The Authority performs all the functions of a central bank except for the issue of
currency. It also oversees the securities and insurance industries.
The accounts are prepared in accordance with the historical cost convention.
Assets and liabilities in foreign currencies have been translated into Singapore dollars
at the rates of exchange ruling on the balance sheet date. Transactions in foreign
currencies during the year have been translated into Singapore dollars at the rates of
exchange prevailing on transaction dates. Exchange differences are taken to the income and
expenditure statement.
Fixed assets are stated at cost less accumulated depreciation. Depreciation is calculated
on the straight line basis to write off the cost of the fixed assets over their estimated
useful lives as follows:
| Leasehold Land |
Period of lease |
| Buildings |
50 years |
| Building Improvements & Renovation |
10 years |
| Mechanical and Electrical Installations |
10 years |
| Computer Equipment and Software |
3 to 5 years |
| Furniture, Fixtures and Other Equipment |
3 to 5 years |
Assets costing not more than S$1,000 are charged to the income and expenditure
statement in the year of purchase.
Interest income is recognised on an accrual basis and dividends are recognised when declared payable.
Amortisation of premiums and accretion of discounts are recognised as interest expense or interest income over the life of the asset.
Licence fees are recognised on an accrual basis.
Rental on operating lease is charged to income and expenditure statement.
The issued and paid-up capital of S$100 million is wholly owned by the Government of the Republic of Singapore.
| (a)
| The Financial Sector Development Fund (the Fund) is established under Section 30A of the Monetary Authority of Singapore Act (Chapter 186,
1999 Revised Edition). It is controlled and administered by the Authority. The Fund shall be used for the objects and purposes set out in Section
30B of the Monetary Authority of Singapore Act.
|
| (b)
| The assets and liabilities of the Fund as at 31 March 2001 are as follows:
| |
Note |
2000/2001 |
| |
|
S$ '000 |
| Accumulated Fund |
|
|
| Capital Account |
4(d) |
466,102 |
| Accumulated Surplus |
|
10,231 |
| |
|
|
| |
|
476,333 |
| |
|
|
| Represented by: |
|
|
| Current Assets |
|
|
| Fixed Deposits |
|
466,136 |
| Accrued Income |
|
9,033 |
| Cash at Bank |
|
2,011 |
| |
|
|
| |
|
477,180 |
| Less: |
|
|
| Current Liabilities |
|
|
| Accounts Payable |
|
847 |
| |
|
|
| Net Assets |
|
476,333 |
| |
|
|
|
| (c)
| The financial results of the Fund from inception on 4 December 2000 to 31 March 2001 are as follows:
| |
|
2000/2001 |
| |
|
S$ '000 |
| Income |
|
|
| Dividend |
|
7,500 |
| Interest Income |
|
3,675 |
| |
|
|
| |
|
11,175 |
| Less: |
|
|
| Expenditure |
|
|
| Non-Manpower Development Schemes |
|
847 |
| Manpower Development Schemes |
|
97 |
| |
|
|
| |
|
944 |
| |
|
|
| Net Surplus for the Period transferred to Accumulated Surplus |
|
10,231 |
| |
|
|
|
| (d)
| The Capital Account is funded from the net sale proceeds of the Singapore Exchange Limited’s (SGX) shares and, as at 31 March 2001,
does not include a sum of S$5 million held by SEL Holdings Pte Ltd (SEL) to meet outstanding expenses and fees as allowed under Section
10(1) of the Exchanges (Demutualisation and Merger) Act (Chapter 99B).
|
| (e)
| As at 31 March 2001, SEL holds 249,991,184 SGX shares for the benefit of the Fund as stipulated under
Section 11(2) of the Exchanges (Demutualisation and Merger) Act.
