ownership pride community Bishan - Toa Payoh Town Council Annual Report

Transcription

1 ownership pride Toa Payoh Office Block 125A # Lorong 2 Toa Payoh Singapore Tel Bishan Office Block 197 # Bishan Street 13 Singapore Tel Website prm@btptc.org.sg community Bishan - Toa Payoh Town Council Annual Report

2 Our Home, Our Estate As homeowners, we put in the care and attention to make our home pristine and in the best livable condition. The thrust for this Annual Report is to take home-ownership one step further for residents to identify the estate as their home. We have selected three images to symbolise the traits of Ownership, Pride and Community. A Key refers to OWNERSHIP and this is where we hope to see residents treat the estate just like their homes. A Heart depicts the love for our home. We take PRIDE in our home and such emotive feelings have to spillover into the estate for residents to accept the extended home. The shoes reflect the COMMUNITY from all walks of life. It requires the collective effort of residents to appreciate the estate and make it their home. Only when these three traits have been internalised and accepted, then Our Home is Our Estate. contents Bishan-Toa Payoh Town Council Fifth Term of Office 3 Corporate Information 6 Chairman s Review 7 Financial Statements 12

3 THOMSON TOA PAYOH CENTRAL TOA PAYOH EAST 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. BISHAN EAST BISHAN-TOA PAYOH NORTH

4 advisors Mr Wong Kan Seng Deputy 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 Dr Ng Eng Hen Manpower Minister and Second Minister for Defence MP for Bishan-Toa Payoh GRC Elected of Bishan-Toa Payoh Town Council Advisor to Toa Payoh Central Grassroots Organisations Mr Zainudin Nordin Mayor for Central Singapore District MP for Bishan-Toa Payoh GRC Chairman of Bishan-Toa Payoh Town Council Advisor to Bishan-Toa Payoh North Grassroots Organisations Mrs Josephine Teo MP for Bishan-Toa Payoh GRC Vice-Chairman of Bishan-Toa Payoh Town Council Advisor to Toa Payoh East Grassroots Organisations Mr Hri Kumar MP for Bishan-Toa Payoh GRC Vice-Chairman of Bishan-Toa Payoh Town Council Advisor to Thomson Grassroots Organisations 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 Bishan-Toa Payoh Town Council Annual Report 2005/

5 finance & administration committee Advisor: Dr Ng Eng Hen Mr Yee Fook Hong Chairman Mr Poh Puay Eng Vice-Chairman Mr Roy Cheng Siew Cherng Mr Chia Pen Chuen Mr Lai Kah Seng Mr Larry Lau Hooi See Co-Opted s Mr Abdul Rahman Mohamed Mr Amar Singh s/o Soun Singh Mr Lau Pub Taai Ms Caroline Lee Sook Chin Mr Leong Fook Wing Mr Benny Soh Chee Ling Mr Lim Joo Lye Mr Tan Kee Khoon Mr Tin Beng Chan Mr Sng Jin Poh Mr Yeo Hiang Meng Mdm Helen Wee Lian Ngoh tenders & contracts committee Advisor: Mrs Josephine Teo Mr Sitoh Yih Pin 2 nd Advisor Mr Teh Hee Seang Chairman Mr Gregory Tang Wee Thiang Vice-Chairman Ms Chua Geok Lan Ms Catherine Lee Mr Ling Tuck Mun Co-Opted s Mdm Doris Chan Mr Chng Chee Beow Ms Lee Ker Hwa Mr Poo Chee Kuen Mr RT Xavier Samy Mr Wong Thian Hock Mr Willie Wun Chung Toh Mr Mohd Yusof Bin Abdullah Mr Tan Kia Seng Ms Tay Mok Lan Ms Patricia Toh Bee Lan Mr Wee Jit Sun 04 Bishan-Toa Payoh Town Council Annual Report 2005/2006

6 environment & development committee Advisor: Mr Hri Kumar Mr Cheng Wai Keung Chairman Dr Foo Yung Kuan Vice-Chairman Mr Azman Bin Yahaya Mr David Choo Yong Kee Mr Lau Cheng Nam Mr Leong Chong Meng Co-Opted s Mr Chong Ngee Mr Lau Juay Hor Mr Mazlan Bin Jalil Ms Paridah Bte Yusop Mr Sabaratnam Paul Mr Tey Chui Giong Mr Jason Leong Wai Hoong Mr Lawrence Lim Tau Jeow Mr Henry Ng Boon Hwee Ms Frances Tang Po Tim Mr Yeo Suay Tee community relations committee Advisor: Mr Zainudin Nordin Mr Er Kwong Wah Chairman Mr Cheong Chee Onn Vice-Chairman Mr Roger Chia Ah Sah Mr Khoo Kay Chai Mr Anthony Kiong Beng Hoe Mr Texas Loh Kia How Co-Opted s Mr Ahmad Alif Lim Mr Chua Seng Chye Mr David Mok Thye Hian Mr Poon Wai Mun Ms Anbukkarasi d/o Sakadevan Naidu Mr Roger Wong Tian Hock Mr Michael Low Hock Kim Mr Ng Wee Loon Mr Ramadoss Ravindran Ms Sophia Su Huah Tee Mr Raymond Teoh Ms Violet Wong Choh Sang Bishan-Toa Payoh Town Council Annual Report 2005/

