LEMBAGA BIASISWA KENANGAN MAULUD (PROPHET MUHAMMAD…lbkm.org.sg/wp-content/uploads/2013/01/audited-financial-report... · LEMBAGA BIASISWA KENANGAN MAULUD (PROPHET MUHAMMAD’S BIRTHDAY

25

LEMBAGA BIASISWA KENANGAN MAULUD (PROPHET MUHAMMAD’S BIRTHDAY

MEMORIAL SCHOLARSHIP FUND BOARD) UEN Number: S66SS0027A

FINANCIAL STATEMENTS FOR

FINANCIAL YEAR ENDED 31 DECEMBER 2013

26

CONTENTS PAGE Statement by Executive Council 1 Independent Auditors’ Report 2 – 3 Balance Sheet 4 Statement of Financial Activities 5 Statement of Cash Flows 6 Notes to the Financial Statements 7 – 23

LEMBAGA BIASISWA KENANGAN MAULUD UEN No.: S66SS0027A (Registered under the Societies Act, Chapter 311 and Charities Act, Chapter 37, Singapore)

STATEMENT BY EXECUTIVE COUNCIL For the financial year ended 31 December 2013

27

In the opinion of the Executive Council of LEMBAGA BIASISWA KENANGAN MAULUD (the “Society”), the accompanying balance sheet, statement of financial activities and statement of cash flows are properly drawn up so as to give a true and fair view of the state of affairs of the Society as at 31 December 2013 and the results, changes in funds and cash flows of the Society for the financial year ended on that date.

Date: 25 April 2014

28

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LEMBAGA BIASISWA KENANGAN MAULUD Report on the Financial Statements We have audited the accompanying financial statements of LEMBAGA BIASISWA KENANGAN MAULUD (the “Society”), which comprises of the balance sheet as at 31 December 2013, the statement of financial activities and statement of cash flows for the financial year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Societies Act (Chapter 311), Charities Act (Chapter 37) and Charities Accounting Standard (“CAS”), and for devising and maintaining a system of internal accounting controls sufficient 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 statement of financial activities and balance sheet and to maintain accountability of assets. Auditors’ Responsibility Our responsibility is to express an opinion on these financial 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 about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Society’s preparation of financial statements that give a true and fair view 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 Society’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the Societies Act (Chapter 311), Charities Act (Chapter 37) and CAS so as to give a true and fair view of the state of affairs of the Society as at 31 December 2013 and the results, changes in funds and cash flows of the Society for the financial year ended on that date.

29

Report on Other Legal and Regulatory Requirements (a) In our opinion,

(i) the accounting and other records required by the regulations of the Societies Act, to be kept by the Society have been properly kept in accordance with the provisions of those regulations;

(ii) the use of donation money received is in accordance with the Society’s objectives; and (b) The Society did not hold any fund-raising activity during the financial year.

___________________________

HELMI TALIB & CO Public Accountants and Chartered Accountants Singapore Date: 25 April 2014 Partner-in-charge of audit: See John Kuan


BALANCE SHEET As at 31 December 2013

30

2013 2012

Note SGD SGD

Assets Current assets

Cash and bank balances 6 1,625,452 1,630,190 Receivables 7 367,233 371,070

Total current assets 1,992,685 2,001,260

Non-current assets

Plant and equipment 8 19,467 7,137 Investment securities 9 171,817 174,854 Investment property 10 312,312 320,320

Total non-current assets 503,596 502,311

Total assets 2,496,281 2,503,571

Liabilities and equity

Liabilities Current liabilities

Payables 11 44,127 45,976

Total current liabilities 44,127 45,976

Non-current liabilities

Total non-current liabilities - -

Total liabilities 44,127 45,976

Funds of charity

Unrestricted funds General fund 1,982,602 1,835,783 Sinking fund 88,435 78,800

Total unrestricted funds 2,071,037 1,914,583

Restricted funds

Bursary sponsorship fund 123,732 294,072 LBKM – Thye Hwa Kuan sponsorship fund 84,000 75,858 LBKM scholarship fund 133,385 153,082 Donors’ corpus fund 40,000 20,000

Total restricted funds 381,117 543,012 Total charity funds 5 2,452,154 2,457,595

Total liabilities and charity funds 2,496,281 2,503,571

The accompany notes form an integral part of these financial statements.


