Arts House Limited Annual Report FY20/21 by Arts House Limited

Arts House Limited Annual Report

FY2020/21

for the year ended 31 March 2021

Table of

CONTENTS 1/6

Corporate Overview 1.1 1.2 1.3 1.4 1.4.1 1.4.2 1.4.2.1 1.4.2.2 1.4.2.3 1.4.2.4 1.4.3 1.4.4 1.5 1.6 1.6.1 1.6.2 1.7 1.7.1 1.7.2 1.7.3 1.7.4 1.7.5

2/6

Vision Mission Core Values Our Board Board Meetings Board Committees Audit Committee (AC) Finance Committee (FC) SIFA Committee Human Resource (HR) Committee Conflict Of Interest Strategic Planning Human Resources Management Our People Human Resource Management Philosophy Endeavour To Be The Best Financial Management & Controls Funding Sources Budget Planning and Monitoring Capital Asset Management Reserves Management Disclosure & Transparency

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Venues & Programming Capabilities

2.1 2.1.1 2.1.2 2.1.3 2.2 2.2.1 2.3 2.3.1 2.4 2.4.1 2.4.2 2.4.3 2.4.4 2.4.5 2.4.6

Aliwal Arts Centre Programming Aliwal Tracks ALiWALL Digital Graffiti Goodman Arts Centre Programming Goodman Open House The Arts House Programming Textures — The Bottled City (2021 Edition) The Arts House – Digital Programming Write from Home Workshops Rapatseni LumiNation Open Books: I Want To Go Home Sollum Swaramun Vel Vel

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3/6

SIFA V2.020 3

4/6

Our Commercial Spaces 4.1 4.1.1 4.1.2 4.2 4.2.1 4.2.2 4.2.2.1 4.2.2.2

5/6

Attracting New Tenants into Our Spaces The Fabulous Baker Boy at Aliwal Arts Centre Forage by Country Foods (a SATS subsidiary) at The Arts House, Annex Building Rejuvenating Our Spaces Full Replacement of Light & Sound Equipment Building Works And Upgrades Goodman Arts Centre — Black Box Upgrading The Arts House — Air Conditioner Replacement

Stakeholders & Corporate Partners 5.1 5.1.1 5.1.2 5.1.3 5.2 5.3 5.4 5.5 5.5.1 5.5.2 5.5.3 5.5.4 5.5.5 5.5.6

6/6

Working With The Arts Community In An Unchartered Unnormal

Civic District Placemaking Stakeholders Engagement Arts Professional Development And Networking Programme Civic District Alliance (CDA) Dialogue Session Art & AI: In Conversation Trafalgar X AHL Historic Clock Tower Tour Moments 2020 Future Programming and Fundraising Plans The Arts House Goodman Arts Centre Aliwal Arts Centre Stamford Arts Centre Singapore Writers Festival 2021 (SWF) Singapore International Festival of Arts 2022

Our Financials 6.1 6.1.1 6.1.2 6.1.3 6.1.4 6.2 6.2.1 6.2.2 6.2.3 6.2.4

Directors’ Statements Opinion of the Directors Directors Directors’ Conflict of Interest Policy Auditor Independent Auditor’s Report Opinion Basis for Opinion Other Information Responsibilities of Management and Directors for the Financial Statements

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6.2.5 6.2.6 6.3 6.4 6.5 6.6 6.7 6.7.1 6.7.2 6.7.2.1 6.7.2.2 6.7.2.3 6.7.2.4 6.7.2.5 6.7.2.6 6.7.2.7 6.7.2.8 6.7.2.9 6.7.2.10 6.7.2.11 6.7.2.12 6.7.2.13 6.7.2.14 6.7.2.15 6.7.2.16 6.7.3 6.7.4 6.7.5 6.7.6 6.7.7 6.7.8 6.7.9 6.7.10 6.7.11 6.7.12 6.7.13 6.7.14 6.7.15 6.7.16 6.7.17 6.7.18 6.7.19 6.7.20 6.7.20

Auditor’s Responsibilities for the Audit of the Financial Statements Report on Other Legal and Regulatory Requirements Balance Sheet Statement of Comprehensive Income Statement of Changes in Accumulated Funds Cash Flow Statement Notes to the Financial Statements Corporate Information Summary of Significant Accounting Policies Basis of Preparation Adoption of New and Amended Standards Standards Issued but Not Yet Affective Foreign Currency Fixed Assets Leases Impairment of Non-financial Assets Financial Instruments Impairment of Financial Assets Cash and Cash Equivalents Provisions Grants Employee benefits Revenue Taxes Contingencies Significant Accounting Judgments and Estimates Fixed Assets Trade and Other Receivables Cash and Bank Balances Trade and Other Payables Contract Liabilities Deferred Capital Grant Right-of-Use Assets and Lease Liabilities Grants and Donations Received in Advance Income Other Income Staff and Related Expenses Other Operating Expenditure Grants Income Tax Related Party Transactions Financial Risk Management Objectives and Policies General Funds Authorisation of Financial Statements

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Arts House Limited (AHL) is a not-forprofit organisation committed to enriching lives through the arts. AHL manages two key landmarks located in the heart of Singapore’s Civic District – The Arts House, a multi-disciplinary arts centre with a focus on literary programming, and the Victoria Theatre & Victoria Concert Hall, a heritage building that is home to the Singapore Symphony Orchestra. It also runs the Goodman Arts Centre and Aliwal Arts Centre, two creative enclaves for artists, arts groups and creative businesses, and performing arts space Drama Centre. AHL presents the Singapore

Corporate Overview

International Festival of Arts (SIFA), the

annual pinnacle celebration of performance and interdisciplinary arts in Singapore commissioned by the National Arts Council. AHL was set up in 11 December 2002 as a public company limited by guarantee under the National Arts Council and was officially renamed Arts House Limited on 19 March 2014.

1. Corporate Overview

Charity Registration Number: 01658

Bankers: DBS Bank Ltd Standard Chartered (Singapore) Ltd

Unique Entity Number (UEN): 200210647W

Auditor: Ernst & Young LLP

Institution of Public Character (IPC) Status: Effective 1 Jan 2020 to 31 Dec 2022

Related Entities: The Company does not have any subsidiary, associate or joint venture.

Registered Address: 28 Aliwal Street #03-07 Singapore 199918

Management: Ng Soon Lee, Senior Director, Finance

*None of the above has prior appointment in a charity.

1.1

1.2

1.3

A leader in nurturing, inspiring and enriching communities through the arts in Singapore.

Bridging the arts and audiences by transforming ideas into realities through our distinctive spaces and programmes.

Excellence: We embrace change and champion innovation in our pursuit of creative explorations and meaningful arts experiences. We perform at the highest standards, striving to be the best that we can be.

Vision

Mission

Core Values

Respect: We treat others how we would like to be treated. We value each person’s worth and contribution and celebrate authenticity and diversity. We remain grounded and humble in our interactions. Integrity: We conduct ourselves with the highest ethical standards and are transparent and accountable for all our actions. People-Oriented: We believe in our people and recognise that we can only achieve our goals by working and collaborating so that we can lean on and learn from each other. We also put others before self in our service to the arts.

Arts House Limited / Annual Report FY 20/21

1.4

Our Board As of 31 March 2021, AHL’s board comprised nine directors. An AGM as well as four Board meetings were held during the financial year. The directors and their attendance at the Board meetings are listed below.

Date of first appointment

Date of last re- appointment

Term Expiring

Tan Wee Yan Wilson (Chairman)

1-Jun-19

Ong Chao Choon

1-Apr-11

Ang Kah Eng Kelvin

Attendance of Directors at Board Meetings Held

Attended

31-May-21

1-Jun-19

31-May-21

31-Mar-16

1-Jun-19

31-May-21

Maniza Jumabhoy

31-Mar-16

1-Jun-19

31-May-21

Lynette Pang Hsu Lyin

31-Mar-16

1-Jun-19

31-May-21

Madeleine Lee Suh Shin

3-Aug-16

1-Jun-19

31-May-21

Kwok Siew Loong Kenneth

25-Jun-18

1-Jun-19

31-May-21

Ong Han Peng (Wang Hanping)

1-Jun-19

31-May-21

Phua Hwee Choo

1-Jun-19

31-May-21

During the financial year, an ex-officio member of the Board, Ms Sarah Martin, resigned as of 3 August 2020. With Ms Martin’s resignation and prior to Executive Director Mr Tan Boon Hui joining, Board

Director Mr Ong Chao Choon served as Lead Director to carry on board oversight in instances when Chairman Mr Wilson Tan Wee Yan assumed operational duties, as part of the transition.

1. Corporate Overview

1.4.1

Board Meetings Board meetings are held on a quarterly basis, with a quorum of at least three Board members, to review results and performance, forward plans and prospects of AHL. Staff who are not Directors may be invited to attend Board Meetings to provide information but they do not vote or participate in Board decision-making matters.

In July 2020, a training session was conducted for Board members, as part of regular efforts to keep the Board updated on the latest considerations and regulatory developments in corporate governance.

1.4.2

1.4.2.1

Board Committees

Audit Committee (AC)

The Board has delegated specific responsibilities to four Committees and each Committee has its own terms of reference, roles and responsibilities approved by the Board. The Board acknowledges the ultimate responsibility on all matters while these Committees have the authority to examine issues and report back to the Board with their recommendations. Minutes of these meetings are also circulated at the Board Meeting.

