IDA Ireland
Annual Report& Accounts
2020

www.idaireland.com

Contents
Chairman & CEO Overview			

01

Statistics			 10Environmental, Social and Governance			

15

Financial Statements			

18

Global Office Network			

46

Chairman &CEO Overview

01Chairman & CEO Overview
The last year has been an extraordinarily challenging one for the country andits citizens as the Covid-19 pandemic claimed lives and livelihoods. Ourthoughts are with all those who have been affected. We acknowledge those
who have been on the frontline of the public health response and those whohave provided essential services to keep the country functioning and inmotion at a time of unprecedented disruption and adversity.
During this period of dual health and economic crises, IDA Ireland has strived
to support the country and our client companies. The Agency has partneredwith client companies to safeguard employment within our existing base,while also seeking to identify and win new investment opportunities.
Remarkably, employment among IDA client companies grew in 2020 despite
the steepest global downturn in a generation. This was the result of resiliencein many of our key sectors of focus and the availability of unprecedented
Government support for companies that were negatively affected by thecrisis. Throughout the year, IDA worked constructively and successfully with
the Department of Enterprise, Trade and Employment (DETE) and acrossGovernment on the national response to Covid-19 including efforts to securevital supplies for the Health Service Executive (HSE) at the outset of the crisis
in 2020. More recently, IDA supported the Government’s High-Level Task
Force on Covid-19 Vaccination.
As we look forward to better days on the horizon as vaccine deployment
accelerates and restrictions gradually begin to ease, IDA remains steadfast in
its determination to partner with multinational companies (MNCs) to drive
economic recovery and sustainable growth in the coming years. Our new
strategy, Driving Recovery and Sustainable Growth sets a target for the
Agency to win 800 investments in total, to deliver half of these investments to
the regions and to support job creation of 50,000 over the next four years. We
are also renewing our focus on investment in training and upskilling andenvironmental sustainability to support the FDI base, and the wider economy,

02

amid accelerating technological and green transformations. The
implementation of IDA’s 2021-24 strategy, which will support key objectivesof the recently published Economic Recovery Plan, is now underway.
While the outlook is an uncertain one, we are encouraged by the strong
investment performance recorded over the first half of the year, which istestament to the resilience of companies in IDA’s core sectors of focus and to
the tireless work of the Agency’s teams in Ireland and overseas despite thepersonal and professional challenges of the pandemic.
With the ongoing support of our parent Department, Government, key
stakeholders and IDA client companies and notwithstanding the challenges
and uncertainties on the path ahead, FDI is well placed to remain a vital
contributor to Ireland’s prosperity and future success.

IDA response to Covid-19
In reacting rapidly to Covid-19 in early 2020, IDA’s priorities were to provide acontinuity of service to client companies and to ensure the safety and wellbeing of the IDA team in Ireland and overseas. The Agency successfully moved
to a virtual working environment in March 2020 and, in adverse
circumstances, proved resilient and flexible in continuing to deliver on our
mission to win and develop FDI as we adopted a ‘virtual first’ approach toclient engagement.
IDA carried out a structured client engagement process to understand how
existing companies were coping at the outset of the crisis and to identify
emerging issues for our policy team to address and where appropriate feedback into the Government system. The majority of companies within IDA’s
portfolio successfully implemented business continuity plans and adapted
well to difficult circumstances. Client companies embraced remote working

Chairman & CEO Overview (continued)
where possible, while those carrying out essential activities
on-site implemented various health and safety measures.
When the Annual Employment Survey (AES) was carried out
at the end of third quarter of 2020, 52% of employees in
IDA client companies were working remotely.
IDA client companies adversely affected by the crisis
availed of the unprecedented supports introduced by theGovernment, most notably the Wage Subsidy Scheme andits successor the Employment Wage Subsidy Scheme. IDA
also marketed the Covid-19 Products Scheme to clientcompanies throughout the year. The scheme, which is open
to both MNCs and SMEs, is designed to support theacceleration and upscaling of RD&I, infrastructure andproduction capacity for Covid-19 relevant products. IDA
collaborated with DETE and Enterprise Ireland on
developing the scheme and on securing its approval under
the European Commission’s Temporary State Aid
Framework. Such collaboration between IDA and a varietyof partners and stakeholders proved a common theme overthe course of the year and was central to our response.
To enable impactful conversations with client companies
on their growth agendas, IDA availed of a number of digitaltechnologies, many of which were put in place prior to themove to our new global HQ at Three Park Place in
September 2019. Remote site visits were facilitated tosupport the investment pipeline and our regional
development agenda. The building of IDA’s project pipeline
for 2021 was further supported by a world class, C-suite
focused marketing campaign, which the Agency was able

Frank Ryan
ChairmanMartin Shanahan
Chief Executive Officer

03

Chairman & CEO Overview (continued)
to develop due to additional promotional and marketing funding provided by
the Government under the July Stimulus and Budget 2021. IDA also held anumber of high-profile client events with senior Government representatives
including the Taoiseach, the Tánaiste, and the Minister for Finance, focused on
Ireland’s response to the crisis and plans for recovery.
Beyond our core mandate, IDA also sought to support the country’s responseto the pandemic in any way possible. IDA provided significant support for the
HSE in its immediate response to the public health crisis from March 2020.
Leveraging our international network, IDA assisted the HSE to source personal
protective equipment (PPE) and other critical care products in a challenging
global market characterised by unprecedented demand for these essential
goods. The Agency put our portfolio of properties at the disposal of the HSE in
the event they were required and fielded numerous offers of support from IDA
client companies to assist with the national response to Covid-19.

Resilient FDI performance in 2020
At a time of significant challenge for domestic market facing parts of theeconomy, the primarily export facing activities of FDI in Ireland proved
remarkably resilient during 2020. Total direct employment in IDA clientcompanies grew by 3.6% to reach a record 257,3941. An increase inemployment was recorded across most sectors, driven by Life Sciences andTechnology companies as demand for healthcare products remained robustand demand for the technologies and services that enable remote working
and the digital economy increased.
Job gains of 20,123 were slightly lower and job losses of 11,179 slightly higher
than in recent years, resulting in a net change in employment of 8,944 in
2020 compared to 14,847 in 2019. There was significant churn within our
104

DETE, Annual Employment Survey 2020

Content, Consumer and Business Services segment of companies with some
actively growing, such as online retail, while those with activities related toaffected sectors such as tourism and travel experienced a much morechallenging year. Other manufacturing recorded a decrease in employment,
reflecting difficulties in sectors such as automotive sub-supply related to
Covid-19 and accelerating trends such as automation.
IDA won a total of 246 investments in 2020, a slight decline on the previous
year but ahead of our expectations considering the sharp decline in global FDI
as a result of the pandemic. The 246 investments won consisted of 73
expansion investments by existing clients, 95 new name investments, 46
RD&I investments, 28 training investments and 4 environmental
sustainability investments. 128 investments – 52% of the total – were tolocations outside of Dublin. The share of investment projects from North
America at 67% in 2020 was higher than in recent years in part reflecting our
focus during the crisis to win investment from existing companies, themajority of which are North American in origin.

Impact of FDI
The strength of Ireland’s FDI base is a core national asset that has a sizeable
impact on the Irish economy and on society more broadly. In each corner ofthe country, companies supported by IDA provide good jobs, support otherjobs indirectly, enable labour mobility, purchase Irish goods and services andpromote innovation.
IDA client companies directly account for 12.4% of national employment,
while the combined direct and indirect employment associated with IDA
client companies amounts to 463,309. Direct Irish economy expenditure by
IDA clients totalled €25.2bn in 2019, including €15.1bn on payroll, €7.4bn on

Chairman & CEO Overview (continued)
Irish services and €2.7bn on Irish materials. IDA clients spent a further €2.6bn
on in-house R&D and €7.4bn on capital investment projects2.
IDA client exports of €255.3bn accounted for 68% of total national exports in
20193. The continued strength of multinational dominated sectors such as
Life Sciences and Technology saw Ireland’s exports, and as a result our GDP,outperform most other advanced economies in 2020. The resiliency of FDI in
the past year has also supported the Exchequer, with IDA client companies
accounting for an estimated two-thirds of corporation tax receipts4.
Behind these large numbers are over 1,600 client operations that are diversein their size, their sector and their country of origin but which collectively havechosen Ireland as a place to grow and succeed. Their contribution to Ireland istangible, substantive and something IDA does not take for granted.

Regional development
The impact of FDI and the contribution of IDA client companies is most keenly
felt in locations outside Dublin. As noted above, in 2020 IDA won 128
investments for locations outside of Dublin, building on the record levels ofregional investment we secured over the course of our 2015-19 strategy.
Direct employment by IDA clients in the regions reached 144,689 people in2020, 56% of total IDA client employment.
Client companies in regional locations had an annual spend of €7.9bn on
payroll, €2.7bn on Irish services, €2.2bn on Irish materials and €1.3bn on
in-house R&D in 2019. While FDI is not the only driver of regional
development, through these linkages it can and does make a major
contribution to promoting vibrant regional economies. IDA continues to2
3
4

DETE, Annual Business Survey of Economic Impact (ABSEI) 2019
IDA calculations based on ABSEI data and CSO external trade data
IDA calculations based on Revenue Corporation Tax Payments and Returns

partner with client companies and key stakeholders as we seek to support
economic recovery and sustainable growth across each region of the country,
which is central to our new organisational strategy. We will seek to win
investment that helps to reduce regional economic disparities and supports
regions in dealing with Brexit, the recovery from Covid-19 and a just climatetransition.

Global FDI outlook
The global FDI landscape in which IDA competes for investment was severely
disrupted by the Covid-19 pandemic in 2020. Announced global greenfield
investment projects fell by a third compared with the previous year, as MNCs
delayed, cancelled, or held off on investment decisions amid the economic
shock and elevated uncertainty5. Economic prospects have improved since
the turn of the year due to accelerated vaccine deployment in advanced
economies, business adaptation to containment measures, and additional
fiscal support in the US. However, the scale of the economic shock in 2020
and the high level of risk to the global outlook continues to negatively impact
on investor sentiment.
The sectors that proved the most resilient during 2020, such as Technology
and Life Sciences, are likely to drive the recovery in global FDI. Recovery in the
sectors most affected by containment measures, such as Tourism, Leisureand Hospitality related activities, will be highly dependent on the future
trajectory of Covid-19.
As global FDI recovers, future trade and investment patterns will be shaped bya number of economic, technological and political trends. Established andnew overseas investors will face a complex array of challenges and5

FDI Intelligence, The FDI Report 2021

05

Chairman & CEO Overview (continued)
opportunities related to cross sectoral drivers of change including the futureof work, new and disruptive business models, environmental sustainability,and heightened geopolitical focus on global value chains.
The investment decisions made in such an environment and how they are
influenced by the value proposition of different jurisdictions will determine
the FDI outlook. Ireland’s exceptional FDI performance in recent years andlong-standing track record as a resilient, stable and innovative location inwhich to do business provides a strong foundation on which to build in the
period ahead.

2021-2024 strategy
The implementation of IDA’s new 2021-24 strategy is now underway following
a comprehensive strategy development process during which we reviewed
our previous strategy, analysed the operating environment for FDI andconsulted extensively with key stakeholders.
In a changed world, IDA’s Driving Recovery and Sustainable Growth strategy
seeks to consolidate and build on the positive impact of FDI as Ireland pursues
a jobs-led recovery that seizes on the opportunities of the green andtechnological transformations, as envisaged in the Programme forGovernment and the Economic Recovery Plan. IDA will partner with clientcompanies to create jobs, locate in the regions, and invest in R&D, while
enhancing our focus on investment in training and upskilling andenvironmental sustainability.

