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Bishan - Toa Payoh Town Council • Annual Report 2005-2006

ownership

pride

community

Toa Payoh OfficeBlock 125A #01-134Lorong 2 Toa PayohSingapore 311125Tel 6259 6700

Bishan OfficeBlock 197 #01-585Bishan Street 13Singapore 570197Tel 6259 6700

Website www.btptc.org.sgEmail [email protected]

Our Home, Our EstateAs homeowners, we put in the care and attention to make our home pristine and inthe best livable condition. The thrust for this Annual Report is to take home-ownershipone step further for residents to identify the estate as their home. We have selected

three images to symbolise the traits of Ownership, Pride and Community.

A Key refers to OWNERSHIP and this is where we hope to see residentstreat the estate just like their homes.

A Heart depicts the love for our home. We take PRIDE in our home andsuch emotive feelings have to spillover into the estate for residents toaccept the extended home.

The shoes reflect the COMMUNITY from all walks of life. It requiresthe collective effort of residents to appreciate the estate and makeit their home.

Only when these three traits have been internalised and accepted,then Our Home is Our Estate.

contentsBishan-Toa Payoh Town Council Fifth Term of Office 3 • Corporate Information 6 • Chairman’s Review 7 •

Financial Statements 12

contentsBishan-Toa Payoh Town Council Fifth Term of Office 3 • Corporate Information 6 • Chairman’s Review 7 •

Financial Statements 12

“”

Our mission is to provide a clean, green, well maintainedand healthy environment for the residents,

through close co-operation with the residents, grassroots organisationsand related government agencies.

THOMSON TOA PAYOH CENTRAL TOA PAYOH EAST

BISHAN EAST BISHAN-TOA PAYOH NORTH

Mrs Josephine TeoMP for Bishan-Toa Payoh GRC

Vice-Chairman of Bishan-ToaPayoh Town Council

Advisor to Toa Payoh EastGrassroots Organisations

Mr Hri KumarMP for Bishan-Toa Payoh GRC

Vice-Chairman of Bishan-ToaPayoh Town Council

Advisor to Thomson GrassrootsOrganisations

Mr Zainudin NordinMayor for Central SingaporeDistrict

MP for Bishan-Toa Payoh GRC

Chairman of Bishan-Toa PayohTown Council

Advisor to Bishan-Toa Payoh NorthGrassroots Organisations

Dr Ng Eng HenManpower Minister and SecondMinister for Defence


Elected Member of Bishan-ToaPayoh Town Council

Advisor to Toa Payoh CentralGrassroots Organisations

Mr Wong Kan SengDeputy Prime Minister & Ministerfor Home Affairs


Advisor to Bishan-Toa Payoh TownCouncil

Advisor to Bishan East GrassrootsOrganisations

Mr Foo See LianChairman

Mr Cheng Wai KeungVice-Chairman

Mr Er Kwong WahMember

Mr Teh Hee SeangMember

Mr Ling Ming ChuanCEO / Secretary

Mr Yee Fook HongMember

Bishan-Toa Payoh Town Council Annual Report 2005/2006 03

establishmentcommitteeAdvisor: Mr Zainudin Nordin

advisors

04 Bishan-Toa Payoh Town Council Annual Report 2005/2006

finance &administrationcommitteeAdvisor: Dr Ng Eng Hen

Co-Opted Members

Mr Abdul Rahman Mohamed

Mr Amar Singh s/o Soun Singh

Mr Lau Pub Taai

Ms Caroline Lee Sook Chin

Mr Leong Fook Wing

Mr Benny Soh Chee Ling

Mdm Helen Wee Lian Ngoh

Mr Lim Joo LyeMember

Mr Tan Kee KhoonMember

Mr Tin Beng ChanMember

Mr Sng Jin PohMember

Mr Yeo Hiang MengMember

Mr Poh Puay EngVice-Chairman

Mr Roy ChengSiew CherngMember

Mr Chia Pen ChuenMember

Mr Lai Kah SengMember

Mr Larry Lau Hooi SeeMember

Mr Yee Fook HongChairman

Mr Sitoh Yih Pin2nd Advisor

Mr Teh Hee SeangChairman

Mr Gregory TangWee ThiangVice-Chairman

Ms Chua Geok LanMember

Mr Ling Tuck MunMember

Ms Catherine LeeMember

Mr Mohd Yusof BinAbdullahMember

Mr Tan Kia SengMember

Ms Tay Mok LanMember

Ms Patricia TohBee LanMember

Mr Wee Jit SunMember

Co-Opted Members

Mdm Doris Chan

Mr Chng Chee Beow

Ms Lee Ker Hwa

Mr Poo Chee Kuen

Mr RT Xavier Samy

Mr Wong Thian Hock

Mr Willie Wun Chung Toh

tenders & contracts

committeeAdvisor: Mrs Josephine Teo


Dr Foo Yung KuanVice-Chairman

Mr Azman Bin YahayaMember

Mr David ChooYong KeeMember

Mr Lau Cheng NamMember

Mr Leong Chong MengMember

Mr Cheng Wai KeungChairman

Mr Jason LeongWai HoongMember

Mr Lawrence LimTau JeowMember

Mr Henry NgBoon HweeMember

Ms Frances TangPo TimMember

Mr Yeo Suay TeeMember

Mr Cheong Chee OnnVice-Chairman

Mr Roger Chia Ah SahMember

Mr Khoo Kay ChaiMember

Mr Anthony KiongBeng HoeMember

Mr Texas Loh Kia HowMember

Mr Er Kwong WahChairman

Mr Michael LowHock KimMember

Mr Ng Wee LoonMember

Mr RamadossRavindranMember

Ms Sophia SuHuah TeeMember

Mr Raymond TeohMember

Ms Violet WongChoh SangMember

Co-Opted Members

Mr Chong Ngee

Mr Lau Juay Hor

Mr Mazlan Bin Jalil

Ms Paridah Bte Yusop

Mr Sabaratnam Paul

Mr Tey Chui Giong

Co-Opted Members

Mr Ahmad Alif Lim

Mr Chua Seng Chye

Mr David Mok Thye Hian

Mr Poon Wai Mun

Ms Stracey @ Anbukkarasi d/o Sakadevan Naidu

Mr Roger Wong Tian Hock

environment &developmentcommitteeAdvisor: Mr Hri Kumar

community relationscommitteeAdvisor: Mr Zainudin Nordin


corporate information

Bishan-Toa Payoh Town Council LogoOur logo depicts both the distinctive architecture of Bishan’s Housing Development Board(HDB) flats and the Viewing Tower of Toa Payoh Garden. The blue and green coloursrepresent a fresh, clean and healthy environment within the community.

