Guidance Manual For The Preparation of Appropriation Accounts 2021

Guidance Manual for the Preparation
of Appropriation Accounts 2021
Government Accounting Unit

Department of Public Expenditure and Reform
February 2022
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Guidance Manual for the Preparation of Appropriation Accounts 2021
Table of Contents
Introduction ................................................................................................................................ 4
Section A - Summary of Changes - 2021 Appropriation Account ...............................5
1) Statement on Internal Financial Control – Procurement compliance ................................. 5
2) Note 2.2 Bank and cash........................................................................................................ 5
3) Note 2.3 Stocks .................................................................................................................... 5
4) Note 2.4 Prepayments ......................................................................................................... 5
5) Note 2.6 Accruals ................................................................................................................. 5
6) Legal Costs............................................................................................................................ 5
7) Deferred Surrender .............................................................................................................. 5
8) Illustrative Example.............................................................................................................. 6
Section B – Common Errors/Points of Clarification ......................................................7
1) Fixed Assets Threshold......................................................................................................... 7
2) Deviations from Standard Accounting Policies .................................................................... 7
3) Fraud .................................................................................................................................... 8
4) Net Allied Services................................................................................................................ 8
5) Procurement Compliance .................................................................................................. 10
6) Capital commitments and PPP’s value............................................................................... 10
7) Extra Exchequer Receipts (EER’s) ....................................................................................... 11
8) Variations from estimate/Supplementary ......................................................................... 11
Section C – General Guidance/Accounting Policies ................................................... 14
1) Accounting Policies ............................................................................................................ 14
2) Introduction to the Appropriation Account ....................................................................... 14
3) Receipts – Exchequer Extra Receipts (EERs) ...................................................................... 15
4) Payments............................................................................................................................ 15
5) Contingent Liabilities ......................................................................................................... 15
6) Statement on Internal Financial Control............................................................................ 16
7) Accounting for Fixed Assets ............................................................................................... 17
a) Statement of General Principles ................................................................................... 17
b) Detailed Requirements................................................................................................. 18
8) Operating Cost Statement (Note 1) ................................................................................... 22
a) Statement of General Principles.................................................................................... 22
b) Detailed Requirements.................................................................................................. 23
9) State Funding Account ....................................................................................................... 25
10) Commitments (Note 2: Statement of Financial Position) .................................................. 27
11) Prepayments (Note 2: Statement of Financial Position).................................................... 30
12) Accruals (Note 2: Statement of Financial Position) ........................................................... 31
13) Vote Expenditure (Note 3) ................................................................................................. 33
14) Staffing and Remuneration (Note 5) .................................................................................. 34
15) Compensation and Legal Costs (Note 6: Miscellaneous) ................................................... 39
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16) Arbitration and Conciliation Costs (Note 6: Miscellaneous) .............................................. 44
17) Fraud and Suspected Fraud (Note 6: Miscellaneous) ........................................................ 45
a) Statement of General Principles.................................................................................... 45
b) Detailed Requirements.................................................................................................. 45
18) Write-Offs .......................................................................................................................... 45
19) Committees, Commissions and Special Inquiries .............................................................. 45
20) National Lottery ................................................................................................................. 45
21) EU Funding ......................................................................................................................... 46
22) Deferred Surrender ............................................................................................................ 46
23) Late Payments .................................................................................................................... 46
24) Annex to the Appropriation Account ................................................................................. 46
25) Appropriation Account Audit Process................................................................................ 47
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Introduction
The purpose of this guidance manual is to provide clarification on issues that arise for Government
Departments and Offices concerning the preparation of their annual appropriation account and in the
context of the audit by the Office of the Comptroller and Auditor General.
This is the tenth edition reflecting changes to the 2021 appropriation accounts as per the Department
of Public Expenditure and Reform Circular 01/2022– Requirements for Appropriation Accounts
2021.
The guidance has been prepared by the Government Accounting Unit, Department of Public
Expenditure and Reform. For further information, please contact:
Government Accounting Unit

Department of Public Expenditure and Reform
Upper Merrion Street
Dublin 2
D02 R583
Email: govacc@per.gov.ie
11th February 2022
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Section A - Summary of Changes - 2021 Appropriation Account
The changes to the 2021 appropriation account and points of clarification are provided below:
1) Statement on Internal Financial Control – Procurement compliance

The number of non-competitive contracts included in the annual return in respect of Circular 40/2002
is to be disclosed.
The following text should be included in the Statement:
“The Department ensures that there is an appropriate focus on good practice in purchasing and that
procedures are in place to ensure compliance with all relevant guidelines.
The Department complied with the guidelines with the exception of XX contracts (in excess of €25,000),
totalling €XXX (ex. VAT) as set out below:
 X contracts with a value of €XX were …… (insert reason)
(Include text here re actions the Vote is taking to remedy the situation)
The Department has provided details of XX non-competitive contracts in the annual return in respect of
Circular 40/2002 to the Comptroller and Auditor General and the Department of Public Expenditure and
Reform.”
2) Note 2.2 Bank and cash

There is no requirement for a vote to include the note if a vote has only one category of bank
accounts.
3) Note 2.3 Stocks

There is no requirement for a vote to include the note if a vote has only one category of stocks.
4) Note 2.4 Prepayments

Votes should provide a breakdown of Prepayments as at the year end. Detailed guidance is included
in Section C, 11. Prepayments.
5) Note 2.6 Accruals

Votes should provide breakdown of the Accruals that have been provided for as at the year. Detailed
guidance is included in Section C, 12. Accruals.
6) Legal Costs
The note has been restructured and rewritten to include more information as to the type and nature of
the legal cases costs. Detailed guidance is outlined in Section C, 15. Compensation and Legal costs
7) Deferred Surrender
A note has been included to list details of the Deferred Surrender that votes are carrying over into 2022.
Detailed guidance is outlined in Section C, 22. Deferred Surrender.
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8) Illustrative Example
C&AG expect to issue the template by early February and it will conform to attached illustrative example.
If any Vote is preparing the Appropriation Account in advance of the C&AG template being available,
please use prior year template issued by C&AG and update for variations against illustrative example.
The illustrative example is also attached to this guidance manual for ease of reference.
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Section B – Common Errors/Points of Clarification
This section highlights common errors identified by the Office of the Comptroller and Auditor General
in previous years and points of clarification.
1. Fixed Assets Threshold

2. Deviations from Standard Accounting Policies
3. Fraud
4. Net Allied Services
5. Procurement Compliance
6. Capital Commitments and PPP’s
7. Extra Exchequer Receipts (EER’s)
8. Variations from estimate/Supplementary
The sections below set out the correct format and accounting treatment for the issues identified above.
1) Fixed Assets Threshold

DPER Circular 27/2019 “Requirements for Appropriation Account 2019” gave advance notice in
relation to capital asset thresholds. Following on from this DPER issued Circular 21/2020: Increase in
the Value Threshold for Inclusion of Assets in Asset Registers. The threshold for inclusion of capital
assets on the statement of capital assets has increased to €10,000 for an individual asset. The
threshold of €10,000 for inclusion of individual capital assets on the statement of capital assets
applies to additions to capital assets from 1 January 2021 forward, (unless applied from 1 January
2020 under Circular 21/2020).
Government Departments or Offices may choose to make an adjustment to capital assets in the 2021
Appropriation Account, to reflect only capital assets with original cost above the threshold of €10,000.
Should a Department choose to make an adjustment to capital assets for the asset threshold, an
adjustment line has been added to Note 2.1 (Capital Assets) and Note 2.7 (State Funding Account) to
show the amendment made to the capital asset figures.
It is not a requirement to make an adjustment to capital assets in the statement of capital assets and
the State Funding Account for assets purchased at less than the threshold of €10,000 prior to 1
January 2021 as assets under the threshold of €10,000 may continue to disclosed on the statement of
capital assets and Financial Position until the asset is no longer in use and disposed of.
2) Deviations from Standard Accounting Policies
Government Departments, Offices and Vote holders should obtain prior approval from the Department
of Public Expenditure and Reform for any departures, changes or additions to the standard accounting
policies in relation to accrual information in the notes to the appropriation accounts.
Departments are reminded that where relevant, the basis of valuation of land and buildings is explained
in the Accounting Officer’s introduction to the appropriation account and to provide a note highlighting
any departure from the standard accounting policies. As an interim arrangement to accommodate the
transition to the FMSS system, Departments can calculate depreciation on a monthly or annual basis.
All appropriation accounts must state the depreciation method used.
As a general principle, Government accounting is on a gross basis, i.e. receipts are not netted off
against payments. Government Departments, Offices and Vote holders should obtain prior approval
from the Department of Public Expenditure and Reform for netting off.
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3) Fraud
In the case of Departmental losses due to fraud, suspected fraud or suspected irregularities, information
is supplied in Note 6 where:
 the total of losses during the accounting period were €10,000 or more; or
 an individual loss was €10,000 or more; or
 for losses under €10,000, a serious issue of principle arises; or
 where the Comptroller and Auditor General or the Department of Public Expenditure and
Reform considers that a disclosure should be made.
Note 6.3 ‘Fraud and Suspected Fraud’ is in a table format showing the prior year figures for comparison
purposes and the text below:
“In the period between the signature of the appropriation account and the final appropriation account,
the Department/Office was made aware of X number of new cases of suspected fraud/irregularities. Of
these, X cases have a combined value of €X. X remain under investigation and no value has yet been
identified.”
See illustrative example attached, Page 23.
4) Net Allied Services

Allied Services are services provided centrally to Departments on the basis that, as specialists, the
supplying Department (whose primary function is the provision of these central services) is able to
perform the services more efficiently than the user Department.
Net Allied Services Expenditure represents expenditure borne elsewhere on behalf of the Department
by another Department or directly on the Central Fund. Such expenditure is included in order that the
total operating cost of the Department is reflected and not only the direct costs on the Vote.
The Net Allied Services note details the expenditure amount in relation to the Department which is
borne elsewhere and where relevant, the costs of shared services provided to other Votes. There are
various measurement bases for the calculation of the allied services expenditure figures.
Departments are required to include actual figures rather than estimated expenditure, where
possible. The figure disclosed in the appropriation account should only include the current
element. In recognition of the fact that some services would require a complex costing system and the
effort/cost involved would far outweigh the benefit of doing this it will not be an absolute requirement to
include actual costs.
There are various measurement bases for the calculation of the allied services, based on the nature of
the services provided. For example, the charge may be apportioned based on the approximate floor
area of office space used by the Department/Office or based on the number of employees/payees etc.
Both the providers and receivers of allied services are reminded to ensure that the allied services are
still relevant and that the breakdown across Departments is provided using an up to date and
reasonable method of calculation/apportionment It is critically important for the Comptroller & Auditor
General (C&AG) audit purposes that the Department/Office providing the allied services to the receiving
Department documents the cost allocation and methodology used to calculate allied services and
provides these details to the receiving Department. This is to ensure that the Accounting Officer in the
receiving Department is aware of the basis on which this cost has been calculated when signing off on
their appropriation account.
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Allied Services to Non-Vote Bodies
Departments in receipt of allied services should only include amounts for services provided directly to
the Department in the appropriation account note. Allied services provided to bodies under their aegis
should not be included in a departmental appropriation account.
Services rendered by Departments without charge to Non-Voted Public Service Bodies should include
this information in the allied services note because this is actually a cost for them.
Departments/Offices providing allied services to Non-Vote bodies should include details of the cost of
the provision of these services in a footnote to their Allied Services Note, ‘In addition to services
rendered without charge to other Votes shown here (€X million), services to the value of approximately
€X million were also provided without charge to other non-voted bodies.’
See example below (Vote 9 Office of the Revenue Commissioners Appropriation Account 2019)
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5) Procurement Compliance
The Statement of Internal Financial Control includes a statement on compliance with procurement
guidelines. Departments are required to confirm compliance with all relevant guidelines regarding
procurement, and to provide details of any exceptions. In particular, Departments should detail the
number and value of contracts/amounts paid in the year which are not compliant, which guidelines
they are not compliant with and what measures are in place to bring procurement into compliance.
Details should be provided as to why the contracts were not in compliance and the steps being taken
to remedy the situation. The 40/02 amounts are not required to be disclosed, the focus of the SIFC is
on non-compliant procurement.
The following text should be included in the Statement:

