ang mo kio town council - Parliament Of Singapore

Transcription

ANG MO KIO TOWN COUNCIL
ANNUAL REPORT
AND
FINANCIAL STATEMENTS
FOR
FINANCIAL YEAR 2012/2013
ND 311/34-10/2012
S. 94 of 2013
Ordered by Parliament to lie upon the Table
27 September 2013
Ang Mo Kio
Town Council
Annual Report
Year 2012-13
Ang Mo Kb o Town Council
Chairman's Message
Dear Residents,
Another year has passed and as we reflect on the efforts done on the ground by
members of the Town Council, management staff and our residents, I am heartened to
acknowledge the joint efforts of everyone in contributing to make our estate a better
place to live in.
During the last 2 assessment terms for the Town Council Management Report (TCMR),
Ang Mo Kio Town Council has performed consistently through the years by scoring well
and attaining the green band in all areas. With financial prudence always in mind, we
were able to maintain at reasonable financial health.
As Ang Mo Kio matures, the facilities will require more upgrading. In response to the
challenge, we had successfully completed 1 Neighborhood Renewal Program (NRP),
commenced another 3 NRPs and completed 68 improvement projects so as to enhance our residents' lifestyles in the
financial year. Residents also actively played a part in deciding which projects would prove beneficial to them and we were
able to implement resident's suggestions for such facilities and making them a reality.
Continually seeking to improve communication and interaction between the town council and our residents, dialogue
sessions and community involvement were some platforms to hear the voices from residents as well as to gather feedback
on how we can serve our residents better. We have heard from you through our Town Hall Meetings, emails, smart phone
applications (iConnect) and website, many avenues to reach our town council staff more efficiently. In the year, we also
took the opportunity to upgrade Our Home publication (Town Council newsletters) to take on a more personal perspective
from residents and update everyone on the latest community activities.
To reach out to needy residents, we started an initiative called PROGRESS (PROGramme for Resident Estate Service &
Support). The program encourages residents to be self-reliant while receiving assistance to settle their S & CC arrears. The 4
month pilot program has benefitted 56 needy families. With the successful PROGRESS trial, Central Singapore CDC who cofunds the program will continue to collaborate with us to help needy residents. In addition, we have also involved 7 schools
in projects to instill good behavioral habits in students through activities such as Litter Free Ambassadors, Fire Safety talks
and awareness on issues related to high rise littering, corridor clutter and recycling efforts.
As cleanliness remains a key focus for our town council, we have launched "Our Clean and Green Home" campaign on 11
Nov 2012 to drive the 5 thrusts (FOCUS, I BIN IT, RESIDENTS CLEAN IT, SHARE, THANKS) aimed at promoting good practices
among residents and to encourage pro-activeness in keeping our estate clean.
All the milestones achieved would not have been possible without the hard work from everyone involved, and also the
positive attitude of residents in taking personal ownership of their living environment. My sincere gratitude to everyone
and I look forward to build a better home together for everyone in the coming year!
Dr Lam Pin Min
Chairman, AMK Town Council
1
4th TCMR: Apr 2012— Sep 2012
Town Council
CleanlinessMaintenanceLift Performance S&CC Arrears
Corporate
Governance
Aljunied-Hougang
Pending
Ang Mo Kbo
Bishan-Toa Payoh
Chua Chu Kang
East Coast
_
Holland-Bukit Panjang
Jurong
Marine Parade
Moulmein-Kallang
Pasir Ris-Punggol
_
Potong Pasir
Sembawang-Nee Soon
Tampines
Tanjong Pagar
West Coast
Cleanliness
Maintenance
Lift Performance
S&CC Arrears
Corporate
Governance
Ang Mo Kio Town Council has achieved Green for all 5 indicators under the TCMR. The top 5 observations for cleanliness and
maintenance for the estate were:
Type of Cleanliness Observations
Stain and litter
39%
Dumped bulky refuse
31%
Moss/cobwebs
18%
Graffiti
10%
Human/animal faeces
1%
Type of Maintenance Observations
Obstruction of common areas
_
% of Total Observations
% of Total Observations
43%
Unauthorised fixtures, e.g. erection of clothes drying racks along corridor
9%
Damaged building fixtures
5%
Exposed wiring/trunking, unlocked socket outlets
4%
Damaged plaster/large cracks/spalling concrete
3%
Year 2012/13
Publicity & Communications
Our Clean & Green Home
"Our Clean & Green Home, is a 2 year campaign aimed
on promoting good green practices with the objective of
building a sense of ownership among residents and
encourage pro-activeness. The campaign was held on
11
th Nov 2012 at Ang Mo Kio-Hougang di vision, with
Guest of Honor, PM Lee, launching the event for Ang Mo
Kb o GRC and Sengkang West SMC.
"Our Home" newsletter
Below are the 5 thrusts that drive the campaign:
Ang Mo Kio Town Council's bi - monthly "Our Home"
FOCUS: Before and After photos of common areas taken
newsletter made a few changes to the 2013 editions.
at the start and end of each week will be displayed on
posters to raise awareness of the block's cleanliness.
Size does matter in this case, with the previously B5-
I BIN IT: Painted bins, a branding reminder of our
editorial contents and pictorials. Continuing to bring the
campaign, will be placed at areas of focus to promote
latest estate news to our residents, the editorial style
good binning habits.
sized newsletter growing to A4, allowing more space for
has been focused on making news more personal and
from our residents' perspective to the readers.
RESIDENTS CLEAN IT: Volunteers and residents come
together for a "Clean IT" day to keep the estate clean
One of the new features for Our Home newsletter
promote shared responsibilities.
includes the "Share It" series which showcases updates
on activities and initiatives from "Our Clean & Green
SHARE: Good practices are shared to spread the
Home" campaign. Working closely with the Town
message of promoting good green practices.
Council's Business Liaison Committee and various
THANKS: Posters and lift stickers are put up to
appreciate and encourage the continuous efforts of
resident who keep their estate clean.
"Our Clean & Green Home" campaign's activities will be
updated on the Town Council's Facebook page
(www.facebook.com/amktc) and "Our Home"
newsletter ("Share It" section)
sponsors, cut-out coupons featured on the front cover
of each issue allows readers to enjoy discounts at some
of the popular FnB outlets within AMK GRC and SKW
SMC.
Garnering response in each issue, the Food Review and
Quiz, remains one of our readers' favorite section which
provides interesting places to dine and attractive prizes
to be won.
3
International Cleaner's Day
Revamp of AMKTC Website
April 2013 saw the completion of the AMKTC website
(www.amktc.org.sg) with new features including event
calendar, adjustable fonts, location of TC offices and a
shortcut for Resident Services.
To appeal to users, the website was given a more
vibrant look with visible icons and shortcuts that allow
faster and easier access for residents in finding the
information they need. Contents were designed to make
user navigation easier, with adjustable fonts, allowing
elderly residents to view the website with clarity.
Links and contact details of relevant government
agencies and external contractors are also provided in
the website.
website!
15th June marks the International Cleaners Day,
dedicated to cleaners worldwide. This is an important
day to the cleaners because it highlights the fact that
the work they do is critical in keeping our estate clean.
In our HDB estates, we depend heavily on our cleaners
in keeping our estate clean. Without the cleaners, and
their daily routine in cleaning the estates, our HDB
blocks will not be as clean as what we see today. Their
efforts contributed to a clean and more beautiful living
environment for all Singaporeans.
In conjunction with International Cleaners Day, labour
movement's "I Care For My Cleaners" campaign was
launched at NTUC Foodfare foodcourt in AMK Hub. This
initiative will extend beyond cleaners as it encourages
employers to also give recognition to other low-wage
worker groups.
We have received many compliment letters from
residents who have expressed their heartfelt gratitude
to the cleaners, as during the festive seasons, the
cleaners will be working till wee hours to ensure that
the estates are clean so that they can celebrate the
festive period happily.
Residents also complimented on the provision of bulky
removal service offered by the town council as this
assisted them in discarding old and unwanted bulky
items during house renovation and spring cleaning.
4
Outreach Activities
Awareness on High Rise Littering
•—
Supported by our Community Liaison Team (CLT), the
Strategic Planning & Outreach Committee (SPOC) is
responsible for all outreach activities and ensures these
activities complement outreach done by grassroots
organizations. Several outreach programs and initiatives
have been rolled out to reach residents and youths.
In addition, we have also involved 7 schools in projects
to instill good behavioral habits to students.
Litter Free Ambassadors
Awareness on Recycling
Launch of PROGRESS (April 2013)
Fire Safety Talk
PROGRESS (PROGramme for Resident Estate
Service & Support) was developed by Ang Mo Kio
Town Council with co-funding from Central Singapore
Community Development Council.
A pilot that started in December 2012 and ended in
March 2013 where beneficiaries may be placed under
PROGRESS for up to six months, with an ex gratia
payment of $5.00 per report per block up to a maximum
of $300.00 per month.
The PROGRESS scheme was launched by Ms Grace Foo,
Minister, Prime Minister's Office, Second Minister for
the Environment and Water Resources and Second
Minister for Foreign Affairs, on 14 April 2013 during the
Ministerial Community Visit to Jalan Kayu division.
5
Town Hall Meetings
Kebun Baru (2 June 2012)
Cheng San Town Hall (24 th Mar 2013)
Overview: Topics and issues on upgrading programs,
Overview: From issues brought up by residents
regarding neighbor disputes, upgrading works and
housing, our MPs answered and addressed these issues
estate cleanliness and maintenance were brought up.
Horticulture
with officers from the Town Council and HDB standing
by. Host Adviser, Mr Ang Hin Kee, concluded the
meeting with good news on noise barriers being
installed beside MRT tracks along Ang Mo Kb.
Jalan Kayu
Town Hall (18 Nov
i
Tree Uprooting Program at Open Car Parks
Due to the increase of up-rooted and fallen tree
Overview: A myriad of issues including noise pollution,
public nuisance, estate cleanliness etc. were raised. The
meeting was concluded with an announcement to
encourage all residents to send feedback via the AMK-
branches cases in recent years, our residents &
grassroots in our estate have actively & constantly
request to remove the existing old matured Rain trees in
the open car parks.
iConnect application which is available for both Android
- Therefore the Town council embarked on this Tree
and iPhone users.
