Facing New Challenges

Transcription

1 Facing New Challenges Bishan - Toa Payoh Town Council Annual Report

2 About The Theme Bees epitomise the value of hardwork and a cohesive communal spirit. They work in harmony to provide for and protect the community. The honeycomb inside the hive is abuzz with activity and is amazingly clean and free of bacteria. It is protected by Propolis, an antimicrobial agent that fortifies and sterilises the hive. Bees also produce other health-enhancing products like Royal Jelly and Honey. Meeting Expectations We see many similarities between the bees community and Bishan-Toa Payoh Town. The residents, community leaders and the Town Council work closely to create a safe and pleasant living environment. We are proud of our estate, our home, and we take ownership to ensure it is clean and well maintained. Our healthy financial results are as sweet as the honey produced in the honeycomb. This is the result of a well-managed organisation led by the Town Council s Chairman and its Council s. Together, with the spirit of co-operation and community involvement, Bishan-Toa Payoh will continue to progress and develop to become the Town for the future. 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. Contents Fifth Term of Offi ce 2 Corporate Information 6 Chairman s Review 7 Financial Statements 12 II Annual Report 2004/2005 Annual Report 2004/2005 1

3 Bishan East Bishan-Toa Payoh North Advisors Mr Wong Kan Seng Deputy Prime Minister and Minister for Home Affairs MP for Bishan-Toa Payoh GRC Advisor to Advisor to Bishan East Grassroots Organisations Dr Ng Eng Hen Minister for Manpower and Second Minister for Defence MP for Bishan-Toa Payoh GRC Elected of Advisor to Toa Payoh East Grassroots Organisations Toa Payoh East Mr Zainudin Nordin MP for Bishan-Toa Payoh GRC Chairman of Advisor to Bishan-Toa Payoh North Grassroots Organisations Mr Leong Horn Kee MP for Bishan-Toa Payoh GRC Vice-Chairman of Advisor to Thomson Grassroots Organisations Mr Davinder Singh MP for Bishan-Toa Payoh GRC Vice-Chairman of Advisor to Toa Payoh Central Grassroots Organisations Toa Payoh Central Fifth Term of Office Thomson Establishment Committee Advisor: Mr Zainudin Nordin Mr Foo See Lian Chairman Mr Cheng Wai Keung Vice-Chairman Mr Er Kwong Wah Mr Teh Hee Seang Mr Yee Fook Hong Mr Ling Ming Chuan CEO / Secretary 2 Annual Report 2004/2005 Annual Report 2004/2005 3

4 Finance & Administration Committee Advisor: Dr Ng Eng Hen Environment & Development Committee Advisor: Mr Leong Horn Kee Co-opted s Co-opted s Mr Abdul Rahman Mohamed Mr Chong Ngee Mr Yee Fook Hong Chairman Mr Poh Puay Eng Vice-Chairman Mr Roy Cheng Siew Cherng Mr Chia Pen Chuen Mr Amar Singh s/o Soun Singh Mr Cheng Wai Keung Chairman Dr Foo Yung Kuan Vice-Chairman Mr Azman Bin Yahaya Mr David Choo Yong Kee Mr Lau Juay Hor Mr Lau Pub Taai Mr Mazlan Bin Jalil Ms Caroline Lee Sook Chin Ms Paridah Bte Yusop Mr Lai Kah Seng Mr Larry Lau Hooi See Mr Lim Joo Lye Mr Tan Kee Khoon Mr Leong Fook Wing Mr Benny Soh Chee Ling Mr Lau Cheng Nam Mr Leong Chong Meng Mr Jason Leong Wai Hoong Mr Lawrence Lim Tau Jeow Mr Sabaratnam Paul Mr Tey Chui Giong Mdm Helen Wee Lian Ngoh Mr Tin Beng Chan Mr Sng Jin Poh Mr Yeo Hiang Meng Mr Henry Ng Boon Hwee Ms Frances Tang Po Tim Mr Yeo Suay Tee Tenders & Contracts Committee Advisor: Mr Davinder Singh Community Relations Committee Advisor: Mr Zainudin Nordin Co-opted s Co-opted s Mdm Doris Chan Mr Ahmad Alif Lim Mr Sitoh Yih Pin 2nd Advisor Mr Teh Hee Seang Chairman Mr Gregory Tang Wee Thiang Vice-Chairman Ms Chua Geok Lan Mr Chng Chee Beow Mr Er Kwong Wah Chairman Mr Cheong Chee Onn Vice-Chairman Mr Roger Chia Ah Sah Mr Khoo Kay Chai Mr Winston Chua Seng Chye Ms Lee Ker Hwa Mr David Mok Thye Hian Mr Poo Chee Kuen Mr Poon Wai Mun Mr Ling Tuck Mun Mr Mohd Yusof Bin Abdullah Mr Tan Kia Seng Ms Tay Mok Lan Mr RT Xavier Samy Mr Wong Thian Hock Mr Anthony Kiong Beng Hoe Mr Texas Loh Kia How Mr Michael Low Hock Kim Mr Ng Wee Loon Ms d/o Sakadevan Naidu Mr Willie Wun Chung Toh Mr Roger Wong Tian Hock Ms Patricia Toh Bee Lan Mr Wee Jit Sun Ms Catherine Lee Mr Ramadoss Ravindran Ms Sophia Su Huah Tee Mr Raymond Teoh Ms Violet Wong Choh Sang 4 Annual Report 2004/2005 Annual Report 2004/2005 5