HDB Blocks Managed by Town CouncilNumber of Units in Bishan-Toa Payoh Town 51,544*Number of Blocks in Bishan-Toa Payoh Town 518*Number of Residents in Bishan-Toa Payoh Town 206,000**(about 4 persons per household)

* As at September 2006** Figures are approximated

Contact / Operating HoursToa Payoh OfficeBlock 125A #01-134 Lorong 2 Toa PayohSingapore 311125Tel: 6259 6700 Fax: 6259 9626

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

Websitewww.btptc.org.sg

[email protected]

Operating Hours8.00am - 6.00pm (Monday to Friday)8.00am - 12.30pm (Saturday)


chairman’s reviewhow much do you value your home? Now, extend the geographic boundary from your front door to include the estate, andask yourself – how much do you value your estate? Since your home is part of the estate, then, the natural progression is totreat the estate like the way you take care of your home.

A change in residents’ mindset is needed to imbue in them ‘a sense of pride and ownership’ of the estate and embrace the placelike it is their home. This fundamental change is crucial to the way we view the estate and how we, as a community come togetherfor a common good.

A recent report in the country’s leading daily has highlighted the increasing litter in our estates. Despite the many years of publiceducation and numerous awareness programmes, the littering problem seemed to have gotten worse. As a result, the TownCouncil’s cleaners would then have to spend more time clearing the litter and mess caused by such people. If residents couldband together and tackle the litter problem, then our cleaners would have more time to perform other conservancy and maintenanceduties.

Picture this ideal scenario – residents work together to promote estate cleanliness and this results in fewer litter, thus lessconservancy work is needed there. The Town Council could return the conservancy savings to residents – a reward for our civic-mindedness.

There is everything to gain when you treat the common areas outside your unit as your home as well. You have a cleaner livingenvironment; residents become better neighbours when they work together towards a common goal, and this results in a happyand harmonious community.

There is everything to gain when you treat the common areas outside yourunit as your home as well. You have a cleaner living environment; residentsbecome better neighbours when they work together towards a common goal,

and this results in a happy and harmonious community.

“ “


new initiativesas the residents begin to think of the estate as their home, the Town Council will continue to improve its services to them.Apart from the continuous upgrading and provision of relevant facilities, it is imperative that the Town Council knows what theresidents want and delivers the new services to benefit them. Our recent initiatives have been the Online Basic Maintenance Video,a newly revised Town Map and the Town Council Service Improvement Movement.

The Basic Maintenance Workshop, introduced two years ago as demonstration sessions during community events, has now goneonline. We have produced four video clips and are available on the Town Council’s web-site – www.btptc.org.sg. By harnessingthe power of technology, we have used the Internet to reach more residents to teach them simple home maintenance skills byviewing simple instructional videos on our web-site.

Some three years ago, we produced a comprehensive town map that was distributed to every household. Since our estate continuesto develop and is a dynamic town, we have updated the map to reflect the present situation. Residents can now find their wayaround Bishan-Toa Payoh Town by using their user-friendly foldable Town Map. Produced by the Town Council and given to everyHDB household in our GRC, the newly updated Town Map has open up new places for residents and their families to explore.

For the Town Council to provide better customer service and meet residents’ expectations, we have instituted a Service ImprovementMovement within the organisation and impressed upon all employees to embrace the pro-service culture. We have further streamlinedour communication process for residents to give their feedback and to be updated of the actions taken by the Town Council.

The Basic MaintenanceWorkshop, introduced two yearsago as demonstration sessionsduring community events, has

now gone online. We haveproduced four video clips and

are available on the TownCouncil’s web-site –www.btptc.org.sg.

“

“

service expectationshow does the Town Council continue to provide the relevant facilities and services to its residents? By finding out what theywant and delivering to them. However, there are resources limitations, technical and physical constraints that have to befulfilled. Thus, it is our duty to communicate so that residents appreciate why there would be limited number of projects everyfinancial year.

Providing good customer service is not only about delivering the goods and services. Sometimes, we are unable to meet someof these expectations and this is where we need to explain to the residents and by engaging them, this is also giving good service.

To give good service, we also need good customers. Just like it takes two to tango, good customer service requires a good serviceprovider and an appreciative customer. A customer that comes across as rude, demanding and shouts in your face is every serviceprovider’s nightmare. But, as a service provider, we can still be professional about it and try to understand the customer’s needs.That said, it takes a great deal of self control not to turn up the heat.

The Town Council staff has to deal with a wide range of expectations every day. We receive an average of 100 feedbacks a day,mostly from telephone calls and the email. The service standard we expect from our staff is to reply to the residents’ feedbackwithin a stipulated time period. As the Town Council continues to explore new avenues to improve its services to residents, likewise,we would expect residents to be patient and understanding in their correspondences and dealings with our people. It is throughsuch a partnership that we have a win-win situation and that is good news for all concerned.

As the Town Council continues toexplore new avenues to improve itsservices to residents, likewise, wewould expect residents to be patient

and understanding in theircorrespondences and dealings withour people. It is through such a

partnership that we have a win-winsituation and that is good news for

all concerned.

“

“


improvements to the estatemost of the residential blocks in Toa Payoh have already gone through the Main Upgrading Programme (MUP). Another 12blocks in Toa Payoh Central & East have completed the Main Upgrading Programme (MUP).

For those blocks that are not due for MUP, the Interim Upgrading Programme (IUP) has addressed the upgrading needs of someaging blocks. Over in Bishan East, 70 blocks have been identified for the IUP and many have either been completed recently orare already underway.

The most recent and very popular Lift Upgrading Programme (LUP) is underway at 104 blocks throughout the GRC. The TownCouncil has helped to speed up the LUP requests of its residents by using the Town Improvement Project Fund to complementMND’s national project.

As for non-residential blocks, the Block 74 market & food centre at Toa Payoh Central has been refurbished under the HawkerUpgrading Programme (HUP). This has revitalised the neighbourhood and has attracted more people to shop and socialise.

Most of the residential blocks in ToaPayoh have already gone through theMain Upgrading Programme (MUP).