Replacement Program. Stretch over 5 years, this
Ang Mo Kio — Hougang (9 Sep 2012)
saplings & removal of old & ill-health Rain trees.
program consists of 2 parts; inter-planting of young tree
- The first step is to inter-plant new young trees (Hopean
odorata) between the old Rain trees in our open
carparks. Once the young trees have established
themselves & grown to a suitable height, we can then
remove the old Rain trees. This method will not "degreen" the estate & yet can reduce the cases of fallen
branches onto cars.
- First part of the program has successfully completed in
early 2013 with over 400 numbers of young tree
Overview: Predominant issues brought up by residents
included integration of new immigrants, inconsiderate
cyclists and overall estate cleanliness. Residents were
glad that they had attended the meeting to voice out
their viewpoints.
saplings being inter-planted in the open carparks all over
AMK estate.
6
EMC (Estate Maintenance Committee)
Date: 28th Sep 2012
Division: Kebun Baru
Focus: Rat Burrows
Date: 28 Nov 2012
Division: Ang Mo Kio — Hougang
Focus: Horticultural Landscape
Date: 28th Jan 2013
Division: Cheng San — Seletar
Focus: Joint inspection with SCDF on Corridor Obstruction
Focused on reviewing and making recommendations to
maintain estate efficiency, site visits by EMC members
together with Chairman, Mr Ang Hin Kee, were made to
the divisions to gather more insights on the ground and
monitor consistency in service standards and estate
management.
Below is a summary on the site visits:
Date: 19
th
April 2012
Division: Teck Ghee
Focus: Joint inspection with H DB on LUP Works
Date: 18th May 2012
Division: Yio Chu Kang
Focus: Joint inspection with Business Liaison Committee
(BLC) on Corridor Storage by shop tenants
Date: 28th July
Location: SCDF 3rd Division Headquarters
Focus: Educational visit to SCDF and discussion on
Corridor Obstruction
7
Solar Energy
In collaboration with HDB in a pilot project, Solar
Photovoltaic Systems were installed at the roof top of
LED
Being able to save up to 60% in electricity and having a
longer life span of up to 50,000 hours or 10 years based
on usage of 12 hours/day, Ang Mo Kio Town Council
after completing installation of LED lamps for 253 blocks
11 blocks in Ang Mo Kio in 2011.
Following the successful pilot project, up to 150 blocks
in Ang Mo Kb o had been identified for a full scale
installation. Tender had been called by HDB and
project is expected to be completed by Q1 of 2015.
in Oct 2012 and the Council has prepared another 255
blocks to be fitted with LED lamps starting from Nov
2013.
8
ANG MO KIO TOWN COUNCIL IMPROVEMENT PROJECTS
FY11/12(as at 28 February 2013)
S/N
PROJECT TITLE
SUBMITTED
BY
STATUS / REMARKS
1
Shelter at Hardcourt at Blk 976 Hougang St 91
AMK-H
Work in progress. 85% completed
2
Provision of new illuminated signages at Blks 601-632, 665680 Hougang Ave 4/8
AMK-H
3
Provision of new illuminated signages at Blks 909-931, 936946 Hougang Ave 9/St 91
AMK-H
4
Provision of new illuminated signages at Blks 950-976
Hougang Ave 9/St 92
AMK-H
5
Construction of Low Linkway & Drop-off Porches at Blk 954963, 956, 966, 973 & 975 Hougang St 91
AMK-H
Completed
6
Construction of Street Soccer Court at Blk 970 Hougang Ave
St 91
AMK-H
7
Construction of Fitness Corner at Blk 657 Hougang Ave 8
8
Upgrading of Adult Fitness Corner at Blk 918 Hougang St 91
9
Upgrading of Elderly Fitness Corner at Blk 918 Hougang St
91
AMK-H
10
Upgrading of Children Playground at Blk 917 Hougang St
91
AMK-H
11
Construction of Ramps at Blk 954 & 956 Hougang St
91
AMK-H
12
Upgrading of Children Playground at Blk 606 Hougang Ave 8
AMK - H
AMK-H
AMK-H
Completed
Completed
Completed
Completed
Completed
Completed
Completed
9
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
S/N
PROJECT TITLE
SUBMITTED
BY
STATUS / REMARKS
13
Construction of High & Low Linkway from Blk 589 to bus
stop Ang Mo Kio St 52
CN
14
Construction of Drop-Off Point between Blk 501/503 Ang
Mo Kio Ave 8
CN
15
Construction of Drop-Off Point between Blk 533/534 Ang
Mo Kio Ave 10
CN
Completed
16
Construction of Linkway & Drop-Off Point between Blk
435/436 Ang Mo Kio Ave 10
CN
17
Construction of Elderly Fitness Corner near Blk 423 Ang Mo
Kio Ave 3
CN
Completed
18
Upgrading of Adult Fitness Corner near Blk 585 Ang Mo
Kio Ave 3
CN
Completed
19
Upgrading of Children Playground near Blk 596D Ang
Mo Kio St 52
CN
20
Upgrading of Children Playground near Blk 587 Ang Mo
Kb o Ave 3
CN
Completed
21
Upgrading of Senior Citizens Corner at Blk 534Ang Mo
Kio Ave 10
CN
Completed
I
I
I
I
10
S/N
PROJECT TITLE
SUBMITTED
BY
STATUS/ REMARKS
22
Construction of Hardcourt at Blk 564 AMK Ave 10
JK
Completed
23
Construction of Drop-Off Point Blk 546 AMK Ave 10
JK
Completed
24
Construction of Drop-Off Point Blk 553 AMK Ave 10
JK
Completed
25
Construction of Drop-Off Point Blk 551/552 Serangoon
North Ave 3
JK
26
North Ave 4
JK
Completed
27
North Ave 4
JK
Completed
28
Construction of High Linkway & Drop-Off Points at Blk
984A/B to 984C/D Buangkok Crescent
Jk
Completed
29
Construction of Jogging Track Blk 502 to 510Serangoon
North Ave 4
JK
30
Construction of Senior/Elderly Fitness Corner at Blk 986A
Buangkok Crescent
31
Construction of Senior/Elderly Fitness Corner at Blk
501/504 Serangoon North Ave 4
JK
JK
Completed
Completed
Completed
I
I
I
I
I
I
1
I
I
I
I
S/N
PROJECT TITLE
Construction of Elderly Fitness Corner at Blk 253 Ang Mo
Kio St 21
KB
Completed
33
Kio Ave 3
KB
Completed
34
Construction of Elderly Fitness Corner between Blk 177
& 178 Ang Mo Kio Ave 4
KB
Completed
35
Kio Ave 4
KB
Completed
36
Construction of Drop-Off Point at Blk 253A Ang Mo Kb o St
21
KB
Completed
37
Installation of Notice Board at Blk 223-226, 229-235, 226B,
226D & 226H Ang Mo Kio St 22
KB
Completed
38
Construction of Covered Linkway at Blk 258 to bus stop Ang
Mo Kio Ave 3
KB
39
Construction of Covered Linkway at Blk 128 to Blk 133 Ang
Mo Kio St 12
KB
KB
40
I
STATUS! REMARKS
32
I
I
I
I
I
I
I
I
I
SUBMITTED
BY
Construction of Covered Linkway at Blk 112 to bus stop Ang
Mo Kio St 11
12
I
I
I
I
I
I
I
I
S/N
PROJECT TITLE
41
Construction of Covered Linkway from Blk 301B to bus stop
outside Nan Chiau High School Anchorvale Drive
SUBMITTED
BY
STATUS/ REMARKS
SW
42
Upgrading of existing Drop-Off Shelter between Blk 315A &
315B Anchorvale link
SW
43
Upgrading of existing Drop-Off Shelter between Blk 316B &
316C Anchorvale link
SW
44
Upgrading of existing Drop-Off Shelter between Blk 317B &
318B Anchorvale link
SW
45
Upgrading of existing High Covered Linkway from Blk 311A
linkway at Anchorvale Lane to bus stop existing shelter at
Sengkang East Ave
SW
46
Construction of Covered Linkway from Blk 412B Fernvale
Link to bus stop at Seng kang West Ave
SW
47
Construction of Covered Linkway at Blk 436D Fernvale Road
SW
48
Upgrading of Playground at Blk 306C Anchorvale Link
SW
I
I
I
I
I
I
I
I
I
I
I
I
I
49
Upgrading of Fitness Corner at Blk 301C Anchorvale Drive
SW
Completed
13
I
I
I
I
I
I
I
I
I
I
S/N
PROJECT TITLE
SUBMITTED
BY
STATUS / REMARKS
50
Upgrading of Children Playground to Intergrated
Playground at Blk 471 Ang Mo Kb o Ave 10
TG
51
Upgrading of Children Playground to Intergrated
Playground at Blk 465 Ang Mo Kio Ave 10
TG
52
Construction of High Covered Linkway from Blk 316A to
316B (MSCP) Ang Mo Kio Ave 1
TG
53
Construction of BFA Ramp at Blk 320 AMK Ave 1
TG
54
Construction of BFA Ramp at Blk 354 AMK Ave 8
TG
55
Upgrading of Children Playground at Blk 343 Ang Mo
Kio Ave 3
TG
56
Upgrading of Children Playground at Blk 322Ang Mo
Kio Ave 3
TG
I
I
I
I
I
I
I
I
I
I
I
57
Kio Ave 10
TG
58
Construction of Drop-Off Point at Blk 348Ang Mo
Kio Ave 3
TG
59
Provision of new 3G Letterbox at Blk 311-314, 343347, 303-306 & 318-321 Ang Mo Kio Ave 1/3
TG
Completed
60
Kio Ave 3
TG
Completed
61
Kio Ave 3
TG
62
Upgrading of Children Playground at Blk 315A Ang
Mo Kio St 31
TG
14
I
I
I
I
I
I
I
I
I
I
I
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I
I
I
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I
S/N
63
PROJECT TITLE
Upgrading of existing playground to Intergrated Family
Playground between Blk 203 & 204 Ang Mo Kb o Ave 3
Family Playground between Blk 203 & 204
SUBMITTED
BY
STATUS! REMARKS
YCK
Completed
YCK
Completed
YCK
Work in progress
Ang Mo Kio Avenue 3
64
Upgrading of Children Playground at
Blk 700A Ang Mo Kb o Avenue 6
65
Construction of Covered Linkway between
Blk 641 & 631 Ang Mo Kb o Avenue 4
66
Provision of LED illuminated Block Number Sign
60% completed
YCK
Completed
YCK
Completed
YCK
Completed
for Blks 601-612 & 633-649
Ang Mo Kio Avenue 4/6/9
67
Provision of Banner Structure at
Blks 121, 211, 610, 613, 615, 636, 637, 639, 643,
646,700C,710, 711, 712 & 714 Ang Mo Kb o Ave 6/8
68
Provision of concrete Footpath leading to Ang Mo Kio
Kio Community Library at Ang Mo Kb o Central 3
15
(Established under the Town Councils Act, Cap. 329A)
AUDITED FINANCIAL STATEMENTS
FINANCIAL YEAR ENDED 31 MARCH 2013
MAZARS LLP
Public Accountants and
Chartered Accountants
Singapore
AUDITED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013
TABLE OF CONTENTS
Independent auditors' report
Page
1-2
Statement of financial position
3
Statement of comprehensive income
4
Statement of changes in funds
5
Statement of cash flows
6
Notes to the financial statements
7 - 32
M
,
"
v
""
MAZARS
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
Report on the Financial Statements
We have audited the accompanying financial statements of Ang Mo Kio Town Council (the "Town
Council"), which comprise the statement of financial position as at 31 March 2013, the statement of
comprehensive income, the statement of changes in funds and the statement of cash flows for the financial
year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Town Council's management is responsible for the preparation of financial statements that give a true
and fair view in accordance with the provisions of the Town Councils Act, Cap. 329A (the "Act") and
Singapore Financial Reporting Standards, and for devising and maintaining a system of internal accounting
controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from
unauthorised use or disposition; and transactions are properly authorised and that they are recorded as
necessary to permit the preparation of true and fair financial statements and to maintain accountability of
assets.
