AN N U A L R E P O R T 2 0 1 6
YEARS OF SERVING THE COMMUNITY
The ASSOCIATION OF MUSLIM
AMP is a registered charitable organisation
PROFESSIONALS (AMP) was
and is accorded the status of an Institution
established on 10 October 1991, as an
of a Public Character.
important resolution of the First National Convention of Singapore Malay/Muslim
AMP is guided by its core principles of
Professionals which was held on 6 and 7
being independent, non-partisan and
October 1990. The Convention was
working in critical collaboration with all
attended by 500 Malay/Muslim
parties that share its mission to bring about
professionals who met to brainstorm new
a Dynamic Muslim Community in the 21st
directions for the community. AMP
century. AMP will partner with any player
was formed with core programmes in
who identifies with and supports AMP’s
education, human resource development,
mission in society and will support
social development and research.
government policies which serve to advance the community and the interest of the people at large.
ASPIRATION FOR THE COMMUNITY
CORE VALUES
A dynamic Muslim community
Conviction
Creativity
We are committed to serve the community
We champion creativity and dare to
with passion. We take pride in our role in
explore new ideas to overcome
the society.
challenges.
Integrity
Team-Oriented
We place community interest before self
We work as a team, believe in shared
and maintain high moral values and
responsibility and value partnerships with
discipline.
others.
VISION A model organisation in community leadership
MISSION To be a thought leader, problem solver and mobiliser for the
Professionalism
advancement of the community
We aim for excellence in our work and add value to what we do.
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CONTENTS 01
03
Message from Chairman
Message from Executive Director
05
07
The AMP Group
AMP Board of Directors
09
AMP Board Committees
10
Ready for School Fund Management Committee
10
AMP Management Team
11
Divisions of AMP
13
15
Young AMP
Muslim Expatriates Network
17
19
Centre for Research on Islamic and Malay Affairs
MERCU Learning Point
21
31
Our Programmes & Services
Our Clients & Beneficiaries
32
33
Our Income & Expenditure
Our Significant Milestones
35
38
Our Partners
Directors’ Report & Audited Financial Statements
MESSAGE FROM CHAIRMAN
This year marks AMP’s Silver Jubilee and
Engaging Professionals
for it to happen in my first year as
Rallying and engaging professionals to
Chairman of the Group is an honour.
play a role in providing intellectual leadership for the community was one of
AMP has been a part of my life since
the main reasons why AMP was formed
before its formation in 1991. About two
25 years ago. Moving forward, we are
years earlier, I was asked to join in the
looking at engaging more professionals to
planning for the 1st National Convention
join us in playing this role of being the
of Singapore Malay/Muslim Professionals
conscience of the community. We want to
and later, as a member of the Pro-tem
provide a platform to promote intellectual
Committee to form AMP. I agreed then
discourse among professionals, where
because I thought it would be a meaningful
they can come together and exchange
way for me to contribute to the community.
ideas, views, insights and experiences on
Two and a half decades later, AMP is still
current national issues. It is hoped that
very much a part of me, and it remains
through this, our professional community
one of the main platforms through which
can play a bigger role in steering the
I am able to do my share to contribute to
Malay/Muslim community into the future.
the community’s long-term progress. Providing thought leadership, which is one I have seen AMP chart tremendous growth
of AMP’s strategic thrusts, is something
over the last 25 years – from the earlier
that we intend to continue in the years
years when we were unsure if AMP could
to come.
continue its operations, to what it is today – one of the leading Malay/Muslim
Preparing for the Future Economy
organisations in Singapore, well-recognised
The economy of the future is one that is
for its efforts to uplift the Malay/Muslim
unpredictable and AMP intends to help the
community; a force to be reckoned with.
community through this time of uncertainty. We are in the midst of assessing areas in
This year is an important year for us. The
which we can help prepare the community
Board has decided that as this year marks
for the future economy, be it in education,
AMP’s Silver Jubilee, it is an opportune
training, or other areas.
time to step back and reflect on the progress we have made thus far, and to chart out AMP’s path for the coming years.
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We will work with the relevant stakeholders
Our experience with working with NYC
I hope that this support from the community
to develop initiatives aligned to the
had shown that the issues faced by the
continues for the next 25 years and
recommendations of the Committee on the
community cannot be faced in isolation,
beyond. The future remains bright for the
Future Economy aimed at building
but in conjunction with all national efforts.
community and AMP intends to continue
resilience amongst our youths and PMETs
As such, the spirit of collaboration is
playing a part in the community’s
to face the tough economic times head on
critical to our development as a community
successes in the coming years.
and prepare for the future economy.
and nation. This is just one example of how partnering and working with
Taking it to the Next Level
national-level organisations can enrich
AMP is not an organisation that is happy
our knowledge of not just the Malay
ABDUL HAMID ABDULLAH
to rest on our laurels and remain status
community, but the Singaporean society
Chairman
quo. We are an organisation that likes to
as a whole. This, in turn, will help us to
AMP Group
push our boundaries and continue
better serve our community in the future.
redefining success for ourselves. Our Supporters While we have focused our efforts mostly
However, our plans can only be realised
on the community, we will now extend our
if we have the support of the community.
focus beyond that. We will continue to
Over the past 25 years, AMP has grown
serve the community and its needs, but
larger as a group and has become
there is much for us to learn from national
financially stronger, progressive and
agencies and organisations.
innovative in running our programmes and services. This is made possible largely
This was apparent from our collaboration
because of our activists, volunteers,
with the National Youth Council (NYC) to
donors, sponsors and partners. They,
organise the CommaCon in October,
who share our vision of a brighter future
which was a convention for youths of all
for the community, are the ones driving us
races to come together to discuss sensitive
towards our goals.
issues such as socio-economic divide, racism, national identity and even terrorism, openly and honestly. This is the first time such a youth conference has been organised at a national platform to discuss these issues and where the lead initiator was a Malay/Muslim organisation.
MESSAGE FROM EXECUTIVE DIRECTOR
When the pioneer members of AMP first
governance policies and transparency
gathered at the 1st National Convention
standards are robust. We were recently
of Singapore Malay/Muslim Professionals
recognised for these efforts when we were
in 1990, the impetus was to advocate for
awarded the Charity Transparency Award
change within the community for its
2016 by the Charity Council, which we
advancement. I was among this group
hope sets the precedence for other
of professionals who later witnessed the
Malay/Muslim charitable bodies to follow.
establishment of AMP a year later. Alhamdulillah, since then, my volunteering
The growing expectation of accountability
capacity in AMP has evolved into an
from our donors, key stakeholders and the
operational executive role – a responsibility
general public has driven us to continually
which I have held for more than a decade.
strive to enhance our existing programmes and introduce new ones in order to cater
Within the last 25 years, we have served
to the changing needs of the community.
more than 328,000 beneficiaries comprising
As this year is our Silver Jubilee, we have
not only those from the lower-income
undertaken new outreach efforts as well
groups but also aspiring entrepreneurs,
as introduced new initiatives to help more
emerging professionals, and most recently,
of those in need.
debtors. We have also seen many of our former beneficiaries who have done well
Earlier this year, we introduced a critical
for themselves and are now giving back to
thinking segment on WARNA 94.2FM and
the community in their own way. We share
Berita Minggu called Renung Sejenak. It
the story of three of such beneficiaries in a
invites the listeners and readers to reflect on
section of the anniversary supplement that
pertinent topics in the community, such as
is enclosed with this report.
education, family, finance, youth and health. We also premiered our first-ever TV series
In the past, our financial situation was at
on Suria channel titled Buku Tiga Lima, to
times, dire. We sometimes had to rely on
create awareness and educate the
our members and volunteers to help pay for
community on various debt issues. In
our expenses from their own pockets.
addition to extending our outreach through
Things have gradually turned around and
these channels with the support from
the AMP Group has enjoyed an average
national funding initiatives such as the Care
annual turnover of $16 million over the last
& Share grant, we were also able to
three years. With this, we have also
provide assistance to a greater number of
undertaken efforts to ensure that our
needy individuals including those from other voluntary welfare organisations (VWO).
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For example, we chanelled the proceeds
undergraduates studying at the Singapore
Our work in the community will not stop
from our Charity Golf Tournament this year
Management University (SMU). Eight
with our Silver Jubilee celebrations. In fact,
to Club HEAL, which helps people with
months later, in July 2016, together with
we will work harder than ever to ensure we
mental illnesses and their families. In the
Lembaga Biasiswa Kenangan Maulud
carry on working towards realising our
same spirit, we also included beneficiaries
(LBKM) and Singapore University of
founding members’ vision of a dynamic
from other VWOs like the Pasir Ris Family
Technology and Design (SUTD), AMP
Muslim community. Each milestone
Service Centre, WAHAH Transitional Shelter
launched the first-ever engineering scholarship
achieved drives us to renew our aspirations.
and New Hope Community Services to
for Malay/Muslim undergraduates. With
As such, we are tremendously grateful for
receive our annual festive assistance
the establishment of these scholarships, we
the dedication and generosity demonstrated
comprising new Hari Raya clothing and
hope to realise our vision of having
by our activists, volunteers, donors, sponsors,
commemorative gift packs, as well as attend ‘graduates in every family’ and catalyse the
partners and staff in supporting our efforts
our Ramadan workshop and iftar session.
progress of our community.
to serve the community. May the next 25
Given the strong support AMP has received
In addition to these scholarships, AMP also
from the community over the years, we
collaborated with the Centre for Fathering
believe that it is important for us to pay it
for the first time to organise a fathering
forward and extend the same support to
seminar, supported by Berita Harian, in
other organisations, which are also serving
September this year. The seminar featured
MOHD ANUAR YUSOP
the interests of our community.
invited speakers like renowned motivational
Executive Director
expert, Dato Dr Hj Mohd Fadzilah Kamsah,
AMP
years see AMP and the community scaling
Apart from our signature events and
to address the challenges of parenting
activities, we have also forged strategic
adolescents. AMP also collaborated with
partnerships to extend our reach to various
the National Youth Council to organise a
groups within the community. In November
first-of-its-kind youth convention, CommaCon,
2015, AMP, through MERCU, launched a
a month later. The convention provided
first-ever scholarship with a local university
youths with a platform to have meaningful
to help students in need. The inaugural
conversations on contentious issues like
recipients of the MERCU-SMU Excellence
racism, terrorism, national identity and the
Scholarship are three full-time Malay
socio-economic divide. Undoubtedly, these partnerships have enabled us to enhance our knowledge and strengthen our efforts to better serve the community.
to even greater heights than before.
PBM
THE AMP GROUP
BOARD FUNCTIONS
CORPORATE FUNCTIONS
ASSOCIATION OF MUSLIM PROFESSIONALS
AUDIT & CORPORATE GOVERNANCE COMMITTEE
EXECUTIVE DIRECTOR’S OFFICE
AMP BOARD OF DIRECTORS
FINANCE & INVESTMENT COMMITTEE
CORPORATE COMMUNICATIONS
SOCIAL SERVICES
HUMAN RESOURCE COMMITTEE
FINANCE & ADMINISTRATION
Debt Advisory Centre Family Services Helpline
NOMINATING COMMITTEE
HUMAN RESOURCE
STRATEGY COMMITTEE
MANAGEMENT OF INFORMATION SYSTEM
Marriage Hub Training & Education Youth FUND RAISING
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CENTRE FOR RESEARCH ON ISLAMIC AND MALAY AFFAIRS
MERCU LEARNING POINT
YOUNG AMP
RIMA BOARD OF DIRECTORS
MERCU BOARD OF DIRECTORS
YOUNG AMP MEX BOARD OF BOARD OF MANAGEMENT MANAGEMENT
APPLIED RESEARCH
CORPORATE SUPPORT SERVICES
WINDOWS ON WORK
Human Resource & IT EVENTS Finance PUBLICATIONS
Marketing Communications
COMMON SPACE CAMPUS OUTREACH
EARLY CHILDHOOD TREND & POLICY ANALYSES
STUDENT CARE CENTRE
FAITH & GREEN INITIATIVE SECRETARIAT
MUSLIM EXPATRIATES NETWORK
SECRETARIAT
AMP BOARD OF DIRECTORS CHAIRMAN
VICECHAIRMAN
MEMBERS
MR ABDUL HAMID ABDULLAH
MR ZHULKARNAIN ABDUL RAHIM
DR BIBI JAN MOHD AYYUB BBM
DR MD BADRUN NAFIS SAION
Auditor Public Sector (elected on 30 November 2013)
Partner Dentons Rodyk & Davidson LLP (elected on 12 December 2015)
School Counsellor (elected on 30 November 2013)
Head, Community Dental Services Singhealth Polyclinics (elected on 12 December 2015)
MR MUHD SHAMIR ABDUL RAHIM
MR OTHMAN MARICAN
Managing Director Sypher Labs Pte Ltd (elected on 30 November 2013)
Human Resource Manager (Retired) (elected on 12 December 2015)
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MR MOHAMAD AZMI MUSLIMIN
DR MOHD NAWAB MOHD OSMAN
MR MUHAMAD NAZZIM MUHAMAD HUSSAIN
Private Investor (elected on 12 December 2015)
Assistant Professor, Coordinator of Malaysia Programme (IDSS), S. Rajaratnam School of International Studies Nanyang Technological University (elected on 30 November 2013)
Chief Operating Officer Vector Scorecard
MR AZMOON AHMAD
MR MOHD RAZIFF ABDULL HAMID
MR PHIROZE ABDUL RAHMAN Materials Manager II-VI Singapore Pte Ltd (elected on 3 December 2011)
Vice-President Desay SV Automative (elected on 1 December 2007; retired on 12 December 2015)
(elected on 12 December 2015)
Sales Director Getronics Solution (S) Pte Ltd (elected on 14 November 2009; retired on 12 December 2015)
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AMP BOARD COMMITTEES AUDIT & CORPORATE GOVERNANCE COMMITTEE
Chairman
The Audit & Corporate Governance
Mr Mohamad Azmi Muslimin
Committee oversees compliance with statutory governance requirements and
Mr Zhulkarnain Abdul Rahim Members Mr Nazzi Beck Ms Siti Hawa Sulaiman
ensures adherence to established internal
NOMINATING COMMITTEE The Nominating Committee proposes candidates for election to the Board of Directors and recommends Additional Directors to the Board as and when necessary for appointment by the Board.
controls to protect the assets of the company and promote transparency. Chairman Mr Fairuz Adam Members Mr Fadhillah Goh Ms Karen Chia
HUMAN RESOURCE COMMITTEE The Human Resource Committee develops and reviews the compensation and benefits structure and terms for the
FINANCE & INVESTMENT COMMITTEE
Chairman
The Finance & Investment Committee
Members
budget and explores investment
Members Mr Mohd Alami Musa Mr Muhamad Nazzim Muhamad Hussain
reviews their training needs annually to building.
are conducted within the operational
Mr Abdul Hamid Abdullah
employees of the organisation. It also facilitate competency and capacity
ensures all activities by the organisation
Chairman
Mr Othman Marican
Dr Md Badrun Nafis Saion Mr Mohd Shahar Hussein Dr Noraslinda Zuber
STRATEGY COMMITTEE The Strategy Committee provides recommendations on effective implementation of AMP’s strategic initiatives and good governance. Chairman Mr Abdul Hamid Abdullah
opportunities to enhance the financial
Members
stability of the organisation.
