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ANNUAL REPORT 2007 - 2008
Do you know your neighbour?
1
Do you know your neighbour?
Bishan-Toa Payoh Town Council 3Sixth Term of Offi ce
Corporate Information 6
Chairman’s Review 7
Financial Statements 10
Contents
“ ” This Chinese saying means that a good and close
neighbour is better than a relative staying far away from you. Thus,
fostering good neighbourliness helps to bring people closer and they
look out for each other. But in today’s high octane society, can we still
fi nd such neighbourly spirit in our estate?
All it takes is a few seconds to smile and greet your neighbour. You would
be surprise that it is that easy to know your neighbour. We all wish to have
a good neighbour, and we can look out for one another in times of emer-
gency. Better to make a friend than an enemy.
Here are several ways to create a good neighbourliness environment:
1. Look out for your neighbour when they are away over an extended
period of time.
2. Keep their newspapers till they return, and remove junk mail from
their gates.
3. Have their contact numbers for emergencies.
4. Invite your neighbours to celebrate festivities.
5. Organise potluck / block parties to socialise and build rapport.
So let us embrace this kampung spirit with our neighbours. It is time to
re-discover good neighbourly spirit.
2
Our mission is to provide a clean, green, well
maintained and healthy environment for the
residents, through close co-operation with the
residents, grassroots organisations and related
government agencies.
3
Advisors
Establishment CommitteeAdvisor: Mr Zainudin Nordin
Mr Zainudin NordinMayor for Central Singapore District
MP for Bishan-Toa PayohGRC
Chairman of Bishan-Toa Payoh Town Council
Advisor to Bishan-Toa Payoh North Grassroots
Organisations
Dr Ng Eng HenMinister for Education and
Second Minister for Defence
MP for Bishan-Toa Payoh GRC
Elected Member of Bishan-Toa Payoh Town Council
Advisor to Toa Payoh Central Grassroots Organisations
Mr Wong Kan SengDeputy Prime Minister & Minister for Home Affairs
MP for Bishan-Toa Payoh GRC
Advisor to Bishan-Toa Payoh Town Council
Advisor to Bishan East Grassroots Organisations
Mrs Josephine TeoMP for Bishan-Toa Payoh GRC
Vice-Chairman of Bishan-Toa Payoh Town Council
Advisor to Toa Payoh East Grassroots Organisations
Mr Hri Kumar NairMP for Bishan-Toa Payoh GRC
Vice-Chairman of Bishan-Toa Payoh Town Council
Advisor to Thomson Grassroots Organisations
Mr Gregory TangWee Thiang
Member
Mr Teh Hee SeangChairman
Mr Cheng Wai KeungVice-Chairman
Mr Er Kwong WahMember
Mr Ling Ming ChuanCEO/Secretary
Mr Yee Fook HongMember
Bishan-Toa Payoh Town Council Sixth Term Of Offi ce (2007-2008)
4
Finance & Administration CommitteeAdvisor: Dr Ng Eng Hen
Tenders & Contracts CommitteeAdvisor: Mrs Josephine Teo
Mr Chia Pen ChuenMember
Mr Yee Fook HongChairman
Mr Poh Puay EngVice-Chairman
Mr Roy Cheng Siew Cherng
Member
Mr Leong Fook WingMember
Mr Larry Lau Hooi SeeMember
Mr BennySoh Chee Ling
Member
Mr Lim Joo LyeMember
Ms Lim Siew HoonMember
Mr S U NathanMember
Mr Yeo Hiang MengMember
Mr Tan Kee KhoonMember
Co-Opted MemberHelen Wee Lian NgohJennifer Wong Kwai FongAbdul Rahman MohamedAmarSingh s/o Soun SinghVincent Tan Tee HuatTexas Loh Kia HowFabian Yeo
Ms Catherine LeeMember
Mr Gregory Tang Wee Thiang
Chairman
Mr Roger Chia Ah Sah
Vice-Chairman
Ms Chua Geok LanMember
Mr Ling Tuck MunMember
Ms Lee Ker HwaMember
Ms Tay Mok LanMember
Mr Mohd Yusof Bin Abdullah
Member
Mr Henry Ng Boon Hwee
Member
Mr Tan Kia SengMember
Mr RT Xavier SamyMember
Ms Patricia TohBee LanMember
Mr Sitoh Yih Pin2nd Advisor
Co-Opted MemberAhmad Alif LimDoris ChanWong Thian HockPatricia Ng Choon ChweeMohamed FarookPoo Chee KuenSim Hock Soon
5
Environment & Development CommitteeAdvisor: Mr Hri Kumar Nair
Community Relations CommitteeAdvisor: Mr Zainudin Nordin
Ms Doris Chan Gek HiaMember
Mr Cheng Wai KeungChairman
Mr Lai Kah SengVice-Chairman
Mr Azman BinYahayaMember
Mr Leong Chong Meng
Member
Mr David Choo Yong KeeMember
Ms Paridah Bte Yusop
Member
Mr Jason Leong Wai Hoong
Member
Mr LawrenceLim Tau Jeow
Member
Mr Yeo Suay TeeMember
Ms Frances TangPo TimMember
Co-Opted MemberPaul SubratnamMazlan Bin JalilLau Juay HorChong NgeeChia Han HengFrankie Tong Kit RongChristina Kwek
Mr Victor ChuMember
Mr Er Kwong WahChairman
Mr Cheong CheeOnn
Vice-Chairman
Mr Chow Tak NeoMember
Mr Anthony KiongBeng HoeMember
Mr Khoo Kay ChaiMember
Dr PremaraniKannusamy
Member
Mr Joseph LauPub TaaiMember
Mr Mr Andy Lim Yi
Member
Mr Raymond TeohMember
Ms Sophia SuMember
Co-Opted MemberWinston Chua Seng ChyeSiti Rohanah Bte Mohd KoidWong Tian Hock RogerStracey @ Anbukkarasi d/o Sakedevan NaiduPoon Wai MunV BalakrishnanFiona Lim
6
Toa Payoh Offi ceBlock 125A #01-134 Lorong 2 Toa Payoh
Singapore 311125
Tel: 6259 6700
Fax: 6259 9626
Bishan Offi ceBlock 197 #01-585 Bishan Street 13
Singapore 570197
Tel: 6259 6700
Fax: 6356 7388
Websitewww.btptc.org.sg
Emailprm@btptc.org.sg
Operating Hours8.00am - 5.30pm (Monday to Friday)
8.00am - 12 noon (Saturday)
Corporate Information
HDB Blocks Managed by Town Council
Bishan-Toa Payoh Town Council Logo Contact / Operating Hours
Our logo depicts both the distinctive architecture of Bishan’s
Housing Development Board (HDB) fl ats and the Viewing Tower
of Toa Payoh Garden. The blue and green colours represent a
fresh, clean and healthy environment within the community.