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 auditors' 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 auditors consider internal controls relevant to the Town Council's
preparation of financial statements that give a true and fair view 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 Town Council's internal controls. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the Town Council's 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.
Opinion
In our opinion, the financial statements are properly drawn up in accordance with the provisions of the Act
and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the
Town Council as at 31 March 2013 and the results, changes in funds and cash flows of the Town Council
for the financial year ended on that date.
133 CECIL STREET, #15-02 KECK SENG TOWER, SINGAPORE 069535
TEL: (65) 6224 4022 - FAX: (65) 622 5 3974 - www.mazars.sg
MAZARS LLP
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`TIMBAL ALLIANCE OF
INDEPENDENT FIRMS
MAZARS
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
Report on Other 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 controls 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 Town Council's internal controls. 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.
Opinion
In our opinion:
the receipts, expenditure, investment of moneys and the acquisition and disposal of assets by the
Town Council during the financial year are, in all material respects, in accordance with the provisions of
the Act; and
proper accounting and other records have been kept, including records of all assets of the
Town Council whether purchased, donated or otherwise, in accordance with the provisions of the Act.
MAZARS LLP
Public Accountants nd
Chartered Accountants
Singapore
26 August 2013
2
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2013
Note2013
2012
TOWN COUNCIL FUNDS
Residential property funds
Accumulated surplus
Sinking funds
Town Improvement and Project funds 4
5
6
258,588
887,288
106,742,194
110,224,422
2,263,969
1,620,223
109,264,751112,731,933
Commercial property funds
Accumulated surplus
Sinking funds
Town Improvement and Project funds 4
5
6
4,686,964
44,273,658
139,650
49,100,272
2,992,117
42,828,664
116,350
45,937,131
Carpark Fund
Accumulated surplus
41,335,442 498,531
Neighbourhood Renewal Programme fund 7718,816 185,581
Electrical Load Upgrading Programme fund 8
(567,038)
169,852,243
159,353,176
REPRESENTED BY:
Non-current Assets
Plant and equipment Held-to-maturity financial assets 9
10
457,107
457,107
5,464,623
10
5,000,000
7,998,932
11
12
13
14
28,420,797
1,136,090
9,029,368
126,609,517
170,195,772
28,903,505
1,091,878
7,839,217
115,323,901
161,157,433
170,662,879
166,622,056
Current assets
Held-to-maturity financial assets Financial assets at fair value through
profit or loss Conservancy and service fees receivables Other receivables, deposits and prepayments Cash and cash equivalents 539,381
4,925,242
Total assets
Less:
Current liabilities
Conservancy and service fees received in advance
Payables and accrued expenses Income tax payable
Total liabilities NET ASSETS
15
23
945,617
841,287
8,948,164
5,288,272
906,855
1,139,321
10,800,6367,268,880
169,852,243159,353,176
44*,
DR LAM PIN MIN
TAN KOK CHEOW
Chairman
General Manager / Secretary
Date: 26 August 2013
The accompanying notes form an integral part of and should be read in conjunction with these financial statements.
3
STATEMENT OF COMPREHENSIVE INCOME
Note
2013
2012
Operating income
4
50,892,500
47,861,699
5
(17,110,288)
33,782,212
4,541,118
3,536,828
41,860,158
(16,063,114)
(8,774,924)
(5,564,426)
(5,539,470)
(7,434,806)
(17,267,646)
(3,353,404)
(47,934,676)
(6,074,518)
55,148
(7,733,238)
(5,161,183)
(4,658,771)
(7,045,308)
(15,971,143)
(3,605,159)
(44,174,802)
(5,128,555)
63,254
(6,019,370)
(170,580)
(6,189,950)
(5,065,301)
23
Add: Government grants
4,24
17,477,082
14,233,066
Less: Transfers to
-Sinking funds
- Town Improvement and Project funds
4, 5
4,6
(3,718,583)
(5,774,797)
7,983,702
1,793,752
(3,482,353)
(3,252,502)
Conservancy and service fees
Less: Operating income transfer to Sinking funds
(minimum required by law)
Agency fees
Other income
4, 16
4, 17
31,798,585
4,150,881
3,096,781
39,046,247
Less: Operating expenditure
Cleaning works
Managing agent's fees
Lift maintenance
Other works and maintenance
Water and electricity
General and administrative expenditure
18
19
Operating deficit
Add: Interest income
Deficit before income tax and government grants
Less: Income tax
Deficit before government grants
SURPLUS FOR THE FINANCIAL YEAR
Add: Accumulated surplus as at 1 April
Less: Transfer of accumulated surplus at 18 April 2011
Add: Net transfer of funds during boundary change
Less: Adjustment for transfer of funds during boundary
change
Add: Transfer from Tow Improvement and Project
Funds
Less: Appropriation to Town Improvement and Project
Funds
ACCUMULATED SURPLUS AT 31 MARCH
DR LAM PIN MIN
Chairman
4,377,936
(267,864)
(5,333,165)
7,498,211
2,165,046
16,657,723
(12,826,802)
209,976
(67,624)
2,580,549
(91,434)
(2,403,619)
(1,736,573)
6,280,994
4,377,936
TAN KOK CHEOW
General Manager / Secretary
Date: 26 August 2013
4
STATEMENT OF CHANGES IN FUNDS
Residential
Property
Funds
Commercial
Property
Funds
162,376,568
114,002,975
2,963,087
45,078,686
(3,675,384)
651,992
159,353,176
(1,901,584)
(2,332,545)
112,731,933
(1,466,377)
2,324,822
45,937,131
(67,624)
566,691
(67,624)
(3,399,558)
Tota I
Balance at 1 April 2011
Inter-funds transfer
Net transfer of funds during
Boundary Change
Surplus/(Deficit) for the year
Balance at 31 March 2012
Adjustment for transfer of
funds during Boundary
Change
Balance at 31 March 2013
159,852,243
Car park
Fund
2,971,174
(2,963,087)
836,911
3,163,141
1,335,442
49,100,272
109,264,751
(323,996)
814,440
498,531
Neighbourhood
Renewal
Programme
Fund
323,733
16,573
(154,725)
185,581
533,235
718,816
The surplus/(deficit) for the year comprises the following:
Note
2013
2012
4
5
6
7
8
1,793,752
(2,037,234)
843,976
633,235
(567,038)
566,691
2,165,046
1,185,889
(2,544,218)
(154,725)
2013
2012
Accumulated surplus
Sinking funds
Town Improvement and Project funds
Neighbourhood Renewal Programme fund
Electrical Load Upgrading Programme fund
651,992
The transfer during Boundary Change comprises the following:
Note
4
5
6
7
Accumulated surplus
Sinking funds
Town Improvement and Project funds
Neighbourhood Renewal Programme fund
(67,624)
(67,624)
209,976
(4,178,417)
276,484
16,573
(3,675,384)
5
Electrical
Upgrading
Programme
Fund
(567,038)
(567,038)
STATEMENT OF CASH FLOWS
Note
Operating activities
Deficit before income tax and government grants
Adjustments for:
Depreciation of plant and equipment
Loss on disposal of plant and equipment
Net deficit transferred to other Town Council during
Boundary Change
Payment to Pasir Ris Punggol Town Council for
debts during Boundary Change
Operating income transfer to Sinking Funds
9
19
2013
2012
(6,019,370)
(5,065,301)
137,394
80,632
14,576
(3,632,671)
(67,624)
17,110,288
16,063,114
Operating cash flows before changes in working
capital
11,160,688
7,460,350
Movements in working capital:
Operating receivables
Operating payables
(715,296)
3,764,222
825,023
(3,438,693)
14,209,614
(574,258)
(23,607,764)
(4,930,821)
(1,730,814)
(567,038)
4,846,680
(575,623)
(18,921,159)
(5,796,720)
(1,204,718)
(17,201,081)
(21,651,540)
24
17,477,082
14,233,066
7
2,262,615
(28)
1,049,271
(45)
2,538,588
(6,369,248)
802,120
8,000,000
(167,631)
112,511
(867,627)
280,231
29,188,303
7,879,373
28,924,107
10,417,961
114,407,577
22,554,859
91,852,718
124,825,538
114,407,577
5
Net cash flows generated from operations
Income taxes paid
Sinking funds expenditure
Town Improvement and project funds expenditure
Neighbourhood Renewal Programme funds expenditure
Electrical Load Upgrading Programme funds expenditure
23
20
21
7
8
Cash used in operations before government grants
Government grants received
Funding from Housing & Development Board for
Neighbourhood Renewal Programme projects
Fixed deposit pledged
Net cash from/(used in) operating activities
Investing activities
Interest and investment income received
Proceeds from redemption of bonds upon maturity
Purchase of plant and equipment
Proceeds from HDB for share of plant & equipment cost
Cash and fixed deposits placed with fund managers
10
9
Net cash from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
14
6
(544,427)
NOTES TO THE FINANCIAL STATEMENTS
General information
Ang Mo Kb o Town Council (the "Town Council") was formed in 1989 under this Town Act (Cap.
