ContentsTitle Page Chairman’s Foreword 4
Report of Chief Executive Officer 5
Background 6
The Structure of the Board 8
Measure 1– Selective Financial Assistance 10
Approvals 12
Payments 15
Measure 2 – Entrepreneurial and Capability Development 17
Accounts & Financial Statements 20 4 | LCEB Annual Report 2005 | Foreword Report | LCEB Annual Report 2005 | 5
Chairman’s Foreword Report of Chief Executive Officer
The year 2005 has been a difficult year in particular in West ft. state-of-the-art food processing units. These units are This has been a very good year for the Board, in particular At the beginning of 2005 the Board set a number of targets Limerick where over 200 jobs were lost in the Kantoher fully occupied by two businesses, Global Fine Foods and in its work with communities’, schools and cross border in the areas of Financial Supports to industry and training region. In spite of these job losses the Board managed to Alana Foods. co-operation. and management development. All targets were achieved increase the net jobs by 20 during the last year. This brings with the Board investing €364,500 in twenty projects. These the total number of jobs created to 1,120. Finally, I wish to record my thanks to the other Board Limerick County Enterprise Board worked very closely with projects have the potential to create fifty-two jobs when members, to the Evaluation Committee and to the staff three local communities, in particular Kilmallock, Bruree and fully operational. In relation to training and development a Kantoher became a focal point for the Board’s activity in who helped to make 2005 another successful year. Kantoher. Kilmallock and Kantoher had suffered major job total of 484 people participated in 29 programmes organised 2005. A programme was put in place to identify companies losses in the recent past and Bruree was a community in by the Board. The Board invested a total of €210,429 in these considering relocating to the region. The Board played a decline. The Board, in conjunction with its partners, has programmes. major role in this programme which resulted in one enabled these communities to develop industrial company setting up a new business at Kantoher and two infrastructure and animate local entrepreneurs to set up I would like to thank the Chairman, the Staff, Board
companies relocating to the area to accommodate their Patrick O’Connor, Chairman businesses in their local areas Members and Evaluation Committee for their dedication and expansion programmes. . commitment during the year. The main success story was Kantoher where 140 jobs were Training and entrepreneurial lost due to the closure of Kantoher Chicken Processing Unit. To date three companies which were supported by the Board developments are essential to the have agreed to set up businesses in Kantoher. The Ned Toomey, Chief Executive Officer strengthening and expansion of companies are S.T.S., Tara Cladding and McMahon Eco Fuels. A total of at least 100 jobs will be created by the three the SME sector. companies. The Minister for Enterprise, Trade and Employment, Micheál Martin visited West Limerick a short Training and entrepreneurial developments are essential to time after the closure of Kantoher and his visit generated the strengthening and expansion of the SME sector. This great enthusiasm within the community. particular section of the Board’s activity is wide ranging and includes Management Development, Business Networks During 2005 the Board initiated a number of new and School’s Enterprise programme. A special one-day Patrick O’Connor innovations in our Entrepreneurial and Capability Ned Toomey seminar on business innovation was held for County Development programmes. A one day enterprise training Chairman Chief Executive Officer schools in September 2005. A total of 500 students seminar for students was arranged and was attended by 500 participated on the day. The importance of enterprise students. A cross border Food Infrastructures programme education cannot be underestimated as sowing the seed of which involved food companies North and South was led by entrepreneurship at an early age can lead to a greater Limerick County Enterprise Board. This programme which number of new businesses in the future. The Board, in was funded by Micro Trade concluded with a successful trade conjunction with its partners, completed the construction networking event which was addressed by the Minister for of the Food Units in Bruree. The centre consists of 5,000 sq. Agriculture, Mary Coughlan. 6 | LCEB Annual Report 2005 | Background Background | LCEB Annual Report 2005 | 7
should provide a new source of much-needed • Members of Limerick County Council . . 4 support for local enterprise initiatives. The County Enterprise Boards have been given clear enterprise • Social Partners and job creation objectives and are responsible for (IBEC, SIPTU, Farming Organisations) . . 3 business areas not already covered by the State Industrial Development Agencies. • Nominees of Agencies (Teagasc, FAS, CERT, County Manager)...... 4 The County Enterprise Boards are funded under the • Ministerial Nominees ...... 2 Micro Enterprise measure of the Local Enterprise Development Priority (Sub Programme) of the • Other Nominees National Development Plan for the Southern and (Ballyhoura Development Ltd., Eastern Region 2000-2006. West Limerick Resources Ltd.) ...... 2 This measure is designed to support the development and competitiveness of local enterprise and promote the move of such enterprise Background The Board held its inaugural meeting on the 5th up the value chain. The funding for this measure October 1993. It was incorporated in the Companies includes support from the ERDF funds. Office as a Company limited by guarantee on the 26th September 1994. Limerick County Enterprise Board is one of 35 Under the Micro Enterprise measure, two different areas of action are prescribed under which County The raison d’être of County Enterprise Boards was Boards established throughout the State under Enterprise Boards are permitted to issue funding. described by the then Minister for Enterprise and The two measures are as follows: the Operational Programme for Local Urban and Employment, Mr. Ruairi Quinn T.D., at the launch of County Enterprise Initiative in Autumn 1993 as MEASURE 1 Rural Development 1994/1999 and given follows : Selective Financial Intervention: financial assistance legislative status by the Government under the to projects. This measure is designed to support the Industrial Development Act 1995. The Board development and competitiveness of local MEASURE 2 Entrepreneurial and Capability Development: consists of 15 members appointed by the enterprise and promote the move of such training, promoting an enterprise culture and Minister for Enterprise and Employment and enterprise up the value chain. mentoring.