Another 12 blocks in Toa Payoh Central& East have completed the Main

Upgrading Programme (MUP).

“

“



how your s&cc was spentlast year, we improved your estate to the tune of $15.4 million. We invested $3.4 million on 68 town improvement projectslike elderly fitness corners, children’s playgrounds, resident & study corners, fitness and sports courts, pavilions, numerous parkbenches & shelters, barbecue pits, a jogging track, covered walkways and car porches.

Another $12.0 million went to cyclical works expenditure for repairs and redecoration, replacement of lift parts, FRP water-tanks,booster pumps, and re-wiring to 37 blocks to keep them in good living and working condition.

From the $15.4 million that the Town Council has spent, $2.4 million came from the active support of the GRC’s Citizens’ ConsultativeCommittees (CCCs), that claimed through the CIPC grant for the improvement projects. The remainder came from our TownImprovement Project Fund (TIPF) and Sinking Fund, where we accumulated our surplus from the past years. The Town Councilreinvests the surplus back into the estate through physical upgrade, and this has increased the value of the homes.

A part of the net operating surplus of $4.7 million, after taking into account government grants for financial year 05/06, wouldbe returned to residents through the various improvements programmes. The prudent approach adopted by the Town Council hasalso steadily built up the Sinking Fund reserve that now stands at $114.2 million.

Thank You Leong Horn Kee & Davinder SinghThis year, in May 2006, we bid farewell to two long-serving and outstanding individuals. On behalf of the Town Council’sAdvisors, Councillors, Co-Opted Members and Staff, I take this opportunity to thank our former Advisors Mr Leong Horn Keeand Mr Davinder Singh for their many years of service to Bishan-Toa Payoh Town Council.

I would like to acknowledge their commitment and dedication to develop Bishan-Toa Payoh Town into the premier real estatein Singapore. They have also instituted policies for the Town Council’s operations and this has resulted in a well-managedorganisation that continues to provide new and better faci l i t ies and ser vices to the residents.

We have indeed benefited from their many years of contributions and the new generation of MPs like Hri Kumar, JosephineTeo and I have a hard act to follow. Finally, I wish them good health and success.

Zainudin NordinChairman, Bishan-Toa Payoh Town Council


Bishan-Toa Payoh Town CouncilEstablished under the Town Councils Act, Cap. 329A

Audited Financial Statements for the Financial Year Ended 31 March 2006

contentsAuditors' report 13 • Balance sheet 14 • Statement of income and expenditure 15 •

Statement of changes in funds 16 • Cash flow statement 17 • Notes to the financial statements 18


We have audited the accompanying financial statements of Bishan-Toa Payoh Town Council (the “Town Council”) as set out on pages 14 to 36 for the

financial year ended 31 March 2006. These financial statements are the responsibility of the Town Council. Our responsibility is to express an

opinion on these financial statements based on our audit. The financial statements for the year ended 31 March 2005 were audited by another

auditor whose report dated 28 September 2005 expressed an unqualified opinion on those financial statements.

We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,

evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and

significant estimates made by the directors, as well as evaluating the overall financial statement presentation. We believe that our audit provides

a reasonable basis for our opinion.

In our opinion,

(a) the financial statements are properly drawn up in accordance with the provisions of the Town Councils Act, Cap. 329A (the “Act”) and

Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Town Council as at 31 March 2006 and

the results, changes in funds and cash flows of the Town Council for the financial year ended on that date; and

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

of the Act.

During the course of our audit, nothing came to our notice that caused us to believe that the receipt, expenditure and investment of monies and the

acquisition and disposal of assets by the Town Council during the financial year have not been made in accordance with the provisions of the Act.

RSM Chio Lim

Certified Public Accountants

Singapore

23 June 2006

Auditors’ Report toBishan-Toa Payoh Town Council


Bishan-Toa Payoh Town Council

Balance Sheet as at 31 March 2006

Note 2006 2005$ $

Non-current assetsPlant and equipment 3 45,345 106,030

45,345 106,030Current assetsInvestments in financial assets 4 90,692,696 77,800,796Conservancy and service debtors 5 1,602,673 1,389,024Other receivable 706,970 148,704Interest receivable 383,440 196,458Grants receivable 512,804 82,407Fixed deposits with financial institutions 6 44,477,408 46,506,035Bank and cash balances 6 6,759,388 3,862,492

145,135,379 129,985,916Current liabilitiesGrants received in advance 107,784 2,196Conservancy and service fees received in advance 352,947 362,770Payables and accrued expenses 7 4,659,462 4,364,145Current tax payable 771,045 627,830

5,891,238 5,356,941

Net current assets 139,244,141 124,628,975

139,289,486 124,735,005

Town Council FundsResidential property fundsAccumulated surplus 8 4,564,869 2,234,727Sinking funds 9 95,518,292 87,189,453Town improvement and project funds 10 13,917,626 13,144,738

114,000,787 102,568,918Commercial property fundsAccumulated surplus 8 1,582,818 1,172,082Sinking funds 9 18,701,351 17,241,208Town improvement and project funds 10 3,576,064 3,125,206

23,860,233 21,538,496Carpark fundsAccumulated surplus 8 509,427 572,809Interim upgrading programme fund 11 943,967 23,328Estate upgrading programme fund 12 (24,928) 31,454

139,289,486 124,735,005

Mr Zainudin Nordin Mr Ling Ming ChuanChairman Secretary23 June 2006

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



Statement of Income and Expenditure for the financial year ended 31 March 2006

Note 2006 2005$ $

Operating incomeConservancy and service fees 8 31,001,865 29,944,785Less : Operating transfer to sinking funds 8, 9 (10,378,699) (10,007,833)

20,623,166 19,936,952Agency fees 1,630,992 1,566,573Other income 1,442,889 1,311,506

23,697,047 22,815,031Less : Operating expenditureCleaning works 5,111,379 4,755,652Lift maintenance 2,830,407 2,951,342Other works and maintenance 3,615,473 3,716,865Water and electricity 5,980,873 5,228,716General and administrative expenditure 15 5,888,022 5,869,354

(23,426,154) (22,521,929)

Operating surplus 270,893 293,102Add : Non-operating incomeInterest income 209,610 96,656Gain on disposal of plant and equipment - 1,200

209,610 97,856

Surplus before taxation and government grants 480,503 390,958Taxation 14 (395,533) (31,424)