STATEMENT OF FINANCIAL ACTIVITIES For the financial year ended 31 December 2013

31

NOTE 2013 2012

Unrestricted Restricted fund fund Total $ $ $ $

INCOME Income from generated funds Voluntary income 441,596 1,527,155 1,968,751 1,509,533 Activities for generating funds 136,149 - 136,149 295,348 Investment income 70,005 - 70,005 83,353 Other income 4 - 4 7,615 TOTAL INCOME 647,754 1,527,155 2,174,909 1,895,849

EXEPNDITURE Cost of generating voluntary income (61,511) - (61,511) (52,900) Fundraising trading: Cost of goods sold (122,169) - (122,169) (180,226) Investment management cost (19,647) - (19,647) (15,043) Charitable activities (138,773) (1,687,050) (1,825,823) (1,768,460) Governance costs (151,200) - (151,200) (151,949) TOTAL EXPENDITURE (493,300) (1,687,050) (2,180,350) (2,168,578) NET INCOME (EXPENDITURE) 154,454 (159,895) (5,441) (272,729)

Gross transfers between funds 5 2,000 (2,000) - - NET MOVEMENT IN FUNDS 156,454 (161,895) (5,441) (272,729) RECONCILIATION OF FUND Total funds brought forward 1,914,583 543,012 2,457,595 2,730,324 TOTAL FUNDS CARRIED FORWARD 5 2,071,037 381,117 2,452,154 2,457,595



STATEMENT OF CASH FLOWS For the financial year ended 31 December 2013

32

2013 2012

Note SGD SGD

Statement of cash flows Cash flows from (used in) operating activities

Net income (expenditure) before income tax expense (5,441) (272,729) Adjustments for

Depreciation of investment property 8,008 8,008 Depreciation of plant and equipment 6,741 2,931 Charge (Reversal) for impairment losses – Investment securities

3,608 (2,129)

Gain on disposal of investment secutities (4) (7,615) Dividend income (1,698) (1,148) Interest income (8,307) (22,205)

Total adjustments to profit (loss) account 8,348 (22,158)

Total operating cash flows before movement of working capital 2,907 (294,887) Changes in working capital

Adjustments for decrease (increase) in receivables 3,837 (340,500) Adjustments for decrease in payables (1,849) (19,879)

Total changes in working capital 1,988 (360,379)

Cash generated from (used in) operations 4,895 (655,266) Interest received 8,307 22,205

Net cash flows from (used in) operating activities 13,202 (633,061)

Cash flows from (used in) investing activities

Dividend received 1,698 1,148 Proceeds from disposal of investment securities 1,131 176,243 Acquisition of investment securities (1,698) (176,095) Acquisition of plant and equipment (19,071) (5,378)

Net cash flows used in investing activities (17,940) (4,082)

Cash flows from (used in) financing activities

Net cash flows from (used in) financing activities - -

Net decrease in cash and cash equivalents (4,738) (637,143) Cash and cash equivalents at beginning of period 1,630,190 2,267,333

Cash and cash equivalents at end of period 6 1,625,452 1,630,190

Cash and cash equivalents if different from balance sheet

Total cash and cash equivalents as per cash flow statement - -

Net cash flows

Net cash flows from (used in) operating activities 13,202 (633,061)

Net cash flows used in investing activities (17,940) (4,082)

Net cash flows from (used in) financing activities - -


33

These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1 SOCIETY INFORMATION

LEMBAGA BIASISWA KENANGAN MAULUD (PROPHET MUHAMMAD’S BIRTHDAY MEMORIAL SCHOLARSHIP FUND BOARD) is a Society registered in Singapore under the Societies Act, Chapter 311 on 17 February 1966. The registered office of the Society is at 448 Changi Road, #04-01, Wisma Indah, Singapore 419975. The Society is an approved charity under the Charities Act, Cap. 37 since 16 October 1985, and has been accorded the status of an Institution of a Public Character (“IPC”) for 3 years from 1 February 2009 to 31 January 2013. The IPC status has subsequently been renewed for another 3 years to 31 January 2016. The registration number is S66SS0027A. The principal activity of the Society is to promote education by assisting the needy and deserving students in furthering their education through the awards of scholarships, bursaries and study grants. The financial statements were authorised for issue in accordance with a circular resolution of Executive Council on 25 April 2014.

2 EXECUTIVE COUNCIL For the financial year under review, the members of the Executive Council were as follows: Suhaimi Bin Salleh - President Ismail Bin Abdullah - Deputy President Wan Hussin Bin Haji Zoohri - Immediate Past President Mohamed Bin Alam Din - Honorary Secretary Halil Bin Haji Mansor - Assistant Honorary Secretary Osman Bin Abdur Rahim Bagarib - Honorary Treasurer Muhd Harmizan Bin Abdul Hamid - Assistant Honorary Treasurer Abdul Karim Bin Sulaiman - Council Member Abdur Rahim S/O Abul Nasir - Council Member Abdul Samat Bin Ali - Council Member Hamri Bin Hunar - Council Member Mohammad Noor Bin Abdul Rahman - Council Member Mohd Haireez Bin Mohd Jufferie - Council Member Nurhazimah Binti Abdul Halim - Council Member Syed Harun Bin Taha Alhabsyi - Council Member

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 Basis of preparation The financial statements have been prepared in accordance with the provisions of the Societies Act (Chapter 311), Charities Act (Chapter 37) and Charities Accounting Standard (“CAS”).


NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2013

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

3.1 Basis of preparation (Continued)

The financial statements are expressed in Singapore Dollars (“$” or “SGD”), which is the Society’s functional currency and are prepared in accordance with the historical cost basis, except as disclosed in the accounting policies below. The preparation of financial statements requires the Executive Council to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Although these estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, actual results may ultimately differ from those estimates. There were no critical judgments made in the process of applying the society’s accounting policies that have the most significant effect on the amounts recognised in the financial statements. There were no key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

3.2 Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial year.

3.3 Investment assets Investment assets generally include investment properties, investments in debt or equity instruments (investment securities) and cash held for investment purposes. (a) Investment property

Investment property is held to earn rental income and is measured at cost less accumulated depreciation and impairment losses. The carrying amount includes the cost of replacing part of existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day maintenance of an investment property. The building cost is depreciated over a 50-year period on a straight-line basis. Investment property is derecognised when disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on the retirement or disposal of an investment property is recognised in the statement of financial activities in the year of retirement or disposal. The carrying amount of investment property is reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The residual values, useful lives and depreciation method of investment property are reviewed and adjusted as appropriate at the end of each reporting period. The effects of any revision are included in profit or loss when the changes arise.

(b) Investment securities

Investment in securities is recognised on the balance sheet when, and only when the Society becomes a party to the contractual provisions of the financial instrument. Investment in securities is measured initially at the transaction price excluding transaction costs, if any, which shall be recognised as expenditure immediately in the statement of financial activities as incurred.




3.3 Investment assets (Continued)

(b) Investment securities (Continued)

Subsequent to initial measurement, investment in securities is measured at cost less any accumulated impairment losses.

3.4 Plant and equipment

Plant and equipment are stated at cost less accumulated depreciation. The cost of plant and equipment initially recognised includes its purchase price and any directly attributable costs of bringing the plant and equipment to working condition for its intended use. Subsequent expenditure relating to plant and equipment that has already been recognised is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the Society and the cost of the item can be measured reliably. All other repair and maintenance expense is recognised in the statement of financial activities when incurred. Depreciation is calculated on a straight-line basis over their estimated useful lives as follows:

Office equipment - 5 years Furniture and fittings - 5 years Computers - 5 years Renovation - 5 years

The residual values, useful life and depreciation method are reviewed at the end of each reporting period to ensure that the amount, method and year of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of plant and equipment. An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the statement of financial activities in the year the asset is derecognised.

3.5 Impairment of non-financial assets The carrying amounts of the Society’s assets are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. All impairment losses are recognised in profit or loss whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. An impairment loss is only revised to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or impairment, if no impairment loss had been recognised. All reversals of impairment are recognised in profit or loss.

3.6 Financial assets Financial assets are any asset that is either cash or equity instrument of another entity or the Society has a contractual right:

To receive cash or another financial asset from another entity; or

To exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the Society.

Financial assets are recognised on the balance sheet when, and only when the society becomes a party to the contractual provisions of the financial instrument.




3.6 Financial assets (Continued)

Financial assets are measured initially at the transaction price excluding transaction costs. Transaction costs shall be recognised as expenditure in the Statement of Financial Activities as incurred. Subsequent to initial measurement, financial assets are measured at cost less any accumulated impairment losses. The Society classifies its financial assets into the following categories: (a) Investment securities

See Note 3.3 (b).

(b) Receivables Included in receivables are prepayments. Prepayments shall be initially recognised at the amount paid in advance for the economic resources expected to be received in the future. After initial recognition, prepayments shall be measured at the amount paid less the economic resources received or consumed during the financial year.

(c) Cash and bank balances

Cash and bank balances comprise of cash on hand, bank balances and fixed deposits.

3.7 Impairment of financial assets At the end of each reporting period, the Society shall assess whether there is objective evidence of impairment of its financial assets. If there is objective evidence of impairment (including significant changes with an adverse effect that have taken place in the technological, market, economic or legal environment in which the issuer operates), the society shall recognise an impairment loss (i.e. expenditure) immediately in the statement of financial activities. Objective evidence that a financial asset or group of financial assets is impaired includes observable data that come to the attention of the Society about the following loss events:

(i) Significant financial difficulty of the debt/bond issuer or obligor. (ii) A breach of contract, such as a default or delinquency in interest or principal payments. (iii) The creditor, for economic or legal reasons relating to the debtor’ financial difficulty. (iv) It has become probable that the debtor will enter bankruptcy or other financial

reorganisation. (v) Observable data indicating that there has been a measurable decrease in the estimated

future cash flows from a group of financial assets since the initial recognition of those assets, even though the decrease cannot yet be identified with the individual financial assets in the group, such as adverse national or local economic conditions or adverse changes in industry conditions.

