CDAC Annual Report FY 2017 by CDAC

Chinese Development Assistance Council (Limited by guarantee and not having a share capital) Registration Number: 199202625K

Annual Report Year ended 31 December 2017

KPMG LLP (Registration No. T08LL1267L), an accounting limited liability partnership registered in Singapore under the Limited Liability Partnership Act (Chapter 163A) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (â&#x20AC;&#x153;KPMG Internationalâ&#x20AC;?), a Swiss entity.

Chinese Development Assistance Council General information

Executive Director Pok Cheng Chong Registered Office 65 Tanjong Katong Road, Singapore 436957 Auditors KPMG LLP Bankers Hong Leong Finance Limited 16 Raffles Quay #01-05, Hong Leong Building Singapore 048581 Oversea-Chinese Banking Corporation Limited 65 Chulia Street #01-00, OCBC Centre Singapore 049513 Singapura Finance Ltd 150 Cecil Street #01-00, Singapore 069543 DBS Bank Ltd 12 Marina Boulevard, DBS Asia Central@ Marina Bay Financial Centre Tower 3 Singapore 018982 United Overseas Bank Limited 80 Raffles Place, UOB Plaza Singapore 048624 Lawyer Dentons Rodyk & Davidson LLP 80 Raffles Place #33-00, UOB Plaza 1 Singapore 048624 Investment advisors Lion Global Investors Limited 65 Chulia Street #18-01, OCBC Centre Singapore 049513 UOB Asset Management Ltd 80 Raffles Place #03-00, UOB Plaza 2 Singapore 048624

Chinese Development Assistance Council Directors’ statement Year ended 31 December 2017

Directors’ statement We, the undersigned directors, on behalf of all the directors of Chinese Development Assistance Council (the “Council”), submit this annual report to the members together with the audited financial statements of the Council for the financial year ended 31 December 2017. We, being directors of Chinese Development Assistance Council, do hereby state that in our opinion: (a) the financial statements set out on pages FS1 to FS37 are drawn up so as to give a true and fair view of the financial position of the Council as at 31 December 2017 and the financial performance, changes in funds and cash flows of the Council for the year ended on that date in accordance with the provisions of the Singapore Companies Act, Chapter 50, the Singapore Charities Act (Chapter 37), and Singapore Financial Reporting Standards; and (b) at the date of this statement, there are reasonable grounds to believe that the Council will be able to pay its debts as and when they fall due. The Board of Directors has, on the date of this statement, authorised these financial statements for issue.

Patron The Patron of the Council is the Prime Minister of Singapore, Mr Lee Hsien Loong.

Directorate The directors in office at the date of this statement are as follows: Ong Ye Kung Gan Kim Yong Ang Kiam Meng Baey Yam Keng Hee Theng Fong Hong Poh Hin Lim Sau Hoong Low Yen Ling Ng Siew Quan Peh Nam Chuan, Adrian Phua Kiah Mai Sun Xueling Tan Bock Huat Tan Chin Siong, Sam Tan Chye Hee, Gilbert Wan Shung Ming Yam Ziming, Alex

(Appointed as Chairman on 23 June 2017) (Retired as Chairman on 23 June 2017)

Chinese Development Assistance Council Directors’ statement Year ended 31 December 2017

Trustees The trustees in office at the date of this statement are as follows: Chua Thian Poh Cheng Wai Keung Chew Leong-Chee, Tony Ch’ng Jit Koon Chua Kee Seng, Thomas Gan Kim Yong Ho Kiau Seng Ko Oon Joo Lee Kwok Kie, Patrick Lee Sze Leong Lew Chee Beng Liew Mun Leong Lim Ming Yan Lim Swee Say Loo Lip Giam, Paul Lum Ooi Lin, Olivia Ng Chee Tat, Philip Ng San Tiong, Roland Ong Ye Kung Pang Lim Seow Choke Meng Tan Aik Hock Tan Cheng Gay Teo Siong Seng Wu Hsioh Kwang Zhong Sheng Jian

(Chairman)

(Retired on 23 June 2017)

(Appointed on 23 June 2017)

Directors’ interests The Council has no share capital and its liability is limited by guarantee. Neither at the end of, nor at any time during the financial year, was the Council a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Council to acquire benefits by means of the acquisition of shares in or debentures of the Council or any other body corporate. Since the end of the last financial year, no director has received or become entitled to receive a benefit by reason of a contract made by the Council or a related corporation with the director or with a firm of which he is a member or with a company in which he has a substantial financial interest.

KPMG LLP 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581

Telephone Fax Internet

+65 6213 3388 +65 6225 0984 www.kpmg.com.sg

Independent auditors’ report Members of the Council Chinese Development Assistance Council

Report on the audit of the financial statements Opinion We have audited the financial statements of Chinese Development Assistance Council (‘the Council’), which comprise the balance sheet as at 31 December 2017, statement of comprehensive income, statement of changes in funds and statement of cash flows for the year then ended, and notes to the financial statement, including a summary of significant accounting policies, as set out on pages FS1 to FS37. In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the Companies Act, Chapter 50 (‘the Companies Act’), the Charities Act, Chapter 37 and other relevant regulations (‘the Charities Act and Regulations’) and Financial Reporting Standards in Singapore (‘FRSs’) so as to give a true and fair view of the financial position of the Council as at 31 December 2017 and of the financial performance, changes in funds and cash flows of the Council for the 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 ‘Auditors’ responsibilities for the audit of the financial statements’ section of our report. We are independent of the Council in accordance with the Accounting and Corporate Regulatory Authority 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 the other information contained in the annual report. Other information is defined as all information in the annual report other than the financial statements and our auditors’ report thereon. We have obtained the Directors’ statement and general information, prior to the date of this auditors’ report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Chinese Development Assistance Council Independent auditors’ report Year ended 31 December 2017

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 on the other information obtained prior to the date of this auditors’ report, 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. Responsibilities of management and those charged with governance 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 Companies Act, 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 Council’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 Council or to cease operations, or has no realistic alternative but to do so. Those charged with governance comprises the board of directors and trustees. Their responsibilities include overseeing the Council’s financial reporting process. Auditors’ 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 auditors’ 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 controls.

Chinese Development Assistance Council Independent auditors’ report Year ended 31 December 2017

•

Obtain an understanding of internal controls 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 Council’s internal controls.

•

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 Council’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ 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 auditors’ report. However, future events or conditions may cause the Council to cease to continue as a going concern.

•

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 those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

Report on other legal and regulatory requirements In our opinion, the accounting and other records required to be kept by the Council have been properly kept in accordance with the provisions of the Companies Act and the Charities Act and Regulations.

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Balance sheet As at 31 December 2017 2017 EndowOperation Fund ment Fund Note $ $ Non-current assets Plant and equipment Direct investments Interest in associate

4 5 6

1,110,209 38,750 1,197,020 2,345,979

Total $

2016 EndowOperation Fund ment Fund $ $

Total $

– – – –

1,110,209 38,750 1,197,020 2,345,979

1,060,157 37,000 295,070 1,392,227

– – – –

1,060,157 37,000 295,070 1,392,227

29,886 – 2,925,329 346,875 56,520 384,909 6,270,934 57,550,027 12,587,091 6,333,576 21,869,760 64,615,387 24,215,739 64,615,387

29,886 3,272,204 441,429 63,820,961 18,920,667 86,485,147 88,831,126

22,853 2,790,479 – 5,476,877 9,100,172 17,390,381 18,782,608

– 381,483 – 54,033,605 8,796,566 63,211,654 63,211,654

22,853 3,171,962 – 59,510,482 17,896,738 80,602,035 81,994,262

64,495,415

–

Current assets Curriculum materials Other receivables Derivative assets Investments Cash and cash equivalents

7 7 8 9

Total assets Reserves Accumulated Endowment Fund Accumulated Operation Fund Fair value reserve Total reserves Current liability Other payables Derivative liabilities Total liability Total reserves and liabilities

–

64,495,415

11 20,456,373 – 12 (10,764) – 20,445,609 64,495,415

13 13

3,770,130 – 3,770,130

20,456,373 (10,764) 84,941,024

62,221,666 62,221,666

14,048,532 – 14,048,532 (12,514) – (12,514) 14,036,018 62,221,666 76,257,684

119,972 – 119,972

3,890,102 – 3,890,102

4,690,507 56,083 4,746,590

24,215,739 64,615,387

88,831,126

18,782,608

102,508 887,480 989,988

4,793,015 943,563 5,736,578

63,211,654 81,994,262

The accompanying notes form an integral part of these financial statements.

