Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698136109654.pdf (Ireland)
An Cheim Computer Services Limited Directors Report and Audited Financial Statements for the Year Ended 31 August 2012 T ’ i An Cheim Computer Services Limited Index Directors and other information Statement on Internal Control Directors’ Report Independent Auditors * Report Income and Expenditure Account Balance Sheet Notes on and forming part of the financial statements page 1 2-3 4-6 7 8 9 10-15 Ad.
Cheim Computer Services Limited Directors and Other Information Directors: Secretary: Chief Executive Officer: Registered Office: Bankers: Michael Cannody (Chairperson) James Fennell Mary Kerr Joseph Ryan Noel O’Connor William Bassett Denis Cun^mins Noel O’Connor Derek Feeney Fumbally Square Fumhally Lane Dublin 8 Allied Irish Banks Pic 1/4 Lower Baggot Street Dublin 2 Registered number: 407364 Auditors: Comptroller and Auditor General Dublin Castle Dublin 2 Charity Number: CHY 17291 1 iiH^Cheim computer sorvices STATEMENT ON INTERNAL CONTROL Responsibility for the internal control system On behalf of the Board of Directors of An Cheim Computer Services Limited (tlie “Company*’), the Chainnan 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 Ilian eliminate risk, and provides reasonable though not absolute assurance that assets are safeguarded, tiunsactions autliorised and properly recorded, and that material errors or in’egularities 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.
A reporting framework has been put in place involving the Audit Committee and Internal Audit, as at (iii) below, and tire system has been reviewed as evidenced below under ilie caption “Annual Review of Controls”.

The An Cheim Audit Committee was stood down in February 2012 and responsibility transferred to DIT’s Governing Body Audit Sub-Conimitlee to provide direct oversight over An Cheim.
The An Cheim Audit Committee was rehstated in December 2012 The An Cheim Audit Committee met on the following dates during the year ended 31^ August 2012: 14'’’November 2011, 29*'' November 2011.

• • • 2r‘ February 2012.

(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 theBoard of Directors, An Cheim Computer Services Limited, Fumbally Square, Fumbally Lane, Dublin 8 Tek +3531 473 5202 Fax: +3531 709 3014 Email: info@ancheim.ie Directors: Noel O’Connor (Secretary), Mary Kerr, William Basset, Joseph Ryan and Denis Cummins.
Registered Number; 407364 7 BBSCheim compulor servicos 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 perfonnance, Development of defined capital investment control guidelines, and Development of formal project management disciplines.

(iii) Reporting framework The Company has an Audit Committee and 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 arc based on this analysis.

The plans are approved by tlie Audit Committee.

DIT did not have an Internal Audit resource for a number of monflis during the year ended 31” August 2012.
Annual Review of Controls We confinn that a formal review of the system of internal controls was carried out for the year ended 31 August 2012 in May 2013 by die Board of Directors of the Company based on a review performed by Mazars.

Actions have been agreed in respect of Tangible Fixed Assets, Staff recharge costs, Arrangements witli Institutes of Technologies and HEA, Business Continuity, Contractual Arrangements with Suppliers, Policies and Procedures and Finance IT User Access.
Plans to address tliese issues are being actively pursued by the Company.

There have been no material losses, contingencies and unceitainties disclosed in the financial statements or the auditor’s report on the financial statements resulting from weaknesses in internal control for die period covered by this Statement on Internal Control.

Chairman Date:- Date:- C?


'I An Cheim Computer Services Limited, Fumbaliy Square, Fumbally Lane, Dublin 8 Tel: +353 1 473 5202 Fax: +353 1 709 3014 Email: info@anclieim.ie Directors: Noel O'Connor (Secretary), Mary Kerr, William Basset, Joseph Ryan and Denis Cummins.

Registered Number: 407364 3 An Cheim, Computer Services Limited Director Report The Directors of the Company present their Report and the Financial Statements for the year ended 31 August 2012.
Statement of Directors' Responsibilities 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 period which give a true and fair view of the state of afiairs of the Company and of the surplus or deficit of the Company for that period.
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 the 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 keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial Statements comply with accounting standards generally accepted in Ireland and Irish Statute comprising the Companies Acts, 1963 to 2012.
They are also responsible for safeguarding die assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Books of Account The measures taken by the Directors to secure compliance with the Company’s obligation to keep proper books of account are the use of appropriate systems and procedures and employment of competent persons.

