IDA Ireland
Annual Report& Accounts
2017

www.idaireland.com

Contents
Chairman & CEO Overview

2

Statistics

6

Corporate Social Responsibility

11

Governance Statement and Board Members’ Report

14

Financial Statements

22

Global Office Network

42

Chairman &CEO Overview

01

4

atement from the Chairman and CEO of IDA Ireland

trategy

Chairman & CEO Overview
IDA Ireland continues to drive its strategy Winning: Foreign
Direct Investment 2015 – 2019 which is delivering ahead ofschedule on its hugely ambitious targets which include:

Mid-Term review of Strategy
As promised at the outset of the current strategy, theAgency undertook a review of the objectives and targets
contained within the strategy at its mid-point in 2017.

015, IDA Ireland published a new strategy - Winning:
eign Direct Investment 2015 – 2019. That Strategy sets
– 80,000
New Jobs set of targets including:Global political circumstances have changed remarkably
an extremely
ambitious– 900 Investments
0,000 –New
Jobs
A 30
– 40% increase ininvestments into regional
00 Investments
locations; and30 – 40%
increase in investments– €3bn in R&D expenditure

nto regional locations; andThe 2017 figures are consistent with a pattern of extremely
strong job creation amongst IDA client companies in recent
years. 19,851 new jobs were created over the course of theyear – resulting in 10,684 of a net gain in jobs for the year.

3bn in R&D expendituresince late 2014 when the strategy was developed with theUnited Kingdom’s forthcoming exit from the European
Union and a new US Administration impacting theinternational investment climate.
Ireland’s investment proposition, offering a stable policy
and regulatory environment, the availability of talent anda track record of a strong base of existing international
companies, continues to appeal greatly to investors. In
order to achieve an optimum outcome for the remaining
two years of its strategy, the Agency plans to make anumber of adjustments to its strategy.
•

IDA Ireland will be reorganising its global footprint
from 3 to 4 territories in recognition of Brexit (USA,Europe, AsiaPac, United Kingdom)
Going forward in order to maintain the high level ofcustomer service to our U.K. Clients, this market will
be addressed as a distinct territory.
From 2018, IDA Ireland’s continental European
business will be managed from its Dublin andFrankfurt offices
IDA Ireland will open a new Canada office inToronto in 2018
IDA will explore a number of new market
opportunities – UAE, Turkey and South Africa
IDA will focus on opportunities and challenges
presented by Artificial Intelligence (AI) and Robotics

ultimateof thenewstrategy
for the people ofTo putgoal
this in context,
less thanten years
ago, acrossis
2008
and 2009, Ireland lost over 35,000 FDI jobs. This is a•and to salutary
benefitfromdirectinvestment
and for IDA
reminderthat weforeign
can take nothingfor grantedinthe foreign investment world – all jobs must be fought forand to andbecomemost
successfulpromotion
won againsttheincreasing
international
competition.investment•
development
inIrelandthehasworld.
In the last threeagency
years alone, IDA
exceeded thetotal net increase in jobs targeted in its five-year Strategy.

•

5 was Thethefirstgoalyearof implementationthat strategy
ultimateof the strategy
is for the people of Ireland of•
to benefit from foreign direct investment by IDA Ireland
IDA Irelandis happy
to report
thatbeing the mostsuccessful investment
promotionand it has• made an
development agency in the world.
ellent starton all aspects of the strategy.

Frank Ryan
ChairmanFrank Ryan
Chairman02

Chairman & CEO Overview
Outlook
While Ireland has demonstrated a remarkable capacity toabsorb foreign investment, the business environment for
Foreign Direct Investment is more competitive now thanever before with many other countries, large and small,vying for the same investments as Ireland.

IDA Ireland has worked with thousands of clients, helping
them to locate businesses in Ireland for over 69 years
now. The planning process has worked for most of thesecompanies; however there are clearly areas for
improvement and the Government has committed to makechanges to the planning processes to address these issues.

The continued employment growth and decreasing
unemployment rate in Ireland is consistent with an FDIbase currently increasing its presence in Ireland. This is aremarkable turnaround for the Irish economy and foreign
investment has been a key catalyst in this area.

We need a much higher degree of predictability in relation
to our planning processes. Not predictability aboutoutcomes, but definitive timelines that are appropriate
for the pace at which the commercial world works.

Based on the performance for the first three-years of thestrategy, IDA expects to exceed the Investment and Job
creation targets set for Winning FDI Strategy 2015–2019,
but significant down-side risks exist.
There are substantial International Developments, theprecise impacts of which are not yet known. These include
the on-going Brexit negotiations and recent taxation
reform in the US. Greater protectionism and nationalistic
policies in some quarters is also an increasing
phenomenon that may impact FDI flows globally.
In the short to medium term, technological developments
such as Artificial Intelligence and Robotics are likely tohave a major impact on the future of work andemployment across all sectors.
Maintaining the competitiveness of the Irish economy
remains essential – issues for FDI investors include:
Residential Housing – availability & cost; skills;
infrastructure investment; income tax levels at the higher
marginal rate and increasing industrial relations activity.

Increasing the availability of housing and improving
infrastructure is a Government priority, planned responses
and initiatives already undertaken by Government inresponse to these issues will assist in convincing investorsof Ireland’s continued commitment to maintaining
competitiveness.
The first half of 2018 has noted some very significant client
investments including Chinese Biologics manufacturer
Wuxi Biologics which announced that they will locate theirfirst manufacturing plant outside of China, in Dundalk.
Wuxi’s plant will be the largest facility in the world using
single use bioreactors. While Edwards Lifesciences is tobuild a new plant to manufacture delivery components for
its transcatheter heart valve therapies investing €80m andcreating 600 jobs in the Mid-West region.
Not only will these investments have a hugely positive
impact on the local economies but they will also act asgreat regional reference cases to help us attract further
new investments.
Not withstanding this, the competition for Foreign Direct
Investment remains intense and is increasing.

Martin Shanahan
Chief Executive Officer

03

Brexit
IDA Ireland’s Brexit-strategy has involved significant
engagement with our clients supported by a multi-media
marketing campaign highlighting Ireland’s advantages
in a post-Brexit context including English language,
commitment to the EU, a common law system in addition
to our existing competitive proposition. IDA Ireland has
also undertaken and participated in Brexit related
conferences and events across the globe.
IDA Ireland has worked with significant numbers of clientslike Thomson Reuters, Wasdell, Masons Bank of America,
Barclays, Citigroup, S&P Global, Legal & General, Pinsent
Masons, Northern Trust, Citadel, Tobam, alterDomus,
Fundrock, Chaucer, Kabbage, Willis Towers Watson, Bankof China and Beazley Re have all declared for Ireland tomeet their post Brexit business requirements.

As was flagged in the 2016 results, job losses were at
remarkably low levels as a percentage of the overall
employment in FDI. As expected, the levels of losses haveincreased in 2017. This number is much closer to the longterm average.

•

The high level of investments won remained stable in 2017with 237 new investments secured by IDA during the year.
The number of new name investments increased to 111
from 99 in the previous year. The strong net job creation
performance of 10,684 additional jobs in Ireland shows
the resilience of the Irish offering where investors continue
to value talent, track record, and a stable regulatoryenvironment.

•
•

•
•

Among the leading investments secured during 2017 were:••

As Brexit negotiations continue in 2018, IDA Ireland will
be redoubling its efforts with mobile investors to highlight
Ireland’s suitability as a location for international business.
•
Performance
In 2017, employment levels in foreign owned companies
reached 210,443. IDA Ireland has achieved this figure twoyears ahead of target. This is a considerable achievement
for Ireland and is an indicator of how competitive Irelandis at winning business globally. The continued success of
IDA client companies has been a strong contributor toemployment growth and the downward trajectory of
Ireland’s unemployment rate. IDA client companies
created 19,851 new jobs and these results indicate a strong
performance by the organisation towards delivering its
2019 target of 80,000 new jobs and 900 investments.

•

•

•
•

Element Six based in Shannon, Co Clare announced
the creation of an additional 100 jobs in the areas ofsupply chain, engineering and manufacturing, withrecruitment already underway
Mercury Filmworks from Ottawa, Canada announced
it has joined forces with acclaimed Kilkenny-based
animation studio Cartoon Saloon to create an all-new
animation studio in Ireland, Lighthouse Studios which
will create over 140 jobs
Indeed.com - the world’s largest job site, announced
expansion plans for its Dublin-based headquarters for
Europe, the Middle East and Africa (EMEA), adding 500
new employees over the next two years
Microsoft announced it will add 800 new jobs at its
Dublin operations
Mobile Technologies Inc. (MTI) is to hire 150 people
in its newly established European Contact Centre
Headquarters in Drogheda

•

•

•

BorgWarner announced it is to add a new production
line for Electric Vehicle Technology and create 50
new jobs in Tralee, Co Kerry
MSD announced 330 new jobs to be created in Carlow
and Cork, and invest €280m to expand production
facilities
Northern Trust will add up to 400 new jobs in Limerick
Graebel Companies Inc. announced it is to create
125 new jobs in a EMEA Financial Shared Services
and Operations Centre in Dundalk, Co LouthKBRA - the Credit ratings agency, selected Dublin
for European Headquarters and will create 100 jobs
Janssen Sciences Ireland announced an expansionof its Ringaskiddy, Co. Cork facility. The expansion
plans involve an investment of more than €300m
and will create 200 new jobs
Wasdell Group to establish Pharmaceutical Packaging& Distribution Facility in Dundalk, Co Louth creating
300 jobs over five years
Beckman Coulter, which is a strategic site in thedevelopment and manufacture of medical diagnostic
products is expanding its facility at Lismeehan,
Co Clare, creating 70 jobs over the next two to
three years.
National Pen, a leading global provider of
personalised marketing merchandise, celebrated its
30th anniversary in Dundalk, Co Louth and announced
that it will add 250 new jobs.
S&P Global Ratings announced it has chosen Dublin
as a post-Brexit European hub.

