Ordnance Survey Annual Report 2004 Contents

2004 Highlights 2

Chairman’s Statement 4

Chief Executive’s Review 5

Operational Report 8

OSi Organisation 17

Corporate Governance 18

The Board of OSi 19

Financial Statements 23

Board Members and Other Information 26

Statement of Board Members’ Responsibilities 27

Statement of Internal Financial Control 28

Report of Comptroller and Auditor General 29

Accounting Policies 30 OSI Annual Report & Financial Statements 2004 Income and Expenditure Account 32

Balance Sheet 33

Cashflow Statement 34

Notes to the Financial Statements 35

1 OSI Annual Report & Financial Statements 2004 3 Significant progress was achieved in achieved was Significant progress Business Continuity Planning, with individual BCPs completed for each in “data recovery” department and progress the by measures and “high availability” as continuing IT Department as well security developments. reviewed were infrastructures IT network and updated to facilitate expansion and enhance performance including the for GPS services. of broadband provision was work Significant development undertaken in support of the Ecommerce of the including rationalisation system, to take advantage technical environment prior to roll-out in hardware, of advances to Agents in 2005. • • • elopment and implementation of a elopment and implementation oduction of new editions of and oduction of new ev r Street Maps and the complete Maps and the Street Kilkenny a 5th edition of the Road Atlas, Ireland East, West Holiday Guide, Street and EuroRegionalMap and South maps, data. EuroGlobalMap Completion of Phase 2 of the Historical prior to launch of the Mapping project in 2005. historical digital archive new of genealogical and Georeferencing data on 3,500 sheets, environmental comprising all counties on 6-inch scale and for eight and Kerry) (except counties on the 25-inch series. new in-house statistically-based quality new encompassing assessment programme thematic accuracy, positional accuracy, completeness and logical consistency, of OSi data. accuracy temporal in map progress Further excellent and data quality enhancement, production including updating and databasing of 91 of the Tiles and maintenance Discovery on all Discovery cycle review year five series mapping. • • • •P •D 20.657 million achieved, 20.657 million achieved, € vision of 1,810 urban maps at a scale vision of 1,810 vision of 175 rural maps at a scale of vision of 175 rural oduction of 741 orthophoto tiles, oduction of 741 vision cycles for both series. vision cycles ecord sales of sales of ecord e e r from commercial activities such as activities commercial from licensing, data and map sales. with major clients, of contracts Renewal Gais and CSO. including ESB, Bord with contracts Completion of new Co. Councils. national Place of the Further development and significant growth Map Agents network this network. through in income generated of 1:1,000 and 1,490 suburban maps at a scale of 1:2,500 as part of one year re completing the 1:40,000 series commenced in 2000. 1:2,500 completed, 60 more than target, than target, 1:2,500 completed, 60 more cycle. revision year as part of the three

2004 Highlights •R • • • •R •R •P

Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 2 Chairman’s Statement Chief Executive’s Review

Twenty years ago we believed it was possible I would commend the management and staff of I am pleased to report that OSi enjoyed Most of all, it will come from using our to define the scope and the limitations of the OSi for their success in successfully managing the another strong year, achieving further market imagination to increase our penetration of OSi's future marketplace with reasonable transition to a semi-State body since new penetration, completing our major large scale the market through product flexibility and confidence. Since then there have been vast legislation brought this to pass in March 2002. remapping project and building the base for increasing the quality of data. This process, OSi’s enthusiasm for changes in both technology and markets. With a strong commercial mandate, the team our future development as the Irish specialist which is already well advanced, will bring Today OSi's area of activity may still be led by CEO Richard Kirwan has shown that it in the collection, management, manipulation significant improvements in both the quality OSi’s activities will positive change has defined as the geography of the Republic of has an enthusiasm for creating change and for and dissemination of spatial data. and quantity of information on our databases, Ireland. Its activities, however, will only be harnessing new technologies to meet the ever allowing increased segmentation of services only be limited by OSi now enjoys an enviable position of market put OSi firmly centre limited by our imaginations and those of more challenging demands and expectations so that each customer can purchase leadership which has been earned over many existing and potential customers. of customers. information tailored precisely to their years. Since 1824, when work began on the stage in the rapidly our imaginations and particular needs. In 2004 the fruits of a number of years’ efforts It is government policy to decentralise OSi to first ever large scale mapping of an entire progressing spatial those of existing and began to be seen with the completion of Dungarvan in Co. Waterford and this move can country, OSi has been a leader in terms of This will be a key area of development over digital remapping of the entire country. This be expected to create a range of challenges for developing new technologies, systems and the next three to five years. The OSi of the potential customers. has been a monumental task, but it now the organisation. At the same time OSi must approaches. Whether to increase efficiency, future will have four core functions in respect data revolution. provides us with a robust yet highly flexible continue to innovate and develop its delivery accelerate production or enhance quality, of spatial data in the areas of data collection, basis for the development of a wide range of service to customers, major new developments in innovation has been central to the data combination, data management and future information services. the OSi database are currently underway which achievement of the organisation's objectives. data dissemination. will benefit the users of our products and services. This core attribute, an enthusiasm for positive The entire project has been achieved much During 2004 these objectives were given This is a period of dramatic change for the staff of change, has put OSi firmly centre stage in the sooner than was anticipated in the mid 1990s tangible expression in a variety of ways, OSi, yet also one of exciting opportunity. On the rapidly progressing spatial data revolution. despite the serious interruption to activities basis of what was achieved in 2003 and 2004 in including the further extension of our when all field staff had to be withdrawn from particular, I would express the Board's confidence Market focus network of Agents and the introduction of agricultural areas in 2001 because of the in the ability of the organisation as a whole to a more modern flexible and sophisticated OSi retains a core public service mandate, outbreak of Foot & Mouth Disease in grasp these opportunities with enthusiasm. pricing structure. which it values highly and will continue to . honour. But as a state body we also have a OSI Finally, I would like to thank my colleagues on responsibility to increase the proportion of Annual Report&FinancialStatements2004 This exceptionally detailed and accurate core the Board for their continued enthusiasm and total revenue derived from third party sales. mapping will serve well into the future for all to extend our thanks to the Minister for In recent years this has shown significant foreseeable applications. But, most crucially, it will Finance and the officials within his growth and our aim is to grow it even more Richard Kirwan facilitate the evolution and development of many Department for their interest in and support of over the next three years as part of our Chief Executive Officer entirely new applications in a world in which the OSi's activities throughout the year. technology changes on almost a daily basis. business strategy.