5 Corporate Information Chairman s Review HDB Blocks Managed by Town Council Number of Units in Bishan-Toa Payoh Town 51,544* Number of Blocks in Bishan-Toa Payoh Town 518* Number of Residents in Bishan-Toa Payoh Town 206,000** (about 4 persons per household) * As at September 2005 ** Figures are approximated Logo Our logo depicts both the distinctive architecture of Bishan s Housing Development Board (HDB) flats and the Viewing Tower of Toa Payoh Garden. The blue and green colours represent a fresh, clean and healthy environment within the community. Contact / Operating Hours Toa Payoh Office Block 125A # Lorong 2 Toa Payoh Singapore Tel: Fax: Bishan Office Block 197 # Bishan Street 13 Singapore Tel: Fax: Website Overview & Performance Last year, we continue with our investment in projects and cyclical works to improve and upgrade our estate. In total, $9.3 million were spent on these projects. From this amount, $1.6 million went to the provision of 42 town improvement projects like elderly fitness corners, children s playgrounds, resident & study corners, fitness and sports courts, pavilions, numerous park benches & shelters, barbeque pits, a jogging track and covered walkways. Our cyclical works expenditure came to $7.7 million. This was for repairs and redecoration, replacement of lift parts, FRP water-tanks, booster pumps, and re-wiring to 218 blocks to keep them in good living and working condition. Of the $9.3 million that the Town Council had spent, $763,000 came from the active support of the GRC s Citizens Consultative Committees (CCCs), that claimed through the CIPC grant for the improvement projects. The remainder came from our Town Improvement Project Fund (TIPF) and Sinking Fund, where we accumulated our surplus from the past years. The Town Council would continue to manage the resources prudently to ensure that we have the funds for future projects to benefit the residents. Judiciously, Town Council will also plough back its surplus into the estate to increase the value of residents homes. Our financial performance continues to improve year-on-year. We ended the financial year 04/05 with a net operating surplus of $4.8 million after taking into account government grants. Our Sinking Fund reserve is $104.4 million. MND s new regulation has allowed the Town Councils to reduce its contribution to sinking fund by 5% for each type of property. This has resulted in an increase in operating surplus that could be channeled to town improvement projects. prm@btptc.org.sg Operating Hours 8.00am pm (Monday to Friday) 8.00am pm (Saturday) 6 Annual Report 2004/2005 Annual Report 2004/2005 7

6 Improvements to the Estate New Initiatives I am pleased to report the developments that have taken place throughout the GRC. The Town Council s Town Improvement projects have added more fun and charm into our estates. Presently, residents and their families have more facilities to enjoy. Bishan-Toa Payoh Town continues to sizzle and has attracted more people to visit, and set up their homes here. The government s upgrading programmes have physically transformed the town, and this has resulted in a better and more conducive living environment for the residents. Most of the residential blocks in Toa Payoh estate have completed the Main Upgrading Programme (MUP), with 20 blocks in Toa Payoh North, Toa Payoh Central and Toa Payoh East being the latest additions. Another 11 blocks in Toa Payoh East are undergoing the MUP. Over in Bishan East and Thomson, the Interim Upgrading Programme (IUP) is sprucing up 32 blocks with many more in the pipeline. The popular Lift Upgrading Programme (LUP) is underway at 21 blocks that are spread across Bishan East, Thomson and Toa Payoh East. As for non-residential blocks, two market/food centres at Toa Payoh Central and Toa Payoh East have been refurbished under the Hawker Upgrading Programme (HUP). They have attracted more people since the reopening, and their spanking clean conditions reflect their popularity with residents near and far. Besides the various hardware implementations, Bishan-Toa Payoh Town Council had introduced value-added services in our efforts to differentiate our Town and make it stand out from the rest. Over the last 12 months, we introduced several new initiatives to engage our residents and service partners. 1. Project VisionScroll was launched in November 04 and aimed at primary school students. We used this platform to encourage the children to draw their dream estate and the Town Council would consider incorporating some of their ideas into its development plans. 2. The Basic Maintenance Workshop made its appearance at the Residents Committees Block Parties. Town Council staff would demonstrate and explain the simple repairs to common home electrical and sanitary problems. We would be taking this one step further to make a video of the workshop for our web broadcast to enable the residents to get online help to solve their minor maintenance problems. 3. In March 05, the use of SMS became our latest mode of communication to residents. The Town Council continues to embrace technology to improve its services, and the implementation of SMS- ALERT service is a result of it. Residents could register for this service free and receive the latest estate information like fogging exercise, news of lift breakdown or interruption to utilities supply from the Town Council via SMS. 4. A reward scheme has also been introduced in the form of the S&C Delight Draw. This year-long event was to reward the residents that pay their monthly S&C Charges promptly and to encourage others to be more consistent in their payment. The final draw was conducted on February 2005 with 100 residents winning attractive prizes. 5. We have initiated a reward scheme for our conservancy workers. The Town Council would recognise their outstanding performance and give them monetary rewards based on the recommendation of the resident / grassroot leader and the property manager. One such recipient was Conservancy Foreman Mr Alamine Miah who returned a wallet to a grateful Shunfu resident, who wrote a commendation letter to the Town Council on Alamine s deed. 6. I started a bike trekking activity in May 04, where my Town Council staff and I cycle to various parts of the estate. Such visits help me to better understand and see the physical aspects of the place, and to meet and gather feedback from residents about the improvement projects and more. 8 Annual Report 2004/2005 Annual Report 2004/2005 9