04Chairman & CEO Overview
Regions
While extraordinarily challenging, IDA is succeeding in
winning regional investments. FDI employment in all
regions increased in 2017, for example in the South West,
employment increased by 4.2% and by a remarkable
9.2% to 14,785 in the South East. IDA Ireland is acutely
aware of the importance of jobs for regional sustainability
and development but it remains a challenge to convinceinternational investors to consider locations outside of
Dublin and the larger urban areas.
IDA Ireland will continue to work with all Governmentand regional stakeholders to present regional locationsin the best possible light to potential investors.
IDA works with the Private Sector to secure buildings
and sites to meet the needs of clients. In recent years,
the private sector has not been investing in property
solutions outside Dublin. With financial support from
Government IDA has stepped in as an investor of last resort,to ensure that Property solutions, in Regional locations arein place to win investments and jobs in order to meet ourclients’ needs.
IDA Ireland’s Regional Property Investment Programme has
been designed to win investments and jobs into Regional
locations with the objective of creating high-spec pre-built
turnkey property options that businesses could move into
at short notice. So far, IDA has successfully secured tenants
for the first buildings completed under its Regional property
investment programme in Waterford, Athlone and Sligo.
Two new buildings in Castlebar and Tralee are now
complete and being marketed extensively. Constructionis also underway in Galway.

IDA Ireland continues to roll out its building programme
across the country with new buildings planned in Carlow,
Dundalk, Limerick, Athlone and Waterford over the next
two years.
Team Ireland
IDA Ireland was recently named as the best Investment
Promotion Agency in Western Europe for the third year ina row by Site Selection Magazine which is a remarkableendorsement of IDA Ireland’s professionalism and services.
For this award the opinions of 1,000, corporate decisionmakers, site consultants and experts from around the world
were asked which agencies they regarded as the very bestin the business and IDA Ireland came out on top.

Most importantly, we pay tribute to our team at IDA Ireland
who fight to win these jobs on a daily basis – at home in
Ireland and all around the globe they have worked tirelessly
to achieve these numbers. Their work and dedication arewhat drives these results and their passion, expertise,and determination is recognised here.
IDA would like to thank Lionel Alexander, Peter Cassells
and Caroline Dowling for their strong contributions andguidance while on the Board. During 2017 Mary Mosse
joined the Board. In January 2018 Geraldine McGinty was
reappointed to the Board.

But IDA can only do its job with the help and assistanceof many stakeholders across the wider system.
IDA would like to acknowledge the continued support andfunding of the Government.
IDA Ireland reports into the Minister for Business, Enterpriseand Innovation and works closely with DBEI and other
Government Departments and agencies such as Enterprise
Ireland, Science Foundation Ireland, Higher Education
Authority, Solas, NAMA, Eirgrid, NTMA, Coillte, local
Authorities, Tourism Ireland and many private sector
organisations and Chambers of Commerce.
IDA’s most powerful marketing tool is its clients and we pay
tribute to the companies that have placed their confidence
in Ireland and we also wish to acknowledge the many
multinational and Irish companies who gave up their timeto generously meet with prospective investors visiting
Ireland during 2017.

Frank Ryan
ChairmanMartin Shanahan
Chief Executive

05

Statistics

06

Statistics

IDA Ireland Indicators
Indicator

2017 Value

Origin of IDA Ireland Supported Companies 2017

Total of Investments Approved

237

OriginNo of Greenfield Projects

111

No of Expansion Projects
No of Research, Development & Innovation Projects

No of Companies

Total Employment

United States

764

152,146

76

Germany

94

13,67850

United Kingdom

96

5,776

France

59

7,091

€905M

Rest of Europe

183

16,551% of Investments Located Outside Dublin

42%

Rest of World

188

15,201% of Jobs Approved Outside Dublin

55%

Total

1,384

210,443% Jobs Approved with Salaries in excess of €35,00075%

Investment in Research, Development &Innovation Projects

Average Salary in Investments€48,406

Source: Department of Business, Enterprise and Innovation Annual Employment
Survey 2017.

Total R&D in-house Expenditure*€1.64bn

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

Note * R&D in-house expenditure data refers to 2016.

07

Total Employment by Regionin IDA Ireland Supported Companies

Employment in IDA Supported Companies
			

2017

Job Gains		

19,851

IDA Region
2013
2014
2015
2016
2017
%
						
Change						
2016/2017

Source: IDA Ireland 2017

Border

9,286

9,972

10,431

11,065

11,4693.6%

Dublin & 						Employment in IDA Supported Companies
2016

2017

Mid-East

80,26583,81888,81995,914 101,355

5.7%

Total Employment

199,759

210,443

Mid-West

13,81014,46015,373

16,89017,787

5.3%

Full Time

180,798

191,067

Midlands

3,905

3,997

4,197

4,274

4,327

1.2%

Other

18,961

19,376South-East

11,992

12,506

12,734

13,537

14,7859.2%

Net change in total employment

13,725

10,684South-West 28,916

30,146

34,04935,92837,434

4.2%% Net change in total employment		

5.3%

West

19,486

20,431

22,151

23,286

5.1%

174,385 186,034 199,759 210,443

5.3%

		

18,963			

IDA Ireland 167,137

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

Source: Department of Business, Enterprise and Innovation Annual Employment
Survey 2017.

Source: Department of Business, Enterprise and Innovation Annual Employment
Survey 2017, Time series data.

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

08Statistics (continued)

Total Employment by Sector in IDA Ireland Supported Companies
Sector
2013
2014
2015
2016
2017
%change						
2016/2017
Pharmaceuticals

22,771

23,03824,984

26,61828,026

5.3%

Computer Electronic & Optical Equipment

17,292

18,12020,474

20,285

19,960-1.6%

Medical & Dental Instruments & Supplies

25,801

26,932

27,22529,26330,746

5.1%

Metals & Engineering

9,988

9,907

10,23010,56010,7692.0%

Miscellaneous Industry

8,268

8,016

8,339

8,510

8,931

4.9%

(incl software)

83,01788,372

94,782

104,523

112,011

7.1%

Total

167,137

174,385

186,034

199,759

210,443

5.3%

International & Financial Services

Source: Department of Business, Enterprise and Innovation Annual Employment Survey 201709

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

The ABSEI (Annual Business Survey of Economic Impact) survey resultsfor every 10 jobs generated by Foreign Direct Investment (FDI) directly,

for 2016 (latest data available) include data for Exports, Irish Economy

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

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

378,797 jobs that were supported by FDI at the end of 2017. Secondary-

IDA client exports increased 9.7% to €172bn in 2016.

economic benefits impact positively on the construction industry,-

Expenditure in the Irish economy grew 7.4% to €17.9bn in 2016.

the retail sector and the hospitality industry.

This is made up of expenditure on payroll (€10.9bn), Irish services 		(€4.8bn), and Irish materials (€2.2bn).
-

In-house R&D Investment grew 9.5% to €1.64bn in 2016.

-

IDA clients invested €4.9bn in capital projects in 2016.

IDA Ireland Cost per Job Sustained Constant 2017 Prices

IDA Ireland (€)

2005-20112006-20122007-20132008-20142009-20152010-20162011-201713,347

13,123

12,862

12,802

10,578

9,148

8,057

Source: Department of Business, Enterprise and Innovation Annual Employment Survey 2017
Note: The cost per job sustained is calculated by taking into account IDA Ireland grant expenditure to all firms in the period of calculation.
Only jobs created during and sustained to the end of each seven year period are credited in the calculations.

10Corporate Social
Responsibility

11Corporate Social Responsibility
Companies around the world are increasingly engaging in corporate social

IDA has appointed Diversity and Inclusion Champions across the Ability,

responsibility (CSR) initiatives. Embracing responsible and sustainable

Gender, LGBT+, Multicultural and Socio-Economic pillars of diversity. Our

business practices helps to make companies employers of choice andfirst event to celebrate International Women’s Day was held in March 2018

has important reputational benefits, therefore also contributing to theas a forerunner to a number of Diversity and Inclusion events and initiatives

achievement of business strategy targets. Ireland’s continued success inin the months ahead, including an event to celebrate IDA’s multicultural

winning FDI requires IDA to be able to attract and retain the best people

diversity and the launch of the IDA LGBT+ Ally Network.

and to maintain IDA’s international reputation as a modern organisationthat exemplifies best practice.

Providing staff with the tools to develop as people and deepen theirknowledge is another important aspect of responsible business practice,

IDA’s CSR initiatives across the workplace, community and environment

particularly in a rapidly changing global economy. IDA has establishedcontribute to, uphold and deepen our core values of passion forpolicies in this area, for example through regular performance management

performance and achievement, public service, professionalism andand development reviews. The importance of health and wellbeing ispeople. They are also aligned at a national level to the objectives of thereflected in initiatives such as flexible working hours, the bike to work

Government’s National Plan for Corporate Social Responsibility 2017-2020.

scheme, and the Sports and Social Club.

As more and more leading global companies use the Sustainable
Development Goals as a scorecard and a benchmark for their responsible

Beyond the workplace, IDA staff have taken the lead in the organisation’s

and sustainable business practices, the goals offer IDA a useful overarchingengagement with the community through the fund and awareness raisingframework for both existing and future CSR initiatives in the organisation.

activities of the CSR Committee for charities chosen by staff members.
The CSR Committee has held fundraising events for Focus Ireland and

IDA recognises the importance of diversity in making the organisation

Irish Guide Dogs for the Blind since its establishment in 2016.

a place where staff can develop and succeed. The global facing natureof IDA’s activities requires us to reflect the diversity of both Irish
society and the wider world in which our staff work on a daily basis.