these members represent the different interests “The objective of the County Enterprise Boards will be strategic and the funding available to them in County Limerick as follows : 8 | LCEB Annual Report 2005 | Structure Structure | LCEB Annual Report 2005 | 9
The Board members are as follows :- Executive and administrative back-up to the Board and the Evaluation Committee is provided by a staff Paddy O’ Connor ...... Assistant County Manager of 4 persons. Mary Fitzgerald ...... C.E.R.T. Shay Riordan...... West Limerick Resources Limited Anne Mc Govern ...... FÁS Ned Toomey ...... Chief Executive Officer Michael A. Connelly ...... IBEC/CIF Michael Cantwell . . . . . Assistant Chief Executive Officer Michael Collins...... Limerick County Council Christina Griffin ...... Business Advisor Carmel Fox ...... Ballyhoura Development Róisín Ross ...... Administrative Assistant Mary Kelly ...... Ministerial Nominee Fachtna O’Driscoll ...... Teagasc Phyllis O’Halloran ...... Ministerial Nominee Noreen Ryan...... Limerick County Council Brigid Teefy...... Limerick County Council Frank Prendergast ...... S.I.P.T.U. Evaluation Committee Structure Mary Harty ...... Limerick County Council Liam Woulfe ...... I.C.O.S. The Board has a total membership of 15 and
constitutes a local partnership of elected The Board is supported by an Evaluation Committee representatives, the social partners, community of 5 members, which makes recommendations to the Board in relation to applications for grant representatives, the employers sector and assistance.
representatives of State Agencies. The members of the Evaluation Committee are :-
John Doherty ...... Allied Irish Bank, Newcastlewest Finbarr Brougham ...... Shannon Development Sean Murphy...... Business Consultant Oliver Killeen...... Limerick Co. Council Mary Rogan ...... Bank of Ireland, Limerick L-R: Sean Murphy, John Doherty, Oliver Killeen, Finbarr Brougham. Missing from photo: Mary Rogan. 10 | LCEB Annual Report 2005 | Measure 1 Measure 1 | LCEB Annual Report 2005 | 11
Applications Received 1/1/05- 31/12/05 Jobs Created The mandate given to County Enterprise Boards Capital/Investment ...... 12 includes the creation of jobs, either full-time, Employment ...... 6 part-time or seasonal and the maintenance of Feasibility ...... 1 employment in existing small enterprises. Refundable Grant Aid ...... 5 The additional jobs created by the Board since Total ...... 24 October 1993 amounts to 1,037 full-time and 168 part-time jobs (1,120 full-time equivalents). Of these, 20 full-time were created during 2005. Details Applications Approved of all approvals and payments are set out later in the report. Capital/Investment ...... 9 Employment ...... 5 Feasibility ...... 1 MeasureSelective Financial Assistance 1 Ordinary Shares ...... Nil Refundable Grant Aid ...... 5
Total ...... 20 The following are the statistics in relation to
applications received and processed by the Board Applications Paid
during the period 1st January, 2005 to the 31st Capital/Investment ...... 7 December, 2005. While most of the projects Employment ...... 6 Feasibility ...... 1 approved subsequently went ahead, in some Refundable Aid ...... 5
cases the promoter decided not to proceed. Total ...... 19 12 | LCEB Annual Report 2005 | Approvals Approvals | LCEB Annual Report 2005 | 13
CAPITAL Ref. Name Address Description Amount Approval Date 20001930 Alana Food Bruree Food Centre, Manufacturer of various €75,000 24-01-2005 Ingredients Bruree, Co. Limerick. Cheeses & Seasonings 20001929 Design Pro Cnoc an Tí, The Hill, Manufacturer of Mechanical €8,000 24-01-2005 Abbeyfeale, Co. Limerick Automated Machines 20002053 Gallahue Vehicles Lackendara, Angelsboro, Vehicle Conversions €7,000 25-07-2005 Conversions Kilmallock, Co. Limerick 20001931 Global Fine Foods Bruree Food Units, Manufacturer of Meat €67,500 24-01-2005 Bruree, Co. Limerick Products mainly Hams 20000428 Innisfree Foods BIC Unit 6, Raheen Food Centre, Manufacturer of Frozen Breaded €31,000 24-01-2005 (Irl) Ltd. Raheen Ind. Est., Co. Limerick Chicken Products 20002031 J.O.D. Food Products Newpark, Effin, Manufacturer of €22,500 30-05-2005 Kilmallock, Co. Limerick. Cheese Products 20001962 Keane Racing Kilcornan, Pallaskenry, Motorsport Engineering €19,750 14-03-2005 Co. Limerick. & Manufacturers 20001964 Sunnyside Homes 20 South Quay, Construction of €75,000 14-04-2005 Approvals Newcastle West, Co. Limerick Timber Framed Houses From 1/1/05 To 31/12/05 20001208 Trackcare Engineering Devon Rd., Templeglantine, Engineering Business €15,000 30-05-2005 Ltd. Co. Limerick.
