Glossary - I

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Indirect Cost

A cost that contributes to the production of an output, but is not incurred exclusively for that one output. Source: A4

Individual Performance Management

Management of individual performance against pre-determined criteria, that may include the provision of outputs specified in Business Plans, or desired outcomes as expressed in Service Delivery Plans. Source: S2

Inflation Rate

A rate of increase applied to costs to be incurred at a future date, to reflect the relative purchasing power of money in terms of a chosen time, usually the present. Source: A4

Information Systems

Computer based decision support tools for the collection and analysis of data, and the extraction of meaningful information from that data, in order that people can make informed decisions. Source: A4


Major capital works constructed to provide a framework for social and economic development. Roads, Rail, Ports, Electricity, Gas, Water and Wastewater utilities are examples of infrastructure as related to strategic asset management. Source: G3

Insurance Value

The valuation on which insurance premiums are based. Source: T4

Intangible Assets

Intangible Assets are assets that are non-monetary and do not take a physical form. Examples include intellectual property, highly developed knowledge in a specific area, research, patents, licenses, rights and copyrights. Intangible Assets can be purchased or developed internally. Source: A4

Interest Expenses

Interest and other expenses associated with the financing of the project. These expenses are excluded from an economic analysis (benefit/cost analysis) as they are taken into account in the discount rate. Also known as debt servicing costs. Source: T2


From an IT perspective, the connection between two devices that handle data in different ways. Source: G1

Internal Customers

Customers of the organization service providers who are located within the organization. Source: G1

Internal Rate of Return (IIR)

The discount rate at which net present value (NPV) equals zero. Or, from another perspective, the return on investment calculated by determining the discount rate that provides a "Net Present value" of zero. NPV is used for comparison of cost of capital in investment evaluations. Source: G3

However, the IIR is not the ideal decision criterion - some projects can have more than one IIR, and use in ranking can produce time-related biases. Source: A4

Investing Activities

Activities that relate to the acquisition and disposal of property, plant, equipment and other capital items of an agency. Source: T4