Arts House Limited Annual Report FY22/23

Annual Report For the year ended 31 March 2023

Singapore International Festival of Arts 2022 Opening Performance - MEPAAN

Table of Contents 01

Chairman’s Message

05

02

Highlights FY 22/23

08

03

Corporate Overview

14

3.1

Vision

17

3.2

Mission

17

3.3

Core Values

18

3.4

Our Board

20

3.4.1

Board Committees

22

3.4.1.1

Audit and Risk Management Committee

24

3.4.1.2

Finance Committee

24

3.4.1.3

Programming Committee

25

3.4.1.4

Human Resource Committee

26

3.4.1.5

Board Meetings

27

3.4.1.6

Conflict of Interest

27

3.4.1.7

Strategic Planning

27

04

3.5

Corporate Milestones

28

3.6

Organisational Chart & Structure

30

3.7

Our People

32

3.8

Financial Management & Controls

34

3.8.1

Funding Sources

34

3.8.2

Budget Planning and Monitoring

34

3.8.3

Capital Asset Management

34

3.8.4

Reserves Management

34

3.8.5

Disclosure & Transparency

35

Venues & Programming Capabilities

36

4.1

The Arts House (TAH)

38

4.1.1

Monstrous Fun!

38

4.1.2

VERSE

38

4.1.3

StoryFest

39

4.1.4

Textures: Arrived Home

39

4.2

4.3 4.4

Aliwal Arts Centre (AAC)

40

4.2.1

Off the Blocks!!!

40

4.2.2

Aliwal Urban Art Festival

41

Goodman Arts Centre (GAC)

42

4.3.1

42

Goodman Open House

Stamford Arts Centre (SAC)

43

4.4.1

43

A Date with Tradition

05

Singapore International Festival of Arts

44

06

Our Cultural Medallion Story

48

07

Singapore Writers Festival

52

08

Stakeholders & Corporate Partners

56

8.1

Civic District Placemaking

57

8.1.1

The Civic Distric Celebrates National Day

58

8.1.2

Discover the Civic District with New Sparky Campaign at MRT Stations

59

8.1.3

School’s Out, Sidecars’s In! Campaign

60

8.2 09

10

Saluting Our Sponsors & Partners

61

Our Commercial Spaces

62

9.1

Attracting New Tenants Into Our Spaces

63

9.1.1

BFT Katong @ Goodman Arts Centre

63

9.1.2

Ureshii @ The Arts House

64

9.1.3

Brasserie Astoria @ Victoria Theatre & Victoria Concert Hall

65

Future Programming & Fundraising Plans

66

10.1 Singapore International Festival of Arts 2023

67

10.2 June Holiday Programmes

68

10.3 Civic District Benchmarks

69

10.4 Singapore Writers Festival 2023

70

10.5 A Date with Tradition 2023

70

10.6 Golden Point Award 2023

71

10.7 Textures & Aliwal Urban Art Festival 2024

71

11

Governance Evaluation Checklist

72

12

Our Financials

80

0

01 CHAIRMAN’S MESSAGE

CHAIRMAN’S MESSAGE

05

2022 saw the lifting of restrictions and border measures, which heralded a new era of artistic revival and the comeback of live events. With a renewed sense of purpose, AHL resumed full-scale editions of our key international festivals and programmes, rolled out new placemaking initiatives, and welcomed back a multitude of visitors to our six arts venues.

The Singapore International Festival of Arts (SIFA) 2022 showcased over 430 local and international artists under the stewardship of Festival Director Natalie Hennedige. In the first of her three-year arc for the festival with the title “The Anatomy of Performance", Natalie drew out the versatility of artists as they emerged with new forms of artistic expression through alternative means. SIFA 2022 saw the first iteration of its virtual platform, Life Profusion, which provided space for experimentation using digital as a performance medium.

With an evocative theme If, the 25th edition of the Singapore Writers Festival (SWF) 2022 similarly marked a milestone return for the literary scene with an extended duration and line-up of over 300 programmes by more than 350 local and global authors. The festival engaged over 46,000 festivalgoers in contemplation and celebration of the word If. The six arts spaces managed by AHL-Aliwal Arts Centre, Drama Centre, Goodman Arts Centre, Stamford Arts Centre, The Arts House, and Victoria Theatre & Victoria Concert Hall–were kept vibrant and buzzy as the arts community and hirers held a wide range of activities at the venues. AHL also embraced both physical and online platforms to extend our artistic offerings; some new programmes that started in 2022 include the signature festival A Date with Tradition and Monstrous Fun! which promotes children’s literature in Singapore’s official languages.

06

As the appointed cultural place manager for the Civic District, AHL coordinated with the Civic District Alliance to launch a campaign to introduce the mascot Sparky as a guide for visitors to explore and discover the arts and culture precinct through a wayfinding app, while the School’s Out, Sidecars’s In tours were offered to allow families a fun way to explore the district.

All these achievements could not have been possible without the support of our donors, sponsors, arts community, tenants and partners. With your continued patronage, we will continue to serve our mission of bridging the arts and audiences with even more impactful initiatives through our various platforms.

Tan Wee Yan Wilson Chairman

CHAIRMAN’S MESSAGE

07

02 HIGHLIGHTS FY 22/23

A look at the highlights of 2022

HIGHLIGHTS FY 22/23

09

01

Singapore International Festival of Arts SIFA 2022 marks the first year of Natalie Hennedige’s three-year tenure as Festival Director. The Festival saw more than 430 local and international artists across over 70 performances and activities in-person and online, including 17 physical programmes, with a record number of 11 commissioned works.

10

02

Singapore Writers Festival The Festival’s 25th edition presented over 300 programmes by more than 360 local and international authors representing more than 15 countries across three weekends. It is also the first full-scale physical format since the pandemic with an outdoor Festival Village.

03

Our Cultural Medallion Story Commissioned by NAC, AHL organised a Cultural Medallion celebration reception titled to-GATHER at The Arts House, for the wider arts community to gather, celebrate the award recipients of the year and network with both past and new CMYAA recipients.

HIGHLIGHTS FY 22/23

11

04

Stamford Arts Centre After taking over the venue management of SAC in March 2022, AHL organised its inaugural signature event, titled A Date with Tradition, in conjunction with the Singapore Night Festival as part of the Bras Basah and Bugis precinct.

05

The Arts House The inaugural edition of Monstrous Fun! treated families to a long weekend of family-centric programmes that promote and celebrate children’s literature in Singapore’s official languages during the June school holidays.

12

06

Civic District Two new initiatives were launched a refresh campaign to introduce the mascot Sparky, as the Civic District guide for visitors to explore and discover the arts and culture precinct through a wayfinding app and, School’s Out, Sidecars’s In! designed to target families, inviting them to go on an exploration of the Civic District in a sidecar ride.

07

Victoria Theatre and Victoria Concert Hall A brand-new fundraising initiative Adopt a Seat was launched. Donors can adopt a seat for three years and have their name customised on a plate and affixed to a seat in the Victoria Theatre.

HIGHLIGHTS FY 22/23

13

03 CORPORATE OVERVIEW

Arts House Limited (AHL)

AHL manages six arts spaces that aim to support our arts sector and bring communities together. These include two

Orchestra.

as three enclaves for arts groups and creative businesses -

AHL organises two national pinnacle festivals – the Singapore and the

- a multilingual festival

manages

– the showcase on

artshouselimited.sg

CORPORATE OVERVIEW

15

16

Charity Registration Number:

01658 200210647W

Institution of Public Registered Address: Bankers:

DBS Bank Ltd

Auditor: Related Entities: Management:

Appointed since 1 August 2022

OUR

Vision Mission

communities through the arts in Singapore.

transforming ideas into realities through our distinctive spaces and programmes.

CORPORATE OVERVIEW

17

Our Core Values 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.

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.

18

Integrity We uphold ourselves to the highest accountable for our actions.

People-Oriented We believe in our people and recognise that and collaborating so that we can lean on and learn from one another. We also put others before self in our service to the arts.