Number of Units in Bishan-Toa Payoh Town 52,711*
Number of Blocks in Bishan-Toa Payoh Town 526*
Number of Residents in Bishan-Toa Payoh Town 210,000**(average 4 persons per household)
* As at September 2008** Figures are approximated
7
Chairman’s Review
The year 2007-2008 is best described as a time when we de-
livered on our commitment to enhance the living environment
for all our residents. Many new infrastructural projects were
either completed or launched which would further reinforce
Bishan-Toa Payoh GRC’s transformation into a model HDB housing estate.
We have launched four Town Council-Lift Upgrading Programmes (TC-LUP)
which are now in progress even as I write this report.
We introduced six covered linkways, six children play
grounds, and two elderly fi tness corners; upgraded
one soccer and woodball court; repainted 19 blocks,
rewired 26 blocks, re-roofed 13 blocks and changed
pumps in 113 blocks. We invested approximately $13.5
million to roll out these projects for our residents.
Topping the list of the new projects is the $1.8
million Bishan Active sports facility in Bishan North
Street 23. In addition, we are currently undertaking other on-going proj-
ects to build covered linkways, children playgrounds, and carry out repairs
and redecorations and the Harmony Park. This Park will be another iconic
project located at the junction of Bishan Road and Braddell Road and when
completed it will have facilities such as fi tness stations, BBQ pits, pavilions,
inline skating court, skateboard court, skating bowl, multi-purpose court
and a garden maze.
8
Collectively these projects will do more than just beautifying our estates. They will
create a more congenial living environment for our residents and enhance their
quality of life. A good example is the Bishan Active sports hub which will provide
more opportunities for our residents to get together and interact in an informal and
relaxed setting.
We believe through our fostering of neighbourliness we will be able to encourage our residents to embrace
the qualities of a gracious community, whereby caring for others, courtesy, good social behaviour and civic
mindedness are among the common traits that they will display in their interactions with one another. In time,
our Town Council can take satisfaction in knowing that our efforts have contributed in some way towards the
grooming of a gracious community in Singapore.
During the year under review, we have also successfully implemented
Barrier Free Access (BFA) throughout the neighbourhoods, so that the
elderly and the infi rmed can enjoy greater mobility from their homes to
the various amenities. For the safety of our residents, shoppers and shop
occupiers, we implemented the rules for the Outdoor Display Area (ODA) in
the neighbourhood malls. We are grateful to the shop owners for their co-
operation and support in ensuring that the fi re safety rules were observed.
Our Town Council worked with other government agencies to ensure that we maintain a high standard in
the upkeep of our estates in the interest of public
health by destroying breeding grounds for mos-
quitoes and other pests. Our offi cers conducted
several sweeps along the multi-storey corridors of HDB fl ats and other open areas and advised residents to be
mindful of their responsibility to prevent mosquitoes from breeding.
9
One of the challenges facing the Town Council is keeping operating costs at a manage-
able level against the backdrop of high infl ation and rising oil prices impacting on the
cost of electricity. Various steps were taken to streamline operations and ensure an ef-
fi cient deployment of manpower while adopting energy saving measures to cut down on
electricity consumption. We installed energy saving devices in 25 blocks and this would
give us 25% energy savings. In addition we installed T5 lamps under the rewiring con-
tract in 31 blocks and expect to enjoy 30% savings in energy consumption. A total of
4000 outdoor lights will be replaced with Amalgam Lamps in the next two years and this
should result in 55% energy savings to outdoor lighting.
As Chairman, I am pleased to report a set of good fi gures for the fi scal year. We were able to
turn in an operating surplus of $2.9 million and our total funds stood at $147.7 million as of
31 March 2008. Our total expenditure on infrastructural projects amounted to $15.1 million,
while $18.6 million went to the up-keeping of our estates.
The strong performance is certainly a refl ection of the good work put in by the management
and staff of our Town Council. Their commitment and support have made it much easier for
me to carry out my responsibilities. I also wish to thank my fellow Councillors for their ideas,
feedback and contributions which have brought us to where we are today.
Zainudin NordinMayor for Central Singapore District andChairman of Bishan-Toa Payoh Town Council
10
Bishan-Toa Payoh Town CouncilEstablished under the Town Councils Act, Cap. 329A
Audited Financial Statementsfor the Financial Year Ended 31 March 2008
Contents
Independent Auditor’s report 11
Balance sheet 12
Income and expenditure statement 13
Statement of changes in funds 14
Cash fl ow statement 15
Notes to the fi nancial statements 16
FINANCIAL STATEMENTS
11
We have audited the accompanying fi nancial statements of Bishan-Toa Payoh Town Council, which comprise the balance sheet as at 31 March 2008, and the statement of income and expenditure, the statement of changes in funds and the cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory notes.
Town Council’s Responsibility for the Financial StatementsThe Town Council’s management is responsible for the preparation and fair presentation of these fi nancial statements in accordance with the provisions of the Town Councils Act, Cap. 329A (“the Act”) and Singapore Financial Reporting Standards. This responsibility includes:
(a) devising and maintaining a system of internal accounting controls suffi cient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair income and expenditure statements and balance sheets and to maintain accountability of assets;
(b) selecting and applying appropriate accounting policies; and
(c) making accounting estimates that are reasonable in the circumstances.
Independent Auditor’s ResponsibilityOur responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the fi nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Town Council’s management, as well as evaluating the overall presentation of the fi nancial statements.
We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion,(a) the accompanying fi nancial statements are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Town Council as at 31 March 2008 and the results, changes in funds and cash fl ows of the Town Council for the fi nancial year ended on that date; and
(b) the accounting and other records required by the Act to be kept by the Town Council have been properly kept in accordance with the provisions of the Act.
During the course of our audit, nothing came to our notice that caused us to believe that the receipt, expenditure and investment of monies, and the acquisition and disposal of assets by the Town Council during the fi nancial year have not been made in accordance with the provisions of the Act.
RSM Chio LimPublic Accountants andCertifi ed Public Accountants
Singapore23 June 2008
12
Balance Sheet as at 31 March 2008
Notes 2008$
2007$
Non-current assetsPlant and equipment 3 587,204 761,317
587,204 761,317Current assetsInvestments in fi nancial assets 4 107,917,720 100,287,745Conservancy and service debtors 5 1,197,121 1,374,859Other receivables 675,284 338,188Interest receivable 269,455 587,095Grants receivable 922,222 1,070,048Fixed deposits with fi nancial institutions 6 37,724,241 42,349,345Bank and cash balances 6 2,286,838 7,591,267
150,992,881 153,598,547Current liabilitiesGrants received in advance 1,272 8,818Conservancy and service fees received in advance 441,688 360,179Payables and accrued expenses 7 2,485,626 5,742,198Current tax liability 943,024 976,492
3,871,610 7,087,687Net current assets 147,121,271 146,510,860
147,708,475 147,272,177
Town Council Funds
Residential property fundsAccumulated surplus 8 3,724,822 2,860,057Sinking fund 9 112,861,313 114,018,146Town improvement and project fund 10 4,180,266 4,249,522
120,766,401 121,127,725Commercial property fundsAccumulated surplus 8 1,812,188 1,081,646Sinking fund 9 24,415,323 23,929,609Town improvement and project fund 10 1,055,229 1,052,360
27,282,740 26,063,615Carpark fundAccumulated defi cit 8 (350,360) (140,264)Interim upgrading programme fund 11 (55,221) 156,435Estate upgrading programme fund 12 64,915 64,666
147,708,475 147,272,177
Zainudin Nordin Ling Ming ChuanChairman Secretary23 June 2008
The accounting policies and explanatory notes on pages 16 to 35 form an integral part of the fi nancial statements.
