Facing New Challenges - Bishan

Facing New Challenges

Bishan - Toa Payoh Town Council Annual Report 2004-2005

II Bishan-Toa Payoh Town Council Annual Report 2004/2005 Bishan-Toa Payoh Town Council Annual Report 2004/2005 1

Contents

Bishan-Toa Payoh Town Council Fifth Term of Offi ce 2 Corporate Information 6

Chairman’s Review 7 Financial Statements 12

About The Theme

Bees epitomise the value of hardwork and a cohesive communal spirit.They work in harmony to provide for and protect the community.

The honeycomb inside the hive is abuzz with activity and is amazingly clean and free of bacteria.It is protected by Propolis, an antimicrobial agent that fortifi es and sterilises the hive.

Bees also produce other health-enhancing products like Royal Jelly and Honey.

We see many similarities between the bees’ community and Bishan-Toa Payoh Town.The residents, community leaders and the Town Council work closely to create a safe and

pleasant living environment. We are proud of our estate, our home, and we take ownership to ensure it is clean and well maintained.

Our healthy fi nancial results are as sweet as the honey produced in the honeycomb.This is the result of a well-managed organisation led by the

Town Council’s Chairman and its Council Members.

Together, with the spirit of co-operation and community involvement, Bishan-Toa Payoh will continue to progress and develop to become the Town for the future.

Meeting Expectations

“Our mission is to provide a clean, green, well

maintained and healthy environment for the residents,

through close co-operation with the residents, grassroots

organisations and related government agencies.”

Bishan-Toa Payoh Town Council

Fifth Term of Offi ce

2 Bishan-Toa Payoh Town Council Annual Report 2004/2005 Bishan-Toa Payoh Town Council Annual Report 2004/2005 3

Establishment Committee

Advisor: Mr Zainudin Nordin

Mr Wong Kan SengDeputy Prime Minister and Minister for Home Affairs

MP for Bishan-Toa Payoh GRCAdvisor to Bishan-Toa Payoh Town Council

Advisor to Bishan East Grassroots Organisations

Dr Ng Eng HenMinister for Manpower and Second Minister for Defence

MP for Bishan-Toa Payoh GRCElected Member of Bishan-Toa Payoh Town CouncilAdvisor to Toa Payoh East Grassroots Organisations

Mr Zainudin NordinMP for Bishan-Toa Payoh GRC

Chairman of Bishan-Toa Payoh Town CouncilAdvisor to Bishan-Toa Payoh North Grassroots Organisations

Mr Leong Horn KeeMP for Bishan-Toa Payoh GRC

Vice-Chairman of Bishan-Toa Payoh Town CouncilAdvisor to Thomson Grassroots Organisations

Mr Davinder SinghMP for Bishan-Toa Payoh GRC

Vice-Chairman of Bishan-Toa Payoh Town CouncilAdvisor to Toa Payoh Central Grassroots Organisations

