Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697804208891.pdf (Ireland)
Comptroller and Auditor General Report for presentation to the Houses of the Oireachtas An Bord Bia I have audited the financial statements of An Bord Bia for the year ended 31 December 2015 under the An Bord Bia Act 1994.

The financial statements comprise the statement of income and expenditure and retained revenue reserves, the statement of comprehensive income, the statement of financial position, the statement of cash flows and the related notes.
The financial statements have been prepared in the form prescribed under Section 21 of the Act, and in accordance with generally accepted accounting practice.

Responsibilities of the Members of the Board The Board is responsible for the preparation of lhe financial statements, for ensuring that they give a true and fair view and for ensuring lhe regularity of transactions.
Responsibilities of the Comptroller and Auditor General My responsibility is to audit lhe financial statements and Io report on them In accordance with applicable law.

My audit is conducted by reference to the special considerations which attach to State bodies in relation to their management and operation.

My audit is carried out In accordance with the International Standards on Auditing (UK and Ireland) and in compliance with lhe Auditing Practices Board’s Ethical Standards for Auditors.
Scope of audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures In the financial statements, sufficient to give reasonable assurance that lhe financial statements are free from material misstatement, whether caused by fraud or error.
This includes an assessment of • whether the accounting policies are appropriate Io An Bord Bia's circumstances, and have been consistently applied and adequately disclosed • the reasonableness of significant accounting estimates made in lhe preparation of the financial statements, and • the overall presentation of the financial statements.

I also seek to obtain evidence about the regularity of financial transactions in the course of audit.
In addition, I read An Bord Bia's annual report to identify material inconsistencies with lhe audited financial statements and to identify any information that is apparently materially incorrect based on, or materiaNy inconsistent with, lhe knowledge acquired by me in the course of performing the audit.

If I become aware of any apparent material misstatements or inconsistencies, I consider the implications tor my report.
Opinion on the financial statements In my opinion, the financial statements: • • give a true and fair view of the assets, liabilities and financial position of An Bord Bia as at 31 December 2015 and of its income and expenditure for 2015| and have been properly prepared in accordance with generally accepted accounting practice.

In my opinion, the accounting records of An Bord Bia were sufficient to permit the financial statements to be readily and properly audited.
The financial statements are in agreement with the accounting records.
Matters on which I report by exception I report by exception if I have not received all lhe information and explanations I required for my audit, or if I find • • • • any material instance where money has not been applied for the purposes intended or where the transactions did not conform to the authorities governing them, or lhe information given in An Bord Bia's annual report is not consistent with the related financial statements or with the knowledge acquired by me in the course of performing the audit, or the statement on internal financial control does not reflect An Bord Bia's compliance with the Code of Practice for the Governance of Stale Bodies, or there are other material matters relating to the manner in which public business has been conducted.
I have nothing to report in regard to those matters upon which reporting is by exception.

Seamus McCarthy Comptroller and Auditor General 29 June 2016 2015 ANNUAL ACCOUNTS Page 1 of 16 statement of Internal Financial Control On behalf of the Board of Bord Bia, I acknowledge our responsibility for ensuring that an effective system of internal financial control is maintained and operated.
The system can provide reasonable, but not absolute, assurance that assets are safeguarded, transactions authorised and properly recorded and that material errors or irregularities are either prevented or would be detected in a timely fashion.
The Board has taken steps to ensure an appropriate control environment Is In place by: - Clearly defining management responsibilities and powers ■ Establishing formal procedures for monitoring the activities and safeguarding the assets of the organisation • Developing a culture of accountability across all levels of the organisation The Board has established processes to identify and evaluate business risks by; - Identifying the nature, extent and financial Implication of risks facing the body, including the extent and categories which It regards as acceptable - Assessing the likelihood of identified risks occurring * Work-.ng closely with Government and various Agencies to ensure that there is a clear understanding of Committee and reported to the Board.
Bord Bia goals and support for the Board's strategies to achieve those goals The risk register is reviewed at each Board Audit Committee meeting and at each Board meeting.

