IDA Ireland
Annual Report andAccounts 2021

www.idaireland.com

CONTENTS

CONTENTS

Page• Chairman & CEO Overview

3• Statistics

14• Environmental, Socialand Governance19• Financial Statements

23• Global Office Network

80

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CHAIRMAN & CEOChairman& CEO Overview
2021 was a remarkable year for foreign direct
investment (FDI) in Ireland. IDA Ireland’s existingbase of multinational companies expanded
their total employment to a record high, newinvestment secured against intense global
competition reached near pre-pandemic levels
and more projects went to the regions than everbefore.

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These results are testament to Ireland’s
attractiveness as a place in which businesses
at the centre of the modern global economy
can start, grow, thrive and adapt. They also
demonstrate once again the dynamism of thecompanies with which IDA partners. In the last
decade there has been staircase growth in FDI
employment in Ireland. Over the past three years,
growth has been extraordinarily resilient despite
the sizeable shocks the economy has faced from
Brexit, Covid-19 and the war in Ukraine.

The war in Ukraine is first and foremost a humanitarian crisis. Ireland’s response in supporting the citizens of Ukraine is tobe commended. This most serious conflict also represents a significant headwind to the global economy and a potential
inflection point in the geopolitical landscape. As the economic impact of the pandemic began to fade at the start of year,
the Russian invasion of Ukraine sparked a renewed period of uncertainty and added to global inflationary pressures that
had gathered pace over the course of last year due largely to pandemic related factors. Continued restrictions in China as
it grapples with Covid-19 may further disrupt supply chains and add to inflationary pressures in the global economy.
The challenges posed by the highest levels of inflation in over a decade are not unique to Ireland. However, current
circumstances do further underline the need to ensure that Ireland remains an affordable and attractive place forbusinesses to invest and people to live. IDA remains engaged with client companies and with the Department ofEnterprise, Trade and Employment (DETE) and other departments on key competitiveness issues, including energy,
water/wastewater, planning, housing, infrastructure and cost of doing business. In a world of transformation, it isimperative that we continue to act to address competitiveness factors that are within Ireland’s control.

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Responding proactively to change has always been a hallmark of Ireland and IDA’s success. IDA’s 2021-24 strategy, Driving
Recovery and Sustainable Growth, aims to ensure FDI remains a key pillar of Ireland’s enterprise policy and contributes
to the green and digital transitions. IDA made considerable progress in the implementation of the strategy during2021, including putting in place the structures that will better enable us to deliver on objectives across our strategicpillars of Growth, Transformation, Regions, Sustainability and Impact. Throughout the year, IDA partnered with clientcompanies to create jobs, locate in the regions and invest in R&D. We also engaged with clients on training, upskilling andenvironmental sustainability reflecting these key areas of enhanced strategic importance for IDA and our valued clientcompanies.
The Department of Enterprise, Trade and Employment provides invaluable support to IDA, which has been vital to thesuccessful performance of the Agency during recent times of heightened challenge and uncertainty. The Department’s
ongoing engagement, guidance and assistance are hugely beneficial to IDA colleagues in Ireland and overseas as wecollectively seek to win investment to provide jobs and opportunity for the people of Ireland. As we continue to pursue
this mission in an environment of geopolitical and competitiveness challenges, the continued support of Governmentand of the wide array of partners we work with across the enterprise enabling ecosystem will remain essential.

Record FDI performance in 2021

Employment within IDA’s portfolio of multinational companies (MNC) continued to grow throughout the Covid-19
pandemic. While job losses were at slightly more elevated levels, job gains remained remarkably buoyant. This istestament to the strength of the companies IDA works with and the stability of Ireland as a location in which to dobusiness. It also reflects the unprecedented level of fiscal support provided by the Government to ease the impact of thepandemic on the economy, protecting jobs and incomes.

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Total direct employment in IDA client companies grew by 7% in 2021 to reach a record 275,3841 . IDA recorded job gainsof 29,057 and losses of 12,231, resulting in a net employment gain of 16,826. The job gains and net employment figures
were both the highest on record. Losses were higher than in recent years in absolute terms but represented a historically
low share of the overall base. Employment increased in every region of the country taking IDA client employment outside
Dublin to 151,676 – 55% of total employment in the portfolio. There was particularly strong growth in the Midlands(+10%), the South-East (+8%), and the West (+6%). Employment in Dublin, which continues to be a vital driver of Ireland’s
FDI performance, grew by 9%. Beyond these sizeable direct employment figures, a further 8 jobs are estimated to besupported in the wider economy for every 10 jobs in IDA client companies – implying combined direct and indirect IDAclient employment of over 495,0002 .
IDA won a further 249 investments in 2021, in line with pre-pandemic averages. The strong flow of projects was driven
by existing client expansions (87 investments) and a better than anticipated new name investor performance (104
investments). Over half of all projects (133, 53%) went to regional locations – representing a very strong start to IDA’s
target to deliver 400 regional investments as part of our Regions strategic pillar. Investment delivery was strong acrossall source markets, with the largest share of projects coming from North America (64%) followed by Europe (27%) and
Growth Markets (8%). These shares indicate a return to the pre-pandemic geographical split of investment, in line withour commitment to maintain North America as a key market while also diversifying to attract additional investment from
elsewhere.
Under the Transformation pillar of IDA’s strategy, 43 RD&I investments and 15 training investments were secured last year.
Our ongoing focus on transformation aims to support clients to increase their productivity, resilience, and innovative
capacity. IDA also partnered with clients on 15 sustainability related investments, which seek to either build Ireland’s
green economy capabilities or to enhance the sustainability of MNC operations in Ireland. Across each investment type– from new names to sustainability – the projects secured in 2021 provide a strong platform for continued resiliency,
innovation and growth in the client base over the coming years as these projects get underway.
1
2

Department of Enterprise, Trade and Employment (DETE), Annual Employment Survey 2021
DETE/Indecon employment multiplier of 1.8

Impact of FDI

Through its direct and indirect impacts, Ireland’s FDI base is a core national asset. The contribution of our clientcompanies is tangible, substantive and something that we do not take for granted. The 1,691 operations IDA partners
with are individually diverse and spread across sectors at the forefront of the modern global economy. Collectively, they
make a sizeable contribution to our economy and society through job creation, opportunity and progression, innovation,
local sourcing, global value chain integration and taxation.
The Department’s latest Annual Business Survey of Economic Impact (ABSEI) provided new insights into the extent towhich FDI supported the Irish economy at an immensely challenging time in 2020. IDA clients spend in the economy
increased by 9% in 2020 to €27.9 billion across payroll (€16.8bn), Irish services and Irish materials (€11.1bn)3. In
addition, capital expenditure (€7.5bn) and in-house R&D (€2.8bn) by IDA clients both increased in 2020. Exports, which
underpinned Irish GDP growth in 2020 despite the adverse effects of the pandemic, increased by 9% to €291.4bn with IDA
clients accounting for an estimated 72% of national exports4. The resiliency of Ireland’s FDI base supported the publicfinances as IDA client companies continued to be a vital source of Exchequer revenue through their tax contribution.
Sectors dominated by export facing MNCs accounted for approximately 70% of corporation tax in 20205.
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IDA strategy implementation

IDA’s four-year organisational strategy aims to consolidate and build on the positive impact of FDI as Ireland pursues ajobs-led recovery that seizes on the opportunities of the green and digital transitions. We have made significant progress
implementing the strategy since its publication in January 2021, including the development of implementation plans by
IDA’s operating divisions to support the achievement of objectives across our strategic pillars of Growth, Transformation,
Regions, Sustainability and Impact.
Organisational excellence underpins the ambition of IDA’s strategy. A key component of this is building our internal
capability to ensure IDA teams can effectively influence decision making and investment by clients on training andsustainability at a local and corporate level. The revised structures put in place in late 2020 are now well embedded in
the organisation. The new structure most notably includes dedicated client facing teams focused on transformationof people and processes and the green economy. In implementing the strategy, we have enhanced our focus onsustainability in all its forms, engaged with other investment promotion agencies (IPAs) and the OECD on bestpractice, and put in place training for our teams to ensure we have the required knowledge and capability to deliveron our objectives. As we strive towards organisational excellence, work is also underway on our ambitious Digital
DETE, Annual Business Survey of Economic Impact (ABSEI) 2020
IDA calculations based on ABSEI data and CSO external trade data
5
IDA calculations based on Revenue Corporation Tax Payments and Returns
3
4

Transformation Programme, which aims to enhance the client experience and make IDA the most digitally enabledinvestment promotion Agency (IPA) in the world.
We have also made progress across other key supporting initiatives for the achievement of the strategy’s objectives. IDA ispartnering with Local Authorities and working closely with the private sector as part of the Regional Property Programme,
through which we will deliver 19 new advance buildings from 2021-24 to regional locations.
The Advanced Manufacturing Centre (AMC), which will provide a space for Irish and foreign firms to trial, adapt, and scale
new technologies is on track to open later in 2022. The AMC will position Ireland’s manufacturing base at the forefront ofdigital transformation and next generation sustainable manufacturing. Investment in the scaling of the National Institutefor Bioprocessing Research and Training (NIBRT) in the emerging field of cell and gene therapies also progressed during
2021.
IDA is grateful for the Exchequer funding provided to the Agency across these and other initiatives, which will help in thedelivery of our 2021-24 strategy targets and strengthen Ireland’s value proposition for FDI for years to come.
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Regional development

Regional development remains central to our ambitions. Although it is not a silver bullet, FDI can help propel recovery
and realise more balanced growth. Global FDI has historically exhibited a preference for large urban locations, where
benefits arising from a critical mass of businesses and people can be amplified relative to smaller regional locations.
The rise in remote working since the pandemic may alter location decisions to a certain extent and create increased
competition for talent. However, the strength of cities as drivers of FDI due to scale and critical mass is likely to remain. In
this context, Ireland has performed well in balancing investment between Dublin and the rest of the country.
IDA’s publishing of targets on a regional basis goes beyond the approach of most other investment promotion agencies(IPAs). Our strategy includes a target of 400 regional investments, 50% of the total investment target for the period to2024. We have made a positive start on the journey towards this objective with a strong flow of projects to regional
locations by existing and new clients in 2021.

The scope and range of the investments secured demonstrate the variety of enterprise activity across the country, fromsemiconductor manufacturing in the Mid-East, to medical technology production in the West, innovative life-saving
therapies in the Mid-West, cybersecurity and technology services in the South-East, tech focused R&D in the South-West,therapeutical biopharmaceuticals in the Midlands and software solutions in the Border region.
These and the many other projects won last year build on the record level of FDI in the regions over our 2015-19
strategy, which further enhanced the impact of FDI in locations outside of Dublin. For example, beyond their substantial
employment creation, clients in the regions spent over €13bn in the Irish economy across payroll, materials and services
in 20206. In a time of global uncertainty and industry transformation and given the significance of their contribution
to local economies, a key priority for IDA is to stay close to existing clients to future proof their operations in Ireland’s
regions.

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9The growth in regional investment in 2021 was supported by the Regional Property Programme and by continued
collaboration with key stakeholders across the country. High-quality property, infrastructure and a sophisticatedplacemaking approach can be key differentiators in attracting talent and winning investment for regional locations ina highly competitive global environment. IDA is focused on strategic engagement and collaboration with key regional
stakeholders to articulate the key criteria companies consider when assessing a regional location and, based on this, towork together to enhance the regional value proposition for FDI.