Mr Azmoon Ahmad Mr Hazni Aris Mr Mohd Anuar Yusop Mr Muhd Shamir Abdul Rahim Mr Zhulkarnain Abdul Rahim
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AMP MANAGEMENT TEAM READY FOR SCHOOL FUND MANAGEMENT COMMITTEE
Mr Mohd Anuar Yusop PBM Executive Director
Ms Hameet Khanee J H Senior Manager
Chairman
Ms Fauziah Rahman
Mr Mohd Raziff Abdull Hamid
Manager, Training & Education
Sales Director Getronics Solutions (S) Pte Ltd
Mr Kamat Mahmood Manager, Youth
Members Mr Mohd Farid Mohd Hamzah
Ms Maisarah Dasukie
Correspondent
Manager, Human Resource
Berita Harian / Berita Minggu
Mr Mohd Khalid Bohari Mr Mohd Fawzi Ishak
Manager, Management Information System
Account Director DigitUX Solutions
Mr Saiful Nizam Jemain Assistant Manager, Debt Advisory Centre
Ms Shazana Mohd Anuar Senior Legal Associate
Mr Sarjono Salleh Khan
Harry Elias Partnership
Manager, Facilities Management
Mr Shahjehan Ibrahim Kutty Manager, Finance & Administration
Ms Winda Guntor Manager, Corporate Communications
Ms Zaleha Ahmad Centre Director, Marriage Hub
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DIVISIONS OF AMP
AMP’s volunteers and full-time officers work
SOCIAL SERVICES
together to run programmes in educational enrichment, work skills training, family and economic empowerment, and
DEBT ADVISORY CENTRE
FAMILY SERVICES
research. These programmes aim to catalyse and accelerate the development of the community and optimise human potential. Since its inception, AMP has served more than 328,000 clients from all walks of life and communities.
CORPORATE SERVICES The Corporate Services division provides support for all our programmes and services. The division is made up of the Corporate Communications, Executive Director’s Office, Finance & Administration, Fund Raising, Human Resource, and Management of Information System departments.
The Debt Advisory Centre (DAC) was
The Family Services department manages
set up to tackle debt issues within the
the Adopt a Family & Youth Scheme,
Malay/Muslim community in Singapore,
which is an all-encompassing scheme
with the broader objective of strengthening
representing a family-based approach in
the community’s overall financial standing.
providing assistance to underprivileged
The DAC has three main aims: to be a
families. A comprehensive range of
one-stop centre where individuals with
services is made available to each family
debt problems can go to for advice; to
depending on their specific needs. These
provide clients with the necessary
include financial assistance, counselling
education on debt management and
for the family members, socio-educational
other related matters; and to research the
assistance for the children and skills
extent of the debt problem within the
upgrading courses for adult members.
community. It comprises five components, namely a first-of-its-kind debt support group for the Malay/Muslim community, counselling sessions, introductory seminars on debt and finance, targeted seminars on debt-related issues, and ad-hoc activities to raise awareness of the DAC.
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TRAINING & EDUCATION
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YOUTH
The Marriage Hub runs INSPIRASI@AMP,
The Training & Education department
The Youth department conducts academic
which provides premarital counselling,
promotes lifelong learning through
and non-academic developmental
and marriage preparation and enrichment
enhanced parental involvement in their
programmes comprising weekly tuition
to minor Muslim couples where either
children’s education and development,
classes and personal development
one or both parties are aged below 21.
skills development and financial
programmes such as camps, workshops
INSPIRASI@AMP aims to assess the
assistance. It also aims to economically
and other enrichment activities. These are
readiness of minor Muslim couples for
empower individuals to be self-reliant
targeted at youths with high-level needs,
marriage and subsequently equips those
through skills upgrading and to support
with the ultimate objective of keeping them
who wish to get married with the
and develop the entrepreneurial spirit
within the school system. The department
necessary skills for a successful marriage.
among the disadvantaged.
also provides counselling for youths and
Its eventual goal is to bring down the
their parents through the drop-in centres
percentage of divorce cases as well as
The department networks with all related
managed by AMP. The programmes are
the proportion of minor marriages in the
ministries, statutory boards and
also offered at AMP @ Jurong Point,
Malay/Muslim community. The Hub also
non-government organisations to tap
AMP’s youth hub in the west.
provides counselling services for marital,
on national thinking and resources in
relationship, youth, parenting and
the areas of training and education.
financial issues for walk-in clients as well
Whenever possible, it will leverage on
as those who call in through the AMP
relevant training and education
Helpline, a telephone counselling and
campaigns and grants.
referral service by AMP.
YOUNG AMP
The youth wing of AMP, Young AMP,
relevant issues at the national and global
regularly organises seminars and
levels. A total of 467 youths and young
workshops to encourage critical thinking
professionals participated in the various
among youths. Participants of Young
programmes and events organised by
AMP’s activities are equipped with skills
Young AMP during the year in review.
and knowledge aimed at developing their capacity to be future leaders of the community. They are also exposed to other
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BOARD OF MANAGEMENT President
VISION
ACTION PLAN
Empowered. Connected. Compassionate.
We Plan
Mr Muhd Shamir Abdul Rahim Managing Director Sypher Labs Pte Ltd
Young AMP uses rational objectives to best
MISSION
serve the future needs of aspiring and
Vice-President
emerging Singaporean youths while taking
Mr Hazni Aris
To mobilise young professionals’ role in
into consideration the dynamic changes in
Sales Manager
the advancement of the Muslim community
the local and global landscape.
Zurich Insurance Singapore
We Partner
Members
Young AMP leverages on its professional
Mr Aminur Rasid
networks to develop partnerships to
Senior Executive Officer, Madrasah Policy
OBJECTIVES • To engage youth and emerging professionals
maximise the impact of community initiatives.
• To provide a platform to generate ideas and articulate aspirations
We Execute Young AMP is committed to translating
• To be an avenue for young professionals who are interested to carry on AMP’s mission and leadership in society
plans into action and to steer the community into the future.
and Planning Unit Islamic Religious Council of Singapore (MUIS)
Mr Ariff Aziz Co-founder The Frontier Alliance
Ms Fatimah Yasin Product Development Maybank
Ms Fezhah Maznan Programmer, Theatre and Dance Esplanade Corp. Ltd
Mr Muhd Syakir Hashim Undergraduate National University of Singapore
Mr Shafiee Razali Youth Worker Majulah Community
Ms Sofiah Su’aad Jamil PhD Candidate Australia National University
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MUSLIM EXPATRIATES NETWORK
The Muslim Expatriates Network provides a platform for the integration of new Muslim citizens and permanent residents into the Singaporean society. MEX also seeks to create bridges between the Muslim expatriate community and the local Muslim community as a way to build a larger and stronger Muslim community in Singapore and catalyse its progress.
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VISION
KEY OBJECTIVES
A progressive, dynamic and globally
• Provide a structured platform for
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integrated professional community in
networking between expatriate, new
Singapore
resident and Singaporean professionals to explore new business frontiers and
MISSION To harness the talents of expatriates and
drive cultural exchange • Foster the appreciation of Singapore
Singaporeans to mutually develop and
culture and values among expatriates
benefit both communities
to facilitate their integration into Singaporean society • Inspire, motivate, enlighten and empower local young, aspiring professionals via mentoring by top-ranking, cross-cultural expatriate professionals • Harness the strength of the new Muslim residents as a new engine of growth for the Muslim community in Singapore • ‘Port of call’ for expats entering Singapore
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CENTRE FOR RESEARCH ON ISLAMIC AND MALAY AFFAIRS
Since its inception, the Centre for
RIMA contributes to scholarly discourses
Research on Islamic and Malay
on numerous issues relevant to the
Affairs (RIMA) has developed a range of
community. Conferences and seminars are
programmes in research and established
organised to add depth to these discourses
several platforms for the meeting of minds.
and to create awareness of these issues.
RIMA currently conducts research in a
Roundtable and focus group discussions
number of key areas, which includes
involving key stakeholders
economics, education, religion, family,
are also organised to foster greater
social integration, leadership and civil
understanding of issues and to keep
society. With time, RIMA expects to
abreast of emerging trends. Additionally,
expand the scope of its research activities
RIMA has produced a number of
beyond local issues and looks forward to
publications and contributed articles in
collaborating with partners in the regional
both print and online media. A total of
and larger international community.
265 participants benefited from the various programmes and events organised by RIMA during the year in review.
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VISION
CORE VALUES
To be a centre of research excellence for
Independence
the advancement of Singapore’s Malay
We are non-partisan and objective in our
Chairman
and Muslim communities
outlook and research.
Mr Muhamad Nazzim Muhamad Hussain
BOARD OF DIRECTORS
Chief Operating Officer
MISSION
Conviction We are focused in our commitment to
To undertake strategic research aimed
advancing the interests of the Malay and
at providing thought leadership in
Muslim communities.
contemporary Malay and Muslim affairs Collective Effort We are team-oriented and value the opinions of all our staff and partners. Collaborativeness We respect the work of other organisations and embrace partnerships and the sharing of information.
Vector Scorecard (appointed on 1 October 2014)
Members Dr Ab Razak Chanbasha Technical Director Omega Scientific Pte Ltd (appointed on 27 August 2014)
Dr Mohd Nawab Mohd Osman Assistant Professor, Coordinator of Malaysia Programme (IDSS), S. Rajaratnam School of International Studies Nanyang Technological University (appointed on 29 September 2015)
Forward Thinking We are visionary and progressive in our
Mr Nur Azha Putra Abdul Azim
approach. We aim to look beyond the
Research Associate, Energy Security Division
immediate in order to foresee future
Energy Studies Institute
challenges and key emerging issues, formulating strategies relevant to both the Malay and Muslim communities.
National University of Singapore (appointed on 21 March 2012; resigned on 19 August 2016)
Mr Sani Hamid Director for Economy and Market Strategy Financial Alliance Pte Ltd (appointed on 21 March 2012; resigned on 19 August 2016)
MERCU LEARNING POINT
MERCU Learning Point is a private
MERCU prides in establishing a
education centre, which offers a
collaborative environment with parents
comprehensive range of programmes
and schools as it believes they are
and services for children aged 18 months
important catalysts in the children’s
to 12 years. Set up in 1999, MERCU
development. With the tagline, Starting
now has 18 centres comprising one
Young, Aiming High, its programmes
kindergarten, five childcare centres and
are robustly designed with the aim to
twelve student care centres.
maximise the children’s capabilities and propelling them to greater heights. MERCU served at least 2,000 children every month in its 18 centres located islandwide during the year in review.
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VISION
SHARED VALUES
A first-class provider in child and youth
Meaningful Relations
education
We establish meaningful and long-term
Chairman
relationships with our customers.
Mr Mohd Azmi Muslimin Private Investor
MISSION
Excellence
• Maximise shareholders’ value
We ensure professional excellence in carrying out our daily duties and
• Be a reliable and trusted partner
BOARD OF DIRECTORS
responsibilities.
(appointed on 9 February 2012)
Members Dr Hishamuddin Badaruddin Deputy Director, Integrated Operations Hub
• Provide quality and innovative programmes
Resourceful We explore effective and efficient methods to deliver our services that benefit both our
• Be a socially responsible corporate citizen
customers and business units to achieve financial growth and sustainability. Customer Service We maximise customer satisfaction by providing prompt services and continuously exceeding their expectations.
Ministry of Health (appointed on 2 May 2016)
Dr Md Badrun Nafis Saion Head, Community Dental Services Singhealth Polyclinics (appointed on 1 April 2015)
Mr Mohd Anuar Yusop PBM Executive Director Association of Muslim Professionals (appointed on 10 February 2001)
Unique We offer a variety of innovative and
Mr Phiroze Abdul Rahman
specialised programmes that meet your
Materials Manager
individual needs.
II-VI Singapore Pte Ltd (appointed on 1 April 2015)
Tengku Zainal Abidin Jumat Head, Branch Support Maybank (appointed on 16 April 1999; resigned on 30 April 2016)
20
OUR PROGRAMMES AND SERVICES FAMILIES beneficiaries enjoyed accessible and affordable home internet connectivity during the year in review. HOME OWNERSHIP PLUS EDUCATION SCHEME AMP is one of the mentoring agencies under the Home Ownership Plus Education (HOPE) Scheme, a national assistance programme spearheaded by the Ministry of Social and Family Development (MSF) for young, low-income families to keep their family small. During the year in review, 39 individuals received education and training grants aimed at helping their families achieve self-resilience.
ADOPT A FAMILY & YOUTH SCHEME
Parental education programmes and family
DEBTORS
The Adopt a Family & Youth Scheme
life skills workshops are also conducted for
DEBT ADVISORY CENTRE
(AFYS) was introduced in 1999 to provide
parents under AFYS to equip them with the
The Debt Advisory Centre (DAC), which
assistance for disadvantaged families and
knowledge and skills to improve the quality
was launched in 2013, is a one-stop
encourage self-reliance within them.
of their family life. For the year in review,
centre that assists individuals facing debt
Families under AFYS are assisted through
681 beneficiaries from 120 families were
problems through a three-pronged
economic empowerment and socio-
enrolled in the scheme.
approach: advice, educate and research.
educational programmes. They undergo
It provides a roadmap for debtors to have
skills training in economically-viable areas
HOME ACCESS
a clearer picture of the options that are
to enable them to set up a home-based
AMP partners the Infocomm Development
available to them. In addition, DAC clients
business as an alternative source of
Authority of Singapore (IDA) and National
attend support group sessions where they
income. They are also enrolled into skills
Council of Social Service (NCSS) to
share their experiences and gain
upgrading courses to increase their
provide low-income households with
emotional support from others facing the
employability, while school-going children
internet access and telephony services for
same problem. They also attend financial
under AFYS are enrolled into tuition
their homes by offering a broadband
literacy workshops to prevent them from
classes and enrichment programmes.
package at a subsidised rate through the
creating new debts while they work to
Home Access programme. A total of 502
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STUDENTS resolve their current debt issues. DAC also acts as a platform to collect data for research on the extent of the debt problem within the Malay/Muslim community. A total of 367 individuals were assisted with their debt issues during the year in review. Achievers & Enablers The Achievers & Enablers programme was initiated in 2014 for the DAC clients and their children so that they remain resilient in face of life’s challenges. The Achievers component aims to equip the students with personal and academic competencies that are fundamental in achieving consistent academic success and developing effective behaviours, habits and values within and outside of school. The Enablers component aims to equip the
READY FOR SCHOOL FUND
AMP Education Bursary
adults with personal and technical
The Ready for School (RFS) Fund was
The AMP Education Bursary offers
competencies, which are instrumental to
launched in 2002 to assist students from
monetary assistance to diploma and
their personal development and in
less privileged families in their educational
degree students from less privileged
enhancing their capabilities both at home
pursuit. Assistance under the Fund
families of all races. Apart from students
and at the workplace. For the year in
comprises the AMP Education Bursary,
from local polytechnics and universities,
review, 49 beneficiaries attended the
AMP-RFS PC Scheme, RFS Enrichment
the bursary also benefits full-time and
various developmental sessions under
Series and other socio-educational
part-time undergraduates from recognised
the programme.
assistance.
private education institutions in Singapore. The bursary seeks to recognise the recipients’ academic achievements, alleviate their financial load and be a source of motivation for them to strive harder in their higher education. For the year in review, 83 recipients were awarded the AMP Education Bursary.