The system of internal financial The Board Audit Committee meets on control is based on a framework of a regular basis throughout the year to regular management Information, administration procedures Including segregation of duties and a system of delegation and accountability.
In particular It Includes; - A comprehensive budgeting system with an annual budget which is reviewed and agreed by the Board - Regular reviews by the Board of periodic and annual financial reports which Indicate financial performance against forecasts • Setting targets to measure review and confirm the ongoing adequacy and effectiveness of the system of internal Financial Control.
The Board's monitoring and review of the effectiveness of the system of internal financiat control Is Informed by the work of the Internal Auditor, the Board Audit Committee which oversees the work of the internal auditor, the executive managers within Bord Bia who have responsibility for the development and maintenance of the financial financial and other performance control framework and Informed by Bord Bia has an outsourced Internal audit function, which operates in accordance with the Framework Code of Best Practice set out in the Code of Practice for the Governance of State Bodies and, which reports directly to the Board Audit Committee.
The work of Internal audit is Informed by analysis of the risk to which the body is exposed and annual internal audit plans are based on this analysis.

The analysis of risk and the Internal Audit plan are endorsed by the Board Audit the work of the Comptroller and Auditor General In his annual audit.

I confirm that in the year ended 31“ December, 2015 the Board conducted a review of the effectiveness of the system of Internal financial control.
On behalf of the Board ufGMichael Carey Chairman Page 2 of 16 Statement of Income and Expenditure and Retained Revenue Reserves for the financial year ended 31 December Income Oireachtas Grants Oireachtas - Other Funding Food Oude National Roll Out Quality Assurance Schemes.
Special Funding Food Promotions Special Funding Statutory Levy Project and Other Income Nel deferred funding for Retirement Benefits Transfer (to) / from Capital Account Total Income Expenditure Marketing and Promotional Expenditure Food Dude National Roll Out Quality Assurance Schemes Marketing Finance Pay Operating Expenditure Total Expenditure Operating surplus Interest receivable Interest payable _ Notes 2a 2b 2c 2d 2e 12b 3 se Sb 6 A Net surplus for the financial year before Retirement Benefit Contribution to the Exchequer Retirement Benefit Contribution to the Exchequer Net deficit for the financial year after Retirement Benefit Contribution to the Exchequer Retained Revenue Reserves at 1 January Retained Revenue Reserves at 31 December All Income and expenditure for the year relates to continuing activities at the reporting date.
2015 €'000 2014 Restated eooo 30,836 27,282 2,775 5,742 700 5,456 8,256 3,073 56,838 (62) 56,776 32,809 2,775 5,741 933 11,450 2,596 56,304 472 2 (14) 460 (699) (239) 564 _________ 325 1,926 5,215 616 5,715 6,459 3,013 50,226 4 50,230 28,047 1,926 5,215 819 11,112 2,392 49,511 719 13 (14) 718 (718) 0 564 564 Statement of Comprehensive Income for the finandal year ended 31 December Net deficit for the year Actuarial Gain / (Loss) on Retirement Benefit Scheme Liabilities Adjustment to Deferred Retirement Benefit Funding Total Comprehensive Income for the year Notes 12 12 2014 Restated eooo - (8,854) 8,854 2015 €'000 (239) 2,043 (2,043) (239) The statement of Cash Flows and Notes 1 to 19 form part of these financial statements Aldan Cotter Chief ExecuU^ Date: \; —T Page 3 of 16 statement of Financial Position as at 31 December ASSETS EMPLOYED Fixed Assets Property, plant and equipment Current Assets Inventories Trade and Other Receivables Cash and cash equivalents Current Liabilities; amounts falling due within one year Trade and Other Payables Net Current Assets Total Assets less currant liabilities Long Term Liabilities^ amounts falling due after more than one year Provision for Liabilities and Charges Retirement Benefit Liabilities Oeferred Retirement Benefit Funding Total Assets less Liabilities FINANCED BY Capital and reserves Capital account Statement of Income and Expenditure and Retained Revenue Reserves The Statement of Cash Flows and Notes 1 to 19 form part of these financial statements.
Michael Carey Chairman Date Noles 9 10 13 12 12 3 2015 €'000 2014 Restated €000 210 148 2 3,398 4,038 8,038 7,085 953 1,163 3 2.562 6,314 6,679 7,701 1,178 1,326 628 614 (52,583) 52,583 ■- (52,053) 52,053 535 712 210 325 535 148 564 _____ 712 Page 4 of 16 STA TEMENT OF CASH FLOWS ~for the financial year ended 31 December Cash flows from operating activities (Deficit) for the financial year Adjustments for: Depreciation of tangible assets Capital Account Transfer Interest received Decrease in inventories (Increase) in trade and other receivables (Decrease) / Increase in trade and other payables Increase / (Decrease) in other provisions Nel Cash (Outflow) I Inflow from Operating Activities Cash flows from investing activities Purchases of properly, plant and equipment Interest received Net cash from investing activities Cash and cash equivalents at 1 January Cash and cash equivalents 31 December 2015 €'000 (239) 126 62 (2) 1 (836) (616) 14 (1.490) (188) 2 (186) 6,314 4,638 2014 Restated eooo - 84 (4) (13) 0 (581) 1,684 (14) 1.156 (80) 13 (67) 5,225 6,314 Page 5 of 16 (31 Inventory inventory is measured using the First In, First Out (FIFO) method.
(4) Trade and Other Receivables Short term receivables are measured at transaction price, less any provisions for doubtful debts.

