IDA Ireland
Annual Report& Accounts
2016

www.idaireland.com

Contents
Chairman & CEO Overview

01

Statistics

06

Corporate Governance

11

Financial Statements

18

Global Office Network

39

Chairman &CEO Overview

01atement from the Chairman and CEO of IDA Ireland
Chairman & CEO Overview

trategyThroughout 2016, IDA Ireland continued to roll out its strategy Winning:
015, IDA
Irelandpublisheda –new
Foreign
Direct Investment
2015
2019.strategy - Winning:

eign Direct
Investment 2015 – 2019. That Strategy sets
IDA Ireland’s targets are extremely ambitious including:an extremely ambitious set of targets including:

80,000
New Jobs
0,000- New
Jobs- 900 Investments- A 30 – 40% increase in investments
30 – 40%in investments
intoincrease
regional locations;andnto regionaland- €3bn locations;in R&D expenditure

00 Investments

3bn inTheR&Dultimateexpenditure
goal of the strategy is for the people of Ireland to benefit fromforeign direct investment by IDA Ireland being the most successful investment
promotion and development agency in the world.

ultimate goal of the new strategy is for the people of
was the secondof implementation
the strategy and IDA
Irelandand to2016
benefit
fromyearforeign
direct ofinvestment
andforisIDA
happy to report that it has made an excellent start on all aspects of the strategy
and toandbecomethemostsuccessful
investment
promotion
we are aheadof target– breaching
the milestoneof 200,000 people
employed in foreign companies in Ireland for the first time in the history of thedevelopment
agency in the world.
State. This is a momentous achievement for Ireland and is an indicator of how
competitive Ireland is at winning business globally. As promised in the originalplan, a mid-term review of the Winning strategy is currently underway.
The continued success of IDA client companies has been a strong contributor
to employment growth and the unemployment rate in Ireland continues its
downward trajectory.

5 was the first year of implementation of that strategy
IDA Ireland is happy to report that it has made anellent start on all aspects of the strategy.
02

Frank Ryan
ChairmanFrank Ryan
Chairman

4

Chairman & CEO Overview
Key Factors

Outlook and Challenges

IDA Ireland is fighting to win mobile investment every
day of the year.

2016 was a remarkable year of political and economicchange globally with both Brexit and a change of US
Administration combining to create significant
uncertainty in the global investment scene.

Foreign direct investment has never been as competitive
with agencies around the world lining up against eachother to win business from investors. Investor sensitivities
are changing constantly in line with changes in thepolitical and economic climate. That being said, Ireland
continues to punch above its weight in FDI terms despite accounting for only 1.8% of EU GDP, Irelandwins 4.5% of FDI projects to Europe and 7.5% in the
sectors IDA targets.
Agreeing to place an investment in a certain location is
generally the result of a long process involving a company
comparing various locations and the ability of thatcountry to meet specific requirements and expectations.
No business will make a decision to locate in Ireland
based on one factor alone. Yet, in 2016, two major factors
have increased in importance significantly with investors,
notably Ireland’s economic and political stability and theincreasing importance of EU market access.
These advantages were supplemented by otherimportant pillars, including the ease of doing business,talent availability, connected research and accessto cutting-edge Irish and international companies
based here.

03

Ireland is a small open economy with very strong trade
links across the globe. However, being part of a globalised
economic flow can also mean that we are subject to theimpacts of changes in the global markets and theincreased investor uncertainty following these events
is something that IDA will continue to monitor closely
throughout the current strategy.
Brexit has been a significant focus for IDA Ireland inrecent times with increased resources, new marketingstrategies and events taking place in order to highlight
Ireland’s suitability for companies looking to maintainEU market access into the future.
The continued employment growth and decreasing
unemployment rate in Ireland is consistent with an FDIbase currently increasing its presence in Ireland. At 6.4%,
the rate is at its lowest level in almost nine years. This is aremarkable turnaround for the Irish economy and foreign
investment has been a key catalyst in this area.

Martin Shanahan
Chief Executive Officer

Chairman & CEO Overview
Competitiveness

Performance

Ireland has shown a remarkable capacity to absorb
foreign investment. That being said, the competition
from other countries to win foreign investment has
never been stronger.

Total employment at overseas companies now stands
at 199,877 people, the highest level on record.

IDA Ireland is constantly asked about what more can bedone to win investment for Ireland. Put simply, we muststrive to remain competitive on as many fronts as possible.
Companies that choose to locate in Ireland do so for manyreasons. For some, complex checklists involving over 40
different variables such as education, track record, airaccess, are necessary to enable them to make a decision.
These factors can range from quantity of office spaceand domestic housing to international air links andtaxation rates.
The National Competitiveness Council has recently
underlined the need to maintain a competitive costbase here in Ireland. A competitive cost base has thepotential to create a virtuous circle between inflation,
wage expectations and cost competitiveness.
IDA Ireland has consistently called for continued
investment in infrastructure across the State. This
will greatly support efforts to win foreign investment.

IDA client companies created 18,627 jobs on the ground
during the year across a range of sectors, with every
region of Ireland posting net gains in jobs.
The latest results indicating a strong performance by
the organisation towards delivering its 2019 target of
80,000 new jobs and 900 investments.
The low level of losses has been remarkable and,combined with increasing gross numbers, havefacilitated a consistently increasing net job figures
for IDA Ireland. IDA Ireland does not see this low levelof losses being maintained indefinitely. IDA executives
will continue to work with our clients to ensure that theirbusinesses are doing everything possible to ensure theirlong-term survival.
A record number of investments secured during the year
rose to 244 from 213 in the previous year. The numberof new name investments increased to 99 from 94 in theprevious year. The strong net job creation performanceof 11,842 additional jobs in Ireland is a result of a verystrong pipeline of new investments and lower job losses
within the employment portfolio. Losses as a percentageof the overall employment portfolio were at their lowest
level in 19 years (1997).

Among the leading investments secured during
2016 were:- The announcement by Oracle that it plans to recruit 450
new hires to drive its Cloud business- First Data’s decision to establish an R&D Hub in Nenagh,
Co. Tipperary which will house up to 300 highly skilledemployees- Credit Suisse opened a Front Office trading floor in Dublin
which will house 100 new staff- Hubspot embarked on a hiring an additional 320 jobs toaccommodate future growth- Shire announced plans to expand its global biotech
manufacturing capacity with an investment of US$400m
and creating 400 new positions upon completion of its
project in Dunboyne, Co. Meath- Kellton Tech Solutions Limited, a global IT company,
established its EMEA headquarters in Drogheda, Co. Louth,
creating 100 jobs over five years.
- Wayfair Inc. (NYSE:W), one of the world’s largest online
destinations for home furnishings and décor announced the
expansion of its multi-lingual European Operations Centre in
Galway creating approximately 160 new jobs
- Amazon announced the creation of 500 new jobs in Dublin- Surmodics in Galway announced an investment of €16.5m
and creation of 100 new jobs in Ballinasloe- Fazzi Healthcare Services established a new Irish based coding
and healthcare services company in Limerick, creating 300
jobs over five years.

04Chairman & CEO Overview
Regions

Team Ireland

IDA Ireland has seen jobs growth across all of its regional
locations in 2016. 59% of all employment remains outsideof Dublin. In 2016, 52% of all jobs (gross) created by IDA
clients were based outside of Dublin.

IDA can only do its job with the help and assistance ofmany stakeholders across the wider system. In that context,
IDA Ireland looks forward to working with Taoiseach Leo
Varadkar TD and An Tánaiste & Minister for Enterprise andInnovation, Frances Fitzgerald TD. The Agency would like toexpress sincere thanks to Enda Kenny TD for his consistentwillingness to make himself available to meet with IDA
Clients at events across the world. Special thanks is also
due to our outgoing Ministers for Jobs, Enterprise &Innovation, Mary Mitchell O’Connor TD and Richard Bruton
TD, both of whom have greatly facilitated the continuing
increase in FDI into Ireland during their periods in DJEI.
IDA Ireland would also like to thank our outgoing Ministerfor Finance, Michael Noonan TD for his work on behalf of
IDA Ireland, both at home and abroad.

While there continues to be a global trend towards FDI
favouring large urban centres, IDA statistics continue
to show the strength and resilience of FDI in regional
locations.
As always, investments are secured with the help of theentire local enterprise community and IDA wished toacknowledge the efforts of the many county councils,
local representatives and businesses who helped sell
Ireland as a location for investment in 2016.
IDA’s property building plan continued in earnest in2016 with tenants secured for both Waterford andAthlone locations. Buildings in Sligo, Castlebar andTralee have also reached completion stage with clientinterest agreed for the Sligo facility. Tralee and Castlebar
are now included in IDA’s Marketing programme. The next
construction phase includes Galway, Dundalk and Limerick
locations where IDA plans to be on site before the endof 2017. The remaining buildings included in the
programme are for Carlow, Athlone and Waterford.
These are scheduled to commence in 2018.

IDA Ireland looks forward to working with all membersof the new Cabinet and all public representatives.

IDA Ireland reports into the Department of Jobs, Enterpriseand Innovation and also works closely with the Department
of Foreign Affairs and Trade and its embassy network, andother Government agencies such as Enterprise Ireland,
Science Foundation Ireland, Higher Education Authority,
Solas, NAMA, Eirgrid, NTMA, Coillte, local Authorities,
Tourism Ireland and many private sector organisations
and Chambers of Commerce.
IDA’s most powerful marketing tool is its clients and we
also wish to acknowledge the many multinational and
Irish companies who gave up their time to generously meetwith prospective investors visiting Ireland during 2016.
Most crucially of all, we would like to pay tribute to thestaff of IDA Ireland itself, whose work and dedication arewhat drives these results. These staff are based at home
and abroad, but whatever their location, their diligence,
drive and energy is recognised here.