OUR PROGRAMMES AND SERVICES
School Fees Subsidy During the year in review, AMP disbursed more than $43,000 to its subsidiary, MERCU Learning Point, to subsidise the school fees of 293 students from preschool to secondary levels from low-income families, who have attended their education centres. NEU PC PLUS PROGRAMME AMP partners the Infocomm Development Authority of Singapore (IDA) as a lead agency for the NEU PC Plus Programme, which aims to enable students from low-income families who are studying in national schools to have equal access to infocomm with a PC and broadband at a subsidised rate. A total of 462 students AMP-RFS PC Scheme
RFS Enrichment Series
benefited from the programme during the
In 2009, AMP introduced the AMP-RFS
In 2016, AMP launched the inaugural
year in review.
PC Scheme for madrasah students from
RFS Enrichment Series for less privileged
low-income families to provide them with a
students to develop them holistically by
PC at a heavily subsidised rate. With
broadening their horizons and developing
infocomm becoming an increasingly
new skills. The series comprise two
essential component of the Singapore
components – the Children Programme,
education curriculum, the scheme aims to
which is designed for students in the upper
ensure madrasah students are able to
primary level, builds on their Mathematics
effectively tap on information technology
and Science knowledge through activity
to excel in their academics. 4 madrasah
and inquiry-based learning; and the Youth
students were assisted under the scheme
Programme, which is designed for
during the year in review.
secondary school students, provides a platform for sharing and discussion on specific areas of interest and developing of skills. 38 students benefited from the series during the year in review.
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SINGAPORE MUSLIM EDUCATION
COMPULSORY EDUCATION
agencies to children who are not receiving
FUND
PROGRAMME
compulsory education. 25 children were
AMP acts as the custodian of the
According to the Compulsory Education
assisted under the programme during the
Singapore Muslim Education Fund (SMEF),
Act in Singapore, the parent or guardian
year in review.
which was established by a group of
of a child, who is above the age of 6 and
activists in 2013 to address the under-
has not turned 15, may be guilty of an
representation of Malay/Muslims in the
offence if the child fails to attend classes
Law and Medicine fields. The Fund aims
regularly as a pupil at a national primary
to provide financial assistance for students
school, a designated school or be
pursuing law and medicine degree
home-schooled, where an exception is
studies overseas through the disbursement
granted. AMP collaborates with Yayasan
of bursaries. 6 law and medical
MENDAKI to run the Compulsory Education
undergraduates received the SMEF
programme, initiated by the Ministry of
Bursary during the year in review.
Education, where youth workers conduct home visits and provide necessary support such as counselling or referrals to relevant
OUR PROGRAMMES AND SERVICES
YOUTHS COMMON SPACE In 2015, AMP launched the Common Space, which provides a shared community-driven workspace for start-ups and small businesses. Powered by Young AMP, the Common Space is fully equipped with amenities like WiFi, mini pantry, seminar and conference rooms. The training and conference rooms are also utilised by other organisations and the public for various events, seminars and workshops. Common Space also offers flexible membership plans for the use of its space, either on a daily or monthly basis. 9 tenants utilised the workspace during the year in review.
WINDOWS ON WORK
formal office and informal creative
In 2011, Young AMP launched
settings. In 2016, the first phase of the
Windows on Work (WOW) to provide
programme was extended to members of
post-secondary students with a platform
the public. It comprised a sharing session
to learn valuable soft skills and
with industry experts on future challenges
entrepreneurship. Under the three-phase
for the economy and how participants can
programme, participants undergo useful
better prepare themselves through skills
training sessions like personality profiling,
training and upgrading. A total of 51
CV writing, personal grooming, effective
students benefited from the WOW
communication, as well as project
programme during the year in review.
presentation skills, before working together in teams to pitch their own business proposals to the Young AMP Board of Management. In a collaboration with Pioneer Junior College, a group of its students are also selected to be exposed to career developmental skills in both
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After School Engagement Another new component of YEP is the After School Engagement, where youths are engaged in wholesome activities such as homework, board and computer games and light sports after school to prevent them from getting involved in negative activities outside school. A total of 65 students participated in the programme during the year in review. AMP @ JURONG POINT In 2011, AMP launched its youth hub located at Jurong Point Shopping Centre, which was driven by the increasing demand for youth services in the western part of Singapore. The youth hub provides an alternative space for youths to drop by YOUTH ENRICHMENT PROGRAMME
prematurely and encourage them to widen
and spend their time in a structured
The Youth Enrichment Programme (YEP) is
their horizons. 192 students from four
manner as a way to prevent them from
specifically designed for students from the
participating schools benefited from the
engaging in wayward activities.
Normal Academic and Normal Technical
programme during the year in review.
streams to enrich their development
AMP @ Jurong Point offers a wide range
through a positive and holistic approach.
Sports Intrinsic Programme
of services focused on the academic
The programme also incorporates the
The Sports Intrinsic Programme is a
and personal development of the youths
Youth-in-Action (YIA) Plus Programme, an
component under YEP to engage youths in
through enrichment programmes,
enrichment programme commissioned by
sports activities to encourage a healthy
motivational workshops and youth
the Community Leaders Forum (CLF).
lifestyle. Personal development skills are
counselling services. The centre is
also inculcated through sports activities
equipped with two counselling rooms,
Students in the programme are tutored in
such as life skills, teamwork, motivation
a classroom and a multi-purpose room
English and Mathematics, and participate in
and anger management. A total of 102
with a host of entertainment services like
enrichment activities aimed at their overall
students participated in the programme
foosball table, audio-visual system, board
personal and character development. The
during the year in review.
games and internet kiosk. A total of 538
programme hopes to prevent youths with
youths and parents sought the services of
high-level needs from leaving school
the hub during the year in review.
OUR PROGRAMMES AND SERVICES
WORKERS Life & Study Skills Workshop Under the Life and Study Skills Workshop, secondary school students participate in various interactive workshops and camps aimed at equipping them with useful life skills so that they are motivated to excel with a much higher level of self-esteem and confidence. A total of 760 youths participated in the activities under the workshop during the year in review. Youth Drop-in Centres The two drop-in centres at AMP @ Pasir Ris and AMP @ Jurong Point provide a safe and friendly environment for youths and their parents to discuss issues that concern them. The centres offer immediate crisis intervention, referrals and individual counselling services. 28 youths and
MICRO BUSINESS PROGRAMME
participants under the programme are
parents sought assistance from the centres
The Micro Business Programme aims to
able to tap on SME Centre’s wide range of
during the year in review.
assist individuals from less privileged
business advisory services such as
households with trade, business and IT
business advisory and business diagnosis
skills to start a home-based business as an
in the areas of business and IT processes
alternative source of income for the
throughout the different phases of the
household. Grants are also awarded to
programme.
those who have a viable and sustainable business model.
A total of 32 participants completed the programme during the year in review, five
In 2010, AMP inked a memorandum of
of whom received the AMP Capital Grant
understanding with the Singapore Malay
to expand their businesses further.
Chamber of Commerce & Industry (SMCCI) to formalise both organisations’ commitment in enhancing the capabilities and growth of business under the Micro Business Programme. With the partnership,
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Advanced Micro Business Programme As an extension to the Micro Business Programme, the advanced programme aims to enhance the business knowledge and network of its graduates beyond the local market. Through this programme, graduates go through a business workshop and matching session conducted by the SME Centre@SMCCI and an overseas business academy. For the inaugural programme, 14 graduates benefited from a learning trip to Batam, Indonesia. SKILLSFUTURE SERVICE TOUCHPOINT AMP acts as a Service Touchpoint to assist eligible Singaporeans with enquiries or
COUNSELLORS’ HIGH TEA
COUPLES
those who wish to make a submission for
The Counsellors’ High Tea sessions
YOUNG COUPLES PROGRAMME
the SkillsFuture Credit claims. SkillsFuture is
provide a learning platform for both
The Young Couples Programme (YCP) is
a national initiative that aims to encourage
Muslim and non-Muslim helping
designed for minor Muslim couples who
individuals to take ownership of their skills
professionals to share and learn from
wish to get married, where either or both
development and lifelong learning. AMP
each other’s experiences in working
parties are below 21. Conducted in
served 20 individuals through this service
with Malay/Muslim families. 127
collaboration with the Registry of Muslim
during the year in review.
individuals from the social service sector
Marriages (ROMM), the couples are
benefited from the sessions during the
required to undergo two sessions of
year in review.
premarital counselling and a seven-week marriage guidance course, while their parents are equipped with the skills and knowledge to assist and support their children through their marital journey.
OUR PROGRAMMES AND SERVICES
Premarital Counselling The young couples under YCP undergo a three-hour counselling session at INSPIRASI@AMP, where their readiness for marriage is assessed. The couples are assessed based on their understanding and ability to perform their roles and responsibilities as married partners and the necessary skills to sustain a marriage. The counsellors also meet with the couples’ parents to assess the level of functional support from them. A total of 31 young couples attended the premarital counselling sessions during the year in review. Marriage Guidance Course The Marriage Guidance Course is aimed at enabling these young couples to build a strong and stable marriage, as well as
Parents Support Group
CLUB INSPIRASI
become responsible parents. Problem-
Parents of the young couples are also
Club INSPIRASI is a post-marriage
solving, life skills and moral values are
equipped with the skills and knowledge to
enrichment programme organised for
imparted to the couples in an effort to
help and support their newly-married
young couples who have graduated from
strengthen family ties. 31 young couples
children through their marital journey. The
the Marriage Guidance Course. Through
attended workshops, as well as other
sessions are focused to review the
marriage enrichment activities, mentoring
programmes and activities organised under
expectations of in-law relationship, identify
and counselling services, as well as
the course, during the year in review.
roles and responsibilities of parents and
referrals to national assistance
parents-in-law, as well as identify ways to
programmes, Club INSPIRASI aims to help
provide functional support and encourage
the couples enhance and strengthen their
independence. A total of 40 parents
relationship with their partners. A total of
participated in the programme during the
275 individuals benefited from this
year in review.
programme during the year in review.
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COUNSELLING SPECIAL MARRIAGE LICENCE
WALK-IN, CYBER & MANDATORY
In accordance with the Administration of
COUNSELLING
Muslim Law Act (AMLA), INSPIRASI@AMP
AMP’s trained counsellors and social
conducts counselling assessment for
workers provide counselling and referrals
young couples, who are below the age of
to families and individuals in need.
18 and wish to get married. 16 young
They handled 287 walk-in, cyber and
couples underwent the counselling
mandatory counselling cases during the
assessment before being recommended for
year in review.
the Special Marriage Licence, granted by the Registry of Muslim Marriages, during
AMP HELPLINE
the year in review.
The AMP Helpline provides telephone counselling services, as well as relevant
MARRIAGE COUNSELLING
information on the available resources and
PROGRAMME
schemes to those in need. A total of 3,193
The Marriage Counselling Programme
calls were received during the year in
aims to assist married couples who are
review, of which marital, young couple
referred by the Syariah Court with issues
and financial issues were among the top
that they face in their marriage. The
concerns.
programme aims to strengthen marriages by providing intensive marital counselling and increase awareness of the available avenues for help. A total of 438 clients were assisted under the programme during the year in review.
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OUR CLIENTS & BENEFICIARIES PROGRAMMES / SERVICES
NO. OF BENEFICIARIES
Workers Training / Skills & Upgrading
66
Education Enrichment
2,183
Youth Development
2,532
Helpline
3,193
Parenting & Family Education
377
Disadvantaged Families’ Assistance
4,090
Counselling
1,360
Others
501
Total
i.e. seminars, workshops, volunteers training, etc
14,302
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OUR INCOME & EXPENDITURE INCOME
$
Donations
2,868,266
Government Matching Grant
800,000
MBMF Grant through CPF
696,654
Other Grants
1,313,101
Childcare & Preschool Operations
5,854,777
Student Care Centres
4,502,010
Programme Fees & Other Project Income
799,895
Research Income
319
Miscellaneous Income
623,065
Revaluation Gain
714,285
Total
18,172,372
EXPENDITURE
$
Social Services & Community Outreach
1,779,517
Childcare & Preschool Programmes
4,307,761
Student Care Programmes
4,136,445
Workers Training Programmes
220,022
Research
245,611
Marketing, Sales & Fund Raising
959,082
Financial & Taxation
20,077
General Admin & Overheads
5,098,327
Total
16,766,842
32
OUR SIGNIFICANT MILESTONES 1990
1995
2000
AMP Child Care and Development Centre in Yishun opened
1996 AMP Year 2000, a five-year strategic blueprint, announced 1st National Convention of Singapore Malay/Muslim Professionals Held on 6 & 7 October 1990, the Convention was attended by 500 Malay/Muslim professionals to brainstorm new directions for the community
1991 Incorporation of AMP as a company limited by guarantee
1992 Pilot preschool centre opened at Al Amin Mosque
1993 Launch of AMP Hotline Service
1994 Opening of AMP Training Centre
1997 Research on Malay/Muslim Students’ Ability and Attainment in Mathematics
1998 Launch of first subsidiary, Centre for Research on Islamic and Malay Affairs (RIMA) Formed on 28 February 1998, the centre undertook several important research projects such as on the performance of Malay students in education, to establish its role as a vehicle to formalise research on the Malay/ Muslim community and the issues faced by the community
2nd National Convention of Singapore Malay/Muslim Professionals The 2nd Convention was aimed at setting the agenda and strategies for the community to undertake in the 21st century
2001 Pilot run of Home Based Business Scheme
2002 Launch of Ready for School Fund
2003
1999
Launch of AMP Micro Business Programme
Launch of MERCU Learning Point, AMP’s second subsidiary
2004
MERCU Learning Point was first set up to provide various educational programmes for students, while taking over the training programmes offered by the AMP Training Centre. It now offers child and youth education programmes in its preschool and student care centres
Launch of Young AMP The youth wing of AMP was launched as a platform to mobilise the energies and ideas of younger professionals, as well as ensure leadership renewal within AMP
2005 Launch of Maths @ Home Learning Kit for Parents
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2012
2015
3rd National Convention of Singapore Muslim Professionals
Launch of Common Space
Launch of Learning Vision – AMP Education Fund
2007 Opening of INSPIRASI @ AMP
2008 Launch of Counsellors’ High Tea series
2009
2010
The 3rd Convention looked into six areas that are critical to the long-term development of the community, namely attracting Malay and Muslim talents from the region; leadership, civil society and young professionals; social development; education; religion; and economics
Inking of Memorandum of Understanding with EDC@SMCCI
2013
Introduction of Temporary Assistance Package
2011
The formation of DAC was one of the strategies proposed during the 3rd Convention to strengthen the community’s financial architecture
Launch of AMP-DAC Financial Literacy Programme
AMP’s first branch office and dedicated youth hub was launched on 26 February 2011, offering a wide range of services for the academic and personal development of youths
2016
Launch of Debt Advisory Centre (DAC)
2014
Opening of AMP @ Jurong Point
Launched in April 2015, Common Space, powered by Young AMP, provides a shared community-driven workspace for start-ups and small businesses
CommaCon 2016 A first-of-its-kind national youth convention, CommaCon 2016, provided a platform for youths to have honest and meaningful discussions on sensitive issues such as racism, terrorism, national identity and the socio-economic divide
OUR PARTNERS
Our deepest appreciation goes to the donors and supporters, whose generous contributions and support towards our
Acer Computer (Singapore) Pte Ltd
Early Childhood Development Agency
Agency for Science, Technology & Research (A*STAR)
East View Secondary School
fund raising initiatives provided the
Alive Community Network
opportunity for our beneficiaries to uplift
Amani Weddings Pte Ltd
their lives and build a better future.
