ANNUAL REPORT 2006-2007 - btptc.org.sg · PDF fileANNUAL REPORT 2006-2007 Bishan-Toa Payoh...

E N E R G Y S A V I N G F O R T H E C O M M U N I T Y

A N N U A L R E P O R T

2 0 0 6 - 2 0 0 7

Bishan-Toa PayohTown Council

1

Energy Saving For The Community

The media bombards us with news and images of our ailing planet every day. We are

consuming more resources and creating more waste, and if we do not turn the situation

around now, there may not be much left for our future generations to get by.

We all want to have a comfortable life and this leads to consuming more scarce resources. After

centuries of use and abuse, the global outlook is dire and erratic weather patterns and climatic

changes are indicators that planet Earth is not well.

Suddenly, we get heavy rainfall during non-rainy season, massive flooding that destroys homes

and villages, abnormally high temperatures that caused heatwave and have melted the ice-caps,

increased in natural disasters like earthquakes and typhoons. Continued pollution of the air and

waterways will have far-reaching effects on the human and animal population, and that could

threatened our food source and the ability to sustain life.

What can I do, you ask? As end-users we can do our part by not littering and turning-off the

electricity when not in used, among other environmentally-friendly acts. The Town Council has

been experimenting with energy-saving devices that would help to reduce our electrical consumption

significantly. Now is the time to think and act as a responsible global citizen.

CONTENTSBishan-Toa Payoh Town CouncilSixth Term of Office 3

Corporate Information 6

Chairman’s Review 7

Financial Statements 12

2

“Our mission is to provide a

clean, green, well maintained

and healthy environment for

the residents, through close

co-operation with the residents,

grassroots organisations and

related government agencies.”

3

A d v i s o r s

Establ ishment CommitteeAdvisor: Mr Zainudin Nordin

Mr Zainudin Nordin

Mayor for Central SingaporeDistrict

MP for Bishan-Toa Payoh GRC

Chairman of Bishan-ToaPayoh Town Council

Advisor to Bishan-Toa PayohNorth GrassrootsOrganisations

Mr Wong Kan Seng

Deputy Prime Minister &Minister for Home Affairs


Advisor to Bishan-Toa PayohTown Council

Advisor to Bishan EastGrassroots Organisations

Dr Ng Eng Hen

Manpower Minister andSecond Minister for Defence


Elected Member of Bishan-Toa Payoh Town Council

Advisor to Toa Payoh CentralGrassroots Organisations

Mr Hri Kumar Nair


Vice-Chairman of Bishan-ToaPayoh Town Council

Advisor to ThomsonGrassroots Organisations

Mrs Josephine Teo


Vice-Chairman of Bishan-ToaPayoh Town Council

Advisor to Toa Payoh EastGrassroots Organisations

Mr Cheng Wai KeungVice-Chairman

Mr Teh Hee SeangChairman

Mr Er Kwong WahMember

Mr Ling Ming ChuanCEO/Secretary

Mr Gregory TangWee ThiangMember

Mr Yee Fook HongMember

4

F inance & Administrat ion CommitteeAdvisor: Dr Ng Eng Hen

Co-Opted Members

Helen Wee Lian Ngoh

Jennifer Wong Kwai Fong

Abdul Rahman Mohamed

AmarSingh s/o Soun Singh

Vincent Tan Tee Huat

Texas Loh Kia How

Fabian Yeo

Mr Yee Fook HongChairman

Mr Poh Puay EngVice-Chairman

Mr Roy ChengSiew CherngMember

Mr Chia Pen ChuenMember

Mr Larry Lau Hooi SeeMember

Mr Leong Fook WingMember

Mr Lim Joo LyeMember

Ms Lim Siew HoonMember

Mr S U NathanMember

Mr Soh Chee LingBennyMember

Mr Tan Kee KhoonMember

Mr Yeo Hiang MengMember

Tenders & Contracts CommitteeAdvisor: Mrs Josephine Teo

Mr Sitoh Yih Pin2nd Advisor

Mr Gregory TangWee ThiangChairman

Mr Mohd Yusof BinAbdullahMember

Mr Chia Ah SahRogerVice-Chairman

Ms Chua Geok LanMember

Ms Catherine LeeMember

Ms Lee Ker HwaMember

Mr Ling Tuck MunMember

Mr Henry NgBoon HweeMember

Mr RT Xavier SamyMember

Mr Tan Kia SengMember

Ms Tay Mok LanMember

Ms Patricia TohBee LanMember

Co-Opted Members

Ahmad Alif Lim

Doris Chan

Wong Thian Hock

Patrick Ng Choon Chwee

Mohamed Farook

Poo Chee Kuen

Sim Hock Soon

Mr Joseph LauPub TaaiMember

Mr Raymond TeohMember

Mr Anthony KiongBeng HoeMember

Mr Khoo Kay ChaiMember

Mr Lim Tau JeowLawrenceMember

Mr Leong Chong MengMember

Ms Doris ChanGek HiaMember

Mr Lai Kah SengVice-Chairmen

Mr Azman BinYahayaMember

Mr David ChooYong KeeMember

Advisor: Mr Hri Kumar Nair

Environment & Development Committee

Community Relat ions CommitteeAdvisor: Mr Zainudin Nordin

5

Mr Cheng Wai KeungChairman

Mr Jason LeongWai HoongMember

Ms Paridah BteYusopMember

Ms Frances TangPo TimMember

Mr Yeo Suay TeeMember

Co-Opted Members

Paul Sabaratnam

Mazlan Bin Jalil

Lau Juay Hor

Chong Ngee

Chia Han Heng

Frankie Tong Kit Rong

Christina Kwek

Mr Er Kwong WahChairman

Mr CheongChee OnnVice-Chairman

Mr Chow Tak NeoMember

Mr Victor ChuMember

Dr PremaraniKannusamyMember

Mr Lim Yi AndyMember

Ms Sophia SuMember

Co-Opted Members

Winston Chua Seng Chye

Siti Rohanah Bte Mohd Koid

Wong Tian Hock Roger

Stracey @ Anbukkarasid/o Sakadevan Naidu

Poon Wai Mun

V Balakrishnan

Fiona Lim

Toa Payoh OfficeBlock 125A #01-134 Lorong 2 Toa Payoh. Singapore 311125Tel: 6259 6700 Fax: 6259 9626

Bishan OfficeBlock 197 #01-585 Bishan Street 13. Singapore 570197Tel: 6259 6700 Fax: 6356 7388

Websitewww.btptc.org.sg

[email protected]

Operating Hours8.00am - 5.30pm (Monday to Friday)8.00am - 12 noon (Saturday)

Contact / Operating Hours

Corporate Information

6

Bishan-Toa Payoh Town Council

Bishan-Toa PayohTown Council

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.