Mr Er Kwong WahMember

Mr Teh Hee SeangMember

Mr Yee Fook HongMember

Mr Ling Ming Chuan CEO / Secretary

Mr Cheng Wai KeungVice-Chairman

Mr Foo See LianChairman

Toa Payoh East

Toa Payoh Central

Bishan-Toa Payoh North

Thomson

Bishan East

Advisors


Mr Gregory Tang Wee ThiangVice-Chairman

Ms Chua Geok LanMember

Mr Ling Tuck MunMember

Mr Mohd Yusof Bin Abdullah Member

Ms Tay Mok LanMember

Mr Tan Kia SengMember

Ms Patricia Toh Bee LanMember

Mr Wee Jit SunMember

Ms Catherine Lee Member

Mr Teh Hee SeangChairman

Mr Sitoh Yih Pin2nd Advisor

Tenders & Contracts Committee

Advisor: Mr Davinder Singh

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

Co-opted Members

Environment & Development Committee

Advisor: Mr Leong Horn Kee

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 Azman Bin YahayaMember

Mr David Choo Yong KeeMember

Mr Lau Cheng NamMember

Mr Leong Chong Meng Member

Mr Lawrence Lim Tau JeowMember

Mr Jason Leong Wai HoongMember

Mr Henry Ng Boon HweeMember

Ms Frances Tang Po TimMember

Mr Yeo Suay Tee Member

Dr Foo Yung KuanVice-Chairman

Mr Cheng Wai KeungChairman

Mr Roger Chia Ah SahMember

Mr Khoo Kay ChaiMember

Mr Anthony Kiong Beng HoeMember

Mr Texas Loh Kia How Member

Mr Ng Wee LoonMember

Mr Michael Low Hock KimMember

Mr Ramadoss RavindranMember

Ms Sophia Su Huah TeeMember

Mr Raymond Teoh Member

Ms Violet Wong Choh Sang Member

Mr Cheong Chee OnnVice-Chairman

Mr Er Kwong WahChairman

Community Relations Committee

Advisor: Mr Zainudin Nordin

Mr Ahmad Alif Lim

Mr Winston Chua Seng Chye

Mr David Mok Thye Hian

Mr Poon Wai Mun

Ms Stracey @Anbukkarasi

d/o Sakadevan Naidu

Mr Roger Wong Tian Hock

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

Co-opted Members

Finance & Administration Committee

Advisor: Dr Ng Eng Hen

Mr Roy Cheng Siew CherngMember

Mr Chia Pen ChuenMember

Mr Lai Kah SengMember

Mr Larry Lau Hooi See Member

Mr Tan Kee KhoonMember

Mr Lim Joo LyeMember

Mr Tin Beng ChanMember

Mr Sng Jin PohMember

Mr Yeo Hiang Meng Member

Mr Poh Puay EngVice-Chairman

Mr Yee Fook HongChairman

HDB Blocks Managed by Town Council

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

* As at September 2005

** Figures are approximated

Corporate Information

Overview & Performance

Last year, we continue with our investment in projects and cyclical works

to improve and upgrade our estate. In total, $9.3 million were spent on

these projects. From this amount, $1.6 million went to the provision

of 42 town improvement projects like elderly fi tness corners, children’s

playgrounds, resident & study corners, fi tness and sports courts, pavilions,

numerous park benches & shelters, barbeque pits, a jogging track and

covered walkways.

Our cyclical works expenditure came to $7.7 million. This was for repairs

and redecoration, replacement of lift parts, FRP water-tanks, booster

pumps, and re-wiring to 218 blocks to keep them in good living and

working condition.

Of the $9.3 million that the Town Council had spent, $763,000 came from

the active support of the GRC’s Citizens’ Consultative Committees (CCCs),

that claimed through the CIPC grant for the improvement projects. The

Chairman’s Review

Bishan-Toa Payoh Town Council LogoOur logo depicts both the distinctive architecture of Bishan’s Housing

Development Board (HDB) fl ats and the Viewing Tower of Toa Payoh

Garden. The blue and green colours represent a fresh, clean and healthy

environment within the community.

remainder came from our Town Improvement Project Fund (TIPF) and

Sinking Fund, where we accumulated our surplus from the past years.

The Town Council would continue to manage the resources prudently to

ensure that we have the funds for future projects to benefi t the residents.

Judiciously, Town Council will also plough back its surplus into the estate

to increase the value of residents’ homes.

Our fi nancial performance continues to improve year-on-year. We ended

the fi nancial year 04/05 with a net operating surplus of $4.8 million after

taking into account government grants. Our Sinking Fund reserve is $104.4

million. MND’s new regulation has allowed the Town Councils to reduce

its contribution to sinking fund by 5% for each type of property. This has

resulted in an increase in operating surplus that could be channeled to

town improvement projects.

Contact / Operating Hours

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

Bishan Offi ceBlock 197 #01-585 Bishan Street 13 Singapore 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)


New Initiatives

Besides the various hardware implementations, Bishan-Toa Payoh Town

Council had introduced value-added services in our efforts to differentiate

our Town and make it stand out from the rest.

Over the last 12 months, we introduced several new initiatives to engage

our residents and service partners.

1. Project VisionScroll was launched in November 04 and aimed

at primary school students. We used this platform to encourage

the children to draw their dream estate and the Town Council

would consider incorporating some of their ideas into its

development plans.

2. The Basic Maintenance Workshop made its appearance at the

Residents Committees’ Block Parties. Town Council staff would

demonstrate and explain the simple repairs to common home

electrical and sanitary problems. We would be taking this one step

further to make a video of the workshop for our web broadcast

to enable the residents to get online help to solve their minor

maintenance problems.

3. In March 05, the use of SMS became our latest mode of

communication to residents. The Town Council continues to embrace

technology to improve its services, and the implementation of SMS-

Improvements to the Estate

ALERT service is a result of it. Residents could register for this service

free and receive the latest estate information like fogging exercise,

news of lift breakdown or interruption to utilities supply from the

Town Council via SMS.

4. A reward scheme has also been introduced in the form of the S&C

Delight Draw. This year-long event was to reward the residents that

pay their monthly S&C Charges promptly and to encourage others to

be more consistent in their payment. The fi nal draw was conducted

on February 2005 with 100 residents winning attractive prizes.