A'Niz
Likewise, the collaboration between AMP
Assumption Pathway School
and our valued partners from various
Bata Singapore Pte Ltd
sectors as well as other communities have ensured that more individuals and families are able to benefit from our range of services and programmes.
Batam Pos Entrepreneur School Bendemeer Primary School Boon Lay Garden Primary School Bukit View Primary School Canberra Primary School Cantonment Primary School Care & Share Movement Care Corner – Teck Ghee Youth Centre Care Corner Family Service Centre (Queenstown) Care Corner Family Service Centre (Toa Payoh)
Embassy of the United States in Singapore Eurasian Association First Toa Payoh Primary School FiTree FOCUS Adventure Pte Ltd For the People & Community HeyMeet Pte Ltd Hong Kah Secondary School Immigration & Checkpoints Authority of Singapore Infocomm Development Authority of Singapore Institute for Infocomm Research (I2R) Institute of Technical Education Islamic Religious Council of Singapore (MUIS) Jurong Spring Community Club LaunchGood
Central Narcotics Bureau
Lee Foundation
Chinese Development Assistance Council
Literacy Initiative for Equity
Club HEAL
Loyang Secondary School
Community Alive Project
Lydia’s Oven
Community Leaders Forum
M1 Limited
Corporation Primary School
Madrasah Irsyad Zuhri Al-Islamiah
Covenant Family Service Centre
Madrasah Wak Tanjong Al Islamiah
Creative Muslim Youth Kakis
Management Development Institute of Singapore
Credit Counselling Singapore
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Marsiling Primary School
Serangoon Garden Secondary School
YMS Education (Young Muslim Scientists)
MENDAKI Club
Si Ling Primary School
Yu Neng Primary School
Ministry of Culture, Community & Youth
Singapore Indian Development Association
Yuan Ching Secondary School
Ministry of Education
Singapore Malay Chamber of Commerce & Industry (SMCCI)
Yuhua Secondary School
Ministry of Social and Family Development Muslim Delights Catering Muslim Healthcare Professionals Association Muslim Youth Forum National Council of Social Service National Parks Board National Volunteer & Philanthropy Centre
Singapore Malay Teachers’ Co-operative Limited Singapore Management University Singapore Muslim Women's Association (PPIS) Singapore Police Force Singapore Totalisator Board (Tote Board)
National Youth Council
Singapore University of Technology and Design
New Town Primary School
Singapore Workforce Development Agency
Northlight School
SME Centre @ SMCCI
OnePeople.sg
South Central Community Family Service Centre
Pioneer Junior College Pluto Technology Pte Ltd POKKA International Pte Ltd Prophet Muhammad's Birthday Memorial Scholarship (LBKM) Prowise Consultancy Pte Ltd Punggol Primary School Queenstown Primary School RAS Consultancy Services Pte Ltd Registry of Muslim Marriages Safinah Holdings Pte Ltd Second Chance Properties Ltd Selera Sensasi Nasi Padang
South East Community Development Council South West Community Development Council Syariah Court Singapore Teck Ghee Primary School The Food Bank Singapore Ltd The Silent Foundation Thye Hua Kwan Family Service Centre Vector Scorecard (Asia-Pacific) Pte Ltd White Sands Primary School Yayasan MENDAKI
Zhonghua Primary School
AN N U A L R E P O R T 2 0 1 6 FIN AN C I AL STAT E ME N T S Y EAR END E D 3 0 J U N E 2 0 1 6
YEARS OF SERVING THE COMMUNITY
Directors Abdul Hamid Bin Abdullah Bibi Jan Mohamed Ayyub Mohamed Nawab Mohamed Osman Muhammad Shamir Bin Abdul Rahim Phiroze Bin Abdul Rahman Md Badrun Nafis Bin Saion
(Appointed on 12 December 2015)
Mohamad Azmi Bin Muslimin
(Appointed on 12 December 2015)
Muhamad Nazzim Bin Muhamad Hussain
(Appointed on 12 December 2015)
Othman Lebby Marican Bin Vappoo Maricar
(Appointed on 12 December 2015)
Zhulkarnain Bin Abdul Rahim
(Appointed on 12 December 2015)
Azmoon Bin Ahmad
(Retired on 12 December 2015)
Mohammed Raziff Bin Abdull Hamid
(Retired on 12 December 2015)
Secretary Kong Yuh Ling Doreen
Registered Office 78 Shenton Way #26-02A Singapore 079120
Auditors Rohan • Mah & Partners LLP
Bankers United Overseas Bank Limited Oversea-Chinese Bank Corporation Limited DBS Bank Ltd Malayan Banking Berhad
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
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REPORT
2016:
CONTENTS 41 Directors’ Statement
43 Independent Auditors' Report
45 Statements of Financial Position
46 Statements of Comprehensive Income
47 Statements of Changes in Funds
48 Consolidated Statement of Cash Flows
49 Notes to the Financial Statements
FINANCIAL
STATEMENTS
02
DIRECTORS’ STATEMENT
The directors are pleased to present their statement to the members together with the audited consolidated financial statements of Association of Muslim Professionals (“the Company”) and its subsidiaries (collectively, “the Group”) for the financial year ended 30 June 2016. 1
OP I N I ON OF T H E D I R E C T O R S In the opinion of the directors, a.
the consolidated financial statements of the Group and the statement of financial position of the Company are drawn up so as to give a true and fair view of the financial position of the Group and the Company as at 30 June 2016 and the financial performance and changes in funds of the Group and the Company, and changes in cash flows of the Group for the year then ended; and
b.
at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debt as and when they fall due.
2
D I REC T ORS The directors of the Company in office at the date of this statement are: Abdul Hamid Bin Abdullah Bibi Jan Mohamed Ayyub Mohamed Nawab Mohamed Osman Muhammad Shamir Bin Abdul Rahim Phiroze Bin Abdul Rahman
3
Md Badrun Nafis Bin Saion
(Appointed on 12 December 2015)
Mohamad Azmi Bin Muslimin
(Appointed on 12 December 2015)
Muhamad Nazzim Bin Muhamad Hussain
(Appointed on 12 December 2015)
Othman Lebby Marican Bin Vappoo Maricar
(Appointed on 12 December 2015)
Zhulkarnain Bin Abdul Rahim
(Appointed on 12 December 2015)
A RRA N GEM EN T S FO R D I R E C T O R S T O ACQUIRE S H ARE S OR D E BE N TURE S Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of the Company or any other body corporate.
ASSOCIATION
4
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
D I REC T O R S' I N T E R E ST I N SH A R E S OR D E BE N TURE S As the Company is limited by guarantee and has no share capital, none of the directors holding office at the end of the financial year had an interest in the share capital or debentures of the Company. None of the directors holding office at the end of the financial year had an interest in shares or debentures of the subsidiaries either at the beginning (or at date of appointment) or end of the financial year.
5
A U D I T OR S The auditors, Messrs Rohan • Mah & Partners LLP have expressed their willingness to accept re-appointment as auditor.
O N BEHA L F O F T H E B O A R D O F D I R E CTORS
Abdul Hamid Bin Abdullah Director
Zhulkarnain Bin Abdul Rahim Director Singapore, 28 October 2016
42
INDEPENDENT AUDITORS’ REPORT
T O T H E M E M B E R S O F A S S O C I AT I O N O F M U S L I M P R O F E S S I O N A L S A N D I T S S U B S I D I A R I E S REPOR T ON T HE C O N SO LI D AT E D FI N A N C I AL S TATE M E N TS We have audited the accompanying financial statements of Association of Muslim Professionals (the “Company”) and its subsidiaries (collectively, the “Group”), which comprise the statements of financial position of the Group and of the Company as at 30 June 2016, and the statements of comprehensive income and the statements of changes in funds of the Group and of the Company, and consolidated statement of cash flows of the Group for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility 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 Singapore Companies Act, Chapter 50 (the “Act”); the Singapore Charities Act, Cap 37 (the “Charities Act”) and Singapore Financial Reporting Standards, 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. Auditor’s Responsibility 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 of financial statements that give a true and fair view 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 entity’s internal control. An audit also includes evaluating the appropriateness of 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. Opinion In our opinion, the consolidated financial statements of the Group and the statement of financial position, the statement of comprehensive income and the statement of changes in funds of the Company are properly drawn up in accordance with the provisions of the Act, the Charities Act and Singapore Financial Reporting Standards so as to give a true and fair view of the financial position of the Group and the Company as at 30 June 2016 and of the financial performance, changes in funds of the Group and the Company and cash flow of the Group for the year ended on that date.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
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ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
44
Other Matters The audit report of one of the subsidiaries contained the following emphasis of matter: Although the subsidiary’s current liabilities exceeded the current assets, and the accumulated losses exceeded the paid-up capital and reserves, by S$1,439,027 and S$1,439,027 respectively as at 30 June 2016, the financial statements have been prepared on the basis that the subsidiary is a going concern as the holding company has given written confirmation of its continuing financial support for the subsidiary. Our opinion is not qualified in respect of this matter. R EP ORT ON O T H E R LE G A L A N D R E G UL ATORY RE QUIRE M E N TS In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. During the course of our audit, nothing has come to our attention that causes us to believe that during the year: a.
The use of the donation monies was not in accordance with the objectives of the Company as required under regulation 11 (Use of donations) of the Charities (Institutions of a Public Character) Regulations; and
b.
The Company has not complied with the requirements of regulation 15 (Fund-raising expenses) of the Charities (Institutions of a Public Character) Regulations.
ROHAN • MAH & PARTNERS LLP Public Accountants and Chartered Accountants Singapore 28 October 2016 (RK/MA./FM/HL/LS/ZW/JS/AH/as)
STATEMENTS OF FINANCIAL POSITION A S
AT
3 0
J U N E
2 0 1 6
Note
Group
Company
2016
2015
2016
2015
S$
S$
S$
S$
8,482,112
8,458,127
8,319,588
8,334,601
AS S ET S L ES S L I A BI L I T I E S Non-Current Assets Property, plant and equipment
4
Investments in subsidiaries
5
–
–
250,001
250,001
Available-for-sale financial assets
6
1
1
1
1
Deferred taxation
11
148,641
122,305
–
–
8,630,754
8,580,433
8,569,590
8,584,603
Current Assets Trade and other receivables
7
2,326,071
3,453,655
3,388,661
3,007,244
Cash and cash equivalents
9
6,896,128
4,743,557
4,987,548
3,854,922
9,222,199
8,197,212
8,376,209
6,862,166
4,052,168
4,351,127
4,814,801
4,498,729
Current Liabilities Trade and other payables
10
Obligation under finance lease
12
Net Current Assets
6,985
31,263
6,985
31,263
4,059,153
4,382,390
4,821,786
4,529,992
5,163,046
3,814,822
3,554,423
2,332,174
–
6,985
–
6,985
13,793,800
12,388,270
12,124,013
10,909,792
6,212,319
5,498,034
6,212,319
5,498,034
7,209,648
6,599,620
5,539,861
5,121,142
Non-Current Liabilities Obligation under finance lease
12
Net Assets AC C UM U L AT ED F U N D Property revaluation reserve
13
Unrestricted funds Restricted funds
14
371,833
290,616
371,833
290,616
13,793,800
12,388,270
12,124,013
10,909,792
The accompanying notes form an integral part of these financial statements.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
STATEMENTS OF COMPREHENSIVE INCOME FO R
T H E
Y E A R
E N D E D
30
ANNUAL
|
J U N E
Note
REPORT
2016:
FINANCIAL
STATEMENTS
46
2 0 1 6
Group
Company
2016
2015
2016
2015
S$
S$
S$
S$
Continuing operations Revenue
15
16,835,022
17,187,156
13,658,529
11,033,017
Expenditure
16
(16,746,765)
(17,124,492)
(13,456,735)
(11,085,809)
Other income
17
579,747
402,617
289,999
258,671
16,982
12,108
16,982
12,108
Interest income Financial expenses
19
Profit before tax for the year Taxation
(20,077)
(16,126)
(8,839)
(7,498)
664,909
461,263
499,936
210,489
26,336
16,857
–
–
Profit from continuing operations
691,245
478,120
499,936
210,489
Profit for the year
691,245
478,120
499,936
210,489
20
Other comprehensive income Revaluation gain
714,285
–
714,285
–
Other comprehensive income, net of tax
714,285
–
714,285
–
Total comprehensive income for the year
1,405,530
478,120
1,214,221
210,489
13
The accompanying notes form an integral part of these financial statements.