Frank Ryan
Chairman05

Martin Shanahan
Chief Executive

Statistics

06

Statistics

IDA Ireland Indicators
Indicator

Origin of IDA Ireland Supported Companies 20162016 Value

OriginNo of Companies

Total Employment

Total of Investments Approved

244

United States

722

144,058

No of Greenfield Projects

99

Germany

92

12,160

No of Expansion Projects

91

United Kingdom

111

8,332

No of Research, Development & Innovation Projects

54

France61

6,671€1.12bn

Rest of Europe

169

16,21743%

Rest of World

163

12,4391,318

199,877

Investment in Research, Development & Innovation Projects% of Investments Located outside Dublin
Average Salary in Investments€51,237

Total R&D in-house Expenditure€1.5bnTotal

Source: DJEI Annual Employment Survey 2016.
Note * R&D in-house expenditure data refers to 2015.

07

Note: Includes full-time and part-time employees.

Statistics (continued)

Total Employment by Regionin IDA Ireland Supported Companies

Employment in IDA Supported Companies
			

2016

Job Gains*		

18,627Dublin & 						2015/2016

Source: IDA Ireland 2016

Employment in IDA Supported Companies		

IDA Region
2012
2013
2014
2015
2016
%
						
ChangeMid-East

76,32081,15084,51090,76596,300

6.1%

Mid-West

13,90014,107

14,714

15,627

17,143

9.7%

South-East

12,072

12,003

12,462

12,693

13,369

5.3%

2015

2016

Total Employment

188,035

199,877

South-West 27,921

29,06430,31934,232

36,0595.3%

Full Time

168,860

180,838

Midlands

3,937

3,915

4,023

4,222

4,280

1.4%

Other

19,17519,039Border

8,661

9,127

9,677

10,09010,656

5.6%

Net change in total employment

12,818

11,842

West

18,171

18,956

19,512

20,40622,070

8.1%% Net change in total employment		

6.3%

168,322 175,217 188,035 199,877

6.3%

IDA Ireland 160,982

			
Source: DJEI Annual Employment Survey 2016, Time series data.

Source: DJEI Annual Employment Survey 2016.

Note: Other Employment includes part-time and short term contract employees.

Note: Includes part-time, temporary and short-term contract employees.

* 52% of all jobs (gross) created by IDA clients were based outside of Dublin.

08

Statistics (continued)

Total Employment by Sector in IDA Ireland Supported Companies
Sector
2012
2013
2014
2015
2016
%change						
2015/2016
Pharmaceuticals

22,346

22,79923,08425,02926,880

7.4%

Computer Electronic & Optical Equipment

16,31017,292

18,12020,454

20,213

1.2%

Medical & Dental Instruments & Supplies

25,49625,652

26,663

26,903

28,911

7.5%

Metals & Engineering

11,272

11,325

11,145

11,441

11,482

0.4%

Miscellaneous Industry

6,847

7,067

6,828

7,175

7,421

3.4%

(incl software)

78,711

84,18789,377

97,033104,970

8.2%

Total

160,982

168,322

175,217

188,035

199,877

6.3%

International & Financial Services

Source: DJEI Annual Employment Survey 201609

Statistics (continued)

Economic Impact of FDI:The Department of Jobs, Enterprise and Innovation estimates that for

The ABSEI (Annual Business Survey of Economic Impact) survey results

every 10 jobs generated by Foreign Direct Investment (FDI) directly,

for 2015 (latest data available) include data for Exports, Irish Economy

another 8 are generated in the wider economy. This translates into

Expenditure, in-house R&D and capital expenditure as follows:

59,779 jobs that were supported by FDI at the end of 2016. Secondary-

IDA client exports increased 13.1% to €148.5bn in 2015.

economic benefits impact positively on the construction industry,-

Expenditure in the Irish economy grew 2.4% to €18.8bn in 2015.
This is made up of expenditure on payroll (€10bn), Irish services 		the retail sector and the hospitality industry.

(€5.2bn), and Irish materials (€3.6bn).
-

In-house R&D Investment grew 3.4% to €1.53bn in 2015.

-

IDA clients invested €5.5bn in capital projects in 2015.

IDA Ireland Cost per Job Sustained Constant 2016 Prices
2004-20102005-20112006-20122007-20132008-20142009-20152010-2016

13,96013,876

13,457

12,716

11,955

10,5789,148

IDA Ireland (€)

Source: DEJI Annual Employment Survey 2016
Note: The cost per job sustained is calculated by taking into account IDA Ireland grant expenditure to all firms in the period of calculation.
Only jobs created during and sustained to the end of each seven year period are credited in the calculations.

10Corporate
Governance

11

Board 2016
The Board operates to best practice corporate governanceprinciples and in line with the guidelines set out in the‘Code of Practice for the Governance of State Bodies’
as issued by the Department of Public Expenditure &Reform, both in its own activities and in its use ofcommittees.
It is responsible for setting the broad policies of theorganisation and for overseeing its operation. It
performs these functions directly and through theoperation of focused Board Committees. Responsibility
for the implementation of policy rests with executive
management.
The Board has statutory authority to approve grant aid up
to the levels set out in the Industrial Development Acts
and to recommend grant aid above these specified levels
to Government. In accordance with the Ethics in Public
Office Acts, 1995 and 2001, IDA Ireland Board Members
furnish a Statement of Interests to the Secretary and to
the Standards in Public Office Commission.
In accordance with the ‘Code of Practice for theGovernance of State Bodies’, IDA Ireland fully complies
with Government policy on the pay of Chief Executives
and State Body employees and with Government
guidelines on the payment of fees to Board Members.

12Frank Ryan
Chairman, IDA Ireland

Attendance by Board Members at Board Meetingsin 2016 (11 Meetings in 2016)*

Martin Shanahan
Chief Executive Officer, IDA Ireland

Board Members AttendanceFrank Ryan - Chairman

11 meetings

Martin Shanahan

10 meetings

Alan Gray

10 meetings

John Murphy

7 meetings

Lionel Alexander

10 meetings

Caroline Dowling

5 meetings

Geraldine McGinty

11 meetings

Peter Cassells

8 meetings

Denis Collins

11 meetings

Barry O’Sullivan

10 meetings

Anne Fitzsimons

4 meetings

Peter Cassells 2
Executive Director, Edward M Kennedy
Institute, NUI Maynooth, Co. Kildare

Marian Corcoran

4 meetings

Dermot Mulligan

3 meetings

John Murphy 3
Secretary General, Department of Jobs,
Enterprise and Innovation* 10 scheduled Board meetings & 1 special meeting

Lionel Alexander
Chairman, Tralee Institute of Technology
Geraldine McGinty
Assistant Professor of Radiology, Weill
Cornell Medical College, New York
Assistant Attending Radiologist, New York
Presbyterian Hospital
Alan Gray 1
Chairman, London Economics
Managing Partner, Indecon International
Economic Consultants
Director, Tedcastle Oil Products
Director, Hillington Investments

Board 2016 (continued)
Denis J Collins
CEO, Smarter Dynamics
Chairman, LearnLode Ltd
Anne Fitzsimons
COO - Services Integration Hub IBM
Global Business Services
Director IBM Ireland
4

Anne Fitzsimons 4
was appointed as a director on 26th August 2016
Marian Corcoran 5
was appointed as a director on 26th August 2016
Dermot Mulligan 6
was appointed as a director on 12th October 2016

Marian Corcoran 5Founder MC 2 Change Limited

John Murphy 3
retired as a director on 30th September 2016

Dermot Mulligan 6
Asst. Secretary General
Innovation & Investment Division
Dept of Jobs, Enterprise & Innovation

Alan Gray 1
retired as a director on 31st December 2016

Caroline DowlingBusiness Group President, Integrated
Network Business Unit and Global Services
Business Unit, Flextronics
Barry O’Sullivan
General Manager, Johnson and Johnson
Vision Care (Vistakon)
Board member, American Chamberof Commerce
Deirdre Lyons
Secretary, IDA Ireland

13Peter Cassells 2
retired as a director on 31st December 2016

Committees of the Board & the Management Investment Committee
The Board committee structure is outlined below.
Audit, Finance and Risk Committee
Assists and supports the Board in discharging its
legal and accounting responsibilities; communicateswith external auditors and evaluates and controls theinternal audit function; reviews financial planning andthe system of internal financial control. It also oversees
the implementation of the organisation’s risk policy
including the development of its risk register andmonitors budgeting and banking arrangements.
Members 2016:
Peter Cassells (Chair)John Murphy / Dermot Mulligan
Denis Collins
Geraldine McGinty
Anne Fitzsimons
Property Committee
Reviews policy with regard to the financing, provision,
maintenance and disposal of property, approves
procedures with regard to tendering and awardingof contracts and approves expenditure/sales of up
to €12million.
Members 2016:
Lionel Alexander (Chair)
Martin Shanahan
Alan GrayPeter Cassells

14

Regional Development Committee
The Regional Development Committee provides
guidance on the implementation of the regional
development aspects of IDA’s Strategy. Reviews andmonitors IDA’s annual and cumulative regional targets
and its involvement in national and regional strategy
development.

Management Development
and Remuneration Committee
Reviews the performance of the senior management
team and plans for management development andsuccession. The Committee also reviews remunerationof senior management in the context of Government
guidelines.

