· Other expenditure 7,719 6,357 2,013 1,819 9,732 8,176 ... Polytechnic Act (Chapter 323A). It is...

Temasek PolytechnicFinancial statements

Year ended 31 March 2014

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

Statement of financial position As at 31 March 2014 Note 2013/14 2012/13 $’000 $’000 Accumulated surplus and reserve General fund 9 234,610 250,680 Restricted funds 9 34,442 33,722 Fair value reserve 2,357 5,289 271,409 289,691 Temasek Polytechnic Endowment Fund 10 10,359 6,358 Other funds 11 9,504 6,191 Net assets of other funds 11 (9,504) (6,191) – – 281,768 296,049 Non-current assets Property, plant and equipment 4 560,109 491,895 Investments in subsidiaries 5 – – Available-for-sale investments 6 64,014 54,040 624,123 545,935 Current assets Available-for-sale investments 6 64,182 62,339 Trade and other receivables 7 5,666 5,953 Prepayments 491 521 Government grant receivables 18,332 15,570 Cash and cash equivalents 8 245,493 252,400 334,164 336,783 Total assets 958,287 882,718 Non-current liabilities Fees received in advance 12 13,562 5,033 Deferred capital grants - Government 13 557,280 488,508 Deferred capital grants - Others 14 2,825 3,386 Government grants received in advance 15 49,373 40,983 623,040 537,910 Current liabilities Government grants received in advance 15 187 277 Trade and other payables 16 53,292 48,482 53,479 48,759 Total liabilities 676,519 586,669 Net assets 281,768 296,049



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Statement of comprehensive income For the year ended 31 March 2014 General fund Restricted funds Total Note 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 $’000 $’000 $’000 $’000 $’000 $’000 Operating income Student fees 44,614 42,182 – – 44,614 42,182 Other income 23 4,844 4,093 579 555 5,423 4,648 Donations 56 24 892 1,208 948 1,232 Courses, projects, seminars and talks 4,765 4,295 1,783 1,674 6,548 5,969 54,279 50,594 3,254 3,437 57,533 54,031 Operating expenses Salaries, CPF and other related costs 197,967 178,117 1,243 1,283 199,210 179,400 Depreciation 4 33,622 31,690 11 109 33,633 31,799 Repairs, maintenance and utilities 23,162 23,811 212 217 23,374 24,028 Property, plant and equipment expensed off 4,015 4,372 4 6 4,019 4,378 Teaching materials and resources 4,385 4,445 – 7 4,385 4,452 Student welfare 3,197 3,594 – – 3,197 3,594 IT and information communication 744 733 39 41 783 774 Rental 908 873 747 682 1,655 1,555 Consultancy 1,073 685 – – 1,073 685 Other expenditure 7,719 6,357 2,013 1,819 9,732 8,176 Fees for fund managers 175 145 – – 175 145 Courses, projects, seminars and talks 4,856 4,355 1,652 1,686 6,508 6,041 281,823 259,177 5,921 5,850 287,744 265,027



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Statement of comprehensive income (Cont’d) For the year ended 31 March 2014 General fund Restricted funds Total Note 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 $’000 $’000 $’000 $’000 $’000 $’000 Operating deficit 17 (227,544) (208,583) (2,667) (2,413) (230,211) (210,996) Non-operating income/(expense) Interest income 18 4,521 4,504 488 417 5,009 4,921 Investment income 19 2,386 297 – – 2,386 297 Gain/(loss) on disposal of property, plant

and equipment 124 (2,853) – – 124 (2,853)Deficit before grants (220,513) (206,635) (2,179) (1,996) (222,692) (208,631) Grants Deferred capital grants amortised: Government 13 35,575 34,938 7 105 35,582 35,043 Others 14 1,103 938 – – 1,103 938 Operating grants: Government 20 167,752 157,338 2,892 3,699 170,644 161,037 Others 13 49 – – 13 49 204,443 193,263 2,899 3,804 207,342 197,067 (Deficit)/Surplus for the year (16,070) (13,372) 720 1,808 (15,350) (11,564)



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Statement of comprehensive income (Cont’d) For the year ended 31 March 2014 General fund Restricted funds Total 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 $’000 $’000 $’000 $’000 $’000 $’000 (Deficit)/Surplus for the year (16,070) (13,372) 720 1,808 (15,350) (11,564) Other comprehensive income Items that are or may be reclassified

subsequently to profit or loss: Net change in fair value of available-for-

sale financial assets (2,858) 3,785 (74) (77) (2,932) 3,708 Net loss on disposal of available-for-sale

financial assets reclassified from accumulated surplus and reserve – (236) – – – (236)

(2,858) 3,549 (74) (77) (2,932) 3,472 Total comprehensive income for the year (18,928) (9,823) 646 1,731 (18,282) (8,092)



FS5


Statement of changes in accumulated surplus and reserve For the year ended 31 March 2014

General

fund Restricted

fund Fair value

reserve Total $’000 $’000 $’000 $’000 At 1 April 2012 264,052 31,914 1,817 297,783 Total comprehensive income

for the year (13,372) 1,808 3,472 (8,092) At 31 March 2013 250,680 33,722 5,289 289,691 At 1 April 2013 250,680 33,722 5,289 289,691 Total comprehensive income

for the year (16,070) 720 (2,932) (18,282) At 31 March 2014 234,610 34,442 2,357 271,409