7 corporate information Bishan-Toa Payoh Town Council 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. 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 2006 ** Figures are approximated 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 prm@btptc.org.sg Operating Hours 8.00am pm (Monday to Friday) 8.00am pm (Saturday) 06 Bishan-Toa Payoh Town Council Annual Report 2005/2006

8 chairman s review how much do you value your home? Now, extend the geographic boundary from your front door to include the estate, and ask yourself how much do you value your estate? Since your home is part of the estate, then, the natural progression is to treat the estate like the way you take care of your home. A change in residents mindset is needed to imbue in them a sense of pride and ownership of the estate and embrace the place like it is their home. This fundamental change is crucial to the way we view the estate and how we, as a community come together for a common good. A recent report in the country s leading daily has highlighted the increasing litter in our estates. Despite the many years of public education and numerous awareness programmes, the littering problem seemed to have gotten worse. As a result, the Town Council s cleaners would then have to spend more time clearing the litter and mess caused by such people. If residents could band together and tackle the litter problem, then our cleaners would have more time to perform other conservancy and maintenance duties. Picture this ideal scenario residents work together to promote estate cleanliness and this results in fewer litter, thus less conservancy work is needed there. The Town Council could return the conservancy savings to residents a reward for our civicmindedness. There is everything to gain when you treat the common areas outside your unit as your home as well. You have a cleaner living environment; residents become better neighbours when they work together towards a common goal, and this results in a happy and harmonious community. There is everything to gain when you treat the common areas outside your unit as your home as well. You have a cleaner living environment; residents become better neighbours when they work together towards a common goal, and this results in a happy and harmonious community. Bishan-Toa Payoh Town Council Annual Report 2005/

9 new initiatives as the residents begin to think of the estate as their home, the Town Council will continue to improve its services to them. Apart from the continuous upgrading and provision of relevant facilities, it is imperative that the Town Council knows what the residents want and delivers the new services to benefit them. Our recent initiatives have been the Online Basic Maintenance Video, a newly revised Town Map and the Town Council Service Improvement Movement. The Basic Maintenance Workshop, introduced two years ago as demonstration sessions during community events, has now gone online. We have produced four video clips and are available on the Town Council s web-site By harnessing the power of technology, we have used the Internet to reach more residents to teach them simple home maintenance skills by viewing simple instructional videos on our web-site. Some three years ago, we produced a comprehensive town map that was distributed to every household. Since our estate continues to develop and is a dynamic town, we have updated the map to reflect the present situation. Residents can now find their way around Bishan-Toa Payoh Town by using their user-friendly foldable Town Map. Produced by the Town Council and given to every HDB household in our GRC, the newly updated Town Map has open up new places for residents and their families to explore. For the Town Council to provide better customer service and meet residents expectations, we have instituted a Service Improvement Movement within the organisation and impressed upon all employees to embrace the pro-service culture. We have further streamlined our communication process for residents to give their feedback and to be updated of the actions taken by the Town Council. The Basic Maintenance Workshop, introduced two years ago as demonstration sessions during community events, has now gone online. We have produced four video clips and are available on the Town Council s web-site 08 Bishan-Toa Payoh Town Council Annual Report 2005/2006

10 service expectations how does the Town Council continue to provide the relevant facilities and services to its residents? By finding out what they want and delivering to them. However, there are resources limitations, technical and physical constraints that have to be fulfilled. Thus, it is our duty to communicate so that residents appreciate why there would be limited number of projects every financial year. Providing good customer service is not only about delivering the goods and services. Sometimes, we are unable to meet some of these expectations and this is where we need to explain to the residents and by engaging them, this is also giving good service. To give good service, we also need good customers. Just like it takes two to tango, good customer service requires a good service provider and an appreciative customer. A customer that comes across as rude, demanding and shouts in your face is every service provider s nightmare. But, as a service provider, we can still be professional about it and try to understand the customer s needs. That said, it takes a great deal of self control not to turn up the heat. The Town Council staff has to deal with a wide range of expectations every day. We receive an average of 100 feedbacks a day, mostly from telephone calls and the . The service standard we expect from our staff is to reply to the residents feedback within a stipulated time period. As the Town Council continues to explore new avenues to improve its services to residents, likewise, we would expect residents to be patient and understanding in their correspondences and dealings with our people. It is through such a partnership that we have a win-win situation and that is good news for all concerned. As the Town Council continues to explore new avenues to improve its services to residents, likewise, we would expect residents to be patient and understanding in their correspondences and dealings with our people. It is through such a partnership that we have a win-win situation and that is good news for all concerned. Bishan-Toa Payoh Town Council Annual Report 2005/

11 improvements to the estate most of the residential blocks in Toa Payoh have already gone through the Main Upgrading Programme (MUP). Another 12 blocks in Toa Payoh Central & East have completed the Main Upgrading Programme (MUP). For those blocks that are not due for MUP, the Interim Upgrading Programme (IUP) has addressed the upgrading needs of some aging blocks. Over in Bishan East, 70 blocks have been identified for the IUP and many have either been completed recently or are already underway. The most recent and very popular Lift Upgrading Programme (LUP) is underway at 104 blocks throughout the GRC. The Town Council has helped to speed up the LUP requests of its residents by using the Town Improvement Project Fund to complement MND s national project. As for non-residential blocks, the Block 74 market & food centre at Toa Payoh Central has been refurbished under the Hawker Upgrading Programme (HUP). This has revitalised the neighbourhood and has attracted more people to shop and socialise. Most of the residential blocks in Toa Payoh have already gone through the Main Upgrading Programme (MUP). Another 12 blocks in Toa Payoh Central & East have completed the Main Upgrading Programme (MUP). 10 Bishan-Toa Payoh Town Council Annual Report 2005/2006