X contracts with a value of €XX were …… (insert reason)
The Department has provided details of XX non-competitive contracts in the annual return in respect of
Circular 40/2002 to the Comptroller and Auditor General and the Department of Public Expenditure and
Reform.”
The Reporting Requirement under Circular 40/02 “Public Procurement Guidelines Returns” is
separate and is not required to be disclosed in the account.
6) Capital commitments and PPP’s value

A reminder that the threshold for providing a separate note giving details of any Major Capital Projects
and Public Private Partnership Projects is over €10,000,000.
Note: Individual capital projects involving total expenditure of €10,000,000 or more should be shown
separately in the major capital commitments table or the costs of public private partnership projects
table.
Where the reported commitment level or projected project cost has varied by more than €500,000
compared with the previous year, the reason for the movement should be explained. Unitary payments
for Public Private Partnership Projects should be shown separately in a table where projects involve
total expenditure of €10,000,000 or more.
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7) Extra Exchequer Receipts (EER’s)
The approval of the Department of Public Expenditure and Reform should always be obtained before
determining whether to treat a particular type of receipt as an appropriation-in-aid (A-in-A) or an
Exchequer Extra Receipt (EER). Departments are required to provide a breakdown of EER’s and an
explanation where the amounts are material in nature. In addition, Departments are required to disclose
both the amounts lodged to the Exchequer (via the Sundry Monies Deposit Account) and the amounts
payable (amounts not yet transferred over), where the amounts are not the same. Departments are also
required to present the breakdown of EER’s on an opening balance/closing balance basis.
8) Variations from estimate/Supplementary

Note 3 Vote Expenditure presents an analysis of the administration expenditure of the Vote and outlines
the reasons for significant variations. The note should detail the variation on outturn versus the original
estimate provision including deferred capital funding. The reason for the increase/decrease of
expenditure should also be explained.
When a deferred surrender is applied to admin costs, it should be disclosed in Note 3 as per Programme
Expenditure. The figure for deferred surrender should also be shown on the face of the appropriation
account.
The figure to be used as the original estimate for the purposes of the appropriation account is the
Revised Estimate approved by the Dáil. If the Dáil subsequently approves a Further Revised Estimate
or Estimates, then the final, such Further Revised Estimate approved should be used. If a
supplementary estimate is allocated it should be disclosed separately.
See deferred surrender example below (Vote 18 National Shared Service Office Appropriation Account
2019). See supplementary estimate example below (Vote 7 Department of Finance Appropriation
Account 2019).
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Section C – General Guidance/Accounting Policies
1) Accounting Policies
The accounting policies and principles are determined by the Department of Public Expenditure and
Reform. The accounting policies and principles, which have general application across Departments,
Offices and other Vote holders, for the year are set out at the beginning of the appropriation accounts
volume and are detailed in the Department of Public Expenditure and Reform Circular 01/2022:
Requirements for the Appropriation Accounts 2021.
2) Introduction to the Appropriation Account
Government Departments/Offices and Vote holders should obtain prior approval from the
Department of Public Expenditure and Reform for any departures, changes or additions to the
standard accounting policies in relation to accrual information in the notes to the appropriation
account. Information regarding any accounting divergence from the standard accounting policies
should be included in the Accounting Officer’s introduction to the appropriation account.
Departments are reminded that where land and buildings are included in fixed assets, the basis of
valuation must be explained in the Accounting Officer’s introduction to the appropriation account
In the “Introduction to Accounts”, each Accounting Officer should note any departures from accounting
policies in their individual appropriation accounts, and any other issues of material significance (for
example, transfer of functions). Examples of departures include fixed assets, commitments, contingent
liabilities and public private partnerships.
Departments must also state their policies for valuing assets where the valuation method of the
particular class of asset is not standard.
The threshold for inclusion of capital assets on the statement of capital assets has increased to €10,000
for an individual asset and now applies to the reporting of assets in the 2021 account.
The policy on the depreciation method to be applied is that depreciation is calculated and charged on
a monthly basis from the month of acquisition/commissioning until the month of disposal. As an interim
arrangement pending the roll out of FMSS, Departments can calculate depreciation on a monthly or
annual basis.
All appropriation accounts must state the depreciation method and capital asset threshold used.and
variations from standard must be highlighted in the Introduction to Accounts.
The Accounting Officer is required to sign and date the face of the appropriation account under the
‘surplus’ heading in addition to the signature required for the Statement on Internal Financial Control
(SIFC).
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3) Receipts – Exchequer Extra Receipts (EERs)
The amount reported by a Department for EERs transferred to the Exchequer should be reconcilable
to the amount reported in the Department of Finance – Finance Accounts.
4) Payments
Departments, Offices and other Vote holders are required to meet the requirements of the Department
of Public Expenditure and Reform Circular 13/2014 “Management of and Accountability for Grants from
Exchequer Funds”.
5) Contingent Liabilities
A contingent liability arises in any situation where past or current actions or events create a risk of a call
on Exchequer funds in the future. Contingent liabilities are not recognised in the Statement of Financial
Position but are disclosed by way of a note unless the possibility of an outflow of resources is remote.
Examples of contingent liabilities include guarantees, litigation, insurance, contractual

indemnities and warranties.
Liabilities may arise from ongoing legal cases which can give rise to a contingent liability. Except in
cases involving potential litigation or where disclosure would prejudice the Exchequer position and/or
future negotiations with third parties contingent liabilities relating to court cases should be disclosed in
the appropriation account.
Other arrangements with the potential to give rise to contingent liabilities should only be entered into
where necessary and, then, only after the potential expenditure implications have been evaluated and
assessed in the light of the possible scenarios that could arise on foot of the contingent liability. The
potential benefits should always be compared with the most likely cost and with the range of possible
costs to ensure that the contingent liability is properly assessed.
Under no circumstances should a contingent liability be accepted where the risk being assumed has
not been assessed and defined as clearly as possible. Where a Minister agrees to accept a contingent
liability, it is essential that the decision-making process is properly documented, setting out: (i) the
rationale for accepting the liability and (ii) the potential benefit and (iii) the potential costs. The sanction
of the Minister for Public Expenditure and Reform should be sought for the creation of any contingent
liabilities that could give rise to significant Exchequer expenditure.
Judgement is required in determining whether and at what point in time, legally and/or non-legally
binding obligations give rise to a liability. Information is material if its omission or misstatement could
influence the discharge of accountability by the Department for that financial reporting period.
Materiality depends on both the nature and amount of the item judged in the particular circumstances
relative to that Department and involves consideration of both qualitative and quantitative
characteristics.
Assessments of materiality will be made in the context of the legislative, institutional and operating
environment within which the Department operates and, in respect of prospective financial and non-
financial information, the preparer’s knowledge and expectations about the future.
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6) Statement on Internal Financial Control
On foot of the ‘Report of the Working Group on the Accountability of Secretaries General and
Accounting Officers’ in 2002, Accounting Officers are required to sign a Statement on Internal Financial
Control in respect of the appropriation account. In their introductions to the appropriation accounts,
some Accounting Officers describe actions taken or planned to enhance particular aspects of internal
control in the Departments or Offices concerned.
Maintenance of the system of internal financial controls is a continuous process and the system and
its effectiveness should be kept under on-going review. Accounting Officers should include for the
current year all relevant control elements which are in use under the Vote. The statement also covers
the position of Departments in receipt of shared services.
A paragraph to outline any impact the Covid-19 pandemic had on the controls in the Vote must be
included in the SIFC. A new heading “Covid-19 Pandemic” should be included and the Accounting
Officer must state what impact Covid-19 had on their Vote. The following wording is suggested:
“Assessments of the impact of Covid-19 were carried out and the results are as follows……”
In relation to procurement compliance, which is also covered in the Statement, the primary circular,
Circular 40/02 “Public Procurement Guidelines”, is available online:
http://circulars.gov.ie/pdf/circular/finance/2002/40.pdf.
Further information is also available in the Public Financial Procedures (Section D2, Paragraph 30,
available at: https://govacc.per.gov.ie/wp-content/uploads/2012/05/SECTION-D.pdf and online at:
https://ogp.gov.ie/public-procurement-guidelines-for-goods-and-services/#
Departments are required to provide details of any exceptions to compliance. In particular,