Members 2016:
Alan Gray (Chair)
Barry O’Sullivan
John Murphy/Dermot Mulligan
Mary Buckley
Denis Collins

Members 2016:
Frank Ryan (Chair)
Martin Shanahan
Lionel Alexander
Caroline Dowling

Sectoral Development Committee
The Sectoral Development Committee reviews andrecommends sectoral initiatives/investments to the Board.
Monitors progress on sectoral initiatives and ensures theinfrastructure exists to support the initiatives.
Reviews progress on the National Institute for
Bioprocessing Research and Training (NIBRT) investment
project to ensure that it is delivering in accordance withthe objectives and conditions approved by the IDA Board.
Sectoral Development
Committee Members 2016:
Geraldine McGinty (Chair)
Barry O’Sullivan
Lionel Alexander
Marian Corcoran

Management Investment Committee
Reviews all proposals for grant assistance andrecommends them to the Board. Under powers
delegated by the Board the Committee approves
grants up to a maximum of €500,000.
Members 2016
Martin Shanahan (Chair)
Mary Buckley
Eileen Sharpe
Regina Gannon

Corporate Governance
IDA Ireland is an autonomous Statutory Agency set up
under the Industrial Development Acts 1986 - 2014.
The Agency operates in accordance with the provisionsof the Acts and under the aegis of the Minister for Jobs,
Enterprise and Innovation, who is empowered to provide
funds to discharge its obligations and issue general policy
directives/seek information on the Agency’s activities.
While the primary source of corporate governance for IDA
Ireland are the Industrial Development Acts, the Agency
is also required to comply with a range of other statutory(National and EU) and administrative requirements. IDA
Ireland affirms that it met its obligations in regard to allof these requirements. In particular, it has the following
procedures in place to ensure compliance with specificrequirements:
1 General Administrative and Policy Requirements
At national level, IDA Ireland works closely with officialsof the Department of Jobs, Enterprise and Innovationand officials of other Government Departments andState Agencies in advancing its objectives and ensuring
compliance with statutory, administrative and Ministerial/
Government requirements. At local level, the Agency
works closely with Local Authorities, Educational
Establishments, other State Agencies and a wide rangeof Local Organisations/Public Representatives to develop
the local environment necessary for attracting newinvestment. IDA Ireland continues to implement a
policy directive issued by the Minister for Jobs, Enterpriseand Innovation on 18 December 2006 and which reads
as follows:

15“The European Commission adopted Regional Aid
Guidelines for the periods 2007-2013 and 2014-2020
together with respective Block Exemption Regulations
for each of the two periods, which enables regional
aid schemes to be operated without prior approval of
the European Commission. In order to comply with therequirements arising from the Regional Aid Guidelines
and the Block Exemption Regulations new Administrative
Rules relating to Industrial Development regional aid
schemes for each respective period were also drawn up.
IDA also provides research and development grants inaccordance with the Community Framework for State aid
for Research and Development and Innovation 2006”.
2 Code of Practice for the Governance of State Bodies(2016)As the beginning of the financial reporting period (i.e. 1stJanuary 2016) is before 1st September 2016 (the effective
date of the new 2016 Code of Practice for the Governanceof State Bodies), IDA has chosen to continue to apply the2009 version of the Code of Practice for the Governance ofState Bodies in relation to the 2016 Financial Statements.
The Code of Practice for the Governance of State Bodies
2009 has been complied with.
Section 2.6: Complied with by the Chairman of theBoard in a separate letter furnished to the Minister for
Jobs, Enterprise and Innovation.
Sections 1.8, 7.7 & 7.5 (iii): An effective system ofinternal financial control is maintained and operated by the
Agency (Statement on Internal Financial Control, page 19).

Section 9.1.1: Government policy on the pay of Chief
Executives and State Body employees is being compliedwith (Board 2016, page 12 and Notes to the Financial
Statements No 8, pages 29-30).
Sections 1.15 & 1.17: The Board has approved the five year
IDA strategy “Winning Foreign Direct Investment 20152019”. The Board also adopted the Horizon 2020 strategy.
In addition, the Board has established processes to ensure
sound corporate planning, etc., as required by this Section(Board 2016, page 12 and Statement on Internal Financial
Control page 19).
Section 9.3.1: The IDA travel procedures reflect theGovernment’s travel policy requirements and are being
complied with.
Section 8.47: The Chairman of the Board, in the separate
letter furnished to the Minister for Jobs, Enterprise andInnovation, confirms that the IDA has complied with its
obligations under tax law.
The schemes and programmes administered by the
IDA are in accordance with the legislation governing
the operation of the Agency and appropriate risk
management systems are in place.
3 Revenue Commissioners’ Statement of Practice
Sp-It/1/04 on Tax Treatment of Remuneration ofMembers of State and State Sponsored Committees
and Boards
IDA Ireland fully complies with this Statement of Practice.

Corporate Governance (continued)
4 Guidelines For The Appraisal and Managementof Capital Expenditure Proposals
IDA Ireland has well-established robust proceduresin place for the Appraisal and Management of Capital
Expenditure projects arising under the Capital Grants
or Property programmes. These procedures comply withthe principles set out in the Guidelines for the Appraisaland Management of Capital Expenditure Proposals.
5 Employment Equality Acts, 1998 And 2004
Equality is an established priority for IDA. The organisation
has a progressive equality and diversity agenda andnew initiatives are developed on an ongoing basis.
IDA Ireland values diversity and strives to be an equality
employer where individual contribution is encouraged
and differences are valued. To this end, it is committed
to ensuring that no staff member of IDA, or applicant for
employment with IDA, receives less favourable treatment
than any other on grounds of gender, marital status,
family status, sexual orientation, religion, age, disability,
race, membership of the traveller community or on any
other grounds not relevant to good employment practice.
This applies to recruitment, working conditions anddevelopment opportunities.
IDA is committed to maintaining and developing abalanced work/life environment for all staff.
6 The Health, Safety and Welfare at Work Act, 2005
This Act, which replaces the provisions of the Safety,
Health and Welfare Act, 1988, consolidates and updates
the existing law. IDA Ireland continues to take appropriate
measures to protect the safety, health and welfare of
all employees and visitors within its offices to meet theprovisions of this Act. This extends to the Public Health(Tobacco) Acts 2002 and 2004.

16

7 Worker Participation (State Enterprise) Act, 1988
Consultative structures are operating effectively in
IDA Ireland and are a recognised feature of theorganisation’s communications and consultative structure.
The Joint Consultative Committee is welcomed as a positive
process by both management and staff. Additionally, afurther partnership arrangement has been establishedwith the Trade Unions to progress actions under theHaddington Road National Agreement.
8 Ethics in Public Office Act, 1995 and Standards in
Public Office Act, 2001
In accordance with the above Acts, all IDA Ireland Board
Members and staff holding designated positions havecompleted statements of interest in compliance withthe provisions of the Acts.
9 Freedom of Information Act 2014
IDA Ireland complies with this Act. Requests for
information under this Act should be addressedto the Freedom of Information Executive, IDA Ireland,
Wilton Park House, Wilton Place, Dublin 2.
10 Energy Efficiency
In compliance with the Government memorandumof June 2001, IDA Ireland, in the design, planning andconstruction of office and manufacturing buildings on
its Business and Technology Parks, applies ‘best practice’principles in all cases. The IDA’s offices in the regions
also conform to ‘best practice’ principles.
11 (I) Prompt Payment of Accounts
The Prompt Payment of Accounts Act 1997 (the Act),
which came into operation on 2 January 1998, wasamended by the European Communities (Late Payment
in Commercial Transactions) Regulations 2002.

Management is satisfied that IDA complied with theprovisions of the Act in all material respects.
11 (II) Prompt Payment to Supplier
IDA Ireland is committed to meeting its obligations underthe 15 day Prompt Payment Rule, which came into effecton 1 July 2011.
The provision ensures that payments to suppliers in
respect of all valid invoices received will be made within
15 calendar days.
IDA Ireland reports quarterly in the “Corporate
Governance” section of the website on theimplementation of the 15 day Prompt Payments rule.
12 Protected Disclosure
In line with the legal requirement under section 21 of theProtected Disclosures Act 2014, IDA Ireland has establishedand maintains procedures for the making of protecteddisclosures by workers who are or were employed by
IDA Ireland and for dealing with any disclosures made.
IDA Ireland has provided staff with written information
relating to the protected disclosures procedures.
There were no protected disclosures made to IDA Irelandin 2016.

Comptroller & Auditor General Reportfor Presentation to the House of the Oireachtas
Industrial Development Agency Ireland
I have audited the financial statements of the Industrial
Development Agency Ireland for the year ended 31
December 2016 under the Industrial Development Act
1993. The financial statements comprise the statementof income and expenditure and retained revenue reserves,the statement of comprehensive income, the statementof financial position, the statement of cash flows andthe related notes. The financial statements have been
prepared in the form prescribed under paragraph 7 of thefirst schedule of the Act, and in accordance with generally
accepted accounting practice.
Responsibilities of the Members of the Board
The Board is responsible for the preparation of thefinancial statements, for ensuring that they give atrue and fair view and for ensuring the regularity oftransactions.
Responsibilities of the Comptroller and Auditor
GeneralMy 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 State bodies in relation
to their management and operation.
My audit is carried out in accordance with theInternational Standards on Auditing (UK and Ireland) andin compliance with the Auditing Practices Board’s EthicalStandards for Auditors.

17

Scope of audit of the financial statements
An audit involves obtaining evidence about the amounts
and disclosures in the financial statements, sufficient togive reasonable assurance that the financial statements
are free from material misstatement, whether caused byfraud or error. This includes an assessment of– whether the accounting policies are appropriate
to the Agency’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 offinancial transactions in the course of audit. In addition,
I read the Agency’s annual report to identify materialinconsistencies with the audited financial statements
and to identify any information that is apparently
materially incorrect based on, or materially inconsistent
with, the knowledge acquired by me in the course of
performing the audit. If I become aware of any apparent
material misstatements or inconsistencies, I consider
the implications for my report.
Opinion on the financial statements
In my opinion, the financial statements– give a true and fair view of the assets, liabilities andfinancial position of the Agency as at 31 December
2016 and of its income and expenditure for 2016, and– have been properly prepared in accordance withgenerally accepted accounting practice.