12 how your s&cc was spent last year, we improved your estate to the tune of $15.4 million. We invested $3.4 million on 68 town improvement projects like elderly fitness corners, children s playgrounds, resident & study corners, fitness and sports courts, pavilions, numerous park benches & shelters, barbecue pits, a jogging track, covered walkways and car porches. Another $12.0 million went to cyclical works expenditure for repairs and redecoration, replacement of lift parts, FRP water-tanks, booster pumps, and re-wiring to 37 blocks to keep them in good living and working condition. From the $15.4 million that the Town Council has spent, $2.4 million 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 reinvests the surplus back into the estate through physical upgrade, and this has increased the value of the homes. A part of the net operating surplus of $4.7 million, after taking into account government grants for financial year 05/06, would be returned to residents through the various improvements programmes. The prudent approach adopted by the Town Council has also steadily built up the Sinking Fund reserve that now stands at $114.2 million. Thank You Leong Horn Kee & Davinder Singh This year, in May 2006, we bid farewell to two long-serving and outstanding individuals. On behalf of the Town Council s Advisors, Councillors, Co-Opted s and Staff, I take this opportunity to thank our former Advisors Mr Leong Horn Kee and Mr Davinder Singh for their many years of service to Bishan-Toa Payoh Town Council. I would like to acknowledge their commitment and dedication to develop Bishan-Toa Payoh Town into the premier real estate in Singapore. They have also instituted policies for the Town Council s operations and this has resulted in a well-managed organisation that continues to provide new and better facilities and services to the residents. We have indeed benefited from their many years of contributions and the new generation of MPs like Hri Kumar, Josephine Teo and I have a hard act to follow. Finally, I wish them good health and success. Zainudin Nordin Chairman, Bishan-Toa Payoh Town Council Bishan-Toa Payoh Town Council Annual Report 2005/

13 Established under the Town Councils Act, Cap. 329A Audited Financial Statements for the Financial Year Ended 31 March 2006 contents Auditors' report 13 Balance sheet 14 Statement of income and expenditure 15 Statement of changes in funds 16 Cash flow statement 17 Notes to the financial statements Bishan-Toa Payoh Town Council Annual Report 2005/2006

14 Auditors Report to Bishan-Toa Payoh Town Council We have audited the accompanying financial statements of Bishan-Toa Payoh Town Council (the Town Council ) as set out on pages 14 to 36 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 2005 were audited by another auditor whose report dated 28 September 2005 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 2006 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. RSM Chio Lim Certified Public Accountants Singapore 23 June 2006 Bishan-Toa Payoh Town Council Annual Report 2005/

15 Balance Sheet as at 31 March 2006 Note $ $ Non-current assets Plant and equipment 3 45, ,030 45, ,030 Current assets Investments in financial assets 4 90,692,696 77,800,796 Conservancy and service debtors 5 1,602,673 1,389,024 Other receivable 706, ,704 Interest receivable 383, ,458 Grants receivable 512,804 82,407 Fixed deposits with financial institutions 6 44,477,408 46,506,035 Bank and cash balances 6 6,759,388 3,862, ,135, ,985,916 Current liabilities Grants received in advance 107,784 2,196 Conservancy and service fees received in advance 352, ,770 Payables and accrued expenses 7 4,659,462 4,364,145 Current tax payable 771, ,830 5,891,238 5,356,941 Net current assets 139,244, ,628, ,289, ,735,005 Town Council Funds Residential property funds Accumulated surplus 8 4,564,869 2,234,727 Sinking funds 9 95,518,292 87,189,453 Town improvement and project funds 10 13,917,626 13,144, ,000, ,568,918 Commercial property funds Accumulated surplus 8 1,582,818 1,172,082 Sinking funds 9 18,701,351 17,241,208 Town improvement and project funds 10 3,576,064 3,125,206 23,860,233 21,538,496 Carpark funds Accumulated surplus 8 509, ,809 Interim upgrading programme fund ,967 23,328 Estate upgrading programme fund 12 (24,928) 31, ,289, ,735,005 Mr Zainudin Nordin Chairman 23 June 2006 Mr Ling Ming Chuan Secretary The accounting policies and explanatory notes on pages 18 to 36 form an integral part of the financial statements. 14 Bishan-Toa Payoh Town Council Annual Report 2005/2006

