SINDA Financial Statements 2012

FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2012

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INCOME AT A GLANCE

EXPENDITURE AT A GLANCE

3%

TOTAL INCOME 2012 Donations CPF Contributions Scheme

$7,734,411

Donations/Sponsorships

$2,700,737

Government Subvention

$1,700,000

MCYS Funding, NCSS & STB FSC Grant/SPMF

$2,948,875

Programme & tuition fees received Interest/Other Income

TOTAL EXPENDITURE 2012

19%

$465,988 $48,852

50% 11%

TOTAL INCOME

TOTAL INCOME 2011 $7,348,573

Donations/Sponsorships

$2,689,981

Government Subvention

$1,700,000

MCYS Funding, NCSS & STB FSC Grant/SPMF

$2,535,127

Programme & tuition fees received Interest/Other Income

17%

12%

$435,925 $1,451,983

8% 7% 4% 4%

55%

6% 14%

TOTAL EXPENDITURE 2011

$448,588 $10,368

$1,220,341

2%

$18,489,043

3%

Donations CPF Contributions Scheme

$10,078,436 $2,622,862 $1,195,168 $686,010 $798,318

TOTAL EXPENDITURE

17%

$15,598,863

Education Programmes Family Services Youth Development Programmes Parent Programmes Children Programmes Community Engagement & Volunteer Management Corporate & Marketing Communications Administrative and Governance expenses

50%

Education Programmes Family Services Youth Development Programmes Children Programmes Community Engagement & Volunteer Management & SINDA 2020 Expenses Corporate & Marketing Communications Administrative and Governance expenses

$8,460,506 $1,948,253 $970,500 $417,409

3%

9%

$2,136,686 $453,192 $1,463,604

14% 53%

3% 6%

TOTAL INCOME

$14,732,637

18%

TOTAL EXPENDITURE

$15,850,150

12%

57

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58

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STATEMENT BY PRESIDENT, TREASURER AND CHIEF EXECUTIVE OFFICER

We, Indranee T. Rajah, R. Subramaniam Iyer and T. Raja Segar, do hereby state that in our opinion: (a) the financial statements of Singapore Indian Development Association (the “Association”) set out on pages 61 to 93 are properly drawn up to present fairly in all material respects, the state of affairs ffairs of the Association as at 31 December ff 2012 and the income and expenditure, changes in funds and cash flows of the Association for the year ended on that date in accordance with the Singapore Financial Reporting Standards; and (b) at the date of this statement, the Association will be able to pay its debts as and when they fall due.

The Executive Committee has, on the date of this statement, authorised these financial statements for issue.

INDEPENDENT AUDITORS’ REPORT

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Members of Singapore Indian Development Association (Registered under the Singapore Charities Act, Chapter 37 and the Singapore Societies Act, Chapter 311)

REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of Singapore Indian Development Association (the “Association”), which comprise the balance sheet as at 31 December 2012, statement of comprehensive income, statement of changes in funds and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 61 to 93.

Executive Committee’s responsibility for the financial statements

On behalf of the Executive Committee

The Executive Committee is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of the Singapore Charities Act, Chapter 37 (the “Charities Act”), the Singapore Societies Act, Chapter 311 (the “Societies Act”) and Singapore Financial Reporting Standards, and for such internal control as the Executive Committee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Indranee T. Rajah President

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of these financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ffectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of ff accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

R. Subramaniam Iyer Treasurer

Opinion In our opinion, the financial statements of the Association present fairly, in all material respects, the state of affairs ffairs of the ff Association as at 31 December 2012, the income and expenditure, changes in funds and the cash flows of the Association for the year then ended in accordance with the Provisions of the Charities Act and Singapore Financial Reporting Standards.

T. Raja Segar Chief Executive Officer 27 March 2013

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BALANCE SHEET

INDEPENDENT AUDITORS’ REPORT (CONTINUED)

(AS AT 31 DECEMBER 2012)

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Note

2012 $

61

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2011 $

In our opinion: (a) the accounting and other records required by the regulations enacted under the Societies Act to be kept by the Association have been properly kept in accordance with those regulations; and (b) the fund-raising appeal held during the year ended 31 December 2012 has been carried out in accordance with Regulation 6 of the Societies Regulations issued under the Societies Act and proper accounts and other records have been kept of the fund-raising appeal.

During the course of our audit, nothing has come to our attention that causes us to believe that during the year: (a) The use of the donation monies was not in accordance with the objectives of the Association as required under Regulation 16 of the Charities (Institutions of a Public Character) Regulations; and (b) The Association has not complied with the requirements of Regulation 15 (fund-raising expenses) of the Charities (Institutions of a Public Character) Regulations.

Non-current asset Property, plant and equipment Current assets Government Subvention receivable Donations receivable – Central Provident Fund Board Scheme Donations receivable – Singapore Totalisator Board Deposits, prepayments and other receivables Financial assets – Investments Cash and cash equivalents

4

1,127,804

880,409

5

1,700,000 658,822 375,000 507,600 24,640,877 4,022,565 31,904,864 33,032,668

1,700,000 623,356 1,000,000 909,932 23,793,689 5,096,289 33,123,266 34,003,675

26,752,650 – 26,752,650 – 26,752,650

7,835,510 995,850 8,831,360 18,464,260 27,295,620

1,195,456 5,084,562 6,280,018 33,032,668

1,263,426 5,444,629 6,708,055 34,003,675

6 7 8

Total assets Representing: Funds Unrestricted funds Accumulated fund Sinking fund

KPMG LLP Public Accountants and Certified Public Accountants Singapore 27 March 2013

Endowment funds Total funds Current liabilities Other payables and accrued expenses Unutilised specific grants/donations Total liabilities Total liabilities and funds

9 10 11

12 13

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

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63

STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 31 DECEMBER 2012

A NEW MOMENTUM

2012 Unrestricted Fund Financial activities/Income and expenditure Incoming resources Incoming resources from generated funds (i) Voluntary income: Donation – Central Provident Fund (CPF) Contribution Donation from Singapore Totalisator Board (STB) Donation sponsorships Other donations Income from School Pocket Money Fund (SPMF)

