IDA Ireland
Annual Report & Accounts

CHAIRMAN AND CEO OVERVIEW | 01
STATISTICS | 04
CORPORATE GOVERNANCE | 07
FINANCIAL STATEMENTS | 13
ORGANISATIONAL STRUCTURE | 27
GLOBAL OFFICE NETWORK | 28

@IDAIRELAND
www.idaireland.com

Chairman & CEO Overview

01-Chairman & CEO Overview
Ireland’s Value Proposition
Continues to DeliverFrank Ryan
Chairman

Barry O'Leary
Chief Executive Oﬃcer

Ireland’s value proposition to global investors and corporates continues to resonate,
and proof of this can be seen in the strong FDI results in 2013.
These results were very much building on successful results achieved through the diﬃcult
years of the ﬁnancial crisis.
IDA Ireland client companies created 13,367 new jobs in 2013, with a net increase inemployment of 7,071, one of the highest levels of job creation in over a decade. Total
employment at IDA client companies now stands at 161,112 people, the highest level inthe history of IDA Ireland. There was a record total of 164 investments, up 14% on 2012.
Some 78 new companies invested in Ireland for the ﬁrst time in 2013, up 18% on 2012.
The value proposition that helped deliver these results is made up of talent, track record,
technology and corporate tax - the so-called 4 Ts. This proposition is constantly evolving
and has to meet the ever-changing expectations of investors. In some cases inward investors
and location consultants use 15 separate categories to score the propositions of individual
countries, but the four key pillars listed remain crucial in any investment decision.
During 2013 those four key advantages delivered for Ireland once again, with a dynamic
range of companies choosing to locate in Ireland, while companies already located here
focused on transforming and expanding their operations.
The strong job creation performance took place against a particularly challenging European
economic environment, but leaves IDA ﬁrmly on track to fulﬁl and exceed employment andinvestment targets set under its Horizon 2020 strategy (http://bit.ly/1c7eQLR). IDA’s job
creation performance also forms a key part of the Action Plan on Jobs, driven by the
Department of Jobs, Enterprise & Innovation.
While the employment generated during the year is of vital importance, the quality of theinvestments Ireland attracts also matters. In late 2013 the IBM 2013 Global Location Trends
report ranked Ireland ﬁrst in the world for inward investment by quality and value; ﬁrst in
Europe for the number of investment jobs per capita and second globally for the numberof investment jobs per capita.
Ireland’s unique value proposition to global companies was a key driver of these trends.
However one challenge is to maintain cost competitiveness across all the sectors where
Ireland has built a strong presence.

02-

There were notable investment highlights across a range of sectors in 2013. In the ICT sector
Ireland had strong wins from Qualcomm, Symantec, Hewlett Packard, McAfee, Huawei, Fireeye,
Microsoft, EMC, while in digital media there were investments from Twitter, Facebook, Yahoo,
Trip Advisor, Airbnb and Groupon.

IDA has also developed a buoyant emerging business division, and in 2013 there were
investments from Etsy, Zendesk, Quantcast, Squarespace and Qualtrix.
Life sciences investments were also buoyant during 2013 with Jazz Pharmaceuticals,
Regeneron, Alexion and Aspen among projects won for Ireland. IDA’s ﬁnancial services
won several projects for Ireland, among them Deutsche Bank, OmniPay and Zurich.

EuropeWhile US inward investment into Ireland remains hugely important, geographic diversity
is central to Ireland’s FDI objectives. In that context, it was welcome to see so many
European companies opting to locate investments in Ireland during 2013. Amongthese were Novartis, Zurich, Sanoﬁ and Deutsche Bank.
It was particularly gratifying to see European companies making these investments,
when one considers how ﬂat the European economy was in 2013.
However while pan-European consolidation by major companies is ongoing, Irelandsees opportunities in these trends and several companies have chosen Ireland as thelocation for their pan-European activities.

Regional Policy
IDA is ﬁrmly committed to a wide dispersal of FDI employment throughout Ireland’s
regions and during 2013 there were project wins including Nypro (Waterford), Sanoﬁ(Waterford) Cook Medical (Limerick), Overstock (Sligo), National Pen (Dundalk), Alexion(Athlone), Vistakon (Limerick), Regeneron (Limerick) and Ebay (Dundalk).
Meeting regional targets IDA set under Horizon 2020 has been challenging, but IDA
continues to promote all of Ireland’s regional locations in the international marketplace.
For example IDA now markets each region of Ireland individually online and works withlocal stakeholders to build a compelling proposition for each region. A partnershipapproach with local stakeholders is core to IDA’s regional work.

Chairman & CEO Overview
As the year closed IDA - with support from the Department of Jobs, Enterprise & Innovation was embarking on plans to build advanced manufacturing facilities in Waterford and Athlone
and oﬃce space in Letterkenny in order to enhance further the attractions of these regions.
At the end of 2013, 55 companies transferred from Shannon Development to IDA Ireland.
These companies employ 5,072 people and bring IDA’s baseline client employment number
to 166,184.

To achieve the results outlined in this annual report, IDA relies on a deep networkof stakeholders in the wider government system and across the public sector. We
would like to acknowledge in particular An Taoiseach, Enda Kenny TD; the Minister
for Jobs, Enterprise & Innovation, Richard Bruton TD; the Minister for Finance,
Michael Noonan TD amongst others, all of whom give their time generously to
IDA for overseas marketing trips.

Property

IDA also works closely with the Department of Foreign Aﬀairs and its embassy network,and our sister agencies Enterprise Ireland, Science Foundation Ireland, Solas and Forfas.
IDA also notes the valuable contribution of Ireland’s universities, Institutes of Technology
and NAMA, which works regularly with IDA’s property division.

Along with the four Ts mentioned earlier, property is also becoming a highly important part of
the Irish value proposition. Available property solutions can be the diﬀerence between winningand losing a project for Ireland. As a result all stakeholders, public and private, need to continue
working together to ensure there is suﬃcient suitable property available for inwards investors in
the years ahead.
While the available property is needed for companies themselves, the construction of property
for FDI purposes also generates signiﬁcant economic spin-oﬀs, particularly for a constructionindustry which has experienced some diﬃcult years. There was a strong take-up of property in2013 as signalled in 2012 IDA statements.

IDA Strategy
IDA works on multiple time cycles, converting short term business opportunities, but also
taking more strategic long term decisions that generate business over longer periods.
Our global marketing focus revolves around short, medium and long term targets. Somecompanies make a decision to locate in Ireland over several months, whereas in other cases
it can take as much as 20 years.
IDA’s global marketing teams help ﬁrms evolve and transform their operations. Often acompany that locates in Ireland in a particular year, can look radically diﬀerent a decade later.
IDA tries to aid this process by providing support for technology uplift, skills uplift, process
improvements, R&D and energy eﬃciency.
This aim of driving company transformation was a key focus of our Horizon 2020 strategy
and again in 2013 this work paid dividends for both Ireland and the companies involved.

Staﬀ and Stakeholders:

We would also like to acknowledge the service to IDA and the IDA Board from former
Chairman Liam O’Mahony, and also acknowledge the work of director Henry McGarvey
whose term on the Board ended during 2013.

Outlook:As outlined earlier, Ireland’s proposition continues to be attractive to global corporates.
However in order to build on the success of 2013 and previous years, that propositionneeds to be constantly refreshed. Contrary to some commentary, tax is only one driverof inward investment into Ireland.
Nevertheless Ireland’s corporate tax regime must remain competitive and it is likely thatas corporate tax reform eﬀorts gather pace, Ireland will be among the winners from thisprocess. This is because Ireland has a close alignment between economic substance(employees, capital investment etc) and tax, not present in some other jurisdictions.
As the year ended, economic trends continued to be challenging, particularly in Europe.
However, Ireland successfully exited the ‘troika’ lending programme during 2013 andthis was a signiﬁcant economic milestone, both in Europe and further aﬁeld.
The economic environment is still challenging, but IDA continues working to makea strong contribution to Ireland’s economic recovery. IDA will continue to seek out
new opportunities in 2014 across a range of sectors, and by concentrating on further
developing Ireland’s value proposition, FDI ﬂows into Ireland will continue to grow.