Surplus before government grants 84,970 359,534

Government grants 8, 13 9,105,242 7,182,692Less : Transfer to- sinking funds (2,097,875) (2,001,927)- town improvement and project funds (2,414,841) (762,882)

4,592,526 4,417,883

Surplus for the financial year 4,677,496 4,777,417Add : Accumulated surplus at 1 April 8 3,979,618 3,702,201

8,657,114 8,479,618Less : Appropriation to town improvement and project fund 8 (2,000,000) (4,500,000)

Accumulated surplus at 31 March 8 6,657,114 3,979,618

Mr Zainudin Nordin Mr Ling Ming ChuanChairman Secretary23 June 2006




Statement of Changes in Funds for the financial year ended 31 March 2006

Interim EstateResidential Commercial Car park upgrading upgrading

property fund property funds funds project project Total$ $ $ $ $ $

Balance at 31 March 2004 91,603,628 19,566,769 506,856 184,929 17,205 111,879,387

Surplus/(deficit) for the 10,965,290 1,971,727 65,953 (161,601) 14,249 12,855,618 financial year *

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

Effects of adopting FRS 39 2,731,782 250,513 – – – 2,982,295 (Note 21)

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

Surplus/(deficit) for the 8,700,087 2,071,224 (63,382) 920,639 (56,382) 11,572,186 financial year *

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

Notes 2006 2005$ $

* Accumulated surplus 8 4,677,496 4,777,417Sinking funds 9 6,806,687 9,033,500Town improvement and project funds 10 (776,254) (807,947)Interim upgrading programme fund 11 920,639 (161,601)Estate upgrading programme fund 12 (56,382) 14,249

11,572,186 12,855,618



Note 2006 2005$ $

Cash flow from operating activities

Surplus before taxation and government grants 8 480,503 390,958Adjustments for : Depreciation of plant and equipment 3 60,685 186,113 Interest income (209,610) (96,656) Gain on disposals of plant and equipment - (1,200)

Operating surplus before working capital changes 331,578 479,215

(Increase)/Decrease in debtors (4,302,435) 352,957Increase in creditors 483,619 45,350

Cash provided by/(used in) operations (3,487,238) 877,522

Income tax paid (482,032) (651,489)(Decrease)/Increase in sinking funds (1,600,157) 2,285,795Decrease in town improvement and project funds (3,158,262) (1,525,937)Payment of expenses for interim upgrading project 11 (2,679,291) (1,641,417)Payment of expenses for Estate upgrading project 12 (56,382) (481,852)

Net cash flow used in operating activities (11,463,362) (1,137,378)

Cash flows from investing activities

Proceeds from disposal of plant and equipment - 1,200Purchase of plant and equipment 3 - (40,466)Investments - 4,259,835Funds with fund managers 4 (4,198,513) (5,586,371)Investment and interest income received 4,229,992 5,097,128

Net cash flow provided by investing activities 31,479 3,731,326

Cash flows from financing activities

Government funds received from interim upgrading project 11 3,599,930 1,479,816Government funds received from estate upgrading project 12 - 496,101Government grants received 13 8,700,222 7,138,043

Net cash flow provided by financing activities 12,300,152 9,113,960

Net increase in cash and cash equivalents 868,269 11,707,908

Cash and cash equivalents at the beginning of financial year 50,368,527 38,660,619

Cash and cash equivalents at the end of financial year 6 51,236,796 50,368,527



Cash flow statement for the financial year ended 31 March 2006



Notes to the Financial Statements 31 March 2006

1. General

As a result of the redrawing of the electoral boundaries, the Toa Payoh Town Council (“Town Council”) which was formed on 2 September 1989

was dissolved under the Town Councils (Dissolution of Various Town Council) Order 1997 on 12 January 1997. With effect from 13 January

1997, the assets and liabilities of the dissolved Town Council were transferred to the Bishan-Toa Payoh Town Council. This new Town Council

also includes a proportion of the assets and liabilities over from the dissolved Bishan Serangoon Town Council.

Bishan-Toa Payoh Town Council was thus formed on 13 January 1997 under the Town Councils Act (Chapter 329A). The functions of the Town

Council are to control, manage, maintain and improve the common property of residential and other commercial property in the housing

estates of the Housing and Development Board (“HDB”) within the Town. The Town consists of the Bishan-Toa Payoh Group Representation

Constituency.

The Town Council commenced its functions on 13 January 1997 and its head office is situated at:

Blk 125A Lorong 2

Toa Payoh #01-134

Singapore 311125

The Town Council had 75 (2005 : 73) employees as at 31 March 2006.

2. Summary of significant accounting policies

(a) Accounting convention

The financial statements are prepared under the historical cost convention, modified to include the revaluation of certain financial assets

and financial liabilities and available-for-sale investments as disclosed where appropriate in these financial statements.

(b) Basis of preparation

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make

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

at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results

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

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

ment’s most difficult, subjective or complex judgements, or areas where assumptions and estimates are significant to the financial

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

(c) Funds

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

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




Residential property

Commercial property

Carparks are managed by the Town Council for the HDB on an agency basis.

These funds together with the Sinking Funds and Town Improvement and Project Funds form the Town Council Funds.

All monies received by the Town Council are paid into and related expenditures are met out of the appropriate funds set up for each

property type managed.

Assets and liabilities of the various funds of the Town Council including the Interim Upgrading Programme Fund and Estate Upgrading

Programme Fund are pooled in the Balance Sheet.

Sinking FundsIn accordance with Section 33(4) of the Town Councils Act, separate Sinking Funds are established for the improvement to, management

and maintenance of residential property and commercial property. These Sinking Funds are maintained as part of the Town Councils

Funds.

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

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

The minimum amount to be paid into the Sinking Funds are as follows:

(i) 1-room to 3-room 30% of conservancy and service fees and grants-in-aid

(ii) 4-room 35% of conservancy and service fees and grants-in-aid

(iii) 5-room, Executive, HUDC and Multi-generation 35% of conservancy and service fees

(iv) Shop with living accommodation 35% of conservancy and service fees

(v) Commercial property 35% of conservancy and service fees

These minimum contributions are treated as operating transfers and netted off against the conservancy and service fees and govern-

ment grants in the Income and Expenditure Statement.

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

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

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

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

improvement and development works in the Town.




The funds are set up by transfer from the Accumulated Surplus based on specific projects to be carried out. In addition, the Town Council

receives payment from the Citizens’ Consultative Committees for approved projects.