Bishan-Toa Payoh Town Council
13
Notes 2008$
2007$
Operating incomeConservancy and service fees 8 30,617,016 30,543,818Less: Operating transfer to sinking funds 8 (10,264,588) (10,236,433)
20,352,428 20,307,385Agency fees 1,670,705 1,642,718Other income 1,528,400 1,290,534
23,551,533 23,240,637Less: Operating expenditureCleaning works 5,461,605 5,172,260Lift maintenance 2,866,589 2,883,652Other works and maintenance 3,321,602 4,226,536Water and electricity 6,949,947 7,096,625General and administrative expenditure 16 6,775,171 6,210,409
25,374,914 25,589,482
Operating defi cit (1,823,381) (2,348,845)
Add: Interest income 135,685 324,199
Defi cit before taxation and government grants (1,687,696) (2,024,646)Taxation 14 (268,221) – Defi cit before government grants (1,955,917) (2,024,646)
Government grants 8, 13 7,527,353 7,925,740Less: Transfer to- sinking fund (2,226,834) (2,008,505)- town improvement and project fund (1,521,179) (1,917,070)Add: GST subvention 8, 13 1,061,788 397,454
4,841,128 4,397,619Surplus for the fi nancial year 2,885,211 2,372,973Add: Accumulated surplus at beginning of fi nancial year 8 3,801,439 6,657,114Less: Transfer to sinking fund 9 – (3,728,648)
6,686,650 5,301,439Less: Appropriation to town improvement and project fund 8 (1,500,000) (1,500,000)Accumulated surplus at end of fi nancial year 8 5,186,650 3,801,439
Zainudin Nordin Ling Ming ChuanChairman Secretary23 June 2008
Income and Expenditure Statement for the year ended 31 March 2008
Bishan-Toa Payoh Town Council
The accounting policies and explanatory notes on pages 16 to 35 form an integral part of the fi nancial statements.
14
Notes 2008 2007$ $
* Accumulated surplus 8 2,885,211 2,372,973Sinking fund 9 (671,119) 7,847,284Town improvement and project fund 10 (1,566,387) (1,539,628)Interim upgrading programme fund 11 (211,656) (787,532)Estate upgrading programme fund 12 249 89,594
436,298 7,982,691
Statement of Changes in Funds for the year ended 31 March 2008
The accounting policies and explanatory notes on pages 16 to 35 form an integral part of the fi nancial statements.
Bishan-Toa Payoh Town Council
Balance at 31 March 2006 114,000,787 23,860,233 509,427 943,967 (24,928) 139,289,486
Surplus/(defi cit) for the fi nancial year* 7,126,938 2,203,382 (649,691) (787,532 ) 89,594 7,982,691
Balance at 31 March 2007 121,127,725 26,063,615 (140,264) 156,435 64,666 147,272,177
Surplus/(defi cit) for the fi nancial year* (361,324) 1,219,125 (210,096) (211,656) 249 436,298
Balance at 31 March 2008 120,766,401 27,282,740 (350,360) (55,221) 64,915 147,708,475
Residential property
funds$
Commercial property
funds$
Total$
Estateupgrading
project fund$
Interim upgrading
project fund$
Car parkfund
$
15
Notes 2008$
2007$
Cash fl ows from operating activitiesDefi cit before taxation and government grants 8 (1,687,696) (2,024,646)Adjustments for: Depreciation of plant and equipment 3 298,301 61,692 Interest income (135,685) (324,199)
Operating defi cit before working capital changes (1,525,080) (2,287,153)Increase in receivables (6,643,198) (9,112,547)(Decrease)/increase in payables (3,256,572) 1,096,279
Cash used in operations (11,424,850) (10,303,421)Income tax paid (633,167) (525,473)Decrease in sinking fund (1,681,761) (4,188,263)Decrease in town improvement and project fund (3,195,736) (3,581,924)Payment of expenses for interim upgrading projects 11 (212,552) (1,966,928)Payment of expenses for estate upgrading projects 12 – (3,306)
Net cash used in operating activities (17,148,066) (20,569,315)
Cash fl ows from investing activitiesPurchase of plant and equipment 3 (124,188) (777,664)Placement of funds with fund managers 4 (32,000,000) – Proceeds from maturity of investments 22,576,880 – Investment and interest income received 8,036,420 11,003,731
Net cash (used in) / provided by investing activities (1,510,888) 10,226,067
Cash fl ows from fi nancing activitiesGovernment funds received for interim upgrading projects 11 – 1,179,396Government funds received for estate upgrading projects 12 – 92,900Government grants received 13 7,943,044 7,377,314GST subvention received 13 786,377 397,454
Net cash fl ow provided by fi nancing activities 8,729,421 9,047,064
Net decrease in cash and cash equivalents (9,929,533) (1,296,184)
Cash and cash equivalents at beginning of fi nancial year 6 49,940,612 51,236,796
Cash and cash equivalents at end of fi nancial year 6 40,011,079 49,940,612
Cash Flow Statement for the year ended 31 March 2008
The accounting policies and explanatory notes on pages 16 to 35 form an integral part of the fi nancial statements.
Bishan-Toa Payoh Town Council
16
1 General
Bishan-Toa Payoh Town Council was formed on 13 January 1997 under the Town Councils Act (Chapter 329A). The functions of the Town
Council are to control, manage, maintain and improve the common property of residential and other commercial property in the housing
estates of the Housing and Development Board (“HDB”) within the Town. The Town consists of the Bishan-Toa Payoh Group Representation
Constituency.
The Town Council commenced its functions on 13 January 1997 and its head offi ce is situated at:
Blk 125A Lorong 2
Toa Payoh #01-134
Singapore 311125
As at 31 March 2008, the Town Council had 76 (2007 : 72) employees.
2 Summary of signifi cant accounting policies
(a) Accounting convention
The fi nancial statements have been prepared in accordance with the provisions of the Town Councils Act and Singapore Financial
Reporting Standards (“FRS”). The fi nancial statements are prepared on a going concern basis under the historical cost convention,
except where an FRS requires an alternative treatment (such as fair values) as disclosed where appropriate in these fi nancial
statements.
(b) Basis of preparation
The preparation of fi nancial statements in conformity with generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the fi nancial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. The estimates and assumptions are reviewed on an ongoing basis. Apart from those
involving estimations, management has made judgements in the process of applying the entity’s accounting policies. The areas
requiring management’s most diffi cult, subjective or complex judgements, or areas where assumptions and estimates are signifi cant
to the fi nancial statements, are disclosed in note 2(s), where applicable.