STATEMENTS OF CHANGES IN FUNDS F O R
T H E
Y E A R
E N D E D
3 0
J U N E
2 0 1 6
Group Property Revaluation Reserve
Unrestricted
Restricted
Total
S$
S$
S$
S$
5,498,034
6,364,812
47,304
11,910,150
–
234,808
243,312
478,120
5,498,034
6,599,620
290,616
12,388,270
714,285
–
–
714,285
A C C UM U L AT ED F U N D Balance as at 1 July 2014 Total comprehensive income for the year Balance as at 30 June 2015 Revaluation gain (Note 13) Total comprehensive income for the year Balance as at 30 June 2016
–
610,028
81,217
691,245
6,212,319
7,209,648
371,833
13,793,800
Company Balance as at 1 July 2014
5,498,034
5,153,965
47,304
10,699,303
–
(32,823)
243,312
210,489
5,498,034
5,121,142
290,616
10,909,792
714,285
–
–
714,285
Total comprehensive (loss)/income for the year Balance as at 30 June 2015 Revaluation gain (Note 13) Total comprehensive income for the year Balance as at 30 June 2016
–
418,719
81,217
499,936
6,212,319
5,539,861
371,833
12,124,013
The accompanying notes form an integral part of these financial statements.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
CONSOLIDATED STATEMENT OF CASH FLOWS F O R
T H E
Y E A R
E N D E D
ANNUAL
|
3 0
J U N E
REPORT
2016:
FINANCIAL
STATEMENTS
48
2 0 1 6
Group 2016
2015
S$
S$
664,909
461,263
1,109,020
977,596
C A S H F L OW S FR O M O PE R AT I N G A C T IV ITIE S Profit before taxation Adjustments for : Depreciation of property, plant and equipment Finance lease interest Interest income Loss on disposal of property, plant and equipment Profit before working capital changes
1,904
2,956
(16,982)
(12,108)
-
263
1,758,851
1,429,970
1,127,584
(1,291,597)
(298,959)
665,513
2,587,476
803,886
Working capital changes, excluding changes related to cash: Trade and other receivables Trade and other payables Cash generated from operations Interest income received Net cash generated from operating activities
16,982
12,108
2,604,458
815,994
(418,720)
(774,440)
(418,720)
(774,440)
(31,263)
(43,408)
(1,904)
(2,956)
(33,167)
(46,364)
C A S H F L OW S FR O M I N V E ST I N G A C T I V ITIE S Acquisitions of property, plant and equipment Net cash used in investing activities C A S H F L OW S FR O M FI N A N C I N G A C T IV ITIE S Changes in finance lease liabilities - repayments Finance lease interest paid Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents
2,152,571
(4,810)
Cash and cash equivalents beginning of year
4,743,557
4,748,367
6,896,128
4,743,557
Cash and cash equivalents at end of year (Note 9) The accompanying notes form an integral part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS 3 0
JU N E
2 0 1 6
These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1
C ORP ORAT E I N F O R MAT I O N Association of Muslim Professionals was incorporated in Singapore as a company limited by guarantee without a share capital. Each ordinary member undertakes to contribute to the assets of the Company in the event of it being wound up while he is a member, or within one year after he ceases to be a member, for payment of the debts and liabilities of the Company contracted before he ceases to be a member and of the costs, charges and expenses of winding up, such amount as may be required but not exceeding S$100. As at 30 June 2016, the Company has 991 (2015: 977) ordinary members. In addition, the Company has 305 (2015: 302) associate members who do not bear any liability in the event of the Company being wound up. The principal activity of the Company is to engage in self-help projects for the betterment of the Malay/Muslim community in particular, and Singaporeans in general. The Company is an approved charity under the Charities Act, Cap. 37 and has been accorded the status of an Institution of a Public Character (“IPC”) for the period from 10 October 2014 to 9 October 2018. The principal activities of the subsidiaries are shown in Note 5 to the financial statements. The registered office of the Company is located at 78 Shenton Way #26-02A Singapore 079120. The principal place of business is located at AMP@Pasir Ris, No. 1 Pasir Ris Drive 4, #05-11, Singapore 519457. The financial statements of the Group and the Company for the year ended 30 June 2016 were authorised for issue in accordance with a resolution of the Directors on 28 October 2016.
2
S U M M A RY OF SI G N I FI C A N T A C C O UN TIN G POL ICIE S 2.1
Basis of Preparation The financial statements are prepared in accordance with Singapore Financial Reporting Standards (“FRS”). The financial statements, expressed in Singapore Dollar (SGD or S$) are prepared on the historical cost convention, except as disclosed in the accounting policies below. The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the financial year. Although these estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates. Critical accounting estimates and assumptions used that are significant to the financial statements, and areas involving a higher degree of judgement or complexity, are disclosed in Note 3.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
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ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
50
In the current financial year, the Group has adopted all the new and revised FRSs and Interpretations of FRS (“INT FRS”) that are relevant to its operations and effective for annual periods beginning on or after 1 July 2015. The adoption of these new/revised FRSs and INT FRSs does not result in changes to the Group’s accounting policies and has no material effect on the amounts reported for the current or prior years. 2.2
Group Accounting Basis of Consolidation The financial statements of the Company for the year ended 30 June 2016 relate to the Company and its subsidiaries (together referred as the “Group”). Subsidiaries are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases. In preparing the consolidated financial statements, intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated; unrealised losses are also eliminated unless cost cannot be recovered. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure consistency of accounting policies with those of the Group. The acquisition method of accounting is used to account for business combinations by the Group. Acquisition-related costs are expensed as incurred. The consideration transferred for the acquisition of a subsidiary comprises the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred also includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the net identifiable assets acquired is recorded as goodwill. Please refer to Note 2.18.2 for the subsequent accounting policy on goodwill.
2.3
Investments in Subsidiaries Subsidiaries are entities over which the Group has power to govern the financial and operating policies so as to obtain benefits from its activities, generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
Non-controlling interests is that part of the net results of operations and of net assets of a subsidiary attributable to interests which are not owned directly or indirectly by the equity holders of the Company. They are shown separately in the consolidated statement of comprehensive income, statement of changes in equity and statement of financial position. Total comprehensive income is attributed to the non-controlling interests based on their respective interests in a subsidiary, even if this results in the non-controlling interests having a deficit balance. Investments in subsidiaries are stated at cost less accumulated impairment losses in the Company’s statement of financial position. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of an investment in subsidiaries, the difference between net disposal proceeds and its carrying amount is taken to the statement of comprehensive income. When a change in the Company’s ownership interest in a subsidiary results in a loss of control over the subsidiary, the assets and liabilities of the subsidiary including any goodwill are derecognised. Amounts recognised in other comprehensive income in respect of that entity are also reclassified to profit or loss or transferred directly to retained earnings if required by a specific Standard. Any retained interest in the entity is remeasured at fair value. The difference between the carrying amount of the retained investment at the date when control is lost and its fair value is recognised in profit or loss. Changes in the Company’s ownership interest in a subsidiary that does not result in a loss of control are accounted for as equity transactions. In such circumstances, the carrying amount of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount of which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributable to owners of the parent. 2.4
Property, Plant and Equipment 2.4.1
Measurement Items of property, plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. Freehold property is stated in the statement of financial position at their revalued amounts, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are carried out by an independent professional valuer once every two financial years such that the carrying amount does not differ materially from that which would be determined using fair values at the statement of financial position date.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
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ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
52
Any revaluation increase arising on the revaluation of the freehold property is credited to the property revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously recognised in the statement of comprehensive income, in which case the increase is credited to the statement of comprehensive income to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of freehold property is charged to the statement of comprehensive income to the extent that it exceeds the balance, if any, held in the property revaluation reserve relating to a previous revaluation of that asset. 2.4.2
Components of Costs The cost of an item of property, plant and equipment includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
2.4.3
Leased Assets Leases in terms of which the Group assumes substantially all risks and rewards of ownership are classified as finance leases. Property, plant and equipment acquired by finance leases is stated at an amount equal to the lower of its fair value and the present value of the minimum lease payments at the inception of the lease, less accumulated depreciation and impairment losses.
2.4.4
Depreciation Depreciation on property, plant and equipment is calculated using the straight line method to allocate their depreciable amounts over their estimated useful lives as follows: Years Freehold property Furniture and fittings
30 5
Office equipment
5
Renovation
5
The useful lives of property, plant and equipment are reviewed and adjusted as appropriate at each statement of financial position date. Fully depreciated assets are retained in the financial statements until they are no longer in use. No depreciation is provided on property, plant and equipment which is still under construction.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
2.4.5
Subsequent Expenditure Subsequent expenditure relating to property, plant and equipment that has already been recognised is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of the standard of performance of the asset before the expenditure was made, will flow to the Group and the cost can be reliably measured. Other subsequent expenditure is recognised as an expense during the financial year in which it is incurred.
2.4.6
Disposal On disposal of an item of property, plant and equipment, the difference between the net disposal proceeds and its carrying amount is taken to the statement of comprehensive income. Any amount in revaluation reserve relating to that asset is transferred to retained earnings.
2.5
Impairment of Non-Financial Assets 2.5.1
Property, Plant and Equipment Investments in Subsidiaries Property plant and equipment and investments in subsidiaries are reviewed for impairment whenever there is any indication that these assets may be impaired. If any such indication exists, the recoverable amount (i.e. the higher of the fair value less cost to sell and value in use) of the asset is estimated to determine the amount of impairment loss. For the purpose of impairment testing of these assets, recoverable amount is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. If this is the case, recoverable amount is determined for the Cash-Generating-Units CGU to which the asset belongs to. If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The impairment loss is recognised in the statement of comprehensive income unless the asset is carried at revalued amount, in which case, such impairment loss is treated as a revaluation decrease. An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a change in the estimates used to determine the assets’ recoverable amount since the last impairment loss was recognised. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss for an asset is recognised in the statement of comprehensive income, unless the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase.
ASSOCIATION
2.6
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
54
Financial Assets 2.6.1
Initial Recognition and Measurement Financial assets are recognised on the statement of financial position when, and only when, the Group becomes a party to the contractual provisions of the financial instrument. The Group determines the classification of its financial assets at initial recognition. When financial assets are recognised initially, they are measured as fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs.
2.6.2
Subsequent Measurement The subsequent measurement of financial assets depends on their classification as follows: i. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. This category includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by FRS 39. Derivatives, including separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. The Group has not designated any financial assets upon initial recognition at fair value through profit or loss. Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value. Any gains or losses arising from changes in fair value of the financial assets are recognised in profit or loss. Net gains or net losses on financial assets at fair value through profit or loss include exchange differences, interest and dividend income. Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
ii. Loans and receivables Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, and through the amortisation process. iii. Held-to-maturity investments Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Group has the positive intention and ability to hold the investment to maturity. Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the held-to-maturity investments are derecognised or impaired, and through the amortisation process. iv. Available-for-sale financial assets Available for-sale financial assets include equity and debts securities. Equity investments classified as available-for-sale are those, which are neither classified as held for trading nor designated at fair value through profit or loss. Debt securities in this category are those which are intended to be held for an indefinite period of time and which may be sold in response to needs for liquidity or in response to changes in the market conditions. After initial recognition, available-for-sale financial assets are subsequently measured at fair value. Any gains or losses from changes in fair value of the financial asset are recognised in other comprehensive income, except that impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the financial asset is derecognised. Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss. 2.6.3
Derecognition A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit or loss.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
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ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
56
All regular way purchases and sales of financial assets are recognised or derecognised on the trade date i.e., the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace concerned. 2.7
Impairment of Financial Assets The Group assesses at each end of the reporting period whether there is any objective evidence that a financial asset is impaired. 2.7.1
Financial Assets Carried at Amortised Cost For financial assets carried at amortised cost, the Group first assesses individually whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be recognised are not included in a collective assessment of impairment. If there is objective evidence that an impairment loss on financial assets carried at amortised cost has incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The impairment loss is recognised in profit or loss. When the asset becomes uncollectible, the carrying amount of impaired financial assets is reduced directly or if an amount was charged to the allowance account, the amounts charged to the allowance account are written off against the carrying value of the financial asset. To determine whether there is objective evidence that an impairment loss on financial assets has incurred, the Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
2.7.2
Financial Assets Carried at Cost If there is objective evidence (such as significant adverse changes in the business environment where the issuer operates, probability of insolvency or significant financial difficulties of the issuer) that an impairment loss on financial assets carried at cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed in subsequent periods.
2.7.3
Available-For-Sale Financial Assets In the case of equity investments classified as available-for-sale, objective evidence of impairment include: i. significant financial difficulty of the issuer or obligor, ii. information about significant changes with an adverse effect that have taken place in the technological, market, economic or legal environment in which the issuer operates, and indicates that the cost of the investment in equity instrument may not be recovered; and iii. a significant or prolonged decline in the fair value of the investment below its costs. ‘Significant’ is to be evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair value has been below its original cost. If an available-for-sale financial asset is impaired, an amount comprising the difference between its acquisition cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss previously recognised in profit or loss is transferred from other comprehensive income and recognised in profit or loss. Reversals of impairment losses in respect of equity instruments are not recognised in profit or loss; increase in their fair value after impairment are recognised directly in other comprehensive income. In the case of debt instruments classified as available-for-sale, impairment is assessed based on the same criteria as financial assets carried at amortised cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in profit or loss. Future interest income continues to be accrued based on the reduced carrying amount of the asset and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of finance income. If, in a subsequent year, the fair value of a debt instrument increases and the increases can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed in profit or loss.
ASSOCIATION
2.8
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
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STATEMENTS
58
Financial Liabilities 2.8.1
Initial Recognition and Measurement Financial liabilities are recognised on the statement of financial position when, and only when, the Group becomes a party to the contractual provisions of the financial instrument. The Group determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of other financial liabilities, plus directly attributable transaction costs.
2.8.2
Subsequent Measurement The measurement of financial liabilities depends on their classification as follows: i. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss includes financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This category includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair value. Any gains or losses arising from changes in fair value of the financial liabilities are recognised in profit or loss. The Group has not designated any financial liabilities upon initial recognition at fair value through profit or loss. ii. Other financial liabilities After initial recognition, other financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.
2.8.3
Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
2.9
Fair Value Estimation The fair values of financial instruments traded in active markets are based on quoted market prices at the statement of financial position date. The quoted market prices used for financial assets held by the Group are the current bid prices; the appropriate quoted market prices for financial liabilities are the current ask prices. The fair values of financial instruments that are not traded in an active market are determined by using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each statement of financial position date. Quoted market prices or dealer quotes for similar instruments are used where appropriate. Other techniques, such as estimated discounted cash flows, are also used to determine the fair values of the financial instruments. The carrying amounts of current receivables and payables are assumed to approximate their fair values. The fair values of non-current receivables for disclosure purposes are estimated by discounting the future contractual cash flows at the current market interest rates that are available to the Group for similar financial instruments.
2.10
Cash and Cash Equivalents Cash and cash equivalents comprise cash balances and bank deposits. For the purpose of the statement of cash flows, cash and cash equivalents are presented net of bank overdrafts which are repayable on demand and which form an integral part of the Group's cash management.
2.11
Income Taxes Current income tax liabilities (and assets) for the current and prior periods are recognised at the amounts expected to be paid to (or recovered from) the tax authorities. The tax rates and tax laws used to compute the amounts are those that are enacted or substantively enacted by the statement of financial position date. Deferred income tax assets/liabilities are recognised for all deductible taxable temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax assets/liabilities arise from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax liability is recognised on temporary differences arising on investments in subsidiaries, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
60
Deferred income tax assets and liabilities are measured at: i.
the tax rates that are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled, based on tax rates (and tax laws) that have been enacted or substantially enacted by the statement of financial position date; and
ii.
the tax consequence that would follow from the manner in which the Group expects, at the statement of financial position date, to recover or settle the carrying amounts of its assets and liabilities.