Departments should detail the number and value of contracts which are not compliant, which
guidelines they are not compliant with and what measures are in place to bring the contracts into
compliance. See section B (5) above for further clarification.
The following wording is suggested:
The Department has provided details of XX non-competitive contracts in the annual return in respect
of Circular 40/2002 to the Comptroller and Auditor General and the Department of Public Expenditure
and Reform.”
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Details should be provided as to why the contracts were not in compliance and the steps being taken
to remedy the situation.
All contracts which are not in compliance should be disclosed regardless of value, but the value can
be disclosed by group. For example, “5 contracts to a total value of €1.3m were not compliant due
to…
7) Accounting for Fixed 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 tangible assets which are permanent in nature with an economic useful life
greater than one year, valued at a minimum of €10,000 and are held for purposes other than investment
or resale. Heritage assets, the value of which cannot be adequately expressed in financial terms, are
not included. Heritage assets which can be valued should be included in the statement of capital assets.
Assets should be included in the Asset Register as at the date of acquisition, and are stated at cost less
accumulated depreciation. Cost comprises of all costs incurred in bringing the asset to its present
location and condition. Money spent on fixed assets is referred to as capital expenditure.
DPER Circular 27/2019 “Requirements for Appropriation Account 2019” gave advance notice in
relation to capital asset thresholds stating that: “Starting with the 2020 appropriation accounts, the
threshold for inclusion of capital assets on the statement of capital assets will increase to €10,000
for an individual asset. There will be no grouping of assets as was previously the case.”
The threshold of €10,000 for inclusion of individual capital assets on the statement of capital
assets applies to additions to capital assets from 1 January 2021 forward (unless applied from 1
January 2020 under Circular 21/2020).
Government Departments or Offices may choose to make an adjustment to capital assets in the
2021 Appropriation Accounts to reflect only capital assets with original cost above the threshold of
€10,000. Should a Department choose to make an adjustment to capital assets for the asset
threshold, an adjustment line has been added to Note 2.1 (Capital Assets) and Note 2.7 (State
Funding Account) to show the amendment made to the capital asset figures.
It is not a requirement to make an adjustment to capital assets in the statement of capital assets
and the State Funding Account for assets purchased at less than the threshold of €10,000 prior to
1 January 2021.
Historical assets i.e. assets purchased prior to 01st January 2020 (if applying the €10,000
threshold in 2020) currently listed on the fixed asset register of Departments/Offices can continue
to be included in the Statement of Financial Positon and the Fixed Asset Register, irrespective of
the increased limit, until the asset is no longer in use and disposed of.
There is no requirement to restate historical assets using the new limit
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b) Detailed Requirements
Departments must compile an Assets Register recording the description, historical cost, present value
(i.e. depreciated historical cost), date of acquisition and physical location of each material capital asset.
Information on disposals and revaluations should be entered in the register as appropriate. The register
should also record the depreciation rate being applied and the method being followed.
Departments may have to exercise judgement on the materiality of an item e.g. Office equipment/
fixtures and fittings are a material item in terms of the Asset Register and as such should be capitalised
or whether they are treated as consumables and are not capitalised.
The opening and closing values of capital assets on a Department's Asset Register and details of
depreciation are shown by way of a Note to the ‘Statement of Financial Position’.
The policy on the depreciation method to be applied is that depreciation is calculated and charged on
a monthly basis from the month of acquisition/commissioning until the month of disposal. As an
interim arrangement pending the roll out of FMSS, Departments can calculate depreciation on a
monthly or annual basis. All appropriation accounts must state the depreciation method used i.e.
whether depreciation was calculated on a monthly or annual basis.
All appropriation accounts must also state the capital asset threshold used. The threshold for
inclusion of capital assets on the statement of capital assets has increased to €10,000 for an
individual asset and now applies to reporting of additions to capital assets in the 2021 account and
future periods. Government Departments or Offices may choose to make an adjustment to the 2021
Appropriation Account to reflect only capital assets with original cost above the threshold of €10,000.
Should a Department choose to make an adjustment to capital assets for the asset threshold, an
adjustment line has been added to Note 2.1 (Capital Assets) and Note 2.7 (State Funding Account)
to show the amendment made to the capital asset figures.
Valuation
Valuation refers to the amount at which fixed assets are shown in the Statement of Financial Position.
The fixed asset is valued either at:
- its historical cost less the accumulated depreciation from the date of acquisition, or
- its current value which is defined as the lower of replacement cost or recoverable amount.
i) Land and Buildings
- All lands and buildings owned by the State and controlled or managed by a Department are
included in the Statement of Financial Position (and capital assets note). Where relevant, the
basis of valuation of land and buildings is explained in the Accounting Officer’s introduction to
the appropriation account.
- Where land and buildings are (a) vested in the Office of Public Works or (b) vested in a Minister
but in fact controlled/managed by the Office of Public Works1, they are included in the account
for the Office of Public Works. Otherwise, they appear in the account for the relevant
Department.
- Where lands or buildings are vested in a Minister but are, in fact, controlled/managed by an
outside body, they are not included as assets of the Department, but the ownership of the asset
is noted in the Department's Account.
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or other state body, for example the National Gallery.
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ii) Furniture and Fittings
- Furniture and fittings are valued at cost.
iii) IT Equipment
- In general IT assets, including peripherals and software, should be depreciated over 5 years.
An exception is Major Operational Software systems which, because of its complexity, usually
should have a life of 10 years.
- Operating software should be capitalised separately.
- Any peripheral item which has a discrete role independent of an overall system should be noted
as a separate asset in the Assets Register.
iv) Other Assets
- Where required, accounting policies in respect of valuation of other assets (e.g. specialised
vehicles) are set out in the Accounting Officer’s introduction to the appropriation account.
v) Capital Assets under Development
- Capital Assets under Development are included in note 2.1 Capital Assets in the Statement of
Financial Position, showing expenditure on assets being developed within the Department, e.g.
software development or construction projects. Capital Assets under Development should not
be subject to a depreciation charge. Depreciation of a capital asset begins when it is available
for use i.e. when it is in the location and condition necessary for it to be capable of operating in
the manner intended by management. Cash payments in respect of capital assets under
development in Note 1 ‘Operating Cost Statement’ should be included in the line 'purchases
cash' in the 'Changes in Capital Assets' section.
Subsequent Expenditure on Assets
- Subsequent expenditure undertaken to ensure that the asset maintains its previously assessed
standard of performance, for example routine repairs and maintenance expenditure, should be
recognised in the appropriation account (subject to the matured liability rule) and Operating
Cost Statement as it is incurred.
- Only expenditure that increases the future benefits from the existing asset beyond its previously
assessed standard of performance is included in the gross book value, e.g., an increase in
capacity.
- The cost of an addition or extension to an existing asset which is of a capital nature and which
becomes an integral part of the existing asset is usually added to its gross book value. Any
addition or extension, which has a separate identity and is capable of being used after the
existing asset is disposed of, is accounted for separately.
Depreciation
- Land is not depreciated. Where relevant, buildings are depreciated as indicated in the
Accounting Officer’s introduction to the appropriation account.
- Departmental assets fall into different categories for depreciation purposes. The principal
categories which will apply are set out in the table below. As an interim arrangement pending
the roll out of FMSS, Departments can calculate depreciation on a monthly or annual basis. All
appropriation accounts must state the depreciation method used.
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Category A – Items depreciated on a straight line basis to a nil value over 10 years
Depreciation Rate
Furniture and Fittings 10%
Plant and Machinery 10%
Major IT Operational Software Systems 10%
Category B – Items depreciated on a straight line basis to a nil value over 5 years
Depreciation Rate
IT Equipment, Hardware and Software 20%
Office Equipment 20%
Other Specialist Equipment 20%
Motor Vehicles 20%
Category C – Other items. Where relevant, an explanation regarding depreciation of other

classes of asset should be indicated in the Accounting Officers introduction to the appropriation
account.
Depreciation Rate
Land 0%
Buildings 0% to 5%
Military Assets 3% to 20%
- Departments should obtain prior approval from the Department of Public Expenditure and
Reform for any departures, changes or additions to the standard accounting policies.
Information regarding the accounting divergence from the standard accounting policies should
be included in the Accounting Officer’s introduction to the appropriation account.
Purchases and Additions
- In addition to inclusion in the Assets Register, the cost of purchasing the asset should be
reflected in the appropriation account for the period incurred (subject to the matured liability
rule).
- The depreciation charged should be reflected in the Operating Cost Statement and the Capital
Asset Note.
- For purchases, the value should be in accordance with the above principles.
Retirements and Disposals
- The loss or gain from the disposal should be reflected in the Operating Cost Statement. The
difference between the carrying amount of the asset being disposed of (i.e. the value shown in
the Asset Register) and the cash proceeds received as appropriations-in-aid is included in the
Operating Cash Statement.
- “Windfall” receipts are treated as Exchequer Extra Receipts 2 and details are provided in Note
4 to the appropriation account.
Transfers
- Transfer of assets from one Department to another should be treated as a disposal by the
originating Department and an addition by the receiving Department at date of transfer.
2 Section C5 Paragraphs 15 and 19 of the Public Financial Procedures refers. Available online:
https://govacc.per.gov.ie/wp-content/uploads/2012/05/SECTION-C.pdf
20
- The item should be received at its net book value (the cost price minus depreciation as per the
originating Department) and from that point forward, depreciated in line with the receiving
Department’s depreciation policy. The cost price and the depreciation charged as per the
originating Department should be shown in the receiving Department’s Note on Capital Assets
(Note 2.1).
- Please refer to the “Transfer of Functions Guidelines and Best Practice Handbook”, which was
published by DPER in February 2020 and the “Accounting Arrangements for Transfer of
Departmental Functions 2020 – Expenditure on Transferred Functions and Appropriation
Accounts”.
- See example below taken from Vote 6 and Vote 42, 2011 appropriation accounts:
Vote 6 Office of the Minister for Finance
21
Vote 42 Office of the Minister for Public Expenditure and Reform
Other Relevant Circulars
- Protocols for the Transfer and Sharing of State Property Assets (Circular 11/2015)
- Arrangements for Digital and ICT-related Expenditure in the Civil and Public Service (Circular
02/2016)
- Policy for Property Acquisition and for Disposal of Surplus Property (Circular 17/2016)
8) Operating Cost Statement (Note 1)

This section will provide clarification regarding the relationship between the figures included under
“Changes in Assets” and the Statement of Financial Position (i.e. the non-cash items), and what should
be included under Note 2.1.
The Operating Cost Statement (OCS) shows total expenditure first divided into Programme cost, Pay
cost and Non-Pay cost. The deduction for appropriations-in-aid is taken after the “Gross Expenditure”
subtotal to give a net programme cost.
Its purpose is to show, on an accruals basis, the total amount of resources consumed by a Vote in the
year. As the appropriation account is cash based, it does not provide this information. This is because
it includes expenditure on capital assets which will be consumed over several years and it may include
payments to acquire goods or services which are consumed in the preceding or following year e.g.
accruals and prepayments.
The statement produces the operating cost figure on an accruals basis by starting from the net
expenditure figure taken from the appropriation account, showing subtotal for expenditure on
administration and expenditure on services and programmes, and making a series of adjustments to
that cash-based figure. These adjustments involve:
 identifying the changes in various categories of Departmental assets and liabilities for the
year of account
22
 the inclusion of expenditure borne elsewhere on behalf of the Department e.g.
superannuation costs, accommodation costs, shared services costs etc.
The components of the OCS can be considered under specific categories a - f.
(i) Cash Expenditure
Programme Cost, Pay Costs and Non-Pay Costs

- Programme costs refers to the total expenditure (pay and non-pay) attributable to expenditure
on programmes which does not include the administrative pay and non-pay elements as
included administration subheads (A.1, A.2, B.1, B.2, etc.) in Note 3 – Vote Expenditure.
- Pay costs refers to the administration pay amount. The amount should correspond with the
total recorded in Note 3 – Vote Expenditure
a) under Analysis of administration expenditure, i Salaries, wages and allowances and
b) equal the sum of the Administration - Pay as broken down by programme.
- Non-Pay Costs refers to the administration non-pay amount. The amount should correspond
with total recorded in Note 3 – Vote Expenditure
a) under Analysis of administration expenditure, (excluding Salaries, wages and
allowances) and
b) equal the sum of the Administration – Non-Pay as broken down by programme.
Net Expenditure
The total of programme costs, pay and non-pay expenditure should equal gross expenditure on the
face of the appropriation account, less the appropriations-in-aid gives net expenditure - again equal to
net expenditure per the appropriation account.
(ii) Statement of Financial Position
Changes in Capital Assets

The first adjustment to the Net expenditure figure is the removal of cash transactions relating to the
purchase and disposal of capital assets and the insertion instead of the current charges pertaining to
capital assets i.e. depreciation and the gain or loss on disposals.
Purchases Cash
This is the amount charged to the appropriation account in the year of account in respect of the purchase
of Capital Assets. It is deducted from the net expenditure. Cash payments in respect of capital assets
under development in Note 1 ‘Operating Cost Statement’ should be included in the line 'purchases cash'
in the 'Changes in Capital Assets' section.
It may differ from the “Additions” figure in the Statement of Capital Assets because the figure in that
allows for any accrued capital expenditure (e.g. equipment delivered before year-end but not paid for
until the following year).
Disposals Cash
This figure represents the cash proceeds of any disposals of capital assets during the year.
This is included in the appropriations-in-aid figure on the appropriation account, thereby reducing the
Net expenditure. In order to remove it from the expenditure, it must be added back. (It is the converse
of “Purchases Cash”). The figure does not appear in the Statement of Capital Assets.
23
(Gain)/Loss on Disposals
This represents the difference between the net book value of any assets disposed of (i.e. the value
shown in the Asset Register) and the cash proceeds received as appropriations-in-aid on the disposal
of such assets.
The gain or loss does not appear in the Statement of Capital Assets but should have been separately
recorded as part of the Asset Note.
(iii) Non-Cash Costs Incurred
Depreciation
This is the “Depreciation for the Year” figure, shown in the Statement of Capital Assets and is added as
the measure of the quantity of capital assets consumed during the year of account.
(iv) Expenditure paid for in later years
Changes in Net Current Assets

This adjustment is necessary to take into account changes in the elements of working capital (accruals,
prepayments, stocks etc.) relating to current expenditure.
Increase / (Decrease) in Closing Accruals

This figure equals the change in the closing accruals figures from the end of the previous year to the
end of the current year.
For the purposes of Net Opening Accruals (i.e. the Net Closing Accruals figure from the previous year),
Accrued Expenses and Deferred Income are always negative and Prepayments and Accrued Income
are always positive.
For Net Closing Accruals, the situation is reversed. Accrued Expenses and Deferred Income are always
positive and Prepayments and Accrued Income are always negative.
Again, it is critical that the signage is observed, i.e. increase is positive; decrease is negative.
(Increase) / Decrease in Stock