In my opinion, the accounting records of the Agency were
sufficient to permit the financial statements to be readily
and properly audited. The financial statements are inagreement with the accounting records.
Matters on which I report by exception
I report by exception if I have not received all theinformation 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 thetransactions did not conform to the authorities
governing them, or– the information given in the Agency’s annual report
is not consistent with the related financial statements
or with the knowledge acquired by me in the courseof performing the audit, or– the statement on internal financial control does notreflect the Agency’s compliance with the Code ofPractice for the Governance of State Bodies, or– there are other material matters relating to themanner in which public business has been conducted.
I have nothing to report in regard to those matters uponwhich reporting is by exception.

Seamus McCarthy
Comptroller and Auditor General
22nd June 2017

Financial
Statements

18

Statement on Internal Financial Control
On behalf of the Board of IDA I acknowledge our
responsibility for ensuring that an effective system ofinternal financial control is maintained and operated by
the Agency.
The system can only provide reasonable and not absoluteassurance 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.
The Board has taken steps to ensure an appropriate
control environment is in place by:
establishing formal procedures through various
committee functions to monitor the activities andsafeguard the assets of the organisation;clearly defining and documenting management
responsibilities and powers;
developing a strong culture of accountability acrossall levels of the organisation.
The Board has also established processes to identify andevaluate business risks. This is achieved in a number ofways including:working closely with Government and various agencies
and institutions to ensure that there is a clear
understanding of IDA’s goals and support for the
Agency’s strategies to achieve those goals;
carrying out regular reviews of strategic plans both
short and long term and evaluating the risks tobringing those plans to fruition;
setting annual and longer term targets for each areaof our business followed by regular reporting on the
results achieved;carrying out regular reviews of developments andstrategies in our business sectors;
establishing and enforcing extensive standard

19

procedures and provisions under which financial
assistance may be made available to projects,
including provisions requiring repayment if the project
does not fulfil commitments made by the promoter.
The system of internal financial control is based ona framework of regular management information,
administrative procedures including segregation ofduties, and a system of delegation and accountability.
In particular it includes:
a comprehensive budgeting system with an annual
budget which is reviewed and agreed by the Board;
regular reviews by the Board of periodic and annual
financial reports which indicate financial performanceagainst forecasts;
setting targets to measure financial and otherperformances;
clearly defined capital investment control guidelines;
formal project management disciplines.
IDA has an outsourced internal audit function, which
reports directly to the Audit, Finance & Risk Committeeof the Board. This committee meets on at least a quarterly
basis to review reports prepared by Internal Audit and otherdepartments. The Audit, Finance & Risk Committee in turnkeeps the Board informed of the matters that it has
considered.
The internal audit function operates in accordance with
the Framework Code of Best Practice set out in the Codeof Practice for the Governance of State Bodies. A rolling
three-year Internal Audit work plan is determined by the
Audit, Finance & Risk Committee and revised annually
where required. The current work plan takes accountof areas of potential risk identified in a risk assessment
exercise carried out by management and reviewed by
the Audit, Finance & Risk Committee and the Board.

The Internal Auditor provides the Committee with quarterly
reports on assignments carried out. These reports
highlight deficiencies or weaknesses, if any, in thesystem of internal financial control and the recommended
corrective measures to be taken where necessary.
In 2014, the Department of Public Expenditure andReform issued a circular in relation to management ofand accountability for grants from exchequer funds.
This requires that grantors stipulate that grant recipients
disclose specific information in their financial statements.
This includes details of the grant amount, the purpose forwhich funds were applied and information on salary rates
in operation in the entity. IDA sought a waiver from theserequirements from the Department of Jobs, Enterpriseand Innovation, on the basis that IDA’s strong transactional
controls satisfy the aims of the Circular. This waiver
was granted.
The Board’s monitoring and review of the effectivenessof the system of internal financial control is informed by
the work of the Internal Auditor, the Audit, Finance & Risk
Committee, which oversees the work of the Internal
Auditor and the executive managers within IDA Ireland
who have responsibility for the development andmaintenance of the financial control framework.
I confirm that, in respect of the year ended 31 December
2016, the Board conducted a review of the system ofinternal financial control.
Signed on behalf of the Board

Frank Ryan
Chairman
8th June 2017

Statement
Statement ofof Board
Board Members’
Members’ Responsibilities
Responsibilities
Board Members’ Report
For the year ended 31 December 2016
The Industrial Development Agency Ireland (IDA) wasestablished on 1 January 1994 under the provisionsof the Industrial Development Act, 1993.

Paragraph 7(2) of the First Schedule to the Industrial
Development Act, 1993 requires the Agency to keep,in such form as may be approved of by the Minister
for Jobs, Enterprise and Innovation with the consent
of the Minister for Public Expenditure and Reform,
all proper and usual accounts of money received
and expended by it. In preparing those accounts,
the IDA is required to:-20

select suitable accounting policies andapply them consistently-

make judgements and estimates that arereasonable and prudent-

prepare the Financial Statements on a going
concern basis unless it is inappropriate topresume that the Agency will continue inoperation-state whether applicable accounting standards
have been followed, subject to any material
departures disclosed and explained in thefinancial statements

The Board is responsible for keeping proper booksof account which disclose with reasonable accuracy
at any time the financial position of the Agency andwhich enables it to ensure that the Financial
Statements comply with Paragraph 7(2) of the First
Schedule to the Industrial Development Act, 1993.
The Board is also responsible for safeguarding all theassets of the Agency and hence for taking reasonable
steps for the prevention and detection of fraud andother irregularities.
On behalf of the Board of IDA:
Date: 8th June 2017

Frank Ryan
ChairmanMartin Shanahan
Chief Executive

Peter Cassells
Chairman
Audit, Finance & Risk Committee

Statement of Income & Expenditure& Retained Revenue Reserves

For Year Ended 31 December 2016		
20162015			Amounts shown under Income
Notes
€’000
€’000
and Expenditure are in respectof continuing activities. The
Income									Statement of Income andOireachtas Grants
2
155,515
155,713			
Expenditure and Retained
National Training Fund
33,000
3,000			Revenue Reserves includes
Grant Refunds
4346
2,536			all gains and losses recognised
Rental Income		
753
1,143			in the year.
Other Income
52,286
2,113			Profit on Disposal of Assets
6
1,333
5,440			The Statement of Cash Flows andNet Deferred Pension Funding
19 (f)
6,138
4,948
notes 1 to 25 form part of these		
169,371
174,893
Financial Statements.
										Expenditure									On behalf of the Board of IDA:
Grants Payable
7
95,61398,563		
Promotion, Administration and General Expenses
8 (a)45,50944,780			
Date: 8th June 2017
Lease Exit Charges
8 (g)9,400			Industrial Building Charges
9
4,758
3,168			Depreciation Charges
10
7,749
3,872			Impairment Charges / (Reversals)
10(36,064)-			Frank Ryan
Pension Costs
19 (c)
6,511
6,036
Chairman		
124,076
165,819
Surplus for the Year before Appropriations		
45,295
9,074			Contribution to the Exchequer
11
(331)
-			
Transfer (to) Capital
12(40,552)(766)
Surplus for the year after Appropriations		
4,412
8,308

Martin Shanahan
Chief Executive

Balance Brought Forward at 1 January		
(3,452)(11,760)										Peter Cassells
Balance Carried Forward at 31st December 2016		
960(3,452)Chairman										Audit, Finance & Risk Committee																																																										

21Statement of Comprehensive Income

For Year Ended 31 December 2016		
20162015			The Statement of Cash Flows andnotes 1 to 25 form part of these
Notes
€’000
€’000
Financial Statements.
Surplus before Appropriations		

45,295

9,074			Experience gain / (loss) on retirement benefit obligations

19 (d)

117(666)			Change in assumptions underlying the present value of retirement benefit obligations

19 (d)(27,764)(3,532)			

Total actuarial gain / (loss) in the year		(27,647)(4,198)			

Adjustment to deferred retirement benefits funding		

27,647

4,198			Total Comprehensive Income for the year		45,295
9,074 							On behalf of the Board of IDA:
Date: 8th June 2017

Frank Ryan
Chairman								Martin Shanahan										Chief Executive																																								Peter Cassells
Chairman
Audit, Finance & Risk Committee

22

Statement of Financial Position

As at 31 December 2016		
20162015			The Statement of Cash Flows and
Notes
€’000
€’000
notes 1 to 25 form part of these
Financial Statements.
Tangible Fixed Assets										Industrial Property
13
152,724
112,088								On behalf of the Board of IDA:
Other Fixed Assets
14592
676										153,316
112,764								Date: 8th June 2017
Intangible Assets 										Telecommunication Assets
15-								Total Tangible and Intangible Assets		