Interim Upgrading Programme FundThe Interim Upgrading Programme (“IUP”) is estate improvement programmes to upgrade the common areas and physical environment

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

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

and the pegged expenditure to its Income and Expenditure Statement.

Estate Upgrading Programme FundThe Estate Upgrading Programme (“EUP”) is enhancement work carried out on the public land and the facilities within the estates. This

programme is fully funded by the government and the grant provided is computed with reference to the number of residential units in the

estate.

Miscellaneous EUP expenditure is pegged at 11.11% of the EUP fund and the Town Council may transfer the difference between the

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

(d) Allocation of general overheads

Expenditure not relating specifically to any property type managed, for example, administrative overheads, tree planting, pruning etc is

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

Property Type Equivalent Dwelling Units(s)1 Residential Property Unit 1

1 Commercial Property Unit 2

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

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

(e) Government grants

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

Consultative Committee.

Government grants are accounted for on accrual basis. Grants to meet the current financial year’s operating expenditure are taken to

the Income and Expenditure Statement.

(f) Plant and equipment

Depreciation is provided on a straight-line basis to allocate the gross carrying amounts less their residual values over their estimated

useful lives of each part of an item of property, plant and equipment. The annual rates of depreciation are as follows:




Furniture, fixtures and fittings - 20%

Office equipment - 33.33%

Data processing equipment/software - 33.33%

Motor vehicles - 20%

An asset is depreciated when it is available for use until it is derecognised even if during that period the item is idle. Fully depreciated

assets still in use are retained in the financial statements.

Property, plant and equipment are carried at cost less any accumulated depreciation and any accumulated impairment losses. The

residual value and the useful life of an asset is reviewed at least at each financial year-end and, if expectations differ from previous

estimates, the changes are accounted for as a change in an accounting estimate, and the depreciation charge for the current and future

periods are adjusted. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the

difference between the net disposal proceeds, if any, and the carrying amount of the item and is recognised in the income statement.

(g) Investments in financial assets

Investment in financial assets are Funds with Fund Managers which comprise mainly of equities, bonds and cash and fixed bank

deposits.

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

value through profit or loss at inception. They are initially measured at fair value plus directly attributable transaction costs and are

classified as current assets. These are stated at fair value using the portfolio basis. A gain or loss on remeasuring financial assets to

fair value (other than those relating to hedges) is recognised in the income statement. The transactions are recorded at the trade date

method.

(h) Conservancy and service debtors

After initial recognition at fair value, conservancy and service debtors are measured at amortised cost using the effective interest

method but short-duration receivables with no stated interest rate are normally measured at original invoice amount unless the effect of

imputing interest would be significant. Conservancy and service debtors are stated after provision for impairment. A conservancy and

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

occurred after the initial recognition and that loss event has an impact on the estimated future cash flows of the financial asset that can

be reliably estimated. The carrying amounts of conservancy and service debtors are assumed to approximate their fair value. The

amount of the provision is recognised in the income statement. Normally no interest is charged on conservancy and service debtors.

(i) Other receivables

Other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other

than those held for trading, designated as available for sale and those that are not substantially recoverable, other than because of

credit deterioration, which are classified as available for sale. Items with a short duration are not discounted. After initial recognition

such financial assets, are measured at their fair values, without any deduction for transaction costs that may be incurred on sale or other

disposal. These items are included in the balance sheet in conservancy and service debtors and other receivables as current assets.




(j) Impairment of non-financial assets

At each reporting date an assessment is made whether there is any indication that a depreciable or amortisable asset may be impaired.

If any such indication exists, an estimate is made of the recoverable amount of the asset. The impairment loss is the excess of the

carrying amount over the recoverable amount and is recognised in the income statement unless the relevant asset is carried at a

revalued amount, in which case the impairment loss is treated as a revaluation decrease. The recoverable amount of an asset or a cash-

generating unit is the higher of its fair value less costs to sell and its value in use. In assessing value in use, the estimated future cash

flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of

money and the risks specific to the asset. For the purposes of assessing impairment, assets are grouped at the lowest levels for which

there are separately identifiable cash flows (cash-generating units). At each reporting date non-financial assets other than goodwill with

impairment loss recognised in prior periods are assessed for possible reversal of the impairment. An impairment loss is reversed only

to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of deprecia-

tion or amortisation, if no impairment loss had been recognised.

(k) Impairment of financial assets

All financial assets except those measured at fair value through profit or loss are subject to review for impairment. A financial asset or

a group of financial assets is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one

or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the

estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. Losses expected as a

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

(l) Liabilities and provision

A liability or provision is recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable that

an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the

amount of the obligation. These include trade and other payables and where the effect of the time value of money is material, the

amount recognised is the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that

reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due

to passage of time is recognised as interest expense.

(m) Taxation

Tax is provided on the following income:

(i) Income derived from investments;

(ii) Fees, rent and other charges received from non-residents or non-owners of proper ties in the Town for maintenance of

carpark where the Town Council opts to manage and maintain them;

(iii) Donations from non-residents or non-owners of properties in the Town; and




(iv) Agency fees derived from acting as agents for other town councils.

The income tax are accounted using the asset and liability method that requires the recognition of taxes payable or refundable for the

current year and deferred tax liabilities and assets for the future tax consequence of events that have been recognised in the financial

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

or substantially enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. Income tax expense represents

the sum of the tax currently payable and deferred tax. Deferred tax assets and liabilities are offset when they related to income taxes

levied by the same income tax authority. The carrying amount of deferred tax assets is reviewed at each balance sheet date and is

reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realised. A deferred

tax amount is recognised for all temporary differences.

(n) Recognition of income

The revenue amount is the fair value of the consideration received or receivable from the gross inflow of economic benefits during the

period arising from the course of the ordinary activities of the entity and it is shown net of related tax, estimated returns and discount.

Conservancy and service fees are recognised when due.

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

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

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

management term.

(o) Employee benefits

Contributions to defined contribution retirement benefit plans are recorded as an expense as they fall due. The entity’s legal or

constructive obligation is limited to the amount that it agrees to contribute to the fund. This includes the government managed retire-

ment benefit plan such as the Central Provident Fund in Singapore. For employee leave entitlement the expected cost of short-term

employee benefits in the form of compensated absences is recognised in the case of accumulating compensated absences, when the

employees render service that increases their entitlement to future compensated absences; and in the case of non-accumulating

compensated absences, when the absences occur.