16 Statement of Income and Expenditure for the financial year ended 31 March 2006 Note $ $ Operating income Conservancy and service fees 8 31,001,865 29,944,785 Less : Operating transfer to sinking funds 8, 9 (10,378,699) (10,007,833) 20,623,166 19,936,952 Agency fees 1,630,992 1,566,573 Other income 1,442,889 1,311,506 23,697,047 22,815,031 Less : Operating expenditure Cleaning works 5,111,379 4,755,652 Lift maintenance 2,830,407 2,951,342 Other works and maintenance 3,615,473 3,716,865 Water and electricity 5,980,873 5,228,716 General and administrative expenditure 15 5,888,022 5,869,354 (23,426,154) (22,521,929) Operating surplus 270, ,102 Add : Non-operating income Interest income 209,610 96,656 Gain on disposal of plant and equipment - 1, ,610 97,856 Surplus before taxation and government grants 480, ,958 Taxation 14 (395,533) (31,424) Surplus before government grants 84, ,534 Government grants 8, 13 9,105,242 7,182,692 Less : Transfer to - sinking funds (2,097,875) (2,001,927) - town improvement and project funds (2,414,841) (762,882) 4,592,526 4,417,883 Surplus for the financial year 4,677,496 4,777,417 Add : Accumulated surplus at 1 April 8 3,979,618 3,702,201 8,657,114 8,479,618 Less : Appropriation to town improvement and project fund 8 (2,000,000) (4,500,000) Accumulated surplus at 31 March 8 6,657,114 3,979,618 Mr Zainudin Nordin Chairman 23 June 2006 Mr Ling Ming Chuan Secretary The accounting policies and explanatory notes on pages 18 to 36 form an integral part of the financial statements. Bishan-Toa Payoh Town Council Annual Report 2005/

17 Statement of Changes in Funds for the financial year ended 31 March 2006 Interim Estate Residential Commercial Car park upgrading upgrading property fund property funds funds project project Total $ $ $ $ $ $ Balance at 31 March ,603,628 19,566, , ,929 17, ,879,387 Surplus/(deficit) for the 10,965,290 1,971,727 65,953 (161,601) 14,249 12,855,618 financial year * Balance at 31 March ,568,918 21,538, ,809 23,328 31, ,735,005 Effects of adopting FRS 39 2,731, ,513 2,982,295 (Note 21) Balance at 1 April ,300,700 21,789, ,809 23,328 31, ,717,300 restated Surplus/(deficit) for the 8,700,087 2,071,224 (63,382) 920,639 (56,382) 11,572,186 financial year * Balance at 31 March ,000,787 23,860, , ,967 (24,928) 139,289,486 Notes $ $ * Accumulated surplus 8 4,677,496 4,777,417 Sinking funds 9 6,806,687 9,033,500 Town improvement and project funds 10 (776,254) (807,947) Interim upgrading programme fund ,639 (161,601) Estate upgrading programme fund 12 (56,382) 14,249 11,572,186 12,855,618 The accounting policies and explanatory notes on pages 18 to 36 form an integral part of the financial statements. 16 Bishan-Toa Payoh Town Council Annual Report 2005/2006

18 Cash flow statement for the financial year ended 31 March 2006 Note $ $ Cash flow from operating activities Surplus before taxation and government grants 8 480, ,958 Adjustments for : Depreciation of plant and equipment 3 60, ,113 Interest income (209,610) (96,656) Gain on disposals of plant and equipment - (1,200) Operating surplus before working capital changes 331, ,215 (Increase)/Decrease in debtors (4,302,435) 352,957 Increase in creditors 483,619 45,350 Cash provided by/(used in) operations (3,487,238) 877,522 Income tax paid (482,032) (651,489) (Decrease)/Increase in sinking funds (1,600,157) 2,285,795 Decrease in town improvement and project funds (3,158,262) (1,525,937) Payment of expenses for interim upgrading project 11 (2,679,291) (1,641,417) Payment of expenses for Estate upgrading project 12 (56,382) (481,852) Net cash flow used in operating activities (11,463,362) (1,137,378) Cash flows from investing activities Proceeds from disposal of plant and equipment - 1,200 Purchase of plant and equipment 3 - (40,466) Investments - 4,259,835 Funds with fund managers 4 (4,198,513) (5,586,371) Investment and interest income received 4,229,992 5,097,128 Net cash flow provided by investing activities 31,479 3,731,326 Cash flows from financing activities Government funds received from interim upgrading project 11 3,599,930 1,479,816 Government funds received from estate upgrading project ,101 Government grants received 13 8,700,222 7,138,043 Net cash flow provided by financing activities 12,300,152 9,113,960 Net increase in cash and cash equivalents 868,269 11,707,908 Cash and cash equivalents at the beginning of financial year 50,368,527 38,660,619 Cash and cash equivalents at the end of financial year 6 51,236,796 50,368,527 The accounting policies and explanatory notes on pages 18 to 36 form an integral part of the financial statements. Bishan-Toa Payoh Town Council Annual Report 2005/

19 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 Bishan-Toa Payoh Town Council. This new Town Council also includes a proportion of the assets and liabilities over from the dissolved Bishan Serangoon Town Council. Bishan-Toa Payoh 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. The Town Council commenced its functions on 13 January 1997 and its head office is situated at: Blk 125A Lorong 2 Toa Payoh # Singapore The Town Council had 75 (2005 : 73) employees as at 31 March Summary of significant accounting policies (a) Accounting convention The financial statements are prepared under the historical cost convention, modified to include the revaluation of certain financial assets and financial liabilities and available-for-sale investments as disclosed where appropriate in these financial statements. (b) Basis of preparation The preparation of financial 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 financial 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 difficult, subjective or complex judgements, or areas where assumptions and estimates are significant to the financial statements, are disclosed at the end of this footnote, 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 were as follows: 18 Bishan-Toa Payoh Town Council Annual Report 2005/2006

20 Residential property Commercial property 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. 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 (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 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. 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. Bishan-Toa Payoh Town Council Annual Report 2005/