Outlook

For much of the last decade the global economic and FDI outlook has been subject to considerable uncertainty, which
has heightened further this year due to the war in Ukraine. The crisis may have a dampening effect on international
investment decisions, which are more easily made in a stable environment. While the geopolitical implications of
the invasion of Ukraine for FDI continue to unfold, we have already seen the amplification of pre-existing inflationarypressures that emerged during 2021 and some supply chain impacts. The combination of uncertainty, increased costs
and a resulting shift in monetary policy may subdue investment by MNCs in the near term.

6

DETE, ABSEI 2020

The economic impact of the pandemic eased in Ireland in recent months, however varying vaccination rates acrosscountries and the potential for new variants of the virus to emerge continue to pose a risk to the outlook. Covid-19
is currently causing renewed disruption in Asia Pacific markets with a knock-on impact on global supply chains. Thisdisruption may prolong the supply chain difficulties, including longer lead times and higher transport costs, that haveaffected companies around the world over the past year. From an investment attraction perspective, as IDA seeks to build
out our pipeline of investment projects, travel to certain key source markets in Asia remains challenging for the moment
given the level of public health restrictions in place.

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In the medium term, the combination of the war in Ukraine and the pandemic may hasten changes to global supply
chains and the wider multilateral trade and investment landscape. Brexit, which resulted in some supply chain difficulties
during 2021, and the future trajectory of EU-UK relations will also be a key factor for the outlook in the coming years.
Ireland’s openness to investment, people and ideas from around the world is among our key strengths – we face thechallenge of balancing this openness with the potential reality of a less open global economy. In a fast-changing world,
IDA looks forward to engaging with DETE on the White Paper on Enterprise Policy over the coming months. Considering
all the changes we have seen over the last few years – and the changes that will take place in the years ahead – it is an
opportune moment to set a renewed medium-term vision for Ireland’s enterprise policy.
Notwithstanding the current challenges and uncertainty in the global environment, IDA client companies are generally
optimistic on the prospects for their businesses as a result of continued market growth and demand for their products
and services. The pipeline of projects and indications of future job creation in the first half of 2022 has been strong. We
continue to see opportunities across our sectors of focus, which we believe remain well aligned to the global economy oftoday and well positioned to capitalise on the transformed economy of the future.

Client feedback on competitiveness

Client companies remain positive about the business environment in Ireland and our attractiveness relative to key
competitor locations for FDI. Ireland’s strengths include our skilled and diverse talent base, high quality education andtraining ecosystem, stable and consistent policymaking and competitive corporate tax regime. To remain successful
in the years ahead, we face the dual task of remaining competitive across these factors while also working to addresssome of the competitive issues that relate to the carrying capacity of the economy that have come under pressure due tosignificant growth.

When we speak to client companies, talent and skills availability is at the top of their agenda. Access to talent is theleading factor in international location decisions and it is the core foundation of Ireland’s value proposition for FDI. IDA
is therefore actively engaged with our parent Department and with the Department of Further and Higher Education,
Research, Innovation and Science on the skills, talent and innovation agenda. The availability of skilled, adaptable,
and diverse talent is more important than ever – especially as Ireland competes for high value, technology driven
employment opportunities across our target FDI sectors. Client companies rate Ireland’s talent base and our education
system highly. However, as in many other countries, they face increasing difficulties sourcing the skills they need astechnology becomes ever more ubiquitous across sectors.

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The global competition for talent and the advent of the future of work place an added emphasis on the necessity for
Ireland to invest in our people and our education system. This includes ensuring sustainable long-term funding at thirdlevel and the provision of training and lifelong learning aligned to future enterprise requirements. The Funding the
Future policy, as announced by the Government in recent weeks, is an important step forward in addressing the funding
gap in higher education. Greater diversity in our workforce also requires an increased emphasis on alternative pathways
to work, which are a welcome focus of recent Government initiatives such as the Action Plan for Apprenticeship 2021-25.
In addition to supporting those already in the workforce to upskill and investing to enhance the future pipeline of talentfrom our education system, Ireland must also remain open and welcoming to people from around the world.
The security of energy supply is a key issue in the immediate term for IDA client companies with significant energy needs.
Traditionally, energy supply has been a positive for Ireland. However, more recently some clients have relayed concerns
to IDA about the security of supply of electricity and the increased cost of electricity, gas and oil. Security of supply ofelectricity is of paramount importance for client companies and the wider business environment in Ireland. All necessary
measures should be taken as required to guarantee electricity supply. The current situation also provides a basis forexpediting the transition to renewable energy and an opportunity for businesses to improve their energy efficiency andreduce their carbon footprint.
In the medium term, increasing the share of renewables in our energy mix and meeting the targets set out in the Climate
Action Plan will be important if Ireland is to remain an attractive location to invest in, in a world in which companies
are placing an increased value on sustainability. As Ireland transitions to a low carbon economy by 2030 and a carbon
neutral economy by 2050 under the National Climate Objective, we must do so in a balanced way across sectors of theeconomy. Alongside reliable and affordable energy, the provision of high-quality water and wastewater services is also an
important part of our value proposition for high value manufacturing FDI.

On taxation, IDA engaged extensively with clients in the run up to and following the Government’s decision to sign up to
the proposed OECD international corporate tax reforms. It is welcome that the agreement allows for the maintenance of
Ireland’s 12.5%, while moving to a still competitive 15% rate for companies that meet the turnover threshold. Companies
are continuing to assess the potential impact of the overall OECD agreement on their global operations. Feedback from
IDA clients to date indicates that the changes are unlikely to have any significant impact on their existing Irish operations.
The flow of investment throughout 2021 demonstrates the continued confidence investors have in Ireland. We continue
to stay close to companies and to monitor developments on the implementation of the global agreement.
It is important for Ireland to retain its cost competitiveness relative to other locations aiming to attract FDI in similar
sectors to IDA. Much of the current inflationary pressures across consumer and producer prices are being driven by global
factors outside of Ireland’s control. National and international forecasts expect the rate of inflation to remain elevatedwell above pre-pandemic levels during the second half of 2022, however, in volatile global conditions, the outlook
remains highly uncertain. Considering the continued pace of growth in the economy and the need for ongoing capital
investment to address capacity constraints, we must closely follow price developments to ensure they remain in line withother locations.
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High housing costs and a lack of availability present a challenge for client companies in attracting and retaining thetalent they need to continue to grow in Ireland. The targets in the Housing for All strategy and the momentum seen in
new dwelling completions and commencements over the second half of 2021 is welcome. Maintaining this momentum
and delivering on the extensive actions and objectives set by the Government to tackle the housing crisis would address
an area of longstanding concern that, if left unaddressed, will negatively impact our medium-term ability to attract
investment and the talented people such investment requires.
Ireland’s physical and digital infrastructure proved robust and resilient at the height of the Covid-19 public healthrestrictions over the past two years. Looking ahead, as the economy continues to expand and as our population grows
and works in new ways, ongoing investment in productive capital assets is crucial to reduce capacity constraints andto enable the economy to realise its potential. The revised National Development Plan sets out an ambitious range ofinfrastructure projects that, if realised, would greatly improve the operational environment for businesses and the qualityof life for citizens in Ireland.
Progressing with the on-time and effective delivery of key strategic capital projects across the Government’s priority
areas of infrastructure, housing and climate would significantly enhance IDA’s ability to win FDI for Ireland in the period to2030. Large capital projects by the State and by IDA client companies are rightly subject to an extensive set of checks andbalances. However, as previously highlighted by
IDA, the efficiency of the planning system, and the
protracted nature of the judicial review process is
an area of reputational risk. We look forward to theoutcome of the ongoing review of planning laws by
the Attorney General.

Conclusion

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Ireland is well placed for continued success,provided we can address the competitivenessissues that risk constraining our capacity for future
success. Ireland’s FDI performance over the past
decade indicates that there is much we are doingright as a country. Our value proposition for FDI isstrong and our business environment is supporting
cutting edge, innovative investment. We have an
enviable FDI platform which, combined with adynamic indigenous base, can drive sustainablegrowth and create opportunities for all.
At the time of writing, the strong flows ofinvestment witnessed in 2021 have continued in
the first half of 2022. The results achieved by IDA
Ireland would not be so without the support of somany stakeholders, to whom we are thankful, butparticularly, they could not be achieved without theunstinting support, extraordinary commitment andwork of the IDA Ireland team in Ireland and acrossthe globe.

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Statistics for Year 2021
IDA Ireland Indicators
Indicator

2021 Value

Total of Investments Approved
No of Greenfield investments

249
104

No of Expansion investments
No of Research, Development & Innovation investments
Investment in Research, Development & Innovation investments

87
43€1.34bn

Training investments
Environmental/Sustainable investments*

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15
15

% of Investments Located Outside Dublin% of Jobs Approved Outside Dublin% Jobs Approved with Salaries in excess of €35,000
Average Salary in Investments

53%
47%
94%
57,735

Total R&D in-house Expenditure**€2.8bnNote: * Of the total 249 investments approved in 2021, 15 were Environmental/Sustainable and areincluded across the different investment types identified above.
** R&D in-house expenditure data refers to 2020.
Origin of IDA Ireland Supported Companies 2021
OriginNo of Companies

Total Employment

United States
Germany893
96

190,147
14,373

United Kingdom
FranceRest of Europe
Rest of World

161
78
196
267

9,291
7,913
22,651
31,009

Total
1,691
275,384
Source:DETE Annual Employment Survey 2021. Note: Includes full-time and part-time employees.

Employment in IDA Supported Companies		
For Year Ended 31 December 2021										
			
2021
			
000

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Job Gains		

29,057

Employment in IDA Supported Companies
		
		

2021
000

2020
000

Total Employment
258,558
275,384
					Full Time
237,865
255,491									Other20,69319,893							
				
				

Net change in total employment
9,869
16,826												 					% Net change in total employment				
Source: Department of Enterprise, Trade and Employment
Note: Other Employment includes part-time and short term contract employees

4%6%												Total Employment by Region in IDA Ireland Supported Companies							
% Change

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RegionBorderDublin2017
7,529
91,7292018
7,889
99,003

2019
8,392
108,385

2020
8,495
113,906

2021
8,721
123,708

2020/2021
2.7%
8.6%

Mid East
Mid West
Midlands

16,162
21,153
5,058

17,13322,353
5,714

17,77323,784
6,202

17,961
24,095
6,265

18,89425,270
6,868

5.2%
4.9%
9.6%

South East
South WestWest

12,57339,57324,173

13,32442,087
26,256

13,39643,74327,014

13,86846,275
27,693

14,93247,572
29,419

7.7%
2.8%
6.2%

Total
217,950
233,759
248,689
258,558
Source: DETE Annual Employment Survey 2021
Note: Includes part-time, temporary and short-term contract employees.

275,384

6.5%

Total Employment by Sector in IDA Ireland Supported Companies							
% Change
Sector
2017
2018
2019
2020
2021
2020/2021
Business, Financial& Other Services
Information & Communication

37,45880,72540,73387,71044,918
94,10747,222
98,02151,053
106,683

8.1%
8.8%

Modern Manufacturing
Traditional Manufacturing
All Sectors

80,405
19,362217,950

84,337
20,979233,759

88,74020,924
248,689

92,40820,907
258,558

96,356
21,292
275,384

4.3%
1.8%
6.5%

Source: DETE Annual Employment Survey 2021
The Department of Enterprise, Trade and Employment estimates that for every 10 jobs generated by Foreign Direct Investment(FDI) directly, another 8 are generated in the wider economy. This translates into 495,691 jobs that were supported by FDI at theend of 2021. Secondary economic benefits impact positively on the construction industry, the retail sector and the hospitality
industry.