(p) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and at bank, demand deposits and short-term, highly liquid investments readily

convertible to known amounts of cash and subject to an insignificant risk of change in value.

For the purposes of the cash flow statement, cash and cash equivalents are shown net of outstanding bank overdrafts which are

repayable on demand and which form an integral part of the Town Council cash management.




(q) Leases as a lessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as

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

over the term of the relevant lease unless another systematic basis is representative of the time pattern of the user’s benefit, even if the

payments are not on that basis. Lease incentives received are recognised in the income statement as an integral part of the total lease

expense.

(r) Fair value of financial instruments

The carrying values of current financial assets and financial liabilities including cash, accounts receivables, account payable approxi-

mate their fair values due to the short-term maturity of these instruments.

(s) Critical judgements, assumptions and estimation uncertainties

There were no critical judgements made in the process of applying the entity’s accounting policies that have the most significant effect

on the amounts recognised in the financial statements. There were no key assumptions concerning the future, and other key sources of

estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts

of assets and liabilities within the next financial year.

(t) General risk management principles

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

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

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

exchange risk and there is no significant liquidity risk as it maintains sufficient cash. The Town Council’s reviews and agrees policies for

managing each of these risks and they are summarised below.

(u) Credit risk on financial assets

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

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

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

assets are placed with high credit quality institutions. An ongoing credit evaluation is performed of the debtors’ financial condition and

a loss from impairment is recognised in the income statement. There is no significant concentration of credit risk, as the exposure is

spread over a large number of counterparties and customers.

(v) Other risks on financial instruments

The main risks arising from the Town Council’s financial instruments are interest risk. There is exposure to interest rate price risk for

financial instruments with a fixed interest rate and to interest rate or cash flow risk for financial instruments with a floating interest rate

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

exposure to interest rate fluctuations.




3. Plant and equipment

Furniture, Data processingfixtures Office equipment/ Motor

and fittings equipment software vehicles Total

$ $ $ $ $

CostAt 1 April 2004 1,080,094 260,487 2,254,401 61,138 3,656,120

Additions 8,289 2,180 29,997 - 40,466

Disposals - - (38,242) - (38,242)

At 31 March 2005 1,088,383 262,667 2,246,156 61,138 3,658,344

Accumulated depreciationAt 1 April 2004 1,027,708 251,944 2,063,654 61,137 3,404,443

Additions 22,297 5,535 158,281 - 186,113

Disposals - - (38,242) - (38,242)

At 31 March 2005 1,050,005 257,479 2,183,693 61,137 3,552,314

Net book valueAt 31 March 2005 38,378 5,188 62,463 1 106,030

CostAt 1 April 2005 1,088,383 262,667 2,246,156 61,138 3,658,344

Disposals - - - (61,138) (61,138)

At 31 March 2006 1,088,383 262,667 2,246,156 - 3,597,206

Accumulated depreciationAt 1 April 2005 1,050,005 257,479 2,183,693 61,137 3,552,314

Additions 18,890 3,355 38,439 1 60,685

Disposals - - - (61,138) (61,138)

At 31 March 2006 1,068,895 260,834 2,222,132 - 3,551,861

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




4. Investments in financial assets

This represents funds and related profits placed with professional fund managers.

The Town Council appoints several fund managers to manage its funds, based on terms and conditions stipulated in the respective Invest-

ment Agreement signed with the fund managers, for a fixed period of time. The terms and conditions may change upon the re-appointment of

the fund managers.

(i) As at 31 March 2006, the Town Council has arrangements with certain fund managers to guarantee in aggregate the principal amount of

$62,500,000 (2005 : $58,000,000) at the end of the management term.

(ii) The fund managers will be entitled to charge basis administrative fees. Additionally, the fund managers will be entitled to receive

performance fees for the excess, before income tax, of the market value of the fund over the specified performance benchmark at the

end of the management term or termination date if earlier, or at the end of each year respectively.

(iii) The funds are invested in accordance with the Town Councils Act and the Trustees Act.

2006 2005

$ $

Balance at beginning of financial year 77,800,796 70,535,732

Effects of adopting FRS39 on 1 April 2005 2,982,295 –

Additions during the financial year 4,198,513 5,586,371

Accrued income for the financial year 3,495,320 1,752,939

Administrative fee accrued (82,714) (74,246)

Increase in fair value during the year 2,298,486 –

Fair value at the end of the financial year 90,692,696 77,800,796

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

2006 2005

$ $

At fair value At fair value At cost

Equities 11,795,432 13,173,898 11,368,393

Bonds 71,343,083 58,238,493 57,061,703

Cash and fixed deposits 7,554,181 9,370,700 9,370,700

Total cost of investments 90,692,696 80,783,091 77,800,796




5. Conservancy and service debtors

Conservancy and service debtors 1,602,673 1,389,024

Conservancy and service debtors are stated after providing for doubtful debts of $217,079 (2005 : $217,079).

The movements in provision for doubtful debts are as follows :

Balance at beginning of financial year 217,079 170,248

Addition during the financial year - 46,831

Balance at end of financial year 217,079 217,079

6. Cash and cash equivalents

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

Fixed deposits with financial institutions 44,477,408 46,506,035

Bank and cash balances 6,759,388 3,862,492

51,236,796 50,368,527

Fixed deposits placed with banks have maturities range from 3 weeks to 12 months and bear interest range from 1.900% to 3.325% per

annum (2005: 3 weeks to 6 months and bear interest range from 0.400% to 2.125% per annum). These approximate the weighted effective

interest rate.

7. Payables and accrued expenses

Sundry deposits 221,945 182,798

Accrued operating expenses 239,483 220,340

Outside parties 4,198,034 3,961,007

4,659,462 4,364,145

The other payables are with short-term durations. The notional amount is deemed to reflect the fair value.