An increase in stock represents stock purchased but not consumed during the year. This expenditure
must be deducted from the expenditure. A decrease in stock is the converse - stock consumed but not
purchased during the year. So the cost must be added to the expenditure.
Again, it is critical that the signage is observed, i.e. increase is negative; decrease is positive.
Direct Expenditure
This is the result of the above adjustments, i.e. the total direct expenditure of the Department on an
accruals basis.
(v) Expenditure incurred on behalf of other Departments
In the case of a Department which supplies Allied Services Expenditure, the total amount provided to
other Departments should be deducted from the amounts received to arrive at a net figure for the
Department.
(vi) Net programme cost
This final figure is the accruals based cost of operating the Department (both direct and indirect).
24
9) State Funding Account
This section provides guidance to reconcile the movement from the prior year to the current year, as
required in this note.
The State Funding Account represents the value to be returned to the State if the ‘business’ was capable
of being liquidated at current prices.
A requirement for the appropriation account 2012 and following years is to reconcile the movement in
the State Funding Account from the prior year to the current year and to detail where the funding has
come from. The reconciliation of the movement in the State Funding Account shows if and how the
asset base of the Department (and therefore the investment of the State) was used in order to deliver
the programmes of the reporting year.
- In a year when the State Funding Account reduces it means that the cost of programme delivery
consisted of a drawdown of State Funds and the usage/absorption of existing assets.
- In a year when the State Funding Account increases it means that in addition to the cost of
programme delivery for the year in question the drawdown of State Funds has been used to
increase assets.
The requirement to reconcile the year-on-year State Funding movement implicitly means that every
entry reflected in the balance sheet of the current year must have a corresponding entry in the Operating
Cost Statement (OCS) whether cash based or accrued.
Attention must be paid to capital assets to ensure that any/all items affecting the movement in assets
(whether cash or accrual based) are reflected in the Operating Cost Statement in the changes in Capital
Assets heading.
While the non-cash/accrued items do not have a direct impact on the current cash flows, they do affect
the capital and asset structure of the Vote and contribute to calculating the resources consumed within
the accounting period.
25
The basic formula, including figures for illustrative purposes, for verifying this reconciliation is as follows:
2.7 State funding account

Note 2020 2019
€000 €000 €000
Balance at 1 January 124,233 108,796
Disbursements from the Vote

Estimate provision Account 10,767,125
Deferred surrender Account (1,000)
Surplus Account (38,887)
Net vote 10,727,238 10,769,720
Expenditure (cash) borne elsewhere 1 79,881 70,312

Non-cash items – capital assets adjustment (172) -
Non-cash items – depreciation
Non cash expenditure – notional rent 1 14,019 13,437
Net programme cost 1 (10,780,719) (10,838,032)
Balance at 31 December 164,480 124,233
Other Non-Cash Items
In some cases, this formula will not be sufficient to reconcile the figures. This is predominantly due to
non-cash items which are included in the Statement of Capital Assets but do not feature in the Operating
Cash Statement. Typical examples include:
- Prior Year Adjustments

- Assets transferred to/from other Departments
- Revaluation of Assets
- Write off/Write down of Assets
- Accrued purchases included in Asset note
By including these non-cash items in the formula above, the reconciliation will be possible.
Votes are encouraged to provide information to end user regarding the adjustments made to the
calculation where applicable. Where an adjustment is required to complete the reconciliation, a catchall
term such as “Adjustment” is not sufficient and details should be provided to enable the end-user to
follow the reconciliation.
26
10) Commitments (Note 2: Statement of Financial Position)
This section provides guidance regarding global commitments, capital/non-capital grant programmes,
major capital commitments and PPPs.
A commitment is a contractual obligation to pay, on delivery, for goods or services which have yet to be
supplied at year-end.
In the case of grant schemes, a commitment is recognised when the grant is approved but the guarantee
has yet to fulfil the requirements of the scheme.
A note provides figures for commitments in excess of €10,000 likely to materialise in the subsequent
years under the headings:
a) Global Commitments
b) Non-Capital grant programme commitments
c) Capital grant programme commitments
d) Major capital project commitments
e) Commitments under public private partnerships
All commitments (subject to financial thresholds above) should be disclosed
Note: Individual capital projects involving total expenditure of €10,000,000 or more should be shown
separately in the major capital commitments table or the costs of public private partnership projects
table.
Where the commitment has changed by more than €500,000 compared with the previous year, the
reason for the movement should be explained.
The financial reporting requirement for each of the classifications of commitments is discussed below.
From an audit perspective, a look back to the figures disclosed in the previous year’s accounts is
recommended.
Global Figure for Commitments
A global figure for commitments as at 31 December likely to materialise in the subsequent year(s)
should be given by way of note to the account, together with prior year comparative. Global figure for
commitments should be disclosed under the following headings:
a) Procurement of goods and services
b) Non-capital grant programmes
c) Capital grant programmes
d) Capital projects
e) Public Private Partnership projects
Non-capital grant programmes
Reconciliation between opening balance and closing balance at 31 December should be shown, clearly
indicating all material movements in the period – grants paid in year, new grant commitments, grants
cancelled, etc.
27
Capital grant programmes
Reconciliation between opening balance and closing balance at 31 December should be shown, clearly
indicating all material movements in the period – grants paid in year, new grant commitments, grants
cancelled, etc.
Major Capital Projects
In this context commitments relate only to legally enforceable commitments relating to capital projects.
In regard to such commitments, a table should be included in the appropriation accounts setting out for
each Vote, if appropriate, the total amount spent in the year of account and the total amount of the
commitments to be met in subsequent years. In addition, for each individual capital project involving
total expenditure of €10,000,000 or more, particulars should be given indicating the cumulative amount
spent up to the beginning of the year of account, the amount spent in the year of account and the
amount to be met in subsequent years. See example below:
Note: Where the expected total project spend has varied by more than €500,000 since the end of the
previous year, an explanation must be provided. See example below.
d) Major capital projects
Cumulative Expenditure Project Expected Expected

expenditure in 20yy² commitments total total
to 31 in subsequent spend spend
December years lifetime of lifetime of
20xx¹ project project
20yy³ 20xx
€000 €000 €000 €000 €000
Capital project (title) 6,000 900 4,200 11,100 10,800
Capital project (title) 18,000 3,700 600 22,300 21,600
24,000 4,600 4,800 33,400 32,400
Explanation for variance
An explanation is provided below where the expected total project spend has varied by more than
€500,000 since the end of the previous year.
Increase/Decrease in expected total spend was due to…….
¹ Cumulative expenditure to end of prior year
² Expenditure in current year
³ Expected total lifetime spend at end of current financial year
Public Private Partnerships (PPP)
A Public Private Partnership (PPP) is an arrangement between the public and private sectors
(consistent with a broad range of possible partnership structures) with clear agreement on shared
objectives for the delivery of public infrastructure and/or public services by the private sector that would
otherwise have been provided through traditional public sector procurement. PPP projects focus on a
whole-life, integrated approach to the procurement of large scale public assets and/or services.
Further information on PPPs in Ireland can be found on the Central PPP Unit’s website at
www.ppp.gov.ie
28
The purpose of this note is to detail the cost of PPP projects in respect of which capital expenditure has
been incurred. The full cost of each PPP project (i.e. capital costs, interest costs and operation and
maintenance costs) for the current year is shown in the appropriation account as a separate line item
under the subhead for unitary payments. Since 2016, all PPP costs are accounted for under capital
envelopes. See example below:
e) Unitary payments of Public Private Partnership Projects
Name of PPP Cumulative Expenditure Legally enforceable Project Project

Project Expenditure to in 20YY commitments to be Total Total
31 December met in subsequent 20YY 20XX
20XX years
€000 €000 €000 €000 €000
Project (title) 8,000 5,000 3,000 16,000 16,000

Project (title) 4,000 2,000 1,500 7,500 7,000
Increase/Decrease in expected total spend

Note: Unitary payments for Public Private Partnership Projects should be shown separately in a table
where projects involve total expenditure of €10,000,000 or more.
The total capital cost (i.e. excluding Operation and Maintenance costs) of the project, to be shown in
Column 4 in the table, should represent all the costs (including VAT) associated with the construction
of the physical asset to the point of becoming available for use and included in the winning bidder’s
financial model:
i. Actual capital construction costs (including “fit out” services and equipment costs)
ii. Administration arrangement overheads for consortium that would be factored into commercial
pricing of the built asset (e.g. bank fees, SPC operating costs insurance, etc.)
iii. Short term funding costs (excluding finance charges) to point of delivery of the built asset (i.e.
arrangement and commitment fees, capitalised interest, etc.)
Column 1 “Cumulative Expenditure to 31 December 20XX” displays expenditure up to end of previous

year on repayment of capital cost of asset at the point of delivery, excluding the cost of PPP financing.
Column 2 “Expenditure in 20YY” displays expenditure in the current year on repayment of capital cost
of the asset at point of delivery, excluding the cost of PPP financing.
Column 3 “Legally enforceable commitments…” displays the amount still outstanding on repayment of
capital cost of the asset at point of delivery, excluding cost of future debt servicing in PPP arrangement,
(i.e. the difference between Column 4 and the sum of Columns 1 and 2.)
Column 4 “Project Total 20YY” displays the capital cost of asset at point of delivery, excluding finance
charges over the life of the PPP project.
Column 5 “Project Total 20XX” displays the capital cost of asset at point of delivery, excluding finance
charges over the life of the PPP project as calculated for the prior year accounts.
29
Treatment of VAT on Construction
It is usual for PPP projects that VAT is paid when individual payments are made. For such PPP projects
the annual charge for VAT on construction should be included with the current year expenditure in
Column 2 and accumulated in Column 1. The balance still outstanding on the capital cost of the project
at delivery given for each project in Column 3 should also include VAT on construction.
In a number of PPP projects, the VAT liability on construction of the asset may be dealt with separately
to the arrangements in the financial model. In such circumstances, the VAT liability on construction
agreed with the Office of the Revenue Commissioners and paid as a lump sum should be treated as a
once off payment in the first year of the project and reflected in the table by being included in the amount
in Column 2 (if the project commenced in the year of the appropriation account) or in Column 1 (if the
project commenced before the year of the appropriation account). Where the VAT on construction is
paid in this manner, the fact should be noted in a footnote to the table.
Relevant Circulars
- Global Figure for Commitments (as per Circular 1/1995)

- Multi-annual Capital Commitments (as per Circular 18/1992)
- Public Private Partnerships (PPP) (as per Circular 4/2007)
11) Prepayments (Note 2: Statement of Financial Position)

This section provides guidance regarding disclosure of prepayments.
A prepayment is an amount paid in the current financial reporting period where the related goods or
service will not be received until a future period. Examples include
 payment for fleet insurance which covers a twelve month period , of which only three
have elapsed by the end of the financial reporting period
 Payment for software maintenance for a three year period and only 6 months has
elapsed by the end of the financial reporting period.
The note should provide a breakdown of the Prepayments that Votes have provided for at the year end.
The financial reporting requirements for each of the categories of prepayments is discussed below.
Note 2.X provide details of the type and amounts of prepayments provided for at year end. This
requirement applies where either of the following conditions exist:
 Prepayment value greater than €1,000,000
 Prepayment value greater than or equal to 33% of current assets less bank and
cash
30
The financial reporting requirements for the detailed disclosure is as follows:
Format and presentation:
 Where a note is prepared, prepayments should be listed from largest to smallest.

