Collapse All
Dormant Accounts Fund
For the year ended 31 December 2013
Statement of Agency’s Responsibilities
The National Treasury Management Agency (“the Agency”) is required by the Dormant Accounts Act 2001 (as amended by the Unclaimed Life Assurance Policies Act 2003, the Dormant Accounts (Amendment) Act 2005 and the Dormant Accounts (Amendment) Act 2012), to prepare financial statements in respect of the operations of the Dormant Accounts Fund for each financial year.
In preparing those statements, the Agency:
- selects suitable accounting policies and then applies them consistently;
- makes judgements and estimates that are reasonable and prudent;
- prepares the financial statements on a going concern basis unless it is inappropriate to do so;
- discloses and explains any material departure from applicable accounting standards.
The Agency shall, in relation to the Dormant Accounts Fund, keep in a form that may be specified by the Minister for Finance all proper and usual accounts of all moneys received or expended by it and for maintaining accounting records which disclose with reasonable accuracy at any time the financial position of the Fund.
The Agency is also responsible for safeguarding assets under its control and hence for taking reasonable steps in order to prevent and detect fraud and other irregularities.
John C. Corrigan, Chief Executive
National Treasury Management Agency
26 June 2014
Comptroller and Auditor General Report for presentation to the Houses of the Oireachtas
Dormant Accounts Fund
I have audited the financial statements of the Dormant Accounts Fund for the year ended 31 December 2013 under the Dormant Accounts Act 2001. The financial statements, which have been prepared under the accounting policies set out therein, comprise the accounting policies, the investment and disbursements account, the reserve account, the balance sheet and the related notes. The financial statements have been prepared in the form prescribed under section 46 of the Act, and in accordance with generally accepted accounting practice in Ireland.
Responsibilities of the National Treasury Management Agency
The National Treasury Management Agency is responsible for the preparation of the financial statements, for ensuring that they give a true and fair view of the state of the Fund’s affairs at year end and of its transactions for the year, and for ensuring the regularity of transactions.
Responsibilities of the Comptroller and Auditor General
My responsibility is to audit the financial statements and report on them in accordance with applicable law. My audit is conducted by reference to the special considerations which attach to State bodies in relation to their management and operation. My audit is carried out in accordance with the International Standards on Auditing (UK and Ireland) and in compliance with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements, sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of
- whether the accounting policies are appropriate to the Fund’s circumstances, and have been consistently applied and adequately disclosed
- the reasonableness of significant accounting estimates made in the preparation of the financial statements, and
- the overall presentation of the financial statements.
I also seek to obtain evidence about the regularity of financial transactions in the course of audit.
In addition, I read the information about the Dormant Accounts Fund in the annual report of the National Treasury Management Agency to identify if there are any material inconsistencies with the audited financial statements. If I become aware of any apparent material misstatements or inconsistencies, I consider the implications for my report.
Opinion on the financial statements
In my opinion, the financial statements, which have been properly prepared in accordance with generally accepted accounting practice in Ireland, give a true and fair view of the state of the Dormant Accounts Fund’s affairs at 31 December 2013 and of its transactions for 2013.
In my opinion, proper books of account have been kept by the Agency. The financial statements are in agreement with the books of account.
Matters on which I am required to report by exception
I report by exception if
- I have not received all the information and explanations I required for my audit, or
- my audit noted any material instance where public money has not been applied for the purposes intended or where the transactions did not conform to the authorities governing them, or
- the information about the Fund in the Agency’s annual report is not consistent with the related financial statements, or
- I find there are other material matters relating to the manner in which public business has been conducted.
I have nothing to report in regard to those matters upon which reporting is by exception.
