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Giving
Hope.
Improving
Lives.
Singapore Totalisator Board
Annual Report 2013/14
Contents
01
02
04
06
10
About Tote Board
Foreword by
the Chairman
Message
from the
Chief Executive
Corporate
Governance
Report
Major Initiatives
in 2013/14
12
13
16
20
23
Social
Investment
Report
Equitable
Opportunities
for the
Vulnerable
27
31
Financial
Highlights
Strengthening
Communities
Promoting
Wellbeing
Our FundRaising
Programme
24
Contributing to
Social Innovation
Financial
Statements
Cover page
The cover page features five of our Tote Board staff. At Tote Board, we share a collective passion and commitment to
our vision of giving hope and improving lives for a better Singapore.
‘Smile’ graphic
The ‘Smile’ graphic
applied across all pages of the Tote Board Annual Report represents the happiness
that Tote Board hopes to bring to people’s lives through its grants. It is also a feature embedded within our logo.
Our Vision
A leading grant-making organisation that channels gaming revenues to give hope
to and improve lives in our community.
Our Mission
We manage our assets prudently, make social investments and fund worthy causes to build a stronger community.
We ensure that Singapore Pools and Singapore Turf Club conduct their gaming operations professionally and in a socially responsible manner.
Our Values
Passion – We fulfil our responsibilities with dedication and pride
Respect – We value our people, partners and those we help
Integrity – We work with honesty, sincerity and transparency
Collaboration – We partner with our people and the community to achieve our goals
Excellence – We conduct ourselves professionally and seek to do better in our work
About Tote Board
The Singapore Totalisator Board (“Tote Board”) was
established on 1 January 1988 under the Singapore
Totalisator Board Act (Chapter 305A). Tote Board
provides a legal avenue for betting and gaming,
which would otherwise be channelled to illegal
bookmakers. It holds the right to operate horse
racing and totalisators, lotteries (4D, Toto, Singapore
Sweep) and sports betting (football and Formula
One motor racing). The horse racing and totalisator
operations are conducted through its proprietary
club, Singapore Turf Club while 4D, Toto, Singapore
Sweep and sports betting are conducted through its
wholly-owned subsidiary, Singapore Pools (Private)
Limited.
Tote Board channels the surplus funds generated
from its gaming and betting operations as well as
casino entry levy from the two integrated resorts in
Singapore towards worthy causes — in the areas of
arts and culture, charity (social service), community
development, education, health and sports. We also
dedicate funds to develop programmes that build
capacity within the non-profit sector and explore
initiatives that can potentially fill social gaps, which
may or may not be obvious to society at large. More
information on Tote Board’s approved donations for
2013/14 is available in our Social Investment Report
section, page 12.
Tote Board
01
Foreword by the Chairman
MAKING LIFE BETTER FOR MORE
I
n the 26 years since the establishment of Tote Board in 1988, Singapore’s social landscape has evolved
considerably. Tote Board has, in tandem, refined its approach and initiatives over the years to continue to play its
part in uplifting the lives of our community. Singaporeans have experienced a steady rise in standard of living, with
not only basic needs such as education and health being catered to, but also having greater accessibility to the arts
and sports, which helps foster greater community bonding. We have also witnessed a more concerted drive towards
meeting the needs of the less privileged, evidenced by the momentum and support across the public, private and
people sectors. All these have been encouraging developments and Tote Board has contributed towards the various
areas, working with partners and stakeholders in our bid to give hope to and improve lives in our community.
Tote Board
02
While much has been done in the
past — with society evolving at a more
rapid pace than before — new and
multifaceted challenges have also
emerged, such as a greying population
and an increasingly strained social
service sector. The complexities and
often cross-cutting nature of these
challenges require modifications in our
grant-making, as well as adjustments
to our focus areas. Tote Board will
continue to proactively engage our
partners and stakeholders to develop
initiatives to meet ground needs. The
combined efforts from all stakeholders
will be greater than the sum of
individual endeavours, and
Tote Board looks to develop
partnerships, derive synergies and
play a catalytic role in making our
contributions. We have thus embarked
on an exercise to review our grantmaking strategies and approach.
Harnessing synergies and
strengthening the Tote Board family
Similarly, the collective strength of the
Tote Board family is greater than the
sum of its parts. Our Group members
— Singapore Pools and Singapore
Turf Club — provide legal channels
for betting and gaming, and commit
strongly to conduct their operations in
a professional and socially responsible
manner. The surpluses generated by
their operations are channelled to
Tote Board to, in turn, plough back to
society to fund worthy causes.
In FY2013, Singapore Pools was
awarded the World Lottery Association
Security Control Standard certification.
Singapore Pools is one of only two
operators in Asia to be awarded
this globally recognised standard
in the gaming industry. Singapore
Turf Club was awarded the widely
recognised Singapore Quality Class
and Service Class certifications
by SPRING Singapore. It has also
received bizSAFE Level 4 certification.
These awards are a reflection of
our Group’s commitment to achieve
better corporate governance through
continuous improvement in policies
and processes.
As socially responsible gaming
operators, both Singapore Pools and
Singapore Turf Club organise an annual
“Responsible Gaming Week”. Through
interactive displays and outreach
programmes, customers are provided
with information on how to avoid
excessive gaming, as well as contacts
for assistance on gambling-related
issues.
Our Group members also carry
out corporate social responsibility
programmes to raise funds for
worthwhile causes. Singapore
Pools’ “Football With A Heart 2013”
was a charity event that saw senior
executives from 40 corporations
come together on the football pitch to
raise $570,000 for nine beneficiaries.
Similarly, the “Breakfast With A Heart
2013” event raised funds for children
from low-income families. Singapore
Turf Club incorporated fund-raising
activities within their major events such
as the annual Singapore International
Racing Festival and the bi-annual
“Fun For All Under The Stars” family
carnival. The proceeds from these
fund-raising activities were channelled
to their adopted charity, Thye Hua
Kwan Early Intervention Programme
for Children and Infants Centre @
Woodlands.
As a Group, Tote Board will continue
to work with Singapore Pools and
Singapore Turf Club to reap greater
synergies and leverage our collective
strengths, as well as strengthen the
Tote Board family identity.
Leadership renewal
I would like to extend my deep
appreciation to Mr Tan Soo Nan for
his immense contributions during his
seven-year tenure as Chief Executive
of Tote Board, from 2007 to 2013.
Soo Nan has played a pivotal role in
expanding Tote Board’s grant-making
function, as well as addressing the
needs of the underserved through
various social innovation initiatives. He
guided the Board towards numerous
organisational improvements, including
a rebranding exercise and a fresh
Tote Board
03
set of vision, mission and values
as guiding principles for the Board.
Soo Nan handed over the reins of
leadership to Mr Fong Yong Kian, who
was seconded from the Administrative
Service, on 1 January 2014. Prior
to his appointment in Tote Board,
Yong Kian has served 25 years in
various ministries including Ministry of
Defence, Ministry of Home Affairs and
Ministry of Finance. I wish Soo Nan all
the best in his future endeavours and
warmly welcome Yong Kian on board.
I would also like to express my heartfelt
thanks to Ms Chew Gek Khim for her
invaluable contributions during her
seven years of service as a member of
the Board and Investment Committee,
up until December 2013. Tote Board
has benefitted greatly from her
remarkable acumen in grant-making,
as well as financial and investment
management.
We welcomed two new board
members in January 2014. A veteran
in fund management, Mr Ng Soo Nam
has also been appointed as a member
of our Investment Committee. Mr TK
Udairam has over 30 years’ experience
in healthcare operations, administration
and management. I am confident that
both Mr Ng and Mr Udairam will bring
fresh perspectives to the Board.
Meeting the challenges ahead
While the future holds many
challenges, I am confident that as we
remain forward-looking and grounded
by our mission and values, we will
be able to rise up to the challenges
ahead and continue to make a strong
impact on our community. I would also
like to express my appreciation to all
staff of the Tote Board family for their
contribution and dedication towards
their duties.
Moses Lee
Chairman
Message from the Chief Executive
CREATING A MEANINGFUL AND LASTING IMPACT
I
t is indeed a pleasure and privilege for me to be part of the Tote Board family. Since I came onboard
on 1 January 2014, I have learnt much about the workings of Tote Board and members of the Group,
as well as from our partners and external stakeholders. Many of them have my heartfelt respect for their
tireless efforts in delivering programmes and services to address social needs in the community.
Tote Board
04
The year in review
In FY2013, we approved a total of
$472 million in grants. Of this, $125
million will go towards the Care &
Share @ SG50 Movement, supporting
the vulnerable and needy in
Singapore. Besides giving significant
support towards strengthening our
communities and improving wellbeing
for all, Tote Board also contributed to
social innovation and capacity building
for the social sector.
To further catalyse fund-raising in the
community, we raised the maximum
grant for each fund-raising activity
from $20,000 to $50,000. In FY2013,
Tote Board pledged $9.7 million
towards 293 fund-raising events.
About $89.1 million has been raised
for worthy causes, representing 16
times the amount we had disbursed
under the Tote Board Fund-Raising
Programme.
One of the initiatives started by
Tote Board in 2010 is Caring Fleet
Services (CFS), in response to an
underserved area. CFS is a social
enterprise providing affordable and
dedicated transport services to
individuals with mobility difficulties.
We are proud that CFS has since
grown in its scale of operations.
For many years, community centres
have offered a common space for
people of all ages and walks of life
to come together and participate in
communal activities. Recognising that
the expectations of residents have
changed and that a resident-centric
approach is needed, Tote Board
supported the Residents’ Committee
Centre Building Programme. More
than 800 Residents’ Committee
Centres will be set up or upgraded
under the programme. These centres
will provide residents a place to call
their own, within walking distance
from their homes, to conduct their own
preferred programmes and activities.
In time, we believe that such local
spaces will foster closer ties among
residents and promote the spirit of
neighbourliness.
The next few years
As a grant-making organisation, it
is important for Tote Board staff to
keep in step with the rapid changes
in Singapore’s social sector. Over
the next few years, Tote Board aims
to be a more impactful grant-maker.
This entails that we develop a deep
understanding of the needs on the
ground and forge strong partnerships
with our stakeholders.
Once an unmet or underserved need
is uncovered, our staff can then swiftly
identify stakeholders and partner
them to work out and deliver impactful
solutions. To help our people develop
this outward-oriented, collaborative
and agile mindset, we regularly
organise visits to our partners and
invite speakers from voluntary
welfare organisations to share ground
realities. There are also sharing
sessions among staff on lessons
learnt from international best practices
and study trips.
As our challenges become more
cross-cutting in nature, a strong
partnership approach has become
critical to harness the perspectives,
expertise and strengths of each
partner and stakeholder. We will
therefore continue to deepen
our engagement of partners and
stakeholders and together with them,
co-create effective solutions to meet
social needs. We will also proactively
seek to share knowledge with our
partners and stakeholders, even as
we learn from them and from our
work.
Tote Board
05
To create lasting impact from our
funding, we will adopt an outcomesbased approach and embed this into
our portfolio of funding. We will have
to find innovative ways to measure
the impact of our funding, instead of
indicators that only measure inputs
or outputs. In the longer run, this will
enable us to gauge the real impact on
how the lives of those we are helping
have been uplifted.
We will also strive to serve our
customers better. We will be
conducting our first grantee perception
survey to collect feedback from our
customers and stakeholders, and
gauge their satisfaction levels when
interacting with us. This will help us
find ways to improve our service
delivery and processes in giving
grants.
A new case management system is
in the pipeline to improve operational
efficiency and enhance our grant
data analytics and management
reporting capabilities. The system will
help facilitate a smoother application
process for grantees seeking
Tote Board’s funding support. We will
also continue to enhance corporate
governance, as part of our continuous
improvement in grant-making.
We are determined to live up to our
vision of giving hope and improving
lives. All of us in Tote Board take pride
in being part of this noble endeavour
and are fully committed to making
Singapore a stronger community
and a better place.
Fong Yong Kian
Chief Executive
Corporate Governance Report
TOTE BOARD
Board Members (as at 30 June 2014)
Tote Board is committed to ensuring that the highest standards of corporate governance are practised throughout
Tote Board, and the members of its Group – Singapore Pools (Private) Limited (“Pools”) and Singapore Turf Club
(“STC”). The chairman and board members are appointed by the Minister for Finance and they are drawn from both the public
and private sectors. The Board met five times during the financial year. Apart from its statutory responsibilities, the Board sets the strategic
directions and policies relating to Tote Board’s donations, ensuring that the donations are channelled to worthy causes.
The Board also oversees strategic matters concerning the operations of Pools and STC. Chairman
Members - Mr Moses Lee Kim Poo
- Ms Chew Gek Khim (up to 31 December 2013)
- Mr Chan Heng Kee
- BG Chia Choon Hoong
- Mr Linus Goh Ti Liang
- Mr Kon Yin Tong
- Mr Ng Wai Choong
Alternate: Ms Jane Lim Hui Chen
- Mr Patrick Lee Kwok Kie
- Mrs Tan Ching Yee
- Ms Yeoh Chee Yan
- Mr Ng Soo Nam (from 1 January 2014)
- Mr TK Udairam (from 1 January 2014)
Investment Committee Members (as at 30 June 2014)
The Investment Committee sets and reviews policies on the investment of Tote Board’s surplus funds. It also reviews the
investment returns, performance of fund managers as well as approves the appointment/termination of fund managers,
custodians, investment consultants and related service providers. It met four times during the financial year.
Chairman
- Mr Moses Lee Kim Poo
Members - Ms Chew Gek Khim (up to 31 December 2013)
- Mr Nels R Friets
- Mr Linus Goh Ti Liang
- Mr Ng Wai Choong
- Mr Ng Soo Nam (from 1 January 2014)
Human Resources Committee Members (as at 30 June 2014)
The Human Resources Committee assists Tote Board in providing guidance on human resource strategies and policies,
including executive compensation and development. There were no meetings during the financial year.