 Comparatives should be disclosed even if the comparative does not reach the
parameters.
 If the prior year value for a prepayment meets the parameters, prior year and current
year values should be disclosed where practicable.
Detailed disclosure:
Prepayments of a similar nature can be grouped together for disclosure purposes into one category.
The number of categories will vary between Votes depending on the nature of operations. Common
categories which may be applicable include:
Administration expenses will generally relate to items of expenditure included in Administration

subheads. Where certain components are significant, for example ICT prepayments, these should be
disclosed separately. In some cases, it may be appropriate to disclose software and hardware
components separately.
Administration expense prepayments which are not separately identified may be grouped together
under “Other administration “for example.
There may be significant prepayments specific to the activities of the Vote, for example mission rents,
contributions to international organisations, National Digital Radio payments, agency or consultancy
services and these should be disclosed separately.
Certain programmes may have significant prepayments other than administration related costs and
consideration should be given to the appropriate level of disclosure. For example, rather than simply
one heading for Programme prepayments, it may be appropriate to separately identify significant
component(s).
12) Accruals (Note 2: Statement of Financial Position)

This section provides guidance regarding disclosure of accruals.
An accrual may be required in a number of circumstances at year end where the Department has an
obligation to make a payment in the future. The accrual basis means a basis of accounting under which
transactions, other events and conditions are recognised when they occur rather than when cash or its
equivalent is received or paid
 In the case of goods and services, an accrued liability is recognised when the payee
has met the contractual requirement to provide the goods or services ordered. Amounts
due for goods delivered, but not yet paid for, even if un-inspected and not taken to
stock, are treated as a liability.
 In the case of grants, a liability is recognised when the grantee has met all the
requirements of the grant scheme but has yet to receive payment.
 Travel and subsistence liabilities are recognised when travel has been completed.
The note should provide a breakdown of the accruals that Votes have provided for at the year end.
31
The financial reporting requirements for each of the categories of accruals is discussed below.
Note 2.X provide details of the type and amounts of accruals provided for at year end. This requirement
applies where either of the following conditions exist:
 Accrual value greater than €1,000,000
 Accrual value greater than or equal to 20% of Current Liabilities
The financial reporting requirements for the detailed disclosure is as follows:
Format and presentation:

 Where a note is prepared, accrual categories should be listed from largest to smallest.
 Comparatives should be disclosed even if the comparative does not reach the
parameters.
 If the prior year value for an accrual meets the parameters, prior year and current year
values should be disclosed where practicable.
Detailed disclosure:
Accruals of a similar nature can be grouped together for disclosure purposes into one category. The
number of categories will vary between Votes depending on the nature of operations. Common
categories which may be applicable include:
Administration expenses will generally relate to items of expenditure included in Administration

subheads. Where certain components are significant, for example ICT accruals, office equipment,
agency or consultancy services, these should be disclosed separately. In some cases, it may be
appropriate to disclose components within a heading separately – for example ICT accruals may show
software and hardware components separately.
Administration expense accruals which are not separately identified may be grouped together under
“Other administration “for example.
There may be significant accruals specific to the activities of the Vote, for example Office premises
expenses such as station services for the Garda Síochána may be disclosed separately.
Certain programmes may have significant accruals for costs other than administration related costs and
consideration should be given to the appropriate level of disclosure. For example, rather than simply
one heading for Programme Accruals, it may be appropriate to separately identify significant
component(s).
32
13) Vote Expenditure (Note 3)
Analysis of Administration Expenditure
The following note presents an analysis of the administration expenditure of the Vote and outlines the
reasons for significant variations (+/- 25% and €100,000). Administration expenditure has been
apportioned across the programmes, to present complete programme costings.
Note: Departments/Offices and other Vote holders are required to explain the difference between the
original estimate provision and the outturn in the first instance. A note is provided where the variation
relative to the original estimate provision (including deferred capital funding) is:
 €100,000 or more; and

 represents 5% or more of the subhead (25% in the case of administration subheads); or
 represents a significant variation from the original estimate provision that does not meet the
above criteria but which warrants explanation.
Explanations should be meaningful, and should supplement rather than reiterate the information
contained in the appropriation account. The explanation should distinguish between the reason for the
variation in the amount spent, and the funding implications e.g. under/over spend requires a
supplementary estimate, or virement. Notes in relation to variations in the categories of appropriations
in aid are included on a similar basis. See example below:
Significant variations
The following note presents an analysis of the administration expenditure of the Vote and outlines the
reasons for significant variations (+/- 25% and €100,000). Administration expenditure has been
I. Salaries, wages and allowances
Estimate provision: €Xm, Outturn: €Ym
The increase/decrease of €Zm on expenditure on salaries, wages and allowances was due to…
II. Travel and subsistence
The increase/decrease of €Zm on expenditure on travel and subsistence was due to…
III. Training and development and incidental expenses
The increase/decrease of €Zm on expenditure on training and development and incidental expenses was
due to…
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14) Staffing and Remuneration (Note 5)
This section provides clarification regarding what is required to be disclosed regarding staff and pay.
This note deals with staffing and remuneration to give an overall view of the number of employees (full
time equivalents) and the associated pay costs for departmental and agency staff. The purpose is to
relate the appropriation account to the Estimates.
The note should clearly distinguish total number of staff broken down into Department and agencies at
year end (with reference to the figure disclosed in the Revised Estimate). The figures disclosed for staff
of agencies under the aegis of the Department should include a footnote explaining that the information
is based on returns made by the agencies.
5.1 Number of staff at year end (full time equivalents)

Report the actual staff numbers3 broken down into Department and agencies at year-end of year being
reported on and prior year, with reference to the figure disclosed in the Revised Estimate Volume. For
illustrative purposes, see an example of a Revised Estimate for 20XX.
20XX 20YY
Outturn Estimate
Exchequer pay included in above net total 28,123 31,243
Associated Public Service employees 506 520
With reference to the example above, the disclosure requirements for the appropriation accounts are
as follows:
5.1 Employee Numbers

20YY 20XX
Number of staff at year end
(full time equivalents)
Department 400 392
Agencies 120 114
Total 520 506
In the tables for 5.1 Employee numbers and 5.2 Pay, column heading 20YY relates to the values for
the current year and 20XX relates to the values for the prior year.
5.2 Pay
Total pay broken down into Department and agencies arising from the employment of staff disclosed
under Note 5.1. Note 5.2 ‘Pay’ is broken down into separate tables – see example below. The figures
required are for all department staff in one table and all agencies under the aegis of the department in
another table. Report on the actual total pay, with reference to the “Exchequer pay” figure disclosed in
3 The actual employees serving (full-time equivalent)
34
the Revised Estimate in terms of the total allowances, overtime and employer PRSI arising from the
employment of staff in 5.1.
- In cases where the Exchequer pay figure as is disclosed in the Revised Estimate Volume does
not represent the totality of pay for the numbers disclosed under Note 5.1), a footnote to this
effect should be provided. A similar footnote is included in the Estimates, and similar wording
is proposed: “These figures include a number of Non-Commercial State Agencies (NCSAs) that
are not in direct receipt of Exchequer funding but whose staff are included under Note 5a)”.
The disclosure requirements for the appropriation accounts are as follows :
5.2 Pay - Department

20YY 20XX
€000 €000
Pay
Higher, special or additional duties allowance
Other allowances
Overtime
Employer’s PRSI
Total pay a
a
The total pay figure is distributed across subheads A.1, B.1 and C.1.
5.2 Pay - Agencies

20YY 20XX
€000 €000
Pay
Other allowances
Overtime
Employer’s PRSI
Total pay a
a
Note 5.3 Allowances and overtime payments for Department and Agency staff
Higher, special or additional duties, other allowances, overtime and extra remuneration in more than
one category are required for all departmental and agency staff in Note 5.3. These should be broken
down into separate tables, similar to Note 5.2.
Votes are reminded that this note requires all allowances paid whether it be temporary or whole time
relating to specific duties associated with the role or anything else incidental to the function should be
included in the Note.
In the case of extra remuneration, the details given should include the total number of recipients of extra
remuneration in one or more categories, the number of individuals that received €10,000 or more and
the maximum individual payment, if over €10,000.
35
5.3 Allowances and overtime payments - Department
Number of Recipients Highest Highest
recipients of €10,000 individual individual
or more payment payment
20YY 20XX
€ €
Higher, special or additional duties 56 17 19,149 18,878

Other allowances 95 17 32,752 46,233
Overtime 178 2 29,626 33,374
Extra remuneration in more than one category 40 40 23,000 25,000
5.3 Allowances and overtime payments - Agency

Number of Recipients Highest Highest
recipients of €10,000 individual individual
or more payment payment
20YY 20XX
€ €
Higher, special or additional duties 43 4 11,972 12,789

Other allowances 102 12 31,214 40,327
Overtime 63 6 24,862 32,473
Extra remuneration in more than one category 8 3 25,393 28,928
Below are examples for each category:

• Higher allowances - costs relating to an acting up position
• Special allowances - allowances relating to specific duties associated with the role
• Additional duties - allowances relating to specific duties which may not be associated with the
role e.g. key holder
• Other allowances - anything else incidental to the function e.g. rent, uniform or boot allowances
The other notes on payroll overpayments, performance and merit pay, severance and
redundancy pay, special payments and other remuneration arrangements should be disclosed
for Department staff only.
Column 3 “Highest individual payment 20YY” displays highest payment to an individual in respect of
allowances and overtime payments in the current year.
Column 4 “Highest individual payment 20XX” displays highest payment to an individual in respect of
allowances and overtime payments in the prior year.
Note 5.4 Other Remuneration Arrangement

Votes are reminded to disclose any payments made to retired civil servants in receipt of civil service
pensions who are re-engaged4.
4Circular 29/95 “Revised Vote Accounting Arrangements regarding Payments to Retired Civil Servants re‐
employed/re‐engaged by Departments/Offices”
36
Expenditure on salaries for staff who were serving outside of the Department during the period under
review (20YY) is disclosed.
The final paragraph included in Note 5.4 refers to staff who were on secondment outside your
Department for all or part of the year under review (20YY) in another Government Department/Office
and whose salaries were paid by the other Government Department/Office and, therefore, were not
recouped by your Department. You do not need to include amounts in this text, you only need to provide
the number of staff. For illustrative purposes only, see an example below of Note 5.4 – Other
Remuneration Arrangements
5.4 Other remuneration arrangements
10 retired civil servants in receipt of a civil service pension were re-engaged on a fee basis at a total cost
of €120,000, ranging from €1,000 to €30,000. The payments made were consistent with the principles of
the Public Service Pensions (Single Scheme and other Provisions) Act 2012.
This account includes expenditure of €500,000 in respect of 10 officers who were serving outside the
Department for all or part of 20YY and whose salaries were paid by the Department.
This account does not include expenditure in respect of 5 officers who were serving outside the Department
for all or part of 20YY in other Government Departments/Offices and whose salaries were not recouped by
the Department.
Note 5.5 - Payroll Overpayments

Only overpayments which are of significant material value should be included in Note 5.5. As a general
guide, if total payroll overpayments for the year exceed €10,000, they should be disclosed in the note.
The total overpayments at year-end and the number of overpayment recipients this figure relates to
should be disclosed. Comparative figures for the previous year should be provided to show any increase
or decrease. The number of recipients with recovery plans in place should also be disclosed.
Payroll overpayments that have been transferred to another Department should also be included in
Note 5.5. Where a recovery plan is in place, and a staff member transfers to another Government
Department or civil service organisation, the amount of the overpayment to be repaid to the Exchequer
will transfer with the staff member. He/she will be required to repay the overpayment as provided for in
the overpayment recovery plan to the new Department or civil service organisation. The number and
value of the recovery plans transferred should be disclosed by the relevant Department in the year of
transfer e.g. X number of overpayment recovery plans in respect of X number of individuals to the value
of €X were transferred to Department X in the year. See example below.
5.5 Payroll overpayments
Number of 20YY 20XX

recipients € €
Overpayments
Recovery Plans in place
X number of overpayment recovery plans in respect of X number of individuals to the value of €X were
transferred to Department X in the year.
37
Note 5.6 – Severance and Redundancy
Note 5.6 ‘Severance and Redundancy’ was added to the appropriation account in 2018 to meet the
requirements of DPER Circular 09/2018 “Consolidation of arrangements for the offer of severance terms
in the civil and public service”. Severance and redundancy payments (in excess of €10,000) are
required to be disclosed in this Note. In addition to any severance payments made, the disclosure
should include details, if any, of early payment of pension, the addition of added years of notional
service, or any other enhancement to the accrued pension terms that has been granted. See illustrative
example attached.
38
15) Compensation and Legal Costs (Note 6: Miscellaneous)
This section provides clarification regarding what is required to be disclosed regarding legal costs and
compensation.
In cases where cumulative legal costs incurred in the year of account exceed €50,000, (i.e. in situations
where legal costs, in total, have exceeded €50,000, or where a single case exceeds €50,000), a note
is to be provided. This note sets out the costs incurred by a Vote in 202X in respect of legal costs and
compensation awards made to those who have taken legal actions against the Department/office
concerned. The note distinguishes between different types of claims (where applicable), and provides
a breakdown of the various types of cost incurred as well as compensation paid. Corresponding costs
for 202(X-1) are also provided.
The note is broken-down into 3 distinct parts