153,316

112,764								Frank Ryan
Current Assets										Chairman
Receivables
16
15,34014,069							Cash and Cash Equivalents		
6,993
9,249										22,33323,318						Current Liabilities										Martin Shanahan
Payables
17(9,082)(6,654)							Chief Executive
Net Current Assets		
13,251
16,664							Long Term Receivables											Peter Cassells
Receivables: amounts falling due after more than one year
16
139210								Chairman
Audit, Finance & Risk CommitteeLong Term Payables											Payables: amount falling due after more than one year17
(3,000)								Provisions											Provisions for Liabilities and Charges
18(12,430)(17,326)								Pensions											Deferred Pension Funding Asset
19 (f)
139,918
106,133								Pension Liability
19 (e)(139,918)(106,133)								Total Net Assets		
154,276
109,312								Representing:											Capital Account12
153,316
112,764								Retained Revenue Reserves		
960(3,452)										154,276
109,312 							23																Statement of Cash FlowsFor Year Ended 31 December 2016		
20162015			
Notes
€’000
€’000
Net Cash Flows From Operating Activities									Excess Income over Expenditure		
45,295
9,074		
(Increase) / Reduction in Value of Fixed Assets									- Industrial Property
10(28,651)
3,506		- Other Fixed Assets & Telecommunication Assets
10
336
366		
Expenditure Capitalised
8 (a)
(250)
(70)		
Profit on Disposal of Assets
6(1,333)(5,440)		
Bank Interest
5
(4)
(4)		
Contribution to the Exchequer
11
(331)
-		
(Increase) in Receivables amounts falling due within one year16
(1,271)(2,564)		
Increase in Payables amounts falling due within 1 year
17
2,428
3,224		
(Decrease) in Provisions and Charges
18(4,896)(5,769)		
Decrease in Receivables amounts falling due after more than one year
16
71
62		
(Decrease) / Increase in Accounts Payable amounts falling due after more than one year 17(3,000)3,000												Net Cash Inflow from Operating Activities		
8,394
5,385												Cash Flows from Investing Activities									Acquisitions		
(15,431)(8,529)		
Disposals		
4,777
9,401		Net Cash Flows from Investing Activities		
(10,654)872		
										Cash Flows From Financing Activities									Bank Interest Received		
4
4		
Net Cash Flows from Financing Activities		44												Net (Decrease) / Increase in Cash and Cash Equivalents		
(2,256)
6,261		Cash and cash equivalents at 1 January		
9,249
2,988		Cash and Cash Equivalents at 31 December		
6,993
9,249																						

24Notes to the Financial Statements
1

Accounting Policies
The basis of accounting and significant accounting
policies adopted by IDA are set out below. They haveall been applied consistently throughout the year
and the preceding year:(A) GENERAL INFORMATIONThe Industrial Development Agency (IDA) Ireland
was established on 1 January 1994 under theprovisions of the Industrial Development Act, 1993.
IDA Ireland’s head office is located at Wilton Park
House, Dublin 2. IDA Ireland is a Public Benefit Entity(PBE). A Public Benefit Entity provides goods orservices for the general public, community or social
benefit and where any equity is provided, it is tosupport the entity’s primary objectives rather thanwith a view to providing a financial return to equity
providers, shareholders or members.
IDA Ireland’s primary objective as set out in Part II		 S8 of the Industrial Development (IDA Ireland) Act
		 1993 is:		 - to promote the establishment and development,
			 in the State, of industrial undertakings from outside			 the State		 - to make investments in and provide supports to			 industrial undertakings which comply with the			 requirements of the enactments for the time			 being in force.
		 - to administer such schemes, grants and other			 financial facilities requiring the disbursement
			 of European Union Funds and such other funds			 as may from time to time be authorised by the			 Minister for Public Expenditure and Reform, and			 to carry out such other functions as may from			 time to time be assigned to it by the Minister.
				

25

(B) STATEMENT OF COMPLIANCE
		 AND BASIS OF PREPARATION		The Financial Statements have been prepared in		 accordance with the historical cost convention,
		 modified in compliance with Financial Reporting
		 Standard 102 (FRS 102) issued by the Financial
		 Reporting Council in the form approved by the		 Minister for Jobs, Enterprise and Innovation with		 the consent of the Minister for Public Expenditure		 and Reform.
		 The presentation currency of the Financial Statements
		 of IDA Ireland is in Euro. The functional currency of		 IDA Ireland is considered to be Euro as it is the primary		 economic environment in which the agency operates.
		(C) REVENUE		Oireachtas Grants
		 Revenue is generally recognised on an accruals basis:		 the one exception being Oireachtas Grants which are		 recognised on a cash receipts basis.
		 Refunds of Grants Paid
		 Grants paid become refundable in certain
		 circumstances, such as liquidation / dissolution of		 the recipient company, or if the conditions of the		 grant are not met. Grant refunds are recognised
		 when it is probable that the money will be received
		 by IDA and the amount can be estimated reliably;		 therefore they are accounted for on an accruals basis.
		 Interest Income
		 Interest income is recognised on an accruals basis
		 using the effective interest rate method.
		 Rental Income
		 Rents comprise amounts due under the terms of lease		 agreements for periods of up to 35 years entered into		 between the Agency and tenants, charges for the use		ForFor
Year
Year
Ended
Ended
3131
December
December
2016
2016

		 of undeveloped lands and estate maintenance		 charges billed to tenants and are accounted for		 on an accruals basis.
		 Other Revenue
		 Other revenue is recognised on an accruals basis.
(D) TANGIBLE FIXED ASSETS		 Tangible Fixed Assets comprise :(i)		 Land which is held for the purposes
		 of industrial development.
(ii)		 Site development works.
(iii) Industrial buildings leased to tenants including
		 buildings in the course of sale where title had not		 passed at the year end.
(iv) Vacant property available for industrial promotion
		 or in the course of sale where title had not passed
		 at the year end.
(v)		 Other Fixed Assets including computer and office		 equipment, fixtures and fittings and motor vehicle.
				 Tangible Fixed Assets are stated at cost less		 accumulated depreciation and provision for		 impairment. Depreciation is provided on all tangible		 assets, other than land at rates calculated to write		 off the cost, less estimated residual value, of each		 asset on a straight line basis over the estimated		 useful lives as follows :(i)		 Buildings
3 % per annum(ii)		 Site Development 10 % per annum(iii) Office Equipment /		 Fixtures & Fittings 20 % per annum(iv) Computers
33 % per annum(v)		 Motor Vehicles
25 % per annum(vi) Land
0 % per annum
		 Residual value represents the estimated amount which		 would currently be obtained from disposal of an asset,
		 after deducting estimated costs of disposal, if the		 asset were already of an age and in the condition
		 expected at the end of its useful life.

Notes to the Financial Statements (continued)
		Impairment of Property, Plant and Equipment
		 Provisions for impairments may be made following
		 reviews of fixed assets and telecommunication assets
		 carried out by officers of IDA or independent valuers, as		 appropriate, if events or changes in circumstances or		 economic conditions indicate that the carrying		 amount of the assets may not be fully recoverable.
Any such provisions will be recognised in theStatement of Income and Expenditure and Retained
Revenue Reserves in the year in which they are made.
Where a subsequent review indicates that thecircumstances which gave rise to a provision for
impairment no longer exists or have changed
materially the accumulated provision for impairment
will be reduced accordingly. If there is objective
evidence of impairment of the value of an asset, an
impairment loss is recognised in the Statement of
Income and Expenditure and Retained Revenue
Reserves in the year. Reversals of impairments inprevious years are accounted for through theStatement of Income and Expenditure and Retained
Revenue Reserves. The cost of land, site development
		 and industrial property includes an apportionment of
		 administration costs associated with the acquisition or		 development of the assets.
(E) INDUSTRIAL PROPERTY		 Industrial Property included in tangible fixed assets
		 has been acquired, developed or constructed for the		 purposes of assisting in the promotion and		 development of industry and is not considered to be		 investment property but normal fixed assets. By way
		 of memorandum Income and Expenditure in respect		 of Industrial Property transactions are set out in note		 22 to the Financial Statements.
(F) INTANGIBLE FIXED ASSETS:
		 Intangible Fixed Assets comprise telecommunication
		 assets which constitute an indefeasible right of use of26

		 a designated portion of a global telecommunications
		 network for a period of 25 years from 2000.
(G) RECEIVABLES
		 Receivables are recognised at fair value, less a		 provision for doubtful debts. The provision for		 doubtful debts is a specific provision, and is		 established when there is objective evidence that
		 IDA will not be able to collect all amounts owed to it.
		 All movements in the provision for doubtful debts
		 are recognised in the Statement of Income and		 Expenditure and Retained Revenue Reserves.
		 Receivables include :(i)		 Properties sold on a deferred basis. Interest is charged
		 on these amounts at the Exchequer Lending Rates
		 advised by the Department of Finance or the EU
		 Discount Reference Rate as applicable.
(ii) Rents due under the terms of lease agreements,
for periods of up to 35 years, entered into between
the Agency and tenants, charges for the use of
undeveloped lands and estate maintenance charges
billed to tenants.
(iii) Fees from purchase options given on IDA property,
deposits paid by IDA for the purchase of property
where title had not passed to the Agency at 31
December, and the provision of other services.
(iv) Amounts due in respect of the disposal or leasingof telecommunication assets.
(v) Amounts due in respect of joint arrangements.
(vi) Amounts due in respect of loans advanced and		 interest thereon.
(H) PAYABLES COMPRISE AMOUNTS PAYABLE IN
		 RESPECT OF:(i)		 Creditors and Accruals.
(ii)		 Grants that have matured for payment when		 the grantee complies with stipulated conditions.
(iii) Deposits for uncompleted sales.

