Guidance Manual for Preparation of Appropriation Accounts 2012

Government Accounting Section Department of Public Expenditure and Reform anuar! 201"

Guidance Manual for Preparation of Appropriation Accounts 2012

#able of $ontents %ntroduction........................................................................................................................3 1& Accounting Policies........................................................................................................4 2& Standard Statement on %nternal 'inancial $ontrol...................................................4 "& Accounting for 'ixed Assets.........................................................................................5 A& Statement of General Principles..............................................................................5 (& Detailed Re)uirements.............................................................................................5 *& +perating $ost Statement ,-ote 1...............................................................................9 A& Statement of General Principles..............................................................................9 (& Detailed Re)uirements...........................................................................................13 /& State 'unding Account ,-ote 2&1..............................................................................14 A& Statement of General Principles............................................................................14 (& Detailed Re)uirements...........................................................................................14 0& $ommitments ,-ote 2&10...........................................................................................16 A& Statement of General Principles............................................................................16 (& Detailed Re)uirements...........................................................................................16 Global 'igure for $ommitments............................................................................16 Multi1annual $apital $ommitments......................................................................16 Public Private Partners2ips ,PPP..........................................................................17 3& Emplo!ee -umbers and Pa! ,-ote /.........................................................................20 A& Statement of General Principles............................................................................20 (& Detailed Re)uirements...........................................................................................20 4& 5egal $osts ,-ote 0......................................................................................................21 A& Statement of General Principles............................................................................21 (& Detailed Re)uirements...........................................................................................21 Appendix 11 Sample Asset -ote......................................................................................22 Appendix 21 %llustrative Example of Programme $osts..............................................23 Appendix "1 %llustrative Example of Pa! $osts............................................................24 Appendix *1 %llustrative Example of -on1Pa! $osts26

Government Accounting Section Department of Public Expenditure and Reform anuar! 201"

%ntroduction
The purpose of this manual is to provide clarification on issues which fre uentl! arise in the conte"t of the wor# of the $ffice of the %omptroller and &uditor 'eneral and ueries to the 'overnment &ccountin( section in the )epartment of *u+lic ,"penditure and -eform. %ircular 14.2012 sets out the re uirements for the 2012 &ppropriation &ccounts. This manual also provides additional (uidance on certain topics. %omments of /inance $fficers and staff of the accounts +ranches are welcome. *lease contact the 'overnment &ccountin( section0 )epartment of *u+lic ,"penditure and -eform1 (ovacc2per.(ov.ie

'overnment &ccountin( 3ection )epartment of *u+lic ,"penditure and -eform 4anuar! 2013

1& Accounting Policies

The accountin( policies0 which have (eneral application across )epartments0 $ffices and other 5ote holders0 for the !ear are set out at the +e(innin( of the &ppropriation &ccounts 5olume. The policies are determined +! the )epartment of *u+lic ,"penditure and -eform. 6n the 76ntroduction to &ccounts80 each &ccountin( $fficer should note an! departures from accountin( policies in their individual &ppropriation &ccounts0 and an! other issues of material si(nificance 9for e"ample0 transfer of functions:. ,"amples of departures include fi"ed assets0 commitments0 contin(ent lia+ilities and pu+lic private partnerships. )epartments must also state their policies for valuin( assets where the valuation method of the particular class of asset is not standard. 6n addition0 )epartments should provide a note for audit teams hi(hli(htin( the main chan(es in policies0 if applica+le0 for the relevant !ear.

2& Standard Statement on %nternal 'inancial $ontrol

$n foot of the 2002 -eport of the ;or#in( 'roup on the &ccounta+ilit! of 3ecretaries 'eneral and &ccountin( $fficers0 &ccountin( $fficers are re uired to si(n a standard 3tatement on 6nternal /inancial %ontrol in respect of the &ppropriation &ccounts. 6n their introductions the &ppropriation &ccounts0 some &ccountin( $fficers descri+e actions ta#en or planned to enhance particular aspects of internal control in the )epartments or $ffices concerned. The 3tatement has +een enhanced to include a statement on compliance with procurement (uidelines. The primar! circular0 %ircular 40.02 7*u+lic *rocurement 'uidelines80 is availa+le online1 http1..circulars.(ov.ie.pdf.circular.finance.2002.40.pdf. /urther information is also availa+le in the *u+lic /inancial *rocedures 93ection )20 *ara(raph 300 availa+le at1 http1..(ovacc.per.(ov.ie.files.2012.05.3,%T6$<=).pdf: and online at1 http1..per.(ov.ie.pu+lic=procurement=2. %irculars in relation to (overnment accountin( http1..(ovacc.per.(ov.ie.(overnment=accountin(=circulars. are availa+le online1

"& Accounting for 'ixed Assets

This section provides clarification in terms of appropriate treatment for purchases, transfers, additions etc. Issues regarding depreciation and in particular procedures for transfers, are also addressed.

