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The Economic & Social Research Institute
ANNUAL REPORT & FINANCIAL
STATEMENTS 2018
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
WHITAKER SQUARE SIR JOHN ROGERSON’S QUAY
DUBLIN 2 IRELAND
TELEPHONE: (353-1) 8632000 FAX: (353-1) 8632100
WWW.ESRI.IE
The Council is the Institute’s overall governing body and acts as its board of directors. In association
with the director and staff, the Council is responsible for the development of the Institute’s research
strategy. The Council meets quarterly and is supported by its three sub-committees: Audit and Risk,
Business and Operations, and Nominations. Section 7 provides a short biography of Council
Members.
The Council
MEMBERS AT 31 DECEMBER 2018
Mr P. McManus, Chairperson
Professor A. Barrett, Director
1 Joined Council in May 2018.
MR PADRAIG MCMANUS, President and
Chairperson
PROFESSOR ALAN BARRETT, Director
MR JOHN BUCKLEY, former Comptroller and
Auditor General
MR PADRAIG DALTON, Director General,
Central Statistics Office
MS EMER GILVARRY, Partner, Mason Hayes &
Curran
MR JOHN MARTIN, former OECD Director
MR DAVID MOLONEY, Assistant Secretary of
the Department of Public Expenditure and
Reform
Mr RONAN MURPHY, former PwC, current
board member of Davy, ICON PLC and
Greencoat Renewables PLC
MR SEAN O’DRISCOLL, Former Chairperson
and Chief Executive of the Glen Dimplex
Group
PROFESSOR ROWENA PECCHENINO,
Maynooth University
DR ORLAIGH QUINN,1 Secretary General of the Department of Business, Enterprise and Innovation
MR PAT RABBITTE, former Minister and
former leader of the Labour Party, and
Chairperson of Tusla – Child and Family
Agency
PROFESSOR SALLY SHORTALL, Newcastle
University
TABLE OF CONTENTS
1. INTRODUCTION .................................................................................................................... 1
Independence and Funding ............................................................................................................. 1
Council Governance ........................................................................................................................ 1
Research Outputs in 2018 ............................................................................................................... 2
Growing Up in Ireland ..................................................................................................................... 3
People .............................................................................................................................................. 3
2. SUMMARY OF STRATEGIC ACHIEVEMENTS in 2018 ................................................................ 4
2.1 Research Activity ................................................................................................................... 4
2.1.1 Developing Research Areas ................................................................................. 4
2.1.2 Collaborations ..................................................................................................... 4
2.1.3 Dissemination ..................................................................................................... 5
2.2 Research Supports ................................................................................................................ 5
2.2.1 Generating Funding .................................................................................................. 5
2.2.2 Human Resources .................................................................................................... 5
2.2.3 Business Processes ................................................................................................... 5
3. RESEARCH IN 2018 ................................................................................................................ 6
3.1 Behavioural Economics ......................................................................................................... 6
3.2 Children and Young People ................................................................................................... 7
3.3 Communications and Transport ........................................................................................... 8
3.4 Education .............................................................................................................................. 9
3.5 Energy and Environment..................................................................................................... 10
3.6 Health and Quality of Life ................................................................................................... 12
3.7 Internationalisation and Competitiveness .......................................................................... 13
3.8 Labour Markets and Skills ................................................................................................... 14
3.9 Macroeconomics ................................................................................................................. 15
3.10 Migration, Integration and Demography ............................................................................ 17
3.11 Social Inclusion and Equality ............................................................................................... 18
3.12 Taxation, Welfare and Pensions ......................................................................................... 19
4. NATIONAL STUDY OF CHILDREN (GROWING UP IN IRELAND) ................................................ 20
5. RESEARCH AREA COORDINATORS at 31 December 2018 ...................................................... 22
6. STAFF at 31 December 2018 ................................................................................................ 24
7. ESRI COUNCIL – BIOGRAPHICAL INFORMATION ................................................................... 26
APPENDIX – FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
1
1. INTRODUCTION
The Economic and Social Research Institute (ESRI) aims to advance evidence-based policymaking
that supports economic sustainability and social progress in Ireland. The Council of the ESRI supports
this work by setting and overseeing the Institute’s strategic objectives, establishing the required
quality standards and ensuring that the independent analysis provided by the Institute remains
relevant to the economic and social issues facing policymakers in Ireland today. While the Council is
responsible for internal governance, Council members play no role in preparing or commenting on
specific research.
This Introduction sets out the Council’s views on how the Institute maintains its reputation as a
centre for excellence in independent policy-focused research. It also includes a brief overview of the
Institute’s governance and its research output in 2018, the fifth and final year of its 2014-2018
research strategy.
Independence and funding
The Institute’s research strategy reaffirms the importance of the ESRI’s commitment to producing
research that is independent, objective and of high quality. Independence is assured through the
contractual relationships between the Institute and its clients and underpinned by a policy of
publishing research, regardless of the findings or source of funding. Quality, objectivity and
independence are further supported by a rigorous peer review system, which is examined regularly
by the Council, and by peer reviews of the Institute itself.
In recent years, the Institute has focused on building financial sustainability through multi-annual
programmes of research funded by a number of government departments and agencies. The Council
acknowledges the importance of the continued support from government in the form of the annual
grant-in-aid which is provided by the Department of Public Expenditure and Reform. It recognises
the significant contribution of many government departments and agencies that funded research
programmes in 2018. The other major sources of research funding for the Institute come from
competitive funding processes, both in Ireland and in the EU.
The Council also recognises the contributions of individuals and companies that are subscribing ESRI
members. These membership subscriptions support the work of the Institute and contribute to
ensuring its independence.
Council governance
The Council of the ESRI continues to ensure that its standards of corporate governance operate to
the highest level. There is a high level of awareness regarding where potential conflicts of interest
can arise and a strong commitment to ensuring that Council membership is appropriately balanced.
The Council’s Nominations sub-committee monitors the membership to ensure that the Council has
the requisite skills, broad sectoral coverage and gender balance.
2
Normally, Council membership is for a three-year period, with a renewal being common for a further
three years. Council members are not paid any fees for their membership of the Council. Members
are nominated through a formal process and elected at the Institute’s AGM.
In 2018, Padraig McManus continued his term as Chairperson. John Buckley, John Martin, Rowena
Pecchenino and Rónán Murphy served on the Audit and Risk sub-committee; Hannah McGee, Bríd
O’Brien served on the Business and Operations sub-committee until May 2018; from May on, this
sub-committee comprised Emer Gilvarry, Sean O’Driscoll, Pat Rabbitte and Alan Barrett. Emer
Gilvarry, Padraig McManus and Alan Barrett served on the Nominations sub-committee.
Hannah McGee and Bríd O’Brien retired from the Council in 2018, having reached the end of their
second three-year terms. We would like to take this opportunity to thank Hannah and Bríd for their
enormous contributions to the Council. Dr Orlaigh Quinn, Secretary General of the Department of
Business, Enterprise and Innovation, joined the Council in May 2018 and it is a pleasure to welcome
Orlaigh to the Council.
Research outputs in 2018
In 2018, the Institute advanced its research strategy through significant output across its 12 research
areas. Our research was disseminated in 44 reports, 62 journal articles and 11 book chapters, in
addition to two Research Notes and five Special Articles published with the Quarterly Economic
Commentaries. Summaries of journal-published research studies were published in 28 Research
Bulletins. Work-in-progress was disseminated in 26 Working Papers.
The Quarterly Economic Commentary continued to convey the Institute’s outlook for the Irish
economy in 2018. While noting the substantial growth experienced over recent quarters, the
Commentary has been primarily concerned with underlying trends in growth and potential exposure
to external risk factors, particularly Brexit. The Institute’s model of the macroeconomy, COSMO,
informed analyses of Brexit scenarios and also other economic developments and policies including
the National Development Plan.
In November, we launched a new model to examine climate policy issues, the Ireland Economy,
Energy and Environment Model (I3E). I3E is a Computable General Equilibrium (CGE) model
describing the relationship between energy inputs and environmental impacts (focusing on
emissions), production sectors, households and the government. Initial research examined sectoral
and distributional impacts of increases in the carbon tax. Given the importance of climate change,
this new model is an important addition to the Institute’s research infrastructure.
Housing was another issue which featured prominently in 2018. Through our joint research
programme with the Department of Housing, Planning and Local Government, we looked at housing
demand and supply in order to draw policy implications. One study examined housing affordability
and looked at the distribution of housing costs across households. In so doing, the rental challenges
faced by low-income households in the private rented sector were quantified.
In a year in which gender equality issues received greater attention, our work on the gender impact
of tax and benefit policies was an important contribution. This research found little difference in the
3
effect of tax-benefit policy by gender among single people. However, within couples, the last decade
of budgetary policy resulted in sharper reductions to women’s disposable income compared to that
of their spouse. This was particularly the case in households with children. Team members
presented results from this research to the Oireachtas Committee on Budgetary Oversight. The
ability to carry out gender impact analysis is now available to government users of the ESRI tax-
benefit model.
Growing Up in Ireland
In 2018, the latest wave of data collection was completed on the ‘08 Cohort (most of whom were
born in 2008 and formerly called the ‘Infant Cohort’). The first results from this data sweep were
published in three Key Findings in November 2018, focusing on physical, cognitive and socio-
emotional development. Data collection commenced for the next wave of the ‘98 Cohort (most of
whom were born in 1998 and formerly called the ‘Child Cohort’) and will be completed in 2019. In
2018, we also held the tenth Annual GUI conference. In total, 23 papers using GUI data were
presented at the conference, along with an introductory launch presentation, a keynote address by
Professor Ingrid Schoon of University College London and a policy session.
People
Sadly, 2018 saw the passing of three former members of the ESRI Council. Sean Cromien and Tom
Considine were both former Secretaries-General of the Department of Finance. Louden Ryan had
been Professor of Economics at Trinity College Dublin. All three brought their immense knowledge
and experience to the Council and made significant contributions in supporting the work of the
Institute.
The Council would like to commend the Institute’s staff whose expertise and commitment enables
the Institute to continually identify new solutions to policy challenges. The Council would also like to
thank the government departments and state agencies who support critical research programmes,
ESRI Members who provide valuable ongoing support, and the many stakeholders who engage with
the work of the Institute. Such support enables the Institute to work towards realising its vision of
‘Informed Policy for a Better Ireland’.
Padraig McManus Alan Barrett
Chairperson Director
4
2. SUMMARY OF STRATEGIC ACHIEVEMENTS IN 2018
Implementation of the Institute’s research strategy ensures that the Institute contributes evidence
to inform policy debate and decision-making.2 The Strategy outlines the Institute’s priority actions
for the period in the context of the Institute’s mission, vision, goals and values. These were
developed by the Council in agreement with the staff, following a comprehensive strategic process
in 2014. Our goals of research excellence and policy impact are being pursued through three sets of
strategic actions related to research programmes, collaborations and dissemination. They are being
supported by a further three sets of actions relating to funding, human resources and business
processes. These goals and actions help to ensure that the Institute stays focused on its key role as a
centre for excellence in policy-focused research in Ireland in the economic and social domains.
The Council oversees the implementation of the research strategy through twice-yearly reports to
the Business and Operations sub-committee. The reports cover the research agenda across the 12
research areas, as well as the implementation of the strategic actions.
This section briefly sets out the progress made in 2018 in delivering on the actions designed to meet
our goals of research excellence and policy impact. It looks at progress in relation to research
activity, followed by research supports – generating funding, developing human resources and
improving business processes.
2.1 Research activity
These strategic actions relate to developing research areas, building collaborations and improving
dissemination. In each case, we provide illustrations of developments that took place in 2018 in
relation to these strategic actions.
2.1.1 Developing research areas
Brexit continued to prompt new avenues of research in 2018 as different routes of potential impact
came into focus. For example, in one study we examined the share of imported products from the
UK in household spending and estimated the effects of a hard Brexit scenario, incorporating tariffs
and other increases in costs of trade between the EU and UK. Taking a completely different area, a
new research programme with the HSE will see the Institute developing a presence in the area of
well-being and health among children. Well-being is increasingly viewed as a more comprehensive
goal for policymakers compared to, for example, income or specific health or educational outcomes
so this is an important development for the ESRI.
2.1.2 Collaborations
We have expanded the number of joint conferences and workshops with policymakers partly so that
we can learn more about the issues that are current for them. One example was a workshop
convened by our health research team with the Department of Health on the topic of unit cost
measures in health systems. This added to longer-established joint conferences with colleagues from
the Departments of Engineering in UCC and UCD. We have also continued joint work with colleagues
2 A copy of the ESRI’s Research Strategy 2014-2018 (2014) can be downloaded at: https://www.esri.ie/publications/esri-
research-strategy-2014-2018
5
in the Departments of Finance and Housing, through which ESRI researchers co-author studies with
officials from those departments.
2.1.3 Dissemination
We have continued to improve our dissemination through our website and social media. The
website was redesigned in 2018. The site is now more user friendly and more visually appealing.
Over 4,000 publication records were migrated and the database was rebuilt. Research output is now
presented in a variety of ways across the site, including in thematic ‘showcases’. In another
development, the Institute produced and posted video content for the first time in 2018: the
Autumn QEC media briefing; the Winter QEC briefing; and the 2018 Geary Lecture, delivered by
Philip Lane, Governor of the Central Bank. Shorter thematic clips were also produced and shared on
social media, e.g. a short-term outlook for Ireland’s post-Brexit economic growth.