(c) Funds
Town Council Funds
In accordance with Section 33(1) of the Town Councils Act, separate funds were established to account for the management of the
various types of properties. The types of properties under the management of the Town Council are as follows:
Residential property
Commercial property
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
17
Carparks are managed by the Town Council for the HDB on an agency basis.
These funds together with the Sinking Funds, Town Improvement and Project Funds, Interim Upgrading Fund and Estate Upgrading
Fund form the Town Council Funds.
All monies received by the Town Council are paid into and related expenditures are met out of the appropriate funds set up for each
property type managed.
Assets and liabilities of the various funds of the Town Council are pooled in the Balance Sheet.
Sinking Funds
In accordance with Section 33(4) of the Town Councils Act, separate Sinking Funds are established for the improvement to, management
and maintenance of residential property and commercial property. These Sinking Funds are maintained as part of the Town Council
Funds.
Under the Town Councils Act, the Minister for National Development may, from time to time, prescribe the minimum amounts of
conservancy and service fees and grants-in-aid to be paid into the Sinking Funds.
The minimum amounts that are paid into the Sinking Funds are as follows:
(i) 1-room to 3-room 30% of conservancy and service fees and grants-in-aid
(ii) 4-room 35% of conservancy and service fees and grants-in-aid
(iii) 5-room, Executive, HUDC and Multi-generation 35% of conservancy and service fees
(iv) Shop with living accommodation 35% of conservancy and service fees
(v) Commercial property 35% of conservancy and service fees
These minimum contributions are treated as operating transfers and are deducted from the conservancy and service fees and
government grants in the Income and Expenditure Statement.
The Sinking Funds are utilised for cyclical major repainting, renewal or replacement of roofi ng systems, water tanks, pumps and water
supply systems, lightning protection systems and lifts, major repairs and maintenance of the common area and contributions to the
HDB in respect of general upgrading works carried out on the common property under the Housing and Development Act.
Town Improvement and Project Funds
Town Improvement and Project Funds are established and maintained as part of the Town Council Funds. These funds are utilised for
improvement and development works in the Town.
The funds are set up by transfer from the Accumulated Surplus to fund specifi c projects to be carried out. In addition, the Town
Council receives funds through the Citizens’ Consultative Committee for approved projects.
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
18
Interim Upgrading Programme Fund
The Interim Upgrading Programme (“IUP”) is an estate improvement programme to upgrade the common areas and physical
environment of qualifying properties. This upgrading scheme was entered into between the Town Council, HDB and the Ministry for
National Development.
Miscellaneous IUP expenditure is pegged at 8.11% of the IUP fund and the Town Council may transfer the difference between the
actual and the pegged expenditure to its Income and Expenditure Statement.
Estate Upgrading Programme Fund
The Estate Upgrading Programme (“EUP”) fund is utilised for enhancement works carried out on the public land and the facilities
within the estates. The EUP is fully funded by the Government and the grant provided is computed with reference to the number of
residential units in the estate.
Miscellaneous EUP expenditure is pegged at 11.11% of the EUP fund and the Town Council may transfer the difference between the
actual and the pegged expenditure to its Income and Expenditure Statement.
(d) Allocation of general overheads
Expenditure not relating specifi cally to any property type managed, for example, administrative overheads, tree planting, pruning etc
are allocated to the various property types using equivalent dwelling units as follows:
Property Type Equivalent Dwelling Unit(s)
1 Residential Property Unit 1
1 Commercial Property Unit 2
6 Car Lots or 36 Motor Cycle Lots or 4 Lorry Lots 1
No overheads are allocated to the Sinking Funds and Town Improvement and Project Funds.
(e) Government grants
The Town Council receives three types of grants from the government, namely, service and conservancy charge grant, payments from
citizens’ consultative committees and GST subvention grant.
Government grants are accounted for on an accrual basis. Service and conservancy charge grants to meet the current year’s operating
expenditure are taken to the Income and Expenditure Statement.
The GST subvention is given as a grants-in-aid and is granted to Town Councils to assist them to absorb the GST increases in service
and conservancy charge for HDB residential fl ats.
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
19
(f) Plant and equipment
Plant and equipment are carried at cost less any accumulated depreciation and any accumulated impairment losses. The gain or loss
arising from the derecognition of an item of plant and equipment is determined as the difference between the net disposal proceeds,
if any, and the carrying amount of the item and is recognised in the income and expenditure statement. The residual value and the
useful life of an asset is reviewed at least at each fi nancial year-end and, if expectations differ from previous estimates, the charges are
accounted for as a change in an accounting estimate, and the depreciation charge for the current and future periods are adjusted.
Cost also includes acquisition cost, any cost directly attributable to bringing the asset to the location and condition necessary for it to
be capable of operating in the manner intended by management. Subsequent cost are recognised as an asset only when it is probable
that future economic benefi ts associated with the item will fl ow to the entity and the cost of the item can be measured reliably. All
other repairs and maintenance are charged to the income and expenditure statement when they are incurred.
Depreciation is provided on a straight-line basis to allocate the gross carrying amounts less their residual values over their estimated
useful lives of each part of an item of plant and equipment. The annual rates of depreciation are as follows:
Furniture, fi xtures and fi ttings - 5 years
Offi ce equipment - 3 years
Data processing equipment/software - 3 years
An asset is depreciated when it is available for use until it is derecognised even if during that period the item is idle. Fully depreciated
assets still in use are retained in the fi nancial statements.
(g) Investments in fi nancial assets
Investment in fi nancial assets relates to funds placed with fund managers which comprise mainly of bonds, equities, unit trusts and
cash and fi xed bank deposits.
The funds represent the cost of the portfolio of assets at the beginning of each management term plus gains/losses on a portfolio
basis, net of management fees payable during the management term.
(h) Conservancy and service debtors
After initial recognition at fair value, conservancy and service debtors are measured at amortised cost using the effective interest
method but short-duration receivables with no stated interest rate are normally measured at original invoice amount unless the effect
of imputing interest would be signifi cant. Conservancy and service debtors are stated after provision for impairment. A conservancy
and service debtor amount is regarded as impaired if there is objective evidence of impairment as a result of one or more events that
occurred after the initial recognition and that the loss event has an impact on the estimated future cash fl ows of the fi nancial asset
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
20
that can be reliably estimated. The carrying amounts of conservancy and service debtors approximates their fair value. The amount
of the provision is recognised in the Income and Expenditure Statement. No interest is charged on conservancy and service debtors in
normal circumstances.
(i) Impairment of non-fi nancial assets
The carrying amount of such assets (other than (i) intangible assets not yet available for use, (ii) goodwill and other indefi nite life
intangible assets) is reviewed at each reporting date for indications of impairment and where impairment is found, the asset is
written down through the income statement to its estimated recoverable amount. Irrespective of whether there is any indication of
impairment, an annual impairment test is performed at the same time every year on an intangible asset with an indefi nite useful life
or an intangible asset not yet available for use.