The biggest single challenge facing OSi today That can and will be achieved by unparalleled is to identify and meet these evolving needs, focus on market innovation and delivery of particularly in terms of services which will be ever better customer service and value. Annual Report & Financial Statements 2004 Statements & Financial Report Annual valued and therefore willingly paid for by both Kevin Bonner OSI the public and private sectors. Chairman

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OSI Annual Report & Financial Statements 2004 7

Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 6 Operational Report

New LIDAR

technology will

Marketing activities to service the needs of an ever-expanding OSi, however, is well positioned to respond to Similarly, digital sensors and infra red provide height customer base of specialist users, including these pressures. Our national data sets, which photography, currently being pioneered by OSi continues to develop and strengthen its geologists, archaeologists and are of exceptionally high quality, and the OSi, will not just ensure improved utilisation information, brand in the marketplace, making extensive environmentalists. We also commenced a strength of our reputation in the marketplace, of expensive aerial surveying resources, it will use of carefully selected promotional programme of education in relation to the are all working in our favour. provide new information of value to specific effectively affording opportunities to communicate with key target ways in which OSi data can be manipulated users. In the environmental area, for example, audiences. In 2004 OSi had strong presences Furthermore, the richness of our mapping by customers and integrated within their own it can be used to track progress of disease in customers at Forecourt, Showcase Ireland and Holiday data, the quality of our data checking and the databases and software application forestry and agriculture. Fair exhibitions as well as at specialist trade work which has been undertaken in the area programmes. exceptionally accurate shows such as Survey Ireland and GIS Ireland. of multicoding to make this data highly flexible Significant work was undertaken in the We also continued our high profile During 2004 we also conducted detailed and relevant in the hands of customers, all development of new systems during 2004. three dimensional sponsorship of the Killarney Rally. exercises on new pricing structures. The new support our continued market leadership. A major Editing Tools project is currently e-commerce system facilitates a dynamic underway and as soon as this is completed Among a number of point-of-sale promotions These attributes, coupled with our proven spatial data. approach to pricing, with charging by area and and OSi vector data can be delivered via the during the year, we undertook a highly cost- project management expertise and highly scale as opposed to charging by block of new Ecommerce system, the existing MapBase effective joint promotion in association with evolved skills, will help to ensure that OSi fully information, as heretofore. The new pricing database will be replaced by the new Prime Timberland footwear. exploits new market opportunities, particularly system is more consistent, and therefore is Oracle 9i database. in the provision of data to specialist OSi also undertook three roadshows last year seen as more equitable by users, and also businesses. The Editing Tools project will ensure that to launch digital data in Cork, Dublin and allows for a consistent, more transparent OSi gains maximum benefit from these new Galway to invited licence holders, who will be method of discounting for larger volume New technologies & systems databases. Prime and the Ecommerce the main customer base for this enhanced account holders. databases will be enabled for all types of data. spatial data. Since OSi introduced digital mapping in the Reflecting this development of the business, late 1970s it has remained at the leading edge The ultimate aim is to ensure that the new Expansion of our network of Agents saw the while the overall growth in sales last year was of technological developments among its master database is genuinely “open” and opening of two new ones, at Cavan and 14%, the growth in sales by Agents was 25%. peers. Digital photogrammetry was introduced provides OSi and its customers with the Tallaght in Dublin, giving us a comprehensive in 1992 and more recent developments have flexibility needed to exploit future nationwide network of 15 Agents. With the Competition OSI included implementation of a national Real developments in spatial data management, roll out of Phase 2 of our e-commerce Annual Report&FinancialStatements2004 While OSi has enjoyed market leadership Time Kinematic (RTK) GPS network, the including the move to a “collect once, use programme during 2004 our Agents are able for many years it has not done so in the development of a new coordinate reference many times” approach. This will include to provide a comprehensive range of digital absence of competition. Competitive system compatible with GPS and the purchase moving “multicoding” into full-blown data products, including aerial photography, to pressures, furthermore, are intensifying as of the latest LIDAR equipment. attribution. complement the range of Discovery and large the cost of entry to the marketplace declines. scale maps. LIDAR is a new technology being employed by Ecommerce capability Using satellite imagery and new techniques OSi to provide height information, effectively With a view to developing our Agents as for the collection of height data, competitors Extended and enhanced e-commerce affording customers exceptionally accurate “digital hubs” we undertook a programme of are naturally keen to “cherry pick” those capability is set to play an ever more three dimensional spatial data. Both airborne Agent education and development, providing areas of spatial data provision of highest important role in the efficient delivery of OSi's and terrestrial LIDAR is now being employed Annual Report & Financial Statements 2004 Statements & Financial Report Annual them with the understanding and skills needed commercial value. spatial data. The increased availability of by OSi. OSI

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OSI Annual Report & Financial Statements 2004