8. Accumulated surplus

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

Residential Property Commercial Property Carpark Total

2006 2005 2006 2005 2006 2005 2006 2005

$ $ $ $ $ $ $ $

Operating income

Conservancy and Service Fees 27,751,814 26,867,913 3,250,051 3,076,872 – – 31,001,865 29,944,785

Less : Operating transfer to

Sinking Fund (9,241,180) (8,930,945) (1,137,519) (1,076,888) – – (10,378,699) (10,007,833)

18,510,634 17,936,968 2,112,532 1,999,984 – – 20,623,166 19,936,952

Agency fees and other income 757,099 670,734 599,134 562,206 1,717,648 1,645,139 3,073,881 2,878,079

19,267,733 18,607,702 2,711,666 2,562,190 1,717,648 1,645,139 23,697,047 22,815,031

Less : Operating expenditure (19,874,823) (19,260,042) (1,786,715) (1,677,069) (1,764,616) (1,584,818) (23,426,154) (22,521,929)

Operating surplus/(deficit) (607,090) (652,340) 924,951 885,121 (46,968) 60,321 270,893 293,102

Add : Non-operating income 175,144 81,897 16,033 7,632 18,433 8,327 209,610 97,856

Less : Non-operating expenditure – – – – – – – –

Surplus/(deficit) before taxation and

Government Grants (431,946) (570,443) 940,984 892,753 (28,535) 68,648 480,503 390,958

Less : Taxation (330,438) (26,314) (30,248) (2,415) (34,847) (2,695) (395,533) (31,424)

Surplus/(deficit) before Government

Grants (762,384) (596,757) 910,736 890,338 (63,382) 65,953 84,970 359,534

Add : Government Grants 8,956,181 7,215,116 149,061 (32,424) – – 9,105,242 7,182,692

Less : Transfer to Sinking Funds (2,097,875) (2,001,927) – – – – (2,097,875) (2,001,927)

Town Improvement and

Project Funds (2,265,780) (795,306) (149,061) 32,424 – – (2,414,841) (762,882)

4,592,526 4,417,883 – – – – 4,592,526 4,417,883

Surplus for the financial year 3,830,142 3,821,126 910,736 890,338 (63,382) 65,953 4,677,496 4,777,417

Accumulated surplus at 1 April 2,234,727 2,213,601 1,172,082 981,744 572,809 506,856 3,979,618 3,702,201

6,064,869 6,034,727 2,082,818 1,872,082 509,427 572,809 8,657,114 8,479,618

Less : Appropriation to Town Improvement

and Project Funds (1,500,000) (3,800,000) (500,000) (700,000) – – (2,000,000) (4,500,000)

Accumulated surplus at 31 March 4,564,869 2,234,727 1,582,818 1,172,082 509,427 572,809 6,657,114 3,979,618




9. Sinking Funds

Residential Property Commercial Property Total

2006 2005 2006 2005 2006 2005

$ $ $ $ $ $

Balance at beginning of financial year 87,189,453 79,333,675 17,241,208 16,063,486 104,430,661 95,397,161

Add :

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

Income 3,854,384 4,675,157 352,980 443,224 4,207,364 5,118,381

Operating transfer from Conservancy and

Service Fees (minimum required by law) 9,241,180 8,930,945 1,137,519 1,076,888 10,378,699 10,007,833

Transfer from Government Grant 2,097,875 2,001,927 – – 2,097,875 2,001,927

Fair value gains on investment 2,105,413 – 193,073 – 2,298,486 –

with fund managers

17,298,852 15,608,029 1,683,572 1,520,112 18,982,424 17,128,141

Less : Expenditure (11,521,425) (7,410,972) (457,431) (311,066) (11,978,856) (7,722,038)

Less : Taxation (180,370) (341,279) (16,511) (31,324) (196,881) (372,603)

5,597,057 7,855,778 1,209,630 1,177,722 6,806,687 9,033,500

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

Represented by :

Current assets

Investments in financial assets 90,692,696 77,800,796

Conservancy and service debtors 535,293 463,934

Other debtors 346,134 121,686

Interest receivable 210,856 115,908

Amount due from accumulated surplus 3,407,616 3,342,010


Bank and cash balances 1,446,237 85,098

Total assets 117,998,184 107,311,836

Current liabilities

Payable and accrued expenses 3,354,631 2,308,282

Provision for taxation 423,910 572,893

Total liabilities 3,778,541 2,881,175

Net assets 114,219,643 104,430,661




10. Town improvement and project funds

Residential Property Commercial Property Total

2006 2005 2006 2005 2006 2005

$ $ $ $ $ $

Balance at beginning of financial year 13,144,738 10,056,352 3,125,206 2,521,539 16,269,944 12,577,891

Add :

Income 265,781 91,189 35,873 8,485 301,654 99,674

Payment from citizens’ consultative 2,265,780 795,306 149,061 (32,424) 2,414,841 762,882

committee

2,531,561 886,495 184,934 (23,939) 2,716,495 862,556

Less : Expenditure (3,228,594) (1,556,991) (231,322) (68,620) (3,459,916) (1,625,611)

Less : Taxation (30,079) (41,118) (2,754) (3,774) (32,833) (44,892)

(727,112) (711,614) (49,142) (96,333) (776,254) (807,947)

Add : Appropriation from 1,500,000 3,800,000 500,000 700,000 2,000,000 4,500,000

accumulated surplus

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

Represented by :

Current assets

Interest receivable 120,169 33,753

Grants receivable 512,804 82,407

Amount due from accumulated surplus 2,104,987 4,509,115


Bank and cash balances 2,146,009 1,758,799

Total assets 17,907,816 16,467,768

Current liabilities

Payables and accrued expenses 343,665 149,911

Provision for taxation 70,461 47,913

Total liabilities 414,126 197,824

Net assets 17,493,690 16,269,944




11. Interim upgrading programme fund

2006 2005

$ $


Government fund received 3,599,930 1,479,816

Payment to contractors (2,679,291) (1,641,417)

Balance at end of financial year 943,967 23,328

12. Estate upgrading programme fund


Government fund received – 496,101

Payment to contractors (56,382) (481,852)

Balance at end of financial year (24,928) 31,454

13. Government grants

Conservancy and Payments from citizen’s

service grant consultative committee Total

Note 2006 2005 2006 2005 2006 2005

$ $ $ $ $ $

Government grants received

during the financial year 6,798,185 6,422,006 1,902,037 716,037 8,700,222 7,138,043

Government grants receivable – – 512,804 82,407 512,804 82,407

Government grants received in advance (107,784) (2,196) – – (107,784) (2,196)

Government grants over accrued – – – (35,562) – (35,562)

8 6,690,401 6,419,810 2,414,841 762,882 9,105,242 7,182,692

Less : Transfer :

- sinking funds 9 (2,097,875) (2,001,927) – – (2,097,875) (2,001,927)

- town improvement and project funds 10 – – (2,414,841) (762,882) (2,414,841) (762,882)