2.2 Research supports
These strategic actions relate to generating funding, developing human resources and improving
business processes. In each case we provide some illustrations of developments that took place in
2018 in relation to these strategic actions.
2.2.1 Generating funding
With so much of our funding now coming through multi-annual research programmes, ensuring the
continuation of programmes is a key objective. For this reason, the decision by the Environmental
Protection Agency to extend our agreement for another two years, with a commitment of €600,000,
was very welcome and will allow us to build on our work in the area of health and the environment.
Another objective is to broaden our funding base – in this context, a new project with the
Department of the Economy in Northern Ireland was also very welcome. The following existing
programmes were also renewed in 2018: Department of Finance; Department of Employment
Affairs and Social Protection; Irish Human Rights and Equality Commission; the Department of
Communications, Climate Action and Environment; and the European Migration
Network/Department of Justice and Equality.
2.2.2 Human resources
An employment engagement survey was completed in late 2017 and results were fed back to staff
and to the Council in early 2018. While the results were very positive overall, actions in specific areas
such as career development were recommended. Hence, an implementation plan was designed and
initiated in 2018. The year also saw the retirement of two research professors who had led
important areas within the ESRI for many decades. Succession plans had been put in place and these
came into operation over the summer months. The new leaders are now in place and the transitions
have been largely seamless.
2.2.3 Business processes
GDPR was a prominent issue in 2018. A large number of actions were taken including the
appointment of a Data Protection Officer and an audit by the internal auditors. More broadly, the
new ESRI Strategy 2019-2023 was completed towards the end of 2018 and was approved by the
Council. This new strategy will guide actions in the ESRI for the coming years. Our mission has been
6
amended and is now ‘to produce economic and social research on key issues facing Ireland and to
communicate research results to inform public policymaking and civil society’. This new focus on
communications is included recognising the need for the Institute to work proactively to ensure that
the lessons from our research are absorbed into the policy formation process.
3. RESEARCH IN 2018
This section provides an overview of our research activities and findings for 2018 and a brief
summary of research across the 12 research areas in 2018. Further details on the research and the
researchers involved are available on the ESRI website.
3.1 Behavioural Economics
RESEARCH HIGHLIGHTS
Irish consumers do not understand important aspects of Personal Contract Purchase (PCP)
plans. Consumers have difficulty telling the difference between good and poor PCP deals, or
understanding what happens at the end of the deal.
Research identified features of credit, investment and insurance products that either are
poorly understood by consumers or bias their decisions. There is evidence that many
consumers find modern financial products difficult to deal with, with implications for their
financial outcomes.
The behavioural economics research area revolves around the Behavioural Research Unit (BRU), a
team of multidisciplinary scientists who use controlled experiments to investigate economic
decisions and behaviours. The BRU has many research programmes that made progress in the
second half of 2018.
An experiment was undertaken to pre-test calorie posting on restaurant menus. This experiment,
funded by the Department of Health, employed eye-tracking technology to record how much
attention consumers give to calorie labels. The results showed that labels do affect food choices and
that the format affects the weight that consumers give them.
The BRU completed five laboratory experiments under the PRICE Lab research programme, funded
by the Competition and Consumer Protection Commission, Commission for Communications
Regulation (ComReg) and Commission for Energy Regulation. Topics included adoption of smart
meters, marketing of broadband speed, premium rate telecoms services, understanding mortgages
and mortgage switching, and biases in consumer choices towards options seen first. Results will all
be available in 2019.
The BRU completed and published a substantial review of international evidence on financial
product features for the Central Bank of Ireland. The work identified specific features of credit,
investment and insurance products that cause consumers difficulty.
7
The BRU completed three studies for the Pensions Authority. Multiple experiments revealed
shortcomings in people’s understanding of how pensions work, leading them to (i) underestimate
money growth; (ii) fail to respond to tax incentives; (iii) make inconsistent decisions about annuities.
The studies also tested interventions designed to address these problems.
The BRU completed a literature review for Sport Ireland on behavioural interventions designed to
increase physical activity in socially disadvantaged areas. This review informed designs for field trials
to be undertaken in 2019.
A statistical model was developed for the Department of Agriculture, Food and the Marine to
identify farms most at risk of breaching EU Nitrates regulations. The model is to be used to target
behavioural interventions designed to reduce pollution from Irish farms.
In a research programme funded by Irish Water, the BRU undertook a review of communications
and relevant evidence regarding take-up of remediation measures to remove lead from household
drinking water. Trials of interventions will follow.
In research funded by the OECD, a first experiment was undertaken in collaboration with the Water
Industry Commission for Scotland. The study showed that households dislike putting off inevitable
price increases. The BRU has designed a subsequent study to explore how households trade off
water charges against environmental and service benefits.
Lastly, experiments were designed to investigate how people assess environmental risks associated
with mineral extraction. This is the first step in a Horizon 2020 project funded by the European
Commission, undertaken in collaboration with the Geological Survey of Ireland.
3.2 Children and Young People
RESEARCH HIGHLIGHTS
Overweight and obesity continued to be a problem for children at 13 years of age. Twenty
per cent of 13-year-olds were overweight and 6 per cent were obese. Girls were significantly
more likely than boys to be overweight or obese.
23 per cent of 9-year-olds had an online profile. Boys’ profiles were largely related to
computer gaming and girls’ profiles were more likely to be related to social media.
Work in this area examines developmental outcomes for children and young people and how these
vary between different groups in society. Much of the research in this field at the ESRI is closely tied
to the Growing Up in Ireland project, the national longitudinal study of children.
Significant progress was made throughout the year in terms of data collection and the preparation
of databases for research. Interviewing was completed with over 8,000 9-year-olds and their families
in the project’s younger Cohort ‘08 (Infant Cohort), and interviewing commenced with the 20-year-
olds in the older Cohort ‘98 (Child Cohort). Databases delivered for use by other researchers
included the data for Cohort ‘98 at age 17 and for Cohort ‘08 at age 7/8.
8
In October, Katherine Zappone, T.D., Minister for Children and Youth Affairs, launched research
about the lives of 13-year-olds. Findings from the study indicated that children from more socially
disadvantaged backgrounds were at higher risk of poorer outcomes in terms of their physical health,
education and emotional and behavioural well-being.
The tenth Growing Up in Ireland Annual Research Conference was held in November and attended
by 200 people. Professor Ingrid Schoon, the Chair of Human Development and Social Policy at the
Institute of Education, University College London, delivered the keynote address titled ‘Navigating
the transition to adulthood: the role of structure and agency’.
At the conference, Minister Zappone launched four Key Findings reports, examining the lives of
9-year-old children from Cohort ‘08. These reports focused on children and their families; health and
development; school and learning; and socio-emotional development and relationships. These
recent findings indicate that there were big improvements since 2013 in the ability of families to
make ends meet. A positive picture of family relationships emerged, with most parents reporting a
high level of closeness with their children. Grandparents were important figures in the family lives of
most 9-year-olds: two-thirds of children saw a grandparent at least once a week. Children had a
broadly positive attitude to school. They generally had healthy diets but had a relatively high
consumption of some treat foods such as biscuits and cakes. However, only one-quarter of 9-year-
olds reported reaching the recommended level of physical activity.
A workshop was held at the conference on the use of data to inform policy, with contributions from
the ESRI, the DCYA and the National Disability Authority. In addition, ESRI researchers presented
papers at the conference on a wide range of topics including decision-making about higher
education, measuring cognitive ability at age 17, healthcare utilisation, cultural differences in
behaviour during pregnancy, the relationship between computer usage and academic performance,
socio-emotional well-being, adolescent psychotic experiences, the cost of childcare and tracking
physical activity levels over time.
3.3 Communications and Transport
RESEARCH HIGHLIGHTS
Research examined the factors most likely to influence the location of a new firm outside the
Dublin region. It found that areas with broadband are attractive to new firms if there is also
a highly educated workforce there.
Research examined the academic performance of children who owned a mobile phone from
a young age. Children who owned a mobile phone at age 9 performed less well in
standardised reading and maths tests at age 13.
The programme of research in communications is supported by the Department of
Communications, Climate Action and Environment and the Commission for Communications
Regulation. This programme is currently addressing four broad research topics:
1. Quantifying the effects of broadband in schools and the effects of programmes
intended to improve access of schools to broadband services;
9
2. Effects of wholesale broadband infrastructure on wider economic outcomes;
3. Modelling the market for broadband services;
4. Effects of regulation on aspects of market performance.
In collaboration with researchers in the Education area, research investigated the impact of digital
technologies within and outside school on academic skills and socio-emotional development among
children and young people. A first paper was finalised examining student views on the use of
personal devices in school and their views on online safety. Two papers drawing on Growing Up in
Ireland data were also completed. The first examines the extent to which early mobile phone
ownership among children impacts on their academic development as they move into adolescence.
The paper was presented at the ‘European Consortium of Educational Research’ conference in Italy
in September and was accepted by Economics of Innovation and New Technology. The second paper
considers how such phone ownership impacts on the socio-emotional development of children
between the ages of 9 and 13 years.
At the start of 2018, a paper was published on the factors affecting consumer switching in Irish
telecoms markets. The study found that a high proportion of telecoms consumers have been with
their supplier for a long time and never consider switching. Consumer resistance to switching is
broadly spread across society rather than focused among particular socioeconomic groups. Many
will only consider switching if they experience ‘bill shock’ or expect a substantial cost saving. Another
paper was published in the Journal of Regional Science. It found that the availability of broadband
infrastructure in an area helps attract new businesses, but only in places where educational
attainment is also high.
A paper about how broadband rollout affected the productivity of firms in Ireland’s services and
distribution sector was accepted by Telecommunications Policy. It shows that productivity gains from
broadband were confined to two sectors: information and communication services and
administrative and support service activities. Two new studies were completed during the year. One,
titled Distribution of benefits from choice in retail broadband services: who searches most? uses data
on broadband plan searches made on a commercial price comparison website, which can be linked
to Census data on local socioeconomic characteristics. A second paper, using data from the
Department of Business, Enterprise and Innovation, finds no evidence that broadband rollout
affected firm-level employment during the period of the Great Recession and its immediate
aftermath.
3.4 Education
RESEARCH HIGHLIGHTS
Children start primary school with different skills and capacities, with some children facing
greater challenges. The largest skills gap, both academic and socio-emotional, is between
children with disabilities or special educational needs and their peers.
Research examining if special classes operate as a form of segregation or inclusion for
students with special educational needs found that this depends on the type of leadership in
the school, the type of special class, and the severity of needs of students in the class.
10
The ESRI Education research area covers all levels of the Irish educational system, including early
childhood education, primary, second level, and further and higher education. Research in 2018
focused on the role and impact of digital technologies in the lives of children, the transition to
primary education, the use of digital cameras in teacher education, the Post Leaving Certificate (PLC)
programme, the Youthreach programme and changes to the Leaving Certificate grading scheme.
In collaboration with researchers in the Communications research area and as part of a programme
funded by the Department of Communications, Climate Action and Environment, research
investigated the impact of digital technologies within and outside school on academic skills
development among children and young people. Drawing on Growing Up in Ireland (GUI) data, one
paper found that children who received mobile phones earlier fared less well in their academic
development as they moved into adolescence. The education team also contributed an article on
digital technologies and student learning to the annual Yearbook of Education.
A report based on analyses of GUI, for the National Council for Curriculum and Assessment (NCCA),
shows that boys, children with special educational needs and children from disadvantaged families
face greater challenges in starting primary school. The findings suggest that supporting teachers to
build stronger relationships with all groups of children and to develop a positive classroom climate
could help ease children’s adjustment difficulties.
A study examining the early impact of the revised Leaving Certificate grading scheme was
completed. It was overseen by the Transitions Reform Steering Group and funded by the NCCA. The
study found that the changes led to an increase in uptake in higher-level subjects, but this increase
was less pronounced in DEIS schools and smaller schools. In addition to this study, the team
provided research support to the senior cycle review being conducted by the NCCA.
A review of the Youthreach programme, undertaken on behalf of SOLAS, was completed during
2018. Also funded by SOLAS, the evaluation of the PLC programme was published. This study
indicates enhanced entry to employment and higher education among those who have taken part in
the programme. However, it highlights potential ways of further improving the responsiveness of
provision to labour market opportunities.
Funded by Hibernia College, researchers have also been examining how digital cameras can support
student teachers during their school placement, undertaken as part of their teacher education.
Education researchers continued to be involved in international networks, including Understanding
Inequalities, funded by the UK-based Economic and Social Research Council, in addition to the
Directorate General for Education and Culture’s Network of Independent Experts in Education and
Training and its Expert Group on Graduate Tracking.
3.5 Energy and Environment
RESEARCH HIGHLIGHTS
An increase in the carbon tax of €5 per tonne of CO2 would, on average, increase consumer
prices by 0.13 per cent and producer prices by 0.08 per cent, and reduce emissions by only
11
1.2 per cent. The carbon tax would need to increase significantly to transition to a low-
carbon economy and meet the EU emissions targets.
Acceptance levels for wind farms and grid development projects increase most when local
residents are compensated via a simple community benefit scheme and do not partake in
ownership or risk sharing of the projects. People who prioritised environmental concerns
were the most willing to accept infrastructure development in their community.