Known bad debts are written off.


(5) Trade and Other Payables Short term payables are measured at the transaction price (6) Provisions for Liabilities and Charges Provisions are recognised when Bord Bia has a present obligation (legal or constructive) as a result of a past event, which It is probable that the organisation wilt be required to settle, and a reliable estimate can be made of the amount of such obligation.
The amount recognised as a provision for such obllgtions is the best estimate of the consideration required to settle the obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation Is recognised at present value using a pre-tax discount rale where appropriate.
The unwinding of the discount Is recognised as a finance cost In in the Statement of I ncome and Expenditure and Retained Revenue Reserves in the period It arises.

Notes forming part of the Financial Statements for the financial year ended 31 December 1.
ACCOUNTING POLICIES (a) Basis of preparation: The financial statements for year ended 31 December 2015 have been prepared in accordance with Financial Reporting Standard 102 - The Financial Reporting Standard applicable In the United Kingdom and Republic of Ireland issued by the Financial Reporting Council (FRC), as promulgated by Chartered Accountants Ireland ("FRS102”), and with the An Bord Bia Act, 1994.

The financial statements have been prepared on the historical cost convention.
The following accounting policies have been applied consistently in dealing with Items which are considered material In relation to an Bord Bia's financial statements.

2015 is the first year in which the financial statements have been prepared under FR5102.

Refer to note 16 for an explanation of t he transition.

2014 comparative figures have been restated as required.

The date of transition to FRS 102 is 1 January 2014.

The financial statements are presented In Euro (C), the functional currency.
(b) Critical accounting judgments and estimates Preparation of the financial statements requires management to make critical accountingjudgements, assumptions and estimates.
The items in the financial statements where these Judgments and estimates have been made include: - Income from domestic levies is based on the est mated number of slaughtered livestock; - Provisions for doubtful trade receivables; - Provisions for retirement benefit liabilities; - Provisions for depreciation; - Provisions for Impairment of Property, Plant and Equipment; and ' Provisions for building dilapidations.
(c) Income Income shown in ths financial statements under Oireachtas Grants represents the actual receipts from this source in the period.

Income from the Quality Assurance Schemes Special Funding, the Food Dude National RoH-Out and Food Promotions Special Funding Is released to revenue In line with expenditure and any balances due to or from Bord Bia are Included in Trade and Other Receivables and Trade and Other Payables as appropriate.
Income arising from the export Statutory Levy is accounted for on the accruals basis with the exception of five exports of sheep and pigs which are accounted for on a cash received basis.

(d) Principal accounting policies (i) Property, plant and equipment Property, plant and equipment are funded from Oireachtas grants and are measured at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets, over their expected useful lives, using the stra'ght-llne method.
The rates applicable are: Leasehold improvement Furniture and fittings Office equipment Gtmputer equipment 10% 12.5% 20% 33 3% (2) Impairment af Property, Plant and Equipment At each reporting date Property, Plant and Equ pment are reviewed to determine whether there Is any indication that those assets have suffered an impairment loss.
If there Is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount, if estimated recoverable amount is lower, the carrying amount Is reduced to its estimated recoverable amount, and an impairment ;oss Is recognised immediately in the Statement of Income and Expenditure and Retained Revenue Reserves.

Page 6 of 16 |e) Employee benefits Retirement Benefits There are three Superannuation Schemes In operation within Bord Bia.
The Bord Bia main scheme is an unfunded scheme since 31“ December 2009.

Prior to 1“ January 2010 employerand employee contributions were paid Into a fund.

Under the terms of the Financial Measures (Miscellaneous Provisions) Act, 2009, the assets of the scheme were transferred to the National Pension Reserve Fund with effect from 31“ December 2009.

The scheme continues In being for existing members.
From 1“ January 2010, Bord Bia became responsible for the administration of the retirement benefit payments to pensioners on behalf of the Exchequer.

