Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697805319245.pdf (Ireland)
FOOD SAFETY AUTHORITY OF IRELAND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Food Safety Authority of Ireland Financial Statements for the Year ended 31 December 2022 Index Governance Statement and Board Members’ Report Statement on Internal Control Page 2 – 5 6 – 8 Report of the Comptroller and Auditor General 9 – 10 Statement of Income and Expenditure and Retained Revenue Reserves Statement of Financial Position as at 31 December 2022 Statement of Cash Flows for the year ended 31 December 2022 11 12 13 Notes to the Financial Statements 14 – 25 Food Safety Authority of Ireland Governance Statement and Board Members’ Report for the year ended 31 December 2022 Governance The Board of the the Food Safety Authority of Ireland (FSAI) was established under the Food Safety Authority of Ireland Act, 1998.
The functions of the Board are set out in Section 31 of the Act.

The Board is accountable to the Minister for Health and is responsible for ensuring good governance and performs this task by setting strategic objectives and targets and taking strategic decisions on all key business issues.

The regular day-to-day management, control and direction of the Food Safety Authority of Ireland are the responsibility of the Chief Executive Officer (CEO) and the senior leadership team.
The CEO and the senior leadership team must follow the broad strategic direction set by the Board and must ensure that all Board members have a clear understanding of the key activities and decisions related to the entity, and of any significant risks likely to arise.

The CEO acts as a direct liaison between the Board and management of the Authority.
Board Responsibilities The work and responsibilities of all those associated with the operation of the Board are set out in the Code of Practice for Board members, Chairperson, Chief Executive Officer and Secretary.

The Code also sets out the matters specifically reserved for Board decision.

Standing items considered by the Board include:  declaration of interests,  reports from committees,  financial reports/management accounts,  performance reports, and  reserved matters.
The Food Safety Authority Act, 1998, Section 26 (5), requires the Board of the Authority to prepare financial statements in such form as may be approved by the Minister for Health with the consent of the Minister for Public Expenditure and Reform, and to keep all proper and usual accounts of money received and expended by it.
In preparing these financial statements, the Board of the Food Safety Authority of Ireland is required to:  select suitable accounting policies and then apply them consistently;  make judgements and estimates that are reasonable and prudent;  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Authority will continue in operation; and  state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
The Board confirms that it has complied with the above requirements in preparing the financial statements.

2 Food Safety Authority of Ireland Governance Statement and Board Members’ Report for the year ended 31 December 2022 The Board is responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Authority and which enable it to ensure that the financial statements comply with Section 26 of the Act.
The maintenance and integrity of the corporate and financial information on the Food Safety Authority’s website is the responsibility of the Board.

The Board is responsible for approving the annual plan and budget.

There is an on-going evaluation of the performance of the Food Safety Authority of Ireland by reference to its annual business plan and budget.
The Board is also responsible for safeguarding its assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Board considers that the financial statements of the Authority give a true and fair view of the financial performance and the financial position of the Food Safety Authority of Ireland at 31 December 2022 except for non-compliance with the requirements of FRS 102 in relation to retirement benefit entitlements, as directed by the Minister for Health.

The Board approved the signing of this statement and the financial statements for the year ended 31 December 2022 on 27 June 2023.
The Board consists of a Chairperson and 9 ordinary members, all of whom are appointed/re-appointed by the Minister for Health.

The members of the Board were appointed for a period of either 3 or 5 years and meet 9 times per annum.
The table below details the appointment period for members serving during the year: Board Members Role Date Appointed Mr. Martin Higgins Chairperson February 2016 (Ordinary Member) Ms. Mary Cullen Prof. Francis Butler Mr. Gerard McCurdy Dr. Cliodhna Foley-Nolan Ordinary Member October 2019 Prof. Martin Cormican Ms. Ann Horan Ordinary Member June 2016 Ordinary Member May 2019 Ordinary Member May 2019 Ordinary Member Ordinary Member June 2021 June 2021 Mr. Patrick Knight Ms. Eilis O’Brien Ms. Lisa Manselli Ordinary Member Ordinary Member Ordinary Member June 2021 January 2023 January 2023 Latest Re-appointment Date Appointed Chairperson in February 2018 June 2021 – May 2022 October 2022 – – – – – Additional Detail Term ended Feb 2023 – – – – – Appointed as Acting Chairperson Feb 2023 – – – During 2022 the Board completed an effectiveness survey which sought to assess the Board’s performance, the strength of its enabling processes and structures as well as its obligations under the annex on gender balance, diversity and inclusion.
The Board is scheduled to review the resulting report from the survey in 2023.

3 Food Safety Authority of Ireland Governance Statement and Board Members’ Report for the year ended 31 December 2022 Gender Balance in the Board membership As at 31 December, the Board had 3 (37.5%) female and 5 (62.5%) male members, with 2 positions vacant.

The Board therefore did not meet the Government target of a minimum of 40% representation of each gender in the membership of State Boards.
In January 2023, the Department of Health appointed 2 new Board members.

The impact of these appointments resulted in the gender balance of the Board becoming 50% female, 50% male.

The Board has established two sub-committees, the Audit and Risk Committee (ARC), and the Performance & Development Committee (PDC).

The ARC comprises three Board members and one independent member.
The role of the ARC is to support the Board in relation to its responsibilities for issues of risk, control and governance and associated assurance.

