Do you know your neighbour? - btptc.org.sg · PDF fileDo you know your neighbour? ... Dr Ng Eng Hen Minister for ... Jennifer Wong Kwai Fong Abdul Rahman Mohamed AmarSingh s/o Soun

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

[email protected]

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



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



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



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


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.



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.



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



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



21



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



(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.



24



(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



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



(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



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



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



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



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



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



33



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



(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



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EMAIL: [email protected]

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