Group	Note	2014 €’000	2013 €’000
Costs reimbursable to the NTMA	10.1	53,894	40,768
Primary servicer fees	10.2	50,255	54,787
Master servicer fees	10.3	2,543	3,082
Portfolio transition costs	10.4	7,015	7,369
Portfolio management fees	10.5	3,772	5,549
Legal fees	10.6	8,574	2,975
Finance, communication and technology costs	10.7	4,387	3,423
Rent and occupancy costs	10.8	2,964	1,482
Internal audit fees	10.9	743	911
External audit remuneration	10.10	550	515
NAMA Board and Committee fees and expenses	10.11	419	599
Total administration expenses		135,116	121,460

Agency	Note	2014 €’000	2013 €’000
Administration expenses
Costs reimbursable to the NTMA	10.1	53,894	40,768
NAMA Board and Committee fees and expenses	10.11	419	599
Rent and occupancy costs	10.8	2,216	1,174
Total administration expenses		56,529	42,541

Costs reimbursable to the NTMA are recognised as an expense to NAMA. All costs, other than Board and Committee fees and Board expenses incurred by NAMA are reimbursed to it by the NAML Group. Total costs of €56.1m (2013: €41.9m) were reimbursed by the NAML Group to NAMA.

Agency	Note	2014 €’000	2013 €’000
Costs reimbursable by the NAML Group
Costs reimbursable to the NTMA	10.1	53,894	40,768
Rent and occupancy costs	10.8	2,216	1,170
Total costs reimbursable by the NAML Group		56,110	41,938

10.1 Costs reimbursable to the NTMA

Under Section 42 (4) of the Act, NAMA is required to reimburse the NTMA for the costs incurred by the NTMA in consequence of it assigning staff and providing services to NAMA.

Costs comprise staff costs of €40.9m (2013: €31.1m) and overheads and shared service costs of €13.0m (2013: €9.6m).

The NTMA incurs direct costs such as salaries, rent, IT, office and business services. NAMA has agreed to reimburse the NTMA for their proportionate share of external overhead costs on a centralised basis where NAMA benefits directly or indirectly from the provision of the related goods or services. These costs include central IT costs, office and business services, together with depreciation in respect of the use of NTMA fixed assets and other central overheads.

The costs incurred by the NTMA are charged to NAMA (the Agency) and the Agency is reimbursed by the NAML Group.

Staff costs

The Group has no employees. All personnel are employed by the NTMA and the salary cost of staff who are engaged full time in the NAMA business are recharged to the Group by the NTMA. The number of employees of the NTMA, directly engaged in the Group (‘NAMA Officers’) at the reporting date was 369 (2013: 331) and the total salary cost including pension costs was €40.9m (2013: €31.1m). In addition the NTMA provide shared services to NAMA including IT, HR and Finance. The cost of NTMA employees (non NAMA Officers) providing these shared services to NAMA during 2014 was €3.8m (2013: €2.5m).

17 staff were placed on garden leave during 2014 with an attributable 2014 cost of approximately €0.4m. This does not represent an incremental cost for NAMA but instead forms part of the overall NAMA salary cost that would have been incurred regardless of the decision to place the relevant staff on garden leave. The decision on whether or not to place staff on garden leave is made on a case-by-case basis and would include consideration, inter alia, of the person’s role within NAMA and the person’s new employer. The average period of garden leave for the 17 staff was for two months.

NAMA Officers are members of the NTMA Staff Pension Scheme and the NTMA contributes to the scheme on behalf of these employees. The cost of these pension contributions are recharged to NAMA.

Staff costs include the Chief Executive Officer’s salary as detailed below:

Brendan McDonagh (Chief Executive Officer)	2014 €	2013 €
Salary	366,001	365,500
Taxable benefits	20,776	21,710
Performance related bonus	-	-
	386,777	387,210

The remuneration of the Chief Executive Officer consists of basic salary, taxable benefits and a performance related payment of up to 60% of annual salary. The Chief Executive Officer was entitled to be awarded a performance payment for 2013 and 2014, but in view of the economic challenges facing the country, waived his entitlement to this payment.