CORPORATE OVERVIEW

19

20

CORPORATE OVERVIEW

21

22

CORPORATE OVERVIEW

23

24

CORPORATE OVERVIEW

25

Human Human Resource Resource Committee Committee oversight on executive and leadership development, reviewing and approving executive remuneration policies, approving the principles and budget for the annual salary increment

Committee members as at the end of the financial year are listed below:

Human Resource Committee Meetings Human Resource Committee Meetings

26

Name

Designation

Held

Attended

Phua Hwee Choo

Chairman

2

2

Tan Wee Yan Wilson

Member

2

2

Sarker Arijit Ranjan

Member

2

1

Board Meetings decision-making matters.

as and when their personal appointments change.

Directors are also reminded of the requirement for full and immediate disclosure in writing to the Board when a conflict of interest situation arises. If and where there is present or potential conflict the discussion and all decision-making with regard to the matter.

Strategic Planning plans relating to key AHL functions, including Asset Management and Leasing, Festival and Venue Programming, Placemaking and Partnership Development, Marketing and Communications, Corporate Facilities Management among others.

CORPORATE OVERVIEW

27

Corporate Milestones Establishment of The Old

old Parliament House which will be converted into a

Arts House Limited is manage Goodman

heritage centre.

2002

2010 2007

2013 Arts House Limited is

people. Inking of a strategic alliance between the the Edinburgh International

Understanding with the 4 June.

28

Arts House Limited is

Arts House Limited took over the organisation of the annual Singapore

Arts House Limited is

and launched a long-term showcase on the

2017

2021

2014

2020

2022

The Old Parliament House

Arts House Limited is

Arts House Limited is

renamed Arts House Limited

manage Stamford

CORPORATE OVERVIEW

29

Organisational Chart & Structure

Festival Directors Producing

Event Operations

Technical Production

30

Programmes

Rachel Chu Director, Asset Management & Leasing

Yeow Ju Li Acting Executive Director

Director, Group Facilities Management

Leasing

Yeow Ju Li Senior Director, Strategy & Planning and Corp Admin

Director, Finance

Jasmine Gan Director, Marketing & Communications

Lee Mun Ping Director, Placemaking & Partnership Development

Isniati Ali Director, Human Resources & IT

CORPORATE OVERVIEW

31

Our People 01

Driving Employee Engagement

02

Growing Competencies We are dedicated to fostering a culture of

to create a positive work environment.

Hands” town hall meetings where

with HR” sessions provide a platform for These initiatives enable us to understand

Developmental Guide. This guide offers valuable tips for development and recommends core

address them.

empower them to take charge of their own

32

Enhancing Performance Management We have put in place a robust performance management framework to drive excellence

and moderation sessions. To align with AHL’s core competencies, we have enhanced the appraisal forms. Regular feedback, are integral to our approach. We recognise and reward high performers for their contributions, motivating them to continue excelling. Simultaneously, we provide support and identify areas for improvement, fostering individual growth and development.

04

Prioritising Employee Wellbeing suite of initiatives. Our approach focuses on three key pillars: physical health, mental wellness/ Recreation and Social Committee organises regular physical activities like nature walks, yoga, and cycling. These activities promote physical fitness and provide opportunities for social interactions.

Additionally, we have introduced an Employee Assistance Programme in partnership with the Counselling and Care Centre. This programme offers confidential counselling support services to employees when needed, addressing their the organisational and team levels foster a sense of community and connection. Furthermore, we resilience, sharing valuable tips and resources.

These initiatives demonstrate our commitment our employees.

We remain dedicated to the engagement, performance, wellbeing, and growth of our employees. By creating an environment where individuals feel supported and empowered, we believe that they can thrive and contribute to AHL’s continued success.

CORPORATE OVERVIEW

33

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

Budget Planning and Monitoring The Board approves the annual budget that is closely linked to AHL’s Strategy Map for the year. Quarterly results are presented to the Board, together with comparisons to the approved budget as well as explanations for any variances.

Capital Asset Management Fixed assets are tagged and properly recorded in a fixed assets register to track any additions, disposals and movements. Physical sighting of assets is performed periodically, and the value of assets are adequately insured.

Reserves Management AHL manages its reserves in accordance with a Reserves Policy that is sustainability. Reserves are invested in Singapore Dollar fixed deposits in accordance with AHL’s Investment Policy that is also approved by the Board.

34

Disclosure & Transparency Both the Annual Report and Audited Financial Statements of AHL are published on our website at www.artshouselimited.sg. In accordance with the Code of Governance for Charities and Institutions of a Public Character, the annual remuneration of the three highest paid staff who each received more than $100,000 during the financial year is disclosed, in bands of $100,000.

Renumeration

No. of employees

$200,000 to below $300,000

3

None of the above staff serve on the Board of AHL. There is no paid staff, who are close members of the family of the Executive Head or Board members, who each received total remuneration of more than $50,000 during the year. Further details on other staffs’ remuneration and the results for the Financial Year ended 31 March 2023 can be found in the Audited Financial Statements.

During the year, there were no staff employed by AHL who are close family members of the ED and/ or Directors of the Company.

CORPORATE OVERVIEW

35

04 VENUES & PROGRAMMING CAPABILITIES

AHL manages six arts spaces that aim to support our arts sector and bring communities together. These include two national monuments - The Arts House, a multidisciplinary arts centre, and Victoria Theatre & Victoria Concert Hall, a heritage building that is home to the Singapore Symphony Orchestra.

It also runs the performing arts space Drama Centre as well as three enclaves for arts groups and creative businesses - the Goodman Arts Centre, Aliwal Arts Centre and Stamford Arts Centre. Each of our diverse venue spaces delivers unique arts experiences through our signature programmes.

In addition, AHL organises the annual Singapore International Festival of Arts (SIFA) and Singapore Writers Festival (SWF), as well as the biennial Golden Point Award (GPA). AHL also presents a long-term showcase on the Cultural Medallion at The Arts House, the highest cultural award in Singapore that recognises and celebrates the achievements of Singapore’s Cultural Medallion recipients.

In FY22, AHL leveraged both physical and online platforms to offer both physical and online programmes at The Arts House, Aliwal Arts Centre, Goodman Arts Centre and Stamford Arts Centre. AHL collaborated strategically with relevant arts partners to generate a stronger creative impact together, providing support to our arts partners and tenants at the various arts centres.

VENUE & PROGRAMMING CAPABILITIES

37

4.1

The Arts House (TAH) 4.1.1

Monstrous Fun!

Monstrous Fun! @ TAH was AHL’s family-centric programme with a focus on literary arts in Singapore. Monstrous Fun! treated families to a long weekend of programmes that promote and celebrate children's literature in Singapore's official languages during the school holidays from 17 to 19 June 2022.

4.1.2

VERSE

VERSE showcased multilingual programmes of our partners in the literary arts by offering support such as presentation venues to grow audiences and foster multicultural understanding.

Singapore writing was featured in various forms such as through poetry recital, prize award, panel talk, from end July to early October 2022 with partners such as Poetry Festival Singapore, Sing Lit Station and Singapore Book Council.

38

4.1.3

StoryFest

The sixth edition of StoryFest returned to TAH from 19 to 21 August 2022. Presented by The Storytelling Centre Limited and AHL, StoryFest brought six storytellers from varied backgrounds together for Story Threads: The Singapore Showcase. The Singapore Showcase saw StoryFest alumni Verena Tay, Stephanie Dogfoot, Hafiz Rashid, Melizarani T. Selva and newcomers Daryl Qilin Yam and Wesley Leon Aroozoo work their magic to enthral audiences with tales of love, loss, legend, and lore. Excerpts of the six stories were also made available on the StoryFest YouTube channel till March 2023.

4.1.4

Textures: Arrived Home

First launched in 2018, Textures is an annual programme that celebrates the power and beauty of words through the promotion of Singapore Literature. Following the reopening of TAH to the public, TAH returned as the main base for Textures 2023 from 6 to 15 January 2023, in conjunction with the Light to Night Festival, with a myriad of literary arts programmes. Textures continued with its outreach at the heartlands with public programmes at the Ang Mo Kio Public Library, Woodlands Regional Library and National Gallery Singapore across the two festival weekends. In addition, Textures extended its run from 10 to 12 February 2023 at SAFRA Toa Payoh.