The ARC is independent from the financial management of the organisation.

In particular the Committee ensures that the internal control systems including audit activities are monitored actively and independently.

The ARC reports to the Board after each meeting.


The members of the Audit and Risk Committee are: Mr. Gerry McCurdy (Chair), Dr. Cliodhna Foley- Nolan, Ms. Ann Horan and Mr. Fergal Ó’Briain.

There were 4 meetings of the ARC in 2022.

The PDC comprises three Board members.

The role of the PDC is to devise and implement an appropriate mechanism to assess the performance of the CEO and, through the CEO, to review the performance of the FSAI Executive Team.
As required, the PDC sets remuneration for the CEO as directed by the Department of Health, develops the job description, identifies the relevant competencies and ideal candidate profile for the post, agrees the recruitment and search process, and sets a specific timetable.

The PDC convenes as required by the Board and reports to the Board after each meeting.

The members of the PDC are Mr. Martin Higgins (Chair), Ms. Mary Cullen and Mr. Patrick Knight.

There were 4 meetings of the PDC in 2022.


4 Food Safety Authority of Ireland Governance Statement and Board Members’ Report for the year ended 31 December 2022 Schedule of Attendance, Fees and Expenses A schedule of attendance at the Board and Committee meetings for 2022 is set out in Note 4(c) of the Financial Statements.

Key Personnel Changes There were no changes in the make up of the Board during 2022.

In January 2023 Ms. Eilis O’Brien and Ms. Lisa Manselli were both appointed for a 3 year term.
Disclosures Required by Code of Practice for the Governance of State Bodies (2016) The Board is responsible for ensuring that the Authority has complied with the requirements of the Code of Practice for the Governance of State Bodies (“the Code”), as published by the Department of Public Expenditure and Reform in August 2016.
The following disclosures are required by the Code:  employee short-term benefits breakdown - set out in note 4 (b) to the financial statements,    consultancy costs - set out in note 4 (h) to the financial statements, legal costs and settlements - set out in note 4 (h) to the financial statements, travel and subsistence expenditure - set out in note 4 (a) and 4(c) to the financial statements, and  hospitality expenditure - set out in note 4 (f) to the financial statements.
Statement of Compliance The Board has adopted the Code of Practice for the Governance of State Bodies (2016) and has put procedures in place to ensure compliance with the Code.

The Food Safety Authority of Ireland operated in compliance with the Code of Practice for the Governance of State Bodies for 2022.
On behalf of the Board of the Food Safety Authority of Ireland Ms. Ann Horan Acting Chairperson Dr. Pamela A. Byrne Chief Executive Officer 27 June 2023 27 June 2023 5 Food Safety Authority of Ireland Statement on Internal Control for the year ended 31 December 2022 Scope of Responsibility On behalf of the Food Safety Authority of Ireland (FSAI), we acknowledge the Board’s responsibility for ensuring that an effective system of internal control is maintained and operated.
This responsibility takes account of the requirements of the Code of Practice for the Governance of State Bodies (2016).

Purpose of the System of Internal Control The system of internal control is designed to manage risk to a tolerable level rather than to eliminate it.
The system can therefore only provide reasonable and not absolute assurance that assets are safeguarded, transactions authorised and properly recorded and that material errors or irregularities are either prevented or detected in a timely way.
The system of internal control, which accords with guidance issued by the Department of Public Expenditure and Reform, has been in place in the Authority for the year ended 31 December 2022 and has been maintained up to the date at the time of approval of the financial statements.

In addition, the Board is provided with further assurance as to the quality of the Authority’s internal control as the FSAI is certified to the Quality Management System Standard ISO 9001:2015.
This Standard confirms that the Authority operates a set of policies, processes and procedures appropriate for planning and execution of its core business.

Capacity to Handle Risk The FSAI has an Audit and Risk Committee (ARC) comprising 3 Board members and 1 external member, with financial and audit expertise.

The ARC met 4 times in 2022.

The FSAI has an internal audit function as defined in the Board’s Charter for Internal Audit.

The Authority has outsourced its Internal Audit Function to BDO Ireland.
The work of the internal audit function 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 plans have been endorsed by the ARC and approved by the Board.

The Internal Auditor provides the Board with reports of internal audit activity.
The ARC has developed a risk management policy that sets out risk management processes and details the roles and responsibilities of staff in relation to risk.

The policy has been issued to all staff who are expected to work within the Authority’s risk management policies, to alert management on emerging risks and control weaknesses and assume responsibility for risks and controls within their own area of work.
Risk and Control Framework The FSAI has implemented a risk management system which identifies and reports key risks and the management actions being taken to address and, to the extent possible, to mitigate those risks.

A risk register is in place which identifies the key risks facing the Authority and these have been identified, evaluated and graded according to their significance.

The register is updated by the Senior Leadership Team and presented to the ARC and Board as a standing item.
The outcome of these assessments is used to plan and allocate resources to ensure risks are managed to an acceptable level.