Bishan-Toa Payoh Town Council Logo

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 2007** Figures are approximated

HDB Blocks Managed by Town Council

7

fortunate to have a good team of dedicated professionals and committed Council

members to serve the people. This has made the task of rolling out our Five-Year

programme smoother.

C h a i r m a n ' s R e v i e w

It is a privilege for me to be able to report yet another successful and

fruitful year for the Town Council.

We have focused on the rejuvenation of Bishan-Toa Payoh Town through

the tireless implementation of infrastructure projects in the estate. There

was a lot that needed to be done and I am pleased to say that we are

The challenges that we face are great. Toa Payoh is more than 30 years old,

and many of its facilities and infrastructures need to be replaced or upgraded.

On this note, we have implemented the construction of many physical structures.

We have completed the Main Upgrading Programme (MUP) and are currently

conducting the Town Council Lift Upgrading Programme (TC-LUP).

Altogether, two TC-LUP were carried out, benefiting some 500 households.

This was possible because of the residents’ support for the TC-LUP.

We have also done well financially. I am pleased to report that we are on

stable ground, with a net operating surplus of $2.4 million that will go into

our reserves. Our sinking fund stood at $137.9 million at the close of this

financial year. Our healthy reserve is a result of our cost-consciousness in

keeping a close eye on our operations, where great detail was placed on our

expenditures to yield maximum value.

The Town Council’s approach is to put a premium on the projects that we embarked on. We gathered

feedback and engaged both residents and grassroots leaders before going to the drawing board

to work with designers, architects, engineers and builders. We looked at the needs of each division

and took an overview of how best to develop them within the context of our town. Altogether

we invested $3 million on town improvement projects during this fiscal year to provide covered

linkways, drop-off points, BBQ pits, elderly fitness corners, children’s playgrounds, study corners

and multi-purpose courts.

We are mindful of the needs of the community, and have taken steps to modernise and bring them

greater access, mobility and convenience.

Fitness corners were set up for the elderly and playgrounds were built for the young children. Ever

mindful of the growing, active youth and families, street soccer

courts, open courtyards and covered pavilions were also put up

for them. With a town that is steadily blooming, I am happy to

say that we are attracting younger working adults and families

to make their homes in Bishan-Toa Payoh GRC.

8

Planning & Improving the Town

Our town improvement projects, upgrading programmes, and repairs and redecoration works have contributed greatly

to the physical landscape of the estate. This has indeed improved the living environment and provides for a quality lifestyle.

Truly, we can look back with pride at our achievements.

Energy Conservation

Rising energy costs have prompted the Town Council to take a proactive stance on seeking better ways to conserve energy.

Hence, the Council has to constantly study and apply newer, more energy-efficient technologies in the cleaning and

maintenance of the estate. One area in which these measures have already been implemented is

in public lighting, and this has proven to have a substantial rate of effectiveness.

The Council has also been gradually upgrading the common areas with more energy-efficient

lighting with the installation of fluorescent lamps equipped with electronic ballasts. These “T8”

lamps provided a cost-savings of 14% when compared to those using the conventional magnetic

ballasts. Now, we have gone even further from using “T8” fluorescent lamps to the “T5” type, which

offer even lower energy consumption with better aesthetic design. A total of 31 blocks will be

equipped with the "T5" lighting by September 2008 and cost savings of about 30% are expected.

In addition, Energy Saving Devices (ESD) was introduced for use in public lighting to regulate

electrical supply, and provide savings of about 25% to 30%. These devices were installed in 29 blocks

and 9 multi-storey carparks in 2006.

We are also currently working hand-in-hand with the Housing & Development Board (HDB) to

develop measures that can help conserve energy within buildings and their immediate vicinity. To

this end, various energy conservation methods have been studied and this includes the usage of

solar panel systems and additionally, the application of LEDs, dimmable lighting and energy-efficient mechanical and

electrical equipment.

Looking ahead, we will continually move to introduce new initiatives and culminate greater efforts to adopt appropriate

energy conservation measures for our estate. These will augment our building facilities with a higher degree of energy-

efficiency, which will lead to lower costs and better environmental sustainability.

9

Delivering Your Expectations

The Town Council management will strive to identify the needs of residents and meet your expectations. Of course, some

expectations will be realised sooner than others, depending on the availability of resources.

A major project we have started is the Barrier-Free Access (BFA). Our town has to be resident-friendly for the people. We

have not forgotten the elderly, the children and the disabled persons too. We built railings, ramps and anti-slip tiles to

allow these residents greater access and mobility around the estate. The close co-operation between the GROs and Town

Council has facilitated the quick identification of such sites for BFA development.

As Singaporeans continue to embrace a healthy lifestyle, the Town

Council has provided the facilities, and will continue to introduce new

equipment to promote health and fitness. There are jogging tracks and

exercise corners with fitness equipments to add vigour and convenience

for their own workout. These workout stations also act as a

central place for residents to meet and bond together as a community.

Creating places as focal points for residents to meet and socialise has

strengthened the community spirit. “De Courtyard” at Bishan Street 22 is one such development that has crystalised into

a venue for residents to engage socially and be entertained by the many cultural events

staged there.

10

The Town Council introduced the “DengueALERT SMS” to residents to keep them informed

of the dengue situation. Our web site has a dengue site that provides the latest information

of dengue clusters in our estate and preventive measures that residents would find useful.

Responsible Home Ownership and Neighbourliness

Managing a township goes beyond just tending to the physical infrastructure, providing good regular maintenance and

attending swiftly to breakdowns and carrying out repairs.

The Town Council believes that it is our job to remind residents of the need to be socially-responsible citizens, and to

adopt good social habits especially within a densely-populated high-rise environment. Some basic common sense and

neighbourliness will certainly help to achieve a pleasant and friendly living environment for all.

The Town Council is hence active in promoting a range of campaigns with themes such as keeping the estates free from

bulky items, encouraging residents not to display potential killer litter items along their corridors and window ledges that

may pose a danger to others, and advising on the dangers of

mosquito breeding and the preventive measures.

I am encouraged that more stakeholders of the community

i.e. residents, merchants and GRLs understand the role that they

play to make the efforts and work of the Town Council more

meaningful and thus contribute to the overall positive development

of Bishan-Toa Payoh town.