The impairment loss is the excess of the carrying amount over the recoverable amount and is recognised in the income statement. The
recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. In assessing
the value in use, the estimated future cash fl ows are discounted to their present value using a pre-tax discount rate that refl ects
current market assessments of the time value of money and the risks specifi c to the asset. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifi able cash fl ows (cash-generating units). At each reporting
date non-fi nancial assets other than goodwill with impairment loss recognised in prior periods are assessed for possible reversal of the
impairment. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(j) Financial assets
Initial recognition and measurement:
A fi nancial asset is recognised on the balance sheet when, and only when, the entity becomes a party to the contractual provisions
of the instrument. Financial assets are initially recognised at fair value which is normally represented by the transaction price. The
transaction price for fi nancial asset not classifi ed at fair value through income statement includes the transaction costs that are
directly attributable to the acquisition or issue of the fi nancial asset. Transaction costs incurred on the acquisition or issue of fi nancial
assets classifi ed at fair value through income and expenditure statement are expensed off immediately. The transactions are recorded
using the trade date method.
Subsequent measurement based on the classifi cation of fi nancial assets of four respective categories under FRS 39 is as follows:
1. Financial assets at fair value through income and expenditure statement: Assets are classifi ed in this category when they are
principally incurred for the purpose of selling or repurchasing in the near term (trading assets) or are derivatives (except for a
derivative that is a designated and effective hedging instrument) or have been classifi ed in this category because the conditions
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
21
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
are met to use the “fair value option” and it is used. These assets are carried at fair value by reference to the transaction price or
current bid prices in an active market. All changes in fair value are recognised directly in the income and expenditure statement.
They are classifi ed as non-current assets unless management intends to dispose of the investment within 12 months from the
balance sheet date. Short term investments in equities and bonds are classifi ed under this category.
2. Loans and receivables: Loans and receivables are non-derivative fi nancial assets with fi xed or determinable payments that are not
quoted in an active market. Assets that are for sale immediately or in the near term are not classifi ed in this category. These
assets are carried at amortised costs using the effective interest method (except that short-duration receivables with no stated
interest rate are normally measured at original invoice amount unless the effect of imputing interest would be signifi cant) minus
any reduction (directly or through the use of an allowance account) for impairment or uncollectibility. Impairment charges are
provided only when there is objective evidence that an impairment loss has been incurred as a result of one or more events that
occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated
future cash fl ows of the fi nancial asset or group of fi nancial assets that can be reliably estimated. Losses expected as a result of
future events, no matter how likely, are not recognised. For impairment, the carrying amount of the asset is reduced through use
of an allowance account. The amount of the loss is recognised in the income and expenditure statement.
3. Held-to-maturity fi nancial assets: As at year-end date there were no fi nancial assets classifi ed in this category.
4. Available-for-sale fi nancial assets: As at year-end date there were no fi nancial assets classifi ed in this category.
Derecognition of fi nancial assets:
Irrespective of the legal form of the transactions performed, fi nancial assets are derecognised when they pass the “substance over
form” based derecognition test prescribed by FRS 39 relating to the transfer of risks and rewards of ownership and the transfer of
control.
Cash and cash equivalents:
Cash and cash equivalents include bank and cash balances, on demand deposits and any highly liquid debt instruments readily
convertible to known amounts of cash and subject to an insignifi cant risk of change in value, less cash subject to restriction and bank
overdrafts payable on demand.
(k) Hedging
The Town Council is exposed to interest rate risks, arising from changes in interest rates for fi nancial instruments. No hedging
arrangement through derivatives and hedging instruments is required, but interests are managed using a mixture of variable rate
deposits.
22
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
(l) Financial liabilities
Initial recognition and measurement:
A fi nancial liability is recognised on the balance sheet when, and only when, the entity becomes a party to the contractual provisions
of the instrument. Financial liabilities are initially recognised at fair value which is normally represented by the transaction price.
The transaction price for fi nancial liability not classifi ed at fair value through income statement includes the transaction costs that
are directly attributable to the acquisition or issue of the fi nancial liability. Transaction costs incurred on the acquisition or issue of
fi nancial liability classifi ed at fair value through income and expenditure statement are expensed off immediately. The transactions
are recorded at the trade date.
Subsequent measurement:
Subsequent measurement based on the classifi cation of the fi nancial liabilities in one of the following two categories under FRS 39
is as follows:
1. Liabilities at fair value through income and expenditure statement: As at year-end date, there were no fi nancial liabilities classifi ed
in this category.
2. Other fi nancial liabilities: All liabilities, which have not been classifi ed as in the previous category fall into this residual category.
These liabilities are carried at amortised cost using the effective interest method. Payables and borrowing are classifi ed in this
category. Items classifi ed within current liabilities and other payables are not usually re-measured, as the obligation is usually
known with a high degree of certainty and settlement is short-term.
(m) Fair value of fi nancial instruments
The carrying values of current fi nancial assets and fi nancial liabilities including cash, receivables and payables approximate their
fair values due to the short-term maturity of these instruments. Disclosures of fair value are not made when the carrying amount is
a reasonable approximation of fair value. The fair values of non-current fi nancial instruments may not be disclosed unless they are
signifi cant to the fi nancial statements and in the event the fair values are disclosed in the relevant notes to the fi nancial statements.
The maximum exposure to credit risk is the fair value of the fi nancial instruments at the balance sheet date. The fair value of a
fi nancial instrument is derived from an active market. The appropriate quoted market price for an asset held or liability to be issued
is usually the current bid price without any deduction for transaction costs that may be incurred on sale or other disposal. The
appropriate quoted market price for an asset to be acquired or liability held is usually the current asking price.
23
(n) Provisions
A liability or provision is recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable
that an outfl ow of resources embodying economic benefi ts will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation. Provisions are made using best estimates of the amount required in settlement and where the
effect of the time value of money is material, the amount recognised is the present value of the expenditure expected to be required
to settle the obligation using a pre-tax rate that refl ects current market assessments of the time value of money and the risks specifi c
to the obligation. The increase in the provision due to passage of time is recognised as interest expense. Changes in estimates are
refl ected in the income and expenditure statement in the period they occur.
(o) Lease as a lessee
Leases where the lessor effectively retains substantially all the risks and benefi ts of ownership of the leased assets are classifi ed as
operating leases. For operating leases, lease payments are recognised as an expense in the income and expenditure statement on a
straight-line basis over the term of the relevant lease unless another systematic basis is representative of the time pattern of the user’s
benefi t, even if the payments are not on that basis. Lease incentives received are recognised in the income and expenditure statement
as an integral part of the total lease expense.
(p) Taxation
Tax is provided on the following income:
(i) Income derived from investments;
(ii) Fees, rent and other charges received from non-residents or non-owners of properties in the Town for maintenance of carpark
where the Town Council opts to manage and maintain them;
(iii) Donations from non-residents or non-owners of properties in the Town; and
(iv) Agency fees derived from acting as agents for other town councils.