The Audit Committee (AC) was established in August 2016 and comprises two non-executive and independent directors. The AC assists the Board in its oversight of AHL’s financial reporting, system of internal controls, internal and external audits, and interested personal transactions (if any). Committee members as at the end of the financial year are listed in the table. Meetings Designation Held

Attended

Ong Chao Choon

Chairman

Ang Kah Eng

Member

1.4.2.2

Finance Committee (FC) The Finance Committee (FC) was established in April 2014 and comprises three non-executive and independent directors. The FC assists the Board in its oversight of AHL’s finances, budgeting process and matters relating to AHL’s use of reserves. The Board observes the maximum limit of four consecutive years for Directors holding the appointment of FC Chairman. On 1st April 2020, Director Madeleine Lee Suh Shin stepped down from her appointment as FC Chairman and Director Ong Han Peng was appointed as FC Chairman.

Meetings Designation Held

Attended

Ong Han Peng (Wang Hanping)

Chairman

Tan Wee Yan Wilson

Member

Madeleine Lee Suh Shin

Member

Committee members as at the end of the financial year are listed in the table.

Arts House Limited / Annual Report FY 20/21

1.4.2.3

SIFA Committee The SIFA Committee was established in April 2014 and comprises five non-executive and independent directors. The SIFA Committee assists the Board to provide guidance on the overall direction, programmes and budget, advises and supports SIFA in its communication and engagement of stakeholders, and reviews SIFA’s outcomes and annual performance. The SIFA Committee also identifies areas for improvement, change or further development for future festivals, and reviews and gives recommendations on the development of AHL’s capabilities and resources in organising SIFA. Committee members as at the end of the financial year are listed in the table.

Meetings Designation Held

Attended

Madeleine Lee Member Suh Shin

Ang Kah Eng Kelvin

Member

Chong Yuan Chien

Advisor

Serene Lim

NAC Observer

Lynette Pang Hsu Lyin

Chairman

1.4.2.4

Human Resource (HR) Committee The Human Resource (HR) Committee was established in April 2016 and comprises three non-executive and independent directors. The HR Committee assists the Board in providing oversight on executive and leadership development, reviewing and approving executive remuneration policies, approving the principles and budget for the annual salary increment and bonus payouts, reviewing and approving the principles of AHL’s HR policy changes, and attending to HR-related matters raised to the Board. Committee members as at the end of the financial year are listed in the table.

Designation

Meetings Held

Attended

Phua Hwee Choo

Chairman

Tan Wee Yan Wilson

Member

Kwok Siew Loong Kenneth

Member

1.4.3

1.4.4

Conflict Of Interest

Strategic Planning

AHL has in place a policy for Conflict of Interest and Declaration for the Board as well as for staff to ensure that directors and officers act independently and in the best interest of AHL. The Policy of Conflict of Interest and Declaration form is circulated to the Directors on a yearly basis as a reminder of the requirement for full and immediate disclosure in writing to the Board when a conflict of interest situation arises.

During the year, the Board endorsed various work plans for key functions, including plans for SIFA, Civic District placemaking, programming, asset management and leasing, as well as upgrading and maintenance of venues.

If and where there is present or potential conflict of interest, the director will have to disclose the conflict situation and recuse him/herself from the discussion and all decision-making situations with regards to the matter. 10

1. Corporate Overview

1.5

Human Resources Management AHL has a set of human resource policies in place with the aim to attract, retain and develop staff who have relevant skills and experience, and good performance.

for staff to adhere to. In addition, a whistle-blowing policy is in place where staff and the public may raise and/or report any misconduct in writing directly to the Board.

To create a professional, fair and inclusive work environment, the code of conduct has been established

1.6

Our People AHL believes in our people and recognises that our vision can only be achieved by working and collaborating with one another. Our staff are expected to always act with excellence, respect and integrity. Our values set the standards of behaviour and conduct for all, and articulate AHL’s overall culture. AHL fosters an environment that is built on respect and collaboration in order to serve our clients, stakeholders and communities with excellence and integrity.

AHL continues to invest strategically to recruit and develop our people – our most valuable business resource across our five venues and corporate office. We have reviewed and improved our hiring and onboarding practices to strengthen our employer brand and build a leadership pipeline that would sustain AHL. The journey to improve our people and culture will continue, and we remain committed to developing our strong team of people.

The delivery of our strategy requires staff who make a positive difference in AHL. In 2020, our performance management framework was enhanced to foster a sustainable performance culture. The enhanced framework ensures a fair and consistent process that is aligned with AHL’s values, and enables us to identify staff for professional development. It also enables managers and staff to better articulate AHL’s expectations for employees on how to live up to standards of performance.

1.6.1

1.6.2

Human Resource Management Philosophy

Endeavour To Be The Best

In AHL, we believe in our people and recognise that our vision can only be achieved by working and collaborating with one another. AHL places an emphasis on attracting, retaining and developing staff who have the relevant skills and experience, and good performance. AHL values staff who want to make a positive difference. AHL has implemented people management practices which not only offer competitive remuneration packages, but also focus on culture, performance and professional development. We also strongly believe that it is important to cultivate an environment built on respect and collaboration to serve our clients, stakeholders and communities, and where staff conduct themselves with excellence and integrity.

At AHL, one of our core values is ‘Excellence’ where we embrace change and champion innovation in pursuit of creative explorations and meaningful art experiences. In the same vein, AHL Human Resource is making strides towards fostering an open and transparent corporate culture through a combination of on-the-job and classroom training to promote every individual’s professional development. Staff are also encouraged to collaborate in cross-functional teams on common projects or work goals, such as digitalisation or programming, as this boosts creativity and innovation, as well as reduces working in silos.

Arts House Limited / Annual Report FY 20/21

1.7

Financial Management & Controls 1.7.1

1.7.2

Funding Sources

Budget Planning and Monitoring

AHL is financially supported by Government grants, rental and service charge income, venue hire income, donations, sponsorships and sales of tickets for its programmes.

The Board approves the annual budget of AHL, and financial results are provided to the Board on a quarterly basis, with comparison to the approved budget.

1.7.3

1.7.4

Capital Assets Management

Reserves Management

A fixed asset register is maintained to track the additions, disposals and movements of fixed assets. Physical sighting of assets is performed periodically, and value of assets are adequately insured.

AHL manages its reserves in accordance with a Reserves Policy that is approved by the Board, to ensure adequate reserves for long-term financial sustainability. Reserves are invested in fixed deposits in accordance with AHL’s Investment Policy that is approved by the Board.

1.7.5

Disclosure & Transparency Both the Annual Report and Audited Financial Statements of AHL are published on our website at www.artshouselimited.sg. Remuneration of AHL’s 3 highest paid staff is disclosed in bands of S$100,000 as follows: Remuneration

No. of employees

$200,000 — $300,000

Further details on remuneration of other staff and other aspects of the financial results for the financial year ended 31 March 2021 may be found in the published Audited Financial Statements..

Venues & Programming 02 Capabilities

Our diverse venue spaces form the basis for much of our Programming work: The Arts House itself, working from the historic Old Parliament building, has a focus on literary arts and works inspired by literature; Aliwal Arts Centre consistently showcases the street culture that finds a home in Kampong Glam, where the centre is located, alongside programmes that explore the rich heritage and contemporary culture of this unique quarter of the city; and Goodman Arts Centre offers a welcoming familyfriendly environment that gives access to the work of our many artistic tenants. This year, several of our venue programmes found new meaning in new formats:

Arts House Limited / Annual Report FY 20/21

2.1

Ccntre Programming Aliwal Arts Centre

2.1.1

Aliwal Tracks AHL launched its first virtual edition of Aliwal Tracks (21 Dec 2020 – 1 Mar 2021) – a video web series programme that invites viewers to explore the nuanced sounds around Kampong Glam. The project featured 40 local artists, including 9 arts tenants from Aliwal Arts Centre, in online programmes such as a virtual exhibition, behind-the-scenes videos and digital performances. The programme has recorded viewership to date of more than 181,000 as of 31 March 2021.

2.1.2

2.1.3

ALiWALL

Digital Graffiti

AHL also launched our first hybrid mural design competition AliWALL (Oct 2020 – Jan 2021), featuring street art collective RSCLS and the community, under which the winning design would be painted on a wall of Aliwal Arts Centre in Mar 2021.

Here, AHL engaged different artists impacted by the pandemic to create written pieces. These pieces revolved around their creative practices and engagement with Kampong Glam at large. Artists include Laurie from RSCLS and Preetipls.

2. Venues & Programming Capabilities

2.2

Goodman Arts Centre Programming 2.2.1

Goodman Open House AHL also launched the first virtual edition of Goodman Open House (12 Mar 2021), which supported Goodman Arts Centre arts tenants in showcasing their work through a series of digital videos, online arts and craft sessions and a digital gallery. Artists and partners showcased include Han Sai Por, The Observatory, T.H.E. Dance Company, Era Dance Theatre, Mural Lingo, the Association of Comic Artists in Singapore, Kamini Ramachandran, among many others. In addition to the online programmes, Playfreely, an indoor and outdoor sound-art series, was also hosted and occupied locations across the extensive GAC site.

2.3

The Arts House Programming 2.3.1

Textures – The Bottled City (2021 Edition) The closure of The Arts House for renovations presented the opportunity to programme our annual SingLit celebration, Textures, differently. It was decided that a travelling installation would be the best way not only to have a programme which would be in keeping with safe management restrictions, but also an opportunity to reach new audiences by going into the heartlands. By filling the installation with little objects such as miniatures, terrariums and paper sculptures, the new approach aimed to encourage audiences unfamiliar with SingLit to be curious about the works which inspired the objects and proceed to find out more about the books after their visit. Textures has also moved into hybrid programming. In addition to having a 360-degree virtual tour of the truck for those who are not able to visit the physical installation, a special project has also been commissioned as exclusive online content. Graphic novelist and artist Troy Chin has created A Red Sky at Dawn, an interactive murder mystery online game set in 1940s Singapore. It is a dynamically adaptive mystery determined not only by the choices you make,

but also by changes over time. This is an all-new web application built, penned, and drawn by Chin which can be enjoyed on both desktop and mobile devices.