6 Food Safety Authority of Ireland Statement on Internal Control for the year ended 31 December 2022 The risk register details the controls and actions needed to mitigate risks and responsibility for operation of controls assigned to specific staff.
We confirm that a control environment containing the following elements is in place:  procedures for all key business processes have been documented,  financial responsibilities have been assigned at management level with corresponding accountability, there is an appropriate budgeting system with an annual budget which is kept under review by senior management, there are systems aimed at ensuring the security of the information and communication technology systems, there are systems in place to safeguard the assets, and control procedures over the use of grant monies and the allocation of funding to outside agencies to ensure adequate control over approval of such monies so as to ensure grant funding has been applied for the purpose intended.
    The FSAI makes payments to local authorities in relation to the provision of veterinary services.

Annual service contracts are agreed with local authorities.

Payments are based on quarterly claims from the local authorities based on activity levels.
Ongoing Monitoring and Review Formal procedures which have been established for monitoring control processes and control deficiencies are communicated to those responsible for taking corrective action and to management and the Board, where relevant, in a timely way.
We confirm that the following ongoing monitoring systems are in place:    key risks and related controls have been identified and processes have been put in place to monitor the operation of those key controls and report any identified deficiencies, reporting arrangements have been established at all levels where responsibility for financial management has been assigned, and there are regular reviews by senior management of periodic and annual performance and financial reports which indicate performance against budgets/forecasts.
Procurement We confirm that the FSAI has procedures in place to ensure compliance with current procurement rules and guidelines.

Matters arising regarding controls over procurement are highlighted under internal control issues below.

Impact of Covid-19 pandemic to the Control Environment The onset of the COVID 19 pandemic, in early 2020, and the resulting public health advice and safety measures rapidly changed the working practices of the FSAI.
The FSAI monitored the developments closely and sought to mitigate the risks that may have impacted affect the FSAI’s business operations, staff and stakeholders.

Actions taken by the FSAI, during 2022, included: -  Maintain the operation of FSAI in a remote working environment for the purpose of ensuring continuity of service provision.

In October 2022 the FSAI commenced a pilot hybrid working environment to assess the impact on business deliverables.
An assessment of this pilot is due to be completed by Q2 2023.

 Ongoing COVID-19 risk assessments for staff and stakeholders.

 Continual assessment of significant risks affecting the FSAI, the impact of COVID-19 on these risks and the agility of FSAI to respond effectively.

 Ensuring robust segregation of duties remains and adequate cover is in place should specific approving authorities be unavailable.
 Ensuring all existing data protection and records management policies and procedures continue to apply as normal.
7 Food Safety Authority of Ireland Statement on Internal Control for the year ended 31 December 2022  Assess potential for weaknesses in internal controls resulting from COVID-19 and took measures to monitor and update internal controls where necessary Review of Effectiveness We confirm that the Authority has procedures to monitor the effectiveness of its risk management and control procedures.
The FSAI’s monitoring and review of the effectiveness of the system of internal control is informed by the work of the internal and external auditors and the Audit and Risk Committee which oversees their work and the senior management within the Authority responsible for the development and maintenance of the internal control framework.

We confirm that the Board conducted an annual review of the effectiveness of the internal controls for 2022 in March 2023.
Internal Control Issues Procurement During 2022 expenditure of €694,750 including VAT was incurred in relation to seven contracts for services where the procedures employed did not comply with procurement guidelines:  Approximately €221,000 relates to the provision of temporary ICT staff.

These were previously disclosed in 2021.

FSAI expects to regularise these contracts, as part of capital project developments, however market constraints have hampered progress in this regard.
 Approximately €107,750 relates to the provision of legal services.

A procurement exercise with the OGP has been concluded to regularise this contract.

 The remaining amounts, totalling €366,000, relate to expenditure incurred on expired contracts.

The Authority is currently considering its service requirements regarding these contracts.

There were no internal control weaknesses identified during 2022 other than those disclosed above.

On behalf of the Board of the FSAI.
Ms. Ann Horan Acting Chairperson Dr. Pamela A. Byrne Chief Executive Officer 27 June 2023 27 June 2023 8 Ard Reachtaire Cuntas agus Ciste Comptroller and Auditor General Report for presentation to the Houses of the Oireachtas Food Safety Authority of Ireland Qualified opinion on the financial statements I have audited the financial statements of the Food Safety Authority of Ireland for the year ended 31 December 2022 as required under the provisions of section 26 of the Food Safety Authority of Ireland Act 1998.
The financial statements have been prepared in accordance with Financial Reporting Standard (FRS) 102 — The Financial Reporting Standard applicable in the UK and the Republic of Ireland and comprise     the statement of income and expenditure and retained revenue reserves the statement of financial position the statement of cash flows, and the related notes, including a summary of significant accounting policies.
In my opinion, except for the non-compliance with the requirements of FRS 102 in relation to retirement benefit entitlements referred to below, the financial statements give a true and fair view of the assets, liabilities and financial position of the Food Safety Authority of Ireland at 31 December 2022 and of its income and expenditure for 2022 in accordance with FRS 102.
Basis for qualified opinion on financial statements In compliance with the directions of the Minister for Health, the Food Safety Authority of Ireland accounts for the costs of retirement benefit entitlements only as they become payable.

This does not comply with FRS 102 which requires that the financial statements recognise the full cost of retirement benefit entitlements earned in the period and the accrued liability at the reporting date.
The effect of the non-compliance on the Food Safety Authority of Ireland’s financial statements for 2022 has not been quantified.

I conducted my audit of the financial statements in accordance with the International Standards on Auditing (ISAs) as promulgated by the International Organisation of Supreme Audit Institutions.

