Jun 6, 2024
Navigating the intricate landscape of accounting for grants can be challenging for many organisations. Proper accounting for grants is crucial not only for compliance with financial regulations but also for maintaining the integrity and transparency of financial statements.
If you are in receipt of grant income, you need to identify whether it is a revenue grant or a capital grant. The accounting treatment is different for these two grant types.
Revenue Grants
Under FRS102, revenue grants are accounted for under the accruals model. This means that these grants are recognised in the Income and Expenditure Account in the same period as the related expenditure. Therefore, if grants are not expended in the year, the grant income needs to be deferred into the following year. This unspent portion of the grant income is deferred and shown in the balance sheet as a liability in creditors amounts falling due within one year.
Capital Grants
These are grants relating to capital expenditure. Under FRS102 these grants are accounted for under the accruals model. Expenditure on tangible fixed assets is credited to the income and expenditure account at the same rate as the depreciation of the asset that was acquired with the grant. For example, you acquired a fixed asset for €10,000 and its estimated economic useful life is 5 years, then €2,000 of the grant will be released in to the Income and expenditure account to match the €2,000 depreciation charge. The balance of the grant of €8,000 will be split between creditors amounts falling due within one year, €2,000 and creditors amounts falling due after more that one year €6,000. The fixed asset in the balance sheet with be carried at a net book value of €8,000 being cost of €10,000 less accumulated depreciation of €2,000.
Other items to consider when accounting for grants:
1. Nominal structure – it is important to review your nominal structure to ensure:
- You are able to track the grant expenditure. This is also vital as when your auditor is carrying out their year-end audit testing they will need to be able to identify the expenditure relating to each grant.
- It is also vital for management to track the expenditure and know at any given time what expenditure has been expended and what if any of the grant remains to be spent.
2. Terms and conditions of the grant – It is imperative to read and and gain an understanding of the rules attaching to the grant and to know:
- If the funding is being is ringfenced for a particular type of expenditure
- The disclosure requirements in the financial statements
- In the case of a capital grant, if permission is required from the awarding body where the organisation wishes to dispose of the fixed asset acquired with a capital grant.
- If auditor’s confirmations are required in relation to grant expenditure
- If permission required in relation to the deferral of grant income
In summary in relation to grants it is vital to:
- Know the type of grant received
- Account for it correctly
- Track expenditure
- Adhere to the terms and conditions attached to the grant and avoid being sin binned or red carded.
If you need advice on the accounting treatment of grants or in relation OSK’s audit and accountancy services please contact, Deirdre McDermott mcdermottd@osk.ie.
OSK is the official Audit and Accounting partner of the Federation of Irish Sport (FIS) and the preferred supplier of these services to the Federation’s members.
May 30, 2024
⦁ Sport Minister Thomas Byrne TD & Sport Ireland reveal record-high participation rates in sport
⦁ Nearly two million adults in Ireland participate in sport every week – more than ever before
⦁ Significant recovery from pandemic levels of participation
⦁ Ireland making progress towards achieving UN Sustainable Development Goals
Minister Thomas Byrne joined Sport Ireland to publish the Irish Sport Monitor 2023 report, which shows nearly two million adults in Ireland participate in sport every week – more than ever before.
Regular participation rates have grown from a low of 40% at the peak of the pandemic in 2021 to 47%, while the difference in sports participation rates between men and women in 2023 is the narrowest on record at just under 3%. This is largely due to women’s sports participation increasing by 6% between 2022 and 2023 – it now stands at 46% compared to 49% for men.
Minister of State for Sport, Physical Education and the Gaeltacht, Thomas Byrne TD, said: “It is terrific to see record levels in sports participation recorded in Ireland which are underpinned by record levels in state funding for sport.
“I welcome the confirmation that nearly two million adults are participating in sport every week in Ireland, and I am determined to see these numbers continue to grow over the coming years.
“As Sport Minister, I am particularly heartened to note the progress being made in female sports participation and I know that the additional funding provided under the Women in Sport funding initiative has been crucial in this regard.
“As a Government, we are making real progress in delivering on our key policy targets for sport and we will continue working to ensure that every person, of every ability, can enjoy the right to participate in sport.”