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Statement of cash flows Year ended 31 March 2014 Note 2013/14 2012/13 $’000 $’000 Cash flows from operating activities Deficit before grants (222,692) (208,631) Adjustments for: Depreciation of property, plant and equipment 4 33,633 31,799 Goods and services tax (18,941) (18,392) Fees for fund managers 175 145 Interest income 18 (5,009) (4,921) Investment loss/(income) 19 (2,386) (297) (Gain)/Loss on disposal of property, plant and equipment (124) 2,853 (215,344) (197,444) Changes in: Trade and other receivables 287 1,710 Prepayment 30 115 Fees received in advance 8,529 5,033 Trade and other payables (13,608) (5,928) Net cash used in operating activities (220,106) (196,514) Cash flows from investing activities Interest received 5,009 4,921 Dividend income from available-for-sale investments 655 315 Cash balances with fund managers (549) 2,402 Acquisition of available-for-sale investments (13,193) – Proceeds from disposal of available-for-sale investments – 18,033 Proceeds from sale of property, plant and equipment 235 7 Purchase of property, plant and equipment (86,134) (66,536) Net cash used in investing activities (93,977) (40,858) Cash flows from financing activities Capital grants received from Government 44,128 16,069 Goods and services tax grants received from Government 18,941 18,392 F&E and IT grants received from Government 25,774 25,154 MOE Bursary received 2,593 2,212 Matching grant received from Government as Endowment

Fund 10 2,151 80 Operating grants received from Government 208,335 189,243 Special projects and other grants received 2,855 5,169 Donations received for Bursary & Scholarships 10 1,850 – Net cash from financing activities 306,627 256,319 Net (decrease)/ increase in cash and cash equivalents (7,456) 18,947 Cash and cash equivalents at beginning of year 250,571 231,624 Cash and cash equivalents at end of year 8 243,115 250,571

Temasek Polytechnic Financial statements


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Notes to the financial statements These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Governors on [date of signing].

1 Domicile and activities Temasek Polytechnic (the “Polytechnic”) was established in 1990 under the Temasek Polytechnic Act (Chapter 323A). It is domiciled in the Republic of Singapore and its campus is situated at 21 Tampines Avenue 1, Singapore 529757. The principal activities of the Polytechnic are to provide instruction, training and research in technology, science, commerce, arts and other subjects of learning.

2 Basis of preparation

2.1 Statement of compliance The financial statements have been prepared in accordance with the applicable requirements of Temasek Polytechnic Act, Chapter 323A, the Singapore Charities Act, Chapter 37 (the “Charities Act”) and Singapore Statutory Board Financial Reporting Standards (“SB-FRS”). SB-FRS includes Statutory Board Financial Reporting Standards, Interpretations of SB-FRS (“INT SB-FRS”) and SB-FRS Guidance Notes as promulgated by the Accountant-General.

2.2 Basis of measurement The financial statements have been prepared on the historical cost basis except for certain financial assets and financial liabilities which are stated at fair value.

2.3 Functional and presentation currency The financial statements are presented in Singapore dollars which is the Polytechnic’s functional currency. All financial information is presented in Singapore dollars, unless otherwise stated.

2.4 Use of estimates and judgements The preparation of financial statements in conformity with SB-FRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.



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2.5 Changes in accounting polices Fair value measurement SB-FRS 113 establishes a single framework for measuring fair value and making disclosures about fair value measurements, when such measurements are required or permitted by other FRSs. In particular, it unifies the definition of fair value as the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date. It also replaces and expands the disclosure requirements about fair value measurements in other SB-FRSs, including SB-FRS 107 Financial Instruments: Disclosures. From 1 April 2013, in accordance with the transitional provisions of SB-FRS 113, the Polytechnic has applied the new fair value measurement guidance prospectively, and has not provided any comparative information for new disclosures. Notwithstanding the above, the change had no significant impact on the measurements of the Polytechnic’s assets and liabilities. Presentation of items of other comprehensive income From 1 April 2013, as a result of the amendments to SB-FRS 1, the Polytechnic has modified the presentation of items of other comprehensive income in its consolidated statement of comprehensive income, to present separately items that would be reclassified to profit or loss in the future from those that would never be. Comparative information has also been re-presented accordingly. The adoption of the amendment to SB-FRS 1 has no impact on the recognised assets, liabilities and comprehensive income of the Polytechnic.

3 Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by the Polytechnic, except as explained in note 2.5, which addresses changes in accounting policies.

3.1 Investments in subsidiaries Subsidiaries Subsidiaries are entities controlled by the Polytechnic. Control exists when the Polytechnic has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Investments in subsidiaries are stated in the Polytechnic’s statement of financial position at cost less accumulated impairment loss.



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3.2 Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the Polytechnic at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are recognised in profit or loss.

3.3 Financial instruments Non-derivative financial assets The Polytechnic initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets are recognised initially on the trade date, which is the date that the Polytechnic becomes a party to the contractual provisions of the instrument. The Polytechnic derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Polytechnic is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Polytechnic has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Polytechnic classifies non-derivative financial assets into the following categories: loans and receivables and available-for-sale financial assets. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise cash and cash equivalents, and trade and other receivables. Cash and cash equivalents Cash and cash equivalents comprise cash balances, bank deposits and demand deposits that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.



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Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale or are not classified in any of the above categories of financial assets. Available-for-sale financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on available-for-sale debt instruments, are recognised in other comprehensive income and presented in the fair value reserve in accumulated surplus and reserve. When an investment is derecognised, the gain or loss accumulated in accumulated surplus and reserve is reclassified to profit or loss. Available-for-sale financial assets comprise equity securities, debt securities and funds managed by fund managers. Non-derivative financial liabilities Financial liabilities (including financial liabilities designated at fair value through profit or loss) are recognised initially on trade date, which is the date that the Polytechnic becomes a party to the contractual provisions of the instrument. The Polytechnic derecognises a financial liability when its contractual obligations are discharged, cancelled or expired. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Polytechnic has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Polytechnic classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Other financial liabilities comprise trade and other payables.