Zainudin NordinMayor for Central Singapore District and

Chairman of Bishan-Toa Payoh Town Council

11

F INANCIAL STATEMENTSBishan-Toa Payoh Town CouncilEstablished under the Town Councils Act, Cap. 329A

Audited Financial Statements for the Financial Year Ended 31 March 2007

C O N T E N T SAuditors' 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 18

13


Independent Auditors’ Report To Bishan-Toa Payoh Town Council

We have audited the accompanying fi nancial statements of Bishan-Toa Payoh Town Council, which comprise the balance sheet as at 31 March 2007, and the statement of income and expenditure, statement of changes in funds and cash fl ow statement for the year then ended, and a summary of signifi cant accounting policies and other explanatory notes.

Town Council’s Responsibility for the Financial StatementsThe Town Council is responsible for the preparation and fair presentation of these fi nancial statements in accordance with the provisions of the Town Councils Act, Cap. 329A (“the Act”) and Singapore Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of fi nancial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Independent Auditor’s ResponsibilityOur responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Town Council, as well as evaluating the overall presentation of the fi nancial statements.

We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion,(a) the accompanying financial statements are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Town Council as at 31 March 2007 and the results, changes in funds and cash fl ows of the Town Council for the year ended on that date; and

(b) the accounting and other records required by the Act to be kept by the Town Council have been properly kept in accordance with the provisions of the Act.

During the course of our audit, nothing came to our notice that caused us to believe that the receipt, expenditure and investment of monies and the acquisition and disposal of assets by the Town Council during the fi nancial year have not been made in accordance with the provision of the Act.

RSM Chio Lim Certifi ed Public AccountantsSingapore5 June 2007

14


Balance Sheet as at 31 March 2007

Notes 2007$

2006$

Non-current assetsPlant and equipment 3 761,317 45,345

761,317 45,345Current assetsInvestments in fi nancial assets 4 100,287,745 90,692,696Conservancy and service debtors 5 1,518,322 1,602,673Other receivables 194,725 706,970Interest receivable 587,095 383,440Grants receivable 1,070,048 512,804Fixed deposits with fi nancial institutions 6 42,349,345 44,477,408Bank and cash balances 6 7,591,267 6,759,388

153,598,547 145,135,379Current liabilitiesGrants received in advance 8,818 107,784Conservancy and service fees received in advance 360,179 352,947Payables and accrued expenses 7 5,742,198 4,659,462Current tax payable 976,492 771,045

7,087,687 5,891,238Net current assets 146,510,860 139,244,141

147,272,177 139,289,486

Town Council Funds

Residential property fundsAccumulated surplus 8 2,860,057 4,564,869Sinking fund 9 114,018,146 95,518,292Town improvement and project fund 10 4,249,522 13,917,626

121,127,725 114,000,787Commercial property fundsAccumulated surplus 8 1,081,646 1,582,818Sinking fund 9 23,929,609 18,701,351Town improvement and project fund 10 1,052,360 3,576,064

26,063,615 23,860,233Carpark fundAccumulated (defi cit)/surplus 8 (140,264) 509,427Interim upgrading programme fund 11 156,435 943,967Estate upgrading programme fund 12 64,666 (24,928)

147,272,177 139,289,486

Zainudin Nordin Ling Ming ChuanChairman Secretary5 June 2007

The accounting policies and explanatory notes on pages 18 to 36 form an integral part of the fi nancial statements.

15


Statement of Income and Expenditure for the fi nancial year ended 31 March 2007

Notes 2007$

2006$

Operating incomeConservancy and service fees 8 30,543,818 31,001,865Less : Operating transfer to sinking funds 8 (10,236,433) (10,378,699)

20,307,385 20,623,166Agency fees 1,642,718 1,630,992Other income 1,290,534 1,442,889

23,240,637 23,697,047Less: Operating expenditureCleaning works 5,172,260 5,111,379Lift maintenance 2,883,652 2,830,407Other works and maintenance 4,226,536 3,615,473Water and electricity 7,096,625 5,980,873General and administrative expenditure 16 6,210,409 5,888,022

(25,589,482) (23,426,154)

Operating (defi cit)/surplus (2,348,845) 270,893Add: Interest income 324,199 209,610

(Defi cit)/surplus before taxation and government grants (2,024,646) 480,503Taxation 14 – (395,533)(Defi cit)/surplus before government grants (2,024,646) 84,970

Government grants 8, 13 7,925,740 8,434,934Less: Transfer to- sinking fund (2,008,505) (2,097,875)- town improvement and project fund (1,917,070) (2,414,841)Add: GST subvention 8, 13 397,454 670,308

4,397,619 4,592,526Surplus for the fi nancial year 2,372,973 4,677,496Add: Accumulated surplus at 1 April 8 6,657,114 3,979,618Less: Transfer to sinking fund 9 (3,728,648) -

5,301,439 8,657,114

Less: Appropriation to town improvement and project fund 8 (1,500,000) (2,000,000)Accumulated surplus at 31 March 8 3,801,439 6,657,114

Zainudin Nordin Ling Ming ChuanChairman Secretary5 June 2007


16


Statement of Changes in Funds for the fi nancial year ended 31 March 2007


Residential property

funds$

Commercial property

funds$

Car parkfund

$

Interim upgrading

project fund$

Estateupgrading

project fund$

Total$

Balance at 31 March 2005 102,568,918 21,538,496 572,809 23,328 31,454 124,735,005

Effects of adoption of FRS 39 2,731,782 250,513 – – – 2,982,295

Balance at 1 April 2005 - restated 105,300,700 21,789,009 572,809 23,328 31,454 127,717,300

Surplus/(defi cit) for the fi nancial year* 8,700,087 2,071,224 (63,382) 920,639 (56,382) 11,572,186

Balance at 31 March 2006 114,000,787 23,860,233 509,427 943,967 (24,928) 139,289,486

Surplus/(defi cit) for the fi nancial year* 7,126,938 2,203,382 (649,691) (787,532) 89,594 7,982,691

Balance at 31 March 2007 121,127,725 26,063,615 (140,264) 156,435 64,666 147,272,177

Notes 2007 2006$ $

* Accumulated surplus 8 2,372,973 4,677,496Sinking fund 9 7,847,284 6,806,687Town improvement and project fund 10 (1,539,628) (776,254)Interim upgrading programme fund 11 (787,532) 920,639Estate upgrading programme fund 12 89,594 (56,382)

7,982,691 11,572,186

17


Notes 2007$

2006$

Cash fl ows from operating activities(Defi cit)/surplus before taxation and government grants 8 (2,024,646) 480,503Adjustments for: Depreciation of plant and equipment 3 61,692 60,685 Interest income (324,199) (209,610)

Operating (defi cit)/surplus before working capital changes (2,287,153) 331,578(Increase) in debtors (9,112,547) (4,384,842)Increase in creditors 1,096,279 483,619