VENUE & PROGRAMMING CAPABILITIES

39

4.2

Aliwal Arts Centre (AAC) In continuation of promoting and redefining Singapore’s urban art and placemaking efforts for Kampong Gelam, AHL organised Off the Blocks!!! and Aliwal Urban Art Festival in September 2022 and January 2023 respectively at AAC.

4.2.1

Off the Blocks!!!

Off the Blocks!!! is a multidisciplinary exhibition on street art held from 28 September to 2 October 2022. It was organised in conjunction with Glamboyant, the Grand Prix Season 2022 precinct activation of Kampong Gelam by Singapore Tourism Board and Urban Redevelopment Authority.

Produced by AAC tenant RSCLS, and curated by artist Zero (from RSCLS), the exhibition featured works by 22 artists and a live graffiti painting showcase by two emerging artists as well as curatorial tours by Zero.

40

4.2.2 2.1.1

Aliwal Urban Art Festival

Held as part of the Singapore Art Week, Aliwal Urban Art Festival returned as an in-person festival on 14 January 2023. The festival showcased Singapore’s vibrant urban culture through an array of activities which included an exhibition, live graffiti painting, music and dance performances, and a popup artists’ market. These featured the Centre’s artist tenants and project studio hirers as well as renowned local and regional performers and artists of different urban art practices.

VENUE & PROGRAMMING CAPABILITIES

41

4.3

Goodman Arts Centre (GAC) 4.3.1

Goodman Open House

Goodman Open House returned in physical format on 25 June 2022. Held within Singapore’s largest arts enclave and aimed at promoting GAC through an annual platform for the Centre’s artist tenants and hirers to express their creativity collectively, the Goodman Open House showcased a multidisciplinary array of performances, in studio sessions, open studio visits, hands-on workshops and all-day fringe events that were well received by families and children.

42

4.4

Stamford Arts Centre (SAC) 4.4.1

A Date with Tradition

After taking over the venue management of SAC in March 2022, AHL organised its inaugural signature event, titled A Date with Tradition, in conjunction with the Singapore Night Festival as part of the Bras Basah and Bugis precinct. With activities ranging from performances, hands-on activities to demonstrations, audiences were able to experience and engage with traditional arts over the two evenings on 26 and 27 August 2022. The festival showcased all the SAC tenants such as Shantha Ratii Initiatives, P7:1SMA and Traditional Arts Centre, as well as other arts groups such as the SwaRhythm Ensemble and Paper Monkey Theatre.

VENUE & PROGRAMMING CAPABILITIES

43

05 SINGAPORE INTERNATIONAL FESTIVAL OF ARTS

The 2022 edition of Singapore International Festival of Arts (SIFA) saw a bold new direction as the first of Festival Director Natalie Hennedige’s 3-year curatorial arc under the recurring title The Anatomy of Performance. Presenting brand new works which had been carefully curated, imagined and developed in the past two years during the pandemic, SIFA 2022 dived deep into the notion of Ritual in new and contemporary ways through three programme platforms of CREATION, SIFA X and LIFE PROFUSION.

SINGAPORE INTERNATIONAL FESTIVAL OF ARTS

45

CREATION catalysed a strong comeback of live performances across the island since the lifting of restrictions for performance venues in Singapore in March 2022 for the first time in over two years. 11 out of 17 new programmes featured were Festival commissions led by local artists and collectives.

These included Bangsawan Gemala Malam, a reimagining of Shakespeare’s A Midsummer Night’s Dream blended with the bangsawan artform, and ubin, a site-specific performance that took participants on a sunset ‘pilgrimage’ around the island itself to unearth stories of residents past and present, and play a fictional part in deliberating its future.

SIFA X brought the magic of outdoor live performances and injected transformational energy within Goodman Arts Centre and Aliwal Arts Centre with music, dance and installation, curated by artist and Goodman Arts Centre’s tenant Andy Chia of SAtheCollective.

46

SIFA continued to deepen audience engagement via a virtual stage, LIFE PROFUSION, which showcased bite-sized digital content filled with fresh expressions of performance in music, moving images and writing.

As international travel to Singapore was still picking up, the Festival ensured three of the commissions (MEPAAN, Ceremonial Enactments and Bangsawan Gemala Malam) could still be seen online by a global audience.

More than 430 local and international artists were involved in this year’s SIFA programming across 70 performances and activities held in-person and online.

SINGAPORE INTERNATIONAL FESTIVAL OF ARTS

47

06 OUR CULTURAL MEDALLION STORY

Commissioned by National Arts Council (NAC), Our Cultural Medallion Story is a showcase by AHL to recognise and celebrate the achievements of the Cultural Medallion (CM) recipients.

OUR CULTURAL MEDALLION STORY

49

Located at the ground floor of The Arts House, visitors to the showcase can use a following sections: - Milestones of the CM initiative, accompanied with the display of the Medallion, lapel-pin and certificate.

- A book section in partnership with

- Digital screening of over 40 short videos

- Digital interactive quiz featuring trivia

about the CM recipients from 2004 to date.

- Digital interactive comprising more information on all CM recipients, including individual videos and/or images of artworks, news reports, etc.

over 250 published books by and related to the CM recipients.

on selected CM recipients.

- Digital check out kiosk for visitors to obtain their next ‘art-inerary’ based on their interaction with the showcase content.

Also commissioned by NAC, AHL organised a Cultural Medallion and Young Artist Award ARTS-to-GATHER at TAH on 5 December 2022, for the wider arts community to gather, celebrate the award recipients of the year and network with both past and new CMYAA recipients.

50

OUR CULTURAL MEDALLION STORY

51

07 SINGAPORE WRITERS FESTIVAL

Commisioned by NAC, AHL organised the 25th edition of Singapore Writers Festival (SWF) from 4 to 20 November 2022.

SWF is Singapore’s national literary festival that presents a diverse line-up of Singapore and international writers through highquality multidisciplinary programmes that place Singapore on the regional map.

Helmed by Festival Director Pooja Nansi, SWF 2022 presented a choice spread of panel discussions, workshops, keynote talks, lectures and performances, in which featured speakers and Festival goers engaged in contemplation and celebration of the word ‘IF’ - the theme for this edition of the Festival.

SINGAPORE WRITERS FESTIVAL

53

This edition presented Singapore-based writers and international ones, representing countries such as Canada, India, Australia, The United States of America and the United Kingdom. French writers and speakers were highlighted with the Festival’s Country Focus on France this year, and Festival goers were treated to a series of French film programmes and screenings.

For the first time, the language programmes were co-curated with the Chinese, Malay and Tamil language and literary communities and recorded strong attendance across multilingual programmes this year.

For its signature Literary Pioneer programme, the pioneering women writers of the Malay literary scene were honoured at SWF 2022, a first at a national level, with the exhibition Bukan Mungkin Lagi, Mesti! or Not an If, but a Must! co-curated by Mr Chairul Fahmy, Assistant to Editor, Berita Harian at Singapore Press Holdings, which showcased their works and contributions.

54

Popular Festival programmes included In A Tiny Room series featuring Festival headliners Jeanette Winterson and Ted Chiang, Chloe Gong: Like Fire and Powder, Cannot? and In Conversation with Claudia Rankine and Nate Marshall.

Overall, SWF 2022 presented over 300 free and ticketed events across the three weekends, including those at the first-ever Festival Village along Connaught Drive, as well as at libraries across the island, with the Festival’s first full-scale physical format since the pandemic.

It was announced in February 2023 that Pooja Nansi will continue to lead as Festival Director of the SWF for 2023. This will be Pooja’s 5th year as Festival Director.

SINGAPORE WRITERS FESTIVAL

55

08 STAKEHOLDERS & CORPORATE PARTNERS

8.1

Civic District Placemaking

We continued building on our efforts for Civic District cultural placemaking and implemented activations to strengthen precinct identity and improve connectivity.

Precinct level marketing and stakeholder engagement with members and government agencies remain as important drivers to support placemaking efforts for the Civic District Alliance.

