Brian Cowen (Laois-Offaly, Fianna Fail)

The Estimates Volume provides information on voted expenditure by Departments and offices in respect of administration and programme costs. This includes expenditure in respect of civil servants' pension costs, as provided for in Vote 7, superannuation and retired allowances, and the pension costs of other public servants, including teachers, members and former members of the Garda Síochána and the Defence Forces, among others. This expenditure on pensions and its associated receipts are dealt with on a cash basis. Thus accrued liabilities are not shown in the Estimates publications.

As the Deputy is aware, there are two forms of accounting in the public service. The accounts of Departments and Government offices are prepared on a cash basis, while local authorities and commercial State-sponsored bodies, for example, prepare their accounts on an accrual basis. The appropriation accounts for central Departments and Government offices are required by legislation to be prepared on a cash basis.

However, a working group on better financial reporting has recently been set up to review the current position with respect to the contents of notes to the appropriation accounts, which include accruals, and make recommendations for their improvement in terms of quality and relevance, to help to present a more holistic and up-to-date view. The review will cover long-term liabilities, including pensions at the aggregate level. This information will be included in the finance accounts.

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