2011 Unrestricted Funds

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

7,734,411

-

7,734,411

7,348,573

-

7,348,573

-

-

7,348,573

375,000 1,635,104 690,633

-

375,000 1,635,104 690,633

500,000 1,610,772 579,209

-

500,000 1,610,772 579,209

-

-

500,000 1,610,772 579,209

92,320

-

92,320

58,530

-

58,530

-

-

58,530

-

664,561

664,561

-

110,152

110,152

33,046

388,743

531,941

4,656

125,172 -

125,172 4,656

6,886

762 -

762 6,886

224 108

43,732 161

44,718 7,155

44,196

-

44,196

3,482

-

3,482

-

-

3,482

465,988

-

465,988

448,588

-

448,588

-

-

448,588

5

1,700,000 36,000

-

1,700,000 36,000

1,700,000 162,000

-

1,700,000 162,000

-

-

1,700,000 162,000

14

433,581

-

433,581

433,581

-

433,581

-

-

433,581

571,653 933,963

-

571,653 933,963

380,965 900,000

-

380,965 900,000

-

-

380,965 900,000

181,572

-

181,572

256,106

-

256,106

-

-

256,106

341,782 57,557

-

341,782 57,557

127,739 8,979

-

127,739 8,979

-

-

127,739 8,979

70,436 94,551

-

70,436 94,551

23,899 79,868

-

23,899 79,868

-

-

23,899 79,868

Note

(ii) Investment income: Dividend income Interest income debt securities fixed deposits and bank balances (iii) Other income

Endowment Funds $

Sinking Fund $

Total $

Incoming resources from charitable activities (i) Income from approved projects: Tuition programme fees (ii) Government Grants: Government Subvention GST Offset Package Grant Ministry of Community Development, Youth and Sports (MCYS), Temporary Occupation Licence (TOL) Fee Grant MCYS – Family Services Centre (FSC) Funding MCYS – Additional Funding National Council of Social Services (NCSS) Funding Singapore Totalisator Board (STB) – Family Services Centre Funding Temasek Care Funding Voluntary Welfare Organisation (VWO) Charities Capability Fund (VCF) Funding by MCYS Other FSC Funding

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

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65

STATEMENT OF COMPREHENSIVE INCOME (CONTINUED) YEAR ENDED 31 DECEMBER 2012

A NEW MOMENTUM

2012 Unrestricted Fund Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

Accumulated Fund Operations $

Accumulated Fund Investments $

Accumulated Fund Total $

135,460

-

135,460

103,460

-

103,460

-

-

103,460

15,598,863

(126,147) (15,072) 1,698,696 2,347,210

(126,147) (15,072) 1,698,696 17,946,073

14,732,637

39,437 (165,556) (15,205)

39,437 (165,556) 14,717,432

11,831 (49,667) (4,458)

377,514 (367,898) (1,559,299) (1,117,047)

428,782 (367,898) (1,774,522) 13,595,927

99,579

-

99,579

112,332

-

112,332

-

-

112,332

14 14 14 14 14

10,078,436 2,530,542 1,195,168 686,010 798,318

-

10,078,436 2,530,542 1,195,168 686,010 798,318

8,460,506 1,889,723 970,500 417,409

-

8,460,506 1,889,723 970,500 417,409

-

-

8,460,506 1,889,723 970,500 417,409

14

1,220,341

-

1,220,341

2,136,686

-

2,136,686

-

-

2,136,686

14

435,925

-

435,925

453,192

-

453,192

-

-

453,192

92,320

-

92,320

58,530

-

58,530

-

-

58,530

14

1,352,404 18,489,043

-

1,352,404 18,489,043

1,351,272 15,850,150

-

1,351,272 15,850,150

-

-

1,351,272 15,850,150

16

(2,890,180)

2,347,210

(542,970)

(1,117,513)

(15,205)

(1,132,718)

(4,458)

(1,117,047)

(2,254,223)

(2,890,180)

2,347,210

(542,970)

(1,117,513)

(15,205)

(1,132,718)

(4,458)

(1,117,047)

(2,254,223)

Note

(iii) Other Grants: Singapore Press Holdings (SPH) Newspaper Project Funding Other incoming resources Investments gains/(losses): Net (loss)/gain on disposal of trading securities Exchange loss Unrealised gain/(loss) on trading securities Total incoming resources Resources Expended Cost of generating funds Cost of generating voluntary income: CPF Agency Charges Charitable activities: Education programmes Family services Youth development programmes Parent programmes Children programmes Community Engagement and Volunteer Management Corporate and Marketing Communications School Pocket Money Fund (SPMF) programme Administrative and Governance costs: Corporate expenses Total resources expended Net (deficit)/gain for the year Other comprehensive income for the year, net of income tax Total comprehensive (loss)/income for the year

2011 Unrestricted Funds

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

Endowment Funds $

Sinking Fund $

Total $

66

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STATEMENT OF CHANGES IN FUNDS

CASH FLOW STATEMENT

YEAR ENDED 31 DECEMBER 2012

YEAR ENDED 31 DECEMBER 2012

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Unrestricted Fund Accumulated Fund $ At 1 January 2011 Total comprehensive loss for the year Net deficit for the year Other comprehensive income for the year, net of income tax Total comprehensive loss for the year Transfers from Endowment Funds to Accumulated Fund (Note 9) At 31 December 2011 At 1 January 2012 Total comprehensive loss for the year Net deficit for the year Other comprehensive income for the year, net of income tax Total comprehensive loss for the year Transfers from Sinking Fund to Accumulated Fund (Note 9) Transfers from Endowment Funds to Accumulated Fund (Note 9) At 31 December 2012

7,658,427

Endowment Funds (Note 11) $

Sinking Fund $ 1,000,308

20,891,108

Note Total $ 29,549,843

(1,132,718)

(4,458)

(1,117,047)

(2,254,223)

(1,132,718)

(4,458)

(1,117,047)

(2,254,223)

1,309,801 7,835,510

995,850

(1,309,801) 18,464,260

27,295,620

7,835,510

995,850

18,464,260

27,295,620

(542,970)

-

-

(542,970)

(542,970)

-

-

(542,970)

995,850

(995,850)