The Chief Executive Officer’s pension entitlements do not extend beyond the standard terms of the model public sector superannuation scheme.

The remuneration of the Chief Executive Officer is determined by the NTMA CEO after consultation with the NTMA Board. In giving advice on remuneration, the NTMA Board is informed by the views of the NTMA Remuneration Committee.

10.2 Primary Servicer fees

Primary Servicer fees comprise fees paid to each Participating Institution (AIB and BOI) and the Primary Servicer (Capita) for the servicing of eligible bank assets. The Participating Institutions and Primary Servicer administer the loans and receivables that originated within each Participating Institution. The amounts payable to each Participating Institution are set out in Note 38 related party disclosures. Primary Servicer fees were €50.2m during the year (2013: €54.8m). Of this, the fees paid and accrued by NAMA (excluding NARL (in Voluntary Liquidation)) to the Participating Institutions and the Primary Servicer were €46.1m (2013: €45.2m), which equates to an average fee of 7 basis points (2013: 7 basis points) of the par debt loan balances administered.

10.3 Master servicer fees

Master servicer fees comprise fees paid to the master servicer, Capita. Capita provides loan administration and data management services to the Group. Master servicer fees were €2.5m in the year (2013: €3.1m).

10.4 Portfolio transition costs

Following the IBRC liquidation in February 2013, NAMA incurred costs on the transition of the existing €41 billion par debt NAMA loans managed by IBRC to Capita. Costs incurred in 2014 totalled €3.0m (2013: €7.4m). The transition costs comprise amounts paid to Capita for project and integration costs, fees to the joint Special Liquidators for services provided for the transition of the existing portfolio and other project costs which include the cost of secondees engaged to provide assistance and advisory services to the NAMA integration team.

During 2014, NAMA also commenced the process for the transitioning of the existing €6.5 billion par debt NAMA loans managed by BOI to Capita. Similar to the IBRC integration costs, costs comprise amounts paid to Capita for project and integration costs, fees to BOI for the transition of the existing portfolio and other project costs which include the cost of secondees engaged to provide assistance and advisory services to the Project Bank team.

A breakdown of the costs incurred in 2014 and 2013 is set out below.

Portfolio transition costs	2014 €'000	2013 €'000
IBRC integration
Capita	1,818	2,727
IBRC joint Special Liquidators	1,142	3,950
Other project costs	78	692
Total IBRC integration	3,038	7,369
Project Bank
Capita	1,626	-
BOI	1,680	-
Other project costs	671	-
Total Project Bank	3,977	-
Total portfolio transition costs	7,015	7,369

10.5 Portfolio management fees

Portfolio management fees relate to fees incurred in the ongoing management and support of debtors. Costs included are property valuation, asset search and asset registry fees, and insurance costs.

Costs incurred on the disposal of loans have been recognised within net profit on disposal of loans in 2014 in line with IFRS, which outlines that any profit or loss on the derecognition of loans and receivables should be recognised after deduction of selling costs from disposal proceeds. This differs to 2013, whereby such costs of €2.6m were recognised directly within administration expenses.

10.6 Legal fees

Legal fees comprise fees paid to professional service firms with respect to legal advice.

10.7 Finance, communication and technology costs

Finance, communication and technology costs comprise costs incurred during the year in relation to IT, derivative valuation, tax advice and other administration costs.

10.8 Rent and occupancy costs

Rent and occupancy costs comprise costs incurred during the year in relation to the premises occupied by the Group.

The Agency has leased the third floor of its current office premises since 2010 for a period of ten years at an annual rent of €1.0m, and the first floor of its current offices premises since 2014 for a period of 15 years at an annual rent of €0.8m and the first floor annexe of its current offices premises for a period of 12 years and 4 months at an annual rent of €0.1m since 2013. Further information on leases is included in Note 32, commitments and contingent liabilities. The remaining balance relates to occupancy costs.