21 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. 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. (d) 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. (e) 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. (f) Plant and equipment 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 property, plant and equipment. The annual rates of depreciation are as follows: 20 Bishan-Toa Payoh Town Council Annual Report 2005/2006

22 Furniture, fixtures and fittings - 20% Office equipment % Data processing equipment/software % Motor vehicles - 20% 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 financial statements. Property, plant and equipment are carried at cost less any accumulated depreciation and any accumulated impairment losses. The residual value and the useful life of an asset is reviewed at least at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate, and the depreciation charge for the current and future periods are adjusted. The gain or loss arising from the derecognition of an item of property, 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 statement. (g) Investments in financial assets Investment in financial assets are Funds with Fund Managers which comprise mainly of equities, bonds and cash and fixed bank deposits. Investments with a quoted market price in an active market and derivatives that are not designated as hedges are designated at fair value through profit or loss at inception. They are initially measured at fair value plus directly attributable transaction costs and are classified as current assets. These are stated at fair value using the portfolio basis. A gain or loss on remeasuring financial assets to fair value (other than those relating to hedges) is recognised in the income statement. The transactions are recorded at the trade date method. (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 significant. 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 loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated. The carrying amounts of conservancy and service debtors are assumed to approximate their fair value. The amount of the provision is recognised in the income statement. Normally no interest is charged on conservancy and service debtors. (i) Other receivables Other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those held for trading, designated as available for sale and those that are not substantially recoverable, other than because of credit deterioration, which are classified as available for sale. Items with a short duration are not discounted. After initial recognition such financial assets, are measured at their fair values, without any deduction for transaction costs that may be incurred on sale or other disposal. These items are included in the balance sheet in conservancy and service debtors and other receivables as current assets. Bishan-Toa Payoh Town Council Annual Report 2005/

23 (j) Impairment of non-financial assets At each reporting date an assessment is made whether there is any indication that a depreciable or amortisable asset may be impaired. If any such indication exists, an estimate is made of the recoverable amount of the asset. The impairment loss is the excess of the carrying amount over the recoverable amount and is recognised in the income statement unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. The recoverable amount of an asset or a cashgenerating unit is the higher of its fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). At each reporting date non-financial 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. (k) Impairment of financial assets All financial assets except those measured at fair value through profit or loss are subject to review for impairment. A financial asset or a group of financial assets is impaired and impairment losses are incurred if there is objective evidence of impairment 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 flows of the financial asset or group of financial assets that can be reliably estimated. Losses expected as a result of future events, no matter how likely, are not recognised. (l) Liabilities and provision 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 outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These include trade and other payables and where the effect of the time value of money is material, the amount recognised is the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. (m) 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 22 Bishan-Toa Payoh Town Council Annual Report 2005/2006

24 (iv) Agency fees derived from acting as agents for other town councils. The income tax are 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 financial 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; 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 related 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 benefits that, based on available evidence, are not expected to be realised. A deferred tax amount is recognised for all temporary differences. (n) Recognition of income The revenue amount is the fair value of the consideration received or receivable from the gross inflow of economic benefits during the period arising from the course of the ordinary activities of the entity and it is shown net of related tax, estimated returns and discount. 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. (o) Employee benefits Contributions to defined contribution retirement benefit plans are recorded as an expense as they fall due. The entity s legal or constructive obligation is limited to the amount that it agrees to contribute to the fund. This includes the government managed retirement benefit plan such as the Central Provident Fund in Singapore. For employee leave entitlement the expected cost of short-term employee benefits in the form of compensated absences is recognised in the case of accumulating compensated absences, when the employees render service that increases their entitlement to future compensated absences; and in the case of non-accumulating compensated absences, when the absences occur. (p) 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. 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. Bishan-Toa Payoh Town Council Annual Report 2005/

25 (q) Leases as a lessee Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. For operating leases, lease payments are recognised as an expense in the income 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 benefit, even if the payments are not on that basis. Lease incentives received are recognised in the income statement as an integral part of the total lease expense. (r) Fair value of financial instruments The carrying values of current financial assets and financial liabilities including cash, accounts receivables, account payable approximate their fair values due to the short-term maturity of these instruments. (s) Critical judgements, assumptions and estimation uncertainties There were no critical judgements made in the process of applying the entity s accounting policies that have the most significant effect on the amounts recognised in the financial statements. There were no key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. (t) General risk management principles The Town Council s financial instruments comprise some cash and liquid resources, and various items, such as investment in financial assets, conservancy and service debtors and other receivables, trade and other payables, that arise directly from its operations. The main risks arising from the financial instruments are credit risk and interest risk. The Town Council s is not exposed to any foreign exchange risk and there is no significant liquidity risk as it maintains sufficient cash. The Town Council s reviews and agrees policies for managing each of these risks and they are summarised below. (u) Credit risk on financial 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 accounts receivable. The Town Council believes that the financial risks associated with these financial instruments are minimal. The cash and cash equivalents and other liquid financial assets are placed with high credit quality institutions. An ongoing credit evaluation is performed of the debtors financial condition and a loss from impairment is recognised in the income statement. There is no significant concentration of credit risk, as the exposure is spread over a large number of counterparties and customers. (v) Other risks on financial instruments The main risks arising from the Town Council s financial instruments are interest risk. There is exposure to interest rate price risk for financial instruments with a fixed interest rate and to interest rate or cash flow risk for financial instruments with a floating interest rate that is reset as market rates change. Interest rate swaps are not used to generate the desired interest profit and to manage the exposure to interest rate fluctuations. 24 Bishan-Toa Payoh Town Council Annual Report 2005/2006