“I am amazed by the Singapore literature scene and I hope that there would be more of such events.” — First-time visitor to Textures 15

Arts House Limited / Annual Report FY 20/21

2.4

The Arts House Digital Programming Throughout 2020 and into 2021, we were required to find digital formats for our programmes. Partnerships are an ongoing strategic focus for the Programmes department, and this year saw us enhance our range of partnerships to get the most from our digital activities. We are also pleased to share that our digital programmes connected strongly with audiences, far surpassing our

KPIs and internal targets, and showing a real appetite for this form of content – so digital is a mode with which we will continue even as we look towards more physical programmes in the coming year.

2.4.1

2.4.2

Write from Home Workshops

Rapatseni

The Write from Home (WFH) workshops were the first online programmes organised in May 2020 while the country was in Phase 1, with the intention of helping people cope with the isolation of quarantine through writing. Gwee Li Sui, Desmond Kon and Melissa De Silva – long-standing programme partner-facilitators – led three online workshops which were sold out quickly, and an additional session each for Gwee and Kon were added. Overall response from the participants was very positive and the participants were grateful for the online format. This was particularly true for local and overseas Singaporeans who were grounded at home, and were able to participate for the first time.

Responding to restrictions on live performances, Rapatseni, the Malay programme under The Arts House’s Poetry with Music series, was presented as a video production for the first time in 2020. With the title, Gemilang Wayang Dan Bicara, the fourth edition of Rapatseni saw the involvement of a record number of local artistic collaborators across various art forms. Produced by Renta Collective and directed by Norisham Osman, Gemilang Wayang and Bicara focuses on the splendour of wayang and put into play poems related to modernisation and the modern world written by Isa Kamari, Khairool Haque and Shaheda Salim. It was performed by theatre actresses Mirah Yahya and Farhana M Noor alongside local wayang kulit troupe – Sri Setia Pulau Singa and Malay dance group Kirana Seni. Launched online on 4 December 2021, the video had reached more than 2,500 viewers within the same month.

Examples of our digital programmes include:

2.4.3

LumiNation LumiNation, in its third edition, was presented digitally this year in light of the COVID-19 situation. With the festival’s aim of shedding light on lesser known, but no less important, narratives in Singapore’s history, this year’s theme “The Migration Edition” sought to explore the central role that migration has played in shaping Singapore over multiple generations. This digital edition took the form of recorded documentary-style short films and talks, as well as live talk sessions that spanned the gamut from early migrants to the island such as the Peranakans and Baweanese, to more recent issues 16

regarding migrant worker communities, as well as more unusual forays into the world of flora and fauna. Over the month-long season, there were more than 11,000 views over our nine programmes.

2. Venues & Programming Capabilities

2.4.4

2.4.5

Open Books: I Want To Go Home Sollum Swaramum In conjunction with National Gallery Singapore’s annual Light to Night Festival, open books returned to The Arts House with an outdoor art installation that took inspiration from Wesley Leon Aroozoo’s I Want to Go Home. Responding to the Festival’s theme of “In-Progress”, audiences to open books were invited to encounter the strength of a man’s love and resilience to

The 4th edition of Sollum Swaramum of the programme that we did owing to both COVID-19 restrictions and the fact that the Arts House was closed

the programme to the literary pioneer exhibition that had taken place as part of Singapore Writers Festival, in this case celebrating the work of P Krishnan, Singai the world is facing, open books: I Want to Go Home struck Ma Ilangkannan and Rama Kannabiran. The music a chord with audiences, and it was a timely piece to be was conceptualised by Ramesh Krishnan featuring presented to show how love, hope and determination can help with the recovery process. open books allowed devised texts by Harini V, Bharathi Moorthiappan and audiences to experience literary work in the visual art Ashwinii Selvaraj, performed by Harini, Ashwinii and form and provided the opportunity for The Arts House to reach out to audiences beyond the literary community. was a collaboration with NTU Centre for Contemporary open books: I Want to Go Home attracted more than screened to a live audience of about 80 people, and on YouTube to an additional 211 viewers.

2.4.6

Vel Vel The annual festival of Thaipusam was cancelled as a result of COVID-19 restrictions. Vel Vel was created in response to the loss of this important moment for the Indian community and was an attempt to, in solitude, collective consciousness of the festival. Developed by Ramesh Krishnan, Laura Miotto and Lim Shu Min in collaboration with theatre collective - Brown Voices, Vel Vel and photos from Thaipusam celebrations in the past, with route. The project launched on January 18, 2021, the day of Thaipusam, and will stay online a phone and web app until Jan 22, 2022, which is when Thaipusam 2022 falls, and has so far been experienced by more than 2,000 users online. Vel Vel has also since been selected for the Gwangju Design Biennale 2021. 17

Due to the COVID-19 pandemic and its resultant stricter border controls and more stringent social distancing measures, the SIFA team, together with NAC, announced the festival’s cancellation on 23 March 2020. This led to the quick conceptualisation of SIFA v2.020, a series of curated digital programmes that took place from May to December 2020. This provided a platform for both artists and audiences to navigate and engage in new arts experiences in this

SIFA V2.020

pandemic-laden world.

A new section on the SIFA website called SIFA All-Access was created to house some of SIFA v2.020’s digital programming exclusives, including live streaming, podcasts, as well as archive videos from past editions of the festival.

3. SIFA V2.020

Working With The Arts Community In An Unchartered Unnormal From May to September, SIFA v2.020 focused on talks and panel sessions, some designed for artists. With performances grinding to a halt, the freelance artists community was severely impacted. The SIFA team aimed to provide events that inspired, provoked discussions and offered alternative approaches to creating in this new situation. The inaugural panel featured festival director Gaurav Kripalani and the four directors and company managers from the four SIFA 2020 theatre commissions to share their worries, challenges, hopes and solutions. Another virtual talk, available on Facebook and YouTube, was conducted by famed theatre director, Anne Bogart (USA). The live Q&A with viewers yielded an engaging and stimulating exchange with our local artists. SIFA v2.020 took the opportunity to encourage artists to embrace the digital medium and create work for it. An interesting project that blossomed during the circuit breaker included 75 Singapore Symphony Orchestra musicians each recording material at home, some of whom make music on everyday household items. Arranged by Elaine Chan, and conducted by Joshua Tan, these vignettes were then stitched into a heartfelt rendition of One People, One Nation, One Singapore, as a tribute to our front-line workers. In addition, two different audio journeys were devised by local artists Irfan Kasban and Tan Shou Chen to be experienced alone, and in socially distanced settings. Titled respectively The Silence of a Falling Tree and A Bird Calls You to Moscow, these works melding

text, music and foley, were aural treats and brought much solace and pure imagination. SIFA v2.020 also presented the first of the trilogy, A Thousand Ways, created by American theatre makers 600 Highwaymen as a direct response to the pandemic. This first part, A Phone Call, had pairs of strangers serving as actor and audience to each other on a call. Part 2 and 3 will unfold in SIFA 2021. SIFA v2.020 was one of the first presenters to do a pilot for a live presentation under new safety management guidelines. Poetry Under the Southern Bough by Toy Factory Productions Ltd showcased a small cast, with two musicians and a dancer. The team also attempted live-streaming the production so as to reach a wider digital audience. Both SIFA and the artists learnt to adapt, and to be nimble to change. Everyone was excited to return to the stage again. Inching into December, the tail-end of SIFA v2.020 saw mostly live presentations. From six jazz bands to a series that celebrated sound and electronic artists, to the debut live show by Singapore’s Blogfather mrbrown, the line-up appealed to different audience appetites, and tickets were very well sold. Learning from the pilot, SIFA v2.020 continued to provide video-on-demand for some programmes and hosted live-streamed events. Overall, SIFA v2.020 had 62 productions, over 23,000 audiences, and offered jobs to 334 artists.

Arts House Limited / Annual Report FY 20/21

3. SIFA V2.020

“I am thrilled that the team behind SIFA has continued to bring in works of art that are fresh and compelling. I have been participating for a long time and I must say I have never been disappointed by the quality of engagement by the artists involved.” — SIFA Repeat Visitor

“...evocative, layered theatrical experience.” — The Straits Times on The Silence Of A Falling Tree, Dec 2020

Our Commercial Spaces

4. Our Commercial Spaces

4.1

Attracting New Tenants Into Our Spaces 4.1.1

The Fabulous Baker Boy At Aliwal Arts Centre Since closing its Fort Canning outlet in mid 2020, the bakery café which has been around for more than 10 years has now found a new home at Aliwal Arts Centre. Famed for its variety of fabulous cakes, The Fabulous Baker Boy has re-opened in January 2021 and now presents an expanded menu with all-day breakfast brunch including artisanal baked goods in the bigger, better and more fabulous 70-seater space.

4.1.2

Forage by Country Foods (a SATS subsidiary) at The Arts House, Annex Building form of the arts. Forage by Country Foods, located at The Arts House Annex Building, joins Arts House Limited in promoting the precinct as a vibrant arts and Leveraging SATS food business expertise and ecosystem, Forage seeks to bring to The Arts House exciting new food trends and experiences through our region’s rich and eclectic food culture in the

Space, programming and partnership will come together to promote and present the best of what our region has will play a key role in our region’s food scene, hosting trade and communities through ideas events, food festivals, open houses, residency programmes and myriad activations year-long.