-

-

18,464,260 26,752,650

-

(18,464,260) -

26,752,650

Cash flows from operating activities Net deficit for the year Adjustments for: Dividend income Loss/(Gain) on disposal of trading securities Unrealised (gain)/loss on trading investment securities Exchange loss Depreciation Interest income: - debt securities - fixed deposits and bank balances

4

Changes in working capital: Donations, grants and subventions receivables Deposits, prepayments and other receivables Other payables, accrued expenses and unutilised grants Net cash (used in)/generated from operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of investments Proceeds from sale of investments Interest received: - debt securities - fixed deposits and bank balances Dividend received Net cash used in investing activities Cash flows from financing activities Fixed deposits pledged Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 December

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

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

8

2011 $

2012 $

(542,970)

(2,254,223)

(664,561) 126,147 (1,698,696) 15,072 422,729

(531,941) (428,782) 1,774,522 367,898 315,042

(125,172) (4,656) (2,472,107)

(44,718) (7,155) (809,357)

589,534 402,332 (428,036) (1,908,277)

(4,363) (83,775) 1,357,800 460,305

(670,124) (6,914,359) 6,422,873

(596,595) (9,363,023) 8,776,712

125,172 4,656 664,561 (367,221)

44,718 7,155 531,941 (599,092)

-

(101,000) (101,000)

(2,275,498) 7,363,063 5,087,565

(239,787) 7,602,850 7,363,063

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69

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2012

These notes form an integral part of the financial statements.

A NEW MOMENTUM

2.3

The financial statements are presented in Singapore dollars which is the Association’s functional currency.

All financial information is presented in Singapore dollars, unless otherwise stated.

The financial statements were authorised for issue by the Executive Committee (“Management”) on 27 March 2013.

2.4

1

DOMICILE AND ACTIVITIES

The Association’s Vision and Mission includes the following:

In the application of the Association’s accounting policies, which are described in note 3, Management is of the opinion that there is no instance of application of judgement which is expected to have a significant effect on the amounts recognised in the financial statements.

Vision 2.5

Changes in accounting policies

Mission

On 1 January 2012, the Association adopted the new or amended FRS and Interpretations to FRS that are mandatory for application from that date.

To build a well-educated, resilient and confident community of Indians that stands together with the other communities in contributing to the progress of multi-racial Singapore. In order to achieve its vision and mission the Association has articulated four Strategic Thrusts as follows:

The adoption of these new or amended FRS and Interpretations to FRS did not result in substantial changes to the Association’s accounting policies and had no material effect to the amounts reported for the current or prior financial years.

i) ii) iii) iv)

Maximising educational opportunities for all students Engaging parents to play an active role in their children’s lives Inspiring youths towards greater achievement Forging a stronger relationship with community partners

The Association runs a range of programmes, services and initiatives aligned to its four Strategic Thrusts.

The Association is registered as a charity under the Charities Act, Chapter 37 and it has been granted as an Institution of Public Character (IPC) under the Charities Act for a period of 5 years, up to 15 December 2016.

2

BASIS OF PREPARATION

2.1

Statement of compliance The financial statements are prepared in accordance with Singapore Financial Reporting Standards (FRS).

2.2

Use of estimates and judgements The preparation of the financial statements in conformity with the FRSs requires management to make judgements, estimates and assumptions that affects the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. There are no significant assumptions or estimation uncertainties that have a significant risk of resulting in a material adjustment to the financial statements within next financial year.

Singapore Indian Development Association (the “Association”) is a society registered with the Registrar of Societies under the Societies Act, Chapter 311. Its registered office is located at No. 1 Beatty Road, Singapore 209943.

To build a strong and vibrant Singaporean Indian community together.

Functional and presentation currency

Basis of measurement The financial statements have been prepared on the historical cost basis except as disclosed in accounting policies below.

3

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

3.1

Foreign currency transactions Transactions in foreign currencies are translated into Singapore dollars at foreign exchange rates ruling at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated into Singapore dollars at foreign exchange rate ruling at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to Singapore dollars at the exchange rate at the date on which the fair value is determined.

Foreign currency differences arising from retranslation are recognised in income and expenditure.

70

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3.2

71

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

YEAR ENDED 31 DECEMBER 2012

Property, plant and equipment

A NEW MOMENTUM

3.3

Financial instruments

Recognition and measurement

Non-derivative financial assets

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

The Association initially recognises loans and receivables on the date that they are originated. All other financial assets including investments are recognised initially on the trade date at which the Association becomes a party to the contractual provisions of the instrument.

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 property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

The Association 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. Any interest in transferred financial assets that is created or retained by the Association is recognised as a separate asset or liability.

The gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognised in income and expenditure.

Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Association 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.

Subsequent costs

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.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Association 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 property, plant and equipment are recognised in income and expenditure as incurred.

Depreciation

Loans and receivables comprise government subvention, donations, other receivables and cash and cash equivalents.

Financial assets - Investments at fair value through income and expenditure

Depreciation is based on the cost of an asset, less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately.

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Financial assets - investments are classified as at fair value through income and expenditure if they are held for trading or are designated as such upon initial recognition. Financial assets are designated as fair value through income and expenditure if the Association manages such investments and makes purchase and sale decisions based on their fair value. Upon initial recognition, attributable transaction costs are recognised in income and expenditure as incurred. The Association’s investments which are classified as financial assets at fair value through income and expenditure are measured at fair value, and changes therein are recognised in income and expenditure.

The estimated useful lives for the current and comparative years are as follows: Non-derivative financial liabilities Computer equipment Furniture and fittings Office equipment Office renovation

3 years 5 years 5 years 3 years

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

Financial liabilities are recognised initially on the trade date at which the Association becomes a party to the contractual provisions of the instrument.

The Association 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 Association 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 Association’s non-derivative financial liabilities comprises trade and other payables.

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YEAR ENDED 31 DECEMBER 2012

Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.

3.4

73

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

A NEW MOMENTUM

3.5

Provisions are recognised if, as a result of past events the Association 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.

Impairment Financial assets (including receivables)

3.6

A financial asset is assessed at each reporting date 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 had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

Employee benefits Defined contribution plan Obligations for contributions to defined contribution plans are recognised as an expense in income and expenditure as incurred.

Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Association on terms that the Association would not consider otherwise, indications that a debtor will enter bankruptcy.