A& Statement of General Principles

Capital Fixed Assets are tan(i+le assets which are permanent in nature with an economic useful life (reater than one !ear0 valued at a minimum of >10000 and are held for purposes other than investment or resale. ?erita(e assets0 the value of which cannot +e ade uatel! e"pressed in financial terms0 are not included. $r(anisations ma! choose to capitalise assets valued under >10000 9for e"ample if the! are movea+le and attractive such as mo+ile phones:0 or to a((re(ate items which are valued individuall! at less than >100000 and to appl! the criteria to the a((re(ate value. &ssets should +e included in the &sset -e(ister as at the date of ac uisition0 and are stated at cost less accumulated depreciation. %ost comprises all costs incurred in +rin( the asset to its present location and condition. @one! spent on fi"ed assets is referred to as capital e"penditure.

(& Detailed Re)uirements

)epartments must compile an &ssets -e(ister recordin( the description0 historical cost0 present value0 9i.e. depreciated historical cost: date of ac uisition and ph!sical location of each material capital asset. 6nformation on disposals and revaluations should +e entered in the re(ister as appropriate. The -e(ister should also record the depreciation rate +ein( applied and method +ein( followed. )epartments ma! have to e"ercise Aud(ement on the materialit! of an item e.(. whether hand tools are a material item in terms of the &sset -e(ister and as such should +e capitalised or whether the! are treated as consuma+les and are not capitalised. The openin( and closin( values of capital assets on a )epartmentBs &sset -e(ister and details of depreciation are shown +! wa! of note to the Calance 3heet. 6aluation 5aluation refers to the amount at which fi"ed assets are shown in the +alance sheet. The fi"ed asset is valued either at1 = its historical cost less the accumulated depreciation from the date of ac uisition0 or = its current value which is defined as the lower of replacement cost or recovera+le amount.

a) Land and Buildings = &ll lands and +uildin(s owned +! the 3tate and controlled or mana(ed +! a )epartment are included in the Calance 3heet 9and capital assets note:. ;here relevant0 the +asis of valuation of land and +uildin(s is e"plained in the &ccountin( $fficerDs introduction to the &ppropriation &ccount. = ;here land and +uildin(s are 9a: vested in the $ffice of *u+lic ;or#s or 9+: vested in a @inister +ut in fact controlled.mana(ed +! the $ffice of *u+lic ;or#s10 the! are included in the account for that $ffice. $therwise0 the! appear in the account for the relevant )epartment. = ;here lands or +uildin(s are vested in a @inister +ut are0 in fact0 controlled.mana(ed +! an outside +od!0 the! are not included as assets of the )epartment0 +ut the ownership of the asset is noted in the )epartmentBs &ccount. b) Furniture and Fittings = /urniture and fittin(s are valued at cost. c) I.T. Equipment = 6n (eneral 6.T. assets0 includin( peripherals and software0 should +e depreciated over 5 !ears. &n e"ception is @aAor $perational 3oftware s!stems which0 +ecause of its comple"it!0 usuall! should have a life of 10 !ears. = $peratin( software should +e capitalised separatel!. = &n! peripheral item which has a discrete role independent of an overall s!stem should +e noted as a separate asset in the &ssets -e(ister. d) Other Assets = ;here re uired0 accountin( policies in respect of valuation of other assets 9e.(. specialised vehicles: are set out in the &ccountin( $fficerDs introduction to the &ppropriation &ccount. e) Capital Assets under Devel pment = & statement on capital assets under development is provided as a note to the Calance 3heet. 6t shows cash pa!ments on assets durin( the !ear +ein( developed within the )epartment0 e.(. software development or construction proAects0 which were not !et reco(nised as assets at the end of the !ear of account. Subse)uent Expenditure on Assets = 3u+se uent e"penditure underta#en to ensure that the asset maintains its previousl! assessed standard of performance0 for e"ample routine repairs and maintenance e"penditure0 should +e reco(nised in the &ppropriation &ccount 9su+Aect to the matured lia+ilit! rule: and $peratin( %ost 3tatement as it is incurred. $nl! e"penditure that increases the future +enefits from the e"istin( asset +e!ond its previousl! assessed standard of performance is included in the (ross +oo# value0 e.(.0 an increase in capacit!.

1 or other state +od!0 for e"ample the <ational 'aller!.

The cost of an addition or e"tension to an e"istin( asset which is of a capital nature and which +ecomes an inte(ral part of the e"istin( asset is usuall! added to its (ross +oo# value. &n! addition or e"tension0 which has a separate identit! and is capa+le of +ein( used after the e"istin( asset is disposed of0 is accounted for separatel!.

Depreciation = = Eand is not depreciated. ;here relevant0 +uildin(s are depreciated as indicated in the &ccountin( $fficerDs introduction to the &ppropriation &ccount. , uipment0 furniture and fittin(s are depreciated on a strai(ht=line +asis usuall! at the followin( annual rates over their estimated useful lives1 o /urniture and fittin(s0 and telecommunications e uipment F 10G o 6T e uipment and software0 scientific and la+orator! e uipment and other office machiner! F 20G ;here re uired0 other capital items are depreciated as indicated in the &ccountin( $fficerDs introduction to the &ppropriation &ccount.