Income tax is accounted using the asset and liability method that requires the recognition of taxes payable or refundable for the
current year and deferred tax liabilities and assets for the future tax consequence of events that have been recognised in the fi nancial
statements or tax returns. The measurements of current and deferred tax liabilities and assets are based on provisions of the enacted
or substantially enacted tax laws, and the effects of future changes in tax laws or rates are not anticipated. Income tax expense
represents the sum of the tax currently payable and deferred tax. Deferred tax assets and liabilities are offset when they relate to
income taxes levied by the same income tax authority. The carrying amount of deferred tax assets is reviewed at each balance sheet
date and is reduced, if necessary, by the amount of any tax benefi ts that, based on available evidence, are not expected to be realised.
Deferred taxes are recognised for all temporary differences.
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
24
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
(q) Revenue recognition
The revenue amount is the fair value of the consideration received or receivable from the gross infl ow of economic benefi ts during
the year arising from the course of the ordinary activities of the Town Council and it is shown net of related tax, estimated returns,
discounts and volume rebates.
Conservancy and service fees are recognised when due.
Agency fees are fees received for routine maintenance of HDB’s carparks and are recognised when due.
Interest income from fi xed deposits is recognised as the interest accrues (taking into account the effective yield on the asset) unless
collectibility is in doubt. Income from funds placed with fund managers is recognised when realised or upon the expiry of the fund
management term.
(r) Employee benefi ts
Contributions to defi ned contribution retirement benefi t plans are recorded as an expense as they fall due. The Town Council’s legal
or constructive obligation is limited to the amount that it agrees to contribute to an independently administered fund. This includes
the government managed retirement benefi t plan such as the Central Provident Fund in Singapore. For employee leave entitlement,
the expected cost of short-term employee benefi ts in the form of compensated absences is recognised in the case of accumulating
compensated absences; when employees render service that increases their entitlement to future compensated absences, and in the
case of non-accumulating compensated absences, when the absences occur.
(s) Critical judgements, assumptions and estimation uncertainties
There were no critical judgements made in the process of applying the Town Council’s accounting policies that have signifi cant impact
on the amounts recognised in the fi nancial statements. There were no key assumptions concerning the future, and other key sources
of estimation uncertainty at the balance sheet date, that have a signifi cant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next fi nancial year.
25
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
3 Plant and equipment
CostAt 1 April 2006 1,088,383 262,667 2,246,156 3,597,206Additions 32,099 7,050 738,515 777,664At 31 March 2007 1,120,482 269,717 2,984,671 4,374,870Additions 20,626 – 103,562 124,188Disposals – – (66,124) (66,124)At 31 March 2008 1,141,108 269,717 3,022,109 4,432,934
Accumulated depreciationAt 1 April 2006 1,068,895 260,834 2,222,132 3,551,861Depreciation charge 11,118 3,028 47,546 61,692At 31 March 2007 1,080,013 263,862 2,269,678 3,613,553Depreciation charge 17,016 2,714 278,571 298,301Disposals – – (66,124) (66,124)At 31 March 2008 1,097,029 266,576 2,482,125 3,845,730
Net book value
At 31 March 2006 19,488 1,833 24,024 45,345
At 31 March 2007 40,469 5,855 714,993 761,317
At 31 March 2008 44,079 3,141 539,984 587,204
4 Investments in fi nancial assets
Investments in fi nancial assets represent funds and related investment income placed with professional fund managers.
The Town Council appoints several fund managers to manage its available investment funds, based on terms and conditions stipulated in
the respective Investment Agreements entered in with these fund managers for a fi xed period of time.
(i) As at 31 March 2008, the Town Council has arrangements with the fund managers to guarantee in aggregate the principal amount of
$94,500,000 (2007 : $80,500,000) at the end of the management term.
(ii) The fund managers charge annual base administration fees. Performance fees are charged for the excess, before income tax, of the
market value of the fund over the specifi ed performance benchmark at the end of the management term or termination date if
earlier.
Furniture,fi xtures
and fi ttings$
Offi ceequipment
$
Dataprocessing
equipment/software
$Total
$
26
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
(iii) The funds are invested in accordance with the Town Councils Act and the Trustees Act.
(iv) The funds are classifi ed as fi nancial assets at fair value. All fair value gains / (losses) on the funds are included in the sinking funds.
2008 2007$ $
Balance at beginning of fi nancial year 100,287,745 90,692,696
New placement of funds 32,000,000 – Proceeds on maturity (22,576,880) – Accrued income for the fi nancial year 6,565,349 3,827,362Increase/(decrease) in fair value during the year (8,358,494) 5,767,687
Fair value at end of the fi nancial year 107,917,720 100,287,745
As at the balance sheet date, the funds invested with fund managers comprise the following:
2008 2007$ $
At fair value At fair value
Equities 11,347,810 28,877,600
Bonds 44,894,611 30,628,390Unit trusts 24,654,375 39,135,506Cash and fi xed deposits 27,020,924 1,646,249
Total 107,917,720 100,287,745
5 Conservancy and service debtors
2008 2007$ $
Conservancy and service debtors 1,197,121 1,374,859
Conservancy and service debtors are stated after allowance for impairment of $281,626 (2007 : $245,948).
The movement in allowance for impairment is as follows:
Balance at beginning of fi nancial year 245,948 217,079Charge to income and expenditure statement 35,678 28,869
Balance at end of fi nancial year 281,626 245,948
27
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
6 Cash and cash equivalents
Cash and cash equivalents included in the cash fl ow statement comprise the following balance sheet amounts:
2008 2007$ $
Fixed deposits with fi nancial institutions 37,724,241 42,349,345Bank and cash balances 2,286,838 7,591,267
40,011,079 49,940,612
Fixed deposits with fi nancial institutions bear maturities ranging from 1 month to 12 months at interest rates ranging from 1.00% to 2.63%
per annum (2007 : 1 month to 12 months at interest rates ranging from 2.75% to 3.50% per annum). These interest rates approximate the
weighted effective interest rate.
7 Payables and accrued expenses
2008 2007$ $
Sundry deposits 181,840 227,931Accrued operating expenses 165,148 177,872Outside parties 2,138,638 5,336,395
2,485,626 5,742,198
The carrying amounts of payables and accrued expenses approximate their fair values.