STAKEHOLDERS & CORPORATE PARTNERS

57

8.1.1

The Civic District Celebrates National Day

As part of the annual tradition in Singapore's Civic District, the precinct radiated in celebration of the Singapore’s 57th National Day in August.

Esplanade - Theatres on the Bay

Victoria Theatre and Victoria Concert Hall

National Gallery Singapore

The Arts House

Asian Civilisations Museum

In collaboration with the Civic District Alliance comprising of the cultural landmarks – Asian Civilisations Museum, Esplanade - Theatres on the Bay, National Gallery Singapore, The Arts House, and Victoria Theatre and Victoria Concert Hall, the district’s iconic arts and culture monuments lit up in red and white, reflecting the national colours and instilling a sense of pride in the hearts of locals.

The celebration continues with the launch of the National Day Augmented Reality (AR) filter.

Complementing the light-up of the precinct’s arts and culture monuments, the National Day AR filter added an interactive digital aspect to the festivities. Through photos showcasing the illuminated monuments as the background, accompanied by 20 National Day-themed stickers, the filter enticed users to explore the precinct and to partake in the live events and happenings hosted at various venues.

58

8.1.2

Discover the Civic District with New Sparky Campaign at MRT Stations

In November 2022, the Civic District continued the collaboration with Land Transport Authority (LTA) and SMRT on a refresh campaign to introduce the mascot Sparky, as the Civic District guide for visitors to explore and discover the arts and culture precinct through a wayfinding app.

Building upon the 2021 placemaking pilot project, the initiative aims to amplify the vibrancy, awareness, and visitorship of the Civic District, enriching the experience of both locals and tourists alike.

Banner advertisements were strategically positioned within City Hall and Raffles Place MRT stations – two high-traffic stations in close proximity to the precinct.

Commuters were greeted by Sparky upon arrival, welcoming them to explore the Civic District’s offerings while immersing in the precinct’s arts and culture sights.

Each banner showcases a map of the precinct, highlighting its arts and culture monuments.

Commuters can scan the QR codes displayed on the advertisements to unlock recommended activities and offerings via the Ask Sparky Chatbot, hosted on the Civic District website.

The video - Sparky The Civic District Guide, was created to serve as an engaging showcase of the precinct's wayfinding and offerings, all accessible through the convenience of QR codes on banner advertisements or directly on the Civic District website.

STAKEHOLDERS & CORPORATE PARTNERS

59

8.1.3

School’s Out, Sidecars’s In! Campaign

In the continuous efforts of bringing vibrancy and activity to the Civic District, the precinct tapped on the March 2023 school holidays to launch the campaign, School’s Out, Sidecars’s In! Designed to target families, the initiative invites them to go on an exploration of the Civic District during the break.

The campaign allows riders to bring along their beloved pets, promising an exciting and unique experience for both riders and fur-friends alike. This limited-time event, curated by Sidecars Singapore, offers a sidecar ride through the heart of the precinct, featuring the 5 arts institutions – Asian Civilisations Museum, Esplanade - Theatres on the Bay, National Gallery Singapore, The Arts House, and Victoria Theatre and Victoria Concert Hall.

The campaign encapsulates the entire ride experience through the video - School’s Out, Sidecars’s In!, as it introduces the riders to the wonders of the Civic District while simultaneously supporting the ongoing initiative, Civic District Art Tour.

60

8.2

Saluting Our Sponsors & Partners In FY22, AHL secured a total of over $400,000 in cash contribution and $1.4million in in-kind sponsorship from 48 sponsors and donors.

For festivals sponsorship, SIFA 2022 had the support from 13 sponsors who contributed $174,000 in cash sponsorship and over a $1 million in in-kind sponsorship. SWF 2022 garnered $78,000 in cash sponsorship and over $440,000 in in-kind sponsorship from eight sponsors.

“For 100 years, Warner Bros. Discovery has championed storytelling and creativity around the world, and it was our great honour and privilege to be able to support the arts community in Singapore. Our colleagues who attended SIFA 2022 and workshops at the Goodman Arts Centre all felt richly rewarded by the great work that you do.”

Euan Lampitt Senior Director of Corporate Social Responsibility Warner Bros. Discovery

On 1 August 2022, AHL launched a brand-new fundraising initiative – Adopt a Seat at Victoria Theatre. As part of this initiative, donors could adopt a seat for three years. To acknowledge their adoption, a seat plate customised with the donor’s name is affixed to the seat they have adopted in Victoria Theatre.

This initiative aims to deepen the relationship of the community with our national monuments.

Through the seat adoption, we hope to create a sense of ownership and a vested interest in a heritage building of historical importance to Singapore.

“It is a truly special opportunity to adopt a seat in Victoria Theatre - an important historical monument that continues to contribute to the vibrancy of our community.”

L & W Tan

“Victoria Theatre is an iconic building where epochal moments in Singapore's modern history took place. As a proud Singaporean, it is my honour to donate to this worthy cause.”

Maniza Jumabhoy STAKEHOLDERS & CORPORATE PARTNERS

61

09 OUR COMMERCIAL SPACES

9.1

Attracting New Tenants into Our Spaces

9.1.1

BFT Katong @ Goodman Arts Centre

OUR COMMERCIAL SPACES

63

9.1.2

Ureshii @ The Arts House

Located on the ground floor of The Arts House, Ureshii is a new-to-market Korean-Japanese fusion dining concept owned by Chef Jang who also owns the popular Japanese restaurant, Tanoshii. The 2,239 square feet space offers an elegant and cozy setting with its exquisite and sophisticated interior, complemented by a delectable selection of curated dishes and a wide selection of sakes. Ureshii officially opens in July 2023.

64

9.1.3

Brasserie Astoria @ Victoria Theatre & Victoria Concert Hall Brasserie Astoria, a renowned Swedish brasserie opens its first-ever outpost outside of Sweden.

It spans across a floor area of more than 7,000 square feet on the ground floor of the historic Victoria Concert Hall with a grand dining room featuring 123 seats, a 22-seater bar and a lounge, and a beautiful private dining room for groups of 10 people. The brasserie officially opens in July 2023.

OUR COMMERCIAL SPACES

65

10

FUTURE PROGRAMMING & FUNDRAISING PLANS

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.

Future plans include: 10.1

Singapore International Festival of Arts 2023 Returning in May 2023 with the title The – Some People, the Festival explores people bound together collectively for some reason or other –– becoming therefore a collective protagonist. Festival Director Natalie Hennedige builds upon the foundational programming pillars of 2022 to deliver new in-person commissions and virtual programmes under CREATION, LIFE PROFUSION and SIFA X.

FUTURE PROGRAMMING & FUNDRAISING PLANS

67

10.2

June Holiday Programmes

In June 2023, Monstrous Fun! at The Arts House and the annual Goodman Open House will offer a range of literary, performing and visual arts programmes by Singapore artists suitable for families, to grow audiences and nurture interest in Singapore arts from young.

68

10.3

Civic District Benchmarks The Civic District Benchmarks, is a new public art trail commissioned by the Civic District Alliance which will be launched in August 2023. Curated by Justin Loke and designed by six Singapore-based artists, Lua Boon Kai, Joyce Beetuan Koh, Immanuel Koh, Yang Jie, Jeffrey Tan and Jason Wee, the placemaking initiative features a series of six unconventional art benches inspired by punctuation marks dotted around the arts and culture precinct. Each art bench draws from the rich heritage of the district, inviting visitors to have meaningful exchanges with themselves, other visitors, or even the surroundings while appreciating the beauty of the Civic District and its colourful stories.

FUTURE PROGRAMMING & FUNDRAISING PLANS

69

10.4

Singapore Writers Festival 2023 Featuring new and exciting Singapore and international authors, the 26th edition of the SWF takes place from 17 to 26 November 2023 with the theme Plot Twist and returns to several venues at Singapore’s vibrant Civic District, with the historic The Arts House as the main festival ground.

Audiences can expect to experience engaging conversations with some of the world’s best authors, in a variety of formats from lectures, live interviews, workshops, multi-disciplinary performances, literary tours and more.