Cash used in operations (10,303,421) (3,569,645)Income tax paid (525,473) (482,032)(Decrease)/increase in sinking fund (4,188,263) (1,600,157)Decrease in town improvement and project fund (3,581,924) (3,158,262)Payment of expenses for interim upgrading projects 11 (1,966,928) (2,679,291)Payment of expenses for estate upgrading projects 12 (3,306) (56,382)

Net cash fl ow used in operating activities (20,569,315) (11,545,769)

Cash fl ows from investing activitiesPurchase of plant and equipment 3 (777,664) –Placement of funds with fund managers 4 – (4,198,513)Investment and interest income received 11,003,732 4,229,992

Net cash fl ow provided by investing activities 10,226,067 31,479

Cash fl ows from fi nancing activitiesGovernment funds received for interim upgrading projects 11 1,179,396 3,599,930Government funds received for estate upgrading projects 12 92,900 –Government grants received 13 7,377,314 8,112,321GST subvention received 13 397,454 670,308

Net cash fl ow provided by fi nancing activities 9,047,064 12,382,559

Net (decrease)/increase in cash and cash equivalents (1,296,184) 868,269

Cash and cash equivalents at beginning of fi nancial year 6 51,236,796 50,368,527

Cash and cash equivalents at end of fi nancial year 6 49,940,612 51,236,796

Cash Flow Statement for the fi nancial year ended 31 March 2007


18


Notes to the Financial Statements 31 March 2007

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 1997. 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 offi ce is situated at:

Blk 125A Lorong 2

Toa Payoh #01-134

Singapore 311125

As at 31 March 2007, the Town Council had 72 (2006 : 75) employees.

2 Summary of signifi cant accounting policies

(a) Accounting convention

The fi nancial statements are prepared under the historical cost convention except where an FRS require an alternative treatment

(such as fair values) as disclosed where appropriate in these fi nancial statements.

(b) Basis of preparation of fi nancial statements

The preparation of fi nancial statements in conformity with generally accepted accounting principles requires the management to

make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and

liabilities at the date of the fi nancial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates. The estimates and assumptions are reviewed on an ongoing basis. Apart from those

involving estimations, management has made judgements in the process of applying the entity’s accounting policies. The areas

requiring management’s most diffi cult, subjective or complex judgements, or areas where assumptions and estimates are signifi cant

to the fi nancial statements, are disclosed at the end of this footnote, where applicable.

19



(c) Funds

Town Council Funds

In accordance with Section 33(1) of the Town Councils Act, separate funds were established to account for the management of the

various types of properties. The types of properties under the management of the Town Council are as follows:

Residential property

Commercial property

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 Council

Funds.

Under the Town Councils Act, the Minister for National Development may, from time to time, prescribe the minimum amounts of

conservancy and service fees and grants-in-aid to be paid into the Sinking Funds.

The minimum amounts 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 are netted off against the conservancy and service fees and

government grants in the Income and Expenditure Statement.

20



The Sinking Funds are utilised for cyclical major repainting, renewal or replacement of roofi ng systems, water tanks, pumps and water

supply systems, lightning protection systems and lifts, major repairs and maintenance of the common area and contributions to the

HDB in respect of general upgrading works carried out on the common property under the Housing and Development Act.

Town Improvement and Project Funds

Town Improvement and Project Funds are established and maintained as part of the Town Council Funds. These funds are utilised for

improvement and development works in the Town.

The funds are set up by transfer from the Accumulated Surplus based on specifi c 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 an estate improvement programme to upgrade the common areas and physical

environment of qualifying properties. This upgrading scheme was entered into between the Town Council, HDB and the Ministry for

National Development.

Miscellaneous IUP expenditure is pegged at 8.11% of the IUP fund and the Town Council may transfer the difference between the

actual and the pegged expenditure to its Income and Expenditure Statement.

Estate Upgrading Programme Fund

The Estate Upgrading Programme (“EUP”) is for enhancement works 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 specifi cally to any property type managed, for example, administrative overheads, tree planting, pruning etc

are allocated to the various property types using equivalent dwelling units as follows:

Property Type Equivalent Dwelling Unit(s)

1 Residential Property Unit 1

1 Commercial Property Unit 2

6 Car Lots or 36 Motor Cycle Lots or 4 Lorry Lots 1

No overheads are allocated to the Sinking Funds and Town Improvement and Project Funds.

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(e) Government grants

The Town Council receives two types of grants from the Government, namely, Conservancy and Service Grant and payments from

Citizens’ Consultative Committee.

Government grants are accounted for on accrual basis. Grants to meet the current fi nancial 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 plant and equipment. The annual rates of depreciation are as follows:

Furniture, fi xtures and fi ttings - 20%

Offi ce equipment - 33.33%

Data processing equipment/software - 33.33%

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 fi nancial statements.

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 fi nancial 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 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.

Cost also includes acquisition cost, any cost directly attributable to bringing the asset to the location and condition necessary for it to

be capable of operating in the manner intended by management. Subsequent cost are recognised as an asset only when it is probable

that future economic benefi ts associated with the item will fl ow to the entity and the cost of the item can be measured reliably. All

other repairs and maintenance are charged to the income statement when they are incurred.

(g) Investments in fi nancial assets

Investment in fi nancial assets are funds placed with fund managers which comprise mainly of equities, bonds and cash and fi xed bank

deposits.

Investments with a quoted market price in an active market and derivatives that are not designated as hedges are classifi ed as

fi nancial assets held for trading or those designated at fair value through profi t or loss at inception. They are initially measured at fair

value plus directly attributable transaction costs and are classifi ed as current assets. After initial recognition such fi nancial assets are

22



measured at fair value using the portfolio basis based on current bid prices, without any deduction for transaction costs that may be

incurred on sale or other disposal. A gain or loss on remeasuring fi nancial 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 signifi cant. Conservancy and service debtors are stated after provision for impairment. A conservancy

and service debtor amount is regarded as impaired if there is objective evidence of impairment as a result of one or more events that

occurred after the initial recognition and that loss event has an impact on the estimated future cash fl ows of the fi nancial 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 fi nancial assets with fi xed or determinable payments that are not quoted in an active market,

other than: (a) those that the entity intends to sell immediately or in the near term and are classifi ed as held for trading, and those that

the entity upon initial recognition designates as at fair value through profi t or loss; (b) those that the entity upon initial recognition

designates as available for sale; or (c) those for which the holder may not recover substantially all of its initial investment, other

than because of credit deterioration and are classifi ed as available for sale. After initial recognition such fi nancial assets, including

derivatives that are assets, are measured at their fair values, without any deduction for transaction costs that may be incurred on

sale or other disposal, except for the non-current fi nancial assets that are loans and receivables which are measured at amortised

cost using the effective interest method less provision for impairment. These items are included in the balance sheet in loans and

receivables as current assets or as non-current assets where the maturities are greater than 12 months after the balance sheet date.