5. We have initiated a reward scheme for our conservancy workers.

The Town Council would recognise their outstanding performance

and give them monetary rewards based on the recommendation of

the resident / grassroot leader and the property manager. One such

recipient was Conservancy Foreman Mr Alamine Miah who returned

a wallet to a grateful Shunfu resident, who wrote a commendation

letter to the Town Council on Alamine’s deed.

6. I started a bike trekking activity in May 04, where my Town Council

staff and I cycle to various parts of the estate. Such visits help me to

better understand and see the physical aspects of the place, and to

meet and gather feedback from residents about the improvement

projects and more.

I am pleased to report the developments that have taken place throughout

the GRC. The Town Council’s Town Improvement projects have added more

fun and charm into our estates. Presently, residents and their families

have more facilities to enjoy. Bishan-Toa Payoh Town continues to sizzle

and has attracted more people to visit, and set up their homes here.

The government’s upgrading programmes have physically transformed

the town, and this has resulted in a better and more conducive living

environment for the residents. Most of the residential blocks in Toa Payoh

estate have completed the Main Upgrading Programme (MUP), with 20

blocks in Toa Payoh North, Toa Payoh Central and Toa Payoh East being the

latest additions. Another 11 blocks in Toa Payoh East are undergoing the

MUP. Over in Bishan East and Thomson, the Interim Upgrading Programme

(IUP) is sprucing up 32 blocks with many more in the pipeline. The popular

Lift Upgrading Programme (LUP) is underway at 21 blocks that are spread

across Bishan East, Thomson and Toa Payoh East.

As for non-residential blocks, two market/food centres at Toa Payoh

Central and Toa Payoh East have been refurbished under the Hawker

Upgrading Programme (HUP). They have attracted more people since the

reopening, and their spanking clean conditions refl ect their popularity

with residents near and far.


Facing New Challenges, Meeting Your Expectations

Looking ahead, we have to continuously adjust and re-invent ourselves to manage change, and

position ourselves to be relevant in today’s global village. We need to constantly fi nd new ways and

methods that suit the present context. The Town Council has to identify new challenges and turn

them into opportunities to provide value-added services to its residents.

As our country develops further and transforms itself into the future global city, so will our beloved

town. It is only natural that residents’ aspirations will grow in tandem with the rise of the country’s

affl uence, they would expect better and faster services. The Town Council has to continuously

engage its customers to understand their needs, and the organisation has to create opportunities for

a meaningful exchange of ideas.

Thus, we would need to have a fresh and creative approach in communicating to residents. As

stakeholders with vested interest in the estate, we are all partners with the common objective of

transforming Bishan-Toa Payoh Town into the “choice town” in the future global city.

Zainudin Nordin

Chairman, 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 2005

We have audited the accompanying fi nancial statements of Bishan-Toa Payoh Town Council (the “Town Council”) as set out on pages 14 to 33 for the fi nancial year ended

31 March 2005. These fi nancial statements are the responsibility of the Town Council. Our responsibility is to express an opinion on these fi nancial statements based on

our audit. The fi nancial statements for the year ended 31 March 2004 were audited by another auditor whose report dated 29 September 2004 expressed an unqualifi ed

opinion on those fi nancial 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 fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures

in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by the directors, as well as evaluating the overall

fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion,

(a) the fi nancial 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 2005 and the results, changes in funds and cash fl ows of the Town

Council for the fi nancial year ended on that date; and

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

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

of assets by the Town Council during the fi nancial year have not been made in accordance with the provisions of the Act.

Ernst & YoungCertifi ed Public Accountants

Singapore

28 September 2005

Auditors’ Report toBishan-Toa Payoh Town Council

Financial Statements

Bishan-Toa Payoh Town Council Annual Report 2004/2005 13

Contents

Auditors’ 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

Note 2005 2004 $ $Non-current assets Plant and equipment 3 106,030 251,677Funds with fund managers 4 77,800,796 70,535,732Investments 5 – 4,259,835

77,906,826 75,047,244Current assets Trade debtors 6 1,389,024 1,104,065Other debtors 148,704 378,891Interest receivable 196,458 78,549Grants receivable 82,407 2,124,379Fixed deposits with financial institutions 7 46,506,035 32,464,704Bank and cash balances 7 3,862,492 6,195,915

52,185,120 42,346,503Current liabilities Grants received in advance 2,196 4,796Conservancy and service fees received in advance 362,770 358,980Creditors and accrued expenses 8 4,364,145 4,320,184Provision for taxation 627,830 830,400 5,356,941 5,514,360Net current assets 46,828,179 36,832,143

