Dáil Éireann Debate, Wednesday - 9 November 2016
132. Deputy Sean Fleming asked the Minister for Social Protection if he will provide a list of all contingent assets in his Department and in agencies under his Department where amounts can be owed but are not listed in the national accounts as an asset; if he will further provide a full breakdown of each category of contingent assets and the estimated amounts in the category; and if he will make a statement on the matter. [34082/16]
View answerThe following contingent assets are recorded in the Department of Social Protections (DSP) books of account as at 31 December 2015:
DSP Contingent Assets at 31/12/2015
|
- |
€000 |
€000 |
€000 |
|
Category |
Social Insurance Fund (SIF) |
Vote 37 Appropriation Account |
TOTAL |
|
Scheme Debt |
90,225 |
376,851 |
467,076 |
|
Redundancy Debt |
335,671 |
- |
335,671 |
|
Insolvency Debt |
111,342 |
- |
111,342 |
|
TOTAL |
537,238 |
376,851 |
915,089 |
The definition of a contingent asset as defined by the International Public Sector Accounting Standards Board (IPSASB) is as follows:
“A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly within the control of the entity (IPSAS 19)”.
In accordance with IPSAS 19 and standard Government cash accounting practice the contingent assets as detailed in the table are not recognised in the balance sheet of DSP’s statutory accounts.
DSPs accounts are prepared on a cash basis as opposed to an accruals basis. Social welfare benefits and allowances (including Redundancy & Insolvency (R&I)) are recognised when the payments are made. Receipts in relation to amounts recovered from welfare benefits and allowances (including R&I) are recognised in the period in which the amount is recovered.
Consequently the related debt is not recognised as an asset in either DSP’s Vote Appropriation account or in the SIF account. In the case of the above mentioned contingent assets, the book value of the debt is disclosed in notes 4 and 5 in SIF account and 6.1 in the Vote Appropriation account.