3.4 Funds General funds Income and expenditure relating to the main accounts of the Polytechnic are accounted for through the General Fund in the Statement of Comprehensive Income. Restricted funds Income and expenditure relating to funds set up for contributions received and expenditure incurred for specific purposes are accounted for through the Restricted Fund in the Statement of Comprehensive Income. The assets and liabilities of these funds are accounted for separately. However, for presentation purposes, they are pooled together with those of the General Fund.



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Other funds

Funds are set up to account for contributions received from external sources for specific purposes.

The assets and liabilities of funds – Funds for staff loans and student loans, Ministry of Education Opportunity Fund and Khoo Teck Puat International Opportunity Programme Fund held in trust for Ministry of Education and Campus Care Network Fund held in trust for the staff and student of the Polytechnic are presented as a line item under the capital and other funds section on the face of the balance sheet of the financial statements as prescribed by SB-FRS Guidance Note 1. Income and expenditure relating to these funds are accounted for directly in these funds. Details of income, expenditure, assets and liabilities relating to these funds are disclosed in Note 11 to the financial statements.

3.5 Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes:

the cost of materials and direct labour;

any other costs directly attributable to bringing the assets to a working condition for their intended use;

when the Polytechnic has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the items and restoring the site on which they are located; and

capitalised borrowing costs.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss.

Subsequent costs

The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Polytechnic and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.



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Property, plant and equipment costing less than $2,000 are charged to statement of comprehensive income in the year of purchase. Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately. Depreciation is recognised as an expense in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Depreciation is recognised from the date that the property, plant and equipment are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use. The estimated useful lives for the current and comparative years are as follows:

Leasehold land - Over lease term of 99 years Leasehold buildings - 30 to 50 years Building improvements - 5 years Furniture, fittings and equipment - 5 years Computer hardware and software - 3 to 5 years Workshop equipment and machinery - 5 to 10 years Vehicles - 5 years Plant and machinery - 10 years

Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if appropriate.

3.6 Impairment

Non-derivative financial assets A financial asset not carried at fair value through profit or loss is assessed at the end of each reporting period to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has an impact on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Polytechnic on terms that the Polytechnic would not consider otherwise, indications that a debtor will enter bankruptcy, adverse changes in the payment status of borrowers and economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. The Polytechnic considers a decline of 20% to be significant and a period of 9 months to be prolonged.



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Loans and receivables The Polytechnic considers evidence of impairment for loans and receivables at a specific asset and collective level. All individually significant loans and receivables are assessed for specific impairment. All individually significant loans and receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Loans and receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics. In assessing collective impairment, the Polytechnic uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against loans and receivables. Interest on the impaired asset continues to be recognised. When a subsequent event (e.g. repayment by a debtor) causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. Available-for-sale financial assets Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value reserve in accumulated surplus and reserve to profit or loss. The cumulative loss that is reclassified from accumulated surplus and reserve to profit or loss is the difference between the acquisition cost, net of any principal repayment and amortisation, and the current fair value, less any impairment loss recognised previously in profit or loss. Changes in cumulative impairment provisions attributable to application of the effective interest method are reflected as a component of interest income. If, in a subsequent period, the fair value of an impaired available-for-sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognised, then the impairment loss is reversed. The amount of the reversal is recognised in profit or loss. However, any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income. Non-financial assets The carrying amounts of the Polytechnic’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets’ recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. 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 or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.



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Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the losses have decreased or no longer exist. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. 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.

3.7 Lease payments Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.

3.8 Employee benefits Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Polytechnic has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

3.9 Provisions A provision is recognised if, as a result of a past event, the Polytechnic has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

3.10 Revenue Student fees Tuition and other fees for an academic year are recognised over the period of service in a financial year.



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Income from courses/projects Revenue from courses/projects is recognised based on percentage of completion, determined on straight-line basis over the period of the courses/projects. Donations Donations are recognised upon receipt.

3.11 Finance income Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method.

3.12 Government grants Government grants related to assets in which the Polytechnic has discretionary management power are taken directly to the Deferred Capital Grant account, or to the Statement of Comprehensive Income for assets which are expensed off in the year of purchase. Other government grants related to assets are initially taken to Government grant received in advance account and upon their utilisation for the purchase of assets, they are transferred to the Deferred Capital Grant account, or to the Statement of Comprehensive Income for assets which are written off in the year of purchase. The deferred capital grants are recognised in the Statement of Comprehensive Income over the periods necessary to match the depreciation and write off of the property, plant and equipment purchased with the related grants. Upon the disposal of the property, plant and equipment, the balance of the related deferred capital grants is recognised in the Statement of Comprehensive Income to reflect the net book value of the assets disposed. Government grants to meet the current year’s operating expenses are taken to the Statement of Comprehensive Income for the year. Government grants are accounted for on an accrual basis.

3.13 Tax The Polytechnic is registered as a charitable institution with effect from the Year of Assessment 2008 or the financial year ended 31 March 2007, all registered charities will enjoy automatic income tax exemption without having the need to meet the 80% spending rule and there is no need to file income tax returns by virtue of Section 13(1)(zm) of the Income Tax Act, Chapter 134.

3.14 New standards and interpretations not adopted A number of new standards, amendments to standards and interpretations are effective for the annual periods beginning on or after 1 April 2013, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the Polytechnic.