124,735,005 111,879,387Town Council Funds Residential property funds Accumulated surplus 9 2,234,727 2,213,601Sinking funds 10 87,189,453 79,333,675Town improvement and project funds 11 13,144,738 10,056,352 102,568,918 91,603,628Commercial property funds Accumulated surplus 9 1,172,082 981,744Sinking funds 10 17,241,208 16,063,486Town improvement and project funds 11 3,125,206 2,521,539 21,538,496 19,566,769Carpark funds Accumulated surplus 9 572,809 506,856Interim upgrading programme fund 12 23,328 184,929Estate upgrading programme fund 13 31,454 17,205

124,735,005 111,879,387

Note 2005 2004 $ $Operating income Conservancy and service fees 9 29,944,785 29,164,383Less : Operating transfer to sinking funds 9, 10 (10,007,833) (11,202,382) 19,936,952 17,962,001Agency fees 1,566,573 1,578,854Other income 1,311,506 1,254,336

22,815,031 20,795,191Less : Operating expenditure Cleaning works 4,755,652 4,467,641Lift maintenance 2,951,342 2,708,159Other works and maintenance 3,716,865 3,087,788Water and electricity 5,228,716 4,951,296General and administrative expenditure 16 5,869,354 5,306,743 (22,521,929) (20,521,627)

Operating surplus 293,102 273,564Add : Non-operating income Interest income 96,656 28,545Gain on disposal of plant and equipment 1,200 78Provision for diminution in value of investmentwritten back 5 – 256,823 97,856 285,446Surplus before taxation and government grants 390,958 559,010Taxation 15 (31,424) (68,030)

Surplus before government grants 359,534 490,980 Government grants 9, 14 7,182,692 7,586,992Less : Transfer to - sinking funds (2,001,927) (2,148,227)- town improvement and project funds (762,882) (1,470,875) 4,417,883 3,967,890Surplus for the financial year 4,777,417 4,458,870Add : Accumulated surplus at 1 April 3,702,201 2,743,331

8,479,618 7,202,201Less : Appropriation to town improvement and project fund 9 (4,500,000) (3,500,000)

Accumulated surplus at 31 March 9 3,979,618 3,702,201

The accounting policies and explanatory notes on pages 18 to 33 form an integral part of the financial statements. The accounting policies and explanatory notes on pages 18 to 33 form an integral part of the financial statements.

Mr Zainudin Nordin Mr Ling Ming ChuanChairman Secretary

28 September 2005

Mr Zainudin Nordin Mr Ling Ming ChuanChairman Secretary

28 September 2005


Statement of Income and ExpenditureFor the financial year ended 31 March 2005


Balance Sheet As at 31 March 2005


Residential Commercial Car park Interim Estate property fund property funds funds upgrading project upgrading project Total $ $ $ $ $ $Balance at 31 March 2003 81,951,506 17,594,251 382,179 256,059 – 100,183,995 Surplus/(deficit) for the financial year * 9,652,122 1,972,518 124,677 (71,130) 17,205 11,695,392

Balance at 31 March 2004 91,603,628 19,566,769 506,856 184,929 17,205 111,879,387 Surplus/(deficit) for the financial year * 10,965,290 1,971,727 65,953 (161,601) 14,249 12,855,618

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

Notes 2005 2004 $ $* Accumulated surplus 9 4,777,417 4,458,870 Sinking funds 10 9,033,500 7,230,963 Town improvement and project funds 11 (807,947) 59,484 Interim upgrading programme fund 12 (161,601) (71,130) Estate upgrading programme fund 13 14,249 17,205

12,855,618 11,695,392

Note 2005 2004 $ $Cash flow from operating activities Surplus before taxation and government grants 9 390,958 559,010Adjustments for: Depreciation of plant and equipment 3 186,113 235,985Provision for diminution in value of investments written back 5 – (256,823)Interest income (96,656) (28,545)Gain on disposals of plant and equipment (1,200) (78)

Operating surplus before working capital changes 479,215 509,549Decrease/(increase) in debtors 352,957 (856,305)Increase in creditors 45,350 428,312

Cash provided by operations 877,522 81,556Income tax paid (651,489) (571,478)Increase in sinking funds 2,285,795 3,366,329Decrease in town improvement and project funds (1,525,937) (1,404,899)Payment of expenses for interim upgrading project 12 (1,641,417) (74,182)Payment of expenses for Estate upgrading project 13 (481,852) (807,397)