Purc2ases and Additions = = = 6n addition to inclusion in the &ssets -e(ister0 the cost of purchasin( the asset should +e reflected in the &ppropriation &ccount for the period incurred 9su+Aect to the matured lia+ilit! rule:. The depreciation char(ed should +e reflected in the $peratin( %ost 3tatement and the &sset <ote. /or purchases0 the value should +e in accordance with the a+ove principles.

Retirements and Disposals = The loss or (ain from the disposal should +e reflected in the $peratin( %ost 3tatement. The difference +etween the carr!in( amount of the asset +ein( disposed of 9i.e. the value shown in the &sset -e(ister: and the cash proceeds received as &ppropriations=in=&id is included in the $peratin( %ash 3tatement. 7;indfall8 receipts are treated as ,"che uer ,"tra -eceipts2 and details are provided in <ote 4 to the &ppropriation &ccount.

#ransfers = = Transfer of assets from one )epartment to another should +e treated as a disposal +! the ori(inatin( )epartment and an addition +! the receivin( )epartment at date of transfer. The item should +e received at its net +oo# value 9the cost price minus depreciation as per the ori(inatin( )epartment: and from that point forward0 depreciated in line with the receivin( )epartmentDs depreciation polic!.

2 3ection %5 *ara(raphs 15 and 19 of the *u+lic /inancial *rocedures refers. &vaila+le online1 http1..(ovacc.per.(ov.ie.files.2012.05.3,%T6$<=%.pdf

!elevant Circulars
= = = = &ssets -e(ister 9%ircular 1.1995: 5aluation of Eands and Cuildin(s 9%ircular 14.1996: Treatment of 6.T. &ssets in &ssets -e(isters and -elated @atters 9%ircular 1H.1997: 6ncrease in the 5alue Threshold for 6nclusion of &ssets in &sset -e(isters 9%ircular 2.2004:

*& +perating $ost Statement ,-ote 1.

This section will provide clarification regarding the relationship between the figures included under Changes in Assets and the balance sheet i.e. the non!cash items", and what should be included under #ote $.$.

A& Statement of General Principles

The operatin( cost statement 9$%3: shows total e"penditure first divided into *ro(ramme cost0 *a! cost and <on=*a! cost. The deduction for &ppropriations=in=&id is ta#en after the 7'ross ,"penditure8 su+total so as to (ive a net pro(ramme cost. 6ts purpose is to show0 on an accruals +asis0 the total amount of resources consumed +! a 5ote in the !ear. &s the &ppropriation &ccount is cash +ased0 it does not provide this information. This is +ecause it includes e"penditure on capital assets which will +e consumed over several !ears and it ma! include pa!ments to ac uire (oods or services which are consumed in the precedin( or followin( !ear e.(. accruals and prepa!ments. The statement produces the operatin( cost fi(ure on an accruals +asis +! startin( from the net e"penditure fi(ure0 ta#en from the &ppropriation &ccount showin( su+total for e"penditure on administration and e"penditure on services and pro(rammes0 and ma#in( a series of adAustments to that cash=+ased fi(ure. These adAustments involve1 = identif!in( the chan(es in various cate(ories of )epartmental assets for the !ear of account = the inclusion of e"penditure +orne elsewhere on +ehalf of the )epartment e.(. superannuation costs0 accommodation costs0 shared services costs etc. The components of the $%3 can +e considered under specific cate(ories a. $as2 Expenditure "r gramme C st# "a$ C sts and % n&"a$ C sts = "r gramme c sts refers to the total e"penditure 9pa! and non=pa!: attri+uta+le to e"penditure on pro(rammes which does not include the administrative pa! and non=pa! elements as included administration su+heads 9&.10 &.20 C.10 C.20 etc.: in <ote 3a= *ro(ramme ,"penditure +! 3u+head. = "a$ c sts refers to the administration pa! amount. The amount should correspond with the total recorded under the &dministration <ote 9&.1 3alaries0 ;a(es and &llowances: on the face of the &ppropriation &ccount0 and also e ual the sum of the &dministration *a! as +ro#en down under <ote 3a= *ro(ramme ,"penditure +! 3u+head. = % n&"a$ C sts refers to the administration non=pa! amount. The amount should correspond with sum of non=pa! items recorded under the &dministration <ote on the face of the &ppropriation &ccount0 and also e ual the sum of the &dministration <on=*a! as +ro#en down under <ote 3a= *ro(ramme ,"penditure +! 3u+head.