Designed as an open innovation platform, test kitchen and experiential space, Forage seeks to push the limits of what the Singapore food culture could be and how to make our food more daring, while making it more ethical Attracting talents from within and outside the food world, creating safe spaces for crazy idea exchanges, and designing occasions to celebrate the works of master chefs and new aspirants, hawkers retiring and emerging, Forage is also about going back to our roots to find food sources and solutions 2.0, to add to the richness of our heritage Southeast Asian and Singapore hawker culture and cuisine, and to ensure its continued relevance to millennials and a new generation of

Arts House Limited / Annual Report FY 20/21

4.2

Rejuvenating Our Spaces 4.2.1

Full Replacement of Light & Sound Equipment Most of the equipment had reached the end of their life span, thus a full overhaul was done to refresh the spaces. Total cost $453,933.80

4.2.2

Building Works And Upgrades 4.2.2.1

4.2.2.2

Goodman Arts Centre – Black Box Upgrading

The Arts House – Air Conditioner Replacement

GAC’s Black Box was in a rundown state and in need of a refurbishment. The building works included: - Improvements works to dressing rooms 1 & 2, including - dresser tables, lighting and furniture. - Re-varnishing of timber flooring and replacement of rubber mat - Replacement of timber panel walls to proper partition walls - Replacement of 10 no. single and double lead door - Repainting of the entire black box - Replacement of window panels for the control room

The Arts House’s aircon system’s deterioration and breakdown often resulted in inconsistent temperatures. The upgrading works provided a and more comfortable environment for audiences and artists during events.

Total cost $72,440.00 Operationally, up to date and efficient equipment will help to reduce operating costs in terms of lower power consumption, parts replacement and repair. This full equipment and building improvement works, coupled with the expertise of an in-house production team will offer hirers the much-needed confidence and positive experience expected of a professionally managed performance space.

Total cost $746,957.00

Stakeholders & Corporate Partners 05

Arts House Limited / Annual Report FY 20/21

5.1

Civic District Placemaking In 2020, AHL was appointed by NAC to the role of cultural place manager for the Civic District.

5.1.1

Stakeholders Engagement In June 2020, three focus group discussions (FGDs) were organised; involving a total of 37 participants, including independent artists and representatives from over 20 organisations and observers from NAC and AHL. These groups include Asian Civilisations Museum (ACM), The Esplanade Co Ltd (TECL), National Gallery Singapore (NGS), Singapore Symphony Orchestra (SSO) independent artists, arts groups, public agencies like URA, NParks, STB, commercial tenants and community representatives. Through these focus groups, key findings include the need to make Civic District more welcoming to the wider community, increasing awareness of the Civic District and explore dynamic programming ideas for the precinct. The FGD provided valuable insights and ideas for Placemaking efforts.

“I was so struck by the greenery in the district amidst all these buildings that are so remarkable in themselves and they have played such a pivotal role in the building of Singapore - the goods, the trade, exchange of ideas.” — Barbara Fras, Deputy Director of Audience, Asian Civilisations Museum

5. Stakeholders & Corporate Partners

The Arts House NE

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Victoria Theatre & Victoria Concert Hall

National Gallery Singapore ST. AN DREW

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“This programme has Arts Professional Development given us the time, space and Networking Programme and guidance to reflect on ourselves as arts From mid-November to early-December 2020, the inaugural arts professional development and networking contributors to the programme was held over five days. Aptly titled The Connectors: Professional Development Intensive, selected staff from four national institutions participated arts scene.” and were able to build collaborative relationships 5.1.2

that would pave the way for organic inter-institutional partnerships together.

— Erin Tan, Assistant Manager, Programmes Singapore Symphony Orchestra

5.1.3

Civic District Alliance (CDA) Dialogue Session Following constructive dialogues with key stakeholders, the Civic District Alliance (CDA) was formed as a collective to drive placemaking efforts of the precinct. Set up in January 2021, its founding members included the four National Art Institutions that comprises of AHL, TECL, NGS and ACM, along with agencies such as URA, NParks and STB. The parties participated in the

first CDA meeting in November 2020 to discuss planning for 2021 activities. A multi-year plan on Placemaking strategies spanning the next three years, will be established by CDA.

Arts House Limited / Annual Report FY 20/21

“It was a beneficial experience — am glad that this was done at year-end as a kind of pre-new year reflection, except that most of the Civic District programmers are busy with Light to Night Festival prep for January!” — Jean Hair, Assistant Director Programmes, National Gallery Singapore

5. Stakeholders & Corporate Partners

5.2

ART & AI: In Conversation On 20 March 2021, Art & AI: In Conversation was a series of panels on AI shaping the future of Arts. The three panel sessions were well attended and offered inspiring and insightful introductions to the world of AI, ethical issues surrounding AI as well as seek to demystify codes and mysteries. Presented at Asian Civilisations Museum (ACM) for the 2 physical talks, one of the speakers was Kevin Lim from National Gallery whose latest venture is Ylab.sg to further the gallery’s innovation capability. We

partnered with AI Singapore to contribute in the talk for Living with AI. The online talk involved collaborations with SUTD & SMU as speakers on the topic of How Can Algorithms be Fair?. The events were quickly fully subscribed, and served as a platform for wider introductions between Civic District stakeholders (e.g. NGS Y-Lab connecting with the artists from our artists panel to explore potential projects).

“Art & AI: In Conversation marks an important milestone in diligently bringing together the artist and the technologist, promoting the melding of the minds in realising the potential art can bring into the development of artificial intelligence, and vice versa.” — Kevin Lim Deputy Director, CoLabX - Innovation Team, National Gallery of Singapore

“It was really interesting “A brilliant conversational for me to witness firstjourney... I had a lot of hand such interplay of fun and learned a lot.” — Kay Vasey, diverse perspectives Founder and Chief Connecting Officer, in real-time.” MeshMinds

— Immanuel Koh Chee Beng Assistant Professor, Architecture & Sustainable Design (ASD) and Design & Artificial Intelligence (DAI), SUTD

Arts House Limited / Annual Report FY 20/21

5.3

TRAFALGAR X Victoria Theatre & Victoria Concert Hall Historic Clock Tower Tour Through a partnership with international travel company, Trafalgar Tours, AHL and Trafalgar launched the Near Not Far local staycation tour itinerary to allow Singaporeans and local residents to reconnect with the joy of local tourism. For the first time in 2020, the public had the opportunity to visit and make a climb up Victoria Theatre and Victoria Concert Hall’s 115-year old Clock Tower, as guided by renowned heritage blogger Jerome Lim of The Long and Winding Road. Other Singapore Heritage Highlights include going into Victoria Theatre and Victoria Concert Hall, The Arts House and Kampong Glam. To support Singaporeans and local residents to experience history within Civic District, the Trafalgar Near Not Far staycations can be redeemed using Singapore Tourism Board SingapoRediscovers vouchers on Changi Recommends and GlobalTix.

“...this one stands out for its authoritative exploration of cultural landmarks that some of us may have come to take for granted.” — The Business Times

5.4

Moments 2020 In an unprecedented pandemic year of 2020, the Arts and Culture sector was badly impacted with performing venues closed, artists livelihood stalled and all live performances coming to a halt. This also meant that gifting to the arts was challenging in the health crisis. AHL built a fundraising campaign to focus on the rich heritage buildings of Victoria Theatre and Victoria Concert Hall through photography. In support of local artists, we collaborated with Andy Wong, founder of Rave Photography, for this campaign and raised a total of $39,200 from 15 donors. As a memento, unique moments of donors were captured in photography against the neo-classical backdrop of Victoria Theatre and Victoria Concert Hall and produced on A2 size black and white canvas print portraits and gifted to the 15 donors.

“This is a meaningful initiative. I am happy to support and help promote the arts in Singapore” — Mr. Edwin Seah, Donor

5. Stakeholders & Corporate Partners

5.5

Future Programming & Fundraising Plans Arts House Ltd (AHL) salutes our sponsors and donors, for their generous contributions through cash donations, sponsorship and in-kind support. These organisations and individuals play an exemplary role in supporting the making, appreciation and preservation of arts. As we continue our commitment to bring the value of arts to the community, we would also like to thank National Arts Council for their confidence and support.

AHL endeavours to continue our fundraising and cultivation efforts, to build a regular pool of sponsors and donors, and strengthen engagements to grow our supporters through long term sustainable partnerships, strategically aligned to AHL’s mission and goals. Our future plans are as listed below.

5.5.1

The Arts House Textures (14 January – 4 April 2022): Sing Lit Festival StoryFest (June 2022): International Storytelling Festival Singapore Everything The Light Touches (21 January – 7 February 2022): Panorama Paintings From Private Collections Ghost Story Archives (22 – 24 October 2021) Cultural Medallion Showcase (Ongoing from December 2021) 31

Arts House Limited / Annual Report FY 20/21

5.5.2

Goodman Arts Centre Goodman Grows (21 November 2021)

5.5.3

Aliwal Arts Centre AliWALL: The Dreamer (21– 23 January 2022)

5.5.4

Stamford Arts Centre Intermissions (March 2022)

5. Stakeholders & Corporate Partners

5.5.5

5.5.6

Singapore Writers Festival 2021 (SWF)

Singapore International Festival of Arts 2022

The 24th edition of the Singapore Writers Festival will be held from 5 to 14 November 2021 with the theme of “Guilty Pleasures”. Driven by Festival Director Pooja Nansi, the theme challenges common conceptions of lowbrow and highbrow literature, and explores connections and complications between guilt and pleasure in a variety of contexts and topics.

Appointed as Festival Director from 2022-2024, Natalie Hennedige kicks off her debut instalment titled The Anatomy of a Ritual. Focusing on original creation, this first edition is comprised of new commissions and iterations of existing creations re-contextualized or designed especially for SIFA.

