Departmental Contingency Planning

Dáil Éireann Debate, Tuesday - 8 May 2018

Tuesday, 8 May 2018

Ceisteanna (131)

Catherine Murphy

Ceist:

131. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the amount of funds set aside on an annual basis for contingent liability for the past ten years to date in 2018; the way in which it is determined the amount that is forecast to be needed for contingent liability; if he carries out an actuarial analysis for budgeting current and future contingent liability; if he conducts a risk assessment in the context of contingent liability; and if he will make a statement on the matter. [20066/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

Public Financial Procedures set out that a contingent liability arises in any situation where past or current actions or events create a risk of a call on Exchequer funds in the future. Contingent liabilities are not recognised in the statement of financial position but are disclosed by way of a note to the appropriation account unless the possibility of an outflow of resources is remote.

In terms of my own Department, since its establishment in 2011, there have been a small number of items disclosed in the notes of the annual appropriation account of the Department with regard to contingent liabilities, most of which relate to legal costs. At present, one involves a legal case where costs have been awarded against the Department but have yet to be determined.

To date, the nature of the contingent liabilities related to my Department has not required actuarial services to estimate current and future contingent liabilities. However, the Department through its own financial and risk assessment processes identifies possible contingent liabilities as well as estimating the possible liability.