TOTAL €320,750
EMPLOYMENT
Ref. Name Address Description Amount Approval Date 20002051 CompuCount Mungret College, Software Research & €8,000 25-07-2005 Mungret, Co. Limerick. Development 20001743 Silverstone Hybrasil, Garden Hill, Manufacture of Custom-made €6,000 25-07-2005 Castleconnell, Co. Limerick Jewellery 20001497 Ronan Buckley Greenhills, Crecora, Wine Dispensing Units €6,000 25-07-2005 Co. Limerick 20002030 Electronic Media 184 Woodhaven, e-learning Multimedia €7,000 30-05-2005 Solutions Castletroy, Co. Limerick Software 20001110 Irish River House, Killarney Rd., Overseas Tourism €6,000 21-03-2005 Tourism.com.Ltd. Newcastle West, Co. Limerick
TOTAL €33,000 14 | LCEB Annual Report 2005 | Approvals Payments | LCEB Annual Report 2005 | 15
REFUNDABLE ACCOUNT AID Ref. Name Address Description Amount Approval Date 20000867 Abbey Moulding Unit 2, Industrial Estate, Injection & Blow €17,405 14-03-2005 Contractors Ltd. Abbeyfeale, Co. Limerick. Moulding Facility 20001926 Bruree Foods Ltd. Bruree, Food Units €30,000 21-03-2005 Co. Limerick 20000491 Data Storage & Unit 2C, Annacotty Data Storage €40,000 14-03-2005 Management Industrial Estate, Limerick & Management 20000445 J&M Fruit & Veg Killarney Rd., Wholesale & Distributor €10,000 30-05-2005 Abbeyfeale, Co. Limerick of Fruit & Veg 20000813 Rivervalley Foods Garravane, Rearcross, Food Processing Company €8,300 14-03-2005 Ltd. Co. Limerick
TOTAL €105,705
FEASIBILITY Ref. Name Address Description Amount Approval Date 20001961 Morgan O’Regan Dromineer, Golf-Links Road, Feasibility for €3,625 14-03-2005 Payments Castletroy, Co. Limerick. Handy Bags From 1/1/05 to 31/12/05
TOTAL €3,625
Staff of Limerick County Enterprise Board 16 | LCEB Annual Report 2005 | Payments Measure 2 | LCEB Annual Report 2005 | 17 CAPITAL/INVESTMENT Name Project Amount paid in 2005 Total Paid Advanced Logistics Ltd. Recycling Business €2,303 €2,303 Tom Collins Sign Painter €1,508 €1,508 Design Pro Manufacture of Mechanical Automated Machines €8,000 €8,000 Alana Food Ingredients Manufacture of Cheeses & Seasonings €42,000 €42,000 Global Fine Foods Manufacture of Meat Products €55,260 €55,260 Sunnyside Homes Ltd. Constructions of Timber Framed Houses €75,000 €75,000 J.O.D. Food Products Manufacture of Cheese Products €22,500 €22,500 TOTAL €206,571 €206,571 EMPLOYMENT Name Project Amount paid in 2005 Total Paid Daydreams Creche Creche & Montessori €12,000 €12,000 Little Treasures Creche & Montessori €6,000 €6,000 Irish Tourism.com Ltd. Overseas Tourism €6,000 €6,000 Ronan Buckley Wine Dispensing Units €3,000 €3,000 Silverstone Manufacture of Custom-made Jewellery €3,000 €3,000 RTR Electronics Re-work & Repair Services for Computers & Electronics €12,000 €12,000 Measure 2 Entrepreneurial And Gymboree Play & Music Interactive Parent/Child Play & Music Program €6,000 €6,000 Electronic Media Solutions E-learning Multi-Media Software €3,500 €3,500 Capability Development TOTAL €51,500 €51,500 2005 was yet another interesting and active year FEASIBILITY Name Project Amount paid in 2005 Total Paid for Limerick County Enterprise Board’s training Morgan O’Regan Feasibility for handy bags €519 €519 and management development programs. In total, REFUNDABLE ACCOUNT the Board spent €209,562 on a range of activities Name Project Amount paid in 2005 Total Paid which were attended by 1,057 participants. The J&M Fruit & Veg Wholesale Distributor of Fruit and Vegetables €5,000 €5,000 range of programs offered spanned the more Data Storage & Data Storage and Management Services €38,935 €38,935 Management Ltd. traditional type Start Your Own Business Programs Multiflow Manufacturing Ltd. Manufacture of PTFE Line Pipe €28,000 €28,000 to some new innovative cross border programs Bruree Foods Ltd. Food Units €30,000 €30,000 Abbey Moulding Contractors Ltd. Injection & Blow Moulding Facility €17,405 €17,405 such as the Micro Trade Food Business Logistics TOTAL €119,340 €119,340 Program. The following is a summary of a number
of activities that run throughout the year. 18 | LCEB Annual Report 2005 | Measure2 Measure2 | LCEB Annual Report 2005 | 19
Computerised Accounting Programs Harmer of NLC Communications kept the audience enthralled Minister Micheál Martin’s visit to Limerick long intensive programme - designed specifically for women in The Board has always placed a high emphasis on owner managers when informing the students that selling, whether you were selling The first six months of 2005 saw a substantial number of job business in the County - provided a unique opportunity for those being in control of their businesses. To be in control, yourself or a product or service, is not an art, it is a skill that losses in the West Limerick area. In response to this a working considering starting their own business and for those women owner/managers must understand how the business is performing anyone can learn. Over 500 students attended the event and the group of agencies was established that consisted of Limerick who need some additinal encouragement. and this is best done through the introduction of computerised feedback from students and teachers alike was extremely positive. accounting packages together with on-site training for these Minister Micheál Martin’s visit to Limerick Women in Business businesses. In 2005, thirty seven businesses were