The ABSEI (Annual Business Survey of Economic Impact) survey results for 2020 (latest data available) include data for Exports,
Irish Economy Expenditure, in-house R&D and capital expenditure as follows:
•
•
		
•
•

IDA client exports increased by 9.4% to €291.4bn in 2020.
Expenditure in the Irish economy grew 8.9% to €27.9bn in 2020. This is made up of expenditure on payroll (€16.8bn),
Irish services (€8.4bn), and Irish materials (€2.6bn).
In-house R&D Investment grew 7.2% to €2.8bn in 2020.
IDA clients invested €7.5bn in capital projects in 2020.

IDA Ireland Cost per Job Sustained Constant 2021 Prices
IDA Ireland
Sustained FTJ*CPJS		

207/1344,752€13,273

2008/1449,452€13,273

2009/15
56,973€10,983

2010/16
69,611€9,4992011/17
77,099€8,336

2012/18
94,880€6,7792013/19
104,690€5,812

2014/20
110,063€5,8502015/21
121,861€5,586Page

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Source: DETE Annual Employment Survey 2021
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.

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ENVIRONMENTAL, SOCIAL AND

Environmental

As set out in the Sustainability pillar of our strategy, IDA is committed to supporting national objectives on climate
and the environment. Through a three-pronged approach, IDA is aiming to work with existing clients to reduce theirenvironmental footprint, win new investment in green economy related activities and to take steps to improve theenvironmental sustainability of the Agency itself.
IDA engaged actively with client companies on the environment in 2021. As noted above, IDA recorded 15 environmental
sustainability investments by clients for the year – a strong start on the road to achieve our target of winning 60 suchinvestments by 2024. The sustainability investment target is a component part of IDA’s wider engagement with MNCs on
this issue. For example, IDA is partnering with clients to develop and deliver on climate action plans for their Irish sites
with the aim of promoting responsible, sustainable business practices that can position Irish sites at the forefront ofwider corporate group initiatives on the environment. The recently launched Enterprise Emissions Reduction Investment
Fund will provide an additional avenue through which IDA can engage with clients on improving the emissions of their
Irish operations.
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In line with public sector targets and to ensure the Agency exemplifies best practice in the space, IDA continues toimplement measures to improve the environmental sustainability of the Agency’s operations in Ireland and overseas.
Data verified by the Sustainable Energy Authority of Ireland (SEAI) shows IDA achieved an overall energy consumption
reduction of 11.7% year-on-year in 2020, placing energy usage 54.9% below baseline 2011 levels. Carbon emissions
from the IDA property portfolio fell 18.4% year-on-year in 2020, a 68.6% reduction on 2011 baseline levels1 . Various
other green initiatives are ongoing including the development of an action plan in collaboration with SEAI on energy
saving opportunities within IDA’s property portfolio. IDA’s Property Division is progressing with steps to achieve ourstrategy target of implementing a biodiversity programme on a minimum of five IDA business parks, while our internal
Green Initiatives Team delivered a number of projects in 2021 including a biodiversity information session and theimplementation of a carbon output tracker to inform travel decisions for IDA teams in-market.

1

SEAI, Annual Report 2021 on Public Sector Energy Efficiency Performance

Social

A key focus of IDA’s 2021-24 strategy is promoting and attracting FDI in a responsible and sustainable way. This requires
an emphasis on sustainability in all its forms, considering the impact of FDI not only on our natural capital but also on
human and social capital. IDA is actively engaged with national and international experts to deepen our understandingof how we can promote sustainable, inclusive FDI outcomes. Around two-thirds of IDA clients actively monitor theirperformance against ESG factors, with their areas of focus including equality, diversity, and inclusion (EDI), workplacedevelopment, stakeholder/community engagement and environmental initiatives.
Within our existing base, IDA client companies provide good quality jobs that pay well and provide people with
opportunities to progress. For new investment, IDA targets investments with annual salaries above the national average
and we have in place a comprehensive due diligence process in our approval of investment projects. The average salaryin IDA client companies was an estimated €72,390 in 2020, 44% above the national average2. To maintain the highquality jobs of today, continued upskilling and reskilling will be vital. Clients also spent approx. €90m on training in 2020
according to recent ABSEI data. IDA is partnering with companies through the Transformation pillar of our strategy tofurther enhance expenditure on and engagement with upskilling by the existing base of MNCs in Ireland.
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Promoting FDI related opportunities for all has long been reflected in IDA’s promotion of balanced regional development,
through which we have directed investment to regions around the country that otherwise may have concentrated in thecapital or gone elsewhere in Europe. In the Impact pillar of our strategy, we set out our intention to build on this regional
element of inclusivity to work with clients to improve employment opportunities for underrepresented groups. For
example, on gender, new data gathered in the ABSEI last year showed that female leadership in IDA clients is in line withthe wider national picture. However, both at leadership and across all levels there is room for improvement. IDA is anactive participant in the Balance for Better Business Group, which has set a target for women in leadership roles at large
MNCs in Ireland of 40% by 2023 from a 2020 baseline level of 30%.

2

IDA calculations based on ABSEI data for 2020 and CSO average total earnings for full time employees in all sectors (€50,178)

We recognise the need to ensure that we live up to the responsible, sustainable, and inclusive values that we are seeking
to promote among the FDI base. IDA must be a supportive, diverse, and inclusive place where colleagues can work,
develop, and succeed. For much of 2021, IDA teams around the world continued to work remotely. Performance levels
remained extremely high, as illustrated by the record results set out above and by the continued positive feedback
from clients on the level of service provided by IDA. However, these remain very challenging times and the safety andwellbeing of colleagues remain our priority. During 2021, IDA provided our people with various resources and supports to
help with working from home and to make the eventual return to the office under our new hybrid working arrangements
as seamless as possible.

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22

IDA also commenced the implementation of a new four-year Action Plan for Equality, Diversity and Inclusion (EDI) which
focuses on the role modelling of inclusive behaviours, creating and sustaining an inclusive culture and increasing ourinternal diversity. There was an extensive range of EDI activities and initiatives during 2021 to support these objectives
including three anchor events focused on dignity and respect in the workplace. Training sessions were also a focus,
with training on the topic of dignity and respect in the workplace, a series of unconscious bias workshops being held
for colleagues at all levels of the organisation and Deaf Culture Awareness and ADHD Awareness. IDA is also pleased tocontinue our partnership with the Open Doors Initiative to increase and support our internal diversity.
Separately, IDA’s staff led Corporate Social Responsibility (CSR) Committee had a hugely successful year, with colleagues
across the Agency raising funds and awareness for our charity partners – DEBRA Ireland in 2021/22 and Jigsaw in
2020/21. The work of the CSR Committee has helped to further enhance IDA’s engagement with a broad range of societal
stakeholders. Its activities 2020 and 2021 also brought the IDA team together, albeit virtually, at times during the
pandemic when connecting with colleagues across the organisation was more challenging than usual.

Page

23

FINANCIALComptroller & Auditor General

Report for presentation to the Houses of the Oireachtas
Industrial Development Agency Ireland
Opinion on financial statements
I have audited the financial statements of Industrial Development Agency Ireland (IDA Ireland) for the year ended 31
December 2021 as required under the provisions of paragraph 7 of the first schedule of the Industrial Development Act
1993. The financial statements comprise:• the statement of income and expenditure and retained revenue reserves• the statement of comprehensive income• the statement of financial position• the statement of cash flows and• the related notes, including a summary of significant accounting policies.
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24

In my opinion, the financial statements give a true and fair view of the assets, liabilities and financial position of IDA
Ireland at 31 December 2021 and of its income and expenditure for 2021 in accordance with Financial Reporting Standard(FRS) 102 — The Financial Reporting Standard applicable in the UK and the Republic of Ireland.
Basis of opinion
I conducted my audit of the financial statements in accordance with the International Standards on Auditing (ISAs) as
promulgated by the International Organisation of Supreme Audit Institutions. My responsibilities under those standards
are described in the appendix to this report. I am independent of IDA Ireland and have fulfilled my other ethicalresponsibilities in accordance with the standards.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Comptroller & Auditor General

Report for presentation to the Houses of the Oireachtas
Report on information other than the financial statements, and on other matters
IDA Ireland has presented certain other information together with the financial statements. This comprises the annual
report, including the governance statement and Board members’ report, and the statement on internal control.
My responsibilities to report in relation to such information, and on certain other matters upon which I report by
exception, are described in the appendix to this report.
I have nothing to report in that regard.

Page

25

Seamus McCarthy
Comptroller and Auditor General
15th June 2022

Appendix to the report
Responsibilities of Board members
As detailed in the governance statement and Board members’ report, the Board members are responsible for• the preparation of annual financial statements in the form prescribed under paragraph 7 of the first schedule of the 				 Industrial Development Act 1993
• ensuring that the financial statements give a true and fair view in accordance with FRS102• ensuring the regularity of transactions• assessing whether the use of the going concern basis of accounting is appropriate, and• such internal control as they determine is necessary to enable the preparation of financial statements that are free 				 from material misstatement, whether due to fraud or error.

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26

Responsibilities of the Comptroller and Auditor General
I am required under paragraph 7 of the first schedule of the Industrial Development Act 1993 to audit the financial
statements of IDA Ireland and to report thereon to the Houses of the Oireachtas.
My objective in carrying out the audit is to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement due to fraud or error. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with the ISAs, I exercise professional judgment and maintain professional scepticism
throughout the audit. In doing so,• I identify and assess the risks of material misstatement of the financial statements whether due to fraud or 					 error; design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient 				 and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from 				 fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, 				 misrepresentations, or the override of internal control.

Appendix to the report continued

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27

• I obtain an understanding of internal control relevant to the audit in order to design audit procedures that are 				 appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 				 internal controls.
• I evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and 				 related disclosures.
• I conclude on the appropriateness of the use of the going concern basis of accounting and, based on the audit 				 evidence obtained, on whether a material uncertainty exists related to events or conditions that may cast significant 				 doubt on IDA Ireland’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I 					 am required to draw attention in my report to the related disclosures in the financial statements or, if such 					 disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to 				 the date of my report. However, future events or conditions may cause IDA Ireland to cease to continue as a going 				 concern.
• I evaluate the overall presentation, structure and content of the financial statements, including the disclosures, 				 and whether the financial statements represent the underlying transactions and events in a manner that achieves 				 fair presentation.
I communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that I identify during
my audit.
I report by exception if, in my opinion,• I have not received all the information and explanations I required for my audit, or• the accounting records were not sufficient to permit the financial statements to be readily and properly audited, or• the financial statements are not in agreement with the accounting records.

Appendix to the report continued
Information other than the financial statements
My opinion on the financial statements does not cover the other information presented with those statements, and I do
not express any form of assurance conclusion thereon.
In connection with my audit of the financial statements, I am required under the ISAs to read the other information
presented and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or with knowledge obtained during the audit, or if it otherwise appears to be materially misstated. If, basedon the work I have performed, I conclude that there is a material misstatement of this other information,
I am required to report that fact.