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4 Property, plant and equipment

Leasehold

land Leasehold Buildings

Buildings improve-

ments

Furniture fittings and equipment

Computer hardware

Workshop equipment

and machinery Vehicles

Computer software

Plant and machinery

Capital work-in- progress Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cost

At 1 April 2012 66,889 434,061 24,852 56,832 68,053 47,141 106 41,342 93,605 54,186 887,067 Additions – 21,999 3,470 5,443 4,853 1,422 – 4,836 6,294 27,241 75,558 Transfers – 28,376 16 8,984 9 19 – 2,583 11,219 (51,206) – Disposals – (4,313) (1,351) (1,615) (1,221) (1,095) (8) (331) (23) – (9,957) At 31 March 2013 66,889 480,123 26,987 69,644 71,694 47,487 98 48,430 111,095 30,221 952,668 Additions – 8,898 950 11,316 6,327 2,439 8 2,041 9,755 60,224 101,958 Transfers – 21,948 1,246 – – – – 441 423 (24,058) – Disposals – (64) (1,976) (3,283) (6,571) (2,099) (15) (729) – – (14,737) At 31 March 2014 66,889 510,905 27,207 77,677 71,450 47,827 91 50,183 121,273 66,387 1,039,889

Accumulated depreciation

At 1 April 2012 11,327 133,252 22,519 52,798 58,729 40,013 96 36,507 80,829 – 436,070 Depreciation 703 9,666 1,066 3,645 6,057 2,762 2 4,631 3,267 – 31,799 Disposals – (1,481) (1,338) (1,604) (1,219) (1,092) (8) (331) (23) – (7,096) At 31 March 2013 12,030 141,437 22,247 54,839 63,567 41,683 90 40,807 84,073 – 460,773 Depreciation 703 10,308 1,605 4,711 5,664 2,475 4 4,165 3,998 – 33,633 Disposals – (17) (1,930) (3,274) (6,565) (2,097) (15) (728) – – (14,626)At 31 March 2014 12,733 151,728 21,922 56,276 62,666 42,061 79 44,244 88,071 – 479,780

Carrying amounts

At 1 April 2012 55,562 300,809 2,333 4,034 9,324 7,128 10 4,835 12,776 54,186 450,997

At 31 March 2013 54,859 338,686 4,740 14,805 8,127 5,804 8 7,623 27,022 30,221 491,895

At 31 March 2014 54,156 359,177 5,285 21,401 8,784 5,766 12 5,939 33,202 66,387 560,109

During the year, the amount of property, plant and equipment acquired by the Polytechnic which remains unpaid as at year-end amounts to $15,824,000 (2013: $9,021,000) (Note 16). The cash outflow on acquisition of property, plant and equipment amounted to $86,134,000 (2013: $66,536,000). Included in the leasehold land are land designated to be leased to Singapore Institute of Technology (“SIT”). Construction of premises by SIT has commenced in June 2012. Management is finalising the technical contractual agreement as at year end.



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5 Investments in subsidiaries 2013/14 2012/13 $ $ Unquoted equity shares, at cost 2 2 Details of subsidiaries are as follows:

Name of subsidiary Principal activities

Country of registration

and operation Equity

interest held 2013/14 2012/13 % % Held by the Polytechnic: TP Innovation Holdings Pte Ltd Investment company to

promote and commercialise Temasek Polytechnic’s research and development results, technology, design or business innovations

Singapore 100 100

Held by the subsidiary: TP Education Services Pte Ltd Company dealing with

matters relating to and connected to education, course know-how, training of personnel, on the job training and/or internship placements for students and granting licences and franchises

Singapore 100 100

At the reporting date, the Polytechnic had given an undertaking to provide continuing financial support to the subsidiaries. The assets, liabilities and results of the subsidiaries have not been consolidated as they are not considered to be material to the Polytechnic’s financial statements.



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6 Available-for-sale investments 2013/14 2012/13 $’000 $’000 At cost: Unquoted equity shares 458 203 At fair value: Financial assets available-for-sale Quoted debt securities 63,556 45,642 Quoted securities managed by fund managers - equity 19,561 30,290 - unit trust/real estate investment trusts 44,621 40,244 128,196 116,379

Current 64,182 62,339 Non-current 64,014 54,040 128,196 116,379 As at the reporting date, the quoted debt securities bear interest rate of from 3.25% to 5.75% (2013: 3.25% to 5.68%) per annum. Interest is receivable on a semi-annual basis. The maturity dates of debt securities range from 10 September 2014 to 24 Aug 2020 (2013: 10 September 2014 to 24 August 2020). Investments managed by fund managers form part of the Polytechnic’s funds which are administered by asset management companies (fund managers). The fund managers are given discretionary powers within certain guidelines to invest the funds. The Polytechnic’s available-for-sale investments that are not denominated in its functional currency are as follows: 2013/14 2012/13 $’000 $’000 Hong Kong dollar 2,071 4,527 United States dollar 25,573 12,465 Indonesian rupiah 1,374 3,365 Thailand baht 1,406 2,093 Great Britain pound 1,365 1,314 South Korean won – 1,078 Others 5,517 1,400



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7 Trade and other receivables 2013/14 2012/13 $’000 $’000 Trade receivables 716 873 Deposits 249 249 Singapore Totalisator Board grant (“Tote grant”) 174 258 Loans due from subsidiaries 201 204 Fund manager ̶ 846 Sundry debtors 4,326 3,523 5,666 5,953 The average credit period on trade receivable from student fees is 14 to 30 days (2013: 14 to 30 days). No interest is charged on the outstanding trade receivables. The Polytechnic has not recognised any allowance for doubtful debts as the management are of the view that these receivables are recoverable. Included in the Polytechnic’s trade receivable balance are debtors with a carrying amount of $593,000 (2013: $591,000) which are past due at the reporting date for which the Polytechnic has not provided as there has not been a significant change in the credit quality and the amounts are still considered recoverable. The aging profile of the trade receivables are as follows: 2013/14 2012/13 $’000 $’000 Not past due and not impaired 123 282 Past due but not impaired 593 591 716 873 Aging of trade receivables that are past due but not impaired:

2013/14 2012/13 $’000 $’000

Less than 3 months 498 509 3 months to 12 months 53 66 More than 12 months 42 16 593 591



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8 Cash and cash equivalents 2013/14 2012/13 $’000 $’000 Cash at bank and on hand (2,232) 2,179 Cash with the AGD 247,725 250,221 Total cash and bank balances 245,493 252,400 Less: Cash and cash equivalents managed by fund managers: - Cash at bank and on hand (2,378) (1,829)Net cash and cash equivalents in cash flow statement 243,115 250,571

Cash with the Accountant-General’s Department (“AGD”) refers to cash that are managed by the AGD under Centralised Liquidity Management (“CLM”) as set out in the Accountant-General's Circular No.4/2009 Centralised Liquidity Management for Statutory Boards and Ministries. The interest rate of cash with AGD, defined as the ratio of the interest earned to the average cash balance, is 0.52% (2013: 0.51%) or ranges from 0.43% to 0.61% (2013: 0.44% to 0.58%) per annum.

9 Accumulated surplus and reserve General Fund As at the reporting date, the Polytechnic has capital commitments of approximately $88 million (2013: $38 million). Restricted Funds Restricted Funds comprise the following funds: Name of Fund Purpose Bursary, Scholarship and Awards Fund Providing financial assistance to needy

students, scholarships to students and book prizes and medals to students and graduates who excel academically and in extra-curricular activities.

Staff Apartment Fund Maintaining and upgrading of the Polytechnic’s

staff apartments.



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Name of Fund Purpose Temasek Polytechnic Endowment Fund Providing financial support for: (a) staff development; (b) student development, focusing on

international exchange; (c) promotion of innovation; (d) bringing relevant world-class expertise to

the Polytechnic; (e) scholarships to outstanding students; and (f) bursaries to deserving needy students Miscellaneous Fund – Self Financing Project Fund

Conducting pre-employment education for the hospitality and tourism workforce in Singapore, short and continuing education courses; upgrading Polytechnic’s teaching facilities; and providing welfare and wellness activities for the Polytechnic’s students and staff.

– Special Projects Fund Providing training and placement for working

adults with funding from Government agencies and external parties.

The Bursary, Scholarship and Awards Fund and Temasek Polytechnic Endowment Fund are included in the Temasek Polytechnic General Education Fund (See Note 21).



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Restricted Funds Bursary, Scholarship

and Awards Fund Staff Apartment Fund Temasek Polytechnic

Endowment Fund Miscellaneous Fund Total 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Operating income Courses, projects, seminars and talks – – – – – – 1,783 1,674 1,783 1,674 Donations: - Tax deductible 575 1,024 – – – – – – 575 1,024 - Non-tax deductible 317 184 – – – – – – 317 184 Other income – – 564 551 – – 15 4 579 555 892 1,208 564 551 – – 1,798 1,678 3,254 3,437 Operating expenditure Courses, projects, seminars and talks – – – – – – 1,652 1,686 1,652 1,686 Depreciation – – 1 – – – 10 109 11 109 IT and information communication – – – – – – 39 41 39 41 Other expenditure 963 784 619 554 314 341 117 140 2,013 1,819 Property, plant and equipment

expensed off – – 4 6 – – – – 4 6 Rental – – – – – – 747 682 747 682 Repairs and maintenance – – – – – – 212 217 212 217 Salaries, CPF and other related costs – – – – – – 1,243 1,283 1,243 1,283 Teaching materials and resources – – – – – – – 7 – 7 963 784 624 560 314 341 4,020 4,165 5,921 5,850



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Restricted Funds Bursary, Scholarship

and Awards Fund Staff Apartment Fund Temasek Polytechnic

Endowment Fund Miscellaneous Fund Total 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Operating surplus/(deficit) (71) 424 (60) (9) (314) (341) (2,222) (2,487) (2,667) (2,413) Non-operating income Interest income 7 7 – – 373 349 108 61 488 417 Surplus/(deficit) before grants (64) 431 (60) (9) 59 8 (2,114) (2,426) (2,179) (1,996) Grants Deferred Capital Grant Amortised -

Government – – – – – – 7 105 7 105 Operating Grant - Government – – – – – – 2,892 3,699 2,892 3,699 Surplus/(deficit) for the year (64) 431 (60) (9) 59 8 785 1,378 720 1,808 Accumulated surplus at 1 April 887 456 3,316 3,325 531 523 28,988 27,610 33,722 31,914 Accumulated surplus at 31 March 823 887 3,256 3,316 590 531 29,773 28,988 34,442 33,722 Represented by: Property, plant and equipment – – 6 – – – 3 14 9 14 Government grant receivables – – – – – – 213 7 213 7 Trade and other receivables 6 3 19 9 55 34 455 595 535 641 Cash and bank balances 1,225 1,066 3,270 3,391 535 497 29,755 29,052 34,785 34,006 Government grants received in

advance – – – – – – (182) (218) (182) (218) Trade and other payables (408) (182) (39) (84) – – (469) (453) (916) (719) Deferred capital grant - Government – – – – – – (2) (9) (2) (9) 823 887 3,256 3,316 590 531 29,773 28,988 34,442 33,722



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10 Temasek Polytechnic Endowment Fund Donations and contributions made to the Temasek Polytechnic Endowment Fund are retained as principal capital to be kept intact to earn income. Income and expenditure of the fund are taken to "Restricted Funds" in the Statement of Comprehensive Income. 2013/14 2012/13 $’000 $’000 At 1 April 6,358 6,278 Donations received 1,850 – Matching grant received from Government 2,151 80 At 31 March 10,359 6,358 Represented by: Investment in bonds 8,208 6,278 Cash and bank balances 2,151 80 10,359 6,358 During the year, a matching grant was received from MOE amounting to $1,626,000 (2013: $80,000) for non-endowed donations received which were recognised in the Statement of Comprehensive Income.