Short-term accumulating compensated absences Short-term accumulating compensated absences are recognised when employees render services that increase their entitlement to future compensated absences.

The Association considers evidence of impairment for 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. Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics.

In assessing collective impairment, the Association uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or lesser than suggested by historical trends.

Provisions

Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A provision is recognised for the amount expected to be paid under short-term cash bonus if the Association 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.

3.7

Income recognition Donations from Central Provident Fund scheme and Singapore Totalisator Board are recognised on the accrual basis. All other donations are recognised on the receipt basis.

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 income and expenditure and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through income and expenditure.

Tuition programme fees income is recognised on the accrual basis.

Grants for specific purposes are recognised to the extent the related expenditure has been incurred and the grant is receivable.

Government Subvention and grants are recognised on the accrual basis.

Non-financial assets The carrying amounts of the Association’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The impairment loss is charged to income and expenditure.

Impairment losses recognised in prior periods are 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 asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

3.8

Resources expended on charitable activities The costs of these activities comprise direct expenditure including, direct staff costs attributable to the activities.

In addition, it also includes support costs (costs relating to central functions) and other costs that have been allocated on the basis consistent with the use of the resources.

Governance costs Governance costs comprise all costs attributable to the general running of the Association, in providing the governance infrastructure and in ensuring public accountability.

74

A NEW MOMENTUM

3.9

75

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

YEAR ENDED 31 DECEMBER 2012

Finance income and expenses

A NEW MOMENTUM

4

At 1 January 2011 Additions At 31 December 2011 Additions Written off At 31 December 2012

When the association is a lessee of an operating lease

At 1 January 2011 Depreciation charge for the year At 31 December 2011 Depreciation charge for the year Written off At 31 December 2012

Funds of the Association The Association maintains unrestricted and restricted funds.

Restricted funds Funds set up for specific purposes are classified as restricted funds and may only be utilised in accordance with the purposes established by the source of such funds.

At 1 January 2011 At 31 December 2011 At 31 December 2012

5

Unrestricted funds comprised of general operating and investment funds. These funds are available for use at the discretion of the management in furtherance of the general objectives of the Association.

A number of new standards, amendments to standards and interpretations are effective for the annual periods beginning after 1 January 2012, and have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the Association.

$

508,625 395,355 903,980 147,672 (86,360) 965,292

664,979 58,457 723,436 20,015 (271,061) 472,390

331,401 6,886 338,287 49,987 (251,739) 136,535

443,944 135,897 579,841 145,709 – 725,550

– – – 306,741 – 306,741

1,948,949 596,595 2,545,544 670,124 (609,160) 2,606,508

331,612

522,275

274,032

222,174

–

1,350,093

137,070 468,682

57,699 579,974

16,212 290,244

104,061 326,235

– –

315,042 1,665,135

182,856 (86,360) 565,178

60,320 (271,061) 369,233

22,004 (251,739) 60,509

157,549 – 483,784

– – –

422,729 (609,160) 1,478,704

177,013 435,298 400,114

142,704 143,462 103,157

57,369 48,043 76,026

221,770 253,606 241,766

– – 306,741

598,856 880,409 1,127,804

$

Carrying amount

With effect from 1 January 2012, the restricted funds have ceased to exist.

New standards and interpretations not yet adopted

$

Accumulated depreciation

Where the Association has the use of assets under operating leases, payments made under the leases are recognised in income and expenditure on the straight-line basis over the term of the lease. Lease incentives received are recognised in the income and expenditure as an integral part of the total operating expenses.

3.12

Office renovation

Cost

Leases

Unrestricted funds All income and expenses other than those attributable to restricted funds and common overheads are recorded in unrestricted fund’s statement of financial activities/income statement.

Total

Office equipment

$

Finance expenses comprise interest expense on borrowings, unwinding of the discount on provisions, net foreign currency losses, changes in the fair value of financial assets at fair value through income and expenditure and impairment losses recognised on financial assets that are recognised in income and expenditure.

3.11

Capital work-in progress $

Furniture and fittings $

Computer equipment

Finance income comprises interest income on funds invested, dividend income, gains on the disposal of investments, net foreign currency gains and changes in the fair value of investments at fair value through income and expenditure. Dividend income from equity investments is recognised when the dividends are received.

Interest income is recognised on the accrual basis using the effective interest method.

3.10

PROPERTY, PLANT AND EQUIPMENT

GOVERNMENT SUBVENTION RECEIVABLE This represents the annual “dollar for dollar” matching grant receivable, subject to a maximum of $1,700,000 (2011: $1,700,000), from the Ministry of Community Development, Youth and Sports.

6

DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES

Deposits GST Offset Package grant receivable from Ministry of Community Development, Youth and Sports Other receivables Loans and receivables Prepayments

2012 $

2011 $

33,451

33,402

36,000 392,212 461,663 45,937 507,600

164,000 696,932 894,334 15,598 909,932

76

A NEW MOMENTUM

7

YEAR ENDED 31 DECEMBER 2012

FINANCIAL ASSETS – INVESTMENTS

A NEW MOMENTUM

Note

Held for trading: Equity securities Debt securities Commodities/Precious Metals Trust Funds REITS/Real Estate Funds Absolute return funds Private equity funds Mutual funds -

77

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Cash at bank investment account held with fund managers/custodians

8

2012 $ 6,915,635 10,276,487 996,764 4,019,732 107,199 906,200 252,860 23,474,877

2011 $ 5,925,980 9,178,774 1,313,928 4,016,503 132,945 857,785 – 21,425,915

1,166,000 24,640,877

2,367,774 23,793,689

In prior year, the Executive Committee and the Board of Trustees has approved the transfer of $1,039,560 from Vijay and Amar Trust Fund and $270,241 from Padma and Hari Harilela Scholarship Fund respectively from the Endowment Fund to the Accumulated Fund.

During the financial year, the Executive Committee and the Board of Trustees has approved the transfer of $995,850 from Sinking Fund (Note 10) and $18,464,260 from Endowment Funds (Note 11) to the Accumulated Fund.

These funds have been included in the following assets of the accumulated fund:

(i)

At the balance sheet date, the Association contracted commitments of S$448,190 (2011: S$953,809) in relation to its investments.