Under the new arrangement the funding contribution will continue in being and is payable to the Department of Agriculture, Food and the Marine after taking account of retirement benefits paid.

The Department will provide funding where the retirement benefits paid exceed the funding and employee contributions.
With regard to employees of the former Bord Gias, a non- contributory defined benefit retirement benefit scheme and a contributory spouses and children's scheme are operated on an administrative basis pending the authorisation of the schemes by the Minister for Public Expenditure and Reform.

Under the provisions of An Bord Bia (Amendment) Act, 2004, all staff of the former Bord Gias were transferred to Bord Bia with effect from 1“ July 2004.
The new Single Public Service Pension Scheme ("Single Scheme") commenced with effect from 1 January 2013.

AH new entrants to pensionable public service employment on or after 1 January 2013 are, in general, members of the Single Scheme.

The rules of the Single Scheme are set down in the Public Serv ce Pensions (Single Scheme and Other Provisions) Act 2012.

Retirement benefit costs reflect retirement benehts earned by employees in the year.
An amount corresponding to the retirement benefit charge is recognised as Income to the extent that it Is recoverable, and offset by Grants received in the year to discharge retirement benefit payments for the Bord Gias scheme and any defic t in funding arising on the Bord Bia scheme.
Actuarial gains or losses arising on scheme liabilities are reflected in the Statement of Comprehensive Income and a corresponding adjustment Is recognised in the amount recoverable from the Department of Agriculture, Food and the Marine.

Retirement Benefit Liabilities represent the present value of future retirement benefit payments earned by staff to date.
Deferred Retirement Benefit Funding represents the corresponding asset to be recovered in future periods from the Department of Agriculture, Food and the Marine.

Short-term benefits Short-term benefits such as holiday pay are recognised as an expense In the year, and benefits that are accrued at year- end are included in the 'Trade and Other Payables' figure In the Statement of Financial Position.
(f) Foreign currency translation In preparing the financial statements, transactions In currencies other than the functional currency ("foreign currencies") are recognised at the spot rate at the dates of the transactions or at an average rate where this rate approximates the aaual rate at the date of the transaction.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date.
Non-monetary items that are measured In terms of historical cost In a foreign currency are not retranslated.

Exchange differences are recognised In the Statement of Income and Expenditure and Retained Revenue Reserves In the period In which they arise.

(g) Leased Assets Rentals in respect of operating leases are charged to the Statement of Income and Expenditure and Retained Revenue Reserves as Incurred.
|h) Capital Account The capital grant element of Oireachtas grants received by Bord Bia is credited to the Capital Account as set out in note 3, and is transferred to the Statement of Income and Expenditure and Retained Revenue Reserves over the expected useful lives of the assets to which it relates.

In line with depreciation.

(i) Taxation Provision has been made in respect of all VAT, withholding tax, payroll liabilities.
Page 7 of 16 Notes forming part of the Financial Statements for the finandat year ended 31 December 2.

OPERATING INCOME (a) Amounts included under the heading of Food Dude - National Roll-Out totalling €2.775,000 arise in respect of funding made available by the Department of Ag riculture, Food and the Marine (Sub-head Al 0) to cover the costs of the roll-out of the Food Dude healthy eating programme on a national basis.
(b) Amounts included under the heading of the Quality Assurance Scheme Special Fund totalling €5,742,000 arise in respect of funding made available by the Department of Agriculture, Food and the Marine (Sub-head A10) Io cover the costs of Independent on-farm inspections and associated certification processes under the Bord Bia Quality Assurance Scheme.
(c) Amounts included under Food Promotions Special Funding arise in respect of funding made available by the Department of Agriculture, Food and the Marine (Sub-heads AID and C5) in respect of the following programmes: 2015 eooo 2014 €000 Bloom Garden Festival Domestic & Small Business Organic Promotion Biofach Organic trade fair Lamb Promotion Mushrooms promotions Farmhouse Cheese Potato Promotion 16 69 , 207 266 83 59 700 (d) An Bord Bia Act, 1994, provides for payment to the Board of a levy per head on slaughtered or exported livestock.
Under section 37 of the Act, the rates were set at €l .90 per head for cattle, 25c per head for sheep and 35c per head for pigs.

(e) Project and other income includes industry contributions to joint promotions, trade fairs, information services and seminar and conference fees.

3.