The books of account are kept at the Company’s premises at Fumbally Square, Fumbally Lane, Dublin 8.
Principal Activity The Company has been jointly launched by the Department of Education and Skills and each of the Institutes of Technology 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 Tallaght, Dun Laoghaire lADT, IT Blanchardstown, and Dundalk IT, tlie Dublin Institute of Technologies Acts 1992 to 2006, being Dublin IT, (collectively, the "Institutes") for the purposes of providing proven information technology systems that have been modified specifically for tlie 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 to be more effective in their operations.

By virtue of the central management of student, library, finance and HR information 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 ways to provide education, facilitate different learning models in an environment in which new services are developed (e.g.

distance learning, lifelong learning), as well as offering improved services for students and staff of the Institutes.
4 An Cheirn 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 C’MIS") Project within the Institutes as detailed in the Principal Activity note above.

The Company reports a nil surplus in the income and expenditure account for the year ended 31 August 2012 (2011 - 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 618,868,751, discharging expenditure of €18,874,761, paying interest of €3,149 and receiving interest of €9,159.
hl the year to 31 August 2012 the directors considered the usefiil economic lives ofthe company's fixed assets and decided that it would be more appropriate going forward for the Company to adopt depreciation rates corresponding to that of its parent undertaking, Dublin Institute of Technology, in respect of both Computer Software and Computer Equipment.

Both categories are depreciated by the parent undertaking on a straight line basis over 3 years.
This consideration also took into account the nature of the assets and the industry in which the Company operates.

As a result the useful economic lives attributed to assets in these categories have been re-aligned with those ofthe parent undertaking.
The effect of this change in estimation technique is an €8,803,443 increase in Income and depreciation in the Income and Expenditure Account and a corresponding decrease in Tangible Assets and Deferred Capital Funding in the Balance Sheet in the current year.

Trade Creditors, Accruals and Other Creditors, Prepayments and the loTI Funded Capital Expenditure Project Debtor balance have varied due to the stage of completion ofthe loTI Funded Capital Expenditure Project and the timing of payments.
The Deferred Income and Dublin Institute of Tecimology Intercompany Account balances have increased principally due to the timing of recurrent funding receipts.

Future Developments Tlie Company’s strategic focus continues to be on the development of its existing core business.

Principal risks and uncertainties The Company continues to operate in an increasingly uncertain economic environment.
Notwithstanding this, the Company has continued to be successful in delivering proven information technology systems for the various Institutes as detailed in the Principal Activity note above.

The Company derives the majority of its income from the Higher Education Authority.

The Directors are satisfied that sufficient financial resources will be made available to meet the Company’s ongoing funding requirement.
Annual Review of Infernal controls The Directors confirm that a formal review of tlie effectiveness of the system of internal controls for the year ended 31 st August 2012 was performed by the Directors in May 2013.

Annual Governance Statement The Directors have implemented the Code of Governance of Irish Institutes of Technology.

Events since the Year End There have been no significant events affecting the Company since the year end.
5 An Cheim Computer Services Limited Directors Report (Continued) Results for the Year The results for the year ended 31 August 2012 are set out on page 8.

Directors On 15th January 2013 Joseph McGarry resigned as a director.

hl accordance with the Articles of Association, William Basset^ Denis Cummins and Noel O'Connor retired as directors by rotation and were re-elected.
The Directors did not hold any beneficial interests in the shares of the Company either at any time during the year or at the end of die year.

Auditors The auditors, Comptroller and Auditor General, will continue in ofSce.
On behalf of the Board Director: Noel O'Connor Denis Cummins 6 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 Ch6im Computer Services Limited for the year ended 31 August 2012 under Section 5 of the Comptroller and Auditor General (Amendment) Act 1993.
The financial statements, which have been prepared under the accounting policies set out therein, comprise the accounting policies, the income and expenditure account, the balance sheet and the related notes.