Research in this area is financed by multi-annual research programmes. Energy and climate research
is funded by the Department of Communications, Climate Action and Environment, ESB, Ervia,
Eirgrid, SSE Ireland, Viridian, Commission for Regulation of Utilities, Science Foundation Ireland,
Sustainable Energy Authority of Ireland and the Gas Innovation Group/Gas Networks Ireland. An
environment research programme is funded by the Environmental Protection Agency and the
Health Service Executive, while the fisheries research programme is funded by Inland Fisheries
Ireland. Collaborations are ongoing with UCD, TCD, UCC, NUIG, QUB, and universities in the UK,
Germany, Finland, Portugal and the US. The research area co-hosted a workshop with UCD on risk in
integrated energy systems in March, a public seminar with TCD on energy transitions in April, and a
conference on energy policy with UCC in May.
The energy research programme encompasses four areas: market design and regulation; energy
services; energy infrastructure; and the interface with society and the environment. Research
findings in 2018 included:
Variable electricity energy prices induce larger demand flexibility but variable capacity prices
are more predictable from a supplier perspective.
The additional rent tenants are willing to pay for better energy efficiency is sufficient to pay
for the most common retrofit investments with a short payback period for landlords.
Acceptance levels for energy infrastructure development are highest when local residents
are compensated via community benefit schemes.
In November, the ESRI launched its new model to examine climate policy issues, the Ireland
Economy, Energy and Environment (I3E). I3E is a Computable General Equilibrium (CGE) model
describing the relationship between energy inputs and environmental impacts (focusing on
emissions), production sectors, households and the government. Initial research examined sectoral
and distributional impacts of increases in the carbon tax.
A focus of the environment research programme in 2018 was the interaction between health and
the environment. Among the research findings are that coastal views are associated with lower rates
of depression, and that urban residents in areas with intermediate amounts of green space have the
lowest obesity rates. Complementary research found that visitor facilities within urban parks, rather
than parks’ physical attributes, have a greater influence on park visitation rates. Other research this
year involved lab experiments, with one study finding that presenting a product’s environmental
attributes as a colour-coded scale, as opposed to text, resulted in consumers selecting more
environmentally friendly products.
12
The fisheries research programme examined preferences for fish stock conservation practices. Sea
bass anglers were generally in favour of stronger protective measures, whereas salmon anglers had
strongly divergent views. Analysis of salmon anglers’ logbook data identified the catch effectiveness
associated with fishing methods, licence types and locations, which is practical information for
fishery management decisions. During 2018, a monthly angler survey was carried out, eliciting
information on fishing activity (target species, frequency, catch, angling-related expenditure). These
data will facilitate future research.
3.6 Health and Quality of Life
RESEARCH HIGHLIGHTS
GAA players can spend up to 31 hours per week on their senior inter-county commitments
and compromise on other aspects of their lives to do so, according to a study examining how
the demands of playing inter-county affect players’ personal and professional lives, and their
club involvement.
Job stress among employees in Ireland doubled from 8 per cent in 2010 to 17 per cent in
2015. However, the level of job stress in Ireland was still below the average for ten Western
European countries in 2015 (19 per cent).
Health research focused on the themes of: the further development of a projection model for
healthcare demand and expenditure; alternative approaches to achieving universal healthcare; the
impact of the supply of community and long-stay care outside Irish hospitals on hospital length of
stay; costing post-stroke cognitive impairment; inequities in access to GP care; and the relationship
between the environment and health. Quality of life research focused on job stress in the Irish
workforce, occupational injury and illness within sectors, and participation in sports and physical
activity.
Under a major programme of research funded by the Department of Health, the ESRI further
developed the demand phase of the HIPPOCRATES projection model for healthcare demand and
expenditure to include analysis of demand for specialist mental health and disability services. In the
first phase of the development of the model to project expenditures, the ESRI analysed public
hospital expenditures. Further new applications and developments of the model included:
projections of demand for public and private hospital capacity; analysis of the shares of activity in
public and private hospitals; and projections of demand for the Nursing Home Support Scheme.
A three-year research project funded by the Health Research Board (HRB), which began in 2018, will
examine potential costs, outcomes and challenges of alternative approaches to achieving universal
healthcare. The focus of this project in its first year has been on defining the objectives of universal
healthcare, establishing metrics for its achievement and examining potential barriers to universality
in Ireland. A second HRB project on mortality in Ireland, using data from TILDA, also began in 2018.
Three further research projects funded by the HRB continued in 2018, on costing post-stroke
cognitive impairment, inequalities in access to GP services, and analysing need for and supply and
utilisation of health services by area in Ireland, and the relationship between the supply of services
outside hospitals to the use of services within hospitals.
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The research programme on environmental economics, funded by the Environmental Protection
Agency (EPA), examined the association between green and blue spaces and health outcomes. It
used geo-coded data on environmental features matched to health outcomes data from TILDA. A
project on noise and health commenced in collaboration with UCD and funded by the EPA.
In November, a study of job stress was published with the Health and Safety Authority. It found that
job stress increased significantly in Ireland between 2010 and 2015 and that emotionally demanding
work, high levels of time pressure and exposure to bullying, harassment or other poor treatment
were the strongest predictors of job stress. Sectoral specific studies on workplace injuries and illness
were also published during 2018.
Research commissioned by the Gaelic Athletic Association and the Gaelic Players Association was
published in September. It revealed the high time commitments of senior inter-county players and
the implications these had for work-life balance.
A project continued on financial security in the older population, funded by the Health Service
Executive. Research on the ageing workforce began as part of the research programme with the
Health and Safety Authority.
3.7 Internationalisation and Competitiveness
RESEARCH HIGHLIGHTS
Half of imports used by Irish-owned firms are sourced in the UK. This reliance on UK imports
could lead to high cost increases for Irish firms after Brexit.
Research finds limited evidence for a negative link between the presence of foreign-owned
firms and the productivity of domestic firms in the same industry or the same region.
Positive productivity spillovers come from supply chain linkages between domestic firms
investing in R&D and foreign affiliates of multinationals with headquarters based outside the
EU.
ESRI research in this area focuses primarily on the structural and microeconomic factors and policies
underlying competitiveness and economic growth in Ireland, and in other European countries, in the
context of international economic integration. In 2018, research in this area addressed the following
four themes:
Comparative performance of indigenous and multinational firms operating in Ireland
This study, funded by the European Commission, analysed and compared the performance of
indigenous and multinational firms operating in Ireland with respect to productivity, investment in
R&D and innovation, trade, and access to finance. Results suggested that enabling the integration of
local and multinational firms in European and global value chains could be beneficial for expanding
and diversifying the exports and imports of Irish-owned firms. The evidence provided by this study
has been used to put forward policy guidelines for Ireland in the context of the European Semester
in 2018.
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Impact of Brexit on trade and foreign direct investment
Research undertaken with the Department of Business, Enterprise and Innovation and Enterprise
Ireland found that half of imports used by Irish-owned firms were sourced in the UK, indicating that
Irish firms are very exposed to potential disruptions in the supply chain after Brexit. Additional
analysis suggested that Irish services imports from the UK could decline by 33 per cent and exports
by 45 per cent. Further research undertaken with the Department for the Economy in Northern
Ireland found that access to the EU Single Market was an important factor for the attractiveness of
the UK and other EU countries to foreign direct investment, particularly for investors from outside
the EU. Results showed that Brexit would reduce the UK’s attractiveness to FDI.
Cross-border trade
Research funded by InterTradeIreland examined the patterns of cross-border trade on the island of
Ireland, focusing on the role of supply chain links, measured by the extent of trade in intermediate
products and the contribution to overall trade of two-way traders (firms simultaneously importing
and exporting). The study showed a high degree of supply chain integration across the border that
could face disruption if Brexit increased costs of trading. Work was also undertaken on the
participation of firms in exporting and the role of small firms in cross-border trade to assess in more
detail the exposure of different types of firms across the island to Brexit.
The impact of the EU Single Market on trade, competition and productivity
This research funded by the European Commission found that compliance with the Single Market
legislation has been associated with increased trade, enhanced competition and productivity gains in
EU countries. Further results indicated that the quality of the Single Market legal framework was a
source of comparative advantage and export specialisation in EU countries.
3.8 Labour Markets and Skills
RESEARCH HIGHLIGHTS
Non-permanent employment is not an extensive feature of employment in Ireland. Research
found that by 2016 it had fallen back to pre-recession levels and now lies below the EU
average.
Post Leaving Certificate (PLC) courses have positive outcomes for students. Students who
have completed a PLC course are 16 per cent more likely to be in employment and 27 per
cent more likely to have progressed to higher education than those who left education after
the Leaving Certificate.
During 2018, research was undertaken on a range of issues and a number of new publications were
either released or finalised. The team launched research (funded by SOLAS) evaluating the PLC
programme. Two reports (funded by the Low Pay Commission) were published examining (a) the
impact of minimum wage changes on employment and hours and (b) the labour market transitions
of minimum wage workers. Reports were also published on barriers to social inclusion (funded by
Pobal), and contingent employment (funded by the Workplace Relations Commission).
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Research finalised during the year includes a study of the impact of minimum wage changes to the
distribution of income (funded by the Low Pay Commission); an evaluation of Intreo (funded by the
Department of Employment Affairs and Social Protection); a study measuring the impacts of local
development policies (funded by the Department of Rural and Community Development and
managed by Pobal); and three book chapters investigating skills mismatch in low- and middle-
income countries (funded by the International Labour Organization). Researchers also finalised
studies on consumption smoothing in retirement and the gender pensions gap, which were funded
by the Pensions Authority and the Pensions Council respectively. Work commenced on an
assessment of regional and sector-specific impacts of minimum wage changes (funded by the Low
Pay Commission). Researchers also continued to provide regular reports on Ireland’s labour market
progress to the European Commission’s European and Employment Policy Observatory and a study
examining the emigration of skilled labour in Ireland was published as part of this work.
The work on contingent, or non-permanent, employment sought to set an evidence base on both
the level and evolution of contingent employment in Ireland. The research found that the incidence
of contingent employment in Ireland ranged between 8 and 9 per cent of total employment
between 1998 and 2005. It increased to over 10 per cent following the recession before falling back
towards its pre-recession level in 2016. Similar patterns were observed throughout the EU. The
incidence of contingent employment in Ireland was also found to have remained consistently below
the EU average. When the study focused specifically on temporary employment, it found that this
type of employment was associated with a 20 per cent pay penalty. However, temporary employees
were found not to have lower levels of job satisfaction.
The research on barriers to social inclusion examined the individual and spatial characteristics of
individuals more likely to experience social disadvantage including (a) belonging to a jobless
household, (b) being a lone parent, (c) having a disability, (d) being homeless or affected by housing
exclusion and (e) belonging to an ethnic minority. Those with low levels of educational attainment
are more likely to face all five barriers. Individuals in urban areas were more likely than their rural
equivalents to report experiencing all barriers except having a disability. This finding suggested that
urban environments increase an individual’s likelihood of experiencing barriers irrespective of the
population density and deprivation level of an area.
3.9 Macroeconomics
RESEARCH HIGHLIGHTS
A hard Brexit would increase the cost of living for all households in Ireland by 2 per cent to
3.1 per cent – an annual increase of €892 to €1,360 per household. Costs would rise the
most for lower income households. These households spend a greater share of their
expenditure on food products, many of which are imported from the UK.
If the current pattern of regional growth in Ireland continues, it will lead to a further gap in
prosperity between Dublin and the rest of the country. In Dublin, it will lead to additional
housing demand and increased long-distance commuting.
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The macroeconomic research area in the ESRI has a wide-ranging remit to examine major issues
affecting the performance of the Irish economy. Regular assessments of economic developments
and consumer and business sentiment and forecasts of key economic indicators are central
components of this area.
In 2018, further contributions were made to the ongoing joint research programme with the
Department of Housing, Planning and Local Government. This programme focuses on estimating
housing demand, supply and affordability in order to draw policy implications. In June, a working
paper examined housing affordability in Ireland by looking at the distribution of housing costs across
households. The study identified key vulnerabilities among low-income households in the private
rental sector that pay, on average, 40 per cent of their income on housing costs. The paper
concludes that affordability challenges are a structural rather than a cyclical issue. The ESRI has
continued producing a hedonic rent index for the Residential Tenancies Board, which incorporates
details on rental properties across the country. This work enables the measurement of average rent
price growth at a county and electoral area level.
A number of projects were undertaken as part of the joint research programme with the
Department of Finance and the Office of the Revenue Commissioners. Researchers first examined
how different carbon tax rates would impact both the economy and the level of carbon dioxide
emissions. The research used a detailed matrix of the structure of the economy including productive
sectors, households and the government in order to quantify economic transactions, energy flows
and emissions. The study estimated how changes in the carbon tax would affect GDP and consumer
and producer prices, in addition to estimates of associated reductions in emissions that could be
achieved at each tax level.
Work under the same programme develops the capability of fiscal policy modelling by building a
fiscal satellite to the COSMO macroeconomic model and providing robust estimates of fiscal
multipliers by estimating and comparing different methodologies. Fiscal policy instruments can
potentially have strong macroeconomic effects. Well-founded quantitative estimates of the size of
their multiplier effects are therefore important for developing policy.
As part of the banking stream added to the Department of Finance and Office of the Revenue
Commissioners research programme in 2017, researchers undertook a detailed analysis of the
investment decisions of small and medium enterprises in Ireland. They investigated the extent to
which investment levels were being constrained by financing availability. Also as part of this research
programme, researchers carried out an assessment of the Irish mortgage market and the extent of
arrears among mortgage holders. They developed a detailed model of the determinants of arrears,
which can be used for future stress-testing scenarios.