26 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) At 31 March ,050, ,479 2,183,693 61,137 3,552,314 Net book value At 31 March ,378 5,188 62, ,030 Cost At 1 April ,088, ,667 2,246,156 61,138 3,658,344 Disposals (61,138) (61,138) At 31 March ,088, ,667 2,246,156-3,597,206 Accumulated depreciation At 1 April ,050, ,479 2,183,693 61,137 3,552,314 Additions 18,890 3,355 38, ,685 Disposals (61,138) (61,138) At 31 March ,068, ,834 2,222,132-3,551,861 Net book value At 31 March ,488 1,833 24,024-45,345 Bishan-Toa Payoh Town Council Annual Report 2005/

27 4. Investments in financial assets 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 2006, the Town Council has arrangements with certain fund managers to guarantee in aggregate the principal amount of $62,500,000 (2005 : $58,000,000) at the end of the management term. (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. (iii) The funds are invested in accordance with the Town Councils Act and the Trustees Act $ $ Balance at beginning of financial year 77,800,796 70,535,732 Effects of adopting FRS39 on 1 April ,982,295 Additions during the financial year 4,198,513 5,586,371 Accrued income for the financial year 3,495,320 1,752,939 Administrative fee accrued (82,714) (74,246) Increase in fair value during the year 2,298,486 Fair value at the end of the financial year 90,692,696 77,800,796 As at the balance sheet date, the funds invested with fund managers comprise the following : $ $ At fair value At fair value At cost Equities 11,795,432 13,173,898 11,368,393 Bonds 71,343,083 58,238,493 57,061,703 Cash and fixed deposits 7,554,181 9,370,700 9,370,700 Total cost of investments 90,692,696 80,783,091 77,800, Bishan-Toa Payoh Town Council Annual Report 2005/2006

28 5. Conservancy and service debtors Conservancy and service debtors 1,602,673 1,389,024 Conservancy and service debtors are stated after providing for doubtful debts of $217,079 (2005 : $217,079). The movements in provision for doubtful debts are as follows : Balance at beginning of financial year 217, ,248 Addition during the financial year - 46,831 Balance at end of financial year 217, , Cash and cash equivalents Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts : Fixed deposits with financial institutions 44,477,408 46,506,035 Bank and cash balances 6,759,388 3,862,492 51,236,796 50,368,527 Fixed deposits placed with banks have maturities range from 3 weeks to 12 months and bear interest range from 1.900% to 3.325% per annum (2005: 3 weeks to 6 months and bear interest range from 0.400% to 2.125% per annum). These approximate the weighted effective interest rate. 7. Payables and accrued expenses Sundry deposits 221, ,798 Accrued operating expenses 239, ,340 Outside parties 4,198,034 3,961,007 4,659,462 4,364,145 The other payables are with short-term durations. The notional amount is deemed to reflect the fair value. Bishan-Toa Payoh Town Council Annual Report 2005/

29 8. 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 27,751,814 26,867,913 3,250,051 3,076,872 31,001,865 29,944,785 Less : Operating transfer to Sinking Fund (9,241,180) (8,930,945) (1,137,519) (1,076,888) (10,378,699) (10,007,833) 18,510,634 17,936,968 2,112,532 1,999,984 20,623,166 19,936,952 Agency fees and other income 757, , , ,206 1,717,648 1,645,139 3,073,881 2,878,079 19,267,733 18,607,702 2,711,666 2,562,190 1,717,648 1,645,139 23,697,047 22,815,031 Less : Operating expenditure (19,874,823) (19,260,042) (1,786,715) (1,677,069) (1,764,616) (1,584,818) (23,426,154) (22,521,929) Operating surplus/(deficit) (607,090) (652,340) 924, ,121 (46,968) 60, , ,102 Add : Non-operating income 175,144 81,897 16,033 7,632 18,433 8, ,610 97,856 Less : Non-operating expenditure Surplus/(deficit) before taxation and Government Grants (431,946) (570,443) 940, ,753 (28,535) 68, , ,958 Less : Taxation (330,438) (26,314) (30,248) (2,415) (34,847) (2,695) (395,533) (31,424) Surplus/(deficit) before Government Grants (762,384) (596,757) 910, ,338 (63,382) 65,953 84, ,534 Add : Government Grants 8,956,181 7,215, ,061 (32,424) 9,105,242 7,182,692 Less : Transfer to Sinking Funds (2,097,875) (2,001,927) (2,097,875) (2,001,927) Town Improvement and Project Funds (2,265,780) (795,306) (149,061) 32,424 (2,414,841) (762,882) 4,592,526 4,417,883 4,592,526 4,417,883 Surplus for the financial year 3,830,142 3,821, , ,338 (63,382) 65,953 4,677,496 4,777,417 Accumulated surplus at 1 April 2,234,727 2,213,601 1,172, , , ,856 3,979,618 3,702,201 6,064,869 6,034,727 2,082,818 1,872, , ,809 8,657,114 8,479,618 Less : Appropriation to Town Improvement and Project Funds (1,500,000) (3,800,000) (500,000) (700,000) (2,000,000) (4,500,000) Accumulated surplus at 31 March 4,564,869 2,234,727 1,582,818 1,172, , ,809 6,657,114 3,979, Bishan-Toa Payoh Town Council Annual Report 2005/2006