8

CASH AND CASH EQUIVALENTS

Note

Cash in hand and at bank Fixed deposits Cash at bank investment account Fixed deposits pledged Cash and cash equivalents for cash flow statement

7

2012 $ 3,381,966 640,599 4,022,565 1,166,000 5,188,565 (101,000) 5,087,565

(ii)

2011 $ 2,703,323 2,392,966 5,096,289 2,367,774 7,464,063 (101,000) 7,363,063

(iii)

(iv)

Fixed deposits have been pledged to obtain a letter of guarantee in lieu of deposit fee from a bank for the purpose of obtaining a Temporary Occupation Licence for the Association’s premises (Note 14).

9

ACCUMULATED FUND The accumulated fund is the Association’s general operating funds and can be used for any of the Association’s activities.

The accumulated fund is represented by the following assets and liabilities: 2012 2011 $ $ Property, plant and equipment 880,409 1,127,804 Government Subvention receivable 1,700,000 1,700,000 Donations receivable – Central Provident Fund Board Scheme 623,356 658,822 Donation receivable – Singapore Totalisator Board 1,000,000 375,000 Deposits and prepayments, other receivables 909,932 507,600 Financial assets – Investments 4,213,701 23,474,877 Cash at bank investment account 156,969 1,166,000 Cash in hand and at bank 2,703,323 3,371,971 Fixed deposits 650,594 2,355,875 Other payables and accrued expenses (1,195,456) (1,263,426) Unutilised specific grants (5,084,562) (5,444,629) 7,835,510 26,752,650

10

Financial assets – investments - Accumulated Fund - Vijay and Amar Trust Fund - Padma and Hari Harilela Scholarship Fund Cash at bank investment account - Accumulated Fund - Vijay and Amar Trust Fund - Padma and Hari Harilela Scholarship Fund Cash in hand and at bank - Accumulated Fund - Vijay and Amar Trust Fund Fixed deposits - Accumulated Fund - Vijay and Amar Trust Fund

2012 $

2011 $

22,222,285 964,495 288,097 23,474,877

3,083,196 870,453 260,052 4,213,701

1,138,866 20,893 6,241 1,166,000

112,667 34,113 10,189 156,969

3,371,971 – 3,371,971

2,668,516 34,807 2,703,323

650,594 – 650,594

2,255,688 100,187 2,355,875

SINKING FUND The sinking fund is represented by the following assets:

Financial assets – Investments Cash at bank investment account Fixed deposits Transfer to Accumulated fund

2012 $

2011 $

924,959 33,800 37,091 (995,850) –

924,959 33,800 37,091 – 995,850

The sinking fund is designated to fund the upkeep and maintenance of the premises. There was no drawdown of fund (2011: $Nil) from the sinking fund during the financial year to defray the costs of the renovation and other works undertaken.

During the year the Executive Committee and Board of Trustees approved the transfer of $995,850 (2011: $Nil) from Sinking Fund to Accumulated Fund (Note 9).

78

A NEW MOMENTUM

11

79

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

YEAR ENDED 31 DECEMBER 2012

A NEW MOMENTUM

ENDOWMENT FUNDS Income and expenditure of endowment funds are as follows: 2011

2012 General Endowment Fund $ Incoming resources Incoming resources from generated funds Investment income: Dividend income Interest income - debt securities - fixed deposits and bank balances Other incoming resources Investments gains/(losses): Net gain on disposal of trading securities Exchange loss Unrealised loss on trading securities Total (outgoing) resources Net (deficit) for the year Other comprehensive income for the year, net of income tax Total comprehensive (loss) for the year

Padma and Hari Harilela Scholarship Fund $

Vijay and Amar Trust Fund $

General Endowment Fund $

Total $

Vijay and Amar Trust Fund $

Padma and Hari Harilela Scholarship Fund $

Total $

-

-

-

-

345,204

33,527

10,012

388,743

-

-

-

-

43,459 161

210 -

63 -

43,732 161

-

-

-

-

363,054 (367,898) (1,498,595) (1,114,615) (1,114,615) (1,114,615)

11,134 (46,742) (1,871) (1,871) (1,871)

3,326 (13,962) (561) (561) (561)

377,514 (367,898) (1,559,299) (1,117,047) (1,117,047) (1,117,047)

80

A NEW MOMENTUM

81

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

YEAR ENDED 31 DECEMBER 2012

A NEW MOMENTUM

13

Endowment funds are represented by the following assets:

General Endowment Fund: Financial assets – Investments Cash at bank investment account Transfer to Accumulated fund

a)

2012 $

2011 $

16,287,255 2,177,005 (18,464,260) –

16,287,255 2,177,005 – 18,464,260

The general endowment fund is a form of restricted fund, held in Association’s trust where the capital is required to be invested, or retained for approved purposes. From time to time the Association will transfer the income of the general endowment fund to the accumulated fund for the Association’s general activities. Transfers in and out of the fund are subject to the approval of the trustees.

During the year, the Executive Committee and Board of Trustees has reviewed the general endowment fund and has approved the transfer of $18,464,260 (2011: $Nil) from Endowment Fund to Accumulated Fund as the fund is not considered to be a restricted fund.

(b)

UNUTILISED SPECIFIC GRANTS/DONATIONS These comprise specific grants/donations for:

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii)

Tamil Language Learning and Promotion Committee (TLLPC) Singapore Indian Education Trust (SIET) and Tertiary Education Loan Scheme School Pocket Money Fund (SPMF) Project Spark Singapore Press Holding (SPH) Foundation Newspaper Project Project Give Donations Youth Development Programmes Single Parent Programme/Sponsorships

(i)

Tamil Language Learning and Promotion Committee (TLLPC)

In prior year, the Executive Committee and the Board of Trustees has approved the transfer of $1,039,560 from Vijay and Amar Trust Fund and $270,241 from Padma and Hari Harilela Scholarship Fund to the Accumulated Fund.