The financial statements have been prepared in the form prescribed under the Companies Acts 1963 to 2012, and in accordance with generally accepted accounting practice in Ireland.
Responsibilities of the Directors The Directors are responsible for the preparation of the financial statements, for ensuring that they give a true and fair view of the state of the company’s affairs and of its surplus or deficit, and for ensuring the regularity of transactions.

Responsibilities of the Comptroller and Auditor General My responsibility is to audit the financial statements and report on them in accordance with applicable law.
My audit is conducted by reference to the special considerations which attach to State bodies 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 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, in accordance with generally accepted accounting practice in Ireland, of the state of the company's affairs at 31 August 2012 and of its net result for the year then ended; and have been properly prepared in accordance with the Companies Acts 1963 to 2012.

I have obtained all the information and explanations that I consider necessary for the purpose of my audit.
In my opinion, proper books of account have been kept by the company.

The financial statements are in agreement with the books of account.

In my opinion, the information given in the Directors’ report is consistent with the financial statements.
The net assets of the company, as stated in the balance sheet, are more than half of the amount of its called-up share capital and, in my opinion, on that basis there did not exist at 31 August 2012 a financial situation which, under Section 40 (1) of the Companies (Amendment) Act 1983, would require the convening of an extraordinary general meeting of the company.
Matters on which I report by exception I report by exception if • my audit noted any material instance where public 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 the company’s compliance with the Code of Governance of Irish Institutes of Technology, or I find there are other material matters relating to the manner in which public business has been conducted.
I have nothing to report in regard to those matters.
Seamus McCarthy I Comptroller and Auditor General September 2013 An Cheim Computer Services Limited Income and Expenditure Account for the Year Ended 31 August 2012 Income Expenditure Interest Payable and Similar Charges - Bank Interest - Interest on Late Payment of Taxation Interest Receivable Net results for the Year 4 6 7 2012 € 2011 € 18,868,751 9,526,618 (18,874,761) (9,578,206) (6,010) (51,588) (196) (2,953) 0 0 9,159 51,588 __________ 0_ 0 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: Noel O'Connor Denis Cummins '-i.
An Cheim Computer Services Limited Balance Sheet As At 31 August 2012 Assets Employed Fixed Assets Tangible Assets Current Assets Debtors Cash at Bank and in Hand Creditors (amounts felling due within one year) Net Current Assets Total Assets Less Current Liabilities Deferred Capital Funding Net Assets Represented by: Reserves Share Capital Income and Expenditure Account On.
behalf of the Board Director: Director:, Notes 2012 € 2Q11 € 8 9 10 12 11 2,610,434 13,097,607 3,039,304 574,523 2,526,356 2,777,953 3,613,827 5,304,309 (3,613,825) (5,304,307) 2 2 2,610,436 13,097,609 (2,610,434) (13,097,607) 2 2 0 2 2 2 0 1 Noel O'Connor Denis Cummins 9 An Cheini Computer Services Limited Notes to the Financial Statements for the Year Ended 31 August 2012 1 Accounting policies The sigiificant accounting policies adopted by the Company are as follows: (a) Currency The Financial Statements are prepared in Euro.
(1>J Basis of Preparation The Financial Statements have been prepared under the historical cost convention in accordance with accounting standards generally accepted in Ireland and Irish Statute comprising the Companies Acts, 1963 to 2012.

Accounting Standards generally accepted in Ireland in preparing the Financial Statements giving a true and fair view are those published by the Chartered Accountants Ireland and issued by the Accounting Standards Board.
fc) Going Concern The Company relies on the Higher Education Authority and the Department of Education and Skills to fund its activities.

The Higher Education Authority has confirmed recurrent funding until 31 December 2013.

The Higher Education Authority and the Department of Education and Skills have not given any indication that they will withdraw their support from the Company subsequent to 31 December 2013.
Accordingly the Financial Statements of the Company have been prepared on a going concern basis.

(if) 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 are translated into Euro at the rates of exchange ruling at the Balance Sheet date.
(c) Taxation The Company is exempt from Corporation Taxation under a Charitable Status Order.