6llustrative e"amples hi(hli(htin( the distinction across these cate(ories is provided in &ppendi" 20 3 and 4 %et E'penditure This should +e ta#en from the &ppropriation &ccount showin( a su+total for e"penditure on administration and e"penditure on services and pro(rammes less the appropriations= in=aid. b. 6ote Expenditure1 (alance S2eet %tems Changes in Capital Assets The first adAustment to the <et e"penditure fi(ure is the removal of cash transactions relatin( to the purchase and disposal of capital assets and the insertion instead of the current char(es pertainin( to capital assets i.e. depreciation and the (ain or loss on disposals. "urchases Cash This is the amount char(ed to the &ppropriation &ccount in the !ear of account in respect of the purchase of %apital &ssets. 6t is deducted from the net e"penditure. 6t ma! differ from the 7&dditions8 fi(ure in the 3tatement of %apital &ssets +ecause the fi(ure in that allows for an! accrued capital e"penditure 9e.(. e uipment delivered +efore !ear end +ut not paid for until the followin( !ear:. Disp sals Cash This fi(ure represents the cash proceeds of an! disposals of capital assets durin( the !ear. This is included in the &ppropriations=6n=&id fi(ure on the &ppropriation &ccount0 there+! reducin( the <et e"penditure. 6n order to remove it from the e"penditure0 it must +e added +ac#. 96t is the converse of 7*urchases %ash8:. The fi(ure does not appear in the 3tatement of %apital &ssets. ()ain)*L ss n Disp sals This represents the difference +etween the net +oo# value of an! assets disposed of 9i.e. the value shown in the &sset -e(ister: and the cash proceeds received as &ppropriations= in=&id on the disposal of such assets. The (ain or loss does not appear in the 3tatement of %apital &ssets +ut should have +een separatel! recorded as part of the &sset <ote. Changes in Assets +nder Devel pment &ssets under development0 shown in <ote 2.4 to the &ppropriation &ccount0 details pa!ments made durin( the !ear on the development of capital assets such as computer software which were not completed at !ear end and not added to the &ssets -e(ister.

10

Cash "a$ments , r Capital Assets +nder Devel pment This fi(ure is the total cash pa!ments in the !ear shown in the 3tatement of %apital &ssets under )evelopment. c. -on1$as2 $osts %ncurred Depreciati n This is the 7)epreciation for the Iear8 fi(ure0 shown in the 3tatement of %apital &ssets and is added as the measure of the uantit! of capital assets consumed durin( the !ear of account. d. Expenditure paid for in later !ears Changes in %et Current Assets This adAustment is necessar! to ta#e into account chan(es in the elements of wor#in( capital 9accruals0 prepa!ments0 stoc#s etc.: relatin( to current e"penditure. Increase*(Decrease) in Cl sing Accruals This fi(ure e uals the chan(e in the %losin( &ccruals fi(ures from the end of the previous !ear to the end of the current !ear. /or the purposes of <et $penin( &ccruals 9i.e. the <et %losin( &ccruals fi(ure from the previous !ear:0 &ccrued ,"penses and )eferred 6ncome are alwa!s ne(ative and *repa!ments and &ccrued 6ncome are alwa!s positive. /or <et %losin( &ccruals0 the situation is reversed. &ccrued ,"penses and )eferred 6ncome are alwa!s positive and *repa!ments and &ccrued 6ncome are alwa!s ne(ative. &(ain0 it is critical that the si(na(e is o+served0 i.e. increase is positiveJ decrease is ne(ative. (Increase)*Decrease in -t c. &n increase in stoc# represents stoc# purchased +ut not consumed durin( the !ear. This e"penditure must +e deducted from the e"penditure. & decrease in stoc# is the converse= stoc# consumed +ut not purchased durin( the !ear. 3o the cost must +e added to the e"penditure. &(ain0 it is critical that the si(na(e is o+served0 i.e. increase is ne(ativeJ decrease is positive. Direct E'penditure This is the result of the a+ove adAustments0 i.e. the total direct e"penditure of the )epartment on an accruals +asis.

11

e. Expenditure incurred on be2alf of ot2er Departments 6n the case of a )epartment which supplies &llied 3ervices ,"penditure0 the total amount provided to other )epartments should +e deducted from the amounts received to arrive at a net fi(ure for the )epartment. f. Expenditure incurred b! ot2er Departments 3uch e"penditure is included in the 3tatement in order that the total operatin( cost of the )epartment0 is reflected not onl! the direct costs incurred on the 5ote. The followin( two elements must +e recorded. #otional %ents The rent that would have +een paid +! the )epartment as calculated and supplied +! the $*;. #et Allied &ervices 'xpenditure This represents e"penditure +orne elsewhere on +ehalf of the )epartment +! another )epartment or directl! on the %entral /und.

&t present0 this e"penditure is shown in the provisional outturn column in part two of the )epartments ,stimate for the !ear 9i.e. &llied 3ervices 3tatement:. The information for 2012 will +e availa+le in the -evised ,stimates 5olume for 2013. g. #otal +perating $ost This final fi(ure is the accruals +ased cost of operatin( the )epartment 9+oth direct and indirect:.

12

(& Detailed Re)uirements

'ormat of t2e +perating $ost Statement +perating $ost Statement 2012 -ote *ro(ramme %ost *a! <on=*a! )r ss E'penditure )educt &ppropriations=in=aid %et E'penditure $2anges in $apital Assets *urchases %ash )epreciation Eoss on )isposals $2anges in Assets 8nder Development %ash *a!ments $2anges in net current assets 6ncrease in closin( accruals 6ncrease in stoc# Direct e'penditure Expenditure borne else92ere <et allied services e"penditure 9cash: <otional rents 9non cash: -et Programme cost 1.1 976: 94: 9190: 30296 2 7000 2012 7000 300942 390693 50625 /0#102 1100H6 04#6/7 2011 7000 450H7H 400433 90045 34#540 H020H 8/#678

3010H 926H:

20H7H 9567:

9H0: 0/#357 200107 50390 :";*"1

92: 83#706 1H0000 50626 11";043

Agree figure in (C& &(ree fi(ures recorded to other relevant parts of the financial statements. $+tain appropriate evidence for fi(ures not appearin( elsewhere. &(ree amount for other 5otes 9e.(. <et &llied 3ervices: to the -evised ,stimates.