The Quarterly Economic Commentary continued to convey the Institute’s outlook for the Irish
economy in 2018. While noting the substantial growth experienced over recent quarters, the
Commentary has been primarily concerned with underlying trends in growth and potential exposure
to external risk factors, such as Brexit. The Institute’s model of the macroeconomy, COSMO,
informed analyses of economic developments including the National Development Plan and various
Brexit scenarios.
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3.10 Migration, Integration and Demography
RESEARCH HIGHLIGHTS
Non-Irish nationals are matching Irish nationals on several key economic and social
indicators, but some groups remain disadvantaged, according to the latest integration
monitoring research. The employment rate was very low for African nationals. The
consistent poverty rate was very high for non-EU nationals.
The changeover to new asylum procedures and the housing crisis have contributed to
significant increases in the length of time it takes asylum applicants to move through the
asylum and reception systems.
Research in the area of Migration, Integration and Demography is conducted under a number of
strands. The first relates to the ESRI being Ireland’s National Contact Point for the European
Migration Network (EMN) and related funding, which is provided by the European Commission and
the Department of Justice and Equality.
In June, the EMN Ireland team published a study examining Ireland’s response to recent trends in
international protection applications. The study shows that new programmes were introduced in
Ireland during the ‘migration crisis’ period (2014-2016) and that a new system for processing asylum
applications was implemented from December 2016.
The study highlighted that the system for accommodating asylum applicants is under strain, in part
because the housing crisis is preventing refugees and others from moving on. The research also
noted steep increases in waiting times for first asylum application interviews. The report was
launched at an event that also marked ten years since the legal establishment of the European
Migration Network. The tenth anniversary was marked in Brussels with a high-level conference,
organised in part by EMN Ireland. In December, EMN Ireland launched the study Approaches to
Unaccompanied Minors Following Status Determination, at a conference with speakers drawn from
the Department of Justice and Equality, TUSLA and other stakeholders. In addition to the topic
reports, the EMN published the Annual Report on Migration and Asylum 2017: Ireland, a review of
asylum and migration policy developments.
The second strand of research in the area falls under the research programme on integration and
equality, funded by the Department of Justice and Equality. The first programme output, the
Monitoring Report on Integration 2018, considers immigrant integration in employment, education,
social inclusion and active citizenship, with a special theme on Muslim integration using the 2016
Census. David Stanton, T.D., Minister of State for Equality, Immigration and Integration, launched
the report in November. The second programme output, now being finalised, investigates data
needs for migrant integration from both administrative and survey sources, complementing the
activities of a working group under the Migrant Integration Strategy. A third report, currently under
review, examines residential patterns of immigrants in Ireland using geocoded data from the 2011
and 2016 Censuses. In May, researchers presented work on attitudes to diversity to a meeting of the
Migrant Integration Policy Committee.
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In other research, a chapter about immigrant student achievement and educational policy in Ireland
was published in an international comparative book. A journal article estimates the demographic,
labour market and welfare effects of 3.5 million displaced Syrians on the Turkish economy.
Researchers also participated in an international COST network, funded by COST Action with support
from the Horizon 2020 Framework Programme of the European Union. This network compiles
surveys of immigrants and ethnic minorities in Europe and evaluates indicators of migrant
integration.
3.11 Social Inclusion and Equality
RESEARCH HIGHLIGHTS
There is a significant gap between the rate of persistent deprivation experienced by
vulnerable adults and the rate experienced by other adults across 11 EU countries examined
in a study. The gap in Ireland was the largest and increased the most over time.
High childcare costs are linked to lower employment among mothers, with a 10 per cent
increase in childcare costs leading to 30 minutes less paid employment per week for
mothers.
Research on social inclusion and equality investigates factors influencing access to the material and
other resources required to participate in economic and social life and the processes that lead to
inequalities in opportunities and outcomes.
Four reports were published under the programme of research with the Irish Human Rights and
Equality Commission. Findings included:
Attitudes to diversity in the Irish-born population in the period 2002-2014 closely followed
the economic cycle, becoming more negative during the recession. Positive social contact
with minority groups was associated with more favourable attitudes.
Discrimination in access to housing in Ireland particularly affects people with disabilities,
lone mothers, young people and ethnic minority groups.
People with disabilities continue to experience higher levels of discrimination compared to
those without, and for almost half of them it has a serious impact on their lives.
Black non-Irish jobseekers are five times as likely to experience discrimination seeking work
as White Irish jobseekers.
Two further studies – a list experiment on attitudes to minorities and a study of care and unpaid
work – will be published in 2019.
Research funded by the Department of Employment Affairs and Social Protection (DEASP)
published in January examined the trends in poverty dynamics for selected European countries.
The report found a significant gap between the rate of persistent deprivation experienced by
vulnerable adults, including lone parents and adults with a disability, and the rate experienced by
other adults. The study found that the deprivation gap in Ireland is large and increased over time.
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Ongoing research for DEASP examines the association between social inclusion and access to
services. It will be published in 2019.
An analysis of social housing in Ireland funded by the Department of Housing, Planning and Local
Government finds evidence of a greater use of the private rented sector to source housing for low-
income families, and that the quality of social and privately rented accommodation has improved
since 2004.
In September, research was published as part of a research programme on community development
and social inclusion funded by Pobal. The study used data from the Growing Up in Ireland infant
cohort and found that high childcare costs in Ireland had a negative impact on mothers’ subsequent
paid working hours.
ESRI researchers contributed to several international initiatives in this research area, including a
chapter on the future of work in Rethinking Society for the 21st Century, published in July as part of
the International Panel on Social Progress. ESRI researchers were also awarded the Distinguished
Article Award 2018 by the Irish Journal of Sociology for work on the recession and economic stress in
Ireland.
3.12 Taxation, Welfare and Pensions
RESEARCH HIGHLIGHTS
Changes to the tax and benefit system between 2008 and 2018 led to greater income
reductions for women than for men, according to research examining the gender impact of
Irish budgetary policy.
A study found that Ireland’s long-run income growth has been evenly distributed. Ireland
was once towards the high end of the inequality spectrum for an advanced country but is
now close to the OECD average for income inequality.
This research area spans a variety of topics, with a focus on the distributional impact of tax-benefit
policy. Research in this area was supported by funding from the Departments of Employment
Affairs and Social Protection, Health, Children and Youth Affairs and Finance, as well as through
the grant-in-aid provided by the Department of Public Expenditure and Reform.
The Parliamentary Budget Office also funded work examining the gender impact of tax-benefit
policies. This research found little differing effect of tax-benefit policy by gender among single
people. However, within couples, the past decade of budgetary policy resulted in sharper reductions
to women’s disposable income compared to that of their spouse. This was particularly the case in
households with children. Team members presented results from this research to the Oireachtas
Committee on Budgetary Oversight. The ability to carry out gender impact analysis is now available
to government users of the ESRI tax-benefit model.
Research launched at the annual ‘Budget Perspectives’ conference, which the team organised and
contributed research to, examined how recent changes to lone-parent benefits impacted lone-
parent incomes and work incentives. It found small reductions in lone-parent incomes as a result of
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the changes. Other research launched at the conference looked at the long-run income distribution
in Ireland. It showed that it has remained remarkably constant over time, particularly in comparison
to a general worldwide trend of rising income inequality.
Other research outputs in the area of income distribution examined the implications of the Great
Recession for income mobility in Ireland and the impact of minimum wages on the gender pay gap in
Ireland and the UK. Research also examined the role of the tax-benefit system in stabilising
inequality in Ireland and other EU countries throughout the economic crisis. Research was carried
out in the area of childcare costs and subsidies and how such subsidies can affect work incentives
and maternal labour supply. Work on healthcare entitlements included examining approaches to
placing a value on Medical and GP Visit Cards and estimating the impact such entitlements have on
the financial incentive to work. Childcare subsidies were found to strengthen the financial incentive
to work while Medical and GP Visit Cards weaken it, as they are often withdrawn upon entering
employment.
Regular analysis of the distributive impact of budgetary policy continued. Budget 2019 was found to
have led to small losses for all income groups relative to growing wages. Analytical capability was
expanded to be able to examine indirect as well as direct taxation measures after the completion of
a collaborative project with the Department of Finance. This expansion of capability will be of use in
the future, particularly in light of anticipated rises in carbon taxes.
The programme of research with the Pensions Authority examined issues associated with pensions
and retirement in the older population in Ireland. A new programme with the Pensions Council
commenced, examining gender differences in pensions cover in Ireland.
4. NATIONAL STUDY OF CHILDREN (GROWING UP IN IRELAND)
Growing Up in Ireland is the national longitudinal study of children in Ireland. It is funded by the
Department of Children and Youth Affairs (DCYA), with a contribution from The Atlantic
Philanthropies. The research is conducted by a consortium of independent researchers at the
Economic and Social Research Institute (ESRI) and Trinity College Dublin.
The study follows almost 20,000 children throughout Ireland as they grow up. The objective is to
provide evidence to inform the development of effective policies and services for children, young
people and families. In order to do this, the study monitors the physical, cognitive and socio-
emotional development of children and identifies factors that help or hinder their well-being. Data
collection focuses on four areas: health and physical development; socio-emotional development;
cognitive and educational development; and (from 17 years of age) economic and civic participation.
Information is collected from children, their caregivers, principals and teachers by face-to-face
interviews and postal questionnaires. Growing Up in Ireland emphasises direct participation in the
study by children themselves from as early an age as possible, to ensure that it captures the voice of
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the child – in line with the UN Convention on the Rights of the Child. From the age of three, children
complete cognitive tests. As the children grow older, they record their views in detail, using age-
appropriate methods and questionnaires.
There are two cohorts in the study:
Cohort ‘98 (most of whom were born in 1998, formerly called the ‘Child Cohort’) consists of
8,500 children and their families first approached in 2007/08 when the study children were 9
years old. They were re-interviewed at ages 13, 17 and 20 (in 2011/12, 2015/16 and
2018/19).
Cohort ‘08 (most of whom were born in 2008, formerly called the ‘Infant Cohort’) were
recruited when the children were 9 months old in 2008/09. The families were re-interviewed
when the Study Children were 3, 5 and 9 years old (in 2010/11, 2013 and 2017/2018). There
was also a postal survey with the main caregiver in 2015/16 when the children were 7/8
years old. The DCYA is currently discussing with the ESRI the possibility of re-interviewing
this cohort at age 13 in 2021.
The availability of in-depth information on two cohorts of children born a decade apart, and covering
the period from 2007 to the present, makes it possible to address important questions about the
consequences of economic recession and recovery on outcomes for children and young people at
different ages. Identifying the factors that promote resilience and protect children from the effects
of adverse circumstances provides important insights for policy on children and families.
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5. RESEARCH AREA COORDINATORS AT 31 DECEMBER 2018
Macroeconomics (Professor Kieran McQuinn
and Professor Martina Lawless)
Internationalisation and Competitiveness
(Professor Iulia Siedschlag)
Energy and Environment (Professor John
Curtis and Professor Seán Lyons)
Communications and Transport (Professor
Seán Lyons)
Labour Markets and Skills (Professor Seamus
McGuinness)
Migration, Integration and Demography
(Professor Frances McGinnity and Dr Emma
Quinn)
Education (Professor Emer Smyth and
Professor Selina McCoy)
23
Taxation, Welfare and Pensions (Dr Claire
Keane)
Social Inclusion and Equality (Professor
Frances McGinnity, Professor Dorothy
Watson and Bertrand Maître)
Health and Quality of Life (Dr Anne Nolan,
Dr Maev-Ann Wren and Professor Helen
Russell)
Children and Young People (Professor
Dorothy Watson, Professor Emer Smyth and
Professor James Williams)
Behavioural Economics (Dr Pete Lunn)
24
6. STAFF AT 31 DECEMBER 2018
Director
Alan Barrett
Economic Analysis
Achim Ahrens
Matthew Allen-Coghlan
Adele Bergin
William Brazil
Philip Carthy
John Curtis
Kelly De Bruin
Judith Delaney
Philip Economides
Desta Fitiwi
Abian Garcia Rodriguez
Ankita Gaur
Gianluca Grilli
Elish Kelly
Dana Kirchem
Ilias Kostarakos
Martina Lawless
Muireann Á. Lynch
Seán Lyons
Ciarán Mac Domhnaill
Maria Martinez-Cillero
Seamus McGuinness
Kieran McQuinn (Head
of Division)
Conor O’Toole
Paul Redmond
Marianna Russo
Iulia Siedschlag
Rachel Slaymaker
Petr Spodniak
Manuel Tong Koecklin
Miguel Angel Tovar
Petros Varthalitis
Adele Whelan
Shiyu Yan
Aykut Mert Yakut
Tong Zhu
Social Research
Samantha Arnold
Joanne Banks
Martina Barjakova
Cameron Belton
Maxime Bercholz
Aoife Brick
Elaine Byrne
Sheelah Connolly
Merike Darmody
Nora-Ann Donnelly
Karina Doorley
Éamonn Fahey
Aoife Fitzpatrick
Laura Gormley
Sarah Groarke
Hannah Julienne
Claire Keane
Conor Keegan
Ciarán Lavin
Pete Lunn
Bertrand Maître
Selina McCoy
Frances McGinnity
Gretta Mohan
Sanna Nivakoski
Anne Nolan
Ivan Privalko
Emma Quinn
Mark Regan
Deirdre Robertson
Barra Roantree
Helen Russell
Bernadette Ryan
Anne Sheridan
Emer Smyth (Head of
Division)
Shane Timmons
Brendan Walsh
John R. Walsh
Richard Whyte
Maev-Ann Wren
Growing Up in Ireland
Elizabeth Burke
Stefan Engemann
Brigid Francis-Devine
Hannah Frankis
Caroline Goodwin
Anne Johnston
Eoin Keogh
Mary Kirwan
Eoin McNamara
Andrew Moore
Aoife Murphy
Aisling Murray
Desmond O’Mahony
Caoimhe O’Reilly
Marina Profir
Sarah Purcell
Amanda Quail
Owen Ryan
Fionnuala Waters
Dorothy Watson (Head of
Division)
Corporate Resources
Eleanor Bannerton
(Operations and Strategy
Manager)
Claire Buckley (HR
Manager)
Sarah Burns
Bernice Clancy
25
Liz Coyle
Cheryl Cullen
Lliana D’Emidio
Tara Featherstone
Maria Fitzgerald
Louise Gallagher
Elaine Goode
Dave Gorman
Adrienne Jinks
Rachel Joyce
Mark Magee
Ingrida Maguire
Francis McEvoy
Clare O’Neill
Charlie O’Regan (Head of
Finance)
Roxana Pedan
Ian Rice
Jackie Turner
26
7. ESRI COUNCIL – BIOGRAPHICAL INFORMATION
Padraig McManus, President and Chairperson
Padraig McManus became Chairperson of the Economic and Social Research Institute in January
2016. In 2017, he also chaired the Governance and Nominations sub-committee. Mr McManus has
been a member of the ESRI Council since July 2012. Previously, he was Chief Executive and member
of the Board of the ESB from July 2002 until 2012. He joined the ESB in 1973 and spent 15 years in
the company’s international businesses, later becoming Managing Director of ESB International and
Commercial Director of ESB. He is a Global Counsellor of the Conference Board of the United States.