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

(j) Stocks Expenditure on consumable stocks is charged to the Income and Expenditure Account as incurred.
(S) State Funding (i) State funding for Recurrent Expenditure is allocated by the Higher Education Authority (previously the Department of Education and Skills) on a calendar year basis and is claimed on a monthly basis in accordance with a profile submitted to the Authority.
The funding reported in the Income and Expenditure Account has been matched to the expenditure to which it relates (ii) State Funding for Capital Expenditure (including funding for recurrent purposes utilised for the purchase of fixed assets) is capitalised and credited to income over the estimated useful lives of the related assets.

(7:) Tangible Fixed Assets Tangible Fixed Assets are stated at cost less accumulated depreciation.
10 Aa Cheim Computer Services Limited Notes to the Financial Statements for the Year Ended 31 August 2012 (continued) (i) Cost Prior to incorporatioD, fixed assets for the MIS Project were recorded in Dublin Institute of Technology Financial Records as An Ch6im was treated as a Self Funded Project.

On incorporation all fixed assets in respect of the MIS Project were transferred by Dublin Institute of Technology to An Cheim Computer Services Limited at Net Book Value.
(ii) 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 usefill lives.

The estimated useful lives assigned to tangible fixed assets are as follows; Computer Equipment Computer Software Furniture and Equipment Leasehold Improvements Years 3 3 5 20 (ill) Operating Leases All operating lease rentals are charged to the income and expenditure account on a strai^t line basis.
2 Accounting Period These Financial Statements are for the year ended 31 August 2012.

3 Cash Flow Statement The Company is availing of the exemption in Financial Reporting Standard 1 and is not including a Cash Flow Statement in these Financial Statements on the basis that it is a wholly owned subsidiary of Dublin Institute of Technology.
4 Income State Funding (Note 5) Release from Capital Funding Account (Note 12) 5 State Funding Received Allocated for Recurrent Expenditure € Allocated for Capital Expenditure € Recurrent State Funding Capital State Funding 7,090,996 - 979,472 311,110 2012 e 2011 € 7,090,996 11,777,755 6,238,296 3,288,322 18,868,751 9,526,618 Deferred Income e 683,531 - Total € 8,753,999 311,110 __ 7,090,996 1,290,582 683,531 9,065,109 U An Cheira Computer Services Limited Notes to the Financial Statements for the Year Ended 31 August 2012 (continued) 6 Expenditure Staff Materials and Services; IT Service Costs Premises Costs Travel and Subsistence Costs Personnel Costs Professional Fees Audit Fees - internal - external audit of financial statements PricewaterhouseCoopers) - statutory audit of financial statements (Comptroller and Auditor General) Communications Costs Stationery and Office Materials Costs Miscellaneous Costs Provision for Doubtful Debts Depreciation 2012 € 2011 € 831,971 901,477 5,578,846 326,839 19,397 15,605 168,557 3,669 17,835 8,000 18,544 5,989 101,754 - 11,777,755 4,649,556 286,087 22,048 17,245 222,560 5,355 16,870 8,000 31,726 6,339 94,856 27,765 3,288,322 Total Expenditure 18,874,761 9,578,206 7 Results for the Year The result for the year has been arrived at after charging: Directors’ emoluments Auditors' remuneration - internal - statutory audit - other audit services Operating lease rentals (land and buildings) 2012 € 3,669 8,000 17,835 140,948 2011 € 5,355 8,000 16,870 140,948 12 Ati CDeim Computer
 Services Limited Notes fo the Financial Statements for the Year Ended 31 Augnst 2012 (continued) 8 Tangible Assets Cost Computer Equipment € Computer Software € Furniture & Equipment € Leasehold Improvements € Total At 1st September 2011 6,149,160 23,159,110 111,608 65,667 29,485,545 Additions Disposals 374,624 (2,998,249) 915,958 (9,691,108) 0 (25,371) 0 0 1,290,582 (12,714,728) At 31 August 2012 3.525,535 14,383,960 86,237 65,667 18,061,399 Accumulated Depreciation At 1st September 2011 5,192,256 11,126,785 62,331 6,566 16,387,938 Charge for the Year Disposals 876,105 (2,998.249) 10,881,118 (9,691,108) 17,248 (25,371) 3,284 0 11,777,755 (12,714,728) At 31 August 2012 3,070,112 12,316,795 54,208 9,850 15,450.965 Net Book Amount: At 31 August 2012 455,423 2,067,165 32,029 55,817 2,610,434 At 1 st September 2011 956,904 12,032,325 49,277 ________ 59,101 13,097,607 Depreciation is calculated in accordance with the policy laid out in note 1(h).
It was Company accounting policy to depreciate Computer Software and Computer Equipment on a straight line basis over 10 years and 4 years respectively.

