accountbig standards generally accepted in Ireland and Irfeh Statute comprising the Companies Acts 2014.
Accounting Standards generally accepted in Ireland in preparing the Financial Statements giving a true and fair view arc those published by the Chartered Accountants Ireland and issued by the Accounting Standards Board.

(tl) Profit and Loss Account The company has not traded for ilie acquisition of gain by the members.
In accordance with Section 291 of the Companies Act 2014, the comfsiny is required to prepare in respect of each financial year, entity financial statements which comply with the formats asset out in Schedule 3 of the Companies Act 2014.

The company has availed of Section 291(5) of the Companies Act 2014 and prepared an income and expenditure account in place of a profit and loss account.
Tlie directors' of tlic company believe that the information provided in the income and expenditure account reflects the nature of the operating activities of the company and provides a true and fair view of its income and e.spcnditure[results] for the financial year.

This departure has no cfiect on the company's results for the financial year.

(e) Going Concern The Company relics on the Higher Education Authority and the Department of Education and Skills to fund its activities.
The Higher Education Authority has directed in April 2014 that the Company wO!

be wound up in the near future and its assets and liabilaies wli be transferred to EduCampus Services Limited, a subsidiary of HEAnct Limited.

Al the year end date this jH'ocess is currently ongoing.

The process was subsequently completed in December 2016.

An Cheim have subsequently received correspondence from HEA communicating that funding post 1 October 2015 would no longer be available.
It is however believed that An Chdon have sufTcient cash balances to fund the required administration and wind up c.xpcnses.

On this basis ihe Financial Statements of the Company have been prepared on a going concern basis.

(/) Foreign Currencies Transactions denominated in foreign currencies are translated into Euro and recorded at the rates of exchange ruling at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies arc translated into Euro at the rates of exchange ruling at tlic Balance Sheet date.

(g) Taxation The Company is exempt from Corporation Taxation under a Charitable Status Order.

On this basis, no calculation in respect of Corporation Ta.x has been included in the Financial Statements.

(Il) Stocks Expaiditure on consumable slocks is charged to the Income and Expenditure Account as incurred.
(I) State Funding (I) State fundbg for Recurrent Expenditure is allocated by the Higher Education Authority (previously the Deportment of Education and Skills) on a calendar year basis and is claimed on a monthly basis tn accordance with a profile submitted IO tlie Aulliority.

State funding is received from the Higher Education Authorlt)- on a cadi basis and funding unspent as at the reporting date is transferred to Deferred Income.
(ii) Slate Funding for Capital Expenditure (including funding for recunent purposes utilised for the purchase of fixed assets) is capitalised and credited to hcomc over the estimated useful lives of die related assets.

0 Tangible Fixed Assets Tangible Fixed Assets arc staled at cost less accumulated depreciation.
13 An Chcim Compuler Services Liiniled Notes to the Financial Statements for the Year Ended 31 August 2016 (continued) (i) Cost Prior to incorporation, fixed assets for the MIS Project were recorded in Dublin Institute of Teclinolo©' Financial Records as An Cheim was treated as a Self Funded Project On incorporation all fixed assets in respect of the MIS Project were transferred by Dublin Irslitute of Technology to An Cheim Computer Services Limited al Net Book Value.
(if) Depreciation Depreciation is provided on tangible fixed assets on a straight line basis so as to write off the historical cost or valuation over their estimated useful lives.

A full year’s depreciation is charged in the year of acquisition.

The estimated uscfljl lives assigned to tangible fixed assets arc as follows; Compuler Equipment Computer Software Furniture and Equipment Leasehold Inprovcmcnls Years 3 3 5 20 (iii) Disposals Computer software over six years old is treated as disposed.
All other classes of Tangible Fixed Asset disposals are recorded at lire dale of disposal.

(iii) Operating Lenses All operating lease rentals arc charged to lite income and expenditure account on a straight line basis.