Seamus McCarthy
Comptroller and Auditor General
28 June 2014
Accounting Policies
(a) Background
The Dormant Accounts Act 2001 (as amended by the Unclaimed Life Assurance Policies Act 2003, the Dormant Accounts (Amendment) Act 2005 and the Dormant Accounts (Amendment) Act 2012), provides for a scheme to transfer dormant funds in banks, building societies and An Post and the transfer of moneys payable under unclaimed life assurance policies to the care of the State, while guaranteeing a right of reclaim to those funds. It further provides for the introduction of a scheme for the disbursement, for charitable purposes, or purposes of societal and community benefit, of funds which are not likely to be reclaimed.
The Dormant Accounts Fund consists of a Reserve Account from which reclaims and various expenses are paid and an Investment and Disbursements Account from which investments and disbursements are made.
The Agency is responsible, under sections 17 and 18 of the 2001 Act, for establishing, managing and controlling the Dormant Accounts Fund and has all powers (including the power to charge fees, payable from the Fund, in relation to the management and control of the Fund) that are necessary to the performance of its functions. These functions include:
- the making of disbursements in accordance with the directions of the Minister for Public Expenditure and Reform
- the maintenance of the Reserve Account
- the defraying of the specified fees, costs and expenses incurred
- the defraying of the remuneration, fees and expenses of the authorised inspectors
- the repayment of moneys transferred to the Fund
- the preparation of the annual investment plan, having regard to the disbursement plan and any direction from
the Minister for Environment, Community and Local Government. - the investment of any moneys standing to the credit of the Fund that are not, for the time being, required
for the purpose of meeting the liabilities of the Fund - the keeping of proper accounts of all moneys received and expended by the Agency
- the submitting of annual accounts to the Comptroller and Auditor General and the presentation of a copy
of accounts so audited to the Minister for Finance and the Minister for Environment, Community
and Local Government.
As provided for in the Dormant Accounts (Amendment) Act 2005, the Minister for Environment, Community and Local Government established the Dormant Accounts Board on 4 January 2006. It replaced the Dormant Accounts Fund Disbursements Board which was dissolved on the same date. Section 5 of the Dormant Accounts (Amendment) Act 2012 provided for the dissolution of the Dormant Accounts Board on the appointed day. Under the terms of the Dormant Accounts (Amendment) Act 2012 (Appointed Day) Order 2012 the Dormant Accounts Board was dissolved as of 26 September 2012, and its functions transferred to the Minister for Environment, Community and Local Government. While the Dormant Accounts Board had a mainly monitoring and advisory role, it was empowered to direct the Agency to make disbursements from the Dormant Accounts Fund.
The significant accounting policies adopted are as follows:
(b) Reporting Currency
The reporting currency is the euro, which is denoted by the symbol €.
(c) Reporting Period
The reporting period is the year ended 31 December 2013.
(d) Basis of Accounting
The financial statements are prepared on an accruals basis under the historical cost convention.
Investment and Disbursements Account
Year ended 31 December
|
2013 |
2012 |
||
|
Note |
€000 |
€000 |
|
|
Moneys Transferred to the Fund in Respect of Dormant Accounts and Unclaimed Assurance Policies |
1 |
44,561 |
43,886 |
|
Amount Transferred to Reserve Account |
2 |
(23,425) |
(28,286) |
|
Disbursements |
3 |
(1,487) |
(4,160) |
|
Interest Earned |
10 |
1,509 |
1,881 |
|
Movement for the Year |
21,158 |
13,321 |
|
|
Balance at 1 January |
101,942 |
88,621 |
|
|
|
|||
|
Balance at 31 December |
123,100 |
101,942 |
Notes 1 – 10 form part of these financial statements.
John C. Corrigan, Chief Executive
National Treasury Management Agency
26 June 2014
Reserve Account
Year ended 31 December
|
2013 |
2012 |
||
|
Note |
€000 |
€000 |
|
|
Repayment of Moneys Transferred to the Fund |
1 |
(19,546) |
(22,331) |
|
Interest on Repayment of Moneys Transferred to the Fund |
1 |
(422) |
(223) |
|
Transfer from Investment and Disbursements Account |
2 |
23,425 |
28,286 |
|
|
|
||
|
Other Expenses |
4 |
(647) |
(803) |
|
Interest Earned |
10 |
210 |
123 |
|
Movement for the Year |
3,020 |
5,052 |
|
|
Balance at 1 January |
59,388 |
54,336 |
|
|
Balance at 31 December |
|
62,408 |
59,388 |
Notes 1 – 10 form part of these financial statements.