Chairman Members - Mr Moses Lee Kim Poo
- Mr Patrick Lee Kwok Kie
- Mr Tan Soo Nan (up to 31 December 2013)
- Mr Fong Yong Kian (from 1 January 2014)
Tote Board
06
TOTE BOARD
Audit Committee (as at 30 June 2014)
The Audit Committee (“AC”) of Tote Board is chaired by a non-executive member of its board and includes
representatives from members of its Group, Pools and STC, which have their own ACs respectively. It met three times
during the financial year. The AC of Tote Board consists of:
Chairman Members - Mr Kon Yin Tong
- Mr Gn Hiang Meng
- Mr Noel Hon Chia Chun
- BG Chia Choon Hoong
The ACs of Tote Board, Pools and STC (“the Group”) meet regularly with the Group’s external and internal auditors and
their Management, to review accounting, auditing and financial reporting matters so as to ensure that an effective system
of internal controls is maintained within the Group.
Risk Management
The Group, through an established risk management process, regularly reviews its business, financial and operational
activities to identify areas of significant business and process risks and takes appropriate measures to control and
mitigate such risk exposures. All significant risk-related issues are highlighted to the respective ACs of the three
entities in the Group. The ACs, which are of the opinion that the risk management framework is adequate to manage
key business, financial and operational risks, will ensure that all significant risks highlighted to them are appropriately
addressed on a timely basis.
Internal Audit
The Group Internal Audit is an independent function that reports directly to the ACs of the respective entities. The Group
Internal Audit works closely with the external auditors and meets regularly with them to co-ordinate audit efforts. The
Group Internal Audit is responsible for evaluating the reliability, adequacy and effectiveness of the internal controls of
the Group, assisting the respective ACs in ensuring that the Group’s internal controls are adequate for proper recording
of transactions and safeguarding the assets of the Group. Significant non-compliances with the established practices,
procedures and regulations, as well as internal control weaknesses noted during audits by the Group Internal Audit,
together with the recommendations for improvement, are reported to the respective ACs.
Internal Controls
The Board ensures that the Management maintains a sound system of internal controls and effective risk management
policies to safeguard assets, maintain proper accounting records and produce reliable financial information for the
Group. The overall control framework includes clearly defined responsibility and financial authority limits, segregation
of duties, periodic reconciliation of financial information, compliance with internal financial policies, financial regulations
or government instruction manuals and maintenance of proper financial records. The ACs, with the assistance of
Group Internal Audit, have reviewed and the Board is satisfied that the system of internal controls maintained by the
Management throughout the financial year ended 31 March 2014 and up to the date of this report, is adequate to meet
the needs of the Group in its current business and operational environments.
Tote Board
07
MEMBERS OF THE GROUP - SINGAPORE POOLS (PRIVATE) LIMITED
Directors (as at 30 June 2014)
Chairman
- Mr Koh Choon Hui Directors
- Mr Poh Eng Seng (up to 27 June 2014)
- Mr Cheah Kim Teck
- Ms Jacqueline Poh
- Mr Tan Soo Kiang
- Mr Tan Soo Nan
- Mr Fong Yong Kian (from 10 April 2014)
- Mrs Trina Loh (from 20 April 2014)
Audit Committee Members (as at 30 June 2014)
Chairman
Members
- Mr Poh Eng Seng (up to 27 June 2014)
- Mr Tan Soo Kiang Remuneration and Nominating Committee Members (as at 30 June 2014)
Chairman
- Mr Koh Choon Hui Members
- Mr Cheah Kim Teck
- Mrs Trina Loh (from 20 April 2014)
MEMBERS OF THE GROUP - SINGAPORE TURF CLUB
Management Committee Members (as at 30 June 2014)
Chairman
- Mr Tan Guong Ching
Honorary Secretary
- Mr Jerry Sung Ye-Ven Honorary Treasurer
- Mr Ian Macdonald
Members
- Mr Gn Hiang Meng
- Mr Jimmy Lau
- Mr Sitoh Yih Pin
- Mr Chou Sean Yu
- Mr Tony Tan Keng Joo
- Mr Jeffery Chan Cheow Tong
- Mr Suresh Nair
- Mr Fong Yong Kian (from 1 January 2014)
Audit Sub-Committee Members (as at 30 June 2014)
Chairman
- Mr Gn Hiang Meng
Members
- Mr Chou Sean Yu
- Mr Tony Tan Keng Joo (from 1 April 2014)
Nominating and Remuneration Sub-Committee Members (as at 30 June 2014)
Chairman
- Mr Tan Guong Ching
Members
- Mr Jerry Sung Ye-Ven
- Mr Jimmy Lau
Tote Board
08
Tote Board Organisation Structure (as at 30 June 2014)
Tote Board
Chairman & Board Members
Investment
Committee
Corporate
Services
Division
Chief
Executive
Grant
Management
Division
Human
Resources
Committee
Audit
Committee
Special Duties
Division
Internal Audit
Department
Singapore
Pools
(Private)
Limited
Tote Board’s Principal Officers (as at 30 June 2014)
Chief Executive - Mr Fong Yong Kian
Director (Special Duties) - Mr Fong Heng Boo
Director (Grant Management)
- Mrs Boon-Ngee Sebastian
Director (Internal Audit)
- Ms Lim Ay Ling
Tote Board
09
Singapore
Turf Club
Major Initiatives in 2013/14
New Strategic Direction in Grant-making for Tote Board
In March 2014, the Board endorsed a new strategic direction in grant-making. This is mainly in response to the changing
landscape of social needs in Singapore, the need to strengthen community bonds, and build capacity within the non-profit
sector. In addition, Tote Board seeks to keep pace with international good practices to become a more impactful funder.
The strategic shift will principally involve:
a) Developing and delivering new initiatives, with funding targeted at vulnerable groups, building stronger
communities and enhancing the quality of life in Singapore. This will include building strategic partnerships, supporting
social innovation to help deliver sustainable solutions and building capacity within the non-profit sector;
b) Embedding an outcomes-based approach within Tote Board’s portfolio of funding;
c) Carrying out research to understand needs on the ground and to support evidence-based programmes. In addition,
Tote Board will proactively seek to share knowledge and good practices; and
d) Creating a new case management system to improve efficiency in grant-making as well as enhance capability for
data analytics and report management.
Singapore Pools Awarded International Accreditation for High Standard of Information Security & Integrity
Controls
In March 2014, Singapore Pools was awarded the World Lottery Association (WLA) Security Control Standard: 2012
(WLA-SCS: 2012) certification, making it the second member operator in Asia to achieve this globally recognised security
standard in the gaming industry.
WLA-SCS: 2012 is the lottery sector’s only internationally recognised security standard. The accreditation signifies
that Singapore Pools has met the stringent requirements of ISO/IEC 27001:2005, together with 111 additional security
requirements set forth by the WLA, including 90 gaming specific security and integrity controls.
Singapore Pools CEO Appointed as Co-chair of Responsible Gambling Forum
The Responsible Gambling Forum, set up by Ministry of Social and Family Development in April 2013, provides a platform
for the gaming industry and community leaders to come together to jointly promote responsible gaming practices. The
Chief Executive Officer of Singapore Pools co-chairs the forum, which has 16 members comprising representatives from
community organisations as well as the gaming industry.
Tote Board
10
Major Initiatives in 2013/14
Singapore Turf Club Awarded Singapore Quality Class and Service Class Certifications
Singapore Turf Club was awarded the widely recognised Singapore Quality Class (SQC) and Service Class (S-Class)
certifications by SPRING Singapore in early April 2014.
Benchmarked with international excellence frameworks, these awards are recognition of the high standards of service
and business practices in the Club. The SQC certification addresses all seven categories of excellence under the
Business Excellence framework, namely Leadership, Planning, Information, People, Processes, Customers and
Results. The S-Class certification covers six dimensions of excellence, with emphasis on service capabilities, including
service leadership, service agility, customer delight and customer experience.
The certifications are also a reflection of the Club’s continual strive for improvements in all areas of its business
practices, so as to deliver superior results for its stakeholders.
Singapore Turf Club Attains BizSAFE Level 4
In March 2013, Singapore Turf Club was awarded BizSAFE Level 3 competency by the Workplace Health and Safety
Council (WSH Council), which was set up by the Government to promote workplace safety and health and to reduce
injuries and illnesses at the workplace. This award signified that STC had complied fully with the requirements of the
Workplace Safety and Health Act (Chapter 354 A).
Subsequently, STC went further to complete the bizSAFE course in Workplace Safety and Health Management System
(WSHMS). STC also demonstrated its ability to develop the WSHMS Implementation Plan to meet best practices
of safety standards such as SS506 or OHSAS 18001. In recognition of these achievements, STC was awarded the
bizSAFE Level 4 certification by the WSH Council in November 2013.
Tote Board
11
As a grant-maker, we make it our responsibility to direct funds towards
worthy programmes that benefit all who call Singapore home.
Social
Investment
Report
We take pride and care in ensuring that the most vulnerable – those who
have fallen through the cracks in our fast developing economy – are taken
care of and can lead dignified lives.
It is our goal that every dollar we give is an investment that reaps maximum
social returns, and helps build a stronger, better Singapore.
In FY2013, Tote Board approved a total of $472 million in grants. The table
below shows a breakdown of our approvals, based on our six administrative
sectors:
Approval
$M
Arts and Culture
Charity (Social Service)
Community Development
Education
Health
Sports
20
203
195
44
3
7
Total
472
The Social Investment Report is a reflection of Tote Board’s commitment to
our vision of giving hope and improving lives. The report is organised into five
sections, each covering the following social outcomes: equitable opportunity,
a stronger community, improved wellbeing, catalysing fund-raising and
greater social innovation. Programmes featured include those approved or
carried out in FY2013.
Tote Board
12
Social Investment Report
Equitable Opportunities for the Vulnerable
P
roviding equitable opportunities to uplift the
vulnerable helps build an inclusive society, in
which every individual can realise his or her full
potential and lead a life of dignity.
This has been the driving force behind Tote Board’s
contribution towards programmes that show care
and concern for the needy. This includes our
support for the Care & Share @ SG50, which is
part of Singapore’s 50th anniversary celebrations.
The government has pledged $250 million in
grants to match donations raised by Voluntary
Welfare Organisations (VWOs) and ComChest,
of which $125 million is funded by Tote Board.
In FY2013, we also supported the ‘integrated
community space’ initiative by SG Enable to
integrate persons with disabilities into society, as
well as a new welfare home for destitute persons.
Care & Share @ SG50
Care & Share is a national fund-raising and volunteerism
movement for the social service sector, in conjunction with
Singapore’s 50th anniversary celebrations. It seeks to
nurture a caring community spirit by engaging the broader
community, VWOs, corporations and community partners
- in a concerted effort to help the needy and vulnerable in
Singapore.
Tote Board will be funding $125 million, of the $250 million
grants pledged by Government, to match donations raised
by VWOs and ComChest. This will go towards helping
VWOs raise capabilities to better serve needy and less
fortunate Singaporeans. The Care & Share @ SG50 will
also galvanise the community in supporting worthwhile
charitable causes.
In our continuing efforts to help raise the quality
of human resource and expand the capacity of
the social service sector, we provided support
to the Social Service Institute. Our efforts were
further augmented by the Tote Board Overseas
Scholarship programme and Non-Profit
Management Programme for the 21st Century, to
help expand the breadth of knowledge and depth
of experience of professionals in the non-profit
sector.
Tote Board has been a long-standing contributor to
the social service sector in Singapore. Since 2006,
Tote Board has contributed $624.7 million to the
Tote Board Social Service Fund.
Tote Board
13
Integrating persons with disabilities
The integrated community space at Redhill,
set up by SG Enable, is slated to be opened
in the second half of 2015. Tote Board will be
contributing $8.9 million towards this pathbreaking endeavour.
Apart from providing better employment
opportunities for persons with disabilities,
the space will be an inclusive environment
where partners from the community, private
and public sectors can come together
and leverage each other’s expertise and
resources.
The space will also house a career centre
offering vocational assessment, job placement
and support services to these individuals, as
well as potential employers.
Guests at the launch of the integrated community space planting a heart
of pebbles. Written on each pebble were words of encouragement and
aspirations to symbolise partnership with the community.
Supporting the underprivileged through
ComChest
ComChest has been raising funds for charities since
1983. In FY2013 alone, it funded over 200 critical
and strategic social service programmes offered by
83 VWOs. These programmes reached out to over
300,000 beneficiaries comprising children with special
needs, youths-at-risk, persons with disabilities, families
in need, and elderly persons requiring community
support.
ComChest helps alleviate the burden of fund-raising on
VWOs, particularly the smaller ones. This allows VWOs
to focus on delivering social service programmes.
Tote Board renewed its funding support for ComChest
from FY2014 to FY2016, continuing its legacy of
uplifting the underprivileged through ComChest. This
enables ComChest to channel all donations raised to
support the VWOs, as Tote Board funds most of its
operating costs.
A new welfare home
Tote Board supports the funding of a new welfare
home for destitute persons. The home will be in
operation by the first quarter of 2016. Rehabilitation
programmes and activities will be provided in the home
to enhance occupants’ mental and physical wellbeing,
thereby preparing them for their eventual re-integration
into the community. Volunteers in the community will
also be roped in to complement the rehabilitative
efforts of the home’s staff.
Architect’s impression of the new welfare home.
Tote Board
14
Expanding social service resources
The Social Service Institute (SSI) is the human capital development
arm under the National Council of Social Service. It is a key integrated
learning hub in Singapore for training, practice, resource and career
services for the social service sector.