06

The ambition of the strategy is framed through five interlinked pillars which
include the following key targets:·

Growth: Target 800 total investments to support job creation of
50,000 and economic activity.

·

Transformation: Partner with clients for future growth through 170
RD&I and 130 training investments.

·

Regions: Target 400 investments to advance regional development.

·

Sustainability: Embrace a green recovery with 60 sustainability
investments.

·

Impact: Target a 20% increase in client expenditure in Ireland to
maximise the impact of FDI.

Delivery of the strategy will be supported by a number of initiatives including
IDA’s Regional Property Programme to provide property and strategic site
solutions to address market failures in regional locations; completion of the
National Advanced Manufacturing Centre in Limerick to provide a space forcompanies to trial, adopt, deploy and scale digital technologies; thesignificant expansion of the National Institute for Bioprocessing Research andTraining (NIRBT) to build capacity in Cell, Gene and Vaccine Therapies (CGVT);
and the implementation of a Digital Transformation Programme to make IDA
the most digitally enabled Investment Promotion Agency (IPA) in the world.

Chairman & CEO Overview (continued)
The path ahead – opportunities

Accelerating regional economic growth

The path ahead is one of opportunities, challenges and a considerable degreeof uncertainty. The ambition of IDA’s 2021-24 strategy reflects our belief that
there remain significant opportunities to win investment aligned to Ireland’score strengths, despite a difficult global operating environment. Our strategy
maintains a focus on the sectors propelling the modern global economy thatproved resilient over the past year, while remaining attentive to and realising
the opportunities associated with an era of transformation.

IDA’s new strategy will have a positive impact on every region of Ireland. The
Agency will continue to encourage and support both existing clients andfirst-time investors to expand or locate in regions, leveraging aforementioned
key initiatives such as our Regional Property Programme and our value
proposition for remote working. We will also partner with existing clientcompanies in regional locations on transformative investments in training
and RD&I to help safeguard and enhance the regional impact of FDI throughincreased innovation, productivity and resilience. In seeking to attract highlevels of investment to each region based on their key strengths andemerging opportunities, IDA will continue to place an emphasis on strategic
collaboration with key stakeholders to ensure the regions are positioned for
future FDI growth.

IDA sees potential for Ireland to win investment as the global economy
digitises and decarbonises at an accelerating pace, new business models
emerge, and companies consider how to respond to issues ranging fromsupply chain resilience to the future of work. Specific areas of opportunity
include cloud computing, artificial intelligence (AI), 5G, big data, disruptive
service platforms, fintech, advanced manufacturing, cell, gene and vaccine
therapy, connected health, industrial automation and renewable energy.
The Agency will partner with existing client companies and target the next
generation of leading-edge companies, emphasising Ireland’s strengths
including our young and highly educated population, frictionless access to
the EU Single Market, openness to the world, transparent and consistentcorporate tax rate, ease of doing business and track record in attracting FDI.
We will develop new value propositions, for example to support thepositioning of Ireland as a leading location for sustainable FDI. The
improvement in Ireland’s performance addressing climate change envisaged
under the National Climate Objective will add credibility as we engage withcompanies on sustainable investment opportunities. We will also develop ourvalue proposition for remote working, with a particular focus on hybrid
remote working models and on using remote working as means to promote
regional development and improve economic opportunities forunderrepresented groups.

Competitiveness challenges
Despite the ambition of our new strategy and a strong start to 2021, it is clearthat we cannot take success as certain nor become complacent about thestrengths of Ireland’s value proposition in a highly competitive global
landscape for FDI. It is too early to assess what, if any, impact international tax
reform could have on Ireland’s attractiveness to investment in the mediumterm. However, recent developments are a reminder that to preserve existing
FDI and win new investment Ireland must remain attentive to key
competitiveness issues that are within our control. This is particularly
important as the global competition for investment continues to intensify.
The importance of policy action focused on enhancing Ireland’scompetitiveness in order to retain FDI was highlighted by the IMF in its May
2021 assessment of the Irish economy, which also noted that such action
could help to amplify FDI’s positive contribution to the growth of Ireland’s
economy6.

6

IMF, Staff Concluding Statement of the 2021 Article IV Mission to Ireland, May 2021

07

Chairman & CEO Overview (continued)
We face a number of competitiveness challenges that risk impacting on
Ireland’s ability to attract and maintain FDI. In the immediate term, thenecessary public health restrictions in place for much of the first half of thisyear have had a significant impact on IDA client companies. International
travel disruption, the introduction of mandatory hotel quarantine and delays
in processing entry visas for non-EEA nationals has impeded companies’
ability to access international talent pools as they seek to establish or expandin Ireland. As a result, there is a risk that this issue will have a negative impact
on FDI job creation in 2021. IDA welcomes the updated Government guidanceon international travel from July 2021 and the reopening of the immigration
registration office in Dublin in May 2021.
As a small, open economy and as an island at the periphery of Europe,
international connectivity is crucial to maintaining existing investment andrealising future investment opportunities. It is imperative for Ireland torebuild international connectivity as soon as possible. IDA has engaged
extensively with client companies and worked constructively with DETE on
the challenges international travel restrictions pose, while recognising andrespecting the need for restrictions to reduce the risks associated with newvariants and mutations of Covid-19.
Longstanding competitive issues also continue to impact on Ireland’s
attractiveness to FDI. As the Agency has highlighted previously, the efficiencyof the planning system, and the protracted nature of the judicial review
process has become an area of reputational risk and an obstacle to IDA’s
ability both to attract new investors and to encourage existing investors to
expand. IDA fully supports the need for appropriate checks and balances in
the planning process. However, avoidable delays in the delivery of our clientcompanies own capital projects and in the provision of public infrastructure
across energy, transport, telecommunications and water services creates
uncertainty for investors and makes Ireland a less attractive place in which to08

do business. The Government’s commitment to productive capital investment
and the ongoing review of the National Development Plan (NDP) is welcome
and marks a notable point of contrast to the cuts in capital expenditure
implemented in the wake of the Global Financial Crisis. It is now vital that the
key strategic capital projects under the NDP are efficiently progressed anddelivered.
Talent remains a key differentiator for Ireland in winning FDI. The quality of
our education system and the skills of our people are among the top-rated
operational factors in Ireland by IDA client companies. To safeguard thisstrength and our international competitiveness, urgently addressing thelong-term sustainable funding of third level education is essential. Related tothis, we must ensure the skillsets of third level graduates are aligned with theneeds of the economy and that companies’ contributions to the National
Training Fund are used to provide demand led programmes. Further efforts
are needed to realise the high-level ICT graduate target set out in Technology
Skills 2022 and to improve digital skills among workers across the economy. It
is also important to ensure industry-relevant lifelong learning opportunities,
including through further investment in online education, are available tothose already in the workforce. This is particularly important for workers in
sectors experiencing structural challenges and sectors being disrupted by thedigitalisation of business models.
Risks related to underinvestment in our third level education system arecompounded by the gap between Ireland and a number of other advanced
economies on investment in RD&I. The increase in Irish expenditure on
research funding in recent years is welcome, however Ireland’s remains below
and is unlikely to have achieved the target set in Innovation 2020 to reach an
R&D intensity ratio of 2.5% of GNP by 2020. Foreign owned enterprises
account for 70% of business expenditure on RD&I in the State and RD&I isconsistently the main area where IDA client companies are seeking to expand

Chairman & CEO Overview (continued)
their mandate in Ireland7. To remain competitive, win further investment andsupport Ireland’s ambition to be a destination for innovation, targetedmeasures should be introduced to increase RD&I spending in line with othercountries. IDA will continue to engage with DETE and with the Department for
Further and Higher Education, Research, Innovation and Science on the RD&I
agenda, including inputting into the development of a renewed national
strategy to succeed Innovation 2020.
The availability of high quality, competitively priced and resilient water andenergy supplies is vital to enable the agency to continue to attract high levelsof foreign direct investment. This would include resource intensive clients inthe life sciences and technology sectors. Population growth and increasing
demand from enterprise requires infrastructure providers to continuously
stay ahead of demand. In this regard, it is essential that sufficient headroom isavailable to enable the network operators to demonstrate the agility
necessary to meet the needs of international scale investments. Concerns
around resilience and capacity, including those currently being expressedaround the energy system, must be answered with clear plans, both shortand long-term for enhancement of networks and sources of supply.
IDA recognises and welcomes the extensive policy measures taken to address
the housing crisis in recent years. However, the impact of the pandemic onconstruction risks delaying further progress on this issue over the duration of
our new strategy. The National Competitiveness and Productivity Council has
highlighted the impact of dysfunction in the housing market, which includes
increased input costs. The continued speedy and successful implementationof policies designed to address this issue will be important.
In the global competition for both investment and talent, quality of life is anincreasingly important determinant. To keep talented young Irish citizens and7

to continue to attract international talent from around the world, the delivery
of affordable, high-quality housing and rental accommodation must remain apriority. In addition, placemaking should be at the forefront of development
in Ireland to promote a better quality of life for citizens. Successfulplacemaking can provide a competitive edge in attracting and retaining thetalent and skills on which FDI is reliant. IDA therefore welcomes the provisionof funding under Project Ireland 2040’s Urban and Rural Regeneration andDevelopment Funds to make Ireland’s cities and towns better places to invest,
work and live. Improvements made at modest expense can have a significant
impact. IDA continues to urge local authorities across the country to maintaina strong focus on placemaking in their functional mandates.

Conclusion
As we seek to realise opportunities and address challenges in the months andyears ahead, IDA will continue to work closely with DETE, other Government
Departments and Agencies, and with a wide range of public and private sector
bodies. IDA is grateful for the support of those who, on a daily basis, help the
Agency to deliver on its mission to win and develop FDI, providing jobs,
economic impact and opportunity for the people of Ireland. IDA acknowledges
the continued commitment and support of our client companies. We pay
tribute to the resilience they demonstrated over the past year and theconfidence they place in Ireland.
We wish to express a special thanks to the IDA team in Ireland and overseas
for their dedication during difficult circumstances to ensure IDA provided acontinuity of service despite the pandemic. The commitment, expertise andpassion for performance of colleagues across the Agency drove the strong
results achieved by IDA in 2020.

CSO, Business Expenditure on R&D 2019-2020.

Frank Ryan
ChairmanMartin Shanahan
Chief Executive

09

Statistics

10

Statistics
IDA Ireland Indicators
Indicator

2020 Value

Origin of IDA Ireland Supported Companies 2020

Total of Investments Approved

246

OriginNumber of Companies

Total Employment

No of New Name Investments

95

United States

861

181,141

No of Expansion Investments

73

Germany

93

14,361

No of Research, Development and Innovation Investments

46

United Kingdom

147

8,071

France

77

8,116

€1bn

Rest of Europe

188

20,773Training Investments

28

Rest of World250

24,932

Environmental Investments

4

Total

1,616

257,394

Investment in Research, Development and Innovation
investments% of Investments Located Outside Dublin

52%

Source: DETE Annual Employment Survey 2020.

% of Jobs Approved Outside Dublin

42%

Note: Includes Full-time and Part-time Employees.