FS1

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Statement of comprehensive income Year ended 31 December 2017 2017 Operation EndowNote Fund ment Fund $ $ Income Voluntary income: Donations from Central Provident Fund (“CPF”) Check-Off scheme Donation through Charity Fund-Raising Dinner 15 Other donations/ sponsorships 16 Income from charitable activities: Fee income from education programme (including CDAC Centres) Fee income from Fulfilling Ageing programme Grants and subsidies from government agencies 17 Other income Total income

Expenses Agency fees paid to CPF Board Charitable activities: Student & Parent Education programme Family & Worker Support programme Workers’ Upgrading & Employment programme Fulfilling Ageing programme Community Outreach & Engagement programme Volunteers Engagement & Development programme One-Stop Service CDAC-SFCCA Hardship Assistance and CDAC-SFCCA Bursary schemes

2016 Operation EndowFund ment Fund $ $

Total $

23,640,885

–

23,640,885

22,880,272

–

22,880,272

–

2,700,667

467,249 24,108,134

477,146 477,146

944,395 24,585,280

641,590 23,521,862

424,958 3,125,625

1,066,548 26,647,487

1,818,140

–

1,818,140

2,109,323

–

2,109,323

20,988

–

20,988

–

4,431,220 6,270,348 84,775 30,463,257

– – 25,608 502,754

4,431,220 6,270,348 110,383 30,966,011

4,722,069 6,831,392 62,480 30,415,734

– – 44,124 3,169,749

4,722,069 6,831,392 106,604 33,585,483

(629,674)

–

(629,674)

–

(629,674)

(10,433,556)

–

(10,433,556)

(8,754,745)

–

(8,754,745)

(4,543,863)

–

(4,543,863)

(3,757,283)

–

(3,757,283)

(2,142,320)

–

(2,142,320)

270,123

–

270,123

(882,755)

–

(882,755)

(3,429,752)

–

(3,429,752)

(3,538,967)

–

(3,538,967)

(609,274) (546,093)

– –

(609,274) (546,093)

(698,742) (553,323)

– –

(698,742) (553,323)

(1,759,984) 19 (21,935,154)

– –

Governance costs (229,289) Operating lease expense for CDAC headquarters/ Temporary Occupation Licence fee (476,454) Administration and finance (977,580) 21 (24,248,151) Total expenses incurred

–

(1,759,984) (2,033,633) (21,935,154) (21,479,013) (229,289)

(171,871)

– (476,454) (476,454) (114) (977,694) (950,161) (114) (24,248,265) (23,707,173)

–

– (2,033,633) – (21,479,013) –

(171,871)

– (476,454) (74) (950,235) (74) (23,707,247)

The accompanying notes form an integral part of these financial statements.

FS2

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Statement of comprehensive income (cont’d) Year ended 31 December 2017 2017 EndowOperation Fund Note ment Fund $ $ Investment income: Fund management investment schemes Direct investments Gain on disposal of plant and equipment Investment-related expenditures: Fund management investment costs Share of loss of associate Net surplus for the year Other comprehensive income Items that are or may be reclassified subsequently to profit or loss: Net change in fair value of available-for-sale financial assets Other comprehensive income for the year, net of tax Total comprehensive income for the year

22 22

Total $

2016 EndowOperation Fund ment Fund $ $

Total $

284,656 2,328

2,074,685 –

2,359,341 2,328

135,815 2,420

1,314,953 –

1,450,768 2,420

14,371

–

14,371

2,918

–

2,918

(10,570) (98,050) 192,735 6,407,841

(303,576) – 1,771,109 2,273,749

(314,146) (98,050) 1,963,844 8,681,590

(8,454) (704,930) (572,231) 6,136,330

(329,055) (337,509) – (704,930) 985,898 413,667 4,155,573 10,291,903

1,750

–

1,750

(750)

–

(750)

1,750

–

1,750

(750)

–

(750)

6,409,591

2,273,749

8,683,340

6,135,580

4,155,573 10,291,153

The accompanying notes form an integral part of these financial statements.

FS3

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Statement of cash flows Year ended 31 December 2017 Note Cash flows from operating activities Cash receipts from: Contributions through CPF Check-Off scheme Other donations Student fees including CDAC Centres programmes Fee income from Fulfilling Ageing programme Job Credits from government Grants received for Skills Training Award scheme Grants from government agencies Cash paid to: CPF Board for agency fees Singapore Land Authority for lease rental/ Temporary Occupation Licence Suppliers and employees Net cash from operating activities

2017 Endowment Fund $

Total $

Operation Fund $

2016 Endowment Fund $

Total $

23,567,145 462,249

– 475,551

23,567,145 937,800

22,789,312 641,590

– 3,125,625

22,789,312 3,767,215

1,800,968

–

1,800,968

2,112,615

–

2,112,615

20,988 86,505

– –

20,988 86,505

– 247,618

– –

– 247,618

83,426

–

83,426

369,078

–

369,078

4,241,794

–

4,241,794

4,227,794

–

4,227,794

(629,674) (476,454) (23,208,145) 5,948,802

Cash flows from investing activities Purchase of plant and equipment Government grant to fund capital expenditure Proceeds from disposal of plant and equipment Interest received Dividends received Investment in associate Funds with investment managers: Purchase of financial assets Proceeds from disposal of financial assets Injection of funds with investment managers Decrease of cash and cash equivalents held with fund managers Net cash (used in)/from investing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Operation Fund $

(934,767) –

– – (114) 475,437

– –

(629,674)

(624,903)

(476,454) (23,208,259)

(476,454) (22,143,132)

6,424,239

7,143,518

(934,767) –

– – (74) 3,125,551

(624,903) (476,454) (22,143,206) 10,269,069

(405,668)

–

(405,668)

565,791

–

565,791

14,881 219,734 26,473 (1,000,000)

– 1,543,339 122,805 –

14,881 1,763,073 149,278 (1,000,000)

68,566 150,209 17,152 (500,000)

– 1,253,445 116,884 –

68,566 1,403,654 134,036 (500,000)

(4,795,143)

(29,855,326)

(34,650,469)

(2,603,051)

(34,510,707)

(37,113,758)

4,006,939

25,250,755

29,257,694

1,345,060

23,974,471

25,319,531

–

(2,000,000)

(5,000,000)

(7,000,000)

626,975

2,960,757

3,587,732

1,139,553

9,212,413

10,351,966

(1,834,908)

22,330

(1,812,578)

(2,222,388)

(4,953,494)

(7,175,882)

4,113,894

497,767

4,611,661

4,921,130

(1,827,943)

3,093,187

8,132,970

4,469,692

12,602,662

3,211,840

6,297,635

9,509,475

12,246,864

4,967,459

17,214,323

8,132,970

4,469,692

12,602,662

The accompanying notes form an integral part of these financial statements.

FS4

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Statement of changes in funds Year ended 31 December 2017 Endowment ----------------- Operation Fund ---------------Fund Accumulated Fair value Accumulated fund reserve Total Fund $ $ $ $ At 1 January 2016

7,912,202

Total comprehensive income for the year Net surplus for the year

6,136,330

Other comprehensive income Net change in fair value of available-for-sale financial assets Total other comprehensive income Total comprehensive income for the year

– – 6,136,330

(750) (750) (750)

14,048,532

(12,514)

At 31 December 2016

(11,764)

–

Total reserves $

7,900,438

58,066,093

65,966,531

6,136,330

4,155,573

10,291,903

(750) (750) 6,135,580

– – 4,155,573

(750) (750) 10,291,153

62,221,666

76,257,684

14,036,018

The accompanying notes form an integral part of these financial statements.

FS5

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Statement of changes in funds (cont’d) Year ended 31 December 2017 Endowment Fund ----------------- Operation Fund ---------------Accumulated Fair value Accumulated fund reserve Fund Total $ $ $ $ At 1 January 2017

14,048,532

(12,514)

Total reserves $

14,036,018

62,221,666

76,257,684

Total comprehensive income for the year Net surplus for the year

6,407,841

–

6,407,841

2,273,749

8,681,590

Other comprehensive income Net change in fair value of available-for-sale financial assets Total other comprehensive income Total comprehensive income for the year

– – 6,407,841

1,750 1,750 1,750

1,750 1,750 6,409,591

– – 2,273,749

1,750 1,750 8,683,340

20,456,373

(10,764)

20,445,609

64,495,415

84,941,024

At 31 December 2017

The accompanying notes form an integral part of these financial statements.

FS6

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Notes to the financial statements These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 25 May 2018.