12

IDA is also conscious of the need to carry out our activities in a sustainable
manner. Under the National Energy Efficiency Action Plan (NEEAP), thepublic sector has been set a target to improve its energy efficiency by
33% by 2020. IDA is on track to deliver on this target and, as of 2016,
had recorded energy savings of 58.7% across the Agency’s offices
and business parks since the baseline level was set*.
Social Responsibility is at the very core of IDA Ireland’s raison d’etre,as reflected in its mission to win and develop foreign direct investment,
providing jobs for the economic and social benefit of Ireland. In addition
IDA Ireland strives to incorporate CSR into all aspects of its operations.
*The data submitted by IDA on an annual basis to SEAI is subject to verification
on an ongoing basis up to the 2020 deadline.

13

Governance Statement
and Board Members’ Report14Governance Statement and Board Members’ Report
Governance
IDA Ireland is an autonomous Statutory Agency set up underthe Industrial Development Acts 1986 - 2014. The Agency
operates in accordance with the provisions of the Acts andunder the aegis of the Minister for Business, Enterprise andInnovation, 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 Irelandaffirms that it met its obligations in regard to all of theserequirements. In particular, it has the following proceduresin place to ensure compliance with specific requirements:
1 General Administrative and Policy Requirements
At national level, IDA Ireland works closely with officialsof the Department of Business, Enterprise and Innovationand officials of other Government Departments andState Agencies in advancing its objectives and ensuring
compliance with statutory, administrative and Ministerial/
Government requirements. At local level, the Agency
works closely with Local Authorities, Educational
Establishments, other State Agencies and a wide rangeof Local Organisations/Public Representatives to develop
the local environment necessary for attracting newinvestment. IDA Ireland continues to implement a policy
directive issued by the Minister for Business, Enterpriseand Innovation on 18 December 2006 and which reads
as follows:
The European Commission adopted Regional Aid
Guidelines for the periods 2007-2013 and 2014-2020
together with respective Block Exemption Regulations
for each of the two periods, which enables regional aid
schemes to be operated without prior approval of theEuropean Commission. In order to comply with therequirements arising from the Regional Aid Guidelines andthe Block Exemption Regulations new Administrative Rules
relating to Industrial Development regional aid schemesfor each respective period were also drawn up. IDA also
provides research and development grants in accordancewith the Community Framework for State aid for Researchand Development and Innovation 2006.

Section 8.47: The Chairman of the Board, in the separate
letter furnished to the Minister for Business, Enterprise andInnovation, confirms that the IDA has complied with its
obligations under tax law.

2 Code of Practice for the Governance of State Bodies(2016)The schemes and programmes administered by the IDA arein accordance with the legislation governing the operationof the Agency and appropriate risk management systems
are in place.

Statement of Compliance
The Board has adopted the Code of Practice for theGovernance of State Bodies (2016) and has put proceduresin place to ensure compliance with the Code. IDA Ireland wasin full compliance with the Code of Practice for theGovernance of State Bodies for 2017, subject to a waiverfrom the Department of Business, Enterprise and Innovationin respect of a requirement 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 Business,
Enterprise and Innovation.
Sections 1.8 & 7.5 (iii): An effective system of internal control
is maintained and operated by the Agency (Statement on
Internal Control, page 25).
Section 9: Government policy on the pay of Chief Executives
and State Body employees is being complied with GovernanceStatement and Board Members Report Pages 18 & 20 andNotes to the Financial Statements No 8, pages 34-35).
Sections 1.15 & 1.17: The Board has approved the five year
IDA strategy “Winning Foreign Direct Investment 2015-2019”.
In addition, the Board has established processes to ensure
sound corporate planning, etc., as required by this Section(Governance Statement and Board Members Report 2017,
page 16 and Statement on Internal Control page 25).
Section 9: The IDA travel procedures reflect theGovernment’s travel policy requirements and are being
complied with.

3 Revenue Commissioners’ Statement of Practice
Sp-It/1/04 on Tax Treatment of Remuneration ofMembers of State and State Sponsored Committees
and Boards
IDA Ireland fully complies with this Statement of Practice.
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 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 and diversity 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 thisend, it is committed to ensuring that no staff member of IDA,
or applicant for employment with IDA, receives less favourable
treatment than any other on grounds of gender, marital status,
family status, sexual orientation, religion, age, disability, race,
membership of the traveller community or on any othergrounds not relevant to good employment practice.

15

Governance Statement and Board Members’ Report (continued)
This applies to recruitment, working conditions anddevelopment 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 provisionsof 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 feature of the organisation’scommunications and consultative structure. The Joint
Consultative Committee is welcomed as a positive processby both management and staff. Additionally, a further
partnership arrangement has been established with theTrade Unions to progress actions under the Haddington
Road National Agreement.
8 Ethics in Public Office Act, 1995 and Standards in Public
Office Act, 2001
In accordance with the above Acts, all IDA Ireland Board
Members and staff holding designated positions havecompleted statements of interest in compliance with theprovisions 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, Wilton Park House,
Wilton Place, Dublin 2.

10 Energy Efficiency
In compliance with the Government memorandum of June
2001, IDA Ireland, in the design, planning and constructionof office and manufacturing buildings on its Business andTechnology Parks, applies ‘best practice’ principles in all cases.
The IDA’s offices in the regions also conform to ‘best practice’principles.
11 (I) Prompt Payment of Accounts
The Prompt Payment of Accounts Act 1997 (the Act), whichcame 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 Supplier
IDA Ireland is committed to meeting its obligations underthe 15 day Prompt Payment Rule, which came into effecton 1 July 2011.
The provision ensures that payments to suppliers in respect ofall 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.
12 Protected Disclosure
In line with the legal requirement under section 21 of theProtected Disclosures Act 2014, IDA Ireland has establishedand maintains procedures for the making of protecteddisclosures by workers who are or were employed by IDA
Ireland and for dealing with any disclosures made. IDA Ireland
has provided staff with written information relating to theprotected disclosures procedures.
There were no protected disclosures made to IDA Irelandin 2017.

Board Responsibilities
The Board of IDA Ireland was established under the Industrial
Development Acts 1986-2014. The functions of the Board are
set out in section 8 of the Act 1993.
The Board is accountable to the Minister for Business,
Enterprise and Innovation 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 to arise. 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:- declaration of interests,- reports from committees,- financial reports/management accounts,- performance reports, and- reserved matters.
Section Paragraph 7 (2) of the First Schedule of the Industrial
Development Acts 1986-2014 requires the Board of IDA
Ireland to keep, in such form as may be approved by the
Minister for Business, Enterprise and Innovation with consent
of the Minister for Public Expenditure and Reform, all properand usual accounts of money received and expended by it.

16Governance Statement and Board Members’ Report (continued)
In preparing these financial statements, the Board of IDA
Ireland is required to:- select suitable accounting policies and apply themconsistently,- 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 willcontinue in operation, and- state whether applicable accounting standards havebeen followed, subject to any material departures
disclosed and explained in the financial statements.

Board Structure
The Board consists of a Chairperson, CEO and ten ordinary
members, all of whom are appointed by the Minister for
Business, Enterprise and Innovation. The members of theBoard were 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

Role

Date Appointed

Frank Ryan

Chairman

1st January 2014

Martin ShanahanCEO

31st August 2014

Dermot Mulligan

Ordinary member

19th October 2016

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 the First Scheduleof the Industrial Development Acts 1986-2014. The
maintenance and integrity of the corporate and financial
information on the IDA Ireland’s website is the responsibilityof the Board.

Denis Collins

Ordinary member

4th September 2015

Barry O’Sullivan

Ordinary member

4th September 2015

Geraldine McGinty

Ordinary member

29th January 2018

The Board is responsible for approving the annual plan andbudget. An evaluation of the performance of IDA Ireland byreference to the annual plan and budget was carried out on
7th February 2018.
The Board is also responsible for safeguarding its assets andhence 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 and the financial position of IDA Irelandat 31 December 2017.

			Anne Fitzsimons

Ordinary member

26th August 2016

Marian Corcoran

Ordinary member

26th August 2016

Mary Mosse

Ordinary member

12th September 2017

Peter Cassells

Ordinary member

2nd February 2017

(Retired on 31 December 2017.
Re-appointed on 29 January 2018)(Retired on 31 December 2016.

			

Re-appointed 2 February 2017.

			Retired on 31 December 2017)

Caroline Dowling

Ordinary member

4th September 2015

(Retired on 22 May 2017)

Lionel Alexander

Ordinary member

31st March 2014

(Retired 31 December 2017)

The Board commenced a Board Effectiveness and Evaluation Review in December 2017, which was completed in April 2018.
Key Personnel Changes - Board members as above. Divisional Manager, Barry Heavey, resigned from his position with effectfrom 31 May 2017. Michael Lohan was appointed Divisional Manager with effect from 6 October 2017.

17

Governance Statement and Board Members’ Report (continued)
The Board operates to best practice corporate governanceprinciples and in line with the guidelines set out in the‘Code of Practice for the Governance of State Bodies’ as
issued by the Department of Public Expenditure & Reform,
both in its own activities and in its use of committees.

Frank Ryan
Chairman, IDA Ireland

It is responsible for setting the broad policies of theorganisation 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.

Lionel Alexander
Chairman, Tralee Institute of Technology

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 Governanceof 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.