% Jobs Approved with Salaries in Excess of €35,000

95%

Average Salary in Investments€56,100

11

Statistics (continued)
Employment in IDA Supported Companies

Total Employment by Regionin IDA Ireland Supported Companies

			

2020

Job Gains		

20,123

IDA Region
2016
2017
2018
2019
2020
						%
Change						2019/2020

Source: IDA Ireland 2020

Border

7,624

7,921

8,206

8,722

8,651

-1%

Dublin & 						Employment in IDA Supported Companies
2019

2020

Mid-East

101,156

107,167 115,408 125,580 131,101

4%

Total Employment

248,450

257,394

Mid-West

20,001

21,34322,55424,031

24,1691%

Full Time

227,164

236,544

Midlands

4,788

5,044

5,714

6,195

6,308

2%

Other

21,286

20,850South-East

11,911

12,573

13,324

13,096

13,461

3%

Net Change in Total Employment

14,847

8,944South-West 37,989

39,62742,16043,81246,009

5%

6%

4%

West

22,271

24,154

26,23727,014

27,695

3%

			

Total

205,740

217,829 233,603 248,450 257,394

4%

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

Source: DETE Annual Employment Survey 2020.

		% Net Change in Total Employment

Source: DETE Annual Employment Survey 2020, Time Series Data.

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

12Statistics (continued)
Total Employment by Sector in IDA Ireland Supported Companies
Sector
2016
2017
2018
2019
2020
%change						
2019/2020
Pharmaceuticals and Food

27,09228,30230,19832,28834,187

6

Computers, Electronics and Optical Equipment

20,531

20,17319,92819,90121,0506

Medical and Dental Instruments and Supplies

29,50231,50033,87435,94636,304

1

Other Manufacturing

19,24019,94821,385

21,405

20,699-3

Financial Services

24,943

26,99927,217

29,167

29,419

1

Information and Communication

75,40680,59587,618

94,10599,357

6

Business and Other Services

9,026

10,312

13,383

15,63816,378

5

205,740

217,829

233,603

248,450

257,394

4

Total
Source: DETE Annual Employment Survey 2020.

13

Statistics (continued)
Economic Impact of Foreign Direct Investment

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

The Department of Enterprise, Trade and Employment estimates that2019 (latest data available) include data for Exports, Irish Economy

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

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

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

IDA client exports increased by 10.7% to €255.3bn in 2019.

463,309 jobs that were supported by FDI at the end of 2020. Secondary-

Expenditure in the Irish economy grew 14.8% to €25.2bn in 2019.

economic benefits impact positively on the construction industry,

This is made up of expenditure on payroll (€15.1bn), Irish services 		the retail sector and the hospitality industry.

(€7.4bn), and Irish materials (€2.7bn).
-

In-house R&D Investment grew 17.2% to €2.6bn in 2019.

-

IDA clients invested €7.4bn in capital projects in 2019.

IDA Ireland Cost per Job Sustained Constant 2020 Prices
2007/13

2008/142009/15

2010/16

2011/17

2012/18

2013/19

2014/20

Sustained FTJ*

44,75249,452

56,97369,611

77,09994,880104,690

110,063

CPJS**€12,824€12,057€10,732€9,282€8,146€6,622€5,898€5,935

Source: DETE Annual Employment Survey 2020
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.
*FTJ = Full Time Job.
**CPJS = Cost per Job Sustained

14

Environmental,
Social andGovernance15

Environmental, Social and Governance
Environmental, Social and Governance (ESG) performance
At a time of international climate crisis, social unrest and economic divide,
IDA has renewed our commitment to attracting FDI in a way that promotes
and enhances sustainable growth. The five pillars of the Agency’s 2021-24
strategy align with and are guided by the UN Sustainable Development
Goals; reflect the ambition of the Programme for Government to promote
well-being and sustainability outcomes in parallel to economic prosperity;
and reflect the increasing centrality of environmental, social andgovernance (ESG) factors in the corporate strategies of MNCs.

and infrastructure projects, such as the embedding of Leadership in Energy
and Environmental Design (LEED) accreditation in our Regional Property
Programme1.

Social

IDA client companies create good quality jobs that pay well and provide
opportunity for advancement. The average salary in IDA client companies
was an estimated €70,090 in 20192. IDA continues to target investmentswith annual salaries above the national average and we are also working toenhance our engagement with clients on training and upskilling. Ensuring adiverse workforce that creates equal opportunities for all is a key requisite
Environmental
for business success. Almost 9 in 10 IDA clients are engaged with thecorporate social responsibility (CSR) agenda, across areas including
IDA has set a target to win 60 environmental sustainability investments inworkplace development and diversity and inclusion – where many clientsthe period to 2024. We will partner with existing clients to develop
are leaders in their field. In our new strategy, IDA has committed to
Corporate Climate Action Plans (CCAPs) to provide the basis for the
reduction of their carbon footprint in Ireland. At the same time, we will seek partnering with client companies, across Government and with key
to win new discrete green economy investments in subsectors and business stakeholders to achieve further progress such as in closing the gender
representation gap and improving employment outcomes formodels closely aligned to Ireland’s strengths.
underrepresented groups. We continue to work, for example, with theBalance for Better Business Group which has set a target for women in
The Agency will also continue to take steps to reduce our own carbon
senior leadership role at large MNCs in Ireland to encourage progress
footprint and wider environmental impact. We will work towards theambitious 2030 energy efficiency and decarbonisation targets for the public towards 40% representation by 2023 from a 2020 baseline level of 30%.
IDA also continues to proactively engage with the OECD on their work on
sector, target a 25% improvement in IDA’s energy efficiency by 2024 andhow to attract investment that promotes innovation, quality jobs and skills,
pilot biodiversity measures on a minimum of five IDA business parks. Our
gender equality and the low-carbon transition.
planned actions in the period to 2024 will build upon our progress to date,
which includes a 54.4% improvement in energy efficiency recorded in 2019
relative to 2009 baseline levels and various initiatives across IDA’s buildings

16

1
2

SEAI, Annual Report 2020 on Public Sector Energy Efficiency Performance
IDA calculations based on ABSEI data for 2019

Environmental, Social and Governance (continued)
To succeed in the global environment in which we operate, IDA must fostera supportive, diverse and inclusive culture in which our teams can work,
develop and succeed. During 2020, IDA sought to provide our colleagues
with the resources and support they needed at such a challenging time.
This included the provision of equipment to enable remote working, regularcommunication on IDA’s business continuity plan and the continued
availability of the Employee Assistance Programme (EAP) in partnershipwith VHI Healthcare. IDA also developed new policies on flexible working
and workplace safety in advance of a return to the office. In addition, overthe past year the Agency partnered with the Irish Centre for Diversity on thedevelopment of a new Action Plan for Equality, Diversity and Inclusion. The
Action Plan will aim to develop a supportive culture in IDA, building on thevarious diversity and inclusion initiatives we have undertaken in recent
years. IDA’s CSR Committee also remained active in 2020, with colleagues
across the Agency raising funds and awareness for our charity partners:
LauraLynn in 2019/20 and Jigsaw in 2020/21.

17

Financial
Statements

18Comptroller & Auditor General
Report for presentation to the Houses of the Oireachtas
Industrial Development Agency Ireland
Opinion on financial statements
I have audited the financial statements of Industrial
Development Agency Ireland (IDA Ireland) for the year
ended 31 December 2020 as required under the provisionsof paragraph 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 summaryof significant accounting policies.
In my opinion, the financial statements give a true and fairview of the assets, liabilities and financial position of IDA
Ireland at 31 December 2020 and of its income andexpenditure for 2020 in accordance with Financial
Reporting Standard (FRS) 102 — The Financial ReportingStandard 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 Organisation ofSupreme Audit Institutions. My responsibilities under thosestandards are described in the appendix to this report. I am
independent of IDA Ireland and have fulfilled my otherethical responsibilities in accordance with the standards.
I believe that the audit evidence I have obtained is sufficientand appropriate to provide a basis for my opinion.
Report on information other than the financial
statements, and on other matters
IDA Ireland has presented certain other information
together with the financial statements. This comprises
the annual report, including the governance statement
and Board members’ report, and the statement on internal
control. My responsibilities to report in relation to suchinformation, and on certain other matters upon which
I report by exception, are described in the appendix tothis report. I have nothing to report in that regard.

Seamus McCarthy
Comptroller and Auditor General
18th June 2021

19

Appendix to the report
Responsibilities of Board members
As detailed in the governance statement and Board members’
report, the Board members are responsible for–the preparation of financial statements in the form
prescribed under paragraph 7 of the first schedule of theIndustrial 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 basisof 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 ofthe Industrial Development Act 1993 to audit the financial
statements of IDA Ireland and to report thereon to theHouses 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 those20–

risks; and obtain audit evidence that is sufficient andappropriate to provide a basis for my opinion. The risk of
not detecting a material misstatement resulting fromfraud is higher than for 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 relevant tothe audit in order to design audit procedures that areappropriate in the circumstances, but not for the purposeof expressing an opinion on the effectiveness of theinternal 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 the going
concern basis of accounting and, based on the audit
evidence obtained, on whether a material uncertainty
exists related to events or conditions that may castsignificant doubt on IDA Ireland’s ability to continue as agoing concern. If I conclude that a material uncertainty
exists, I am required to draw attention in my report to therelated disclosures in the financial statements or, if suchdisclosures are inadequate, to modify my opinion. My
conclusions are based on the audit evidence obtained
up to the date of my report. However, future events orconditions may cause IDA Ireland to cease to continue
as a going concern.
I evaluate the overall presentation, structure and content
of the financial statements, including the disclosures, andwhether the financial statements represent theunderlying transactions and events in a manner that
achieves fair presentation.

I communicate with those charged with governance regarding,among other matters, the planned scope and timing of 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 reportthat fact.
Reporting on other matters
My audit is conducted by reference to the special
considerations which attach to State bodies in relation totheir management and operation. I report if I identify material
matters relating to the manner in which public business has
been conducted.
I seek to obtain evidence about the regularity of financialtransactions in the course of audit. I report if I identify any
material instance where public money has not been applied
for the purposes intended or where transactions did notconform to the authorities governing them.
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.