assisted in this Micro Trade manner and this action is on-going. The Limerick County Enterprise Board acted as lead agency together with five other Enterprise Boards from the South and six Start Your Own Business Program local enterprise agencies from the North. The funding was A total of six Start Your Own Business Programs were run received from Micro Trade to run a Food Business Logistical throughout the county. These programs are designed to guide Solutions Program. This program was designed to encourage people in the right direction if they are thinking about starting a greater trade between food businesses in the north and small food new business. A total of 70 people participated in these programs. businesses in the south. The event culminated in a two day linkage seminar at Rossnowlagh in County Donegal which brought 26 food County Enterprise Board, FÁS, Limerick County Council, Limerick Women in Business companies from all over Ireland to look at new innovative models County Development Board, Shannon Development, West There was an impressive line up of speakers on the day. The The Women in Business Initiative, which saw ten meetings being of logistics and distribution. Participating businesses made a Limerick Resources and the Department of Social and Family programme opened with keynote speaker Mary Anne O’Brien, held at The Woodlands in 2005, continues to appeal to both number of new contacts both North and South and a substantial Affairs. Since the groups establishment, two businesses, Tara M.D. of Lily O’Brien’s. Mary Ann started her business in Kildare aspiring and actual women business entrepreneurs. Topics such as amount of additional business was created as a direct result of Cladding Ltd. and STS PCB, have agreed to move to the site at some 13 years ago: making hand-made chocolates. She has built Time Management, Professional Appearance, Marketing and the event. Kantoher as part of an expansion plan for their businesses. On her business into a national and international export company Market Research to name but a few were addressed during these his recent visit to West Limerick, the Minister for Trade Enterprise and was short-listed for the Irish Entrepreneur of the Year in seminars. The format was also changed in 2005 to facilitate Student Enterprise Awards and Development, Micheál Martin witnessed at first hand these 2004. Mary Ann told the audience of her experiences to-date and additional networking within the group and this has worked positive developments and congratulated Ned Toomey, the Board explained how she deals with the ups and downs of being a successfully. and the other agencies involved for their efforts in facilitating hands-on managing director. Other presenters on the day these initiatives. included Padraig O’Maille, O’Maille Consult; Padraig Considine, Student Enterprise Awards PAS; and Catherine McGeechy, Vision Consultants. The day As part of the Board’s role to encourage entrepreneurship among Minister Micheál Martin’s visit to Limerick proved to be a huge success, with over 60 women from the city second level students, the Board liaises directly with schools and county attending. throughout the county to run the Student Enterprise Awards. County finalists Castletroy College, Castletroy, Coláiste Chiarán, In Conclusion Croom, Gaelcholáiste Uí Chonba, Newcastle West, St. Josephs The Board ran a number of other programs ranging from Strategic Secondary School, Doon, Salesian Secondary College, Pallaskenry, Management Development, Sales Training, Mentoring, Debt Scoil Mhuire agus Ide, Newcastle West were selected in February. Management, Time Management, Stress Management and Pricing They then went on to represent Limerick County at the National IFEX & Costing for small business. All programs are designed to be Final in Tullamore in May 2005. To encourage a higher level of The Irish Food and Drink Exhibition was held at the RDS in practical and relevant to the daily needs of owner / managers participation the Board ran a Student Enterprise Day in September. September 2005 and the Board, with the support of Bord Bia, operating in the current commercial climate. The Board is At this event the students listened intently to Sean Gallagher, the rented a stand at the event which was attended by three County Start Your Own Business Day – Women in Business constantly looking at new ways to make this sector of the MD of Smart Homes Ltd. Sean stressed the need for careful Limerick food businesses – Glen Aine Fine Foods, Innisfree Food Limerick County Enterprise Board, in conjunction with the City Economic Community more productive and competitive. Going planning and encouraged the students to think of self- Ltd. and Wild Orchard. The event ran over three days and the Enterprise Board, hosted a Start Your Own Business Day on Friday forward, the Board also assures this sector of on-going support to employment as an attractive option for their future careers. Terry feedback from each of the participants was extremely favourable. October 7th in the Kilmurray Lodge Hotel, Castletroy. This day achieve these objectives. 20 | LCEB Annual Report 2005 | Accounts Accounts | LCEB Annual Report 2005 | 21
Board Membership and General Information