7 Facing New Challenges, Meeting Your Expectations Looking ahead, we have to continuously adjust and re-invent ourselves to manage change, and position ourselves to be relevant in today s global village. We need to constantly find new ways and methods that suit the present context. The Town Council has to identify new challenges and turn them into opportunities to provide value-added services to its residents. As our country develops further and transforms itself into the future global city, so will our beloved town. It is only natural that residents aspirations will grow in tandem with the rise of the country s affluence, they would expect better and faster services. The Town Council has to continuously engage its customers to understand their needs, and the organisation has to create opportunities for a meaningful exchange of ideas. Thus, we would need to have a fresh and creative approach in communicating to residents. As stakeholders with vested interest in the estate, we are all partners with the common objective of transforming Bishan-Toa Payoh Town into the choice town in the future global city. Zainudin Nordin Chairman, 10 Annual Report 2004/2005 Annual Report 2004/

8 Auditors Report to Financial Statements We have audited the accompanying financial statements of (the Town Council ) as set out on pages 14 to 33 for the financial year ended 31 March These financial statements are the responsibility of the Town Council. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements for the year ended 31 March 2004 were audited by another auditor whose report dated 29 September 2004 expressed an unqualified opinion on those financial statements. We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the directors, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, (a) the financial statements are properly drawn up in accordance with the provisions of the Town Councils Act, Cap. 329A (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 2005 and the results, changes in funds and cash flows of the Town Council for the financial 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 financial year have not been made in accordance with the provisions of the Act. BISHAN-TOA PAYOH TOWN COUNCIL Established under the Town Councils Act, Cap. 329A Ernst & Young Certified Public Accountants Audited Financial Statements for the Financial Year Ended 31 March 2005 Singapore 28 September 2005 Contents Auditors Report 13 Balance Sheet 14 Statement of Income and Expenditure 15 Statement of Changes in Funds 16 Cash Flow Statement Annual Report 2004/

9 Balance Sheet As at 31 March 2005 Statement of Income and Expenditure Note $ $ Non-current assets Plant and equipment 3 106, ,677 Funds with fund managers 4 77,800,796 70,535,732 Investments 5 4,259,835 77,906,826 75,047,244 Current assets Trade debtors 6 1,389,024 1,104,065 Other debtors 148, ,891 Interest receivable 196,458 78,549 Grants receivable 82,407 2,124,379 Fixed deposits with financial institutions 7 46,506,035 32,464,704 Bank and cash balances 7 3,862,492 6,195,915 52,185,120 42,346,503 Current liabilities Grants received in advance 2,196 4,796 Conservancy and service fees received in advance 362, ,980 Creditors and accrued expenses 8 4,364,145 4,320,184 Provision for taxation 627, ,400 5,356,941 5,514,360 Net current assets 46,828,179 36,832, ,735, ,879,387 Town Council Funds Residential property funds Accumulated surplus 9 2,234,727 2,213,601 Sinking funds 10 87,189,453 79,333,675 Town improvement and project funds 11 13,144,738 10,056, ,568,918 91,603,628 Commercial property funds Accumulated surplus 9 1,172, ,744 Sinking funds 10 17,241,208 16,063,486 Town improvement and project funds 11 3,125,206 2,521,539 21,538,496 19,566,769 Carpark funds Accumulated surplus 9 572, ,856 Interim upgrading programme fund 12 23, ,929 Estate upgrading programme fund 13 31,454 17, ,735, ,879,387 Note $ $ Operating income Conservancy and service fees 9 29,944,785 29,164,383 Less : Operating transfer to sinking funds 9, 10 (10,007,833) (11,202,382) 19,936,952 17,962,001 Agency fees 1,566,573 1,578,854 Other income 1,311,506 1,254,336 22,815,031 20,795,191 Less : Operating expenditure Cleaning works 4,755,652 4,467,641 Lift maintenance 2,951,342 2,708,159 Other works and maintenance 3,716,865 3,087,788 Water and electricity 5,228,716 4,951,296 General and administrative expenditure 16 5,869,354 5,306,743 (22,521,929) (20,521,627) Operating surplus 293, ,564 Add : Non-operating income Interest income 96,656 28,545 Gain on disposal of plant and equipment 1, Provision for diminution in value of investment written back 5 256,823 97, ,446 Surplus before taxation and government grants 390, ,010 Taxation 15 (31,424) (68,030) Surplus before government grants 359, ,980 Government grants 9, 14 7,182,692 7,586,992 Less : Transfer to - sinking funds (2,001,927) (2,148,227) - town improvement and project funds (762,882) (1,470,875) 4,417,883 3,967,890 Surplus for the financial year 4,777,417 4,458,870 Add : Accumulated surplus at 1 April 3,702,201 2,743,331 8,479,618 7,202,201 Less : Appropriation to town improvement and project fund 9 (4,500,000) (3,500,000) Accumulated surplus at 31 March 9 3,979,618 3,702,201 Mr Zainudin Nordin Chairman Mr Ling Ming Chuan Secretary Mr Zainudin Nordin Chairman Mr Ling Ming Chuan Secretary 28 September September 2005 The accounting policies and explanatory notes on pages 18 to 33 form an integral part of the financial statements. The accounting policies and explanatory notes on pages 18 to 33 form an integral part of the financial statements. 14 Annual Report 2004/2005 Annual Report 2004/