To address rising demand for more quality social service manpower,
Tote Board’s commitment towards the institute is intended to help
develop better curriculum and training delivery, and deepen capabilities
of social service practitioners.
SSI brings together practitioners to collaborate and share insights
and industry best practices from their working experience. The
knowledge gained from these sharing sessions will be channelled to
the resource hub for dissemination to the social service sector. SSI will
also leverage e-learning in addition to traditional classroom training, to
provide greater training flexibility for social service practitioners in their
ongoing professional development.
Social service practitioners in a sharing session at
the Social Service Institute.
In FY2013, the SSI achieved 9,901 training places across 330 course
runs and other capability building initiatives.
Tote Board Overseas Scholarship for Non-Profit
Organisations
Building 21st century leaders
Tote Board has awarded 29 scholarships, of whom five
were selected in FY2013. These scholars are sponsored
by Tote Board to attend leadership courses at top
universities, such as Harvard and Stanford, renowned for
non-profit leadership programmes.
Through the 15-day executive programme, customised to
Singapore’s social landscape, participants gleaned and
exchanged hands-on insights on non-profit management
and leadership. To date, a total of 120 NPO staff, including
41 from the 2014 cohort, have benefitted from the
programme.
The Tote Board Overseas Scholarship for Non-Profit
Organisations was instituted in 2008. The programme aims
to enhance capacity in the non-profit and social service
sectors by developing their leaders.
The Non-Profit Management Programme for the 21st
Century is a collaborative effort between Tote Board and
the Lee Kuan Yew School of Public Policy to enhance the
knowledge and skills of middle and senior management
staff from non-profit organisations (NPOs).
Changing lives through football
Delta League is a bi-annual, island-wide youth engagement
programme jointly organised by National Crime Prevention Council and
Singapore Police Force in the form of a football tournament that runs
through the school holidays in June and December. This is achieved
by harnessing the energy of the youths through football and healthy
activities that help steer them away from crime and mischief, and at
the same time develop their sense of social responsibility.
In FY2013, Tote Board pledged support towards this programme as we
see the value of upstream intervention for youths-at-risk. The youths
are also given opportunities to engage in the community and help
those whose circumstances are worse than their own. By developing
socially responsible behaviour and appreciating the rewards of
perseverance, resilience and discipline, the youths are motivated to
believe in themselves and invest in their education and future.
Off the streets, on the field in a Delta League match.
Delta League has engaged and shaped the lives of youths-at-risk
with considerable success. Since inception in 2011, the league has
increased from 16 teams to the present 104 in 2013. The programme
is expected to have 192 teams by end of 2014.
Tote Board
15
Strengthening Communities
A
cohesive and inclusive community is the
foundation for a resilient nation. With this
in mind, Tote Board approved $222 million in
grants for community development, sports and
the arts programmes in FY2013, in line with our
commitment to build a strong community
in Singapore.
Over the years, Tote Board has supported
several major events to strengthen community
bonding, such as the annual Chingay
celebrations, National Day Parade, Marina Bay
Countdown, festive light-ups for Chinese New
Year, Hari Raya and Deepavali, as well as the
Orange Ribbon celebrations.
Tote Board also funded more than 80 grassroots
organisations across Singapore to carry out
community activities for residents. These
activities help promote harmonious living among
residents, foster social bonding, racial harmony
and inter-generational interaction.
Through funding for sport and the arts,
Tote Board endeavours to strengthen social
bonds and foster a more cohesive and vibrant
community in Singapore. Sport has the power
to inspire, unite the community and instil pride in
the nation. Singapore’s achievements at recent
events such as the SEA Games and ASEAN
Paralympic Games attest to this.
On the arts front, we continued to contribute
towards community arts programmes by the
Esplanade, Singapore Symphony Orchestra and
Singapore Chinese Orchestra. Through creating
shared experiences, the arts has the power to
connect the community and bolster the sense
of national identity in Singapore’s multi-cultural
heritage.
Tote Board
The Singapore contingent at the Asian Youth Paralympic
Games 2013.
Supporting Team Singapore at Paralympic
Games
When our national athletes excel at international sporting
events, they not only bring honour to the nation, but
also rally our people in a shared sense of national
pride and joy. This is even more so when our athletes
with disabilities display tremendous determination in
overcoming their challenges, inspiring the heart of every
Singaporean.
Tote Board has
been supporting
our paralympic
athletes to
participate in
major international
sports
competitions.
This includes the
recent ASEAN
Paralympic
Games 2014
and the Asian
Youth Paralympic
Games 2013.
Victory over personal challenges;
glory for our nation.
16
The Courts Young Lions, Singapore’s Under-23 football team,
celebrating a goal in the S.League.
A coaching clinic by the Football Association of Singapore.
Rallying the nation through football
Drawing more spectators than any other sport, football
possesses the power to rally Singaporeans from all
walks of life.
With this in mind, Tote Board contributed to the
training and development of Singapore’s Under-23
(U23) football team. Through a new training model,
the U23 team will be given opportunities to train
together in a sustained competitive environment. The
team will also benefit from a dedicated technical and
support team that specialises in football coaching and
sports science. By implementing this new training
model, the Football Association of Singapore will gain
invaluable experience and will incorporate the model
into Singapore’s football development system.
After an interval of 22 years, the 28th SEA Games
will return to Singapore in June 2015. Competing on
home ground, the U23 national squad will represent
Singapore, igniting the Kallang Roar at our National
Stadium once again.
Tote Board
17
Arts for all
The diverse array of performances
programmed by the Esplanade has helped
bring the arts closer to our people. The
Esplanade’s community outreach efforts
serve to cultivate a lifelong passion for
arts through making the arts accessible to
Singaporeans from all walks of life.
Seventy percent of the Esplanade’s
performances are offered free. They include
programmes that celebrate our multiracial
culture and productions for students and
young children. Working with the social
sector, the Esplanade also provides
community art-based activities for the
underprivileged and seniors, such as the
monthly “Coffee Morning and Afternoon Tea”
concert series featuring nostalgic golden hits
by veteran local artists. Community programmes by the Esplanade reach out to people of all ages.
Every year, the Esplanade reaches out to
almost two million patrons through 3,000
performances, fostering social bonds and
raising awareness of the arts.
Tote Board
18
The 30,000 strong audience at “Our People, Our Music” – a
spectacular community concert that set two new Guinness World
Records for Singapore.
SIFA included a special performance
involving 36 Singaporeans with special
needs. Koong Su Yao (in the picture) is
one of the performers.
Uniting all ages through music
The “Our People, Our Music” (OPOM) 2014 concert by the
Singapore Chinese Orchestra will be fondly remembered
as a mega-concert for years to come. The event put
Singapore in the international spotlight by setting two new
Guinness World Records for ‘Largest Chinese Orchestra
Performance’ and ‘Largest Chinese Drum Ensemble’.
With a diverse ensemble across ages and from different
walks of life, OPOM brought together nearly 5,000
musicians and singers from schools, clan associations,
community clubs and organisations to perform as one,
at the newly constructed National Stadium. The evening
ended with an all-time favourite National Day theme
song, titled ‘Home’, striking a common chord with the
30,000-strong audience.
O.P.E.N.ing doors to the community
Tote Board continued to support community arts this year,
through programmes such as the Singapore International
Festival of Arts (SIFA). A key highlight of SIFA is a special
performance by Theatre Hora and 36 Singaporeans with
special needs. Theatre Hora is a Swiss theatre company
that provides professional theatrical training for persons
with learning disabilities. Following a unique knowledge
transfer workshop with the 36 individuals from Association
for Persons with Special Needs Centre for Adults, Down
Syndrome Association and The Y-Stars, two performances
were conceived and showcased to the public.
Participants at a theatre workshop, as part of the O.P.E.N.
(Open, Participate, Enrich and Negotiate) Art Academy –
a pre-festival public outreach programme.
Giving these individuals with special needs the opportunity
to showcase their abilities to the public has helped them
express their creative instincts and enhance their sense of
self-worth. It also helped them realise their potential to rise
above their learning disabilities and contribute to society
through the arts.
Tote Board
19
Promoting Wellbeing
T
he Tote Board Community Healthcare Fund (TBCHF) was launched in 2009, to support
community efforts in providing preventive healthcare programmes and better integrated
care in emerging areas of need. The aims of the fund are to build a healthier nation,
enhance quality of life and improve accessibility of healthcare services for the needy and
disadvantaged.
Since 2009, Tote Board has committed $130 million to the TBCHF. In FY2013, numerous
vital health programmes ranging from programmes for children and elderly, to communitywide preventive health initiatives, were carried out.
Dignified home care for the elderly
With the marked increase in Singapore’s ageing population, demand for in-home
care as an alternative to nursing and convalescent homes has increased. Staying at
home gives seniors a greater sense of familiarity and familial comfort.
Personalised care at home also leads to lower stress and fewer re-hospitalisation
incidents. To this end, the Care for Elderly Foundation launched a new initiative –
Code 4 Home Care – in October 2013. The programme seeks to offer affordable
home healthcare to patients with high risk of recurrent hospital admissions.
Code 4 Home Care also makes medical equipment and devices available for home
use at affordable rental rates. Caregivers are given training, counselling and access
to relevant resource materials. By preventing unwarranted hospitalisation and
premature institutionalisation, patients can live in comfort and dignity in their homes.
Based in the east, Code 4 Home Care currently serves 181 home care clients, after
nine months of operation. It aims to reach a total of 574 new home care patients over
the next three years.
Homecare physician attending
to a patient.
Apart from Code 4 Home Care, the TBCHF also supports similar home care
programmes serving other parts of Singapore.
Connecting caregivers
With life expectancy increasing, the caregiving journey of families caring
for their loved ones who are ageing or with a disability will likely be
prolonged too. Community-based support programmes will be critical in
helping caregiving families to balance their caregiving duties with work and
other family obligations while providing quality care for their loved ones.
Supported under the TBCHF, the Caregivers Connect programme by
AWWA Centre for Caregivers provides a support network for caregivers
to learn and share through life-skills training and peer support meetings
to engender mutual help and support. The programme offers a range of
activities to address the psycho-social needs and mental wellbeing of at
least 1,000 caregivers and their families each year.
Award recipient - Ms Mariah Bte Ahmad with her nephew Mikhail – at the Model
Caregiver Awards ceremony by AWWA Centre for Caregivers in November 2013.
Tote Board
20
Each meal includes the four major food groups
and contains at least 20% whole grains.
Healthier meals for children
Reaching out to children in their formative years, the Healthy Meals in Childcare Centres
Programme (HMCCP) — led by the Health Promotion Board — is part of an initiative to prevent
and control obesity in Singapore.
Supported through the TBCHF, the HMCCP is targeted at the diet of children from 240 childcare
centres, to help ensure they are getting balanced meals, portioned to the four major food groups.
HMCCP also offers training to the cooks at the childcare centres to help them cook healthier
meals, by reducing fat, oil, sugar and salt content and including healthier ingredients in the meals.
Through the consumption of hearty and nutritious meals, the children learn the importance of a
balanced diet.
Travelling across the island to reach out and promote a healthy lifestyle.
The bus interior is outfitted with six stations covering
nutrition, physical activity, myopia prevention, hygiene,
mental wellness and oral health.
Health on wheels
A Health Promotion Board’s initiative funded through the TBCHF, the “HealthOn-Wheels” Healthy Lifestyle bus is a mobile ‘playground’ developed to educate
children on the importance of a healthy lifestyle and good habits.
Travelling to pre-schools, primary schools and community centres, the facilitators
on the bus engage children in topics ranging from nutrition, physical activity,
myopia prevention, hygiene, mental wellness to oral health. In 2013, the
programme reached out to 30 pre-schools, benefitting 4,300 pre-schoolers.
Tote Board
21
“Healthier Child, Brighter Future” parent resource toolkits are distributed at different life stages respectively - to prenatal mothers at
Obstetrics & Gynaecology clinics, at delivery of babies in hospitals, and during the pre-school years in childcare centres.
Healthier child, brighter future
To improve the health literacy of parents-to-be, parents,
caregivers and other stakeholders, the “Healthier Child,
Brighter Future” toolkit is distributed free of charge to
parents and parents-to-be. Published in the four major
languages, the toolkit consists of three books covering the
different early development milestones of a child’s life.
From July 2013 to March 2014, 163,170 toolkits were
distributed to pregnant mothers and parents of newborns
and pre-schoolers. 90% of recipients expressed positive
feedback on the depth of coverage and relevance of the
material. As part of outreach, workshops and skits were
also held in community centres, pre-schools, schools and
workplaces.
Tote Board
A capability building session with parents, as part of the
“Healthier Child, Brighter Future” initiative.
22
Our Fund-Raising Programme
Catalysing fund-raising potential
In 2006, Tote Board started a structured fund-raising programme to
catalyse fund-raising efforts and galvanise the community to donate to
worthy causes. Over the years, our programme has supported fundraising initiatives of many organisations including NPOs, schools, private
sector companies, as well as arts and sports entities.
In FY2013, after a review, Tote Board increased the funding cap from
a maximum of $20,000 to $50,000 for each fund-raising event. This
increased contribution serves to motivate organisations to raise more
funds and in turn, better meet the needs of the underserved.
S$’000
380,000
Tote Board pledged $9.7 million to support 293 fund-raising events
in FY2013. $89.12 million has been raised through these events,
representing 16 times the $5.57 million disbursed by Tote Board1.