329A). The principal functions of the Town Council are to control, manage, maintain and improve
the common areas of residential units, other commercial properties and market and food centres in
the housing estates of the Housing & Development Board ("HDB") within the Town.
The Town Council manages the Sengkang West Single Member Constituency ("SMC") and Ang
Mo Kio Group Representation Constituency ("GRC"), comprising the divisions of Cheng SanSeletar, Ang Mo Kio - Hougang, Jalan Kayu, Kebun Baru, Teck Ghee and Yio Chu Kang.
As a result of the redrawing of the electoral boundaries after the General Elections held on 7 May
2011, there have been changes to the Ang Mo Kio Town Council boundary with effect from 18
April 2011, the date of issue of the writ of election.
The maintenance of the residential and commercial properties of the Aljunied Hougang (AH)
precincts AH001, AH002, AH003, AH004, AH005, AH008 & AH009 has been taken over by Ang
Mo Kio Town Council from the Aljunied Town Council. In addition, the precincts AH006, AH007 &
AH010 was taken over from Pasir Ris - Punggol Town Council. Consequently, the Nee Soon South
Division has been taken over by Sembawang Nee Soon Town Council.
The principal office of operations is situated at Block 342, Ang Mo Kio Avenue 1, #01-1561,
Singapore 560342.
The financial statements of the Town Council for the financial year ended 31 March 2013 were
authorised for issue by the Town Council on 26 August 2013.
Summary of significant accounting policies
2.1Basis of preparation
The financial statements have been drawn up in accordance with Singapore Financial Reporting
Standards ("FRS") including all related Interpretations to FRS ("INT FRS") as issued by the
Singapore Accounting Standards Council and the provisions of the Town Councils Act, Cap 329A
and are prepared on a historical cost basis except as disclosed where appropriate, in these
financial statements.
The financial statements of the Town Council are measured and presented in the currency of the
primary economic environment in which the Town Council operates (the functional currency). The
financial statements of the Town Council are presented in Singapore dollars ("$ or SGD"), which is
also the functional currency of the Town Council.
In the current financial year, the Town Council has adopted all the new and revised FRS and INT
FRS that are relevant to its operations and effective for the current financial year. The adoption of
these new/revised FRS and INT FRS does not result in changes to the Town Council's accounting
policies and has no material effect on the amounts reported for the current or prior years.
FRSs issued but not yet effective
At the date of authorisation of these financial statements, the following FRSs, and amendments to
FRS that are relevant to the Town Council were issued but not yet effective:
FRS
Effective date
for period
beginning
Title
on or after
FRS 1Amendments to FRS 1 - Presentation of item of other 1 July 2012
comprehensive income
1 January 2013
FRS 19Employee benefits FRS 32Amendments to FRS 32- Offsetting of financial assets and 1 January 2014
financial liabilities
FRS 107Amendments to FRS 107 - Offsetting financial assets and 1 January 2013
financial liabilities
1 January 2013
FRS 113 Fair value measurements 7
2.Summary of significant accounting policies
2.2Town Council Funds
Consequential amendments were also made to various standards as a result of these new or
revised standards.
The management anticipates that the adoption of the above FRSs in future periods will not have a
material impact on the financial statements, and in particular, to the financial position and financial
performance, of the Town Council in the period of their initial adoption.
In accordance with Section 33(1) of the Town Councils Act, separate funds are established to
account for the management of the different types of properties. The types of properties currently
under the management of the Town Council are as follows:
Residential property
Commercial property
Car parks are managed by the Town Council for the HDB on an agency basis.
The routine funds related to properties under management, together with Sinking funds, Town
Improvement and Project funds and Neighbourhood Renewal Programme fund form the Town
Council funds.
All monies received by the Town Council are paid into and related expenditure are met out of the
appropriate funds set up for each property type managed.
Assets and liabilities of the various funds of the Town Council are pooled at the end of each
reporting period.
Sinking Funds
In accordance with Section 33(4) of the Town Councils Act, separate Sinking funds are established
for improvement to, management and maintenance of residential and commercial properties.
These Sinking funds are maintained as part of the Town Council's Fund.
Under the Town Councils Act, the Minister of National Development may, from time to time,
prescribe the minimum amounts of conservancy and service fees and grants-in-aid to be paid into
the Sinking funds.
The minimum amounts that are paid by each property type into the Sinking funds are as follows:
1-room to 3-room
4-room
5-room
Executive
Shop with living accommodation
Commercial property
30% of the conservancy and service fees and grants-in-aid
35% of the conservancy and service fees and grants-in-aid
35% of the conservancy and service fees
These minimum contributions are treated as operating income transfers and are deducted from
conservancy and service fees and government grants in the statement of comprehensive income.
The Sinking funds are utilised for cyclical major repainting, renewal or replacement of roofing
system, water tanks, pumps and water supply system, lighting protection system, lifts, installation
of any sensor and starter controller to the time-controlled booster pumping system, installation or
replacement of any video monitoring devices in lifts, major repairs and maintenance of the
common area and contributions to the HDB in respect of general upgrading works carried out on
the common property as defined under the Housing and Development Act.
8
2.Summary of significant accounting policies (Continued)
2.2Town Council Funds (Continued)
Town Improvement and Project Funds
Town Improvement and Project Funds are established and maintained as part of the Town Council
Funds. These funds are utilised for improvement and development works in the Town.
The Town Improvement and Project Funds comprise the amounts set aside for projects to be
carried out in the next financial year. All expenditures on town improvement and projects are
appropriated from these reserves.
The funds are set up by transfer of funds from the accumulated surplus to fund specific projects to
be carried out. In addition, the Town Council receives funding for approved projects under the
Community Improvement Projects Committee ("CIPC") scheme. These funds are paid through the
Citizens' Consultative Committees.
Neighbourhood Renewal Programme Fund
The Neighbourhood Renewal Programme ("NRP") was introduced in Aug 2007 in response to
feedback received from residents during the Forum on HDB Heartware for more active
consultation on the improvements to be provided in their precincts.
The NRP, which replaces the Interim Upgrading Programme ("IUP") Plus, focuses on block and
neighbourhood improvements. It is implemented on a larger area basis of 2 or more contiguous
precincts.
Blocks built up to 1989 and have not undergone the Main Upgrading Programme, Interim IUP or
IUP Plus are eligible for NRP. This programme is fully funded by the Government and
implemented by the Town Council.
The funding for the NRP is provided by the government for the specified use of projects under the
programme. The grant is subject to a budget allocation of $3,400 per dwelling unit for NRP works,
as well as $150 per dwelling unit or $125,000, whichever is higher for miscellaneous expenditure.
However, if the cost of project works incurred exceeds the grants provided, the Town Council will
have to bear the cost of the excess expenditure.
Electrical Load Upgrading Programme Fund
The Electrical Load Upgrading (ELU) was introduced to upgrade the incoming electrical supply for
HDB apartment blocks with a 40amps main switch instead of 30amps. The ELU works include
Supply and install new main switchboard including all accessories, connection, authority testing,
commissioning and LEW licencing; Replacement of all electrical sub-main risers including all tapoff boxes, accessories and connections; as well as Replacement of all meter boards for residential
units including authority testing and commissioning. This is to enable flat owners to install an airconditioner or other higher capacity equipment/appliances if the flat is provided with higher
electrical loading.
Blocks completed on or after 1 Jan 1994 and have undergone the Main Upgrading Programme
(MUP) are not eligible for ELU as they are already provided with a higher electrical loading of 40
amps main switch.
This programme is fully funded by HDB and implemented by the Town Councils.
2.3Inter-funds transfer
Under Section 33(9) of the Town Councils Act, the Town Council may transfer an amount not
exceeding the surplus from any of its funds constituting the Town Council Funds, to a fund which is
in deficit.
9
2.4Allocation of general overheads
Expenditure not relating specifically to any type of property managed, for example, administrative
overheads, tree planting, pruning, etc., is allocated to the various types of property using
equivalent dwelling units ("EDU") as follows:
Property Type 1 residential property unit 1 commercial property unit 1 market and food centre 6 car lots or 36 motor cycle lots or 4 lorry lots Equivalent Dwelling Unit(s)
1
2
2
1
Such allocation of EDU is not applied to the Sinking funds, Town Improvement and Project funds,
Neighbourhood Renewal Programme fund and Electrical Load Upgrading Programme fund.
2.5Government grants
The Town Council receives four types of grants from the Government, namely, service and
conservancy charges ("S&CC") grant, payments from Citizens' Consultative Committees, GST
subvention grant and Town Council Lift Upgrading Programme ("TC-LUP") assistance grant.
Service and conservancy charge operating grants to meet the current year's operating expenditure
are taken to the statement of comprehensive income.
Payments from Citizens' Consultative Committees are granted to provide funding support for
community improvement project under the CIPC scheme.
The GST subvention is given as grants-in-aid and is granted to assist Town Council for absorbing
the GST increases in service and conservancy charges for HDB residential flats.
Government grants are recognised at their fair value where there is reasonable assurance that the
conditions attaching to it will be complied with and that the grants will be received. Where the grant
relates to an asset, the fair value is recognised as deferred capital grant on the statement of
financial position.
2.6Revenue recognition
Revenue comprises the fair value of the consideration received or receivable from the gross inflow
of economic benefits during the year arising from the course of the ordinary activities of the Town
Council and it is shown net of related tax, estimated returns and rebates.
( ) Conservancy and service fees
Conservancy and service fees are recognised when due.
Agency fees
Agency fees for routine maintenance of HDB's car parks are recognised when due.
Interest income
Interest income from fixed deposits is recognised on a time proportion basis using the
effective interest rates.
Income from funds placed with fund managers is recognised based on fair value through
profit or loss.
Other income
Other income comprises mainly licence fees ("TOL") income, liquidated damages claims
and other miscellaneous income, and are recognized when due.
10
2.7Income tax
Tax is provided on the following income:
Income derived from investments and bank deposits;
Fees, rent and other charges received from non-residents or non-owners of properties in
the Town for the use of common property and maintenance of carparks where the Town
Council opts to manage and maintain them;
Donations from non-residents or non-owners of properties in the Town; and
Agency fees derived from acting as agent for the HDB.