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Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 10 OSi’s own Geoportal is

the de facto national

portal for spatially- broadband internet connection throughout Geodesy The overall high level of compliance now being Human Resources Ireland is making the downloading of achieved is reflected in the growth in the OSi has pioneered the use of GPS as an aid to The role of HR Department is to contribute to related information information-rich high volume data a practical number of OSi licence holders in recent years. surveying and the commercialisation of web- the delivery of OSi's business strategy by option for more and more customers. OSi Six years ago there were just 70 licence based real time positioning services (Real Time providing the support and expertise necessary began rolling out its e-commerce delivery holders. Today, there are 1,850. Kinematic), which were rolled out nationally in to facilitate the implementation of appropriate mechanism to agents and selected high 2004 following pilot operation in Dublin in policies aimed at securing a skilled, flexible volume clients through 2004 and this will be Finance function 2003. Work commenced in 2004 to relocate and highly motivated workforce as well as to extended further during 2005. a GPS network station from Dublin to Kerry As OSi develops the commercial side of its promote the achievement of a work life Up to now agents have received data “off- and to establish a new one in Laois to enhance business the importance of an efficient finance balance for all concerned in the organisation. line”. Online capability has significantly national coverage. Further work was also function becomes ever more critical. New The Department provides an organisational increased scope, including delivery of aerial undertaken with the of systems were introduced during 2003 and context for change management initiatives photography to meet exact customer Northern Ireland to integrate its active GPS 2004 to support this development and the and is responsible for the conduct of specifications. network stations into the OSi's network to financial changes necessary to allow OSi to relationships with staff interests. provide all Ireland coverage for customers. operate as a State Body, including Throughout 2004 the dedication of the HR Irish Spatial Data Infrastructure implementation of accrual accounting within team contributed to a number of GeoDirectory the Financial Integra system, were completed OSi continues to play a central role in the achievements involving a range of new policies in 2004. OSi was established as a State Body, development of an Irish Spatial Data The collaboration between OSi and An Post and systems that have inputted to overall under new legislation, in March 2002, giving it Infrastructure, which is currently progressing on the maintenance and development of organisational efficiency and effectiveness. additional freedoms to make business-based under the convenorship of the Department GeoDirectory continued successfully during decisions. Among the main accomplishments in this of the Environment Heritage & Local 2004, with the -based GeoDirectory regard were, in the area of policy Government. A consultation document, staff coding all postal route data returned Monthly management accounts for the implementation, the continued effective circulated to interested parties during 2004, to them in a timely manner and producing organisation are now completed within 12 implementation and monitoring of action received positive responses and will be urban Internet maps in line with customer working days of month end, facilitating plans required under the terms of Sustaining followed in 2005 by a draft policy on ISDI requirements. monthly performance review by management

Progress. This incorporated the second and OSI for presentation to Government. and the Board.

Copyright protection third phase verification process as well as new Annual Report&FinancialStatements2004 OSi's own GeoPortal is the de facto A review of banking services was completed priorities and challenges required under the OSi continued to take action to protect national portal for spatially-related during the year, as a result of which a change Mid Term Review of Part Two of Sustaining valuable OSi/Government of Ireland information and is being expanded to include in service provider achieved free banking for Progress. Another policy initiative was the copyrights. A combination of approaches has geo-referenced data from a broad range of OSi for two years. launch of an e-working pilot project to assess been adopted to encourage compliance with public service organisations. Work is also the overall feasibility of this type of atypical licensing requirements, including, in some Electronic payments were also introduced for under way to build on the work of the working arrangement in the organisation. circumstances, initiation of legal actions. As far payment of suppliers and of monthly expenses GIS Test Bed to develop and assess ISDI Agreement was also reached with staff as possible, however, positive encouragement to employees. concepts. interests on new policies for the conduct of is the favoured approach. Annual Report & Financial Statements 2004 Statements & Financial Report Annual OSI

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OSI Annual Report & Financial Statements 2004

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Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 14 OSi Organisation

external appeals procedures and industrial Decentralisation relations mechanisms. Under the Government's decentralisation In the area of systems improvements, a programme it was announced that OSi is to number of initiatives were undertaken in move its main operations to Dungarvan, Co Chief Executive 2004. These included the changeover to a Waterford. During the course of 2004 the Officer new payroll provider which was successfully Decentralisation Implementation Group Richard Kirwan managed with reduced staff numbers in the charged with overseeing the putting into effect OSi HR Department. Under the auspices of the of this Government policy issued a number of Partnership Committee process, improvements reports. Among these reports was a request for to the Performance Management and each of the organisations included in the Development System were concluded. The decentralisation programme to prepare plans introduction of a HR helpdesk was proceeded addressing the People, Property and Business with, offering a more flexible service to staff of issues associated with the organisation's move. Organisation the organisation. As part of a more focused In response OSI prepared the necessary report General Manager General Manager General Manager General Manager General Manager service to staff, all employees in the which was duly returned to the Group. The Human Finance IT Marketing Operations & organisation were issued with an employee Decentralisation Implementation Group's Resources Geraldine Ruane Cormac Clancy Stephen Curran Mapping & Corporate Iain Greenway handbook entailing a range of information on reports of 2004 emphasised the fact that the Services the organisation and conditions of service. government's decentralisation policy for all the Tom Clarke organisations originally included in the Budget Particular progress was made in the area of 2004 announcement would continue and that training for newly appointed team leaders the challenges inherent in the programme and whose modular training programme concluded solutions developed to address these would during the course of the year. Significant need to respect the voluntary nature of the progress was also made in the provision of in- programme. house training in computer skills as well as the OSI roll out of ECDL self-learning programmes. Annual Report&FinancialStatements2004 Annual Report & Financial Statements 2004 Statements & Financial Report Annual OSI