In its effort to showcase the best of Singapore literature through its national vernacular languages of Chinese, Malay, and Tamil, SWF 2023’s language programmes will be helmed

by Guest Curators in their respective languages to continue the festival’s collaboration with local literary communities and showcase the multi-culturalism that is unique to Singapore’s literary scene within both regional and global contexts.

10.5

A Date with Tradition 2023 A Date with Tradition returns in August 2023 for a vibrant fusion of traditional art and performance at Stamford Arts Centre, held in conjunction with the Singapore Night Festival Audiences can catch performances featuring Chinese opera and classical Indian dance, or participate in the Silent Joget. They can also get their creative juices flowing with hands-on activities, have a go at Batik painting, or craft a coin knot charm to take home as a cherished memento of the festival.

70

10.6

Golden Point Award 2023 Singapore’s premier multi-lingual writing competition returns in 2023 for new or aspiring writers to showcase their writing talents. The competition offers the short story and poetry categories in Singapore’s four official languages and to celebrate 30 years of discovering creative writing Submissions to the GPA opens in April 2023.

10.7

Textures & Aliwal Urban Art Festival 2024 In January 2024, Textures will add to the late-night festivities during Light to Night Festival as it celebrates Singapore literature at TAH. In the same month, another signature event, Aliwal will continue to promote and define Singapore’s urban art and placemaking efforts for Kampong Gelam with a weekend of arts festivities at AAC as part of the Singapore 2024.

FUTURE PROGRAMMING & FUNDRAISING PLANS

71

11

GOVERNANCE EVALUATION CHECKLIST

In compliance with the Code of Governance issued by the Charity Council applicable for the current financial year, AHL has submitted the annual submissions, including the Governance Evaluation Checklist (Advanced Tier). These annual submissions are available for viewing in the Charity Portal (www.charities.gov.sg). The FY 22/23 Governance Evaluation Checklist is also included below.

S/N

Code Guidelines

Code ID

Response (select whichever is applicable )

1.1.2

Complied

Explanation (if Code guideline is not complied with)

BOARD GOVERNANCE 1

Induction and orientation are provided to incoming governing board members upon joining the Board.

Are there governing board members

Previous Executive

Yes

holding staff appointments? (skip items

Director, Tan Boon Hui

1

2 and 3 if “No”)

2

Staff does not chair the Board and does

1.1.3

Complied

1.1.5

Complied

1.1.7

Complied

not comprise more than one third of the Board.

3

There are written job descriptions for the staff’s executive functions and operational duties, which are distinct from the staff’s Board role.

4

The Treasurer of the charity (or any person holding an equivalent position in the charity, e.g. Finance Committee Chairman or a governing board member responsible for overseeing the finances of the charity) can only serve a maximum of 4 consecutive years.

If the charity has not appointed any governing board member to oversee its finances, it will be presumed that the Chairman oversees the finances of the charity.

GOVERNANCE EVALUATION CHECKLIST

73

Response (select whichever is applicable )

S/N

Code Guidelines

Code ID

5

All governing board members must

1.1.8

Complied

1.1.12

Complied

submit themselves for re‐nomination and re‐appointment, at least once every 3 years.

6

The Board conducts self evaluation to assess its performance and effectiveness once during its term or every 3 years, whichever is shorter.

Is there any governing board member

No

who has served for more than 10 consecutive years? (skip item 7 if “No”)

7

The charity discloses in its annual report

1.1.13

NA

1.2.1

Complied

2.1

Complied

2.4

Complied

3.2.2

Complied

the reasons for retaining the governing board member who has served for more than 10 consecutive years.

8

There are documented terms of reference for the Board and each of its committees.

CONFLICT OF INTEREST 9

There are documented procedures for governing board members and staff to declare actual or potential conflicts of interest to the Board at the earliest opportunity.

10

Governing board members do not vote or participate in decision making on matters where they have a conflict of interest.

STRATEGIC PLANNING 11

The Board periodically reviews and approves the strategic plan for the charity to ensure that the charity’s activities are in line with the charity’s objectives.

74

Explanation (if Code guideline is not complied with)

S/N

Code Guidelines

Code ID

12

There is a documented plan to develop

3.2.4

Response (select whichever is applicable ) Complied

Explanation (if Code guideline is not complied with)

the capacity and capability of the charity and the Board monitors the progress of the plan.

HUMAN RESOURCE AND VOLUNTEER2 MANAGEMENT 13

The Board approves documented human

5.1

Complied

5.3

Complied

5.5

Complied

resource policies for staff.

14

There is a documented Code of Conduct for governing board members, staff and volunteers (where applicable) which is approved by the Board.

15

There are processes for regular supervision, appraisal and professional development of staff.

Are there volunteers serving in the

Yes

charity? (skip item 16 if “No”)

16

There are volunteer management

5.7

Complied

policies in place for volunteers.

FINANCIAL MANAGEMENT AND INTERNAL CONTROLS 17

There is a documented policy to seek the

6.1.1

NA

The Company does not

Board’s approval for any loans,

provide any loans,

donations, grants or financial assistance

donations, grants or

provided by the charity which are not

financial assistance.

part of the charity’s core charitable programmes.

18

The Board ensures that internal controls

6.1.2

Complied

6.1.3

Complied

for financial matters in key areas are in place with documented procedures.

19

The Board ensures that reviews on the charity’s internal controls, processes, key programmes and events are regularly conducted.

GOVERNANCE EVALUATION CHECKLIST

75

Response (select whichever is applicable )

S/N

Code Guidelines

Code ID

20

The Board ensures that there is a

6.1.4

Complied

6.2.1

Complied

process to identify, and regularly monitor and review the charity’s key risks.

21

The Board approves an annual budget for the charity’s plans and regularly monitors the charity’s expenditure.

Does the charity invest its reserves (e.g.

Yes

in fixed deposits)? (skip item 22 if “No”)

22

The charity has a documented investment

6.4.3

Complied

policy approved by the Board.

FUNDRAISING PRACTICES Did the charity receive cash donations

Yes

(solicited or unsolicited) during the financial year? (skip item 23 if “No”)

23

All collections received (solicited or

7.2.2

Complied

unsolicited) are properly accounted for and promptly deposited by the charity.

Did the charity receive donations in kind

Yes

during the financial year? (skip item 24 if “No”)

24

All donations in kind received are

7.2.3

Complied

8.2

Complied

properly recorded and accounted for by the charity.

DISCLOSURE AND TRANSPARENCY 25

The charity discloses in its annual report — (a) the number of Board meetings in the financial year; and (b) the attendance of every governing board member at those meetings.

76

Explanation (if Code guideline is not complied with)

S/N

Code Guidelines

Code ID

Are governing board members

Response (select whichever is applicable )

Explanation (if Code guideline is not complied with)

No

remunerated for their services to the Board? (skip items 26 and 27 if “No”)

26

No governing board member is involved

2.2

in setting his own remuneration.

27

The charity discloses the exact

8.3

remuneration and benefits received by each governing board member in its annual report.

OR The charity discloses that no governing board member is remunerated.

Does the charity employ paid staff?

Yes

(skip items 28, 29 and 30 if “No”)

28

No staff is involved in setting his own

29

The charity discloses in its annual report

2.2

Complied

8.4

Complied

remuneration.

— (a) the total annual remuneration for each of its 3 highest paid staff who each has received remuneration (including remuneration received from the charity’s subsidiaries) exceeding $100,000 during the financial year; and (b) whether any of the 3 highest paid staff also serves as a governing board member of the charity.

The information relating to the remuneration of the staff must be presented in bands of $100,000.

OR The charity discloses that none of its paid staff receives more than $100,000 each in annual remuneration.

GOVERNANCE EVALUATION CHECKLIST

77

Response (select whichever is applicable )

S/N

Code Guidelines

Code ID

30

The charity discloses the number of

8.5

Complied

9.2

Complied

paid staff who satisfies all of the following criteria: (a) the staff is a close member of the family3 belonging to the Executive Head4 or a governing board member of the charity; (b) the staff has received remuneration exceeding $50,000 during the financial year.

The information relating to the remuneration of the staff must be presented in bands of $100,000.