Income tax is accounted using the asset and liability method that requires the recognition of taxes
payable or refundable for the current year and deferred tax liabilities and assets for the future tax
consequence of events that have been recognised in the financial statements or tax returns. The
measurements of current and deferred tax liabilities and assets are based on provisions of the
enacted or substantially enacted tax laws, and the effects of future changes in tax laws or rates are
not anticipated. Income tax expense represents the sum of the tax currently payable and deferred
tax. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the
same income tax authority.
2.8Plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and any accumulated
impairment losses. The cost of plant and equipment includes its purchase Price and any costs
directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management. Dismantlement, removal or
restoration costs are included as part of the cost of plant and equipment if the obligation for
dismantlement, removal or restoration is incurred as a consequence of acquiring or using the plant
and equipment.
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, using
the straight-line method, on the following bases:
Furniture, fixtures
and fittings
Office equipment
5 years
3-5 years
The carrying values of plant and equipment are reviewed for impairment when events or changes
in circumstances indicate that the carrying value may not be recoverable.
The estimated useful lives, residual values and depreciation methods are reviewed, and adjusted
as appropriate, at the end of each financial year.
The gain or loss, being the difference between the sales proceeds and the carrying amount of the
asset, arising on disposal or retirement of an item of plant and equipment is recognised in
statement of comprehensive income. Any amount in the revaluation reserve relating to that asset
is transferred to retained earnings directly.
Fully depreciated plant and equipment are retained in the financial statements until they are no
longer in use.
11
2.9Financial assets
Initial recognition, measurement and derecognition of financial assets
The Town Council classifies its investments in financial assets in the following categories: financial
assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and
available-for-sale financial assets. The classification depends on the purpose for which the assets
were acquired. Management determines the classification of its financial assets at initial
recognition and re-evaluates this designation at every reporting date, with the exception that the
designation of financial assets at fair value through profit or loss is not revocable.
The initial recognition of financial assets is at fair value normally represented by the transaction
price. The transaction price for financial asset not classified at fair value through profit or loss
includes the transaction costs that are directly attributable to the acquisition or issue of the
financial asset. Transaction costs incurred on the acquisition or issue of financial assets classified
at fair value through profit or loss are expensed off immediately. The transactions are recorded at
the trade date.
Irrespective of the legal form of the transactions performed, financial assets are derecognised
when they pass the "substance over form" based derecognition test prescribed by FRS 39
Financial Instruments: Recognition and Measurement relating to the transfer of risks and rewards
of ownership and the transfer of control.
Subsequent measurement
Subsequent measurement based on the classification of financial assets of the respective
categories under FRS 39 is as follows:
Financial assets at fair value through profit or loss
Assets are classified in this category when they are principally incurred for the purpose of
selling or repurchasing in the near term (trading assets) or are derivatives (except for a
derivative that is a designated and effective hedging instrument) or have been classified in
this category because the conditions are met to use the "fair value option" and it is used.
These assets are carried at fair value by reference to the transaction price or current bid
prices in an active market. All changes in fair value are recognised directly in the statement
of comprehensive income. They are classified as non-current assets unless management
intends to dispose of the investment within 12 months from the reporting date. Investments
in equities, bonds and unit trusts are classified under this category.
Loans and receivables:
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Assets that are for sale immediately or in
the near term are not classified in this category. These assets are carried at amortised costs
using the effective interest method (except that short-duration receivables with no stated
interest rate are normally measured at original invoice amount unless the effect of imputing
interest would be significant) minus any reduction (directly or through the use of an
allowance account) for impairment or uncollectibility. Impairment charges are provided only
when there is objective evidence that an impairment loss has been incurred as a result of
one or more events that occurred after the initial recognition of the asset (a 'loss event') and
that loss event (or events) has an impact on the estimated future cash flows of the financial
asset or group of financial assets that can be reliably estimated. Losses expected as a
result of future events, no matter how likely, are not recognised. For impairment, the
carrying amount of the asset is reduced through use of an allowance account. The amount
of the loss is recognised in the statement of comprehensive income.
12
2.9Financial assets (Continued)
Subsequent measurement (Continued)
Held-to-maturity financial assets
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturities that the Town Council's management has the positive
intention and ability to hold to maturity. Held-to-maturity investments are initially recognised
at fair value plus transaction costs and subsequently measured at amortised cost using the
effective interest rate method, less impairment losses. Gains and losses are recognised in
the statement of comprehensive income when the held-to-maturity investments are
derecognised or impaired, and through the amortisation process. The Town Council's heldto-maturity investments include investments in fixed and variable rate corporate bonds.
Available-for-sale financial assets
As at the reporting date there were no financial assets classified under this category.
Impairment of financial assets
The Town Council assesses at each reporting date whether there is objective evidence that a
financial asset or a group of financial assets is impaired. Impairment losses recognised in the
statement of comprehensive income on equity investments are not reversed through statement of
comprehensive income, until the equity investments are disposed of.
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 determined, net of depreciation or amortisation, if no impairment
loss had been recognised.
2.10Impairment of non-financial assets
At each reporting date, the Town Council reviews the carrying amounts of its assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss.
Where it is not possible to estimate the recoverable amount of an individual asset, the Town
Council estimates the recoverable amount of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its
recoverable amount. Impairment losses are recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cashgenerating unit) is increased to the revised estimate of its recoverable amount, but only to the
extent that the increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for the asset (cash-generating unit) in
prior years. A reversal of an impairment loss is recognised as income immediately.
13
2.11Funds with fund manager
Funds with fund manager represent the cost of the portfolio of assets placed with a fund manager
at the beginning of each management term plus actual gains less losses (determined on a portfolio
basis), net of the management fees payable during the management term.
Funds with fund manager comprise mainly equities, bonds, cash and fixed deposits. Equities and
bonds are stated on an aggregate portfolio basis.
On expiry of the management term, any surplus over and above the performance benchmark will
be shared between the Town Council and the fund manager on the agreed basis.
2.12Conservancy and service fees receivables
After initial recognition at fair value, conservancy and service fees receivable are measured at
amortised cost using the effective interest method but short-duration receivables with no stated
interest rate are measured at original amount unless the effect of imputing interest would be
significant. Conservancy and service fees receivable are stated after allowance for impairment.
Allowance for impairment is made if there is objective evidence of impairment as a result of one or
more events that occurred after the initial recognition and that the loss event has an impact on the
estimated future cash flows of the financial asset that can be reliably estimated. The carrying
amounts of conservancy and service fees receivable approximate their fair value. The amount of
the impairment allowance is recognised in the statement of comprehensive income. No interest is
charged on conservancy and service fees receivables in normal circumstances.
2.13Other receivables
Other receivables recognised initially at fair value and subsequently at amortised cost using the
effective interest method, less any impairment losses.
2.14Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, bank overdrafts and
other short term highly liquid investments which are readily convertible to known amounts of cash
and are subject to insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents exclude those pledged
as collateral and managed by fund manager.
2.15Financial liabilities
Initial recognition, measurement and derecognition of financial liabilities
A financial liability is recognised at each reporting date when, and only when, the Town Council
becomes a party to the contractual provisions of the instrument. The initial recognition of financial
liability at fair value is normally represented by the transaction price. The transaction price for
financial liability not classified at fair value through profit or loss includes the transaction costs that
are directly attributable to the acquisition or issue of the financial liability. Transaction costs
incurred on the acquisition or issue of financial liability classified at fair value through profit or loss
are expensed off immediately. The transactions are recorded at the date of transaction.
The Town Council derecognises financial liability when, and only when, its obligations are
discharged, cancelled or expired.
Subsequent measurement
Subsequent measurement based on the classification of financial liabilities of the respective
categories under FRS 39 is as follows:
14
2.15Financial liabilities (Continued)
Liabilities at fair value through profit or loss
As at the reporting date, there were no financial liabilities classified under this category.
Other financial liabilities
All liabilities, which have not been classified as in the previous category fall into this residual
category. These liabilities are carried at amortised cost using the effective interest method.
Payables and borrowings are classified under this category. Items classified within current
payables are not usually re-measured, as the obligation is usually known with a high degree of
certainty and settlement is short-term.
2.16Fair value of financial instruments
The carrying values of current financial assets and financial liabilities approximate their fair values
due to the short-term maturity of these instruments. Disclosures of fair values are not made when
the carrying amount of current financial instruments is a reasonable approximation of fair value.
The fair values of non-current financial instruments may not be disclosed separately unless there
are significant items at the end of the year and in the event the fair values are disclosed in the
relevant notes of these financial statements. The maximum exposure to credit risk is the fair value
of the financial instruments at the end of the reporting year. The fair value of a financial instrument
is derived from an active market. The appropriate quoted market price for an asset held or liability
to be issued is usually the current bid price without any deduction for transaction costs that may be
incurred on sale or other disposal and, for an asset to be acquired or liability held, the asking price.
2.17Payables and accrued expenses
Liabilities for trade and other amounts payable, which are generally settled on 30-90 days terms,
are carried at cost, which is the fair value of the consideration to be paid in the future for goods
and services received, whether or not billed to Town Council.
2.18Lease as a lessee
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of
the leased assets are classified as operating leases. For operating leases, lease payments are
recognised as an expense in the statement of comprehensive income on a straight-line basis over
the term of the relevant lease unless another systematic basis is representative of the time pattern
of the lessee's benefit, even if the payments are not on that basis. Lease incentives received are
recognised in the statement of comprehensive income as an integral part of the total lease
expense.
2.19Provisions
A liability or provision is recognised when there is a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. Provisions are made using best estimates of the amount required in settlement and
where the effect of the time value of money is material, the amount recognised is the present value
of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the obligation.
The increase in the provision due to passage of time is recognised as interest expense. Changes
in estimates are reflected in the statement of comprehensive income in the period they occur.
15
2.20Contingencies
A contingent liability is:
a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Group; or
a present obligation that arises from past events but is not recognised because:
it is not probable that an outflow of resources embodying economic benefits will
be required to settle the obligation; or
the amount of the obligation cannot be measured with sufficient reliability.
3.Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements in conformity with FRS requires the Town Council to
make judgements, estimates and assumptions of the carrying amounts of assets and liabilities that
were not readily apparent from other sources in the application of the Town Council's accounting
policies. Estimates and judgements are continually evaluated and are based on historical
experience and other factors that are considered to be reasonable under the circumstances.
Actual results may differ from the estimates.
3.1Critical judgements made in applying the Town Council's accounting policies
In the process of applying the Town Council's accounting policies, the management is of the
opinion that there are no critical judgements (other than those involving estimates) that have a
significant effect on the amounts recognised in the financial statements.