(j) Impairment of non-fi nancial 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 and expenditure 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 cash-generating 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 fl ows are discounted to their present value using a pre-tax discount rate that refl ects current market assessments of the

time value of money and the risks specifi c to the asset. For the purposes of assessing impairment, assets are grouped at the lowest

levels for which there are separately identifi able cash fl ows (cash-generating units). At each reporting date non-fi nancial assets other

than goodwill with impairment loss recognised in prior periods are assessed for possible reversal of the impairment. An impairment

loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been

determined, net of depreciation or amortisation, if no impairment loss had been recognised.

23



(k) Impairment of fi nancial assets

All fi nancial assets except those measured at fair value through profi t or loss are subject to review for impairment. A fi nancial asset

or a group of fi nancial 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 fl ows of the fi nancial asset or group of fi nancial assets that can be reliably estimated. Losses expected

as a result of future events, no matter how likely, are not recognised.

(l) Financial liabilities

Financial liabilities at fair value through profi t or loss when recognised initially are measured at fair value. Financial liabilities not

at fair value through profi t or loss are measured at fair value plus transaction costs that are directly attributable to the acquisition

or issue of the fi nancial liability. After initial recognition fi nancial liabilities at fair value through profi t or loss, including derivatives

that are fi nancial liabilities, are measured at fair value. Other fi nancial liabilities not at fair value through profi t or loss are measured

at amortised cost and any difference between the proceeds (net of transaction costs) and the redemption value is recognised in

the income and expenditure statement over the period of the borrowings using the effective interest method. Financial liabilities

including bank and other borrowings are classifi ed as current liabilities unless there is an unconditional right to defer settlement of

the liability for at least 12 months after the balance sheet date. Items classifi ed within payables and accrued expenses are not usually

re-measured, as the obligation is usually known with a high degree of certainty and settlement is short-term.

(m) 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 outfl ow of resources embodying economic benefi ts will be required to settle the obligation and a reliable estimate can be

made of the amount of the obligation. These include payables and accrued expenses 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 refl ects current market assessments of the time value of money and the risks specifi c to the obligation. The increase

in the provision due to passage of time is recognised as interest expense.

(n) Lease as a lessee

Leases where the lessor effectively retains substantially all the risks and benefi ts of ownership of the leased assets are classifi ed as

operating leases. For operating leases, lease payments are recognised as an expense in the income statement on a straight-line basis

over the term of the relevant lease unless another systematic basis is representative of the time pattern of the user’s benefi t, even if

the payments are not on that basis. Lease incentives received are recognised in the income and expenditure statement as an integral

part of the total lease expense.

(o) Taxation

Tax is provided on the following income:

(i) Income derived from investments;

24



(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.

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 fi nancial

statements or tax returns. The measurements of current and deferred tax liabilities and assets are based on provisions of the enacted

or substantially enacted tax laws; 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 benefi ts that, based on available evidence, are not expected to be realised. A deferred

tax amount is recognised for all temporary differences.

(p) Revenue recognition

The revenue amount is the fair value of the consideration received or receivable from the gross infl ow of economic benefi ts during

the year arising from the course of the ordinary activities of the entity and it is shown net of related tax, estimated returns, discounts

and volume rebates.

Conservancy and service fees are recognised when due.

Agency fees are fees received for routine maintenance of HDB’s carparks and are recognised when due.

Interest income from fi xed deposits is recognised as the interest accrues (taking into account the effective yield on the asset) unless

collectibility is in doubt. Income from funds placed with Fund Managers is recognised when realised or upon the expiry of the fund

management term.

(q) Employee benefi ts

Contributions to defi ned contribution retirement benefi t 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 benefi t plan such as the Central Provident Fund in Singapore. For employee leave entitlement the expected cost of short-

term employee benefi ts in the form of compensated absences is recognised in the case of accumulating compensated absences, when

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. A liability for bonuses is recognised where the entity is contractually obliged or

where there is constructive obligation based on past practice.

25



(r) Cash and cash equivalents

Cash and cash equivalents include cash and bank balances, demand deposits and short-term, highly liquid investments readily

convertible to known amounts of cash and subject to an insignifi cant risk of change in value. Cash for the cash fl ow statement

includes cash and cash equivalents less bank overdrafts payable on demand that form an integral part of cash management and cash

subject to restriction. Other fi nancial assets and fi nancial liabilities at fair value through profi t or loss are presented within the section

on operating activities as part of changes in working capital in the cash fl ow statement.

(s) Fair value of fi nancial instruments

The carrying values of current fi nancial assets and fi nancial liabilities including cash, accounts receivable, accounts payable approximate

their fair values due to the short-term maturity of these instruments. Disclosure of fair value is not made when the carrying amount

is a reasonable approximation of fair value. The maximum exposure to credit risk is the fair value of the fi nancial instruments at the

balance sheet date.

(t) 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 signifi cant

effect on the amounts recognised in the fi nancial statements. There were no key assumptions concerning the future, and other

key sources of estimation uncertainty at the balance sheet date, that have a signifi cant risk of causing a material adjustment to the

carrying amounts of assets and liabilities within the next fi nancial year.

(u) General risk management principles

The Town Council’s fi nancial instruments comprise some cash and liquid resources, and various items, such as investment in fi nancial

assets, conservancy and service debtors and other receivables, trade and other payables, that arise directly from its operations. The

main risks arising from the fi nancial instruments are credit risk and interest risk. The Town Council is not exposed to any foreign

exchange risk and there is no signifi cant liquidity risk as it maintains suffi cient cash. The Town Council’s review on the policies for

managing these risks are summarised in (v) and (w) below.

(v) Credit risk on fi nancial assets

Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to discharge their obligations

consist principally of cash, cash equivalents, conservancy and service debtors and other accounts receivable. The Town Council believes

that the fi nancial risks associated with these fi nancial instruments are minimal. The cash and cash equivalents and other liquid

fi nancial assets are placed with high credit quality institutions. An ongoing credit evaluation is performed of the debtors’ fi nancial

condition and a loss from impairment is recognised in the income and expenditure statement. There is no signifi cant concentration

of credit risk, as the exposure is spread over a large number of counterparties and customers.