 Details of Legal Costs paid out by the Vote/Department directly or to reimburse the State
Claims Agency ( Table A )
 Details of the cumulative total costs of Legal Cases finalised in the year of Account. (Table
B)
 Details of Legal Cases Costs paid by the Chief States Solicitors Offices for cases that the
CSSO is representing the Department in. (Table C)
Scope of the note – Legal Case costs, awards and associated costs paid by Departments / Votes to
those who have taken a legal case against the Department including:
a) costs of cases settled as a result of a court hearing
b) costs of cases settled prior to a court hearing i.e. a settlement
(i) Departments own legal costs paid refers to:

amounts paid by a Department to cover the legal fees for the Department involved in a legal case
to lawyers it has engaged to represent it. It also includes costs that have been reimbursed to the
State Claims Agency for legal cases involving the Department. Note that where a Department is
represented by the Chief State Solicitor's Office (CSSO), the fees are discharged by the CSSO
on behalf of the Department and are dealt with in Table C.
(ii) Compensation paid by the Department refers to:

Payments by the Department in respect of damages awarded by a court or agreed as part of a
settlement, to include general damages (loss of earnings) and special damages (any other
pecuniary losses arising from the wrongful act of the other party) where applicable.
(iii) Legal costs paid by the Department to other parties involved refers to:
amounts paid by a Department to cover the legal fees of the other party in circumstances where
a judgement has been made to that effect, normally arising from the Department having lost the
case.
39
(iv) Other costs paid by the Department to other parties involved refers to:
amounts paid by a Department to cover miscellaneous costs other than legal fees of the other
party or compensation to other parties where these costs have been incurred in progressing the
case. Examples include: agency fees, investigator fees and medical fees etc
(v) Where there are a number of claims, the information should be analysed by type of claim and
whether the claims are made by employees, by members of the public or by any other relevant
group. Examples of Types of claims include:
a) Personal injury claims (legal action taken by a person after they have been involved in an
accident or injured because of the actions/inactions or negligence of a third party)
b) Injured at work
c) Loss or damage claims ( for example compensation for loss or damages caused by breach of
contract)
d) Claims under a specific piece of legislation i.e. Garda Síochána Compensation Acts
The detailed requirements for each of Tables A, B and C are set out below.
Table A - Details of Legal Costs paid out by the Vote/Department directly or to reimburse the
State Claims Agency
The components of the legal costs in respect of cases in which the Department is or was involved
should be disclosed. This does not include the cost of legal advice provided outside of legal
proceedings e.g. in context of development of policy or legislation. If the Department is
represented in legal proceedings (other than the Chief State Solicitor's Office), the costs
incurred in relation to these cases are included in the table.
In cases where cumulative legal costs incurred in the year of account exceed €50,000 (i.e. in situations
where legal costs, in total, have exceeded €50,000, or where a single case exceeds €50,000), the note
to be provided outlines the breakdown of the total costs into:
 Departments own Legal Costs (Legal Costs paid by Department)
 Compensation awarded / paid by the Department
 Legal costs paid by the Department to other parties involved (Legal costs awarded against the
Department);
 Other Costs paid by the Department to other parties (i.e. agency fees, investigator fees and
medical fees etc.)
Total expenditure by component should be noted for each type of claim for the year under review, with
a grand total comparative for prior year. Total expenditure includes expenditure by the vote/department
itself and all expenditure made during the year to reimburse the State Claims Agency (SCA) for cases
in which it is representing the Department.
Information should be provided in footnotes for:
1. The number of claims by type outstanding at the end of the period under review together with
comparative refers to the number of cases at the 31st December that have been initiated against
the Department/State Claims Agency and that have not yet concluded as at the reporting date.
2. Outstanding legal costs due at the end of the period under review by the State Claims Agency.
3. Any further information which the Department believes is necessary for the understanding of the
information is disclosed.
An example of Table A and related footnotes is provided below:
40
6.2(A) Payments/Costs paid by the Department
2021 2020
Department Compensation Legal Costs Other Costs Total Total
own legal paid by the paid by the paid by the
costs paid Department Department Department
to other to other
parties parties
involved involved
€’000 €’000 €’000 €’000 €’000 €’000
Personal
Injury Claims
Claims by
Employees 12 31 29 3 75 255
Claims by
Members of the 11 58 15 5 89 -
public
Injury at Work
Claims by
Employees 9 210 - - 219 -
Claims by
Members of the
public
- - - - - 245
Total
Expenditure
Personal Injury 23 89 44 8 164 255
claims
Injury at Work 9 210 - - 219 245
32 299 44 8 383 500
1) At 31st December 2021, the following claims are outstanding:
2021 2020
No of No. of
Claims Claims
Injury claims 5 3
Injury at Work 2 3
2) At 31st December 2021, the Department/Office has included in Other Creditors Due, €56,000 (2020:
€Nil) being the total outstanding legal costs due to the State Claims Agency.
41
Table B - Details of the cumulative total costs of Legal Cases finalised in the year of Account.
Cumulative Costs, Table 6.2 (B), refers to cases in which all costs have been discharged and the case
is now closed. Cases should be include in this note when the final costs have been paid and settled in
the year of account, where cumulative total legal costs incurred over the term of the case exceed
€50,000 (i.e. in situations where legal costs, in total, have exceeded €50,000, or where a single case
exceeds €50,000).
Legal cases finalised in the year of account refers, for the purposes of the note, to legal cases completed
and all costs paid by the Department. In the situation where a case is being appealed, for the purposes
of this note, the case would not be finalised as there may be further legal costs / compensation to be
paid by the Department associated with that particular case.
The note provides the following information:
 The total number of cases completed

 Departments own Legal Costs (Legal Costs paid by Department)
 Compensation awarded / paid by the Department
 Legal costs paid by the Department to other parties involved (Legal costs awarded against
the Department);
 Other Costs paid by the Department to other parties (i.e. agency fees, investigator fees and
medical fees etc.)
An example of Table B is provided below:
6.2. (B)Cumulative Costs Completed Cases - Costs Paid by the Department

2021
Number of Department Compensation Legal Other Total
Cases own Legal paid by the Costs paid Costs paid
Costs paid Department by the by the
Department Department
to others to other
parties parties
involved involved
€’000 €’000 €’000 €’000 €’000
Personal Injury
Claims
Claims by Employees 20 100 250 50 50 450
Claims by Members of
the Public 9 120 235 150 55 560
Other claims
Claims by Employees 10 20 40 35 10 105
Claims by Members of 3 5 15 5 10 35
the Public
Total Expenditure
Personal Injury claims 29 220 485 200 105 1,010
Other claims 13 25 55 40 20 140
42 245 540 240 125 1,150
42
Table C - Details of Legal Cases Costs paid by the Chief States Solicitors Offices for cases
that the CSSO is representing the Department in.
In cases where cumulative total legal costs incurred by the Chief State Solicitors Office in the year of
account exceed €50,000 (i.e. in situations where legal costs, in total, have exceeded €50,000, or
where a single case exceeds €50,000), the note, to be provided:
 Type of claim
 Number of cases
 Amount incurred
An example of Table C is provided below:
6.2 (C) Payments Made by the Chief States Solicitors Office

During the period, the Chief State Solicitor’s Office (CSSO) paid the following legal costs/fees for legal
cases involving the Department
No of Cases €000
Injury claims - Ongoing 5 15
- Resolved 15 55
Other claims - Ongoing 10 45

- Resolved 25 75
Total Expenditure 190
43
16) Arbitration and Conciliation Costs (Note 6: Miscellaneous)
A note is required for costs arising from arbitration and conciliation proceedings. The total expenditure
relating to arbitration and conciliation should be shown for the year being reported on and the prior year.
The total number of cases for both years should be included in the note.
The arbitration and conciliation figure relates to all arbitration and conciliation payments made by the
Department/Office in the year, which may include:
 arbitrator’s and conciliator’s fees,

 the settlement reached that the Department/Office paid in year,
 costs that are awarded against the Department/Office,
 consultants fees,
 VAT, etc.
 Where relevant, mediation costs should also be included in this Note.
Payroll costs arising from arbitration or conciliation should be included separately in Note 5
(Employee Numbers and Pay).
Illustrative Example:
A settlement of €3 million was initially sought by the contractor involved in the dispute, the final agreed
settlement of €2.5 million was paid in the year. An additional €20,000 was paid to the arbitrator to cover
their fees.
See example below.
6.6 Arbitration and Conciliation Costs
Expenditure in 20YY includes payments of €2.52 million (20XX: €3.83 million) made to
contractors and others to cover costs as a result of conciliation and arbitration proceedings.
There was 1 case in 20YY (20XX: 3 cases). Figures include VAT, legal, engineering
consultants and resolver fees.
44
17) Fraud and Suspected Fraud (Note 6: Miscellaneous)
This section provides clarification regarding what is required to be disclosed regarding fraud and
suspected fraud.
In the case of losses due to fraud or suspected fraud, information is supplied where;
 the total of losses during the accounting period were €10,000 or more, or
 an individual loss was €10,000 or more, or
 for losses under €10,000, a serious issue of principle arises or where the Comptroller and
Auditor General or the Department of Public Expenditure and Reform considers that a
disclosure should be made.
Note 6.3 ‘Fraud and Suspected Fraud’ is shown in table format showing the prior year figures for
comparison purposes. Additional information can be provided, to inform the end-user as to the nature
of the loss, with the title of the note amended to reflect this i.e. if fraud has not been proven, the note
should refer to “Suspected Fraud”. See illustrative example attached, page 20.
18) Write-Offs
Information on write-offs must be presented in Note 6 ‘Miscellaneous’. See example below.
6.7 Write-Offs
The following sums were written off in the year:
20YY 20XX
€000 €000
Suspense account balance re: Income Tax 10 -
Unpaid fees from companies no longer trading - 4
10 4
19) Committees, Commissions and Special Inquiries

Where appropriate, Note 6 should include a statement of expenditure on each Commission or Special
Inquiry financed from the Vote. A distinction is made between permanent commissions, and those
established on a temporary basis for a fixed purpose. In the former case, expenditure in the year of
account and prior year should be shown. In the latter case, the date of establishment and cumulative
expenditure from the date of establishment should be shown. See Note 6.1 of the attached illustrative
example.
20) National Lottery

The National Lottery note should give the total amount(s) of payments made to promoters of National
Lottery funded eligible charities. The note should indicate that these payments may have been part
funded by the National Lottery and that a list(s) of grants provided are available on the relevant
Department website.
45
21) EU Funding
The outturn shown in Subheads X.1 and X.2 includes payments in respect of activities which are co-
financed by the ERDF and Y1 which is co-financed by the EU.
22) Deferred Surrender

Where relevant deferred surrender that is to be carried over into 2022, should be listed in Note 6,
outlining the savings in the individual subheads. See Note 6.6 of attached illustrative example.
23) Late Payments

In the case of interest and compensation payments under the Late Payment in Commercial
Transactions Regulations, 2012, information is supplied in Note 6 where:
 the total of interest payments due was €10,000 or more; or
 an individual payment was €10,000 or more.
24) Annex to the Appropriation Account

Government Departments and Vote Holders are required to include an annex to the appropriation
accounts, providing a report on the presentation to the Oireachtas of the audited financial statements
of bodies and funds under the aegis of their Departments. See illustrative example attached, Appendix
B, page 23.
Timelines for presentation of audited financial statements
Source: Comptroller and Auditor General Special Report on Public Sector Financial Reporting for 2015
46
25) Appropriation Account Audit Process
•Appropriation accounts prepared by Department/Office. C&AG expect to issue the template

1 by early February and it will conform to attached illustrative example
2 • Send accounts to C&AG - privatesecretary@audit.gov.ie. 31st March - earlier

submission if possible
• OCAG enters the appropriation accounts into standard template. April 11-22
3
• OCAG sends the template back to Department/Office for review and