Headliners include: - Julia Quinn (Fiction) - Ocean Vuong (Poetry) - Yan Geling (Chinese Fiction) - Geetha Sukumaran (Tamil Poetry) - Tan France (Non-Fiction) - G. Willow Wilson (Sequential Arts) SWF 2021 will have more than 140 programmes taking place in person and online, including more than 25 Chinese, Malay and Tamil programmes. Hedwig Anwar will be honoured as the Literary Pioneer in 2021 and the other signature series of SWF will return for this edition. The two major literary arts intermediaries Singapore Book Council (SBC) and Sing Lit Station (SLS) continues their partnerships with the festival: SLS has a panel of youth curators for the Youth Fringe segment, exploring topics pertinent to young adults aged 13-18, and SBC spotlights Southeast Asian literature (SEA Focus) and literary talents to a wider audience in the hopes of promoting meaningful cross-cultural dialogue.

Key highlights include: A Focus on Commissions – 14 new works including 11 festival commissions by 17 local and 11 international artists Furthering Local and International Artist Collaboration – deliberately programming local and international artists collaborating on projects for cross-pollination City As A Stage – With Singapore as a stage, the festival spreads its commissions in a diverse mix of 9 cultural and alternative venues around Singapore SIFA X – A new initiative to create opportunities for younger artists and curators to be featured, especially alongside SIFA/SWF main stages LIFE PROFUSION – A new initiative, positional the virtual space as a festival venue

Our Financials 06

6. Our Financials

6.1

Directors’ Statement The directors are pleased to present their statement to the members together with the audited financial statements of Arts House Ltd. (the “Company”) for the financial year ended 31 March 2021.

6.1.1

6.1.2

Opinion of the Directors

Directors

In the opinion of the directors,

The directors of the Company in office at the date of this statement are:

(i)

the financial statements of the Company are drawn up so as to give a true and fair view of the financial position of the Company as at 31 March 2021 and the financial performance, changes in accumulated fund and cash flows of the Company for the financial year ended on that date, and

(ii) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.

Tan Wee Yan Wilson Madeleine Lee Suh Shin Kwok Siew Loong Kenneth Lynette Pang Hsu Lyin Sarker Arijit Ranjan (Appointed on 1 June 2021) Tan Gim Hai Adrian (Appointed on 1 June 2021) Ong Han Peng Phua Hwee Choo Yasmin Hannah Ramle (Appointed on 1 June 2021) Lim Ying Jie Eugene (Appointed on 1 June 2021) Tan Boon Hui (Appointed on 21 April 2021) As the Company is limited by guarantee, the Board of Directors does not consider it necessary to report on the matters to be disclosed under Schedule 12.8 and 12.9 of the Singapore Companies Act, Chapter 50.

6.1.3

6.1.4

Directors’ Conflict of Interest Policy

Auditor Ernst & Young LLP have expressed their willingness to accept re-appointment as auditor.

The Company has a conflict of interest policy. The Company requires that Members of the Board to comply with the policy and fully disclose to the Board immediately On behalf of the Board of Directors: when a conflict of interest situation arises. Tan Wee Yan Wilson Director Tan Boon Hui Director Singapore 16 September 2021

Arts House Limited / Annual Report FY 20/21

6.2

Independent Auditor’s Report For the financial year ended 31 March 2021. Independent auditor’s report to the members of Arts House Ltd.

Report on the audit of the financial statements.

6.2.1

6.2.2

Opinion

Basis for Opinion

We have audited the financial statements of Arts House Ltd. (the “Company”), which comprise the balance sheet as at 31 March 2021, the statement of comprehensive income, statement of changes in accumulated funds and cash flow statement of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies.

We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the Companies Act, Chapter 50 (the “Act”), the Singapore Charities Act, Chapter 37 and other relevant regulations (the “Charities Act and Regulations”) and Financial Reporting Standards in Singapore (“FRSs”) so as to give a true and fair view of the financial position of the Company as at 31 March 2021 and of the financial performance, changes in accumulated funds and cash flows of the Company for the financial year ended on that date.

6.2.3

6.2.4

Other Information

Responsibilities of Management and Directors for the Financial Statements

Management is responsible for other information. The other information comprises the directors’ statement set out on page 32 but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard Independent auditor’s report to the members of Arts House Ltd. .

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and FRSs, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The directors’ responsibilities include overseeing the Company’s financial reporting process.

6. Our Financials

6.2.5

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: •

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a • Evaluate the overall presentation, structure and basis for our opinion. The risk of not detecting a content of the financial statements, including the material misstatement resulting from fraud is higher disclosures, and whether the financial statements than for one resulting from error, as fraud may represent the underlying transactions and events involve collusion, forgery, intentional omissions, in a manner that achieves fair presentation. misrepresentations, or the override of internal control. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit Obtain an understanding of internal control relevant and significant audit findings, including any significant to the audit in order to design audit procedures deficiencies in internal control that we identify during that are appropriate in the circumstances, but not our audit. for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

6.2.6

Report on Other Legal and Regulatory Requirements In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act. During the course of our audit, nothing has come to our attention that causes us to believe that during the financial year: (a) the use of donation moneys was not in accordance with the objectives of the Company as required under regulation 11 of the Charities (Institutions of a Public Character) Regulations; and

(b) the Company has not complied with the requirements of regulation 15 (Fund-raising expenses) of the Charities (Institutions of a Public Character) Regulations. Ernst & Young LLP Public Accountants and Chartered Accountants Singapore 16 September 2021

Arts House Limited / Annual Report FY 20/21

6.3

Balance Sheet As at 31 March 2021.

Non-current assets Fixed assets Right-of-use assets

Current assets Trade and other receivables Unbilled receivables Prepaid operating expenses Cash and bank balances

Current liabilities Trade and other payables Contract liabilities Deferred capital grant Lease liabilities Grants and donations received in advance

Note

FY20/21 $

FY19/20 $

6.7.4 6.7.10

123,406 62,704

258,973 76,344

186,110

335,317

1,866,116 143,077 153,552 18,183,093

1,288,278 73,473 111,418 15,938,339

20,345,838

17,411,508

5,079,883 788,666 35,853 18,672 4,192,274

6,302,783 863,277 9,800 17,148 803,889

10,115,348

7,996,897

10,230,490

9,414,611

114,009 45,047

19,600 59,698

159,056

79,298

10,257,544

9,670,630

10,257,544

9,670,630

10,257,544

9,670,630

6.7.5 6.7.6

6.7.7 6.7.8 6.7.9 6.7.10 6.7.11

Net current assets Non-current liabilities Deferred capital grant Lease liabilities

6.7.9 6.7.10

Net assets Equity General funds Accumulated surplus

6.7.20

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

6. Our Financials

6.4

Statement of Comprehensive Income For the financial year ended 31 March 2021. Note

FY20/21 $

FY19/20 $

6.7.12 6.7.12 6.7.12 6.7.12 6.7.12 6.7.12

1,686,373 134,466 71,896 625,251 1,065,920 776,742 49,730

5,165,803 622,012 147,460 712,987 952,657 1,275,038 174,411

37,300 35,844 577,804 1,066,215

86,313 161,406 93,686 438,303

6,127,541

9,830,076

(1,809,303) (954,915) (4,300,088) (5,462,334) (181,998) (238,721) (555,209) (10,373,809) (1,471,572)

(5,166,819) (1,206,756) (4,296,221) (6,308,231) (255,845) (1,000,192) (24,062) (9,795,649) (1,763,937)

Total expenditure

(25,347,949)

(29,817,712)

Deficit before grants

(19,220,408)

(19,987,636)

19,797,522 9,800

19,847,077 68,003

586,914

(72,556)

–

586,914

(72,556)

Income Venue hire Programming events income Carpark Service charge Landlord spaces service charge Rental income Cultural matching fund Sponsorships, contributions and donations • Tax deductible receipts • Non-tax deductible receipts Write back of impairment loss on trade receivables Other income

6.7.5 6.7.13

Total Income Expenditure Art programming expenses Marketing and publicity expenses Building rental Property maintenance and utilities Depreciation of fixed assets and right-of-use assets Venue hire and tenancy cost Impairment loss on trade receivables Staff and related expenses Other operating expenditure

Grants Amortisation of deferred capital grant

6.7.5 6.7.14 6.7.15

6.7.16 6.7.9

Deficit after grants Income tax Net deficit for the financial year, representing total comprehensive income for the financial year

6.7.17

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Arts House Limited / Annual Report FY 20/21

6.5

Statement of Changes in Accumulated Funds For the financial year ended 31 March 2021. General Funds $ Opening balance at 1 April 2019 Net deficit for the financial year, representing total comprehensive income for the financial year

9,743,186 (72,556)

Closing balance at 31 March 2020

9,670,630

Opening balance at 1 April 2020

9,670,630

Net deficit for the financial year, representing total comprehensive income for the financial year Closing balance at 31 March 2021

586,914 10,257,544

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

6. Our Financials

6.6

Cash Flow Statement For the financial year ended 31 March 2021. Note

Operating activities Deficit before grants Adjustments: Depreciation of fixed assets and right-of-use assets Impairment loss on trade receivables Write back of impairment loss on trade receivables Interest income Interest expense

6.7.5 6.7.5 6.7.13

Operating cash flows before changes in working capital Increase in trade and other receivables (Increase)/decrease in unbilled receivables Increase in prepaid operating expenses (Decrease)/increase in trade and other payables Decrease in contract liabilities

FY20/21 $

FY19/20 $

(19,220,408) 181,998 555,209 (577,804) (119,618) 1,482

(19,987,636)

(19,179,141)

(20,044,274)

(548,242) (69,604) (42,134) (618,159) (74,611)

Cash flows used in operations, representing net cash flows used in operating activities

255,845 24,062 (93,686) (243,968) 1,109

(12,195) 84,313 (60,334) 921,209 (437,762)

(20,531,891)

(19,549,043)

Investing activities Purchase of fixed assets and right-of-use assets Increase in investment in long-term deposits (maturity more than 3 months from financial year end) Interest income received

(27,520)

(40,958)

(1,200,142) 112,617

(998,094) 243,968

Net cash flows used in investing activities

(1,115,045)

(795,084)

22,711,428 (1,482) (18,398)

20,490,701 (1,109) (11,243)

22,691,548

20,478,349

1,044,612 8,928,224

134,222 8,794,002

9,972,836

8,928,224

Financing activities Government grants received (Note (i)) Interest paid on lease liabilities Payment of principal portion of lease liabilities

6.7.10 6.7.10

Net cash flows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March

6.7.6

Note (i): Include market rental subvention grants received for market rental of buildings under management by the Company amounting to $4,300,088 (FY19/20: $4,296,221). The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Arts House Limited / Annual Report FY 20/21

6.7

Notes to the Financial Statements For the financial year ended 31 March 2021.