3.2Key sources of estimation uncertainty
The estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are discussed below.
(i)Allowance for doubtful conservancy and service fees receivables and other
receivables
Allowance for doubtful conservancy and service debts amounting to $636,504 (2012:
$538,957) has been estimated on the basis of age of debts, result of recovery efforts and
historical experience (Note 12).
Other receivables mainly consists of grants receivables from the Citizens' Consultative
Committees (CCC) for approved projects and no allowance has been provided for.
Allowance is applied to other receivables if events or changes in circumstances indicate that
the balances may not be collectible. The identification of doubtful of other receivables
requires the use of judgement and estimates. Where the expectation is different from the
original estimate, such difference will impact the carrying amount of other receivables and
the allowance for impairment in the financial year in which such estimate has been changed
(Note 13).
16
3.Critical accounting judgements and key sources of estimation uncertainty (Continued)
3.2Key sources of estimation uncertainty (Continued)
The cost of plant and equipment for the Town Council is depreciated on the straight-line
basis over the plant and equipment's estimated economic useful lives. Changes in the
expected useful lives and the technological developments could impact the economic useful
lives and the residual values of these assets, therefore, future depreciation charges could
be revised. The carrying amount of the Town Council's plant and equipment as at 31 March
2013 was $457,107 (2012: $539,381) (Note 9).
Impairment of financial and non-financial assets
The Town Council adopts the guidance of FRS 36 Impairment of Assets and FRS 39
Financial Instruments: Recognition and Measurement in determining when an asset is
impaired. This assessment requires certain level of judgement. The Town Council
evaluates, among other factors, the duration and extent to which the fair value of the asset
is less than its cost, and the financial health of and near-term economic benefit for the asset,
changes in technology and operational and financing cash flows.
Provision for income taxes
The Town Council is subject to income taxes in Singapore. Judgement is required in
determining the deductibility of certain expenses during the estimation of the provision for
income taxes. There are certain transactions and computations for which the ultimate tax
determination is uncertain during the ordinary course of operations. The Town Council
recognises liabilities for expected tax issues based on estimate of whether additional taxes
will be due. Where the final tax outcome of these matters differs from the amounts that were
initially recognised, such differences will impact the income tax provisions in the period in
which such determination is made. The carrying amount of the Town Council's current tax
payable as at 31 March 2013 is $906,855 (2012: $1,139,321) (Note 23).
The Town Council follows the guidance of FRS 39 Financial Instruments: Recognition and
Measurement (FRS39") on classifying non-derivatives financial assets with fixed or
determinable payments and fixed maturity as held-to-maturity. This classification requires
significant judgement. In making this judgement, the Town Council evaluates its intention
and ability to hold such investments to maturity.
If the Town Council is unable to keep these investments to maturity other than for specific
circumstances explained in FRS 39, it will be required to reclassify the whole class as
available-for-sale. The investments would therefore be measured at fair value not amortised
cost. The carrying amount of the Town Council's held-to-maturity financial assets as at 31
March 2013 is $5,000,000 (2012: $12,924,174) (Note 10).
17
MI • ill NM
Mil
•
MI
MINI
MIIIIIII • MB • I= •
•
•
NM
4.Accumulated surplus
The surplus for the year attributable to the various activities is carried forward as accumulated surplus in the respective funds as follows:
Note
OPERATING INCOME
Conservancy and service fees
Less: Operating income transfer to Sinking Funds
(minimum required by law) 5
Agency fees Other income 16
17
Less: Operating expenditure
OPERATING (DEFICIT)/SURPLUS
Add: Interest Income
(DEFICIT)/SURPLUS BEFORE INCOME TAX
AND GOVERNMENT GRANTS
Less: Income tax (DEFICIT)/SURPLUS BEFORE
GOVERNMENT GRANTS
Add: Government grants
Less: Transfer to
- Sinking Funds
- Town Improvement and Project Funds
ACCUMULATED SURPLUS AT 31 MARCH
Residential
Property Funds
20132012
$
$
Commercial
Property Funds
20132012
$
$
Car park Fund
20132012
$
$
50,892,500
47,861,699
46,889,426
44,009,912
4,003,074
3,851,787
(17,110,288)
33,782,212
4,541,118
3,536,828
41,860,158
(47,934,676)
(6,074,518)
55,148
(16,063,114)
31,798,585
4,150,881
3,096,781
39,046,247
(44,174,802)
(5,128,555)
63,254
(15,709,210)
31,180,216
(14,714,987)
29,294,925
(1,401,078)
2,601,996
(1,348,127)
2,503,660
989,068
32,169,284
(41,245,749)
(9,076,465)
52,080
861,742
30,156,667
(38,234,123)
(8,077,456)
58,830
2,475,362
5,077,358
(2,907,679)
2,169,679
1,106
2,183,667
4,687,327
(2,554,904)
2,132,423
1,601
(6,019,370)
(170,580)
(5,065,301)
(267,864)
(9,024,385)
(4,145)
(8,018,626)
332,026
2,170,785
(169,116)
2,134,024
(595,029)
834,230
2,681
819,301
(4,861)
(6,189,950)
(5,333,165)
(9,028,530)
(7,686,600)
2,001,669
1,538,995
836,911
814,440
24
17,477,082
14,233,066
17,477,082
14,233,066
-
-
-
5,24
6,24
(3,718,583)
(5,774,797)
7,983,702
1,793,752
(3,482,353)
(3,252,5021
7,498,211
2,165,046
(3,718,583)
(5,442,426)
8,316,073
(712,457)
(3,482,353)
(3,059,194)
7,691,519
4,919
(332,371)
(332,371)
1,669,298
(193,308)
(193,308)
1,345,687
-
-
836,911
814,440
887,288
4,302,525
2,992,117
9,384,024
498,531
2,971,174
23
SURPLUS FOR THE YEAR
ACCUMULATED SURPLUS AT 1 APRIL
Add(Less):
Transfer of accumulated surplus at 18 April 2011
Net transfer of funds during boundary change
Adjustment for transfer of funds during Boundary
Change
Transfer from Town Improvement and Project
Funds
Appropriation to Town Improvement and Project
Funds
Total
20132012
$
$
4,377,936
16,657,723
(67,624)
(67,624)
(91,434)
2,415,350
(97,010)
165,199
5,576
(2,403,619)
(1,736,573)
(2,263,969)
(1,620,223)
(139,650)
(116,350)
6,280,994
4,377,936
258,588
6
2,580,549
6
4,150,881
51,372
4,202,253
(3,385,775)
816,478
2,823
(2,963,087)
(323,996)
(7,467,092)
(159,728)
(2,396,623)
693,700
(12,826,802)
209,976
4,541,118
72,398
4,613,516
(3,781,248)
832,268
1,962
18
887,288
4,686,964
2,992,117
1,335,442
498,531
MI MI MN
MI MI NMMI UM MI NMMN NM UM MI VIM ANG MO KIO TOWN COUNCIL
5.Sinking funds
Total
Note2013
$
2012
$
Balance at 1 April
153,053,086 140,721,930
Transfer from accumulated surplus at 18 April 2011
-15,323,684
Transfer of funds during Boundary Change
-(4,178,417)
153,053,086 151,867,197
Add:
Income
Operating income transfer from conservancy
and service fees
Transfer from government grants
Less:
Expenditure Income tax
(Deficit)/Surplus for the year
Balance at 31 March
20
912,871
4
4
17,110,288
3,718,583
20
23
850,337
(23,607,764)
(171,212)
(2,037,234)
151,015,852
10
Current Assets
Held-to-maturity financial assets 10
Financial assets at fair value through profit or loss11
Conservancy and service fees receivables 12
Other receivables, deposits and prepayments 13
Due from accumulated surplus
Cash and cash equivalents 14
Total Assets
Current Liabilities
Payables and accrued
expenses
Income tax payable
Total Liabilities
NET ASSETS
15
23
42,828,66435,419,414
7,612,900
(1,332,750)
42,828,664
41,699,564
848,118
168,422
2,219
16,063,114
15,709,210
3,482,353
3,718,583
20 ,395,80420,172,242
14,714,987
3,482,353
19,045,458
1,401,078
1,348,127
1,569,500
1,350,346
(18,921,159)(23,520,534)
(288,756)(133,936)
1,185,889 (3,482,228)
153,053,086106,742,194
(18,695,564)
(293,105)
56,789
110,224,422
(87,230)
(37,276)
1,444,994
44,273,658
(225,595)
4,349
1,129,100
42,828,664
4,925,242
5,000,000
28,420,797
375,813
985,606
6,208,032
114,327,786
155,318,034
155,318,034
7,998,932
28,903,505
295,277
1,245,057
4,451,708
106,729,149
149,623,628
154,548,870
3,922,205
379,977
4,302,182
4,302,182
151,015,852
1,077,667
418,117
1,495,784
1,495,784
153,053,086
19
110,224,422 105,302,516
7,710,784
(2,845,667)
110,224,422110,167,633
Commercial
Property Funds
2013
2012
744,449
Represented by:
Non-Current Assets
Residential
Property Funds
2013
2012
• =I •
•
•
•
III MIIIMINM11111
I=
•
•
I= MN •
ANG MO MO TOWN COUNCIL
6.Town Improvement and Project funds
Note
Balance at 1 April
Total
2013
1,736,573
4
21
Deficit for the year
Transfer to accumulated surplus *
Appropriation from accumulated surplus **
116,350
1,620,223
116,350
275,248
(145,809)
26,102
155,541
3,252,502
(5,796,720)
5,442,426
(4,647,299)
3,059,194
(5,453,447)
332,371
(283,522)
193,308
(343,273)
(2,544,218)
795,127
(2,394,253)
48,849
(149,965)
97,010
1,620,223
1,620,223
(165,199)
139,650
139,650
(5,576)
116,350
116,350
1,736,573
5,774,797
(4,930,821)
843,976
4
4
(2,580,549)
2,403,619
2,403,619
91,434
1,736,573
1,736,573
13
5,877,194
5,877,194
4,662,398
4,662,398
15
14
1,566,337
1,907,238
3,473,575
2,403,619
1,362,716
1,563,109
2,925,825
1,736,573
Balance at 31 March
1,620,223
Commercial
Property Funds
2013
2012
4,397,934
(2,351,073)
250,382
2,297,243
4,673,182
(2,496,882)
276,484
2,452,784
Transfer from accumulated surplus at 18 April 2011
Add/(Less):
Transfer from government grants
Expenditure
2012
Residential
Property Funds
2013
2012
(2,415,350)
2,263,969
2,263,969
Represented by:
Current Assets
Other receivables, deposits and prepayments
Total assets
Current Liabilities
Payables and accrued expenses
Cash and cash equivalents
Total liabilities
NET ASSETS
* At the end of each financial year, the Town Council would transfer any surplus or deficit from the Town Improvement and Project Funds to the accumulated surplus.