Board Membership And General Information Solicitors Leahy & Partners, Park Manor, Directors Upper Mallow Street, Limerick. The names of persons who were directors at any time during the year ended 31 December, 2005 Company Number Accounts & were as follows: 222536 Paddy O’Connor (Chairman) Mary Fitzgerald Carmel Fox Directors' Report Financial Mary Kelly Year Ended 31 December 2005 Fachtna O’Driscoll Phyllis O’Halloran The directors submit herewith their report together Frank Prendergast with the financial statements for the year ended 31 Liam Woulfe December 2005. Statements Michael A. Connelly For the year ended 31 December 2005 Shay Riordan 1. Principal Activities Anne McGovern The principal activity of Limerick County Enterprise Table Of Contents...... Page Noreen Ryan Board is to support job creation, help create Michael Collins enterprise awareness and to cultivate an enterprise Board Membership and General information ...... 21 Brigid Teefy culture in Limerick County. Mary Harty Report of the Directors and Statement of Directors’ 2. Highlights of the Year Responsibilities ...... 21-22 Secretary: The Board provided grant assistance, which helped Ned Toomey towards the creation of 20 additional jobs in 2005. Statement on the System of Internal Financial Control. . . . . 22-23 In addition, other measures in the areas of Chief Executive Officer: Entrepreneurial and Capability Development were Report of the Comptroller and Auditor General ...... 24 Ned Toomey undertaken which helped to improve the climate for enterprise in County Limerick. Statement of Accounting Policies ...... 25 Registered Office: Lower Mallow Street, Limerick. Income and Expenditure Account ...... 26 3. Results Details of the accounting results for the year are set Auditors Balance Sheet ...... 26 out in the financial statements. Comptroller and Auditor General,Treasury Building, Notes to the Financial Statements...... 27-29 Dublin Castle, Dublin 2. 4. Health and Safety The well-being of the company’s employees is Bankers safeguarded by adherence to the requirements of the Bank of Ireland, 94 O’Connell Street,Limerick. Safety, Health and Welfare at Work Act 1989. 22 | LCEB Annual Report 2005 | Accounts Accounts | LCEB Annual Report 2005 | 23
5. Auditors ensure the appropriate accounting systems are maintained. • Assessing the likelihood of identified risks occurring; work of the internal auditor, the Audit Committee which The Comptroller and Auditor General is responsible for the The books and accounting records are located at the oversees the work of the internal auditor, the executive audit of the Board in accordance with Section 5 of the company’s registered office. • Assessing the body’s ability to manage and mitigate the managers within Limerick County Enterprise Board who Comptroller and Auditor General (Amendment) Act 1993. risks that do occur; have responsibility for development and maintenance of financial control framework, and comments made by the 6. Statement of Directors’ Responsibilities Chairperson Date: 29/05/2006 • Assessing the costs of operating particular controls Comptroller and Auditor General in his management letter Company law requires the directors to prepare financial relative to the benefit obtained. or other reports. statements for each financial year which give a true and fair view of the state of affairs of the company and of the Director Date: 29/05/2006 The system of internal financial control is based on a Annual Review of Controls: income and expenditure for that period. In preparing those framework of regular management information, financial statements, the directors are required to: administrative procedures including segregation of duties, I confirm that in the year ended 31st December 2005 a and a system of delegation and accountability. In particular review of the effectiveness of internal controls was carried • Select suitable accounting policies and apply Statement on the System of it includes: out by the Board in December 2005. them consistently; • A comprehensive budgeting system with an annual Internal Financial Control budget which is reviewed and agreed by the Board • Make judgements and estimates that are reasonable Signed on behalf of Limerick County Enterprise Board of Directors; and prudent; On behalf of the Board of Directors of Limerick County Enterprise Board I acknowledge our responsibility for • Regular reviews by the Board of Directors of periodic • Prepare the statements on a going concern basis unless ensuring that an effective system of internal control is and annual financial reports which indicate financial Chairperson Date: 29/05/2006 that basis is inappropriate; maintained and operated. performance against forecasts;