360,000
Some beneficiaries organise unique and creative events that help
showcase the talents and abilities of their clients. Metta Welfare
Association, for example, organised a ‘Colours of Life – Life Palette Drawn
from Within’ exhibition in November 2013. The exhibition featured batik
paintings and pottery pieces lovingly handcrafted by Metta School Alumni
youths with special needs. Visitors to the exhibition were treated to a
fun-filled day of activities, and presented with the opportunity to purchase
handcrafted merchandise from Arts@Metta. Funds raised were chanelled
to the Metta School Alumni programmes.
340,000
320,000
Every project represents the aspirations of our citizenry in doing their part
to help those in need.
[1] Tote Board is in the process of making payments for fund-raising events
approved in FY2013. Hence, the eventual amount disbursed by Tote Board and the
amount raised by organisations through fund-raising events will increase.
Tote Board
23
300,000
2011
2012
2013
The average funds raised per
fund-raising event by organisations
have progressively increased over
the past three years.
FY
Contributing to Social Innovation
T
he dedication and efforts of social enterprises go a long way in uplifting the lives of
vulnerable groups in society. To address the needs of these groups, Tote Board continues
to explore innovative ways to deliver better social outcomes by seed-funding social enterprises.
Technology and innovation have the potential to impact the daily lives of vulnerable groups.
The Tote Board Social Innovation Research (SIR) Fund has been instrumental in bridging
technical expertise and needs on the ground. Through SIR Fund, the polytechnics and the
Institute of Technical Education (ITE) have been able to translate their creative ideas into
solutions that can potentially enhance the lives of the vulnerable.
CFS’ vans are fitted with wheelchair lifts and high
roofs to offer comfort for boarding.
CFS’ team of customer service officers.
Caring Fleet Services Ltd
No. of Passenger Trips;
three-year comparatives
Commuting is a task most of us do with ease every day.
However, the commuting journey can be daunting for the
wheelchair-bound. For this reason, Tote Board started the
Caring Fleet Services (CFS) in 2010.
more than
33,000
CFS is a social enterprise that provides affordable and
dedicated transport services to individuals with mobility
difficulties. The availability of the CFS’ services enables
wheelchair users to travel more easily, and also lessens
their caregivers’ load.
In 2013, CFS provided more than 33,000 passenger trips
for the wheelchair-bound for medical visits, school and
workplace commutes. Apart from its ‘Book-a-Ride’ service,
CFS serves VWOs such as beneficiaries of SPD (formerly
known as Society for the Physically Disabled) and Rainbow
Centre. CFS also provides jobs for seniors by employing
them as customer service officers.
To meet increased demand, CFS expanded its fleet from 10
to 15 vans in 2013. There are also plans to further increase
the number of vans.
Tote Board
in 2013
18,200 14,200
70
24
in 2012
%
in 2011
increase in total passenger trips
in 2013 in comparison with 2012
SE Hub Ltd
SE Hub Ltd (SE Hub) was formed in 2011 to support
the growth of social enterprises by providing funding,
mentorship and business advisory opportunities. The
purpose of this initiative is to grow viable social enterprises
that can create social impact in Singapore.
Since inception, SE Hub has engaged 70 potential social
enterprises, including 14 in FY2013 to explore investment
opportunities.
As of FY2013, SE Hub has invested in six social
enterprises, including T.Ware and Viva Kids.
T.Ware
T.Ware Pte Ltd invented
a lightweight jacket to
provide relief to children
and adults suffering
from sensory processing
disorders such as autism,
Attention Deficit Disorder
(ADD) and Post Traumatic
Stress Disorder (PTSD). Known as T.Jackets, the clothing
produces user-controllable pressure to simulate a hug.
This helps to calm the wearer by providing them a sense
of comfort.
T.Jackets are used in some
occupational therapy centres, early
intervention centres and schools
such as the SPD Ability Centre
and Fei Yue Early Intervention
Programme for Infants and
Children Centre.
Viva Kids
Viva Kids Pte Ltd offers quality yet affordable academic,
sports and drama enrichment programmes to heartland
primary schools, with a focus on children from low-income
families. The programmes seek to help students achieve
better academic performance and greater self-confidence,
thereby paving the way to greater opportunities for a
brighter future.
From October 2013 to April 2014, Viva Kids increased
the number of heartland schools supported from eight to
15. In the same period, there was an increase from 66
to 149 students from financially-needy backgrounds who
benefitted from the programme. The subsidies it gives to
financially-needy students amount to about $160,000 a
year on an annualised basis.
T.Ware’s therapeutic jacket produces
simulation of a hug to calm the wearer.
Tote Board
25
MicroCredit Business Scheme
In collaboration with SE Hub Ltd and DBS, the MicroCredit Business Scheme (MCBS) was piloted by Tote Board
in 2011 to make unsecured loans at below-market interest rates to Singaporeans. MCBS is targeted at individuals
such as discharged bankrupts, ex-offenders and laid-off matured workers who have difficulty in finding a job, and
are unable to secure loans from financial institutions to start or expand a small business.
As of March 2014, MCBS approved 56 applications amounting to about $1.3 million. As of now, a majority of the
borrowers have experienced positive impact such as higher income, savings and more quality time with their
families, as a result of the scheme.
Bridging innovation and social need
Each year, Tote Board invites innovative proposals targeted at
improving social services delivery, from polytechnics and the
ITEs. Selected projects are supported under the Social Innovation
Research (SIR) Fund, up to the proof-of-concept stage.
Participants at the 2013 Social Innovation
Research Forum.
Since the fund’s inception in FY2010, 88 projects have been
approved. Projects are showcased at the SIR Forum, an event
that aims to provide a networking platform for the polytechnics,
ITEs and the VWOs to exchange ideas and explore areas for
collaboration.
At the 2013 SIR Forum, 21 projects were showcased, such as a
fall detection device for the elderly and persons with disabilities, as
well as an application to help children with autism.
ITE’s fall detection device has an integrated emergency alert
system targeted for use by the elderly and persons with disabilities.
When a fall is detected or the panic button is pressed, the device
will activate an emergency call via a hands-free speaker phone, to
the next-of-kin.
Turning twigs to park benches: a project
showcasing the recycling of wood and horticultural
wastes into park facilities and pavement blocks.
Another project presented at the forum was a
mobile application that serves to enhance the
social skills of autistic children. Developed by
Republic Polytechnic, the application is intended
as a therapeutic intervention for the children to
practice social skills such as responding, taking
turns, sharing and working together. In contrast
with current technology, which allows only one
user at a time, the application supports multipleuser interaction. Through this collaborative
environment, autistic children are given
opportunities to learn how to interact comfortably
with others through play.
With the capability for multipleuser interaction, the application
enables autistic children to
practice social skills and develop
confidence among peers.
Tote Board
26
The fall detection device is able
to activate an emergency call to
next-of-kin via a hands-free speaker
phone, enabling swifter assistance
in the event of mishaps.
Financial
Highlights
Tote Board
27
Review of Financial Performance
SINGAPORE POOLS (PRIVATE) LIMITED
Year ended
31 March 2014
$M
Lotteries and Other Products
Turnover Prizes/Dividends Paid Betting Tax Paid to Government Commission Paid Revenue from Lotteries and Other Products Investment and Other Income Total Revenue Expenditure 6,343
(4,241)
(1,340)
(44)
718
3
721
(123)
Surplus
598
Year ended
31 March 2013
$M
6,247
(4,136)
(1,325)
(42)
744
2
746
(123)
623
TABLE 1
The turnover was $6,343 million; an increase of $96 million, or 1.5% as compared to the previous year. The increase was
mainly due to a higher turnover from Sports and Toto betting.
SINGAPORE TURF CLUB
Year ended
31 March 2014
$M
Totalisator
Turnover Dividends Paid Betting Tax Paid to Government Revenue from Totalisator Other Racing Related Revenue Sundry Income Total Revenue Expenditure
1,545
(1,221)
(82)
242
27
10
279
(263)
Surplus
16
Year ended
31 March 2013
$M
1,568
(1,246)
(83)
239
26
10
275
(262)
13
TABLE 2
There were 97 Singapore race days, with a total of 994 races, giving an average of 10 races on each Singapore race day.
Altogether, there were 5,336 races for the year, including races from Malaysia, Hong Kong, Australia, South Africa, Europe,
Macau and other countries.
The totalisator turnover was $1,545 million; a slight decrease of $23 million, or 1.5% over the previous year. The decrease
was mainly due to marginally higher turnover in the previous year because of exceptionally heavy betting on hot favourites
in that year.
Tote Board
28
SINGAPORE TOTALISATOR BOARD (GROUP)
Surplus of Singapore Pools (Private) Limited Surplus of Singapore Turf Club Net Investment Income and Other Income of
Casino Entry Levy of Singapore Totalisator Board
Expenditure of Singapore Totalisator Board Donations of Singapore Totalisator Board
Arts and Culture Charity (Social Service) Community Development Education Health Sports Total Donations
Surplus of the Group
Year ended
31 March 2014
$M
Year ended
31 March 2013
$M
598
16
623
13
179
151
(24)
182
170
(16)
(103)
(108)
(43)
(16)
(13)
(114)
(397)
(113)
(82)
(61)
(10)
(17)
(112)
(395)
523 577
TABLE 3
The Group’s surplus decreased by $54 million; from $577 million in 2012/13, to $523 million in 2013/14. The decrease was
mainly due to a decrease in Singapore Pools (Private) Limited’s surplus and a lower collection of casino entry levy.
DONATIONS
The Group’s outstanding donation commitments are as follows:
Arts and Culture Charity (Social Service) Community Development Education Health Sports Total
As at
31 March 2014
$M
As at
31 March 2013
$M
349
603
432
92
148
664
436
509
286
68
164
785
2,288
2,248
TABLE 4
The total outstanding donation commitments increased by 1.8% in comparison to the previous year.
Tote Board
29
Performance Indicators
S$’000
2,500,000
TOTALISATOR TURNOVER
LOTTERIES AND OTHER
PRODUCTS TURNOVER
S$’000
6,600,000
6,400,000
2,000,000
6,200,000
6,000,000
1,500,000
5,800,000
1,000,000
5,600,000
5,400,000
500,000
5,200,000
09/10
10/11
11/12
12/13
13/14
FY
ANNUAL NET SURPLUS
S$’000
500,000
5,000,000
09/10
11/12
12/13
13/14
FY
ANNUAL CONTRIBUTION TO
GOVERNMENT (BETTING
TAX, INCOME TAX AND
CONTRIBUTION TO THE
CONSOLIDATED FUND)
S$’000
1,540,000
400,000
10/11
1,500,000
300,000
1,460,000
200,000
1,420,000
100,000
09/10
10/11
11/12
12/13
13/14
FY
Tote Board
1,380,000
09/10
30
10/11
11/12
12/13
13/14
FY
Financial
Statements
32
33
36
37
38
39
40
Tote Board
Statement by the Singapore Totalisator Board
Independent auditors’ report
Statements of financial position
Statements of comprehensive income
Statements of changes in capital and reserves
Consolidated statement of cash flows
Notes to the financial statements
31
Singapore Totalisator Board and its Subsidiaries
Statement by the Singapore Totalisator Board for the year ended 31 March 2014
Statement by the Singapore Totalisator Board
In our opinion:
(a)
the accompanying financial statements of the Singapore Totalisator Board (the “Board”) and its subsidiaries (the “Group”) as
set out on pages 36 to 76 are drawn up so as to give a true and fair view of the state of affairs of the Group and of the Board
as at 31 March 2014, the results from operations and changes in capital and reserves of the Group and of the Board and cash
flows of the Group for the year ended on that date in accordance with the provisions of the Singapore Totalisator Board Act
(Chapter 305A, 1999 Revised Edition) and Statutory Board Financial Reporting Standards; and
(b)
at the date of this statement, there are reasonable grounds to believe that the Board will be able to pay its debts as and when
they fall due.
On behalf of the Board
Moses Lee
Chairman
Fong Yong Kian
Chief Executive
24 June 2014
Tote Board
32
Independent auditors’ report for the year ended 31 March 2014
Members of the Board
Report on the financial statements
We have audited the accompanying financial statements of Singapore Totalisator Board (the “Board”) and its subsidiaries (the
“Group”), which comprise the statements of financial position of the Group and of the Board as at 31 March 2014, the statements
of comprehensive income and statements of changes in capital and reserves of the Group and of the Board and the consolidated
statement of cash flows of the Group for the year then ended, and a summary of significant accounting policies and other explanatory
information, as set out on pages 36 to 76.
Management’s responsibility for the financial statements
The Board’s management is responsible for the preparation and fair presentation of these financial statements in accordance with
the provisions of the Singapore Totalisator Board Act, (Chapter 305A, 1999 Revised Edition) (the “Act”) and Statutory Board Financial
Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial 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 about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the
financial 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 financial 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
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Tote Board
33
Opinion
In our opinion, the consolidated financial statements of the Group and the statement of financial position, statement of comprehensive
income and statement of changes in capital and reserves of the Board are properly drawn up in accordance with the provisions of the
Act and Statutory Board Financial Reporting Standards so as to present fairly, in all material respects, the state of affairs of the Group
and of the Board as at 31 March 2014 and the results and changes in capital and reserves of the Group and of the Board and cash
flows of the Group for the year ended on that date.
Report on other legal and regulatory requirements
Management’s responsibility for compliance with legal and regulatory requirements
Management is responsible for ensuring that the receipts, expenditure, investment of moneys and the acquisition and disposal of
assets, are in accordance with the provisions of the Act. This responsibility includes implementing accounting and internal controls
as management determines are necessary to enable compliance with the provisions of the Act.
Auditors’ responsibility
Our responsibility is to express an opinion on management’s compliance based on our audit of the financial statements. We
conducted our audit in accordance with Singapore Standards on Auditing. We planned and performed the compliance audit to obtain
reasonable assurance about whether the receipts, expenditure, investment of moneys and the acquisition and disposal of assets, are
in accordance with the provisions of the Act.