The difference in sports participation between socio-economic groups also reached its narrowest level since the pandemic. Although this difference is still significant at 19% it is much lower than the 34% difference measured in 2017.
Sports participation levels increased in 2023 among both younger and older age groups, with 64% (up from 60% in 2022) of those aged under 35 and 40% (from 35% in 2022) of those aged 35 and over playing sport regularly.
Sport Ireland CEO, Dr Úna May, said: “Sport Ireland’s commitment to research underpins our decisions at every step. The 2023 ISM report provides invaluable insights to Ireland’s sports participation and physical activity levels.
“I would like to acknowledge the Government, our National Governing Bodies, and Local Sports Partnerships, local clubs, coaches, officials, volunteers and participants for their commitment to promoting sport in all its forms.”
Social participation figures in club membership, volunteering and event attendance also increased in 2023 and although event attendance figures are the highest ever recorded, club membership and volunteering figures are still slightly behind pre-pandemic highs measured in 2019.
Sport Ireland has also released a report mapping the contribution of the Irish National Sports Policy (NSP) to the United Nations Sustainable Development Goals (SDGs) and in total the NSP aligns closely with 10 of the SDGs.
There are 17 UN Sustainable Development Goals, along with 169 targets, and 237 unique indicators forming the framework for global development through to 2030. Ireland is one of 193 member states of the UN which has pledged its commitment to this universal agenda to address all three dimensions of sustainable development; economic, social, and environmental.
Benny Cullen, Director of Research and Innovation at Sport Ireland, said: “I want to extend my thanks to all those who contributed to producing these two important research reports including our research colleagues in IPSOS and In Focus.
“The 2023 ISM is a critical report which generates debate, discussion and helps to inform how we can promote sport participation and physical activity throughout Irish society. There remains a large body of work to sustainably achieve the ambitious NSP targets for sports participation rates to reach 60% by 2027.”
John Foley, Sport Ireland Chairperson, said: “The 2023 Sports Monitor presents positive numbers on participation and volunteering. Continuing to grow participation across all sectors of society is a major priority and we look forward to working with all our stakeholders in the achievement of our goals.”
May 29, 2024
· Some €250m available for largest-ever investment in sports facilities nationwide
· Figure represents 50% increase in funding compared with previous 2020 round
· Allocations due to be announced in the autumn
Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Catherine Martin T.D., Minister of State for Sport, Physical Education and the Gaeltacht, Thomas Byrne T.D., and Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe T.D., have today announced at least €250m in funding under the latest round of the Sports Capital and Equipment Programme.
The recently negotiated National Development Plan, confirmed by Minister Donohoe T.D., has facilitated this largest-ever investment in sports facilities across the country.
The funding available represents a 50% increase on the funding allocated in early 2022 under the 2020 round of the Sports Capital and Equipment Programme. It should mean positive allocation decisions for all valid applications under the 2023 Programme.
Since 1998, more than 13,000 projects have benefited from sports capital funding, bringing the total allocations in that time to approximately €1.15 billion. It is generally accepted that the Sports Capital and Equipment Programme has transformed the sporting landscape of Ireland with improvements in the quality and quantity of sporting facilities in virtually every village, town and city.
Today’s announcement follows the confirmation made earlier this month by Ministers Martin and Byrne that over €26m in equipment-only grants had been awarded to over 900 sports groups. This represented the largest-ever allocation of equipment-only grants under the Sports Capital and Equipment Programme to date which will be of practical benefit to multiple sports organisations, their members and athletes across Ireland.
Minister Martin said:
“I am delighted to have secured the largest ever allocation for the Sports Capital and Equipment Programme. This is great news for sporting organisations throughout the country, their members and athletes. As a Government we have committed to 60% overall participation in sport by 2027. Today’s announcement takes us further along that journey as the funding confirmed, including over €26m for sports equipment earlier this month, will help to increase participation in a wide range of sports. As we look forward to the Olympics just around the corner today’s announcement is an important demonstration of the Government’s commitment to the sports sector and the communities that use the facilities to be funded. I look forward to announcing the sports clubs and organisations throughout the country who will get the funds.”