16 17 OSI Annual Report & Financial Statements 2004 19 Rory M. Scanlan atrick J. O’Sullivan Mr. Mr. Liam EganMr. Fenton W. Pat Mr. Hayes Michael D. Mr. Anthony MurrayAnthony Liam O’Farrell Mr. P Mr. Mr. Bill AttleyMr. Egan Liam Mr. Mr. Thomas K. MaddenMr. Mr. Board Members at 31 December 2004 at 31 Members Board Bonner Kevin Mr. Chairman 4 (4) and (2) and Mr Liam , Mr Anthony (4) (2) 23 5 23 , with Mr Kevin Bonner , with Mr Kevin (3) , Mr Liam O'Farrell , Mr Liam O'Farrell (1) are the other members of this the other members are , Mr Rory Scanlan , Mr Liam Egan 1 4 1 (5) (3) (1) ccommodation Committee eports directly into the Audit Committee. Committee. into the Audit eports directly Committee. O'Farrell O'Farrell Murray Murray serving as the Chairman. A was This sub-Committee of the Board as established to advise the Board, to the OSi on issues relating appropriate, accommodation and in Headquarters particular issues arising because of the ageing Mr Kevin by Chaired of the buildings. nature Bonner The Committee meet on a regular basis and The Committee meet on a regular to all circulated the minutes of its meetings are The Internal Auditor of the Board. Directors r Committee Remuneration Committee comprises The Remuneration Mr Bill Attley Mr Rory Scanlan , (1) and Mr Thomas 23 (2) who served as Chairman who served 1 (3) udit Committee - Mr Patrick Fenton Fenton udit Committee - Mr Patrick udit Committee

Madden 2004. throughout Mr Patrick O'Sullivan O'Sullivan Mr Patrick Corporate GovernanceCorporate subscribes to the Ireland Survey Ordnance governance, of corporate highest standards to the principals and guidelines operating for the enunciated in the “Code of Practice of State Bodies”. Governance of OSi The Board in March established of OSi was The Board the OSi Act of 2002 under the provision of OSi The Board for a board provides The Act 2001. of the membership persons, of 10 membership of 2004. which did not alter during the course are of the Board Details of the membership – “Board outlined on page 19 of this report and Other Information”. Members meetings Board met ten times during 2004 The Board specifically including one meeting which was strategy. dedicated to discussion on corporate Committees of the Board sub-committees of the Board three are There as follows: A on the serve of the Board members Three A

Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 18

OSI Annual Report & Financial Statements 2004

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Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 20 OSI Annual Report & Financial Statements 2004 23 ear ended 31 December 2004 ear ended 31

Ordnance Survey Ireland Survey Ordnance Financial Statements Y

Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 22 OSI Annual Report & Financial Statements 2004 25 ccounting Policies 30

Contents Members Board and Other InformationStatement of Responsibilities Members’ Board Statement of Internal Financial Control 26 27 Report of Comptroller Generaland Auditor A 28 AccountIncome and Expenditure Balance Sheet 29 32 StatementCashflow Notes to the Financial Statements 33 34 35

Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 24 OSI Annual Report & Financial Statements 2004 27 vin Bonner asonable accuracy at any time the financial time at any asonable accuracy the assets of sponsible for safeguarding easonable steps for the prevention and the easonable steps for the prevention The Board is responsible for keeping proper is responsible The Board which disclose with accounting records re and to Ireland Survey position of Ordnance that the financial to ensure enable the Board and with the statements comply with the Act the by laid down accounting standards is also The Board Minister for Finance. re and hence for taking Ireland Survey Ordnance r The and other irregularities. detection of fraud held in are books of accounts of the Board in headquarters Ireland Survey Ordnance Dublin 8. , On behalf of the Board: Ke Chairman easonable and prudent select suitable accounting policies and then apply them consistently make judgements and estimates that are r material any disclose and explain accounting applicable from departures and standards, the financial statements on the prepare going concern basis unless it is that Ordnance to presume inappropriate will continue in existence. Ireland Survey ear Ended 31st December 2004. December ear Ended 31st equired to equired Statement of Board Members’ Board Statement of Responsibilities Y Survey the Ordnance by is required The Board financial to prepare 2001 Act, Ireland which give statements for each financial year of of the state of affairs a true and fair view and of its income Ireland Survey Ordnance for that period. and expenditure is the Board those statements, In preparing r est End Retail Park Solicitor Solicitors McCann Fitzgerald 2 Harbourmaster Place International Financial Services Centre Dublin 1 Bankers AIB Bank W Blanchardstown Dublin 15 Bank of Ireland Main Street Blanchardstown Dublin 15 Anglo Irish Bank St. Stephens Green 18-21 Dublin 2 Bank of Scotland (Ireland) Street 72-74 Harcourt Dublin 2 easury Block uditor

Board Members Members Board and Other Information December 2004 at 31 Members Board Bonner - Chairman Kevin Mr. Bill Attley Mr. Liam Egan Mr. Fenton W. Pat Mr. Michael D. Hayes Mr. Thomas K. Madden Mr. Murray Anthony Mr. Liam O’Farrell Mr. J. O’Sullivan Patrick Mr. Rory M. Scanlan Mr. A General and Auditor Comptroller Tr Dublin Castle Dublin 2

Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 26 Statement of Internal Financial Control Report of Comptroller and Auditor General