He is Chair of the Curragh Racecourse Company.
Alan Barrett, Director
Alan Barrett first joined the ESRI in 1994 and became Director of the Institute in July 2015, at which
point he joined the Council. During his time with the Institute he was seconded to the Department of
Finance (2001-2003) and to The Irish Longitudinal Study on Ageing (TILDA) at Trinity College Dublin
(2011-2013). He was a member of the Irish Fiscal Advisory Council from 2011 to 2015. He is a
Research Fellow with IZA (Institute for the Study of Labor) in Bonn, Germany and is Co-editor of the
IZA Journal of European Labor Studies. He is an Honorary Fellow of the Society of Actuaries in
Ireland. He is also a member of the Climate Change Advisory Council.
John Buckley, former Comptroller and Auditor General
John Buckley joined the Council in February 2013 and chaired the Audit and Risk sub-committee in
2016. He is an accountant (ACCA) and a barrister. He has a degree in psychology and an MSc in
strategic management. He previously served as Comptroller and Auditor General.
Pádraig Dalton, Director General, Central Statistics Office
Pádraig Dalton joined the Council in July 2015. He is a career statistician who joined the Central
Statistics Office in November 1991, taking up the position of Director General in May 2012. He is a
member of the European Statistical System Committee (ESSC), which provides professional guidance
to the European Statistical System (ESS) for developing, producing and disseminating European
statistics. He is also Chair of the United Nations Economic Commission for Europe (UNECE) High
Level Group on the Modernisation of Official Statistics and is an ex-officio member of the National
Statistics Board (NSB).
Emer Gilvarry, Partner, Mason Hayes & Curran
Emer Gilvarry joined the Council in February 2014. She is the chairperson of Mason Hayes & Curran
and a partner in the dispute resolution team. Emer is experienced in a broad range of commercial
and financial services litigation. Emer specialises in project management and investigatory work and
acts as a legal advisor to corporates and boards on corporate safeguards and compliance
procedures. Emer is a member of the advisory board at UCD Michael Smurfit Graduate Business
School and a member of the Ireland Funds Board. In 2014, Emer was ranked in the Financial Services
50 and the Global 100 by Business & Finance. Emer is also a qualified mediator.
John Martin, former Director for Employment, Labour and Social Affairs, OECD
John Martin joined the Council in February 2015. He was Director for Employment, Labour and Social
27
Affairs at the OECD from 2000 to early 2013. From late 2013 to early 2016, he worked as a
consultant for the German Bertelsmann Foundation on a major cross-country project on the political
economy of reforming European labour markets. From 2005 to 2017, he was a member of the
French Prime Minister’s Employment Policy Council. He is a member of the National Statistics Board
of Ireland. His other professional roles include the following: Policy Associate of the Leverhulme
Centre for Research on Globalisation and Economic Policy at the University of Nottingham; Research
Fellow of the Institute for the Study of Labour (IZA) in Bonn; member of the Strategic Advisory Board
for the Kiel Institute for the World Economy Centre for Globalisation; member of the strategic board
of the Laboratoire Interdisciplinaire d’Évaluation des Politiques Publiques (LIEPP) at Sciences Po,
Paris; and member of the Irish government’s Labour Market Council. In 2013, he was awarded the
Presidential Distinguished Service Award for the Irish Abroad by the President of Ireland, Michael D.
Higgins.
David Moloney, Assistant Secretary, Department of Public Expenditure and Reform
David Moloney joined the Council in November 2010. He is Assistant Secretary at the Department of
Public Expenditure and Reform and Head of its labour market and enterprise division. His
responsibilities include the Irish Government Economic and Evaluation Service (IGEES).
Rónán Murphy, former Senior Partner, PwC and current board member, Davy, ICON PLC and Greencoat Renewables PLC
Rónán Murphy joined the Council in February 2017. He is a non-executive director of Davy,
Chairperson of ICON PLC and Greencoat Renewables PLC. He is also Chairperson of Business in the
Community Ireland. Rónán was previously Senior Partner of PwC Ireland, a position he was elected
to in 2007 and was re-elected to for a further four-year term on 1 July 2011. Rónán joined PwC in
1980 and was admitted to the partnership in 1992. In 1995, Rónán joined the Firm’s Leadership
Team and held a number of operational leadership roles, prior to being appointed as Partner in
Charge of the Firm’s Assurance practice in 2003, a position he held for four years. Rónán was a
member of the PwC EMEA Leadership Board from 2010 to 2015. Rónán completed a Bachelor of
Commerce and Masters in Business Studies at University College Dublin before qualifying as a
chartered accountant in 1982. Rónán is a founding member of the British Irish Chamber of
Commerce.
Sean O’Driscoll, former Chairman and Chief Executive of the Glen Dimplex Group
Sean O’Driscoll joined the Council in February 2017. He is a Bachelor of Commerce Graduate from
University College Cork (UCC) and a Chartered Accountant. On graduating from UCC in 1979, he
joined KPMG and was elected a Partner in 1989. He joined Glen Dimplex as Group Financial Director
in 1990, was appointed Deputy Chief Executive in 1994, Group Chief Executive Officer in 1998, and
Chairman in 2011. He is a non-executive Director of, and Advisor to, Glen Dimplex. He is a member
of the National Competitiveness Council of Ireland and the Trilateral Commission. He is a former
non-executive Director of Allied Irish Banks. He is the recipient of an OBE and a Légion d’honneur
Award.
Rowena Pecchenino, Professor of Economics, Maynooth University
Rowena Pecchenino joined the Council in February 2017. She is Professor of Economics at Maynooth
University. After earning her PhD from the University of Wisconsin she joined the Department of
Economics at Michigan State University, where she went on to be Professor and Department Chair.
28
At Maynooth University she has served as Head of the Department of Economics, Finance &
Accounting and Dean of the Faculty of Social Sciences. She has been a member of the Irish Research
Council, the Department of Health and Children Expert Group on Resource Allocation and Financing
in the Health Sector, and is currently the President of the Irish Economic Association. She has
published and continues to conduct research in a number of distinct fields in economics, from
defence economics to the conjunction of economics and theology. She has published widely in
journals such as the American Economic Review, the Economic Journal, and the Journal of Public
Economics.
Orlaigh Quinn,3 Secretary General of the Department of Business, Enterprise and Innovation
Dr Orlaigh Quinn is Secretary General of the Department of Business, Enterprise and Innovation.
Prior to this, she led on civil service and public sector reform in the Department of Public
Expenditure and Reform. Other areas she has been responsible for include EU/International Affairs,
HR and National Pensions Policy in the Department of Social Protection. She has also worked for the
European Commission and several other Government Departments in Ireland. She serves as a board
member on a wide range of organisations including Project Ireland 2040, the Labour Employer
Economic Forum, the Public Service Leadership Board, National Skills Council, Canal District
Innovation Group and Balance for Better Business. She is a former Visiting Research Fellow of Trinity
College Dublin and holds a Masters in Public Management and a Doctorate in Governance from
Queen’s University Belfast. She is the author of two books on public policy topics.
Patrick Rabbitte, former Minister and former leader of the Labour Party, Chairperson of Tusla – Child and Family Agency
Patrick Rabbitte joined the Council in February 2017. He is a former Irish Labour Party politician who
served as Minister for Communications, Energy and Natural Resources from 2011 to 2014. He
was Leader of the Labour Party from 2002 to 2007 and Minister of State for Commerce, Science and
Technology from 1994 to 1997. He is Chairperson of Tusla – Child and Family Agency.
Sally Shortall, Professor, Duke of Northumberland Chair of Rural Economy, Newcastle University
Sally Shortall joined the Council in May 2015. She is the Duke of Northumberland Chair of Rural
Economy, Newcastle University. She has served as an expert advisor to the UK Food Standard
Agency, the European Parliament, the European Commission and the OECD. She was recently
Principal Investigator on a report on women in agriculture in Scotland for the Scottish Government,
who have set up a Task Force to consider implementation of the recommendations of this report.
She is the President of the Executive Committee of the European Society for Rural Sociology. Her
research interests include rural women, rural development theory and practice, community and
stakeholder engagement in policy practice and how evidence is used to inform policy.
3 Joined Council in May 2018.
29
Appendix
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
(A Company limited by Guarantee and not having a Share Capital)
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
TABLE OF CONTENTS
Page
Council Members and Other Information 3
Council Report 4-9
Statement on Internal Control 10-11
Report of the Comptroller and Auditor General 12
Statement of Income and Expenditure and Retained Revenue Reserves 15
Statement of Comprehensive Income 16
Statement of Financial Position 17
Statement of Cash Flows 18
Notes to the Financial Statements 19 – 31
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
(A Company limited by Guarantee and not having a Share Capital)
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COUNCIL MEMBERS AND OTHER INFORMATION COUNCIL MEMBERS As at 31st December 2018 Padraig McManus (President and Chairperson) Alan Barrett Ronan Murphy* John Buckley* Sean O’Driscoll Padraig Dalton Rowena Pecchenino* Emer Gilvarry Pat Rabbitte John Martin* Orlaigh Quinn (appointed May 2018) David Moloney Sally Shortall Council Members are the Directors of the ESRI. *Audit Committee Members The ESRI Audit Committee is made up of four non-executive council members. AUDITORS The Comptroller and Auditor General 3A Mayor Street Upper Dublin 1 BANKERS Bank of Ireland Lower Baggot Street Dublin 2 Havbell 2 Grand Canal Square Grand Canal Harbour Dublin 2 SOLICITORS Hayes Solicitors Lavery House Earlsfort Terrace Dublin 2 SECRETARY and Charles O’Regan REGISTERED OFFICE Whitaker Square Sir John Rogerson’s Quay Dublin 2
The ESRI is a not for profit organisation and registered as a charity under registration number CHY5335
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
(A Company limited by Guarantee and not having a Share Capital)
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COUNCIL MEMBERS’ REPORT 2018 The Council members present their report and the financial statements for the year ended 31 December 2018. Principal activities The Economic and Social Research Institute (ESRI) undertakes research designed to provide knowledge relevant to solving the major economic and social issues in Ireland. Legal Status The ESRI is a company limited by guarantee, incorporated in 1960 under the Companies Acts 1908-1959 and registered in Ireland under registration number 18269. The registered office is Whitaker Square, Sir John Rogerson’s Quay, Dublin 2. While the ESRI is a limited liability company it is exempted from the obligation to use the word “limited” as part of its name. It is a not for profit organisation and registered as a charity under registration number CHY5335 Health & Safety The ESRI is committed to the implementation of the requirements of the Safety, Health and Welfare at Work Act, 1989 to ensure the health and safety of all employees and visitors to the Institute. A written safety statement has been prepared and is being implemented in accordance with the Act.
Equality The ESRI is an equal opportunities employer. Auditors
Under Section 5 of the Comptroller and Auditor General (Amendment) Act, 1993 it is the responsibility of the Comptroller and Auditor General to audit the financial statements of the Institute. In the opinion of the Council members there is no relevant audit information of which the company’s auditors are unaware. State of Affairs and Events since the Reporting Date In the opinion of the Council members, the state of the company’s affairs is satisfactory and there had been no material change since the balance sheet date. Governance The ESRI enjoys full academic independence and is answerable ultimately to its subscribing members, currently over 300 companies and individuals. The Council is the effective board of directors of the Institute. Council meetings are attended by the Company Secretary and two representatives of the Management Committee in a non-voting capacity. Apart from the Director of the Institute, who is an ex-officio member, ESRI Council members are not remunerated. The regular day-to-day management, control and direction of the ESRI are the responsibility of the Director and the senior management team. The Director and the senior management team must follow the broad strategic direction set by the Council, and must ensure that all Council members have a clear understanding of the key activities and decisions related to the entity, and of any significant risks to arise. The Director acts as a direct liaison between the Council and management of the ESRI.