10 Statement of Changes in Funds Cash flow statement Residential Commercial Car park Interim Estate property fund property funds funds upgrading project upgrading project Total $ $ $ $ $ $ Balance at 31 March ,951,506 17,594, , , ,183,995 Surplus/(deficit) for the financial year * 9,652,122 1,972, ,677 (71,130) 17,205 11,695,392 Balance at 31 March ,603,628 19,566, , ,929 17, ,879,387 Surplus/(deficit) for the financial year * 10,965,290 1,971,727 65,953 (161,601) 14,249 12,855,618 Balance at 31 March ,568,918 21,538, ,809 23,328 31, ,735,005 Notes $ $ * Accumulated surplus 9 4,777,417 4,458,870 Sinking funds 10 9,033,500 7,230,963 Town improvement and project funds 11 (807,947) 59,484 Interim upgrading programme fund 12 (161,601) (71,130) Estate upgrading programme fund 13 14,249 17,205 12,855,618 11,695,392 Note $ $ Cash flow from operating activities Surplus before taxation and government grants 9 390, ,010 Adjustments for: Depreciation of plant and equipment 3 186, ,985 Provision for diminution in value of investments written back 5 (256,823) Interest income (96,656) (28,545) Gain on disposals of plant and equipment (1,200) (78) Operating surplus before working capital changes 479, ,549 Decrease/(increase) in debtors 352,957 (856,305) Increase in creditors 45, ,312 Cash provided by operations 877,522 81,556 Income tax paid (651,489) (571,478) Increase in sinking funds 2,285,795 3,366,329 Decrease in town improvement and project funds (1,525,937) (1,404,899) Payment of expenses for interim upgrading project 12 (1,641,417) (74,182) Payment of expenses for Estate upgrading project 13 (481,852) (807,397) Net cash flow (used in)/provided by operating activities (1,137,378) 589,929 Cash flows from investing activities Proceeds from disposal of plant and equipment 1, Purchase of plant and equipment 3 (40,466) (52,715) Investments 4,259,835 (1,368,000) Funds with fund managers 4 (5,586,371) (8,000,000) Investment and interest income received 5,097,128 2,316,885 Net cash flow provided by/(used in) investing activities 3,731,326 (7,103,752) Cash flows from financing activities Government funds received from interim upgrading project 12 1,479,816 3,052 Government funds received from estate upgrading project , ,602 Government grants received 14 7,138,043 6,212,822 Net cash flow provided by financing activities 9,113,960 7,040,476 Net increase in cash and cash equivalents 11,707, ,653 Cash and cash equivalents at the beginning of financial year 38,660,619 38,133,966 Cash and cash equivalents at the end of financial year 7 50,368,527 38,660,619 The accounting policies and explanatory notes on pages 18 to 33 form an integral part of the financial statements. The accounting policies and explanatory notes on pages 18 to 33 form an integral part of the financial statements. 16 Annual Report 2004/2005 Annual Report 2004/