Minister Thomas Byrne said:
“I know that every club and sporting organisation who applied under the 2023 round of the Sports Capital Programme have been eagerly anticipating confirmation regarding their applications. Earlier this month I was pleased to confirm the equipment grants to organisations across the country and to over fifty sports and activities. Further individual allocations, including those for capital works and capital works with an equipment component, will be announced in the autumn. The funding confirmed today represents a 50% increase on the funding allocated under the 2020 round of the Sports Capital and Equipment Programme and it should mean positive allocation decisions for all valid applications under the current 2023 Programme. As a Government, we are delivering record budgets for sport, as we work to provide everyone, of every ability, with an opportunity to participate in sport and physical activity. I look forward to confirming individual allocations later in the year.”
Minister Donohoe said:
“The significant increase in funding available under this round of the Sports Capital Grant demonstrates this Government’s commitment to encouraging the take-up of sports, of all kinds, and the continued drive to promote sporting participation across the country. As a former Minister at the Department of Sport, I have seen first-hand the impact that the Sports Capital Grant has on the lives of our citizens, and also the demand that exists for the grant. I am pleased to see that the interest in this round is as strong as ever. The benefits of sport, at any age, both mentally and physically, cannot be overstated. There is also a tremendous sense of community that comes from engagement with sports and their associated organisations. Ensuring that we have the right equipment in place and that adequate facilities are provided is key to supporting people of all abilities to get, and to stay, involved. I was pleased that the recently negotiated National Development Plan could provide for this, the largest-ever investment in sports facilities across the country. I look forward to see this funding in action.”
May 29, 2024
Pictured above; Mary O’Connor FIS CEO, Minister for Finance Michael McGrath TD, Dr. Una May CEO Sport Ireland
The Federation of Irish Sport celebrated the 7th annual Irish Sport Industry Awards which recognise the important economic role Sport plays to the Irish economy. Minister for Finance Michael McGrath TD gave the keynote address reaffirming the Government’s ongoing investment in sport through the Sports Capital Grants, Major Sports Infrastructure under LSSIF and the record funding available recently announced under the latest round of Sports Equipment Sports Capital and Equipment Programme (‘SCEP’).
The prestigious Banking Hall of the College Green Hotel was the venue for the popular awards ceremony which was once again extremely well attended by key stakeholders across the sector. The 11 award categories recognise a cross section of the work being done by new and innovative sports tech enterprises, the significant sports sponsorship market, media campaigns in sport, alongside the important work being done by National Governing Bodies and Local Sports Partnerships. In addition to this the awards honour standout individuals making a difference in Sport. For the full list of winners see below.
The much-anticipated award for National Governing Body of the Year 2024 went to Canoeing Ireland. Canoeing Ireland has had the challenging task of continuing the organisational growth achieved in recent years with the passion and ambition which is endemic within Canoeing Ireland. Earlier this year they set out a new strategic plan (2024 – 2027) with an ambitious path for the organisation and its members, continuing the growth seen in over the last four years while maintaining and enhancing their excellence in the areas of governance and leadership.
The recipient of the Outstanding Contribution to Irish Sport for 2024 is John Trainor (1972-2024). Widely regarded as the ‘father’ of the sponsorship industry in Ireland and, in particular, the professionalisation of the discipline. John was the Founder and CEO of ONSIDE. As well as being the first Irish Board Director of the European Sponsorship Association, he was a fellow of the Marketing Institute of Ireland where his championing of the sponsorship discipline helped give senior marketing decision-makers more confidence to invest in partnerships.
The recipient of the Women in Business in Sport Award, in partnership with KPMG for 2024 is Sarah Keane CEO Swim Ireland. This is a milestone year for Keane as it marks 20 years at the helm on Swim Ireland and her final Olympic Games as President of the Olympic Federation of Ireland. Sarah has international experience in Governance and Gender Equality Issues as well as extensive experience in Corporate Management and Governance.
The Jimmy Magee FIS/ASJI Sports Coverage of the Year Award, was presented Mark Gallagher of the Irish Daily Mail. Mark Gallagher has been a sports journalist with the Irish Mail on Sunday, the Irish Daily Mail since August 2005, covering a wide variety of sports from Gaelic games to boxing to soccer.