OR The charity discloses that there is no paid staff, being a close member of the family3 belonging to the Executive Head4 or a governing board member of the charity, who has received remuneration exceeding $50,000 during the financial year.

PUBLIC IMAGE 31

The charity has a documented communication policy on the release of information about the charity and its activities across all media platforms.

78

Explanation (if Code guideline is not complied with)

Notes: 1

Staff: Paid or unpaid individual who is involved in the day to day operations of the charity, e.g. an Executive Director or administrative personnel.

2

Volunteer: A person who willingly serves the charity without expectation of any remuneration.

3

Close member of the family: A family member belonging to the Executive Head or a governing board member of a charity (a) who may be expected to influence the Executive Head’s or governing board member’s (as the case may be) dealings with the charity; or (b) who may be influenced by the Executive Head or governing board member (as the case may be) in the family member’s dealings with the charity.

A close member of the family may include the following: (a) the child or spouse of the Executive Head or governing board member; (b) the stepchild of the Executive Head or governing board member; (c) the dependant of the Executive Head or governing board member. (d) the dependant of the Executive Head’s or governing board member’s spouse.

4

Executive Head: The most senior staff member in charge of the charity’s staff.

GOVERNANCE EVALUATION CHECKLIST

79

12 OUR FINANCIALS

Directors’ Statement The directors 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 2023.

Opinion of the directors In the opinion of the directors, (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 2023 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.

Directors The directors of the Company in office at the date of this statement are: Tan Wee Yan Wilson Lynette Pang Hsu Lyin Madeleine Lee Suh Shin Kwok Siew Loong Kenneth Ong Han Peng Phua Hwee Choo

Lim Ying Jie Eugene Sarker Arijit Ranjan Yasmin Hannah Ramle Zulkifli bin Mohamed Amin Collin Tseng Chern Yang @ Collin Liu Chern Yang

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 1967.

Directors’ conflict of interest policy 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 when a conflict of interest situation arises.

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

On Behalf of the Board of Directors :

Tan Wee Yan Wilson Director

Ong Han Peng Director

Singapore 21 August 2023

OUR FINANCIALS

81

Independent Auditor’s Report For the financial year ended 31 March 2023 Independent auditor’s report to the members of Arts House Ltd. Report on the audit of the financial statements Opinion We have audited the financial statements of Arts House Ltd. (the “Company”), which comprise the balance sheet as at 31 March 2023, and 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.

In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the Singapore Companies Act 1967 (the “Act”), the Singapore Charities Act 1994 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 2023 and of the financial performance, changes in accumulated funds and cash flows of the Company for the financial year ended on that date.

Basis for opinion 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.

Other information Management is responsible for other information. The other information comprises the annual report, directors’ statement set out on page 81 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.

82

Responsibilities of management and directors for the financial statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act, the Charities Act and Regulations 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.

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: 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 basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

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.

OUR FINANCIALS

83

Auditor’s responsibilities for the audit of the financial statements (cont’d) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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, and the Charities Act and Regulations.

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 21 August 2023

84

Balance Sheet As at 31 March 2023 Note

FY22/23 $

FY21/22 $

4 10

706,117 29,032

969,278 43,893

735,149

1,013,171

888,500 215,185 143,870 17,388,562

1,174,949 191,279 133,836 16,820,973

18,636,117

18,321,037

19,371,266

19,334,208

5,937,189 811,250 142,848 22,399 33,333 1,819,878

5,360,081 691,924 136,670 19,049 101,324 2,230,247

8,766,897

8,539,295

9,869,220

9,781,742

382,202 7,566 25,012

472,283 25,998 58,345

414,780

556,626

Total liabilities

9,181,677

9,095,921

Net assets

10,189,589

10,238,287

10,189,589

10,238,287

10,189,589

10,238,287

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

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

5

6

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

7 8 9 10 11

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

Equity General funds Accumulated surplus

9 10

20

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

OUR FINANCIALS

85

Statement of Comprehensive Income For the financial year ended 31 March 2023 Note

FY22/23 $

FY21/22 $

12 12 12 12 12 12

5,925,702 382,016 121,292 861,282 1,102,280 1,523,089 103,852

4,721,869 382,404 93,312 776,551 1,100,353 851,024 495,403

229,024 1,507,937 1,557,918

75,431 1,156,956 3,397,739

13,314,392

13,051,042

Art programming expenses Marketing and publicity expenses

(6,217,285) (2,838,594)

(6,242,410) (2,814,467)

Building rental expenses

(4,646,922)

(4,303,142)

Property maintenance and utilities expenses

(7,331,606)

(7,026,645)

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 Other income

13

Total income Expenditure

Depreciation of fixed assets and right -of-use assets

(296,008)

(217,911)

Venue hire and tenancy expenses

(1,270,096)

(1,001,507)

(12,266,088) (1,793,706)

(12,186,242) (1,420,804)

Total expenditure

(36,660,305)

(35,213,128)

Deficit before grants

(23,345,913)

(22,162,086)

23,141,275 155,940

22,073,520 69,309

(48,698)

(19,257)

–

–

(48,698)

(19,257)

Staff and related expenses Other operating expenses

Grants Amortisation of deferred capital grant

14 15

16 9

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

17

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

86

Statement of Changes in Accumulated Funds For the financial year ended 31 March 2023 General Funds $ At 1 April 2021 Net deficit for the financial year, representing total comprehensive income for the financial year

10,257,544 (19,257)

At 31 March 2022

10,238,287

At 1 April 2022

10,238,287

Net deficit for the financial year, representing total comprehensive income for the financial year At 31 March 2023

(48,698) 10,189,589

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

OUR FINANCIALS

87

Cash Flow Statement For the financial year ended 31 March 2023 FY22/23 $

FY21/22 $

(23,345,913)

(22,162,086)

4,646,240 296,008

4,303,142 217,911

(1,322) 30 10,825 (149,787) 766

1,904 – – (39,980) 1,104

(18,543,153)

(17,678,005)

323,478 (15,413) (10,034) 577,108 119,326

697,756 (48,202) 19,716 280,198 (96,742)

(17,548,688)

(16,825,279)

(23,656) 4,979,991 105,587

(1,044,972) 3,179,994 31,487

5,061,922

2,166,509

18,055,379 (766) (20,267)

16,496,420 (1,104) (18,672)

Net cash flows from financing activities

18,034,346

16,476,644

Net increase in cash and cash equivalents Cash and cash equivalents at beginning of financial year

5,547,580 11,790,710

1,817,874 9,972,836

17,338,290

11,790,710

Note Operating activities Deficit before grants Adjustments: Building rental expenses (Note (i)) Depreciation of fixed assets and right-of-use assets (Write back)/allowance for expected credit loss on trade receivables Loss on disposal of fixed assets Fixed assets written off Interest income Interest expense

5,13 15 15 13 10

Operating cash flows before changes in working capital Decrease in trade and other receivables Increase in unbilled receivables (Increase)/decrease in prepaid operating expenses Increase in trade and other payables Increase/(decrease) in contract liabilities Cash flows used in operations, representing net cash flows used in operating activities Investing activities Purchase of fixed assets Decrease in investment in long-term deposits Interest income received

4

Net cash flows from investing activities Financing activities Government grants received Interest paid on lease liabilities Payment of principal portion of lease liabilities

Cash and cash equivalents at end of financial year

10 10

6

Note (i): Building rental expenses for buildings under management by the Company are fully funded

by National Arts Council via market rental subvention grants. These expenses are non-cash in nature.

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

88

Notes to The Financial Statements For the financial year ended 31 March 2023

1.

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

The Company has been registered as a Charity, Registration No. 01658 under the Singapore Charities Act 1994 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 national arts venues, which serve as venues for hire, as well as workspaces for artistic creation and arts housing; To produce and present year-round arts programming, including national pinnacle events Singapore International Festival of Arts and Singapore Writers Festival; To act as cultural place-maker for the historic Civic District; and To deliver national platforms such as the showcase of Cultural Medallion recipients.

2.

Summary of significant accounting policies

2.1

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 (“$”).

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 2022. The adoption of these standards did not have any material effect on the financial performance or position of the Company.