On behalf of the Board of the Ordnance Survey a comprehensive budgeting system with an I have audited the financial statements on appropriate to the Ordnance Survey Ireland's Ireland, I acknowledge our responsibility for annual budget which is reviewed and agreed by pages 32 to 42 under Section 26 of the circumstances, consistently applied and ensuring that an effective system of internal the Board Ordnance Survey Ireland Act, 2001. adequately disclosed. financial control is maintained and operated. regular reviews by the Board of periodic and I planned and performed my audit so as to Respective Responsibilities of the Members The system can only provide reasonable and not annual financial reports which indicate financial obtain all the information and explanations of the Board and the Comptroller and absolute assurance that assets are safeguarded, performance against forecasts that I considered necessary to provide me with Auditor General transactions authorised and properly recorded, sufficient evidence to give reasonable setting targets to measure financial and other and that material errors or irregularities are either The accounting responsibilities of the Members assurance that the financial statements are performance prevented or would be detected in a timely period. of the Board are set out on page 27. It is my free from material misstatement whether formal project-management disciplines. responsibility, based on my audit, to form an caused by fraud or other irregularity or error. The board has taken steps to ensure an independent opinion on the financial statements In forming my opinion I also evaluated the appropriate control environment is in place by: The internal audit function operates in accordance presented to me and to report on them. overall adequacy of the presentation of with the Framework Code of Best Practice set out clearly defining management responsibilities information in the financial statements. in the Code of Practice on the Governance of I review whether the statement on the system and powers State Bodies. The work of internal audit is of internal financial control on page 28 reflects Emphasis of Matter establishing formal procedures for monitoring informed by analysis of the risk to which OSi is Ordnance Survey Ireland's compliance with Without qualifying my opinion, I draw the activities and safeguarding the assets of the exposed and annual internal audit plans are based applicable guidance on corporate governance attention to the Accounting Policy 6 on page organisation on this analysis. The analysis of risk and the internal and report any material instance where it does 31 in relation to the ownership of, and the audit plans are endorsed by the Audit Committee. not do so, or if the statement is misleading or developing a culture of accountability across all treatment of costs incurred on, the National The Board's monitoring and review of the inconsistent with other information of which I levels of the organisation. Topographic Database. effectiveness of the system of internal financial am aware from my audit of the financial The Board has established processes to identify control is informed by the work of the Internal statements. Opinion and evaluate business risks by Auditor, the Audit Committee which oversees the Basis of Audit Opinion In my opinion, proper books of accounts work of the Internal Auditor, the executive Identifying the nature, extent and financial have been kept by Ordnance Survey Ireland managers within OSi who have responsibility for In the exercise of my function as Comptroller implication of risks facing the body including and the financial statements, which are in the development and maintenance of the financial and Auditor General, I conducted my audit of the extent and categories which it regards as agreement with them, give a true and fair control framework, and comments made by the the financial statements in accordance with acceptable; view of the state of affairs of Ordnance

Comptroller and Auditor General in his auditing standards issued by the Auditing OSI Assessing the likelihood of identified risks Survey Ireland at 31 December 2004 and of management letter. Practices Board and by reference to the special Annual Report&FinancialStatements2004 its income and expenditure and cash flow for occurring; considerations which attach to State bodies in I confirm that the Board carried out a review in the year then ended. Working closely with Government and various relation to their management and operation. December 2004 of the effectiveness of the system Agencies to ensure that there is a clear An audit includes examination, on a test basis, of internal controls in operation during 2004. understanding of the goals of OSi and support of evidence relevant to the amounts and for the strategies to achieve those goals. Signed on behalf of the Board. disclosures in the financial statements. It also includes an assessment of the significant John Purcell The system of internal financial control is based on estimates and judgements made in the Comptroller and Auditor General a framework of regular management information, preparation of the financial statements, and of administration procedures including segregation of 17 June 2005

Annual Report & Financial Statements 2004 Statements & Financial Report Annual whether the accounting policies are duties, and a system of delegation and Kevin Bonner OSI accountability. In particular, it includes: Chairman