For Year Ended 31 December 2016(I)		 PROVISIONS FOR LIABILITIES AND CHARGES		COMPRISE:(i)		 Amounts provided in respect of potential costs
		 associated with the dilapidations provision of		 operating leases.
(ii)		 Amounts provided where the future costs arising		 under operating leases are estimated to exceed
		 the amounts recoverable from sub lessees.
(J)		 FOREIGN CURRENCIES		 Monetary assets and liabilities denominated in foreign		 currencies are translated at the exchange rates ruling		 at the Statement of Financial Position date. Revenues
		 and costs are translated at the exchange rates ruling		 at the dates of the underlying transactions. Profits and		 losses arising from foreign currency translations and		 on settlement of amounts receivable and payable in		 foreign currency are dealt with in the Statement of
		 Income and Expenditure and Retained Revenue
		Reserves.
			(K) LEASES
		 The rentals under operating leases are dealt with in		 the Financial Statements as they fall due. In the case of		 industrial property available for promotion a provision		 is made, where applicable, for future rental payments
		 by the Agency.
(L) EMPLOYEE BENEFITS
		Short-term Benefits
		 Short term benefits such as holiday pay are recognised
		 as an expense in the year, and benefits that are
		 accrued at year-end are included in the Payables
		 figure in the Statement of Financial Position.
		 Retirement Benefits
		 The Industrial Development (Forfás Dissolution) Act
		 2014 (No 13 of 2014) which was passed into law on
		 16th July 2014 made provision for the dissolution ofNotes to the Financial Statements (continued)
		 Forfás and provided for the establishment of IDA
		 Ireland, Enterprise Ireland and Science Foundation
		 Ireland as separate legal employers; each agency
		 developing its own pension scheme noting that staff
		 who are/were members of the Forfás Pension Scheme		 join the new Agency Schemes on superannuation		 terms no less favourable than those they enjoyed		 under the Forfás Scheme immediately before the date		 of transfer, agencies’ own staff becoming members
		 of these schemes; and these agencies accounting for		 the associated Pension Liabilities under FRS102. The
		 Department of Jobs Enterprise and Innovation assumes
		 legal responsibility for the existing Forfás pension
		 schemes, pensioners and former staff with preserved		 benefits.
Under the Public Service Pensions (Single Scheme andother provisions) Act 2012 new entrants to the PublicService on or after 1 January 2013 become members of
the Single Public Service Pension Scheme. IDA has thefull legal responsibility for its employees as their legal
employer. This includes responsibility for the pensionsof current employees who retire after 16th July 2014.
The Financial Statements also reflect the pension costsof IDA staff covered by the Single Public Service
Pension Scheme.
IDA’s pension costs reflect unfunded defined benefit
pension schemes, which are funded annually on a pay
as you go basis from monies available to it, including
monies provided by the Department of Jobs, Enterpriseand Innovation and from certain contributions
deducted from staff salaries. Pension costs reflect
pension benefits earned by employees in the period
and are shown net of retained staff pension
contributions. An amount corresponding to thepension charge is recognised as income to the extent
that it is recoverable, and offset by grants received in
the year to discharge pension payments. Actuarial

27

gains or losses arising on scheme liabilities arereflected in the Statement of Comprehensive Income
and a corresponding adjustment is recognised in theamount recoverable from the Department of Jobs,
Enterprise and Innovation. Pension liabilities represent
the present value of future pension payments earned
by staff to date. Deferred pension funding represents
the corresponding asset to be recovered in future
periods from the Department of Jobs, Enterprise andInnovation. Pension scheme liabilities are measured
on an actuarial basis using the projected unit credit
method.
(M) CRITICAL JUDGEMENTS, ESTIMATES
AND ASSUMPTIONSIn the application of IDA Ireland’s accounting policies,
management are required to make judgements,
estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily
apparent from other sources. The estimates andassociated assumptions are based on historicalexperience and other factors that are considered tobe relevant. Actual results may differ from theseestimates. The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions toaccounting estimates are recognised in the period
in which the estimate is revised if the revision affects
only that period, or in the period of the revision andfuture periods if the revision affects both current
and future periods. The following judgements andestimates have had the most significant effect onamounts recognised in the financial statements:
Residual values and depreciation of assets
Management have reviewed the asset lives andassociated residual values of all fixed asset classes,
and have concluded that asset lives and residual
values are appropriate.

For Year Ended 31 December 2016

Impairment reviews of assets
Assets that are subject to amortisation are reviewed
for impairment whenever events or changes incircumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying amountexceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value lesscost to sell and value in use.
Retirement benefit obligation
The assumptions underlying the actuarial valuations
for which the amounts recognised in the financial
statements are determined (including discount rates,
rates of increase in future compensation levels andmortality rates) are updated annually based on current
economic conditions, and for any relevant changes tothe terms and conditions of the pension and postretirement plans.
		
The assumptions can be affected by:(i) the discount rate, changes in the rate of
return on high-quality corporate bonds(ii) future compensation levels, future labour
market conditions(iii) changes in demographics
		Provisions
The Agency makes provisions for legal andconstructive obligations, which it knows to beoutstanding at the period end date. These provisions
are generally made based on historical or otherpertinent information and adjusted for recent trends
where relevant. However, they are estimates of thefinancial costs of events that may not occur for someyears. As a result of this and the level of uncertainty
attaching to the final outcomes, the actual out-turn
may differ significantly from that estimated.

Notes to the Financial Statements (continued)
2

Oireachtas Grants 							The Oireachtas Grants are provided under section 35 of the Industrial Development(Science Foundation Ireland) Act 2003. The aggregate amount provided to IDA in
respect of Grants for Industry and Grants for Industrial Property in the period
1 January 1994 to 31 December 2016 was €2.508bn.			
						The Oireachtas Grants as shown in the Financial Statements consist of the following
sums paid from Vote 32 - Jobs, Enterprise and Innovation:
			
2016
2015
			
€’000
€’000
Grants for Promotion and
Administration Expenditure Vote 32 - Subhead A5 (i)39,86539,713Grant for Industry
Vote 32 - Subhead A5 (ii) 92,756
98,000Grant for Industrial Property Vote 32 - Subhead A5 (iii) 22,894
18,000			
155,515
155,713
				
The Grant for Promotion and Administration Expenditure of €39.865m is stated
net of employee pension contributions of €943,538 (€886,433 - 2015) remitted
to the Exchequer.										3 National Training Fund					Included in the training grant payments of €9.729m (see note 7) are training grant 		
payments of €3m (€3m in 2015) which were met with funds received through the 		
Department of Jobs, Enterprise and Innovation from the National Training 		Fund, which is administered through the Department of Education & Skills Subhead 		
B3. Payments made are in compliance with the statutory requirements of the Fund
as provided for in section 7 of the National Training Fund Act, 2000.			
											

28

4For Year Ended 31 December 2016

Grant Refunds								When the conditions of a grant agreement are breached by a client company,
the grant is recoverable. During the year the Agency recovered €346k (€2.536m in2015) relating to grant refunds.																					5 Other Income
2016
2015
		
€’000
€’000
Income from sub-letting Property re-assigned from Forfás
226
Private sector sublets of Leased Office Accommodation
1,917
1,583
Bank Interest
4
4
Fee Income in respect of Undeveloped Lands
251
227
Interest on Industrial Property Transactions
54
27
Sundry Income
60
46
		
2,286
2,113
				
				
6 Profit on Disposal of Assets
2016
2015
		
€’000
€’000
Consideration (net of fees and direct expenses)
4,777
9,401
Historical Costs(7,598)(12,753)
Write back of provision for impairment
1,071
2,008
Write back of provision for depreciation
3,083
6,784
		
1,333
5,440
			
The profit on disposal of €1.333m is stated net of losses of €0.196m. 			
			Notes
Notes toto thethe Financial
Financial Statements
Statements (continued)(continued)
7

ForFor
Year
Year
Ended
Ended
3131
December
December
2016
2016

8 (b)
2016
2015
Grants Payable
2016
2015
Other remuneration costs comprise:
€’000
€’000
		
€’000
€’000
Wages and salaries
23,043
21,885
Capital19,504
13,095
Employer PRSI
1,303
1,213
Employment
18,97920,240Pension costs - employer’s contribution
R&D
44,76555,595
		
24,34623,098Training
9,729
8,808
			
Other Grants
2,636
825
In 2016 €843k of pension levy has been deducted and paid over to the Department
		95,61398,563of Jobs, Enterprise and Innovation.
						
8 (c)		Permanent Salary Breakdown
Number of Employees (WTE)
8 Promotion, Administration and General Expenses 20162015
Employee Benefits
2016
2015
(a)
€’000
€’000
€60,000 to €70,000
38
35
Board members’ fees, expenses and€70,001 to €80,000
26
31
remuneration - see 8 (d)279248€80,001 to €90,000
26
25
Other remuneration costs - see 8 (b)24,34623,098€90,001 to €100,000
1110Marketing, consultancy, promotions and advertising
10,022
8,710€100,001 to €110,000
1General administration
11,042
11,932€110,001 to €120,000
1
Costs of non industrial leased property€120,001 to €130,000
33
re-assigned from Forfas *
1,187€130,001 to €140,000
Audit fee50
50€140,001 to €150,000
23Provision for doubtful debts
20(375)€150,001 to €160,000
1
Less: Capitalisation of expenditure associated€160,001 to €170,000
1
1with industrial property development
(250)
(70)
		

45,50944,780* Includes costs for a property where the lease terminated in December 2015		
				

29

Notes
Notes toto thethe Financial
Financial Statements
Statements (continued)(continued)
8(d)Board members remuneration was as follows:Frank Ryan (Chairman)
Martin Shanahan (Chief Executive)
Lionel Alexander
Mary Campbell (Retired 2015)
Peter Cassells
Denis Collins
Marian Corcoran (Appointed 2016)
Caroline Dowling
Paul Duffy (Retired 2015)
Anne Fitzsimons (Appointed 2016)
Alan Gray
Geraldine McGinty
John Murphy
Barry O’Sullivan
		

2016
€
20,52011,97011,97011,9704,183
4,183
11,97011,97088,7362015€
20,52011,97011,9703,757
11,9703,757
63,944

Board Members expenses in 2016 amounted to €22,244 broken down €9,603
accommodation and €12,641 other travel, subsistence and vouched food expenses.		
		
		
2016
2015
Chief Executive Remuneration€€
Mr Martin Shanahan
168,210
168,210
Total
168,210
168,210		
The Chief Executive Officer (CEO) receives an annual salary of €168,210 and use of
a company car (ceased 28th February 2016) subject to benefit in kind of €2,345 		
(€14,070 in 2015). The CEO’s pension entitlement does not extend beyond thestandard public sector pension arrangements.		