Martin Shanahan
Chief Executive Officer, IDA Ireland

Geraldine McGinty
Assistant Professor of Radiology, Weill Cornell Medical
College, New York Assistant Attending Radiologist, NewYork Presbyterian HospitalPeter Cassells
Executive Director, Edward M Kennedy
Institute, NUI Maynooth, Co. Kildare

Caroline DowlingBusiness Group President, Integrated Network Business
Unit and Global Services
Business Unit, Flextronics
Barry O’Sullivan
General Manager, Johnson and Johnson
Vision Care (Vistakon)
President, American Chamber of Commerce
Mary Mosse
Director Port of Waterford Company
Commissioner of The Low Pay Commission
Deirdre Lyons
Secretary, IDA Ireland

Denis J Collins
CEO, Smarter Dynamics
Chairman, Learn Lode Ltd
Anne Fitzsimons
COO - Services Integration Hub IBM Global Business
Services
Director IBM Ireland
Marian CorcoranFounder MC 2 Change Limited
Dermot Mulligan
Asst. Secretary General Innovation & Investment Division
Department of Business, Enterprise & Innovation18

Governance Statement and Board Members’ Report (continued)
The Board committee structure is outlined below.
Audit, Finance and Risk Committee
Assists and supports the Board in discharging its legal andaccounting 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 theorganisation’s risk policy including the development of its risk
register and monitors budgeting and banking arrangements.
Members 2017
Peter Cassells (Chair)Dermot Mulligan
Denis Collins
Geraldine McGinty
Anne Fitzsimons

Members 2018
Anne Fitzsimons (Chair)
Denis Collins
Geraldine McGinty
Dermot Mulligan
Liam Rattigan (ExternalCommittee Member)

Property Committee
Reviews policy with regard to the financing, provision,
maintenance and disposal of property, approves procedureswith regard to tendering and awardingof contracts and approves expenditure/sales of up to€12million.
Members 2017
Lionel Alexander (Chair)
Martin Shanahan
Anne FitzsimonsPeter Cassells
Dermot Mulligan

Members 2018
Marian Corcoran (Chair)
Anne FitzsimonsMartin Shanahan
Dermot Mulligan
Mary Mosse

Regional Development 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.

Management Development and Remuneration Committee
Reviews the performance of the senior management team andplans for management development and succession. The
Committee also reviews remuneration of senior managementin the context of Government guidelines.

Members 2017
Denis Collins (Chair)
Barry O’Sullivan
Dermot Mulligan
Mary Buckley
Marian CorcoranMembers 2017
Frank Ryan (Chair)
Martin Shanahan
Lionel Alexander
Caroline Dowling

Members 2018
Denis Collins (Chair)
Barry O’Sullivan
Dermot Mulligan
Mary Mosse
Mary Buckley

Sectoral Development Committee
The Sectoral Development Committee reviews andrecommends sectoral initiatives/investments to the Board.
Monitors progress on sectoral initiatives and ensures theinfrastructure exists to support the initiatives.
Reviews progress on the National Institute for Bioprocessing
Research and Training (NIBRT) investment project to ensurethat it is delivering in accordance with the objectives andconditions approved by the IDA Board.
Members 2017
Geraldine McGinty (Chair)
Barry O’Sullivan
Lionel Alexander
Marian CorcoranMembers 2018
Frank Ryan (Chair)
Marian CorcoranMartin Shanahan

Management 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 €500,000.
Members 2018
Members 2017
Martin Shanahan (Chair) Martin Shanahan (Chair)
Mary Buckley
Mary Buckley
Eileen Sharpe
Eileen Sharpe
Regina Gannon
Regina Gannon
Leo Clancy

Members 2018
Geraldine McGinty (Chair)
Barry O’Sullivan
Marian Corcoran

19Governance Statement and Board Members’ Report (continued)
Board Schedule of Attendance, Fees and Expenses									A schedule of attendance at the Board and Committee meetings for 2017 is set out below including the fees and expenses received by each member.				
					
Board
Audit
Property
Regional
Management
SectoralFees
Expenses		
Finance &Committee
Development Development &Development
2017
2017
		
Risk
of the Board Committee
Remuneration
Initiative€€		Committee 				Committee
Committee
Number of Meetings

11

4

11		

5

5

4 		

Frank Ryan (Chairman)

11

-

-		

-

5

-

20,520588

Martin Shanahan (Chief Executive)

11

-

11		

-

5

-

-

294

Lionel Alexander

11

-

11		

-

5

3

11,970294Peter Cassells

5

2

5		

-

-

-

11,970-Denis Collins

11

4

-		

5

-

-

11,9704,355Marian Corcoran

11

-

-		

5

-

4

11,970533

Caroline Dowling (Retired in June 2017)

2

-

-		

-

-

-

-

-

Anne Fitzsimons

10

4

11		

-

-

-

11,970646

Geraldine McGinty

7

2

-		

-

-

4

11,9708,737*

Mary Mosse (Appointed September 2017)

3

-

-		

-

-

-

2,639

511

Dermot Mulligan

11

4

10		

5

-

-

-

294

Barry O’Sullivan

7

-

-		

4

-

3

11,9702,783								106,949									Board Members expenses in 2017 amounted to €19,035 broken down €6,876 accommodation and €12,159 other travel, subsistence and vouched food expenses.
* Based overseas						19,03520

Governance Statement and Board Members’ Report (continued)
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 theCode of Practice for the Governance of 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.			
Employee Short Term Benefits Breakdown
Employee Benefits€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

Number of Employees (WTE)
2017
2016
42
38
26
26
31
26
6
11
5
1
3
1
4
2
2
1
1
1
-

Legal Costs and Settlements		
The table below provides a breakdown of amounts recognised as expenditure in thereporting 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.
2017
2016
€’000
€’000
Legal Fees - Legal Proceedings
122
Conciliation and arbitration payments
Settlements122		Travel and Subsistence Expenditure		
Travel and subsistence expenditure is categorised as follows:		
2017
2016
€’000
€’000
Domestic		- Board17
13-		
Employees
1,912
1,735

International		Consultancy Costs		- Board4
9
Consultancy Costs include the cost of external advice to management and exclude- Employees
1,052
1,005
outsourced ‘business as usual’ functions.			
2,985
2,762
2017
2016
		
€’000
€’000
Hospitality Expenditure		
Legal Advice
115
24
The Income and Expenditure Account includes the following
Commercial & Technical Evaluation and Studies
352
245
hospitality expenditure:		Financial / Actuarial Advice
6
2017
2016
Human Resources
23
12
€’000
€’000
Business Improvement
20
8Domestic		
Other
39
10
- Board549
305- Employees
66		International
Consultancy costs capitalised- BoardConsultancy costs charged to the Income
Employees
and Expenditure and Retained Revenue Reserves
549
305
6
6
549
305
		

21

Financial
Statements

22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 the Industrial
Development Agency Ireland for the year ending 31
December 2017 as required under the provisions ofparagraph 7 of the first schedule of the Industrial
Development Act 1993. The financial statements comprise– the statement of income and expenditure andretained revenue reserves– the statement of comprehensive income– the statement of financial position– the statement of cash flows and– the related notes, including a summary ofsignificant accounting policies.
In my opinion, the financial statements give a true and fairview of the assets, liabilities and financial position of theIndustrial Development Agency Ireland at 31 December
2017 and of its income and expenditure for 2017 inaccordance 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 inaccordance with the International Standards on Auditing(ISAs) as promulgated by the International Organisationof Supreme Audit Institutions. My responsibilities underthose standards are described in the appendix to thisreport. I am independent of the Industrial Development
Agency Ireland and have fulfilled my other ethicalresponsibilities in accordance with the standards.
I believe that the audit evidence I have obtained issufficient and appropriate to provide a basis for my opinion.
Report on information other than the financial
statements, and on other matters
The Industrial Development Agency Ireland haspresented certain other information together with thefinancial 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.

Seamus McCarthy
Comptroller and Auditor General
25th May 201823

Appendix to the report
Responsibilities of Board members
The governance statement and Board members’ report sets
out the Board members’ responsibilities. The Board members
are responsible for–the preparation of financial statements in the form
prescribed under paragraph 7 of the first schedule ofthe Industrial Development Act 1993–
ensuring that the financial statements give a true andfair 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 toenable the preparation of financial statements that are
free from material misstatement, whether due to fraud
or error.

–––

Responsibilities of the Comptroller and Auditor General
I am required under paragraph 7 of the first schedule of theIndustrial Development Act 1993 to audit the financial
statements of the Industrial Development Agency Irelandand to report thereon to the Houses of the Oireachtas.
My objective in carrying out the audit is to obtain reasonableassurance about whether the financial statements as a whole
are free from material misstatement due to fraud or error.
Reasonable assurance is a high level of assurance, but is nota 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 areconsidered 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 misstatementof 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 formy opinion. The risk of not detecting a material
misstatement resulting from fraud is higher thanfor one resulting from error, as fraud may involve
collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
I obtain an understanding of internal control relevantto the audit in order to design audit procedures thatare appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectivenessof the internal controls.
I evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimatesand related disclosures.
I conclude on the appropriateness of the use of thegoing concern basis of accounting and, based on theaudit evidence obtained, on whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Industrial
Development Agency Ireland ’s ability to continue asa 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, tomodify my opinion. My conclusions are based on theaudit evidence obtained up to the date of my report.
However, future events or conditions may cause
Industrial Development Agency Ireland to cease tocontinue as a going concern.
I evaluate the overall presentation, structure andcontent of the financial statements, including thedisclosures, and whether the financial statements
represent the underlying transactions and eventsin a manner that achieves fair presentation.

I communicate with those charged with governance regarding,among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant
deficiencies in internal control that I identify during my audit.

Information other than the financial statements
My opinion on the financial statements does not cover theother 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 otherinformation is materially inconsistent with the financial
statements or with knowledge obtained during the audit,
or if it otherwise appears to be materially misstated. If,
based on the work I have performed, I conclude that there
is a material misstatement of this other information, I am
required to report that fact.
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 there arematerial matters relating to the manner in which publicbusiness has been conducted.
I seek to obtain evidence about the regularity of financialtransactions in the course of audit. I report if there is any
material instance where public money has not been applied
for the purposes intended or where transactions did notconform to the authorities governing them.
I also report by exception if, in my opinion,–
I have not received all the information andexplanations 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 withthe accounting records.