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Reporting on other matters
My audit is conducted by reference to the special considerations which attach to State bodies in relation to their
management and operation. I report if I identify material matters relating to the manner in which public business has
been conducted.
I seek to obtain evidence about the regularity of financial transactions in the course of audit. I report if I identify any
material instance where public money has not been applied for the purposes intended or where transactions did notconform to the authorities governing them.

Governance Statement and Board Members’ Report
Governance
IDA Ireland is an autonomous Statutory Agency set up under the Industrial Development Acts 1986 - 2019. The Agency
operates in accordance with the provisions of the Acts and under the aegis of the Minister for Enterprise, Trade and
Employment, 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 affirmsthat it met its obligations in regard to all of these requirements. In particular, it has the following procedures in place toensure compliance with specific requirements:

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29

1. General Administrative and Policy Requirements
At national level, IDA Ireland works closely with officials of the Department of Enterprise, Trade and Employment andofficials of other Government Departments and State Agencies in advancing its objectives and ensuring compliancewith statutory, administrative and Ministerial/Government requirements. At local level, the Agency works closely with
Local Authorities, Educational Establishments, other State Agencies and a wide range of Local Organisations/Public
Representatives to develop the local environment necessary for attracting new investment. IDA Ireland continues toimplement a policy directive issued by the Minister for Enterprise, Trade and Employment on 18 December 2006 which
requires that IDA comply with all relevant Guidelines, Block Exemption Regulations, Frameworks and schemes regarding
Regional Aid and in providing research and development grants.
2. Code of Practice for the Governance of State Bodies (2016)
Statement of Compliance
The Board has adopted the Code of Practice for the Governance of State Bodies (2016) and has put procedures in place
to ensure compliance with the Code. IDA Ireland was in full compliance with the Code of Practice for the Governanceof State Bodies for 2021, subject to a waiver from the Department of Enterprise, Trade and Employment in respect of arequirement in a 2014 Circular, as noted in the Statement of Internal Control.
Section 2.6: Complied with by the Chairman of the Board in a separate letter furnished to the Minister for Enterprise,
Trade and Employment.

Governance Statement and Board Members’ Report
Sections 1.8 & 7.5 (iii): An effective system of internal control is maintained and operated by the Agency (Statement on
Internal Control, page 45).
Section 9: Government policy on the pay of Chief Executives and State Body employees is being complied with
(Governance Statement and Board Members Report 2021 page 29 and Notes to the Financial Statements pages 54-79).
Sections 1.15 & 1.17: The Board has approved the four year IDA strategy for the years 2021-2024. In addition, the Board
has established processes to ensure sound corporate planning, etc., as required by this Section (Governance Statement
and Board Members Report 2021 page 29, and Statement on Internal Control page 45).
Section 9: The IDA travel procedures reflect the Government’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 Enterprise, Trade and
Employment, confirms that the IDA has complied with its obligations under tax law.
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30

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 of Members of Stateand State Sponsored Committees and Boards
IDA Ireland fully complies with this Statement of Practice.
4. Guidelines for the Appraisal and Management of Capital Expenditure
Proposals IDA Ireland has well-established robust procedures in place for the Appraisal and Management of Capital
Expenditure projects arising under the Capital Grants or Property programmes. These procedures comply with theprinciples set out in the Guidelines for the Appraisal and Management of Capital Expenditure Proposals.

Governance Statement and Board Members’ Report
5. Employment Equality Acts, 1998 And 2004
Equality is an established priority for IDA. The organisation has a progressive equality and diversity agenda and new
initiatives are developed on an ongoing basis. IDA Ireland values diversity and strives to be an equality employer whereindividual 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 groundsof 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 and development opportunities.
IDA is committed to maintaining and developing a balanced work/life environment for all staff.
6. The Health, Safety and Welfare at Work Act, 2005
IDA Ireland continues to take appropriate measures to protect the safety, health and welfare of all employees and visitors
within its offices to meet the provisions of this Act. This extends to the Public Health (Tobacco) Acts 2002 and 2004.
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31

7. Worker Participation (State Enterprise) Act, 1988
Consultative structures are operating effectively in IDA Ireland and are a recognised feature of the organisation’scommunications and consultative structure. The Joint Consultative Committee is welcomed as a positive process by bothmanagement and staff. Additionally, we continue to partner with the Trade Union in IDA to progress any actions arisingfrom the current public service agreement 2021-2022 “Building Momentum”.
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 have completed
statements of interest in compliance with the provisions of the Acts.
9. Freedom of Information Act 2014
IDA Ireland complies with this Act. Requests for information under this Act should be addressed to the Freedom ofInformation Executive, IDA Ireland, 3 Park Place, Hatch St Upper, Dublin 2. D02 FX65.

Governance Statement and Board Members’ Report
10. Energy Efficiency
In compliance with the Government memorandum of June 2001, IDA Ireland, in the design, planning and construction 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. IDA’s Global HQ at Three Park Place is A3 BER
rated and is certified WiredScore Platinum – features include high quality building envelope insulation, thermal storage,
rain water harvesting, photovoltaic panels, combined heat & power (CHP) for renewable energy generation and LED
lighting.
11. (I) Prompt Payment of Accounts
The Prompt Payment of Accounts Act 1997 (the Act), was amended by the European Communities (Late Payment inCommercial Transactions) Regulations 2012, the European Communities (Late Payment in Commercial Transactions)
Regulations 2013 and the European Communities (Late Payment in Commercial Transactions) Regulations 2014.
Management is satisfied that IDA complied with the provisions of the Act (as amended) in all material respects.
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32

11. (II) Prompt Payment to Supplier
IDA Ireland is committed to meeting its obligations under the 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 madewithin 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 the Protected Disclosures Act 2014, IDA Ireland has established andmaintains procedures for the making of protected disclosures by workers who are or were employed by IDA Ireland andfor dealing with any disclosures made. IDA Ireland has provided staff with written information relating to the protecteddisclosures procedures. There were no protected disclosures made to IDA Ireland in 2021.

Governance Statement and Board Members’ Report
Board Responsibilities
The Board of IDA Ireland was established under the Industrial Development Act 1993. The functions of the Board are
set out in section 8 of that Act. The Board is accountable to the Minister for Enterprise, Trade and Employment and is
responsible for ensuring good governance and performs this task by setting strategic objectives and targets and taking
strategic decisions on all key business issues. The regular day-to-day management, control and direction of IDA Ireland
are the responsibility of the Chief Executive Officer (CEO) and the senior management team. The CEO and the senior
management team must follow the broad strategic direction set by the Board, and must ensure that all Board members
have a clear understanding of the key activities and decisions related to the entity, and of any significant risks likely toarise. The CEO acts as a direct liaison between the Board and management of IDA Ireland.
The work and responsibilities of the Board are set out in The Corporate Governance Manual which also contains thematters specifically reserved for Board decision. Standing items considered by the Board include:
Page

33

•
•
•
•
•

declaration of interests,
reports from committees,
financial reports/management accounts,
performance reports, andreserved matters.

Paragraph 7 (2) of the First Schedule of the Industrial Development Act 1986 requires the Board of IDA Ireland to keep, insuch form as may be approved by the Minister for Enterprise, Trade and Employment, with the consent of the Minister for
Public Expenditure and Reform, all proper and usual accounts of money received and expended by it.

Governance Statement and Board Members’ Report
In preparing these financial statements, the Board of IDA Ireland is required to:
•
•
•
		
		

select suitable accounting policies and apply them consistently,
make judgements and estimates that are reasonable and prudent,
prepare the financial statements on the going concern basis unless it is inappropriate to presume that it will 		
continue in operation, and state whether applicable accounting standards have been followed, 				subject to any material departures disclosed and explained in the financial statements.

The Board is responsible for keeping adequate accounting records which disclose, with reasonable accuracy at any
time, its financial position and enables it to ensure that the financial statements comply with Paragraph 7 (2) of theFirst Schedule of the Industrial Development Act 1986. The maintenance and integrity of the corporate and financial
information on the IDA Ireland’s website is the responsibility of the Board.
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34

The Board is responsible for approving the annual plan and budget. An evaluation of the performance of IDA Ireland byreference to the annual plan and budget was carried out on 10th February 2022.
The Board is also responsible for safeguarding its assets and hence for taking reasonable steps for the prevention anddetection of fraud and other irregularities.
The Board considers that the financial statements of IDA Ireland give a true and fair view of the financial performance andthe financial position of IDA Ireland at 31 December 2021.

Governance Statement and Board Members’ Report
Board Structure
The Board consists of a Chairperson, the CEO and up to ten ordinary members, all of whom are appointed by the Minister
for Enterprise, Trade and Employment. The members of the Board are appointed for a period of five years and meet 10
times a year or more often if required. The table below details the appointment period for current members:

Board Member

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35

Role

Frank Ryan
ChairmanMartin Shanahan
CEO
Geraldine McGinty
Ordinary member				Barry O’Sullivan
Ordinary member				Marian Corcoran
Ordinary member
Dermot Mulligan
Ordinary member				Mary Mosse
Ordinary member
Kevin Cooney
Ordinary member
Thomas (Tony) Kennedy Ordinary member
Ann Hargaden
Ordinary member
Regina Moran
Ordinary member
Bill O’Connell
Ordinary member
Declan Hughes
Ordinary Member

Date Appointed
1st January 2014 (retired 31 December 2018. Re-appointed 1 January 2019)
31st August 2014
8th August 2014 (retired 31 December 2017. Re-appointed 26 January 2018.
Retired 1st September 2021)
4th September 2015 (retired 31 December 2018.
Re-appointed 1 January 2019)
26th August 2016 (retired 31 December 2020. Re-appointed 1 January 2021)
2th October 2016 (retired 31 December 2020. Re-appointed 14 January 2021.
Retired 31st December 2021)
17th September 2017. Retired 31st December 2021
8th June 2018					8th June 2018. Retired 31st December 2021. Re-appointed 2nd March 2022)
27th November 2020
27th November 2020
27th November 2020
8th February 2022

The Board carried out a Board Effectiveness and Evaluation Review, completed in December 2021.
Key Personnel changes – Board members as above. At Senior Management level (Divisional Manager or higher) the followingchanges occurred during 2021: Donal Travers was appointed a Divisional Manager in March 2021; Leo Clancy resigned as a
Divisional Manager in May 2021; Shane Nolan was appointed a Divisional Manager in May 2021.

