The North / South Language Body Annual Report & Accounts 2009

NOTES TO THE ACCOUNTS1. ACCOUNTING POLICIESThe principal accounting policies which have been adopted in the preparation of the accounts are as follows:1.1. Accounting ConventionThe accounts have been prepared in accordance with the historical cost convention.Without limiting theinformation given, the financial statements are prepared on an accruals basis and comply with the accountingand disclosure requirements of the Companies (Northern Ireland) Order 1986, the Irish Companies’ Acts 1963to 2001, the accounting standards issued or adopted by the Accounting Standards Board and accounting anddisclosure requirements issued by the Department of Finance and Personnel, and the Department of Finance,insofar as those requirements are appropriate.1.2 Fixed AssetsTangible Fixed Assets are included at cost to the body. Depreciation is calculated to write off the cost of fixedassets within their useful lives. The methods adopted and rates used per annum are as follows:Office EquipmentFixtures & FittingsComputer Equipment20% straight line10% straight line33.33% straight lineA Fixed Asset is any asset intended for use on a continuing basis with an expected life of more than one yearand a purchase value in excess of £330Stg (€500).1.3 Pension CostsThe North South Ministerial Council Pension Scheme was set up on 1 April 2005 and provision has been madefor Agency employees who joined the company before this date to pay backdated contributions from the start oftheir employment. The pension scheme is a final salary pension scheme which is administered by an externaladministrator. Employees pay 1.5% of their gross salary. Pension contributions are paid monthly by the Agencyto the Department of Finance and Personnel and to the Department of Arts, Heritage and the Gaeltacht.Employer contributions are paid by the two sponsor bodies, DCAL and DAHG.The Ulster Scots Agency operates a defined benefit pension scheme which is funded, annually on a pay as yougo basis from monies available to it, including monies provided by Department of Arts, Heritage and theGaeltacht (DAHG) and the Department of Culture, Arts and Leisure (DCAL). Funding is also provided by wayof deductions from staff salaries, which are repaid by the Ulster Scots Agency to the Department of Arts,Heritage and the Gaeltacht (DAHG) and the Department of Culture, Arts and Leisure (DCAL). Deductions areincluded within salaries and wages costs (note 4).Pension Scheme liabilities are measured on an actuarial basis using the projected unit method.Pension costs reflect pension benefits earned by employees in the period. An amount corresponding to thepension charge is recognised as income to the extent that it is recoverable, and offset by grants received in theyear to discharge pension payments. Actuarial gains or losses arising from changes in Actuarial assumptions andfrom experience surpluses and deficits are recognized in the Statement of Total Recognized Gains and Lossesfor the year in which they occur and a corresponding adjustment is recognised in the amount recoverable fromDepartment of Arts, Heritage and the Gaeltacht (DAHG) and the Department of Culture, Arts and Leisure(DCAL). Pension liabilities represent the present value of future pension payments earned by staff to date.Deferred pension funding represents the corresponding asset to be recovered in future periods from Departmentof Arts, Heritage and the Gaeltacht (DAHG) and the Department of Culture, Arts and Leisure (DCAL). FRS 3states prior period adjustments are accounted for by restating the comparative figures for the preceding period inthe primary statements. This is the first year in which pension costs have been treated under FRS17, andtherefore 2008 comparatives have been restated by way of prior period adjustment. In prior years, the Schemewas treated as a defined contribution scheme in terms of accounting treatment until 1 April 2009.44