• State whether applicable accounting standards have The system can only provide reasonable and not absolute • Setting targets to measure financial and other been followed, subject to any material departure assurance that assets are safeguarded, transactions performance; disclosed and explained in the financial statements. authorised and proper, and that material errors or irregularities are either prevented or would be detected in a • Clearly defined capital investment control guidelines; The directors are responsible for keeping proper books of timely period. account which disclose with reasonable accuracy at any time • Formal project management disciplines. the financial position of the company and to enable them Key Control Procedures: to ensure that the financial statements comply with the The Board has taken steps to ensure an appropriate control Limerick County Enterprise Board has an internal audit Companies Acts 1963 to 2003. They are also responsible for environment by: function, which operated in 2005 in accordance with the safeguarding the assets of the company and hence for • Clearly defining management responsibilities; Framework Code of Best Practice set out in the Code of taking reasonable steps for the detection of fraud and other • Establishing formal procedures for reporting Practice on the Governance of State Bodies. The work of irregularities. significant control failures and ensuring appropriate internal audit is informed by analysis of the risk to which corrective action. the body is exposed and annual internal audit plans are 7. Books of Account based on this analysis. The analysis of risk and the internal The directors are responsible for ensuring that proper books The Board established processes to identify and evaluate audit plans are endorsed by the Audit Committee and and accounting records, as outlined in Section 202 of the business risks by: approved by the Board of Directors. Companies Act 1990, are kept by the company. To achieve • Identifying the nature, extent and financial implications this, the directors have engaged the services of a firm of of risks facing the body including the extent and The Board’s monitoring and review of the effectiveness of qualified accountants to carry out an internal audit to categories which it regards as acceptable; the system of internal financial control is informed by the 24 | LCEB Annual Report 2005 | Accounts Accounts | LCEB Annual Report 2005 | 25
I report any material instance where monies have not evaluated the overall adequacy of the presentation of Report of the Comptroller and been applied for the purposes intended or where the information in the financial statements. Statement of Accounting Policies transactions do not conform to the authorities Auditor General for presentation 1.Basis of Accounting governing them. Opinion The financial statements have been prepared under the to the Houses of the Oireachtas accruals method of accounting, except as indicated below, I review whether the Statement on the System of Internal In my opinion, the financial statements: and in accordance with generally accepted accounting I have audited the financial statements of Limerick County Financial Control reflects the Company’s compliance with principles under the historical cost convention. Financial Enterprise Board for the year ended 31 December 2005 the Code of Practice for the Governance of State Bodies • give a true and fair view, in accordance with Generally Reporting Standards recommended by the recognised under the Comptroller and Auditor General (Amendment) and report any material instance where it does not do so, Accepted Accounting Practice in Ireland, of the state of accountancy bodies are adopted as they become operative. Act, 1993. The financial statements, which have been or if the statement is misleading or inconsistent with the Company’s affairs at 31 December 2005 and of its prepared under the accounting policies set out therein, other information of which I am aware from my audit of income and expenditure for the year then ended; and 2.Fixed Assets and Depreciation comprise the Statement of Accounting Policies, the the financial statements. I am not required to consider Fixed assets are stated at their historical cost or valuation Income and Expenditure Account, the Balance Sheet and whether the Statement on the System of Internal Financial • have been properly prepared in accordance with the less accumulated depreciation. the related notes. Control covers all financial risks and controls, or to form Companies Acts 1963 to 2005. an opinion on the effectiveness of the risk and control Depreciation is charged to the income and expenditure Respective Responsibilities of the Directors and the procedures. I have obtained all the information and explanations that I account, on a straight-line basis, at the rates set out below, Comptroller and Auditor General consider necessary for the purpose of my audit. In my so as to write off the assets, adjusted for estimated residual The Directors’ responsibilities for preparing the financial Basis of Audit Opinion opinion proper books of account have been kept by the value, over their expected useful lives. statements in accordance with applicable law and In the exercise of my function as Comptroller and Auditor Company. The financial statements are in agreement with Furniture - 12.5% Generally Accepted Accounting Practice in Ireland are set General, I conducted my audit of the financial statements the books of account. Office Equipment - 20% out in the Directors’ Report. The Directors are also in accordance with International Standards on Auditing responsible for ensuring the regularity of transactions. (UK and Ireland) issued by the Auditing Practices Board In my opinion, the information given in the Directors’ 3. Oireachtas Grants and by reference to the special considerations which Report is consistent with the financial statements. Oireachtas Grants are accounted for on an accruals basis. My responsibility