13

/& State 'unding Account ,-ote 2&1.

This section provides guidance to reconcile the movement from the prior )ear to the current )ear as re*uired in this note.

A& Statement of General Principles

The 3tate /undin( &ccount represents the value to +e returned to the 3tate if the K+usinessD was capa+le of +ein( li uidated at current prices. & new re uirement for the &ppropriation &ccount 2012 is to reconcile the movement in the 3tate /undin( &ccount from the prior !ear to the current !ear and to detail where the fundin( has come from. The reconciliation of the movement in the 3tate /undin( &ccount shows if and how the asset +ase of the )epartment 9and therefore the investment of the 3tate: was used in order to deliver the pro(rammes of the reportin( !ear. = 6n a !ear when the 3tate /undin( &ccount reduces it means that the cost of pro(ramme deliver! consisted of a drawdown of 3tate /unds and the usa(e.a+sorption of e"istin( assets. = 6n a !ear when the 3tate /undin( &ccount increases it means that in addition to the cost of pro(ramme deliver! for the !ear in uestion the drawdown of 3tate /unds has +een used to increase assets. The re uirement to reconcile the !ear=on=!ear 3tate /undin( movement implicitl! means that ever! entr! reflected in the +alance sheet of the current !ear must have a correspondin( entr! in the $peratin( %ost 3tatement 9$%3: whether cash +ased or accrued.

(& Detailed Re)uirements

&ttention must +e paid to capital assets to ensure that an!.all items affectin( the movement in assets 9whether cash or accrual +ased: are reflected in the $peratin( %ost 3tatement in the %han(es in %apital &ssets.%apital &ssets under development headin(s. ;hile the non=cash.accrued items do not have a direct impact on the current cash flows0 the! do affect the capital and asset structure of the 5ote and contri+ute to calculatin( the resources consumed within the accountin( period.

14

The +asic formula0 includin( fi(ures for illustrative purposes0 for verif!in( this reconciliation is as follows1
2&1 State 'unding Account (alance at 1 anuar! /undin( drawn down <on %ash ,"penditure = <otional -ent +(ther #on!Cash Items <et *ro(ramme %ost (alance at "1 December 2.2 <ote 1 if applicable <ote 1 2012 93H3 H52H1 5390 ,=93431 6623

2&2

'unding dra9n do9n )is+ursements from the 5ote ,stimate *rovision 3urplus to +e surrendered ,"penditure 9cash: +orne elsewhere #otal 'unding dra9n do9n

&ccount &ccount <ote 1

6H354 =31H0 65174 20107 H52H1

6n some cases0 this formula will not +e sufficient to reconcile the fi(ures. This is predominantl! due to non=cash items which are included in the 3tatement of %apital &ssets +ut do not feature in the $peratin( %ash 3tatement. T!pical e"amples include1 = = = = = *rior Iear &dAustments &ssets transferred to. from other )epartments -evaluation of &ssets ;rite off. ;rite down of &ssets &ccrued purchases included in &sset note

C! includin( these non=cash items in the formula a+ove0 the reconciliation will +e possi+le. & spreadsheet with reconciliations of the 2010 and 2011 &ppropriation &ccount fi(ures for each 5ote was circulated to /inance $fficers in $cto+er 2012.

15

0& $ommitments ,-ote 2&10. This section provides guidance regarding multi!annual vs. global, and ...s.

A& Statement of General Principles

& commitment is a contractual o+li(ation to pa! on deliver! for (oods or services which have !et to +e supplied at !ear=end. 6n the case of (rant schemes0 a commitment is reco(nised when the (rant is approved +ut the (uarantee has !et to fulfill the re uirements of the scheme. & note provides fi(ures for commitments li#el! to materialise in the su+se uent !ears under 9a: procurement and 9+: (rant su+heads0 e"cludin( commitments under >10270. & separate note is provided (ivin( details of multi=annual capital commitments over >603500000. & distinction is drawn +etween commitments in terms of1 a: 'lo+al fi(ure for commitments li#el! to materialiLe in su+se uent !ear9s: +: @ulti=annual capital commitments c: %ommitments under pu+lic private partnerships

(& Detailed Re)uirements

The financial reportin( re uirement for each of the three classifications of %ommitments is discussed +elow. /rom an audit perspective0 a loo# +ac# to the fi(ures disclosed in the previous !earDs accounts is recommended. Global 'igure for $ommitments & (lo+al fi(ure for commitments li#el! to materialise under 9a: procurement and 9+: (rant su+heads in the su+se uent !ear9s: should +e (iven +! wa! of note to the &ccount. The proposed format is as follows1
2&10 $ommitments at 31 )ecem+er Total of le(all! enforcea+le commitments 49H H15 2012 7000 2011 7000