CAPITAL ACCOUNT The Capital account represents the cummulative grants received that have been transferred from the Statement of Income and Expenditure and Retained Revenue Reserves.
The Reserves represent die cummulative surplus of income over expenditure Capital Account Balance at 1 January Amount capitalised In respect of purchased fixed assets Amounts released on disposal of fixed assets Amortisation in line with asset depreciation Net transfer from / (Io) the Statement of Income and Expenditure and Retained Revenue Reserves Balance at 31 December 2015 €'000 148 IBS 0 (126) 62 210 IS 144 71 317 69 616 2014 €000 152 80 0 (84) (4) 148 Page 8 of 16 Notes forming part of the Financial Statements for the financial year ended 31 December 4.
OPERATING EXPENDITURE The nel deficit is stated after charging Depreciation of property, plant and equipment Rent and Rales Auditor's remuneration General Business Expenses Total S. MARKETING AND PROMOTIONAL EXPENDITURE (a) Promotions Marketing Development Trade Fairs and Exhibitions Information Services - Research Information - Other Services Quality Assurance Trade Development Technical Support - Pigmeat Sector Other Client Services Fellowship Plus 2015 €'000 12E 1,192 25 1,253 2,596 5,080 5,832 8,131 569 4,044 2,684 4,139 368 172 1,790 2014 €’000 84 1,054 25 1,229 2,392 6,421 6,707 4,722 2,104 1,354 1,668 3,120 345 144 1,462 (b) Marketing Finance In 2015 grants totalling €805,000 (€819,000 in 2014) were made under the Marketing Assistance Programmes and grants totalling €125,000 (€0 in 2014) were made under the Step Change Programme.
________ 32,809 28,047 Page 9 of 16 Notes forming part of the Financial Statements tor the financial year ended 31 December 6.
PAY Staff costs during the financial year were as follows: Wages and salaries Social welfare costs Retirement benefit costs Split of Employee Costs Marketing and promotion Administration Average number of employees Marketing and promotion Administration 2015 €'000 2014 Restated €000 7,367 1,010 3,073 7,547 552 3.013 11,450 11,112 10,102 1,348 9.363 1,749 11,450 11,112 Number Number 78 17 _____________ 95 72 16 88 In accordance with Department of Public Expenditure and Reform circular 13/2014 the following outlines the employee benefits greater than €60,000 in 2015.
Note the following are before any deduction related to the public sector pension levy.
Employee benefits €60,000 IO €70,000 €70,000 to €80,000 €80,000 to €90.000 €90,000 to €100,000 €100,000 to €110,000 €110,000 to €120,000 €120,000 to €130.000 €130.000 to €140,000 €140,000 to €150,000 The remuneration of the Chief Executive included in the above pay costs is as follows: Salary Number of Employees 2014 2015 21 20 8 4 5 1 1 15 20 9 2 7 1 1 € € 149,175 149,175 In addition, the Chief Executive is a member of the Bord Bia Superannuation Scheme and has retirement benefit entitlements which do not extend beyond the standard entitlements in the model public sector defined benefit superannuation scheme The total number of employees (including part-time persons) at 31 December 2015 was 95 (2014; 88).
The cost of certain part-lime employees amounting to €38,824 (2014; €82,097) is included in Marketing and Promotional expenditure.

A total of €387,715 (2014; €392,014) was deducted from employees during the year by way of pension levy and was paid over Io the Department of Agriculture, Food and the Marine.

Note: The above salary ranges are inclusive.
Page 10 of 16 Notes forming part of Financial Statements for the financial year ended 31 December 7, REMUNERATION IN RESPECT OF BOARD MEMBERS WAS AS FOLLOWS: Board Members' fees are as follows: Ms. M. Byrne*' Mr. M. Carey" Mr. J. Comer Mr. E. Downey Ms. R. Doyle Mr. F. Hayes* Mr. R. Holland* Mr. J. Horgan* Ms. C. Keeling* Mr. T. Keohane Mr. T. Moran Prof. F. O'Gara Mr. R. O'Rourke*** Mr. B. Sweeney Mr, P. Whelan Mr, J, Kingston*** Mr. M, Cronin*** Mr. G. Brown*** Total Amounts paid to Board Members for travel and subsistence expenses Amounts paid to Sub-Board Members for travel and subsistence expenses • Indicates those Board Members who have waived part or all of the foe payable, as a Board Member.
In 2015.

•• No fees are payable to Ms. M. Byrne, Principal Officer.

Department of Agriculture.

Food and the Marine **' Indicates those Board Members whose membership of the Board ceased during 2014.