is to audit the financial statements in attach to State bodies in relation to their management and 4. Grants Payable accordance with relevant legal and regulatory operation. An audit includes examination, on a test basis, Grants are accrued in the financial statements when the requirements and International Standards on Auditing (UK of evidence relevant to the amounts and disclosures and grantees have complied with stipulated conditions. and Ireland). regularity of the financial transactions included in the financial statements. It also includes an assessment of the Gerard Smyth 5. Capital Account I report my opinion as to whether the financial statements significant estimates and judgments made in the For and on behalf of the The Capital Account represents the unamortised value of give a true and fair view, in accordance with Generally preparation of the financial statements, and of whether Comptroller and Auditor General June 2006 income used for capital purposes. Accepted Accounting Practice in Ireland and are properly the accounting policies are appropriate to the Company’s prepared in accordance with the Companies Acts 1963 to circumstances, consistently applied and adequately 6. Deferred Income 2005. I also report whether in my opinion proper books disclosed. Refundable Aid may take the form of repayable grants or of account have been kept by the Company; and whether investments in Preference or Ordinary Shares. Amounts the information given in the Directors’ Report is consistent I planned and performed my audit so as to obtain all the received, inclusive of any interest or gains, may be used to with the financial statements. In addition, I state whether I information and explanations that I considered necessary make further payments under Measure 1. As refunds have obtained all the information and explanations in order to provide me with sufficient evidence to give depend on the performance of the enterprises, they are necessary for the purposes of my audit, and whether the reasonable assurance that the financial statements are taken into account only when received. Recognition of such financial statements are in agreement with the books free from material misstatement, whether caused by fraud receipts as income is deferred pending their reallocation as of account. or other irregularity or error. In forming my opinion I also Measure 1 expenditure. 26 | LCEB Annual Report 2005 | Accounts Accounts | LCEB Annual Report 2005 | 27
Financial Information: Accounts, Statements And Balance Sheet for the year ended 31 December 2005 outstanding commitments of the Board as at 31 December, Notes to the Financial Statements 2005 arose as follows: Income and Expenditure Account Notes 2005 € 2004 € The Board had no gains or losses in the financial year or the preceding financial Income for the year ended 31 December 2005 year other than those dealt with in the Expenditure of €377,930 comprises capital grants - Oireachtas Grants 787,546 752,646 Income and Expenditure Account. The € € Other Income 16,559 8,379 1. Funding and Expenditure of the Board 152,562, employment grants - 58,007, feasibility grants - Transfer from Deferred Income 3c 119,340 136,000 results for the year relate to continuing €519 and refundable grant aid - €166,842. Transfer to/ (from) Capital Account 6 2,319 (8,131) operations. The statement of accounting Section 10(2) of the Industrial Development Act, 1995 policies together with notes 1 to 11 form Total Income 925,764 905,156 provides for payment of grants by the Minister for Outstanding commitments at 31 December were entered as part of these financial statements. Enterprise, Trade and Employment to the Board. follows: Expenditure € Selective Financial Assistance 2 377,930 399,397 Expenditure by the Board is applied on Measures under the Entrepreneurial and Capability Development 210,429 197,875 ______Local Enterprise Development Sub-Programme of the Prior to 31 December, 2004 ...... 6,375 Administration 4 337,405 307,884 Chairperson Southern and Eastern Regional Operational Programme 2000 After 1 January, 2005 ...... 122,604 Total Expenditure 925,764 905,156 - 2006...... 128,979 Surplus / (Deficit) for the Year 0 0 ______Director The measures are as follows: 3. Refundable Aid Measure 1: Selective Financial Assistance ______Measure 2: Entrepreneurial and Capability Development (a) Investments Chief Executive Officer The current amount invested by way of preference / ordinary € Date: June 12005 2. Selective Financial Assistance shares was 392,040 at 31 December 2005. As it is not possible to accurately assess the value of these shares, Balance Sheet Notes 2005 € 2004 € The Board makes an offer of grant assistance which, if which are dependent on the performance of the enterprises, The statement of accounting policies FIXED ASSETS accepted, remains valid as commitment of the Board for a the shares are not capitalised on the balance sheet. together with notes 1to 11form part of Tangible Assets 5 5,886 8,205 specific period or in the circumstances specified on Dividends, interest and repayments received, are taken to these financial statements. account on a cash basis. Such receipts may be used by the CURRENT ASSETS approval. Debtors and Prepayments 3,498 16,007 Enterprise Board to fund further grants. The following Bank and Cash 