Domicile and activities Chinese Development Assistance Council (the “Council”), a public company limited by guarantee and not having a share capital, is incorporated in Singapore. The registered address of the Council is at 65 Tanjong Katong Road, Singapore 436957. The Patron of the Council is the Prime Minister of Singapore, Mr Lee Hsien Loong. The Council’s priority is to help the less successful individuals of the Chinese community in Singapore maximise their potential and strive for social mobility through its various assistance schemes. To achieve this, the Council organises low fee education programmes and provides families with financial and employment support. In addition, the Council has set up CDAC Centres to provide enrichment programmes for students as well as other services for families. The Council has an Operation Fund which is used to finance the Council’s operations and programmes, and an Endowment Fund which is used to provide funds which can only be used for the Council’s operations. Please refer to notes 10 and 11 for details of the Council’s Endowment Fund and Operation Fund, respectively. The Council has been granted Institution of a Public Character (“IPC”) status since 22 May 1992. The IPC number is IPC000311. The current tax exemption status will expire on 21 May 2022. The Council is registered as a charity under the Charities Act, Chapter 37 since 23 July 1992.

Basis of preparation

2.1

Statement of compliance These financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (“FRS”). The Council had obtained an exemption order from the Accounting & Corporate Regulatory Authority to prepare and present balance sheets, statements of comprehensive income, statements of cash flows and statements of changes in funds for its Operation Fund and Endowment Fund under Section 202(1) of the Singapore Companies Act, if such presentation results in a fair presentation of its financial position, financial performance, cash flows and changes in funds.

FS7

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

The directors are of the opinion that the preparation and presentation of separate balance sheets, statements of comprehensive income, statements of cash flows and statements of changes in funds for its Operation Fund and Endowment Fund and their aggregation results in a fair presentation of the financial position, financial performance, cash flows and changes in funds of the Council.

2.2

Basis of measurement The financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities which are measured at fair value.

2.3

Functional and presentation currency The financial statements are presented in Singapore dollars, which is the Council’s functional currency. All financial information is presented in Singapore dollars, unless otherwise stated.

2.4

Use of estimates and judgements The preparation of financial statements in conformity with FRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements is included in the following notes: • •

Note 6 – Classification and measurement of interest in associate; Note 24 – Financial risk management

Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

3.1

Basis of consolidation Investment in associate Associates are those entities in which the Council has significant influence, but not control or joint control, over the financial and operating policies. Significant influence is presumed to exist when the Council holds between 20% or more of the voting power of another entity.

FS8

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Investment in associate is accounted for using equity accounting. Investment in associate is recognised initially at cost, which includes transaction costs. Subsequent to initial recognition, the Councilâ&#x20AC;&#x2122;s financial statements includes the Councilâ&#x20AC;&#x2122;s share of losses of equity accounted investee, from the date that significant influence commences until the date that significant influence ceases. When the Councilâ&#x20AC;&#x2122;s share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, together with any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued. Impairment of associates Investment in associate is assessed at the end of each reporting period to determine whether there is any objective evidence that it is impaired in accordance with note 3.6 (i). An impairment loss in respect of an associate is measured by comparing the recoverable amount of the investment with its carrying amount in accordance with note 3.6 (ii). An impairment loss is recognised in profit or loss. An impairment loss is reversed if there has been a favourable change in the estimates used to determine the recoverable amount.

3.2

Foreign currency Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the Council at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on the monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the retranslation of available-for-sale equity instruments which are recognised in other comprehensive income.

3.3

Plant and equipment Items of plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items (major components) of plant and equipment.

FS9

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

The gain or loss on disposal of an item of plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. The cost of replacing a component of an item of plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Council and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of plant and equipment are recognised in profit or loss as incurred. Depreciation is recognised as an expense in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of plant and equipment. Depreciation is recognised from the date that the plant and equipment are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use. The estimated useful lives for the current and comparative years are as follows: Office equipment Computer equipment Furniture and fittings Renovation

3 years 2 years 5 years 5 years

Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted if appropriate.

3.4

Funds Separate funds are maintained for amounts received for specific purposes. Interest income is allocated to the respective funds, where appropriate, on a specific identifiable basis.

3.5

Financial instruments Non-derivative financial assets The Council initially recognises loans and receivables on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date, which is the date that the Council becomes a party to the contractual provisions of the instrument. The Council derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in transferred financial assets that is created or retained by the Council is recognised as a separate asset or liability.

FS10

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Council has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Council classifies non-derivative financial assets into the following categories: financial assets at fair value through profit or loss, loans and receivables and available-for-sale financial assets. Financial assets at fair value through profit or loss A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated at fair value through profit or loss if the Council manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Councilâ&#x20AC;&#x2122;s documented risk management or investment strategies. Attributable transaction costs are recognised in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein, which takes into account any dividend income, are recognised in profit or loss. Financial assets designated at fair value through profit or loss comprise equity and debt securities investments. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise cash and cash equivalents, and other receivables (excluding prepayments). Cash and cash equivalents comprise cash balances and deposits with financial institutions. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are not classified in any of the above categories of financial assets. Availablefor-sale financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on available-for-sale debt instruments, are recognised in other comprehensive income and presented in the fair value reserve. When an investment is derecognised, the gain or loss accumulated in fair value reserve is reclassified to profit or loss. Available-for-sale financial assets comprise equity securities. Non-derivative financial liabilities Financial liabilities are recognised initially on the trade date, which is the date that the Council becomes a party to the contractual provisions of the instrument.

FS11

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

The Council derecognises a financial liability when its contractual obligations are discharged or cancelled or expire. Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Council has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Council classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value less any directly attributable transaction costs. Subsequent to the initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Other financial liabilities comprise other payables. Derivative financial instruments The Council holds derivative financial instruments to hedge its foreign currency risk exposures. Derivatives are recognised initially at fair value; any attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. Economic hedges Hedge accounting is not applied to derivative instruments that economically hedge monetary assets and liabilities denominated in foreign currencies. Changes in the fair value of such derivatives are recognised in profit or loss. Separable embedded derivatives Changes in the fair value of separable embedded derivative are recognised immediately in profit or loss.

3.6

Impairment

(i)

Non-derivative financial assets A financial asset not carried at fair value through profit or loss is assessed at the end of each reporting period to determine whether there is any objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has an impact on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor, indications that a debtor or issuer will enter bankruptcy, and the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.

FS12

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Loans and receivables The Council considers evidence of impairment for loans and receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Loans and receivables that are not individually significant are collectively assessed for impairment by grouping together loans and receivables with similar risk characteristics. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows, discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against loans and receivables. Interest on the impaired asset continues to be recognised, when the Council considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through profit or loss. Available-for-sale financial assets Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value reserve to profit or loss. The cumulative loss that is reclassified from fair value reserve to profit or loss is the difference between the acquisition cost, net of any principal repayment and amortisation, and the current fair value, less any impairment loss previously recognised in profit or loss. Changes in cumulative impairment provisions attributable to application of the effective interest method are reflected as a component of interest income. If, in subsequent period, the fair value of an impaired available-for-sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognised in profit or loss, then the impairment loss is reversed. The amount of the reversal is recognised in profit or loss. However, any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income. (ii)

Non-financial assets The carrying amounts of the Council’s non-financial assets, other than curriculum materials, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGU. The Council’s corporate assets do not generate separate cash inflows and are utilised by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated.

FS13

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of assets recognised in prior periods is assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assetâ&#x20AC;&#x2122;s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognised.

3.7

Curriculum materials Curriculum materials are stated at the lower of cost and net realisable value.

3.8

Provisions A provision is recognised if, as a result of a past event, the Council has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

3.9

Income recognition Donations Donations are recognised on an accrual basis. Government grants Government grants consist of grants received or receivable. Grants that compensate the Council for expenses incurred are recognised as income in profit or loss in the period in which it is receivable. Grants that compensate the Council for the cost of an asset are deducted in arriving at the carrying amount of the asset. Such grants are recognised in profit or loss over the life of the depreciable asset by way of a reduced depreciation charge. Contributions from the CPF scheme Contributions from the CPF scheme are recognised when the right to receive payment has been established. Student fee income Student fee income is recognised when services are rendered. Interest and dividend income Interest income is recognised as it accrues in profit or loss, using the effective interest method. Dividend income is recognised in profit or loss on the date that the Councilâ&#x20AC;&#x2122;s right to receive payment is established, which in the case of quoted securities is the ex-dividend date.

FS14

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

3.10

Operating leases Where the Council has the use of assets under operating leases, payments made under the leases are recognised in profit or loss on a straight-line basis over the term of the lease.

3.11

Employee benefits Defined contribution plans 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. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in profit or loss in the periods during which related services are rendered by employees. 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 under the short-term cash bonus if the Council 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.

