2002/03 Annual report - Agri-Food & Veterinary Authority of Singapore

More documents

Recommendations

Info

Notes to the Financial Statements For the financial year ended 31 March 2003 These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1. General The Agri-Food and Veterinary Authority is a statutory board established in Singapore under the Agri-Food and Veterinary Authority Act 2000. It is domiciled in Singapore. The address of the Authority’s registered office is: Page 88 5 Maxwell Road #02/03-00 Tower Block MND Complex Singapore 069110 2. Principal Activities The principal activities of the Authority are: (a) to regulate the safety and wholesomeness of food for supply to Singapore; (b) to promote and regulate animal and fish health, animal welfare and plant health; (c) to promote, facilitate and regulate the production, processing and trade of food and products related to or connected with the agri-food and veterinary sectors; (d) to develop, manage and regulate any agrotechnology park, agri-biotechnology park, mari-culture park, fishing harbour, and any other agri-food and veterinary centre or establishment; (e) to promote the development of the agri-food and veterinary sectors; (f) to advise and make recommendations to the Government on matters, measures and regulations related to or connected with the agri-food and veterinary sectors; (g) to represent the Government internationally on matters related to or connected with the agri-food and veterinary sectors; and (h) to carry out such other functions as are imposed upon the Authority by or under the Agri-Food and Veterinary Authority Act 2000 or any other written law. 3. Significant Accounting Policies (a) Basis of accounting The financial statements have been prepared in accordance with Singapore Statements of Accounting Standard. The financial statements have been prepared under the historical cost convention and are expressed in Singapore dollars. (b) Revenue recognition Certificate, permit and licence fees are recognised as revenue on an accrual basis. Revenue from the rendering of services is recognised when the service is rendered. Rental, vehicle entry and interest income are recognised on an accrual basis. Other income comprises mainly fines and farm sales. Fines are accounted for when received and farm sales are recognised upon delivery of goods to customers. Notes to the Financial Statements For the financial year ended 31 March 2003 3. Significant Accounting Policies (continued) (c) Grants Government grants and contributions from other parties utilised for the purchase or construction of property, plant and equipment are taken to the Deferred Capital Grants Account. Non-monetary grants related to assets are taken at their fair values to the Deferred Capital Grants Account. Deferred capital grants are recognised in the Income and Expenditure Statement over the periods necessary to match the depreciation of the assets purchased or received with the related grants. On disposal of the property, plant and equipment, the balance of the related grants is taken to the Income and Expenditure Statement to match the net book value of the property, plant and equipment disposed. Grants and contributions received for the purchase or construction of property, plant and equipment but which are not yet utilised are taken to the Capital Grants Account. Operating grants whose purpose is to meet the current financial year’s operating expenses are recognised as income in the same financial year. Grants are recognised only when there is reasonable assurance that the Authority would comply with the conditions attaching to those grants, and the grants would be received. (d) Foreign currencies Transactions in foreign currencies during the financial year are recorded in Singapore dollars at the rates of exchange prevailing on the transaction dates. Foreign currency monetary assets and liabilities are translated into Singapore dollars at the rates of exchange prevailing at the balance sheet date. Exchange differences arising are taken to the Income and Expenditure Statement. (e) Property, plant and equipment All property, plant and equipment are stated at cost less accumulated depreciation. No depreciation is provided on development work-in-progress. When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Depreciation is calculated on the straight-line basis to write off the cost of all other property, plant and equipment over their estimated useful lives. The estimated useful lives are as follows: Leasehold land and buildings Years 10 – 30 (over the period of the lease) Motor vehicles and vessels 10 Equipment 8 – 10 Furniture and fittings 8 Computer systems and software 8 Assets cost not exceeding $2,000 each are fully depreciated in month of purchase. (f) Investments Investments, including investments in subsidiaries, that are intended to be held for the long term are stated at cost and provision is only made in recognition of a diminution in the value of the investments which is other than temporary, determined on an individual investment basis. Profit and losses on the disposal of investments are taken to the Income and Expenditure Statement. (g) Debtors Debtors are carried at anticipated realisable value. Bad debts are written off and specific provisions are made for those debts considered to be doubtful. Page 89