Net cash flow (used in)/provided by operating activities (1,137,378) 589,929

Cash flows from investing activities Proceeds from disposal of plant and equipment 1,200 78Purchase of plant and equipment 3 (40,466) (52,715)Investments 4,259,835 (1,368,000)Funds with fund managers 4 (5,586,371) (8,000,000)Investment and interest income received 5,097,128 2,316,885

Net cash flow provided by/(used in) investing activities 3,731,326 (7,103,752)

Cash flows from financing activities Government funds received from interim upgrading project 12 1,479,816 3,052Government funds received from estate upgrading project 13 496,101 824,602Government grants received 14 7,138,043 6,212,822

Net cash flow provided by financing activities 9,113,960 7,040,476 Net increase in cash and cash equivalents 11,707,908 526,653 Cash and cash equivalents at the beginning of financial year 38,660,619 38,133,966

Cash and cash equivalents at the end of financial year 7 50,368,527 38,660,619

The accounting policies and explanatory notes on pages 18 to 33 form an integral part of the financial statements. The accounting policies and explanatory notes on pages 18 to 33 form an integral part of the financial statements.


Statement of Changes in Funds For the financial year ended 31 March 2005


Cash flow statement For the financial year ended 31 March 2005


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 73 (2004 : 75) employees as at 31 March 2005.

2. Summary of significant accounting policies (a) Basis of preparation

The financial statements have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”).

The financial statements have been prepared on a historical cost basis.

The accounting policies have been consistently applied by the Town Council and are consistent with those used in the previous financial year.

The financial statements are presented in Singapore Dollars (SGD or $).

(b) Funds

Town Council Funds

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

The types of properties under the management of the Town Council 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 Funds

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

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

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

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

The minimum 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 government 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 Funds

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

development works in the Town.

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

the Citizens’ Consultative Committees for approved projects.

Interim Upgrading Programme Fund

The Interim Upgrading Programme (“IUP”) is 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 Fund

The 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.


Notes to the Financial StatementsFor the financial year ended 31 March 2005




(c) 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.

(d) 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.

(e) Plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any impairment in value. All items of plant and equipment are initially

recorded at cost.

The initial cost of plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes and any directly attributable

costs of bringing the asset to its working condition and location for its intended use, any trade discounts and rebates are deducted in arriving at the purchase

price. Expenditure incurred after the plant and equipment have been put into operation, such as repairs and maintenance and overhaul costs, is normally

charged to the profit and loss account in the period in which the costs are incurred. In situations where it can be clearly demonstrated that the expenditure has

resulted in an increase in the future economic benefits expected to be obtained from the use of an item of plant and equipment beyond its originally assessed

standard of performance, the expenditure is capitalised as an additional cost of plant and equipment.

Depreciation is computed on a straight-line basis over the estimated useful life of the asset as follows:

Furniture, fixtures and fittings - 5 years

Office equipment - 3 years

Data processing equipment/software - 3 years

Motor vehicles - 5 years

The useful life and depreciation method are reviewed annually to ensure that the method and period of depreciation are consistent with the expected pattern

of economic benefits from items of plant and equipment.

(f) Funds with Fund Managers

Funds with Fund Managers represent the cost of the portfolio of assets placed with Fund Managers at the beginning of each management term less the

management fees payable during the management term. Funds with Fund Managers comprise mainly of equities, bonds and cash and fixed deposits. Equities

and bonds are stated at lower of cost and market value 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 certain Fund

Managers on agreed basis.

(g) Investments

Investments that are intended to be held for the long term are stated at cost and provision is made in recognition of any impairment in value other than

temporary in the value of the investments, determined on an individual investment basis.

Profits or losses on disposal of investments are taken to the Income and Expenditure Statement.

(h) Trade and other receivables

Provisions is made in the financial statements for debts where collection is doubtful.

Debts not recovered are written off as bad debts in accordance with the Town Council Financial Rules.

(i) Provisions

Provisions are recognised when the Town Council has a present legal or constructive obligation as a result of past events, it is probable that an outflow of

resources will be required to settle the obligation, and a reliable estimate of the amount can be made.

(j) 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 properties in the Town for maintenance of carpark where the Town Council

opts to manage and maintain them;

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

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

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying

amounts in the financial statements. Tax rates enacted or substantively enacted by the balance sheet date are used to determine deferred income tax.

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can

be utilised.

(k) Recognition of income

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.






(l) Impairment of assets

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised in the profit and loss account.