Current and deferred income taxes are recognised as income or expenses in the statement of comprehensive income for the period, except to the extent that the tax arises from a business combination or a transaction which is recognised directly in equity. Deferred tax on temporary differences arising from the revaluation gains and losses on land and buildings, fair value gains and losses on available-for-sale financial assets and cash flow hedges, and the liability component of convertible debts are charged or credited directly to equity in the same period the temporary differences arise. Deferred tax arising from a business combination is adjusted against goodwill on acquisition. 2.12
Functional and Presentation Currency 2.12.1 Functional and Presentation Currency Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which the Group operates (“the functional currency”). The financial statements are presented in Singapore Dollar (SGD), which is the Group’s functional and presentation currency. 2.12.2 Foreign Currencies Transactions Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates prevailing at the date of the transactions. Currency translation gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.
2.13
Revenue Recognition Donations from individuals, companies and other organisations are recorded when received. The Company derives approximately 6.40% (2015: 8%) of the voluntary donations in the form of cash. Due to the nature of these donations, the Company has limited accounting controls over the contributions prior to the initial entry in the accounting records. Government matching grant, MBMF, school fees, tuition fees and other income are accounted for on the accrual basis.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
Revenue from projects undertaken by a subsidiary, Centre for Research on Islamic and Malay Affairs Pte Ltd, is recognised based on the percentage-of-completion method. The percentage-of-completion for a given project is determined based on costs incurred to date as a percentage of total estimated costs of the project. Project costs include subcontractor costs, direct staff salaries and other related overhead expenses. Provisions for foreseeable losses on uncompleted projects are made in the year in which such losses are determined. 2.14
Government Grants Grants from the government are recognised as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions. Government grants receivable are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income. Government grants relating to assets are deducted against the carrying amount of the assets. Jobs credit grants, which are government grants given to match staff and business costs, are recognised in the month of payment only as certain conditions have to be fulfilled before payment.
2.15
Employee Benefits 2.15.1 Defined Contribution Pension Costs The Group makes contributions to the Central Provident Fund Scheme in Singapore, a defined contribution pension scheme. These contributions are recognised as an expense in the period in which the related service is performed. 2.15.2 Employee Leave Entitlement Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for leave as a result of services rendered by employees up to statement of financial position date.
2.16
Finance Costs Interest expense and similar charges are expensed in the statement of comprehensive income in the period in which they are incurred, except to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to be prepared for its intended use or sale. The interest component of finance lease payments is recognised in the statement of comprehensive income using the effective interest rate method.
ASSOCIATION
2.17
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
62
Accumulated Fund 2.17.1 Unrestricted Funds Unrestricted funds are available for use at the discretion of the board of directors in the furtherance of the general objectives of the Company and which have not been designated for specific purposes. 2.17.2 Restricted Funds Restricted funds are funds which are to be used in accordance with specific restriction imposed by the fund providers. The aim and use of each restricted fund is set out in Note 14.
2.18
Intangible Assets 2.18.1 Other Intangible Assets Intangible assets acquired separately are measured initially at cost. The cost of intangible assets acquired in a business combination is their fair value as at the date of acquisition. Following initial acquisition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in profit or loss in the year in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite useful lives is recognised in profit or loss in the expense category consistent with the function of the intangible asset. Intangible assets with indefinite useful lives or not yet available for use are tested for impairment annually or more frequently if the events and circumstances indicate that the carrying value may be impaired either individually or at the cash-generating unit level. Such intangible assets are not amortised. The useful life of an intangible asset with an indefinite useful life is reviewed annually to determine whether the useful life assessment continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is derecognised.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
2.18.2 Goodwill on Acquisitions Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of their identifiable net assets and contingent liabilities of the acquired subsidiaries, joint ventures and associated companies at the date of acquisition. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain purchase. Goodwill on subsidiaries is recognised separately as intangible assets and carried at cost less accumulated impairment losses. Goodwill on associated companies is included in the carrying amount of the investments. Gains and losses on the disposal of subsidiaries include the carrying amount of goodwill relating to the entity sold, except for goodwill arising from acquisitions prior to 1 January 2001. Such goodwill was adjusted against retained earnings in the year of acquisition and not recognised in the statement of comprehensive income on disposal. The amortisation period and amortisation method of intangible assets other than goodwill are reviewed at least at each statement of financial position date. The effects of any revision are recognised in the statement of comprehensive income when the changes arise. 2.19
Related Parties A related party is defined as follows: a.
b.
A person or a close member of that person’s family is related to the Group and the Company if that person: i.
Has control or joint control over the Company;
ii.
Has significant influence over the Company; or
iii.
Is a member of the key management personnel of the Group or Company or of a parent of the Company.
An entity is related to the Group and the Company if any of the following conditions applies: i.
The entity and the Company are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
ii.
One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
iii.
Both entities are joint ventures of the same third party.
iv.
One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
ASSOCIATION
OF
MUSLIM
v.
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
64
The entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the Company. If the Company is itself such a plan, the sponsoring employers are also related to the Company;
vi.
The entity is controlled or jointly controlled by a person identified in (a);
vii.
A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).
2.20
Leases 2.20.1 Operating Leases Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are taken to the statement of comprehensive income on a straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place. 2.20.2 Finance Leases Leases of assets in which the Company assumes substantially the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in borrowings. The interest element of the finance cost is taken to the statement of comprehensive income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
2.21
Provisions Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is more likely than not that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as finance costs.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
Provisions are reviewed at each statement of financial position date and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.
3
C RI T I C A L A C C O UN T I N G E ST I MAT E S A N D JUD G E M E N T Estimates and judgement are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Property, Plant and Equipment and Depreciation The Group’s management determines the estimated useful lives and related depreciation charges for its property, plant and equipment. This estimate is based on the historical experience of the actual useful lives of property, plant and equipment of similar nature and functions. It could change significantly as a result of technical innovations and competitor actions in response to severe industry cycles. Management will increase the depreciation charge where useful lives are less than previously estimated lives, or it will write-off or write-down technically obsolete assets that have been abandoned or sold. Allowance for Doubtful Debts Allowance for bad and doubtful debts are based on an assessment of the recoverability of trade and other receivables. Allowances are applied to trade and other receivables where events or changes in circumstances indicate that the balances may not be collectible. The indication of bad and doubtful debts requires the use of judgement and estimates. Where the expected outcome is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimates have been changed. Impairment of Investment and Financial Assets The Group follows the guidance of FRS 36 and FRS 39 in determining when an investment or financial assets is other-thantemporary impaired. This assessment requires significant judgement. The Group evaluates, among other factors, the duration and extent to which the fair value of an investment or financial asset is less than its cost; and the financial health of and near-term business outlook for the investment or financial asset, including factors such as industry and sector performance, changes in technology and operational and financing cash flow.
ASSOCIATION
4
OF
MUSLIM
PROFESSIONALS
ANNUAL
|
REPORT
2016:
FINANCIAL
STATEMENTS
66
P ROP ERT Y, PLA N T A N D E Q UI PME N T
Group Valuation 2016 Cost/Valuation At beginning of year Additions Revaluation Reversal of depreciation on revaluation
Cost
Freehold
Furniture and
Office
Property
fittings
equipment
Renovation
Total
S$
S$
S$
S$
S$
7,800,000
779,853
909,731
1,340,539
10,830,123
–
110,432
270,350
37,938
418,720
714,285
–
–
–
714,285
(1,114,285)
–
–
–
(1,114,285)
7,400,000
890,285
1,180,081
1,378,477
10,848,843
At beginning of year
649,999
486,310
646,091
589,596
2,371,996
Depreciation
567,065
133,909
182,317
225,729
1,109,020
At end of year Accumulated Depreciation
Reversal of depreciation on revaluation At end of year
(1,114,285)
–
–
–
(1,114,285)
102,779
620,219
828,408
815,325
2,366,731
7,297,221
270,066
351,673
563,152
8,482,112
Carrying Amount At end of year
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
4
PROP ERT Y, P L A N T A N D E Q UI PM E N T
Group
– cont’d
– cont’d
Valuation 2015
Cost
Freehold
Furniture and
Office
Property
fittings
equipment
Renovation
in progress
Total
S$
S$
S$
S$
S$
S$
7,800,000
812,136
1,086,264
1,088,310
26,053
10,812,763
Additions
–
155,571
127,672
491,197
–
774,440
Reclassification
–
–
–
26,053
(26,053)
-
Cost/Valuation At beginning of year
Disposals At end of year
Renovation
–
(187,854)
(304,205)
(265,021)
–
(757,080)
7,800,000
779,853
909,731
1,340,539
–
10,830,123
Accumulated Depreciation At beginning of year Depreciation Disposals At end of year
92,856
556,546
780,949
720,866
–
2,151,217
557,143
117,618
169,084
133,751
–
977,596
–
(187,854)
(303,942)
(265,021)
–
(756,817)
649,999
486,310
646,091
589,596
–
2,371,996
7,150,001
293,543
263,640
750,943
–
8,458,127
Carrying Amount At end of year
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
ANNUAL
|
REPORT
2016:
FINANCIAL
STATEMENTS
68
Company Valuation 2016 Cost/Valuation At beginning of year Additions Revaluation Reversal of depreciation on revaluation
Cost
Freehold
Furniture and
Office
Property
fittings
equipment
Renovation
Total
S$
S$
S$
S$
S$
7,800,000
585,940
521,795
1,313,479
10,221,214
–
63,337
198,463
22,760
284,560
714,285
–
–
–
714,285
(1,114,285)
–
–
–
(1,114,285)
7,400,000
649,277
720,258
1,336,239
10,105,774
At beginning of year
649,999
337,092
325,812
573,710
1,886,613
Depreciation
567,065
99,013
129,061
218,719
1,013,858
At end of year Accumulated Depreciation
Reversal of depreciation on revaluation At end of year
(1,114,285)
–
–
–
(1,114,285)
102,779
436,105
454,873
792,429
1,786,186
7,297,221
213,172
265,385
543,810
8,319,588
Carrying Amount At end of year
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
4
P ROP ERT Y, P LA N T A N D E Q UI PME N T
Company
– cont’d
– cont’d
Valuation 2015
Cost
Freehold
Furniture and
Office
Property
fittings
equipment
Renovation
in progress
Total
S$
S$
S$
S$
S$
S$
7,800,000
456,375
457,369
799,729
26,053
9,539,526
Additions
–
129,565
87,425
487,697
–
704,687
Reclassification
–
–
–
26,053
(26,053)
–
Cost/Valuation At beginning of year
Disposals At end of year
Renovation
–
–
(22,999)
-
–
(22,999)
7,800,000
585,940
521,795
1,313,479
–
10,221,214
92,856
259,989
235,320
445,021
–
1,033,186
557,143
77,103
113,228
128,689
–
876,163
Accumulated Depreciation At beginning of year Depreciation Disposals At end of year
–
–
(22,736)
-
–
(22,736)
649,999
337,092
325,812
573,710
–
1,886,613
7,150,001
248,848
195,983
739,769
–
8,334,601
Carrying Amount At end of year
The Group adopted the revaluation model for the freehold property. Revaluations are carried out by an independent professional valuer once every two financial years. A valuation for the premises at 150 Changi Road #04-06 & 04-07 Guthrie Building Singapore 419973 was performed by Robert Khan and Co. Pte Ltd for the year ended 30 June 2016. The valuation report dated 5 May 2016 indicated a market value of S$7,400,000 as at 27 April 2016. The market value was derived based on an open market value on an existing use basis. The carrying amount of freehold property would have been S$505,400 (2015: S$654,860) had the freehold property been carried at cost less accumulated depreciation and impairment losses. The carrying amount of property, plant and equipment of the Group and Company includes an amount of S$6,985 (2015: S$38,248) in respect of office equipment held under finance lease.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
70
I N VES T M E N T S I N SUB SI D I A R I E S
5
Company
Unquoted equity shares, at cost Less:
2016
2015
S$
S$
500,000
500,000
(249,999)
(249,999)
250,001
250,001
Allowance for impairment Balance at beginning and end of year
The allowance for impairment at the end of the year is in respect of the Centre for Research on Islamic and Malay Affairs Pte Ltd (“RIMA”).
Country of incorporation
Effective equity held
and place of Name of company
Centre for Research on
Principal activities
To provide research and studies
Islamic and Malay
into the affairs of the
Affairs Pte Ltd*
Malay/Muslim community
Mercu Learning Point Pte Ltd*
To provide educational, training and childcare services
* Audited by Rohan • Mah & Partners LLP, Singapore
business
by the Company
Cost of investment
2016
2015
2016
2015
%
%
S$
S$
Singapore
100
100
250,000
250,000
Singapore
100
100
250,000
250,000
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
6
AVA I L A BL E– F O R – SA LE FI N A N C I A L A SSE TS Group and Company
Unquoted equity shares, at cost Less:
2016
2015
S$
S$
24,000
24,000
(23,999)
(23,999)
1
1
Allowance for impairment Balance at beginning and end of year
The available-for-sale financial assets is in respect of GEMA Holdings Limited, a company incorporated in Singapore. There is no active market for the investments in unquoted shares of GEMA. As such, it is not practicable to determine with sufficient reliability the fair values of the investment; hence it is stated at cost. The management does not anticipate that the carrying amount of the above investment in unquoted shares will be significantly in excess of the fair values.