Governance Statement and Board Members’ Report (continued)
Governance
IDA Ireland is an autonomous Statutory Agency set up underthe Industrial Development Acts 1986 - 2019. The Agency
operates in accordance with the provisions of the Acts andunder the aegis of the Minister for Enterprise, Trade and
Employment, who is empowered to provide funds to discharge
its obligations and issue general policy directives/seek
information on the Agency’s activities.
While the primary source of corporate governance for IDA
Ireland are the Industrial Development Acts, the Agency is also
required to comply with a range of other statutory (National
and EU) and administrative requirements. IDA Ireland affirmsthat it met its obligations in regard to all of 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 officials of the
Department of Enterprise, Trade and Employment and officialsof other Government Departments and State Agencies inadvancing its objectives and ensuring compliance withstatutory, administrative and Ministerial/Government
requirements. At local level, the Agency works closely with
Local Authorities, Educational Establishments, other State
Agencies and a wide range of Local Organisations/Public
Representatives to develop the local environment necessary
for attracting new investment. IDA Ireland continues toimplement a policy directive issued by the Minister forEnterprise, Trade and Employment on 18 December 2006
which requires that IDA comply with all relevant Guidelines,
Block Exemption Regulations, Frameworks and schemes
regarding Regional Aid and in providing research anddevelopment grants.
2. Code of Practice for the Governance of State Bodies(2016)
Statement of Compliance
The Board has adopted the Code of Practice for theGovernance of State Bodies (2016) and has put procedures inplace to ensure compliance with the Code. IDA Ireland was infull compliance with the Code of Practice for the Governanceof State Bodies for 2020, subject to a waiver from the
Department of Enterprise, Trade and Employment in respectof a requirement in a 2014 Circular, as noted in the Statementof Internal Control.
Section 2.6: Complied with by the Chairman of the Board ina separate letter furnished to the Minister for Enterprise
Trade and Employment.
Sections 1.8 & 7.5 (iii): An effective system of internal control
is maintained and operated by the Agency (Statement on
Internal Control, page 28).
Section 9: Government policy on the pay of Chief Executives
and State Body employees is being complied with (GovernanceStatement and Board Members Report 2020 pages 21-27 andNotes to the Financial Statements pages 34-45.
Sections 1.15 & 1.17: The Board approved a one year strategy
for 2020 and also approved the four year IDA strategy for theyears 2021-2024. In addition, the Board has establishedprocesses to ensure sound corporate planning, etc., asrequired by this Section (Governance Statement and Board
Members Report 2020 page 21, and Statement on Internal
Control page 28).
Section 9: The IDA travel procedures reflect the Government’s
travel policy requirements and are being complied with.
Section 8.47: The Chairman of the Board, in the separate
letter furnished to the Minister for Enterprise Trade and
Employment, confirms that the IDA has complied with its
obligations under tax law.
The schemes and programmes administered by the IDA are inaccordance with the legislation governing the operation of the
Agency and appropriate risk management systems are inplace.

3. Revenue Commissioners’ Statement of Practice SpIt/1/04 on Tax Treatment of Remuneration of Membersof State and State Sponsored Committees and Boards
IDA Ireland fully complies with this Statement of Practice.
4. Guidelines for the Appraisal and Management ofCapital 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 Managementof Capital Expenditure Proposals.
5. Employment Equality Acts, 1998 And 2004
Equality, diversity and inclusion (EDI) is an established priority
for IDA. The organisation has a progressive EDI action plan andnew initiatives are developed on an ongoing basis. IDA Ireland
is an equal opportunities employer and is committed tofostering an inclusive workplace which values and benefits
from the diversity of our workforce. To this end, it is committed
to ensuring that no team member of IDA, or applicant for
employment with IDA, receives less favourable treatment thanany other on grounds of gender, marital status, family status,
sexual orientation, religion, age, disability, race, membershipof the traveller community or on any other grounds not
relevant to good employment practice. This applies torecruitment, working conditions and development
opportunities.
IDA is committed to maintaining and developing a balanced
work/life environment for all staff.
6. The Health, Safety and Welfare at Work Act, 2005
IDA Ireland continues to take appropriate measures to protect
the safety, health and welfare of all employees and visitors
within its offices to meet the provisions of this Act. Thisextends to the Public Health (Tobacco) Acts 2002 and 2004.

21

Governance Statement and Board Members’ Report (continued)
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.

11 (I). Prompt Payment of Accounts
The Prompt Payment of Accounts Act 1997 (the Act), wasamended by the European Communities (Late Payment inCommercial Transactions) Regulations 2012, the European
Communities (Late Payment in Commercial Transactions)
Regulations 2013 and the European Communities (LatePayment in Commercial Transactions) Regulations 2014.
Management is satisfied that IDA complied with theprovisions of the Act (as amended) in all material respects.

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.

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.

9. Freedom of Information Act 2014
IDA Ireland complies with this Act. Requests for information
under this Act should be addressed to the Freedom ofInformation Executive, IDA Ireland, 3 Park Place,
Hatch Street, 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. IDA’s new Global HQ at Three Park Place is A3 BER
rated and is certified WiredScore Platinum – features include
high quality building envelope insulation, thermal storage, rainwater harvesting, photovoltaic panels, combined heat & power(CHP)for renewable energy generation and LED lighting.

22

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 Ireland in
2020.

Board Responsibilities
The Board of IDA Ireland was established under the Industrial
Development Act 1993. The functions of the Board are set out
in section 8 of that Act. The Board is accountable to the
Minister for Enterprise Trade and Employment and is
responsible for ensuring good governance and performs thistask 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) andthe 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 andmanagement 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, andreserved matters.
Paragraph 7 (2) of the First Schedule of the Industrial
Development Act 1986 requires the Board of IDA Ireland tokeep, in such form as may be approved by the Minister forEnterprise Trade and Employment, with the consent of the
Minister for Public Expenditure and Reform, all proper andusual accounts of money received and expended by it.

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, andstate whether applicable accounting standards have been
followed, subject to any material departures disclosed
and explained in the financial statements.

Board Member

Role

Date Appointed

Frank Ryan

Chairman

1st January 2014 (retired 31 December 2018. Re-appointed 1 January 2019)

Martin ShanahanCEO

31st August 2014

Geraldine McGinty

Ordinary member

8th August 2014 (retired 31 December 2017. Re-appointed 26 January 2018)

Barry O’Sullivan

Ordinary member

4th September 2015 (retired 31 December 2018. Re-appointed 1 January 2019)

Marian Corcoran

Ordinary member

26th August 2016 (retired 31 December 2020. Re-appointed 1 January 2021)

Dermot Mulligan

Ordinary member

12th October 2016 (retired 31 December 2020. Re-appointed 14 January 2021)

Mary Mosse

Ordinary member

17th September 2017

Kevin Cooney

Ordinary member

8th June 2018		

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 Act 1986. The maintenance andintegrity of the corporate and financial information on the IDA
Ireland’s website is the responsibility of the Board.

Thomas (Tony) Kennedy

Ordinary member

8th June 2018

Ann Hargaden

Ordinary member

27th November 2020

Regina Moran

Ordinary member

27th November 2020

Bill O’Connell

Ordinary member

27th November 2020

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
quarterly with the final review taking place on 4th March 2021.

The Board carried out a Board Effectiveness and Evaluation Review in December 2020.
Key Personnel changes – Divisional Manager, John Conlon, resigned from his position with effect from 2nd October 2020.

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 performanceand the financial position of IDA Ireland at 31st December
2020.
Board Structure
The Board consists of a Chairperson, the CEO and ten ordinary
members, all of whom are appointed by the Minister forEnterprise Trade and Employment. The members of the Board
were appointed for a period of five years and meet 10 times ayear or more often if required. The table below details theappointment period for current members:

23

Governance Statement and Board Members’ Report (continued)
Board 2020
The Board operates to best practice corporate governanceprinciples and in line with the guidelines set out in the ‘Codeof 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.
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 ofpolicy rests with executive management.
The Board has statutory authority to approve grant aid up to
the levels set out in the Industrial Development Acts and torecommend grant aid above these specified levels to
Government. In accordance with the Ethics in Public OfficeActs, 1995 and 2001, IDA Ireland Board Members furnish aStatement 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.

Frank Ryan
Chairman, IDA Ireland
Martin Shanahan
Chief Executive Officer, IDA Ireland
Geraldine McGinty
Associate Professor of Clinical Radiology and Population
Science, Weill Cornell Medical College, New York
Assistant Attending Radiologist, New York Presbyterian
Hospital
Marian CorcoranFounder MC 2 Change Limited
Dermot Mulligan
Asst. Secretary General
Department of Enterprise, Trade and Employment
Barry O’SullivanVice President of Manufacturing, Johnson and Johnson
Vision Care
Mary Mosse
Director Port of Waterford Company
Member of the Low Pay Commission
External Examiner Cardiff Metropolitan University
Thomas (Tony) Kennedy
CEO Tawin Consulting
Kevin Cooney
Former Senior Vice President, Former Managing
Director EMEA, CIO, Xilinx Inc
Ann Hargaden
Consultant at Lisney Ireland.
Bill O’Connell
Principal BOC Consulting Services

24

Regina Moran
Vice President, Strategic Projects & Change
FujitsuJohn Nolan
Secretary, IDA Ireland
The Board committee structure is outlined below. It underwent
change at the start of 2021 when the following committees –Property Committee, Regional Development Committee,
Sectoral Development Initiatives Committee and Management
Development & Remuneration Committee - were replaced by
the following committees: - Regional Development & Property
Committee, Innovation & Sustainable Development
Committee and Organisational Development Committee.
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 2020
Geraldine McGinty (Chair)Dermot Mulligan
Mary Mosse
Tony Kennedy
Liam Rattigan(External Committee Member)
Members 2021
Geraldine McGinty (Chair)Dermot Mulligan
Tony Kennedy
Ann Hargaden
Regina Moran
Liam Rattigan (retired 31st March 2021)(External Committee Member)

Governance Statement and Board Members’ Report (continued)
Property Committee (2020)
Reviewed policy with regard to the financing, provision,
maintenance and disposal of property, approved procedureswith regard to tendering and awarding of contracts andapproved expenditure/sales of up to €12million.
Members 2020
Marian Corcoran (Chair)
Mary Mosse
Martin Shanahan
Dermot Mulligan
Kevin Cooney
Regional Development Committee (2020)
Provided guidance on the implementation of the regional
development aspects of IDA’s Strategy. Reviewed andmonitored IDA’s annual and cumulative regional targets andits involvement in national and regional strategy development.
Members 2020
Barry O’Sullivan (Chair)Dermot Mulligan
Mary Mosse
Tony Kennedy
Mary Buckley
Sectoral Development Initiatives Committee (2020)
The Sectoral Development Initiatives Committee
reviewed and recommended sectoral initiatives/investments
to the Board. Monitored progress on sectoral initiatives andensured the infrastructure existed to support the initiatives.
Reviewed progress on the National Institute for Bioprocessing
Research and Training (NIBRT) investment project to ensurethat it was delivering in accordance with the objectives andconditions approved by the IDA Board.
Members 2020
Geraldine McGinty (Chair)
Barry O’Sullivan
Marian Corcoran
Tony Kennedy
Kevin CooneyManagement Development and Remuneration Committee(2020)
Reviewed the performance of the senior management teamand plans for management development and succession. The
Committee also reviewed remuneration of senior managementin the context of Government guidelines.
Members 2020
Frank Ryan (Chair)
Marian CorcoranMartin Shanahan
Kevin Cooney
Regional Development and Property Committee (2021)
Provides guidance on the implementation of the regional
development aspects of IDA’s Strategy. Reviews and monitors
IDA’s annual and cumulative regional targets and its
involvement in national and regional strategy development.
Reviews policy with regard to the financing, provision,
maintenance and disposal of property, approves procedureswith regard to tendering and awarding of contracts andapproves expenditure/sales of up to €12million.
Members 2021
Marian Corcoran (Chair)Dermot Mulligan
Mary Mosse
Barry O’Sullivan
Geraldine McGinty
Bill O’Connell
Ann Hargaden
Martin Shanahan
Innovation and Sustainability Committee (2021)
Provides guidance on the promotion by IDA of sustainableeconomic development in line with Government policy; on
supporting sectoral and industry transformation throughinnovation, the development of human capital and theadoption of advanced manufacturing technologies; and on
increasing research and development by companies.