For all other financial assets, the impairment loss are recognised in the Statement of Financial Activities whenever carrying amount of the financial asset is lesser than the undiscounted future cash flows (excluding unearned interest in the case of an interest-bearing financial asset) that the Society expects to receive from the financial asset.




3.7 Impairment of financial assets (Continued)

An impairment loss is only revised to the extent that the assets’ carrying amount of the financial asset (net of any allowance account) that exceeds what the carrying amount would have been had the impairment not previously been recognised. The Society shall recognise the amount of the reversal in the Statement of Financial Activities immediately.

3.8 Financial liabilities Financial liabilities are any liability that is a contractual obligation by the Society to:

Deliver cash or another financial asset to another entity; or

Exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the Society.

Financial liabilities include payables excluding accruals shall be recognised at their transaction price, excluding transaction costs, if any, both at initial recognition and at subsequent measurement. Transaction costs shall be recognised as expenditure in the statement of financial activities as incurred. Accruals shall be recognised at the best estimate of the amount payable.

3.9 Provisions

Provisions are recognised when the Society has a present legal or constructive obligation as a result of a past event where it is probable that it will result in an outflow of economic benefits to settle the obligation and the amount of obligation can be estimated reliably.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

3.10 Funds (a) Unrestricted Fund

Unrestricted fund comprises general fund and designated fund. General funds are used for the general purposes of the Society as set out in its governing document. If part of an unrestricted fund is earmarked for a particular project, it may be designated as a separate fund, but the designation has an administrative purpose only, and does not legally restrict the Executive Council’s discretion to apply the fund. The Society classifies the following funds as unrestricted funds:

General fund

Sinking fund (b) Restricted Fund

Restricted funds are funds subject to specific trusts, which may be declared by the donor(s) or with their authority (e.g. in a public appeal) or created through legal process, but still within the wider objects of the Society.




3.10 Funds (Continued)

(b) Restricted Fund (Continued)

Restricted funds may only be utilised in accordance with the purposes established by the sources of such funds and are in contrast with unrestricted funds over which the Executive Council retains full control to use in achieving its institutional purposes. The Society classifies the following funds as restricted funds:

Bursary sponsorship fund

LBKM scholarship fund

LBKM – Thye Hwa Kuan sponsorship fund

Donors’ corpus fund

3.11 Income recognition Income shall be recognised in the statement of financial activities when the effect of a transaction or other event results in an increase in the Society’s net assets. This normally arises when there is control over the rights or other access to the resource, enabling the Society to determine its future application, probable that income will be received and the amount of the income can be measured with sufficient reliability. All income is reported at gross. However, where funds are raised or collected for the Society by individuals not employed or contracted by the Society, the gross income of the Society are the proceeds remitted to the Society by the organisers of the event, after deducting their expenses. The following specific recognition criteria must also be met before income is recognised: (a) Donations and corporate sponsorship

Income from donations of individuals and corporate sponsorship are accounted when received, except for committed donations and corporate cash sponsorship that are recorded when the commitments are signed.

(b) Rental income Revenue arising from rental income from operating lease is recognised on a straight-line basis in accordance with substance of the relevant agreements.

(c) Interest and investment income Interest income on bank accounts, fixed deposits placed with banks and bonds are recognised on a time proportion basis using the effective interest method.

(d) Special Employment Credit

Cash grants received from the government in relation to the Special Employment Credit are recognised as income upon receipt.




3.12 Employee benefits

(a) Defined contribution plan

As required by law, the Society makes contributions to the state pension scheme, the Central Provident Fund (“CPF”). CPF contributions are recognised as compensation expenses in the same year as the employment that gives rise to the contribution.

(b) Employee leave entitlement

Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for leave as a result of services rendered by employees to the end of the reporting period.

3.13 Expenditure

Expenditure shall be recognised when and to the extent that a liability is incurred or increased without a commensurate increase in recognised assets or a reduction in liabilities, or an asset is reduced without a commensurate decrease in recognised liabilities or increase in another asset.

3.14 Operating leases Leases where the lessor effectively retains substantially all the risk and benefits of ownership of the lease term, are classified as operating leases. Operating lease payments are charged to the statement of financial activities on a straight-line basis over the year of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the year in which termination takes place.

3.15 Related party Related parties include all of the following: (a) A person or a close member of that person’s family is related to the Society if that person:

(i) has control or joint control over the Society; (ii) has significant influence over the Society; or (iii) is a governing board member, trustee or member of the key management personnel

of the Society or of a parent of the Society.

(b) An entity is related to the Society if any of the following conditions applies:

(i) The entity and the Society are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others);

(ii) The entity is an associate or joint venture of the Society (or an associate or joint venture of a member of a group of which the Society is a member) and vice versa;

(iii) The entity and the Society are joint ventures of the same third party; (iv) The entity is a joint venture of a third entity and the Society is an associate of the

third entity and vice versa; (v) The entity is controlled or jointly controlled by a person identified in (a); and (vi) A person identified in (a)(i) has significant influence over the entity or is a governing

board member, trustee or member of the key management personnel of the entity (or of a parent of the entity).