Governance Statement and Board Members’ Report
Board 2021
The Board operates to best practice corporate governance principles and in line with the guidelines set out in the ‘Code ofPractice for the Governance of State Bodies’ as issued by the Department of Public Expenditure & Reform, both in its own
activities and in its use of committees.
It is responsible for setting the broad policies of the organisation and for overseeing its operation. It performs thesefunctions directly and through the operation of focused Board Committees. Responsibility for the implementation ofpolicy rests with executive management.
The Board has statutory authority to approve grant aid up to the levels set out in the Industrial Development Acts andto 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.
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36

In accordance with the ‘Code of Practice for the Governance of State Bodies’ 2016, IDA Ireland fully complies with
Government policy on the pay of Chief Executives and State Body employees and with Government guidelines on thepayment of fees to Board Members.
Frank Ryan
Chairman, IDA Ireland
Martin Shanahan
Chief Executive Officer, IDA Ireland
Geraldine McGinty
Associate Professor of Clinical Radiology and Population Science, Weill Cornell Medical College, New York
Assistant Attending Radiologist, New York Presbyterian HospitalMarian CorcoranFounder MC 2 Change Limited

Governance Statement and Board Members’ Report
Dermot Mulligan
Asst. Secretary General
Department of Enterprise, Trade and Employment
Barry O’SullivanVice President of Manufacturing, Johnson and Johnson Vision Care
Mary Mosse
Director Port of Waterford Company
Member of the Low Pay Commission
External Examiner Cardiff Metropolitan University

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37

Thomas (Tony) Kennedy
CEO Tawin Consulting
Kevin Cooney
Former Senior Vice President, Former Managing
Director EMEA, CIO, Xilinx Inc
Ann Hargaden
Consultant at Lisney Ireland.
Bill O’Connell
Principal BOC Consulting Services
Regina Moran
Vice President, Strategic Projects & Change
FujitsuJohn Nolan
Secretary, IDA Ireland

Governance Statement and Board Members’ Report
The Board committee structure is outlined below.
Audit, Finance and Risk Committee
Assists and supports the Board in discharging its legal and accounting responsibilities; communicates with external
auditors and evaluates and controls the internal audit function; reviews financial planning and the system of internalfinancial control. It also oversees the implementation of the organisation’s risk policy including the development of its
risk register and monitors budgeting and banking arrangements.

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38

Members 2021
		
Geraldine McGinty (Chair) (retired 1st September 2021)
Tony Kennedy (Acting Chair from 1st September 2021)
Dermot Mulligan
Ann Hargaden
Regina Moran
Liam Rattigan (retired 31st March 2021) (External Committee Member)John Glennon (appointed 1st December 2021) (External Committee Member)
Regional Development and Property Committee
Provides guidance on the implementation of the regional development aspects of IDA’s Strategy. Reviews and monitors
IDA’s annual and cumulative regional targets and its involvement in national and regional strategy development. Reviews
policy with regard to the financing, provision, maintenance and disposal of property, approves procedures with regard totendering and awarding of contracts and approves expenditure/sales of up to €12million.

Governance Statement and Board Members’ Report
Members 2021
Marian Corcoran (Chair)Dermot Mulligan
Mary Mosse
Barry O’Sullivan
Geraldine McGinty (retired 1st September 2021)
Bill O’Connell
Ann Hargaden
Martin Shanahan
Innovation and Sustainable Development Committee
Provides guidance on the promotion by IDA of sustainable economic development in line with Government policy;
on supporting sectoral and industry transformation through innovation, the development of human capital and theadoption of advanced manufacturing technologies; and on increasing research and development by companies.
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39

Members 2021
Barry O’Sullivan (Chair)
Mary Mosse
Kevin Cooney
Dermot Mulligan
Tony Kennedy
Bill O’Connell
Regina MoranGovernance Statement and Board Members’ Report
Organisational Development Committee
Reviews the performance of the senior management team and plans for management development and succession.
The Committee also provides guidance on organisational development and the Agency’s Diversity and Inclusion Policy.
Members 2021
Frank Ryan (Chair)
Marian CorcoranMartin Shanahan
Kevin CooneyManagement Investment Committee
Reviews all proposals for grant assistance and recommends them to the Board. Under powers delegated by the Board theCommittee approves grants up to a maximum of €900,000.
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40

Members 2021
Martin Shanahan (Chair)
Mary Buckley
Eileen Sharpe
Regina Gannon
Denis CurranGovernance Statement and Board Members’ Report
Board Schedule of Attendance, Fees and Expenses
A schedule of attendance at the Board and Committee meetings for 2021
is set out below including the fees and expenses received by each member.
			Audit,
Regional		
Board
Finace & Development Organisational
			
Risk& Property
Development
			Committee Committee
Committee
Number of Meetings
10
5
10
7

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41

Frank Ryan (Chairman)
Martin Shanahan (Chief Executive)
Kevin CooneyMarian Corcoran
Ann Hargaden
Tony Kennedy
Geraldine McGinty
Regina Moran
Mary Mosse
Dermot Mulligan
Bill O’Connell
Barry O’Sullivan

10
10
10
10
10
9
6
9
10
9
10
10

5
4
2
4
5
-

9
10
10
5
9
8
10
9

7
5
7
6
-

Innovation &SectoralDevelopment
Committee
9

Fees
2021
€

Expenses
2021
€

9
8
9
7
9
5
9
9

20,52011,97011,97012,968
11,970
7,980
12,968
11,97012,968
11,97064-

127,25464							

Board Members expenses in 2021 amounted to €64 broken down €Nil accommodation and €64 other travel, subsistence andvouched food expenses. There were no Regional or Overseas Board meetings in 2021. Fees for Ann Hargaden, Regina Moran
and Bill O’Connell include a meeting attended in December 2020.

Governance Statement and Board Members’ Report

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42

Disclosures Required by Code of Practice for the Governance of State Bodies (2016)
The Board is responsible for ensuring that IDA has complied with the requirements of the Code of Practice for the Governanceof State Bodies (“the Code”), as published by the Department of Public Expenditure and Reform in August 2016. The following
disclosures are required by the Code.
						
Permanent Salary Breakdown		 Number of Employees
Employee Benefits
2021
2020
€60,000 to €70,000
41
34€70,001 to €80,000
2335€80,001 to €90,000
41
28€90,001 to €100,000
2233€100,001 to €110,000
1111€110,001 to €120,000
7
5€120,001 to €130,000
31€130,001 to €140,000
2€140,001 to €150,000
52€150,001 to €160,000
29€160,001 to €170,000
33€170,001 to €180,000
1
1€180,001 to €190,000
1€190,001 to €200,000
1-Governance Statement and Board Members’ Report
Consultancy Costs
Consultancy costs include the cost of external advice to management and exclude outsourced ‘business as usual’ functions.
					
					

2021
€’000

2020
€’000

Legal Advice				
1,327
763
Commercial & Technical Evaluation and Studies				306
187
Financial / Actuarial Advice				1234
Human Resources				54
93
Business Improvement				55
2
Other				3783								
					
1,791
1,162
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43

Consultancy costs capitalised				Consultancy costs charged to the Income and Expenditure and Retained Revenue Reserves

1,791

1,162

					

1,791

1,162

Legal Costs and Settlements
The table below provides a breakdown of amounts recognised as expenditure in the reporting period in relation to legal
costs, settlements and conciliation and arbitration proceedings relating to contracts with third parties. This does not include
expenditure incurred in relation to general legal advice received by IDA which is disclosed in Consultancy costs above.
					
					

2021
€’000

2020
€’000

Legal Fees - Legal Proceedings				Conciliation and arbitration payments				Settlements				

1,138
-

625
-

					

1,138

625

Legal Costs relate to two ongoing matters involving IDA.
Additional costs were paid by IDA’s insurance company in relation to one of the matters.

Governance Statement and Board Members’ Report
Travel and Subsistence Expenditure
Travel and subsistence expenditure is categorised as follows:
					
					
Domestic- Board				- Employees				

Page

44

2021
€’000

2020
€’000

174

4
404

International- Board				- Employees				

47

2
355

					

221

765

2021
€’000

2020
€’000

-

9

International- Board				- Employees				

-

-

					

-

9

Hospitality Expenditure
The Income and Expenditure Account includes the following hospitality expenditure:
					
					
Domestic- Board				- Employees						Frank Ryan
Martin Shanahan		
Chairman
Chief Executive				

Dated:		
13th June 2022

Statement on Internal Control
Scope of Responsibility
On behalf of the Board of IDA I acknowledge our responsibility for ensuring that an effective system of internal control
is maintained and operated by the Agency. This responsibility takes account of the requirements of the Code ofPractice for the Governance of State Bodies (2016).
Purpose of the System of Internal Control
The system of internal control is designed to manage risk to a tolerable level rather than to eliminate it. The system
can therefore only provide reasonable and not absolute assurance that assets are safeguarded, transactions
authorised and properly recorded, and that material errors or irregularities are either prevented or would be detected
in a timely way.

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45

The system of internal control, which accords with guidance issued by the Department of Public Expenditure andReform has been in place in IDA for the year ended 31 December 2021 and up to the date of approval of the financial
statements.

Waiver from Department of Public Expenditure and Reform Circular
In 2014, the Department of Public Expenditure and Reform issued a circular in relation to management of andaccountability for grants from exchequer funds. This requires that grantors stipulate that grant recipients disclose specificinformation in their financial statements. This includes details of the grant amount, the purpose for which funds wereapplied and information on salary rates in operation in the entity. IDA sought a waiver from these requirements from the
Department of Enterprise, Trade and Employment, on the basis that IDA’s strong transactional controls satisfy the aims of
the Circular. This waiver was granted.
Capacity to Handle Risk
IDA has an Audit, Finance and Risk Committee (AFRC) comprising four Board members and one external member, withfinancial and audit expertise, one of whom is the Chair. The AFRC met five times in 2021.
IDA has an outsourced internal audit function, which reports directly to the AFRC, is adequately resourced and conducts a
programme of work agreed with the AFRC.
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46

The AFRC has developed a risk management policy which sets out its risk appetite, the risk management processes inplace and details the roles and responsibilities of staff in relation to risk. The policy has been issued to all staff who are
expected to work within IDA’s risk management policies, to alert management on emerging risks and control weaknesses
and assume responsibility for risks and controls within their own area of work.
Risk and Control Framework
IDA has implemented a risk management system which identifies and reports key risks and the management actions
being taken to address and, to the extent possible, to mitigate those risks.
A risk register is in place which identifies the key risks facing IDA and these have been identified, evaluated and gradedaccording to their significance. The register is reviewed and approved by the AFRC and the Board on an annual basis. The
outcome of these assessments is used to plan and allocate resources to ensure risks are managed to an acceptable level.

The risk register details the controls and actions needed to mitigate risks and responsibility for operation of controls
assigned to specific staff. I confirm that a control environment containing the following elements is in place:•

procedures for all key business processes have been documented,•

financial responsibilities have been assigned at management level with corresponding accountability,

•
		

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47

there is an appropriate budgeting system with an annual budget which is kept under review by senior 			management,•

there are systems aimed at ensuring the security of the information and communication technology systems,•

there are systems in place to safeguard the assets, and

•
		
		
		
		

control procedures over grant funding comprise the appraisal; technical and financial assessment; approval 		and payment of grant related projects, including cost benefit analysis, technical assessments, establishment of 		project milestones, payments in accordance with terms and conditions of legal agreements between IDA and the 		
grantee and provisions for the repayment of the grant if the project does not fulfil commitments made by the 		promotor.

Impact of COVID-19 on the Risk and Control Framework
IDA has continuously assessed its control framework following the outbreak of Covid-19 and the move to remote working
for all staff. Existing secure technology platforms were extended to all staff to facilitate remote working and enhanced
cyber security measures including training and testing were implemented. The impact of risks arising from COVID-19 areassessed as part of the Agency’s risk management process and IDA will continue to take all necessary actions to mitigate
all material risks identified.
Ongoing Monitoring and Review
Formal procedures have been established for monitoring control processes and control deficiencies are communicatedto those responsible for taking corrective action and to management and the Board, where relevant, in a timely way. I
confirm that the following ongoing monitoring systems are in place:

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48

•
		

key risks and related controls have been identified and processes have been put in place to monitor the operationof those key controls and report any identified deficiencies,•		reporting arrangements have been established at all levels where responsibility for financial management has 		
been assigned, and•		

there are regular reviews by senior management of periodic and annual performance and financial reports which 		indicate performance against budgets/forecasts.