Members 2021
Barry O’Sullivan (Chair)
Mary Mosse
Kevin Cooney
Dermot Mulligan
Tony Kennedy
Bill O’Connell
Regina Moran
Organisational Development Committee (2021)
Reviews the performance of the senior management team andplans for management development and succession. The
Committee also provides guidance on organisational
development and the Agency’s Diversity and Inclusion Policy.
Members 2021
Frank Ryan (Chair)
Marian CorcoranMartin Shanahan
Kevin CooneyManagement Investment Committee
Reviews all proposals for grant assistance and recommends
them to the Board. Under powers delegated by the Board theCommittee approves grants up to a maximum of €900,000.
Members 2020
Martin Shanahan (Chair)
Mary Buckley
Eileen Sharpe
Regina Gannon
Leo Clancy
Members 2021
Martin Shanahan (Chair)
Mary Buckley
Eileen Sharpe
Regina Gannon
Denis Curran

25

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 2020 is set out below including the fees and expenses received by each member.					
Board
		
		
		

Audit
Property
Regional
Finance &Committee
Development
Riskof the Board Committee
Committee 				Management
Development &Remuneration
Committee

SectoralDevelopment
Initiative
Committee

Fees
2020
€

Expenses
2020€

Number of Meetings

10

5

10

4

6

4

Frank Ryan (Chairman)

10

-

-

-

6

-

20,520286

Martin Shanahan (Chief Executive)

9

-

9

-

6

-

-

-

Kevin Cooney

10

-

9

-

6

4

11,970-Marian Corcoran

10

-

10

-

6

4

11,970-Ann Hargaden

1

-

-

-

-

-

-

-

Tony Kennedy

10

5

-

4

-

3

11,9702,903

Geraldine McGinty

9

5

-

-

-

4

11,9702,524

Regina Moran

1

-

-

-

-

-

-

-

Mary Mosse

9

5

9

4

-

-

11,970-Dermot Mulligan

9

4

9

1

-

-

-

-

Bill O’Connell

1

-

-

-

-

-

-

-

Barry O’Sullivan

10

-

-

4

-

4

11,970199							92,340								Board Members expenses in 2020 amounted to €5,912 broken down €874 accommodation and €5,038 other travel, subsistence and vouched food expenses.
There were no Regional or Overseas Board meetings in 2020.															

26

5,912

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.		
Permanent Salary 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€180,001 to €190,000		Number of Employees (WTE)
2020
2019
34
43
35
32
28
31
33
20
11
9
5
1
1
2
1
2
5
9
10
3
1
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.		
2020
2019
€’000
€’000
Legal Fees - Legal Proceedings
625
435
Conciliation and arbitration payments
Settlements
625
435
Legal Costs relate to an ongoing matter involving IDA.

Travel and Subsistence Expenditure		
Travel and subsistence expenditure is categorised as follows: 2020
2019
€’000
€’000
Domestic		- Board
4
14- Employees
404
1,635
		
International		- Board2
7
Consultancy Costs		
- Employees
355
1,668
Consultancy Costs include the cost of external advice to management and exclude
765
3,324
outsourced ‘business as usual’ functions.			
		
2020
2019
Hospitality Expenditure		
€’000
€’000
The Income and Expenditure Account includes the following
Legal Advice
763
583
hospitality expenditure:
2020
2019
Commercial & Technical Evaluation and Studies
187
217
€’000
€’000
Financial / Actuarial Advice
34
Domestic		
Human Resources
93
52- BoardBusiness Improvement29- Employees
9
Other
83
17
1,162
878
International		- BoardConsultancy costs capitalised- Employees
Consultancy costs charged to the Income
9and Expenditure and Retained Revenue Reserves
1,162
878
1,162
878
Date:17th June 2021
Frank Ryan
ChairmanMartin Shanahan
Chief Executive

27

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 therequirements of the Code of Practice for the Governance of State
Bodies (2016).
Purpose of the System of Internal Control
The system of internal control is designed to manage risk to 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, and thatmaterial 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 in placein IDA for the year ended 31 December 2020 and up to the date of
approval of the financial statements.
Waiver from Department of Public Expenditure and Reform
Circular
In 2014, the Department of Public Expenditure and Reform issued 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 Enterprise Trade and Employment, on the basis that
IDA’s strong transactional controls satisfy the aims of the Circular.
This waiver was granted.
Capacity to Handle Risk
IDA has an Audit, Finance and Risk Committee (AFRC) comprising four
Board members and one external member, with financial and audit
expertise, one of whom is the Chair. The AFRC met five times in 2020.
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 sets out its
risk appetite, the risk management processes in place and details theroles and responsibilities of staff in relation to risk. The policy has

28been issued to all staff who are expected to work within IDA’s risk
management policies, to alert management on emerging risks andcontrol weaknesses and assume responsibility for risks and controls
within their own area of work.
Risk and Control Framework
IDA has implemented a risk management system which identifies 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 to an
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 comprise the appraisal;technical and financial assessment; approval and payment of grant
related projects, including cost benefit analysis, technicalassessments, establishment of project milestones, payments inaccordance with terms and conditions of legal agreements between
IDA and the grantee and provisions for the repayment of the grant
if the project does not fulfil commitments made by the promotor.
Impact of COVID-19 on the Risk and Control Framework
IDA has continuously assessed its control framework following theoutbreak of Covid-19 and the move to remote working for all staff.
Existing secure technology platforms were extended to all staff tofacilitate remote working and enhanced cyber security measures
including training and testing were implemented. The impact of risks
arising from COVID-19 are assessed as part of the agency’s risk

management process and IDA will continue to take all necessary
actions to mitigate all material risks identified.
Increased Promotions and Advertising Expenditure in Response to
COVID-19 Economic Impacts
In July 2020, the Government introduced a set of measures referred toas the ‘July Jobs Stimulus’ which aimed to ‘get people back on theirfeet and get as many people as possible back to work quickly’. A keyelement of the stimulus package was ‘€10 million to support IDA
promotional and marketing initiatives targeting job-rich FDI projects
that will be an essential part of our economic recovery’.
IDA’s annual promotion and advertising budget is in the region of €5m
and IDA Board approved the 2020 Promotions and Advertising plan in
March 2020. IDA responded quickly to put in place the necessary
arrangements to execute on the important €10m promotional andmarketing initiative, outlined above. In September 2020 IDA Board
approved a supplementary Promotions and Advertising plan for the
additional €10m expenditure and written confirmation of the funding
was received in September 2020 from Department of Public
Expenditure and Reform. On 8th October 2020 the Board approved an
extension of a contract with a media planning and buying agency, in
accordance with procurement rules, up to a maximum value of €5m. In
parallel to the extension of the contract, a tender process was inprogress for the appointment of a media planning and buying agency
for a period of four years. A robust procurement process took placeand on 8th November 2020 the Board approved the appointment of
the successful tenderer for a four year period. The contract with thesuccessful tenderer was signed on 4th December 2020.
In October / November 2020 IDA entered into partnerships with global
media outlets through our media planning and buying agency incl.
CNBC, Bloomberg, Nikkei and Business Insider and incurred theassociated expenditure of €5m under the extended contract.
A total of €10.47m was incurred, December 2020 (€8.47m) / January
2021 (€2m), under the new four year contract, referenced above, toprogress efforts to increase awareness and engagement with Ireland’s
FDI proposition including a dedicated St. Patrick’s Day 2021 marketing
campaign and a digital campaign which would support and amplify
IDA’s message to investors on Ireland with the ultimate aim ofcontinuing the flow of high value investments to Ireland. Partnerships
with the Harvard Business Review, Financial Times, CNBC, Bloomberg,
Wall Street Journal and Economist were also entered into. In line withindustry practice, these partnerships were negotiated and secured inadvance in order to allow time for content creation and secure best

Statement on Internal Control (continued)
value for money for IDA Ireland. The partnerships included content
creation, advertising placement on TV, print and social, webinar
sponsorships and additional social media amplification that put the
IDA Ireland brand in front of the target senior corporate executives
worldwide. The €8.47m has been accounted for as prepayments in the2020 Financial Statements, as the associated marketing services will
be finalised in 2021. IDA has established monitoring procedures toconfirm the effective use of IDA marketing and promotional
expenditure and the value to Ireland.
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 and theBoard, where relevant, in a timely way. I confirm that the following
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.

I confirm that the Board conducted an annual review of theeffectiveness of the internal controls for 2020.
Internal Control Issues
No weaknesses in internal control were identified in relation to 2020
that require disclosure in the financial statements.
Signed on behalf of the Board

Frank Ryan
Chairman
17th June 2021

Procurement
I confirm that IDA has procedures in place to ensure compliance withcurrent procurement rules and guidelines and that during 2020 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 and reviewof the effectiveness of the system of internal control is informed by
the work of the internal and external auditors, the Audit, Finance andRisk Committee which oversees their work, and the senior
management within IDA responsible for the development andmaintenance of the internal control framework.

29

Statement of Income & Expenditure& Retained Revenue Reserves

For Year Ended 31 December 2020		20202019			Amounts shown under Income
and Expenditure are in respect
Notes
€’000
€’000
of continuing activities. The
Statement of Income andIncome						Expenditure and Retained
Oireachtas Grants
2
197,109
198,518
Revenue Reserves includes
National Training Fund
3
3,000
3,000
all gains and losses recognised
Grant Refunds
4
917
1,682
in the year.
Rental Income		
3,545
2,565
The Statement of Cashflows andOther Income
5
732
2,246
notes 1 to 25 form part of these
Profit / (Loss) on Disposal of Assets
6
5,767
(56)
Financial Statements.
Net Deferred Pension Funding
19 (f)
6,880
7,124
		
217,950
215,079
On behalf of the Board of IDA:
Expenditure
Date: 17th June 2021
Grants Payable
7
106,446
100,648
Promotion, Administration and General Expenses
853,48056,961
Industrial Building Charges
9
8,288
10,902
Depreciation Charges
10
18,49014,364
Impairment (Reversals) / Charges
10
(865)
846
Frank Ryan
Pension Costs
19 (c)
8,070
8,165
Chairman		193,909
191,886
Surplus for the Year before Appropriations		
Contribution to the Exchequer
11
Transfer (to) Capital
12
Surplus / (Deficit) for the year after Appropriations		

24,041(10,402)
13,63923,193(23,768)(575)

Balance Brought Forward at 1 January		

19,993

20,568

Balance Carried Forward at 31st December 2020		

33,632

19,99330

Martin Shanahan
Chief Executive

Geraldine McGinty
Chairperson
Audit, Finance & Risk Committee

Statement of Comprehensive Income

For Year Ended 31 December 2020		20202019			The Statement of Cashflows andnotes 1 to 25 form part of these
Notes
€’000
€’000
Financial Statements.
Surplus before Appropriations		

24,041

23,193

Experience (loss) / gain on retirement benefit obligations

19 (d)(7,344)344

Change in assumptions underlying the present value of retirement benefit obligations

19 (d)(19,124)(16,060)(26,468)(15,716)

Total actuarial (loss) in the year		On behalf of the Board of IDA:
Date:17th June 2021

Frank Ryan						
Chairman
Adjustment to deferred retirement benefits funding		
26,46815,716
Other Comprehensive Income for the year		