30

ForFor
Year
Year
Ended
Ended
3131
December
December
2016
2016

8

(e)
Annual Rent Payable in respect of Leased Office Accommodation						
Number of
Lease Expiry
Gross Rent
Net Rent		
Offices
Date
Payable 2016
Payable 2016*
				
€’000
€’000
Head Office
1
2019
4,625
2,043
Regional Offices 42017-2028
323
323
Overseas Offices 18
2016-2021
2,007
2,007
				
6,955
4,373
		
*This takes account of amounts received from other State bodies and private
tenants that occupy part of the office buildings concerned.			
(i)		In the case of Head Office and ten overseas offices, accommodation is			co-located with other State Agencies and / or the Irish Government Missions.		
(ii) Two overseas leases were renewed in 2016.				
(iii) One regional office lease contains break clauses in 2017 and 2022.		
(iv) The Agency does not own any property which is used or available
		for the accommodation of its staff.

Notes
Notes toto thethe Financial
Financial Statements
Statements (continued)(continued)

ForFor
Year
Year
Ended
Ended
3131
December
December
2016
2016

8

(f)
Commitments under Operating Leases
At 31 December the commitment under operating leases is €26.2m. These leases will expire as follows:									2016			2015						€’000			
€’000			
		Non-Industrial		Property						Industrial
Property
Occupied underleasesIndustrial
Non-Industrial
Property
Property
Available for
Re-Stated
Promotion		Industrial
Property
Occupied underleases Re-StatedIndustrial 		
Property Available		for Promotion		
Re-Statedwithin one year
6,955
765
1,458
6,730
1,957
2,630 		in the second to fifth years inclusion
13,950117
295
17,2171,258
2,321		more than 5 years
2,663
488
-		
		
23,568881
1,754
24,435
3,215
4,951																													

31Notes
Notes toto thethe Financial
Financial Statements
Statements (continued)(continued)
8

ForFor
Year
Year
Ended
Ended
3131
December
December
2016
2016

(g)
9 Industrial Building Charges		
Lease Exit Charges in 2015		
These charges include the net costs associated with industrial buildings provided
The original leasehold interest, a full repairing and insuring lease for 65 years,
by the private sector and maintenance costs in respect of all promotable industrial 		in Carrisbrook House was taken by An Chomhairle Oiliúna (AnCO – forerunnerbuildings held by IDA. Costs comprise: professional, legal and consultancy costs 		
to Fas/SOLAS) in 1969. In 1976 the lease was assigned to the former Industrial 		€1.64m [2015 €1.008m], net operating lease costs €3.966m [€4.236m - 2015] and 		Development Authority and subsequently assigned to Forfás in 1994. Prior tobusiness park maintenance costs €4.048m [2015 €3.693m], reduced by the net 		the dissolution of Forfás in 2014, Carrisbrook House was assigned to IDA Ireland.
movement on provisions in respect of operating leases (as set out in note 18)€4.896m [2015 €5.769m].				
Carrisbrook House was 85% vacant for a number of years, albeit actively marketedby Forfás and IDA in difficult market conditions. The high cost of refurbishment was
10 Reduction in Value of Fixed Assets		
a principal factor in not reaching an agreement to sub-let the building. Also, IDA did
			
2016
2015
not have vacant possession of the entire building, due to the lease with a tenant to 		
		
Notes
€’000
€’000
2025, thereby limiting its marketability.
Depreciation Charges		- Industrial Property
13
7,413
3,506
In 2015 IDA considered a number of options in relation to the future use of the 		- Other Fixed Assets
14
336
366
building. Following consideration of the options, IDA decided to exit the lease with 		Impairment Charges / (Reversals)		
effect from December 2015 as it was the least costly option to the State. IDA entered- Industrial Property
13(36,064)
an agreement to pay the landlord a total of €9.4m over 3 years (present value					(28,315)
3,872€8.93m), the first payment being an amount of €2.4m which was paid in December 							
2015, with further payments totalling €4m paid in 2016. IDA took the decision in the
Depreciation is calculated in order to write off the cost of assets less, where applicable,
context that the State had a contractual liability to pay rent over the remaining 		
any impairment provision over their estimated remaining useful lives. No provision forlifetime of the lease to 2034 together with additional liabilities arising from a full 		
depreciation is made in respect of land or investments.
repairing and insuring lease.
Impairment charges arise where the book value of Industrial Property or 		
The payment of €9.4m (present value of €8.93m) compared significantly more 		Telecommunications Assets exceed their estimated recoverable value. Impairment 		
favourably to maintaining the lease at an estimated net present value of €22.58m
reversals arise where there is clear evidence that the recoverable value of Industrial 		over the remaining life of the lease, representing a substantial saving to the state, 		Property or Telecommunications Assets exceed their book value, up to the amountestimated at €13.65m.		
of the original impairment.
			
			
			
			
			

32

Notes
Notes toto thethe Financial
Financial Statements
Statements (continued)(continued)

ForFor
Year
Year
Ended
Ended
3131
December
December
2016
2016

11 Contribution to the Exchequer 		
13 Tangible Fixed Assets - Industrial Property 						By agreement with the Department of Jobs, Enterprise and Innovation receipts from
		
Land
Site
Industrial
Industrial
Total
promotion and administration activities, grant refunds, ESF receipts, the sale of 					 DevelopProperty
Property
industrial property and income derived from the sale and or leasing of 					
ment
Occupied Available fortelecommunication assets to the extent that they exceed the Agency’s expenditure 						 under Leases
Promotionrequirements, are refundable to the Exchequer. Contributions paid to the Exchequer
Cost
€’000
€’000
€’000
€’000
€’000
in 2016 amounted to €331k (€Nil in 2015):
At 1 January
264,446
152,702
22,795
7,821
447,764					 2016
2015
Additions
3,571
2,736
9,122
15,429					 €’000€’000
Transfers(1,952)
1,952
Administration				331
Disposals(4,159)(3,064)(142)(7,365)
At 31 December 263,858
152,374
20,701
18,895455,828
Grant Refunds				
Telecommunication Assets				
					
331
Provision for Impairment					
At 1 January
167,149
7,836
5,962
1,017
181,964
Charge /12 Capital		(Reversal)				 2016		2015
for Year(29,790)(5,898)(376)(36,064)
		
Notes
€’000
€’000
€’000
€’000
Transfers(548)
548
At 1 January			
112,764		111,998
Disposals(1,071)		
(1,071)Net Movements on:		
At 31 December 136,288
1,938
5,038
1,565
144,829- Industrial Property
13
40,636		707		- Other Fixed Assets
14(84)		59		 Provision for Depreciation
Transfer from Statement
At 1 January
141,447
13,132(867)
153,712of Income and Expenditure
Charge for Year
6,543
225
645
7,413
and Retained Revenue Reserves			 40,552		766Transfers(1,081)
1,081
At 31 December			
153,316		112,764
Disposals(2,712)(138)(2,850)At 31 December
145,278
12,138859
158,275														 										Net Book Amount								At 31 December 127,570
5,158
3,525
16,471
152,724
At 1 January
97,297
3,419
3,701
7,671
112,088
			
Net Movement for Year					40,636
				33

Notes
Notes toto thethe Financial
Financial Statements
Statements (continued)(continued)

ForFor
Year
Year
Ended
Ended
3131
December
December
2016
2016

15 Telecommunication Assets		
Acting pursuant to a Government decision IDA Ireland, in conjunction with the 		
Department of Public Enterprise (now the Department of Communications, Climate 		
Action and Environment), entered into contracts in 1999 for the purchase of 		
telecommunication assets in the form of an indefeasible right of use of a designatedportion of a global telecommunications network for a period of 25 years from 2000.
A portion of the capacity purchased by IDA was sold to a number of service providers.
The remaining assets have an historical cost of €38.85m, which amount has been 		
14 Other Fixed Assets				
written off by way of an impairment charge of €21m in 2002 and aggregate 		depreciation of €17.85m over 8 years from 2000, resulting in a net book value of €Nil.
		
Motor Vehicles
Office and Computer
Total
				
		
Equipment, Fixtures
16 Receivables					& Fittings
		
2016
2015
Amounts falling due within one year:
€’000
€’000
Cost
€’000
€’000
€’000
Accounts Receivable and Prepayments
16,612
15,344
At 1 January
12
10,565
10,577
Provision for Doubtful debts(1,271)(1,274)
Additions
252
252
Amounts due in respect of disposal
Transfer from other state agency
of Industrial Property(1)(1)
Disposals
(12)
(221)
(233)
Interest Receivable
At 31 December		
10,596
10,596
		15,34014,069			
Amounts falling due after more than one year:		
Provision for Depreciation		
210
Amounts due in respect of disposal of Industrial Property 139
At 1 January
12
9,889
9,901
		
15,47914,279Charge for Year336
336
Transfer from other state agency
The Accounts Receivable and Prepayments figure of €16.612m includes an amount
Disposals
(12)
(221)
(233)
of €3m in respect of a Board approved payment of €3m to Sligo County Council to 		
At 31 December
10,00410,004
assist in the funding of a road development in Sligo Town. The road will enhance 		
access to lands owned by the Agency for the development of a business park. The 		
Net Book Amount		
Agency is committed to providing a further €2m towards the development, whichis payable in 2017 upon commencement of the project.			
At 31 December
592
592
				
At 1 January
676
676
				
				
Net Movement for Year
(84)
(84)
					 			
					
					
(a) Included in the table above is an amount relating to a joint arrangement entered into
in 2004 by the Agency with Fingal County Council to develop lands in Blanchardstown
Dublin in the ownership of the Council, for subsequent sale to industrial undertakings.
Under the terms of the arrangement, IDA is responsible for making infrastructural 		
improvements to the lands. The Agency bears the full costs of this work and isentitled to receive half of the proceeds of any sales. The net book amountincluded above in relation to this arrangement is €Nil.			

