The Code of Practice for the Governance of State Bodies 2016, Business and Financial Reporting Requirements provides that “State bodies should disclose details of expenditure on external consultancy/adviser fees in their annual report and/or financial statements for each accounting year for each entity”.
The Code states that for the purpose of disclosure in financial statements/annual report, ‘consultancy fees’ means fees paid to external parties providing advisory services of any nature. The 2017 Guide to the Implications for the Annual Financial Statements and the Annual Report defines consultancy as "where a person, organization or group thereof is engaged to provide intellectual or knowledge-based services (e.g. expert analysis and advice) through delivering reports, studies, assessments, recommendations, proposals, etc. that contribute to decision- or policy-making in a contracting authority". The engagement should be for a limited time period to carry out a specific finite task or set of tasks that involve expert skills or capabilities that would not normally be expected to reside within the contracting authority. While the Code provides suggested categories for consultancy expenditure, this should be amended to suit the requirements of a State body. The suggested categories are Legal, Financial, PR/Marketing/Business Improvement/Other.
For the purposes of disclosure in the annual report and/or financial statements, fees paid to external parties for the provision of a service that does not fit within the definition of consultancy as outlined above, or is not included in any of the above consultancy categories, is considered 'business-as-usual'.
The table below provides total spend in 2022 on consulting services and on ‘business-as-usual’ outsourcing, as provided by the non-commercial State bodies under the aegis of my Department. In respect of the Financial Services and Pensions Ombudsman, it should be noted that details of all expenditure incurred will be included in its Annual Financial Statements 2022 and published to its website, once certified by the Comptroller and Auditor General, submitted to the Minister for Finance and laid before the Houses of the Oireachtas. Accordingly, the information provided by the FPSO must be considered draft until this process is complete.
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Consulting Services– Total Spend 2022
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‘Business-as- usual’ outsourcing – Total Spend 2022
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Central Bank of Ireland
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€9,360,000
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€22,778,000
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Financial Services and Pensions Ombudsman
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€299,508
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€1,049,710
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Irish Fiscal Advisory Council
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Nil
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€11,628
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National Treasury Management Agency
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€3,788,000
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€1,527,000
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The following revised reply was received from the Department.
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Consulting Services & “Business as Usual”
-Total Spend 2022*
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National Treasury Management Agency
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€000
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Legal
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262
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Tax & Financial
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2,591
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Actuarial
|
665
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Public Relations and Marketing
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133
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Pension and Human Resources
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24
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Facilities and Other
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133
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Total Advisory Fees
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3,788
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‘Business-as-usual’ functions
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1,527
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Total Professional Fees
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5,315
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Irish Strategic Investment Fund
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Legal
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2,850
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Financial and Tax Advisory
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1,619
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Total Advisory Fees
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4,469
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*This excludes costs incurred on behalf of, and subsequently reimbursed by, a relevant State Authority as part of NTMA business unit operations.