Procurement
I confirm that IDA has procedures in place to ensure compliance with current procurement rules and guidelines and thatduring 2021 IDA complied with those procedures.

Review of EffectivenessI confirm that IDA has procedures to monitor the effectiveness of its risk management and control procedures. IDA’smonitoring and review of the effectiveness of the system of internal control is informed by the work of the internal andexternal auditors, the Audit, Finance and Risk Committee which oversees their work, and the senior management within
IDA responsible for the development and maintenance of the internal control framework.
I confirm that the Board conducted an annual review of the effectiveness of the internal controls on 10th March 2022.
Internal Control Issues
No weaknesses in internal control were identified in relation to 2021 that require disclosure in the financial statements.
Signed on behalf of the Board

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49

______________
Frank Ryan
Chairman
13th June 2022

Statement of Income and Expenditure and Retained Revenue Reserves
For Year Ended 31 December 2021

Amounts shown under Income
and Expenditure are in respect ofcontinuing activities. The Statement of
Income						 Income and Expenditure and Retained
Revenue Reserves includes all gains
Oireachtas Grants
2
200,236
197,109
and losses recognised in the year.
National Training Fund
3
3,000
3,000
Grant Refunds
4
4,766
917
Rental Income		
3,996
3,545
The Statement of Cashflows and notes
Other Income
5
497
732
1 to 26 form part of these Financial
Profit / (Loss) on Disposal of Assets
6
1,779
5,767
Statements.
Net Deferred Pension Funding
21 (f)
7,253
6,880						On behalf of the Board of IDA:			
221,527
217,950
Date: 13th June, 2022
Expenditure						Grants Payable
7
105,429
106,446Frank Ryan
Promotion, Administration and General Expenses
8
63,19353,480ChairmanIndustrial Building Charges
9
5,715
8,288
Depreciation Charges
10
17,717
18,490
Impairment Charges / (Reversals)
10(14,813)(865)
Pension Costs
21 (c)
8,607
8,070						
Martin Shanahan			
185,848
193,909
Chief Executive						
Surplus for the Year before Appropriations		
35,67924,041
Contribution to the Exchequer
11
Transfer (to) Capital
12(36,759)(10,402)
			
		
Notes

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50

2021
€’000

2020
€’000

(Deficit) / Surplus for the year after Appropriations		
(1,080)13,639						
Balance Brought Forward at 1 January		
33,632
19,993
Balance Carried Forward at 31st December 2021		

32,552

33,632			

Tony Kennedy
Chairman Audit,
Finance & Risk Committee

Statement of Comprehensive Income
For Year Ended 31 December 2021
		
		

Notes

Surplus before Appropriations		
Experience gain / (loss) on retirement benefit obligations
21 (d)
Change in assumptions underlying the present value of
retirement benefit obligations
21 (d)

2021
€’000

2020
€’000

35,679305

24,041(7,344)(2,234)(19,124)

Total actuarial (loss) in the year		(1,929)(26,468)						
Adjustment to deferred retirement benefits funding		
1,929
26,468Other Comprehensive Income for the year		

35,679The Statement of Cashflows and notes
1 to 26 form part of these Financial
Statements.
		On behalf of the Board of IDA: Date:
13th, June 2022
Frank Ryan
Chairman

24,041					Martin Shanahan
Chief Executive

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51

Tony Kennedy
Chairman Audit,
Finance & Risk Committee

Statement of Financial Position			
As at 31 December 2021
		
Notes

The Statement of Cashflows and notes
1 to 26 form part of these Financial
Statements.
Tangible Fixed Assets								Industrial Property
13274,788
235,438
On behalf of the Board of IDA: Date:
Other Fixed Assets
14
7,879
10,470						 13th, June 2022
			282,667
245,908						
Intangible Assets 						Frank Ryan
Telecommunication Assets
15
Chairman						
Total Tangible and Intangible Assets 		
282,667
245,908

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52

2021
€’000

2020
€’000

Current Assets						Inventory
16
5,488
Martin Shanahan
Receivables
17
32,86536,121
Chief Executive
Cash and Cash Equivalents		
300
4,486
						
			
38,65340,607
Current Liabilities												
Tony Kennedy
Payables18(5,961)(6,913)Chairman Audit,						
Finance & Risk Committee
Net Current Assets		
32,692
33,694
					Long Term Receivables						Receivables: amounts falling due after more than one year17288
Provisions						Provisions for Liabilities and Charges
19
(140)
(350)
						
Pensions						Deferred Pension Funding Asset
20 (f)
219,312210,130
Pension Liability
20 (e)(219,312)(210,130)						
Total Net Assets		
315,219
279,540						
						
Representing:						Capital Account12282,667

245,908

Operating Account		

32,552

33,632

			

315,219

279,540

Statement of Cashflow

For Year Ended 31 December 2021
			
		
Notes

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53

2021
€’000

2020
€’000

Net Cash Flows From Operating Activities
Excess Income over Expenditure		
Reduction in Value of Fixed Assets		
- Industrial Property
10- Other Fixed Assets & Telecommunication Assets
10
Expenditure Capitalised
8 (a)(Profit) on Disposal of Assets
6

35,67924,041(2,129)5,033(777)(1,779)12,971
4,654(590)(5,767)

Bank Interest
Contribution to the Exchequer(Increase) in Inventory
Decrease / (Increase) in Receivables amounts falling due within one year
(Decrease) / Increase in Payables amounts falling due within 1 year
(Decrease) in Provisions and Charges
Decrease in Receivables amounts falling due after more than one year

5
11
16
17
18
19
17

(5,488)
3,256
(952)
(210)
288

(13,518)745(1,976)315

Net Cash Inflow from Operating Activities		

32,921

20,875

Cash Flows from Investing Activities
Acquisitions		
Disposals		

(49,592)
12,485(37,213)
15,543

Net Cash Flows from Investing Activities		

(37,107)(21,670)

Bank Interest Received				
Net Cash Flows from Financing Activities		

-

-

-

-

Net (Decrease) in Cash and Cash Equivalents		

(4,186)(795)

Cash and cash equivalents at 1 January		

4,486

5,281

Cash and Cash Equivalents at 31 December		

300

4,486

Cash Flows From Financing Activities

Notes to the Financial Statements
For Year Ended 31 December 2021

1. Accounting Policies
The basis of accounting and significant accounting policies adopted by IDA are set out below. They have all been appliedconsistently throughout the year and the preceding year:

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54

(a) General Information
IDA Ireland’s head office is located at Three Park Place, Hatch Street Upper, Dublin 2, D02 FX65. IDA Ireland is a Public 		
Benefit Entity (PBE). A Public Benefit Entity provides goods or services for the general public, community or social 		benefit and where any equity is provided, it is to support the entity’s primary objectives rather than with 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 tocarry out such other functions as may from time to time be assigned to it by the Minister.
(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 Enterprise, Trade and Employment 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 isconsidered 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.

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55

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 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) Grants Payable
		 Grants are accrued in the Financial Statements when the grantee complies with stipulated conditions.
(e) 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 and fixtures and fittings.
			 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(ii) Site Development(iii) Office Equipment / Fixtures & Fittings(iv) Computers(v) Land3 % per annum
10 % per annum
20 % per annum
33 % per annum
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.
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56

Impairment of Property, Plant and Equipment
Provisions for impairments may be made following reviews of fixed assets and telecommuniaction 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
the Statement of Income and Expenditure and Retained Revenue Reserves in the year in which they are made. Wherea subsequent review indicates that the circumstances which gave rise to a provision for impairment no longer exists orhave 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 in previous years are accounted for through the Statement of Income and Expenditure andRetained Revenue Reserves.

(f) 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.
The cost of land, site development and industrial property includes an apportionment of administration costs 			
associated with the acquisition or development of the assets.
By way of memorandum Income and Expenditure in respect of Industrial Property transactions are set out in note 22 to
the Financial Statements.
(g) Intangible Fixed Assets:
Intangible Fixed Assets comprise telecommunication assets which constitute an indefeasible right of use of a 			designated portion of a global telecommunications network for a period of 25 years from 2000.
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57

(h) Inventory
Inventory consists of inventories held for distribution at no or nominal consideration, measured at the lower of cost 		
adjusted, when applicable, for any loss of service potential and replacement cost.
(i) 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 leasing of telecommunication assets.
(v) Amounts due in respect of joint arrangements.
(vi) Amounts due in respect of loans advanced and interest thereon.
(j) Payables comprise amounts payable in respect of:(i) Creditors and Accruals.
(ii) Grants are payable in line with note (d)(iii) Deposits for uncompleted sales.
(k) 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.

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58

(l) 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 theunderlying 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.
(m) 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.
(n) 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 yearend 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 Forfás and provided for: the establishment of IDA Ireland, Enterprise Ireland andScience 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 noless 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 Enterprise, Trade and Employment assumes legal responsibility for the existing Forfás pension
schemes, pensioners and former staff with preserved benefits.

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59

Under the Public Service Pensions (Single Scheme and other provisions) Act 2012 new entrants to the Public Service
on or after 1 January 2013 become members of the Single Public Service Pension Scheme. IDA has the full legal
responsibility for its employees as their legal employer. This includes responsibility for the pensions of current employees
who retire after 16th July 2014. The Financial Statements also reflect the pension costs of 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 gobasis from monies available to it, including monies provided by the Department of Enterprise, Trade and Employment
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 the pension 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 gains or losses arising on scheme liabilities are reflected in the Statement of Comprehensive Income and acorresponding adjustment is recognised in the amount recoverable from the Department of Enterprise, Trade and
Employment.
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 Enterprise, Tradeand Employment.

Pension scheme liabilities are measured on an actuarial basis using the projected unit credit method.
(o) Critical Judgements, Estimates and Assumptions
In 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 and associated assumptions are based on historical experience and other factors that are considered to 		be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting 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 and future periods if the revision affects both current and future periods.
The following judgements and estimates have had the most significant effect on amounts recognised in the financial 		statements:
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60

Residual values and depreciation of assets
Management have reviewed the asset lives and associated residual values of all fixed asset classes, and have 			concluded that asset lives and residual values are appropriate.
Impairment reviews of assets
Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances 		
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which 		the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s 		
fair value less cost 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 and mortality rates) are updated
annually based on current economic conditions, and for any relevant changes to the terms and conditions of the pension
and post-retirement 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

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61

Provisions
The Agency makes provisions for legal and constructive obligations, which it knows to be outstanding at the period end
date. These provisions are generally made based on historical or other pertinent information and adjusted for recent
trends where relevant. However, they are estimates of the financial costs of events that may not occur for some years.
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
For Year Ended 31 December 2021

			
2. Oireachtas Grants								The Oireachtas Grants are provided under section 35 of the Industrial Development (Science Foundation Ireland) Act 2003.
The Oireachtas Grants as shown in the Financial Statements consist of the following sums paid from Vote 32 - Enterprise,
Trade and Employment:

Page

62

			
			

2021
€’000

2020
€’000					Grant for Promotion and Administration Expenditure
Vote 32 - Subhead A5 (i)Grant for Industry
Vote 32 - Subhead A5 (ii)
Grant for Industrial Property
Vote 32 - Subhead A5 (iii)						

53,036
98,50048,70062,10996,00039,000200,236

197,109

The Grant for Promotion and Administration Expenditure of €53.036m is stated net of employee pension
contributions of €1,096,697 (€1,068,494 - 2020) remitted to the Exchequer.
3. National Training Fund
Included in the training grant payments of €17.801m (see note 7) are training grant payments of €3m (€3m in 2020) which were met with funds
received through the Department of Enterprise Trade and Employment from the National Training Fund, which is administered through the
Department of Education & Skills. 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.
4. 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 €4.766m (€0.917m in 2020) relating to grant refunds.
			