|
|
|
Leasehold Land
S$ '000 |
Buildings
S$ '000 |
Building Improvements and
Renovation
S$ '000 |
Mechanical and Electrical
Installations
S$ '000 |
Computer
Equipment and Software
S$ '000 |
Furniture,
Fixtures and Other Equipment
S$ '000 |
Work-in-
Progress
S$ '000 |
Total
S$ '000 |
| Cost |
|
|
|
|
|
|
|
|
| At
1.4.2000 |
25,449 |
105,903 |
1,741 |
35,315 |
12,283 |
2,849 |
20 |
183,560 |
| Additions |
– |
47 |
16 |
12 |
2,851 |
934 |
4,566 |
8,426 |
| Disposals |
– |
– |
– |
– |
(332) |
(16) |
– |
(348) |
| Adjustments |
– |
– |
– |
(18) |
(28) |
– |
– |
(46) |
| |
|
| At 31.3.2001 |
25,449 |
105,950 |
1,757 |
35,309 |
14,774 |
3,767 |
4,586 |
191,592 |
| |
|
| Accumulated Depreciation |
|
|
|
|
|
|
|
|
| At 1.4.2000 |
3,972 |
31,456 |
326 |
35,073 |
5,739 |
1,372 |
– |
77,938 |
| Depreciation for the
year |
265 |
2,127 |
176 |
30 |
3,263 |
913 |
– |
6,774 |
| Disposals |
– |
– |
– |
– |
(330) |
(16) |
– |
(346) |
| Adjustments |
– |
– |
– |
(4) |
(11) |
– |
– |
(15) |
| |
|
| At 31.3.2001 |
4,237 |
33,583 |
502 |
35,099 |
8,661 |
2,269 |
– |
84,351 |
| |
|
| Depreciation fo FY1999/2000 |
265/td>
| 2,125 |
170 |
29 |
3,200 |
730 |
– |
6,519 |
| Net Book Value |
|
|
|
|
|
|
|
|
| At 31.3.2001 |
21,212 |
72,367 |
1,255 |
210 |
6,113 |
1,498 |
4,586 |
107,241 |
| At 31.3.2000 |
21,477 |
74,447 |
1,415 |
242 |
6,544 |
1,477 |
20 |
105,622 |
Foreign assets represent the Authority’s investments in a global diversified portfolio, comprising cash, Treasury bills, bonds and equities. Provision
has been made for diminution in value of assets based on the lower of cost and market value.
These comprise the following:
|
|
2000/2001
S$ '000 |
1999/2000
S$ '000 |
| Reserve Tranche |
873,456 |
902,496 |
| SDR Holdings |
245,964 |
212,312 |
| Poverty Reduction and
Growth Facility (PRGF) |
112,809 |
137,392 |
| Poverty Reduction and
Growth Facility - Heavily Indebted Poor Countries (PRGF-HIPC) |
67,686 |
45,797 |
| Accrued Income |
7,535 |
8,091 |
| Currency Adjustment |
(4,634) |
5,999 |
| |
1,302,816 |
1,312,087 |
The Reserve Tranche represents the amount of the paid-up portion of the Singapore quota. Changes in SDR Holdings are due to, among other
things, interest receipts and payments of charges as well as transactions with other member countries. Singapore participated in the IMF's
Poverty Reduction and Growth Facility (previously known as Enhanced Structural Adjustment Facility) with an initial loan of SDR40 million disbursed
over 4 years from 1988 and another SDR40 million in 1994. The period of the loan is 10 years from the date of disbursement. The first
SDR30 million has been rolled over for another 10 years upon maturity under the PRGF-HIPC.
The Authority's balance of SDR4 million (S$9.3 million) in the Post-Special Contingent Account-2 with IMF, which was not recognised in the
financial statements, was transferred to the PRGF-HIPC on 24 April 2001 as an interest-free deposit maturing at the end of 2018.
These comprise the following:
|
|
2000/2001
S$ '000 |
1999/2000
S$ '000 |
| Cash and Bank Balances |
4,334 |
246,838 |
| Singapore Government
Securities |
5,556,503 |
2,243,569 |
| Investment in Bank for
International Settlements |
54,670 |
54,670 |
| Staff Loans |
|
|
| – Amount repayable
within 12 months |
899 |
1,027 |
| – Amount repayable
after 12 months |
9,503 |
11,758 |
| Others |
110,171 |
49,641 |
| |
5,736,080 |
2,607,503 |
The Authority’s investment in the Bank for International Settlements comprises
3,000 shares at 2,500 gold francs per share (25% paid).