6.7.1

6.7.2

Corporate Information

Summary of Significant Accounting Policies

Arts House Ltd. (the “Company”) is incorporated and domiciled in Singapore, limited by guarantee and does not have share capital.

6.7.2.1

The Company has been registered as a Charity, Registration No. 01658 under the Charities Act, Chapter 37 of Singapore with effect from 24 February 2003. The registered office and principal place of business of the Company is located at 28 Aliwal Street #03-07 Singapore 199918. The principal activities of the Company are: •

To manage physical facilities for the arts, to lease as well as provide venues for hire to artists, arts companies, government and corporations and to facilitate events for the same through technical support;

•

To produce and present highly accessible quality events with strong artistic value within a calendar of events; and

•

To organise and market the arts, and festivals in the promotion of the arts, including the Singapore International Festival of Arts, and to manage and develop lively arts precincts, venues, facilities and other arts platforms that support and benefit arts practitioners, organisations and the surrounding communities.

Basis of Preparation The financial statements of the Company have been prepared in accordance with the Financial Reporting Standards in Singapore (“FRS”). The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below. The financial statements are presented in Singapore Dollars (“SGD” or “$”).

6.7.2.2

Adoption of New and Amended Standards The accounting policies adopted are consistent with those of the previous financial year except that in the current financial year, the Company has adopted all the new and revised standards which are effective for annual financial periods beginning on or after 1 April 2020. The adoption of these standards did not have any material effect on the financial performance or position of the Company.

6. Our Financials

6.7.2.3

Standards Issued but Not Yet Effective The Company has not adopted the following standards that have been issued but not yet effective:

Description

Effective for annual periods beginning on or after

Amendment to FRS 116: Covid-19 Related Rent Concessions beyond 30 June 2021

1 April 2021

Amendments to FRS 103: Reference to the Conceptual Framework

1 January 2022

Amendments to FRS 16: Property, Plant and Equipment – Proceeds before intended use

1 January 2022

Amendments to FRS 37: Onerous Contracts – Cost of Fulfilling a Contract

1 January 2022

Annual improvements to FRSs 20182020

1 January 2022

Amendments to FRS 1: Classification of Liabilities as Current or Noncurrent

1 January 2023

Amendments to FRS 1 and FRS Practice Statement 2: Disclosure of Accounting Policies

1 January 2023

Amendments to FRS 8: Definition of Accounting Estimates

1 January 2023

Amendments to FRS 110 and FRS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

Date to be determined

The directors expect that the adoption of the standards above will have no material impact on the financial statements in the period of initial application.

6.7.2.4

Foreign Currency The financial statements are presented in Singapore Dollars, which is also the Company’s functional currency. Transactions and Balances Transactions in foreign currencies are measured in the functional currency of the Company and are recorded on initial recognition in the functional currency at exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the end of the reporting period. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of the reporting period are recognised in the profit or loss.

6.7.2.5

Fixed Assets All items of fixed assets are initially recorded at cost. Subsequent to recognition, fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation of an asset begins when it is available for use and is computed on a straight-line basis over the estimated useful lives of the assets as follows: Furniture and fittings Office equipment

5 - 10 years 5 years

Electrical fittings, sound and light equipment

5 years

Computers

3 years

The carrying values of fixed assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The residual values, useful life and depreciation method are reviewed at each financial year-end, and adjusted prospectively, if appropriate. 43

Arts House Limited / Annual Report FY 20/21 An item of fixed asset is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on de-recognition

of the asset is included in profit or loss in the year the asset is derecognised.

6.7.2.6

Leases The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. (a) As lessee The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities representing the obligations to make lease payments and right-of-use assets representing the right to use the underlying leased assets. (i) Right-of-use assets The Company recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-ofuse assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets is 5 years. The right-of-use assets are also subject to impairment. The accounting policy for impairment is disclosed in Note 6.7.2.7 (ii) Lease liabilities

terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the leases commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. (iii) Short-term leases and leases of low-value assets The Company applies the short-term lease recognition exemption to its short-term leases of equipment (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of equipment that are considered to be low value. Lease payments on short-term leases and leases of low value assets are recognised as expense on a straight-line basis over the lease term.

(b) As lessor At the commencement date of the lease, the Company recognises lease liabilities measured at The Company leases buildings under operating the present value of lease payments to be made leases to non-related parties. over the lease term. The lease payments include fixed payments (including in-substance fixed Leases where the Company retains substantially all payments) less any lease incentives receivables, the risks and rewards of ownership of the asset are variable lease payments that depend on an index classified as operating leases. Rental income from or a rate, and amounts expected to be paid under operating leases (net of any incentives given to the residual value guarantees. The lease payments lessees) is recognised in statement of comprehensive also include the exercise price of a purchase income on a straight-line basis over the lease term. option reasonably certain to be exercised by the Company and payments of penalties for 44

6. Our Financials Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. The accounting

policy for rental income is set out in Note 6.7 2.14. Contingent rents are recognised as revenue in the period in which they are earned.

6.7.2.7

Impairment of Non-financial Assets the asset is considered impaired and is written down to The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any its recoverable amount. indication exists, or when an annual impairment testing for an asset is required, the Company makes an estimate Impairment losses are recognised in profit or loss. of the asset’s recoverable amount. A previously recognised impairment loss is reversed An asset’s recoverable amount is the higher of an asset’s only if there has been a change in the estimates used to determine the asset’s recoverable amount since the or cash-generating unit’s fair value less costs of disposal last impairment loss was recognised. If that is the case, and its value in use and is determined for an individual the carrying amount of the asset is increased to its asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or recoverable amount. That increase cannot exceed the group of assets. Where the carrying amount of an asset or carrying amount that would have been determined, net cash-generating unit exceeds its recoverable amount, of depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit or loss.

6.7.2.8

Financial Instruments (a) Financial assets Initial recognition and measurement Financial assets are recognised when, and only when, the entity becomes a party to the contractual provisions of the instruments. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Trade receivables are measured at the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third party, if the trade receivables do not contain a significant financing component at initial recognition. Subsequent measurement Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the contractual cash flow characteristics of the asset. The three measurement categories for classification of debt instruments are:

Amortised cost Financial assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the assets are derecognised or impaired, and through amortisation process. De-recognition A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On de-recognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit or loss. (b) Financial liabilities Initial recognition and measurement Financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions of the financial instrument. The Company determines the classification of its financial liabilities at initial recognition.

Arts House Limited / Annual Report FY 20/21 All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs. Subsequent measurement After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.

De-recognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

6.7.2.9

Impairment of Financial Assets The Company recognises an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit and loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flow will include cash flows from the sale of collateral held or other credit enhancement that are integral to the contractual terms. ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a “12-month ECL”). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of the timing of a default (a “lifetime ECL”).

For trade receivables and unbilled receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on a lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

6.7.2.10

6.7.2.11

Cash and Cash Equivalents

Provisions

Cash and cash equivalents comprise cash at bank and on hand and demand deposits that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value.

Provisions are recognised when the Company has 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 the amount of the obligation can be estimated reliably. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

6. Our Financials

6.7.2.12

Grants Grants received are from the government and its related agencies.

Grants received from the National Arts Council for capital expenditure are taken to the deferred capital grants account upon the utilisation of the grants for purchase of fixed assets, which are capitalised, or to income or expenditure for purchase of fixed assets which are written off in the year of purchase.

Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received, and all attaching conditions will be complied with. Where the grant relates to an asset, the fair value is recognised as deferred capital grant on the balance sheet Deferred capital grants are recognised as income and is amortised to profit or loss over the expected useful over the periods necessary to match the depreciation, life of the relevant asset by equal annual instalments. amortisation, write-off and/or impairment loss of the fixed assets purchased with the related grants. Upon Government grant shall be recognised in profit or loss on the amortisation or disposal of fixed assets, the balance a systematic basis over the periods in which the entity of the related deferred capital grants is recognised as recognises as expenses the related costs for which the income to match the carrying amount of the fixed assets grants are intended to compensate. Operating grants disposed of. are recognised in profit or loss when received or when recognition criteria are fulfilled.

6.7.2.13

6.7.2.14

Employee benefits

Revenue

(a) Defined contribution plans The Company makes contributions to the Central Provident Fund (“CPF”) scheme in Singapore, a defined contribution pension scheme. A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Contributions to defined contribution pension schemes are recognised as an expense in the period in which the related service is performed.