(w) Other risks on fi nancial instruments

The major risk arising from the Town Council’s fi nancial instruments is interest risk, which relates to interest rate price risk for fi nancial

26



instruments with a fi xed interest rate and to interest rate or cash fl ow risk for fi nancial instruments with a fl oating interest rate that

is reset as market rates change. Interest rate swaps are not used to generate the desired interest profi t and to manage the exposure

to interest rate fl uctuations.

3 Plant and equipment

CostAt 1 April 2005 1,088,383 262,667 2,246,156 61,138 3,658,344Disposals – – – (61,138) (61,138)At 31 March 2006 1,088,383 262,667 2,246,156 - 3,597,206

Accumulated depreciation

At 1 April 2005 1,050,005 257,479 2,183,693 61,137 3,552,314Additions 18,890 3,355 38,439 1 60,685Disposals – – – (61,138) (61,138)At 31 March 2006 1,068,895 260,834 2,222,132 – 3,551,861

Net book valueAt 31 March 2006 19,488 1,833 24,024 – 45,345

CostAt 1 April 2006 1,088,383 262,667 2,246,156 – 3,597,206Additions 32,099 7,050 738,515 – 777,664At 31 March 2007 1,120,482 269,717 2,984,671 – 4,374,870

Accumulated depreciationAt 1 April 2006 1,068,895 260,834 2,222,132 – 3,551,861Additions 11,118 3,028 47,546 – 61,692At 31 March 2007 1,080,013 263,862 2,269,678 – 3,613,553

Net book valueAt 31 March 2007 40,469 5,855 714,993 – 761,317

Furniture,fi xtures and

fi ttings$

Offi ceequipment

$

Dataprocessing equipment/

software$

Motorvehicles

$Total

$

27



4 Investments in fi nancial assets

This represents funds and related profi ts 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 Agreements entered in with these fund managers, for a fi xed period of time. The terms and conditions may change upon the

re-appointment of the fund managers.

(i) As at 31 March 2007, the Town Council has arrangements with certain fund managers to guarantee in aggregate the principal amount

of $63,500,000 (2006 : $63,500,000) 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 specifi ed 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.

2007 2006$ $

Balance at beginning of fi nancial year 90,692,696 77,800,796

Effects of adopting FRS39 on 1 April 2005 – 2,982,295Additions during the fi nancial year – 4,198,513Accrued income for the fi nancial year 3,939,871 3,495,320Administrative fee accrued (112,509) (82,714)Increase in fair value during the year 5,767,687 2,298,486

Fair value at the end of the fi nancial year 100,287,745 90,692,696

As at the balance sheet date, the funds invested with fund managers comprise the following:

2007 2006$ $

At fair value At fair value

Equities 28,877,600 11,795,432

Bonds 30,628,390 23,365,242Unit trusts 39,135,506 47,977,841Cash and fi xed deposits 1,646,249 7,554,181

Total 100,287,745 90,692,696

28



5 Conservancy and service debtors

2007 2006$ $

Conservancy and service debtors 1,518,322 1,602,673

Conservancy and service debtors are stated after providing for impairment of $245,948 (2006 : $217,079).

The movement in provision for impairment is as follows:

Balance at beginning of fi nancial year 217,079 217,079Additions during the fi nancial year 28,869 –

Balance at end of fi nancial year 245,948 217,079

6 Cash and cash equivalents

Cash and cash equivalents included in the cash fl ow statement comprise the following balance sheet amounts:

Fixed deposits with fi nancial institutions 42,349,345 44,477,408Bank and cash balances 7,591,267 6,759,388

49,940,612 51,236,796

Fixed deposits placed with banks have maturities ranging from 1 month to 12 months and bear interest ranging from 2.750% to 3.500%

per annum (2006 : 3 weeks to 12 months and bear interest ranging from 1.900% to 3.325% per annum). These approximate the weighted

effective interest rate.

7 Payables and accrued expenses

Sundry deposits 227,931 221,945Accrued operating expenses 177,872 239,483Outside parties 5,336,395 4,198,034

5,742,198 4,659,462

The other payables are with short-term durations. The carrying amounts are assumed to be reasonable approximation of fair values.

29



8 Accumulated surplus

The surplus for the fi nancial year attributable to the various activities is carried forward as accumulated surplus in the respective funds as follows:

Residential Property Commercial Property Carpark Total Notes 2007 2006 2007 2006 2007 2006 2007 2006

$ $ $ $ $ $ $ $

Operating income

Conservancy and service fees 27,312,011 27,751,814 3,231,807 3,250,051 – – 30,543,818 31,001,865

Less: Operating transfer to

Sinking Fund 9 (9,105,299) (9,241,180) (1,131,134) (1,137,519) – – (10,236,433) (10,378,699)

18,206,712 18,510,634 2,100,673 2,112,532 – – 20,307,385 20,623,166

Agency fees and other income 616,573 757,099 593,062 599,134 1,723,617 1,717,648 2,933,252 3,073,881

18,823,285 19,267,733 2,693,735 2,711,666 1,723,617 1,717,648 23,240,637 23,697,047

Less: Operating expenditure (21,569,345) (19,874,823) (1,949,585) (1,786,715) (2,070,552) (1,764,616) (25,589,482) (23,426,154)

Operating surplus/(defi cit) (2,746,060) (607,090) 744,150 924,951 (346,935) (46,968) (2,348,845) 270,893

Add: Non-operating income 270,433 175,144 24,766 16,033 29,000 18,433 324,199 209,610

Surplus/(defi cit) before taxationand government grants (2,475,627) (431,946) 768,916 940,984 (317,935) (28,535) (2,024,646) 480,503

Less: Taxation 14 – (330,438) – (30,248) – (34,847) – (395,533)

Surplus/(defi cit) before government grants (2,475,627) (762,384) 768,916 910,736 (317,935) (63,382) (2,024,646) 84,970

Add: Government grants 13 7,724,702 8,285,873 201,038 149,061 – – 7,925,740 8,434,934

Add: GST subvention 13 397,454 670,308 – – – – 397,454 670,308

Less: Transfer to sinking funds 9, 13 (2,008,505) (2,097,875) – – – – (2,008,505) (2,097,875)

Transfer to town improvement and project funds 10, 13 (1,716,032) (2,265,780) (201,038) (149,061) – – (1,917,070) (2,414,841)

4,397,619 4,592,526 – – – – 4,397,619 4,592,526

Surplus/(defi cit) for the fi nancial year 1,921,992 3,830,142 768,916 910,736 (317,935) (63,382) 2,372,973 4,677,496

Accumulated surplus at 1 April 4,564,869 2,234,727 1,582,818 1,172,082 509,427 572,809 6,657,114 3,979,618