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer

exist or have decreased. The reversal is recorded in income. However, the increased carrying amount of an asset due to a reversal of an impairment loss is

recognised to the extent it does not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment

loss been recognised for that asset in prior years.

(m) Employee benefits

Employee leave entitlement

Employee entitlements to annual leave and long service leave are recognised when they accrue to employees. A provision is made for the estimated liability for

annual leave and long service leave as a result of services rendered by employees up to the balance sheet date.

Pensions and other post employment benefits

The Town Council makes contributions to the Central Provident Fund scheme in Singapore, a defined contribution pension scheme. These contributions are

recognised as an expense in the period in which the related service is performed.

(n) 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.

Short-term deposits, which are held to maturity, are carried at amortised cost.

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.

3. Plant and equipment

Furniture, Data processing fixtures Office equipment/ Motor and fittings equipment software vehicles Total $ $ $ $ $ Cost At 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 depreciation At 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 Charge for 2004 36,563 20,101 179,321 – 235,985 Net book value At 31 March 2005 38,378 5,188 62,463 1 106,030 At 31 March 2004 52,386 8,543 190,747 1 251,677






4. Funds with fund managers

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 Investment 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 2005, the Town Council has arrangements with certain fund managers to guarantee in aggregate the principal amount of $58,000,000

(2004 : $23,500,000) at the end of the management term.

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

for the excess, before income tax, of the market value of the fund over the 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.

2005 2004 $ $ Balance at beginning of financial year 70,535,732 60,582,187 Additions during the financial year 5,586,371 8,000,000 Accrued income for the financial year 1,752,939 2,056,981 Administrative fee accrued (74,246) (103,436)

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

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

2005 2004 Cost Market value Cost Market value $ $ $ $ Equities 11,368,393 13,173,898 6,998,511 8,071,438

Bonds 57,061,703 58,238,493 59,152,317 60,298,468

Cash and fixed deposits 9,370,700 4,384,904

Total cost of investments 77,800,796 70,535,732





5. Investments

2005 2004 Cost Market value Cost Market value $ $ $ $ Unifund – – 611,835 534,835 CapitaMall Trust – – 1,067,000 1,628,000 Ascendas REIT – – 1,581,000 2,190,750 SingPost Bonds – – 1,000,000 950,000

– – 4,259,835 5,303,585

The movements for provision for diminution in value of investments is as follows :

2005 2004 $ $ Balance at beginning of financial year – 256,823 Write back for the financial year – (256,823)

Balance at end of financial year – –

6. Trade debtors

Trade debtors comprised the following :

Conservancy and service debtors 1,389,024 1,104,065

Conservancy and service debtors are stated after providing for doubtful debts of $217,079 (2004 : $170,248). The movements in provision for doubtful debts are as follows : Balance at beginning of financial year 170,248 51,992 Provision for the financial year 46,831 118,256

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


9 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

2005 2004 2005 2004 2005 2004 2005 2004

$ $ $ $ $ $ $ $

Operating income

Conservancy and Service Fees 26,867,913 26,403,012 3,076,872 2,761,371 – – 29,944,785 29,164,383

Less : Operating transfer to Sinking Fund (8,930,945) (10,089,901) (1,076,888) (1,112,481) – – (10,007,833) (11,202,382)

17,936,968 16,313,111 1,999,984 1,648,890 – – 19,936,952 17,962,001

Agency fees and other income 670,734 488,762 562,206 703,905 1,645,139 1,640,523 2,878,079 2,833,190

18,607,702 16,801,873 2,562,190 2,352,795 1,645,139 1,640,523 22,815,031 20,795,191

Less : Operating expenditure (19,260,042) (17,637,366) (1,677,069) (1,371,714) (1,584,818) (1,512,547) (22,521,929) (20,521,627)

Operating surplus/(deficit) (652,340) (835,493) 885,121 981,081 60,321 127,976 293,102 273,564

Add : Non-operating income 81,897 257,464 7,632 25,594 8,327 2,388 97,856 285,446

(Deficit)/surplus before taxation and

Government Grants (570,443) (578,029) 892,753 1,006,675 68,648 130,364 390,958 559,010

Less : Taxation (26,314) (56,866) (2,415) (5,477) (2,695) (5,687) (31,424) (68,030)

(Deficit)/surplus before Government Grants (596,757) (634,895) 890,338 1,001,198 65,953 124,677 359,534 490,980

Add : Government Grants 7,215,116 7,326,788 (32,424) 260,204 – – 7,182,692 7,586,992

Less : Transfer to Sinking Funds (2,001,927) (2,148,227) – – – – (2,001,927) (2,148,227)