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

(b) Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (c) Employee leave entitlement Employee entitlements to annual leave are recognised as a liability when they are accrued to employees. The estimated liability for leave is recognised for services rendered by employees up to the end of the reporting period.

Revenue is recognised when the Company satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation. (a) Rental income and service charge Rental income and service charge arising from sub-letting of lease buildings is accounted for on a straight-line basis over the lease terms on ongoing leases. (b) Landlord spaces service charge Landlord spaces service charge is recognised on a straight-line basis over the period where spaces are occupied by the landlords. (c) Venue hire Venue hire is recognised over time, over the period of hire. (d) Programming events income Programming events income are recognised at a point in time, after the show/event has been completed. 47

Arts House Limited / Annual Report FY 20/21 (e) Cash sponsorships, contributions and donations Cash sponsorships, contributions and donations are recognised on a receipt basis, except for those made for specified purposes, which are recognised to match the specified expenditure when incurred.

(f) Interest income Interest income is recognised using the effective interest method. (g) Carpark income Carpark income is recognised at a point in time, when the carpark facilities is utilised.

6.7.2.15

Taxes The Company has been registered as a charity under the Charities Act. According to Section 13(1)(zm) of the

Singapore Income Tax Act, the income of the Company will be exempted from tax.

6.7.2.16

Contingencies A contingent liability is: (a) A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or (b) A present obligation that arises from past events but is not recognised because: (i)

It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent liabilities and assets are not recognised on the balance sheet of the Company, except for contingent liabilities assumed in a business combination that are present obligations and which the fair values can be reliably determined.

(ii) The amount of the obligation cannot be measured with sufficient reliability.

6.7.3

Significant Accounting Judgments and Estimates The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. Uncertainty about these assumptions and estimates could result in outcomes that could require a material

adjustment to the carrying amount of the asset or liability affected in the future periods. Management is of the opinion that there is no significant judgement made in applying accounting policies and no estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

6. Our Financials

6.7.4

Fixed Assets Furniture and fittings

Office equipment

Electrical Computers fittings, sound and light equipment $ $

Total

Cost At 1 April 2019 Additions Write off

454,809 10,283 –

49,110 – –

490,468 4,188 –

379,886 26,487 (20,079)

1,374,273 40,958 (20,079)

At 31 March 2020 and at 1 April 2020

465,092

49,110

494,656

386,294

1,395,152

Additions Write off

5,070 (10,662)

– (3,340)

– (1,580)

22,450 –

27,520 (15,582)

At 31 March 2021

459,500

45,770

493,076

408,744

1,407,090

Accumulated depreciation At 1 April 2019 Charge for the financial year Write off

251,728 76,311 –

39,581 6,696 –

346,444 90,768 –

274,405 70,325 (20,079)

912,158 244,100 (20,079)

At 31 March 2020 and at 1 April 2020

328,039

46,277

437,212

324,651

1,136,179

Charge for the financial year Write off

76,581 (10,662)

1,416 (3,340)

32,566 (1,580)

52,524 –

163,087 (15,582)

At 31 March 2021

393,958

44,353

468,198

377,175

1,283,684

At 31 March 2020

137,053

2,833

57,444

61,643

258,973

At 31 March 2021

65,542

1,417

24,878

31,569

123,406

Net carrying amount

Arts House Limited / Annual Report FY 20/21

6.7.5

Trade and Other Receivables FY20/21 $

FY19/20 $

316,722 – 316,722

524,375 (24,062) 500,313

Deposits Other receivables

139,434 1,409,960

144,434 643,531

Total trade and other receivables

1,866,116

1,288,278

Less: Government grants receivable Add: Unbilled receivables Add: Cash and bank balances (Note 6.7.6)

– 143,077 18,183,093

(616,244) 73,473 15,938,339

Total financial assets carried at amortised cost

20,192,286

16,683,846

Trade receivables Less: Impairment losses

Trade receivables are non-interest bearing and are generally on 14 to 30 days’ terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. Other receivables included an amount of $nil (FY19/20: $616,244) government grants receivable in relation to Job Support Scheme (“JSS”) (Note 6.7.11).

Unbilled receivables arose from venue hire income earned but has yet to be billed to customers. These are unconditional right to consideration for service completed but not yet billed at reporting date. It is transferred to trade receivable when invoice is issued.

Expected Credit Losses The movement in allowance for expected credit losses of trade receivables and other receivables and unbilled receivables computed based on lifetime ECL are as follows: Movement in allowance accounts:

FY20/21 $

FY19/20 $

At 1 April Charge for the financial year Write back during the financial year Write off

24,062 555,209 (577,804) (1,467)

219,807 24,062 (93,686) (126,121)

–

24,062

At 31 March

6. Our Financials

6.7.6

Cash and Bank Balances FY20/21 $

FY19/20 $

Cash at banks and on hand Short-term deposits

5,972,836 4,000,000

1,934,154 6,994,070

Total cash and cash equivalents

9,972,836

8,928,224

Long-term deposits

8,210,257

7,010,115

18,183,093

15,938,339

Total cash and bank balances Short-term deposits are placed for varying periods of between 1 month and 3 months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates. The weighted average effective interest rate of short-term deposits is 0.40% (FY19/20: 0.88% to 1.52%) per annum.

Long-term deposits are placed for varying periods of between 4 months and 12 months, depending on the immediate cash requirements of the Company, and earn interest at the respective long-term deposit rates. The weighted average effective interest rate of long-term deposits is 0.05% to 0.40% (FY19/20: 1.30% to 1.40%) per annum.

6.7.7

Trade and Other Payables FY20/21 $

FY19/20 $

Trade payables Accrued operating expenses Amount due to cultural matching fund Other payables GST payables Rental deposits Security deposits

1,417,771 2,924,568 – 11,248 61,583 507,952 156,761

1,101,550 3,377,018 951,830 25,799 84,341 578,696 183,549

Total trade and other payables

5,079,883

6,302,783

(61,583)

(84,341)

18,672 45,047

17,148 59,698

5,082,019

6,295,288

Less: GST payables Add: Lease liabilities - Current - Non-current Total financial liabilities carried at amortised cost Trade payables are non-interest bearing and are normally settled on 30 days’ term. Other payables are non-interest bearing and have an average term of 30 days.

In relation to the potential grants clawback payable to Cultural Matching Fund (“CMF”) amounting to $951,830, CMF Trustee has notified the Company on the full waiver of clawback. This included $347,089 of CMF income that was reversed in prior year that the Company has recognised as income in the current year (Note 6.7.13).

Arts House Limited / Annual Report FY 20/21 FY20/21 $

FY19/20 $

24,603 2,109 – 253 4,438

– 1,220 8,342 – –

FY20/21 $

FY19/20 $

735,274

1,272,028

FY20/21 $

FY19/20 $

Cost At 1 April Additions

690,597 130,262

690,597 –

At 31 March

820,859

690,597

Accumulated amortisation At 1 April Amortisation

661,197 9,800

593,194 68,003

At 31 March

670,997

661,197

Net carrying amount Current Non-current

35,853 114,009

9,800 19,600

149,862

29,400

Trade payables denominated in foreign currencies as at 31 March are as follows: United States dollars Euro Australian dollars Japanese yen Swiss franc

6.7.8

Contract Liabilities Contract liabilities primarily relate to the Company’s obligation to transfer services to customers for which the Company has received advances from customer for venue hire services that have yet to be provided. Set out below is the amount or revenue recognised from:

Amounts included in contract liabilities at the beginning of the year

6.7.9

Deferred Capital Grant

Deferred capital grant relates to grants received from the National Arts Council for the renovation works and replacement of theatre, lighting, audio, visual and communication systems at The Arts House building and 52

for the procurement of a sound console system at Drama Centre. The grants are deferred and amortised using straight line method over the useful lives of renovation and equipment of 5 to 10 years.

6. Our Financials

6.7.10

Right-of-Use Assets and Lease Liabilities Company as a Lessee The Company has lease contracts for its photocopiers, which has a lease term of 5 years. The lease contract does not include an extension option, termination option and variable payments. The Company also had lease of photocopiers with lease terms of less than 12 months. The Company applies the “short-term lease” recognition exemption for these leases. (a) Right-of-use assets The carrying amounts of right-of-use assets and the movements during the year are as follows:

At 1 April Additions Charge for the financial year

Office Equipment FY20/21 FY19/20 $ $ 76,344 5,271 (18,911)

– 88,089 (11,745)

62,704

76,344

FY20/21 $

FY19/20 $

76,846 5,271 1,482 (19,880)

– 88,089 1,109 (12,352)

At 31 March

63,719

76,846

Current Non-current

18,672 45,047

17,148 59,698

FY20/21 $

FY19/20 $

Depreciation of right-of-use assets Interest expense on lease liabilities Lease expense not included in lease liabilities: - Expenses relating to short-term leases (included in other operating expenditure)

18,911 1,482

11,745 1,109

234

9,238

Total amount recognised in statement of comprehensive income

20,627

22,092

At 31 March (b) Lease liabilities The carrying amounts of lease liabilities and the movements during the year are disclosed as follows:

At 1 April Additions Accretion of interest Payments

The Company had total cash outflow for leases of $20,114 had non-cash additions to right-of-use assets and lease (FY19/20: $21,590) during the year. The Company also liabilities of $5,271 (FY19/20: $88,089) during the year. 53

Arts House Limited / Annual Report FY 20/21 Company as a Lessor The Company have entered into commercial leases to sublet its leased buildings. These non-cancellable leases have remaining non-cancellable lease terms of between 1 month and 3 years. Minimum lease receipts recognised as an income in profit or loss for the financial year ended 31 March 2021 amounted to $2,467,913 (FY19/20: $2,940,682). The future minimum lease payments receivable under non-cancellable operating leases as at 31 March are as follows:

Within one year More than one year

FY20/21 $

FY19/20 $

1,922,654 2,136,000

1,103,233 1,078,936

4,058,654

2,182,169

6.7.11

Grants and Donations Received in Advance Grants and donations received in advance relate to grants received from Ministry of Culture, Community and Youth (“MCCY”) under the “Cultural Matching Fund” (“CMF”), programming grant, IT digitalisation grant from the National Arts Council, job support scheme and donations meant for specific programmes. As the expenditure has not been fully incurred as of the end of the reporting period, the grants and donations are not utilised and therefore are recognised as grants and donations received in advance.

on the gross monthly wages of each local employee for 10 months computed based on October 2019 to August 2020 (exclude January 2020) monthly wages and 10% to 50% of the same in the subsequent 7-month period from September 2020 to March 2021, subject to a monthly wage cap of $4,600 per employee.