Multi1annual $apital $ommitments 6n this conte"t commitments relate onl! to le(all! enforcea+le commitments relatin( to capital proAects. 6n re(ard to such commitments0 a ta+le should +e included in the &ppropriation &ccounts settin( out for each 5ote0 if appropriate0 the total amount spent

16

in the !ear of account and the total amount of the commitments to +e met in su+se uent !ears. 6n addition0 for each individual capital proAect involvin( total e"penditure of >6034H0690 or more0 particulars should +e (iven indicatin( the cumulative amount spent up to the +e(innin( of the !ear of account0 the amount spent in the !ear of account and the amount to +e met in su+se uent !ears. The proposed format is as follows1 Multi1annual capital commitments Pro<ect Expenditure to "1 December 20== 1 9*revious Iear: 7;000 *roAect & *roAect C
1

Expenditure Subse)uent in 20== >ears 9%urrent Iear: 7;000 7;000

#otal

7;000

,"cludes proAects completed +! the end of previous !ear

Public Private Partners2ips ,PPP. & *u+lic *rivate *artnership 9***: is an arran(ement +etween the pu+lic and private sectors 9consistent with a +road ran(e of possi+le partnership structures: with clear a(reement on shared o+Aectives for the deliver! of pu+lic infrastructure and.or pu+lic services +! the private sector that would otherwise have +een provided throu(h traditional pu+lic sector procurement. *** proAects focus on a whole=life0 inte(rated approach to the procurement of lar(e scale pu+lic assets and.or services. /urther information on ***s in 6reland can +e found on the %entral *** MnitDs we+site at www.ppp.(ov.ie The notes to the &ppropriation &ccounts since 2007 include a note entitled K%apital %ost of *u+lic *rivate *artnership *roAectsD. The purpose of this note is to detail the capital cost of *** proAects in respect of which capital e"penditure has +een incurred. The full cost of each *** proAect 9i.e. capital costs0 interest costs and operation and maintenance costs: for the current !ear is shown in the &ppropriation &ccounts as a separate line item under the su+head for unitar! pa!ments. Crea#downs of these unitar! pa!ments are shown in the &+rid(ed and -evised ,stimates 5olumes This note is to form part of the overall note on %ommitments and should +e set out immediatel! after the note K@ulti=&nnual %apital %ommitmentsD in the format +elow.

17

The proposed format is as follows1 $apital $ost of Public Private Partners2ip Pro<ects Pro<ects involving total capital expenditure of 70;"*4;0:0 or more -ame of PPP Pro<ect Expenditure to "1 December 20== Expenditure in 20== 5egall! enforceable commitments to be met in subse)uent !ears 7;000 #otal

7;000 *roAect & *roAect C

7;000

7;000

The total capital cost 9i.e. e"cludin( $peration and @aintenance costs: of the proAect0 to +e shown in %olumn 4 in the ta+le0 should represent all the costs 9including 6A#: associated with the construction of the ph!sical asset to the point of +ecomin( availa+le for use and included in the winnin( +idderDs financial model1 i. ii. iii. &ctual capital construction costs 9includin( 7fit out8 services and e uipment costs: &dministration arran(ement overheads for consortium that would +e factored into commercial pricin( of the +uilt asset 9e.(. +an# fees0 3*% operatin( costs insurance0 etc.: 3hort term fundin( costs 9e"cludin( finance char(es: to point of deliver! of the +uilt asset 9i.e. arran(ement and commitment fees0 capitalised interest0 etc.:

Treatment , 9AT n C nstructi n 6t is usual for *** proAects that 5&T is paid when individual pa!ments are made. /or such *** proAects the annual char(e for 5&T on construction should +e included with the current !ear e"penditure in %olumn 2 and accumulated in %olumn 1. The +alance still outstandin( on the capital cost of the proAect at deliver! (iven for each proAect in %olumn 3 should also include 5&T on construction as per para(raph 7 a+ove. 6n a num+er of *** proAects0 the 5&T lia+ilit! on construction of the asset ma! +e dealt with separatel! to the arran(ements in the financial model. 6n such circumstances0 the 5&T lia+ilit! on construction a(reed with the $ffice of the -evenue %ommissioners and paid as a lump sum should +e treated as a once off pa!ment in the first !ear of the proAect and reflected in the ta+le descri+ed in para(raph 6 a+ove +! +ein( included in the amount in %olumn 2 9if the proAect commenced in the !ear of the &ppropriation &ccount: or in %olumn 1 9if the proAect commenced +efore the !ear of the &ppropriation &ccount:. ;here the 5&T on construction is paid in this manner0 the fact should +e noted in a footnote to the ta+le.

18

!elevant Circulars
= = = 'lo+al /i(ure for %ommitments 9as per %ircular 1.1995: @ulti=annual %apital %ommitments 9as per %ircular 1H.1992: *u+lic *rivate *artnerships 9***: 9as per %ircular 4.2007:

19

3& Emplo!ee -umbers and Pa! ,-ote /.