28 29 Accounting Policies

1. General portion of the licence at the balance sheet date is the assets and liabilities arising from an employer's Mapping and Continuous Revision activities. Such shown as deferred revenue. superannuation obligations and any related expenditure is charged to the Income and Ordnance Survey Ireland (OSi) was established by funding, and to recognise the costs of providing Expenditure Account as incurred. Statutory Instrument No. 73 of 2002, on 4th Digital customers may also be supplied with superannuation benefits in the accounting periods March 2002 under the Ordnance Survey Ireland mapping data under annual contracts or for 7. Tangible fixed assets in which they are earned by employees. As a Act, 2001. periods in excess of one year. Revenues under transitional measure, the Standard requires that Tangible fixed assets are stated at cost less these contracts are recognised as obligations 2. Basis for Accounting the present value of scheme liabilities be disclosed accumulated depreciation. under the contracts are fulfilled. Costs in relation in the notes to the 2004 financial statements. The financial statements have been prepared on to these contracts are charged to the Income and Depreciation is calculated in order to write off the an accruals basis, except as stated below, under Expenditure Account in the period in which the 6. The National Topographic Database cost of tangible fixed assets other than land by the historical cost convention and in accordance revenues are earned. equal annual instalments. The estimated useful The National Topographic Database is used to with generally accepted accounting practice. lives by reference to which depreciation has been Other sales and revenues are recognised when the create and maintain digital mapping data. The Financial reporting standards recommended by calculated are as follows: product has been despatched or the service database is of central importance to OSi's activities the recognised accounting bodies are adopted as provided. and income generation. Fixtures and fittings 3 to 10 years they become applicable. 5. Superannuation The National Topographic Database comprises Motor vehicles 5 years 3. Opening Balances two key elements - the database management On the establishment date existing staff Computer equipment 4 years On Establishment day, 4th March 2002, the assets system and the underlying topographical data (the transferred from the Ordnance Survey to OSi. and liabilities of the Ordnance Survey were database). 8. Stocks Such staff retain under statute their existing transferred to OSi on the basis of their values at superannuation entitlements. A new The database management system is accounted Stocks comprise printed maps and supplies and that date and an amount equivalent to the net superannuation scheme which will include all staff for as computer equipment under tangible fixed are stated at the lower of cost and net realisable assets was credited to Reserves. has been submitted for the approval of the assets (see note 8 to the financial statements). The value. 4. Income recognition Minister, in accordance with Section 17 of the existing asset at 4th March 2002 was transferred 9. Foreign currencies Ordnance Survey Act 2001. The responsibility for into the opening balance sheet at cost less OSi receives an Oireachtas Grant from the the superannuation entitlements of the transferred accumulated depreciation. Transactions denominated in foreign currencies are Department of Finance. This amount is shown in OSI staff rests with OSi. Pension payments will be met, translated into euro at the exchange rates ruling at the Income and Expenditure Account in the period Although OSi enjoys continued access to and Annual Report&FinancialStatements2004 as they arise, from total Osi revenues. the dates of the transactions. Monetary assets and in which it is received. A Service Contract for the usage of topographical data, the intellectual liabilities denominated in foreign currencies are services to be provided in exchange for the It is intended that the new scheme will be a property rights to the data are retained by the translated into euro at the exchange rates ruling at Oireachtas Grant is under negotiation with the defined benefit scheme. Pending the scheme's Government of Ireland. Accordingly, no value has the balance sheet date and resulting gains and Minister for Finance. establishment it is being operated on an been ascribed to topographic data in these losses are included in the Income and Expenditure administrative basis. financial statements. Digital customers may be supplied by licensing of Account for the period. access to ordnance survey data. Revenue from the For accounting periods commencing on or after 1 OSi incurs expenditure on an ongoing basis sale of licences is earned evenly over the life of the January 2005 Financial Reporting Standard 17 will maintaining and enhancing the topographic licence and revenue attributable to the unexpired require financial statements to reflect at fair value database. This comprises money spent on New Annual Report & Financial Statements 2004 Statements & Financial Report Annual OSI

30 31 Income and Expenditure Account Balance Sheet as at 31st December 2004

2004 2003 2004 2003 Notes €€ Notes €€

Sales 1 20,657,327 14,976,442 Fixed assets Tangible assets 8 4,788,647 4,251,649 Oireachtas Grant 2,000,000 8,975,500 Current assets Other Operating Income 4 107,926 198,649 Stock 9 286,351 259,023 Debtors 10 7,475,299 3,812,572 22,765,253 24,150,591 Deferred tax 7 981,660 342,850

Costs of Production and Sales 2 (19,686,596) (15,403,213) Cash at bank and in hand 35,580 10,633,020

Distribution and Administration Costs 5 (7,995,647) (7,321,866) 8,778,890 15,047,465

Surplus for period before taxation (4,916,990) 1,425,512 Creditors – amounts falling due within one year 11 4,459,668 5,938,306

Tax on surplus/(Deficit) Net current assets 4,319,222 9,109,159 on ordinary activities 7 664,051 107,031 Total assets less current liabilities 9,107,869 13,360,808

Surplus/(Deficit) for period after taxation (4,252,939) 1,532,543 Represented by:

Balance at beginning of period 4,894,444 3,361,901 Transfer from Ordnance Survey on 4th March 2002 8,466,364 8,466,364 Revenue reserves 641,505 4,894,444 Balance at 31st December 641,505 4,894,444 Closing balance 9,107,869 13,360,808

Sales and operating income arose solely from continuing operations. There were no recognised gains or losses other than those dealt with in the income and expenditure account. The Accounting Policies on pages 30 and 31, and the notes on pages 35-42 form part of these accounts. The Accounting Policies on pages 30 and 31, and the notes on pages 35-42 form part of these

financial statements. On behalf of the board OSI Annual Report&FinancialStatements2004 On behalf of the board

Kevin Bonner Richard Kirwan Chairman Chief Executive Officer Kevin Bonner Richard Kirwan Chairman Chief Executive Officer Annual Report & Financial Statements 2004 Statements & Financial Report Annual OSI

32 33 Cashflow Statement Notes to the Financial Statements

2004 2003 1 Sales 2004 2003 Notes €€ €€

RECONCILIATION OF THE NET Long term contracts - County Councils 4,988,135 1,944,767 MOVEMENT FOR THE YEAR Long term contracts - Utilities 5,775,011 3,982,318 Surplus/(Deficit) for period after taxation (4,252,939) 1,532,543 Map Sales including annual licensing 9,894,181 9,049,357 Depreciation 2,527,218 2,187,300 Deposit Interest (85,332) (187,022) 20,657,327 14,976,442 Increase in debtors and prepayments (4,301,537) (340,832) 2 Costs of Production and Sales 2004 2003 Increase/(Decrease) in creditors (1,478,638) 1,433,925 €€ (Increase)/Decrease in stocks (27,328) 22,273 Cost of production (New Mapping and Continuous Revision)

Net cash inflow/(outflow) from operating activities (7,618,556) 4,648,187 Salaries & Wages 8,675,481 7,646,094 IT Costs 1,518,020 993,252 CASH FLOW STATEMENT Depreciation 2,385,755 2,044,723 Net cash inflow/(outflow) from operating activities (7,618,556) 4,648,187 Outsourced mapping 5,314,798 2,467,812 Flight and maintenance costs 435,036 756,023 Return on investments and servicing of finance Travel & Subsistence 569,861 376,641 Interest received 85,332 187,022 Vehicle Running Costs 175,087 177,465 Contractor costs 26,402 65,253 Net cash inflow (outflow) from return Film Costs 23,539 16,310 on investments and servicing of finance 85,332 187,022 Incidental Expenses 18,062 23,196