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
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The ESRI is subject to the rules that apply to state organisations in relation to prompt payments, disclosure, risk management and tax clearance. The ESRI also comes under the remits of the Office of the Ombudsman and the Ombudsman for Children. Council Responsibilities The role and responsibilities of the Council are set out in the ESRI’s Articles of Association. The following key matters are reserved for Council decision
Approval of the organisations long-term objectives and operational strategy.
Approval of significant acquisitions and investments.
Approval of major contracts.
Approval of the annual operating and capital expenditure budgets.
Approval of the Annual Report and Financial statements.
Appointment and remuneration of the Director. The Council members are required to prepare financial statements which give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for the year. In preparing those financial statements, the council members are required to:
select suitable accounting policies and then apply them consistently.
make judgements and estimates that are reasonable and prudent.
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
disclose and explain any material departures from applicable accounting standards.
The Council members confirm that they have complied with the above requirements. The Council members are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2014. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention of fraud and other irregularities. The Council is responsible for approving the annual plan. An evaluation of the performance of ESRI by reference to the annual plan was carried out on 26 February 2019. To ensure that adequate accounting records are kept in accordance with Sections 281 to 285 of the Companies Act 2014, the company has employed appropriately qualified personnel and has maintained appropriate computerised accounting systems. The accounting records are located at the company’s registered office at Whitaker Square, Sir John Rogersons Quay, Dublin 2. The Council considers that the financial statements of the ESRI give a true and fair view of the financial performance and the financial position of the ESRI at 31 December 2018.
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
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Council Structure The Council currently consists of a Chairperson and twelve other members. Members of the Council appointed since 2015 are appointed for an initial period of 3 years. The Council met 3 times in 2018. The table below details the appointment period for current members:
Council Member Role Date Appointed
Mr Padraig McManus Chairperson 11/07/2012
Mr David Moloney Member 23/11/2010
Mr John Buckley Member 19/02/2013
Ms Emer Gilvarry Member 18/02/2014
Mr John Martin Member 24/02/2015
Mr Padraig Dalton Member 24/02/2015
Professor Sally Shortall Member 26/05/2015
Professor Alan Barrett Member 01/07/2015
Mr Ronan Murphy Member 28/02/2017
Mr Sean O’Driscoll Member 28/02/2017
Professor Rowena Pecchenino Member 28/02/2017
Mr Pat Rabbitte Member 28/02/2017
Dr Orlaigh Quinn Member 22/05/2018
Note: Mr Alan Barrett is the current Director of the ESRI and sits on the Council for the duration of his term as Director. The Council has established three committees, as follows:
1- Audit and Risk Committee: comprises four Council members. The role of the Audit and Risk Committee
(ARC) is to support the Council in relation to its responsibilities for issues of risk, control and governance
and associated assurance. The ARC is independent from the financial management of the organisation. In
particular, the Committee ensures the internal control systems including audit activities are monitored
actively and independently. The ARC reports to the Council after each meeting.
The members of the Audit and Risk Committee are: Mr John Buckley (Chairperson), Mr John Martin, Professor Rowena Pecchenino and Mr Ronan Murphy. Professor Alan Barrett attends the ARC in his capacity as Director of the Institute. There were three meetings of the ARC in 2018. The Chairperson of the Council is satisfied that the ARC discharged its role with fewer than four meetings in the year.
2- Business and Operations Committee: comprises four Council Members. The members of this committee
are: Ms Emer Gilvarry (Chairperson), Mr Sean O’Driscoll Mr Pat Rabbitte and Mr Alan Barrett. There were
four meetings of this committee in 2018. Professor Hannah McGee and Ms Brid O’Brien also served on this
committee until May 2018.
3- Nominations committee: comprises three Council Members. The members of this committee are: Mr
Padraig McManus (Chairperson), Professor Alan Barrett and Ms Emer Gilvarry. There were no meetings of
this Committee in 2018.
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
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Schedule of Attendance, Fees and Expenses A schedule of attendance at the Council and Committee meetings for 2018 is set out below:
Council Audit and Risk Committee
Business and Operations Committee
Fees Expenses
Number of Meetings 3 3 4
Attendance
Alan Barrett 3 3 4 - -
John Buckley 3 3 - -
Padraig Dalton 0 - -
Emer Gilvarry 3 4 - -
John Martin 2 3 - €1364
Hannah McGee 1 1 - -
Padraig McManus 3 - -
David Maloney 2 - -
Ronan Murphy 3 2 - -
Brid O’Brien 1 2 - -
Sean O'Driscoll 2 3 - -
Rowena Pecchenino 2 3 - €124
Orlaigh Quinn 3
Pat Rabbitte 3 4 - -
Sally Shortall 2 - €760
Council Members do not receive a fee. Internationally based Members are repaid expenses incurred in attending Council and other Committee meetings. Key Personnel Changes Dr Orlaigh Quinn was appointed to the Council on 22 May 2018. Prof Hannah Magee and Ms Brid O’Brien resigned from the Council on 22 May 2018 on completion of their term of appointment. Disclosures required by the Code of Practice for the Governance of State bodies (2016) The Council is responsible for ensuring that the ESRI has complied with the requirements of the Code of Practice for the Governance of State Bodies (“the code”) as published by the Department of Public Expenditure and Reform in August 2016. The following disclosures are required by the Code:
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
(A Company limited by Guarantee and not having a Share Capital)
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Employee short-term benefits breakdown Range of total employee benefits Number of Employees
From To 2018 2017
€60,000 €69,999 3 11
€70,000 €79,999 4 3
€80,000 €89,999 6 7
€90,000 €99,999 6 5
€100,000 €109,999 4 7
€110,000 €119,999 7 -
€120,000 €129,999 1 2
€130,000 €139,999 2 -
€140,000 €149,999 - 3
€150,000 €159,999 1 -
€160,000 €169,999 - 1
€170,000 €179,999 1 -
Note: For the purposes of this disclosure, short-term employee benefits in relation to services rendered during the reporting period include salary, overtime allowances and other payments made on behalf of the employee, but exclude employer’s PRSI. Consultancy Costs Consultancy costs include the cost of external advice to management and exclude outsourced “business-as-usual” functions.
2018 €
2017 €
Legal 20,461 3,491
Financial 30,288 10,300
HR and Pension 12,060 17,251
Other 29,809 23,151
Total 92,618 54,193
Legal Costs and Settlements There were no costs in relation to settlements in the period. Legal costs of €20,461 (2017: €3,491) were incurred in 2018.
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
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Travel and Subsistence Expenditure Travel and subsistence expenditure is categorised as follows:
2018 €
2017 €
Domestic
Council 372 115
Employees 11,559 18,123
International
Council 1,875 2,189
Employees 91,190 132,052
Total 104,996 152,479
Hospitality Expenditure The Income and expenditure account includes the following expenditure:
2018 €
2017 €
Staff Sports & Social fund /Hospitality 9,675 9,165
Client Hospitality 225 804
Total 9,900 9,969
Statement of Compliance The ESRI has complied with the requirements of the Code of Practice for the Governance of State Bodies, as published by the Department of Public Expenditure and Reform in August 2016, with the following exceptions: The Procedures for the Identification and Selection of Board Members The ESRI Council members are elected by the members of the Institute as set out in the Articles of Association and not appointed through the Public Appointments Service process. Information and Communications Technology Expenditure The ESRI has been granted a derogation from Circular 02/2016 Arrangements for Digital and ICT-related Expenditure in the Civil and Public Service as it could impose an unwarranted business burden on the ESRI. Signed on behalf of the Council Padraig McManus Chairperson of the Council Date: 5 July 2019
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STATEMENT ON INTERNAL CONTROL
Scope of Responsibilities On behalf of the Council of The Economic and Social Research Institute, I acknowledge our responsibility for ensuring that an effective system of internal control is maintained and operated. This responsibility takes account of the requirements of the Code of Practice for the Governance of State Bodies. Purpose of the System of Internal control
The system of internal control is designed manage risk to a tolerable level rather than to eliminate it. The system can therefore only provide reasonable and not absolute assurance that assets are safeguarded, transactions authorised and properly recorded, and that material errors or irregularities are either prevented or would be detected in a timely period. The system of internal control, which accords with guidance issued by the Department of Public Expenditure and Reform, has been in place in the ESRI for the year ended 31 December 2018 and up to the date of approval of the financial statements except for the internal control issue outlined below. Capacity to Handle Risks The ESRI has an Audit and Risk Committee (ARC) comprising four Council members with financial and audit expertise, one of whom is the Chair. The ARC met three times in 2018. The ESRI has outsourced the internal audit function, which operates in accordance with a charter that takes account of the guidance set out in the Code of Practice for the Governance of State Bodies 2016. The work programme of the internal audit is informed by analysis of the risk to which the Institute is exposed. The analysis of risk and the internal audit plans are endorsed by the Audit Committee and approved by the Council. The ARC has developed a risk management policy which sets outs it risk appetite, the risk management processes in place and details the roles and responsibilities of staff in relation to risk. The policy has been issued to all staff who are expected to work within the ESRI’s risk management policies, to alert management on emerging risks and control weaknesses and assume responsibility for risks and controls within their own area of work. Risk and control Framework The Council has taken steps to ensure an appropriate control environment by
clearly defining management responsibilities and
establishing formal procedures for reporting significant control failures and ensuring appropriate corrective
action.
The system of internal control is based on a framework of regular management information, administrative procedures including segregation of duties and a system of delegation and accountability. In particular it includes:
comprehensive budgeting system with an annual budget which is reviewed and agreed by the Council;
regular reviews by the Council of periodic and annual financial reports which indicate financial performance
against forecasts;
setting targets to measure financial and other performance;
clearly defined capital investment control guidelines;
formal project management disciplines;
systems to safeguard the assets.
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Ongoing monitoring and Review Formal procedures have been established for monitoring control processes and control deficiencies are communicated to those responsible for taking corrective action and to the management and the Council, where relevant, in a timely way. At least annually, the Internal Auditor provides the Council with a report of internal audit activity. The report includes the Internal Auditor’s opinion on the sufficiency and operation of internal control to mitigate and/or manage risks.
I confirm that the following ongoing monitoring systems are in place:
1- key risks and related controls have been identified and processes have been put in place to monitor the operation of those key controls and report any identified deficiencies,
2- reporting arrangements have been established at all levels where responsibility for financial management has been assigned, and
3- there are regular reviews by senior management of periodic and annual performance and financial reports which indicate performance against budgets/forecasts.
Procurement I confirm that the ESRI has procedures in place to ensure compliance with current procurement rules and guidelines. Matters arising regarding controls over procurement are highlighted under control issues below. Review of Effectiveness The Council’s monitoring and review of the effectiveness of the system of internal control is informed by the work of the internal auditor, the Audit Committee which oversees the work of the internal auditor, the executive managers within the Institute who have responsibility for the development and maintenance of the financial control framework, and comments made by the Office of the Comptroller and Auditor General in management letters or other reports. The Institute continues to develop its system of internal control through the refining of business continuity procedures and the ongoing development of the risk management framework. I confirm that for the year ended 31 December 2018 the Council has conducted a review of the effectiveness of the system of internal control. The review was finalised by the Audit and Risk Committee on 13 February 2019 and considered by the Council on 26 February 2019. Internal Control Issues Procurement Certain survey services were not tendered for in the period under review. An amount of €95,830 was paid to Amarach in respect of survey services for a specific project. As the funding for this project was uncertain due to the withdrawal of the main funder, it was not feasible to operate a tender process as planned in 2018. The project came to a completion in April 2019. Signed on behalf of the Council Padraig McManus
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Chairperson of the Council Date: 5 July 2019
Ard Reachtaire Cuntas agus Ciste Comptroller and Auditor General
Report for presentation to the Houses of the Oireachtas
Economic and Social Research Institute
Opinion on financial statements I have audited the financial statements of the Economic and Social Research Institute (a company limited by guarantee and not having a share capital) for the year ending 31 December 2018 as required under the provisions of section 5 of the Comptroller and Auditor General (Amendment) Act 1993. The financial statements comprise the statement of income and expenditure and retained revenue reserves, the statement of comprehensive income, the statement of financial position, the statement of cash flows and the related notes, including a summary of significant accounting policies. In my opinion the financial statements • give a true and fair view of the assets, liabilities and financial position of the Economic and Social Research Institute at 31 December 2018 and of its income and expenditure for 2018 • have been properly prepared in accordance with Financial Reporting Standard (FRS) 102- The Financial Reporting Standard applicable in the UK and the Republic of Ireland, and • have been properly prepared in accordance with the Companies Act 2014. Basis of opinion I conducted my audit of the financial statements in accordance with the International Standards on Auditing (ISAs) as promulgated by the International Organisation of Supreme Audit Institutions. My responsibilities under those standards are described in the appendix to this report. I am independent of the company and have fulfilled my other ethical responsibilities in accordance with the standards. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Conclusions related to going concern The Council members have prepared the financial statements on a going concern basis. As described in the appendix to this report, I conclude on • the appropriateness of the use of the going concern basis of accounting by the directors and • whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the company's ability to continue as a going concern.