30 9. Sinking Funds Residential Property Commercial Property Total $ $ $ $ $ $ Balance at beginning of financial year 87,189,453 79,333,675 17,241,208 16,063, ,430,661 95,397,161 Add : Effects of adopting FRS39 2,731, ,513 2,982,295 Income 3,854,384 4,675, , ,224 4,207,364 5,118,381 Operating transfer from Conservancy and Service Fees (minimum required by law) 9,241,180 8,930,945 1,137,519 1,076,888 10,378,699 10,007,833 Transfer from Government Grant 2,097,875 2,001,927 2,097,875 2,001,927 Fair value gains on investment 2,105, ,073 2,298,486 with fund managers 17,298,852 15,608,029 1,683,572 1,520,112 18,982,424 17,128,141 Less : Expenditure (11,521,425) (7,410,972) (457,431) (311,066) (11,978,856) (7,722,038) Less : Taxation (180,370) (341,279) (16,511) (31,324) (196,881) (372,603) 5,597,057 7,855,778 1,209,630 1,177,722 6,806,687 9,033,500 Balance at end of financial year 95,518,292 87,189,453 18,701,351 17,241, ,219, ,430,661 Represented by : Current assets Investments in financial assets 90,692,696 77,800,796 Conservancy and service debtors 535, ,934 Other debtors 346, ,686 Interest receivable 210, ,908 Amount due from accumulated surplus 3,407,616 3,342,010 Fixed deposits with financial institutions 21,359,352 25,382,404 Bank and cash balances 1,446,237 85,098 Total assets 117,998, ,311,836 Current liabilities Payable and accrued expenses 3,354,631 2,308,282 Provision for taxation 423, ,893 Total liabilities 3,778,541 2,881,175 Net assets 114,219, ,430,661 Bishan-Toa Payoh Town Council Annual Report 2005/

31 10. Town improvement and project funds Residential Property Commercial Property Total $ $ $ $ $ $ Balance at beginning of financial year 13,144,738 10,056,352 3,125,206 2,521,539 16,269,944 12,577,891 Add : Income 265,781 91,189 35,873 8, ,654 99,674 Payment from citizens consultative 2,265, , ,061 (32,424) 2,414, ,882 committee 2,531, , ,934 (23,939) 2,716, ,556 Less : Expenditure (3,228,594) (1,556,991) (231,322) (68,620) (3,459,916) (1,625,611) Less : Taxation (30,079) (41,118) (2,754) (3,774) (32,833) (44,892) (727,112) (711,614) (49,142) (96,333) (776,254) (807,947) Add : Appropriation from 1,500,000 3,800, , ,000 2,000,000 4,500,000 accumulated surplus Balance at end of financial year 13,917,626 13,144,738 3,576,064 3,125,206 17,493,690 16,269,944 Represented by : Current assets Interest receivable 120,169 33,753 Grants receivable 512,804 82,407 Amount due from accumulated surplus 2,104,987 4,509,115 Fixed deposits with financial institutions 13,023,847 10,083,694 Bank and cash balances 2,146,009 1,758,799 Total assets 17,907,816 16,467,768 Current liabilities Payables and accrued expenses 343, ,911 Provision for taxation 70,461 47,913 Total liabilities 414, ,824 Net assets 17,493,690 16,269, Bishan-Toa Payoh Town Council Annual Report 2005/2006

32 11. Interim upgrading programme fund $ $ Balance at beginning of financial year 23, ,929 Government fund received 3,599,930 1,479,816 Payment to contractors (2,679,291) (1,641,417) Balance at end of financial year 943,967 23, Estate upgrading programme fund Balance at beginning of financial year 31,454 17,205 Government fund received 496,101 Payment to contractors (56,382) (481,852) Balance at end of financial year (24,928) 31, Government grants Conservancy and Payments from citizen s service grant consultative committee Total Note $ $ $ $ $ $ Government grants received during the financial year 6,798,185 6,422,006 1,902, ,037 8,700,222 7,138,043 Government grants receivable 512,804 82, ,804 82,407 Government grants received in advance (107,784) (2,196) (107,784) (2,196) Government grants over accrued (35,562) (35,562) 8 6,690,401 6,419,810 2,414, ,882 9,105,242 7,182,692 Less : Transfer : - sinking funds 9 (2,097,875) (2,001,927) (2,097,875) (2,001,927) - town improvement and project funds 10 (2,414,841) (762,882) (2,414,841) (762,882) 4,592,526 4,417,883 4,592,526 4,417,883 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 144,025, ,532,837 Grants receivable at beginning of financial year and received during the year 82,407 1,354,483 Grants received during the financial year 8,700,222 7,138,043 Total grants received at 31 March 152,807, ,025,363 Bishan-Toa Payoh Town Council Annual Report 2005/