5. Other Income		

2021
€’000

2020
€’000

Private sector sublets of Leased Office Accommodation		
Bank Interest		
Fee Income in respect of Undeveloped Lands		
Interest on Industrial Property Transactions		
Sundry Income		
			
			

144
334
19

(9)
440
231
70

497

732

Notes to the Financial Statements continued
For Year Ended 31 December 2021

						
6. Profit on Disposal of Assets		

2021
€’000

2020
€’000

Consideration (net of fees and direct expenses)		
Historical Costs		
Write back of provision for impairment		Write back of provision for depreciation		

12,485(17,741)
2,221
4,814

15,543(17,640)
21
7,843

			

1,779

5,767

			
7. Grants Payable		

2021
€’000

2020
€’000

Capital		
Employment		
R&D		
Training		
Other Grants							

15,795
4,471
67,14417,801
218

18,6806,359
68,30912,736362

105,429

106,446

The profit on disposal comprises of profits of €2.745m, losses of €0.966m resulting in net profit on disposal of €1.779m.

Page

63

In 2021 €3.494m (2020 - €1.34m) was paid under a Medicinal Products for Covid 19 scheme and €390k (2020 - €76k) was
paid under a Covid 19 Business Continuity Scheme.
		
8 (a)		Promotion, Administration and General Expenses 		

2021
€’000

2020
€’000

Board members’ fees, expenses and CEO remuneration		
Other remuneration costs - see 8 (b)		
Marketing, consultancy, promotions and advertising		
General administration		
Audit fee		Provision for doubtful debts		
Less: Capitalisation of expenditure associated with industrial property development		

319
29,33519,021
15,343
62
(110)
(777)

287
29,843
10,446
13,461
62
(29)
(590)

			

63,19353,480Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
8 (b)		Other remuneration costs comprise: 		

2021
€’000

2020
€’000

Staff short-term benefits		
Employers contribution to social welfare		
Termination Benefits		
Retirement benefit costs		

27,3242,010
127,935
1,904
4

			

29,33529,8438 (c)Staff Short Term Benefits		
Basic Pay		
Overtime		
Allowances		

€’000
27,324-€’000
27,9332-

			

27,32427,935The total number of staff employed (WTE) at year end was 328 (2020 : 324)

Page

64

In 2021 €788k of Additional Superannuation Contribution has been deducted and paid over to the
Department of Enterprise Trade and Employment.

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			

Page

65

8 (d)
Permanent Salary Breakdown
Employee Benefits

Number of Employees (WTE)
2021
2020

€60,000 to €70,000€70,001 to €80,000€80,001 to €90,000€90,001 to €100,000€100,001 to €110,000€110,001 to €120,000€120,001 to €130,000€130,001 to €140,000€140,001 to €150,000€150,001 to €160,000€160,001 to €170,000€170,001 to €180,000€180,001 to €190,000€190,001 to €200,000

41
23
41
22
11
7
3
2
5
2
3
1
1

34
35
28
33
11
5
1
2
9
3
1
1
-

8 (e)		Key Management Personnel		Key Management personnel in IDA consists of the members of the Board, the Chief Executive Officer, the Executive Director and theDivisional Managers. The total value of employee benefits for key management personnel is set out below:
			
2021
			
€’000
Basic Pay		
1,476
Allowances		Termination benefits		
Health Insurance		
			
			
1,476

2020
€’000
1,368
1,368

Notes to the Financial Statements continued
For Year Ended 31 December 2021

						
8 (f)		

2021
€’000

2020
€’000

Chief Executive Remuneration		Mr Martin Shanahan		

192,105

188,808

Total		

192,105

188,808

The Chief Executive Officer (CEO) receives an annual salary of €193,542 effective from 1st October 2021. The CEO’s pension entitlement
does not extend beyond the standard public sector pension arrangements.
8 (g)Annual Rent Payable in respect of Leased Office Accommodation		 Number
			of Offices
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66

Lease Expiry
Date

Gross Rent
PayableNet Rent
Payable					
Head Office		
1
2043
Regional Offices		32022-2028
Overseas Offices		192021-2029

€’000
7,769
143
2,409

€’000
3,924
143
2,409

					

10,3216,476(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. Net rent payable takes account of amounts received from other State bodies and private tenants that occupy part of the officebuildings concerned.
(ii) The IDA renewed one overseas lease in 2021.
(iii) Two overseas office leases contain a break clause in 2024(iv) The Agency owns one property which is used or available as office space for staff.

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
8 (h) Commitments under Operating Leases			At 31 December the commitment under operating leases is €175.441m. These leases will expire as follows:
		
2021
2020
		
€’000		€’000				Non Industrial
Industrial
Industrial		Non Industrial
Industrial		Property
Property
Property		Property
Property			
Occupied
Available for			Occupied			 under leases
Promotion			 under leases

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67

Industrial
Property
Available for
Promotion

within one year
in the second to fifth years inclusive
more than 5 years

10,321
36,487
128,633

-

-		
-		
-		

10,44637,420136,495--

		

175,441--		

184,361--

9. Industrial Building Charges
These charges include the net costs associated with industrial buildings provided by the private sector and maintenance costs in respect of all promotableindustrial buildings held by IDA. Costs comprise: professional, legal and consultancy costs €2.99m [2020 €2.445m], net operating lease costs (€0.006m) [2020€0.004m] and business park maintenance costs €2.941m [2020 €7.815m], reduced by the net movement on provisions in respect of operating leases (as set
out in note 18) €0.21m [2020 €1.976m].

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
10. Reduction in Value of Fixed Assets													
Notes
Depreciation Charges
		- Industrial Property				13		- Other Fixed Assets				
14

2021
€’000

2020
€’000

12,684
5,033

13,836
4,654

Impairment Charges / (Reversals)		

13(14,813)(865)							

2,904

17,625- Industrial Property				Depreciation is calculated in order to write off the cost of assets less, where applicable, any impairment provision over their estimatedremaining useful lives. No provision for depreciation is made in respect of land or investments.
Page

68

Impairment charges arise where the book value of Industrial Property or Telecommunications Assets exceed their estimated recoverable
value. Impairment reversals arise where there is clear evidence that the recoverable value of Industrial Property or Telecommunications
Assets exceed their book value, upto the amount of the original impairment.			

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
11. Contribution to the Exchequer			During 2021 and 2020 IDA Ireland received sanction from DETE to retain Own Resource Income generated. Excess own resource Income above
this level and any unused Own Resource Income was refundable to DETE, as a contribution to the Exchequer. In 2021, IDA Ireland received
sanction from DETE to retain the €0.659m unused Own Resource Income in 2020. In 2022, sanction from DETE to retain €0.449m unused Own
Resource Income in 2021, resulting in nil contributions paid to the Exchequer in 2021 and 2020, is awaited.
12. Capital
					
			
Notes
€’000
At 1 January				
Net Movements on:
		
Page

69

- Industrial Property- Other Fixed Assets

13
14

2021
€’000

€’000

2020
€’000

245,908		

235,506

39,350		(2,591)		

13,868(3,466)

Transfer from Statement of Income and Expenditure				36,759		

10,402

At 31 December							

282,667		

245,908

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
13. Tangible Fixed Assets - Industrial Property 2021		
Land
Site
Industrial				 Development
Property					 Occupied Under					
LeasesPage

70

Industrial
Property
Available for
Promotion

Total

Cost		
At 1 January		
Additions		
Transfers		
Disposals		

€’000
259,471
11,115(9,089)€’000
152,312
15,341(5,057)€’000
42,240260-€’000
46,89921,210(3,519)€’000
500,92247,926(17,665)

At 31 December		

261,497

162,596

42,50064,590531,183

Provision for Impairment
At 1 January		
Charge / (Reversal) for Year		Transfer		Disposals		

104,938(14,639)
-

174
977
(174)
-		

2,289
(2,221)

108,378(14,813)(2,221)

At 31 December		

90,299-977

6891,344

Provision for Depreciation
At 1 January		
Charge for Year		Transfers		
Write back on depreciation of Disposals		

-

140,985
9,534(4,093)

12,172
1,109
73
-

3,949
2,041
(73)
(646)

157,106
12,684(4,739)At 31 December		-

146,426

13,354

5,271

165,051

Net Book AmountAt 31 December		At 1 January		

171,198
154,533

16,170
11,15328,16929,091

59,251
40,661

274,788
235,438

Net Movement for Year						39,350Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
Land
Site
Industrial				 Development
Property					 Occupied Under					
Leases						
13. Tangible Fixed Assets - Industrial Property - 2020

Page

71

Industrial
Total		Property			Available for
Promotion			

Cost		
At 1 January		
Additions		
Transfers		
Disposals		

€’000
257,784
8,759(7,072)€’000
149,872
12,230(9,790)€’000
34,043
8,197
-

€’000
40,24815,626(8,197)
(778)

€’000
481,947
36,615(17,640)

At 31 December		

259,471

152,312

42,24046,899500,922

Provision for Impairment
At 1 January		
Charge / (Reversal) for Year		Transfers		
Disposals		

105,803
(865)
-

195
(21)

977
-

2,289
-

109,264(865)(21)

At 31 December		

104,938

174

977

2,289

108,378

Provision for Depreciation
At 1 January		
Charge for Year		Transfers		
Write back on depreciation of Disposals		-

137,434
11,347(7,796)

10,575
852
745
-

3,104
1,637
(745)
(47)

151,113
13,836(7,843)

At 31 December		-

140,985

12,172

3,949

157,106

Net Book AmountAt 31 December		At 1 January		

154,533
151,981

11,153
12,24329,091
22,491

40,661
34,855

235,438
221,570

Net Movement for Year						13,868(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 is entitled to receive half of the proceeds of any sales.
The net book amount included above in relation to this arrangement is €Nil.

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
14. Other Fixed Assets		
			
			
			
			
			

Page

72

2021			2020			Office andTotal		Office andTotal
Computer			ComputerEquipment,			 Equipment,
Fixtures &			
Fixtures &Fittings			
Fittings

Cost		€’000€’000		

€’000

€’000

At 1 January		
Additions		
Disposals		

23,3532,443(76)

23,353		
2,443		
(76)		

22,165
1,188-

22,165
1,188-

At 31 December		

25,72025,720		

23,35323,353

Provision for Depreciation
At 1 January		
Charge for Year		Disposals		

12,883
5,033(75)

12,883		
5,033		
(75)		

8,229
4,654
-

8,229
4,654
-

At 31 December		

17,841

17,841		

12,883

12,883

At 31 December		

7,879

7,879		

10,47010,470

At 1 January		

10,47010,470		

13,936

13,936Net Movement for Year		(2,591)(2,591)		

(3,466)(3,466)

Net Book Amount

15. Telecommunications Assets
Acting pursuant to a Government decision IDA Ireland, in conjunction with the Department of Public Enterprise (now the Department ofCommunications, Energy and Natural Resources), entered into contracts in 1999 for the purchase of telecommunication assets in the form of anindefeasible right of use of a designated portion 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 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.
			