12

(ii)

Payables to suppliers and service providers Accrued expenses

2011 $

1,036,691 158,765 1,195,456

1,116,192 147,234 1,263,426

794,348 682,389 79,515 81,182 63,730 1,478,773 1,494,282 410,343 5,084,562

885,872 200,913 111,944 82,242 135,460 1,835,320 1,808,682 384,196 5,444,629

Singapore Indian Education Trust (SIET) Singapore Indian Education Trust (SIET) is a registered charity offering solutions to the needs and challenges impacting the educational performance of the Indian Community. SINDA’s programmes are designed to focus mainly on the education of students from pre-primary to secondary while SIET’s focus is on tertiary level education. Both the organisations recognise the immense opportunity to leverage on the synergy between the two organisations. The collaborative arrangement has been set to manage SIET donations and its disbursements to students who qualify for financial assistance for their course of study at the tertiary institution and other schemes administered by SIET.

OTHER PAYABLES AND ACCRUED EXPENSES 2012 $

2011 $

Tamil Language Learning and Promotion Committee (TLLPC) is a committee set up by the Ministry of Education (MOE) to promote the learning and use of the Tamil language. The Association provides support to TLLPC in the administration of the TLLPC grant. Grants and donations are the main sources of income with MOE providing a matching grant for funds raised by the TLLPC.

The Vijay and Amar Trust Fund was set up to provide assistance and support to children from disadvantaged and dysfunctional families.

The Padma and Hari Harilela Scholarship Fund was set up to provide scholarships for needy students.

2012 $

Tertiary Education Loan Scheme is supported by a donation to provide interest free Educational Loan assistance to bright Indian students facing financial challenges in pursuing their tertiary qualifications.

This scheme will be jointly run by SIET and SINDA with SIET administering the scheme. (iii)

School Pocket Money Fund (SPMF) The Association receives yearly grant from the National Council of Social Service (NCSS) pertaining to SPMF. All bursary payments made under this service will be paid out from SPMF based on criteria set out

by NCSS.

82

A NEW MOMENTUM

(iv)

83

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

YEAR ENDED 31 DECEMBER 2012

A NEW MOMENTUM

Project Spark

(viii)

Project Spark (Successful Parents and Resilient kids) is a collaborative effort between Temasek Cares (a charity arm of Temasek Holdings), Yayasan Mendaki, Chinese Development Assistance Council, SINDA and Eurasian Association. It aims to provide a more holistic and integrated intervention programme to help single parents rebuild their lives and overcome their disadvantage. Funding supports the provision of an assistance package consisting of employment assistance programmes and a starter kit. (v)

(vi)

Project Give Donations Project Give is a community fund raising campaign to raise money for the bursaries for students from needy families. It typically runs through the various festivities such as Hari Raya Puasa, Deepavali and Christmas. Funds are raised via direct cheque donations, donation boxes placed with partner retailers, on-line, at the booth during Deepavali Fair at Campbell Lane and through tele-poll in conjunction with the Project Give Charity Show on Mediacorp’s Vasantham TV Channel.

(vii)

Single Parent programme provides holistic assistance to the parent and the children. Children of single parent would receive assistance from all SINDA’s programmes including Tuition, NEU PC, Enrichment while parents receive assistance on skills upgrading, financial planning and family support to help build their self-esteem and become self-sufficient.

Sponsorships were received for specific programmes like Financial Assistance, Bursary, Educational programmes.

Singapore Press Holding (SPH) Foundation Newspaper Project SPH Newspaper Project is a programme to sponsor subscriptions to the Straits Times and Tamil Murasu Newspapers. Under this project, SINDA will identify needy households who wish to read Straits Times newspaper and SPH will sponsor the subscription costs. The balances shown above represent grants/ donations that were unutilised as at the end of the financial year.

Youth Development Programmes Youth Development Programmes are specific programmes under the funding support of $2,000,000 from Kewalram Group of Companies which focuses mainly on the following 3 key programmes: Project Victory/Senior Victory; a school based motivational programme that aims to bring out leadership qualities and encourage the practice of positive life skills through structured activities and trained facilitators.

Youth Empowerment Programme; a one-to-one mentorship programme to engage “at-risk” youth and who have low self-esteem or other behavioural problems.

Mentorship programme for Institute of Technical Education (ITE) students; a programme to engage students of ITE through interest-based mentoring.

In addition there was a donation of $18,256 from Bharathnatyam Dance Performance to help youths for the following programme: Leadership Training programme for Indian Youths from low income families.

The funds will be channelled towards the content development, programme evaluation tools, motivational camps and workshops for the above mentioned programmes.

Single Parent Programme/Sponsorships

14

RESOURCES EXPENDED ON CHARITABLE ACTIVITIES AND GOVERNANCE COSTS Note (i)

2012 $

2011 $

Charitable activities Education programmes Tuition programmes: - STEP programme - Project Teach Other education programmes: - Enrichment programmes - Bursary/Scholarships - Staff costs - Support costs Family services - Casework and counselling - Single Parents programme - Other programmes - Staff costs - Support costs Youth development programmes - SINDA Youth Club activities - Youth Motivational programmes - Staff costs - Support costs

15

15

15

3,770,051 1,453,256

2,205,643 822,145

428,430 1,030,586 1,383,135 2,012,978 10,078,436

305,022 1,353,954 1,253,457 2,520,285 8,460,506

232,515 73,251 582,591 690,785 951,400 2,530,542

185,699 109,711 303,304 890,351 400,658 1,889,723

154,664 246,996 453,900 339,608 1,195,168

137,337 135,070 485,725 212,368 970,500

84

A NEW MOMENTUM

YEAR ENDED 31 DECEMBER 2012

A NEW MOMENTUM

Note Parent Programmes - Preschool programmes - Programme for Parents - Staff costs - Support costs

Children Programmes - Numeracy and Literacy programme - Programme for Children - Staff costs - Support costs

Community Engagement and Volunteer Management - Networking initiatives - Collaborative Programmes/SINDA 2020 - Volunteer management - Staff costs - Support costs

Corporate and Marketing Communications - Corporate communications - Marketing communications - Staff costs - Support costs

(ii)

85

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Administrative and Governance costs - Administrative and Governance Expenses - Temporary Occupation Licence (TOL) *

15

15

15

15

2012 $

2011 $

The resources expended have been summarised as follows:

8,850 71,670 395,320 210,170 686,010

– – – – –

74,689 155,966 357,628 210,035 798,318

54,015 96,899 145,075 121,420 417,409

155,167 96,938 57,917 570,775 339,544 1,220,341

64,262 717,811 41,042 650,620 662,951 2,136,686

78,866 4,893 47,932 304,234 435,925

74,215 48,330 80,850 249,797 453,192

918,823 433,581 1,352,404

917,691 433,581 1,351,272

* The Association occupies Government land at 1, Beatty Road, Singapore 209943 and pays an annual Temporary Occupation Licence (TOL) fee expense. The expense is supported by the Grant from the Ministry of Community Development, Youth and Sports (MCYS) of $433,581 (2011: $433,581)

2012 Direct costs Programmes Education Family services Youth development programmes Parent programmes Children programmes Community engagement and Volunteer management Corporate and Marketing communications Administrative and Governance costs

15

$

Support costs (note 15) $

2011 Total

Direct costs

$

$

8,065,458 2,012,978 10,078,436 951,400 2,530,542 1,579,142 339,608 1,195,168 855,560 686,010 210,170 475,840 798,318 210,035 588,283 880,797 131,691 433,581

339,544 1,220,341 435,925 304,234 1,352,404 918,823

Support costs (note 15) $

Total

$

5,940,221 2,520,285 8,460,506 400,658 1,889,723 1,489,065 970,500 212,368 758,132 – – – 417,409 121,420 295,989 662,951 2,136,686 453,192 249,797 1,351,272 917,691

1,473,735 203,395 433,581

SUPPORT COSTS Staff costs

2012

$

Maintenance and Administrative expenses $

Depreciation expenses

Total

$

$

Education programmes Family services Youth development programmes Parent programmes Children programmes Community engagement and Volunteer management Corporate and Marketing communications Administrative and Governance costs Total

963,770 592,867 138,770 92,091 92,091 138,770

888,571 295,124 175,474 101,170 101,035 175,410

160,637 63,409 25,364 16,909 16,909 25,364

2,012,978 951,400 339,608 210,170 210,035 339,544

181,658 502,048 2,702,065

92,985 332,228 2,161,997

29,591 84,547 422,729

304,234 918,823 5,286,792

2011

2,645,742

2,124,386

315,042

5,085,170

Support costs in respect of staff costs, maintenance and administrative expenses are allocated to charitable activities based on level of activities.

Support costs in respect of depreciation expenses are allocated to charitable activities based on floor area occupied.

86

A NEW MOMENTUM

16

YEAR ENDED 31 DECEMBER 2012

Staff costs Central Provident Fund contributions (included in staff costs) Depreciation

18

A NEW MOMENTUM

NET DEFICIT FOR THE YEAR The following items have been included in arriving at net deficit for the year:

17

87

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

20

Financial risk management

2012 $

2011 $

6,601,540 776,616 422,729

6,151,820 635,166 315,042

Overview

TAXATION

The Executive Committee has an overall responsibility for the establishment and oversight of the Association’s risk management framework. The Association’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including currency risk, interest rate risk and price risk). The Association has policies and processes for measuring and managing these risks. The Executive Committee reviews and approves the policies for managing each of these risks.

The Association is an approved charity organisation under the Charities Act, Chapter 37 and an Institution of Public Character under the Income Tax Act, Chapter 134. No provision for tax has been made in the financial statements as the Association is exempt from income tax.

This note presents information about the Association’s exposure to each of the above financial risks. Further quantitative disclosures are included throughout these financial statements.

KEY MANAGEMENT PERSONNEL

Credit risk

Remuneration paid/payable to key management personnel Short-term employment benefits Salary range Salary above $200,000 Salary within range $100,000 to $200,000 Total

There were no significant changes to the Association’s financial risks during the year.

2012 $

2011 $

695,973

877,161

2 1 3

2 1 3

The key management personnel remuneration comprise remuneration paid to the top three (2011: three) key personnel including the Chief Executive Officer. The Trustees and Executive Committee members do not receive any remuneration.

19

FINANCIAL INSTRUMENTS

RELATED PARTY TRANSACTIONS

Credit risk is the risk of financial loss to the Association if the counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Association’s receivables from various sources and investments.

The Association’s exposure to credit risk in receivables arises principally from receivables, investments and cash and cash equivalents.

The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.

The Association establishes an allowance for impairment that represents its estimate of incurred losses, only when required. The main components of this allowance are a specific loss component that relates specifically to individually significant exposures.

Receivables

For the purpose of financial statements, parties are considered to be related to the Association if the Association has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Association and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

The Association’s exposure to the credit risk is low as most of its receivables are from government agencies.

Approximately 84% (2011: 80%) of the Association’s receivables are due from three (3) counterparties in 2012 and 2011.

Other than the transactions disclosed elsewhere in the financial statements, there were no significant related party transactions between the Association and its related parties during the financial year.

At the balance sheet date, all receivables of the Association are not past due.

There is no allowance for receivables required as at 31 December 2012 (2011: Nil).

88

A NEW MOMENTUM

89

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

YEAR ENDED 31 DECEMBER 2012

A NEW MOMENTUM

Investments/Cash and cash equivalents

Currency risk

The Association strives to invest a portion of its funds in bonds of good credit quality, whenever possible.

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.

For investment operations, the Investment Committee adopts very stringent quantitative and qualitative criteria, including financial statement analysis, type of securities, credit ratings and quality of management in selecting issuers of financial instruments that the Association invests in.

Investments in debt securities are assessed using stringent investment criterion and this includes, but is not limited to, a thorough analysis of each debt security’s terms and conditions, the availability and quality of the guarantor, as well as financial strength of the issuer.

The Association’s cash and cash equivalents are placed with banks and financial institutions which are regulated and rated A and above on Standard & Poor’s financial strength ratings.

The Association’s debt securities consist of debt securities rated B and above on Standard & Poor’s financial strength ratings or debt securities of Singapore government related entities. There is no significant concentration of credit risk in relation to these investments.

By virtue of its investment activities to optimise return, the Association is exposed to the effects of foreign currency exchange rate fluctuations, principally in currencies such as United States Dollar, Euro and Hong Kong Dollar. The Association does not use derivative financial instruments to hedge its foreign currency risks.

The Association’s foreign currency exposures are as follows:

Financial assets – investments US Dollar Euro Hong Kong Dollar Other currencies

2012 $

2011 $

10,785,531 21,292 607,483 226,512

10,407,159 110,858 590,004 1,033,181

Sensitivity analysis The Association’s cash and cash equivalents are placed with three (3) financial institutions in 2012 and 2011.