OUR FINANCIALS

89

2.

Summary of significant accounting policies (cont’d)

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

Amendments to FRS 1: Classification of Liabilities as Current or Non-current

1 January 2024

Amendments to FRS 1: Non-current Liabilities with Covenants

1 January 2024

Amendments to FRS 116: Lease Liability in a Sale and Leaseback

1 January 2024

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.

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.

90

2.

Summary of significant accounting policies (cont’d)

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 Electrical fittings, sound and light equipment

-

5-10 years 5 years 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.

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.

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-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of 5 years.

The right-of-use assets are also subject to impairment. The accounting policy for impairment is disclosed in Note 2.7 to the financial statements.

OUR FINANCIALS

91

2.

Summary of significant accounting policies (cont’d)

2.6

Leases (cont’d) (a)

As lessee (cont’d) (ii) Lease liabilities At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivables, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for 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 The Company leases buildings under operating leases to non-related parties.

Leases where the Company retains substantially all the risks and rewards of ownership of the asset are classified as operating leases. Rental income from operating leases (net of any incentives given to the lessees) is recognised in statement of comprehensive income on a straight-line basis over the lease term.

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 2.14 to the financial statements. Contingent rents are recognised as revenue in the period in which they are earned.

92

2.

Summary of significant accounting policies (cont’d)

2.7

Impairment of non-financial assets The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when an annual impairment testing for an asset is required, the Company makes an estimate of the asset’s recoverable amount.

An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs of disposal and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. Where the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

Impairment losses are recognised in profit or loss.

A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit or loss.

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 measurement category for classification of debt instruments is at: 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.

OUR FINANCIALS

93

2.

Summary of significant accounting policies (cont’d)

2.8

Financial instruments (cont’d) (a)

Financial assets (cont’d) 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.

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 de-recognition 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.

94

2.

Summary of significant accounting policies (cont’d)

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.

2.10 Cash and cash equivalents

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.

2.11

Provisions 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.

OUR FINANCIALS

95

2.

Summary of significant accounting policies (cont’d)

2.12

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

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 and is amortised to profit or loss over the expected useful life of the relevant asset by equal annual instalments.

Government grant shall be recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate. Grants meant for specific recurrent and programme expenditure are recognised in profit or loss on an accrual basis to match the related expenses when incurred. Operating grants are recognised in profit or loss when received or when recognition criteria are fulfilled.

Grants received from the National Arts Council for capital expenditure are taken to the deferred capital grants account upon the receipt of 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.

Deferred capital grants are recognised as income over the periods necessary to match the depreciation, amortisation, write-off and/or impairment loss of the fixed assets purchased with the related grants. Upon the amortisation or disposal of fixed assets, the balance of the related deferred capital grants is recognised as income to match the carrying amount of the fixed assets disposed of.

2.13 Employee benefits

(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.

(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.

96

2.

Summary of significant accounting policies (cont’d)

2.14 Revenue

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.

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 or event has been completed.

(e)

Cultural matching fund Cultural matching fund is recognised to match the specified expenditure when incurred.

(f)

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.

(g)

Interest income Interest income is recognised using the effective interest method.

(h)

Carpark income Carpark income is recognised at a point in time, when the carpark facilities is utilised.

2.15

Taxes The Company has been registered as a charity under the Charities Act 1994. According to Section 13(1)(zm) of the Singapore Income Tax Act 1947, the income of the Company is exempted from tax.

OUR FINANCIALS

97

2.

Summary of significant accounting policies (cont’d)

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;

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

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.

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.

98

4.

Fixed assets

Furniture and fittings $

Office equipment $

Electrical fittings, sound and light equipment $

At 1 April 2021 Additions

459,500 89,090

45,770 -

493,076 738,599

408,744 217,283

1,407,090 1,044,972

At 31 March 2022 and at 1 April 2022

548,590

45,770

1,231,675

626,027

2,452,062

-

-

19,656

4,000

23,656

Disposals & write off

(45,643)

(810)

(141,578)

(239,381)

(427,412)

At 31 March 2023

502,947

44,960

1,109,753

390,646

2,048,306

393,958

44,353

468,198

377,175

1,283,684

Charge for the financial year

44,143

1,417

78,862

74,678

199,100

At 31 March 2022 and at 1 April 2022

438,101

45,7770

547,060

451,853

1,482,784

Charge for the financial year

40,150

-

156,593

79,219

275,962

Disposals & write off

(45,613)

(810)

(141,578)

(228,556)

(416,557)

At 31 March 2023

432,638

44,960

562,075

302,516

1,342,189

At 31 March 2022

110,489

-

684,615

174,174

969,278

At 31 March 2023

70,309

-

547,678

88,130

706,117

Cost

Additions

Computers $

Total $

Accumulated depreciation At 1 April 2021

Net carrying amount

OUR FINANCIALS

99

5.

Trade and other receivables FY22/23 $

FY21/22 $

454,331 (582)

259,737 (1,904)

453,749

257,833

187,638

152,104

Other receivables

194,420

756,519

Interest receivables

52,693

8,493

Total trade and other receivables Add: Unbilled receivables

888,500

1,174,949

215,185

191,279

Add: Cash and bank balances (Note 6)

17,388,562

16,820,973

Total financial assets carried at amortised cost

18,492,247

18,187,201

Trade receivables Less: Allowance for expected credit losses Deposits

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.

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.

Allowance for 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: FY22/23 $ At 1 April

1,904

–

(Write back)/charge for the financial year

(1,322)

1,904

582

1,904

At 31 March

100

FY21/22 $

6.

Cash and bank balances FY22/23 $

FY21/22 $

Cash at banks and on hand

6,338,290

11,790,710

Short-term deposits

11,000,000

–

Total cash and cash equivalents

17,338,290

11,790,710

50,272

5,030,263

17,388,562

16,820,973

Long-term deposits Total cash and bank balances

Short-term deposits are placed for 3 months (FY21/22: 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 3.45% to 3.60% (FY21/22: Nil) per annum.

Long-term deposits are placed for 12 months (FY21/22: varying periods of between 6 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 3.35% (FY21/22: 0.05% to 0.40%) per annum.

7.

Trade and other payables FY22/23 $

FY21/22 $

804,810

1,024,198

Other payables

4,004,638 55,307

3,393,993 13,983

GST payables

129,378

118,090

Rental deposits

727,196

572,790

Security deposits

215,860

237,027

Total trade and other payables

5,937,189

5,360,081

Less: GST payables

(129,378)

(118,090)

- Current

22,399

19,049

- Non-current

7,566

25,998

5,837,776

5,287,038

Trade payables Accrued operating expenses

Add: Lease liabilities (Note 10)

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.

OUR FINANCIALS

101

8.

Contract liabilities FY22/23 $

FY21/22 1 April 2021 $ $

Trade receivables (Note 5)

453,749

257,833

316,722

Contract liabilities

811,250

691,924

788,666

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: FY22/23 $

FY21/22 $

632,998

424,511

FY22/23 $

FY21/22 $

At 1 April

1,349,259

820,859

Additions

72,037

528,400

At 31 March

1,421,296

1,349,259

At 1 April

740,306

670,997

Amortisation

155,940

69,309

At 31 March

896,246

740,306

Current

142,848

136,670

Non-current

382,202

472,283

525,050

608,953

Amounts included in contract liabilities at the beginning of the year

9.

Deferred capital grant

Cost:

Accumulated amortisation:

Net carrying amount:

102

9.

Deferred capital grant (cont’d) 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, for the procurement of a sound console system at Drama Centre and for the Cultural Medallion showcase. The grants are deferred and amortised using straight line method over the useful lives of furniture and fittings, electrical fittings, light and sound equipment of 5 to 10 years.

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. (a)

Right-of-use assets The carrying amounts of right-of-use assets and the movements during the year are as follows:

Office equipment

FY22/23 $

FY21/22 $

At 1 April

43,893

62,704

Additions

5,185

–

(20,046)

(18,811)

29,032

43,893

Charge for the financial year At 31 March

(b)

Lease liabilities The carrying amounts of lease liabilities and the movements during the year are disclosed as follows: FY22/23 $

FY21/22 $

At 1 April

45,047

63,719

Additions

5,185

–

766

1,104

(21,033)

(19,776)

29,965

45,047

22,399

19,049

7,566

25,998

Accretion of interest Payments At 31 March Current Non-current

OUR FINANCIALS

103

10.