Mary O’Connor, CEO of the Federation of Irish Sport said, “The Federation is delighted to celebrate all the nominees and award winners this evening. It is hugely important to not to underestimate the collective power of sport and the positive impact it has on us as individuals but also to our communities and our economy.
The Federation believes that by continuing to invest in sport at a regional and national level, we can ensure that everyone has access to quality facilities, coaching, and opportunities to get involved, regardless of their background or socio-economic status. This not only benefits individual participants but also contributes to the overall health and well-being of our communities, fostering social cohesion and a sense of belonging. Congratulations to all those honoured this evening. “
Minister for Finance Michael McGrath TD, said, “I wish to commend the Federation of Irish Sport on the 7th hosting of the Irish Sport Industry Awards and I want to congratulate all the award winners and all those that have been shortlisted.
These awards play a huge part in recognising the depth and quality of the many programmes and initiatives being carried out across the country to promote participation and inclusivity in sport and physical activity.”
Full List of Award Winners
Best Sports Sponsorship
Olympic Federation of Ireland & PTSB, Dare to Believe
Best Use of Communications Platforms in Sport
FAI, FAI Connect
Best New Sports Business of the Year, in partnership with Sport Ireland
Precision Sports Technology
Best Sports Business of the Year, in partnership with Technology Ireland DIGITAL Skillnet
SportsKey
Best Initiative to Promote Women in Sport & Physical Activity
LGFA Sports Direct G4MAO (Gaelic4Mothers&Others)
Best Initiative to Promote Inclusivity in Sport & Physical Activity
Field Of Vision
Local Sports Partnership of the Year
Clare Local Sports Partnership
Governing Body of the Year
Canoeing Ireland
Jimmy Magee FIS/ASJI Sports Coverage of the Year
Mark Gallagher
Women in Business in Sport Award, in partnership with KPMG
Sarah Keane
Outstanding Contribution to Irish Sport Award
John Trainor
May 27, 2024
On May 25th 2024, Business Plus Magazine published a feature interview with Federation of Irish Sport CEO Mary O’Connor.
Sport in Ireland is big business, in fact the sports economy outgrew the Irish economy over a decade according to a Sports Ireland report published in 2021.
€3.3bn was spent on sports goods in that time, with the total value of the industry being €3.7bn (1.4% of the total economy).
The CEO of the Federation of Sport for Ireland (IFS) Mary O’Connor outlined the pivotal role it plays in the Irish economy.
“450,000 people a week volunteer for Irish sport,” she said, emphasing the point that this is something that the Exchequer would not be able to repay.
The Federation is the link between the Government and 81 National Governing Bodies of Sport (NGBs).
It also represents Local Sports Partnerships (LSPs).
With the financial might of the sport industry, the 3.3bn figure accounts for 3.1% of total consumer spending in the Irish economy, O’Connor knows the importance of being a flagbearer for the sector.
“We make sure that the price of sport is heard, and the value of sport is heard”.
A Government commitment to double funding to €220m by the end of 2027 as part of the National Sport Policy has been welcomed by O’Connor, but she has also warned that inflation over the last couple of years has greatly cut into the initially perceived benefits.
That is not the only area that concerns the CEO.
Multi-annual funding is another key issue for the Federation, which would allow organisations to plan over two years.
“What we’ve been asking the government to deliver on is multi-annual funding for sports organisations because at the moment its annual funding so it’s very difficult for (organisations) to plan, to strategise, to retain staff if they’re only getting funding year to year.”
The only sportspeople that do receive funding in this way are the high-performance athletes, which she says has been a great benefit to them.
The former Camogie star also wants to see more facilities for athletes in the country.
O’Connor points to the fact that there is still no permanent ice facility in the country for high-performance athletes, the last being in Dundalk and having closed down in 2010.
She also pointed to the need for more multi-sport facilities.
O’Connor was speaking ahead of the 7th annual Irish Sports Industry Awards, which are being held in the College Green Hotel in Dublin on Tuesday.
These awards recognise those involved in both the sporting and business world, with 10 different categories up for grabs.