Liquidity risk

A 10% strengthening of the Singapore dollar against the following currencies at the reporting date would decrease the net surplus by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.

Liquidity risk is the risk that the Association will not be able to meet its financial obligations as they fall due. The Association’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions.

Typically, the Association ensures that it has sufficient cash on demand to meet expected operational demands excluding the potential impact of extreme circumstances that cannot reasonably be predicted.

Based on the contractual maturities, the Association’s financial liabilities mature within one year from the balance sheet date and the fair values approximate their carrying amounts.

Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Association’s income or the value of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

Market risk is managed by the Investment Committee by closely monitoring the market data and by setting up detailed investment policies.

Surplus of income over expenditure $ 31 December 2012 US Dollar Euro Hong Kong Dollar

(1,078,553) (2,129) (60,748)

31 December 2011 US Dollar Euro Hong Kong Dollar

(1,040,716) (11,086) (59,000)

A 10% weakening of the Singapore dollar against those 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 Association’s exposure to market risk for changes in interest rates relates to the interest bearing cash and cash equivalents and debt securities.

90

A NEW MOMENTUM

91

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

YEAR ENDED 31 DECEMBER 2012

A NEW MOMENTUM

At the reporting date, the interest rate profile of the interest-bearing financial instruments, as reported to the management, was as follows: Nominal amount 2011 2012 $ $ Fixed rate instruments Fixed deposits with banks Debt securities

Variable rate instruments Debt securities

640,599 7,765,892 8,406,491

2,392,966 4,785,120 7,178,086

2,510,596 10,917,087

4,393,654 11,571,740

At the reporting date, management assessed that an increase/(decrease) of 25 basis points in the interest rates would have no significant impact to the results of the Association.

Ratio between the Association’s annual operating expenditure and its funds is as follows:

Total funds at 31 December Annual operating expenditure Ratio of funds to annual operating expenditure

Sensitivity analysis The Association’s investments are designated as held for trading investments. A 10% increase or decrease in the underlying market prices at the reporting date, with all variables held constant would increase or decrease income by $2,347,488 (2011: $2,142,592).

Capital/Funds Management The Association is a society with no share capital. The Association builds up its Capital/Funds from donations received and also through prudent management of its financial resources. The capital of the Association include reserve fund in its Accumulated Fund.

The reserves of the Association provide financial stability and the means for the development of the Association’s activities. The Association intends to maintain the reserves at a level sufficient for its operating needs. The Executive Committee and the Board of Trustees of the Association review the level of reserves regularly for the Association’s continuing obligations.

2011 $

26,752,650 18,849,043 1.4:1

27,295,620 15,850,150 1.7:1

The Association’s Funds are closely monitored to ensure that there are sufficient funds to support its programmes and activities.

The Association is not subject to externally imposed capital/funds requirements.

Accounting classification and fair values Fair values versus carrying amounts The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

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.

2012 $

Loans and receivables $ 31 December 2012 Government subvention receivable

Fair value through profit and loss $

Other financial liabilities

Total carrying amount

Fair value

$

$

$

1,700,000

–

–

1,700,000

1,700,000

Donation receivable Central Provident Fund Board Scheme

658,822

–

–

658,822

658,822

Donation receivable – Singapore Totalisator Board

375,000

–

–

375,000

375,000

Deposits and other receivables

461,663

–

–

461,663

461,663

– 4,022,565

24,640,877 –

– –

24,640,877 4,022,565

24,640,877 4,022,565

Other payables and accrued expenses

–

–

(1,195,456)

(1,195,456)

(1,195,456)

Unutilised specific grants/donations

–

–

(5,084,562)

(5,084,562)

(5,084,562)

7,218,050

24,640,877

(6,280,018)

25,578,909

25,578,909

Financial assets – investments Cash and cash equivalents

92

A NEW MOMENTUM

93

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

YEAR ENDED 31 DECEMBER 2012

Loans and receivables

31 December 2011 Government subvention receivable

$

A NEW MOMENTUM

Fair value through profit and loss $

Other financial liabilities

Total carrying amount

Fair value

$

$

$

–

–

1,700,000

1,700,000

623,356

–

–

623,356

623,356

1,000,000

–

–

1,000,000

1,000,000

894,334

–

–

894,334

894,334

–

23,793,689

–

23,793,689

23,793,689

5,096,289

–

–

5,096,289

5,096,289

Other payables and accrued expenses

–

–

(1,263,426)

(1,263,426)

(1,263,426)

Unutilised specific grants/donations

–

–

(5,444,629)

(5,444,629)

(5,444,629)

9,313,979

23,793,689

(6,708,055)

26,399,613

26,399,613

Donation receivable – Singapore Totalisator Board

Comparative information Change in classification

1,700,000

Donation receivable Central Provident Fund Board Scheme

21

During the current year, the Association enhanced the organisational capabilities for greater efficiency of charitable activities and effective Financial Management. Comparative amounts in Note 14 and 15 to the financial statements were reclassified as disclosed below for consistency with the current year’s presentation.

The changes are as follows: As previously reported $

Reclassification

As restated

$

$

Education programmes

8,179,169

281,337

8,460,506

Family and Youth Development/Volunteer Relations

3,332,434

(3,332,434)

–

Fair value hierarchy

Corporate Communication and Community Engagement (CCCE)

2,816,413

(2,816,413)

–

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Family Services

–

1,889,723

1,889,723

Youth Development

–

970,500

970,500

Children’s Programmes

–

417,409

417,409

Community Engagement and Volunteer Management

–

2,136,686

2,136,686

Corporate and Marketing Communications

–

453,192

453,192

Deposits and other receivables Financial assets – investments Cash and cash equivalents

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).

Level 1 $

Level 2 $

Level 3 $

Total $

31 December 2012 Financial assets designated at fair value through profit or loss

16,785,391

6,689,486

–

23,474,877

31 December 2011 Financial assets designated at fair value through profit or loss

12,440,734

8,985,181

–

21,425,915

Since the amounts are reclassification within operating activities in the income statement, this reclassification did not have any effect on the statements of financial position and statement on cash flows.