John C. Corrigan, Chief Executive
National Treasury Management Agency
26 June 2014
Balance Sheet
31 December
|
2013 |
2012 |
||
|
Note |
€000 |
€000 |
|
|
Assets |
|||
|
Financial Assets |
|||
|
– Investments at Cost |
5 |
49,052 |
50,115 |
|
Current Assets |
|||
|
– Cash and Bank Deposits |
6 |
134,378 |
109,556 |
|
– Debtors |
7 |
2,137 |
1,835 |
|
Liabilities |
|||
|
– Accrued Reclaims |
(59) |
(176) |
|
|
Net Assets |
185,508 |
161,330 |
|
|
Represented by: |
|||
|
Investment and Disbursements Accounts |
123,100 |
101,942 |
|
|
Reserve Account |
62,408 |
59,388 |
|
|
185,508 |
161,330 |
Notes 1 – 10 form part of these financial statements.
John C. Corrigan, Chief Executive
National Treasury Management Agency
26 June 2014
Notes to the Financial Statements
1. Cumulative amounts transferred and reclaimed in respect of dormant accounts and unclaimed assurance policies
|
Banks – Dormant Accounts |
|||||
|
|
Opening Balance 1/1/13 |
Transferred |
Reclaimed |
Closing Balance 31/12/13 |
Interest Paid |
|
Institution |
€ |
€ |
€ |
€ |
€ |
|
ACC Bank plc |
6,059,462 |
593,282 |
(398,928) |
6,253,816 |
11,093 |
|
Allied Irish Banks plc |
62,203,544 |
7,299,548 |
(1,641,602) |
67,861,490 |
5,352 |
|
Barclays Bank Ireland plc |
344,025 |
– |
– |
344,025 |
– |
|
BNP Paribas SA |
83,575 |
– |
– |
83,575 |
– |
|
Bank of America National Association |
154,778 |
– |
– |
154,778 |
– |
|
Bank of Ireland (The Governer & Company of) |
65,668,500 |
6,264,130 |
(2,809,591) |
69,123,039 |
34,313 |
|
Bank of Scotland plc |
567,088 |
– |
– |
567,088 |
– |
|
Citibank Europe plc |
28,700 |
– |
– |
28,700 |
– |
|
EBS Ltd |
15,081,361 |
2,088,616 |
(1,221,934) |
15,948,043 |
41,960 |
|
EAA Corporate Services plc (formerly WestLB Ireland plc) |
122,119 |
– |
– |
122,119 |
– |
|
KBC Bank Ireland plc |
785,993 |
– |
– |
785,993 |
– |
|
Irish Bank Resolution Corporation Ltd (in special liquidation) |
629,363 |
– |
– |
629,363 |
– |
|
Investec Bank plc |
1,557,617 |
52,787 |
(583) |
1,609,821 |
27 |
|
JP Morgan Bank (Ireland) plc |
48,897 |
– |
– |
48,897 |
– |
|
Danske Bank (formerly National Irish Bank Ltd) |
5,300,968 |
445,692 |
(36,489) |
5,710,171 |
295 |
|
Permanent TSB plc |
35,049,448 |
4,454,271 |
(920,946) |
38,582,773 |
5,162 |
|
Pfizer International Bank |
33,617 |
– |
(44) |
33,573 |
– |
|
An Post – Instalment Savings |
1,653,757 |
472,010 |
(211,142) |
1,914,625 |
15,899 |
|
An Post – Instalment Savings (Capitalised Interest) |
4,167,099 |
660,532 |
(431,753) |
4,395,878 |
– |
|
An Post – Post Office Savings Bank (Capitalised Interest) |
20,178 |
1,141 |
– |
21,319 |
– |
|
An Post – Post Office Savings Bank |
34,983,041 |
2,281,857 |
(1,241,346) |
36,023,552 |
54,869 |
|
An Post – Savings Bonds (Capitalised Interest) |
2,906,682 |
885,897 |
(370,631) |
3,421,948 |
– |
|
An Post – Savings Bonds |
2,179,150 |
1,402,527 |
(429,794) |
3,151,883 |
– |
|
An Post – Savings Certs (Capitalised Interest) |
47,725,342 |
5,348,264 |