3.12

New standards and interpretations not yet adopted A number of new standards and amendments to standards are effective for annual periods beginning after 1 January 2017 and earlier application is permitted; however, the Council has not early applied the following new or amended standards in preparing these statements.

(a)

FRS 115 Revenue from Contracts with Customers FRS 115 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It also introduces new cost guidance which requires certain costs of obtaining and fulfilling contracts to be recognised as separate assets when specified criteria are met. The Council plans to adopt FRS 115 in its financial statements for the year ending 31 December 2018. Based on the Councilâ&#x20AC;&#x2122;s initial assessment, the Council does not expect any significant adjustments on adoption of FRS 115.

(b)

FRS 109 Financial Instruments FRS 109 replaces most of the existing guidance in FRS 39 Financial Instruments: Recognition and Measurement. It includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from FRS 39. FRS 109 is effective for annual periods beginning on or after 1 January 2018, with early adoption permitted. Retrospective application is generally required, except for hedge accounting. For hedge accounting, the requirements are generally applied prospectively, with some limited exceptions. Restatement of comparative information is not mandatory. If comparative information is not restated, the cumulative effect is recorded in opening equity as at 1 January 2018.

FS15

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

The Council plans to adopt the new standard on the required effective date in 2018 without restating comparative information. The Council has performed preliminary assessment of the impact of FRS 109 on its financial statements and the expected impact on adoption of FRS 109 are described below. Classification and measurement For financial assets currently held at fair value, the Council expects to continue measuring these assets at fair value under FRS 109. The available-for-sale equity securities are expected to be reclassified as financial assets measured at fair value through profit or loss. Impairment FRS 109 replaces the current incurred loss model with a forward-looking expected credit loss (ECL) model. The new impairment model will apply to financial assets measured at amortised cost, except for investments in equity instruments. Under FRS 109, loss allowances will be measured on either of the following bases: • 12-month ECLs. These are ECLs that result from possible default events within the 12 months after the reporting date; or • lifetime ECLs. These are ECLs that result from all possible default events over the expected life of a financial instrument. The Council intends to apply the simplified approach and record lifetime ECL on all other receivables. The Council does not expect the possible increase in impairment for other receivables as at 1 January 2018 with the adoption of FRS 109 to have significant impact on the financial statements, and is currently finalising the testing of its expected credit loss model. (c)

FRS 116 Leases FRS 116 eliminates the lessee’s classification of leases as either operating leases or finance leases and introduces a single lessee accounting model. Applying the new model, a lessee is required to recognise right-of-use (ROU) assets and lease liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. FRS 116 substantially carries forward the lessor accounting requirements in FRS 17 Leases. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for these two types of leases using the FRS 17 operating lease and finance lease accounting models respectively. However, FRS 116 requires more extensive disclosures to be provided by a lessor. When effective, FRS 116 replaces existing lease accounting guidance, including FRS 17, INT FRS 104 Determining whether an Arrangement contains a Lease, INT FRS 15 Operating Leases – Incentives, and INT FRS 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. FRS 116 is effective for annual periods beginning on or after 1 January 2019, with early adoption permitted if FRS 115 is also applied. The Council is assessing the impact of FRS 116 on its financial statements.

FS16

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Plant and equipment -------------------- CDAC Centres -----------------Furniture Furniture Office Computer and Office Computer and equipment equipment fittings Renovation equipment equipment fittings Renovation $ $ $ $ $ $ $ $

Total $

Cost At 1 January 2016 Additions Disposals Government grant At 31 December 2016 Additions Disposals Transfers At 31 December 2017

210,117 26,697 (13,021) – 223,793 49,347 (4,331) – 268,809

830,407 73,764 (135,503) – 768,668 120,706 (48,031) 412 841,755

210,804 3,232 (15,087) – 198,949 33,037 (24,614) 20,084 227,456

1,433,350 30,948 (158,174) – 1,306,124 85,052 (36,886) 51,965 1,406,255

266,359 24,555 (19,303) (16,640) 254,971 60,058 (73,012) – 242,017

561,289 90,641 (157,149) (27,570) 467,211 64,996 (46,235) (412) 485,560

108,299 – (5,590) – 102,709 34,111 (9,550) (20,084) 107,186

3,309,822 566,969 (375,720) (521,581) 2,979,490 71,970 (348,055) (51,965) 2,651,440

6,930,447 816,806 (879,547) (565,791) 6,301,915 519,277 (590,714) – 6,230,478

Accumulated depreciation At 1 January 2016 Depreciation Disposals Government grant At 31 December 2016 Depreciation Disposals Transfers At 31 December 2017

146,707 36,129 (13,021) – 169,815 37,333 (4,331) – 202,817

691,127 88,077 (131,272) – 647,932 121,066 (48,031) 54 721,021

183,129 8,993 (7,784) – 184,338 10,927 (24,614) 20,084 190,735

1,298,338 46,966 (104,638) – 1,240,666 36,215 (36,376) 51,965 1,292,470

150,645 49,466 (19,070) (518) 180,523 51,720 (73,012) – 159,231

496,539 60,519 (157,149) (3,774) 396,135 51,498 (46,235) (54) 401,344

105,173 1,956 (5,590) – 101,539 4,971 (9,550) (20,084) 76,876

2,661,314 137,174 (375,375) (102,303) 2,320,810 154,985 (348,055) (51,965) 2,075,775

5,732,972 429,280 (813,899) (106,595) 5,241,758 468,715 (590,204) – 5,120,269

63,410 53,978 65,992

139,280 120,736 120,734

27,675 14,611 36,721

135,012 65,458 113,785

115,714 74,448 82,786

64,750 71,076 84,216

3,126 1,170 30,310

648,508 658,680 575,665

1,197,475 1,060,157 1,110,209

Carrying amounts At 1 January 2016 At 31 December 2016 At 31 December 2017

FS17

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Direct investments 2017 $ Non-current investments Quoted equity securities available-for-sale

38,750

2016 $ 37,000

Interest in associate In October 2015, the Council entered into a Memorandum of Understanding (“MOU”), together with Singapore Indian Development Association, Yayasan MENDAKI, and the Eurasian Association (together “Self-Help Groups (SHGs)”), to incorporate Self Help Groups Student Care Limited (“SHGSCL”). Incorporation of SHGSCL is in line with the mandate of the SHGs to provide educational and family related support services to students from low income families. Programmes to be conducted by SHGSCL will be inclusive and multi-racial. SHGSCL was incorporated in November 2015 and is a public company limited by guarantee. The Council has appointed Low Yen Ling and Pok Cheng Chong to the Board of Directors of SHGSCL. The Council is entitled to 25% of total voting rights at the Board of Directors meetings. Management has exercised judgement in determining the extent of its significant influence over SHGSCL, and concluded that the Council has significant influence over SHGSCL. Therefore, the Council recognised SHGSCL as an associate in the balance sheet. Details of the associate are as follows: Name

SHGSCL

Principal activities

Operate school-based student care centres in Singapore

Place of incorporation

Singapore

Voting rights 2017 2016 % % 25

The summarised financial information of the associate which is prepared in accordance with FRS is as follows: 2017 $ Statement of comprehensive income Revenue Loss and total comprehensive income for the year

4,193,732 (196,100)

2016 $ 1,728,647 (1,398,614)

FS18

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

2017 $ Balance sheet Non-current assets Current assets Non-current liabilities Current liabilities Net deficit Interest in net assets of investee at beginning of the year Share of total comprehensive income Interest in net assets of investee at end of the year Loan to associate

2016 $

407,327 3,634,456 (4,000,000) (1,647,742) (1,605,959)

260,590 1,115,908 (2,000,000) (786,357) (1,409,859)

(704,930) (98,050) (802,980) 2,000,000 1,197,020

– (704,930) (704,930) 1,000,000 295,070

The objective of setting up the associate is for the SHGs to jointly operate student care centres in schools that serve students from all races. The investment in the associate, in substance, is not meant to be a commercially-driven transaction with the purpose of profit takings. The Memorandum of Association of SHGSCL prohibits the Council, together with other SHGs, from obtaining any variable returns in the form of profits, dividends, or residual interest in net assets in the event of liquidation or winding-down. The Council’s financial statements include the Council’s share of losses of the associate at 50%, based on the Council’s proportionate share of loan commitment to the associate as set out in the MOU. The Council’s exposure to losses is limited to the carrying amount of the investment, together with any long-term interests. Loan to associate represents the Council’s commitment to the associate which is made in the form of an unsecured and interest free loan. As the associate has plans to scale up its operation, the settlement of the loan is not expected to occur in the foreseeable future. The loan is classified as non-current and stated at cost less accumulated impairment losses. The SHGs also agree to continue providing funding support to the associate while it scales up its operation. As at 31 December 2017, the Council has provided funding support of $2,000,000. In April 2018, SHGSCL has drawn down the remaining funding commitment from the Council of $500,000. Key source of estimation uncertainty The Council evaluates, amongst other factors, the financial health of and operational cash flow projections, to assess the recoverable amounts of its interest in SHGSCL. Differences between the actual performance and management’s annual impairment review will affect the results of the period in which such differences are determined. An increase in impairment losses will increase expenses and decrease non-current assets.