Our compliance audit includes obtaining an understanding of the internal control relevant to the receipts, expenditure, investment
of moneys and the acquisition and disposal of assets; and assessing the risks of material misstatement of the financial statements
from non-compliance, if any, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Because of the inherent limitations in any accounting and internal control system, non-compliances may nevertheless occur and not
be detected.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on management’s
compliance.
Tote Board
34
Opinion
In our opinion:
(a)
the receipts, expenditure, investment of moneys and the acquisition and disposal of assets by the Board during the year are,
(b)
proper accounting and other records have been kept, including records of all assets of the Board whether purchased, donated
(c)
proper accounting and other records of those subsidiaries incorporated in Singapore of which we are the auditors have been
in all material respects, in accordance with the provisions of the Act;
or otherwise; and
kept in accordance with the Singapore Companies Act, Chapter 50.
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
24 June 2014
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35
Financial statements for the year ended 31 March 2014
Statements of financial position
As
at 31 March 2014
Note
2014
Group
$
2013
$
Assets
2014
$
Board
2013
$
Property, plant and equipment
4
646,153,872
669,002,454
456,729,129
480,361,572
Investment in subsidiaries
6
–
–
58,569,391
58,569,391
Intangible assets
Loan to a subsidiary
Club memberships
5
7
80,187,757
69,699,801
111,000,000
122,200,000
727,394,629
739,772,255
626,549,318
661,382,445
9
3,007,419,684
2,200,195,098
3,007,419,684
2,200,195,098
–
310,875
–
–
Non-current assets
1,053,000
1,070,000
Financial assets at fair value
through profit or loss
Trade and other receivables
10
Cash and cash equivalents
11
Tax recoverable
Current assets
Total assets
42,961,084
67,634,691
Accumulated surpluses
Total capital and reserves
1,445,682,334
5,114,385,366
4,726,876,604
4,784,619,321
4,387,219,083
295,075,118
4,238,275,174
4,533,350,292
295,075,118
3,804,877,553
4,099,952,671
Liabilities
Deferred tax liabilities
Provision for restoration costs
13
14
17
Non-current liabilities
8,266,495
4,394,360
Trade payables
Other payables and accruals
Provision for donations
Current tax payable
Provision for contribution to
Consolidated Fund
16
17
18
4,158,070,003
295,075,118
4,118,503,565
4,413,578,683
–
3,725,836,638
295,075,118
3,700,504,242
3,995,579,360
–
234,839,181
247,128,280
234,839,181
247,128,280
245,283,451
254,025,785
237,016,956
249,631,425
42,018
42,018
42,018
42,018
201,174,927
233,259,034
48,367,345
46,678,333
115,289
–
–
–
2,177,775
2,503,145
Government grants received in advance 15
79,959,206
1,086,145,854
3,987,104,349
Deferred capital grants
64,504,465
250,000
1,718,963,685
4,386,990,737
Capital and reserves 12
250,000
1,336,609,969
Capital account
1,482
–
8
–
798
48,805,070
–
85,614,319
44,309,149
28,217
95,259,730
2,177,775
–
–
85,614,319
2,503,145
–
28,217
95,259,730
Current liabilities
335,751,623
372,898,148
134,023,682
142,008,298
Total capital and reserves and liabilities
5,114,385,366
4,726,876,604
4,784,619,321
4,387,219,083
Total liabilities
581,035,074
626,923,933
The accompanying notes form an integral part of these financial statements.
Tote Board
36
371,040,638
391,639,723
Statements of comprehensive income
For
the year ended 31 March 2014
Note
2014
Group
$
2013
$
Income from betting and gaming
activities
20(a)
959,761,628
983,571,795
Other operating income
20(b)
36,902,121
35,981,251
Total operating income
996,663,749
1,019,553,046
Operating expenditure
Staff costs
20(c)
(122,085,617)
(120,175,968)
Racing and related expenses
20(d)
(103,664,329)
(104,655,277)
Depreciation of property,
plant and equipment
4
(73,096,197)
(62,826,438)
General administrative expenses
20(e)
(62,241,298)
(72,941,231)
Office and property related expenses
(28,193,631)
(20,756,607)
Upkeep of property, plant and equipment
(21,091,476)
(20,908,135)
Information technology expenses
(10,738,707)
(9,947,792)
Amortisation of intangible assets
5
(1,827,994)
(2,374,132)
Agency fees
–
–
Total operating expenditure
(422,939,249)
(414,585,580)
Operating surplus 573,724,500
604,967,466
Non-operating income/
(expenditure)
Investment income
21
179,438,261
182,710,976
Casino entry levy
151,442,640
170,491,631
Allowance made for impairment
in value of club memberships
8
(17,000)
(47,000)
Impairment write-back in value
of reversionary trust funds
–
118,228
Amortisation of deferred capital grants 14
12,289,099
12,760,834
Gain on disposal of property,
plant and equipment
308,989
17,685
Property related expenses
(7,475)
(398,826)
Rental and other income 895,650
184,812
Insurance claim proceeds
2,081,847
1,036,477
Total non-operating surplus
346,432,011
366,874,817
Total surplus
920,156,511
971,842,283
Donations
(397,360,176)
(395,153,488)
Surplus before tax and contribution
to Consolidated Fund
522,796,335
576,688,795
Tax expense
22
(3,784,395)
(2,063,643)
Surplus before contribution to
Consolidated Fund
519,011,940
574,625,152
Contribution to Consolidated Fund
18
(85,614,319)
(95,259,730)
Surplus for the year, representing total
comprehensive income for the year 433,397,621
479,365,422
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37
2014
$
959,761,628
36,551,022
996,312,650
Board
2013
$
983,571,795
35,732,076
1,019,303,871
(111,197,239)
(103,664,329)
(105,482,373)
(104,655,277)
(73,096,197)
(61,941,158)
(28,193,631)
(21,091,476)
(12,282,792)
(1,827,994)
(27,870,211)
(441,165,027)
555,147,623
(62,826,438)
(72,604,545)
(20,756,607)
(20,908,135)
(11,492,811)
(2,374,132)
(28,916,777)
(430,017,095)
589,286,776
178,887,865
151,442,640
181,949,263
170,491,631
–
–
–
12,289,099
118,228
12,760,834
207,232
(7,475)
895,650
2,081,847
345,796,858
57,066
(398,826)
184,812
1,036,477
366,199,485
900,944,481
(397,330,839)
955,486,261
(395,134,906)
503,613,642
–
560,351,355
–
503,613,642
(85,614,319)
560,351,355
(95,259,730)
417,999,323
465,091,625
Statements of changes in capital and reserves
For
the year ended 31 March 2014
Capital
account
$
Group
Accumulated
surpluses
Total
$
$
At 1 April 2012
295,075,118
3,325,512,131
3,620,587,249
Total comprehensive income for the year
–
479,365,422
479,365,422
At 31 March 2013
295,075,118
3,804,877,553
4,099,952,671
–
433,397,621
433,397,621
At 31 March 2014
295,075,118
4,238,275,174
4,533,350,292
At 1 April 2012
295,075,118
3,235,412,617
3,530,487,735
–
465,091,625
465,091,625
At 31 March 2013
295,075,118
3,700,504,242
3,995,579,360
–
417,999,323
417,999,323
At 31 March 2014
295,075,118
4,118,503,565
4,413,578,683
Board
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38
Consolidated statement of cash flows
Year
ended 31 March 2014
Note
2014
2013
522,796,335
576,688,795
Allowance for impairment in value of club memberships
8
17,000
47,000
Amortisation of deferred capital grants
14
(12,289,099)
(12,760,834)
Depreciation of property, plant and equipment
4
73,096,197
62,826,438
Investment income
21
(179,438,261)
Write-off of property, plant and equipment
521,658
672,943
804,364,671
842,155,073
Trade receivables
21,964,803
Trade payables
4,495,921
Cash flows from operating activities
Surplus before tax and contribution to Consolidated Fund
Adjustments for:
Impairment write-back in value of reversionary trust funds
Amortisation of intangible assets
5
Donations
Gain on disposal of property, plant and equipment
Write-off of intangible assets
Changes in working capital:
Deposits, prepayments and other receivables
Other payable and accruals
Cash generated from operating activities
Donations paid
Contribution to Consolidated Fund paid
Income taxes refunded/(paid)
Staff loans (granted)/repaid
Net cash from operating activities
$
–
1,827,994
397,360,176
(308,989)
781,660
2,367,348
(26,218,509)
806,974,234
$
(118,228)
2,374,132
395,153,488
(182,710,976)
(17,685)
–
(784,293)
(6,886,842)
(2,160,591)
(4,714,022)
827,609,325
(397,388,393)
(348,007,494)
513,904
(3,534,756)
(95,259,730)
(17,100)
314,822,915
(68,310,792)
4,100
407,760,383
Cash flows from investing activities
(Acquisition of)/proceeds from financial assets at
fair value through profit or loss (net)
Acquisition of property, plant and equipment
(634,562,215)
54,680,139
(55,915,690)
(118,502,124)
Payment for intangible assets
(15,043,666)
(5,709,158)
Net cash used in investing activities
(697,176,631)
(61,888,537)
Net (decrease)/increase in cash and cash equivalents
(382,353,716)
345,871,846
Proceeds from disposal of property, plant and equipment
Interest received
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
11
1,210,494
7,134,446
1,718,963,685
1,336,609,969
360,313
7,282,293
1,373,091,839
1,718,963,685
During the year, the Group acquired property, plant and equipment with an aggregate cost of $51,670,778 (2013: $123,232,761) of
which $368,216 (2013: $5,519,676) relates to accruals and $906,548 (2013: $190,940) relates to provision for restoration costs.
Tote Board
39
These notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Members of the Board on 24 June 2014.
1
Domicile and activities
Singapore Totalisator Board (the “Board”) was established on 1 January 1988 in the Republic of Singapore under the Singapore
Totalisator Board Act (Chapter 305A, 1999 Revised Edition). The office of the Board is located at 210 Middle Road, #06-01,
Singapore 188994.
As a statutory board, the Board is subject to the directions of the Ministry of Finance (the “Ministry”) and is required to
implement policies and policy changes as determined by the Ministry. The principal activities of the Board are those relating
to operating totalisators, lotteries and other betting and gaming activities, conducting equine research and carrying on other
activities for the improvement of racing generally. These activities are carried out by the Singapore Totalisator Board’s two
agents, the Singapore Turf Club (proprietary club of the Board) and Singapore Pools (Private) Limited (subsidiary of the
Board).
The principal activities of the Board’s subsidiaries are set out in Note 6.
The financial statements of the Board encompass the financial statements of the Board, Singapore Turf Club and the agency
operations managed by Singapore Pools (Private) Limited.
The consolidated financial statements relate to the Board and its subsidiaries (together referred to as the Group).
2
Basis of preparation
2.1
Statement of compliance
The financial statements have been prepared in accordance with the provisions of the Singapore Totalisator Board Act
(Chapter 305A, 1999 Revised Edition) and the Statutory Board Financial Reporting Standards (SB-FRS). SB-FRS includes
Statutory Board Financial Reporting Standards, Interpretations of SB-FRS and SB-FRS Guidance Notes as promulgated by
the Accountant-General.
For the purpose of the audit of the Board’s compliance with the Act in connection with the receipts, expenditure, investment of
moneys and the acquisition and disposal of assets in accordance with Audit Guidance Statement (AGS) 9, the Singapore Turf
Club and the agency operations managed by Singapore Pools (Private) Limited are not within the reporting scope of AGS 9.
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40
2.2
Basis of measurement
The financial statements have been prepared on the historical cost basis except as otherwise described below.
2.3
Functional and presentation currency
These financial statements are presented in Singapore dollars, which is the Board’s functional currency.
2.4
Use of estimates and judgements
The preparation of the 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
Information about critical judgements in applying accounting policies that have the most significant effect on the amounts
2.5
Changes in accounting policies
in the period in which the estimates are revised and in any future periods affected.
recognised in the financial statements is included in Note 27.
With effect from 1 April 2013, the Group adopted the new or revised SB-FRS that is mandatory for application from that date.
The adoption of this new or revised SB-FRS does not have any significant impact on the financial statements.
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 SB-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 Group 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 Group’s assets and liabilities.
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41
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 Group entities, except as explained in note 2.5, which addresses changes in
accounting policies.
3.1
Basis of consolidation
Business combinations
For acquisitions on or after 1 April 2010
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which
control is transferred to the Group. Control is the power to govern the financial and operating policies of an entity so as to
obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are
currently exercisable.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts
are generally recognised in profit or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs
Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is
in connection with a business combination are expensed as incurred.
classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the
fair value of the contingent consideration are recognised in profit or loss.
For acquisitions prior to 1 April 2010
Business combinations are accounted for under the purchase method. The cost of an acquisition is measured at the fair value
of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly
attributable to the acquisition.
The excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities over the
cost of acquisition is credited to profit or loss in the period of the acquisition.
Subsidiaries
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date that control ceases. The accounting policies of
subsidiaries have been changed when necessary to align them with the policies adopted by the Group.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements.
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42
Accounting for subsidiaries
Investments in subsidiaries are stated in the Board’s statement of financial position at cost less accumulated impairment
3.2
Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange
losses.
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 Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial
assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date, which is the
date that the Group becomes a party to the contractual provisions of the instrument.
The Group 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 Group 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 Group 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 Group’s non-derivative financial assets comprise financial assets at fair value through profit or loss and loans and
receivables.