28
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
8 Accumulated surplus
The surplus for the fi nancial year attributable to the various activities is carried forward as accumulated surplus in the respective funds as follows:
Residential Property Commercial Property Carpark Total Notes 2008 2007 2008 2007 2008 2007 2008 2007
$ $ $ $ $ $ $ $
Operating income
Conservancy and service fees 27,345,341 27,312,011 3,271,675 3,231,807 – – 30,617,016 30,543,818Less: Operating transfer to
sinking funds (9,119,501) (9,105,299) (1,145,087) (1,131,134) – – (10,264,588) (10,236,433)18,225,840 18,206,712 2,126,588 2,100,673 – – 20,352,428 20,307,385
Agency fees and other income 838,798 616,573 594,648 593,062 1,765,659 1,723,617 3,199,105 2,933,252
19,064,638 18,823,285 2,721,236 2,693,735 1,765,659 1,723,617 23,551,533 23,240,637
Less: Operating expenditure (21,520,862) (21,569,345) (1,879,668) (1,949,585) (1,974,384) (2,070,552) (25,374,914) (25,589,482)
Operating surplus/(defi cit) (2,456,224) (2,746,060) 841,568 744,150 (208,725) (346,935) (1,823,381) (2,348,845)
Add: Non-operating income 115,886 270,433 8,332 24,766 11,467 29,000 135,685 324,199
Surplus/(defi cit) before taxationand government grants
(2,340,338) (2,475,627) 849,900 768,916 (197,258) (317,935) (1,687,696)
(2,024,646)
Less: Taxation 14 (236,199) – (19,184) – (12,838) – (268,221) –
Surplus/(defi cit) before government grants (2,576,537) (2,475,627) 830,716 768,916 (210,096) (317,935) (1,955,917) (2,024,646)
Add: Government grants 13 7,480,334 7,724,702 47,019 201,038 – – 7,527,353 7,925,740
Add: GST subvention 13 1,061,788 397,454 – – – – 1,061,788 397,454
Less: Transfer to sinking funds 9, 13 (2,226,834) (2,008,505) – – – – (2,226,834) (2,008,505)
Less: Transfer to town improvement and project funds 10, 13 (1,474,160) (1,716,032) (47,019) (201,038) – – (1,521,179) (1,917,070)
4,841,128 4,397,619 – – – – 4,841,128 4,397,619
Surplus/(defi cit) for the fi nancial year 2,264,591 1,921,992 830,716 768,916 (210,096) (317,935) 2,885,211 2,372,973
Accumulated surplus/(defi cit) at beginning of fi nancial year 2,860,057 4,564,869 1,081,646 1,582,818 (140,264) 509,427 3,801,439 6,657,114
Add: Transfer from carpark to residential – 331,756 – – – (331,756) – –
Less: Transfer to sinking funds 9 – (2,584,404) – (1,144,244) – – – (3,728,648)
5,124,648 4,234,213 1,912,362 1,207,490 (350,360) (140,264) 6,686,650 5,301,439
Less: Appropriation to town improvement and project funds 10 (1,399,826) (1,374,156) (100,174) (125,844) –
–
(1,500,000) (1,500,000)
Accumulated surplus/(defi cit)at end of fi nancial year 3,724,822 2,860,057 1,812,188 1,081,646 (350,360) (140,264) 5,186,650 3,801,439
29
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
9 Sinking funds Residential Property Commercial Property Total
Notes 2008 2007 2008 2007 2008 2007$ $ $ $ $ $
Balance at beginning of fi nancial year 114,018,146 95,518,292 23,929,609 18,701,351 137,947,755 114,219,643
Add:
Transfer from accumulated surplus 8 – 2,584,404 – 1,144,244 – 3,728,648
Transfer from town improvement and project funds 10 – 9,445,866 – 2,706,314 – 12,152,180
Income 15 7,017,896 4,513,636 503,076 892,753 7,520,972 4,926,993Operating transfer from conservancy andservice fees (minimum required by law) 8 9,119,501 9,105,299 1,145,087 1,131,134 10,264,588 10,236,433Transfer from government grant and GST subvention 8, 13 2,226,834 2,008,505 – - 2,226,834 2,008,505Fair value gains/(losses) on investments with fund managers (7,800,144) 5,283,803 (558,350) 4,488 (8,358,494) 5,767,687
10,564,087 20,911,243 1,089,813 2,028,375 11,653,900 22,939,618
Less: Expenditure (11,367,300) (13,830,033) (579,049) (594,663) (11,946,349) (14,424,696)
Less: Taxation 14 (353,620) (611,626) (25,050) (56,012) (378,670) (667,638)
(1,156,833) 6,469,584 485,714 1,377,700 (671,119) 7,847,284
Balance at end of fi nancial year 112,861,313 114,018,146 24,415,323 23,929,609 137,276,636 137,947,755
Represented by:
Current assets
Investments in fi nancial assets 107,917,720 100,287,745
Conservancy and service debtors 445,559 507,119
Interest receivable 252,761 483,989
Amount due from accumulated surplus – 3,589,323
Fixed deposits with fi nancial institutions 30,415,713 33,631,263
Bank and cash balances 831,143 3,276,217
Total assets 139,862,896 141,775,656
Current liabilities
Payables and accrued expenses 1,349,598 3,083,003
Amount due to accumulated surplus 542,357 – Provision for taxation 694,305 744,898
Total liabilities 2,586,260 3,827,901
Net assets 137,276,636 137,947,755
30
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
10 Town improvement and project funds Residential Property Commercial Property Total
Notes 2008 2007 2008 2007 2008 2007$ $ $ $ $ $
Balance at beginning of fi nancial year 4,249,522 13,917,626 1,052,360 3,576,064 5,301,882 17,493,690
Income 56,832 172,691 4,145 15,817 60,977 188,508
Payments from citizens’ consultative committee 8, 13 1,474,160 1,716,032 47,019 201,038 1,521,179 1,917,070
1,530,992 1,888,723 51,164 216,855 1,582,156 2,105,578
Less: Expenditure (3,044,084) (3,427,145) (151,651) (154,779) (3,195,735) (3,581,924)
Less: Taxation 14 44,010 (57,972) 3,182 (5,310) 47,192 (63,282)
(1,469,082) (1,596,394) (97,305) 56,766 (1,566,387) (1,539,628)
Less: Transfer to sinking fund 9 – (9,445,866) – (2,706,314) – (12,152,180)
Add: Appropriation from accumulated surplus 8 1,399,826 1,374,156 100,174 125,844 1,500,000 1,500,000
Balance at end of fi nancial year 4,180,266 4,249,522 1,055,229 1,052,360 5,235,495 5,301,882
Represented by:
Current assets
Interest receivable 604 13,889
Grants receivable 646,811 1,070,048
Other receivables 74,967 –
Amount due from accumulated surplus 1,682,151 1,543,857
Fixed deposits with fi nancial institutions 2,546,443 2,036,125
Bank and cash balances 387,659 917,405
Total assets 5,338,635 5,581,324
Current liabilities
Payables and accrued expenses 94,676 177,445
Provision for taxation 8,464 101,997
Total liabilities 103,140 279,442
Net assets 5,235,495 5,301,882
11 Interim upgrading programme fund
2008 2007$ $
Balance at beginning of fi nancial year 156,435 943,967Government funds received/bank interests 896 1,179,396Payments to contractors (212,552) (1,966,928)
Balance at end of fi nancial year (55,221) 156,435
31
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
12 Estate upgrading programme fund
2008 2007$ $
Balance at beginning of fi nancial year 64,666 (24,928)Government funds received/bank interests 249 92,900Payments to contractors – (3,306)
Balance at end of fi nancial year 64,915 64,666
13 Government grants
Conservancy and Service Grant Payments from Citizens’ Consultative Committee
Total
Notes 2008 2007 2008 2007 2008 2007$ $ $ $ $ $
Government grants received during the fi nancial year 6,007,446 6,017,488 874,368 847,022 6,881,814 6,864,510
Government grants receivable – – 646,811 1,070,048 646,811 1,070,048
Government grants received in advance (1,272) (8,818) – – (1,272) (8,818)
GST subvention received during the fi nancial year 786,377 397,454 – – 786,377 397,454
GST subvention receivable 275,411 – – – 275,411 –
8 7,067,962 6,406,124 1,521,179 1,917,070 8,589,141 8,323,194
Less:
Transfer to sinking fund 9 (2,226,834) (2,008,505) – – (2,226,834) (2,008,505)