Town Improvement and Project Funds (795,306) (1,210,671) 32,424 (260,204) – – (762,882) (1,470,875)

4,417,883 3,967,890 – – – – 4,417,883 3,967,890

Surplus for the financial year 3,821,126 3,332,995 890,338 1,001,198 65,953 124,677 4,777,417 4,458,870

Accumulated surplus at beginning of

financial year 2,213,601 2,072,956 981,744 288,196 506,856 382,179 3,702,201 2,743,331

6,034,727 5,405,951 1,872,082 1,289,394 572,809 506,856 8,479,618 7,202,201

Less : Appropriation to Town Improvement

and Project Funds (3,800,000) (3,192,350) (700,000) (307,650) – – (4,500,000) (3,500,000)

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





7. Cash and cash equivalents

Cash and cash equivalents consist of cash on hand, balances with banks and fixed deposits. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts :

Fixed deposits with financial institutions 46,506,035 32,464,704 Bank and cash balances 3,862,492 6,195,915

50,368,527 38,660,619

Fixed deposits placed with banks have maturities ranging from 3 weeks to 6 months (2004 : 6 days to 9 months) and bear interest ranging from 0.400% to 2.125% (2004 : 0.375% to 1.100%) per annum.

8. Creditors and accrued expenses

Sundry deposits 182,798 105,439 Accrued operating expenses 220,340 115,569 Other creditors 3,961,007 4,099,176

4,364,145 4,320,184


11. Town improvement and project funds

Residential Property Commercial Property Total Note 2005 2004 2005 2004 2005 2004 $ $ $ $ $ $ Balance at beginning of financial year 10,056,352 7,013,203 2,521,539 2,005,204 12,577,891 9,018,407 Add : Income 91,189 49,667 8,485 4,876 99,674 54,543 Payment from citizens’ consultative committee 795,306 1,210,671 (32,424) 260,204 762,882 1,470,875 886,495 1,260,338 (23,939) 265,080 862,556 1,525,418 Less : Expenditure (1,556,991) (1,403,618) (68,620) (55,824) (1,625,611) (1,459,442) Less : Taxation (41,118) (5,921) (3,774) (571) (44,892) (6,492)

(711,614) (149,201) (96,333) 208,685 (807,947) 59,484 Add : Appropriation from accumulated surplus 3,800,000 3,192,350 700,000 307,650 4,500,000 3,500,000

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

Represented by : Current assets Other debtors – 54,325 Interest receivable 33,753 15,219 Grants receivable 82,407 1,998,039 Amount due from accumulated surplus 4,509,115 3,512,060 Fixed deposits with financial institutions 10,083,694 6,507,107 Bank and cash balances 1,758,799 704,322 Total assets 16,467,768 12,791,072

Current liabilities Creditors and accrued expenses 149,911 204,688 Provision for taxation 47,913 8,493 Total liabilities 197,824 213,181

Net assets 16,269,944 12,577,891





10. Sinking Funds

Residential Property Commercial Property Total Note 2005 2004 2005 2004 2005 2004 $ $ $ $ $ $ Balance at beginning of financial year 79,333,675 72,865,347 16,063,486 15,300,851 95,397,161 88,166,198 Add : Income 4,675,157 2,110,705 443,224 204,058 5,118,381 2,314,763 Operating transfer from Conservancy and Service Fees (minimum required by law) 8,930,945 10,089,901 1,076,888 1,112,481 10,007,833 11,202,382 Transfer from Government Grant 2,001,927 2,148,227 – – 2,001,927 2,148,227 15,608,029 14,348,833 1,520,112 1,316,539 17,128,141 15,665,372 Less : Expenditure (7,410,972) (7,334,744) (311,066) (501,309) (7,722,038) (7,836,053) Less : Taxation (341,279) (545,761) (31,324) (52,595) (372,603) (598,356)

7,855,778 6,468,328 1,177,722 762,635 9,033,500 7,230,963

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

Represented by : Non-current assets Funds with Fund Managers 77,800,796 70,535,732 Investment – 3,648,000 77,800,796 74,183,732 Current assets Trade debtors 463,934 443,627 Other debtors 121,686 48,222 Interest receivable 115,908 60,819 Amount due from accumulated surplus 3,342,010 – Fixed deposits with financial institutions 25,382,404 22,949,881 Bank and cash balances 85,098 2,955,797 29,511,040 26,458,346

Total assets 107,311,836 100,642,078 Current liabilities

Creditors and accrued expenses 2,308,282 3,008,676 Amount due to accumulated surplus – 1,489,153 Provision for taxation 572,893 747,088 Total liabilities 2,881,175 5,244,917