My responsibilities under those standards are described in the appendix to this report.
I am independent of the Food Safety Authority of Ireland and have fulfilled my other ethical responsibilities in accordance with the standards.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Report on information other than the financial statements, and on other matters The Food Safety Authority of Ireland has presented certain other information together with the financial statements.
This comprises the annual report, the governance statement and Board members’ report, and the statement on internal control.

My responsibilities to report in relation to such information, and on certain other matters upon which I report by exception, are described in the appendix to this report.
Report of the C&AG (continued) Non-compliant procurement The statement on internal control discloses that in 2022 the Authority incurred significant expenditure where the procedures followed did not comply with public procurement guidelines.

The statement on internal control also sets out steps taken or planned by the Authority to address the weaknesses that gave rise to this.
Seamus McCarthy Comptroller and Auditor General 30 June 2023 Appendix to the report Responsibilities of Board members As detailed in the governance statement and Board members’ report, the Board members are responsible for      the preparation of annual financial statements in the form prescribed under section 26 of the Food Safety Authority of Ireland Act 1998 ensuring that the financial statements give a true and fair view in accordance with FRS 102 ensuring the regularity of transactions assessing whether the use of the going concern basis of accounting is appropriate, and such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Responsibilities of the Comptroller and Auditor General I am required under section 26 of the Food Safety Authority of Ireland Act 1998 to audit the financial statements of the Food Safety Authority of Ireland and to report thereon to the Houses of the Oireachtas.

from material misstatement due My objective in carrying out the audit is to obtain reasonable assurance about whether the financial statements as a whole are free fraud or error.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs 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 economic decisions of users taken on the basis of these financial statements.
to As part of an audit in accordance with the ISAs, I exercise professional judgment and maintain professional scepticism throughout the audit.

In doing so,    I identify and assess the risks of material misstatement of the financial statements whether due to fraud or error; design and perform audit procedures responsive to those risks; and obtain 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 omissions, forgery, involve misrepresentations, or the override of internal control.

intentional collusion, in order I obtain an understanding of internal control relevant to the audit that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls.
to design audit procedures I evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures.

  I conclude on the appropriateness of the use of the going concern basis of accounting and, based on the audit evidence obtained, on whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Food Safety Authority of Ireland’s ability to continue as a going concern.
If I conclude that a material uncertainty exists, I am required to draw attention in my report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion.

My conclusions are based on the audit evidence obtained up to the date of my report.

However, future events or conditions may cause the Food Safety Authority of Ireland to cease to continue as a going concern.
I evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit including any significant findings, deficiencies in internal control that I identify during my audit.
I report by exception if, in my opinion,    I have not received all the information and explanations I required for my audit, or the accounting records were not sufficient to permit the financial statements to be readily and properly audited, or the financial statements are not in agreement with the accounting records.
Information other than the financial statements My opinion on the financial statements does not cover the other information presented with those statements, and I do not express any form of assurance conclusion thereon.
In connection with my audit of the financial statements, I am required under the ISAs to read the other information presented and, in doing so, consider whether the other information is materially inconsistent with the financial statements or with knowledge obtained during the audit, or if it otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.
Reporting on other matters My audit is conducted by reference to the special considerations which attach to State bodies in relation to their management and operation.

I report if I identify material matters relating to the manner in which public business has been conducted.

I seek to obtain evidence about the regularity of financial transactions in the course of audit.
I report if I identify any material instance where public money has not been applied for the purposes intended or where transactions did not conform to the authorities governing them.
Food Safety Authority of Ireland Statement of Income and Expenditure and Retained Revenue Reserves for the year ended 31 December 2022 Income Oireachtas Grant Other Income Operating Income Total Income Notes 2022 €'000 2021 €'000 2 3 19,091 2,162 21,253 19,959 1,532 21,491 21,253 21,491 Expenditure Administration, Operations & Promotion Communications activities Depreciation of Fixed Assets Albanian Project Reformulation Taskforce Local Authority Veterinary Service Total Expenditure 4 5 6 & 14 14 15 7 Surplus/(Deficit) for Year before Appropriations Transfer from/(to) the Capital Account Loss on Disposal 8 Surplus/(Deficit) for year after Appropriations Balance at 1 January Balance at 31 December 11,326 372 719 1,267 272 6,962 20,918 335 97 0 432 1,090 1,522 10,655 384 613 769 148 8,090 20,659 832 400 0 1,232 (142) 1,090 The Statement of Income and Expenditure and Retained Revenue Reserves includes all gains and losses recognised in the year.
The Statement of Cash Flows and notes 1 to 18 form part of these financial statements.
On behalf of the Board of the Food Safety Authority of Ireland: Ms. Ann Horan Acting Chairperson Dr. Pamela A. Byrne Chief Executive Officer 27 June 2023 27 June 2023 11 Food Safety Authority of Ireland Statement of Financial Position as at 31 December 2022 Non Current Assets Property, Plant and Equipment Intangible Assets Current Assets Receivables Cash and Cash Equivalents Net Current Assets Current Liabilities (amounts falling due within one year) Payables Notes 2022 €'000 2021 €'000 6 6 (a) 9 685 103 762 2,760 3,522 852 33 661 3,285 3,946 10 2,000 2,856 Net Current Assets / Liabilities Total Assets less Liabilities before Pensions 1,522 2,310 1,090 1,975 Representing Capital Account Retained Revenue Reserves 8 788 885 1,522 2,310 1,090 1,975 The Statement of Cash Flows and notes 1 to 18 form part of these financial statements.
On behalf of the Board of the Food Safety Authority of Ireland: Ms. Ann Horan Acting Chairperson Dr. Pamela A. Byrne Chief Executive Officer 27 June 2023 27 June 2023 12 Food Safety Authority of Ireland Statement of Cash Flows for the year ended 31 December 2022 Cashflow from operating activities (Deficit)/Excess Income over Expenditure Depreciation and Impairment of Fixed Assets (Increase)/Decrease in Receivables Increase/(Decrease) in Payables Notes 2022 €'000 2021 €'000 6 & 15 9 10 335 719 (101) (855) 832 624 (67) (486) Net Cash Inflow from Operating Activities 98 903 Cash Flows from Investing Activities Payments to acquire Plant & Equipment Payments to acquire Intangible Assets Net Cash Flows from Investing Activities 6 6 (a) (483) (140) (623) (199) (25) (224) Net Increase/(Decrease) in Cash and Cash Equivalents (525) 679 Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December 3,285 2,760 2,606 3,285 13 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 1.
Accounting Policies The basis of accounting and significant accounting policies adopted by Food Safety Authority of Ireland are set out below.