FS19

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Other receivables 2017 Operation EndowFund ment Fund Note $ $ Student fees receivables Allowance for doubtful receivables Contributions receivable through the CPF Board scheme Deposits Grants receivables Interest receivable– held under fund management investment schemes Derivative assets– held under fund management investment schemes Others Prepayments

Total $

2016 Operation EndowFund ment Fund $ $

Total $

192,778

–

192,778

238,503

–

238,503

(4,297) 188,481

– –

(4,297) 188,481

(4,552) 233,951

– –

(4,552) 233,951

2,033,713 148,233 323,958

– – –

2,033,713 148,233 323,958

1,959,973 155,039 304,463

– – –

1,959,973 155,039 304,463

31,390

341,031

372,421

35,733

380,512

416,245

56,520 132,370 2,914,665 67,184 2,981,849

384,909 5,844 731,784 – 731,784

441,429 138,214 3,646,449 67,184 3,713,633

– 66,259 2,755,418 35,061 2,790,479

– 971 381,483 – 381,483

– 67,230 3,136,901 35,061 3,171,962

The movement in the allowance for impairment in respect of student fees receivable during the year is as follows: 2017 2016 $ $ At 1 January 4,552 2,639 Impairment loss recognised 2,032 3,948 Impairment loss utilised (2,287) (2,035) At 31 December 4,297 4,552 Contributions receivable through the CPF Board scheme relates to the December contributions made by individuals of the Chinese community.

Fund management investment schemes 2017 Note Operation EndowFund ment Fund $ $ Current investments Quoted equity securities held for trading Quoted debt securities held for trading Unquoted debt securities held for trading Derivative assets/(liabilities) Interest receivable Cash and cash equivalents

1,861,046

7, 13 7 9

2016 Total $

EndowOperation Fund ment Fund $ $

708,967

4,443,149

Total $

6,222,498

8,083,544

5,152,116

4,154,983 24,210,134

28,365,117

3,703,967 37,128,353 40,832,320

254,905 27,117,395 6,270,934 57,550,027

27,372,300 63,820,961

1,063,943 12,462,103 13,526,046 5,476,877 54,033,605 59,510,482

56,520 384,909 6,327,454 57,934,936 31,390 341,031

441,429 64,262,390 372,421

(56,083) (887,480) (943,563) 5,420,794 53,146,125 58,566,919 35,733 380,512 416,245

340,227 1,366,117 6,699,071 59,642,084

1,706,344 66,341,155

967,202 4,326,874 5,294,076 6,423,729 57,853,511 64,277,240

FS20

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

The above represents funds placed with financial institutions that manage the funds for a period of at least 3 years. Although the book value of the investments fluctuates during the fund management period, the investment managers have provided guarantee of the return of the principal sum of $32 million (2016: $32 million) to the Council at the end of the relevant fund management periods on one portfolio (2016: one portfolio). The funds are invested in investments that are in compliance with the provisions of the Trustees Act. Forward foreign exchange contracts are held as economic hedges of debt securities and cash and cash equivalents denominated in foreign currencies. The weighted average effective interest rates per annum and repricing periods of the interestearning financial assets managed under these portfolios are as follows: Effective interest rate %

Total $

2017 Debt securities and deposits

2.62

4,750,115

876,570

3,873,545

–

2016 Debt securities and deposits

2.47

5,735,112

2,375,594

3,359,518

–

2017 Debt securities and deposits

2.87

52,693,646

33,597,947

8,656,198

10,439,501

2016 Debt securities and deposits

2.94

53,917,330

10,310,326

35,281,686

8,325,318

Operation Fund

Within 1 year $

1 to 5 years $

After 5 years $

Endowment Fund

The Council’s exposure to credit, currency and interest rate risks is disclosed in note 24.

Cash and cash equivalents 2017 Operation EndowFund ment Fund Note $ $ 3,900 2,029,465

Cash in hand Cash at bank Deposits with financial institutions

10,213,499 12,246,864

Held under fund management investment schemes: Cash at bank Deposits with financial institutions

340,227

– 340,227 12,587,091

– 1,238,903

Total $

2016 Operation EndowFund ment Fund $ $

Total $

3,900 3,268,368

4,114 1,996,896

– 1,763,342

3,728,556 13,942,055 4,967,459 17,214,323

6,131,960 8,132,970

2,706,350 8,838,310 4,469,692 12,602,662

1,366,117

1,706,344

167,183

– – 1,366,117 1,706,344 6,333,576 18,920,667

800,019 967,202 9,100,172

2,526,776

4,114 3,760,238

2,693,959

1,800,098 2,600,117 4,326,874 5,294,076 8,796,566 17,896,738

FS21

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

The weighted average effective interest rates per annum of the interest-earning deposits at the reporting date are as follows: Operation Fund Endowment Fund 2017 2016 2017 2016 % % % % Cash at bank Deposits with financial institutions

0.01

0.02

0.01

1.02

1.13

0.65

0.73

Interest rates reprice at intervals of one, three, six or twelve months.

Endowment Fund The Endowment Fund is established to receive specific donations from the public and government grants. The Board of Trustees is entrusted with the duty of managing and building up the Endowment Fund. Such endowment funds can be used for the Council's operations only, with the approval of the Board of Trustees. Income generated by the Endowment Fund accrues to the Endowment Fund.

Operation Fund The Operation Fund is a general fund of the Council to be applied for the general purposes of the Council in support of its objectives. The Operation Fund comprises mainly the monthly contributions made by individuals of the Chinese community through the CPF Board scheme as stipulated in The Central Provident Fund (Contributions to Community Fund (CDAC)) Rules 1992 which commences from September 1992 and the income (net) generated thereon. Excluding share of loss of associate, the carrying amount of the Operation Fund as at 31 December 2017 amounts to $21,248,589 (2016: $14,740,948).

Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of available-for-sale investments held until the investment is derecognised.

FS22

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Other payables 2017 Operation EndowFund ment Fund Note $ $ Accrued operating 14 expenses Advances received Other creditors Derivatives liabilities - held under fund management investment schemes 8

Total $

3,379,423 273,707 117,000

119,972 – –

3,499,395 273,707 117,000

3,879,636 278,381 532,490

102,508 – –

3,982,144 278,381 532,490

– 3,770,130

– 119,972

– 3,890,102

56,083 4,746,590

887,480 989,988

943,563 5,736,578

Accrued operating expenses 2017 EndowOperation ment Fund Fund $ $ Auditors’ remuneration: - audit fees - non-audit fees Fund management performance fee Skill training awards Agency fee payable to CPF Board Staff CPF contribution for December Ready for School project CDAC programmes and other administrative costs Provision for unutilised leave

Total $

2016 Operation EndowFund ment Fund $ $

Total $

2016 EndowOperation ment Fund Fund $ $

Total $

118,000 5,000

– –

118,000 5,000

94,000 5,000

– –

94,000 5,000

2,705 71,613

119,972 –

122,677 71,613

1,448 647,523

102,508 –

103,956 647,523

52,473

–

52,473

–

52,473

356,495 1,009,000

– –

356,495 1,009,000

272,769 929,894

– –

272,769 929,894

1,481,007 283,130 3,379,423

– – 119,972

1,481,007 283,130 3,499,395

1,615,829 260,700 3,879,636

– – 102,508

1,615,829 260,700 3,982,144

Fund-raising activity In 2014, the Council held a Charity Fund Raising Dinner to raise funds for its Endowment Fund. Donation income in 2016 relates to receipt of donation pledged by donors during the event. During the year, there were no fund-raising activities undertaken by the Council.

Donation income Tax deductible donations during the year amounts to $24,174,378 (2016: $25,121,392).