11 Other funds

(a) Staff Loan and Tuition Fee Loan Staff loan This comprises advances from the Government, which provides housing loans to staff. The housing loans are managed by a financial institution on behalf of the Polytechnic. Housing loans are repayable with interest of 5% per annum by monthly instalments over periods up to 30 years. On 11 October 2001, the Ministry of Education issued a circular stating that with effect from financial year ended 31 March 2003, all new staff housing loans should be obtained directly from financial institutions or from the Polytechnic itself instead of from the Government. Existing housing loans will continue to be borne by the Government until they are fully repaid. The Staff loan has been fully repaid and the balance fund has been returned to the Government in FY2012/13. There is no more staff loan with effect from FY2013/14.



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Tuition Fee Loan Tuition fee loan comprises advances from the Government, which provides tuition fee loans to students. The tuition fee loans are administered by a financial institution. Loans given to students are interest-free until the year of their graduation, or for those with National Service obligation, in the year in which they finish their National Service. Thereafter, loans are repayable by monthly instalments with interest based on the average prime rates of banks or such other rate as may be determined by the Polytechnic. Repayment of the loans will eventually be returned to the Government. Accordingly, the carrying amounts of staff and student loans approximate their fair values. Staff Loan Tuition Fee Loan Total 2013/14 2012/13 2013/14 2012/13 2013/14 2012/13 $’000 $’000 $’000 $’000 $’000 $’000 At 1 April – 14 5,829 7,186 5,829 7,200Amount contributed

by Government – – 1,588 1,868 1,588 1,868Amount refunded to

Government – (14) (1,546) (3,225) (1,546) (3,239)At 31 March – – 5,871 5,829 5,871 5,829 Represented by: Outstanding loans: Staff loans – – – – – – Tuition fee loans – – 5,871 5,829 5,871 5,829Bank balance – – – – – – – – 5,871 5,829 5,871 5,829

(b) Campus Care Network Fund The campus care network ("CCN") fund was set up to provide crisis assistance, emergency assistance as well as education assistance to needy students. The source of fund comes mainly from proceeds collected through fund raising activities among students and staff within the campus on CCN days. The fund is managed by a CCN committee. 2013/14 2012/13 $’000 $’000 At 1 April 269 218 Contribution received 62 62 Other income 3 27 Relief to students (53) (38) At 31 March 281 269 Represented by: Cash and bank balances 281 269



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(c) Khoo Teck Puat International Opportunity Programme Fund The Estate of Tan Sri Khoo Teck Puat launched the Khoo Teck Puat International Opportunity Programme (“KTPIOP”) on 18 December 2007. The KTPIOP is supported by this fund. This programme aims to provide needy students from the Polytechnic an opportunity to obtain an overseas education experience. The fund is managed and disbursed by MOE to the Polytechnic which will administer the application and award processing on behalf of the donor. 2013/14 2012/13 $’000 $’000 At 1 April 93 80 Contribution received 33 194 Financial assistance to students (123) (181) At 31 March 3 93 Represented by: Cash and bank balances 3 93

(d) Ministry of Education Opportunity Fund During FY2013/14, the Ministry of Education extended the Ministry of Education Opportunity

Funds (“MOEOF”) to Polytechnics. These grants are to be used to level up co-curriculum development opportunities for Singaporean students from lower income households.

2013/14 2012/13 $’000 $’000 At 1 April – – Contribution received 3,419 – Financial assistance to students (74) – Interest earned from unutilised funds 4 – At 31 March 3,349 – Represented by: Cash and bank balances 3,349 –

12 Fees received in advance The Polytechnic received fees in advance from Singapore Institute of Technology (“SIT”) during the financial year for future usage of the Polytechnic's facilities by SIT students. The fees received in advance will only be recognised as revenue when services are rendered by the Polytechnic in accordance to the service agreement between the Polytechnic and SIT, i.e. upon Temporary Occupation Permit (“TOP”) of the new premises and when utilisation commences. The fee is amortised over a 30-year period.



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13 Deferred capital grants - Government Note 2013/14 2012/13 $’000 $’000 Grants utilised as at 1 April 488,508 448,118 Grants utilised on property, plant and equipment: Development grants 47,557 21,653 Operating grants 20 43,404 35,010 Furniture and equipment (“F&E”) and Information

Technology (“IT”) grants 13,393 18,770 592,862 523,551 Amortisation (35,582) (35,043) Grants utilised as at 31 March 557,280 488,508

14 Deferred capital grants - others 2013/14 2012/13 $’000 $’000 At 1 April 3,386 2,859 Grants utilised on property, plant and equipment 542 1,465 Total 3,928 4,324 Amortisation (1,103) (938) At 31 March 2,825 3,386

15 Government grants received in advance 2013/14 2012/13 $’000 $’000 Non-current: F&E and IT grants unutilised as at 1 April 40,983 38,948 Grants received 25,774 25,154 Grants utilised (17,384) (23,119) F&E and IT grants unutilised as at 31 March 49,373 40,983