3.15 Related party (Continued)

(c) Close members of the family of a person are those family members who may be expected

to influence, or be influenced by that person in their dealings with the Society and include:

(i) That person’s children and spouse or domestic partner; (ii) Children of that person’s spouse or domestic partner; and (iii) Dependants of that person or that person’s spouse or domestic partner.

4 RELATED PARTY TRANSACTIONS (a) Significant related party transactions

2013 2012 $ $

Related party, SSA Consulting Group Pte Ltd Rental income 35,316 36,202 Utilities income 1,930 2,650

37,246 38,852

During the financial year, the Society had received income amounting to $37,246 (2012: $38,852) from its related party, SSA Consulting Group Pte Ltd, an entity that is controlled by a person who is a governing board member of the Society.



4 RELATED PARTY TRANSACTIONS (Continued)

(b) Remuneration of key personnel and board of trustee and Executive Committee members

2013 2012 $ $

(i) Meeting attendance allowance Osman Bin Abdur Rahim Bagarib 400 350 Mohamed Bin Alam Din 350 300 Suhaimi Bin Salleh 350 300 Abdul Karim Bin Sulaiman 250 200 Abdul Samat Bin Ali 250 200 Ismail Bin Abdullah 200 200 Muhd Harmizan Bin Abdul Hamid 200 200 Wan Hussin Bin Haji Zoohri 200 200 Mohammad Noor Bin Abdul Rahman 200 100 Syed Harun Bin Taha Alhabsyi 200 100 Mohd Haireez Bin Mohd Jufferie 150 150 Mohd Ma’mun H M F Suheimi 150 150 Supki Bin Haji Sidek 150 150 Nurhazimah Binti Abdul Halim 150 50 Halil Bin Haji Mansor 100 150 Maarof Bin Salleh 100 150 Abdur Rahim s/o Abdul Nasir 100 50 Mohamad Salihin Bin Mohamad Shah 100 50 Nur Aisyah Binte Arshad 50 100 Sirajuddin De Silva 50 50 Ibrahim Bin Hassan 50 - Ismail Bin Pantek - 150 Isa Bin Harun - 50

3,750 3,400

(ii) Key management personnel

Salaries and bonuses 108,500 107,674 Contribution to Central Provident Fund 8,776 7,236 Skills development levy 214 265

117,490 115,175

Key management personnel comprise the Executive Secretary and the Senior Finance Executive.

LEMBAGA BIASISWA KENANGAN MAULUD UEN No.: S66SS0027A (Registered under the Societies Act, Chapter 311 and Charities Act, Chapter 37, Singapore) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2013

5 DETAILED STATEMENT OF FINANCIAL ACTIVITIES

2013 2012

UNRESTRICTED FUNDS RESTRICTED FUNDS TOTAL TOTAL

Bursary LBKM Donors General Sinking Sponsorship LBKM - Scholarship Corpus Fund Fund Total Fund THK Fund Fund Fund Total $ $ $ $ $ $ $ $ $ $

INCOME

Income from generated funds

Voluntary income General donation 243,258 - 243,258 - - - - - 243,258 1,359,334 Mosque collection 107,058 - 107,058 - - - - - 107,058 59,187 Maulud appeal 48,970 - 48,970 - - - - - 48,970 41,820 Administrative grant 40,000 - 40,000 - - - - - 40,000 40,000 Sponsorship/Bursary - - - 1,466,852 - 40,303 20,000 1,527,155 1,527,155 - Government grants - - - - - - - - - 1,170 Others 2,310 - 2,310 - - - - - 2,310 8,022

441,596 - 441,596 1,466,852 - 40,303 20,000 1,527,155 1,968,751 1,509,533 Activities for generating funds Rental income 68,508 - 68,508 - - - - - 68,508 70,226 Qurban income 63,481 - 63,481 - - - - - 63,481 62,620 Utilities income 4,130 - 4,130 - - - - - 4,130 5,019 Sale of recipes book 30 - 30 - - - - - 30 14,683 Charity golf - - - - - - - - - 142,800 136,149 - 136,149 - - - - - 136,149 295,348

Investment income Rental income from investment property 60,000 - 60,000 - - - - - 60,000 60,000 Interest income 8,307 - 8,307 - - - - - 8,307 22,205 Dividend income 1,698 - 1,698 - - - - - 1,698 1,148 70,005 - 70,005 - - - - - 70,005 83,353

Other income Gain on disposal of investment securities 4 - 4 - - - - - 4 7,615 TOTAL INCOME 647,754 - 647,754 1,466,852 - 40,303 20,000 1,527,155 2,174,909 1,895,849