8.
PROPERTY, PLANT AND EQUIPMENT 2015 € 11,970 11,937 6,726 6,726 6,726 11,970 6,727 6,726 - - 2014 11.970 10.970 9.19B • 10,970 9.199 9.199 9,199 9,199 69,508 79,905 7,164 10,751 19,831 19.855 Cost At 1 January 2015 Additions Disposals At 31 December 2015 __ Depreciation At 1 January 2015 Charged for the financial year Disposals At 31 December 2015 Net book amount at 31 December 2015 Net book amount at 31 December 2014 Leasehold improvements Furniture and II tt Ings Computer equipment Office equipment €000 1,615 • 1,615 * 1.596 4 1,600 IS 19 €000 603 17 (6) 614 • 559 12 (6) 565 49 44 €'000 681 168 (31) 818 - 619 100 (31) 688 130 62 €000 197 3 (10) 190 - 174 10 (10) 174 16 23 Total 3.096 168 (47) 3,237 - 2,948 126 (47) 3,027 210 148 Page 11 of 16 Notes forming part of the Financial Statements lor the financial year ended 31 December 9.
TRADE AND OTHER RECEIVABLES Amounts falling due within one year Trade Receivables Less: provision for bad debts Prepayments and accrued Income 10, TRADE AND OTHER PAYABLES Amounts falling due within one year Trade Payables Exchequer retirement benefit contributions Taxation and Social welfare (note 11) Accruals* Deferred Income 2015 €'000 2,773 (373) 2,400 998 _____ 3,398 2,288 477 1,346 2,734 242 7,085 2014 Restated €000 1,175 (453) 722 1.840 2,562 2,911 644 746 2,837 563 7,701 Trade payables are Io be settled al various dates over the coming months in accordance with the suppliers' usual and customary credit terms.
* fncludes Holiday pay accrual of €154,000 (€84 000 in 2014).

Short term benefits such as holiday pay are recognised as an expense in the year, and benefits that are accrued at year end are included in the Trade and Other Payables figure in the Statement of Financial Position 11.
TAXATION AND SOCIAL WELFARE Amounts falling due within one year VAT* Withholding Tax* Payroll taxes PRSI 461 454 273 158 140 403 138 65 1,346 ________ 746 In the 2014 Annual Report, VAT (€140,000) was recorded under ‘Accrue.s' and Withholding lax was shown separately in note 9 Io the financial statements.

An Bord Bia is not liable Io corporate taxes in Ireland or in the countries in which it operates because it Is a non-commercial Slate-sponsored body.
An Bord Bia Is liable Io employer taxes in Ireland and complies with related withholding, reporting and payment obligations in all countries in which it operates.

Page 12 of 16 Notes forming part of the Financial Statements lor the financial year eroded 31 December 12.

RETIREMENT BENEFIT COSTS a 1} Analysis of total retirement benefit costs charged to the Statement of Income and Expenditure and Retained Revenue Reserves.
Service cost Employee contributions Current service cost Interest cost Total 2015 €'000 2014 €000 2.270 1,936 <297)___________ (31^ 1,622 1,973 1,162 3J3S 1,452 3,074 a ti) Contribution to the Exchequer In accordance with the Financial Measures (Miscellaneous Provisions) Act 2009 and the arrangements set out in the accounting policies, contributions payable Io the Exchequer amounted Io €699,565 in the year (2014; €717,687).
An amount of €477,380 was due at 31 December 2015 (2014: €643,620) in respect of employee deductions, including the New Single Pension scheme and contributions payable to the Exchequer after offsetting retirement benefits payable under the Bord Bia scheme.
a III) Analysis of amount recognised in Statement of Comprehensive Income Experience gains Changes In assumpUons Total remeasurement effects recognised b I) Present value of scheme obligations Present value of scheme obligations at beginning of year Service Cost Interest Cost Actuarial (gain)/loss Benefits paid Present value of scheme obligations at end of year b 11) Deferred Funding Asset 2,043 2,043 52,053 2,270 1,162 (2,043) (859) (9.805) (8.854) 40,846 1.936 1.452 8.854 (1,035) 52,583 52.053 Under the terms of the Financial Measures (Miscellaneous Provisions) Act 2009, the assets of the Bord Bia Superannuation Schemes were transferred to the National Pension Reserve Fund with effect from 31 December 2009.
The retirement benefit schemes associated with these funds continue in force for existing members with no impact on their benefits or associated provision for members.