** The amount required by the Town Improvement and Project Funds for the following financial year would then be appropriated from the accumulated surplus.
20
7.Neighbourhood Renewal Programme fund
Balance at 1 April
2013
2012
185,581
323,733
16,573
340,306
185,581
Add/(Less):
Funding from Housing & Development Board
Interest income
Management and consultancy fees
2,262,615
1,434
(1,730,814)
533,235
718,816
Balance at 31 March
8.Electrical Load Upgrading Programme fund
1,049,271
722
(1,204,718)
(154,725)
2013
185,581
2012
Balance at 1 April
Less:
Management and consultancy fees Deficit for the year (567,038)
(567,038)
Balance at 31 March
(567,038)
9.Plant and equipment
Furniture,
fixtures and
fittings
Office
equipment
Total
Cost
At 1 April 2011
Additions
Transfers
Disposals
At 31 March 2012
Additions
Adjustment
Disposals
653,871
497,064
(225,424)
925,511
125,984
(137,607)
-
209,580
47,363
(109,324)
147,619
41,647
(16,389)
863,451
544,427
(225,424)
(109,324)
1,073,130
167,631
(137,607)
(16,389)
At 31 March 2013
913,888
172,877
1,086,765
At 1 April 2011
Depreciation
Transfers
Disposals
At 31 March 2012
Depreciation
Adjustment
Disposals
570,082
69,508
(210,848)
428,742
115,272
(25,096)
203,207
11,124
(109,324)
105,007
22,122
(16,389)
At 31 March 2013
773,289
80,632
(210,848)
(109,324)
533,749
137,394
(25,096)
(16,389)
518,918
110,740
629,658
At 31 March 2012
496,769
42,612
539,381
At 31 March 2013
394,970
62,137
457,107
Accumulated depreciation
Net book value
21
Note
Balance at 1 April
Redemption of bonds upon maturity
Accretion of discount on bonds
Balance at 31 March
20
2013
At amortised
cost
2012
At amortised
cost
12,924,174
(8,000,000)
75,826
5,000,000
12,870,740
53,434
12,924,174
The maturity period of the held-to-maturity
financial assets is as follows:
5,000,000
5
5
Maturing within 12 months
Maturing over 12 months
7,998,932
4,925,242
12,924,174
5,000,000
The held-to-maturity financial assets are denominated in Singapore dollars. Held-to-maturity financial
assets is made up of government bonds with fixed interest rate is 2.159% (2012: 2.159% to 4.080%)
per annum, and maturing on 19 June 2013. The effective interest rate is 1.2% (2012: 3.15% to
3.66%) per annum.
Financial ass ets at fair value through profit or loss
The Town Council's financial assets at fair value through profit or loss are administered by a fund
manager. The fund manager is given discretionary powers within certain guidelines to invest the
funds. The term of the fund management agreement will expire on 1 March 2015.
The fund manager will be entitled to charge basic management fees accrue monthly and bill
quarterly. Additionally, the fund managers will be entitled to receive performance fees for the
excess, before income tax, of the market value of the fund over the specified performance
benchmark at the end of the management term or termination date if earlier.
Cash at banks and fixed deposits included in funds with fund manager cannot be freely withdrawn
for use by the Town Council until the expiry of the fund management agreement.
At the end of the reporting period, the funds with fund manager comprise the following:
Note
Financial asset at fair value through profit or loss:
Debt securities in listed corporations, government
and other public debentures
Accrued interest
Cash at banks and fixed deposits
13
14
2013
At fair value
28,420,797
28,903,505
152,648
1,728,141
30,301,586
157,740
860,514
29,921,759
The funds with fund manager are denominated in Singapore dollars.
22
2012
At fair value
Conservancy and service fees receivables
Note
Conservancy and service fees receivables
Less: Allowance for impairment
Taken up in:
Accumulated surplus
Sinking Funds
5
2013
2012
1,772,594
(636,504)
1,136,090
1,630,835
(538,957)
1,091,878
760,277
375,813
1,136,090
796,601
295,277
1,091,878
Conservancy and service fees receivables are denominated in Singapore dollars.
The Town Council generally extends 30-day credit term to its conservancy and service fees
customers.
The movements in allowance for impairment in respect of conservancy and service fees
receivables during the year are as follows:
Balance at 1 April
Transfer out due to Boundary Change
Impairment loss recognised
Balance at 31 March
2013
2012
538,957
679,736
(153,554)
12,775
538,957
97,547
636,504
Other receivables, deposits and prepayments
Note
Grant receivables
- Citizens' Consultative Committees
- GST Subvention
- Service and Conservancy Charges
2013
5,757,397
457,151
6,214,548
Other receivables
- Accrued interest on funds with fund manager
- Interest on fixed deposits and government bonds
- Late payment penalty
- Less: allowance for impairment
- Claimable GST
- Recoverable from Housing & Development Board
- Recoverable from National Environment Agency
- Recoverable from contractors
11
22
Deposits
Prepayments
Amount recoverable from Sembawang Nee Soon
Town Council
Others
Taken up in:
Accumulated surplus
Sinking Funds
5
6
152,648
391,733
366,247
(235,198)
131,049
331,764
397,216
166,526
55,507
1,626,443
4,285,495
457,707
73,441
4,816,643
157,740
322,898
390,493
(351,341)
39,152
38,441
93,578
267,720
919,529
875,106
196,039
1,273,964
210,537
117,232
9,029,368
495,828
122,716
7,839,217
2,166,568
985,606
5,877,194
9,029,368
1,931,762
1,245,057
4,662,398
7,839,217
Other receivables, deposits and prepayments are denominated in Singapore dollars.
23
2012
13.Other receivables, deposits and prepayments (Continued)
The movements in allowance for impairment in respect of other receivables from penalty imposed
on customers for late payment of service and conservancy charges during the year is as follows:
2013
2012
351,341
(116,143)
235,198
262,089
89,252
351,341
2013
2012
14,368
7,905,926
1,728,141
9,648,435
116,961,082
126,609,517
16,500
22,055,763
860,514
22,932,777
92,391,124
115,323,901
14,188,969
114,327,786
(1,907,238)
126,609,517
10,157,861
106,729,149
(1,563,109)
115,323,901
Balance at 1 April
Impairment loss (reversed)/recognised
Balance at 31 March
14.
Cash and cash equivalents
Note
Cash on hand
Cash at bank
Cash and fixed deposits with fund managers
11
Fixed deposits
Taken up in:
Accumulated surplus
Sinking Funds
5
6
Cash and cash equivalents are denominated in Singapore dollars.
The interest rate for the fixed deposits ranges between 0.50 % and 1.35% (2012: 0.38% and 0.70%)
per annum, receivable one year in arrears. The effective interest rate is 0.69% (2012: 0.47%) per
annum.
A fixed deposit of $55,838 (2012: $55,810) is pledged to a bank to secure a performance guarantee
issued by the bank.
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:
Cash and cash equivalents as above
Less:
Cash at banks and fixed deposits managed by fund
managers
Fixed deposit pledged
Cash and cash equivalents per statement of cash flows
15.
2013
2012
126,609,517
115,323,901
(1,728,141)
(55,838)
124,825,538
(860,514)
(55,810)
114,407,577
2013
2012
Payables and accrued expenses
7,479,458
845,543
537,326
63,887
21,950
8,948,164
Accounts payable
Accrued expenses
Deposits received
Payable to Housing & Development Board
Others
Payables and accrued expenses are denominated in Singapore dollars.
24
3,721,922
1,014,352
493,567
42,471
15,960
5,288,272
Payables and accrued expenses (Continued)
Note
Taken up in:
Accumulated surplus
Sinking Funds
Town Improvement and Project Funds 5
6
2013
$
3,459,622
3,922,205
1,566,337
8,948,164
2012
$
2,847,889
1,077,667
1,362,716
5,288,272
Agency fees
These are fees received for routine maintenance of HDB's car parks in the GRC.
Other income
2013
13,903
230,559
325,957
10
28,054
61,637
142,402
2,209,351
Community hall rental
Late payment penalty
Liquidated damages
Removal of bulky household refuse
Sale of tender documents
Sundry fines
Sundry income
Temporary Occupation Licence ("TOL") charges
Use of common property
Use of void decks
Use of water and electricity
Others
145,885
64,510
306,384
8,176
3,536,828
2012
12,808
242,289
182,545
39,398
45,696
127,053
2,028,830
62,501
57,150
290,085
8,426
3,096,781
Managing agent's fees
The Town Council's management of its daily operations has been outsourced to a managing agent.
General and administrative expenditure
Note
Advertising, publicity and public relations
Bad debts recovered
Computer service
Loss on disposal of plant and equipment
Impairment loss recognised
Office rental and upkeep expenditure
Office supplies and stationery
Plant and equipment not capitalised
Property tax
Key management personnel compensation
- Town Councillors' allowances
- Executive Director's salary & related costs
Unclaimable input tax
Others
25
22
2013
2012
319,711
(47,882)
363,804
112,298
77,167
531,363
78,407
3,050
231,358
363,198
(862)
476,491
79,647
14,576
144,477
466,200
110,737
73,712
332,400
302,700
193,933
643,120
544,375
3,353,404
287,122
178,797
672,431
406,233
3,605,159
20.
Sinking funds income and expenditure
Income
Note
Accretion of discount on government bonds 10
Interest income from cash at banks
Interest income from government bonds
Other income
2013
2012
75,826
667,036
168,587
1,422
912,871
53,434
399,331
396,713
859
850,337
2013
2012
Expenditure
Note
Electrical rewiring
Fair value loss on financial assets at fair value
through profit or loss
General and administrative charges
Lifts overhaul/upgrading
Lift position display panel
Lift works (LSS)
Re-decoration and repairing
Re-roofing works
Replacement of ARD batteries
Replacement of booster pumps
Replacement of EBOP battery
Replacement of FRP/GRP sectional water tanks
Replacement of hoisting ropes
Replacement of Refuse Chute Flushing System
(RCFS)
Replacement of water pipes
Replacement of water pumps
Town Council Lift Upgrading Programme
Unclaimable input tax
21
4,854
(379,827)
(15,119)
13,636,163
197,979
25,758
7,635,264
1,131,281
20,724
129,859
27,615
468,203
22
91,520
184,338
308,327
(154,858)
295,683
23,607,764
68,448
254,500
420,368
(41,558)
307,506
18,921,159
Town Improvement and Project Funds expenditure
2013
559,639
4,371,182
4,930,821
Consultancy fees and architectural fees
Town improvement works
22.