Less: EXPENDITURE

Cost of generating funds

Cost of generating voluntary income Cost of donation collection (58,571) - (58,571) - - - - - (58,571) (51,434) Postage, courier and stamps (2,940) - (2,940) - - - - - (2,940) (1,466)

(61,511) - (61,511) - - - - - (61,511) (52,900) Fundraising trading: Cost of goods sold Rental of premises (68,508) - (68,508) - - - - - (68,508) (70,226) Qurban expense (49,532) - (49,532) - - - - - (49,532) (53,091) Utilities (4,129) - (4,129) - - - - - (4,129) (5,019) Cost of charity golf - - - - - - - - - (51,674) Cost of recipes book - - - - - - - - - (145) Transportation - - - - - - - - - (71) (122,169) - (122,169) - - - - - (122,169) (180,226)

Investment management cost Depreciation of investment properties (8,008) - (8,008) - - - - - (8,008) (8,008) Property tax (6,000) - (6,000) - - - - - (6,000) (6,000) Reversal (Charge) for impairment losses – Investment securities (3,608) - (3,608) - - - - - (3,608) 2,129 Legal and professional fees (1,666) - (1,666) - - - - - (1,666) (1,964) Upkeep of premises - (365) (365) - - - - - (365) (1,200)

(19,282) (365) (19,647) - - - - - (19,647) (15,043)

LEMBAGA BIASISWA KENANGAN MAULUD UEN No.: S66SS0027A (Registered under the Societies Act, Chapter 311 and Charities Act, Chapter 37, Singapore) NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2013

5 DETAILED STATEMENT OF FINANCIAL ACTIVITIES (Continued)

2013 2012

UNRESTRICTED FUNDS RESTRICTED FUNDS TOTAL TOTAL

Bursary LBKM Donors General Sinking Sponsorship LBKM - Scholarship Corpus Fund Fund Total Fund THK Fund Fund Fund Total $ $ $ $ $ $ $ $ $ $

Less: EXPENDITURE (Continued)

Charitable activities

Salaries and bonuses (82,530) - (82,530) - - - - - (82,530) (85,741) Bursary presentation ceremony (15,591) - (15,591) - - - - - (15,591) (10,377) Youth development expense (13,072) - (13,072) - - - - - (13,072) (1,420) Research grant (10,000) - (10,000) - - - - - (10,000) (10,000) Contribution to Central Provident Fund (8,910) - (8,910) - - - - - (8,910) (8,302) Software, website development and maintenance (7,503) - (7,503) - - - - - (7,503) (7,025) Donation (1,000) - (1,000) - - - - - (1,000) (4,004) Skills development levy (167) - (167) - - - - - (167) (199) Scholarship awards - - - - - (60,000) - (60,000) (60,000) (85,000) Bursary awards - - - (1,554,100) (30,000) - - (1,584,100) (1,584,100) (1,516,250) ITE awards - - - (30,550) - - - (30,550) (30,550) - Special grants - - - (12,400) - - - (12,400) (12,400) - Financial assistance - - - - - - - - - (40,142) (138,773) - (138,773) (1,597,050) (30,000) (60,000) - (1,687,050) (1,825,823) (1,768,460)

Governance costs

Salaries and bonuses (79,730) - (79,730) - - - - - (79,730) (78,578) Rental of premises (16,236) - (16,236) - - - - - (16,236) (14,518) Contribution to Central Provident Fund (8,462) - (8,462) - - - - - (8,462) (7,566) Depreciation of plant and equipment (6,741) - (6,741) - - - - - (6,741) (2,931) Utilities (6,266) - (6,266) - - - - - (6,266) (600) Printing and stationery (6,199) - (6,199) - - - - - (6,199) (4,277) Audit fee (5,000) - (5,000) - - - - - (5,000) (5,500) Annual general meeting expense (4,572) - (4,572) - - - - - (4,572) (3,980) Meeting allowances (3,750) - (3,750) - - - - - (3,750) (2,950) Insurance (2,667) - (2,667) - - - - - (2,667) (2,452) Telecommunication expense (2,590) - (2,590) - - - - - (2,590) (2,242) Repair and maintenance (2,449) - (2,449) - - - - - (2,449) (8,169) Advertising expense (1,469) - (1,469) - - - - - (1,469) (5,349) General expenses (1,024) - (1,024) - - - - - (1,024) (2,027) Staff welfare (1,003) - (1,003) - - - - - (1,003) (547) Transportation expense (782) - (782) - - - - (782) (600) Postage, courier and stamps (735) - (735) - - - - - (735) (367) Staff refreshment (665) - (665) - - - - - (665) (770) Bank charges (444) - (444) - - - - - (444) (311) Membership and subscription fees (216) - (216) - - - - - (216) (251) Skills development levy (175) - (175) - - - - - (175) (162) Seminar and training (25) - (25) - - - - - (25) (7,635) Newspaper and periodical - - - - - - - - - (167)