Add: Transfer from carpark to residential 331,756 – – – (331,756) – – –

Less: Transfer to sinking fund 9 (2,584,404) – (1,144,244) – – – (3,728,648) –

4,234,213 6,064,869 1,207,490 2,082,818 (140,264) 509,427 5,301,439 8,657,114

Less: Appropriation to town improvement and project funds 10 (1,374,156) (1,500,000) (125,844) (500,000) –

–

(1,500,000) (2,000,000)

Accumulated surplus/(defi cit) at 31 March 2,860,057 4,564,869 1,081,646 1,582,818 (140,264) 509,427 3,801,439 6,657,114

30



9 Sinking Funds Residential Property Commercial Property Total

Notes 2007 2006 2007 2006 2007 2006$ $ $ $ $ $

Balance at beginning of fi nancial year 95,518,292 87,189,453 18,701,351 17,241,208 114,219,643 104,430,661

Add:

Transfer from accumulated surplus 8 2,584,404 – 1,144,244 – 3,728,648 –

Transfer from town improvement and project funds 10 9,445,866 – 2,706,314 – 12,152,180 –

Effects of adopting FRS39 – 2,731,782 – 250,513 – 2,982,295

Income 15 4,513,636 3,854,384 892,753 352,980 4,926,993 4,207,364Operating transfer from conservancy andservice fees (minimum required by law) 8 9,105,299 9,241,180 1,131,134 1,137,519 10,236,433 10,378,699Transfer from government grant and GST subvention 8, 13 2,008,505 2,097,875 – – 2,008,505 2,097,875Fair value gains on investment with fund managers 5,283,803 2,105,413 4,488 193,073 5,767,687 2,298,486

20,911,243 17,298,852 2,028,375 1,683,572 22,939,618 18,982,424

Less: Expenditure (13,830,033) (11,521,425) (594,663) (457,431) (14,424,696) (11,978,856)

Less: Taxation 14 (611,626) (180,370) (56,012) (16,511) (667,638) (196,881)

6,469,584 5,597,057 1,377,700 1,209,630 7,847,284 6,806,687

Balance at end of fi nancial year 114,018,146 95,518,292 23,929,609 18,701,351 137,947,755 114,219,643

Represented by:

Current assets

Investments in fi nancial assets 100,287,745 90,692,696

Conservancy and service debtors 507,119 535,293

Other debtors – 346,134

Interest receivable 483,989 210,856

Amount due from accumulated surplus 3,589,323 3,407,616

Fixed deposits with fi nancial institutions 33,631,263 21,359,352

Bank and cash balances 3,276,217 1,446,237

Total assets 141,775,656 117,998,184

Current liabilities

Payables and accrued expenses 3,083,003 3,354,631

Provision for taxation 744,898 423,910

Total liabilities 3,827,901 3,778,541

Net assets 137,947,755 114,219,643

31



10 Town improvement and project funds Residential Property Commercial Property Total

Notes 2007 2006 2007 2006 2007 2006$ $ $ $ $ $

Balance at beginning of fi nancial year 13,917,626 13,144,738 3,576,064 3,125,206 17,493,690 16,269,944

Add:

Income 172,691 265,781 15,817 35,873 188,508 301,654

Payment from citizens’ consultative committee 8, 13 1,716,032 2,265,780 201,038 149,061 1,917,070 2,414,841

1,888,723 2,531,561 216,855 184,934 2,105,578 2,716,495

Less: Expenditure (3,427,145) (3,228,594) (154,779) (231,322) (3,581,924) (3,459,916)

Less: Taxation 14 (57,972) (30,079) (5,310) (2,754) (63,282) (32,833)

(1,596,394) (727,112) 56,766 (49,142) (1,539,628) (776,254)

Less: Transfer to sinking fund 9 (9,445,866) - (2,706,314) - (12,152,180) -

Add: Appropriation from accumulated surplus 8 1,374,156 1,500,000 125,844 500,000 1,500,000 2,000,000

Balance at end of fi nancial year 4,249,522 13,917,626 1,052,360 3,576,064 5,301,882 17,493,690

Represented by:

Current assets

Interest receivable 13,889 120,169

Grants receivable 1,070,048 512,804

Amount due from accumulated surplus 1,543,857 2,104,987

Fixed deposits with fi nancial institutions 2,036,125 13,023,847

Bank and cash balances 917,405 2,146,009

Total assets 5,581,324 17,907,816

Current liabilities

Payables and accrued expenses 177,445 343,665

Provision for taxation 101,997 70,461

Total liabilities 279,442 414,126

Net assets 5,301,882 17,493,690

11 Interim upgrading programme fund

2007 2006$ $

Balance at beginning of fi nancial year 943,967 23,328Government funds received 1,179,396 3,599,930Payment to contractors (1,966,928) (2,679,291)

Balance at end of fi nancial year 156,435 943,967

32



12 Estate upgrading programme fund

2007 2006$ $

Balance at beginning of fi nancial year (24,928) 31,454Government funds received 92,900 –Payment to contractors (3,306) (56,382)

Balance at end of fi nancial year 64,666 (24,928)

13 Government grants

Conservancy and Service Grant Payments from Citizen’s Consultative Committee

Total

Notes 2007 2006 2007 2006 2007 2006$ $ $ $ $ $

Government grants received during the fi nancial year 6,017,488 6,127,877 847,022 1,902,037 6,864,510 8,029,914

Government grants receivable – – 1,070,048 512,804 1,070,048 512,804

Government grants received in advance (8,818) (107,784) – – (8,818) (107,784)

GST subvention received during the fi nancial year 397,454 670,308 – – 397,454 670,308

8 6,406,124 6,690,401 1,917,070 2,414,841 8,323,194 9,105,242

Less:

Transfer to sinking fund 9 (2,008,505) (2,097,875) – – (2,008,505) (2,097,875)

Transfer to town improvement and project fund 10 – – (1,917,070) (2,414,841) (1,917,070) (2,414,841)

4,397,619 4,592,526 – – 4,397,619 4,592,526

The total amount of grants received (including grants received in advance) since the formation of the Town Council is as follows:

2007 2006$ $

Total grants received at beginning of fi nancial year 152,807,992 144,025,363Grants receivable at beginning of fi nancial year and received during the year 512,804 82,407Grants received during the fi nancial year 6,864,510 8,029,914GST subvention received during the fi nancial year 397,454 670,308

Total grants received at 31 March 160,582,760 152,807,992

33



14 Provision for taxation

2007 2006$ $

Provision for taxation in respect of income for the fi nancial year:- current taxation 730,920 506,388- under provision for prior year – 118,859

730,920 625,247

Taken up in:

Income and expenditure statement (Note 8) – 395,533Sinking fund (Note 9) 667,638 196,881Town improvement and project fund (Note 10) 63,282 32,833

730,920 625,247

A reconciliation between the tax expense and the product of accounting taxable income multiplied by the applicable tax rate for the years ended 31 March is as follows:

Investment and interest income 3,025,190 2,641,613Dividend income 410,568 183,376Other income 495,749 531,244

3,931,507 3,356,233

Tax at the statutory rate of 18% (2006 : 20%) 707,671 671,247Singapore statutory stepped income exemption (27,450) (10,500)Others 50,699 (35,500)

730,920 625,247

15 Income on sinking fund

Income from investment with fund managers 3,827,362 3,652,434Interest income from bank and fi xed deposits 1,095,629 552,932Others 4,002 1,998

4,926,993 4,207,364

34



16 General and administrative expenditure

2007 2006$ $

Advertising, publicity and public relations 279,527 361,394Audit fees 21,000 19,500Computers services 546,292 237,931Councillors’ allowance 239,310 191,784Depreciation on plant and equipment (Note 3) 61,692 60,685Plant and equipment not capitalised 1,630 5,140Staff costs (Note 17) 4,005,795 3,876,768Offi ce rental and upkeep expenditure 459,816 427,971Offi ce supplies and stationery 152,653 131,904Property tax 49,940 50,430Provision for impairment on conservancy and service debtors 28,869 –Others 363,885 524,515

6,210,409 5,888,022

17 Employee benefi ts expenses

Wages and salaries 3,282,541 3,262,100Employers’ contribution to Central Provident Fund 377,056 383,199Other staff benefi ts 346,198 231,469

4,005,795 3,876,768

18 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 fi nancial year 347,694 213,150Later than one fi nancial year but not later than fi ve fi nancial years 450,803 94,500

798,497 307,650

Rental expenses for the year 346,949 340,642

35



19 Commitment for capital expenditure

Capital expenditure approved by the Town Council but not provided for in the fi nancial statements is as follows:

2007 2006$ $

Amounts approved and contracted for 7,193,690 13,058,902

Budget approved but not contracted for 28,384,000 30,123,200

The balances disclosed under “Budget approved but not contracted for” are taken from the sinking fund and town improvement and

project fund budgets for fi nancial year 2007/2008 approved by the Town Council.

20 Changes and adoption of fi nancial reporting standards

For the year ended 31 March 2007 the following new or revised Singapore Financial Reporting Standards were adopted for the fi rst time.

The new or revised standards did not require any material modifi cation of the measurement method or the presentation in the fi nancial

statements.

FRS No. TitleFRS 1 Presentation of Financial StatementsFRS 16 Property, Plant and EquipmentFRS 19 Employee Benefi ts - Amendments relating to actuarial gains and losses, group plans and disclosures (*) FRS 21 The Effects of Changes in Foreign Exchange Rates - Amendments relating to net investment in a foreign operation (*)FRS 24 Related Party Disclosures (*)FRS 32 Financial Instruments: Disclosure and PresentationFRS 37 Provisions, Contingent Liabilities and Contingent AssetsFRS 38 Intangible Assets (*)FRS 39 Financial Instruments: Recognition and Measurement – Amendments relating to cash fl ow hedge accounting of forecast intragroup transactions Amendments relating to fi nancial guarantee contracts (*)FRS 101 First-time Adoption of Financial Reporting Standards – Amendments relating to comparative disclosures for FRS 106 Exploration for and Evaluation of Mineral Resources (*)FRS 101 Implementation Guidance (*)FRS 104 Insurance Contracts (*)FRS 104 Implementation Guidance (*)FRS 106 Exploration for and Evaluation of Mineral Resources (*)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 107 Applying the Restatement Approach under FRS 29 Financial Reporting in Hyperinfl ationary Economies (*)INT FRS 108 Scope of FRS 102 (*)INT FRS 109 Reassessment of Embedded Derivatives (*)INT FRS 110 Interim Financial Reporting and Impairment (*)

(*) Not relevant to the entity.

36



21 Future changes in accounting standards

The following new or revised Singapore Financial Reporting Standards that have been issued will be effective in the future fi nancial

years. The transfer to the new or revised standards from the effective dates is not expected to have a material impact on the fi nancial

statements.

Effective date for periods FRS No. Title beginning on or afterFRS 1 Presentation of Financial Statements – Amendments relating to capital disclosures 1.1.2007FRS 10 Events after the Balance Sheet Date 1.1.2007FRS 12 Income Taxes 1.1.2007FRS 14 Segment Reporting (*) 1.1.2007FRS 17 Leases 1.1.2007FRS 19 Employee Benefi ts 1.1.2007FRS 32 Financial Instruments: Presentation 1.1.2007FRS 33 Earnings per Share (*) 1.1.2007FRS 39 Financial Instruments: Recognition and Measurement 1.1.2007FRS 39 Implementation Guidance 1.1.2007FRS 40 Investment Property (*) 1.1.2007FRS 101 First-time Adoption of Financial Reporting Standards (*) 1.1.2007FRS 101 Implementation Guidance (*) 1.1.2007FRS 102 Share-based Payment (*) 1.1.2007FRS 103 Business Combinations (*) 1.1.2007FRS 104 Insurance Contracts (*) 1.1.2007FRS 104 Implementation Guidance – Revisions relating to FRS 107 Financial Instruments: Disclosures (*) 1.1.2007FRS 107 Financial Instruments: Disclosures - Implementation Guidance (*) 1.1.2007INT FRS 105 Rights to Interests arising from Decommissioning, Restoration and Environmental 1.1.2007 Rehabilitation Funds (*)

(*) Not relevant to the entity.

22 Reclassifi cation of comparative fi gures

MND has in its memo dated 28 November 2006 stated that the GST subvention should be disclosed separately under “Government Grants”

and the appropriate amount of the grants in aid to the Town Council should be allocated to the sinking fund of the residential property

based on the percentage of allocation that was applicable to the Town Council in the relevant periods. Consequently, the following

reclassifi cations have been made to prior year’s fi nancial statements to disclose the GST subvention received:

After reclassifi cation

$

Before reclassifi cation

$Difference

$FY05/06 statement of income and expenditure

Government grants 8,434,934 9,105,242 (670,308)

GST subvention 670,308 – 670,308

TOA PAYOH OFFICE Block 125A #01-134 Lorong 2 Toa Payoh, Singapore 311125. Tel: 6259 6700

BISHAN OFFICE Block 197 #01-585 Bishan Street 13, Singapore 570197. Tel: 6259 6700

WEBSITE: www.btptc.org.sg

EMAIL: [email protected]

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