24,041

23,193
Martin Shanahan
Chief Executive

Geraldine McGinty
Chairperson
Audit, Finance & Risk Committee

31

Statement of Financial Position

As at 31 December 2020		20202019			The Statement of Cashflows andnotes 1 to 25 form part of these
Notes
€’000
€’000
Financial Statements.
Tangible Fixed Assets										On behalf of the Board of IDA:
Industrial Property
13
235,438
221,570
Other Fixed Assets
14
10,47013,936
Date: 17th June 2021
		245,908
235,506
Intangible Assets 						Telecommunication Assets
15
Total Tangible and Intangible Assets 		
245,908
235,506Frank Ryan						
Chairman
Current Assets						Receivables
16
36,121
22,603
Cash and Cash Equivalents		
4,486
5,281
Martin Shanahan		40,60727,884Chief Executive
Current Liabilities						Payables17(6,913)(6,168)Net Current Assets		
33,694
21,716
Geraldine McGinty						
Chairperson
Long Term Receivables						Audit, Finance & Risk Committee
Receivables: amounts falling due after more than one year
16
288
603
Provisions						Provisions for Liabilities and Charges
18(350)(2,326)						
Pensions						Deferred Pension Funding Asset
19 (f)
210,130
176,782
Pension Liability
19 (e)(210,130)(176,782)
Total Net Assets		
279,540
255,499
Representing:						Capital Account12
245,908
235,506
Retained Revenue Reserves		
33,632
19,993
		
279,540
255,499

32

Statement of Cash Flow

For Year Ended 31 December 2020		20202019			
Notes
€’000
€’000
Net Cash Flows From Operating Activities											Excess Income over Expenditure		
24,041
23,193
Reduction in Value of Fixed Assets							- Industrial Property
10
12,971
10,782- Other Fixed Assets & Telecommunication Assets
10
4,654
4,428
Expenditure Capitalised
8 (a)
(590)
(772)
(Profit) / Loss on Disposal of Assets
6(5,767)56
Bank Interest
5(1)
Contribution to the Exchequer
11(Increase) / Decrease in Receivables amounts falling due within one year16
(13,518)
353
Increase / (Decrease) in Payables amounts falling due within one year
17
745
(26)
(Decrease) in Provisions and Charges
18(1,976)(297)
Decrease / (Increase) in Receivables amounts falling due after more than one year
16
315
(603)
Net Cash Inflow from Operating Activities		
20,875
37,113							Cash Flows from Investing Activities							Acquisitions		
(37,213)(63,558)
Disposals		
15,54325,296Net Cash Flows from Investing Activities		
(21,670)(38,262)							Cash Flows From Financing Activities							Bank Interest Received		1
Net Cash Flows from Financing Activities		1														Net (Decrease) in Cash and Cash Equivalents		
(795)(1,148)Cash and cash equivalents at 1 January		
5,281
6,429
Cash and Cash Equivalents at 31 December		
4,486
5,281
																				

33Notes to the Financial Statements
1

Accounting Policies
The basis of accounting and significant accounting policies
adopted by IDA are set out below. They have all been appliedconsistently throughout the year and the preceding year:(a) General Information
IDA Ireland’s head office is located at Three Park Place, Hatch
Street Upper, Dublin 2, D02 FX65. IDA Ireland is a Public
Benefit Entity (PBE). A Public benefit entity provides goods orservices for the general public, community or social benefit
and where any equity is provided, it is to support the entity’s
primary objectives rather than with a view to providing afinancial return to equity providers, shareholders or
members.
IDA Ireland’s primary objective as set out in Part II S8 of theIndustrial 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 Preparation
The Financial Statements have been prepared in accordancewith the historical cost convention, modified in compliancewith Financial Reporting Standard 102 (FRS 102) issued by
the Financial Reporting Council in the form approved by the
Minister for Business, Enterprise and Innovation with theconsent of the Minister for Public Expenditure and Reform.
The presentation currency of the Financial Statements of
IDA Ireland is in Euro. The functional currency of IDA Irelandis considered to be Euro as it is the primary economic
environment in which the agency operates.

34(c) Revenue
Oireachtas Grants
Revenue is generally recognised on an accruals basis: theone exception being Oireachtas Grants which are recognised
on a cash receipts basis.

Refunds of Grants Paid
Grants paid become refundable in certain circumstances,such as liquidation / dissolution of the recipient company, or
if the conditions of the grant are not met. Grant refunds arerecognised when it is probable that the money will bereceived by IDA and the amount can be estimated reliably;
therefore they are accounted for on an accruals basis.

For Year Ended 31 December 2020
Tangible Fixed Assets are stated at cost less accumulated
depreciation and provision for impairment. Depreciation isprovided 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 estimateduseful 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

Interest income is recognised on an accruals basis using theeffective interest rate method..

Residual value represents the estimated amount which
would currently be obtained from disposal of an asset, after
deducting estimated costs of disposal, if the asset werealready of an age and in the condition expected at the endof its useful life.

Rental Income

Impairment of Property, Plant and Equipment

Interest 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 use of
undeveloped lands and estate maintenance charges billed totenants and are accounted for on an accruals basis.

Other Revenue
Other revenue is recognised on an accruals basis.

(d) Grants Payable
Grants are accrued in the Financial Statements when the
grantee complies with stipulated conditions.

(e) Tangible Fixed Assets
Tangible Fixed Assets comprise :(i) Land which is held for the purposes of industrial
development.
(ii) Site development works.
(iii) Industrial buildings leased to tenants including buildings in
the course of sale where title had not passed at the year end.
(iv) Vacant property available for industrial promotion or in thecourse of sale where title had not passed at the year end.
(v) Other Fixed Assets including computer and office equipment
and fixtures and fittings.

Provisions for impairments may be made following reviewsof fixed assets and telecommuniaction assets carried out by
officers of IDA or independent valuers, as appropriate, if
events or changes in circumstances or economic conditions
indicate that the carrying amount of the assets may not be
fully recoverable. Any such provisions will be recognised in
the Statement of Income and Expenditure and Retained
Revenue Reserves in the year in which they are made. Wherea subsequent review indicates that the circumstances whichgave rise to a provision for impairment no longer exists orhave changed materially the accumulated provision for
impairment will be reduced accordingly.
If there is objective evidence of impairment of the value of anasset, an impairment loss is recognised in the Statement of
Income and Expenditure and Retained Revenue Reserves inthe year.
Reversals of impairments in previous years are accounted forthrough the Statement of Income and Expenditure andRetained Revenue Reserves.

Notes to the Financial Statements (continued)(f) Industrial Property
Industrial Property included in tangible fixed assets has beenacquired, developed or constructed for the purposes ofassisting in the promotion and development of industry
and is not considered to be investment property but normal
fixed assets.
The cost of land, site development and industrial property
includes an apportionment of administration costs
associated with the acquisition or development of the assets.
By way of memorandum Income and Expenditure in respectof 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 designatedportion of a global telecommunications network for a periodof 25 years from 2000.

(v) Amounts due in respect of joint arrangements.
(vi) Amounts due in respect of loans advanced and interest
thereon.

(i)(j)

Provisions for liabilities and charges comprise:(i)Amounts provided in respect of potential costs associatedwith the dilapidations provision of operating leases.
Amounts provided where the future costs arising underoperating leases are estimated to exceed the amounts
recoverable from sub lessees.

(ii)(k) Foreign Currencies
Monetary assets and liabilities denominated in foreign
currencies are translated at the exchange rates ruling at theStatement of Financial Position date. Revenues and costs aretranslated at the exchange rates ruling at the dates of theunderlying transactions.

(h) Receivables
Receivables are recognised at fair value, less a provision for
doubtful debts. The provision for doubtful debts is a specificprovision, and is established when there is objective
evidence that IDA will not be able to collect all amounts
owed to it. All movements in the provision for doubtful debts
are recognised in the Statement of Income and Expenditure
and Retained Revenue Reserves. Receivables include :(i) Properties sold on a deferred basis. Interest is charged onthese amounts at the Exchequer Lending Rates advised by
the Department of Finance or the EU Discount Reference
Rate as applicable.
(ii) Rents due under the terms of lease agreements, for periodsof up to 35 years, entered into between the Agency andtenants, 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 notpassed to the Agency at 31 December, and the provision ofother services.
(iv) Amounts due in respect of the disposal or leasing of
telecommunication assets.

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.

Profits and losses arising from foreign currency translations
and on settlement of amounts receivable and payable inforeign currency are dealt with in the Statement of Income
and Expenditure and Retained Revenue Reserves.

(l)Leases
The rentals under operating leases are dealt with in the
Financial Statements as they fall due. In the case of industrial
property available for promotion a provision is made, whereapplicable, 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 theStatement 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

For Year Ended 31 December 2020
made provision for the dissolution of Forfás and provided for:the establishment of IDA Ireland, Enterprise Ireland andScience Foundation Ireland as separate legal employers;
each agency developing its own pension scheme noting that
staff who are/were members of the Forfás Pension Scheme
join the new Agency Schemes on superannuation terms noless favourable than those they enjoyed under the Forfás
Scheme immediately before the date of transfer, agencies’
own staff becoming members of these schemes; and theseagencies accounting for the associated Pension Liabilities
under FRS102. The Department of Enterprise, Trade and
Employment assumes legal responsibility for the existing
Forfás pension schemes, pensioners and former staff withpreserved benefits.
Under the Public Service Pensions (Single Scheme and otherprovisions) Act 2012 new entrants to the Public Service on orafter 1 January 2013 become members of the Single PublicService Pension Scheme.
IDA has the full legal responsibility for its employees as theirlegal employer. This includes responsibility for the pensionsof 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 Enterprise, Trade and Employment and fromcertain contributions deducted from staff salaries.
Pension costs reflect pension benefits earned by employees
in the period and are shown net of retained staff pension
contributions. An amount corresponding to the pension
charge is recognised as income to the extent that it isrecoverable, and offset by grants received in the year todischarge pension payments.
Actuarial gains or losses arising on scheme liabilities arereflected in the Statement of Comprehensive Income and acorresponding adjustment is recognised in the amountrecoverable from the Department of Enterprise, Trade35
and Employment.

Notes to the Financial Statements (continued)
The recoverable amount is the higher of an asset’s fair valueless cost to sell and value in use.

Pension liabilities represent the present value of future
pension payments earned by staff to-date. Deferred pension
funding represents the corresponding asset to be recoveredin future periods from the Department of Enterprise, Tradeand Employment.

Retirement benefit obligation
The assumptions underlying the actuarial valuations forwhich the amounts recognised in the financial statements
are determined (including discount rates, rates of increase in
future compensation levels and mortality rates) are updated
annually based on current economic conditions, and for any
relevant changes to the terms and conditions of the pension
and post-retirement plans.

Pension scheme liabilities are measured on an actuarial basis
using the projected unit credit method.

(n) Critical Judgements, Estimates and Assumptions
In the application of IDA Ireland’s accounting policies,
management are required to make judgements, estimatesand assumptions about the carrying amounts of assets andliabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on
historical experience and other factors that are considered
to be relevant. Actual results may differ from theseestimates.
The estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates arerecognised in the period in which the estimate is revised if
the revision affects only that period, or in the period of therevision and future periods if the revision affects bothcurrent and future periods.
The following judgements and estimates have had the mostsignificant effect on amounts recognised in the financial
statements:

Residual values and depreciation of assets
Management have reviewed the asset lives and associatedresidual values of all fixed asset classes, and have concluded
that asset lives and residual values are appropriate.

Impairment reviews of assets
Assets that are subject to amortisation are reviewed for
impairment whenever events or changes in circumstancesindicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which
the asset’s carrying amount exceeds its recoverable amount.

36

The assumptions can be affected by:
the discount rate, changes in the rate of return on highquality corporate bonds(ii) future compensation levels, future labour market conditions(iii) changes in demographics(i)

Provisions
The Agency makes provisions for legal and constructive
obligations, which it knows to be outstanding at the period
end date. These provisions are generally made based on
historical or other pertinent information and adjusted forrecent trends where relevant. However, they are estimatesof the financial 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.