Notes to the Financial Statements For the financial year ended 31 March 2003 3. Significant Accounting Policies (continued) (h) Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost. Page 90 For the purposes of the cash flow statement, cash and cash equivalents comprise cash and bank balances and fixed deposits with financial institutions. (i) Provisions Provisions are recognised when the Authority has a legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. (j) Employee benefits Employee leave entitlements Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date. Pension benefits The Authority operates an unfunded defined benefit scheme for certain employees under the provisions of the Pensions Act (Chapter 225). A provision is made for the estimated liability for pension benefits for all pensionable employees. This provision is calculated using the following information: the expected payouts to be made by the Authority under the scheme and the life expectancy of the scheme’s members. These amounts are discounted to and stated at their net present value. 4. Staff Costs 2003 2002 $ $ Salaries, allowances and bonus 36,304,542 32,581,228 Central Provident Fund contributions 4,702,959 4,321,392 Provision for pension benefits 2,553,993 1,703,809 Other staff costs 2,679,919 3,111,833 The number of persons employed at the end of the financial year is 815 (2002: 730). 5. General and Administrative Expenses 46,241,413 41,718,262 2003 2002 $ $ Transport and travel 416,139 328,242 Office, computer and laboratory supplies 3,692,262 3,883,641 Rental 6,924,572 7,064,176 Repairs and maintenance 7,259,109 6,526,235 Auditors’ remuneration – Current year 65,000 60,000 – Prior year underprovision – 10,000 Professional fees 2,470,933 1,135,011 Board honorarium 45,000 42,500 Goods and services tax 606,045 949,891 Security services 508,828 535,499 Other operating expenses 1,856,068 2,231,215 23,843,956 22,766,410 Notes to the Financial Statements For the financial year ended 31 March 2003 6. Operating Grants 2003 2002 $ $ Received/receivable during the financial year 43,673,400 40,862,388 Transfer to deferred capital grants (376,828) (1,799,778) Transfer to Income and Expenditure Statement 43,296,572 39,062,610 7. Non-government Grant Received in Advance 2003 2002 $ $ Balance at the beginning of the financial year 196,768 200,000 Transfer to Income and Expenditure Statement (5,712) (3,232) Balance at the end of the financial year 191,056 196,768 8. Capital Grants Government grants 2003 2002 $ $ Balance at the beginning of the financial year 1,838,089 413,446 Received during the financial year 25,038,331 7,801,494 Transfer to deferred capital grants upon utilisation (26,106,656) (6,376,851) Transfer to Income and Expenditure Statement * (78,304) – Balance at the end of the financial year 691,460 1,838,089 * The transfer to Income and Expenditure Statement during the financial year is for the purpose of matching against each asset acquired costing $500 and below that are expensed off in the month of purchase. 9. Deferred Capital Grants Government grants 2003 2002 $ $ Balance at beginning of the financial year 151,268,735 150,734,310 Transfer from capital grants (note 8) 26,106,656 6,376,851 Transfer from operating grants (note 6) 376,828 1,799,778 177,752,219 158,910,939 Grants taken to Income and Expenditure statement – to match depreciation (8,463,662) (7,574,950) – to match disposals (55,231) (67,254) (8,518,893) (7,642,204) Balance at the end of the financial year 169,233,326 151,268,735 10. Contribution in Lieu of Tax This represents the writeback of contribution in lieu of tax pursuant to the amendment to the requirements of the Ministry of Finance which states that the contribution is payable by the Authority with effect from the financial year beginning 1 April 2003. Page 91
Page 1 and 2: The Look of Life\ Agri-Food & Veter
Page 3 and 4: The contrast of textures
Page 5 and 6: Board of Directors Mr Koh Poh Tiong
Page 7 and 8: The spontaneity of expression
Page 9 and 10: AVA placed several advertorials in
Page 11 and 12: Enhancing the Safety of Our Food No
Page 13 and 14: A total of 177,427 import permits w
Page 15 and 16: These surveillance programmes enabl
Page 17 and 18: Singapore Food Manufacturers’ Ass
Page 19 and 20: To ensure that the introduction and
Page 21 and 22: Animal Control Measures Stray anima
Page 23 and 24: The inevitable result of urbanisati
Page 25 and 26: Forging Global Ties and Facilitatin
Page 27 and 28: As the national authority for agric
Page 29 and 30: Synergising Staff and Resources An
Page 31 and 32: which was attended by 22 badminton
Page 33 and 34: AVA Service Centres AVA Service Cen
Page 35 and 36: Food Supply and Technology Agri-Tra
Page 37 and 38: Consumption, Import and Local Farm
Page 39 and 40: Three-Year Financial Summary FY 02/
Page 41 and 42: Financial Position As at 31 March 2
Page 43 and 44: Capital Expenditure Capital expendi
Page 45: Statement of Changes in Fund and Gr
Page 49 and 50: Notes to the Financial Statements F

2002/03 Annual report - Agri-Food & Veterinary Authority of Singapore

Create successful ePaper yourself

Delete template?

Save as template?