Transfer to town improvement and project fund 10 – – (1,521,179) (1,917,070) (1,521,179) (1,917,070)
4,841,128 4,397,619 – – 4,841,128 4,397,619
The total amount of grants received (including grants received in advance) since the formation of the Town Council is as follows:
2008 2007$ $
Total grants received as at beginning of fi nancial year 160,582,760 152,807,992Grants receivable at beginning of fi nancial year and received during the year 1,070,048 512,804Grants received during the fi nancial year 6,881,814 6,864,510Government grants received in advance at beginning of year (8,818) –GST subvention received during the fi nancial year 786,377 397,454
Total grants received at as 31 March 169,312,181 160,582,760
32
14 Income tax
2008 2007$ $
Taxation attributable to income is made up of:- current taxation 595,532 730,920- underprovision for prior year 4,167 –
599,699 730,920
Taken up in:
Income and expenditure statement (Note 8) 268,221 – Sinking fund (Note 9) 378,670 667,638Town improvement and project fund (Note 10) (47,192) 63,282
599,699 730,920
A reconciliation between the tax expense and the product of the accounting taxable income multiplied by the applicable tax rate is as follows:
Investment and interest income 2,982,161 3,025,190Dividend income 325,432 410,568Other income 534,661 495,749
3,842,254 3,931,507
Tax at the statutory rate of 18% 691,606 707,671Singapore statutory stepped income exemption (27,450) (27,450)Others (68,624) 50,699Underprovision for prior year 4,167 –
599,699 730,920
15 Income on sinking fund
2008 2007$ $
Income from investment with fund managers 6,565,349 3,827,362Interest income from bank and fi xed deposits 886,820 1,095,629Others 68,803 4,002
7,520,972 4,926,993
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
33
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
16 General and administrative expenditure
2008 2007$ $
Advertising, publicity and public relations 255,321 279,527Audit fees 23,000 21,000Computers services 387,699 546,292Councillors' allowance 214,752 239,310Depreciation on plant and equipment (Note 3) 298,301 61,692Plant and equipment not capitalised 2,679 1,630Employee benefi ts (Note 17) 4,485,853 4,005,795Offi ce rental and upkeep 435,309 459,816Offi ce supplies and stationery 38,966 49,236Property tax 49,398 49,940Allowance for impairment on conservancy and service debtors 35,678 28,869Others 548,215 467,302
6,775,171 6,210,409
17 Employee benefi ts
2008 2007$ $
Salaries 3,704,298 3,282,541Contributions to defi ned contribution plans 451,963 377,056Other benefi ts 329,592 346,198
4,485,853 4,005,795
18 Financial instruments: Information on fi nancial risks
The Town Council’s fi nancial instruments comprise certain cash and liquid resources, and various items such as investment in fi nancial assets,
conservancy and service debtors and other receivables, trade and other payables, that arise from its operations. The main risks arising from
the fi nancial instruments are credit risk and interest risk. The Town Council is not exposed to foreign exchange risk. There is no signifi cant
liquidity risk as suffi cient cash is maintained. The Town Council’s reviews on the policies for managing these risks are spelt out below.
(i) Credit risk on fi nancial assets
Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to discharge their obligations
consist principally of cash, cash equivalents, conservancy and service debtors and other receivables. The Town Council believes that the
fi nancial risks associated with these fi nancial instruments are minimal. The cash and cash equivalents and other liquid fi nancial assets
are placed with high credit quality institutions. An ongoing credit evaluation is performed of the debtors’ fi nancial condition and a
loss from impairment is recognised in the income and expenditure statement. There is no signifi cant concentration of credit risk, as the
exposure is spread over a large number of counterparties.
34
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
(ii) Other risks
The other major risk arising from the Town Council’s fi nancial instruments is interest risk, arising from changes in interest rates for
fi nancial instruments with a fi xed interest rate and interest risk or cash fl ow risk for fi nancial instruments with a fl oating interest that
is reset as market rate changes. No hedging arrangement through derivatives and hedging instruments is required, but interests are
managed using a mixture of variable rate deposits.
19 Operating lease payment commitments
Commitments in relation to non-cancellable operating leases contracted for at the balance sheet date but not recognised as liabilities are
as follows:
2008 2007$ $
Not later than one fi nancial year 264,000 347,694Later than one fi nancial year but not later than fi ve fi nancial years 131,000 450,803
395,000 798,497
Rental expenses for the fi nancial year 347,025 346,949
20 Capital commitment
Capital expenditure approved by the Town Council but not provided for in the fi nancial statements is as follows:
2008 2007$ $
Amounts approved and contracted for 9,278,827 7,193,690
Budget approved but not contracted for 37,855,251 28,384,000
The balances disclosed under “Budget approved but not contracted for” are extracted from the sinking fund and town improvement and
project fund budgets for the fi nancial year ending 31 March 2009 approved by the Town Council.
35
21 Changes and adoption of fi nancial reporting standards
For the fi nancial year ended 31 March 2008, the following new or revised Singapore Financial Reporting Standards (“FRS”) were adopted
for the fi rst time. The new or revised standards did not require any material modifi cation of the measurement method or presentation in
the fi nancial statements.
FRS No. Title
FRS 1 Presentation of Financial Statements - Amendments relating to capital disclosures
FRS 40 Investment Property (*)
INT FRS 105 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds (*)
INT FRS 107 Applying the Restatement Approach under FRS 29 Financial Reporting in Hyperinfl ationary Economies (*)
INT FRS 108 Scope of FRS 102 (*)
INT FRS 109 Reassessment of Embedded Derivatives
INT FRS 110 Interim Financial Reporting and Impairment (*)
INT FRS 111 FRS102 - Group and Treasury Share Transactions (*)
(*) Not relevant
22 Future changes in accounting standards
The following new or revised FRS that have been issued will be effective in the future fi nancial years. The adoption of these new or revised
FRS from the effective dates is not expected to have a material impact on the fi nancial statements.
Effective date for periodsFRS No. Title beginning on or after
FRS 23 Borrowing Costs 1.1.2009
FRS 107 Financial Instruments: Disclosures 1.1.2008
FRS 107 Financial Instruments: Disclosures – Implementation Guidance 1.1.2008
FRS 108 Operating Segments (*) 1.1.2009
INT FRS 112 Service Concessions Arrangements (*) 1.1.2008
(*) Not relevant
Notes to the Financial Statements 31 March 2008
Bishan-Toa Payoh Town Council
TOA PAYOH OFFICE Block 125A #01-134 Lorong 2 Toa Payoh, Singapore 311125. Tel: 6259 6700
BISHAN OFFICE Block 197 #01-585 Bishan Street 13, Singapore 570197. Tel: 6259 6700
WEBSITE: www.btptc.org.sg
EMAIL: prm@btptc.org.sg
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