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43
Financial assets at fair value through profit or loss
A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such
upon initial recognition. Financial assets are designated at fair value through profit or loss if the Group manages such
investments and makes purchase and sale decisions based on their fair value in accordance with the Group’s documented
risk management or investment strategy. Attributable transaction costs are recognised in profit or loss as incurred. Financial
assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss.
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 comprise bank balances and bank deposits.
Non-derivative financial liabilities
All financial liabilities are recognised initially on the trade date, which is the date that the Group becomes a party to the
contractual provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Group 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.
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.
The Group’s non-derivative financial liabilities comprise trade and other payables.
3.4
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. The value
of leasehold land includes the leasehold land situated at Kranji which was ascribed the same value as that of the freehold land
situated at Bukit Timah given up in 1999 during a land exchange.
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44
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 Group 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
The gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net
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
(major components) of property, plant and equipment.
proceeds from disposal and the carrying amount of the item) is recognised in profit or loss.
if it is probable that the future economic benefits embodied within the component will flow to the Group, 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.
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, unless it is included in the carrying amount of another asset. Leased
assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group
will obtain ownership by the end of the lease term.
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 the asset is completed and ready for use.
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45
The estimated useful lives for the current and comparative years are as follows:
Leasehold land
Buildings
Computer and betting equipment
Audio visual, laboratory, cooling and
other equipment/systems
Other assets
20 to 99 years (over remaining lease term)
20 to 40 years
3 to 5 years
5 to 15 years
3 to 10 years
No depreciation is provided on capital work-in-progress.
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if
appropriate.
Fully depreciated assets are retained in the financial statements until they are no longer in use.
Other assets include furniture and fittings, mechanical and electrical installations, motor vehicles, livestock, tracks and
renovations.
Assets costing less than $1,000 per unit are charged to profit or loss in the year of purchase.
3.5
Intangible assets
Goodwill
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets and represents the excess of the fair
value of the consideration transferred over the net recognised amount (generally fair value) of the identifiable assets acquired
and liabilities assumed.
Goodwill is measured at cost less accumulated impairment losses.
Software development expenditure
Software development expenditure is initially capitalised at cost and subsequently carried at cost less accumulated amortisation
and accumulated impairment losses.
Subsequent expenditure
Subsequent expenditure on software development is capitalised only when it increases the future economic benefits embodied
in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred.
Amortisation
Amortisation of software development expenditure is calculated over the cost of the asset, less its residual value.
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful life of 5 to 8 years, from the date
that they are available for use.
Amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if
appropriate.
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46
3.6Impairment
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 a negative effect on the estimated
future cash flows of that asset that can be estimated reliably.
Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an
amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter
bankruptcy, adverse changes in the payment status of borrowers or issuers in the Group, economic conditions that correlate
with defaults or the disappearance of an active market for a security.
The Group considers evidence of impairment for loans and receivables at both a specific asset and collective level. All
individually significant loans and receivables are assessed for specific impairment. All individually significant 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 Group uses historical trends of the probability of default, the 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.
Non-financial assets
The carrying amounts of the Group’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 asset’s recoverable amount is estimated. For goodwill,
the recoverable amount is estimated each year at the same time. An impairment loss is recognised if the carrying amount of
an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount.
Tote Board
47
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 CGU. For
the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at
which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies
of the combination.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to
reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts
of the other assets in the CGU (group of CGUs) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior
periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. 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
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 employee 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
Group 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.
Employee leave entitlement
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated
liability for annual leave as a result of services rendered by employees up to the statement of financial position date.
Tote Board
48
3.8Provisions
A provision is recognised if, as a result of a past event, the Group 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.
Restoration costs
Where required by the lease agreements to restore the premises to its original condition, an estimate is made for the costs
of dismantling and removing an asset and restoring the site which is recognised at the commencement of the lease and
amortised over the period of the lease.
3.9Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and revenue can be
reliably measured.
Totalisator revenue
Revenue from the totalisator is recognised upon the completion of each race.
Games and lotteries
Collections from games and lotteries are recognised as revenue by draw and by match.
Gate admission fees
Revenue is recognised upon the usage of the admission tickets.
Racing management, betting and other revenue
Revenue is recognised on an accrual basis unless collectability is in doubt.
Dividend income
Dividend income is recognised when the right to receive payment is established.
Interest income
Interest income is recognised as it accrues in profit or loss, using the effective interest method.
Rental income
Rental income is recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives granted are
recognised as an integral part of the total rental income, over the term of the lease.
Casino entry levy
Casino entry levy is recognised when the right to receive payment is established.
Tote Board
49
3.10 Government grants
Government grants for the purchase of depreciable property, plant and equipment are taken direct to the deferred capital
grants account, and included in non-current liabilities in the statement of financial position.
The deferred capital grants are recognised in profit or loss as non-operating income over the periods necessary to match the
depreciation and gain or loss on disposal or write-off of property, plant and equipment purchased with the related grants.
3.11
Lease payments
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.
When an operating lease is terminated before the lease period expires, any payment made (or received) by the Group as
penalty is recognised as an expense (or income) when termination takes place.
3.12Donations
Donations are taken to profit or loss when there is an obligation to disburse.
3.13 Tax
The Singapore Totalisator Board is a tax-exempted institution under the provisions of the Income Tax Act (Chapter 134, 2004
Revised Edition). The subsidiaries of the Board are subject to local tax legislation.
Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the
extent that it relates to items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
•
•
•
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
temporary differences related to investments in subsidiaries to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that they will not reverse in the foreseeable future; and
taxable temporary differences arising on the initial recognition of goodwill. Tote Board
50
The measurement of deferred taxes reflects the tax consequences that would follow the manner in which the Group expects,
at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured
at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been
enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and
they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to
settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that
it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred
tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax
benefit will be realised.
In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions
and whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate
for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience.
This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New
information may become available that causes the Group to change its judgement regarding the adequacy of existing tax
liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.
3.14 Club memberships
Club memberships are stated at cost less accumulated impairment losses. Gain or loss on disposal of club membership
is determined as the difference between the net disposal proceeds and the carrying amount of the club membership and is
accounted for in profit or loss as they arise.
3.15 New accounting standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations have been issued but not yet effective, and have
not been applied in preparing these financial statements. None of these are expected to have a significant effect on the
financial statement of the Group.
Tote Board
51
4
Computer
Leasehold and betting
land
Buildings
equipment
Group
$
$
$
Cost
At 1 April 2012
123,545,396
497,041,794
109,281,235
Additions
1,173
1,424,801
6,399,794
Disposals
–
(766,264)
(10,044,658)
Reclassification to intangible assets (Note 5)
–
–
–
Reclassifications
–
13,131,969
4,393,294
At 31 March 2013
123,546,569
510,832,300
110,029,665
Additions
–
10,959
9,644,035
Disposals
–
(19,986)
(7,508,098)
Reclassifications
–
11,391,833
1,508,997
At 31 March 2014
123,546,569
522,215,106
113,674,599
Accumulated depreciation
At 1 April 2012
2,940,988
138,812,912
96,404,751
Depreciation charge for the year
1,506,193
15,322,299
8,629,273
Disposals
–
(302,575)
(10,026,056)
Reclassifications
–
10,253
(3,842)
At 31 March 2013
4,447,181
153,842,889
95,004,126
1,506,195
15,925,134
8,770,994
Disposals
–
(8,157)
(7,497,618)
Reclassifications
–
21,384
–
At 31 March 2014
5,953,376
169,781,250
96,277,502
Carrying amounts
At 1 April 2012
120,604,408
358,228,882
12,876,484
At 31 March 2013
119,099,388
356,989,411
15,025,539
At 31 March 2014
117,593,193
352,433,856
17,397,097
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52
Audio visual,
laboratory,
cooling and
other equipment/
systems
$
Other
assets
$
Capital
work-in-progress
$
Total
$
102,512,339
5,553,375
(2,074,306)
–
18,640,628
124,632,036
4,007,020
(1,377,637)
19,006,675
146,268,094
334,827,482
39,398,700
(45,995,809)
–
18,941,043
347,171,416 8,218,188
(16,576,480)
16,877,499
355,690,623
22,917,287
70,454,918
–
(3,998,831)
(55,106,934)
34,266,440
29,790,576
–
(48,785,004)
15,272,012
1,190,125,533
123,232,761
(58,881,037)
(3,998,831)
–
1,250,478,426
51,670,778
(25,482,201)
–
1,276,667,003
54,229,443
16,876,747
(1,983,436)
380,557
69,503,311
20,133,021
(1,283,463)
59,523
88,412,392
284,126,906
20,491,926
(45,553,399)
(386,968)
258,678,465
26,760,853
(15,269,800)
(80,907)
270,088,611
–
–
–
–
–
–
–
–
–
576,515,000
62,826,438
(57,865,466)
–
581,475,972
73,096,197
(24,059,038)
–
630,513,131
48,282,896
55,128,725
57,855,702
50,700,576
88,492,951
85,602,012
22,917,287
34,266,440
15,272,012
Tote Board
53
613,610,533
669,002,454
646,153,872
Computer
Leasehold and betting
land
Buildings
equipment
Board
$
$
$
Cost
At 1 April 2012
2,629,701
471,238,955
74,066,064
Additions
–
1,424,801
908,976
Disposals
–
(766,264)
(8,049,773)
Reclassifications
–
13,131,969
4,214,340
At 31 March 2013
2,629,701
485,029,461
71,139,607
Additions
–
10,959
742,271
Disposals
–
(19,986)
(4,335,682)
Reclassifications
–
11,391,833
1,407,265
At 31 March 2014
2,629,701
496,412,267
68,953,461
Accumulated depreciation At 1 April 2012
1,024,326
137,980,252
66,249,108
66,676
14,430,307
4,931,119
Disposals
–
(302,575)
(8,032,597)
Reclassifications
–
10,253
(3,842)
At 31 March 2013
1,091,002
152,118,237
63,143,788
66,676
15,033,142
4,685,356
Disposals
–
(8,157)
(4,335,682)
Reclassifications
–
21,384
–
At 31 March 2014
1,157,678
167,164,606
63,493,462
Carrying amounts
At 1 April 2012
1,605,375
333,258,703
7,816,956
At 31 March 2013
1,538,699
332,911,224
7,995,819
At 31 March 2014
1,472,023
329,247,661
5,459,999
Tote Board
54
Audio visual,
laboratory,
cooling and
other equipment/
systems
$
Other
assets
$
Capital
work-in-progress
$
Total
$
102,512,339
5,553,375
(2,074,306)
18,640,628
124,632,036
4,007,020
(1,377,637)
19,006,675
146,268,094
296,973,285
2,550,374
(28,205,448)
18,450,736
289,768,947
2,989,887
(13,024,954)
16,867,999
296,601,879
18,205,980
69,934,102
–
(54,437,673)
33,702,409
28,329,893
–
(48,673,772)
13,358,530
965,626,324
80,371,628
(39,095,791)
–
1,006,902,161
36,080,030
(18,758,259)
–
1,024,223,932
54,229,443
16,876,747
(1,983,436)
380,557
69,503,311
20,133,021
(1,283,463)
59,523
88,412,392
252,355,501
16,819,960
(28,104,242)
(386,968)
240,684,251
19,281,061
(12,617,740)
(80,907)
247,266,665
–
–
–
–
–
–
–
–
–
511,838,630
53,124,809
(38,422,850)
–
526,540,589
59,199,256
(18,245,042)
–
567,494,803
48,282,896
55,128,725
57,855,702
44,617,784
49,084,696
49,335,214
18,205,980
33,702,409
13,358,530
453,787,694
480,361,572
456,729,129
Tote Board
55
Depreciation expense of the Board charged to the statement of comprehensive income comprises the following:
Board
20142013
$$
Depreciation expense on the Board’s assets
59,199,256
53,124,809
73,096,197
62,826,438
Depreciation expense charged by an agent for depreciation on the agent’s assets*
13,896,941
9,701,629
*
Under the agency arrangement, depreciation expense on assets held by the agent is borne by the Board.
5
Intangible assets
2014
Group
$
2013
2014
$
$
Board
2013
$
22,618,366
12,130,410
798
1,482
80,187,757
69,699,801
798
1,482
32,271,523
22,563,534
3,420
3,420
–
3,998,831
–
–
(949,865)
–
Goodwill arising on consolidation
57,569,391
57,569,391
–
–
Cost
At 1 April
Additions during the year
Transfer from capital work-in-progress (Note 4)
15,043,666
Reversal#
(1,946,056)
At 31 March
44,419,268
Disposals/write-offs
Accumulated amortisation
5,709,158
–
–
–
–
–
32,271,523
3,420
3,420
–
–
At 1 April
20,141,113
17,766,981
1,938
1,254
Reversal# (1,491,976)
–
–
–
Disposals/write-offs
(168,205)
Amortisation charged during the year
At 31 March
3,319,970
#
684
2,374,132
684
684
21,800,902
20,141,113
2,622
1,938
4,796,553
1,482
2,166
Carrying amount
At 31 March
684
1,827,994
At 1 April 2,374,132
12,130,410
22,618,366
–
12,130,410
–
798
–
1,482
During the year, the Group entered into a settlement agreement related to a legal claim from Ledge Consulting. Accordingly,
the Group has reversed the asset costs and related accrual of $1,946,056 and the corresponding accumulated amortisation
charge of $1,491,976.
Tote Board
56
Amortisation expense of the Board charged to the statement of comprehensive income comprises the following:
Board
20142013
$$
Amortisation expense on the Board’s assets
Amortisation expense charged by an agent for amortisation on agent’s assets*
684
1,827,310
1,827,994
684
2,373,448
2,374,132
*
Under the agency arrangement, the amortisation of intangible assets held by the agent is borne by the Board.