4 comment. Changes will be highlighed. April 11-22
• Department/Office confirms the changes. Receipt of template plus 10

5 working days
• Agree changes to accounts arising from audit proess - continuous

6
• C&AG certifies accounts

7
• Prepare Irish version of acounts - as directed by SA/DD

8
• OCAG arranges for the accounts to be presented and published. 30th

9 September
47
Appropriation Account 2021
Vote X
Illustrative example
2 Vote X 2021
Introduction
As Accounting Officer for Vote X, I am required each year to prepare the Appropriation Account
for the Vote, and to submit the Account to the Comptroller and Auditor General for audit.
In accordance with this requirement, I have prepared the attached account of the amount
expended in the year ended 31 December 2021 for the salaries and expenses of the Vote for
Illustrative purposes, including the Paymaster General's Office, for certain services administered
by the Office of the Minister and for payment of certain grants.
The expenditure outturn is compared with the sums:

(a) granted by Dáil Eireann under the Appropriation Act 2021, including the amount that could
be used as appropriations-in-aid of expenditure for the year, and
(b) provided for capital supply services in 2021 out of unspent 2020 appropriations, under the
deferred surrender arrangements established by section 91 of the Finance Act 2004.
A surplus of €x.xxx million is liable for surrender to the Exchequer.
The Statement of Accounting Policies and Principles and notes x to x form part of the account.
Statement of Accounting Policies and Principles
The standard accounting policies and principles for the production of appropriation accounts, as
set out by the Department of Public Expenditure and Reform in Circular XX of 2021, have been
applied in the preparation of the account.1
Statement on Internal Financial Control
Responsibility for System of Internal Financial Control
As Accounting Officer, I acknowledge my responsibility for ensuring that an effective system of

internal financial control is maintained and operated by the Department/Office.
This responsibility is exercised in the context of the resources available to me and my other
obligations as Secretary General/Head of Office. Also, any system of internal financial control can
provide only reasonable and not absolute assurance that assets are safeguarded, transactions
authorised and properly recorded, and that material errors or irregularities are either prevented or
would be detected in a timely manner. Maintaining the system of internal financial controls is a
continuous process and the system and its effectiveness are kept under ongoing review.
I have fulfilled my responsibilities in relation to the requirements of the Service Management

Agreement between this Department/Office and the National Shared Service Office for the
provision of (e.g. HR) shared service.
I rely on a letter of assurance from the Accounting Officer of the National Shared Services Office
that the appropriate controls are exercised in the provision of shared services to this
Department/Office.
The position in regard to the financial control environment, the framework of administrative
procedures, management reporting and internal audit is as follows.
1
Any departures from the standard Statement of Accounting Policies and Principles should be highlighted
here.
3 Appropriation Account 2021
Financial Control Environment
I confirm that a control environment containing the following elements is in place.

 Financial responsibilities have been assigned at management level with corresponding
accountability.
 Reporting arrangements have been established at all levels where responsibility for financial
management has been assigned.
 Formal procedures have been established for reporting significant control failures and
ensuring appropriate corrective action.
 There is an Audit Committee to advise me in discharging my responsibilities for the internal
financial control system.
 Procedures for all key business processes have been documented.
 There are systems in place to safeguard the assets.
Administrative Controls and Management Reporting
I confirm that a framework of administrative procedures and regular management reporting is in

place, including segregation of duties and a system of delegation and accountability. This includes
the following elements.
 There is an appropriate budgeting system with an annual budget which is kept under review
by senior management.
 There are regular reviews by senior management of periodic and annual financial reports
which indicate financial performance against forecasts.
 A risk management system operates within the Department/Office.
 There are systems aimed at ensuring the security of the ICT systems.
 There are appropriate capital investment control guidelines and formal project management
disciplines.
 The Department ensures that there is an appropriate focus on good practice in purchasing
and that procedures are in place to ensure compliance with all relevant guidelines. 2
Internal Audit and Audit Committee
I confirm that the Department/Office has an internal audit function with appropriately trained
personnel, which operates in accordance with a written charter which I have approved. Its work
is informed by analysis of the financial risks to which the Department/Office is exposed and its
annual internal audit plans, approved by me, are based on this analysis. These plans aim to cover
the key controls on a rolling basis over a reasonable period. The internal audit function is reviewed
periodically by me and by the Audit Committee. I have put procedures in place to ensure that the
reports of the internal audit function are followed up.
Non-compliance with procurement rules
I confirm that the Department/Office ensures that there is an appropriate focus on good practice
in purchasing and that procedures are in place to ensure compliance with all relevant guidelines.
The Department complied with the guidelines with the exception of XX contracts (in excess of
€25,000), totalling €XXX (ex. VAT) details are set out below:
• X contracts with a value of €XX were …… (insert reason)
• X contracts with a value of €XX were …… (insert reason)
2
Any exceptions to this statement about procurement should be indicated here. Suggested format: "With the
exception of X contracts to the value of €X". In that case, details should be provided as to why the contracts
were not in compliance and the steps being taken to remedy the situation. It should also be noted whether
these contracts were included on the 40/02 return.
4 Vote X 2021
The Department has provided details of XX non-competitive contracts in the annual return in
respect of Circular 40/2002 to the Comptroller and Auditor General and the Department of Public
Expenditure and Reform.”
Risk and Control Framework
The department has implemented a risk management system which identifies and reports key
risks and the management actions being taken to address and, to the extent possible, to mitigate
those risks.
A risk register is in place which identifies the key risks facing the department and these have been
identified, evaluated and graded according to their significance. The register is reviewed and
updated by the Management Advisory Committee (MAC) on a [insert timeframe e.g. quarterly]
basis. The outcome of these assessments is used to plan and allocate resources to ensure risks
are managed to an acceptable level.
The risk register details the controls and actions needed to mitigate risks and responsibility for
operation of controls assigned to specific staff.
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 the MAC, where relevant, in a timely way. I confirm that 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.
Review of Effectiveness
I confirm that the department has procedures to monitor the effectiveness of its risk management
and control procedures. The department’s monitoring and review of the effectiveness of the
system of internal financial control is informed by the work of the internal and external auditors
and the senior management within the department responsible for the development and
maintenance of the internal financial control framework.
Internal Financial Control Issues
No weaknesses in internal financial control were identified in relation to 2021 that require
disclosure in the appropriation account.
Or
Where weaknesses in internal financial control were identified, provide details a description of the
action taken, or intended to be taken, to correct the weaknesses, or an explanation of why no
action is considered necessary.
Covid-19 Control Issues

Assessments of the impact of Covid-19 were carried out and the results are as follows……
Name
Accounting Officer
Department/Office
Date
Comptroller and Auditor General
Report for presentation to the Houses of the Oireachtas
Vote X Department/Office
6 Vote X 2021
Vote X Department/Office
Appropriation Account 2021
2021 2020
Estimate provision Outturn Outturn
€000 €000 €000 €000

Programme expenditure
A XXXX
B XXXX
C XXXX
Current year provision
Deferred
surrender
Gross expenditure
Deferred surrender
Deduct
D Appropriations-in-aid
Net expenditure
Deferred surrender
Surplus
The surplus of the amount provided over the net amount applied is liable for surrender to the Exchequer.
Under section 91 of the Finance Act 2004, all or part of any unspent appropriations for capital supply services
may be carried over for spend in the following year. €XX of unspent allocations in respect of the capital elements
of Subhead X was carried forward to 2022.
2021 2020
€ €
Surplus
Deferred surrender
Surplus
Name
Accounting Officer
Department/Office
Date
Notes to the Appropriation Account
Note 1 Operating Cost Statement 2021

2021 2020
€000 €000 €000
Programme cost
Pay
Non pay
Gross expenditure
Deduct
Appropriations-in-aid
Net expenditure
Changes in capital assets

Purchases cash
Depreciation
Disposals cash
Profit on disposal
Changes in net current assets

Decrease in closing accruals
Increase in stock
Direct expenditure
Expenditure borne elsewhere

Net allied services expenditure (note 1.1)
Notional rents
Net programme cost
1.1 Net Allied Services Expenditure
The net allied services expenditure amount is made up of the following amounts in relation to Vote X borne
elsewhere, net of costs of shared services provided to other Votes.
2021 2020
€000 €000
Vote 9 Office of the Revenue Commissioners

Vote 12 Superannuation and Retired Allowances
Vote 13 Office of Public Works
Vote 18 National Shared Services Office
Central Fund – Ministerial pensions
Costs of shared services provided to other Votes

8 Vote X 2021
Note 2 Statement of Financial Position as at 31 December 2021

2021 2020
Note €000 €000
Capital assets 2.1
Current assets
Bank and cash 2.2
Stocks 2.3
Prepayments 2.4
Other debit balances 2.5
Accrued income
Total current assets
Less current liabilities

Accrued expenses 2.6
Other credit balances 2.7
Net Exchequer funding 2.8
Total current liabilities
Net current assets

Net assets
Represented by:
State funding account 2.9
2.1 Capital assets

Equipment Furniture Office Assets under Total
and equipment development
fittings
€000 €000 €000 €000 €000
Gross assets
Cost or valuation at 1 January
2021
Additions
Disposals
Adjustments
Cost or valuation at 31
December 2021
Accumulated depreciation
Opening balance at 1 January
2021
Depreciation for the year
Depreciation on disposals
Adjustments
Cumulative depreciation at 31
December 2021
Net assets at 31 December

2021
Net assets at 31 December

2020
General information note(s)
State-owned lands and buildings controlled or managed by the Department which do not have valuations
are set out in Appendix A.
2.2 Bank and cash

at 31 December 2021 2020
€000 €000
PMG balances and cash

Commercial bank account balance
All PMG accounts transferred to the commercial Bank ‘Danske Bank’ from 1st October 2018.
Other Commercial Bank Accounts
The Department holds X number of commercial bank accounts. Moneys in these accounts are
managed and administered by the Department on behalf of X for X reasons. No moneys due to or paid
from the vote are transmitted through these bank accounts. The amount held at the end of 2021 is €X
and is not included in the account (2020: €X).
10 Vote X 2021
2.3 Stocks
€000 €000
Stationery
IT consumables
2.4 Prepayments
2021 2020
€000 €000
Software support
Estate management
Administration
Other Prepayments
2.5 Other debit balances

€000 €000
Recoupable salaries
Recoupable travel expenditure
Travel imprests
Recoupable travel pass scheme expenditure
Other debit suspense items
2.6 Accruals
€000 €000
IT services and support

Specific programme accruals
Administration expenses
Other Accruals
2.7 Other credit balances

€000 €000
Amounts due to the State

Income Tax
Pay Related Social Insurance
Professional Services Withholding Tax
Value Added Tax
Pension contributions
Local Property Tax
Universal Social Charge
Payroll deductions held in suspense

Other credit suspense items
Recoupable salaries
2.8 Net Exchequer funding

€000 €000
Surplus
Deferred surrender
Exchequer grant undrawn
Net Exchequer funding
Represented by:
Debtors
Bank and cash
Debit balances: suspense
Creditors
Due to State
Credit balances: suspense
12 Vote X 2021
2.9 State funding account

Note 2021 2020
€000 €000 €000
Balance at 1 January
Disbursements from the Vote

Estimate provision Account
Deferred surrender Account
Surplus Account
Net vote
Expenditure (cash) borne elsewhere 1

Non-cash items – capital assets adjustment
Non-cash items – depreciation
Non cash expenditure – notional rent 1
Net programme cost 1
Balance at 31 December
2.10 Commitments
a) Global commitments
€000 €000
Procurement of goods and services
Non-capital grant programmes
Capital grant programmes
Capital projects
Public Private Partnership projects
b) Non-capital grant programmes 2018

2021 2017 2020
€000 €000
Opening balance
Grants paid in year
New grant commitments
Grants cancelled
Closing balance
c) Capital grant programmes

2021 2020
€000 €000
Opening balance
Grants paid in year
New grant commitments
Grants cancelled
Closing balance
d) Major capital projects

Cumulative Expenditure Project Expected total Expected
expenditure to in 2021 commitments in spend lifetime total spend
31 December subsequent of project lifetime of
2020 years 2021 project 2020
€000 €000 €000 €000 €000
Capital project
(title)
Capital project
(title)

e) Unitary payments of Public Private Partnership projects

Name of PPP Cumulative Expenditure Legally enforceable Project Project
project expenditure to 31 in 2021 commitments to be total 2021 total 2020
December 2020 met in subsequent
years
€000 €000 €000 €000 €000
Project (title)
Project (title)

14 Vote X 2021
2.11 Matured liabilities

€000 €000
Estimate of matured liabilities not discharged at year end
2.12 Contingent liabilities
The Department/Office has contingent liabilities estimated at €X (2020: €X) relating to X.