The IDA team was instrumental in achieving the results in 2013 and their work is strongly
acknowledged by the Chief Executive and Chairman. In particular we would like to pay tributeto the professionalism, commitment and dedication of staﬀ in winning FDI for Ireland.
Like other public sector organisations, IDA staﬀ have delivered for Ireland at a time whenresources have been under pressure and economic challenges ever present. Despite this,the staﬀ at IDA continue to be proud ambassadors for the country at home and abroad.

03-

Frank Ryan
Chairman

Barry O'Leary
Chief Executive OﬃcerStatistics

04-

Statistics
IDA Ireland Indicators

Origin of IDA Ireland Supported Companies 2013

Indicator
Total No. of Investments Approved
No. of Greenﬁeld Projects
No. of Expansion Projects
No. of Research, Development & Innovation Projects
Investment in Research, Development & Innovation Projects% of Investments Located Outside Dublin and Cork
% of Jobs Approved Outside Dublin and Cork
% Jobs Approved with Salaries in excess of €35,000
Average Salary in New Investments
Annual Corporate Tax Payments of IDA Client Companies
Total R&D inhouse Expenditure2013 Value
164
78
59
27
€467m
30%
35%
76%
€45,770€2.8bn*€1.3bn*OriginUnited States
Germany
United Kingdom
FranceRest of Europe
Rest of World

No. of Companies
577
99
99
48
123
152

Total Employment*
118,367
10,496
6,259
5,177
8,561
12,252

1,098

161,112

Total

Source: Forfás Annual Employment Survey 2013
Note: *Includes full-time, part-time and temporary employees.

Note: *Corporation Tax and R&D expenditure data refers to 2012

Total Employment by Region in IDA Ireland Supported Companies

Economic Impact of IDA Ireland Supported Companies
All Sectors

Sales
Exports
Direct Expenditurein the Irish Economy
Of which:
Payroll costs
Irish Materials
Irish Services
Direct Expenditure
As % of Sales

2009

2010

2011

2012

% change
2011-2012

104,633
100,923

108,843
104,897

119,280
115,231125,026
120,834

4.8%
4.9%

17,803

17,783

19,74820,818

5.4%

7,442
1,602
8,760

7,398
1,638
8,747

7,780
1,912
10,056

8,072
2,364
10,381

3.8%
23.6%
3.2%

17%

16.3%

16.6%

16.7%

Source: Based on the Annual Business Survey of Economic Impact, co-ordinated by
Forfás and administered by Insight Statistical Consulting.
Note 1: The survey is based on manufacturing and internationally traded services
companies with 10 or more employees (excluding regulated ﬁnancial services companies).
Note 2: Results are based on companies responding to the survey in 2013 (grossed-up to reﬂect
non-respondents). Results can vary from previous estimates due to revisions made by companies
and diﬀerences in the base of respondents from one survey period to the next.

05-

Area / Region

2009

2010

2011

2012

2013 % change
2012/2013

BorderNorth-WestNorth-East

5,261
3,098

5,113
2,899

5,318
2,977

5,199
3,271

5,159
3,799

-0.7%
+16.14%

West & Mid-WestWest
13,435
Mid-West
8,221

13,877
7,974

15,7308,160

16,447
8,690

17,343
8,936

+5.4%
+2.8%

Midlands & East
Midlands
East

4,804
67,183

4,499
68,183

4,564
71,723

4,829
75,804

4,812
80,152

-0.3%
+5.7%

South
South-WestSouth-East

24,04413,08725,461
12,94526,435
11,932

27,818
11,98328,992
11,919

+4.2%
-0.5%

IDA Ireland

139,133

140,951

146,839

154,041

161,112+4.6%

Source: Forfás Annual Employment Survey 2013
Note: Includes part-time, temporary and short-term contract employees.

Employment in IDA Supported Companies 2013201313,367

Job Gains

2000- 2001- 2002- 2003- 2004- 2005- 2006- 20072006 2007 2008 2009 2010 2011 2012 2013
IDA
IRELAND(€)

Source: IDA Ireland 2013

Employment in IDA Ireland Supported Companies
2012
154,041
137,348
16,6937,202
4.9%

Total employment
Full TimeOther
Net change in total employment% Net change in total employment

2013
161,112142,283
18,8297,071
4.6%

Source: Forfás Annual Employment Survey 2013
Note: Other employment includes part-time, temporary and short-term contract employees.

Total Employment by Sector in IDA Ireland Supported Companies
Sector
2012
2011
2010
2009
Pharmaceuticals
Computer, Electronic& Optical Equipment
Medical/Dental
Instruments & Supplies
Metals & Engineering
Miscellaneous Industry
International & Financial
Services (incl. Software)

22,131

22,03522,02822,072

2013 % Change
2012/2013+2.9%
22,72214,80915,272

15,515

15,83016,805+6.2%

22,83910,721
5,534

22,45910,468
5,160

23,618
10,416
5,069

24,477
10,867
5,070

24,673
11,145
4,824

+0.8%
+2.5%
-4.8%

63,09965,557

70,19375,72580,943

+6.9%

Total

139,133

140,951

146,839

154,041 161,112+4.6%

Source: Forfás Annual Employment Survey 2013
Note: Includes part-time, temporary and short-term contract employees.

06-

IDA Ireland Cost per Job Sustained Constant 2013 Prices

13,531 13,527 13,103 14,450 14,581 14,516 13,541 12,608

Source: Forfás Annual Employment Survey 2013
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.

Corporate Governance07-

Board 2013
The Board operates to best practice corporate governance principles and in line with theguidelines set out in the 'Code of Practice for the Governance of State Bodies' as issued by
the Department of Finance, 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 these functions directly and through the operation of focused
Board Committees. Responsibility for the implementation of policy rests with executive
management.
The Board has statutory authority to approve grant aid up to the levels set out in the Industrial
Development Acts and to recommend grant aid above these speciﬁed levels to Government.
In accordance with the Ethics in Public Oﬃce Acts, 1995 and 2001, IDA Ireland Board Members
furnish a Statement of Interests to the Secretary and to the Standards in Public Oﬃce
Commission. In accordance with the 'Code of Practice for the Governance of State Bodies',
IDA Ireland fully complies with Government policy on the pay of Chief Executives and State
Body employees and with Government guidelines on the payment of fees to Board Members.

BARRY O'LEARY
Chief Executive Oﬃcer, IDA Ireland
Board Member, Forfás

ALAN GRAY
Chairman, London Economics
Managing Partner, Indecon International Economic Consultants
Director, Tedcastle Oil Products
Director, Hillington Investments

LIONEL ALEXANDER
Vice President and Managing Director
Hewlett-Packard (Manufacturing) Ltd.
MARY CAMPBELLManaging Director, Deutsche Bank AG
Board Member, DB Services Centre Ltd

DERMOT CURRAN
Assistant Secretary, Innovation and Investment Division, Department of Jobs,
Enterprise and Innovation

PAUL DUFFY
Vice President, Pﬁzer Global Supply (External Supply)
Board Member, Cork Chamber of Commerce
Director, Various Pﬁzer Companies

PETER CASSELLS
Executive Director, Edward M Kennedy Institute, NUI Maynooth, Co. Kildare
Director, DHR Communications
Chairman, Alcohol Advertising Group, Department of Health*ATTENDANCE BY BOARD MEMBERS AT BOARD MEETINGS IN 2013 (12 MEETINGS IN 2013)08-

HEATHER ANN MCSHARRY
Director, Institute of Directors
Chairman, Trustee Board for the Bank of Ireland Pension Fund
Director, Ergonomic Solutions Ltd
Director, CRH
Director, Jazz Pharmaceuticals
Director, Greencore PLC

GERARD O'MAHONEY
Senior Partner, PWC
Director, People in Need,
Director, Sorceim

LIAM O'MAHONYChairman, IDA Ireland
Chairman, Smurﬁt Kappa plc
Director PM Group

Board Members
Liam O'Mahony, Chairman
Lionel AlexanderPeter Cassells
Dermot CurranPaul Duﬀy
Mary Campbell

HENRY MCGARVEY
Vice President and Managing Director, Pramerica Systems Ireland Ltd.
Director Donegal Internet Group
Director Head Department of Computing and Creative PracticeSligo Institure of Technology

Attendance
11 meetings
8 meetings
11 meetings
10 meetings
10 meetings
11 meetings* 10 scheduled Board meetings & 2 special meetings

Board Members
Henry McGarvey
Heather Ann McSharry
Barry O'Leary
Gerard O'Mahoney
Alan Gray

Attendance
12 meetings
12 meetings
12 meetings
12 meetings
11 meetings

DEIRDRE LYONS
Secretary, IDA Ireland
Liam O’Mahony retired as Chairman on 31 of December 2013.
Frank Ryan was appointed Chairman on 1 of January 2014.
Henry McGarvey retired as a Director on 31 December 2013.