Goodwill arising on consolidation
Goodwill arises from the excess of purchase consideration over the fair values of attributable net assets of Singapore Pools
(Private) Limited, a wholly-owned subsidiary which is considered as a separate cash-generating unit (CGU).
Impairment testing of goodwill
The recoverable amounts of the CGU are determined based on value-in-use calculations. The following describes the key
assumptions on which management has based its cash flow projection:
•
•
•
The pre-tax discount rate applied reflects specific risks relating to the relevant business activities.
The recoverable amount is determined to be in excess of the CGU’s operating assets carrying value as at 31 March 2014.
Management believes that any reasonable possible change in the above key assumptions is not likely to cause the recoverable
amount to be materially lower than its carrying amount.
No impairment loss has been recognised for the financial years ended 31 March 2014 and 2013.
Budgeted gross margins of 7% (2013: 10%).
Pre-tax discount rate of 10% (2013: 11%).
The cash flow projections are based on actual operating results and management’s 3-year financial projection of
the operations for the years 2015 to 2017. The financial projection is based on management’s past experience
and future expectations.
Tote Board
57
6
Investment in subsidiaries
Board
20142013
$$
Unquoted shares, at cost
58,569,391
58,569,391
Details of the subsidiaries are as follows:
Place of
Effective equity
Name of subsidiaries
Principal activities
incorporation and business
held by the Board
2014
2013
%
%
Singapore Pools To operate lotteries and
Singapore
100
100
(Private) Limited
sports betting as an agent
on behalf of the Board
Place of
Effective equity
Name of subsidiaries
Principal activities
incorporation and business
held by the Board
2014
2013
%
%
Held by Singapore Pools (Private) Limited Selegie Management
To provide services to manage Singapore
Pte Ltd
and operate the Livewire
operations at the Integrated
Resorts premises
100
100
KPMG LLP is the auditor of all subsidiaries.
7
The loan to a subsidiary is unsecured, bears interest at 2% per annum and is not expected to be repaid in the next 12 months.
Tote Board
58
8
Club memberships
2014
Group
$
Board
201320142013
$
$
$
Club memberships, at cost
1,990,000
1,990,000
840,000
840,000
- At 1 April (920,000)
(873,000)
(590,000)
(590,000)
- At 31 March (937,000)
(920,000)
(590,000)
(590,000)
Less: Allowance for impairment losses
- Impairment losses (17,000)
1,053,000
(47,000)
1,070,000
–
250,000
–
250,000
During the year, as a result of the decrease in the market value of the club memberships, impairment loss on club memberships
amounting to $17,000 (2013: $47,000) was recognised in non-operating expenditure in the statement of comprehensive
income.
9
Group and Board
20142013
$$
Unquoted unit trusts at fair value
3,007,419,684
2,200,195,098
The fair values of unquoted financial assets are based on bid prices provided by brokers or valuation provided by professional
fund managers. The unquoted unit trusts are in diversified portfolios of various asset classes managed by professional fund
managers recommended by the Board’s investment consultant or awarded by Accountant-General’s Department (AGD) under
the Demand Aggregation II Scheme.
Tote Board
59
10 Trade and other receivables
2014
Group
$
Board
201320142013
$
$
$
–
–
Trade receivables
3,929,603
25,894,406
Deposits
1,813,155
2,069,082
Interest receivable
2,649,075
3,007,631
2,640,363
2,989,141
Casino entry levy receivable
12,468,110
15,483,350
12,468,110
15,483,350
444,288
432,444
444,288
432,444
Amounts due from a subsidiary
Dividend receivable
Staff loans
Advances to retailers
Management fee rebate receivables
Other receivables
–
2,807
30,200
15,194,650
2,640,125
–
2,807
13,100
14,214,475
3,665,526
44,745,073
670,464
2,807
30,200
–
2,222,489
55,982,954
1,025,784
2,807
12,500
–
2,765,013
39,172,013
64,782,821
63,223,794
78,693,993
42,961,084
67,634,691
64,504,465
79,959,206
Prepayments 3,789,071
2,851,870
1,280,671
1,265,213
Trade and other receivables are principally denominated in Singapore dollar.
The amounts due from a subsidiary, Singapore Pools (Private) Limited, relate to transactions arising from the lottery and
betting business on behalf of the Board. The amounts are unsecured, interest-free and denominated in Singapore dollar.
There is no allowance for doubtful debt arising from these amounts and their carrying amounts approximate their fair values.
The Group and the Board’s exposure to credit risks and impairment loss related to trade and other receivables are disclosed
in Note 19.
Tote Board
60
11 Cash and cash equivalents
Short-term bank deposits
Cash with AGD
Cash at bank and in hand
$
Board
201320142013
$
$
$
183,583,260
193,634,500
–
–
1,033,090,148
1,395,451,553
119,936,561
2014
Group
1,336,609,969
129,877,632
1,718,963,685
53,055,706
1,033,090,148
1,086,145,854
50,230,781
1,395,451,553
1,445,682,334
Cash with the Accountant-General’s Department (AGD) refers to cash that are managed by AGD under Centralised Liquidity
Management as set out in the Accountant-General’s Circular No. 4/2009 Centralised Liquidity Management for Statutory
Boards and Ministries.
Cash and cash equivalents are principally denominated in Singapore dollar and the carrying amounts approximate their fair
values.
Short-term bank deposits at the statement of financial position date have an average maturity of 0.5 month (2013: 0.5 month)
from the end of the financial year with the following weighted average effective annual interest rates:
Group and Board
20142013
%%
Singapore dollar
The interest rate of cash with AGD, defined as the ratio of the interest earned to the average cash balance, ranged from 0.54%
The Group and the Board’s exposure to interest rate risk for financial assets and liabilities are disclosed in Note 19.
12
Capital account
The capital account consists of the value of net assets transferred from the former Singapore Turf Club on the establishment
of the Board on 1 January 1988 and a Government grant of $500,000.
0.33
0.23
to 0.70% (2013: 0.55% to 0.63%) per annum.
Tote Board
61
13
Movements in deferred tax assets and liabilities (prior to offsetting of balances) during the year are as follows:
Recognised
in profit
At
or loss
Group
Property, plant and
equipment
1/4/2012 (Note 22)
At
31/3/2013
Recognised
in profit
or loss
(Note 22)
At
31/3/2014
$$$$$
1,658,8292,735,5314,394,3603,872,1358,266,495
Deferred tax assets
Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax assets against
Provision for donation
(5,270)
5,270
–
–
–
current tax liabilities and when the deferred taxes relate to the same taxation authority. The following amounts, determined
after appropriate offsetting are as follows:
Group 20142013
$$
14
Deferred capital grants
8,266,495
4,394,360
Group and Board
20142013
$$
At 1 April 247,128,280
259,889,114
At 31 March
234,839,181
247,128,280
Amortisation for the year
(12,289,099)
(12,760,834)
15
Government grants received in advance
Government grants were received for the development of the Kranji race course and the amount as at 31 March 2014 and
2013 represent the unutilised portion of the grant.
Tote Board
62
16
2014
Group
$
Board
201320142013
$
$
$
Accrued operating expenses 159,392,136
194,916,416
22,365,253
19,150,446
Other payables
26,002,092
27,527,887
26,002,092
27,527,887
Advance sales
15,780,699
17
201,174,927
10,814,731
233,259,034
–
48,367,345
–
46,678,333
Advance sales relate to collections for draws and matches that are held subsequent to the year end.
Other payables and accruals are primary denominated in Singapore dollar and their carrying amounts approximate their fair
values.
Provisions
Restoration costs
2014
$
Group and Board
Donations
201320142013
$
$
$
At 1 April 2,503,145
2,845,871
28,217
2,500,000
Write-back during the year
(47,375)
(468,057)
–
–
At 31 March
2,177,775
2,503,145
Provision made
Provision utilised
906,548
(1,184,543)
190,940
(65,609)
–
(28,217)
–
28,217
(2,500,000)
28,217
18
Provision for contribution to Consolidated Fund
The Board contributes to the Consolidated Fund in accordance with Section 3(a) of the Statutory Corporations (Contributions
to Consolidated Fund) Act (Chapter 319A, 2004 Revised Edition). The contribution for 2014 is to be based on the Board’s net
surplus for 2014 at the applicable corporation tax rate of 17% (2013: 17%).
Under Section 13 (1) (e) and the First Schedule of the Singapore Income Tax Act (Chapter 134, 2008 Revised Edition), the
income of the Board is exempt from income tax.
Tote Board
63
19
Financial risk management
Overview
The Group has exposure to the following risks from its use of financial instruments:
•
•
•
•
•
•
This note presents information about the Group’s exposure to each of the above risks and the Group’s objectives, policies
and processes for measuring and managing risks. Further quantitative disclosures are included throughout these financial
statements.
Credit risk
Credit risk is defined as the potential loss arising from failure by counterparties to fulfil their obligations as and when they
fall due. The Group has policies in place to only deal with counterparties who meet certain credit requirements, and where
considered necessary, requires collateral to reduce its risk.
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. The major classes of financial assets of the Group are unit trusts managed by professional fund managers, bank deposits and
trade receivables. The Group limits its credit risk exposure in respect of investments by placing its funds only with professional
fund managers recommended by an investment consultant or awarded by Accountant-General’s Department (AGD) under
the Demand Aggregation II Scheme. For trade receivables, the Group adopts the policy of dealing only with customers of
appropriate credit history, and obtaining sufficient collateral, where appropriate, to mitigate credit risk. For other financial
assets, the Group adopts the policy of dealing only with high credit quality counterparties.
Credit exposure to an individual counterparty is restricted by credit limits that are approved by the management based on
ongoing credit evaluation. The counterparty’s payment profile and credit exposure are continuously monitored at the entity
level by the respective management.
The carrying amount of financial assets as at the reporting date is:
credit risk
liquidity risk
interest rate risk
price risk
foreign currency risk
capital risk
Note
2014
Recognised financial assets
7
10
Group $
–
39,172,013
39,172,013
Tote Board
Board
2013
2014
–
111,000,000
122,200,000
64,782,821
174,223,794
200,893,993
$
64,782,821
64
$
63,223,794
2013
$
78,693,993
In order to manage the Group’s credit risk for trade receivables and advances to retailers, the Group obtains bankers’
guarantees issued by their customers’ banks for most of the customers. These bankers’ guarantees are used as a form of
security against the outstanding trade receivables. As at the statement of financial position date, the bankers’ guarantees
amounted to $24,677,000 (2013: $25,545,000).
Except for trade receivables, the maximum exposure to credit risk for each class of financial assets is the carrying amount of
that class of financial assets presented in the statement of financial position.
As at the end of the financial year, there is no significant concentration of credit risk on the trade receivables and advances to
retailers of the Group.
The maximum exposure to credit risk for trade receivables and advances to retailers at the reporting date by type of counterparty
was:
Group
20142013
$$
By types of customers
Distributors
Others
2,631,424
2,499,760
Retailers
15,237,033
25,869,840
19,124,253
40,108,881
1,255,796
11,739,281
The ageing of financial assets that were not impaired at the reporting date was:
2014
Group $
2013
2014
$
$
Board
2013
$
Not past due
38,726,302
63,062,732
173,919,689
200,200,687
Past due over 3 months
61,061
1,045,922
30,723
205,260
Past due less than 3 months
384,650
39,172,013
674,167
64,782,821
273,382
174,223,794
488,046
200,893,993
Based on historical default rates, the Group believes that no impairment allowance is necessary in respect of loans and
receivables. These receivables are mainly due from customers that have a good payment record with the Group.
Cash and fixed deposits are placed in banks and financial institutions which are regulated. The cash with AGD under
Centralised Liquidity Management are placed with regulated financial institutions. The Group limits its credit risk exposure in respect of investments by only investing in liquid funds that are regulated by the
respective regulators of the jurisdictions in which the funds are domiciled.
The Group does not hold any collateral in respect of its financial assets.
Tote Board
65
Liquidity risk
The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to
finance the Group’s operations and to mitigate the effects of fluctuations in cash flows. All trade, other payables and accruals of the Group in 2014 and 2013 are payable within one year.
Interest rate risk
The Group’s exposure to market risk for changes in interest rates relates primarily to the interest bearing debt securities, fixed
deposits and cash with AGD. The interest rates for cash with AGD 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.
The Group does not have any borrowings as at the end of the financial year.
At the reporting date, the interest rate profile of the interest-bearing financial instruments was:
Group Board
Carrying amount 2014
Carrying amount
201320142013
$
$
$
$
–
111,000,000
122,200,000
193,634,500
–
–
Fixed rate instrument
–
Variable rate instrument
Cash with AGD
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss as the interest
rates of its interest bearing financial instruments are fixed over the contractual period. Therefore, a change in interest rates at
the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) surplus before tax by
the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
The analysis is performed on the same basis for 2013.
Fixed deposits
183,583,260
1,033,090,148
1,216,673,408
1,395,451,553
1,589,086,053
Tote Board
66
1,033,090,148
1,033,090,148
1,395,451,553
1,395,451,553
Surplus before tax
100 bp
increase
100 bp
decrease
$$
Group 2014
Variable rate instruments 2013
Variable rate instruments
12,166,734
(12,166,734)
15,890,861
(15,890,861)
Surplus before tax
100 bp
increase
100 bp
decrease
$$
Board 2014
Variable rate instruments 2013
Price risk
Surplus funds from the Group’s operations are mainly invested in unit trusts managed by professional fund managers. To
manage its price risk arising from investments, the Group diversifies its portfolio. The fair value of amount invested as at 31
March 2014 was $3,007,419,684 (2013: $2,200,195,098).
The unit trusts are unquoted. The market risk associated with these investments is the potential loss in fair value resulting from
the decrease in the net asset value of unit trusts.