24

Statement on Internal Control
Scope of Responsibility
On behalf of the Board of IDA I acknowledge our responsibility forensuring that an effective system of internal control is maintained
and operated by the Agency. This responsibility takes account of
the requirements of the Code of Practice for the Governance ofState Bodies (2016).
Purpose of the System of Internal Control
The system of internal control is designed to manage risk to atolerable 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, andthat material errors or irregularities are either prevented or would
be detected in a timely way.
The system of internal control, which accords with guidance issued
by the Department of Public Expenditure and Reform has been inplace in IDA for the year ended 31 December 2017 and up to thedate 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 acircular in relation to management of and accountability for grants
from exchequer funds. This requires that grantors stipulate that grantrecipients disclose specific information in their financial statements.
This includes details of the grant amount, the purpose for which funds
were applied and information on salary rates in operation in theentity. IDA sought a waiver from these requirements from the
Department of Business, Enterprise and Innovation, 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, with financial and audit
expertise, one of whom is the Chair. The AFRC met four times in 2017.
IDA has an outsourced internal audit function, which reports directly
to the AFRC, is adequately resourced and conducts a programme ofwork agreed with the AFRC.

The AFRC has developed a risk management policy which setsout its risk appetite, the risk management processes in place anddetails 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 andcontrols within their own area of work.
Risk and Control Framework
IDA has implemented a risk management system which identifies andreports 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 andthese have been identified, evaluated and graded according to theirsignificance. The register is reviewed and approved by the AFRC andthe Board on an annual basis. The outcome of these assessments isused to plan and allocate resources to ensure risks are managed toan acceptable level.
The risk register details the controls and actions needed to mitigate
risks and responsibility for operation of controls assigned to specificstaff. 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 levelwith corresponding accountability,- 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 informationand communication technology systems,- there are systems in place to safeguard the assets, and- control procedures over grant funding to outside agencies ensure
adequate control over approval of grants and monitoring andreview of grantees to ensure grant funding has been applied forthe purpose intended.
Ongoing Monitoring and Review
Formal procedures have been established for monitoring control
processes and control deficiencies are communicated to those
responsible for taking corrective action and to management andthe Board, where relevant, in a timely way. I confirm that thefollowing ongoing monitoring systems are in place:- key risks and related controls have been identified and processes
have been put in place to monitor the operation of 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 andannual performance and financial reports which indicate
performance against budgets/forecasts.
Procurement
I confirm that IDA has procedures in place to ensure compliancewith current procurement rules and guidelines and that during
2017 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’s monitoring andreview of the effectiveness of the system of internal control isinformed by the work of the internal and external auditors, theAudit, Finance and Risk Committee which oversees their work,and the senior management within IDA responsible for thedevelopment and maintenance of the internal control framework.
I confirm that the Board conducted an annual review of theeffectiveness of the internal controls for 2017.
Internal Control Issues
No weaknesses in internal control were identified in relation to 2017that require disclosure in the financial statements.

Signed on behalf of the Board

Frank Ryan
Chairman23rd May 201825

Statement of Income & Expenditure& Retained Revenue Reserves

For Year Ended 31 December 2017		
20172016			Amounts shown under Income
Notes
€’000
€’000
and Expenditure are in respectof continuing activities. The
Income									Statement of Income andOireachtas Grants
2
174,803
155,515		
Expenditure and Retained
National Training Fund
33,000
3,000			Revenue Reserves includes
Grant Refunds
4
5,031
346			
all gains and losses recognised
Rental Income		
1,132753			
in the year.
Other Income
52,275
2,286			Profit on Disposal of Assets
6
1,852
1,333			The Statement of Cashflows andNet Deferred Pension Funding
19 (f)
7,654
6,138
notes 1 to 25 form part of these		
195,747
169,371
Financial Statements.
										Expenditure									On behalf of the Board of IDA:
Grants Payable
7
91,335
95,613		
Promotion, Administration and General Expenses
8
48,06345,509		Date: 23rd May 2018
Industrial Building Charges
9
1,546
4,758		Depreciation Charges
10
4,740
7,749			Impairment Charges / (Reversals)
10(12,943)(36,064)			
Pension Costs
19 (c)
8,211
6,511
Frank Ryan		
140,952
124,076
Chairman
Surplus for the Year before Appropriations		
54,79545,295		
Contribution to the Exchequer
11(331)			Transfer (to) Capital
12(20,971)(40,552)
Surplus for the year after Appropriations		
33,824
4,412

Martin Shanahan
Chief Executive

Balance Brought Forward at 1 January		
960(3,452)										Balance Carried Forward at 31st December 2017		
34,784960
Anne Fitzsimons										Chairman
Audit, Finance & Risk Committee																																																										

26Statement of Comprehensive Income

For Year Ended 31 December 2017		
20172016			The Statement of Cashflows andnotes 1 to 25 form part of these
Notes
€’000
€’000
Financial Statements.
Surplus before Appropriations		

54,79545,295			

Experience (loss) / gain on retirement benefit obligations

19 (d)

19

Change in assumptions underlying the present value of retirement benefit obligations

19 (d)(4,114)(27,764)			

Total actuarial (loss) in the year		(4,095)(27,647)			

Adjustment to deferred retirement benefits funding		

4,095

27,647			

117		

On behalf of the Board of IDA:
Date: 23rd May 2018

Frank Ryan
Chairman

Other Comprehensive Income for the year		
54,79545,295															Martin Shanahan										Chief Executive																																								Anne Fitzsimons
Chairman
Audit, Finance & Risk Committee

27

Statement of Financial Position

As at 31 December 2017		
20172016			The Statement of Cashflows and
Notes
€’000
€’000
notes 1 to 25 form part of these
Financial Statements.
Tangible Fixed Assets										Industrial Property
13
173,799
152,724								On behalf of the Board of IDA:
Other Fixed Assets
14488592										174,287
153,316								Date: 23rd May 2018
Intangible Assets 										Telecommunication Assets
15-								Total Tangible and Intangible Assets		

174,287

153,316							Frank Ryan
Current Assets										Chairman
Receivables
16
26,425
15,340						Cash and Cash Equivalents		
16,273
6,993										42,69822,333						Current Liabilities										Martin Shanahan
Payables17(3,975)(9,082)							Chief Executive
Net Current Assets		
38,723
13,251							Long Term Receivables											Anne Fitzsimons
Receivables: amounts falling due after more than one year16
129139								Chairman
Audit, Finance & Risk CommitteeLong Term Payables											-								Payables: amount falling due after more than one year
17
Provisions											Provisions for Liabilities and Charges
18(4,068)(12,430)								Pensions											Deferred Pension Funding Asset
19 (f)
151,667
139,918								Pension Liability
19 (e)(151,667)(139,918)								Total Net Assets		
209,071
154,276								Representing:											Capital Account12
174,287
153,316								Retained Revenue Reserves		
34,784960										209,071
154,27628

Statement of Cash Flow

For Year Ended 31 December 2017		
20172016			
Notes
€’000
€’000
Net Cash Flows From Operating Activities									Excess Income over Expenditure		
54,79545,295		
(Increase) / Reduction in Value of Fixed Assets									- Industrial Property
10(8,561)(28,651)		
- Other Fixed Assets & Telecommunication Assets
10
358
336
Expenditure Capitalised
8 (a)
(360)
(250)		Profit on Disposal of Assets
6(1,852)(1,333)		
Bank Interest
5
(1)
(4)		
Contribution to the Exchequer
11(331)		
(Increase) in Receivables amounts falling due within one year
16
(11,085)(1,271)		
(Decrease) / Increase in Payables amounts falling due within 1 year17
(5,107)2,428		
(Decrease) in Provisions and Charges
18(8,362)(4,896)		
Decrease in Receivables amounts falling due after more than one year
16
10
71		
(Decrease) in Accounts Payable amounts falling due after more than one year17
(3,000)		
										Net Cash Inflow from Operating Activities		
19,8358,394												Cash Flows from Investing Activities									Acquisitions		
(18,361)(15,431)		
Disposals		
7,805
4,777		Net Cash Flows from Investing Activities		
(10,556)(10,654)		
										Cash Flows From Financing Activities									Bank Interest Received		
1
4		
Net Cash Flows from Financing Activities		
14												Net Increase / (Decrease) in Cash and Cash Equivalents		
9,280(2,256)		
Cash and cash equivalents at 1 January		
6,993
9,249		Cash and Cash Equivalents at 31 December		
16,273
6,993																						

29Notes to the Financial Statements
1

Accounting Policies

The basis of accounting and significant accounting
policies adopted by IDA are set out below. They haveall been applied consistently throughout the year
and the preceding year:(A) GENERAL INFORMATIONThe Industrial Development Agency (IDA) Ireland
was established on 1 January 1994 under theprovisions of the Industrial Development Act, 1993.
IDA Ireland’s head office is located at Wilton Park
House, Dublin 2. IDA Ireland is a Public Benefit Entity(PBE). A Public benefit entity provides goods orservices for the general public, community or social
benefit and where any equity is provided, it is tosupport the entity’s primary objectives rather thanwith a view to providing a financial return to equity
providers, shareholders or members.
IDA Ireland’s primary objective as set out in Part II S8 of
the Industrial Development (IDA Ireland) Act 1993 is:- to promote the establishment and development,		 in the State, of industrial undertakings from outside		 the State.
- to make investments in and provide supports to		 industrial undertakings which comply with the		 requirements of the enactments for the time		 being in force.
- to administer such schemes, grants and other		 financial facilities requiring the disbursement of		 European Union Funds and such other funds as may		 from time to time be authorised by the Minister for		 Public Expenditure and Reform, and to carry out
		 such other functions as may from time to time be		 assigned to it by the Minister.
(B) STATEMENT OF COMPLIANCE
		 AND BASIS OF PREPARATIONThe Financial Statements have been prepared inaccordance with the historical cost convention,
modified in compliance with Financial ReportingStandard 102 (FRS 102) issued by the Financial

Reporting Council in the form approved by the
Minister for Business, Enterprise and Innovation
with the consent of the Minister for Public
Expenditure and Reform.
The presentation currency of the Financial Statementsof IDA Ireland is in Euro. The functional currency of
IDA Ireland is considered to be Euro as it is the primaryeconomic 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 arerecognised on a cash receipts basis.
		 Refunds of Grants Paid
Grants paid become refundable in certain
circumstances, such as liquidation / dissolution of therecipient company, or if the conditions of the grant are
not met. Grant refunds are recognised when it isprobable that the money will be received by IDA andthe amount can be estimated reliably; therefore they
are accounted for on an accruals basis.
		 Interest Income
Interest income is recognised on an accruals basis
using the effective interest rate method.
		 Rental Income
Rents comprise amounts due under the terms of leaseagreements for periods of up to 35 years entered into
between the Agency and tenants, charges for the useof 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.