The Department of Agriculture, Food and the Marine will provide funding where the retirement benefits paid exceed contributions.

An Bord Bia has adapted the treatment and disclosures required by the accounting standard.

Financial Reporting Standard 102 (Section 28) to reflect the arrangements in operation.
While the funding arrangement operates on a net pay over basis with the Etepartment, An Bord Bia believes the nature of the arrangement is akin to a full reimbursement of the retirement benefit liability when those liabilities fall due for payment and therefore recognises its right to the reimbursement as a separate asset in the amount equal to the liability at the year end.
An Bord Bia also recognises an asset corresponding to the unfunded liability for retirement benefits on the Bord Gias scheme on the basis of a number of assumptions and past events, including the statutory basis for the establishment of the superannuation schemes and the policy and practice currently in place in relation to funding public senrices retirement benefits.

Including the annual estimates process.

Page 13 of 16 Notes forming part of the Financial Statements for the.
financial year ended 31 December 12.

RETIREMENT BENEFIT COSTS (Confd) b II) Deferred Funding Asset (cont'd) A deferred funding asset of €52.583 million equal to the retirement benefit liability is recognised at 31 December 2015 (2014 €52.053 million).
The deferred funding asset at the year end was determined after taking into account net deferred funding for retirement benefits in the year of €3.073 million and adjustments aris ng from the actuarial gain of €2.043 million and from retirement benefits payable under the Bord Bia scheme of €709.087 which were offset against the contribution payable Io the Exchequer.

b III) Net Deferred Funding for Retirement Benefits recognised in the Statement of Income and Expenditure and Retained Revenue Reserves.
Funding recoverable in respect of current year retirement benefit costs Oireachtas Grants applied to retirement benefit payments (An Bord Gias scheme) c) Description of schemes and actuarial assumptions 2015 €'000 3,135 (62) 3,073 2014 €000 3,074 (61) 3,013 TTie Board operates three defined benefit superannuation schemes for certain eligible employees.
1) The Bord Bia main scheme, for which the approval of the Minister for Agriculture, Food and the Marine and the Minister for Public Expenditure and Reform has been received.

Until 31 December 2009, the contributions of employees and Bord Bia were paid into a fund managed by the trustees.

As detailed under note 12b il) above, the assets of the scheme were transferred Io the National Pension Reserve Fund with effect from 31 December 2009.

2) The former Bord Gias scheme.


This consists of a non-coniributory defined benefit retirement benefit scheme and a contributory spouses and children's scheme which is operated on an administrative basis pending the authorisation of the schemes by the Minister for Public Expenditure and Reform.

3) The Single Public Service Pension Scheme.

The njles of the Single Scheme are set down in the Public Service Pensions (Single Scheme and Other Provisions) Act 2012.
An Bord Bia meets the cost of current retirements.

These are paid out of current income.

Contributions received by An Bord Bia from members of the contributory unfunded schemes outlined above are used Io part fund ongoing retirement benefit liabilities.

An actuarial valuation of the Bord Bia Superannuation Schemes was carried out as al 31 December 2015 for the purpose of preparing this FRS102 disclosure.

The liabilities and costs have been assessed using the projected unit method.
Financial assumptions The principal actuarial assumptions used to calculate the retirement benefit obligations under FRS102 were as follows.
Discount Rate Inflation Rale Salary Increases Retirement benefit increases for in payment benefits Retirement benefit increases for deferred benefits Plan membership census date 31/12/2015 2.35% 1.70% 3.95% 3.45%/1.7% 3.45% /1.7% 31/12/2015 31/12/2014 2.25% 1.60% 3.85% 3.35% /1.6 % 3.35% /1.6 % 31/12/2014 The following amounts were measured in accordance with the requirements of FRS102.
Demographic assumptions The mortality table is 88% of ILT15 (Males) for males and 91% of 1LT15 (Females) for females, with the 2013 CSO mortality improvements applying from 2010.

Representative rates are shown below.