The grant is recognised in the statement of comprehensive income over the periods in which the Company recognises as expenses the salary costs during the period of economic uncertainty for which Grants received in advance also includes the Job Support the grant is intended to compensate. The economic Scheme (“JSS”) which provide wage support to employers uncertainty is determined by the Company to be to help the Company to retain their local employees throughout the year. As at 31 March 2021, the total during the period of economic uncertainty. Under this amount of $3,012,706 was recognised as grants received scheme, the Company will receive 25% to 75% cash grant in advance and grants receivable.

6. Our Financials

6.7.12

Income

Venue hire Programming events income Carpark Service charge Landlord spaces service charge Rental income

Timing of transfer of goods or services At a point in time Over time

6.7.13

FY20/21 $

FY19/20 $

1,686,373 134,466 71,896 625,251 1,065,920 776,742

5,165,803 622,012 147,460 712,987 952,657 1,275,038

4,360,648

8,875,957

206,362 4,154,286

769,472 8,106,485

4,360,648

8,875,957

FY20/21 $

FY19/20 $

347,089 315,372 240,206 119,618 4,800 39,130

– 121,558 – 243,968 36,000 36,777

1,066,215

438,303

Other Income

Waiver of CMF grant clawback (Note 6.7.7) Employment Credit Scheme from Government Waiver of penalty fee Interest income License fee income Others

Included in other income is a reversal of provision for penalty to IRAS of $240,206 (FY19/20: $nil) made by the Company in the prior year. IRAS has completed their review of tax-deductible receipts and will offer tax remissions with no penalty to the Company.

6.7.14

Staff and Related Expenses

Short-term employee benefits: - Staff - Key management personnel Central Provident Fund contributions: - Staff - Key management personnel Total staff and related expenses

FY20/21 $

FY19/20 $

8,867,674 560,736

7,895,953 586,427

908,712 36,687

1,278,601 34,668

10,373,809

9,795,649 55

Arts House Limited / Annual Report FY 20/21

6.7.15

Other Operating Expenditure The following charges are included in other operating expenditure:

GST expense Minor assets expensed off Professional fees Recruitment fees

FY20/21 $

FY19/20 $

622,888 37,889 246,388 111,094

582,885 66,087 298,255 98,328

FY20/21 $

FY19/20 $

14,495,150 714,064 248,016 40,204 4,300,088

15,100,000 239,000 211,856 – 4,296,221

19,797,522

19,847,077

6.7.16

Grants

Operating grants from NAC Programming grants from NAC IT digitalisation grants from NAC Emplacement grants from NAC Market rental subvention

Grants received are mainly from National Arts Council and are on voluntary basis. Contributions received are to be utilised for the operating needs of the Company. The grants received were subjected to terms and conditions.

6.7.17

Income Tax No provision has been made for tax as the Company is exempted from tax in accordance with Section 13(1)(zm) of the Singapore Income Tax Act.

Management is not aware of any non-fulfilment of terms and conditions that will affect the amounts as disclosed. Market rental subvention represents government grants for market rental of buildings under management by the Company.

6. Our Financials

6.7.18

Related Party Transactions In addition to related party transactions disclosed elsewhere in the financial statements, the following significant transactions between the Company and (a) Services rendered and grants received

Income and Grants Programming grant to The Arts House Programming grant to Civic District Programming grant to Golden Point Award Market rental subvention IT digitalisation grants Emplacement grants Operating grants Service charge Venue hire Other income Expenses Rental of building (b) Compensation of key management personnel

Amounts paid to director and other key management personnel of the Company: - Short-term employee benefits - Central Provident Fund contributions

(c) Other transactions with key management personnel Donations received from directors Venue hire income earned from a director

related parties took place during the year at terms agreed between the parties.

FY20/21 $

FY19/20 $

362,739 219,325 132,000 4,300,088 248,016 40,204 14,495,150 803,761 45,606 3,416

239,000 – – 4,296,221 211,856 – 15,100,000 653,787 89,800 13,374

4,300,088

4,296,221

FY20/21 $

FY19/20 $

560,736 36,687

586,427 34,668

597,423

621,095

FY20/21 $

FY19/20 $

4,500 –

14,000 3,585

4,500

17,585

6.7.19

Financial Risk Management Objectives and Policies The Company is exposed to financial risks arising from its operations and the use of financial instruments. The main risks arising from the Company’s financial instruments are credit risk and liquidity risk. The Company does not use

derivatives and other instruments in its risk management activities. The Company does not hold or issue derivative financial instruments for trading purposes.

Arts House Limited / Annual Report FY 20/21 The Company considers available reasonable and supportive forwarding-looking information which includes the following indicators:

Risk management is carried out under policies approved by the Board of Directors. The board provides guidelines for overall risk management, as well as policies for managing each of the risks as summarised below. The following sections provide details regarding the Company’s exposure to the above-mentioned financial risks and the objectives, policies and processes for the management of these risks. (a) Credit Risk Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Company’s exposure to credit risk arises primarily from its trade receivables and unbilled receivables. For other financial assets (including cash at banks), the Company minimises credit risk by dealing exclusively with high credit rating counterparties.

•

Actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower’s ability to meet its obligations.

The following are credit risk management practices and quantitative and qualitative information about amounts arising from expected credit losses for each class of financial assets.

The Company has determined the default event on a financial asset to be when the external or internal information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company.

The Company provides for lifetime ECLs for all trade receivables and unbilled receivables using a provision matrix. The provision rates are determined based on the Company’s historical observed default rates analysed in accordance to 90 days’ past due. The ECLs also incorporate forward looking information such as forecast of economic conditions which show the probability of defaults in the relevant industry of debtors.

To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at reporting date with the risk of default as at the date of initial recognition.

Current

Internal credit rating; and

Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 90 days past due in making contractual payout. The Company determined that its financial assets are credit-impaired when there is significant difficulty of the debtor. Financial assets are written off when there is evidence indicating that the debtor is in severe financial difficulty and the debtor has no realistic prospect of recovery.

The Company considers the probability of default upon initial recognition of an asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period.

Unbilled receivables

•

Summarised below is the information about the credit risk exposure on the Company’s trade receivables using provision matrix:

FY20/21 Gross carrying amount Loss allowance provision

Up to 30 days past due $

143,077

238,491

42,726

3,709

339

31,457

459,799

–

FY19/20 Gross carrying amount Loss allowance provision

73,473

229,547

138,274

110,154

19,260

27,140

597,848

–

(24,062)

More than More than 30 days 60 days past due past due $ $

More than 90 days past due $

Total $

6. Our Financials (b) Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting its financial obligations due to shortage of funds. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Company’s operations and to mitigate the effects of fluctuations in cash flows.

Surplus funds are placed with reputable banks with staggered maturities. Analysis of financial instruments by remaining contractual maturities The table below summaries the maturity profile of the Company’s financial assets and liabilities at the end of reporting period based on contractual undiscounted repayment obligations.

1 year or less $

More than one year $

Total $

Trade and other receivables (excluding government grant receivable) Unbilled receivables Cash and bank balances

1,866,116 143,077 18,183,093

– – –

1,866,116 143,077 18,183,093

Total undiscounted financial assets

20,192,286

–

20,192,286

Financial liabilities Trade and other payables (excluding GST payable) Lease liabilities

5,018,300 19,776

– 43,943

5,018,300 63,719

Total undiscounted financial liabilities

5,038,076

43,943

5,082,019

15,154,210

(43,943)

15,110,267

Trade and other receivables (excluding government grant receivable) Unbilled receivables Cash and bank balances

672,034 73,473 15,938,339

– – –

672,034 73,473 15,938,339

Total undiscounted financial assets

16,683,846

–

16,683,846

Financial liabilities Trade and other payables (excluding GST payable) Lease liabilities

6,218,442 18,528

– 61,760

6,218,442 80,288

Total undiscounted financial liabilities

6,236,970

61,760

6,298,730

10,446,876

(61,760)

10,385,116

FY20/21 Financial assets

Total net undiscounted financial assets FY19/20 Financial assets

Total net undiscounted financial assets

Arts House Limited / Annual Report FY 20/21

6.7.20

General Funds FY20/21 $

FY19/20 $

Unrestricted funds (Reserves): - General fund

10,257,544

9,670,630

Total funds

10,257,544

9,670,630

1 : 2.47

1 : 3.08

Ratio of reserves to annual operating expenditure The reserves that the Company have set aside provide financial stability and the means for the development of its principal activities.

The board of directors regularly reviews the amount of reserves that are required to ensure that they are adequate to fulfil the Company’s continuing obligations.

6.7.21

Authorisation of Financial Statements The financial statements of the Company for the financial year ended 31 March 2021 were authorised for issue in accordance with a resolution of the directors on 16 September 2021.