10.9 Internal audit fees

The Group have engaged the services of an external professional services firm to perform the role of internal auditor for the Group. Fees incurred relate to the audit of business processes by the Internal Auditor and the reporting on the results of internal audits performed.

10.10 External audit remuneration

Group	2014 €'000	2013 €'000
Audit of NAMA Group and subsidiaries	550	515
Total external audit remuneration	550	515

The Comptroller and Auditor General (as external auditor) does not provide other assurance, tax advisory or other non-audit services to NAMA.

10.11 NAMA Board and Committee fees and expenses

Board fees are set out in the table below, and have been approved by the Minister for Finance.

Portfolio transition costs	2014 €'000	2013 €'000
Frank Daly (Chairman)	150,000	150,000
Oliver Ellingham (appointed 10 April 2013)	60,000	41,750
Eilish Finan (term ended 21 December 2013)/td>	-	58,549
Brian McEnery	60,000	60,000
Mari Hurley (appointed 8 April 2014)	43,033	-
Steven A. Seelig (term ended 25 May 2013)	-	24,032
Willie Soffe	75,000	75,000
Board fees	388,033	409,331
Board expenses	8,762	162,518
Total Board fees and expenses	571,849	571,849
Planning Advisory Committee
Alice Charles	5,000	5,000
Michael Wall	5,000	5,000
Audit Committee
Jim Kelly	10,000	10,000
Northern Ireland Advisory Committee (dissolved 8 September 2014)
Frank Cushnahan (resigned 8 November 2013)	-	3,000
Brian Rowntree	2,025	5,000
Committee fees	22,025	28,000
Total Board and Committee fees and expenses	418,820	599,849

John Corrigan (NTMA Chief Executive, retired 4 January 2015), Conor O’Kelly (NTMA Chief Executive, appointed 5 January 2015), Brendan McDonagh (NAMA Chief Executive Officer), as ex-officio members, and John Mulcahy (resigned 17 January 2014) received no remuneration as members of the Board. Expenses payable in respect of Board and Committee members are set out below.

2014	Travel Expenses €	Accommodation and Subsistence €	Other €	2014 Total €	2013 Total €
Frank Daly (Chairman)	1,133	233	-	1,366	6,418
Oliver Ellingham5	6,055	3,416	-	9,471	6,316
Brian McEnery5	5,784	2,525	-	8,309	19,311
Steven A. Seelig	-	-	(10,384)	(10,384)	130,473
	12,972	6,174	(10,384)	8,762	162,518

Other amounts in the table above represents tax accrued in 2013 and was based on an initial estimate. An adjusted lower amount was paid to the Revenue Commissioners in 2014 on confirmation of the actual tax amount payable.

10.12 NARL operating costs

In response to a Direction issued by the Minister for Finance under the IBRC Act, NAMA established a new NAMA group entity, National Asset Resolution Limited (in Voluntary Liquidation) (NARL) on 11 February 2013 to acquire a loan facility deed and floating charge over certain IBRC assets. At the time of IBRC’s liquidation and prior to the commencement of the loan sales process by the joint Special Liquidators, it was expected that NAMA would acquire loan assets from IBRC.

To facilitate the potential acquisition of loan assets, NAMA put in place a project team to establish new systems and processes for this purpose. While the Minister subsequently announced in late April 2014 that no IBRC loan assets would transfer to NAMA, costs incurred by NARL (in Voluntary Liquidation) in response to the original Direction issued by the Minister to acquire IBRC assets totalled €11.6m (€5.9m in 2014 and €5.7m in 2013).

A breakdown of the costs incurred in 2014 and 2013 is set out below. These costs are included in the overall administration costs incurred by NAMA as set out in Note 10.

NARL operating costs	Note	2014 €’000	2013 €’000
NTMA recharge - salaries	10.1	656	1,745
NTMA recharge - general overheads	10.1	332	1,731
Primary servicer fees	10.2	4,126	2,200
Other administration expenses		757	20
Total NARL operating costs		5,871	5,696