Government Financial Statements for the Financial Year 2020/2021
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GOVERNMENT FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR 2020/2021 Cmd. 10 of 2021 ________________ Presented to Parliament by Command of The President of the Republic of Singapore. Ordered by Parliament to lie upon the Table: 28/07/2021 ________________ GOVERNMENT FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR by OW FOOK CHUEN 2020/2021 Accountant-General, Singapore Copyright © 2021, Accountant-General's Department Mr Lawrence Wong Minister for Finance Singapore In compliance with Regulation 28 of the Financial Regulations (Cap. 109, Rg 1, 1990 Revised Edition), I submit the attached Financial Statements required by section 18 of the Financial Procedure Act (Cap. 109, 2012 Revised Edition) for the financial year 2020/2021. OW FOOK CHUEN Accountant-General Singapore 22 June 2021 REPORT OF THE AUDITOR-GENERAL ON THE FINANCIAL STATEMENTS OF THE GOVERNMENT OF SINGAPORE Opinion The Financial Statements of the Government of Singapore for the financial year 2020/2021 set out on pages 1 to 278 have been examined and audited under my direction as required by section 8(1) of the Audit Act (Cap. 17, 1999 Revised Edition). In my opinion, the accompanying financial statements have been prepared, in all material respects, in accordance with Article 147(5) of the Constitution of the Republic of Singapore (1999 Revised Edition) and the Financial Procedure Act (Cap. 109, 2012 Revised Edition). As disclosed in the Explanatory Notes to the Statement of Budget Outturn, the Statement of Budget Outturn, which reports on the budgetary performance of the Government, includes a Net Investment Returns Contribution. This contribution is the amount of investment returns which the Government has taken in for spending, in accordance with the Constitution of the Republic of Singapore. My opinion is not modified in respect of this matter. Basis for Opinion The audit was conducted under my direction in accordance with the Audit Act. My responsibility under the Audit Acts i further described in the Auditor- General’s Responsibility for the Audit of the Financial Statements section of this report. As the Auditor-General, I am independent of the Government and I exercise my duties and powers in accordance with the Constitution of the Republic of Singapore and the Audit Act. Ethical requirements that are relevant to the audit have been fulfilled. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my opinion. Government’s Responsibility for the Financial Statements The Minister for Finance is responsible for the preparation of the financial statements in accordance with Article 147(5) of the Constitution of the Republic of Singapore and section 18 of the Financial Procedure Act. The Accountant-General is responsible under the Financial Procedure Act for the supervision and administration of the Government accounting system and is required under the Financial Regulations (Cap. 109, Regulation 1) to prepare and submit to the Minister the statements required under section 18 of the Financial Procedure Act. The Permanent Secretaries of ministries and Heads of organs of state, as Accounting Officers, are responsible, inter alia, for ensuring that proper books and systems of accounts are adopted and maintained in every department under their charge, in accordance with the Financial Regulations. Auditor-General’s Responsibility for the Audit of the Financial Statements My responsibility is to report on these financial statements based on the audit as required under section 8(1) of the Audit Act. In dischargingh t is responsibility, my objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements. As part of the audit, professional judgement is exercised and professional scepticism is maintained throughout the audit. The audit also includes: • Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Obtaining an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls. Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made, having regard to the law. Among other matters, the timing of the audit and significant audit findings, including any significant deficiencies in internal controls identified during the audit are communicated to those charged with governance. GOH SOON POH Auditor-General Singapore 25 June 2021 CONTENTS Page SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OF THE GOVERNMENT OF SINGAPORE 2 SECTION 1 I STATEMENT OF BUDGET OUTTURN 8 II STATEMENT OF CONSOLIDATED FUND - CONSOLIDATED REVENUE ACCOUNT 11 (a) Summary of Receipts 12 (b)Summary of Outlays 15 III STATEMENT OF DEVELOPMENT FUND 18 (a) Summary of Outlays 19 IV STATEMENT OF CONTINGENCIES FUND 22 V STATEMENT OF DEVELOPMENT CONTINGENCIES FUND 25 VI STATEMENT OF GOVERNMENT SECURITIES FUND 29 VII STATEMENT OF DEVELOPMENTAL INVESTMENT FUND 33 VIII STATEMENT OF PENSION FUND 36 IX STATEMENT OF SAVINGS AND EMPLOYEE RETIREMENT AND PREMIUM 39 FUND (SAVER-PREMIUM FUND) X STATEMENT OF INVEST FUND 42 XI STATEMENT OF EDUSAVE ENDOWMENT FUND 46 XII STATEMENT OF LIFELONG LEARNING ENDOWMENT FUND 49 XIII STATEMENT OF MEDICAL ENDOWMENT FUND 52 XIV STATEMENT OF ELDERCARE FUND 55 XV STATEMENT OF CONNECT FUND 58 XVI STATEMENT OF COMMUNITY CARE ENDOWMENT FUND (COMCARE FUND) 61 XVII STATEMENT OF NATIONAL RESEARCH FUND 65 XVIII STATEMENT OF GOODS AND SERVICES TAX VOUCHER FUND 68 (GST VOUCHER FUND) XIX STATEMENT OF PIONEER GENERATION FUND 71 XX STATEMENT OF MERDEKA GENERATION FUND 74 XXI STATEMENT OF LONG-TERM CARE SUPPORT FUND 77 XXII STATEMENT OF PUBLIC TRANSPORT FUND 80 XXIII STATEMENT OF DEPOSIT ACCOUNTS 83 XXIV STATEMENT OF ASSETS AND LIABILITIES 86 CONTENTS Page XXV STATEMENT OF GOVERNMENT SECURITIES, ADVANCE DEPOSITS AND 89 TREASURY BILLS XXVI STATEMENT OF ADVANCE ACCOUNTS 92 XXVII STATEMENT OF LOANS REPAYABLE TO GOVERNMENT 94 XXVIII STATEMENT OF OUTSTANDING GUARANTEES AND OTHER FINANCIAL 99 LIABILITIES XXIX TOTAL EXPENDITURE BY SECTOR/MINISTRY 102 SECTION 2 I DETAILED STATEMENT OF ESTIMATED AND ACTUAL RECEIPTS BY 104 MINISTRY II DETAILED STATEMENT OF ESTIMATED AND ACTUAL CONSOLIDATED 113 REVENUE ACCOUNT OUTLAYS III DETAILED STATEMENT OF ESTIMATED AND ACTUAL STATUTORY 187 EXPENDITURE IV DETAILED STATEMENT OF ESTIMATED AND ACTUAL 191 DEVELOPMENT FUND OUTLAYS REPUBLIC OF SINGAPORE SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OF THE GOVERNMENT OF SINGAPORE SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OF THE GOVERNMENT OF SINGAPORE 1 Significant Accounting Policies (a) The accounting policies of the Government of Singapore are based on the laws governing the financial affairs of the Government. The principal laws include: (i) Part XI of the Constitution of the Republic of Singapore (1999 Revised Edition); (ii) the Financial Procedure Act (Cap. 109, 2012 Revised Edition); (iii) the Financial Regulations (Cap. 109, Rg 1, 1990 Revised Edition); (iv) the Development Loan Act (Cap. 81, 1985 Revised Edition); (v) the Development Loan (1987) Act (Cap. 81A, 1988 Revised Edition); (vi) the Development Fund Act (Cap. 80, 2013 Revised Edition); and (vii) the Government Securities Act (Cap. 121A, 2014 Revised Edition). The Government keeps its accounts on the cash basis of accounting in accordance with Regulation 19 of the Financial Regulations (Cap. 109, Rg 1, 1990 Revised Edition). A transaction is recorded only when cash is received or paid. Accruals of amounts due to or owing by the Government are not shown in the Financial Statements, but are tracked by way of departmental records. Assets acquired by any organ of state or ministry are not capitalised as assets but are treated as outright expenditure in the year in which payments are made. Likewise, stocks in hand at the end of the financial year are not taken into account as assets. (b) The Government of Singapore as an accounting entity comprises all organs of state and ministries. Statutory boards and Government-owned companies are not included. (c) A financial year is defined by the Financial Procedure Act (Cap. 109, 2012 Revised Edition) as a period of 12 months ending on 31st March in any year. The financial year in respect of which the Financial Statements are prepared covers the period 1st April 2020 to 31st March 2021. (d) The accounts are maintained in accordance with the principles of fund accounting. This is the procedure whereby transactions pertaining to resources for specified objectives are classified,