ASSOCIATION
7
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
Company
2016
2015
2016
2015
S$
S$
S$
S$
197,910
116,320
61,866
18,000
Balance at beginning of year
–
17,378
–
–
Allowance written off
–
(17,378)
–
–
Balance at end of year
–
–
–
–
197,910
116,320
61,866
18,000
–
1,780,542
–
–
197,910
1,896,862
61,866
18,000
–
–
3,021,624
3,121,401
Balance at beginning of year
–
–
1,471,303
1,376,809
Allowance for the year (Note 16)
–
–
9,415
94,494
Balance at end of year
–
–
1,480,718
1,471,303
–
–
1,540,906
1,650,098
2,128,161
1,556,793
1,785,889
1,339,146
2,326,071
3,453,655
3,388,661
3,007,244
Trade receivables Allowance for impairment
Amount due from PPIS (Note 28) Amounts due from subsidiaries - non trade Less:
72
T RA D E AN D O T H E R R E C E I VA B LE S Group
Less:
STATEMENTS
Allowance for impairment
Deposits, prepayments and other receivables (Note 8)
Amounts due from subsidiaries are unsecured, non-interest bearing and repayable on demand. The Group and the Company do not have concentration of credit risk in respect of a customer or a group of customers.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
7
T R A D E A N D O T H E R R E C E I VA B LE S
– cont’d
The aging of trade receivables at the reporting date is: Group Trade receivables are non-interest bearing and are generally on 30 to 60 days' terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. The maximum exposure of credit risk for trade receivables at the reporting date is S$197,910 (2015: S$1,896,862). Gross
Impairment losses
Gross
Impairment losses
2016
2016
2015
2015
S$
S$
S$
S$
Not past due
61,930
–
467,427
–
Past due 0 - 30 days
77,540
–
428,660
–
Past due 31 - 60 days
16,042
–
17,592
–
Past due 61 - 90 days
11,789
–
406,387
–
More than 90 days
30,609
–
576,796
–
197,910
–
1,896,862
–
Company Trade receivables are non-interest bearing and are generally on a 30-day term. They are recognised at their original invoice amounts which represent their fair values on initial recognition. The maximum exposure of credit risk for trade receivables at the reporting date S$61,866 (2015: S$18,000). Gross
Impairment losses
Gross
Impairment losses
2016
2016
2015
2015
S$
S$
S$
S$
2,746
–
2,924
–
55,597
–
4,253
–
Past due 31 - 60 days
2,843
–
10,820
–
Past due 61 - 90 days
–
–
3
–
680
–
–
–
61,866
–
18,000
–
Not past due Past due 0 - 30 days
More than 90 days
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
74
Based on historical default rates, the Group and the Company believe that no impairment allowance is necessary in respect of trade receivables past due up to 90 days. These receivables are mainly arising by customers that have good record with the Group and the Company. The carrying amounts of trade and other receivables approximate their fair values and are denominated in Singapore Dollar. 8
D EP OS I TS, PR E PAY ME N T S A N D O TH E R RE CE IVABL E S Group
Company
2016
2015
2016
2015
S$
S$
S$
S$
Government matching grant (Note 15)
800,000
800,000
800,000
800,000
MBMF grant
343,000
294,000
343,000
294,000
Deposits
118,129
113,311
62,852
63,123
Prepayments
196,878
216,863
61,976
53,663
Sundry receivables
9
670,154
132,619
518,061
128,360
2,128,161
1,556,793
1,785,889
1,339,146
C A S H A N D C A SH E Q UI VA LE N T S Group
Company
2016
2015
2016
2015
S$
S$
S$
S$
Cash at bank and in hand
4,841,195
2,868,016
2,941,534
1,988,300
Fixed deposits
2,054,933
1,875,541
2,046,014
1,866,622
6,896,128
4,743,557
4,987,548
3,854,922
Fixed deposits have an average maturity of 6 to 12 months (2015: 5 to 8 months) from the end of the financial year, which can be withdrawn on demand, with the weighted average effective interest rates of 0.895% (2015: 0.647%) and 0.895% (2015: 0.647%) for the Group and the Company respectively.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
10
T R A D E A N D O T H E R PAYA B LE S Group
Trade payables
Company
2016
2015
2016
2015
S$
S$
S$
S$
69,484
138,438
41,396
43,376
Amount due to PPIS - trade (Note 28)
–
1,320,591
–
–
Amount due to PPIS - non-trade (Note 28)
–
413,452
–
–
Amounts due to subsidiaries – non-trade
–
–
2,302,962
3,207,218
1,581,202
1,387,708
416,956
412,900
24,504
13,172
24,504
13,172
557,768
472,799
413,478
366,032
1,595,087
424,614
1,536,783
376,404
Accrued operating expenses Other payables Deposits received Deferred income GST payables
145,401
100,726
–
–
3,973,446
4,271,500
4,736,079
4,419,102
70,223
69,545
70,223
69,545
323,486
327,309
323,486
327,309
(6,843)
(6,971)
(6,843)
(6,971)
Amount due to Madrasah Aljunied * Balance at beginning of year Add: Receipts during the year Less:
Administrative expenses Management fees Disbursement during the year
Balance at end of year
(37,997)
(38,441)
(37,997)
(38,441)
(279,091)
(281,219)
(279,091)
(281,219)
(445)
678
(445)
678
69,778
70,223
69,778
70,223
9,204
18,588
9,204
18,588
18,718
19,133
18,718
19,133
(278)
(289)
(278)
(289)
Amount due to Abdul Gafoor Mosque ** Balance at beginning of year Add: Receipts during the year Less:
Administrative expenses Management fees Disbursement during the year
(369)
(377)
(369)
(377)
(18,331)
(27,851)
(18,331)
(27,851)
(260)
(9,384)
(260)
(9,384)
8,944
9,204
8,944
9,204
200
5,678
200
5,678
Add: Receipts during the year
–
70,010
–
70,010
Less:
–
(1,000)
–
(1,000)
(200)
(74,488)
(200)
(74,488)
(200)
(5,478)
(200)
(5,478)
–
200
–
200
4,052,168
4,351,127
4,814,801
4,498,729
Balance at end of year Amount due to Kimse Yokmu (ASRIT project)*** Balance at beginning of year Administrative expenses Disbursement during the year Balance at end of year
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
76
Trade payables are non-interest bearing. Trade and other payables are normally settled on 30 to 60 days’ terms. Amounts due to subsidiaries are unsecured, non-interest bearing and are repayable on demand. Included in accrued operating expenses is accrual for bonus amounting to S$1,038,709 (2015: S$839,067) and S$228,528 (2015: S$221,940) for the Group and Company respectively. *
The Company provides the Madrasah Aljunied Al-Islamiah (“MAJ”), a committee constituted and authorised by Majlis Ugama Islam Singapura (“the Majlis”), with management assistance to raise funds for the Madrasah Aljunied Education and Adminstration Fund.
**
The Company provides the Abdul Gafoor Mosque Management Board (“AGMB”), a committee constituted and authorised by the Majlis, with management assistance to raise funds for Abdul Gafoor Mosque.
*** The Company raised funds for the Syrian refugees aided by Kim Se Yokmu, a registered Aid Agency in Turkey. The amounts received during the year represents only those that are collected by the Company. The carrying amounts of trade and other payables approximate their fair values and are denominated in Singapore Dollar. 11
D EF ERRE D TA X AT I O N Group
Balance at beginning of the year Charged to statement of comprehensive income (Note 20) Balance at end of the year
2016
2015
S$
S$
122,305
105,448
26,336
16,857
148,641
122,305
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
12
O BL I GAT I ON UN D E R FI N A N C E LE A SE The Group and the Company has obligations under finance lease for certain items of property, plant and equipment. These leases have terms of renewal but no purchase options and escalation clauses. Renewals are at the option of the specific entity that holds the lease. Future minimum lease payments under finance lease together with the present value of the net minimum lease payments are as follows:
Group and Company 2016
Within 1 year After 1 year but within 5 years Total minimum lease payments Less: Finance Charges Present value of minimum lease payments
a.
2016
2015
2015
S$
S$
S$
S$
Minimum lease
Present value of
Minimum lease
Present value of
payments
payments
payments
payments
7,333
6,985
33,165
31,263
–
–
7,333
6,985
7,333
6,985
40,498
38,248
(348)
–
(2,250)
–
6,985
6,985
38,248
38,248
The average lease term is 3 years. For the year ended 30 June 2016, the average effective borrowing rate was 4.84% (2015: 4.90%) per annum. Interest rate is fixed at the contract date, and thus exposes the Group and the Company to fair value interest rate risk. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
b.
The carrying amounts of the Group and the Company’s lease obligations approximate their fair values and are denominated in Singapore Dollar.
c.
The Group and the Company’s obligations under finance leases are secured by the lessee’s title to the leased assets.
ASSOCIATION
13
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
78
P ROP ERTY R E VA LUAT I O N R E SE RV E Group and Company
At beginning of year Revaluation gain At end of year
14
2016
2015
S$
S$
5,498,034
5,498,034
714,285
–
6,212,319
5,498,034
RES T RI CT E D FUN D S a.
Fund movement
Group and Company Dedicated Centre for Marriages &
Ready For School
Divorces (DDC) *
Fund **
Operation Grant
Donations
Total
S$
S$
S$
6,159
284,457
290,616
Incoming resources
322,725
323,197
645,922
Transfer from Unrestricted Fund
308,115
114,863
422,978
(604,816)
(382,867)
(987,683)
32,183
339,650
371,833
2016 Balance at beginning of the year
Expenditure Balance at end of the year 2015 Balance at beginning of the year Incoming resources Transfer from Unrestricted Fund Expenditure Balance at end of the year
3,327
43,977
47,304
275,407
445,676
721,083
284,409
96,929
381,338
(556,984)
(302,125)
(859,109)
6,159
284,457
290,616
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
b.
Description *
The restricted fund is for the Dedicated Centre for Marriages & Divorces (“DDC”), also known as Inspirasi@AMP, which has been set up as an intervention centre for marriages and divorces involving Muslim minors. The Centre is funded by the Ministry of Social and Family Development (“MSF”).
**
The Company’s Ready for School Fund was established as a restricted fund in July 2007. The income sources of the Fund are public donations and projects specifically in aid of the Fund. The purpose of the Fund is to aid disadvantaged school-going children of all races in essential school expenditures including school and tuition fee subsidies, enrichment programmes subsidies, transportation expense and other financial assistance.
15
R E VENU E Group
Donations *
Company
2016
2015
2016
2015
S$
S$
S$
S$
2,868,266
2,350,045
2,868,266
2,350,045
Government matching grant **
800,000
950,000
800,000
950,000
MBMF grant
696,654
665,601
696,654
665,601
Other grants ***
1,313,101
601,483
1,313,101
601,483
Childcare centre fees and subsidies
3,954,053
2,917,072
3,722,350
2,917,072
Management fees - PPIS (Note 28)
1,150,383
4,465,438
–
–
750,341
762,772
–
–
Pre-school centre fees Tuition and enrichment service centres Student care fees and subsidies Research income Training and education projects Social action programmes
–
925,786
–
–
4,502,010
2,768,638
3,458,263
2,768,638
319
143
–
–
63,299
59,919
63,299
59,919
736,596
720,259
736,596
720,259
16,835,022
17,187,156
13,658,529
11,033,017
*
Included in donations is zakat contribution amounting to S$1,039,189 (2015: S$961,761).
**
The government matching grant is capped at S$800,000 (2015: S$800,000). Included in government matching grant is the Company’s share of a government matching grant for community self-help organisations of S$800,000 (2015: S$950,000) which relates to the donations received during the year ended 30 June 2016.
*** Other grants in 2016 include grants received from Care & Share.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
80
EX P END I T UR E
16
Group
Social action programme – (Al-Hijrah) Fund raising projects Contributions for community projects Research
Company
2016
2015
2016
2015
S$
S$
S$
S$
1,742,488
1,715,206
1,801,778
1,758,078
310,647
331,533
310,647
331,533
37,029
57,648
37,029
57,648
245,611
143,015
298,406
115,000
Pre-school centres
690,432
637,970
–
–
Childcare centres
2,626,012
2,206,721
–
–
Student care centres
4,136,445
3,314,931
–
–
220,022
186,584
220,022
186,584
Adult education and training Tuition and enrichment centres
–
35,374
–
–
Corporate services *
648,435
243,344
648,435
217,094
Management information systems
296,431
262,583
296,431
262,583
–
–
6,730,382
5,685,845
Management fees (Note 23) Partner Operator Scheme (POP) grant (Note 23)
–
–
450,230
–
Cost of services – PPIS (Note 28)
991,317
3,605,513
–
–
Human resource/volunteer management
364,786
289,729
364,786
289,729
4,437,110
4,094,341
2,289,174
2,087,221
–
–
9,415
94,494
16,746,765
17,124,492
13,456,735
11,085,809
General administrative expenditure and overheads Impairment loss of subsidiary receivables **
The above expenditure includes the following: Group
Depreciation Loss on disposal of property, plant and equipment Staff costs (Note 18)
Company
2016
2015
2016
2015
S$
S$
S$
S$
1,109,020
977,598
1,013,858
876,165
–
–
–
262
9,413,790
7,931,467
2,708,296
2,449,871
300,000
–
–
–
40,300
35,000
–
–
Donation to Singapore Management University (SMU) *** Zakat
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
16
EXP EN D I T U RE *
– cont’d
The amount includes S$328,850 used on Debt Advisory Centre (“DAC”) Awareness Television Series (Buku 555) and AMP-BH coffee table book.
**
The impairment loss of subsidiary receivables for the year is in respect of the RIMA (Note 7).
*** This is a one-time donation towards MERCU-SMU Excellence Scholarship for Malay-Muslim undergraduates. The scholarship disbursement is managed by SMU. 17
OT HER I N C OM E Group
Corporate service fees (Note 23) Government grants * Rental income (Note 23) Internal audit (Note 23) Miscellaneous income
*
Company
2016
2015
2016
2015
S$
S$
S$
S$
–
–
22,000
25,500
561,104
354,244
–
–
–
–
247,324
198,418
–
–
–
18,750
18,643
48,373
20,675
16,003
579,747
402,617
289,999
258,671
Government grants of the Group include wage credit scheme amounting to S$407,261 (2015: S$289,677).
ASSOCIATION
18
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
82
S TA F F C O ST S Group 2016
Company 2015
2016
2015
S$
S$
S$
S$
Staff salaries and related costs
8,264,772
6,967,032
2,343,348
2,125,292
Defined contribution pension costs
1,149,018
964,435
364,948
324,579
9,413,790
7,931,467
2,708,296
2,449,871
1,202,617
1,158,118
1,030,320
993,569
Included in staff costs are remunerations of key management
The number of key management personnel whose remuneration is within the S$100,001 to S$150,000 band is two (2015: two). Key management personnel comprise the Executive Director and the direct reporting senior officers. 19
F I NA N C I A L E X PE N SE S Group
Bank charges Finance lease interest
Company
2016
2015
2016
2015
S$
S$
S$
S$
18,173
13,170
6,935
4,542
1,904
2,956
1,904
2,956
20,077
16,126
8,839
7,498
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
20
TA X AT I ON Company The Company is an approved charity under the Charities Act, Cap. 37 and has been accorded the status of an Institution of a Public Character (IPC) for the period from 10 October 2014 to 9 October 2018. All registered and exempt charities will enjoy automatic income tax exemption and do not need to file income tax returns effective from the Year of Assessment 2009. Group Major components of income tax expense are as follows: Group
Current year taxation Deferred taxation (Note 11)
2016
2015
S$
S$
–
–
(26,336)
(16,857)
(26,336)
(16,857)
A reconciliation between the tax expense and the product of accounting result multiplied by the applicable tax rate are as follows: Group 2016
2015
S$
S$
Profit before taxation
664,909
461,263
Tax expense on profit before tax at 17%
113,035
78,415
67,773
17,244
Tax effect of expenses not deductible for tax purposes Tax effect of income not deductible for tax purposes Utilisation of capital allowance Unutilised of tax losses
(1,777)
(7,292)
(94,241)
(53,383)
1,801
16,864
Deferred taxation
(26,336)
(16,857)
Tax exemption
(86,591)
(51,848)
Tax expense
(26,336)
(16,857)
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
84
Unrecognised deferred tax assets The subsidiaries’ deferred tax assets in respect of the following items have not been recognised in the financial statements as the probability of future taxable profits being available to utilise such benefits cannot be reliably established: Group
Unutilised tax losses
2016
2015
S$
S$
275,526
211,969
The Group’s unutilised capital allowances and tax losses are available for offset against future taxable profits subject to the agreement of the tax authorities and compliance with certain provisions of the Singapore Income Tax Act, Cap.134. 21
TA X -EX E M PT R E C E I PT S The Company enjoys a concessionary tax treatment whereby qualifying donors are granted double tax deduction for the donations made to the Company. The Company is an approved charity under the Charities Act, Cap. 37 and has been accorded the status of an Institution of a Public Character (IPC) for the period from 10 October 2014 to 9 October 2018. Qualifying donors are granted 2.5 times tax deduction for the donations made to the Company. In conjunction with SG50, the Government has decided to increase the tax deduction for qualifying donations from 2.5 to 3.0 times of the amount of donation made in 2015. The 3.0 times deduction for donations made from 1 January 2015 to 31 December 2015 (both dates inclusive) will be allowed to all existing qualifying donors (i.e. individuals, companies, trusts, bodies of persons, Hindu joint family). During the financial year, the Company issued tax-exempt receipts for donations collected amounting to S$1,406,042 (2015: S$1,100,021).