FS23

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Grants and subsidies from government agencies 2017 $ Grants from the government: - additional Top-Up Grant & Government Matching Grant - defrayment of operating lease expense for CDAC headquarters/Temporary Occupation Licence fee Other grants and subsidies from other government related agencies to fund programmes and activities

3,500,000

476,454

454,766 4,431,220

745,615 4,722,069

Other income 2017 Operation EndowFund ment Fund $ $ Interest income - deposits and bank balances Others

2016 $

83,747 1,028 84,775

25,608 –

25,608

Total $

109,355 1,028 110,383

2016 Operation EndowFund ment Fund $ $

61,229 1,251 62,480

44,124 – 44,124

Total $

105,353 1,251 106,604

Resources expended on charitable activities Programme or initiative

Student & Parent Education Family & Worker Support Fulfilling Ageing Community Outreach & Engagement Volunteers Engagement & Development One-Stop Service CDAC-SFCCA Hardship Assistance and CDAC-SFCCA Bursary schemes

Costs undertaken directly $

Support costs (note 20) $

2017 Total $

Costs undertaken directly $

Support costs (note 20) $

2016 Total $

10,083,866

349,690

10,433,556

8,456,124

298,621

8,754,745

4,083,678 737,797

190,062 144,958

4,273,740 882,755

5,609,379 –

290,224 –

5,899,603 –

2,975,186

454,566

3,429,752

3,227,956

311,011

3,538,967

533,203 469,648

76,071 76,445

609,274 546,093

636,370 486,428

62,372 66,895

698,742 553,323

1,759,984 20,643,362

– 1,291,792

1,759,984 21,935,154

2,033,633 20,449,890

– 1,029,123

2,033,633 21,479,013

With effect from 2017, the Workers’ Upgrading & Employment programme had merged with the Family Workfare & Support programme to form the Family & Worker Support programme. Prior year balances had been updated to reflect the combined expenditures of both programmes under the Family & Worker Support programme in FY 2017.

FS24

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Support costs

2017 Staff costs (include management) Maintenance and administrative expenses Depreciation expenses Total for 2017 2016 Staff costs (include management) Maintenance and administrative expenses Depreciation expenses Total for 2016

Community Volunteers Outreach & Engagement & Engagement Development programme programme $ $

Student & Parent Education programme $

Family & Worker Support programme $

Fulfilling Ageing programme $

125,792 171,628

104,956 41,727

104,956 17,141

135,722 55,670

35,049 10,740

41,993 18,162

52,270 349,690

43,379 190,062

22,861 144,958

263,174 454,566

30,282 76,071

16,290 76,445

113,087 130,326

185,954 46,361

–

121,605 46,886

35,784 11,529

31,322 16,646

142,520 311,011

15,059 62,372

18,927 66,895

One-Stop Service $

– 55,208 298,621

57,909 290,224

– –

Basis of allocation

Usage in terms of time spent Floor area in terms of floor area occupied and usage Usage in terms of assets acquired

Allocated staff costs include manpower cost of management staffs, administration and Information Technology staff but exclude staff who directly handle the programmes. Depreciation expenses incurred for CDAC Centres programme include depreciation expenses of renovation cost of CDAC Centres and assets acquired such as computers and office equipment to operate the Centres.

FS25

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Expenses incurred The following items have been included in arriving at total expenses incurred: Note Allowance for doubtful receivables Depreciation expenses, net of government grant Operating lease expenses Staff costs: - key management personnel - others Contributions to defined contribution plans included in staff costs Waiver of student fees, included in fee income from education programme

2017 $

2016 $

7 4

2,032 468,715 92,130

3,948 322,685 91,805

233,063 6,651,803

213,988 5,881,341

909,302

801,072

120,061

125,905

CDAC occupies a government land at 65 Tanjong Katong Road, Singapore 436857 and pays an operating lease expense for CDAC headquarters/Temporary Occupation Licence (“TOL”) fee yearly to the Singapore Land Authority. The Ministry of Culture, Community & Youth provides a yearly grant to defray the lease rental/TOL fee incurred by the Council. The lease rental/TOL fee for the year ended 31 December 2017 is $476,454 (2016: $476,454).

Investment income 2017 Operation EndowFund ment Fund $ $

Total $

2016 Operation EndowFund ment Fund $ $

Total $

Investment income from fund management investment schemes: Realised gain/(loss) on sale of investments Net change in fair value of financial assets held for trading Interest income Dividend income

216,536 1,260,140 1,476,676

(22,103) (170,714) (192,817)

(88,766) (789,788) (878,554) 127,770 470,352 598,122 132,741 1,481,528 1,614,269 24,145 122,805 146,950 284,656 2,074,685 2,359,341

36,625 57,252 93,877 14,522 (113,462) (98,940) 106,561 1,311,531 1,418,092 14,732 116,884 131,616 135,815 1,314,953 1,450,768

Investment income from direct investments: Dividend income

2,328

–

2,328

2,420

–

2,420

FS26

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Taxation The Council is an approved charity organisation under the Charities Act, Chapter 37 and an institution of a public character under the Income Tax Act, Chapter 134. No provision for taxation has been made in the financial statements as the Council is a registered charity with income tax exemption.

Financial risk management Overview The Council has exposure to the following risks from its use of financial instruments: • credit risk • liquidity risk • market risk This note presents information about the Council’s exposure to each of the above risks, the Council’s objectives, policies and processes for measuring and managing risk. Risk management framework Risk management is integral to the operations of the Council. Management has established a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. Credit risk Credit risk is the risk of financial loss to the Council if a counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Council’s receivables from counterparties and investment securities. The carrying amount of financial assets in the balance sheet represents the Council’s respective maximum exposure to credit risk. The Council does not hold any collateral in respect of its financial assets. Loans and receivables Exposure to credit risks The maximum exposure to credit risk for loans and receivables at the reporting date by type of counterparty are as follows:

FS27

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

2017 EndowOperation Fund ment Fund $ $ Government agencies Student fees receivable (including Self-Help Groups) Others

2016 EndowOperation Fund ment Fund $ $

Total $

2,075,672

– 2,075,672

2,039,137

– 2,039,137

188,481 593,992 2,858,145

188,481 – 346,875 940,867 346,875 3,205,020

233,951 482,330 2,755,418

– 233,951 381,483 863,813 381,483 3,136,901

The Council does not require collateral in respect of other receivables. Impairment losses The Council establishes an allowance for impairment that represents its estimate of incurred losses in respect of its receivables. The ageing of loans and receivables are as follows:

Gross 2017 $ Not past due Past due 31 – 60 days

3,202,386 6,931 3,209,317

Impairment losses 2017 $ –

4,297 4,297

Gross 2016 $ 3,131,383 10,070 3,141,453

Impairment losses 2016 $ – 4,552 4,552

Based on historical default rates, the Council believes that no impairment is necessary in respect of loans and receivables not past due or past due up to 60 days except for specifically identified amounts. These receivables are mainly arising from government, self-help group agencies and student fees. Investments Exposure to credit risk An Investment Committee, established to advise, review and approve investment proposals and appointment of investment managers, monitors the Council’s investments on an ongoing basis. Most of the Council’s funds are placed with regulated financial institutions that manage the funds on a full discretionary basis. In order to limit the Council’s exposure to credit risk, stringent criteria are adopted by the Investment Committee in the selection of professional fund managers for investments in fund management investment schemes. These professional investment managers adopt stringent quantitative and qualitative criteria in their investment process which cover research and fundamental analysis; strategy and asset allocation including portfolio construction, risk management and performance analysis.

FS28

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Fixed income investments are assessed using stringent investment criterion and this includes, but is not limited to, a thorough analysis of each debt securityâ&#x20AC;&#x2122;s terms and conditions, the availability and quality of the guarantor, as well as financial strength of the issuer. The table below summarises the type of debt securities held by the Council and the credit ratings which are based on reputable credit rating agencies such as Standard and Poor, Moody and Fitchâ&#x20AC;&#x2122;s financial strength rating and its equivalent.

A to AA $

Financial strength ratings A- to BBBOthers* $ $

Total $

Operation Fund 2017 Debt securities: - Corporate bonds

3,097,098

536,343

776,447

4,409,888

2016 Debt securities: - Corporate bonds

2,023,993

2,204,287

539,630

4,767,910

2017 Debt securities: - Corporate bonds

20,363,036

15,704,892

15,259,601

51,327,529

2016 Debt securities: - Corporate bonds

23,064,570

14,493,960

12,031,926

49,590,456

Endowment Fund

* Others refer to credit ratings given by the fund managers. Cash and cash equivalents The maximum exposure to credit risk is represented by the carrying amounts in the balance sheet. The cash and cash equivalents are held with banks and financial institution counterparties which are regulated. Liquidity risk Liquidity risk is the risk that the Council will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Council monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by management to finance the Councilâ&#x20AC;&#x2122;s operations and to mitigate the effects of fluctuations in cash flows.