4,592,526 4,417,883 – – 4,592,526 4,417,883

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

2006 2005

$ $

Total grants received at beginning of financial year 144,025,363 135,532,837

Grants receivable at beginning of financial year and received during the year 82,407 1,354,483

Grants received during the financial year 8,700,222 7,138,043

Total grants received at 31 March 152,807,992 144,025,363




14. Provision for taxation

Provision for taxation in respect of profit for the financial year :

- current taxation 506,388 448,919

- under provision for prior year 118,859 –

625,247 448,919

Taken up in :

Income and expenditure statement (Note 8) 395,533 31,424

Sinking funds (Note 9) 196,881 372,603

Town improvement and project funds (Note 10) 32,833 44,892

625,247 448,919

A reconciliation between the tax expense and the product of accounting surplus multiplied by the applicable tax rate for the years ended 31

March is as follows :

Investment and interest income 2,641,613 1,619,528

Dividend income 183,376 53,265

Other income 531,244 702,599

3,356,233 2,375,392

Tax at the statutory rate of 20% (2005 : 20%) 671,247 475,078

Singapore statutory stepped income exemption (10,500) (10,500)

Others (35,500) (15,659)

625,247 448,919




15. General and administrative expenditure

2006 2005

$ $

Advertising, publicity and public relations 361,394 250,736

Audit fees 19,500 28,000

Computers services 237,931 475,633

Councillors’ allowance 191,784 178,279

Depreciation on plant and equipment (Note 3) 60,685 186,113

Plant and equipment not capitalised 5,140 6,322

Staff costs (Note 16) 3,876,768 3,829,668

Office rental and upkeep expenditure 427,971 366,810

Office supplies and stationery 131,904 134,072

Property tax 50,430 45,489

Provision for doubtful debts – 46,831

Others 524,515 321,401

5,888,022 5,869,354

16. Employee benefits expenses

Wages and salaries 3,262,100 3,259,746

Employers’ contribution to Central Provident Fund 383,199 385,953

Other staff benefits 231,469 183,969

3,876,768 3,829,668

17. Operating lease commitments

Commitments in relation to non-cancellable operating leases contracted for at the reporting date but not recognised as liabilities are payable

as follows :

Not later than one financial year 213,150 279,531

Later than one financial year but not later than five financial year 94,500 137,550

307,650 417,081

Rental expenses for the year 340,642 290,357




18. Commitment for capital expenditure

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

2006 2005

$ $

Amount approved and contracted for 13,058,902 3,067,332

Budget approved but not contracted for 30,123,200 37,101,000

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

project funds budgets for financial year 2006/2007 approved by the Town Council.

19. Changes and adoption of financial reporting standards

For the year ended 31 March 2006 the following Singapore Financial Reporting Standards were adopted for the first time:

FRS 1 (revised 2004) Presentation of Financial Statements

FRS 2 (revised 2004) Inventories (*)

FRS 8 (revised 2004) Accounting Policies, Changes in Accounting Estimates and Errors

FRS 10 (revised 2004) Events after the Balance Sheet Date

FRS 16 (revised 2004) Property, Plant and Equipment

FRS 17 (revised 2004) Leases

FRS 21 (revised 2004) The Effects of Changes in Foreign Exchange Rates

FRS 24 (revised 2004) Related Party Disclosures

FRS 27 (revised 2004) Consolidated and Separate Financial Statements (*)

FRS 28 (revised 2004) Investments in Associates (*)

FRS 32 (revised 2004) Financial Instruments: Disclosure and Presentation

FRS 33 (revised 2004) Earnings per Share (*)

FRS 36 (revised 2004) Impairment of Assets

FRS 38 (revised 2004) Intangible Assets

FRS 39 (revised 2004) Financial Instruments: Recognition and Measurement

FRS 41 Agriculture (*)

FRS 102 Share-based Payments (*)

FRS 103 Business Combinations (*)

FRS 104 Insurance Contracts (*)

FRS 105 Non-current assets held for sale and discontinued operations (*)

(*) Not applicable to the entity.

Adoption of the above new standards has resulted in some changes in the detailed application of the accounting policies and some modifica-

tions to financial statement presentation (see Note 21).




20. Future changes in accounting Standards

The following Singapore Financial Reporting Standards that have been issued will be effective in future. The transfer to the new standards

from the effective dates is not expected to have a material impact on the financial statements.

FRS 40 Investment Property, effective from 1.1.2007 (*)

FRS 106 Exploration for and Evaluation of Mineral Resources, effective from 1.1.2006 (*)

FRS 107 Financial Instruments: Disclosures, effective from 1.1.2008.

INT FRS 104 – Determining whether an Arrangement contains a Lease

INT FRS 105 – Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds (*)

INT FRS 106 – Liabilities Arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment (*)

INT FRS 107 – Applying the Restatement Approach under FRS 29 Financial Reporting in Hyperinflationary Economies (*)

Amendments to FRS 1 Presentation of Financial Statements on Capital Disclosures

Amendments to FRS 21 Net Investment in a Foreign Operation (*)

Amendments to FRS 39 Financial Instruments: Recognition and Measurement on hedge accounting provision, fair value option and financial

guarantee contracts (*)

Amendments to FRS 101 First-time Adoption of Financial Reporting Standards on comparative disclosures for FRS 106 Exploration for and

Evaluation of Mineral Resources(*)

Amendments to FRS 104 Insurance Contracts on financial guarantee contracts (*)

(*) Not applicable to the entity.




21. Changes in accounting policies, reclassifications and comparative figures.

The entity adopted FRS 39 Financial Instruments: Recognition and Measurement with effect from 1 April 2005. As is explained in Note 2, all

financial assets and financial liabilities are recognised at fair values (other than those permitted to be recognised at cost). The adjustments

to fair values ($2,982,295) at the beginning of the year are adjusted in equity. The figures for last year are not restated. The amounts

involved are as follows:

After adoption Before adoption

of FRS39 of FRS39 Difference

$ $ $

Available for sale investment 80,783,091 77,800,796 2,982,295

Sinking funds

– Residential property 89,921,235 87,189,453 (2,731,782)

– Commercial property 17,491,721 17,241,208 (250,513)

22. Comparative figures

The financial statements for the year ended 31 March 2005 were audited by other auditors (other than RSM Chio Lim) whose report dated 28

September 2005 expressed an unqualified opinion on those financial statements.

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