Capital expenditure Stationery 38,046 35,824 Receipts on sale of tangible fixed assets - - Field Equipment 32,301 7,922 Purchase of tangible fixed assets 8 3,064,216 2,870,757 Plotter Costs 61,146 35,117

Net cash outflow from capital expenditure (3,064,216) (2,870,757) 19,273,534 14,645,632

Increase / (decrease) in cash (10,597,440) 1,964,452 Cost of sales: Opening stock 182,897 201,549 OSI Reconciliation of Net Cash Flow to Movement in Net Funds Outsourced printing costs 437,299 738,929 Annual Report&FinancialStatements2004 Closing stock as at 31 December (207,134) (182,897) Net increase/(decrease) in cash (10,597,440) 1,964,452 Total costs of production and sales 19,686,596 15,403,213 Net funds at 1 January 10,633,020 8,668,568 Net funds at 31 December 35,580 10,633,020 Movement in net funds (10,597,440) 1,964,452

The Accounting Policies on pages 30 and 31, and the notes on pages 35-42 form part of these financial statements. Annual Report & Financial Statements 2004 Statements & Financial Report Annual OSI

34 35 Notes to the Financial Statements continued

3 New Mapping and Continuous Revision Costs 5 Distribution and Administration Expenses 2004 2003 As described in paragraph 6 to the accounting policies, expenditure incurred on enhancing €€ and maintaining the topographic database is charged to the Income and Expenditure Account in the period in which incurred. The amounts charged to the Income and Expenditure Account Salaries & wages (including pension payments) 5,095,124 4,658,807 for the current period were as follows: Travel & subsistence 141,914 149,276 Training & subscriptions 245,752 244,058 2004 2003 Marketing & promotions 94,020 164,365 €€ Incidental expenses 52,470 76,427 Bank charges 14,313 15,280 New Mapping 9,750,215 6,540,172 Office premises expenses 385,160 376,489 Continuous Revision 9,523,319 8,105,460 General insurance 198,992 158,891 Light & heat 193,494 218,311 19,273,534 14,645,632 Cleaning 95,088 95,471

OSi estimates that the topographic database will be renewed through continuous revision over Postage & telephone 598,750 460,488 a five-year cycle. Bad debts provision - (200,000) Depreciation 141,463 142,577 4 Other Operating Income 2004 2003 Consultancy 322,555 497,562 €€ Contract photography 76,386 23,680 Legal & professional costs 120,580 29,781 Deposit Interest 85,332 187,022 Directors' fees 67,296 67,296 Other income 22,594 11,627 Outsourced payroll services 100,428 78,635 Audit fees 19,000 30,000 107,926 198,649 Stationery & office equipment 32,862 20,083 Bad debts - 14,389

7,995,647 7,321,866

OSi occupies premises rent free in the Phoenix Park, Dublin which is provided by the Office of Public

Works. In December 2003 the Minister for Finance announced that OSi Headquarters will be relocating OSI

to Dungarvan, Co. Waterford. Annual Report&FinancialStatements2004

6 Staff costs and employee information 2004 2003 €€

Wages and salaries (including pension payments) 13,190,490 11,831,349 Social insurance costs 580,115 473,552

13,770,605 12,304,901

Annual Report & Financial Statements 2004 Statements & Financial Report Annual The average number of persons employed during the period was 311. OSI

36 37 OSI Annual Report & Financial Statements 2004 39 235,004 €€ €€ 2004 2003 2004 2003 286,351 259,023 7,475,299 3,812,572 Equipment €€€€ ehicles Computer Fittings V 1st December 2004 647,7001st December 20041st December 2003 191,575 23,987,576 206,459 719,250 4,391,858 25,354,526 3,790,212 205,214 254,978 4,788,647 4,251,649 1st December 2004 839,275 28,379,434 924,464 30,143,173 Debtors December 31st December 31st 1st January 2004 769,372 25,392,033 917,552 27,078,957 3 3 3 3 1st January 2004 562,913 21,601,821 662,574 22,827,308 T-

cumulated depreciation

ade debtors 1,678,234 1,582,287 dditions 69,903 2,987,401 6,912 3,064,216 Cost or valuation At A Consumables 79,217 76,126 DisposalsAt Net book amount At At -9 StocksMap stocks - -10 - Other debtors DecemberPrepayments 31st December 31st tax recoverableCorporation on contractsAmounts recoverable 207,134 182,897 5,709.952 25,241 1,479,744 12,887 48,985 - 3,462 512,075 8 Tangible assets8 Tangible Motor-Disposals - At Office -Ac & Fixtures At for the period Charge - Total 84,787 2,385,755 56,676 2,527,218 Amounts falling due within one year: Tr VA continued €€ €€ 2004 2003 erage rate of Irish corporation tax for the period of 12.5%. of Irish corporation rate erage (614,624) 178,189 assive income taxed at 25% corporation tax rate at 25% corporation income taxed assive 10,666 23,379 Effects of: expensesDisallowable ReceivedCapital Grant of capital allowances in excess Depreciation P 188,419 (250,000) 162,558 - (358,845) (25,000) Surplus/(Deficit) on ordinary activities before tax activities before Surplus/(Deficit) on ordinary the activities multiplied by Surplus/(Deficit) on ordinary av (4,916,990) 1,425,512 Unutilised losses for the period tax charge Current - 665,539 19,719 - 7 Tax on surplus/(deficit) on ordinary activities on ordinary on surplus/(deficit) 7 Tax for the period tax charge Current 2004 years previous of in respect Overprovision tax: Deferred of timing differencesOrigination and reversal for the period tax charge/(credit) Deferred 2003 applying the from result that would charge than the current period is lower for the tax charge The current (25,241) below: explained are The differences activities. tax to surplus on ordinary of Irish corporation rate standard (638,810) - (664,051) (107,031) (107,031) -