(4,437,900) |
48,635,706 |
– |
|
An Post – Savings Certs |
15,319,521 |
3,220,933 |
(1,933,554) |
16,606,900 |
73,784 |
|
RBS NV (formerly ABN AMRO) |
34,992 |
– |
– |
34,992 |
– |
|
The Royal Bank of Scotland plc |
36,646 |
690 |
– |
37,336 |
– |
|
Scotiabank (Ireland) Limited |
1,003,127 |
– |
(910,174) |
92,953 |
182,544 |
|
Ulster Bank (formerly First Active) |
8,118,536 |
– |
(75,896) |
8,042,640 |
97 |
|
Ulster Bank Ireland Limited |
15,674,730 |
355,730 |
(222,134) |
15,808,326 |
535 |
|
TOTAL |
327,541,856 |
35,827,907 |
(17,294,441) |
346,075,322 |
425,930 |
|
Assurance Companies – Unclaimed Assurance Policies |
|||||
|
|
Opening Balance 1/1/13 |
Transferred |
Reclaimed |
Closing Balance 31/12/13 |
Interest Paid |
|
Institution |
€ |
€ |
€ |
€ |
€ |
|
Specified Term |
|||||
|
Acorn Life Ltd |
251 |
– |
(251) |
– |
– |
|
Ark Life Assurance Co. Ltd |
44,531 |
653,496 |
(159,523) |
538,504 |
– |
|
Aviva Life & Pensions Ire Ltd (formerly Hibernian) |
2,654,596 |
751,382 |
(180,170) |
3,225,808 |
– |
|
Caledonian Life |
104,748 |
– |
– |
104,748 |
– |
|
Canada Life Ireland |
1,404,214 |
574,617 |
(243,037) |
1,735,794 |
– |
|
Equitable Life |
7,131 |
– |
– |
7,131 |
– |
|
Friends First Life Assurance Co. Ltd |
1,936,444 |
440,860 |
(307,518) |
2,069,786 |
– |
|
Irish Life Assurance Co.plc |
4,196,421 |
37,212 |
(67,066) |
4,166,567 |
– |
|
New Ireland Assurance Co. plc |
212,151 |
27,555 |
(25) |
239,681 |
– |
|
Phoenix Life Ltd (formerly Alba Life) |
188,218 |
– |
– |
188,218 |
– |
|
Phoenix Life Ltd (formerly Royal & SunAlliance) |
908,164 |
11,986 |
– |
920,150 |
– |
|
Phoenix Life Ltd (formerly Scottish Provident Ireland) |
1,248,394 |
1,272,823 |
(47,928) |
2,473,289 |
– |
|
Royal London Mutual Insurance Society Ltd |
5,828,686 |
1,022,031 |
(33,072) |
6,817,645 |
– |
|
St. James Place International plc |
10,649 |
– |
– |
10,649 |
– |
|
Scottish Legal Life |
584,999 |
13,320 |
– |
598,319 |
– |
|
Standard Life International Ltd |
790,943 |
255,777 |
– |
1,046,720 |
– |
|
Sun Life |
167,491 |
52,242 |
(26,134) |
193,599 |
– |
|
Zurich Life Assurance plc (formerly Eagle Star) |
804,552 |
362,101 |
(124,596) |
1,042,057 |
– |
|
No Specified Term |
|||||
|
Acorn Life Ltd |
8,640 |
14,108 |
(7,902) |
14,846 |
– |
|
Ark Life Assurance Co. Ltd |
33,901 |
222,209 |
(31,227) |
224,883 |
– |
|
Aviva Life & Pensions Ire Ltd (formerly Hibernian) |
1,877,322 |
80,560 |
(18,279) |
1,939,603 |
– |
|
Caledonian Life |
31,113 |
– |
– |
31,113 |
– |
|
Canada Life Ireland |
3,658,251 |
73,210 |
(368,500) |
3,362,961 |
– |
|
Friends First Life Assurance Co. Ltd |
965,246 |
201,403 |
(26,669) |
1,139,980 |
– |
|
Irish Life Assurance Co. plc |
5,040,243 |
407,276 |
(66,928) |
5,380,591 |
– |
|
New Ireland Assurance Co. plc |
10,498,690 |
276,880 |
– |
10,775,570 |
– |
|
Phoenix Life Ltd (formerly Alba Life) |
15,033 |
– |
– |
15,033 |
– |
|
Phoenix Life Ltd (formerly Royal & SunAlliance) |
21,910 |
12,743 |
– |
34,653 |
– |
