Catherine Murphy (Kildare North, Social Democrats)
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345. To ask the Minister for Health the funding set aside on an annual basis for contingent liability for the past ten years to date by the HSE; the way in which the amount is determined by the HSE; if the HSE carries out an actuary analysis for budgeting current and future contingent liability; and if the HSE conducts a risk assessment in the context of contingent liability. [20023/18]

Catherine Murphy (Kildare North, Social Democrats)
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352. To ask the Minister for Health the amount of funds set aside on an annual basis for contingent liability for the past ten years to date in 2018; the way in which it is determined the amount that is forecast to be needed for contingent liability; if he carries out an actuary analysis for budgeting current and future contingent liability; if he conducts a risk assessment in the context of contingent liability; and if he will make a statement on the matter. [20063/18]

Simon Harris (Wicklow, Fine Gael)
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I propose to take Questions Nos. 345 and 352 together.

International financial accounting standards require an entity to recognise a provision for a contingent liability if, and only if a present obligation (legal or constructive) has arisen as a result of a past event (the obligating event), payment is probable ('more likely than not'), and the amount can be estimated reliably.

The HSE has not recognised any contingent liabilities in the last ten years. This is mainly due to the fact that the nature of such liabilities for the HSE mainly arise as a result of current ongoing litigation. Due to this, it is difficult to determine a) if payment will be probable or b) to calculate a reliable estimate of the potential cost to the HSE until the current test cases have gone through the courts. Also disclosing any amount could be deemed prejudicial to the issue. Whilst no provision is made, contingent liabilities are reflected in Note 26 to the HSE Annual Financial Statements each year.

Funding is allocated to the Department on the basis of costs that will be incurred during the year and is not allocated for possible future funding liabilities. On this basis, material contingent liabilities funding will only be allocated when the cost associated with it crystalises. At such time, the Department of Health will engage with the Department of Public Expenditure and Reform in relation to funding for the actual cost that the Department will incur. There has been no crystallisation of a contingent liability for the Department in the last ten years.