The expected lifeUme of a participant who is age 65 and the expected lifetime (from age 65) of a participant who will be age 65 in 25 years are shown in years below based on the above mortality tables.
Age 65 65 In 25 years Males 20 9 24.0 Females 23.5 26.1 Page 14 of 16 Notes forming part of the Financial Statements for the financial year ended 31 December 12.
RETIREMENT BENEFIT COSTS (Cont'd) d) History of defined benefit obligations, assets and experience gains and losses Defined benefit obligations Fair value of scheme assets Deficit on Superannuation Schemes 2015 €'000 52,583 - 2014 €'000 52,053 - (52,583) (52.053) Experience adjustments on scheme obligations Experience adjustments on scheme assets 2,043 - (6.854) - 13.
PROVISION FOR LIABILITIES AND CHARGES At 1 January 2015 Additions At 31 December 2015 2013 €'000 40,846 - (40.846) 4,261 - Dilapidations €'000 601 14 2012 eooo 2011 €'000 42,143 26.117 (42,143) (26,117) (14,092) * VAT eooo 13 - __________ 615 _________ 13 The provision in respect of Value Added Tax relates to adjustments to amounts recovered from overseas jurisdictions in prior years The provision for dilapidations comprises the estimated cost of reinstatement of leasehold properties in accordance with obl^ations under operating teases.
14.

COMMITMENTS Funding In terms of the Marketing Finance Programmes operated by Bord Bia management have committed Io €932,000 (2014: €923,000) payments within the next 12 months.

There are no specific performance'relaled conditions attached Io these commitments other than that the Intended beneficiaries had to have incuned the expenditure before submitting their claims These commitments are in turn funded through the Oireachtas grant income.
At 1 January Additions At 31 December Operating leases The future minimum operating lease payments are as follows: Within one year Between one and five years Beyond five years 2015 €'000 923 9 932 2015 €'000 733 2,932 - An Bord Bia occupies premises at Clanwiiiiam Court, Lower Mount Street, Dublin 2 under a rental agreement.

This agreement which commenced in 2010, is for a period of ten years The total charges including rent, rates and other accommodation costs for these premises In 2015 was €785,000.
In addition, Bord Bia occupies ten other properties in various locations Internationally.

The rent paid on these premises in 2015 was €407,000.

15.

TRANSACTIONS WITH RELATED PARTIES Key management personnel compensation 2015 €’000 530 2014 €'000 526 Key management personnel compensation includes employee benefits paid to the senior members of the management team at a Grade 1 level.
Page IS of 16 632 - Total €'000 614 14 628 2014 eooo 911 12 923 2014 eooo 752 2.099 782 Notes forming part of the Financial Statements fbrthe ffna/idal year ended 31 December 16.
TRANSITION TO FRS102 Reconciliation of Capital and Reserves Hol* As at 1 Jan 2014 As at 31 Dec 2014 Capital and Reserves (as previously stated) Holiday pay accrual Dilapidations provision (16a) (i6b) €000 746 (60) 28 €000 762 (84) 14 Capital and Reserves (as re-stated) ____________ 716___________ _______________ 712 Reconciliation of the Surplus for the Year Note Year ended 31 Dec 2014 Surplus for the year (as preinously staled) Holiday pay accrual Dilapidations provision Surplus for the year (as re-stated) (tea) (16b) €000 36 (24) (14) (a) An Boid Bia had previously not accrued for holiday pay earned by employees but not availed of at the reporting date.
Under FRS 102 the financial statements must recognise such accruals The impact of this change is an increase of €64,000 in trade and other payables al 31 December 2014 and €60,000 al 1 January 2014.
The surplus Is reduced by €60,000 in the year ended 31 December 2013 and €24,000 in the year ended 31 December 2014 (b) Where the effect of the lime value of money is material, the amount expected Io be required to settle the obligation is recognised al present value using a pre-tax discount rate, where appropriate.

The unwinding of the discount is recognised as a finance cost in the Statement of Income and Expenditure and Retained Revenue Reserves In the period it arises.
The impact of this change is a decrease of €14,000 In the provision liability at 31 December 2014 and €28,000 at 1 January 2014.

The surplus is increased by €26,000 in the year ended 31 December 2013 and decreased by €14,000 in the year ended 31 December 2014, 17.
BOARD MEMBERS - DISCLOSURE OF TRANSACTIONS In the normal course of business the Board may approve grants and may also enter into other contractual arrangements with undertakings in which Bord Bia Board Members are employed or otherwise Interested The Board adopted procedures in accordance with the guidelines Issued by the Department of Public Expenditure and Reform in relation to the disclosure of interests by Board Members and these procedures have been adhered to by the Board during the year.
No grants were approved or paid during the year Io companies with which Board Members are associated.

18.

COMPARATIVE INFORMATION Comparative information has been reclassified where necessary to conform Io the current financial year information.

19.

APPROVAL OF FINANCIAL STATEMENTS The Board approved the financial statements on 23 June 2016.

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