Committees of the Board 2013
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 internal ﬁnancial control. It also oversees theimplementation of the organisation's risk policy including the development of its risk registerand monitors budgeting and banking arrangements.
MEMBERS:
Heather Ann McSharry (Chair)
Paul Duﬀy
Gerard O’MahoneyDermot CurranPeter Cassells

MANAGEMENT DEVELOPMENT AND REMUNERATION COMMITTEE
Reviews the performance of the senior management team and planning for management
development and succession. The Committee also reviews remuneration of senior
management in the context of Government guidelines.
MEMBERS:
Liam O’Mahony (Chair)
Lionel Alexander
Barry O’LearyPeter Cassells
Heather Ann McSharry
Gerard O’Mahoney

INVESTMENT COMMITTEE
Reviews proposals for grant assistance and, under powers delegated by the Board,
approves grants up to a maximum of €1.5 million. The Committee did not meet in2013 as its remit was covered by the Board.
MEMBERS:
Dermot Curran (Chair)
Paul Duﬀy
Barry O’Leary
Alan GrayPeter Cassells

PROPERTY COMMITTEE
Reviews policy with regard to the ﬁnancing, provision, maintenance and disposal ofproperty, approves procedures with regard to tendering and awarding of contracts
and approves expenditure/sales of up to €5 million.
MEMBERS:Henry McGarvey (Chair)
Lionel Alexander
Barry O’Leary
Mary Campbell
Alan GrayPeter Cassells

NIBRT COMMITTEE
Reviews progress on the National Institute for Bioprocessing Research and Training(NIBRT) investment project to ensure that it is delivering in accordance with theobjectives and conditions approved by the IDA Board.
MEMBERS:Gerard O’Mahoney (Chair)
Paul Duﬀy
Henry McGarvey
Heather Ann McSharry
Mary Campbell

09-

Corporate Governance
IDA Ireland is an autonomous Statutory Agency set up under the Industrial Development Acts
1986 - 2009. The Agency operates in accordance with the provisions of the Acts and under
the aegis of the Minister for Jobs, Enterprise and Innovation, who is empowered to provide
funds to discharge its obligations and issue general policy directives/seek information on the
Agency’s activities.
While the primary source of corporate governance for IDA Ireland is the Industrial Development Acts, the Agency is also required to comply with a range of other statutory (National
and EU) and administrative requirements. IDA Ireland aﬃrms that it met its obligations inregard to all of these requirements. In particular, it has the following procedures in place toensure compliance with speciﬁc requirements:
1 GENERAL ADMINISTRATIVE AND POLICY REQUIREMENTS
At national level, IDA Ireland works closely with oﬃcials of the Department of Jobs, Enterpriseand Innovation and oﬃcials of other Government Departments and State Agencies inadvancing its Objectives and ensuring compliance with statutory, administrative andMinisterial/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 is continuing to implement a policy directive issued
by the Minister for Jobs, Enterprise and Innovation on 18 December 2006 and which reads
as follows:
In December 2005, the European Commission adopted the new Regional Aid Guidelines forthe period 2007- 2013*. A Block Exemption Regulation for regional aid, enabling regional aid
schemes to be operated without prior approval of the European Commission, has also been
adopted. In order to comply with requirements arising from the new Guidelines and the Block
Exemption Regulation, new Administrative Rules relating to Industrial Development regional
aid schemes for the period 2007 to 2013 have also been drawn up.
IDA also provides research and development grants in accordance with the Community
Framework for State aid for Research and Development and Innovation 2006.

10-* Extended to 30 June 2014 by the EU.

2 CODE OF PRACTICE FOR THE GOVERNANCE OF STATE BODIESIDA Ireland fully complies with this Code of Practice and in particular aﬃrms its
compliance with the following Sections:
Sections 7 & 13: Complied with by the Chairman of the Board in a separate letter
furnished to the Minister for Jobs, Enterprise and Innovation.
Sections 13.1 & 13.1 (iii): An eﬀective system of internal ﬁnancial control ismaintained and operated by the Agency (Statement of Internal Financial Control,
page 15).
Section 13.1 (v): Government policy on the pay of Chief Executives and State Body
employees is being complied with (Notes to the Financial Statements, No. 10 Page 21
and Board 2013, page 8).
Sections 2.12, 2.14 & 2.15: The Board of IDA has adopted the Horizon 2020 strategy.
In addition, the Board has established processes to ensure sound corporate planning,etc., as required by this Section (Statement of Internal Financial Control page 15 andBoard 2013, page 8).
Section 13.1 (x): The IDA travel procedures reﬂect the Government's travel policy
requirements and are being complied with.
Section 19.2: The Chairman of the Board, in the separate letter furnished to the
Minister for Jobs, Enterprise and Innovation, conﬁrms that the IDA has compliedwith its obligations under tax law.
The schemes and programmes administered by the IDA are in accordance with thelegislation 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 TAXTREATMENT OF REMUNERATION OF MEMBERS OF STATE AND STATE SPONSORED
COMMITTEES AND BOARDSIDA Ireland fully complies with this Statement of Practice.

Corporate Governance
4 GUIDELINES FOR THE APPRAISAL AND MANAGEMENT OF CAPITAL
EXPENDITURE PROPOSALSIDA Ireland has well-established robust procedures in place for the Appraisal andManagement of Capital Expenditure projects arising under the Capital Grants or Property
programmes. These procedures comply with the principles set out in the Guidelines for
the Appraisal and Management of Capital Expenditure Proposals.
5 EMPLOYMENT EQUALITY ACTS, 1998 AND 2004
Equality is an established priority for IDA. The organisation has a progressive equality anddiversity agenda and new initiatives are developed on an ongoing basis. IDA Ireland values
diversity and strives to be an equality employer where individual contribution is encouraged
and diﬀerences are valued. To this end, it is committed to ensuring that no staﬀ member of
IDA, or applicant for employment with IDA, receives less favourable treatment than any otheron grounds of gender, marital status, family status, sexual orientation, religion, age, disability,
race, membership of the traveller community or on any other grounds not relevant to good
employment practice. This applies to recruitment, working conditions 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
This Act, which replaces the provisions of the Safety, Health and Welfare Act, 1988,
consolidates and updates the existing law. IDA Ireland continues to take appropriate
measures to protect the safety, health and welfare of all employees and visitors within its
oﬃces to meet the provisions of this Act. This extends to the Public Health (Tobacco) Acts
2002 and 2004.
7 WORKER PARTICIPATION (STATE ENTERPRISE) ACT, 1988
Consultative structures are operating eﬀectively in IDA Ireland and are a recognised featureof the organisation's communications and consultative structure. The Joint Consultative
Committee is welcomed as a positive process by both management and staﬀ. Additionally,a further partnership arrangement has been established with the Trade Unions to progressactions under the Haddington Road National Agreement.