2 Accounting Period These Financial Statements arc for the year ended 31 Augusl20I6.
3 Cash Flow Statement Tlte Company is as-ailing of lhe exemption in Financial Reporting Standard 102 and is not including a Statement of Cash Flows in these Financial Statements on the basis that it is a wholly owned subsidiary of Dublin Institute of Technolo©-, 4 Critical Accounting Judgements and Estimates TIic preparation of the Firmndal Stalemcnls requires management to make judgements, estimates and assumptions tliat affect tile amounts reported for tire assetsand liabilities as at lhe balance sheet date and the amounts reported for revenues and expenses during tire year.
However, the nature of estimation means that actual outcomes could difler from those estimates The followingjudgements have had the most significant effect on amounts recognised in the Financial Statements Depreciation and Readual Values The Directorshave reviewed lhe asset lives and associated residual values of all fixed asset classes, and in particular, the useful economic life and residual value of all fixed assets, and have concluded that asset lives and residual values arc appropriate.
5 Income HEA Stale Funding (Note 6) Release from Capital Funding Account (Note 13) Stale Funding Received 2QI6 € 2015 € 2,425,187 281,423 5,901,108 1.802,428 2.706,610 7,703.536 Allocated for Allocated for Rccurrcnl Capital Expenditure Expenditure £• € Deferred Income e R«x:urrent HEA State Funding Capital Slate Funding 2,425,187 760,334 (2.654,403) - - • Total e 531,118 - 2,425,187 760,334 (2.654,403) 531.118 14 An Cheim Computer Services Limited Notes to the Financial Statements for the Year Ended 31 August 2016 (continued) 7 Expenditure Staff Materials and Services: IT Service Costs Premises Costs Travel and Subsistence Costs Personnel Costs Professional Fees Audit Fees - internal - statutory audit of financial statements (Comptroller and Auditor General) Communications Costs Stationer)’ and Office Materials Costs Miscellaneous Costs Depreciation Total Expenditure 8 Results for the Year The result for the year has been arrived at after charging: Directors’ emoluments Auditors' remuneration - internal - statutory audit Operating lease rentals (land and buildings) 2016 € 201S € 178,517 495,770 1,581,416 95,367 5,080 4,800 377,437 5,355 10,500 7,246 2,855 157,724 281,423 4,317,294 407,732 15,353 27,697 455,815 3,668 13,000 16,020 5,275 144,427 1,802,428 2,707,720 7,704,479 2016 € - 5355 10,500 27,464 2015 € - 3,668 13,000 143378 15 An Cheim Compuier Senices Liniiied Notes to the Financial Statements for the Year Ended 31 Auaust 2016 (continued) 9 Tangible Assets Cost Computer Equipment e Computer Sofhvare C
 Furniture & Equipment € Leasehold Improvements e Total € At 1st September 2015 5.060.526 14.295.494 90.714 65-667 19,512.401 Additions Disposals 39.570 14.809,043!
720.764 (12.967.201) (13.162) - - 760.334 (17.789.406) At 31 August 2016 291.053 2.049.057 77,552 65.667 2.483.329 Accumulated Depreciation Al 1st September 2015 4.356.952 13.424,945 88.031 19,699 17,889.627 76.625 (1.217,650) 201,515 (11.977 700) ■ (10.479) 3.283 - 281.423 (16.205,829) 215.927 1.648.760 77.552 22.982 1.965.221 Charge for the Year Disposals Al 31 August 2016 Net Book Amount: At 31 Auaust 2016 42.685 45.968 518.108 1.622.774 2016 e - 7.811 2015 e 920.439 I.,504,416 7.811 2.424.855 75.126 400.297 - At Isl September 2015 703.574 S70.549 2.683 Depreciation is calculated in accordance with the policj laid out in note l(j).
10 Debtors Dublin Institute ofTechnclogy Intercompany Account Prepayments 16 An Cheim Computer Sei'vices Limited Notes to the Financial Statements for the Year Ended 31 August 2016 (continued) 11 Creditors (Amounts Falling Due Witinn One Year) Trade Creditors VAT Payable PSWT Payable Accruals and Other Creditors Dublin Institute of Technologj* InteiCompany Account Deferred Income 12 Share Capital - Equity Authorised 1,000 Ordinary Shares of €1 each Issued, Called Up and Fully Paid 2 Ordinary shares of€l each 13 Deferred Capital Funding Account Movements during (iieyeat Balance as at 31 August 2015 Additions Slate Funding Received - State Capital Funding (Note 6) - Allocated from Slate Recurrent Funding (Note 6) Disposals-Net Book Value Release to Income 2016 € 14.172 7.957 123.483 126,677 1,655,695 2015 € 45,171 89.034 51,979 687,173 4,310,098 1,927,984 5,183,455 2016 € 2015 € 1,000 1,000 2 2 2016 € 2 2 2015 e 1.622,774 2,041,925 760.334 760,334 1,383.277 1,383.277 (1,583,577) - 799,531 3,425,202 Amortisation in line witli asset depreciation BalanceasatSl August2016 (281.423) (1,802,428) ________ 518,108 1,622,774 Capital funding is accounted for in accordance with the Accounting Policy set out on page 13.
17 An Clieim Computer Sen'ices Limited Notes to the Finnncial Statements for the Year Ended 31 August2016 (continued) 14 Reconciliation of Movement in Equity Shareholders Funds Opening Balance Result for the year Closing Balance 15 Capital Commitments Titc Company had the following capital commitments in existence al the balance sheet date.
Contracted For Not Contracted For Non-Capital commitments from contracts in place 20J6 € 2O1S e 2 2 2 2 2016 2015 € € - - 1,030,617 1.030,617' 16 Operating Lense Commitments Obligations payable in the year ended 31 August 2016 on operating lease agreements in place are as follows: Land and Buildings Leases expiring within 1 year Leases expiring between two and five yeais Leases expiring after five years 17 Related Parties 2016 2015 € € - - 11,940 11,940'" An Cheim Computer Services Limited is wholly owtied by Dublin Institute of Tcclinology.
Transactions between the Company and Dublin Insututc of Technology are not disclosed as llie Company has taken advantage of die exemption available under FRS 102 from disclosing such transactions.

The Company had no transactions with entities in which the Directors hold an interest, 18 Explanation ofTransition to FRS 102 This is the first year tliat die Company lias presented its financial statements under Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council.
Tlie following disclosures arc required in the year of transition.

The last financial statements under previous Irish GAAP were for die year ended 31 August 2015 and the dateof transition to FRS 102 is.

tliercfore, 1 September 2014.

As a consequence of adopting FRS 102. a number of accounting policies have changed to comply widi diat standard.

Tlierc was no impact on opening reserves al the date of transition as a result of die adoption of FRS 102.
The comparative figures are in accordance ^vilh FRS 102.

19 Approval of Financial Statements The Financial Statements of die Company for die year ended 31 August 2016 were approved by the Directors on 31 May 2017