11 1. General As a result of the redrawing of the electoral boundaries, the Toa Payoh Town Council ( Town Council ) which was formed on 2 September 1989 was dissolved under the Town Councils (Dissolution of Various Town Council) Order 1997 on 12 January With effect from 13 January 1997, the assets and liabilities of the dissolved Town Council were transferred to the. This new Town Council also includes a proportion of the assets and liabilities over from the dissolved Bishan Serangoon Town Council. was thus 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. 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 Councils 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 amount to be paid into the Sinking Funds are as follows: (i) 1-room to 3-room 30% of conservancy and service fees and grants-in-aid The Town Council commenced its functions on 13 January 1997 and its head office is situated at: (ii) 4-room 35% of conservancy and service fees and grants-in-aid Blk 125A Lorong 2 Toa Payoh # Singapore (iii) 5-room, Executive, HUDC and Multi-generation (iv) Shop with living accommodation 35% of conservancy and service fees 35% of conservancy and service fees The Town Council had 73 (2004 : 75) employees as at 31 March (v) Commercial property 35% of conservancy and service fees 2. Summary of significant accounting policies (a) Basis of preparation The financial statements have been prepared in accordance with Singapore Financial Reporting Standards ( FRS ). The financial statements have been prepared on a historical cost basis. These minimum contributions are treated as operating transfers and netted off against 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 roofing 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. The accounting policies have been consistently applied by the Town Council and are consistent with those used in the previous financial year. The financial statements are presented in Singapore Dollars (SGD or $). 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. (b) 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 were as follows: Residential property Commercial property The funds are set up by transfer from the Accumulated Surplus based on specific projects to be carried out. In addition, the Town Council receives payment from the Citizens Consultative Committees for approved projects. Interim Upgrading Programme Fund The Interim Upgrading Programme ( IUP ) is estate improvement programmes 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. Carparks are managed by the Town Council for the HDB on an agency basis. These funds together with the Sinking Funds and Town Improvement and Project Funds 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 including the Interim Upgrading Programme Fund and Estate Upgrading Programme Fund are pooled in the Balance Sheet. 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 ) is enhancement work carried out on the public land and the facilities within the estates. This programme 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. 18 Annual Report 2004/2005 Annual Report 2004/

12 (c) Allocation of general overheads Expenditure not relating specifically to any property type managed, for example, administrative overheads, tree planting, pruning etc is allocated to the various property types using equivalent dwelling units as follows: Property Type Equivalent Dwelling Units(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. (d) Government grants The Town Council receives two types of grants from the Government, namely, Conservancy and Service Grant and payment from Citizens Consultative Committee. Government grants are accounted for on accrual basis. Grants to meet the current financial year s operating expenditure are taken to the Income and Expenditure Statement. (e) Plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and any impairment in value. All items of plant and equipment are initially recorded at cost. The initial cost of plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes and any directly attributable costs of bringing the asset to its working condition and location for its intended use, any trade discounts and rebates are deducted in arriving at the purchase price. Expenditure incurred after the plant and equipment have been put into operation, such as repairs and maintenance and overhaul costs, is normally charged to the profit and loss account in the period in which the costs are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of an item of plant and equipment beyond its originally assessed standard of performance, the expenditure is capitalised as an additional cost of plant and equipment. Depreciation is computed on a straight-line basis over the estimated useful life of the asset as follows: Furniture, fixtures and fittings - 5 years Office equipment - 3 years Data processing equipment/software - 3 years Motor vehicles - 5 years The useful life and depreciation method are reviewed annually to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items of plant and equipment. (f) Funds with Fund Managers Funds with Fund Managers represent the cost of the portfolio of assets placed with Fund Managers at the beginning of each management term less the management fees payable during the management term. Funds with Fund Managers comprise mainly of equities, bonds and cash and fixed deposits. Equities and bonds are stated at lower of cost and market value on an aggregate portfolio basis. (g) (h) (i) (j) (k) Investments Investments that are intended to be held for the long term are stated at cost and provision is made in recognition of any impairment in value other than temporary in the value of the investments, determined on an individual investment basis. Profits or losses on disposal of investments are taken to the Income and Expenditure Statement. Trade and other receivables Provisions is made in the financial statements for debts where collection is doubtful. Debts not recovered are written off as bad debts in accordance with the Town Council Financial Rules. Provisions Provisions are recognised when the Town Council has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. 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. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Tax rates enacted or substantively enacted by the balance sheet date are used to determine deferred income tax. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Recognition of income 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 fixed 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. On expiry of the management term, any surplus over and above the performance benchmark will be shared between the Town Council and certain Fund Managers on agreed basis. 20 Annual Report 2004/2005 Annual Report 2004/