This section provides clarification regarding what is re*uired to be disclosed regarding staff and pa).

A& Statement of General Principles

This note deals with ,mplo!ee <um+ers and *a! to (ive an overall view of the num+er of emplo!ees 9full time e uivalents: and the associated pa! costs. The purpose is to relate the &ppropriation &ccount to the ,stimates.

(& Detailed Re)uirements

4a) %umber , sta,, at $ear end (,ull time equivalents) The num+er of staff emplo!ed +! the )epartment . $ffice and its a(encies in the conte"t of the ,mplo!ment %ontrol /ramewor#. 4b) "a$ The total pa!0 includin( total allowances0 overtime and emplo!er *-360 arisin( from the emplo!ment of staff as per 5 9a:. This should +e supplemented +! su+=notes (ivin( the details of allowances and overtime0 performance and merit pa! and other remuneration arran(ements. 6n the case of e"tra remuneration0 the details (iven should include the total amount paid under each cate(or!0 the total num+er of recipients0 the num+er of individuals that received >100000 or more0 and the ma"imum individual pa!ment0 if over >100000. 3everance.redundanc! amounts should also +e disclosed where material. /rom an audit perspective0 a loo# +ac# to the fi(ures disclosed in the previous !earDs accounts is recommended.

20

4& 5egal $osts ,-ote 0.

This section provides clarification regarding what is re*uired to be disclosed regarding legal costs and compensation.

A& Statement of General Principles

&n additional note on le(al costs is re uired for !ear end 2012 and followin(J 6n cases where cumulative le(al costs incurred in the !ear of account e"ceed >500000 a note is to +e provided with a +rea#down of the total cost intoJ = Ee(al fees0 and = %ompensation paid.

(& Detailed Re)uirements

The format for presentation is as follows1
0&/ 5egal $osts Ee(al costs paid durin( the !ear are cate(orised as follows1 Ee(al fees %ompensation costs 100 100 200 100 100 200 2012 2011

/egal fees refers to1 = amounts paid +! a )epartment to law!ers it has en(a(ed to represent it. <ote that where a )epartment is represented +! the %hief 3tate 3olicitorBs $ffice 9%33$:0 the fees are dischar(ed +! the %33$ on +ehalf of the )epartment and are dealt with in the %33$ 5ote and are not disclosed. Compensation refers to1 = amounts paid +! a )epartment to cover the le(al fees of the other part! in circumstances where a Aud(ement has +een made to that effect0 normall! arisin( from the )epartment havin( lost the case. = dama(es awarded +! a court or a(reed as part of a settlement0 to include (eneral dama(es 9loss of earnin(s: and special dama(es 9an! other pecuniar! losses arisin( from the wron(ful act of the other part!: where applica+le. ;here compensation pa!ments are forwarded to the %33$ for onward pa!ment to the other part!0 the pa!ment should still +e disclosed +! the )epartment.

21

Appendix 11 Sample Asset -ote

2&" $apital Assets 5and and (uildings 7000 Gross assets %ost or valuation at 1 4anuar! 2012 &dditions )isposals Transfers to )epartment N Transfers from )epartment I %ost or valuation at 31 )ecem+er 2012 Accumulated depreciation $penin( +alance at 1 4anuar! 2012 Transfers to )epartment N Transfers from )epartment I )isposals )epreciation for the !ear %umulative depreciation at 31 )ecem+er 2012 -et assets at "1 December 2012 -et assets at "1 December 2011 %# e)uipment 7000 'urniture and fittings 7000 +ffice e)uipment 7000 #otal

7000

22

Appendix 21 %llustrative Example of Programme $osts

6ote 0 ,'or %llustrative Purposes. -otes to t2e Appropriation Account 1& +perating $ost Statement 2012
-ote *ro(ramme %ost *a! <on=*a! Gross expenditure )educt Appropriations in aid -et expenditure 7000 2012 7000 300942 390693 50625 760260 1100H6 650174 2011 7000 450H7H 400433 90045 950356 H020H H7014H

"a

Programme Expenditure b! Sub2ead

2012 Estimate provision 7000 2012 +utturn 7000 2011 +utturn 7000

A A&1 A&2 A&" A&* A&/ A&0

(udget; #axation ? Economic Polic! &dministration = *a! &dministration <on=*a! %ommittees and %ommissions %onsultanc! and $ther services /iscal &dvisor! %ouncil 9'rant=in&id: %ommission O 3pecial 6n uiries Total

463H 463H 463H 463H 463H 463H 27H2H 5565 5565 5565 5565 556H 27H2H 13914 13914 27H2H

7H55 1H75 3921 3921 3921 3927 25420 H293 1H75 50H4 50H4 50H4 25420 23545 1H75 25420

5297 529H 5297 529H 5297 529H 317H5 6357 6357 6357 6357 6357 317H5 15H93 15H93 317H6

( (&1 (&2 (&" (&* (&/

'inancial Services Polic! &dministration = *a! &dministration <on=*a! %ommittees and %ommissions %onsultanc! and $ther services %ommission O 3pecial 6n uiries Total