11-

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 theprovisions of the Acts.
9 FREEDOM OF INFORMATION ACTS, 1997 AND 2003
IDA Ireland complies with these Acts. Requests for information under these Acts
should be addressed to the Freedom of Information Executive, IDA Ireland,
Wilton Park House, Wilton Place, Dublin 2.
10 ENERGY EFFICIENCYIn compliance with the Government memorandum of June 2001, IDA Ireland, inthe 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.
11 (I) PROMPT PAYMENT OF ACCOUNTSThe Prompt Payment of Accounts Act 1997 (the Act), which came into operation
on 2 January 1998, was amended by the European Communities (Late Payment
in Commercial Transactions) Regulations 2002.
Management is satisﬁed that IDA complied with the provisions of the Act in allmaterial respects.
11 (II) PROMPT PAYMENT TO SUPPLIERIDA Ireland is committed to meeting its obligations under the 15 day Prompt
Payment Rule, which came into eﬀect on 1 July 2011.
The provision ensures that payments to suppliers in respect of all valid invoices
received will be made within 15 calendar days.
IDA Ireland reports quarterly in the “Corporate Governance” section of the website
on the implementation of the 15 day Prompt Payments rule.

Comptroller and Auditor General
Report for presentation to the House of the Oireachtas
INDUSTRIAL DEVELOPMENT AGENCY (IRELAND)
I have audited the ﬁnancial statements of the Industrial Development Agency (Ireland) for
the year ended 31 December 2013 under the Industrial Development Act 1993. The
ﬁnancial statements, which have been prepared under the accounting policies set out
therein, comprise the accounting policies, the operating account, the balance sheet, thecash ﬂow statement and the related notes. The ﬁnancial statements have been prepared in
the form prescribed under paragaph 7 of the ﬁrst schedule of the Act, and in accordance withgenerally accepted accounting practice in Ireland.

OPINION ON THE FINANCIAL STATEMENTS
In my opinion, the ﬁnancial statements, which have been properly prepared inaccordance with generally accepted accounting practice in Ireland, give a true andfair view of the state of the Agency's aﬀairs at 31 December 2013 and of its income
and expenditure for 2013.

RESPONSIBILITIES OF THE BOARD OF THE AGENCY
The Agency is responsible for the preparation of the ﬁnancial statements, for ensuring thatthey give a true and fair view of the state of the Agency's aﬀairs and of its income andexpenditure, and for ensuring the regularity of transactions.

MATTERS ON WHICH I REPORT BY EXCEPTION
I report by exception if:
I have not received all the information and explanations I required for my audit, or

In my opinion, proper books of account have been kept by the Agency. The ﬁnancial
statements are in agreement with the books of account.

RESPONSIBILITIES OF THE COMPTROLLER AND AUDITOR GENERALMy responsibility is to audit the ﬁnancial statements and report on them in accordance withapplicable law.
My audit is conducted by reference to the special considerations which attach to State Bodies
in relation to their management and operation.

-

My audit is carried out in accordance with the International Standards on Auditing (UK and
Ireland) and in compliance with the Auditing Practices Board’s Ethical Standards for Auditors.

-

SCOPE OF AUDIT OF THE FINANCIAL STATEMENTS
An audit involves obtaining evidence about the amounts and disclosures in the ﬁnancial
statements, suﬃcient to give reasonable assurance that the ﬁnancial statements are free frommaterial misstatement, whether caused by fraud or error. This includes an assessment of

NON-EFFECTIVE EXPENDITURE
I draw attention to Note 10 (e) to the ﬁnancial statements which discloses that the
Agency incurred non-eﬀective expenditure of €1.3 million on rent and associatedcosts as a result of unoccupied oﬃce space in two buildings assigned to it from Forfás
during 2013.

-

whether the accounting policies are appropriate to the Agency's circumstances,and have been consistently applied and adequately disclosed
the reasonableness of signiﬁcant accounting estimates made in the preparationof the ﬁnancial statements, andthe overall presentation of the ﬁnancial statements.

I also seek to obtain evidence about the regularity of ﬁnancial transactions in the courseof audit. In addition, I read the Agency’s annual report to identify material inconsistencies
with the audited ﬁnancial statements. If I become aware of any apparent material
misstatements or inconsistencies, I consider the implications for my report.

12
-

-

my audit noted any material instance where money has not been applied
for the purposes intended or where the transactions did not conform to
the authorities governing them, or
the information given in the Agency's annual report is not consistent withthe related ﬁnancial statements, orthe statement on internal ﬁnancial control does not reﬂect the Agency's
compliance with the Code of Practice for the Governance of State Bodies,or
I ﬁnd there are other material matters relating to the manner in which
public business has been conducted.

Seamus McCarthy
Comptroller and Auditor General
24 June 2014

Financial Statements

13-

Statement of Board Members’ Responsibilities
The Industrial Development Agency Ireland (IDA) was established on 1 January 1994 as anagency of Forfás (the policy and advisory board for industrial development in Ireland) under
the provisions of the Industrial Development Act, 1993.
Paragraph 7(2) of the First Schedule to the Industrial Development Act, 1993 requires the
Agency to keep, in such form as may be approved of by the Minister for Jobs, Enterprise andInnovation with the consent of the Minister for Public Expenditure and Reform, all proper andusual accounts of money received and expended by it. In preparing those accounts, the Board
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 a going concern basis unless it isinappropriate to presume that the Agency will continue in operation-

disclose and explain any material departures from applicable accounting standards.

The Board is responsible for keeping proper books of account which disclose with reasonableaccuracy at any time the ﬁnancial position of the Agency and which enables it to ensure that
the Financial Statements comply with Paragraph 7(2) of the First Schedule to the Industrial
Development Act, 1993. The Board is also responsible for safeguarding all the assets of the
Agency and hence for taking reasonable steps for the prevention and detection of fraud andother irregularities.

On behalf of the Board:Frank Ryan
Chairman

14-

Barry O'Leary
Chief Executive Oﬃcer

Heather Ann McSharry
Chairman
Audit Finance & Risk Committee

Statement on Internal Financial Control
On behalf of the Board of IDA I acknowledge our responsibility for ensuring that aneﬀective system of internal ﬁnancial control is maintained and operated by the Agency.
The system can 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 period.
The Board has taken steps to ensure an appropriate control environment is in place by:- establishing formal procedures through various committee functions to monitor
the activities and safeguard the assets of the organisation;- clearly deﬁning and documenting management responsibilities and powers;- developing a strong culture of accountability across all levels of the organisation.
The Board has also established processes to identify and evaluate business risks. This isachieved in a number of ways including:- working closely with Government and various agencies and institutions to ensurethat there is a clear understanding of IDA’s goals and support for the Agency’s
strategies to achieve those goals;- carrying out regular reviews of strategic plans both short and long term andevaluating the risks to bringing those plans to fruition;- setting annual and longer term targets for each area of our business followedby regular reporting on the results achieved;- carrying out regular reviews of developments and strategies in our businesssectors;- establishing and enforcing extensive standard procedures and provisions underwhich ﬁnancial assistance may be made available to projects, including provisions
requiring repayment if the project does not fulﬁl commitments made by thepromoter.
The system of internal ﬁnancial control is based on a framework of regular management
information, administrative procedures including segregation of duties, and a system ofdelegation and accountability. In particular it includes:-

15-

a comprehensive budgeting system with an annual budget which is reviewed
and agreed by the Board;
regular reviews by the Board of periodic and annual ﬁnancial reports whichindicate ﬁnancial performance against forecasts;
setting targets to measure ﬁnancial and other performances;
clearly deﬁned capital investment control guidelines;
formal project management disciplines.

IDA has an outsourced internal audit function, which reports directly to the Audit,
Finance & Risk Committee of the Board. This committee meets on at least a quarterly
basis to review reports prepared by Internal Audit and other departments. The Audit,
Finance & Risk Committee in turn keeps the Board informed of the matters that it has
considered.
The internal audit function operates in accordance with the Framework Code of Best
Practice set out in the Code of Practice for the Governance of State Bodies. A rolling
three-year Internal Audit work plan is determined by the Audit, Finance & Risk
Committee and revised annually where required. The current work plan takes accountof areas of potential risk identiﬁed in a risk assessment exercise carried out bymanagement and reviewed by the Audit, Finance & Risk Committee and the Board.
The Internal Auditor provides the Committee with quarterly reports on assignments
carried out. These reports highlight deﬁciencies or weaknesses, if any, in the system
of internal ﬁnancial control and the recommended corrective measures to be taken
where necessary.
The Board’s monitoring and review of the eﬀectiveness of the system of internalﬁnancial control is informed by the work of the Internal Auditor, the Audit, Finance& Risk Committee (which oversees the work of the Internal Auditor) and the executive
managers within IDA Ireland who have responsibility for the development andmaintenance of the ﬁnancial control framework.
I conﬁrm that, in respect of the year ended 31 December 2013, the Board conducteda review of the system of internal ﬁnancial control.