FS29

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Carrying amount $

Cash flows Less than Contractual 1 year cash flows $ $

Operation Fund 2017 Other payables, including derivatives

3,770,130

2016 Other payables, including derivatives

4,746,590

2017 Other payables, including derivatives

119,972

2016 Other payables, including derivatives

989,988

Endowment Fund

Market risk Market risk is the risk that changes in market prices, such as interest rates, foreign exchange rates and equity prices will affect the Council’s income or value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Currency risk Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Council is exposed to the effects of foreign currency exchange rate fluctuations, principally in Hong Kong dollar (“HKD”), Japanese Yen (“JPY”), United States dollar (“USD”), New Taiwan dollar (“TWD”), Euro (“EUR”) and Korean Won (“KRW”).

FS30

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

The Council’s foreign currency exposures are as follows: HKD $

JPY $

50,072

185,708

– 50,072

USD $

KRW $

Other currencies $

TWD $

EUR $

830,030

–

105,140

–

330,569

– 185,708

– 830,030

– –

– 105,140

– –

– 330,569

63,112

49,066

198,855

24,361

138,800

–

196,508

– 63,112

– 49,066

317 199,172

13,886 38,247

– 138,800

– –

496 197,004

466,626

302,910

3,186,626

424,504

647,256

483,070

777,209

– 466,626

– 302,910

22,700 3,209,326

194,473 618,977

– 647,256

– 483,070

4,632 781,841

340,821

196,262

2,744,427

–

511,136

224,132

732,908

2,482 343,303

– 196,262

6,434 2,750,861

486,478 486,478

– 511,136

– 224,132

1,872 734,780

Operation Fund 2017 Investments Cash and cash equivalents 2016 Investments Cash and cash equivalents

Endowment Fund 2017 Investments Cash and cash equivalents 2016 Investments Cash and cash equivalents

Sensitivity analysis A 10% strengthening of the Singapore dollar, against the following currencies at 31 December would have decreased profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Council considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2016. Profit or loss Operation Endowment Fund Fund $ $ 2017 HKD JPY USD TWD EUR KRW Other currencies

5,007 18,571 83,003 –

10,514 –

33,057

46,663 30,291 320,933 61,898 64,726 48,307 78,184

FS31

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Profit or loss Operation Endowment Fund Fund $ $ 2016 HKD JPY USD TWD EUR KRW Other currencies

6,311 4,907 19,917 3,825 13,880 â&#x20AC;&#x201C;

19,700

34,330 19,626 275,086 48,648 51,114 22,413 73,478

A 10% weakening of the Singapore dollar against the above currencies at 31 December would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant. Interest rate risk The Councilâ&#x20AC;&#x2122;s exposure to market risk for changes in interest rates relates to the interest-bearing cash and cash equivalents and debt securities. The weighted average effective rates at balance sheet date and the periods in which they reprice or mature are disclosed in notes 8 and 9. Sensitivity analysis At the balance sheet date, management assessed that an increase/(decrease) of 100 basis points in the interest rates would have no significant impact on the results of the Council. Price risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. Sensitivity analysis The Councilâ&#x20AC;&#x2122;s investments are recognised at fair value through profit or loss. A 10% increase or decrease in the underlying market prices at the reporting date, with all variables held constant would increase or decrease profit or loss by $6,426,239 (2016: $5,856,692). Estimation of fair value The following summarises the significant methods and assumptions used in estimating the fair values of financial instruments of the Council.

FS32

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Investments in equity and debt securities The fair value of quoted financial assets at fair value through profit or loss and available-for-sale financial assets is determined by reference to their quoted bid prices at the reporting date. The fair value of unquoted debt securities is provided by investment fund managers as obtained from recognised market makers. Derivatives The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual period to maturity of the contract using a risk-free interest rate (based on government bonds). Fair value hierarchy The different levels have been defined as follows: â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Other financial assets and liabilities The carrying amounts of financial assets and liabilities with a maturity of less than one year (including other receivables, cash and cash equivalents and other payables) are assumed to approximate their fair values because of the short period to maturity.

FS33

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Accounting classifications and fair values The carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy are as follows. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. Carrying amount

Note

Fair value

Held-fortrading $

Loans and receivables $

Availablefor-sale $

Other financial liabilities $ – – – – – – –

2017 Operation Fund Direct investments Equity securities Debt securities Other receivables* Derivative assets Cash and cash equivalents

5 8 8 7 7 9

– 1,861,046 4,409,888 – 56,520 – 6,327,454

– – – 2,858,145 – 12,587,091 15,445,236

38,750 – – – – – 38,750

Other payables

– –

Endowment Fund Equity securities Debt securities Other receivables* Derivative assets Cash and cash equivalents

8 8 7 7 9

6,222,498 51,327,529 – 384,909 – 57,934,936

– – 346,875 – 6,333,576 6,680,451

– – – – – –

Other payables

– –

(3,770,130) (3,770,130) – – – – – – (119,972) (119,972)

Total $

Level 1 $

Level 2 $

Level 3 $

38,750 1,861,046 4,409,888 2,858,145 56,520 12,587,091 21,811,440

38,750 1,861,046 4,154,983

– – 254,905

– – –

–

56,520

–

6,222,498 24,210,134

– 27,117,395

– –

–

384,909

–

(3,770,130) (3,770,130) 6,222,498 51,327,529 346,875 384,909 6,333,576 64,615,387 (119,972) (119,972)

* Excludes prepayments and derivative assets

FS34

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Carrying amount

Note

Fair value

Held-fortrading $

Loans and receivables $

Availablefor-sale $

Other financial liabilities $

– 708,967 4,767,910 – – 5,476,877

– – – 2,755,418 9,100,172 11,855,590

37,000 – – – – 37,000

– – – – – –

– – –

– – 381,483 8,796,566 9,178,049

– – – – –

– – –

Total carrying amount $

Level 1 $

Level 2 $

37,000 708,967 3,703,967

– – 1,063,943

Level 3 $

2016 Operation Fund Direct investments Equity securities Debt securities Other receivables* Cash and cash equivalents

5 8 8 7 9

Other payables Derivative liabilities

13 13

Endowment Fund Equity securities Debt securities Other receivables* Cash and cash equivalents

8 8 7 9

Other payables Derivative liabilities

13 13

– (56,083) (56,083)

4,443,149 49,590,456 – – 54,033,605 – (887,480) (887,480)

(4,690,507) – (4,690,507)

– – – – – (102,508) – (102,508)

37,000 708,967 4,767,910 2,755,418 9,100,172 17,369,467 (4,690,507) (56,083) (4,746,590)

4,443,149 49,590,456 381,483 8,796,566 63,211,654 (102,508) (887,480) (989,988)

–

4,443,149 37,128,353

–

(56,083)

– 12,462,103

(887,480)

– – –

–

– –

–

* Excludes prepayments

FS35

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Capital management and reserve policy The Council is a company limited by guarantee with no issued capital. The Council builds up its capital from donations received and also through prudent management of its financial resources. The capital of the Council includes reserve fund in its Endowment Fund and accumulated surplus fund in its Operation Fund. The Councilâ&#x20AC;&#x2122;s capital is closely monitored to ensure that there are sufficient capital and reserve to support its programmes and activities on an on-going basis. The Council constantly assesses its capital and reserve adequacy and explores ways to maximise existing resources within the community as it conducts its budget planning and review. The Council has an Investment Committee to review and manage the capital fund. Most of the Councilâ&#x20AC;&#x2122;s capital funds are invested with regulated financial institutions based on stringent criteria in the selection of professional fund managers. The Council has set guidelines on its investment to safeguard the capital. Of the funds invested with professional fund managers, one out of the four portfolios managed by fund managers are with guarantee of the return of principal sum. The funds are invested in investments which are in compliance with the provisions of the Trustees Act. There were no changes in the Councilâ&#x20AC;&#x2122;s approach to capital management during the year. The Council is not subject to externally imposed capital requirements.

Employees remuneration The number of employees whose remuneration amounted to over $100,000 during the year are as follows: 2017 $100,000 to $200,000 $200,001 to $300,000

2016 11 1

11 1

The number of staffs employed by the Council as at 31 December 2017 was 93 (2016: 84).

FS36

Chinese Development Assistance Council Financial statements Year ended 31 December 2017

Related parties Compensation of key management personnel Key management personnel of the Council are those having the authority and responsibility for planning, directing and controlling the activities of the Council. The Board of Directors, members of the Investment Committee, the executive director and deputy executive director of the Council are considered as key management personnel of the Council. The Board of Directors and members of the Investment Committee did not receive any form of remuneration during the year. Key management personnel compensation comprised:

Short-term employee benefits Contributions to defined contribution plans

2017 $

2016 $

214,119 18,944 233,063

197,154 16,834 213,988

Other related party transactions In year 2016, the Council sold plant and equipment at its carrying amount of $65,070 to its associate.