Current: Others 187 277 49,560 41,260

16 Trade and other payables Note 2013/14 2012/13 $’000 $’000

Trade payables 5,564 12,987 Fund manager 743 – Sundry creditors 10,900 11,155 Accruals for property, plant and equipment projects 4 15,824 9,021 Other accruals 17,773 13,404 Deferred income for courses in progress 2,488 1,915 53,292 48,482



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17 Operating deficit The item has been arrived at after charging/(crediting): 2013/14 2012/13 $’000 $’000 Contribution to defined contribution plan included in

salaries 20,274 19,256 Exchange gains (24) (3)

18 Interest income 2013/14 2012/13 $’000 $’000 Current accounts with financial institutions 915 1,001 Debt securities 4,089 3,897 Fixed deposits 5 23 5,009 4,921

19 Investment income/(loss) 2013/14 2012/13 $’000 $’000 Dividend income from available-for-sale investments 655 315 Gain/ (Loss) on disposal of available-for-sale

investments 1,731 (18) 2,386 297

20 Operating grants - Government Note 2013/14 2012/13 $’000 $’000 Operating grants received/receivable during the year 214,048 196,047 Less: Operating grants utilised on property, plant and

equipment transferred to deferred capital grants - Government 13 (43,404) (35,010)

170,644 161,037 During the financial year, the Polytechnic received a grant of $18,941,000 (2013: $18,392,000) from the Ministry of Education to settle the outstanding goods and services tax payable to the Inland Revenue Authority of Singapore for the same amount. This amount has not been included in the operating grants received from the Government as disclosed above.



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21 The Temasek Polytechnic General Education Fund

In November 2002, the Board of Governors of the Polytechnic approved the setup of the Temasek Polytechnic General Education Fund. The Fund was subsequently granted the membership by the Ministry of Education under the Education Central Fund. The membership was renewed for a period of three years with effect from 1 April 2013.

Under this membership, the Polytechnic is allowed to issue tax-deductible receipts to donors for donations contributed towards Bursary, Scholarship and Awards Fund, Temasek Polytechnic Endowment Fund and other education related activities which qualify for tax deduction. The Polytechnic has set up a Management Committee to administer the receipts and disbursement of the donations given by the donors.

The financial statements of the Temasek Polytechnic General Education Fund are given below:

2013/14 2012/13 $’000 $’000 Income Donations received: Bursaries, scholarships and awards - Tax deductible 575 1,024 - Non tax deductible 317 184 General donations 56 24 Donations in-kind 7 136 Interest income 380 356 Deferred capital grant amortised for donated assets 314 52 1,649 1,776

Expenditure Disbursements: Endowment Fund (313) (341) Bursaries, scholarships and awards (964) (784) General donations (60) (73) Property, plant and equipment expensed off (7) (136) Depreciation (314) (52) (1,658) (1,386)

Net (deficit)/ surplus for the year (9) 390 Accumulated surplus at 1 April 1,443 1,053 Accumulated surplus at 31 March 1,434 1,443

The disbursements were made from donations received in current and prior years.

The reserves set aside are to provide financial stability and to ensure a continuous supply of funds to meet the objectives of the Fund. The target is to maintain the reserves at a level equivalent to one year’s disbursements and expenses. The reserves will be used to provide financial assistance to needy students, scholarships, bursaries, book prizes and for other education related activities. The Management Committee will review the reserves on a yearly basis to ensure they are adequate to fulfil the objectives of the Fund.

The donations and disbursements are recorded in the respective funds in the financial statements.



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22 Financial risk management Overview

The Polytechnic has exposure to the following risks from its use of financial instruments:

credit risk liquidity risk interest rate risk equity price risk currency risk This note presents information about the Polytechnic’s exposure to each of the above risks, the Polytechnic’s objectives, policies and processes for measuring and managing risk. Risk management framework Risk management is integral to the whole business of the Polytechnic. The Polytechnic has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management continually monitors the Polytechnic’s risk management process to ensure that an appropriate balance between risk and control is achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Polytechnic’s activities. Credit risk Credit risk is the potential loss resulting from the failure of a student or a counterparty to settle its financial and contractual obligations to the Polytechnic, as and when they fall due. At the reporting date, there was no significant concentration of credit risk except for Government grant receivables, funds managed by fund managers and quoted debt securities. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position. Cash and fixed deposits and funds are placed with banks and financial institutions which are regulated. The cash with AGD under Centralised Liquidity Management (“CLM”) are placed with high credit quality financial institutions, and are available upon request. Liquidity risk The Polytechnic monitors its liquidity risk and maintain a level of cash and cash equivalents deemed adequate to finance the Polytechnic’s operations and to mitigate the effects of fluctuations in cash flow. The total contractual undiscounted cash flow of the Polytechnic’s non-derivative financial liabilities are the same as their carrying amounts and are due within one year. Interest rate risk As the Polytechnic does not have any financial assets and liabilities which bear interest at floating rates, no sensitivity analysis is prepared.



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The interest rates for cash with AGD disclosed in Note 8 to the financial statements are based on deposit rates determined by the financial institutions with which the cash are deposited and are expected to move in tandem with market interest rate movements. Equity price risk The Polytechnic is exposed to equity risks arising from equity investments classified as available-for-sale investments. Available-for-sale investments are held for strategic rather than trading purposes. Equity price sensitivity The sensitivity analysis below has been determined based on the exposure to equity price risks at the reporting date. 10% is the sensitivity rate used when reporting equity price sensitivity internally to key management personnel and represents management’s assessment of the possible change in equity price. In respect of available-for-sale investments, if the market value of the quoted investments had been 10% higher:

• the Polytechnic’s fair value reserves for the year ended 31 March 2014 would increase by $13 million (2013: increase by $12 million).