The Group’s investment strategies and policies are determined by Singapore Totalisator Board’s Investment Committee and
approved by the Board.
A 5% increase/(decrease) in the underlying prices at the reporting date would increase/(decrease) surplus before tax by the
Variable rate instruments
10,330,901
(10,330,901)
13,954,516
(13,954,516)
following amount:
2014
2013
150,370,984
110,009,755
$$
Group and Board
Surplus before tax This analysis assumes that all other variables remain constant.
Tote Board
67
Foreign currency risk
The Group operates solely in Singapore. The Group’s business operations are not exposed to significant foreign currency
risks as it has no significant transactions denominated in foreign currencies. The Group does not engage in speculative foreign exchange transactions.
Capital management
The capital structure of the Group comprises capital and accumulated surplus. The Group has a strong capital base and does
not need to borrow.
There were no changes in the Group’s capital management approach during the year. The Group is not subject to externally
imposed capital requirement.
The Board proactively manages its capital structure to achieve efficiency in its cost of capital. The quantum of minimum and
maximum cash reserve, taking into account working capital needs and long-term commitments, is reviewed and approved
annually by the Board Members.
Tote Board
68
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:
Designated at Group
$
Note
fair value
Loans and
Other financial
$
$
receivables
liabilities Total carrying
amount
$
Fair value
$
2014
9
3,007,419,684
11
–
1,336,609,969
–
–
10
–
Trade payables
–
3,007,419,684
16
–
39,172,013
–
1,375,781,982
–
3,007,419,684 3,007,419,684
–
1,336,609,969 1,336,609,969
–
(48,805,070)
(201,174,927)
39,172,013
(48,805,070)
(201,174,927)
39,172,013
(48,805,070)
(201,174,927)
(249,979,997)
4,133,221,669 4,133,221,669
–
2,200,195,098 2,200,195,098
–
1,718,963,685 1,718,963,685
2013
9
10
11
2,200,195,098
–
–
–
64,782,821
1,718,963,685
Trade payables
–
2,200,195,098
1,783,746,506
–
(233,259,034)
Designated at Loans and
Other financial
Board
$
$
$
16
Note
–
fair value
–
–
receivables
(44,309,149)
(277,568,183)
liabilities 64,782,821
64,782,821
(44,309,149)
(44,309,149)
(233,259,034)
(233,259,034)
3,706,373,421 3,706,373,421
Total carrying
amount
$
Fair value
$
2014
9
3,007,419,684
11
–
1,086,145,854
3,007,419,684
1,149,369,648
–
(48,367,345)
9
2,200,195,098
–
11
–
1,445,682,334
2,200,195,098
1,524,376,327
10
16
–
–
–
–
3,007,419,684 3,007,419,684
–
1,086,145,854 1,086,145,854
(48,367,345)
4,108,421,987 4,108,421,987
–
2,200,195,098 2,200,195,098
–
1,445,682,334 1,445,682,334
(46,678,333)
3,677,893,092 3,677,893,092
63,223,794
–
63,223,794
63,223,794
(48,367,345)
(48,367,345)
2013
10
16
–
–
78,693,993
–
Tote Board
–
(46,678,333)
69
78,693,993
78,693,993
(46,678,333)
(46,678,333)
Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been
defined as follows:
•
Level 1: •
Level 2: •
Level 3:
quoted prices (unadjusted) in active markets for identical assets or liabilities.
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).
inputs for the asset or liability that are not based on observable market data (unobservable inputs).
31 March 2014
Level 2
$
3,007,419,684
2,200,195,098
31 March 2013
The valuation technique and the inputs used in the fair value measurement of the financial assets for remeasurement and
disclosure purpose are as set out in Note 9.
There has been no transfer of the Group’s financial assets at fair value through profit or loss to/from other levels during the
year.
20
Operating surplus
(a)
Income from betting and gaming activities
Lotteries and
Sports betting
Total
$$$
Totalisator
Group and Board
2014
Turnover*
1,544,825,970
6,343,235,365
7,888,061,335
Dividends/prizes paid
(1,220,428,633)
(4,240,680,531)
(5,461,109,164)
Betting tax
Commission
(82,299,555)
–
(1,340,512,914)
(44,378,074)
Dividends, prizes and other expenses
(1,302,728,188)
(5,625,571,519)
242,097,782
717,663,846
Tote Board
70
(1,422,812,469)
(44,378,074)
(6,928,299,707)
959,761,628
Lotteries and
Sports betting
Total
$$$
Totalisator
Group and Board
2013
Turnover*
1,568,458,796
6,247,572,278
7,816,031,074
Dividends/prizes paid
(1,246,051,012)
(4,136,381,946)
(5,382,432,958)
Commission
–
(41,843,194)
(41,843,194)
Betting tax
(82,617,060)
(1,325,566,067)
(1,408,183,127)
Dividends, prizes and other expenses
(1,328,668,072)
(5,503,791,207)
239,790,724
743,781,071
*
Turnover represents wagered amounts received in respect of bets placed by customers during the financial year.
(b)
Other operating income
Gate admission fees $
$
9,433,413
other revenue
17,174,588
16,651,078
17,169,588
16,646,078
–
578,901
–
578,901
Government grant – Special
Maternity and childcare leave
Golf course revenue
2,746,357
4,507,984
2,746,357
4,507,984
entrance fees
1,292,005
1,261,211
1,292,005
1,261,211
Employment/Wage Credit
2,513,072
1,269,288
2,513,072
1,269,288
Sundry income
$
10,232,774
Members’ subscription and
$
Board
201320142013
9,433,413
Group
10,232,774
Rental income
2014
983,571,795
Racing management, betting and
(6,832,459,279)
246,041
2,697,284
36,902,121
149,704
2,129,672
35,981,251
246,041
2,351,185
36,551,022
149,704
1,885,497
35,732,076
Racing management, betting and other revenue includes royalty fees collected for the sale of broadcasting rights of Singapore
races, equine hospital charges and miscellaneous revenue.
Tote Board
71
(c)
Staff costs
2014
Group
$
Board
201320142013
$
$
$
Wages and salaries
104,298,453
103,397,871
94,911,920
90,730,979
contribution scheme
12,080,742
11,510,592
10,578,897
9,483,889
122,085,617
120,175,968
111,197,239
105,482,373
Contributions to defined
Others
Under the agency arrangement, all the staff costs of Singapore Pools (Private) Limited (except variable bonuses) are borne
by the Board.
(d)
Of the $103.7 million (2013: $104.7 million), $68.3 million (2013: $69.9 million) or 65.9% (2013: 66.8%) pertained to prize
money paid to horse owners, trainers and jockeys of the winning horses.
(e)
General administrative expenses include the following expense:
5,706,422
5,267,505
General administrative expenses
Operating lease expenses 21
Investment income
Changes in carrying values
Gain on disposal of investments
5,267,505
Racing and related expenses
5,706,422
2014
Group
$
27,174,661
2014
201320142013
$
$
$
33,347,730
27,174,661
33,347,730
Group
$
Board
Board
201320142013
$
$
$
of investments
156,299,490
160,889,901
156,299,490
160,889,901
Management fee rebate
2,536,321
1,950,941
2,536,321
1,950,941
Dividend income
8,982,205
2,839,230
8,982,205
2,839,230
(25,277)
(49,338)
33,767
179,438,261
182,710,976
178,887,865
Interest income
Investment expenses
Exchange (loss)/gain
Miscellaneous income
4,869,384
9,824,520
6,775,890
7,595,611
–
248
(433,852)
Tote Board
93,963
72
4,869,384
6,166,448
–
250
9,824,520
6,878,513
(433,852)
(21,760)
21,770
181,949,263
22
Tax expense
The Board is a tax exempt institution under the provision of the Income Tax Act (Chapter 134, 2004 Revised Edition). The
subsidiaries of the Board are subject to tax under Singapore income tax legislation.
Group
20142013
$$
Current tax expense
Current year
Adjustment for prior years
Deferred tax expense
Adjustment for prior years 112,260
200,000
(200,000)
(877,158)
(87,740)
(677,158)
Origination and reversal of temporary differences
3,719,188
2,689,884
3,872,135
2,740,801
522,796,335
576,688,795
Reconciliation of effective tax rate
Surplus before tax
Tax using Singapore tax rate of 17% (2013: 17%)
Surplus of the Board exempted from tax
Tax exempt income
Non-deductible expenses
88,875,377
2,063,643
98,037,095
(85,614,319)
(95,259,730)
(66,092)
(25,925)
Overprovision in prior years
636,482
(47,053)
3,784,395
138,444
(826,241)
2,063,643
Commitments
(a)
Future capital commitments
As at 31 March, the capital expenditures approved and contracted but not provided for in the financial statements are as
follows:
3,784,395
50,917
23
152,947
2014
Group
$
30,156,513
Tote Board
Board
201320142013
$
$
$
54,407,668
11,053,624
16,736,531
73
(b)
Operating lease commitments – where the Group is a lessee
As at 31 March, the commitments for future minimum lease payments in respect of non-cancellable operating leases are as
follows:
Within 1 year
After 5 years
2014
Group
$
23,286,310
After 1 year but within 5 years
36,776,697
$
$
$
23,506,198
13,438,398
14,708,255
43,749,600
637,962
Board
201320142013
5,800,697
60,700,969
73,056,495
26,752,058
637,962
40,828,418
29,337,055
5,800,697
49,846,007
The group has various leases for betting outlets and off-course betting centres. These leases typically run for a period of 1 to
10 years with an option to renew the lease after that date. The leases do not include any contingent rentals.
(c)
As at 31 March, the commitments for future minimum lease receivables in respect of non-cancellable operating leases are as
follows:
Operating lease commitments – where the Group is a lessor
Group and Board
20142013
$$
Within 1 year
129,012
822,047
129,012
1,111,064
After 1 year but within 5 years
(d)
The following donations have not been provided for in the financial statements:
289,017
Donations approved and committed but not disbursed
–
Approved, but not recognised in the
financial statements
2014
Group
$
2,287,925,107
Board
201320142013
$
$
$
2,248,491,891
2,287,601,431
2,248,206,746
Tote Board
74
24
Contingent liabilities (unsecured)
There is an unsecured contingent liability in respect of amounts to be paid to certain categories of employees or their
dependents in the event of the employee’s death or permanent disability. The maximum amount to be paid is approximately
$1,005,138 (2013: $585,628).
25
Related parties
The Board is a statutory board established under the Singapore Totalisator Board Act (Chapter 305A, 1999 Revised Edition).
As a statutory board, all government ministries, other statutory boards including their companies are deemed related parties
to the Group.
During the financial year, the Board engaged in various transactions including donations in the ordinary course of its operations
with entities related to the Board at prevailing prices or on customary terms and conditions. These transactions could have
been replaced with other parties on similar terms and conditions except for the following:
20142013
$$
Government-linked companies
26
Key management personnel compensation
Police and security services
1,975,532
2,034,513
Group
20142013
$$
7,410,114
6,966,560
7,569,964
7,121,803
98,992
166,759
Salaries and other short-term employee benefits
Post-employment benefits – contribution to CPF
Included in key management personnel compensation are compensation for:
- directors of a subsidiary
- members of the Board
Tote Board
75
159,850
1,645,855
1,744,847
155,243
1,655,050
1,821,809
27
Significant accounting estimates and judgements
Estimates, assumptions concerning the future and judgements are made in the preparation of the financial statements. They
affect the application of the Group’s accounting policies, reported amounts of assets, liabilities, income and expenses, and
disclosures made. They are assessed in the on-going basis and are based on experience and relevant factors, including
expectations of future events that are believed to be reasonable under the circumstances.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that
have a significant risk of causing a material adjustments to the carrying amount of assets and liabilities within the next financial
year are discussed below.
Estimated impairment of non-financial assets
Goodwill is tested for impairment annually and whenever there is indication that the goodwill may be impaired. Intangible
assets, property, plant and equipment and investments in subsidiaries are tested for impairment whenever there is any
objective evidence or indication that these assets may be impaired.
Taxes
Significant judgement is required in determining the capital allowances and deductibility of certain expenses during the
estimation of the provision of taxes. There are many transactions and calculations for which the ultimate tax determination is
uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on
estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts
that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such
determination is made.
Tote Board
76
Image Credits
Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 & 22 Page 23 Page 24 Page 25 Page 26 Down Syndrome Association (top image)
Handicaps Welfare Association (bottom image)
SG Enable (top image)
Ministry of Social and Family Development (bottom image)
National Council of Social Service (top image)
National Crime Prevention Council (bottom image)
Singapore National Paralympic Council
Football Association of Singapore (left image, top right image)
Esplanade – Theatres on the Bay; Mori Hidetaka (top image)
Esplanade – Theatres on the Bay; Tim Griffith (middle right image)
Esplanade – Theatres on the Bay (middle and bottom left images)
Singapore Chinese Orchestra (top left image)
Arts House Ltd (top right image)
Arts House Ltd; Jeannie Ho (bottom right image)
Care for the Elderly Foundation (top image)
AWWA Centre for Caregivers (bottom image)
Health Promotion Board (all images)
Bright Vision Hospital (left image)
Assisi Hospice (top and bottom right images)
Handicaps Welfare Association (middle right image)
Caring Fleet Services Ltd
T.Ware Pte Ltd (middle and bottom right images)
Temasek Polytechnic (top left image)
Republic Polytechnic (middle left image)
Institute of Technical Education (bottom right images)
© 2014 Tote Board
No part of this publication may be reproduced or transmitted in any form or by any means without
prior written permission. Enquiries should be made to Tote Board. Information in this report is
accurate as at 25 August 2014.
210 Middle Road #06-01
Singapore 188994
Tel: (65) 6216 8900 Fax: (65) 6216 8992
www.toteboard.gov.sg

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