For Year Ended 31 December 2020

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 Oireachtas Grants as shown in the Financial Statements consist of the following
sums paid from Vote 32 - Enterprise, Trade and Employment:			
				
2020
2019
				
€’000
€’000
Grant for Promotion and
Administration Expenditure		 Vote 32 - Subhead A5 (i)62,10952,718Grant for Industry 		 Vote 32 - Subhead A5 (ii)
96,00096,745Grant for Industrial Property Vote 32 - Subhead A5 (iii)
39,00049,055
				197,109
198,518
The Grant for Promotion and Administration Expenditure of €62.109m:- includes an additional allocation of €10m to support IDA promotional and		 marketing initiatives announced as part of the July stimulus package- is stated net of employee pension contributions of €1,068,494 (€951,808 - 2019) 		
		 remitted to the Exchequer.				
						
3 National Training Fund					Included in the training grant payments of €12.736m (see note 7) are training grant 		
payments of €3m (€3m in 2019) which were met with funds received through the 		
Department of Enterprise Trade and Employment from the National Training Fund, 		
which is administered through the Department of Education & Skills. Payments madeare in compliance with the statutory requirements of the Fund as provided for in 		
section 7 of the National Training Fund Act, 2000.			
						
4 Grant Refunds					When the conditions of a grant agreement are breached by a client company, the 		
grant is recoverable. During the year the Agency recovered €0.917m (€1.682m in 		2019) relating to grant refunds.			
					
5 Other Income			
2020
2019
				
€’000
€’000
Private sector sublets of Leased Office Accommodation
(9)
1,469
Bank Interest			1
Fee Income in respect of Undeveloped Lands
440
698
Interest on Industrial Property Transactions
231
3
Sundry Income 			
70
75
				
732
2,246

6

For Year Ended 31 December 2020

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

2020
€’000
15,543(17,640)
21
7,843
5,767

2019
€’000
25,296(63,517)
10,626
27,539(56)

The profit on disposal comprises of profits of €6.372m, losses of €0.605m resulting in
net profit on disposal of €5.767m.			
				
7 Grants Payable			
2020
2019
				
€’000
€’000
Capital			
18,68023,030
Employment			
6,359
6,887
R&D			
68,30959,583Training			
12,736
10,848Other Grants			
362
300
				
106,446
100,648
In 2020 €1.34m was paid under a Medicinal Products for Covid 19 scheme and €76k 		
was paid under a Covid 19 Business Continuity Scheme.

8

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

2020
€’000
287
29,843
10,446
13,461
62
(29)

2019
€’000
322
28,38912,52016,462
58
(18)

(590)
53,480(772)
56,96137

Notes to the Financial Statements (continued)
8(b)			
Other remuneration costs comprise:
Staff short-term benefits			
Employers contribution to social welfare
Termination Benefits			
Retirement benefit costs			
				

2020
€’000
27,9351,904
429,843

2019€’000
26,6151,771
328,389The total number of staff employed (WTE) at year end was 324 (2019 : 322)		
						
8 (c) 			20202019Staff Short Term Benefits			
€’000
€’000
Basic Pay			
27,933
26,583
Overtime			2
32
Allowances							
27,935
26,615
In 2020 €767k of Additional Superannuation Contribution has been deducted and 		paid over to the Department of Enterprise, Trade and Employment.			
						
8 (d)					Permanent Salary Breakdown						
Employee Benefits			
2020
2019
€60,000 to €70,000			
34
43€70,001 to €80,000			
35
32€80,001 to €90,000			
28
31€90,001 to €100,000			
33
20€100,001 to €110,000			
11
9€110,001 to €120,000			
5
1€120,001 to €130,000			
1
2€130,001 to €140,000			
1€140,001 to €150,000			
2
5€150,001 to €160,000			
9
10€160,001 to €170,000			
3
1€170,001 to €180,000			
1€180,001 to €190,000			
1
1

38

For Year Ended 31 December 20208(e) 					Key Management Personnel 			
Key Management personnel in IDA consists of the members of the Board, the Chief 		
Executive Officer, the Executive Director and the Divisional Managers. The total valueof employee benefits for key management personnel is set out below:			
				
2020
2019
				
€’000
€’000
Basic Pay			
1,368
1,371
Allowances			Termination benefits			
Health Insurance			
				
1,368
1,371

8

(f) 			Chief Executive Remuneration
Mr Martin Shanahan			Total			2020
€188,808
188,8082019€
184,536
184,536

The Chief Executive Officer (CEO) receives an annual salary of €191,626 effective from1st October 2020. The CEO’s pension entitlement does not extend beyond the 		
standard public sector pension arrangements.				
8 (g) 							Annual Rent Payable in respect of Leased Office Accommodation					
Number of Lease Expiry
Gross Rent
Net Rent		
Offices
Date
PayablePayable
				
€’000
€’000
Head Office
1
2043
7,769
3,924
Regional Offices
42021-2028
330
330
Overseas Offices
192021-2029
2,347
2,347
				
10,4466,601(i) In the case of Head Office and ten overseas offices, accommodation is co-located with other State 		Agencies and / or the Irish Government Missions. Net rent payable takes account of amounts received 		from other State bodies and private tenants that occupy part of the office buildings concerned.		
(ii) The IDA renewed 4 overseas leases in 2020.		
(iii) Two overseas office leases contain a break clause in 2024.
(iv) The Agency does not own any property which is used or available for the accommodation of its staff.

						

Notes to the Financial Statements (continued)

For Year Ended 31 December 20208(h)							Commitments under Operating Leases							At 31 December the commitment under operating leases is €184.361m.
These leases will expire as follows:									2020			2019					€’000			
€’000			
		Non-Industrial
Industrial Property
Industrial Property
Non-Industrial
Industrial Property
Industrial Property
		Property
Occupied
Available for
Property
Occupied
Available for			under leases
Promotion 		
under leases
Promotion
within one year
in the second to fifth years inclusive
more than 5 years		

10,44637,420136,495
184,361--

10,431
38,116
147,153
195,700

6
6-

9

Industrial Building Charges		
11 Contribution to the Exchequer 			
These charges include the net costs associated with industrial buildings provided byDuring 2020 and 2019 IDA Ireland received sanction from DETE to retain Own
the private sector and maintenance costs in respect of all promotable industrial 		
Resource Income generated. Excess own resource Income above this level and any 		
buildings held by IDA. Costs comprise: professional, legal and consultancy costs 		
unused Own Resource Income was refundable to DETE, as a contribution to the 		€2.445m [2019 €2.607m], net operating lease costs €0.004m [2019 €0.223m] and 		
Exchequer. In 2020, IDA Ireland received sanction from DETE to retain the €0.725m 		
business park maintenance costs €7.815m [2019 €8.369m], reduced by the net 		
unused Own Resource Income in 2019. In 2021, IDA Ireland received sanction from 		
movement on provisions in respect of operating leases (as set out in note 18) €1.976m
DETE to retain €0.659m unused Own Resource Income in 2020, resulting in nil 		[2019 €0.297m].					contributions paid to the Exchequer in 2020 and 2019.
					
10 Reduction in Value of Fixed Assets		 20202019
12 Capital			2020		
2019
			
Notes
€’000
€’000
		
Notes
€’000
€’000
€’000
€’000
Depreciation Charges			
At 1 January			
235,506		
211,738- Industrial Property
13
13,836
9,936
Net Movements on:							- Other Fixed Assets
14
4,654
4,428
- Industrial Property
13
13,868		
13,004		
Impairment Charges / (Reversals)				
- Other Fixed Assets
14(3,466)		
10,764				- Industrial Property
13
(865)
846
Transfer from Statement				17,625
15,210of Income and Expenditure 			10,402		
23,768At 31 December			
245,908		
235,506
Depreciation is calculated in order to write off the cost of assets less, where applicable, any 		
impairment provision over their estimated remaining useful lives. No provision for depreciation
is made in respect of land or investments.

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

						

						
											
					39

Notes to the Financial Statements (continued)

For Year Ended 31 December 2020

13 Tangible Fixed Assets - Industrial Property 					
2020
2019
		
		
Land
Site
Industrial
Industrial
Total				LandSiteIndustrial
Industrial
Total
			 DevelopProperty
Property		
DevelopProperty
Property			
ment
Occupied Available for		
ment
Occupied
Available for				 under Leases Promotion
			 under Leases
Promotion
Cost
€’000
€’000
€’000
€’000
€’000		
€’000
€’000
€’000
€’000
€’000
At 1 January257,784
149,872
34,04340,248
481,947
272,060
159,003
23,20435,188489,455
Additions
8,759
12,23015,626
36,615
12,874
10,77625,34848,998Transfers
8,197(8,197)
10,839(10,839)
Disposals(7,072)(9,790)(778)(17,640)(27,150)(19,907)(9,449)(56,506)
At 31 December
259,471
152,312
42,24046,899500,922257,784
149,872
34,04340,248
481,947
					Provision for Impairment					At 1 January
105,803
195
977
2,289
109,264
113,824
198
977
4,045
119,044
Charge / (Reversal) for Year
(865)
(865)
846
846
Transfers
		Disposals(21)(21)(8,867)(3)(1,756)(10,626)
At 31 December
104,938
174
977
2,289
108,378
105,803
195
977
2,289
109,264					Provision for Depreciation					At 1 January
137,434
10,575
3,104
151,113147,270
9,431
5,144
161,845
Charge for Year
11,347852
1,637
13,836
7,818
606
1,512
9,936
Transfers
745
(745)
538
(538)
Write back on depreciation of Disposals (7,796)(47)(7,843)(17,654)(3,014)(20,668)
At 31 December
140,985
12,172
3,949
157,106
137,434
10,575
3,104
151,113
					
Net Book Amount					At 31 December
154,533
11,15329,091
40,661
235,438
151,981
12,24322,491
34,855
221,570
At 1 January
151,981
12,24322,491
34,855
221,570
158,236
11,535
12,79625,999208,566
Net Movement for Year					13,868									
13,004(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 tothe 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.

40

Notes to the Financial Statements (continued)
14 Other Fixed Assets
		
		
Cost
At 1 January
Additions
Disposals
At 31 December

2020		
Office and Computer Equipment,
Total
Fixtures & Fittings 		
€’000
€’000
22,16522,165
1,188
1,188
23,35323,353

For Year Ended 31 December 20202019			Office and Computer Equipment,
Total
Fixtures & Fittings		
€’000
€’000
13,844
13,844
15,332
15,332(7,011)(7,011)
22,16522,165

Provision for Depreciation						At 1 January
8,229
8,229
10,672
10,672
Charge for Year
4,654
4,654
4,428
4,428
Disposals(6,871)(6,871)
At 31 December
12,883
12,8838,229
8,229
Net Book Amount						At 31 December
10,47010,47013,936
13,936
At 1 January
13,936
13,9363,172
3,172
Net Movement for Year(3,466)(3,466)
10,764
10,764											41

Notes to the Financial Statements (continued)
15 Telecommunication Assets

18 Provision for Liabilities and Charges

Acting pursuant to a Government decision IDA Ireland, in conjunction with the
Department of Public Enterprise (now the Department of Communications, Energy
and Natural Resources), entered into contracts in 1999 for the purchase of
telecommunication assets in the form of an indefeasible right of use of a designatedportion of a global telecommunications network for a period of 25 years from 2000.
A portion of the capacity purchased by IDA was sold to a number of service providers.
The remaining assets have an historical cost of €38.85m, which amount has been
written off by way of an impairment charge of €21m in 2002 and aggregate
depreciation of €17.85m over 8 years from 2000, resulting in a net book value of €Nil.