		

34Notes
Notes toto thethe Financial
Financial Statements
Statements (continued)(continued)

ForFor
Year
Year
Ended
Ended
3131
December
December
2016
2016

19 Pensions		
17 Payables			
			
2016
2015
(a)			
Amounts falling due within one year:
€’000
€’000
IDA has responsibility for the pension costs of staff retiring from IDA post 16th July 		
Accounts Payable and Accruals
8,857
6,457
2014, under the Industrial Development (Forfás Dissolution Act 2014). Staff who
Amount due on Uncompleted Sales
225
197
are/were members of the Forfás Pension Scheme join the new IDA Scheme on 		
			
9,082
6,654
superannuation terms no less favourable than those they enjoyed under the Forfás 		
Scheme immediately before the date of transfer from Forfás to IDA. The IDA scheme
Amounts falling due after more than one year:		
covers the following categories of staff in IDA:
Amounts due in respect of lease exit
3,000
			
9,082
9,654
Staff Covered				(a) Staff recruited up to 5 April 1995 who became pensionable after that date.		
(b) Staff recruited after 5th April 1995 and before 1st January 2013.
18 Provision for Liabilities and Charges(c) Staff recruited since 1st January 2013, who are members of the Single Public 		
			
2016
2015
		 Service Pension Scheme. 		
Operating Leases Provision
€’000
€’000
1st January
17,32623,095
Each of the Schemes include Spouses’ and Children’s schemes.		
Net (reduction) for the year
(4,896)(5,769)The new Single Public Service (“Single Scheme”) commenced with effect fromTotal at 31st December
12,43017,326
1 January 2013. All new entrants to pensionable public service employment on
or after 1 January 2013 are, in general, members of the Single Scheme. The rules
The Operating Leases Provision comprises:of the Single Scheme are set down in the Public Service Pensions (Single Scheme
Potential building reinstatement costs associated with obligations under 		and Other provisions) Act 2012. Pension liabilities in relation to those individuals 				
operating leases.
employed under the Single Public Service Scheme for less than 2 years have not been
Future costs arising under operating leases estimated to exceed the amounts 		
included in the pension calculation as they will not have accrued pension rights until		
recoverable from sub lessees.			
after 2 years service is attained.
							
IDA meets the net costs arising from normal retirements. These are paid out ofcurrent income. Contributions received by IDA from staff in the contributory unfunded
schemes outlined above are used to part fund ongoing pension liabilities. Under the
Financial Measures (Miscellaneous Provisions) Act 2009 the assets of the Former 		Industrial Development Authority were transferred to the National Pension Reserve 		
Fund on 31 December 2009. The pension schemes associated with these two funds 		
continue in force for existing members with no impact on benefits or associated 		
provision for members. IDA Ireland remits employee contributions to the Exchequer.
Total employee contributions of €943k for these schemes were remitted by IDA to the
Exchequer in 2016 and pension costs at retirement are paid by Oireachtas Grant Vote
No 32 subhead A5 (i).		

35

Notes to the Financial Statements (continued)

For Year Ended 31 December 2016(b) Pension Disclosure under FRS102					IDA recognises as an asset an amount corresponding to the unfunded deferred 		
Financial Reporting Standard 102 (FRS102) requires financial statements to reflect at
liability for pensions on the basis of the set of assumptions described below and a 		fair value the assets and liabilities from an employer’s superannuation obligations andnumber of past events. These events include the statutory basis for the establishment
any related funding and to recognise the costs of providing superannuation benefitsof the superannuation schemes, and the policy and practice currently in place in 		in the accounting periods in which they are earned by employees.		
relation to funding public service pensions including contributions by employees
and the annual estimates process. IDA has no evidence that this funding policy will(c) Analysis of Total Pension Charge
2016
2015
not continue to meet such sums in accordance with current practice.
		
€’000
€’000
Service costs
4,605
4,605
The deferred funding asset for pensions at 31 December 2016 amounted to 		
Interest on Pension Scheme Liabilities
2,849
2,317
€139.918m (2015 - €106.133m). The quantification of the liability is based on the 		
Employee Contributions utilised in payment of Pensions
(943)
(886)
financial assumptions set out in note 19(g). The assumptions used, which are based
		
6,511
6,036
on actuarial advice, are advised to the Department of Jobs, Enterprise and Innovation.
		(d) Analysis of amount recognised in Statement of Comprehensive Income		(g) Valuation
		
€’000
€’000
The valuation used for FRS102 disclosures has been based on a full actuarial valuation
Experience (losses) / gains
117
(666)
at 31 December 2016. The financial assumptions used to calculate scheme liabilities
Changes in assumptions (Losses)(27,764)(3,532)
under FRS102 as at 31 December were as follows;			
Actuarial (Loss) / Gain
(27,647)(4,198)			Valuation method - Projected Unit
2016
2015
2014
(e) Pension Liability			
Discount rate
1.90% p.a.
2.70% p.a.
2.40% p.a.
Change in Pension Schemes’ Liabilities
€’000
€’000
Future salary increases
3.35% p.a.
3.20% p.a.
2.75% p.a.
Opening Balance
106,133
96,987
Future state pension increases
3.35% p.a.
3.20% p.a.
2.75% p.a.
Current Service Cost
4,605
4,605
Future pension increases
2.85% p.a.
2.70% p.a.
2.25% p.a.
Interest Costs
2,849
2,317
Future Inflation
1.85% p.a.
1.70% p.a.
1.25% p.a.
Payments to Pensioners(1,316)(1,974)
		
Actuarial loss
27,647
4,198
Year of attaining age 65		
2016
2036
Present Value of Schemes Obligations at 31 December
139,918
106,133
Life expectancy - male		
21.1
23.6
				
Life expectancy - female
23.6
25.7
(f) Net Deferred Funding for Pensions in Year
2016
2015
		
€’000
€’000
Funding Recoverable in respect of Current Year pension costs 7,454
6,922
Funding to pay Pensions(1,316)(1,974)
		
6,138
4,948

36

Notes to the Financial Statements (continued)(h) History of defined Benefit Obligations - Commenced 2014
		
2016
2015
Year Ending 31 December
€’000
€’000
Defined Benefit Obligation
139,918
106,133

For Year Ended 31 December 2016

22 Industrial Property Income and Expenditure					 2016
2015
Notes
€’000
€’000
Income:Oireachtas Grant
2
22,89418,000Rental Income IDA Ireland Client Companies		
753
1,143
Experience gains / (losses) on Scheme Liabilities:
Fee Income in respect of Undeveloped Lands
5
251
227
Amount
117
(666)
2,442
Interest on Industrial Property Transactions
5
54
27
Percentage of Scheme Liabilities
0.1%(0.6%)
2.5%
Profit on Disposal of Industrial Property		
1,315
5,440
			 25,267
24,837
Total (loss) / gain recognised in Statement of Comprehensive Income:		
Amount(27,647)(4,198)2,041
Expenditure:		Percentage of Scheme Liabilities(19.8%)(4.0%)
2.0%
Promotion, Administration and General Expenses		
1,322
1,355
					
Industrial Building Charges
9
4,758
3,168
					
Depreciation Charges and Provisions
10(28,651)
3,506
20 Commitments					(22,571)
8,029
It is estimated that future payments likely to arise from Grant Commitments 		
amounted to €331m as at 31 December 2016 (2015: €298m). Capital Commitments
Net Movement for Year		
47,83816,808
outstanding at 31 December 2016 on contracts for the acquisition and development
Transfer (to) Capital
12(40,636)(707)
of Industrial Property amounted to €23m (2015: €13m).
Contribution to Promotion and Administration activities		
7,202
16,101
		
21 Taxation
Section 227 of the Taxes Consolidation Act, 1997, provides an exemption from tax
for income of non-commercial state bodies. This exemption does not apply to depositinterest. Where interest receivable is subject to tax at source (e.g. DIRT), the net 		receivable amount is credited to the Operating Account.
2014
€’000
96,987

In some countries in which the Agency operates, an exemption from local taxation
has been availed of under the Governmental Services article of the relevant double 		taxation agreement. This position continues to be under review by the Agency whichis actively seeking clarification to determine whether overseas employment taxes 		arise in any of the jurisdictions where this exemption has been availed of. The
review could result in a liability to taxes but in view of the uncertainty in relation
to the amount, if any, of such possible contingent liability no provision has been
made in the financial statements for the year ended 31 December 2016.

37

Notes to the Financial Statements (continued)
23 Related Party Disclosures
Please refer to Note 8 for a breakdown of the remuneration and benefits paid
to key management.
In the normal course of business the Agency may approve grants and may also enter
into other contractual arrangements with undertakings in which IDA Board members
are employed or otherwise interested.
The Agency adopted procedures in accordance with the guidelines issued by the 		
Department of Public Expenditure and Reform covering the personal interests of 		
Board members and these procedures have been adhered to by the Board members
and the Agency. During 2016 four transactions required disclosure as the relevant 		
grant approvals and grant payments related to companies in which Board members 		
are employed or are otherwise associated. The transactions comprised 2 grant 		
approvals for €12.41m and €3.49m and two grant payments for €2.47m and €6.4m 		
from grant approvals to date.
In cases of potential conflict of interest, Board members do not receive Board 		
documentation or otherwise participate in or attend discussions regarding these 		transactions. A register is maintained and available on request of all such instances.
24 Contingent Liability
IDA entered into an agreement with a service provider with the objective of winning 		foreign direct investments, primarily in small and medium sized enterprises, resulting
in the creation of sustainable jobs. On 25th March 2016 the agreement was extended
for a period of one year to enable the orderly wind down of the contract. This 		agreement provided for a payment to be made to the service provider on thecontract termination date which is to be calculated by reference to job creation andthe financial statements include a provision for this payment being the IDA’s best 		
estimate of the amount payable.
25 Approval of Financial Statements
The Financial Statements were approved by the Board on 8th June 2017.

38

For Year Ended 31 December 2016

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