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I have nothing to report in that regard. Opinion on matters prescribed by the Companies Act 2014 Based solely on the work undertaken in the course of the audit, I report that in my opinion • the information given in the directors' report is consistent with the financial statements, and • the directors' report has been prepared in accordance with the Companies Act 2014 I have obtained all the information and explanations that I consider necessary for the purposes of my audit. In my opinion, the accounting records of the Economic and Social research Institute were sufficient to permit the financial statements to be readily and properly audited, and the financial statements are in agreement with the accounting records. The Companies Act 2014 also requires me to report if, in my opinion, the disclosures of Council members’ remuneration and transactions required by sections 305 to 312 of the Act are not made. I have nothing to report in that regard. Report on Information other than the financial statements, and on other matters The Council members have presented a report and a statement on internal control with the financial statements. My responsibilities to report in relation to such information, and on certain other matters upon which I report by exception, are described in the appendix to this report. I have nothing to report in that regard. Seamus McCarthy Comptroller and Auditor General 10 July 2019
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Appendix to the report Responsibilities of the Directors The Council members’ report sets out the directors’ responsibilities. The directors are responsible for
the preparation of financial statements in the form prescribed under the Companies Act 2014
ensuring that the financial statements give a true and
fair view in accordance with FRS 102
ensuring the regularity of transactions
assessing whether the use of the going concern basis of accounting is appropriate, and
such internal control as they determine is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Responsibilities of the Comptroller and Auditor General I am required under section 5 of the Comptroller and Auditor General (Amendment) Act 1993 to audit the financial statements of the Economic and Social Research Institute and to report thereon to the Houses of the Oireachtas. My objective in carrying out the audit is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud or error. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout the audit. In doing so, I identify and assess the risks of material misstatement of the
financial statements whether due to fraud or error; design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
I obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate on the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls
I evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related disclosures.
I conclude on the appropriateness of the use of the going
concern basis of accounting and, based on the audit evidence obtained, on whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Economic and Social Research Institute’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my report to the related disclosures in the financial statements or, if such disclosures are inadequate to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my report. However, future events or conditions may cause the company to cease being a going concern
I evaluate the overall presentation, structure and content of
the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. Information other than the financial statements. My opinion on the financial statements does not cover the other information presented with those statements, and I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, I am required under the ISAs to read the other information presented and, in doing so, consider whether the other information is materially inconsistent with the financial statements or with knowledge obtained during the audit, or if it otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. Reporting on other matters My audit is conducted by reference to the special considerations which attach to State bodies in relation to their management and operation. I report if there are material matters relating to the manner in which public business has been conducted. I seek to obtain evidence about the regularity of financial transactions in the course of the audit. I report if there is any material instance where public money had not been applied for the purposes intended or where transactions did not conform to the authorities governing them.
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
(A Company limited by Guarantee and not having a Share Capital)
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STATEMENT OF INCOME AND EXPENDITURE AND RETAINED REVENUE RESERVES FOR THE YEAR ENDED 31 DECEMBER 2018
Notes 2018
€
2017
€ Income Oireachtas Grant -Department of Public Expenditure and Reform. Vote 11 Subhead A3 Research Income Miscellaneous Income Total Income
2 3
2,775,000 8,335,658
238,765 11,349,423
2,675,000 8,526,321
334,240 11,535,561
Expenditure Salaries Retirement Benefit Costs Direct Project Expenses Establishment Administration Total Expenditure
4 17
5 6 7
7,555,716 773,417
1,479,053 770,257 623,740
11,202,183
6,818,816 805,974
2,456,537 732,534
527,517 11,341,378
Surplus for the Year before Appropriations/Transfers
147,240 194,183
Transfer from Capital Reserve Surplus/(Deficit) for the Year after Appropriations /Transfers Balance Brought Forward at 1 January Balance Carried Forward at 31 December
19 19 19
85,000 232,240
892,303
1,124,543
85,000 279,183
613,120
892,303
The Statement of Cash Flows and notes numbered 1 to 22 form an integral part of these financial statements and should be read in conjunction therewith. Padraig McManus Council Member: Date: 5 July 2019 Alan Barrett Council Member: Date: 5 July 2019
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STATEMENT OF COMPREHENSIVE INCOME
2018
€
2017
€ Surplus/(Deficit) for the Year after Appropriations/Transfers
232,240 279,183
Experience gains/(losses) on pension scheme liabilities
(1,761,000)
911,000
Change in pension liability assumptions Total actuarial gain/(loss) in the year
(1,689,000) (3,450,000)
(782,000) 129,000
Adjustment to deferred exchequer pension funding
3,450,000
(129,000)
Total Gains/(Losses) recognised for the year
______ 232,240
________ 279,183
The Statement of Cash Flows and notes numbered 1 to 22 form an integral part of these financial statements and should be read in conjunction therewith. Padraig McManus Council Member: Date: 5 July 2019 Alan Barrett Council Member: Date: 5 July 2019
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STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018
Notes
as at 31 December
2018 €
as at 31 December
2017 €
FIXED ASSETS Property Plant and Equipment
8
11,727,827
11,980,843
CURRENT ASSETS
Inventory Receivables Cash and cash equivalents
9 10
3,352 1,959,929
947,672 2,910,953
2,661 1,934,081 2,523,424 4,460,166
CURRENT LIABILITIES Payables (Amounts falling due within one year)
11
2,628,928
4,143,594
NET CURRENT ASSETS TOTAL ASSETS less CURRENT LIABILITIES Long Term Loans (Amounts falling due after one year) Long Term Pension Liability Less Deferred Pension Asset NET ASSETS
12
17
17
282,025
12,009,852
7,660,309
(55,997,000)
55,997,000 ________ 4,349,543
316,572
12,297,415
8,095,112
(54,913,000)
54,913,000 ______
4,202,303 Representing
Retained Revenue Reserves 19 1,124,543 892,303 Capital Reserve 19 3,225,000 3,310,000 4,349,543 4,202,303
The Statement of Cash Flows and notes numbered 1 to 22 form an integral part of these financial statements and should be read in conjunction therewith. Padraig McManus Council Member: Date: 5 July 2019 Alan Barrett Council Member: Date: 5 July 2019
18
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
(A Company limited by Guarantee and not having a Share Capital)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2018
2018 €
2017 €
Net Cash Flows from Operating Activities Excess Income over Expenditure
147,240
194,183
Depreciation and Impairment of Property, Plant and Equipment
416,485 389,115
(Increase)/Decrease in Receivables (25,848) (147,324) Increase/(Decrease) in Payables (1,514,666)
1,614,975 (Increase)/Decrease) in Inventory (691) 649 Interest payment on mortgage in year 56,083 58,552 Bank Interest Received 0 (189) Net cash inflow/(outflow) from Operating Activities (921,397) 2,109,961
Cash Flows from Investing Activities
Payments to acquire Property, Plant and Equipment Net Cash Flows from Investing Activities
Cash Flows from Financing Activities Mortgage repayments in year Interest payment on mortgage in year Bank Interest Received Net Cash Flows from Financing Activities
Net Increase/(Decrease) in cash and cash equivalents
Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December
(163,469) (163,469)
(434,803) (56,083)
- (490,886)
(1,575,752)
2,523,424
947,672
(157,108) (157,108)
(396,186) (58,552)
189 (454,549)
1,498,304
1,025,120 2,523,424
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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
1. Accounting Policies
The principal accounting policies adopted by the Institute in determining the amounts included in the
Statement of Financial Position and in determining the results for the year are as follows. They have
all been applied consistently throughout the year and for the preceding year.
a) General Information
The Institute was established on the 24th June 1960 as a Company Limited by Guarantee and was known
then as the Economic Research Institute. The title of the Institute was later changed to the Economic
and Social Research Institute. The head office is at Whitaker Square, Sir John Rogerson’s Quay.
The Institute produces research that contributes to understanding economic and social change in the
new international context and that informs public policymaking and civil society in Ireland.
b) Statement of Compliance
The financial statements of the Institute for the year ended 31 December 2018 have been prepared in
accordance with FRS 102, the financial reporting standard applicable in the UK and Ireland issued by
the Financial Reporting Council (FRC), as promulgated by Chartered Accountants Ireland.
c) Basis of Preparation
The financial statements have been prepared under the historical cost convention, except for certain
assets and liabilities that are measured at fair values as explained in the accounting policies below. The
following accounting policies have been applied consistently in dealing with items which are
considered material in relation to the Institute’s financial statements.
d) Revenue
Oireachtas Grants
Revenue is recognised on an accruals basis; one exception to this is the case of Oireachtas Grants which
are recognised on a cash receipts basis.
Research Income
Research income represents the value of work completed on individual projects during the year.
Where the value of work completed on a project exceeds the amounts received or invoiced, the
difference is included in the Statement of Financial Position under receivables as work in progress. If
the value of work completed is less than the amounts received, the difference is included in the
Statement of Financial Position under creditors as deferred income.
Capital Grants
Capital grants from the Department of Public Expenditure and Reform received towards the cost of
tangible assets are transferred to the Capital Reserve and amortised in line with depreciation on the
associated assets.
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e) Property Plant and Equipment Property Plant and Equipment are stated at cost less accumulated depreciation, adjusted for any
provision for impairment. Depreciation is provided on all property, plant and equipment, other than
freehold land and artwork, at rates estimated to write off the cost less the estimated residual value of
each asset on a straight line basis over their estimated useful lives, as follows:
Computer equipment 33.3%
Other equipment, fixtures and fittings 20%
Building 2%
Residual value represents the estimated amount which would currently be obtained from disposal of an
asset, after deducting estimated costs of disposal, if the asset were already of an age and in the condition
expected at the end of its useful life.
If there is objective evidence of impairment of the value of an asset, an impairment loss is recognised in
the Statement of Income and Expenditure and Retained Revenue Reserves in the year.
f) Receivables
Receivables are recognised at fair value, less a provision for doubtful debts. The provision for doubtful
debts is a specific provision, and is established when there is objective evidence that the Institute will
not be able to collect all amounts owed to it. All movements in the provision for doubtful debts are
recognised in the Statement of Income and Expenditure and Retained Revenue Reserves.
g) Employee Benefits
Short- term Benefits
Short-term benefits such as holiday pay are recognised as an expense in the year, and benefits that are
accrued at year-end are included in the Payables figure in the Statement of Financial Position.
Retirement Benefits
A defined benefit scheme is in place for all employees of the ESRI, as appropriate. The assets of the
Institute’s pension schemes were transferred to the National Pension Reserve Fund (NPRF) on the 30th
June 2010 under the provisions of the Financial Measures (Miscellaneous Provisions) Act 2009. The
scheme continues to operate for existing members with no change to benefits or associated provision
for members.
The Institute also operates the Single Public Services Pension Scheme (“Single Scheme”) which is a
defined benefit scheme for pensionable public servants appointed on or after 1 January 2013. Single
Scheme members’ contributions are paid over to the Department of Public Expenditure and Reform
(DPER).
Pension costs reflect pension benefits earned by employees, and are shown net of staff pension
contributions which are remitted to the Department of Public Expenditure and Reform. An amount
corresponding to the pension charge is recognised as income to the extent that it is recoverable.
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The Institute is required to make an annual employer contribution to the Department of Public
Expenditure and Reform after taking account of pension benefits paid in the year.
Actuarial gains or losses arising on scheme liabilities are reflected in the Statement of Comprehensive
Income, and a corresponding adjustment is recognised in the amount recoverable from the Department
of Public Expenditure and Reform.
The financial statements reflect at fair value the assets and liabilities arising from the Institute’s pension
obligations and any related funding and recognises the costs of providing pension benefits in the
accounting periods in which they are earned by employees. Retirement benefit scheme liabilities are
measured on an actuarial basis using the projected unit credit method.
h) Loans
Loans are recognised initially at the transaction price (present value of cash payable, including
transaction costs). Loans are subsequently stated at amortised cost. Interest expense is recognised on
the basis of the effective interest method and is included in finance costs.
Loans are classified as current liabilities unless there is a right to defer settlement of the loan for at least
12 months from the reporting date.
i) Critical Accounting Judgements and Estimates
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the
amounts reported for revenues and expenses during the year. However, the nature of estimation means
that actual outcomes could differ from those estimates. The following judgements have had the most
significant effect on amounts recognised in the financial statements.
Impairment of Property, Plant and Equipment
Assets that are subject to amortisation are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value less cost to sell and value in use. For the purpose
of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units). Non-financial assets that suffered impairment are
reviewed for possible reversal of the impairment at each reporting date.
Depreciation and Residual Values
The Directors have reviewed the asset lives and associated residual values of all fixed asset classes, and
in particular, the useful economic life and residual values of fixtures and fittings, and have concluded
that asset lives and residual values are appropriate.
Retirement Benefit Obligation
The assumptions underlying the actuarial valuations for which the amounts recognised in the financial
statements are determined (including discount rates, rates of increase in future compensation levels,
mortality rates and healthcare cost trend rates) are updated annually based on current economic
THE ECONOMIC AND SOCIAL RESEARCH INSTITUTE
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conditions, and for any relevant changes to the terms and conditions of the pension and post-retirement
plans.
The assumptions can be affected by:
(i) the discount rate, changes in the rate of return on high-quality corporate bonds
(ii) future compensation levels, future labour market conditions
(iii) health care cost trend rates, the rate of medical cost inflation in the relevant regions.