22
OP ERAT I N G LE A SE C O M M I T ME NTS Rental expenses (principally for office premises and office equipment) for the Group for the year ended 30 June 2016 were S$842,723 (2015: S$701,541). Most leases contain renewable options. Lease terms do not contain restrictions on the Group’s activities concerning dividends, additional debts or further leasing. The leases have varying terms and renewal rights and their lease terms are between 2 and 5 years.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
22
O P ERAT I N G L E A SE C O M M I T ME N T S
– cont’d
Future minimum rental under non-cancellable leases are as follows as at 30 June: Group
Company
2016
2015
2016
2015
S$
S$
S$
S$
Within 1 year
436,587
241,537
246,834
227,809
After 1 year but within 5 years
232,908
58,397
14,346
25,380
669,495
299,934
261,180
253,189
Payable:
23
S IGNI F I C A NT R E LAT E D PA R T Y T R A N SACTION S A related party includes the trustees/office bearers (that is, directors) and key management of the Company. It also includes an entity or person that directly or indirectly controls, is controlled by, or is under common or joint control with these persons. It also includes members of the key management personnel or close members of the family of any individual referred to herein and others who have the ability to control, jointly control or significantly influence by or for which significant voting power in such entity resides with, directly or indirectly, any such individual. Key management personnel include the Executive Director and key executives. It is not the normal practice for the trustees/office bearers, or people connected with them, to receive remuneration, or other benefits, from the Company for which they are responsible, or from institutions connected with the Company except that the Executive Director and the direct reporting senior officers have employment relationships with the Company and its subsidiaries and have received remuneration in these capacities. All board members, chairman of sub-committees and staff members of the Company are required to read and understand the conflict of interest policy in place and make full disclosure of interests, relationships and holdings that could potentially result in conflict of interests. When a conflict of interest situation arises, the members or staff shall abstain from participating in the discussion, decision making and voting on the matters.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
86
Except for the significant related parties transactions on terms agreed between the Company and its related parties as disclosed below, there are no other transaction and arrangements between the Company and related parties: Company 2016
2015
S$
S$
22,000
25,500
247,324
198,418
–
18,750
Income Corporate service fees from subsidiaries (Note 17) Rental income from a subsidiary (Note 17) Internal audit (Note 17) Expenses Fee subsidies Management fees to a subsidiary (Note 16)*
59,290
41,542
6,730,382
5,685,845
Grant charged by subsidiary – POP (Note 16)*
450,230
-
Research fees to a subsidiary
298,406
115,000
-
1,331
131,873
116,446
Innovation grant Share of expenses
Balance with related parties at the statement of financial position date are set out in Notes 7 and 10. Compensation to key management personnel are disclosed in Note 18. The Company’s directors (excluding the Executive Director) were not paid any remuneration or given any benefits during the financial period. There were no loans given to employees, committee members or any other third parties during the financial period. *
Management fees to Mercu Learning Point Pte Ltd (“Mercu”) relates to the running of the childcare and student care centres. The child care has obtained the Early Childhood Development Agency (“ECDA”) Partner Operator (“POP”) scheme. The POP scheme supports child care operators to keep fees affordable, build capabilities to raise quality, and improve career prospects for early childhood professionals. The scheme commenced in 2016.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
24
C ON T I N GENT LI A B I LI T I E S ( UN SE C UR E D) During the year, the Company has given an undertaking to one of its subsidiaries to provide the necessary financial support in order to enable the subsidiary to continue as a going concern. As at the end of the financial year, the subsidiary has a capital deficit of S$1,439,027 (2015: S$1,436,272).
25
FUN D RA I S I N G A N D SPO N SO R SH I P E XPE N S E S The Company’s total fund raising and sponsorship expenses was S$310,647 (2015: S$331,533) which is less than 30% of the total gross receipts from fund raising and sponsorships of S$2,868,266 (2015: S$2,350,045) raised during the year. During the year, the total fund raising and sponsorship expenses include all expenses classified under fund raising projects, while the total gross receipts from fund raising and sponsorships include all donations received.
26
FINA N C I A L I N ST R UM E N T S Categories of Financial Instruments The carrying amounts presented in the statement of financial position relate to the following categories of financial assets and financial liabilities: Group
Company
2016
2015
2016
2015
S$
S$
S$
S$
Trade and other receivables
2,129,193
3,236,792
3,326,685
2,953,581
Cash and cash equivalents
6,896,128
4,743,557
4,987,548
3,854,922
9,025,321
7,980,349
8,314,233
6,808,503
Financial assets Loans and receivables:
Financial liabilities Financial liabilities measured at amortised cost: Obligations under finance leases Trade and other payables
6,985
38,248
6,985
38,248
2,457,081
3,926,513
3,278,018
4,122,325
2,464,066
3,964,761
3,285,003
4,160,573
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
88
Financial Risk Management Objectives and Policies The main risks arising from the Group’s financial instruments are credit risk, foreign currency, and interest rate risk and liquidity risk. The management reviews and agrees policies for managing this risk and the policies of managing each of these risks are summarised below: Credit Risk Credit risk refers to the risk that counter parties may default on their contractual obligations resulting in a financial loss to the Group. The Group’s customer portfolio is diversified and there is no reliance on any customer. These exposures are monitored and provision for potential credit losses is adjusted when necessary. The aggregate amount of its trade and other receivables and bank balance represents the Group maximum exposure to credit risk. Cash and bank balances are placed with reputable local financial institutions. Therefore, credit risk arises mainly from the inability of the Group's customers to make payments when due. The amounts presented in the statement of financial position are net of allowances for impairment of trade receivables, estimated by management based on prior experience and the current economic environment. The Group monitors its credit collection regularly as a means of managing credit risk. Information regarding financial assets that are either past due or impaired is disclosed in Note 7 (Trade and other receivables). Foreign Currency Risk Foreign exchange risk arises from change in foreign exchange rates that may have an adverse effect on the Group in the current reporting period and in the future years. The Group’s exposure to foreign currency risk is minimal as all transactions are dealt with in local currency. Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
The tables below set out the Group’s exposure to interest rate risks. Included in the tables are the assets and liabilities at carrying amounts, categorised by the earlier of contractual repricing or maturity dates. Group Variable rates
Fixed rates
Less than 1 year
Less than 1 year
2 to 5 years
Total
S$
S$
S$
S$
Cash and cash equivalents
–
2,046,014
8,919
2,054,933
Obligation under finance lease
–
(6,985)
–
(6,985)
–
2,039,029
8,919
2,047,948
Cash and cash equivalents
–
1,875,541
–
1,875,541
Obligation under finance lease
–
(31,263)
(6,985)
(38,248)
–
1,844,278
(6,985)
1,837,293
2016 Assets
2015 Assets
Company Variable rates
Fixed rates
Less than 1 year
Less than 1 year
2 to 5 years
Total
S$
S$
S$
S$
Cash and cash equivalents
–
2,046,014
–
2,046,014
Obligation under finance lease
–
(6,985)
–
(6,985)
–
2,039,029
–
2,039,029
Cash and cash equivalents
–
1,866,622
–
1,866,622
Obligation under finance lease
–
(31,263)
(6,985)
(38,248)
–
1,835,359
(6,985)
1,828,374
2016 Assets
2015 Assets
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
90
Sensitivity analysis An increase or decrease in 100 basis point (“bp”) (1%) in interest rate at the reporting date would have no significant effect on equity and profit or loss (before tax). This analysis assumes that all other variables, in particular foreign currency rates, remain constant. Statement of Comprehensive Income Group
Company
S$
S$
20,549
20,460
(70)
(70)
20,479
20,390
18,755
18,666
(382)
(382)
18,373
18,284
2016 Cash and cash equivalents Obligation under finance leases 2015 Cash and cash equivalents Obligation under finance leases
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
Liquidity Risk Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. To manage liquidity risk, the Group monitors its net operating cash flow and maintains an adequate level of cash and cash equivalent. The table below summarises the maturity profile of the Group’s financial assets and liabilities at the end of the reporting period based on contractual undiscounted repayment obligations. Group Within 2 to 5
More than
Within 1 year
years
5 years
Total
S$
S$
S$
S$
2016 Financial assets Trade and other receivables
2,129,193
–
–
2,129,193
Cash and cash equivalents
6,887,209
8,919
–
6,896,128
Total undiscounted financial assets
9,016,402
8,919
–
9,025,321
6,985
–
–
6,985
Trade and other payables
2,457,081
–
–
2,457,081
Total undiscounted financial liabilities
2,464,066
–
–
2,464,066
Total net undiscounted financial assets
6,552,336
8,919
–
6,561,255
Trade and other receivables
3,236,792
–
–
3,236,792
Cash and cash equivalents
4,743,557
–
–
4,743,557
Total undiscounted financial assets
7,980,349
–
–
7,980,349
31,263
Financial liabilities Obligation under finance leases
2015 Financial assets
Financial liabilities Obligation under finance leases
6,985
–
38,248
Trade and other payables
3,926,513
–
–
3,926,513
Total undiscounted financial liabilities
3,957,776
6,985
–
3,964,761
4,022,573
(6,985)
–
4,015,588
Total net undiscounted financial assets/(liabilities)
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
92
Company Within 2 to 5
More than
Within 1 year
years
5 years
Total
S$
S$
S$
S$
Trade and other receivables
3,326,685
–
–
3,326,685
Cash and cash equivalents
4,987,548
–
–
4,987,548
Total undiscounted financial assets
8,314,233
–
–
8,314,233
6,985
–
–
6,985
Trade and other payables
3,278,018
–
–
3,278,018
Total undiscounted financial liabilities
3,285,003
–
–
3,285,003
Total net undiscounted financial assets
5,029,230
–
–
5,029,230
Trade and other receivables
2,953,581
–
–
2,953,581
Cash and cash equivalents
3,854,922
–
–
3,854,922
Total undiscounted financial assets
6,808,503
–
–
6,808,503
2016 Financial assets
Financial liabilities Obligation under finance leases
2015 Financial assets
Financial liabilities Obligation under finance leases
31,263
6,985
–
38,248
Trade and other payables
4,122,325
–
–
4,122,325
Total undiscounted financial liabilities
4,153,588
6,985
–
4,160,573
2,654,915
(6,985)
–
2,647,930
Total net undiscounted financial assets/(liabilities) Fair Value of Financial Instruments
As at the end of the financial year, the Group has no financial assets or financial liabilities that are carried at fair value measurements. The carrying amounts of financial assets and financial liabilities of the Group recorded at amortised cost in the financial statements approximate their fair values due to their short term nature.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
27
C A P I TA L M A N A G E M E N T The objectives of the Group and the Company when managing its funds are to safeguard and to maintain adequate working capital to continue as going concern and to develop its principle activities over the longer term. No changes were made in the objectives, policies or processes during the years ended 30 June 2015 and 30 June 2016. General Reserve Policy Policy Statement The primary objective of this policy is to promote transparency on management with regard to its reserves and to assure stakeholders that the Company’s financial reserve is well managed and has, where appropriate, a strategy for building up the reserves. The policy applies to net assets not earmarked for restricted usage. The Group will continue to be guided by prudent financial policies of which gearing is an important aspect. The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as borrowings plus trade and other payables less cash and cash equivalents. Total capital is calculated as equity plus net debt. Group
Company
2016
2015
2016
2015
S$
S$
S$
S$
–
–
–
682,055
Total equity
13,793,800
12,388,270
12,124,013
10,909,792
Total capital
13,793,800
12,388,270
12,124,013
11,591,847
–
–
–
0.06
Net debts
Gearing ratio
The Group and the Company do not have any externally imposed capital requirements for the financial year ended 30 June 2015 and 30 June 2016.
ASSOCIATION
OF
MUSLIM
PROFESSIONALS
|
ANNUAL
REPORT
2016:
FINANCIAL
STATEMENTS
94
General Reserves The Company will build up and maintain a reserve that will be no less than 1 year and not more than 5 years of the annual operating expenditure. The reserves will be reviewed by the Finance and Investment Committee at least annually to see if the current arrangement provides adequate cover to meet the needs of the Company’s operating expenditure during difficult financial times. The preparation of the annual budget should be with the intent of building up the general reserve to the desired level. The general reserve funds may be invested in accordance with the Investment Policy Framework adopted by the Finance and Investment Committee. Surplus assets In accordance with the Memorandum of Association, if on the winding-up or dissolution of the Company, or in the event of the Company ceasing to be a registered charity under the Charities Act there remains, after the satisfaction of all its debts and liabilities any property whatsoever, the same shall not be paid to or distributed among the members of the Company, but shall be given or transferred to some other charitable institution or institutions of a public character in Singapore which are registered under the Charities Act, (Cap. 37). 28
C OM M I T ME N T S During the financial year ended 30 June 2014, Mercu entered into an agreement with Persatuan Pemudi Islam Singapura (“PPIS”), whereby Mercu will manage all of PPIS’s child development centres with effect from 1 October 2013 for a period of 2 years. Under the terms of the agreement, all income and expenses related to the operations of the centres will be borne by Mercu. These include the finance operations, human resource, business and curriculum management.
NOTES TO THE FINANCIAL STATEMENTS – 30 JUNE 2016
PPIS is entitled to a share of the profit as follows: i.
30% of annual net profit before the indirect cost of the child development centres if the annual net profit is below S$380,000.
ii.
50% of annual net profit before the indirect cost of the child development centres if the annual net profit is at or above S$380,000.
PPIS is not liable to bear or share any losses of the child development centres. This agreement ended on 1 October 2015. PPIS’s child development centres revenue, expenses and its corresponding share of profit as at 30 June are as follows:
2016
2015
S$
S$
1,150,383
4,465,438
(1,106,000)
(4,192,013)
35,150
114,840
Revenue (Note 15) Cost of sales (Note 16) Indirect cost (Note 16) Share of profit due to PPIS (Note 16)
79,533
471,659
159,066
859,924
Company
79,533
388,265
PPIS
79,533
471,659
159,066
859,924
Profit Profit apportionment:
Balances with PPIS at the statement of financial position date are set out in Notes 7 and 10.
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