For Year Ended 31 December 2017
(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 notpassed at the year end.
(iv) Vacant property available for industrial promotion orin the course of sale where title had not passed at theyear end.
(v) Other Fixed Assets including computer and officeequipment and fixtures and fittings.
Tangible Fixed Assets are stated at cost lessaccumulated depreciation and provision for
impairment. Depreciation is provided on all tangible
assets, other than land at rates calculated to write off
the cost, less estimated residual value, of each asset
on a straight line basis over the estimated useful lives
as follows :(i) Buildings		
3 % per annum(ii) Site Development
10 % per annum(iii) Office Equipment /Fixtures & Fittings
20 % per annum(iv) Computers
33 % per annum(v) Land		
0 % per annum
Residual value represents the estimated amount which
would currently be obtained from disposal of an asset,
after deducting estimated costs of disposal, if theasset were already of an age and in the condition
expected at the end of its useful life.
				 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,30

Notes to the Financial Statements (continued)
as appropriate, if events or changes in circumstancesor economic conditions indicate that the carrying
amount of the assets may not be fully recoverable.
Any such provisions will be recognised in theStatement of Income and Expenditure and Retained
Revenue Reserves in the year in which they are made.
Where a subsequent review indicates that thecircumstances which gave rise to a provision for
impairment no longer exists or have changed
materially the accumulated provision for impairment
will be reduced accordingly.
If there is objective evidence of impairment of thevalue of an asset, an impairment loss is recognised in
the Statement of Income and Expenditure andRetained Revenue Reserves in the year.
Reversals of impairments in previous years areaccounted for through the Statement of Income andExpenditure and Retained Revenue Reserves.
The cost of land, site development and industrial
property includes an apportionment of administration
costs associated with the acquisition or developmentof the assets.
(F) INDUSTRIAL PROPERTY
Industrial Property included in tangible fixed assets
has been acquired, developed or constructed for the
purposes of assisting in the promotion anddevelopment of industry and is not considered to
be investment property but normal fixed assets.
By way of memorandum Income and Expenditure in
respect of Industrial Property transactions are set out
in note 22 to the Financial Statements.
(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.

(H) RECEIVABLES
Receivables are recognised at fair value, less aprovision for doubtful debts. The provision for
doubtful debts is a specific provision, and isestablished 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 arerecognised in the Statement of Income andExpenditure 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, forperiods of up to 35 years, entered into between the
Agency and tenants, charges for the use of
undeveloped lands and estate maintenance charges
billed to tenants.
(iii) Fees from purchase options given on IDA property,
deposits paid by IDA for the purchase of property
where title had not passed to the Agency at 31
December, and the provision of other services.
(iv) Amounts due in respect of the disposal or leasingof telecommunication assets.
(v) Amounts due in respect of joint arrangements.
(vi) Amounts due in respect of loans advanced andinterest thereon.
(I) 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.
(J)		 PROVISIONS FOR LIABILITIES AND CHARGES		COMPRISE:(i) Amounts provided in respect of potential costs
associated with the dilapidations provision ofoperating leases.
(ii) Amounts provided where the future costs arising

For Year Ended 31 December 2017
under operating leases are estimated to exceed theamounts recoverable from sub lessees.
(K) FOREIGN CURRENCIES
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rates rulingat the Statement of Financial Position date. Revenues
and costs are translated at the exchange rates rulingat the dates of the underlying transactions.
Profits and losses arising from foreign currencytranslations and on settlement of amounts receivableand payable in foreign currency are dealt with in theStatement of Income and Expenditure and Retained
Revenue Reserves.
(L) LEASESThe rentals under operating leases are dealt with in
the Financial Statements as they fall due. In the caseof industrial property available for promotion aprovision is made, where applicable, for future rental
payments by the Agency.
(M) EMPLOYEE BENEFITS
		Short-term Benefits
Short term benefits such as holiday pay are recognised
as an expense in the year, and benefits that are
accrued at year-end are included in the Payables
figure in the Statement of Financial Position.
		Retirement Benefits
The Industrial Development (Forfás Dissolution) Act
2014 (No 13 of 2014) which was passed into law on
16th July 2014 made provision for the dissolution of
Forfás and provided for: the establishment of IDA
Ireland, Enterprise Ireland and Science Foundation
Ireland as separate legal employers; each agency
developing its own pension scheme noting that staff
who are/were members of the Forfás Pension Scheme

31

Notes to the Financial Statements (continued)
join the new Agency Schemes on superannuation
terms no less favourable than those they enjoyedunder the Forfás Scheme immediately before the dateof transfer, agencies’ own staff becoming members ofthese schemes; and these agencies accounting for the
associated Pension Liabilities under FRS102. The
Department of Business Enterprise and Innovation
assumes legal responsibility for the existing Forfás
pension schemes, pensioners and former staff withpreserved benefits.
Under the Public Service Pensions (Single Scheme andother provisions) Act 2012 new entrants to the PublicService on or after 1 January 2013 become membersof the Single Public Service Pension Scheme.
IDA has the full legal responsibility for its employees
as their legal employer. This includes responsibility forthe 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 go basis from monies available to it, including
monies provided by the Department of Business,
Enterprise and Innovation and from certain
contributions deducted from staff salaries.
Pension costs reflect pension benefits earned by
employees in the period and are shown net of retained
staff pension contributions. An amount corresponding
to the pension charge is recognised as income to theextent 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 a corresponding adjustment is recognised

For Year Ended 31 December 2017
Impairment reviews of assets
Assets that are subject to amortisation are reviewed
for impairment whenever events or changes incircumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised
for the amount by which the asset’s carrying amountexceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costto sell and value in use.

in the amount recoverable from the Department of
Business, Enterprise and Innovation.
Pension liabilities represent the present value of future
pension payments earned by staff to-date. Deferredpension funding represents the corresponding asset tobe recovered in future periods from the Department of
Business, Enterprise and Innovation.
Pension scheme liabilities are measured on an
actuarial basis using the projected unit credit method.
(N) CRITICAL JUDGEMENTS, ESTIMATES AND		ASSUMPTIONSIn the application of IDA Ireland’s accounting policies,
management are required to make judgements,
estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily
apparent from other sources. The estimates andassociated assumptions are based on historicalexperience and other factors that are considered tobe relevant. Actual results may differ from theseestimates.
The estimates and underlying assumptions arereviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which theestimate 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 themost significant effect on amounts recognised in thefinancial statements:
		Residual values and depreciation of assets
Management have reviewed the asset lives andassociated residual values of all fixed asset classes, andhave concluded that asset lives and residual values areappropriate.

		Retirement benefit obligation
The assumptions underlying the actuarial valuations
for which the amounts recognised in the financial
statements are determined (including discount rates,
rates of increase in future compensation levels andmortality rates) are updated annually based on current
economic conditions, and for any relevant changes tothe terms and conditions of the pension and postretirement plans.
The assumptions can be affected by:
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(i)		Provisions
The Agency makes provisions for legal andconstructive obligations, which it knows to beoutstanding at the period end date. These provisions
are generally made based on historical or otherpertinent information and adjusted for recent trends
where relevant. However, they are estimates of thefinancial costs of events that may not occur for someyears. As a result of this and the level of uncertainty
attaching to the final outcomes, the actual out-turn
may differ significantly from that estimated.

32

Notes to the Financial Statements (continued)
2

Oireachtas Grants 							The Oireachtas Grants are provided under section 35 of the Industrial Development(Science Foundation Ireland) Act 2003. The aggregate amount provided to IDA in
respect of Grants for Industry and Grants for Industrial Property in the period
1 January 1994 to 31 December 2017 was €2.642bn.			
						The Oireachtas Grants as shown in the Financial Statements consist of the following
sums paid from Vote 32 - Business, Enterprise and Innovation:
			
2017
2016
			
€’000
€’000
Grants for Promotion and
Administration Expenditure Vote 32 - Subhead A5 (i)40,80339,865Grant for Industry
Vote 32 - Subhead A5 (ii) 97,000
92,756
Grant for Industrial Property Vote 32 - Subhead A5 (iii) 37,000
22,894
			
174,803
155,515
				
The Grant for Promotion and Administration Expenditure of €40.803m is stated
net of employee pension contributions of €927,484 (€943,538 - 2016) remitted
to the Exchequer.					3For Year Ended 31 December 2017

5

Other Income
2017
2016
		
€’000
€’000
Private sector sublets of Leased Office Accommodation
1,912
1,917
Bank Interest
1
4
Fee Income in respect of Undeveloped Lands
260
251
Interest on Industrial Property Transactions
18
54
Sundry Income
84
60
		
2,275
2,286
				
				
6 Profit on Disposal of Assets
2017
2016
		
€’000
€’000
Consideration (net of fees and direct expenses)
7,805
4,777
Historical Costs(11,205)(7,598)
Write back of provision for impairment
2,244
1,071
Write back of provision for depreciation
3,008
3,083
		
1,852
1,333
			
The profit on disposal disclosure comprises of profits of €2.897m, losses of €1.045m
resulting in net profits on disposals of €1.852m.			
		