Signed on behalf of the Board

Frank Ryan
Chairman
4 June 2014

Accounting Policies
1 Basis of Accounting(a) Financial Statements(i) The Financial Statements have been prepared in accordance with the historicalcost convention in the form approved by the Minister for Jobs, Enterprise andInnovation with the consent of the Minister for Public Expenditure and Reform andare denominated in euro.
(ii) The Financial Statements are prepared on an accrual basis, except where stated in
the Accounting Policies.
(iii) The Financial year is 1 January to 31 December.
(iv) Financial Reporting Standards recommended by the recognised accountancy
bodies are adopted as they become applicable.

(e) Accounts Payable comprise amounts payable in respect of:(i) Creditors.
(ii) Grants that have matured for payment.
(iii) Deposits for uncompleted sales(b) 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 wheretitle had not passed at the year end.
(v) Other Fixed Assets including computer and oﬃce equipment and ﬁxturesand ﬁttings.

(g) By way of memorandum Income and Expenditure in respect of Industrial
Property transactions are set out in note 23 to the Financial Statements.

(c) Telecommunication Assets comprise:
Telecommunication Assets constitute an indefeasible right of use of a designatedportion of a global telecommunications network for a period of 25 years from 2000.
(d) Accounts Receivable comprise amounts due in respect of:(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 DiscountReference 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 thepurchase of property where title had not passed to the Agency at 31 December, andthe 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.

16-(f) Provisions for liabilities and charges comprise:(i) Amounts provided in respect of potential costs associated with thedilapidations 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.

2 Income Recognition
Income from Oireachtas grants, grant refunds, the National Training Fund, theEuropean Social Fund and the European Regional Development Fund save as
referred to in (5) below, represent actual cash received.
3 Industrial Property
Industrial Property included in tangible ﬁxed assets has been acquired, developed orconstructed for the purposes of assisting in the promotion and development ofindustry and is not considered to be investment property but normal ﬁxed assets.
4 Carrying Amounts, Depreciation and Provisions for Impairment(a) The carrying amounts for tangible ﬁxed assets, other than land, and fortelecommunication assets comprise:
Historic cost less accumulated depreciation and less a provision for impairmentof the assets, where applicable, to endeavour to ensure that the value of theassets carried in the Financial Statements do not exceed their estimatedrecoverable amounts.
(b) The carrying amounts for Land and Investments comprise:
Historic cost less a provision for impairment of the assets, where applicable,
to endeavour to ensure that the value of the assets carried in the Financial
Statements do not exceed their estimated recoverable amounts.

Accounting Policies (Continued)(c) Depreciation is calculated in order to write oﬀ the cost of assets less, whereapplicable, any impairment provision over their estimated remaining useful
lives. No provision for depreciation is made in respect of land or investments.
(d) Provisions for impairment may be made following reviews of ﬁxed assets andtelecommunication assets carried out by oﬃcers of IDA or independent valuers, as
appropriate, if events or changes in circumstances or economic conditions indicatethat the carrying amount of the assets may not be fully recoverable. Any suchprovisions will be recognised in the Operating Account in the year in which they
are made.
Where a subsequent review indicates that the circumstances which gave rise to a
provision for impairment no longer exist or have changed materially the accumulated
provision for impairment will be reduced accordingly.
(e) The cost of land, site development and industrial property includes anapportionment of administration costs associated with the acquisition ordevelopment of the assets.
5 Deferred Income
European Regional Development Fund grants received in respect of the purchase ordevelopment of ﬁxed assets are treated as a deferred credit and are amortised to theoperating account annually over the useful economic life of the assets to which
they relate.
6 Accounting for Bad and Doubtful Debts
Known bad debts are written oﬀ and speciﬁc provision is made for any amount thecollection of which is considered doubtful.
7 Grants Payable
Grants are accrued in the Financial Statements when the grantee complies withstipulated conditions.

8 Foreign Currencies
Assets and liabilities denominated in foreign currencies are translated at theexchange rates ruling at the Balance Sheet date. Revenues and costs are translated
at the exchange rates ruling at the dates of the underlying transactions.
Proﬁts and losses arising from foreign currency translations and on settlement ofamounts receivable and payable in foreign currency are dealt with in the Operating
Account.
9 Operating Leases
The rentals under operating leases are dealt with in the Financial Statements asthey fall due. In the case of industrial property available for promotion a provision is
made, where applicable, for future rental payments by the Agency.
10 Capital
Capital represents funds utilised for the acquisition and development of industrial
property, the acquisition of other ﬁxed assets and telecommunication assets taking
account of disposals, depreciation charges and, where applicable, provisions for
impairment in the carrying amounts.
11 Superannuation
All IDA staﬀ are employees of Forfás and are seconded to the Agency by Forfás.
Legislation requires Forfás to prepare and administer pension schemes for the
granting of pension entitlements to its staﬀ including staﬀ seconded to IDA.
Forfás is also responsible for pension reporting requirements, including those set
out under FRS 17. Voluntary early retirement costs paid directly by IDA and all
pension contributions deducted from staﬀ are accounted for in the Operating
Account in the period in which they arise.
On 19 December 2013 The Industrial Development (Forfás) Dissolution Bill was
published and is expected to be enacted in Quarter 3 of 2014. The Bill makes
provision for the dissolution of Forfás and for (i) the establishment of IDA Ireland
as a separate legal employer (ii) IDA to establish a superannuation scheme (iii) IDA's
own staﬀ becoming members of the scheme and (iv) IDA accounting for the
associated Pension Liabilites under FRS 17. The Department of Jobs, Enterpriseand Innovation will have legal responsibility for the existing Pension Schemes,
pensioners and former staﬀ with preserved beneﬁts.
12 Contributions to the Exchequer
Contributions to the Exchequer are accounted for on the basis of payments
made in the year.

17-Operating Account

For Year Ended 31 December 2013

IncomeOireachtas Grants
National Training Fund
EU - INTERREG 111A Programme
EU & Exchequer Co-Funded Research Technology
and Innovation (RTI) for Industry Programme
Grant Refunds
Rental Income
Less Rental Income received from Enterprise Ireland Clients
Other Income
Proﬁt on Disposal of Assets

Expenditure
Grants Payable
Promotion, Administration and General Expenses
Industrial Building Charges
Depreciation & Impairment Charges

Net Operating (Deﬁcit) for Year
Contribution to the Exchequer
Balance at 1 January
Transfer from Capital
Balance at end of Year

Notes

2013
€'000

2012
€'000

1
2
3

126,360
3,000
38

131,822
3,000
461

4
6

2,444
1,674
(14)
2,516
4,441

983
3,132
2,079
1,129
3,492

140,459

146,09878

9
10 (a)
11
12

13
14

87,95140,7834,670
13,802

89,27538,50013,16325,484

147,206

166,422(6,747)(12,456)
15,985(20,324)(223)(19,020)
27,111(3,218)(12,456)

Amounts shown under Income and Expenditure are in respect of continuing activities.
There are no recognised gains or losses, other than those dealt with in the Operating Account.
The Basis of Accounting, Accounting Policies, Cash Flow Statement and Notes
1 to 27 form part of these Financial Statements.