13 (l) Impairment of assets Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised in the profit and loss account. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. The reversal is recorded in income. However, the increased carrying amount of an asset due to a reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for that asset in prior years. (m) Employee benefits Employee leave entitlement Employee entitlements to annual leave and long service leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave and long service leave as a result of services rendered by employees up to the balance sheet date. Pensions and other post employment benefits The Town Council makes contributions to the Central Provident Fund scheme in Singapore, a defined contribution pension scheme. These contributions are recognised as an expense in the period in which the related service is performed. 3. Plant and equipment Furniture, Data processing fixtures Office equipment/ Motor and fittings equipment software vehicles Total $ $ $ $ $ Cost At 1 April ,080, ,487 2,254,401 61,138 3,656,120 Additions 8,289 2,180 29,997 40,466 Disposals (38,242) (38,242) At 31 March ,088, ,667 2,246,156 61,138 3,658,344 Accumulated depreciation At 1 April ,027, ,944 2,063,654 61,137 3,404,443 Additions 22,297 5, , ,113 Disposals (38,242) (38,242) (n) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and at bank, demand deposits and short-term, highly liquid investments readily convertible to known amounts of cash and subject to an insignificant risk of change in value. Short-term deposits, which are held to maturity, are carried at amortised cost. For the purposes of the cash flow statement, cash and cash equivalents are shown net of outstanding bank overdrafts which are repayable on demand and which form an integral part of the Town Council cash management. At 31 March ,050, ,479 2,183,693 61,137 3,552,314 Charge for ,563 20, , ,985 Net book value At 31 March ,378 5,188 62, ,030 At 31 March ,386 8, , , Annual Report 2004/2005 Annual Report 2004/

14 4. Funds with fund managers This represents funds and related profits placed with professional fund managers. The Town Council appoints several fund managers to manage its funds, based on terms and conditions stipulated in the respective Investment Agreement signed with the fund managers, for a fixed period of time. The terms and conditions may change upon the re-appointment of the fund managers. (i) As at 31 March 2005, the Town Council has arrangements with certain fund managers to guarantee in aggregate the principal amount of $58,000,000 (2004 : $23,500,000) at the end of the management term. 5. Investments Cost Market value Cost Market value $ $ $ $ Unifund 611, ,835 CapitaMall Trust 1,067,000 1,628,000 Ascendas REIT 1,581,000 2,190,750 SingPost Bonds 1,000, ,000 (ii) The fund managers will be entitled to charge basis administrative fees. Additionally, the fund managers will be entitled to receive performance fees for the excess, before income tax, of the market value of the fund over the specified performance benchmark at the end of the management term or termination date if earlier, or at the end of each year respectively. The movements for provision for diminution in value of investments is as follows : 4,259,835 5,303,585 (iii) The funds are invested in accordance with the Town Councils Act and the Trustees Act $ $ Balance at beginning of financial year 70,535,732 60,582,187 Additions during the financial year 5,586,371 8,000,000 Accrued income for the financial year 1,752,939 2,056,981 Administrative fee accrued (74,246) (103,436) Balance at end of financial year 77,800,796 70,535,732 As at the balance sheet date, the funds invested with fund managers comprise the following : Cost Market value Cost Market value $ $ $ $ Equities 11,368,393 13,173,898 6,998,511 8,071,438 Bonds 57,061,703 58,238,493 59,152,317 60,298, $ $ Balance at beginning of financial year 256,823 Write back for the financial year (256,823) Balance at end of financial year 6. Trade debtors Trade debtors comprised the following : Conservancy and service debtors 1,389,024 1,104,065 Conservancy and service debtors are stated after providing for doubtful debts of $217,079 (2004 : $170,248). The movements in provision for doubtful debts are as follows : Balance at beginning of financial year 170,248 51,992 Provision for the financial year 46, ,256 Balance at end of financial year 217, ,248 Cash and fixed deposits 9,370,700 4,384,904 Total cost of investments 77,800,796 70,535, Annual Report 2004/2005 Annual Report 2004/