Note 3 Vote Expenditure
Analysis of administration expenditure
2021 2020
Estimate Outturn Outturn
provision
€000 €000 €000
i Salaries, wages and allowances

ii Travel and subsistence
iii Training and development and incidental
expenses
iv Postal and telecommunications services
v Office equipment and external IT services
vi Office premises expenses
vii Consultancy and other services
The following note presents an analysis of the administration expenditure of the Vote and outlines
the reasons for significant variations (+/- 25% and €100,000). Administration expenditure has been
i. Salaries, wages and allowances

Estimate provision: €Xm, outturn: €Ym
The increase /decrease of €Zm on expenditure on salaries, wages and allowances was due to…
ii. Travel and subsistence

The increase /decrease of €Zm on expenditure on travel and subsistence was due to…
iii Training and development and incidental expenses

Estimate provision: €Xm, outturn: e.g. €Ym
The increase/decrease of €Zm on expenditure on training and development and incidental expenses
was due to…
16 Vote X 2021
Programme A XXXX
2021 2010
provision
€000 €000 €000
A.1 Administration – pay

A.2 Administration – non pay
A.3 XXXX
A.4 XXXX
A.5 XXXX
The following outlines the reasons for significant variations in administration expenditure (+/- 5% and €100,000).
Overall, the expenditure in relation to Programme A was €XX million higher/lower than (originally) provided. €Xm
of this related to administration expenditure and has already been explained and the balance of the variance of
€Xm was mainly due to the following:
A.3 XXXX
The increase in expenditure of €Zm relative to the estimate provision was due to …
OR
A.4 XXXX
The shortfall in expenditure of €Zm relative to the estimate provision was due to …
Programme B XXXX
2021 2020
provision
€000 €000 €000
B.1 Administration – pay

B.2 Administration – non pay
B.3 XXXX
B.4 XXXX
Overall, the expenditure in relation to Programme B was €XX million higher/lower than (originally) provided. €Xm
(Present as per Programme A)
Programme C XXXX
2021 2020
provision
€000 €000 €000
C.1 Administration – pay

C.2 Administration – non pay
C.3 XXXX
Overall, the expenditure in relation to Programme C was €XX million higher/lower than (originally) provided. €Xm
(Present as per Programme A)
18 Vote X 2021
4 Receipts
4.1 Appropriations-in-aid
2021 2020
Estimated Realised Realised
€000 €000 €000
1. Recoupment of certain expenses
2 Receipts from pension-related deductions on
public service remuneration
3 Miscellaneous
Total
Overall, Appropriations-in-Aid were €Xm more / less than the estimate/ were as forecast.
Explanations for variances are set out below:
1 Recoupment of certain expenses

Estimate provision: €Xm, realised: €Ym
The increase /shortfall of €Zm was due to…
3 Miscellaneous
Estimate provision: €Xm, realised: €Ym
The increase /shortfall of €Zm was due to…
4.2 Extra receipts payable to the Exchequer

2021 2020
€000 €000
Balance at 1 January
Collected
Transferred to the Exchequer
Balance at 31 December
Note 5 Staffing and Remuneration
5.1 Employee Numbers

2021 2020
Number of staff at year end
(full time equivalents)
Department
Agencies
Total
5.2 Pay - Department

2021 2020
€000 €000
Pay
Other allowances
Overtime
Employer’s PRSI
Total pay a
a
5.2 Pay - Agencies

2021 2020
€000 €000
Pay
Other allowances
Overtime
Employer’s PRSI
Total pay a
a
5.3 Allowances and overtime payments

Number Recipients of Highest Highest
of €10,000 or individual Individual
more payment
recipients payment
2021 2020
€ €
Higher, special or additional duties
Other allowances
Overtime
Extra remuneration in more than

one category
20 Vote X 2021
5.4 Other remuneration arrangements
Y retired civil servants in receipt of a civil service pension were re-engaged on a fee basis at a total cost of €X.
The payments made were consistent with the principles of the Public Service (Single Scheme and other
Provisions) Act 2012.
This account includes expenditure of €X in respect of Z officers who were serving outside the Department for all
or part of 2020 and whose salaries were paid by the Department.
This account does not include expenditure in respect of Z officers who were serving outside the Department for all
or part of 2021 in other Government Departments/Offices and whose salaries were not recouped by the
Department.
5.5 Payroll overpayments
Number of 2021 2020

recipients
€ €
Overpayments
Recovery Plans in place
X number of overpayment recovery plans in respect of X number of individuals to the value of €X were
transferred to Department X in the year.
5.6 Severance/Redundancy
During 2021, one staff member whose employment was terminated, was paid a redundancy payment of
€X and severance payments totalling €X.
In addition to any severance payments made, the disclosure should include details, if any, of early
payment of pension, the addition of added years of notional service, or any other enhancement to the
accrued pension terms that has been granted.
E.g. X number of X grade retiring received severance payments and enhancement to their pension
arrangements as follows:
Grade Severance Added Years of Early payment of pension

payment notional with no actuarial reduction
service (years)
€
Grade 1
Grade 2
Total
Note 6 Miscellaneous
6.1 Committees, Commissions and Special Inquiries

2021 2020
€000 €000
Permanent commission
x
Fixed purpose Year of Cumulative

commission appointment expenditure to
the end of 2020
xa
Note a There will be further payments associated with the x etc…
6.2 Compensation and legal costs
6.2(A) Payments/Costs paid by the Department

2021 2020
Department Compensation Legal Costs Other Costs Total Total
own legal paid by the paid by the paid by the
costs paid Department Department to Department
other parties to other
involved parties
involved
€’000 €’000 €’000 €’000 €’000 €’000
Type of Claim A
Claims by Employees
Claims by Members of the
public
Type of Claim B
Claims by Employees
public
Total Expenditure
Type of Claim A
Type of Claim B
1) At 31st December 2021, the following claims are outstanding:

 Type of Claim A xx (2020 : xx)
 Type of Claim B xx (2020 : xx)
2) At 31st December 2021, the Department/Office has included in Other Creditors Due, €XX million (2020: €YY
million) being the total outstanding legal costs due to the State Claims Agency.
3) Notes – Any further information

22 Vote X 2021
6.2(B) Cumulative Costs Completed Cases – Costs paid by the Department
2021
Number of Department Compensation Legal costs Other costs Total
Cases own legal paid by the paid by the paid by the
costs paid Department Department Department
to other to other
parties parties
involved involved
€’000 €’000 €’000 €’000 €’000

Type of Claim A
Claims by Employees
public
Type of Claim B
Claims by Employees
public
Total Expenditure
Type of Claim A
Type of Claim B
6.2(C) Payments made by the Chief States Solicitors Office
During the period, the Chief States Solicitor’s Office (CSSO) paid the following legal costs/fees for Legal cases involving
the Department
No of cases €’000
Type of Claim A Ongoing
Resolved
Type of Claim B Ongoing

Resolved
Total Expenditure
6.3 Fraud and suspected fraud

Number of 2021 2020
cases
€000 €000
Fraud
Suspected Fraud
In the period between the signature of the appropriation account and the final appropriation account, the Department/Office
was made aware of X number of new cases of suspected fraud/irregularities. Of these, X cases have a combined value of
€X. X remain under investigation and no value has yet been identified.
6.4 National lottery funding

2021 2021 2020
€000 €000 €000
Subhead
X.1 Payments to promoters of certain National Lottery

funding
X.2 Eligible charities part funded by the National

Lottery.
6.5 EU Funding
The outturn shown in Subheads X.1 and X.2 includes payments in respect of activities which are co-financed
by the ERDF and Y1 which is co-financed by the EU. Estimates of expenditure and actual outturns were as
follows:
2021 2021 2020
€000 €000 €000
Subhead Description
X.1 Structural Funds Technical
Assistance and other costs
X.2 Technical Assistance costs of
Regional Assemblies (grant-in-aid)
Y.1 Peace Programme/Northern Ireland
INTERREG
6.6 Deferred Surrender
Deferred surrender comprises savings in 2021 of €xxm in capital expenditures in the following subheads, that
were carried over to 2022
€000
A.x Description of Subhead
B.x
C.x
D.x
24 Vote X 2021
Appendix A
State-owned lands and buildings controlled or managed by the Department which do not have valuations
1 Property A
2 Park B
3 Property C
4 Park D
Appendix B Accounts of bodies and funds under the aegis of the

Department/Office of X
The following table lists the bodies under the aegis of the department where the department has an obligation to
present financial statements. It indicates, [as at the account signing date], the period to which the last audited
financial statements relate and the period in which they were presented to the Oireachtas.
Body/departmental fund Last accounting Date of audit Date received Date presented
period report by Minister/ to the
Department Oireachtas
E.g. Higher Education 31 December 2021 28 Jun 2022 1 Jul 2022 3 Aug 2022
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Guidance Manual For The Preparation of Appropriation Accounts 2021

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Guidance Manual For The Preparation of Appropriation Accounts 2021

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Guidance Manual for the Preparation

of Appropriation Accounts 2021

Government Accounting Unit

Government Accounting Unit

11th February 2022

1) Statement on Internal Financial Control – Procurement compliance

The following text should be included in the Statement:

2) Note 2.2 Bank and cash

3) Note 2.3 Stocks

4) Note 2.4 Prepayments

5) Note 2.6 Accruals

1. Fixed Assets Threshold

1) Fixed Assets Threshold

2) Deviations from Standard Accounting Policies

See illustrative example attached, Page 23.

4) Net Allied Services

The following text should be included in the Statement:

X contracts with a value of €XX were …… (insert reason)

6) Capital commitments and PPP’s value

See illustrative example attached, Page 13.

See illustrative example attached, Page 18.

8) Variations from estimate/Supplementary

2) Introduction to the Appropriation Account

Examples of contingent liabilities include guarantees, litigation, insurance, contractual

Departments are required to provide details of any exceptions to compliance. In particular,

The following wording is suggested:

7) Accounting for Fixed Assets

a) Statement of General Principles

There is no requirement to restate historical assets using the new limit

i) Land and Buildings

- Furniture and fittings are valued at cost.

iv) Other Assets

v) Capital Assets under Development

Subsequent Expenditure on Assets

Category C – Other items. Where relevant, an explanation regarding depreciation of other

Purchases and Additions

Retirements and Disposals

Vote 6 Office of the Minister for Finance

Other Relevant Circulars

8) Operating Cost Statement (Note 1)

a) Statement of General Principles

The components of the OCS can be considered under specific categories a - f.

(i) Cash Expenditure

Programme Cost, Pay Costs and Non-Pay Costs

(ii) Statement of Financial Position

Changes in Capital Assets

(iii) Non-Cash Costs Incurred

(iv) Expenditure paid for in later years

Changes in Net Current Assets

Increase / (Decrease) in Closing Accruals

(Increase) / Decrease in Stock

(v) Expenditure incurred on behalf of other Departments

(vi) Net programme cost

a) Statement of General Principles

2.7 State funding account

Disbursements from the Vote

Expenditure (cash) borne elsewhere 1 79,881 70,312

Other Non-Cash Items

- Prior Year Adjustments

a) Statement of General Principles

All commitments (subject to financial thresholds above) should be disclosed

Global Figure for Commitments