National Training Fund					Included in the training grant payments of €12.702m (see note 7) are training grant 		
payments of €3m (€3m in 2016) which were met with funds received through the 		
7 Grants Payable
2017
2016
Department of Business, Enterprise and Innovation from the National Training 		
		
€’000
€’000
Fund, which is administered through the Department of Education & Skills Subhead 		
Capital10,006
19,504B3. Payments made are in compliance with the statutory requirements of the Fund
Employment
13,983
18,979as provided for in section 7 of the National Training Fund Act, 2000.			
R&D
54,251
44,765												 Training
12,702
9,729
4 Grant Refunds								 Other Grants
393
2,636
When the conditions of a grant agreement are breached by a client company,
		
91,335
95,613the grant is recoverable. During the year the Agency recovered €5.031m (€346k in				2016) relating to grant refunds.																							

33Notes to the Financial Statements (continued)
8

For Year Ended 31 December 2017

Promotion, Administration and General Expenses

8 (d)
2017
2016
Key Management Personnel
		
(a)
€’000
€’000
Key Management personnel in IDA consists of the members of the Board, the Chief 		Board members’ fees, expenses and remuneration
300
279
Executive Officer and the Divisional Managers. The total value of employee benefits 		
Other remuneration costs
24,377
24,346for key management personnel is set out below:
Marketing, consultancy, promotions and
		
2017
2016
advertising - see 8 (b)11,322
10,022€’000€’000
General administration
12,483
11,042
Basic Pay
1,232
1,193
Audit fee
53
50
Allowances
Provision for doubtful debts(112)
20
Termination
benefits
Less: Capitalisation of expenditure associatedHealthInsurancewith industrial property development
(360)
(250)
		
1,232
1,193
		
48,06345,509
				
8 (b)
2017
2016
8 (e)
2017
2016
Other remuneration costs comprise:
€’000
€’000
Chief Executive Remuneration€€
Staff short-term benefits
22,98823,043Mr Martin Shanahan
171,407168,210
Employers contribution to social welfare
1,389
1,303
Total
171,407168,210
Termination Benefits		Retirement benefit costs
The Chief Executive Officer (CEO) receives an annual salary of €172,473 (pro rata). 		
		
24,377
24,346The CEO’s pension entitlement does not extend beyond the standard public sector 					
pension arrangements.			
The total number of staff employed (WTE) at year end was 280 (2016 : 259).
				
8

(c)
Staff Short Term Benefits
Basic Pay
Overtime
Allowances
		

2017
€’000
22,97810
22,9882016€’000
23,033
10
23,043

In 2017, €823,000 of pension levy has been paid over to the Department of Business,
Enterprise and Innovation.

8(f)
Annual Rent Payable in respect of Leased Office Accommodation				
Number of
Lease Expiry
Gross Rent
Net Rent		
Offices
Date
PayablePayable 2017*
				
€’000
€’000
Head Office
1
2019
4,625
2,043
Regional Offices 42020-2028
332
332
Overseas Offices 18
2018-2026
2,125
2,125
				
7,082
4,500
		
*This takes account of amounts received from other State bodies and private
tenants that occupy part of the office buildings concerned.			
(i)		In the case of Head Office and ten overseas offices, accommodation is			co-located with other State Agencies and / or the Irish Government Missions.		
(ii) Three overseas leases were renewed in 2017.			
(iii) One regional office lease contains break clauses in 2018 or 2019.		
(iv) The Agency does not own any property which is used or available34
		
for the accommodation of its staff.

Notes to the Financial Statements (continued)

For Year Ended 31 December 20178(g)Commitments under Operating Leases
At 31 December the commitment under operating leases is €17.225m. These leases will expire as follows:					2017			2016						€’000			
€’000			
		Non-Industrial
Industrial Property
Industrial Property
Non-Industrial
Industrial Property
Industrial 				
Property
Occupied under
Available for
Property
Occupied under
Property Available					leasesPromotion		leasesfor Promotion		
within one year
7,082
32
76
6,955
765
1,458 		in the second to fifth years inclusion
8,307
21
38
13,950117295		
more than 5 years
1,669
2,663
-		
		
17,05853
114
23,568882
1,753										11 Contribution to the Exchequer 		
By agreement with the Department of Business, Enterprise and Innovation receipts 		
from promotion and administration activities, grant refunds, ESF receipts, the sale ofindustrial property and income derived from the sale and or leasing of 		
telecommunication assets to the extent that they exceed the Agency’s expenditure 		
requirements, are refundable to the Exchequer. Contributions paid to the Exchequerin 2017 amounted to €Nil (€331k in 2016):					 20172016					 €’000€’000
10 Reduction in Value of Fixed Assets		
Administration				
331
			
2017
2016
Grant Refunds				
		
Notes
€’000
€’000
Telecommunication Assets				
Depreciation Charges		
					
331
- Industrial Property
13
4,382
7,413
			
- Other Fixed Assets
14
358
336
12 Capital		Impairment Charges / (Reversals)		
				 2017		2016
- Industrial Property
13(12,943)(36,064)
		
Notes
€’000
€’000
€’000
€’000
			
(8,203)(28,315)
At 1 January			
153,316		112,764
					Net Movements on:		Depreciation is calculated in order to write off the cost of assets less, where applicable,- Industrial Property
13
21,075		40,636		
any impairment provision over their estimated remaining useful lives. No provision for- Other Fixed Assets
14(104)		
(84)		
depreciation is made in respect of land or investments.
Transfer from Statementof Income and Expenditure
Impairment charges arise where the book value of Industrial Property or 		and Retained Revenue Reserves			 20,971		40,552
Telecommunications Assets exceed their estimated recoverable value. Impairment 		
At 31 December			
174,287		153,316
reversals arise where there is clear evidence that the recoverable value of Industrial 									Property or Telecommunications Assets exceed their book value, up to the amount of							35the original impairment.
													
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 promotable industrial
		buildings held by IDA. Costs comprise: professional, legal and consultancy costs		€2.176m [2016 €1.64m], net operating lease costs €1.841m [€3.966 - 2016] and		business park maintenance costs €5.891m [2016 €4.048m], reduced by the net
		movement on provisions in respect of operating leases (as set out in note 18)€8.362m [2016 €4.896m].			

Notes to the Financial Statements (continued)

For Year Ended 31 December 201713 Tangible Fixed Assets - Industrial Property 				
2017
		
Land
Site
Industrial
			 DevelopProperty			ment
Occupied				 under Leases
Cost
€’000
€’000
€’000
At 1 January
Additions
Transfers
Disposals
At 31 December

263,858
123(996)
262,985

Provision for Impairment		
At 1 January
136,288
Charge/(Reversal)
for Year(12,052)
Transfers
Disposals(135)
At 31 December 124,101

Industrial
Property
Available for
Promotion
€’000

Total

€’000

2016

Land
Site
Industrial		Developroperty		ment
Occupied			 under Leases
€’000
€’000
€’000

Industrial
Property
Available for
Promotion
€’000

Total

€’000

152,374
3,406(3,029)152,751

20,701
4,899(2,441)
23,15918,895
14,938(4,899)(4,709)24,225455,828
18,467(11,175)
463,120

264,446
3,571(4,159)263,858

152,702
2,736(3,064)
152,374

22,795(1,952)(142)
20,701

7,821
9,122
1,952
18,895447,764
15,429(7,365)455,828

1,938

5,038

1,565

144,829

167,149

7,836

5,962

1,017

181,964

(891)
(537)
510

(1,549)
3,489

(23)
1,542

(12,943)(2,244)
129,642(29,790)(5,898)(1,071)		
136,288
1,938

(376)
(548)
5,038

548
1,565

(36,064)(1,071)
144,829

Provision for Depreciation
At 1 January
145,278
12,138859
158,275
141,447
13,132(867)
153,712Charge for Year
3,243
167
972
4,382
6,543
225
645
7,413
Transfers
180(180)(1,081)
1,081
Disposals(2,079)(279)(620)(2,978)(2,712)(138)(2,850)At 31 December
146,442
12,206
1,031
159,679
145,278
12,138859
158,275
			Net Book Amount		At 31 December 138,884
5,799
7,464
21,652
173,799
127,570
5,158
3,525
16,471
152,724
At 1 January
127,570
5,158
3,525
16,471
152,724
97,297
3,419
3,701
7,671
112,088
			
					
Net Movement for Year					21,075					40,636
				(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.

36

Notes to the Financial Statements (continued)
2017
14 Other Fixed Assets						
Office and Computer		Equipment, Fixtures			& Fittings
Cost		
At 1 January		
Additions		
Transfer from other state agency
Disposals		
At 31 December					Provision for Depreciation		At 1 January
Charge for Year
Disposals		
At 31 December		For Year Ended 31 December 2017
2016
Office and Computer
Equipment, Fixtures& Fittings

Total

		
Motor Vehicles
		
			

€’000
10,596254(30)
10,820€’000
10,596254(30)
10,820€’000
10,565252(221)
10,596€’000
10,577252(233)
10,596

10,004358(30)
10,332

10,004358(30)
10,332

Cost€’000
At 1 January
12
Additions
Transfer from other state agency
Disposals(12)
At 31 December					Provision for Depreciation		At 1 January
12
Charge for Year
Disposals(12)
At 31 December
-

9,889
336
(221)
10,004

9,901
336
(233)
10,004

Net Book Amount		At 31 December
At 1 January
Net Movement for Year
-

592
676
(84)

592
676
(84)

Net Book Amount		At 31 December		
488
488
					
At 1 January		
592
592
Net Movement for Year
(104)
(104)

Total

37

Notes to the Financial Statements (continued)

For Year Ended 31 December 201715 Telecommunication Assets		
17 Payables			
Acting pursuant to a Government decision IDA Ireland, in conjunction with the 		
			
2017
2016
Department of Public Enterprise (now the Department of Communications, Energy 		Amounts falling due within one year:
€’000
€’000
and Natural Resources), entered into contracts in 1999 for the purchase of 		
Accounts Payable and Accruals
3,716
8,857
telecommunication assets in the form of an indefeasible right of use of a designated
Amount due on Uncompleted Sales
259
225
		portion of a global telecommunications network for a period of 25 years from 2000.
			