15 7. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, balances with banks and fixed deposits. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts : Fixed deposits with financial institutions 46,506,035 32,464,704 Bank and cash balances 3,862,492 6,195,915 50,368,527 38,660,619 9 Accumulated surplus The surplus for the financial year attributable to the various activities is carried forward as accumulated surplus in the respective funds as follows : Residential Property Commercial Property Carpark Total $ $ $ $ $ $ $ $ Operating income Conservancy and Service Fees 26,867,913 26,403,012 3,076,872 2,761,371 29,944,785 29,164,383 Less : Operating transfer to Sinking Fund (8,930,945) (10,089,901) (1,076,888) (1,112,481) (10,007,833) (11,202,382) Fixed deposits placed with banks have maturities ranging from 3 weeks to 6 months (2004 : 6 days to 9 months) and bear interest ranging from 0.400% to 2.125% (2004 : 0.375% to 1.100%) per annum. 17,936,968 16,313,111 1,999,984 1,648,890 19,936,952 17,962,001 Agency fees and other income 670, , , ,905 1,645,139 1,640,523 2,878,079 2,833, Creditors and accrued expenses Sundry deposits 182, ,439 Accrued operating expenses 220, ,569 Other creditors 3,961,007 4,099,176 4,364,145 4,320,184 18,607,702 16,801,873 2,562,190 2,352,795 1,645,139 1,640,523 22,815,031 20,795,191 Less : Operating expenditure (19,260,042) (17,637,366) (1,677,069) (1,371,714) (1,584,818) (1,512,547) (22,521,929) (20,521,627) Operating surplus/(deficit) (652,340) (835,493) 885, ,081 60, , , ,564 Add : Non-operating income 81, ,464 7,632 25,594 8,327 2,388 97, ,446 (Deficit)/surplus before taxation and Government Grants (570,443) (578,029) 892,753 1,006,675 68, , , ,010 Less : Taxation (26,314) (56,866) (2,415) (5,477) (2,695) (5,687) (31,424) (68,030) (Deficit)/surplus before Government Grants (596,757) (634,895) 890,338 1,001,198 65, , , ,980 Add : Government Grants 7,215,116 7,326,788 (32,424) 260,204 7,182,692 7,586,992 Less : Transfer to Sinking Funds (2,001,927) (2,148,227) (2,001,927) (2,148,227) Town Improvement and Project Funds (795,306) (1,210,671) 32,424 (260,204) (762,882) (1,470,875) 4,417,883 3,967,890 4,417,883 3,967,890 Surplus for the financial year 3,821,126 3,332, ,338 1,001,198 65, ,677 4,777,417 4,458,870 Accumulated surplus at beginning of financial year 2,213,601 2,072, , , , ,179 3,702,201 2,743,331 Less : Appropriation to Town Improvement 6,034,727 5,405,951 1,872,082 1,289, , ,856 8,479,618 7,202,201 and Project Funds (3,800,000) (3,192,350) (700,000) (307,650) (4,500,000) (3,500,000) Accumulated surplus at end of financial year 2,234,727 2,213,601 1,172, , , ,856 3,979,618 3,702, Annual Report 2004/2005 Annual Report 2004/

16 10. Sinking Funds Residential Property Commercial Property Total Note $ $ $ $ $ $ Balance at beginning of financial year 79,333,675 72,865,347 16,063,486 15,300,851 95,397,161 88,166,198 Add : Income 4,675,157 2,110, , ,058 5,118,381 2,314,763 Operating transfer from Conservancy and Service Fees (minimum required by law) 8,930,945 10,089,901 1,076,888 1,112,481 10,007,833 11,202,382 Transfer from Government Grant 2,001,927 2,148,227 2,001,927 2,148,227 15,608,029 14,348,833 1,520,112 1,316,539 17,128,141 15,665,372 Less : Expenditure (7,410,972) (7,334,744) (311,066) (501,309) (7,722,038) (7,836,053) Less : Taxation (341,279) (545,761) (31,324) (52,595) (372,603) (598,356) 7,855,778 6,468,328 1,177, ,635 9,033,500 7,230,963 Balance at end of financial year 87,189,453 79,333,675 17,241,208 16,063, ,430,661 95,397,161 Represented by : Non-current assets Funds with Fund Managers 77,800,796 70,535,732 Investment 3,648,000 77,800,796 74,183,732 Current assets Trade debtors 463, ,627 Other debtors 121,686 48,222 Interest receivable 115,908 60,819 Amount due from accumulated surplus 3,342,010 Fixed deposits with financial institutions 25,382,404 22,949,881 Bank and cash balances 85,098 2,955,797 29,511,040 26,458,346 Total assets 107,311, ,642,078 Current liabilities 11. Town improvement and project funds Residential Property Commercial Property Total Note $ $ $ $ $ $ Balance at beginning of financial year 10,056,352 7,013,203 2,521,539 2,005,204 12,577,891 9,018,407 Add : Income 91,189 49,667 8,485 4,876 99,674 54,543 Payment from citizens consultative committee 795,306 1,210,671 (32,424) 260, ,882 1,470, ,495 1,260,338 (23,939) 265, ,556 1,525,418 Less : Expenditure (1,556,991) (1,403,618) (68,620) (55,824) (1,625,611) (1,459,442) Less : Taxation (41,118) (5,921) (3,774) (571) (44,892) (6,492) (711,614) (149,201) (96,333) 208,685 (807,947) 59,484 Add : Appropriation from accumulated surplus 3,800,000 3,192, , ,650 4,500,000 3,500,000 Balance at end of financial year 13,144,738 10,056,352 3,125,206 2,521,539 16,269,944 12,577,891 Represented by : Current assets Other debtors 54,325 Interest receivable 33,753 15,219 Grants receivable 82,407 1,998,039 Amount due from accumulated surplus 4,509,115 3,512,060 Fixed deposits with financial institutions 10,083,694 6,507,107 Bank and cash balances 1,758, ,322 Total assets 16,467,768 12,791,072 Current liabilities Creditors and accrued expenses 149, ,688 Provision for taxation 47,913 8,493 Total liabilities 197, ,181 Net assets 16,269,944 12,577,891 Creditors and accrued expenses 2,308,282 3,008,676 Amount due to accumulated surplus 1,489,153 Provision for taxation 572, ,088 Total liabilities 2,881,175 5,244,917 Net assets 104,430,661 95,397, Annual Report 2004/2005 Annual Report 2004/