They have been applied consistently throughout the year and for the preceding year.

a) General Information The Food Safety Authority of Ireland was set up under the Food Safety Authority of Ireland Act, 1998, with a head office at The Exchange, George's Dock, IFSC, Dublin 1, D01 P2V6.
The Food Safety Authority of Ireland's primary objectives as set out in Part II of the Food Safety Authority of Ireland Act are as follows: To take all reasonable steps to ensure that: (a) food produced in the State (whether or not distributed or marketed in the State), and (b) food distributed or marketed in the State meets the highest standards of food safety and hygiene reasonably attainable and it shall, in particular, take all reasonable steps to ensure that such food complies (i).
with any food legislation in respect of food safety and hygiene standards, or (ii).

in the absence of any such legislation, with the provisions of generally recognised standards or codes of good practice aimed at ensuring the achievement of high standards of food hygiene and food safety.

The Food Safety Authority of Ireland is a Public Benefit Entity (PBE).
b) Statement of Compliance The financial statements of Food Safety Authority of Ireland for the year ended 31 December 2022 have been prepared in accordance with FRS 102, the financial reporting standard applicable in the UK and Ireland issued by the Financial Reporting Council (FRC), as modified by the direction of the Minister for Health in relation to superannuation.
In compliance with the directions of the Minister for Health, the Authority accounts for the costs of superannuation entitlements only as they become payable (see 1 (i) below).

This basis of accounting does not comply with FRS 102, which requires such costs to be recognised in the year in which entitlement is earned.
c) Basis of Preparation The financial statements have been prepared under the accruals method of accounting, except as stated below, and under the historical cost convention in the form approved by the Minister for Health with the concurrence of the Minister for Public Expenditure and Reform under Section 26(5) of the Food Safety Authority of Ireland Act, 1998.
The accounting policies have been applied consistently in dealing with items which are considered material in relation to the Food Safety Authority of Ireland's financial statements.

d) Capital Funding The fixed assets of the FSAI are funded from a combination of capital grants and allocations from current revenue.

Funding sourced from grants is transferred to a capital account which is amortised in line with the depreciation of the related assets.
e) Revenue Oireachtas Grants Revenue is generally recognised on an accruals basis; one exception to this is in the case of Oireachtas Grants which are recognised on a cash receipts basis.

14 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 1.

Accounting Policies (cont.)

Deferred Income Project income received in advance is treated as deferred income and reported as a payable falling due within one year.
The income is released to the Statement of Income and Expenditure and Retained Reserves in line with the expenditure incurred in the reporting period.

Other Revenue Other Revenue is recognised on an accruals basis.

f) Plant and Equipment Plant and equipment are stated at cost less accumulated depreciation, adjusted for any provision for impairment.
Depreciation is provided on all plant and equipment at rates estimated to write off the cost less the estimated residual value of each asset on a straight line basis over their estimated useful lives, as follows: (i) Leasehold Improvements 15% per annum (ii) Computer Equipment 33% per annum (iii) Office Furniture 15% per annum (iv) Office Equipment 15% per annum (v) Scientific Equipment 15% per annum (vi) Motor vehicles 33% per annum Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of an age and in the condition expected at the end of its useful life.
If there is objective evidence of impairment of the value of an asset, an impairment loss is recognised in the Statement of Income and Expenditure and Retained Revenue Reserves in the year.

Intangible fixed assets are shown at their net book value having been depreciated at 33% on a straight-line basis.

g) Receivables Receivables are recognised at fair value.
h) Operating Leases Rental expenditure under operating leases is recognised in the Statement of Income and Expenditure and Retained Revenue Reserves over the life of the lease.

Expenditure is recognised on a straight- line basis over the lease period, except where there are rental increases linked to the expected rate of inflation, in which case these increases are recognised when incurred.

Any lease incentives received are recognised over the life of the lease.
i) Employee Benefits 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 payables figure in the Statement of Financial Position.

15 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 1.

Accounting Policies (cont.)