33 14. Provision for taxation Provision for taxation in respect of profit for the financial year : - current taxation 506, ,919 - under provision for prior year 118, , ,919 Taken up in : Income and expenditure statement (Note 8) 395,533 31,424 Sinking funds (Note 9) 196, ,603 Town improvement and project funds (Note 10) 32,833 44, , ,919 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 2,641,613 1,619,528 Dividend income 183,376 53,265 Other income 531, ,599 3,356,233 2,375,392 Tax at the statutory rate of 20% (2005 : 20%) 671, ,078 Singapore statutory stepped income exemption (10,500) (10,500) Others (35,500) (15,659) 625, , Bishan-Toa Payoh Town Council Annual Report 2005/2006

34 15. General and administrative expenditure $ $ Advertising, publicity and public relations 361, ,736 Audit fees 19,500 28,000 Computers services 237, ,633 Councillors allowance 191, ,279 Depreciation on plant and equipment (Note 3) 60, ,113 Plant and equipment not capitalised 5,140 6,322 Staff costs (Note 16) 3,876,768 3,829,668 Office rental and upkeep expenditure 427, ,810 Office supplies and stationery 131, ,072 Property tax 50,430 45,489 Provision for doubtful debts 46,831 Others 524, ,401 5,888,022 5,869, Employee benefits expenses Wages and salaries 3,262,100 3,259,746 Employers contribution to Central Provident Fund 383, ,953 Other staff benefits 231, ,969 3,876,768 3,829, Operating 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 : Not later than one financial year 213, ,531 Later than one financial year but not later than five financial year 94, , , ,081 Rental expenses for the year 340, ,357 Bishan-Toa Payoh Town Council Annual Report 2005/

35 18. 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 13,058,902 3,067,332 Budget approved but not contracted for 30,123,200 37,101,000 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 2006/2007 approved by the Town Council. 19. Changes and adoption of financial reporting standards For the year ended 31 March 2006 the following Singapore Financial Reporting Standards were adopted for the first time: FRS 1 (revised 2004) Presentation of Financial Statements FRS 2 (revised 2004) Inventories (*) FRS 8 (revised 2004) Accounting Policies, Changes in Accounting Estimates and Errors FRS 10 (revised 2004) Events after the Balance Sheet Date FRS 16 (revised 2004) Property, Plant and Equipment FRS 17 (revised 2004) Leases FRS 21 (revised 2004) The Effects of Changes in Foreign Exchange Rates FRS 24 (revised 2004) Related Party Disclosures FRS 27 (revised 2004) Consolidated and Separate Financial Statements (*) FRS 28 (revised 2004) Investments in Associates (*) FRS 32 (revised 2004) Financial Instruments: Disclosure and Presentation FRS 33 (revised 2004) Earnings per Share (*) FRS 36 (revised 2004) Impairment of Assets FRS 38 (revised 2004) Intangible Assets FRS 39 (revised 2004) Financial Instruments: Recognition and Measurement FRS 41 Agriculture (*) FRS 102 Share-based Payments (*) FRS 103 Business Combinations (*) FRS 104 Insurance Contracts (*) FRS 105 Non-current assets held for sale and discontinued operations (*) (*) Not applicable to the entity. Adoption of the above new standards has resulted in some changes in the detailed application of the accounting policies and some modifications to financial statement presentation (see Note 21). 34 Bishan-Toa Payoh Town Council Annual Report 2005/2006

36 20. Future changes in accounting Standards The following Singapore Financial Reporting Standards that have been issued will be effective in future. The transfer to the new standards from the effective dates is not expected to have a material impact on the financial statements. FRS 40 Investment Property, effective from (*) FRS 106 Exploration for and Evaluation of Mineral Resources, effective from (*) FRS 107 Financial Instruments: Disclosures, effective from INT FRS 104 Determining whether an Arrangement contains a Lease INT FRS 105 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds (*) INT FRS 106 Liabilities Arising from Participating in a Specific Market Waste Electrical and Electronic Equipment (*) INT FRS 107 Applying the Restatement Approach under FRS 29 Financial Reporting in Hyperinflationary Economies (*) Amendments to FRS 1 Presentation of Financial Statements on Capital Disclosures Amendments to FRS 21 Net Investment in a Foreign Operation (*) Amendments to FRS 39 Financial Instruments: Recognition and Measurement on hedge accounting provision, fair value option and financial guarantee contracts (*) Amendments to FRS 101 First-time Adoption of Financial Reporting Standards on comparative disclosures for FRS 106 Exploration for and Evaluation of Mineral Resources(*) Amendments to FRS 104 Insurance Contracts on financial guarantee contracts (*) (*) Not applicable to the entity. Bishan-Toa Payoh Town Council Annual Report 2005/

37 21. Changes in accounting policies, reclassifications and comparative figures. The entity adopted FRS 39 Financial Instruments: Recognition and Measurement with effect from 1 April As is explained in Note 2, all financial assets and financial liabilities are recognised at fair values (other than those permitted to be recognised at cost). The adjustments to fair values ($2,982,295) at the beginning of the year are adjusted in equity. The figures for last year are not restated. The amounts involved are as follows: After adoption Before adoption of FRS39 of FRS39 Difference $ $ $ Available for sale investment 80,783,091 77,800,796 2,982,295 Sinking funds Residential property 89,921,235 87,189,453 (2,731,782) Commercial property 17,491,721 17,241,208 (250,513) 22. Comparative figures The financial statements for the year ended 31 March 2005 were audited by other auditors (other than RSM Chio Lim) whose report dated 28 September 2005 expressed an unqualified opinion on those financial statements. 36 Bishan-Toa Payoh Town Council Annual Report 2005/2006