2. Research Income 2018
€ 2017
€ Commissioned Research Research Grants Research Programmes Growing up in Ireland Survey
969,625 1,348,990 3,394,573 2,622,470 8,335,658
783,111 880,020
3,587,660 3,275,530 8,526,321
3. Miscellaneous Income
2018 €
2017 €
Members’ subscriptions Sale of publications Hospital In-Patient Enquiry Scheme Rental income Other Income
38,067 11,122 18,812 92,151 78,613
238,765
38,852 9,875
111,820 86,313 87,380
334,240
Since January 2014 the Institute has recouped the cost of staff seconded to the Healthcare Pricing Office (HPO) in the Health Services Executive (HSE) for the Hospital In-Patient Enquiry Scheme. In 2018, the HSE made a contribution of €18,812 (2017 €111,820) to the ESRI’s overheads in recognition of costs involved in providing payroll, payment processing, HR and other services to the seconded staff. The staff transferred to the HSE in February 2018. The full income and costs associated with HPO staff in 2017 and 2018 was as follows: 2018
€ 2017
€ Refund of Seconded Staff Costs Less Salaries Employers PRSI Pension Costs Other Fees and Permanent Health Insurance Costs Direct Costs Travel Costs Total Costs
122,252
80,962 8,243
14,169 - -
66 103,440
18,812
1,258,931
882,693 87,892
132,404 22,067
974 21,081
1,147,111
111,820
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Contribution to Overheads
4. Staff Wages and Salaries
4.1 The number of persons employed (full-time equivalents) in the financial year was 120
(2017:119). Total includes 93 (2017:100) permanent staff (full-time equivalents). This does not include staff employed on short-term contracts for interviewing. Full–time equivalent figure at 31/12/18 was 94.
4.2 The salaries and related costs were incurred as follows:
2018
€
2017
€ Economic and Social Research Divisions Growing Up in Ireland Administration Employers PRSI
Other Fees and Permanent Health Insurance Costs
4,659,618 920,724
1,227,835 677,104
70,435 7,555,716
4,256,092 743,997
1,140,125 608,189
70,413 6,818,816
The salaries figure of €7.55 million (2017 €6.82 million) above excludes staff seconded to the HPO. See note 3 above.
4.3 €347,325 of pension related deductions (PRD) has been paid over to the Department of Public
Expenditure and Reform. (2017: €348,883).
4.4 The charge to salaries includes costs of €1,874 (2017: €1,783) incurred in respect of the production of the Economic and Social Review by Economic and Social Studies.
4.5 Directors Remuneration
2018 €
2017 €
Salary Superannuation Provision Income Continuance Provision
172,553 43,138
1,726 217,417
166,350 41,588
1,664 209,602
Pension entitlements do not exceed the standard entitlements provided in the model public sector defined benefit superannuation scheme. The Director’s travel and subsistence expenses in 2018 amounted to €4,445 (2017:€3,436). No bonuses or perquisites were paid to the Director in 2018.
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4.6 Board Fees and Expenses The members of the ESRI Board do not receive fees. Board members do not travel on official business as members of the Institute. They are entitled to claim travel and subsistence for their attendance at board meetings. Expenses incurred by the Board members in 2018 amounted to €2,247 (2017:€2,304).
4.7 Employee benefits breakdown
Range of total employee benefits Number of employees
From To 2018 2017
€60,000 €69,999 3 11
€70,000 €79,999 4 3
€80,000 €89,999 6 7
€90,000 €99,999 6 5
€100,000 €109,999 4 7
€110,000 €119,999 7 -
€120,000 €129,999 1 2
€130,000 €139,999 2 -
€140,000 €149,999 - 3
€150,000 €159,999 1 -
€160,000 €169,999 - 1
€170,000 €179,999 1
4.8 There were no termination payments made in the year. 4.9 Overtime payments of €2,405 (2017 €0) were made in the year.
5. Direct Project Expenses 2018
€ 2017
€ Consultants and Network Partners Field Staff Fees Other Direct Costs Travel- Foreign Travel- Domestic
22,714 850,173 503,417
91,190 11,559
1,479,053
690 1,531,183
774,489 132,052
18,123 2,456,537
6. Establishment Costs 2018
€ 2017
€ Rent & Rates Interest Costs Heat, light, maintenance and cleaning Depreciation
1,620 56,083
296,069 416,485 770,257
3,000 58,552
281,867 389,115 732,534
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7. Administration Printing and Stationery Postage, insurance, telephone and
general expenses4 Computer Costs (including license fees) Travel Library books and subscriptions Professional Fees- Legal -Tax and Financial -Pension and HR -Other Audit Fees
2018 €
38,794
220,587 164,649
75,397 15,695 20,461 30,288 12,060 29,809 16,000
623,740
2017 €
53,988
249,911 128,979
11,091 14,355
3,491 10,300 17,251 23,151 15,000
527,517
8. Property Plant and Equipment
Cost:
Computer
equipment €
Equipment, fixtures and
fittings €
Building €
Total €
At beginning of year Additions Disposals At end of year
752,350 144,549
(42,824) ---------
854,075
654,007 18,920
- ----------
672,927
15,582,273 - -
------------- 15,582,273
16,988,630 163,469
(42,824) -------------
17,109,275
Accumulated Depreciation: At beginning of year Provided in year Disposals At end of year
699,364
79,759 (42,824) ----------
736,299
576,605
25,081
---------- 601,686
3,731,818
311,645 -
------------ 4,043,463
5,007,787 416,485 (42,824) -----------
5,381,448
Net book value at beginning of year
52,986 77,402 11,850,455, 11,980,843
Net book value at end of year
117,776
71,241
11,538,810
11,727,827
4 Included in the figure are €47,037 (2017: €60,050) which relates to staff canteen and other staff related costs, conference and other events and €8,943 (2017: €8,585) which relates to a contribution to the employees sports and social club activities.
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9. Receivables
2018 €
2017 €
Revenue from projects 207,930 643,734
Work-in-progress 1,528,747 851,497
Other debtors and prepaid expenses 223,252 438,850
1,959,929 1,934,081
10. Cash and Cash Equivalents
2018 €
2017 €
Bank Accounts 947,617 2,523,262
Cash 55 162
947,672 2,523,424
Cash and cash equivalents include €428,875 (2017 €1,481,005) received by way of advance payments for work to be completed.
11. Payables (amounts falling due within one year)
2018
€
2017
€
Payroll Taxes 246,834 280,833
Value Added Tax 195,659 353,792
Deferred Income 428,875 1,481,005
Trade Creditors 44,899 142,372
HPO Advanced Funds 630,082 638,644
Accrued Expenses 660,538 746,590
Other Creditors 14,402 105,468
Havbell Mortgage 407,639 394,890
2,628,928 4,143,594
No security has been provided by the Institute in respect of the above creditors with the exception of the Havbell Mortgage.
12. Long Term Loans (amounts falling due after one year)
2018 €
2017 €
Havbell mortgage: Euribor +1%
Due after one year 7,660,309 8,095,112
The 30 year mortgage loan commenced in 2006. Havbell Limited have first legal charge over
the property at Whitaker Square, Sir John Rogerson’s Quay, Dublin 2.
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13. Taxation The company is exempted from liability to corporation tax under Section 227 Schedule 4 of
the Taxes Consolidation Act 1997. 14. Commitments – Capital and Others The Institute had no capital or other commitments at the reporting date. 15. Related Company At 31 December 2018 the following related undertaking was in existence.
Economic and Social Studies: This is an associated company established in 1969 at the initiative of the ESRI to foster and promote the education of the Irish public in the social and economic sciences with particular reference to economic and social conditions in or affecting Ireland. The ESRI provides administration services to Economic and Social Studies on pro-bono basis (See Note 4.4).
16. Contingent Liabilities and Other Matter The Council Members were not aware of any material contingent liabilities at the reporting
date.
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17. Pensions (a) Pension Liability and Asset
As outlined in Accounting Policy (g) above, the assets of the Institute’s pension schemes were transferred to the National Pension Reserve Fund (NPRF) on the 30th June 2010 in accordance with the provisions of the Financial Measures (Miscellaneous Provisions) Act 2009. Following the transfer of scheme assets the Institute is required to pay the Department of Public of Expenditure and Reform an annual pension contribution after taking account of pension benefits paid by the Institute. The Act enables the Minister to make good any deficiency in the relevant pension scheme if contributions paid by members and employer are insufficient to meet the obligations of that scheme. The Institute has adapted the treatment and disclosures required by the accounting standard Financial Reporting Standard 102 (Retirement Benefits) to reflect the arrangements in operation. While the funding arrangement operates on a net pay over basis with the Department, the Institute believes the nature of the arrangement is akin to a full reimbursement of the pension liability when those liabilities fall due for payment and therefore recognise its right to the reimbursement to a separate asset in an amount equal to the liability at the year-end. The FRS 102 pension liability at 31 December 2018 is €55,997,000 (2017: €54,913,000) based on an actuarial valuation of the pension liabilities in respect of Institute staff as at 31 December 2018 carried out by a qualified independent actuary for the purpose of FRS 102. A deferred funding asset of €55,997,000 equal to the liability at 31 December 2018 is recognised as a separate asset in the Statement of Financial Position. The members of the Single Public Services Pension Scheme have been included in the pension liability calculations. Movement in Pension Liability 2018 2017 € € Present Value of Scheme Obligations at beginning of year 54,913,000 53,752,000 Current Service Cost 1,562,000 1,580,000 Interest Cost 1,179,000 1,104,000 Actuarial (Gain)/Loss 72,000 (129,000) Benefits Paid (1,729,000) (1,394,000) Premiums Paid - - Present Value of Scheme Obligations at end of year 55,997,000 54,913,000 The net effect on the Statement of Income and Expenditure and Retained Revenue Reserves of the above is nil.
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(b) Pension Costs
The pension costs of the year as measured under FRS 102 amounted to €2,741,000. These are offset by a corresponding amount of funding receivable. The net impact on the Statement of Income and Expenditure and Retained Revenue Reserves is as set out below.
2018 2017 € € Current Service Cost 1,562,000 1,580,000 Interest 1,179,000 1,104,000 HPO Contribution (14,169) (132,404) Pension payments not offset Adjustment to Deferred Funding Employer contributions
67,700 (2,741,000)
719,886 773,417
66,920 (2,684,000)
871,458 805,974
The Institute made payments of €67,700 to individual defined benefit plans (pre 1974 employees) from its own resources which are not offset against the amount payable under the Financial Measures (Miscellaneous Provisions) Act 2009. (c) Contributions Paid to the Department of Public Expenditure and Reform
The Institute paid over total contributions of €1,094,441(2017: €1,250,682) to the Department of Public Expenditure and Reform before taking account of pension benefits amounting to €1,729,000 (2017: €1,394,000) paid in the year. The difference between benefits paid by the Institute over contributions due in 2018 of €637,559 was refunded to the Institute. The total contributions were made up of employer contributions of €719,886 (2017: €871,458) and employee contributions of €371,556 (2017: €379,224). The employee contributions included Single Pension Scheme Contributions of €120,837 (2017:€83,918). (d) Description of Scheme and Actuarial Assumptions Pension benefits are conferred by the ESRI under two pension schemes:
Supervisors, Clerical and Other Administrative Staff
Research Staff Scheme
Both schemes are defined benefit schemes. Employer and employee contributions are paid to the Department of Public Expenditure and Reform. Pensions of both schemes are subject to the pension reduction provisions of the Financial Emergency Measures in the Public Interest (No.2) Act 2010. Actuarial Assumptions The principal Financial Assumptions used at 31 December 2018 and 31 December 2017 are shown in the table below.
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The assumptions as at the reporting date are used to determine the Pension Asset/Liability at that date and the pension expense for the following year.
Valuation Date 31/12/2018 31/12/2017
Discount Rate 2.20% 2.15%
Salary Increase 2.10% 2.20%
Pension Increase 2.1%/1.6% 2.20%/1.7%
Inflation (CPI) 1.60% 1.7%
e) Funding of pensions Employer and employee pension contributions of €864,621 will be due to the Department of Public Expenditure and Reform in respect of 2019 before deduction of pension benefits of €1,578,780 which will be paid by the Institute in 2019. The net difference of €714,159 will be due to the Institute. 18. Irish Fiscal Advisory Council The Irish Fiscal Advisory Council (IFAC) is an independent statutory body established in June 2011 by the Irish Government. It assesses the appropriateness of the Government’s macroeconomic projections, budgetary projections and fiscal stance. The Council also examines the extent of compliance with legislated fiscal rules. The Institute provides administrative support to the Council. An amount of €27,416 is included in the financial statements in Receivables representing an amount due to the ESRI by IFAC at 31 December 2018 in relation to administrative support provided during the year. 19. Reserves
Retained Revenue Reserves
Capital Reserve
Total Reserves
Balance as at 1st January 2018
892,303
3,310,000
4,202,303
Surplus for the Year after pension appropriation to DPER
147,240
147,240 Transfer from Capital Reserve
85,000
(85,000)
-
Balance as at 31st December 2018
1,124,543
3,225,000
4,349,543
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The capital reserve represents capital grants received from the Department of Finance in 2008 and the Economic and Social Research Trust in 2016 to assist the Institute in the funding of its premises. The grant amounts are amortised in line with depreciation on the building.
20. Related Party Disclosures Key management personnel in the ESRI consist of the Director and the members of the Council. Total Compensation paid to key management personnel, including Council members expenses and total Director remuneration, amounted to €224,109 (2017: €215,342). For a breakdown of the remuneration and expenses paid to key management personnel, please refer to Note 4.5 and Note 4.6. The Board adopted procedures in accordance with the guidelines issued by the Department of Public Expenditure and Reform in relation to the disclosure of interests by Board Members and these procedures have been adhered to in the year. There were no transactions in the year in relation to the Board’s activities in which the Board Members had an interest.
21. Going Concern After making enquires and on the basis that the Oireachtas grant continues at the appropriate level, the Directors consider that the Institute has adequate resources to continue operating for the foreseeable future. For this reason they have continued to use the going concern basis in preparing the accounts. 22. Approval of Financial Statements
The Financial Statements were approved by the Council on 26 February 2019.