Notes to the Financial Statements Notes to the

Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 38 OSI Annual Report & Financial Statements 2004 41 8,100,000) 0,400,000) 1 18,500,000) € ( € € ( 2004 2003 2,200,000) 3,500,000) 58,700,000) 82,900,000) 18,500,000) € € ( ( % per annum % per annum € € € ( ( ( 82.9m at 31st December 2004. 82.9m at 31st € 3,500,000) 2,200,000) 2,200,000) € € € ( ( ( the actuary in order to assess the liabilities of the superannuation scheme at 31 December 2004. at 31 scheme to assess the liabilities of the superannuation the actuary in order

cognised gains and losses (STRGL) ctuarial gain/(loss) which would be recognised in STRGL: be recognised ctuarial gain/(loss) which would ctuarial gain/(loss) : ast service cost: - ension rate increaseension rate 4.00 4.00 or the purpose of reporting in accordance with Financial Reporting Standard 17, Retirement Benefits 17, Retirement with Financial Reporting Standard in accordance or the purpose of reporting otal operating charge: otal operating T Experience gains and losses arising on the scheme liabilities: of scheme liabilities: value Changes in assumptions underlying the present ( If the requirements of FRS 17 were fully adopted in 2004 the following would have been reflected in been reflected have would fully adopted in 2004 the following of FRS 17 were If the requirements the financial statements: surplus under FRS 17 to operating been charged have of the amount that would Analysis service cost: Current P to other finance income been credited have of the amount that would Analysis on pension scheme liabilities: Interest in the statement of total recognised been have of the amount that would Analysis re Inflation rate increaseInflation rate increaseSalary rate P Scheme liabilities discount rate in FRS unit method prescribed On the basis of these and other assumptions and applying the projected 17, the total accrued pension liability is calculated to be 2.00 5.50 4.00 2.00 6.00 4.00 A in deficit during the year Movement Deficit at beginning of year: F prepared has been A valuation a qualified actuary. OSi has been advised by arrangements), (transitional by as follows: to calculate liabilities under FRS 17 are The major financial assumptions used Superannuation Benefits service cost: Current on scheme liabilities : Interest A Deficit in scheme at end of year of scheme liabilities. no assets held in respect are unfunded, there As the OSI schemes are continued €€ €€ €€ 2,641 - 2004 2003 2004 2003 2004 2003 506,867 496,846 236,848 275,064 4,459,668 5,938,306 1st December December 31st 1st December December 31st annuation Costs Creditors - amounts falling due within one yearCreditors 3

yments under Voluntary Early Retirement Scheme Early Retirement yments under Voluntary - - y Related Social Insurance y Related Social Insurance on long-term contractsyments in advance 1,358,154 76,461 1,510,622 67,598 ade creditors 352,198 466,368 ccruals 2,055,452 2,698,158 ensions and gratuities paidensions and gratuities 506,867 496,846 P Surplus/(Deficit) for the year after taxationSurplus/(Deficit) for the year December at 31st reserves Revenue for not provided capital expenditure 13 Future capital expenditure. future for any OSi has not contracted (4,252,939)14 Superannuation Scheme. Contributory Pension scheme and a Spouses' and Children's a Staff Superannuation OSi operates entitlements arising under Superannuation schemes. defined benefit superannuation These schemes are 1,532,543 account, net to Income and Expenditure charged income and are paid out of OSi current the scheme are 641,505 fund is No separate become payable. in which they in the year contributions, superannuation of employee is No provision of pensions and gratuities. held, to finance the payment maintained and no assets are benefits. to future liability accruing in regard of any made in the financial statements in respect 4,894,444 Super in the Financial Statements is made up as follows: for superannuation The charge Pa Less Staff Contributions 270,019 221,782 Tr to Minister of FinanceAmounts owed taxCorporation VAT - 168,243 - 30 710,503 11 deducted under PAYEIncome Tax Pa Other creditorsA Pa 179,287 154,823 135,475 161,991 12 Reconciliation of movements in reserves12 Reconciliation of movements 3 Opening revenue reservesOpening revenue 4,894,444 3,361,901

Notes to the Financial Statements to the Financial Notes

Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 40 OSI Annual Report & Financial Statements 2004 43 continued €€ 2004 2003 67,296 67,296 1st December December 31st ed the financial statements on 9 March 2005. ed the financial statements on 9 March rov elation to the disclosure of interests by Board members and these procedures have been adhered to in been adhered have and these procedures members Board by of interests elation to the disclosure There were no loans to, or transactions with Board Members in the year ended 31st December 2004. ended 31st in the year Members with Board loans to, or transactions no were There the Department of Finance in with guidelines issued by in accordance adopted procedures The Board r had any Members' activities in which Board to the OSi's in relation no transactions were There the year. beneficial interest. balance sheet events 16 Post of significance. no events are There of financial statements 17 Approval app The directors loans and transactions Emoluments: Members- for services as Board 67,296 67,296 15 Board Members' remuneration, remuneration, Members' 15 Board - for other services 3 - -

Notes to the Financial Statements Notes to the

Annual Report & Financial Statements 2004 Statements Financial & Report Annual OSI 42 44 OSI Annual Report & Financial Statements 2004