Right-of-use assets and lease liabilities (cont’d) (c)

Amounts recognised in statement of comprehensive income FY22/23 $

FY21/22 $

Depreciation of right-of-use assets

20,046

18,811

Interest expense on lease liabilities

766

1,104

20,812

19,915

Total amount recognised in statement of comprehensive income

The Company had total cash outflow for leases of $21,033 (FY21/22: $19,776) during the year. The Company did not have any non-cash additions (FY21/22: $nil) to right-of-use assets and lease liabilities during the year.

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 2023 amounted to $3,486,651 (FY21/22: $2,727,928).

The future minimum lease payments receivable under non-cancellable operating leases as at 31 March are as follows:

11.

FY22/23 $

FY21/22 $

Within one year

2,370,531

2,464,765

More than one year

2,251,693

2,054,242

4,622,224

4,519,007

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

In FY21/22, grants received in advance also included the Jobs Support Scheme (“JSS”) grants which provided wage support to employers to help the Company to retain their local employees during the period of economic uncertainty. Under this scheme, the Company will receive 25% to 75% cash grant 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, 10% to 50% of the same in the subsequent 7-month period from September 2020 to March 2021 and 10% to 30% of the same between April to September 2021, subject to a monthly wage cap of $4,600 per employee.

104

11.

Grants received in advance (cont’d) The JSS grants are 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 the grant is intended to compensate. As at 31 March 2022, $670,453 of grants received in advance relates to JSS. The JSS grant received was fully utilised by 31 March 2023.

12.

Income FY22/23 $

FY21/22 $

5,925,702

4,721,869

Programming events income

382,016

382,404

Carpark

121,292

93,312

Service charge

861,282

776,551

Landlord spaces service charge

1,102,280

1,100,353

Rental income

1,523,089

851,024

9,915,661

7,925,513

503,308

475,716

9,412,353

7,449,797

9,915,661

7,925,513

FY22/23 $

FY21/22 $

Employment Credit Scheme from Government

679,112

345,368

Jobs Support Scheme grant

670,453

2,900,000

Interest income

149,787

39,980

1,322

–

57,244

112,391

1,557,918

3,397,739

Venue hire

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

13.

Other income Note

Write back of impairment loss on trade receivables Others

5

OUR FINANCIALS

105

14.

Staff and related expenses

Short-term employee benefits: - Staff - Key management personnel

FY22/23 $

FY21/22 $

10,831,149

10,627,838

207,278

384,272

1,213,380

1,144,958

14,281

29,174

12,266,088

12,186,242

FY22/23 $

FY21/22 $

Central Provident Fund contributions: - Staff - Key management personnel Total staff and related expenses

15.

Other operating expenses The following charges are included in other operating expenses: Note GST expense

821,019

803,309

–

1,904

30

–

10,825

–

–

18,891

Professional fees

401,490

174,462

Recruitment fees

26,158

26,393

Allowance for expected credit loss on trade receivables Loss on disposal of fixed assets Fixed assets written off

5

Minor assets expensed off

16. Grants FY22/23 $

FY21/22 $

Operating grants

8,986,901

8,970,000

Programming grants

9,351,006

8,518,490

IT digitalisation grants

110,178

198,200

Emplacement grants

28,230

83,688

NCSS grants

18,720

–

4,646,240

4,303,142

23,141,275

22,073,520

Market rental subvention

Grants received are mainly from National Arts Council and National Council of Social Service (“NCSS”) 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.

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.

106

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 1947.

18.

Related party transactions In addition to related party transactions disclosed elsewhere in the financial statements, the following significant transactions between the Company and related parties took place during the year at terms agreed between the parties. (a)

Services rendered and grants received FY22/23 $

FY21/22 $

Programming grants to Stamford Arts Centre

96,531

–

Programming grants to Civic District

378,167

425,710

–

264,457

324,284

355,133

Programming grants to Singapore Writers Festival

2,006,073

2,326,699

Programming grants to Singapore International Festival of Arts

6,545,951

5,146,491

Market rental subvention

4,646,240

4,303,142

IT digitalisation grants

110,178

198,200

Emplacement grants

28,230

83,688

Operating grants

8,986,901

8,970,000

Service charge

896,526

835,916

Venue hire

57,599

121,235

Other income

6,672

6,020

4,646,240

4,303,142

FY22/23 $

FY21/22 $

207,278

384,272

14,281

29,174

221,559

413,446

With National Arts Council Income and Grants:

Programming grants to Golden Point Award Programming grants to Cultural Medallion

Expenses: Rental of building

(b)

Compensation of key management personnel

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

OUR FINANCIALS

107

18. Related party transactions (cont’d) (c)

Other transactions with key management personnel

Donations received from directors

FY22/23 $

FY21/22 $

18,000

-

18,000

-

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.

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.

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.

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.

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. The Company considers available reasonable and supportive forwarding-looking information which includes the following indicators: - Internal credit rating; and - 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.

108

19. Financial risk management objectives and policies (cont’d) (a)

Credit risk (cont’d) 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 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 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.

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

Unbilled receivables $

Up to 30 More than Current days past 30 days $ due past due $ $

More than More than 60 days 90 days past due past due $ $

Total $

FY 22/23 Gross carrying amount

215,185

123,759

146,467

104,363

15,912

63,830

669,516

Allowance for expected credit losses

-

-

-

-

-

(582)

(582)

215,185

123,759

146,467

104,363

15,912

63,248

668,934

FY 21/22 Gross carrying amount

191,279

155,960

69,889

6,669

4,631

22,588

451,016

Allowance for expected credit losses

-

-

-

-

-

(1,904)

(1,904)

191,279

155,960

69,889

6,669

4,631

20,684

449,112

Net carrying amount

Net carrying amount

OUR FINANCIALS

109

19. Financial risk management objectives and policies (cont’d) (a)

Credit risk (cont’d) Exposure to credit risk As at the end of the reporting period, the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised on the balance sheet.

Credit risk concentration profile The Company has no significant concentration of credit risk.

(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.

FY 22/23 Financial assets: Trade and other receivables Unbilled receivables Cash and bank balances

Note 5 6

Total undiscounted financial assets

1 year or less $

More than one year $

Total $

888,500 215,185 17,388,562

-

888,500 215,185 17,388,562

18,492,247

-

18,492,247

5,807,811 22,793

7,598

5,807,811 30,391

5,830,604

7,598

5,838,202

12,661,643

(7,598)

12,654,045

Financial liabilities: Trade and other payables (excluding GST payable) Lease liabilities Total undiscounted financial liabilities Total net undiscounted financial assets / (liabilities)

110

7

19. Financial risk management objectives and policies (cont’d) (b)

Liquidity risk (cont’d)

FY 21/22 Financial assets:

Note

1 year or less $

More than one year $

Total $

1,174,949 191,279 16,820,973

-

1,174,949 191,279 16,820,973

18,187,201

-

18,187,201

5,241,991 19,776

26,368

5,241,991 46,144

5,261,767

26,368

5,288,135

12,925,434

(26,368)

12,899,066

Unrestricted funds (Reserves): - General funds

FY22/23 $

FY21/22 $

10,189,589

10,238,287

Total funds

10,189,589

10,238,287

1 : 3.60

1 : 3.44

Trade and other receivables Unbilled receivables Cash and bank balances

5 6

Total undiscounted financial assets Financial liabilities: Trade and other payables (excluding GST payable) Lease liabilities Total undiscounted financial liabilities Total net undiscounted financial assets / (liabilities)

7

20. General funds

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.

21. Authorisation of financial statements The financial statements of the Company for the financial year ended 31 March 2023 were authorised for issue in accordance with a resolution of the directors on 21 August 2023.

OUR FINANCIALS

111

Goodman Open House 2022

artshouselimited.sg