These represent mainly the minimum cash balances maintained by banks and finance companies with the Authority as equired under the
Banking Act (Chapter 19, 1999 Revised Edition) and the Finance Companies Act (Chapter 108, 2000 Revised Edition) respectively and statutory
deposits of securities companies under the Securities Industry Act (Chapter 289, Revised Edition 1985).
|
|
2000/2001
S$ '000 |
1999/2000
S$ '000 |
| Banks |
6,593,521 |
6,235,973 |
| Finance
Companies |
293,670 |
361,848 |
| Securities
Companies |
6,400 |
5,900 |
| |
6,893,591 |
6,603,721 |
These represent current account balances of international financial institutions,
including the International Monetary Fund, and foreign central banks.
|
|
2000/2001
S$ '000 |
1999/2000
S$ '000 |
| International
Financial Institutions |
320,982 |
213,779 |
| Foreign Central
Banks |
427 |
756 |
| |
321,409 |
214,535 |
This represents the contribution to be made to the Consolidated Fund in accordance with
the Statutory Corporations (Contributions to Consolidated Fund) Act (Chapter 319A, 2000 Revised Edition). The
contribution is based on 20% of the profit for the year (after transfers to / from
provisions).
This represents special drawing rights allocated to the Authority by the International
Monetary Fund.
This includes the following:
| |
2000/2001
S$ '000 |
1999/2000
S$ '000 |
| Salaries and
Superannuation |
78,149 |
60,483 |
| Training and
Personnel Development |
4,904 |
3,726 |
| Staff
Benefits |
2,296 |
1,802 |
| Directors’
Fees |
45 |
50 |
This includes the following:
| |
2000/2001
S$ '000 |
1999/2000
S$ '000 |
| Information
Technology Expenses |
7,280 |
7,659 |
| Official Trips and Conferences |
2,285 |
1,760 |
| Property Tax |
1,554 |
1,706 |
| Building and
M&E Maintenance |
1,543 |
1,518 |
| Audit
Fees |
|
|
| –
Statutory Accounts |
310 |
280 |
| – Service
Charge Account |
– |
12 |
| Entertainment |
119 |
121 |
The following statutory deposits of insurance companies held by the Authority under the Insurance Act (Chapter 142, 2000 Revised Edition) and
the emittance licensees under the Money-Changing and Remittance Businesses Act (Chapter 187, 1996 Revised Edition) are excluded from the
balance sheet:
| |
2000/2001
S$ '000 |
1999/2000
S$ '000 |
| Insurance Companies |
|
|
| Bank Covenants |
41,500 |
44,000 |
| Fixed Deposits |
29,917 |
30,417 |
| Stocks |
6,800 |
6,200 |
| |
|
| |
78,217 |
80,617 |
| |
|
| Remittance Licensees |
|
|
| Bank Guarantees |
18,000 |
16,300 |
| |
|
In addition to the Reserve Position and Holdings of Special Drawing Rights disclosed in Note 7, the Authority has an obligation to pay an
amount of S$1,073 million (FY1999/2000: S$1,073 million) which represents the unpaid quota due to IMF under Section 4 of Article III of the
Articles of Agreement.
As a participant in the IMF's 'New Arrangements to Borrow' (NAB), the Authority undertakes to provide a credit line up to SDR340 million
[S$767 million] (FY1999/2000: S$779 million) in the event of a financial emergency as specified by the NAB. During the year, the Authority did not
grant any loan under the NAB.
The Authority has a commitment, amounting to S$24.2 million as at 31 March 2001 (FY1999/2000: S$25.1 million), in respect of the uncalled
portion of its investment in the Bank for International Settlements. The amount is based on the nominal value (in gold francs) of the uncalled portion
and gold price as at the balance sheet date.
The Authority participated in a financing package organised for Thailand by the IMF. The
financing package is in the form of a Currency Swap Agreement between the Bank of Thailand
(BOT) and a number of Asian central banks and multinational institutions, including the
Authority and the IMF. Under the Agreement, the Authority entered into swap transactions
to exchange US dollars for Thai Baht up to a maximum of US$1 billion for a maximum period
of 5 years. As at 31 March 2001, the outstanding principal due from BOT under the
Agreement amounted to US$762 million (FY1999/2000: US$862 million).
Certain comparative figures have been reclassified to conform to the current year’s
presentation. |