3,975
9,082
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 		Amounts falling due after more than one year:		
written off by way of an impairment charge of €21m in 2002 and aggregate 		Amounts due in respect of lease exit
depreciation of €17.85m over 8 years from 2000, resulting in a net book value of €Nil.
			
3,975
9,082
				 		16 Receivables		
		
2017
2016
18 Provision for Liabilities and Charges
Amounts falling due within one year:
€’000
€’000
			
2017
2016
Accounts Receivable and Prepayments
27,585
16,612
Operating Leases Provision
€’000
€’000
Provision for Doubtful debts(1,159)(1,271)
1st January
12,43017,326
Amounts due in respect of disposal
Net (reduction) for the year
(8,362)(4,896)of Industrial Property(1)(1)
Total at 31st December
4,068
12,430Interest Receivable		
26,425
15,340The Operating Leases Provision comprises:
Amounts falling due after more than one year:		
Potential building reinstatement costs associated with obligations under 		
Amounts due in respect of disposal of Industrial Property 129139
		
operating leases.
		
26,554
15,479Future costs arising under operating leases estimated to exceed the amounts 				
recoverable from sub lessees.			
The Accounts Receivable and Prepayments figure of €27.585m includes an amount			of €5.02m in respect of a Board approved payment of €5.02m to Sligo County Council
to assist in the funding of a road development in Sligo Town. The road will enhance 		
access to lands owned by the Agency for the development of a business park. Also 		
included in receivables and prepayments are amounts of €15m in down payments onproperty transactions, mainly reflecting payments into solicitors’ escrow accounts onproperty purchases, anticipated to be completed in early 2018.		
				
				
				
				

38

Notes to the Financial Statements (continued)

For Year Ended 31 December 201719 Pensions		
(b) Pension Disclosure under FRS102			(a)			
Financial Reporting Standard 102 (FRS102) requires financial statements to reflect at
IDA has responsibility for the pension costs of staff retiring from IDA post 16th July 		
fair value the assets and liabilities from an employer’s superannuation obligations and2014, under the Industrial Development (Forfás Dissolution Act 2014). Staff who are/any related funding and to recognise the costs of providing superannuation benefits
were members of the Forfás Pension Scheme join the new IDA Scheme on 		in the accounting periods in which they are earned by employees.		
superannuation terms no less favourable than those they enjoyed under the Forfas 		
Scheme immediately before the date of transfer from Forfás to IDA. The IDA scheme(c) Analysis of Total Pension Charge
2017
2016
covers the following categories of staff in IDA:
		
€’000
€’000
Service costs
6,492
4,605
Staff Covered		Interest on Pension Scheme Liabilities
2,646
2,849
(a) Staff recruited up to 5 April 1995 who became pensionable after that date.		
Employee Contributions utilised in payment of Pensions
(927)
(943)
(b) Staff recruited after 5th April 1995 and before 1st January 2013.
		
8,211
6,511
		
(c) Staff recruited since 1st January 2013, who are members of the Single Public 		
		 Service Pension Scheme. 		
(d) Analysis of amount recognised in Statementof Comprehensive Income
2017
2016
Each of the Schemes include Spouses and Children’s schemes.
		
€’000
€’000
Experience (losses) / gains
19
117
The new Single Public Service Scheme (“Single Scheme”) commenced with effect from
Changes in assumptions (Losses)(4,114)(27,764)
1 January 2013. All new entrants to pensionable public service employment on or afterActuarial (Loss) / Gain
(4,095)(27,647)
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 		(e) Pension Liability
2017
2016
provisions) Act 2012. Pension liabilities in relation to those individuals employed 		
Change in Pension Schemes’ Liabilities
€’000
€’000
under the Single Public Service Scheme for less than 2 years have not been included
Opening Balance
139,918
106,133in the pension calculation as they will not have accrued pension rights until after
Current Service Cost
6,492
4,605
2 years service is attained.		
Interest Costs
2,646
2,849
				
Payments to Pensioners(1,484)(1,316)
IDA meets the net costs arising from normal retirements. These are paid out of current
Actuarial loss
4,095
27,647
income. Contributions received by IDA from staff in the contributory unfunded 		
Present Value of Schemes Obligations at 31 December
151,667
139,918				
schemes outlined above are used to part fund ongoing pension liabilities.
(f) Net Deferred Funding for Pensions in Year
2017
2016
Under the Financial Measures (Miscellaneous Provisions) Act 2009 the assets of the 		
		
€’000
€’000
Former Industrial Development Authority were transferred to the National Pension 		Funding Recoverable in respect of Current Year pension costs 9,138
7,454
Reserve Fund on 31 December 2009. The pension schemes associated with these two
Funding to pay Pensions(1,484)(1,316)
funds continue in force for existing members with no impact on benefits or associated 		
7,654
6,138
provision for members. IDA Ireland remits employee contributions to the Exchequer.
Total employee contributions of €927k for these schemes were remitted by IDA to the
Exchequer in 2017 and pension costs at retirement are paid by Oireachtas Grant Vote
No 32 subhead A5 (i). 		

39

Notes to the Financial Statements (continued)
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 the annual 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 2017 amounted to 		€151.667m (2016 - €139.918m). The quantification of the liability is based on the 		
financial assumptions set out in note 19(g). The assumptions used, which are basedon actuarial advice, are advised to the Department of Business, Enterprise and 		Innovation.
(g) Valuation
The valuation used for FRS102 disclosures has been based on a full actuarial valuation
at 31 December 2016. The financial assumptions used to calculate scheme liabilities
under FRS102 as at 31 December were as follows;			
Valuation method Projected Unit
2017
2016
2015
2014
Discount rate
1.95% p.a. 1.90% p.a.
2.70% p.a. 2.40% p.a.
Future salary increases
3.40% p.a. 3.35% p.a.
3.20% p.a. 2.75% p.a.
Future state pension increases 3.40% p.a. 3.35% p.a.
3.20% p.a. 2.75% p.a.
Future pension increases
2.90% p.a. 2.85% p.a.
2.70% p.a. 2.25% p.a.
Future Inflation
1.90% p.a. 1.85% p.a.
1.70% p.a. 1.25% p.a.
		Year of attaining age 65		
2017
2037
Life expectancy - male		
21.2
23.7
Life expectancy - female
23.7
25.8

For Year Ended 31 December 2017(h) History of defined Benefit Obligations - Commenced 2014
		
2017
2016
Year Ending 31 December
€’000
€’000
Defined Benefit Obligation
151,667
139,918
Experience gains / (losses) on Scheme Liabilities:
Amount19
Percentage of Scheme Liabilities
0.0%

117
0.1%

2015
€’000
106,133

2014€’000
96,987(666)(0.6%)

2,442
2.5%

Total (loss) / gain recognised in Statement of Comprehensive Income:		
Amount(4,095)(27,647)(4,198)2,041
Percentage of Scheme Liabilities(2.7%)(19.8%)(4.0%)
2.0%						
20 Commitments		
It is estimated that future payments likely to arise from Grant Commitments 		
amounted to €338m as at 31 December 2017 (2016 : €331m). Capital Commitments
outstanding at 31 December 2017 on contracts for the acquisition and developmentof Industrial Property amounted to €13m (2016 : €23m).
		
21 Taxation
Section 227 of the Taxes Consolidation Act, 1997, provides an exemption from tax forincome 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.
		In some countries in which the Agency operates, an exemption from local taxation has
been availed of under the Governmental Services article of the relevant double 		taxation agreement. This position continues to be under review by the Agency whichis actively seeking clarification to determine whether overseas employment taxes 		arise in any of the jurisdictions where this exemption has been availed of. The review
could result in a liability to taxes but in view of the uncertainty in relation to the 		amount, if any, of such possible contingent liability no provision has been made in thefinancial statements for the year ended 31 December 2017.

40

Notes to the Financial Statements (continued)
22 Industrial Property Income and Expenditure					 2017
Income:Notes€’000
Oireachtas Grant
2
37,000Rental Income IDA Ireland Client Companies		
1,132
Fee Income in respect of Undeveloped Lands
5260
Interest on Industrial Property Transactions
5
18
Profit on Disposal of Industrial Property		
1,852
			 40,262

2016
€’000
22,894
753
251
54
1,315
25,267

For Year Ended 31 December 201723 Related Party Disclosures
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 2017 two transactions required disclosure as the relevant 		
grant approvals and grant payments related to companies in which Board members 		
are employed or are otherwise associated. The transactions comprised one grant 		
Expenditure:		Promotion, Administration and General Expenses		
1,351
1,322
approval for €1.155m and one grant payment for €2.516m from grant approvals
to date.
Industrial Building Charges
9
1,546
4,758
Depreciation Charges and Provisions
10(8,561)(28,651)
		In cases of potential conflict of interest, Board members do not receive Board 					 (5,664)(22,571)
documentation or otherwise participate in or attend discussions regarding these 		transactions. A register is maintained and available on request of all such instances.
Net Movement for Year		
45,926
47,838Transfer (to) Capital
12(21,075)(40,636)
24 Contingent Liability
Contribution to Promotion and Administration activities		
24,851
7,202
IDA entered into an agreement with a service provider with the objective of winning 		foreign direct investments, primarily in small and medium sized enterprises, resulting
in the creation of sustainable jobs. On 25th March 2016 the agreement was extended
for a period of one year to enable the orderly wind down of the contract. In accordancewith the contractual 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. If the 		
number of jobs created and verified is less than provided for in the payment, a refund
will be sought and if the number of jobs created and verified is more than provided in
the payment, a further payment will be made. Following correspondence between 		parties, disputed matters have been referred to arbitration.
25 Approval of Financial Statements
The Financial Statements were approved by the Board on 10th May 2018.

41

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