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
16. Inventory			
		
2021
2020
		
€’000
€’000
Inventory			

5,488

-

Total at 31st December			

5,488

-

Inventory consists solely of digital manufacturing assets acquired by the IDA that are planned to be novated for nil consideration in 2022, aspart of the National Advanced Manufacturing Centre project.
IDA facilitated the establishment of AMC (incorporated as Advanced Manufacturing Centre Ireland Limited) as an industry led research &technology organisation with its own independent board (with an IDA Executive Team member as a Non-Executive Director) and executive
leadership team, which operates independently.
Page

73

IDA is providing interim funding from December 2021 to 30th June 2022 (up-to €160k) for the benefit of AMC for Salaries, Related Costs &Expenses.
17. Receivables					
		
2021
2021
2020
2020
Amounts falling due within one year:
€’000
€’000
€’000
€’000
Accounts Receivable and Prepayments
33,219		
36,792
Provision for Doubtful debts(354)		
(671)			32,865		

36,121

Amounts falling due after more than one year:
Amount due from sub-lessee in relation to fit out costs
-		
288
			
-		

288

			

32,865		

36,409(i) Included in receivables and prepayments are amounts of €25.603m in down payments on property transactions, mainly reflecting payments
to solicitors’ escrow accounts on property purchases, six transactions are expected to complete by Q2 2022 and it is anticipated that the othertransactions will complete by Q4 2022.
(ii) The long term Debtor of €288,000 in 2020 representing monies due from SEAI in relation to the fit out costs of the new Global Headquarters
occupied by IDA was repaid in full in 2021.

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
18. Payables			
Amounts falling due within one year:
		

2021
€’000

2020
€’000

Accounts Payable and Accruals			
Amount due on Uncompleted Sales			Grant Payment Accruals			

5,631
330
-

5,989
924
-

				

5,961

6,913

19. Provision for Liabilities and Charges			

Page

74

Operating Leases Provision
		

2021
€’000

2020
€’000

At 1st January			Net (reduction) for the year			

350
(210)

2,326
(1,976)

Total at 31st December			

140

350

The Operating Leases Provision comprises:					- Potential building reinstatement costs associated with obligations under operating leases.

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
20. Pensions
		 (a) IDA has responsibility for the pension costs of staff retiring from IDA post 16th July 2014, under the Industrial Development (Forfás 		
			 Dissolution Act 2014). Staff who are/were members of the Forfás Pension Scheme join the new IDA Scheme on superannuation 					 terms no less favourable than those they enjoyed under the Forfás Scheme immediately before the date of transfer from Forfás
			 to IDA. The following categories of staff are covered by the IDA:
		 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.
		 (c) Staff recruited since 1st January 2013, who are members of the Single Public Service Pension Scheme.
		 (d) Staff recruited since 1st January 2013, who joined the Forfás Pension Scheme (now the new IDA Scheme) as they were pre-existing 					 members of another public service scheme (with no more than six months break in service post 1st January 2013).

Page

75

		 Each of the Schemes include Spouses and Children’s schemes.
		 The new Single Public Service Scheme (“Single Scheme”) commenced with effect from 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 of the Single Scheme are		 set down in the Public Service Pensions (Single Scheme and Other provisions) Act 2012. Pension liabilities in relation to those individuals
		 employed under the Single Public Service Scheme for less than 2 years have not been included in the pension calculation as they will 				 not have accrued pension rights until after 2 years service is attained.
				 IDA meets the net costs arising from normal retirements. These are paid out of current 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 €1.097m for these schemes were remitted by IDA to the Exchequer in 2021 and pension
		 costs at retirement are paid by Oireachtas Grant Vote No 32 subhead A5 (i).
(b) Pension Disclosure under FRS102
			 Financial Reporting Standard 102 (FRS102) requires financial statements to reflect at fair value the assets and liabilities from an 					 employer’s superannuation obligations and any related funding and to recognise the costs of providing superannuation benefits in the			 accounting periods in which they are earned by employees.

Notes to the Financial Statements continued
For Year Ended 31 December 2021

			
				
(c) Analysis of Total Pension Charge
2021
2020
		
€’000
€’000

Page

76

Service costs			
Interest on Pension Scheme Liabilities			
Employee Contributions utilised in payment of Pensions			

8,033
1,671
(1,097)

7,031
2,108
(1,069)

				

8,607

8,070

(d) Analysis of amount recognised in Statement of Comprehensive Income
		

2021
€’000

2020
€’000

Experience Gains / (Losses)			
Changes in assumptions Gains / (Losses)			

305(2,234)(7,344)(19,124)

Actuarial Gain / (Loss)			

(1,929)(26,468)(e) Pension Liability
Change in Pension Schemes’ Liabilities

2021
€’000

2020
€’000

Opening Balance			Current Service Cost			Interest Costs			
Payments to Pensioners			
Actuarial (Gain) / Loss			

210,130
8,033
1,671(2,451)
1,929

176,7827,031
2,108(2,259)26,468Present Value of Schemes’ Obligations at 31 December			

219,312210,130(f) Net Deferred Funding for Pensions in Year
		

2021
€’000

2020
€’000

Funding Recoverable in respect of Current Year pension costs
Funding to pay Pensions			

9,704(2,451)9,139(2,259)

		

7,253

6,880

Notes to the Financial Statements continued

For
Year Ended 31 December 2021
			
IDA recognises as an asset an amount corresponding to the unfunded deferred liability for pensions on the basis of the set of assumptions
described below and a number of past events. These events include the statutory basis for the establishment of the superannuation schemes,
and the policy and practice currently in place in relation to funding public service pensions including contributions by employees and theannual estimates process. IDA has no evidence that this funding policy will not continue to meet such sums in accordance with current
practice.
The deferred funding asset for pensions at 31 December 2021 amounted to €219.312m (2020 - €210.130m). The quantification of the liability
is based on the financial assumptions set out in note 19(g). The assumptions used, which are based on actuarial advice, are advised to the
Department of Enterprise Trade and Employment.
(g) Valuation
The valuation used for FRS102 disclosures has been based on a full actuarial valuation at 31 December 2021. The financial assumptions used to
calculate scheme liabilities under FRS102 as at 31 December were as follows;

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77

Valuation method - Projected Unit
Discount rate
Future salary increases
Future state pension increases
Future pension increases
Future Inflation
Year of attaining age 65
Life expectancy - maleLife expectancy - female(h) History of defined Benefit Obligations - Commenced 2014
Year Ending 31 December
Defined Benefit Obligation
Experience gains / (losses) on Scheme Liabilities:
AmountPercentage of Scheme Liabilities
Total (loss) / gain recognised in Statement of Comprehensive Income:AmountPercentage of Scheme Liabilities

2021
1.20% p.a.
3.50% p.a.
3.50% p.a.
3.00% p.a.
2.00% p.a.

2020
0.8% p.a.
3.00% p.a.
3.00% p.a.
2.50% p.a.
1.50% p.a.

20191.20% p.a.
3.00% p.a.
3.00% p.a.
2.50% p.a.
1.50% p.a.

20181.90% p.a.
3.30% p.a.
3.30% p.a.
2.80% p.a.
1.80% p.a.

20171.95% p.a.
3.40% p.a.
3.40% p.a.
2.90% p.a.
1.90% p.a.

2021
21.8
24.2

2041
24.1
26.2

2021
€’000
219,3122020€’000
210,130

2019€’000
176,782

2018€’000
153,9422017€’000
151,667305
0.1%(7,344)(3.5%)

344
0.2%

3,954
2.6%

19
0.0%

(1,929)(0.9%)(26,468)(12.6%)(15,716)(8.9%)

5,660
3.7%(4,095)(2.7%)

Notes to the Financial Statements continued
For Year Ended 31 December 2021
21. Commitments
It is estimated that future payments likely to arise from Grant Commitments amounted to €261m as at 31 December 2021, estimates payableas follows; 2022 €102m, 2023 €63m, 2024 €45m, 2025 €28m, 2026 €14m, 2027 €6m, 2028 €3m. (At 31 December 2020 the estimate was €386m,
estimates payable as follows; 2021 €105m, 2022 €89m, 2023 €76m, 2024 €56m, 2025 €35m, 2026 €17m, 2027 €8m). Capital Commitments
outstanding at 31 December 2021 on contracts for the acquisition and development of Industrial Property amounted to €81m (2020 : €48m).
22. 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 deposit interest. Where interest receivable is subject to tax at source (e.g. DIRT), the net receivable amount is credited to the
Operating Account.

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78

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 which is 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 2021.
23. Industrial Property Income and Expenditure 			

2021

2020

Income:Notes		

€’000

€’000

Oireachtas Grant
2		
Rental Income IDA Ireland Client Companies			Fee Income in respect of Undeveloped Lands
5		
Interest on Industrial Property Transactions
5		
Profit on Disposal of Industrial Property			

48,700
3,996
144
334
1,778

39,000
3,545
440
231
5,754

				

54,952

48,970

Expenditure:
Promotion, Administration and General Expenses			Industrial Building Charges
9		
Depreciation Charges and Provisions
10		

1,694
5,715
(2,129)

1,590
8,288
12,971

				

5,280

22,849Net Movement for Year			
Transfer (to) Capital
12		

49,672(39,350)

26,121(13,868)

Contribution to Promotion and Administration activities			

10,322

12,253

Notes to the Financial Statements continued
For Year Ended 31 December 2021
24. 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 2021 two transactions required
disclosure being income received of €1.231m and the approval of a grant for €2m as they relate to companies in which a Board member was employed.
In cases of potential conflict of interest, Board members do not receive Board documentation or otherwise participate in or attend discussions regardingthese transactions. A register is maintained and available on request of all such instances.
Page

79

25. Contingent Liability
IDA entered into an agreement with a service provider with the objective of winning foreign direct investments, primarily in small and medium sizedenterprises, resulting in the creation of sustainable jobs. The contract with the service provider expired on the 26th March 2017. In accordance with thecontractual obligation in the agreement, IDA made a payment to the service provider in 2017. The payment, which was provided for in the 2016 Financial
Statements, was calculated by reference to potential future job creation. As the number of jobs which were subsequently created and verified is lessthan the number of jobs provided for in that payment, a partial refund of this payment has been sought. In addition, some payments made by IDA to theservice provider under the contract were based on jobs which were not subsequently sustained for the minimum period specified in the contract, and a
refund for these payments is also being sought from the service provider. The service provider disputes IDA’s claim and is seeking unquantified damages
from IDA for alleged breach of contract. The matter is now the subject of arbitration proceedings between the parties.
26. Approval of Financial Statements
The Financial Statements were approved by the Board on 12th May 2022

Page

80

GLOBAL OFFICE

1
12

10

11

2

6

7

9

4

3

8

20

14

5

18

15
16
17

19

13

GLOBAL OFFICESEUROPE:
1: IRELAND
2: FRANCE
3: GERMANY
4: UNITED KINGDOMNORTH AMERICA:
5: ATLANTA
6: BOSTON
7: CHICAGO
8: NEW YORK

9: NORTHERN CALIFORNIA
10: SOUTHERN CALIFORNIA
11: AUSTIN
12: TORONTO

ASIA PACIFIC:
13: AUSTRALIA
14: CHINA BEIJING
15: CHINA SHANGHAI
16: CHINA SHENZHEN

17: INDIA MUMBAI
18: JAPAN
19: SINGAPORE
20: KOREA