This policy had been in effect from the date of Incorporation, 30*^ August 2005 until the year ended 31 August 2011.
In die year to 31 August 2012 the directors considered the useful economic lives of the company’s assets and decided that it would be more appropriate going forward for the Company to adopt depreciation rates corresponding to that of its parent undertaking, Dublin Institute of Technology, in respect of both Computer Software and Computer Equipment.

Both categories are depreciated by the parent undertaking on a straight line basis over 3 years.
This consideration also took into account the nature of the assets and the industry in which the Company operates.

As a result the useful economic lives attributed to assets in these categories have been re-aligned with those of the parent undertaking.

The effect of this change in estimation technique is an additional depreciation charge of 68,803,443 in the current year.
9 Debtors loTI Funding for Capital Expenditure Strategic Funding for Capital Expenditure Dublin Institute of Technology InterCompany Account Prepayments 13 2012 € 2011 € 1,378,075 16,000 732,207 913,022 1,919,016 16,000 16,633 574,707 3,039,304 2,526,356 Aq Cheim Computer Services Limited Notes to the Financial Statements for the Year Ended 31 August 2012 (continued) 10 Creditors (Amounts Falling Due Within One Year) Trade Creditors VAT Payable PSWT Payable Accruals and Other Creditors Deferred Income 2012 e 2on € 59,675 34,928 45,668 215,852 3,257,702 956,632 19,195 8,800 1,745,509 2,574,171 3>613,82S 5,304,307 Trade Creditors, Accruals and Other Creditors balances have varied due to the stage of completion of the loTI Funded Capital Expenditure Project and the timing of payments.
The Deferred Income balance has increased principally due to the timing of recurrent funding receipts.
11 Share Capital-Equity Authorised 1,000 Ordinary Shares of €1 each Issued, Called Up and Fully Paid 2 Ordinary shares of 61 each 12 Deferred Capital Funding Account Movements during the year Balance as at 31 August 2011 Additions State Funding Received - State Capital Funding (Note 5) Allocated from State Recurrent Funding (Note 5) Disposals - Net Book Value Release to Ihcome Amortisation in line with asset depreciation Balance as at 31 August 2012 2012 € 2011 € 1,000 1,000 2 2 2012 € 2 2 2011 e 13,097,607 11,396,698 311,110 979,472 2,116,509 2,872,722 1,290,582 4,989,231 - - 14,388,189 16,385,929 (11,777,755) (3,288,322) 2,610,434 13,097,607 Capital funding is accounted for in accordance with the Accounting Policy set out on page 10.
14 An Cheiro Computer Services Limited Notes to the Financial Statements for the Year Ended 31 August 2012 (continued) 13 Reconciliation of Movement in Equity Shareholders Funds Opening Balance Result for the year Closing Balance 14 Capital Commitments The Company had the following capital commitments in existence at the balance sheet date.
Contracted For Not Contracted For 15 Operating Lease Commitments 2012 € 2 0 2 2011 € 2 0 2 2012 € 2011 € 221,925 3.447,317 480,984 1,484.470 3,669>242 1,965,454 Obligations payable in tlie year ended 31 August 2013 on operating lease agreements in place are as follows: Land and Buildings Leases expiring within 1 year Leases expiring between two and five years Leases expiring after five years 16 Related Parties 2012 € 2011 e 140,948 140.948 ________ 140,948 _ 140,948 An Cheim Computer Services Limited is wholly owned by Dublin Institute of Technology.
Transactions between the Company and Dublin histituteofTechnologyarenot disclosed as the Company has taken advantage of the exemption available under FRS 8 “Related Party Disclosures” from disclosing such transactions.

The Company had no transactions with entities in which the Director hold an interest.

17 Approval of Financial Statements The Financial Statements of the Company for the year ended 31 August 2012 were approved by the Directors on 2013 15