Retirement Benefits A superannuation scheme has been approved by the Minister in accordance with Section 39 of the Food Safety Authority of Ireland Act, 1998.

The scheme provides for a contributory defined benefit pension scheme for employees.

Deductions from salaries are retained and are treated as income by the Authority.

The Department of Health's annual grant to the Authority is net of the deductions retained.
The Public Service pensions (Single Scheme and Other Provisions) Act, 2012 became law on 28 July, 2012 and introduced the new Single Public Scheme ("Single Scheme") which commenced with effect 1 January 2013.

All new employees to the Food Safety Authority of Ireland, who are new entrants to the Public Sector, on or after 1 January 2013 are members of the Single Scheme.

Single Scheme members' contributions are paid over to the Department of Public Expenditure and Reform.
By direction of the Minister for Health no provision has been made in the Financial Statements for future pension liabilities.

Payments under the schemes are charged to the Statement of Income and Expenditure and retained reserves when paid.

j) Local Authority Veterinary Scheme The Food Safety Authority of Ireland provides funding to Local Authorities in relation to the provision of veterinary services.
The Authority receives funding from the Department of Health (as part of its annual determination) in this regard.
Funding received from the Department of Health and amounts paid to Local Authorities are recognised on cash received and cash paid basis, in line with Section 34 of FRS 102. k) Key Estimates and Judgements The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for income and expenditure during the year.
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The nature of estimation, by definition, means that the actual results may differ from the estimates made.
The estimates and assumptions that can have a material effect on the amounts recognised in the financial statements are set out below: (i) Establishing useful lives for depreciation purposes of equipment and leases.

Equipment and leases comprise of a significant portion of the Authority's assets.

The annual depreciation charge depends on the estimated useful lives of each type of asset.
Given the relative short-term nature of the equipment assets, the estimation of the useful life of these assets is subject to regular review.

Details of the useful economic lives is included in the accounting policies.

(ii) Establishing useful economic lives for amortisation purposes of capital grants The annual amortisation charge depends primarily on the estimated useful lives of each type of asset.

The useful economic lives are subject to regular review.
Details of the useful economic lives are included in the accounting policies.

16 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 2.

Oireachtas Grants The Oireachtas Grants voted to Food Safety Authority of Ireland from Vote 38 Department of Health as shown in the financial statements consist of: Sub-head 2022 €'000 2021 €'000 Grants for current expenditure Grant for capital expenditure Total 3.
Other Income Superannuation Deductions Sale of Publications Sundry Income Reformulation taskforce Albania CE Fund 4.
Administration, Operations & Promotion Remuneration and Other Pay Costs Rent, rates, service charges and insurance Research costs Legal and consulting fees IT, telephone and internet Operating expenditure 4(a) Remuneration and other pay costs Staff Salaries, basic pay Staff salaries, overtime Retirement benefit costs Retirement lump sum costs Employer's contributions to social welfare Staff training and development Staff travel and subsistence cost -national travel Staff travel and subsistence cost -international travel Agency staff Board members' emoluments E.1.
L.1.
Note 14 Note 4(a) 4(h) 4(g) Note 4 (c) 18,583 508 19,091 19,713 246 19,959 2022 €'000 2021 €'000 235 209 166 285 1,267 2,162 234 184 198 147 769 1,532 2022 €'000 2021 €'000 7,377 1,544 93 272 1,349 691 6,832 1,470 54 212 1,064 1,023 11,326 10,655 2022 €'000 2021 €'000 5,645 5,346 1 240 157 588 163 41 41 448 53 2 205 364 552 174 32 2 105 50 7,377 6,832 The FSAI paid €118,079 (2021: €86,472) to the Department of Public Expenditure and Reform in respect of employee contributions under the single pension scheme.
In 2022 €218,278 was paid to the Department of Health in respect of additional superannuation contributions (ASC) deducted from staff salaries (2021: €204,931).
17 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 4(b) Employee benefits breakdown Range of total employee benefits From 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 To 69,999 79,999 89,999 99,999 109,999 119,999 129,999 139,999 149,999 159,999 169,999 179,999 - - - - - - - - - - - - Number of Employees 2022 15 2021 16 9 4 4 8 1 2 0 0 0 0 1 8 7 3 2 4 0 0 0 0 1 0 Note: for the purposes of this disclosure, short term employee benefits in relation to services rendered during the reporting period include salary, overtime allowances and other payments made on behalf of the employee, but exclude employers PRSI.
4(c) Board Members' Attendance, Fees and Expenses Board Member Martin Higgins Mary Cullen Gerard McCurdy Cliodhna Foley-Nolan Francis Butler Martin Cormican Ann Horan Patrick Knight Board Travel Meetings Meetings Fee Expenses Attended € € Board Attended Audit & Risk Chairperson 11,970 483 7,695 7,695 7,695 0 0 7,695 7,695 50,446 228 678 40 127 1,555 9 of 9 8 of 9 7 of 9 7 of 9 8 of 9 9 of 9 9 of 9 9 of 9 3 of 4 3 of 4 4 of 4 During 2022, 9 Board meetings were held (2021: 6).
Two Board members did not receive a Board fee under the One Person One Salary Principle (OPOS), as they are employed by other State organisations.

The Audit and Risk Committee includes one external member.

This position is held by Fergal Ó'Briain.

