Details of the set-up costs of Microfinance Ireland (MFI) were set out in MFI’s accounts for the period ended 31 December 2012. The annual report and accounts for 2012 were laid before the Houses of the Oireachtas in July 2013.
The accounts reported that during the period to 31 December 2012, the company incurred costs of €278,000, which were of an exceptional nature, but which were in furtherance of the ordinary activities of the company. These exceptional costs were incurred by Social Finance Foundation (SFF, the parent company of MFI) on behalf of the Department of Jobs, Enterprise and Innovation and included the following: legal Costs of €113,000 prior to incorporation and also relating to the setup of MFI; projects Costs of €165,000 prior to incorporation and also relating to the setup of MFI. These costs, totalling €278,000, have now been reimbursed by Microfinance Ireland to SFF.
Separately, I have been advised by MFI that the annual administration costs for MFI for the year to December 2013 are forecast to total approximately €900,000. Salaries are the largest component of MFI’s annual budget and are anticipated to total less than €500,000.
Other components of the MFI budget include: approximately €200,000 for marketing costs, which are seen as essential in building awareness of the scheme among micro-enterprises and generating a pipeline of loan applications; and approximately €240,000 for overheads, such as premises, IT and employer’s PRSI.