Frank Ryan
Chairman

As at 31 December 2013
Notes

2013
€'000

2012
€'000

Tangible Fixed Assets
Industrial Property
Other Fixed Assets

15
16

99,928531
100,459

116,117327
116,444

Intangible Assets
Telecommunication Assets

17

-

-

100,459

116,44418

10,672
21,52432,196

9,747
17,27127,01819(5,659)(3,057)

26,53723,961

Total Tangible and Intangible Assets
Current Assets
Accounts Receivable
Cash at Bank and on handCurrent Liabilities
Accounts Payable
Net Current Assets
Long Term Receivables
Accounts Receivable: amounts falling due
after more than one year

18

164

150

Long Term Payables
Accounts Payable: amount falling due
after more than one year19-

(2,905)

Provisions
Provisions for Liabilities and Charges

20(29,919)(33,624)Deferred Income
EU INTERREG 111A Programme

3

-

(38)

97,241103,988

100,459(3,218)116,444(12,456)

97,241103,988

Net Assets
Representing:
CapitalOperating Account14

On behalf of the Board:

On behalf of the Board:

18-

Balance Sheet

Barry O'Leary
Chief Executive Oﬃcer

Heather Ann McSharry
Chairman
Audit Finance & Risk CommitteeFrank Ryan
Chairman

Barry O'Leary
Chief Executive Oﬃcer

Heather Ann McSharry
Chairman
Audit Finance & Risk CommitteeCash Flow Statement

For Year Ended 31 December 2013
Notes

2013
€'000

2012
€'000

(6,747)(20,324)

13,503
299
(38)
(17)
(4,441)(224)

25,012
472
(461)
(24)
(3,492)
(403)

(925)

153

2,602
(3,705)

2,653
(199)

(14)

230

(2,905)(19,861)(2,612)(16,244)

Reconciliation of Net Operating Deﬁcit to net cash
inﬂow from operating activities
Net Operating (Deﬁcit) for Year
Depreciation & Impairment Charges:- Industrial Property- Other Fixed Assets & Telecommunication Assets
EU - INTERREG 111A Programme Grant Amortised
Expenditure Capitalised
Proﬁt on Disposal of Assets
Bank Interest(Increase) / Decrease in Accounts Receivable amounts
falling due within one year
(Decrease) / Increase in Accounts Payableamounts falling due within one year
(Decrease) in Provisions and Charges(Increase) / Decrease in Accounts Receivableamounts falling due after more than one year
Increase / (Decrease) in Accounts Payable amounts fallingdue after more than one year12123
10 (a)
8
7

Net Cash (Outﬂow) from Operating Activities

19-

Cash Flow Statement
Net Cash (Outﬂow) from Operating Activities
Contribution to the Exchequer
Returns on Investment and Servicing of Finance13
24 (a)(2,612)
224(16,244)(223)
403

Capital expenditure and ﬁnancial investment
Acquisitions
Disposals

24 (b)
24 (c)(1,784)
8,425(1,403)
6,546Management of Liquid Resources(Payment into) / Withdrawal of short term deposits

24 (d)(5,500)15,000(Decrease) / Increase in cash for the period(1,247)

4,079

Reconciliation of net cash ﬂow to movement in net funds(Decrease) / Increase in cash for the period
Increase / (Decrease) in liquid resources
24 (d)
Movement in net funds in the period
Net funds at 1 January
24 (d)Net funds at 31 December(1,247)
5,500
4,253
17,271
21,524

4,079(15,000)(10,921)
28,192
17,271

Notes to the Financial Statements

For Year Ended 31 December 2013

1 Oireachtas Grants
The Oireachtas Grants are provided under section 35 of the Industrial Development (Science
Foundation Ireland) Act 2003. The aggregate amount provided to IDA in respect of Grants for
Industry and Grants for Industrial Property in the period 1 January 1994 to 31 December 2013was €2.19bn.
The Oireachtas Grants as shown in the Financial Statements consist of:Grant for Promotion and Administration Expenditure
Grant for Industry
Grant for Industrial Property

Subhead A5 (i)Subhead A5 (ii)Subhead A5 (iii)

2013
€'000
40,36082,000
4,000

2012
€'000
35,82285,00011,000126,360

131,822

5 ForFás and Shannon Development Integration(a) Forfás
On 16 April 2013, the Government formally noted the intention of the Minister for Jobs,
Enterprise and Innovation to integrate the research and policy advisory functions of Forfás
into the Department of Jobs, Enterprise and Innovation. The Industrial Development (Forfás
Dissolution) Bill which makes provision for the dissolution of Forfás and the transfer of its
functions to the Minister for Jobs, Enterprise and Innovation, Enterprise Ireland, IDA Irelandand the Health and Safety Authority was published on 19 December 2013. During the year
Forfás assigned the leases of Wilton Park House, Knockmaun House and Carrisbrook House
to IDA, and subsequently 12 staﬀ also transferred to manage the operations of thebuildings. Additional A5 (i) Oireachtas Grant was made available in the year and comprisedamounts for annual rent and maintenance of Knockmaun House and Carrisbrook House,
additional annual staﬀ costs and once oﬀ items including the prepayment of rent at Wilton
Park House.

Additional Grant for Promotion and Administration Expenditure was made available and drawn
down during the year following the transfer of functions from Forfás (see note 5), €2.5m in respectof recurring costs and a €1.806m allocation transferred from the Forfás Oireachtas grant
allocation.

(b) Shannon Development
On 27 November 2013 the remit of IDA was extended to include the Foreign Direct
Investment client portfolio of Shannon Development, with the subsequent transfer of 4
staﬀ. Two grants with an aggregate value of €401,000 were processed after this date, andon the recommendation of IDA, paid by Shannon Development.

2 National Training Fund
Included in the training grant payments of €3.033m (see note 9) are training grant payments of€3m (€3m in 2012) which were met with funds received through the Department of Jobs,
Enterprise and Innovation from the National Training Fund, which is administered through the
Department of Education & Skills Subhead B3.

6 Grant Refunds
When the conditions of a grant agreement are breached by a client company, the grant isrecoverable. During the year the Agency received €2.444m (€3.132m in 2012) relating to
grant refunds.

3 European Union INTERREG 111A Programme
The purpose of the programme is to support cross border co-operation, social cohesion andeconomic development between regions of the EU. Under the programme IDA and theDepartment of Enterprise Trade and Investment (DETI) in Northern Ireland were awarded a grantof €10m, of which €4m was allocated to IDA and €6m to DETI. The grant was awarded for the
purpose of assisting in the development of business parks to international standards in
Letterkenny and Derry which are jointly promoted for inward investment.
In 2005 IDA received the grant allocation of €4m. In accordance with the Agency’s accounting
policies the ﬁnal €0.038m (€0.461m in 2012) of this amount was transferred from deferredincome to the Operating account in 2013.
4 EU & Exchequer Co-Funded Research Technology and Innovations (RTI)
for Industry ProgrammeThis measure is designed to improve the level and quality of research and development
undertaken by companies in Ireland by co-funding projects to be carried out by them. The fundis administered by Enterprise Ireland and payments made out of this fund are shown in note 9.

7 Other Income
2013
€'000
1,104
688
224
391
99
10
2,516

2012
€'000
403
288
412
26
1,129

2013
€'000
8,425
(20,950)
10,018
6,948
4,441

2012
€'000
6,546
(13,236)
1,734
8,448
3,492

Income from sub-letting Property re-assigned from Forfás
Private sector sublets of Leased Oﬃce Accommodation
Bank Interest
Fee Income in respect of Undeveloped Lands
Interest on Industrial Property Transactions
Sundry Income
8 Proﬁt on Disposal of Assets
Consideration (net of fees and direct expenses)
Historical Costs
Write back of provision for impairment
Write back of provision for depreciation

The proﬁt on disposal of €4.441m is stated net of losses of €177,000.

20-Notes to the Financial Statements (Continued)
9 Grants Payable
Capital
Employment
R&D
Training
Research Technology & Innovation (RTI) for Industry Programme(see also note 4)

2013
€'000
12,163
14,97057,785
3,033

2012
€'000
16,28623,11943,525
5,362

87,951

983
89,275

On 27 November 2013 the remit of IDA was extended to include the Foreign Direct Investment
client portfolio of Shannon Development, with the subsequent transfer of 4 staﬀ. Two grants withan aggregate value of €401,000 were processed after this date, and on the recommendation of
IDA, paid by Shannon Development.