46,160 69,455 Grants Repayable Total investments were held by the Board at 31 December, 2005 Oireachtas Grants 3,636 0 Grant Aid €€€ € TOTAL 53,294 85,462 Company Type of share Amount Commitments at 1 January, 2005 72,625 47,853 120,478 Hospital Food Units Co. Ltd Preference shares 253,948 CURRENT LIABILITIES Approvals in year 288,958 174,122 463,080 Hospital Food Units Co. Ltd Ordinary shares 38,092 Creditors and Accruals (7,740) (6,000) 361,583 221,975 583,558 Bruree Food Units Preference Shares 100,000 Deferred Income 3c (45,554) (69,133) De-commitments 2005 approvals 22,456 7,900 30,356 Total 392,040 Oireachtas Grants 0 (10,329) ______(53,294) (85,462) De-commitments 2004 approvals 34,239 12,054 46,293 Chairperson 304,888 202,021 506,909 NET CURRENT ASSETS / (LIABILITIES) 0 0 The Board reviews investments, and when it considers that Expenditure 211,088 166,842 377,930 repayment of the investment is unlikely, the Board will NET ASSETS 5,886 8,205 ______Commitments at 31 December 2005 93,800 35,179 128,979 Director decide to write off that amount. No investments were FINANCED BY written off in 2005. The preference shares in DSM were Capital Account 6 5,886 8,205 redeemed by DSM Company Ltd. over a number of years Income and Expenditure Account 0 0 ______Chief Executive Officer Funding provided by the Department for payment of and the process was completed in 2005. 5,886 8,205 € Date: June 12005 Selective Financial Assistance in 2005 was 263,000. The Accounts | LCEB Annual Report 2005 | 29 28 | LCEB Annual Report 2005 | Accounts
(b) Repayable Grant Aid 4. Administrative Costs 6. Capital Account 10. Board Members Disclosure of Transactions As repayment is dependent on the performance of the € € 2005 2004 2005 2004 enterprises, the amount outstanding is not included as an The Board adopted procedures in accordance with guidelines Salaries 239,323 229,432 €€ asset in the Balance Sheet. Repayments received, are taken issued by the Department of Finance in relation to the Travel 19,347 17,892 to account on a cash basis. Such receipts may be used by Balance at 1 January 8,205 16,336 disclosure of interests by Board Members and these Office Expenses 5,240 6,569 the Enterprise Board to fund further grants. Office Accommodation 24,525 22,944 Transfer (to)/from Income and procedures have been adhered to in the year. There were no Expenditure Account Audit Fees 5,900 4,600 transactions in the year in relation to the Board’s activities in 2005 2004 Advertising 1,254 0 Funds allocated to acquire fixed assets 809 0 which the Board Members had any beneficial interest. €€ Insurance 4,842 5,433 Amount amortised in line with Balance 1 January, 2005 308,527 283,627 Staff Training 6,902 1,264 Asset Depreciation (3,128) (8,131) Issued in 2005 166,842 115,947 Depreciation 3,128 8,131 11. Approval of Financial Statements Repaid in 2005 (89,341) (91,046) Internal Audit 2,880 2,880 (2,319) (8,131) Written off in 2004 (7,302) 0 Board Expenses 7,743 1,817 Adjustment of Balance from previous year* 8,287 0 The financial statements were approved by the Board on 27th Office Fit-Out Costs 7,841 0 Balance at 31 December 5,886 8,205 Balance 31 December, 2005 387,013 308,528 March, 2006. Miscellaneous 8,480 6,922 *Repayment of investments was included in previous years in error Total 337,405 307,884 7. Taxation Due within 12 months 154,909 97,338 Limerick County Council provides payroll and management Due after 12 months 232,104 211,189 information services to the Board on an agency basis. Limerick No provision has been made for taxation in the financial 387,013 308,527 County Council charges no fees to the Board for these services. statements.
The Board reviews balances due and when it considers that repayment is unlikely the Board will decide to write off that 5. Fixed Assets 8. Employees and Remuneration amount. Furniture Equipment Total €€€ The average number of staff during the period was 4. Three Cost / Valuation members of staff are employed on a contract basis and one (c) Reallocation of Refundable Aid Receipts Balance at 1January, 2005 14,650 37,826 52,476 is on secondment from Limerick County Council. Additions during the year 0 809 809 2005 2004 Disposals in 2005 0 0 0 €€Balance at 31 December, 2005 14,650 38,635 53,285 Balance of Refundable Aid receipts on hand 9. Superannuation at 1 January 69,133 114,087 Accumulated Depreciation Measure 1payments advanced from Balance at 1January, 2005 13,240 31,031 44,271 Superannuation schemes are not operated by the Board. The Deferred Income (119,340) (136,000) Charge for year 491 2,637 3,128 Refundable Aid receipts: Repayable Grant Aid 89,341 85,887 salaries of seconded staff are recouped to Limerick County Disposals in 2005 0 0 0 Interest/Dividends 2,010 1,174 Council. This includes an element of superannuation. Balance at 31 December, 2005 13,731 33,668 47,399 Investments 4,410 3,985 Pension contributions of 12% of salary payments made Balance of Refundable Aid Receipts directly by the Board are paid to certain staff provided that at 31 December, 2005 45,554 69,133 Net book value 31 December, 2005 919 4,967 5,886 the contribution is paid into a personal private pension Net book value 31 December, 2004 1,410 6,795 8,205 scheme approved by Revenue.
The Board also has the use of assets provided to it by Limerick County Council.