$ $&1 $&2

Deliver! of S2ared Services &dministration = *a! &dministration <on=*a! Total

-ote@ 3921 P 3921 P 3921 P 3927 P 50H4 P 50H4 P 50H4 Q 30942

23

Appendix "1 %llustrative Example of Pa! $osts

6ote 0 ,'or %llustrative Purposes. Appropriation Account 2012
Administration 2012 Estimate Provision 400230 650 10550 10325 20235 10100 20 H90 *4;000 2012 +utturn 390693 363 10007 966 10661 H11 = H17 */;"14 2011 +utturn 400433 693 1057H 10411 20379 10972 52 960 *:;*34

&.1. &.2. &.3. &.4. &.5. &.6. &.7. &.H.

3alaries0 wa(es and allowances Travel and su+sistence 6ncidental e"penses *ostal and telecommunications services $ffice machiner! and other office e uipment and related services $ffice premises e"penses %onsultanc! services 5alue for mone! and polic! reviews

-otes to t2e Appropriation Account 1& +perating $ost Statement 2012

-ote *ro(ramme %ost *a! <on=*a! Gross expenditure )educt Appropriations in aid -et expenditure 7000 2012 7000 300942 390693 50625 760260 1100H6 650174 2011 7000 450H7H 400433 90045 950356 H020H H7014H

"a

Programme Expenditure b! Sub2ead

2012 Estimate provision 7000 2012 +utturn 7000 2011 +utturn 7000

A A&1 A&2 A&" A&* A&/ A&0

(udget; #axation ? Economic Polic! &dministration = *a! &dministration <on=*a! %ommittees and %ommissions %onsultanc! and $ther services /iscal &dvisor! %ouncil 9'rant=in&id: %ommission O 3pecial 6n uiries

463H 463H 463H 463H 463H 463H

7H55 1H75 3921 3921 3921 3927

5297 529H 5297 529H 5297 529H

24

Total ( (&1 (&2 (&" (&* (&/ 'inancial Services Polic! &dministration = *a! &dministration <on=*a! %ommittees and %ommissions %onsultanc! and $ther services %ommission O 3pecial 6n uiries Total $ $&1 $&2 Deliver! of S2ared Services &dministration = *a! &dministration <on=*a! Total

27H2H 5565 5565 5565 5565 556H 27H2H 13914 13914 27H2H

25420 H293 1H75 50H4 50H4 50H4 25420 23545 1H75 25420

317H5 6357 6357 6357 6357 6357 317H5 15H93 15H93 317H6

-ote@ 7H55 P H293 P 23545 Q 39693

25

Appendix *1 %llustrative Example of -on1Pa! $osts

6ote 0 ,'or %llustrative Purposes. Appropriation Account 2012
Administration 2012 Estimate Provision 400230 650 10550 10325 20235 10100 20 H90 *4;000 2012 +utturn 390693 363 10007 966 10661 H11 = H17 */;"14 2011 +utturn 400433 693 1057H 10411 20379 10972 52 960 *:;*34

&.1. &.2. &.3. &.4. &.5. &.6. &.7. &.H.

3alaries0 wa(es and allowances Travel and su+sistence 6ncidental e"penses *ostal and telecommunications services $ffice machiner! and other office e uipment and related services $ffice premises e"penses %onsultanc! services 5alue for mone! and polic! reviews

-ote@ 363 P 1007 P 966 P 1661 P H11 P H17 Q 5625

-otes to t2e Appropriation Account 1& +perating $ost Statement 2012

-ote *ro(ramme %ost *a! <on=*a! Gross expenditure )educt Appropriations in aid -et expenditure "a Programme Expenditure b! Sub2ead 2012 Estimate provision 7000 A A&1 A&2 A&" A&* (udget; #axation ? Economic Polic! &dministration = *a! &dministration <on=*a! %ommittees and %ommissions %onsultanc! and $ther services 2012 +utturn 7000 2011 +utturn 7000 7000 2012 7000 300942 390693 50625 760260 1100H6 650174 2011 7000 450H7H 400433 90045 950356 H020H H7014H

463H 463H 463H 463H

7H55 1H75 3921 3921

5297 529H 5297 529H

26

A&/ A&0

/iscal &dvisor! %ouncil 9'rant=in&id: %ommission O 3pecial 6n uiries Total

463H 463H 27H2H 5565 5565 5565 5565 556H 27H2H 13914 13914 27H2H

3921 3927 25420 H293 1H75 50H4 50H4 50H4 25420 23545 1H75 25420

5297 529H 317H5 6357 6357 6357 6357 6357 317H5 15H93 15H93 317H6

( (&1 (&2 (&" (&* (&/

'inancial Services Polic! &dministration = *a! &dministration <on=*a! %ommittees and %ommissions %onsultanc! and $ther services %ommission O 3pecial 6n uiries Total

$ $&1 $&2

Deliver! of S2ared Services &dministration = *a! &dministration <on=*a! Total

-ote@ 1H75 P 1H75 P 1H75 Q 5625

27