|
Phoenix Life Ltd (formerly Scottish Provident Ireland) |
275,195 |
– |
– |
275,195 |
– |
|
Royal London Mutual Insurance Society Ltd |
8,794,777 |
1,057,294 |
(246,954) |
9,605,117 |
– |
|
Scottish Legal Life |
480,719 |
22,105 |
– |
502,824 |
– |
|
Standard Life International Ltd |
1,289,626 |
343,056 |
(170,780) |
1,461,902 |
– |
|
Sun Life |
47,473 |
– |
– |
47,473 |
|
|
Zurich Life Assurance plc (formerly Eagle Star) |
1,908,777 |
375,738 |
(66,322) |
2,218,193 |
– |
|
TOTAL |
56,039,499 |
8,561,984 |
(2,192,881) |
62,408,602 |
– |
|
The Escheated Estate Fund |
4,400,000 |
– |
– |
4,400,000 |
– |
|
Accrued Reclaims |
(171,120) |
171,120 |
(58,975) |
(58,975) |
(4,374) |
|
GRAND TOTAL |
387,810,235 |
44,561,011 |
(19,546,297) |
412,824,949 |
421,556 |
|
|
|
|
|
|
|
The amounts transferred to the Fund included accounts denominated in currencies other than euro. The effect of revaluing these accounts at the year end exchange rates would be to reduce the total amount transferred to the Fund and not yet reclaimed by €469,191 from €412,824,949 to €412,355,758.
2. Transfers to the Reserve Account
Under section 17 (4) of the Dormant Accounts Act 2001 as amended, the Agency pays into the Reserve Account, from time to time, an amount determined by the Agency, with the approval of the Minister for Environment, Community and Local Government given with the consent of the Minister for Finance, for the purposes of making repayments from the Fund and of defraying various fees and expenses. A transfer is made periodically by the Agency to maintain the balance in the Reserve Account at a currently approved 15 per cent of the total dormant funds received by the Dormant Accounts Fund and not yet reclaimed. The balance in the Reserve Account may deviate from 15 per cent in the intervening period between the periodic rebalancing dates.
3. Disbursements
The following disbursements were made from the Fund during the year:
|
2013 €000 |
2012 €000 |
|
|
On direction of the Minister for Public Expenditure and Reform: |
||
|
Department of Children and Youth Affairs |
800 |
1,599 |
|
Department of Education and Skills |
8 |
379 |
|
Department of Environment, Community and Local Government |
5 |
– |
|
Department of Environment, Community and Local Government (adminstered by Pobal) |
591 |
1,932 |
|
Department of Social Protection |
– |
192 |
|
Irish Prison Service |
– |
58 |
|
Irish Prison Service (adminstered by Pobal) |
83 |
– |
|
1,487 |
4,160 |
4. a) Other Expenses
|
2013 €000 |
2012 €000 |
|
|
Board Fees |
– |
32 |
|
Board Expenses |
1 |
1 |
|
Fees of Service Provider (Pobal*) |
645 |
750 |
|
Consultancy and Advisory fees |
1 |
10 |
|
Other Expenses |
– |
10 |
|
647 |
803 |
* Pobal receives an annual service fee for its administration of projects in receipt of Dormant Accounts Fund grants. The fee is paid by the Department of the Environment, Community and Local Government (DECLG) and reimbursed from the Dormant Accounts Fund.