Fergal Ó'Briain attended 4 of 4 ARC meetings in the year and was not in receipt of a fee under the OPOS principle.
18 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 4(d) Chief Executive Officer Salary and Benefits Chief Executive Officer, Pamela Byrne 2022 €'000 2021 €'000 172 172 163 163 The CEO remuneration package for 2022 was annual basic salary of €172,400 (2021: €163,300) with standard public sector arrangements.

The above salary values do not include the value of retirement benefits earned in the period.
The key management personnel (excluding Board members) are members of the FSAI's contributory defined benefit pension scheme.

4(e) Key management personnel compensation Key management personnel in the Food Safety Authority of Ireland consist of the CEO, five Directors and members of the Board.
Total compensation paid to key management personnel, including Board members' fees and expenses and total CEO remuneration amounted to €758,060 (2021: €762,275) 4(f) Hospitality Expenditure Staff hospitality Advisory Committee hospitality Client hospitality Board hospitality 2022 €'000 2021 €'000 4 0 0 2 6 2 0 0 0 2 In 2022 a voucher for €100 was given to members of the FSAI Scientific Committee, and subcommittees, who work on a voluntary basis.

The total value of these vouchers was €6,300.


No such vouchers were provided in 2021.
4(g) Operating Expenditure Recruitment Expenditure Stationery and Postage Cleaning and Catering Repairs and Maintenance Audit Fee Food Legislation Compliance Training - Official Agency Staff Food supplement database Committee Expenses Library Supplies Dilapidations General Expenditure (including hospitality) 4(f) 19 Note 2022 €'000 2021 €'000 76 24 13 234 15 149 134 14 7 73 0 (48) 691 45 42 0 210 15 115 23 14 0 60 208 291 1,023 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 4 (h) Consultancy Costs Consultancy Costs include fees paid to external parties providing advisory services of any nature.
Legal (i) Consultancy Total consultancy costs legal costs capitalised Consultancy costs capitalised Consultancy costs charged to income and expenditure Total 2022 €'000 2021 €'000 97 175 272 0 0 272 272 148 64 212 0 0 212 212 (i) This refers to general legal advice.

No expenditure was incurred in the reporting period in relation to legal costs, settlements and conciliation and arbitration proceedings relating to contracts with third parties.

5.
5.

Communication activities Public Relations Industry Events Industry Liaison Publications 2022 €'000 151 78 0 143 372 2021 €'000 115 61 11 197 384 20 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 6.

Tangible Fixed Assets Motor Computer Office Office Vehicles Equipment Equipment Furniture Leasehold Improve.
Scientific Equipment Cost At 1 January 2022 Additions Disposals 22 0 €'000 1,268 439 (29) €'000 €'000 €'000 €'000 145 0 329 0 2,165 14 At 31 December 2022 22 1,678 145 329 2,179 Accumulated Depreciation At 1 January 2022 Charge for the year Depreciation on Disposals 21 1 1,090 258 (28) 113 13 249 46 1,604 327 At 31 December 2022 22 1,320 126 295 1,931 Net Book Value At 31 December 2022 At 31 December 2021 0 1 358 178 19 32 34 80 248 561 Total €'000 4,240 483 (102) 4,621 3,388 649 (101) 3,936 685 852 311 30 (73) 268 311 4 (73) 242 26 0 The assets disclosed above include motor vehicles, computer equipment, office equipment and office furniture assets, relating to the Albanian project, for which FSAI is receiving the benefit.
The original cost of these assets is €36,655 (2021: €36,655).

These assets will transfer to the Albanian equivalent of FSAI at the end of the project.

See note 14 for further information in relation to the project.
21 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 6(a) Intangible Fixed Assets 1 January, Opening Net Book Value Additions at Cost Less Depreciation Charge for the year 31 December, Closing Net Book Value 2022 €'000 2021 €'000 34 140 (71) 103 74 25 (66) 33 Intangible fixed assets consist of software licences which are written off over their useful life.

7.
7.

Local Authority Veterinary Service (LAVS) 2022 €'000 2021 €'000 LAVS Payments 6,962 8,090 Payments are made to 25 Local Authorities for the provision of veterinary services, quarterly in arrears.

Funding is channelled through the Department of Health and the Food Safety Authority of Ireland and is included as part of the annual determination.

The obligation to transfer funding to LAVS is only triggered when corresponding funding is received from the Department of Health.

8.
8.

Capital Account At 1 January Transfer from/(to) Income and Expenditure and Retained Reserves Account Additional funds allocated to acquire Fixed Assets Funded through operations Funds allocated to acquire Intangible Assets Amount Released on Disposal Amortisation in line with asset depreciation 2022 €'000 2022 €'000 2021 €'000 2021 €'000 885 1,285 483 140 0 (720) (97) 199 25 0 (624) (400) Balance at 31 December 788 885 9.
Receivables Prepayments Debtors 2022 €'000 2021 €'000 756 6 762 661 0 661 22 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 10.
Payables Amounts falling due within one year Trade Creditors Accruals Deferred Rent Accrual * Payroll Accruals Deferred Albanian income Deferred project income Tax Creditor - VAT Tax Creditor - PAYE/PRSI Tax Creditor - PSWT 2022 €'000 2021 €'000 79 195 914 234 263 16 22 214 63 363 279 974 223 773 16 10 171 46 2,000 2,855 * Under the terms of the lease agreement there was a provision for a rent free period of one year, which occurred in 2018.
FRS 102 requires that this rent free period be recognised over the lifetime of the lease.