She says she is delighted “to see that the Minister for Finance (Michael McGrath) is coming to the ‘Sports Industry awards’, I think that signifies government intent and support for the sector.”
This follows the announcement earlier this month that the government would be committing over €26m in equipment grants to sporting organisations nationwide.
O’Connor says the government’s continued investment in sport provides a healthy return on investment for the finance ministry and the Irish economy.
“We estimate that for every €1 the government invests in Irish sport, they’re getting €1.95 back.”
May 23, 2024
On Thursday May 23rd, the Federation of Irish Sport hosted its Annual General Meeting at Irish Sport HQ. The Federation is the voice of sport in Ireland and represents 110 National Governing Bodies (NGB) and Local Sports Partnerships (LSP) across the island of Ireland. The Federation places an emphasis on maintaining a transparent relationship with our members, and the AGM, is a crucial opportunity to engage and inform our members about the work the Federation is doing on their behalf.
The AGM was attended by senior leaders from across the sports sector, including NGB Chief Executive Officers, LSP Administrators and members of our board. Attendees were warmly welcomed by the Federation’s Chairperson, Clare McGrath.
Mary O’Connor, Federation of Irish Sport CEO, delivered an extensive update to attendees on the activities of the Federation. Attendees attention was drawn to the development of a new member focused strategic plan, founded on three strategic pillars; Effective and Impactful Member Supports, Purposeful Advocacy and Leadership, A Resilient and Sustainable FIS.
This strategic plan was the result of extensive consultation and engagement with members, Sport Ireland and the Department of Sport. Mary welcomed continued feedback and input from members.
It was stressed that the essential purpose of the Federation was to support its member stakeholders in the areas of Advocacy and Public Affairs, and in this area, the Federation has been exceptionally effective and dynamic. 
In 2022, Minister Thomas Byrne, was appointed to the role of Minister of State with special responsibility for Sport and Physical Activity. The Federation has developed a positive and open relationship with Minister Byrne, and Mary has consulted with him and expressed the views of the Federation’s member stakeholders on a diverse range of issues.
Mary stated that among the topics which the Federation have made representation to the government on are; core funding for NGB’s and LSP’s and resources for appropriate levels of staffing, multi annual funding, continued commitment to the National Sports Policy and action plans, taxation reform, the Gambling Regulation Bill, and insurance reform. The Federation have also campaigned on; the future of sports broadcasting, inclusion in sport, and the Draft National Philanthropy Policy.
It was noted that the Federation’s keynote annual events are not only an opportunity for the Federation to engage with its members, but also provide a platform for the Federation to be a Voice for Sport in Ireland across the national, media and local media landscape.
The Keynote events from 2023 were; the launch of the Federation’s 2024 pre-budget submission. The Volunteer in Sport Awards which celebrates the achievements and contribution of over 450,000 people who volunteer each week to make sport happen and their efforts which are worth over €1.5 billion to the Irish economy. The Irish Sport Industry Awards, which recognises the value of the sports sector to the Irish economy, in terms of the employment it provides which stands at 64,000 and a total value to the Irish economy of €3.7 billion and the Annual Leaders Forum, which provided an opportunity for Minister Byrne to meet with key industry stakeholders.
It was announced that with respect to increased external costs, outside of the control of the Federation, that it was the intention of the Federation to increase rates of membership subscription by 5% in 2025 and 2026, the CEO informed members, “saying it will allow FIS to fund a 3% increase in annual costs and strategies appropriately for the next 2 years of our strategic plan”. KPMG Ireland partner and the Federation’s treasurer, Darina Barrett, delivered a positive update on the Federation’s 2023 audited accounts.
Pictured above Board Members: Peter O’Brien, FIS Chair Clare McGrath, FIS CEO Mary O’Connor and newly appointed Board Member Moira Aston.
One highly important order of business, before the AGM was closed by Chairperson McGrath, was the election of Moira Aston, CEO of Canoeing Ireland to the Federation board representing Category D membership. We extend our best wishes to Moira in her new role and look forward to welcoming her. Following the closing of the meeting, attendees enjoyed refreshments and the opportunity to network with other industry stakeholders.