In respect of available-for-sale investments, if the market value of the quoted investments had been 10% lower:

• the Polytechnic’s fair value reserves for the year ended 31 March 2014 would decrease by $13 million (2013: increase by $12 million).

Currency risk Some of the Polytechnic’s underlying investments are denominated in various foreign currencies, including United States dollars and Hong Kong dollars. The exchange exposures in these foreign currency denominated investments are managed by the Polytechnic’s fund managers through forward foreign exchange contracts. These forward foreign exchange contracts form part of the respective investment portfolio managed by the fund managers as disclosed in Note 6 to the financial statements and therefore are not separately disclosed. Fair value hierarchy As at 31 March 2014, the Polytechnic has financial instruments measured at fair value. The different levels have been defined as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).



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Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 31 March 2014 Available-for-sale investments Quoted debt securities 63,556 – – 63,556 Quoted securities managed by

fund manager - equity 19,561 – – 19,561 - unit trust/real estate

investment trust 44,621 – – 44,621 127,738 – – 127,738

31 March 2013 Available-for-sale investments 45,642 – – 45,642 Quoted debt securities Quoted securities managed by

fund manager - equity 30,290 – – 30,290 - unit trust/real estate

investment trust 40,244 – – 40,244 116,176 – – 116,176 Accounting classifications and fair values Fair values versus carrying amounts The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position are as follows:

Loans and receivables

Available-for-sale

Other financial liabilities

Total carrying amount Fair value

Note $’000 $’000 $’000 $’000 $’000 31 March 2014 Available-for-sale securities 6 – 128,196 – 128,196 128,196 Trade and other receivables 7 5,666 – 5,666 5,666 Cash and cash equivalents 8 245,493 – – 245,493 245,493 Government grant receivable 18,332 – – 18,332 18,332 269,491 128,196 – 397,687 397,687 Trade and other payables 16 – – (53,292) (53,292) (53,292)_ 31 March 2013 Available-for-sale securities 6 – 116,379 – 116,379 116,379 Trade and other receivables 7 5,953 – – 5,953 5,953 Cash and cash equivalents 8 252,400 – – 252,400 252,400 Government grant receivable 15,570 – – 15,570 15,570 273,923 116,379 – 390,302 390,302 Trade and other payables 16 – – (48,482) (48,482) (48,482)



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Estimation fair values Other financial assets and liabilities The carrying amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash equivalents, and trade and other payables) are assumed to approximate their fair values. All other financial assets and liabilities are discounted to determine their fair values.

23 Other income 2013/14 2012/13 $’000 $’000 Grants and awards 917 769 Rental income 921 1,451 School/department income 1,740 2,167 Others 1,845 261 5,423 4,648

24 Commitments 2013/14 2012/13 $’000 $’000 Minimum lease payments under operating leases

included in the statement of comprehensive income 1,011 1,060 At the reporting date, the Polytechnic has outstanding commitments under non-cancellable operating leases, which fall due as follows: 2013/14 2012/13 $’000 $’000 Within one year 775 907 After one year but within five years 246 152 1,021 1,059 Operating lease payments represent rentals payable by the Polytechnic for its office premises and office equipment. Leases are negotiated and rentals are fixed for an average term of 1 to 5 years (2013: 1 to 5 years).

25 Appropriation of accumulated surplus The Polytechnic received a memorandum from the Ministry of Education dated 3 July 2002 which confirmed that the Ministry of Finance ("MOF") had no objection for the Polytechnic to retain the unutilised surpluses generated prior to financial year ended 31 March 2001 as working capital.



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With effect from 1 April 2001, the Polytechnic is allowed to retain all the surpluses generated in accordance with the MOF's circular dated 4 December 2000. The circular was subsequently replaced by the MOF's circular dated 4 May 2011 which states the same stand on the surplus retention.

26 Related parties The Polytechnic is a statutory board domiciled in Singapore under the Temasek Polytechnic Act (Chapter 323A). As a statutory board, all Government ministries and departments, and statutory boards are deemed related parties of the Polytechnic. Some of the Polytechnic’s transactions and arrangements are with related parties and the effect of these on the basis determined between the parties is reflected in these financial statements. The balances are unsecured, interest-free and repayable on demand unless otherwise stated. During the year, the Polytechnic entered into the following transactions with related parties: 2013/14 2012/13 $’000 $’000 Grant/Operating income Ministry of Education (MOE) 310,906 268,098 Other Ministries and Statutory Boards 8,333 4,802 Expenses Ministry of Education (MOE) (2,137) (3,348) Other Ministries and Statutory Boards (1,098) (917) Key management personnel (276) (341) Balances due from related parties as at 31 March Ministry of Education (MOE) 9,859 10,995 Other Ministries and Statutory Boards 255 185 Balances due to related parties as at 31 March Ministry of Education (MOE) 5 92 Other Ministries and Statutory Boards 216 270 Compensation of Directors and key management personnel Key management personnel of the Polytechnic are those persons having the authority and responsibility for planning, directing and controlling the activities of the entity. The Principal, Deputy Principals and Directors are considered as key management personnel of the Polytechnic.



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2013/14 2012/13 $’000 $’000 Short-term benefits 7,255 5,942 Defined contribution plans 302 258

27 Comparative information The comparative figures for the financial year ended 31 March 2013 were audited by another firm of public accountants and chartered accountants.

· Other expenditure 7,719 6,357 2,013 1,819 9,732 8,176 ... Polytechnic Act (Chapter 323A). It is...

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