(151,200) - (151,200) - - - - - (151,200) (151,949) TOTAL EXPENDITURE (492,935) (365) (493,300) (1,597,050) (30,000) (60,000) - (1,687,050) (2,180,350) (2,168,578)

NET INCOME (EXPENDITURE) 154,819 (365) 154,454 (130,198) (30,000) (19,697) 20,000 (159,895) (5,441) (272,729)

Gross transfers between funds

Allocation of fund balance 2,000 - 2,000 (40,142) 38,142 - - (2,000) - - Allocation of annual maintenance for investment property (10,000) 10,000 - - - - - - - -

NET MOVEMENT IN FUNDS 146,819 9,635 156,454 (170,340) 8,142 (19,697) 20,000 (161,895) (5,441) (272,729)

Reconciliation of funds Total funds brought forward 1,835,783 78,800 1,914,583 294,072 75,858 153,082 20,000 543,012 2,457,595 2,730,324 TOTAL FUNDS CARRIED FORWARD 1,982,602 88,435 2,071,037 123,732 84,000 133,385 40,000 381,117 2,452,154 2,457,595



6 CASH AND BANK BALANCES

2013 2012 $ $

Fixed deposits 1,505,323 1,384,577 Cash at banks 119,729 245,213 Cash in hand 400 400

1,625,452 1,630,190

Cash at banks are held in non-interest bearing accounts. The fixed deposits earn interest ranging from 0.15% to 1.10% (2012: 0.15% to 1.18%) per annum and have a maturity period of no more than 12 months. For the purpose of the statement of cash flows, cash and bank balances are comprised of the balances as shown above.

7 RECEIVABLES 2013 2012 $ $

Bursary sponsorship receivable 340,000 340,191 Deposits 20,833 24,879 Prepayments 6,400 6,000

367,233 371,070

8 PLANT AND EQUIPMENT Office Furniture equipment & fittings Computers Renovation Total $ $ $ $ $

Cost Balance as at 31.12.2011 2,646 5,500 8,630 - 16,776 Additions 4,210 - 1,168 - 5,378

Balance as at 31.12.2012 6,856 5,500 9,798 - 22,154 Additions 1,661 - - 17,410 19,071

Balance as at 31.12.2013 8,517 5,500 9,798 17,410 41,225

Accumulated depreciation Balance as at 31.12.2011 2,472 4,400 5,214 - 12,086 Depreciation charge for the financial year

886

1,100

945

-

2,931

Balance as at 31.12.2012 3,358 5,500 6,159 - 15,017 Depreciation charge for the financial year

1,219

-

2,040

3,482

6,741

Balance as at 31.12.2013 4,577 5,500 8,199 3,482 21,758

Net carrying amount Balance as at 31.12.2012 3,498 - 3,639 - 7,137

Balance as at 31.12.2013 3,940 - 1,599 13,928 19,467



9 INVESTMENT SECURITIES

2013 2012 $ $

Cost Balance at beginning of the financial year 175,000 167,533 Additions 1,698 176,095 Disposals (1,127) (168,628)

Balance at end of the financial year 175,571 175,000

Accumulated impairment losses Balance at beginning of financial year 146 2,275 (Reversal) Charge for impairment loss for the year 3,608 (2,129)

Balance at end of financial year 3,754 146

Net carrying amount Balance at end of financial year 171,817 174,854

Total investment securities 171,817 174,854 Add: Investment property (Note 10) 312,312 320,320

Total investment assets 484,129 495,174

Quoted bonds and unit trust Quoted bonds and unit trust offer the Society an opportunity for return through dividend income and fair value gains. They have no fixed maturity and are traded on the Singapore Stock Exchange. The fair value of these bonds and unit trust are based on the bid price on the last market day of the financial year and amounts to $175,586 (2012: $176,251).

10 INVESTMENT PROPERTY Total $

Cost Balance as at 31.12.2011 400,400 Additions -

Balance as at 31.12.2012 400,400 Additions -

Balance as at 31.12.2013 400,400

Accumulated depreciation Balance as at 31.12.2011 72,072 Depreciation charge for the financial year 8,008

Balance as at 31.12.2012 80,080 Depreciation charge for the financial year 8,008

Balance as at 31.12.2013 88,088

Net carrying amount Balance as at 31.12.2012 320,320

Balance as at 31.12.2013 312,312

Investment property is stated at cost less accumulated depreciation and impairment losses. The building cost is depreciated over a period of 50 years on a straight-line basis.