Net assets 104,430,661 95,397,161


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

2005 2004 $ $ Total grants received at beginning of financial year 135,532,837 128,277,467 Grants receivable at beginning of financial year and received during the year 1,354,483 1,042,548 Grants received during the financial year 7,138,043 6,212,822

Total grants received at 31 March 144,025,363 135,532,837

15. Provision for taxation

Provision for taxation in respect of profit for the financial year : - current taxation 448,919 660,800 Underprovision in prior financial years – 12,078

448,919 672,878 Taken up in : Income and expenditure statement (Note 9) 31,424 68,030 Sinking funds (Note 10) 372,603 598,356 Town improvement and project funds (Note 11) 44,892 6,492

448,919 672,878

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 1,619,528 2,487,635 Dividend income 53,265 70,000 Other income 702,599 723,553

2,375,392 3,281,188

Tax at the statutory rate of 20% (2004 : 20%) 475,078 707,264 Singapore statutory stepped income exemption (10,500) (10,500) Tax rebates – (32,287) Underprovision in prior financial years – 12,078 Others (15,659) (3,677)

448,919 672,878





12. Interim upgrading programme fund

2005 2004 $ $ Balance at beginning of financial year 184,929 256,059 Government fund received 1,479,816 3,052 Payment to contractors (1,641,417) (74,182)


13. Estate upgrading programme fund

Balance at beginning of financial year 17,205 – Government fund received 496,101 824,602 Payment to contractors (481,852) (807,397)


14. Government grants Conservancy and Payments from citizen’s service grant consultative committee Total Note 2005 2004 2005 2004 2005 2004 $ $ $ $ $ $ Government grants received during 6,422,006 5,994,573 716,037 218,249 7,138,043 6,212,822 the financial year Government grants receivable – 126,340 82,407 1,263,705 82,407 1,390,045 Government grants received in advance (2,196) (4,796) – – (2,196) (4,796) Government grants over accrued – – (35,562) (11,079) (35,562) (11,079)

9 6,419,810 6,116,117 762,882 1,470,875 7,182,692 7,586,992 Less : Transfer : - sinking funds 10 (2,001,927) (2,148,227) – – (2,001,927) (2,148,227) - town improvement and project funds 11 – – (762,882) (1,470,875) (762,882) (1,470,875)

4,417,883 3,967,890 – – 4,417,883 3,967,890


19. Commitment for capital expenditure

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

2005 2004 $ $ Amount approved and contracted for 3,067,332 2,964,700 Budget approved but not contracted for 37,101,000 21,921,000

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 2005/2006 approved by the Town Council.

20. Financial instruments

Financial risk management The activities of the Town Council do not expose it to any foreign exchange risk and there is no significant credit risk. Its income and cash flows are substantially

independent of changes in the market interest rates. The Town Council places its excess cash in fixed deposits with financial institutions and funds with fund managers. There is no significant liquidity risk as it maintains sufficient cash for its operations.

Fair values Other than the fair values of funds with fund managers, as detailed in Note 4, the carrying amounts of the Town Council’s financial assets and liabilities

approximate their fair values due to their short-term nature.

21. Comparative figures

The financial statements for the year ended 31 March 2004 were audited by another firm. Certain comparative figures have been reclassified to conform with the current year’s presentation.

22. Authorisation of financial statements

The financial statements of the Town Council for the financial year ended 31 March 2005 were authorised for issue in accordance with a resolution of the Town Council on 28 September 2005.





16. General and administrative expenditure

2005 2004 $ $ Advertising, publicity and public relations 250,736 227,851 Audit fees 28,000 20,000 Computers services 475,633 388,856 Councillors’ allowance 178,279 176,456 Depreciation on plant and equipment (Note 3) 186,113 235,985 Plant and equipment not capitalised 6,322 4,636 Staff costs (Note 17) 3,829,668 3,406,545 Office rental and upkeep expenditure 366,810 376,651 Office supplies and stationery 134,072 111,039 Property tax 45,489 40,025 Provision for doubtful debts 46,831 118,256 Others 321,401 200,443

5,869,354 5,306,743

17. Staff costs

Wages and salaries 3,259,746 2,862,930 Employers’ contribution to Central Provident Fund 385,953 398,977 Other staff benefits 183,969 144,638

3,829,668 3,406,545

18. 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 279,531 426,132 Later than one financial year but not later than five financial years 137,550 444,738

417,081 870,870


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Facing New Challenges - Bishan

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