921,818
1,277
10,030,233
152,868
86,402
6,643,720
520
75,057
2012
715,902
5,080,818
5,796,720
Goods and Services Tax ("GST")
Government grants received by the Town Council are considered non-taxable supplies. Therefore,
input tax claimable is based on a formula determined by the Inland Revenue Authority of
Singapore. The unclaimable portion is charged to the statement of comprehensive income during
the year.
26
23.Income tax
Note
Current tax expense
(Over) /Under-provision of tax in previous financial
years
Taken up in:
Accumulated surplus
Over-provision of tax in previous financial years
4
Sinking Funds
Under-provision of tax in previous financial years
5
2013
2012
467,117
522,349
(125,325)
341,792
34,271
556,620
260,653
(90,073)
170,580
321,973
(54,109)
267,864
206,463
(35,251)
171,212
341,792
200,376
88,380
288,756
556,620
The tax expense on income differs from the amount determined by applying the Singapore standard
rate of income tax due to the following:
2013
Interest income
Government grants and other income
Allowable expenses
Tax calculated at a tax rate of 17% (2012: 17%)
Tax remission of government grants under
section 92(2) of Singapore Income Tax Act
Tax effect of certain income taxed at
concessionary tax rate
2012
832,971
19,027,402
(180,641)
19,679,732
1,645,317
16,278,435
(215,389)
3,345,554
3,010,422
(2,954,854)
(2,419,621)
76,417
(125,325)
341,792
(68,452)
34,271
556,620
17,708,363
The Town Council enjoys a concessionary tax rate of 10% for the income earned on investment in
bonds.
As announced by the Minister for Finance Budget 2013, a corporate tax rebate of 30% shall be
granted for Year of Assessment ("YA") 2013 to 2015. The rebate is subject to a cap of $30,000 per
YA.
The movements in provision for income tax is as follows:
Note
1,139,321
Balance as at 1 April
Provision for income tax due to Boundary Change
Current financial year's income tax expense
Payments during the year
Balance as at 31 March
Taken up in: (Provision for income tax)
Accumulated surplus
Sinking funds
Balance at 31 March
5
27
2013
2012
467,117
(574,258)
(125,325)
906,855
1,115,610
42,714
522,349
(575,623)
34,271
1,139,321
526,878
379,977
906,855
721,204
418,117
1,139,321
111111111111018•11111111111111111111111111111011111111111111111•111111M1111111111,11111111
24.Government grants
(I)Government grants taken to the statement of comprehensive income during the year are as follows:
Payment from Citizens'
Service and Conservancy
GST Subvention
Charges
Grant
Consultative
Committees
Total
Grant
2013 2012
2013 2012
M13 2012
20132012
Note
Government grants
received/receivable
Less:
Transfer to Sinking Funds
Transfer to Town Improvement
and Projects Funds
417,477,082 14,233,066
4, 5(3,718,583) (3,482,353)
4, 6
(5,774,797) (3,252,502)
7,983,702 7,498,211
9,881,3489,271,4395,774,7973,252,5021,820,937
(3,108,518)(2,910,895)
6,772,830
Total grants received/receivable at 1 April
Grants received/receivable during the year
Total grants received/receivable at 31 March
249,477,440
17,477,082
266,954,522
(571,458)
(5,774,797)(3,252,502)
6,360,544
(ii)The total amounts of grants received (including grants received in advance) since the formation of the Town Council is as follows:
2013
(610,065)
1,709,125
2012
235,244,374
14,233,066
249,477,440
1,210,872
1,137,667
Inter-fund transfers
Under Section 33(9) of the Town Councils Act, the Town Council may transfer an amount not
exceeding the surplus, from any of its funds constituting the Town Councils' Fund, to a fund which
is in deficit.
Capital commitments
Capital expenditure approved by the Town Council but not provided for in the financial statements
is as follows:
2013
2012
40,145,063 10,064,138
34,160,149
36,356,449
46,420,587
74,305,213
Amount approved and contracted for
Amount approved but not contracted for*
* The Town Council had entered into an agreement with NEC Asia Pacific Pte Ltd for the supply,
delivery, design, development, installation, configuration, testing, commissioning, warranty of a
fully operational integrated Town Council Management System with operation support and
maintenance for the period 1 May 2013 to 30 April 2020. The total contract sum amounts to
$1,651,295.
27.Operating lease commitments
At the end of the reporting period, the Town Council was committed to making the following rental
payments in respect of non-cancellable operating leases of office premises with an original term of
more than one year:
Not later than one year
Later than one year and not later than five years
2013
2012
521,836
506,436
912,027
1,433,863
245,863
752,299
The leases on the Town Council's office premises from the Housing & Development Board on
which rentals are payable will expire on June 2014, December 2014 and April 2016, subject to
option to renew for another three years. Rental terms are renegotiated on renewal.
29
28.Financial instruments and financial risks
The Town Council's financial instruments comprise certain cash and cash equivalents, and various
items including investment in financial assets, conservancy and service fees receivable and other
receivables, accrued expenses and other payables that arise from its operations.
The main risks arising from the financial instruments are credit risk and market risk. The Town
Council is not exposed to foreign exchange risk. There is no significant liquidity risk as sufficient
cash is maintained. The Town Council's reviews on the policies for managing these risks are
disclosed below.
Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a
counterparty default on its obligations. Financial assets that potentially subject to concentrations of
credit risk consist principally of cash balances with banks, cash equivalents and receivables. The
maximum exposure to credit risk is the fair value of the financial instruments at the end of the
financial year. Credit risk on cash balances with banks is limited because these banks are of
acceptable credit ratings.
As disclosed in Note 13, cash and cash equivalents balances represent amounts with a less than
12-month maturity.
For receivables, an ongoing credit evaluation is performed on the financial conditions of the
receivables and losses on impairment are recognised in the statement of comprehensive income.
The allowance for impairment of conservancy and service fees receivable totalling $636,504
(2012: $538,957) is determined at the reporting date (Note 12).
There is no concentration of credit risk with respect to conservancy and service fees receivable, as
the Town Council has a large number of household owners.
There are no other material class of financial assets that are past due except for the conservancy
and service fees receivables as disclosed below:
Note
2013
12
416,428
314,446
214,154
298,935
528,631
1,772,694
(636,504)
1,136,090
Not past due
Past due 0 to 90 days
Past due over 360 days
Less: Allowance for impairment
$
2012
$
310,876
243,085
341,171
306,579
429,124
1,630,835
(538,957)
1,091,878
Conservancy and service fees receivables amounting to $719,662 (2012: $781,002) are past due
at the reporting date but not impaired, as the management believes that it will be collectible in the
foreseeable future as a result of recovery efforts and historical experience.
30
28.Financial instruments and financial risks (Continued)
Market risk
Foreiqn currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in
foreign exchange rates. Currency risk arises when transactions are denominated in foreign
currencies.
The Town Council has no exposure to foreign currency risk as its business activities are carried
out in Singapore dollars, which is its functional currency.
Interest rate risk
The Town Council's exposure interest rate risk relates primarily to interest-earning fixed deposits
with financial institutions and investments in government bonds. The Town Council's surplus funds
are placed with reputable financial institutions or invested in Singapore government bonds.
Equity price risk
Equity price risk is applicable to investments in equity shares or similar instruments. As equities
are invested through fund managers under guaranteed principal schemes, the exposure to market
risk is minimal.
Liquidity risk
Liquidity risk is the risk that the Town Council will encounter difficulty in meeting financial
obligations due to shortage of funds. The Town Council manages the liquidity risk by maintaining
sufficient cash, internally generated cash flows, as well as on basis of expected payment dates of
the financial liabilities. Besides, the Town Council's operations are partially supported by various
grants from the government and the Town Council is satisfied that funds for operations are
available as and when required.
The contractual undiscounted cash flows of financial assets and financial liabilities due within 12
months approximate their carrying amounts as the impact of discounting is not significant.
The average credit period taken to settle these payables is about 30 - 90 days (2012: 30 - 90
days).
It is expected that all the liabilities will be paid when due. The Town Council expects to meet its
cash commitments with cash inflows from operating activities and government grants.
Financial instruments by category
The carrying amounts of the different categories of financial instruments are as follows:
2013
Financial assets at fair value through profit or loss
Loan and receivables
Less: financial liabilities
31
5,000,000
28,420,797
136,578,936
(9,893,781)
160,105,952
2012
12,924,174
28,903,505
124,044,459
(6,129,559)
159,742,579
29.Fair value of financial assets and liabilities
The carrying amounts of short-term financial assets and liabilities approximate their respective fair
values due to the relatively short term nature of these financial instruments. The fair value of
different classes of financial assets and liabilities are disclosed in the respective notes to the
financial statements. The fair values of financial assets with standard terms and conditions and
traded on active liquid markets are determined with reference to level 1 of the fair value hierarchy
quoted market price.
The table below analyses financial instruments carried at fair value. The different levels have been
defined as follows:quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e., as price) or indirectly (i.e., derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable
inputs) Level 3).
Level 1
2013
Assets
Financial assets at fair value
2012
Assets
Financial assets at fair value
30.
Level 2 Level 3Total
5,000,000
5,000,000
28,420,797
33,420,797
-28,420,797
-33,420,797
12,924.174
12,924,174
28,903,505
41,827,679
28,903,505
41,827,679
Funds management
The Town Council's objectives when managing funds are:
to safeguard the Town Council's ability to continue as going concern;
to provide resources to sustain future development; and
to provide funds for the purpose of strengthening the Town Council's risk management
capability.
The Town Council actively and regularly reviews and manages its funding structure to ensure
optimal funding structure, taking into consideration the future funding requirements, projected
operating cash flows, projected capital expenditures and projected strategic investment
opportunities.
There were no changes in the Town Council's approach to funds management during the year.
The Town Council is not subject to externally imposed capital requirements.
The Town Council's total funds amounted to $159,852,243 (2012: $159,353,176).
32

ang mo kio town council - Parliament Of Singapore

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