10 INVESTMENT PROPERTY (Continued)

The Executive Council’s estimate of the open market value of the property based on its existing use as at 31 December 2013 is $2,500,000 (2012: $1,450,000). The value is an estimate of the amount for which the asset could be exchanged between a knowledgeable willing buyer and knowledgeable willing seller in an arm’s length transaction at the valuation date. As a result of this valuation, no provision for impairment was recognised in the financial statements for the financial year ended 31 December 2013 as the recoverable amount is greater than the carrying value of the investment property. The investment property rental income earned for the financial year ended 31 December 2013 under operating lease amounted to $60,000 (2012: $60,000). Direct operating expenses (including property maintenance and property tax) arising on the rental earning of investment property amounted to $6,365 (2012: $15,877). Net carrying amount Name of Property Description Tenure of land - Building

2013 2012 $ $

No. 33 Bussorah Street, Singapore 199451

2 storey shophouse on a piece of land at Lot 473X Town Subdivision 14

99 years of lease from 15 October 2003 (89 years remaining)

312,312 320,320

11 PAYABLES 2013 2012 $ $

Donation received 24,550 24,550 Accrued operating expenses 12,977 21,426 Sponsorship payable 6,600 - 44,127 45,976

12 FUND ACCOUNTS BALANCES (a) Unrestricted Funds

Sinking fund With effect from the year ended 31 December 2006, a sinking fund was set up by the Society to provide for major capital expenditure in respect of the investment property.

(b) Restricted Funds

(i) Bursary sponsorship fund

The bursary sponsorship fund, formerly known as Donors’ Fund (Amanah), is Amanah (Trust) fund entrusted to the Society for distribution on behalf of the donors as per their expressed wishes and when no wishes were expressed, the fund will be used as bursaries for needy students.



12 FUND ACCOUNTS BALANCES (Continued)

(b) Restricted Funds (Continued)

(ii) LBKM – Thye Hwa Kuan sponsorship fund

The LBKM – Thye Hwa Kuan sponsorship fund was created for bursaries to needy students in specified courses.

(iii) LBKM scholarship fund

The LBKM scholarship fund was created for students who have gained entry into the world's top ten universities such as Harvard, Cambridge and Oxford. The scholarship is also awarded to meritorious students pursuing master degree in public administration/public policy with the National University of Singapore’s Lee Kuan Yew School of Public Policy.

(iv) Donors’ corpus fund

The donors’ corpus fund was entrusted to the Society for the purpose of distributing the income generated from the investment of the funds as bursaries for needy students.

Unless specifically indicated, the fund balances are not represented by any specific accounts, but are represented by all assets and liabilities of the Company.

13 GRANT EXPENDITURE 2013 2012 $ $

Research grant Bibliography on Singapore Malays 10,000 - Kampong Radin Mas Book Project - 10,000

14 INCOME TAX The Society is a registered Charity under the Charities Act (Chapter 37) and its income is exempted from income tax.

15 TAX-EXEMPT RECEIPTS During the year, the Society issued tax-exempt receipts for donations collected amounting to $1,292,180 (2012: $1,051,692).

16 OPERATING LEASE COMMITMENTS As lessee

The Society has entered into non-cancellable operating lease commitments as a lessee on its office premises.



16 OPERATING LEASE COMMITMENTS (Continued)

Rental expenses for office premise for the Society was $84,744 (2012: $84,744) for the financial year ended 31 December 2013.

Future minimum lease payments payable under non-cancellable operating leases as of 31 December are as follows: 2013 2012 $ $

Within 1 year - 70,620

The Society has also entered into non-cancellable operating lease commitments as a lessor on its investment property and its office premises. The leases have an average tenure of 2 years with varying terms and renewal rights. The receivable non-cancellable operating leases as of 31 December are as follows: 2013 2012 $ $

Within 1 year 60,000 57,090 Within 2 to 5 years 5,000 -

65,000 57,090

The lease agreements do not contain any contingent rent payment.

17 MANAGEMENT RESERVES The Society regards its unrestricted general fund as its reserves. The reserve that the Society sets aside provides financial stability and the means for the development of the Society’s principal activities. The Society intends to use the reserves for: (a) Bursaries for needy students (b) Financial and social assistance to needy students (c) Scholarship to meritorious students The Executive Council members regularly review the amount of reserves that are required to ensure that they are adequate to fulfill the Society’s continuing obligations on quarterly basis. The statement of accounts will be presented at each quarterly meeting for the Board to review and monitor the reserves. Net cash reserves of the Society are as follows: 2013 2012 $ $

Cash and bank balances (Note 6) 1,625,452 1,630,190 Receivables (excluding prepayments) (Note 7) 360,833 365,070 Less: Payables (Note 11) (44,127) (45,976)

1,942,158 1,949,284



17 MANAGEMENT RESERVES (Continued)

The Society’s overall approach to management of reserves remains unchanged from the previous financial year. The Society is not subject to any externally imposed capital requirements.

Documents

LEMBAGA BIASISWA KENANGAN MAULUD (PROPHET MUHAMMAD…lbkm.org.sg/wp-content/uploads/2013/01/audited-financial-report... · LEMBAGA BIASISWA KENANGAN MAULUD (PROPHET MUHAMMAD’S BIRTHDAY