For Year Ended 31 December 2013(c)
Board members remuneration was as follows:
Liam O'Mahony (Chairman)
Barry O'Leary (Chief Executive)
Lionel Alexander
Loretta Brennan Glucksman
Mary CampbellPeter Cassells
Dermot CurranPaul Duﬀy
Alan Gray
Henry McGarvey
Heather Ann McSharry
Gerard O' Mahoney

2013

2012

€'000
n/a
11,97011,97011,97011,970-€'000
11,97010,801
7,208
11,97011,970
4,988

Board Members expenses in 2013 amounted to €9,822 broken down €3,154 mileage,€4,524 accommodation and €2,144 other travel, subsistence and vouched food expenses.
10 Promotion, Administration and General Expenses(a)Board Members' fees, expenses and remuneration - see 10 (c)Other remuneration costs - see 10 (b)Marketing, consultancy, promotions and advertising
General Administration
Costs of non-industrial leased property re-assigned from Forfás*
Audit Fee
Provision for Doubtful Debts
Less: Capitalisation of expenditure associated withindustrial property development

2013
€'000
240
21,475
9,109
9,353
3,265
51
(2,693)

2012
€'000
258
21,038
8,890
9,584
49
(1,295)(17)
40,783(24)
38,500* Includes a provision of €400,000 for potential dilapidations on a property where the lease is due
to terminate in July 2014.
(b)
Other remuneration costs comprise:
Wages and Salaries
Social Welfare Costs - Employer's Contribution
Pension Costs - Employer's Contribution

2013
€'000

2012
€'000

20,0171,095
363
21,475

19,6081,059
371
21,038All IDA staﬀ are employees of Forfás and are seconded to the Agency by Forfás. In 2013 €1.06m ofpension levy has been deducted and paid over to the Department of Jobs, Enterprise and Innovation(see Accounting Policy 11 - Superannuation).

21-

Chief Executive Remuneration Package
The Chief Executive Oﬃcer received a salary of €182,334 and is also entitled to a pension inline with the standard public sector entitlement.
(d)Annual Rent Payable in respect of Leased Oﬃce Accommodation
No. ofLease Expiry
Gross Rent
Oﬃces
Date
Payable2013*€'000
Head Oﬃce
1
2019
4,625
Other Leased Oﬃces
2
2014-2034
2,282
Regional Oﬃces
4
2013-2028
300
Overseas Oﬃces
15
2013-2019
1,308
8,515
*

Net Rent
Payable2013**
€'000
2,001
1,179
300
1,308
4,788

The gross rent payable by the IDA in 2013 on its non-industrial properties amounted to€8.515m. The commitments in respect of leases at year end amounted to €8.013m,
the diﬀerence being net decreases in rental charges in 2014 amounting to €502,000
due to the expiration of the Knockmaun lease.
** This takes account of amounts received from other State bodies and private tenants
that occupy part of the oﬃce buildings concerned.
(i) In the case of Head Oﬃce and six overseas oﬃces accommodation is co-locatedwith other State Agencies and / or the Irish Government missions.
(ii) Two overseas oﬃce leases were renewed in 2013.
(iii) One overseas oﬃce lease contains a break clause exercisable in 2015.
(iv) The Agency does not own any property which is used or available for theaccommodation of its staﬀ.

Notes to the Financial Statements (Continued)(e)Commitments under Operating Leases
The current annual commitment under operating leases is €15.143m.
These leases will expire as follows:2013 €'000
NonIndustrial
Property

within one year
1,440
in the second toﬁfth years inclusive 402
more than 5 years 6,171
8,013

2012 €'000

Industrial Industrial
Property Property
Occupied Available
under
for
leases Promotion

NonIndustrial
Property

Industrial
Industrial
Property
Property
Occupied
Available
underforleases Promotion

-

-

357

-

-

3,148
68
3,216

3,880
34
3,914

825
2,490
3,672

2,204
804
3,008

2,288
1,826
4,114

In 2013, Forfás assigned the leases on Wilton Park House, Knockmaun House and Carrisbrook
House to the IDA. The IDA incurred non-eﬀective expenditure of €1.286 million on rent andassociated costs as a result of unoccupied oﬃce space in two of the buildings, as set out below.
The vacancies have been long standing.
Building

Carrisbrook
House*
Knockmaun
House

Total
Costs
€

Vacancy
rate

Cost ofvacantspace€

1,300,491

84.9%

1,103,986

1,564,351

11.6%

181,778
1,285,764* Forfás paid rent of €98k in respect of Carrisbrook House in 201322-

For Year Ended 31 December 2013

Notes to the Financial Statements (Continued)
11 Industrial Building Charges
These charges include the net costs associated with industrial buildings provided by the private
sector, and the net movement on provisions in respect of operating leases as set out in note 20,
together with insurance, security and maintenance costs in respect of all promotable industrial
buildings held by IDA.
12 Depreciation & Impairment Charges
Depreciation Charges- Industrial Property- Other Fixed Assets
Impairment Charges- Industrial Property

Notes

2013
€'000

2012
€'000

15
16

8,668
299

9,731
472

15

4,835
13,802

15,281
25,484

Depreciation is calculated in order to write oﬀ the cost of assets less, where applicable, any
impairment provision over their estimated remaining useful lives. No provision for depreciation
is made in respect of land or investments. Impairment charges arise where the book value of
Industrial Property, Telecommunications Assets or Investments exceed their estimatedrecoverable value.
13 Contribution to the Exchequer
By agreement with the Department of Jobs, Enterprise and Innovation receipts from promotion
and administration activities, grant refunds, ESF receipts, the sale of industrial property andincome derived from the sale and or leasing of telecommunication assets to the extent that theyexceed the Agency's expenditure requirements, are refundable to the Exchequer. There are nocontributions paid to the Exchequer in 2013 (€223k in 2012):
2013
2012
€'000
€'000
Administration
201
Grant Refunds
Telecommunication Assets
22
223
On the direction of the DJEI and DPER, the IDA paid an amount of €2.745m to the Exchequer in2014 in respect of surplus funds held at the end of 2013.
14 Capital23-

At 1 January
Net Movements on:- Industrial Property- Other Fixed Assets
Transfer to Operating Assets
At 31 December

Notes

€'000

15
16

(16,189)
204

2013
€'000
116,444

€'000

2012
€'000
143,555(26,799)(312)(15,985)
100,459(27,111)
116,444

For Year Ended 31 December 201315 Tangible Fixed Assets - Industrial Property
Land
Site
Development
Cost
At 1 January
Additions
Transfers
Disposals
At 31 December
Provision for Impairment
At 1 January
Charge for Year
Transfers
Disposals
At 31 December
Provision for Depreciation
At 1 January
Charge for Year
Transfers
Disposals
At 31 December
Net Book AmountAt 31 December
At 1 January
Net Movement for Year

Industrial Industrial
Property
Property
OccupiedAvailable forunder Promotion
Leases€'000€'000
18,084
9,338
2,966(2,966)(238)(1,517)
20,812
4,855

Total

€'000
260,441405(2,977)
257,869€'000
175,769883(15,840)
160,812€'000
463,632
1,288(20,572)444,348

166,541
4,655(1,475)
169,721

16,08442(7,577)
8,549

3,713
476
4,189

4,493
138
(476)
(966)
3,189

190,831
4,835(10,018)
185,648-

144,205
7,985(5,820)146,370

9,131
341
2,408
(522)
11,3583,348
342(2,408)
(238)
1,044

156,684
8,668(6,580)158,772

88,14893,900

5,893
15,480

5,265
5,240

622
1,497

99,928116,117(16,189)(a) The estimated useful life of industrial property, by reference to which depreciation
has been calculated, is as follows:(i) Buildings
33 years(ii) Site Development costs 10 years(b) 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 theownership 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 ofany sales. The net book amount included above in relation to this arrangement is €Nil.
(c) In 2009 IDA agreed a charge over industrial land which was the subject of an uncompleted salein 2006 for €68.5m giving rise to a repayment obligation in the same amount. IDA madeaccelerated payments in 2012 in order to reduce the liability in future years. At the end of2013 the amount repayable was €3.05m and this is the amount due on uncompleted sales
detailed in note 19 dealing with Accounts Payable.