b) Expenses of the National Treasury Management Agency
Under section 45 (1)(c) of the Dormant Accounts Act 2001 as amended, the Agency is required to report certain specified information including a separate account of the administration fees and expenses incurred by the Agency in the operation of the Fund. These are detailed below:
|
2013 €000 |
2012 €000 |
|
|
General Administration |
150 |
150 |
This is an estimate, included in the Notes to the accounts only, as the Agency has not charged these fees and expenses to the Dormant Accounts Fund.
5. Financial Asset
|
2013 €000 |
2012 €000 |
|
|
5.0% Irish Treasury Bond 2013 |
– |
50,115 |
|
4.0% Irish Treasury Bond 2014 |
49,052 |
– |
|
49,052 |
50,115 |
6. Cash and Bank Deposits
This figure represents the cash balance held at the Central Bank of Ireland, and Commercial Term Deposits held with Permanent TSB and AIB.
7. Debtors
|
2013 €000 |
2012 €000 |
|
|
Bond Interest Receivable |
1,885 |
1,753 |
|
Central Bank Deposit Interest Receivable |
11 |
13 |
|
Commercial Deposit Interest Receivable |
241 |
69 |
|
2,137 |
1,835 |
8. (a) Contingent Exchequer Liability
As a result of cumulative disbursements to date the net assets of the Fund are less than the dormant funds transferred and not yet reclaimed. This difference represents a contingent exchequer liability that would have to be met by the Exchequer in the event that all moneys transferred to the Dormant Accounts Fund were reclaimed. Under section 17(7) of the Dormant Accounts Act 2001 as amended, whenever the moneys in the Investment and Disbursement Account are insufficient to meet the deficiency in the Reserve Account, a payment can be made out of the Central Fund into the Reserve Account of an amount not exceeding the deficiency. The moneys are repaid to the Central Fund, as soon as practicable, from surplus moneys remaining in the Fund after providing for any liabilities or contingent liabilities of the Fund.
(b) Analysis of Contingent Exchequer Liability:
|
1 January |
Movement |
31 December |
|
|
€000 |
€000 | €000 | |
|
Net Assets of Fund |
161,330 |
24,178 |
185,508 |
|
Dormant Funds Transferred not Reclaimed |
(387,810) |
(25,015) |
(412,825) |
|
Contingent Liability |
(226,480) |
(837) |
(227,317) |
(c) The movement in the Contingent Exchequer Liability is represented by:
|
Note |
€000 |
|
|
Interest Earned |
10 |
1,719 |
|
Interest on Repayments of Moneys Transferred to the Fund |
1 |
(422) |
|
Disbursements |
3 |
(1,487) |
|
Other expenses |
4 |
(647) |
|
Movement for the year |
(837) |
9. Investment Return
Under section 45 (1)(b) of the Dormant Accounts Act 2001 as amended, the Agency is required to report to the Minister for Environment, Community and Local Government the investment return achieved by the Fund. The annualised return on the Fund for the year was 1.64 per cent (2012: 1.29 per cent).
10. Interest Earned
|
|
Investment & |
Reserve |
Total |
Total |
|
€000 |
€000 | €000 | €000 | |
|
Bond Holding |
892 |
– |
892 |
1,315 |
|
Commercial Deposits |
595 |
181 |
776 |
402 |
|
Central Bank Deposits |
22 |
29 |
51 |
287 |
|
1,509 |
210 |
1,719 |
2,004 |