Subsequent events On 5 January 2018, the Council awarded a contract with value sum of $427,135 to a vendor for development of web based integrated information system. The contract includes maintenance and services of $102,631.

FS37

Chinese Development Assistance Council Year ended 31 December 2017

(For Management Purposes Only) Structure, governance and management The founding members of the Council are the Singapore Chinese Chamber of Commerce and Industry (“SCCCI”) and the Singapore Federation of Chinese Clan Associations (“SFCCA”). CDAC has formed two separate Boards, the Board of Directors and Board of Trustees, to manage the Operation Fund and the Endowment Fund respectively. The Board of Directors and the Board of Trustees of the Council are formed through a tripartite nomination. The Patron, the SCCCI and the SFCCA each nominate their representatives to serve on the two Boards. The Board of Trustees comprises Chairman of the Board of Directors, seven representatives each from the SCCCI and SFCCA and ten other persons nominated by the Patron of the Council. The Board of Directors comprises four representatives each from the SCCCI and SFCCA and nine other persons nominated by the Patron. For better governance and management, the Board of Directors has set up five Board Committees to oversee the operation of the various programmes of the Council. The Chairman of each Board Committee is appointed by the Chairman of the Board of Directors. The five Board Committees are: Board Committees

Programmes

Student & Parent Education

Student Education & Excellence Development CDAC-SFCCA Bursary Parent Development

Family & Worker Support

Family Assistance & Development CDAC-SFCCA Hardship Assistance Fund Worker Support

Fulfilling Ageing

Seniors Programme

Community Outreach & Engagement

CDAC Centres

Volunteers Engagement & Development

Volunteers Programme

In addition, the Council has set up a Finance & Establishment Committee to oversee the manpower establishment, financial and human resource management of the Council and an Investment Committee to manage and invest the funds of the Council. The Council has also set up an Audit & Risk Committee to serve as an independent and objective party to assist the Board of Directors and Board of Trustees in fulfilling its fiduciary responsibilities relating to corporate accounting and reporting practices. The Board also set up the Stakeholders Communications Committee to review, recommend and implement communications strategies to enhance stakeholders’ awareness and support of CDAC’s cause and programmes. Board members and staff are required in their respective capacities to act at all times in the best interest of the Council. Policies and procedures are designed to prevent and address potential conflict of interest situations while promoting ethical conduct of officers and staff in line with the strong focus of the Council on integrity.

Chinese Development Assistance Council Year ended 31 December 2017

The roles of the Board of Directors The roles of the Board of Directors are to: (1) formulate key objectives, strategies and directions for the operation of the Council; (2) monitor and review the progress of the various programmes and activities of the Council; (3) review and approve annual budgets for the various programmes and activities of the Council; and (4) abide by the duties, responsibilities and liabilities of a Director as specified in the Companies Act as well as under common law.

The roles of the Board of Trustees The roles of the Board of Trustees are to: (1) help mobilise community support to achieve the objectives of the Council; (2) hold in trust any assets for the Council at the request of the Board of Directors; and (3) offer observations, comments and advice on the general programmes adopted by the Council. The Board of Trustees is entrusted with the duty of managing and building up the Endowment Fund. Any usage of the Endowment Fund to finance the Councilâ&#x20AC;&#x2122;s operation requires the approval of the Board of Trustees. Presentation of Separate Financial Statements The Board of Directors governs the Operation Fund and the Board of Trustees governs the Endowment Fund independently. Given the separate purpose and controls of the two Funds, CDAC has been presenting its Operation Fund and Endowment Fund as separate financial statements. Such presentation results in a fair presentation of the state of affairs of the two Funds.

Chinese Development Assistance Council Year ended 31 December 2017

Organisation structure of the Council The Councilâ&#x20AC;&#x2122;s organisation structure is as follows: Patron of CDAC

Board of Directors

Board of Trustees

Board Committees Audit & Risk Community Outreach & Engagement Family & Worker Support Finance & Establishment Fulfilling Ageing Stakeholders Communications Student & Parent Education Volunteers Engagement & Development

Investment Committee

Executive Director

Deputy Executive Director

Community Outreach & Engagement Department

Corporate Services Department

Family & Worker Support Department

Fulfilling One-Stop Ageing Service Department Department

Stakeholders Communications Department

Student & Volunteers Engagement & Parent Development Education Department Department

Key roles and functions of the various committees, key management and departments of the Council The roles and functions of the various Board Committees are to: (1) oversee the operation, progress and development of the various programmes; (2) review and assess the effectiveness of the programmes; and (3) recommend and implement new programmes and initiatives to meet the needs of the respective target groups. The key roles and functions of the management and departments of the Council are to: (1) carry out the day-to-day operation of the various programmes and activities; (2) provide secretariat support to the various Board Committees to implement the programmes and activities; and (3) monitor the progress of the various programmes/activities and provide Board Committees overseeing the various programmes with timely progress report of the programmes.

Chinese Development Assistance Council Year ended 31 December 2017

CDAC Vision The Council embarked on a strategic review exercise to sharpen its programmes so as to better serve the community and remain relevant. The changes were implemented in 2017. The Vision Statement and Strategic Thrusts were refined so as to better connect with the community: “Committed and Trusted Organisation, Empowered and Caring Community.” The Council has identified five key thrusts to achieve its Vision. They are: (a) (b) (c) (d) (e)

develop and uphold the principle of self-reliance: support the key target groups to achieve social mobility; promote the spirit of mutual support in the community to create a caring society; develop staff and volunteers’ competencies and commitment; and strategic use of systems for organisational development.

Objectives and activities The objective of the Council in helping the key target groups (students, workers and families) to do better and achieve social mobility, remains. The key programmes are re-organised to sharpen the focus of the Council’s programmes and schemes. The programmes are Student & Parent Education Programme, Family & Worker Support Programme, Fulfilling Ageing Programme, Community Outreach & Engagement Programme and Volunteers Engagement & Development Programme. Student & Parent Education programme This programme aims to support the learning needs of students from the lower income households through programmes for both students and parents. The focus is to provide quality and accessible tuition and enrichment programmes, as well as expand outreach to beyond the students in primary and secondary schools, and also to parents through talks and workshops. Family & Worker Support programme This programme aims to provide holistic support to lower income families and workers, in particular those whose employment difficulties are compounded with family challenges. The focus is on engaging, supporting and strengthening the functioning of these families and workers. Fulfilling Ageing programme This is a new programme to support seniors aged 50 and above to age actively and meaningfully, and also promotes values where a society cares for and respects the seniors. Community Outreach & Engagement programme This programme manages the CDAC Centres which serves as a strategic platform to strengthen the Council’s outreach and engagement with the community which includes the key target groups and also community partners.

Chinese Development Assistance Council Year ended 31 December 2017

Volunteers Engagement & Development programme This programme focuses on strengthening the Council’s engagement and development of its volunteers, and expanding volunteering opportunities through its various programmes. Achievements and performance during the year During the year, the Council implemented the changes from the re-organisation and enhanced its efforts to help students, families and workers to strive for upward social mobility and better future through its various assistance schemes and outreach. In total, our core programmes reached out to more than 20,000 lower income households in 2017. This included education and development programmes, bursary and subsidy schemes for needy students. With the launch of the seniors programme in 2017, CDAC also engaged seniors in fulfilling ageing activities. Besides students and seniors, CDAC also supported families with financial, employment support and other assistances to strengthen their resilience and encourage them to become self-reliant. The achievements for the various programmes are made possible through donations from the Chinese community besides receiving fee income as well as grants and subsidies from various government agencies. Plans for 2018 and beyond The Council concluded its strategic review and re-organised its programmes to fine-tune its focuses to remain relevant. The changes were implemented in 2017. While CDAC will continue to support students and families with broad-based programmes such as tuition and financial assistance, it will deepen its support for the more vulnerable families. It can come in the form of helping parents find jobs, supporting the children’s education and providing families with emotional support. Case officers will journey with some of these families to overcome their challenges and achieve self-reliance. CDAC will enhance its tuition and enrichment programmes for students. There will be greater emphasis to develop students’ thinking and processing skills, as well as to increase students’ motivation, resilience and attention span. CDAC will also continue to support the expansion of the school-based student care centres jointly operated by the Self-Help Groups. To uplift a family, CDAC needs the support of partners, volunteers and supporters. CDAC will foster closer ties with its partners and expand its collaborations with the community.