Notes to the Financial Statements (Continued)
16 Other Fixed Assets

For Year Ended 31 December 201318 Accounts Receivable

Oﬃce andComputerEquipment,
Fixtures &Fittings

Total

€'000
8,813
513
(378)
8,948

€'000
8,813
513
(378)
8,948

8,486
299
(368)
8,417

8,486
299
(368)
8,417

531
327
204

531
327
204

Cost
At 1 January
Additions
Disposals
At 31 December
Provision for Depreciation
At 1 January
Charge for Year
Disposals
At 31 December
Net Book AmountAt 31 December
At 1 January
Net Movement for YearThe estimated useful life of ﬁxed assets, by reference to which depreciation
has been calculated, is as follows:(i) Oﬃce Equipment/Fixtures and Fittings
5 years(ii) Computer Equipment
3 years

17 Telecommunication Assets
Acting pursuant to a Government decision IDA Ireland, in conjunction with the Department of
Public Enterprise (now the Department of Communications, 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 aperiod of 25 years from 2000. A portion of the capacity purchased by IDA was sold to a numberof 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.

2013
Amounts falling due within one year:€'000
Accounts Receivable and Prepayments
12,664
Amounts due in respect of disposal of
Telecommunication Assets
3,206
Provision for Doubtful debts(5,303)
Amounts due in respect of disposal of Industrial Property(1)Interest Receivable
106
10,672
Amounts falling due after more than one year:
Amounts due in respect of disposal of Industrial Property

2012
€'000
14,961
3,206(8,508)
88
9,747

164
10,836150
9,897

19 Accounts Payable
Amounts falling due within one year:
Accounts Payable and Accruals
Amount due on Uncompleted Sales
Amounts falling due after more than one year:
Amount due on Uncompleted Sale

2013
€'000
2,561
3,098
5,659

2012
€'000
2,847
210
3,057

-

2,905
2,905

The amount due in respect of uncompleted sales of €3.098m includes an amount of€3.05m relating to the amount owing on industrial land as set out in note 15 (c) dealing
with industrial property.
20 Provision for Liabilities and Charges
Operating Leases Provision
At 1st January
Net (reduction) / charge for the year
Total at 31 December

2013
€'000
33,624(3,705)29,9192012€'000
33,823(199)
33,624The Operating Leases Provision comprises:- Potential building reinstatement costs associated with obligations under operating leases.
- Future costs arising under operating leases estimated to exceed the amounts recoverablefrom sub lessees.

24-

Notes to the Financial Statements (Continued)
21 Commitments
It is estimated that future payments likely to arise from Grant Commitments amounted to €226m as at
31 December 2013 (2012: €225m).

For Year Ended 31 December 2013
24 Gross Cash Flows
Notes
(a)

Capital Commitments outstanding at 31 December 2013 on contracts for the acquisition anddevelopment of Industrial Property amounted to €9m (2012: €6m).
(b)
22 Taxation
Section 227 of the Taxes Consolidation Act, 1997, provides an exemption from tax for income ofnon-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.
In some countries in which the Agency operates, an exemption from local taxation has been availed ofunder 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 theyear ended 31 December 2013.

(c)

(d)

Returns on Investment and Servicing of FinanceBank Interest

Capital expenditure and ﬁnancial investment - Acquisitions
Expenditure Capitalised10(a)Purchase of tangible ﬁxed assets - Industrial Property
15
Purchase of Other Fixed Assets
16
Capital expenditure and ﬁnancial investment - Disposals
Disposal of tangible ﬁxed assets - Industrial Property
Disposal of Other Fixed Assets
Disposal of Investments

Income:Oireachtas Grant
Rental Income IDA Ireland Client Companies
Fee Income in respect of Undeveloped Lands
Interest on Sales
Proﬁt on Disposal of Industrial Property
Expenditure:
Promotion, Administration and General Expenses
Industrial Building Charges
Depreciation Charges and Provisions
Net Movement for Year
Transfer from Capital
Contribution to Promotion and Administration activities

25
-

Notes
1
7
7

11
12

14

2013
€'000
4,000
1,660
391
99
4,449
10,5992012€'000
11,000
2,079
288
412
3,480
17,2591,374
4,670
13,503
19,547(8,948)16,1897,241

1,353
13,16325,012
39,528(22,269)
26,799
4,530

2012
€'000

224
224

403
403

17
(1,288)(513)(1,784)24(1,243)(184)(1,403)

8,423
2
8,425

6,510
6
30
6,546

Cash
Flow

At 31
December
2013
€'000
5,024
16,50021,524

Analysis of Net Funds

Cash at Bank and on hand
Short term deposits
23 Industrial Property Income and Expenditure

7

2013
€'000

At 1
January
2013
€'000
6,271
11,00017,271€'000(1,247)
5,500
4,253

Notes to the Financial Statements (Continued)
25 Contingent Liability
The Agency is involved in legal proceedings in relation to its acquisition of lands by Compulsory Purchase
Order. The case was heard in the High Court on 19 September 2013 and the Court found in favour of the
Agency. The owners of the land have appealed the case to the Supreme Court. The Board does notexpect this case to result in material liabilities in respect of legal costs for the Agency other than thosealready provided.
26 Board Members - Disclosure of Transactions
In the normal course of business the Agency may approve grants and may also enter into othercontractual arrangements with undertakings in which IDA Board members are employed or otherwiseinterested.
The Agency adopted procedures in accordance with the guidelines issued by the Department of Public
Expenditure and Reform in relation to the disclosure of interests by Board members and theseprocedures have been adhered to by the Board members and the Agency. During 2013, six transactions
required disclosure as the relevant grants approvals or payments, related to companies in which Board
members are employed or are otherwise associated. The transactions included 3 grant approvals
totalling €8.7 million and 3 grant payments totalling €7.3 million.
In these cases the relevant Board members did not receive Board documentation on the proposedtransaction nor did the members participate in or attend the discussions relating to the matters.
27 Approval of Financial Statements
The Financial Statements were approved by the Board on 14 May 2014.

26-

For Year Ended 31 December 2013

Organisational Structure
Chief Executive
Barry O’Leary

Executive Director
Dermot Clohessy

Division Manager
Life Sciences
Healthcare Services& FoodBarry Heavey

Division Manager
ICT
Leo Clancy

Division Manager
CCBS / Eng,
Industrial & Clean
Technologies
John Conlon

Division Manager
International
Financial Services
Kieran Donoghue

Division Manager
HR &Organisational
Development
Mary Buckley

China Strategy &Strategic
Relationships, IT &Business Process
Transformation
Eileen Sharpe

Division Manager
Regional Business Development,
Strategic Inﬂuencing Agenda &Strategic Property Management
Dublin / Athlone
Mary Buckley

MedicalTechnologies
Andrew Vogelaar

ICT
Existing
Donal Murphy

CCBS
Emmanuel Dowdall

Director
North America
Pat Howlin

Head of Global
Corporate
Communications
Emmet Oliver

Asia / GrowthMarkets
Brian Conroy
Shane Nolan

Financial Management
Regina Gannon

Engineering,
Industrial &Clean
Technologies
Tommy Fanning

Territory Director
West Coast US
Rory Mullen

Territory Director
Mid West US
Enda Meehan

Emerging Companies /Private Equity &Ventures Capitalists
Barry O’Dowd
Business
Development
Mary Molloy
BusinessIntelligence Unit
Brendan McDonagh
Corporate Planning& Strategy
George Bennett

Director Europe
Anne-Marie
Tierney-Le Roux

27-

Corporate Governance& Services / Company
Secretary
Deirdre Lyons

Strategy Property
Management
Frank Conlon
Regional Business
Development &Regional Midlands
Breda O’Toole
Startegic Inﬂuencing
AgendaEducation, Skills& Location Consultants
John Bolton

Global Oﬃce Network
HEAD OFFICEIDA Ireland
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Tel: +353 1 603 4000
Fax: +353 1 603 4040
Email: idaireland@ida.ie
www.idaireland.com@IDAIRELAND
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28-

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