The Deferred Rent Accrual represents the balance of the rent free period, which will be recognised in the Statement of Income and Expenditure and Retained Revenue Reserves in future years.

11.

Operating Leases The Food Safety Authority of Ireland commenced a 20 year lease for the first floor of the Exchange Building, George's Dock, IFSC, Dublin 1 in October 2017.
The lease is subject to rental reviews every 5 years and includes a rent-free year from 1 January 2018.

In accordance with FRS 102 lease incentives are released over the life of the lease.

The annual effective cost of the lease, excluding service charge, is €1,147,000.
At 31 December 2022 the FSAI had the following future minimum lease payments under non- cancellable operating leases: Lease obligations falling due: within 1 year between years 2 to 5 after 5 years The Exchange €'000 1,147 4,587 11,179 The lease for The Exchange provides for a rent review every 5 years.

The FSAI received notification of the first review under this lease in December 2022.

Engagement with the landlord is ongoing in order to achieve the best outcome for the FSAI in relation to this review.
12.

Dilapidations In 2017 the FSAI moved premises from Abbey Court to The Exchange.

Since moving premises the FSAI have engaged with the former landlord, along with the OPW, in relation to a dilapidation charge arising from the finalisation of the former lease agreement.
Following consultation with the OPW, an independent property valuer and with the assistance of the CSSO an amount of approximately 23 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 €358,000 was paid to the former landlord.

A provision for €150,000 had previously been recognised in the financial statements in relation to this matter.

13.
13.

Board Members' Interests The Board adopted procedures in accordance with the guidelines issued by the Department of Expenditure and Reform in relation to the disclosures of interests by Board Members and these procedures have been adhered to in the year.

There were no transactions in the year in relation to the Board's activities in which a Board Member had a beneficial interest.

14.
14.

External Projects - The Food Safety Project, Albania A consortium of Irish government agencies and their international partners has successfully tendered for a €5m EU grant to support Albania as a candidate for accession to the European Union, by strengthening its food safety, veterinary and plant health standards.

The project covers the period 14 Jan 2019 to 13 Jan 2023.
The impact of COVID has resulted in an extension of this contract, on a no cost basis, to 14 October 2023 to ensure the deliverables of the project are achieved.

The consortium is led by FSAI and includes the Department of Agriculture, Food and the Marine, Sustainable Food Systems Ireland, the Finnish Food Authority, and an Albanian partner, Creative Business Solutions.

The FSAI has received cumulative funding of €3.363 million to date to deliver the project with €757,000 of this received in 2022.
Cumulative expenditure to 31 December 2022 was €3.101 million and a balance of €263,000 was on hand at year end (note 10).

The expenditure incurred in relation to this project is set out below.
Remuneration and Other Pay Costs Project travel- national Project travel - international International Expert Support* Rent, rates, service charges and insurance Industry events Publications Depreciation of project assets Other Albanian Project 2022 €'000 2021 €'000 319 14 59 617 9 38 131 1 79 1,267 248 3 5 303 13 44 72 11 70 769 * International Expert Support represents the input of personnel with experience in relevant disciplines that have been engaged to enable the successful delivery of the Albanian project.
This includes areas such as phytosanitary, senior legislation, veterinary and organisational development experts that have been identified by the FSAI or the consortium partners.

24 Food Safety Authority of Ireland Notes to the Financial Statements for the year ended 31 December 2022 15.

Food Reformulation Taskforce.


In October 2022 the FSAI signed a service level agreement with the Department of Health to establish and operate a Food Reformulation Taskforce (FRT), to deliver on a food reformulation action plan developed by the Obesity Policy Implementation Oversight Group who are charged with delivery on the Government’s Obesity Policy and Action Plan 2016-2025.
The FRT will be in operation until 31 December 2025 and is expected to cost approximately €2.06 million over the course of the project.

The expenditure incurred during 2022 in relation to the project, funded by the Department of Health is set out below: Remuneration and Other Pay Costs Project travel Other Licensing/nutritional information analysis 16.
Events after the reporting date 2022 €'000 2021 €'000 226 5 12 29 272 148 148 There are no events between the reporting date and the date of approval of these financial statements that require adjustment.

The Board recognises that the Covid-19 pandemic continued to impact the FSAI during 2022.

The FSAI, in conjunction with the Board, continues to take the situation seriously and is monitoring it on an ongoing basis.
The business continues to operate with measures in place to protect staff with staff working remotely and services continue to be provided.

To date, the operations and most of the entity’s activities are being maintained while adjusting to the different way in which the business is being delivered.

In October 2022 a pilot hybrid working model was introduced to maximise the benefits of remote working while delivering the FSAI’s business objectives.
This pilot will be monitored and assessed throughout 2023.

As the FSAI is funded by moneys provided by the Exchequer, through the Department of Health, the Board considers it appropriate to prepare the financial statements on a going concern basis.

17.

Financial position Arising from the financial outturn in 2021 resulting in a cash surplus of €903,000, the FSAI engaged with the Department of Health to identify an appropriate use for this funding.
It was agreed that this would be offset against the FSAI’s 2022 allocation.

18.

Approval of Financial Statements The Financial Statements were approved by the Board on 27 June 2023.

25