Operating Leases Provision
At 1st January
Net (reduction) for the year
Total at 31st December

For Year Ended 31 December 2020
2020
€’000
2,326
(1,976)
350

2019
€’000
2,623
(297)
2,326

The Operating Leases Provision comprises:			- Potential building reinstatement costs associated with obligations underoperating leases.			
- Future costs arising under operating leases estimated to exceed the amounts 				 recoverable from sub lessees (2019). There will be no future costs arising post 2020,
		 due to the expiry of all leases.			
16 Receivables
2020
2020
2019
2019
				
Amounts falling due
€’000
€’000
€’000
€’000
19 Pensions			
within one year:		(a)Accounts Receivable and36,792		
23,422
IDA has responsibility for the pension costs of staff retiring from IDA post 16th July 		Prepayments			
2014, under the Industrial Development (Forfás Dissolution Act 2014). Staff who are/Provision for Doubtful debts(671)		(819)
were members of the Forfás Pension Scheme join the new IDA Scheme on			 36,121		
22,603superannuation terms no less favourable than those they enjoyed under the Forfás 					 36,121		
22,603
Scheme immediately before the date of transfer from Forfás to IDA. The following 		schemes are operated by the IDA:			
Amounts falling due after				
more than one year:					Staff Covered			Amount due from sub lessee in
288		
603
(a) Staff recruited up to 5 April 1995 who became pensionable after that date.		
relation to fit out costs 		
288		
603
(b) Staff recruited after 5th April 1995 and before 1st January 2013.			
			
36,409		
23,206(c) Staff recruited since 1st January 2013, who are members of the Single
Public Service Pension Scheme.
(i) Included in receivables and prepayments are amounts of €24.568m in down 		(d) Staff recruited since 1st January 2013, who joined the Forfás Pension Scheme 				payments on property transactions, mainly reflecting payments to solicitors’ escrow		 (now the new IDA Scheme) as they were pre-existing members of another public 		
		accounts on property purchases, three transactions are expected to complete by		 service scheme (with no more than six months break in service post 1st January 		Q2 2021 and it is anticipated that the other transactions will complete by Q4 2021.
		 2013).			
(ii) The long term Debtor of €288,000 represents monies due from SEAI in relation to						
the fit out costs of the new Global Headquarters occupied by IDA and other agencies.
Each of the Schemes include Spouses and Children’s schemes.			
In 2019 the parties agreed a 3 year repayment schedule.
						

17 Payables
Amounts falling due within one year:
Accounts Payable and Accruals
Amount due on Uncompleted Sales
		

42

2020
€’000
5,989
924
6,913

2019
€’000
5,451
717
6,168

Notes to the Financial Statements (continued)
The new Single Public Service Scheme (“Single Scheme”) commenced with effect from
1 January 2013. All new entrants to pensionable public service employment on or after
1 January 2013 are, in general, members of the Single Scheme. The rules of the Single
Scheme are set down in the Public Service Pensions (Single Scheme and Other
provisions) Act 2012. Pension liabilities in relation to those individuals employed 		
under the Single Public Service Scheme for less than 2 years have not been included in
the pension calculation as they will not have accrued pension rights until after 2 years
service is attained.

For Year Ended 31 December 2020

			(c) Analysis of Total Pension Charge		Service costs		Interest on Pension Scheme Liabilities
		
Employee Contributions utilised in payment of Pensions
			

2020
€’000
7,031
2,108
(1,069)
8,070

2019
€’000
6,207
2,910
(952)
8,165

(d) Analysis of amount recognised in Statement		of Comprehensive Income		Experience (Losses) / Gains		
Changes in assumptions (Losses)
		Actuarial Gain / (Loss)

2020
€’000
(7,344)(19,124)(26,468)

2019
€’000
344
(16,060)(15,716)

2020
€’000
176,7827,031
2,108(2,259)26,468210,130

2019€’000
153,9426,207
2,910(1,993)
15,716
176,782

2020
€’000

2019
€’000

9,139
(2,259)
6,880

9,117
(1,993)
7,124

IDA meets the net costs arising from normal retirements. These are paid out of current
income. Contributions received by IDA from staff in the contributory unfunded 		schemes outlined above are used to part fund ongoing pension liabilities.		
					
Under the Financial Measures (Miscellaneous Provisions) Act 2009 the assets of the 		(e) Pension Liability
		Change in Pension Schemes’ Liabilities
Former Industrial Development Authority were transferred to the National Pension 				Opening Balance
Reserve Fund on 31 December 2009. The pension schemes associated with these two
Current Service Cost
funds continue in force for existing members with no impact on benefits or associated 				Interest Costs
provision for members. IDA Ireland remits employee contributions to the Exchequer. 		
		
Payments to Pensioners
Total employee contributions of €1.069m for these schemes were remitted by IDA to		
Actuarial Lossthe Exchequer in 2020 and pension costs at retirement are paid by Oireachtas Grant
		Present Value of Schemes’ Obligations at 31 December
Vote No 32 subhead A5 (i).			
					
			
(b) Pension Disclosure under FRS102			
(f) Net Deferred Funding for Pensions in Year
Financial Reporting Standard 102 (FRS102) requires financial statements to reflect at
Funding Recoverable in respect of Current Year
fair value the assets and liabilities from an employer’s superannuation obligations and 				
pension costs
any related funding and to recognise the costs of providing superannuation benefits		
Funding to pay Pensions
in the accounting periods in which they are earned by employees.			
									
											
			

			

43

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 establishmentof the superannuation schemes, and the policy and practice currently in place in 		
relation to funding public service pensions including contributions by employees andthe annual estimates process. IDA has no evidence that this funding policy will not 		
continue to meet such sums in accordance with current practice.

For Year Ended 31 December 2020(h) History of defined Benefit Obligations - Commenced 2014				
		
2020
2019
2018
2017
2016
Year Ending 31 December
€’000
€’000
€’000
€’000
€’000
Defined Benefit Obligation 210,130
176,782 153,942 151,667 139,918
Experience gains / (losses) on Scheme Liabilities:
Amount(7,344)344
Percentage of Scheme
Liabilities(3.5%)
0.2%

		
19
117

3,954

The deferred funding asset for pensions at 31 December 2020 amounted to 		
2.6%
0.0%
0.1%
€210.130m (2019 - €176.782m). The quantification of the liability is based on the 		
financial assumptions set out in note 19(g). The assumptions used, which are based on
Total (loss) / gain recognised in Statement of Comprehensive Income:			
actuarial advice, are advised to the Department of Enterprise Trade and Employment.
Amount(26,468)(15,716)
5,660(4,095) (27,647)
					Percentage of Scheme(g) Valuation						Liabilities(12.6%)(8.9%)
3.7%(2.7%) (19.8%)
The valuation used for FRS102 disclosures has been based on a full actuarial valuation
at 31 December 2020. The financial assumptions used to calculate scheme liabilities						
under FRS102 as at 31 December were as follows;				
20 Commitments												It is estimated that future payments likely to arise from Grant Commitments
Valuation method amounted to €386m as at 31 December 2020, estimates payable as follows; 2021 		
Projected Unit
2020
2019
2018
2017
2016
€105m, 2022 €89m, 2023 €76m, 2024 €56m, 2025 €35m, 2026 €17m, 2027 €8m.
Discount rate
0.8% p.a. 1.20% p.a.
1.90% p.a. 1.95% p.a. 1.90% p.a.
(At 31 December 2019 the estimate was €364m, estimates payable as follows; 2020
Future salary€104m, 2021 €94m, 2022 €75m, 2023 €44m, 2024 €31m, 2025 €13m, 2026 €3m). 		
increases
3.00% p.a. 3.00% p.a.
3.30% p.a. 3.40% p.a. 3.35% p.a.
Capital Commitments outstanding at 31 December 2020 on contracts for the
Future state
acquisition and development of Industrial Property amounted to €48m (2019 : €44m).
pension increases 3.00% p.a. 3.00% p.a.
3.30% p.a. 3.40% p.a. 3.35% p.a.
				
Future pension
21 Taxation					increases
2.50% p.a. 2.50% p.a.
2.80% p.a. 2.90% p.a. 2.85% p.a.
Section 227 of the Taxes Consolidation Act, 1997, provides an exemption from tax for
Future Inflation
1.50% p.a. 1.50% p.a.
1.80% p.a. 1.90% p.a. 1.85% p.a.
income of non-commercial state bodies. This exemption does not apply to deposit 		interest. Where interest receivable is subject to tax at source (e.g. DIRT), the net 		Year of attaining age 65				
2020
2040
receivable amount is credited to the Operating Account.
Life expectancy - male				
21.5
23.9
Life expectancy - female				
24.0
26.0
In some countries in which the Agency operates, an exemption from local taxation has			been availed of under the Governmental Services article of the relevant double 									taxation agreement. This position continues to be under review by the Agency which is				
actively seeking clarification to determine whether overseas employment taxes arisein any of the jurisdictions where this exemption has been availed of. The review could
result in a liability to taxes but in view of the uncertainty in relation to the amount, if 		
any, of such possible contingent liability no provision has been made in the financial
statements for the year ended 31 December 2020.			

44Notes to the Financial Statements (continued)

For Year Ended 31 December 2020

22 Industrial Property Income and Expenditure				24 Contingent Liability								 2020
Income:Notes€’000
Oireachtas Grant
39,000Rental Income IDA Ireland Client Companies		
3,545
Fee Income in respect of Undeveloped Lands
5
440
Interest on Industrial Property Transactions
5
231
Profit on Disposal of Industrial Property		
5,754
			 48,970

2019
€’000
49,055
2,565
698
3
84
52,405

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. As the 		
number of jobs which were subsequently created and verified is less than the numberof jobs provided for in that payment, a partial refund of this payment has been sought.
Expenditure:				
The service provider disputes IDA’s claim and the matter is now the subject ofPromotion, Administration and General Expenses		
1,590
1,584
arbitration proceedings between the parties.			
Industrial Building Charges
9
8,288
10,902						
Depreciation Charges and Provisions
10
12,971
10,78225 Approval of Financial Statements						 22,849
23,268The Financial Statements were approved by the Board on 13th May 2021.		
Net Movement for Year		
26,121
29,137						
Transfer (to) Capital
12(13,868)(13,004)
		Contribution to Promotion and Administration activities		
12,253
16,133						
											
					
23 Related Party Disclosures										
Please refer to Note 8 for a breakdown of the remuneration and benefits paid to key 							management.
						In the normal course of business the Agency may approve grants and may also enter
into other contractual arrangements with undertakings in which IDA Board members
are employed or otherwise interested.
The Agency adopted procedures in accordance with the guidelines issued by the 		
Department of Public Expenditure and Reform covering the personal interests of 		
Board members and these procedures have been adhered to by the Board members 		
and the Agency. During 2020 two transactions required disclosure being income 		
received of €7.095m and expenditure of €447k as they relate to companies in which
relevant Board members are employed.
In cases of potential conflict of interest, Board members do not receive Board
documentation or otherwise participate in or attend discussions regarding these 		transactions. A register is maintained and available on request of all such instances.		
			45

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