17 12. Interim upgrading programme fund $ $ Balance at beginning of financial year 184, ,059 Government fund received 1,479,816 3,052 Payment to contractors (1,641,417) (74,182) Balance at end of financial year 23, , Estate upgrading programme fund Balance at beginning of financial year 17,205 Government fund received 496, ,602 Payment to contractors (481,852) (807,397) Balance at end of financial year 31,454 17, Government grants Conservancy and Payments from citizen s service grant consultative committee Total Note $ $ $ $ $ $ Government grants received during 6,422,006 5,994, , ,249 7,138,043 6,212,822 the financial year Government grants receivable 126,340 82,407 1,263,705 82,407 1,390,045 Government grants received in advance (2,196) (4,796) (2,196) (4,796) Government grants over accrued (35,562) (11,079) (35,562) (11,079) 9 6,419,810 6,116, ,882 1,470,875 7,182,692 7,586,992 Less : Transfer : - sinking funds 10 (2,001,927) (2,148,227) (2,001,927) (2,148,227) - town improvement and project funds 11 (762,882) (1,470,875) (762,882) (1,470,875) 4,417,883 3,967,890 4,417,883 3,967,890 The total amount of grants received (including grants received in advance) since the formation of the Town Council is as follows: $ $ Total grants received at beginning of financial year 135,532, ,277,467 Grants receivable at beginning of financial year and received during the year 1,354,483 1,042,548 Grants received during the financial year 7,138,043 6,212,822 Total grants received at 31 March 144,025, ,532, Provision for taxation Provision for taxation in respect of profit for the financial year : - current taxation 448, ,800 Underprovision in prior financial years 12, , ,878 Taken up in : Income and expenditure statement (Note 9) 31,424 68,030 Sinking funds (Note 10) 372, ,356 Town improvement and project funds (Note 11) 44,892 6, , ,878 A reconciliation between the tax expense and the product of accounting surplus multiplied by the applicable tax rate for the years ended 31 March is as follows : Investment and interest income 1,619,528 2,487,635 Dividend income 53,265 70,000 Other income 702, ,553 2,375,392 3,281,188 Tax at the statutory rate of 20% (2004 : 20%) 475, ,264 Singapore statutory stepped income exemption (10,500) (10,500) Tax rebates (32,287) Underprovision in prior financial years 12,078 Others (15,659) (3,677) 448, , Annual Report 2004/2005 Annual Report 2004/

18 16. General and administrative expenditure $ $ Advertising, publicity and public relations 250, ,851 Audit fees 28,000 20,000 Computers services 475, ,856 Councillors allowance 178, ,456 Depreciation on plant and equipment (Note 3) 186, ,985 Plant and equipment not capitalised 6,322 4,636 Staff costs (Note 17) 3,829,668 3,406,545 Office rental and upkeep expenditure 366, ,651 Office supplies and stationery 134, ,039 Property tax 45,489 40,025 Provision for doubtful debts 46, ,256 Others 321, , Commitment for capital expenditure Capital expenditure approved by the Town Council but not provided for in the financial statements is as follows : $ $ Amount approved and contracted for 3,067,332 2,964,700 Budget approved but not contracted for 37,101,000 21,921,000 The balances disclosed under Budget approved but not contracted for are extracted from the sinking funds and town improvement and project funds budgets for financial year 2005/2006 approved by the Town Council. 20. Financial instruments 17. Staff costs 5,869,354 5,306,743 Financial risk management The activities of the Town Council do not expose it to any foreign exchange risk and there is no significant credit risk. Its income and cash flows are substantially independent of changes in the market interest rates. The Town Council places its excess cash in fixed deposits with financial institutions and funds with fund managers. There is no significant liquidity risk as it maintains sufficient cash for its operations. Wages and salaries 3,259,746 2,862,930 Employers contribution to Central Provident Fund 385, ,977 Other staff benefits 183, , Lease commitments Commitments in relation to non-cancellable operating leases contracted for at the reporting date but not recognised as liabilities are payable as follows : 3,829,668 3,406,545 Not later than one financial year 279, ,132 Later than one financial year but not later than five financial years 137, ,738 Fair values Other than the fair values of funds with fund managers, as detailed in Note 4, the carrying amounts of the Town Council s financial assets and liabilities approximate their fair values due to their short-term nature. 21. Comparative figures The financial statements for the year ended 31 March 2004 were audited by another firm. Certain comparative figures have been reclassified to conform with the current year s presentation. 22. Authorisation of financial statements The financial statements of the Town Council for the financial year ended 31 March 2005 were authorised for issue in accordance with a resolution of the Town Council on 28 September , , Annual Report 2004/2005 Annual Report 2004/

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