JurongHealth Fund Annual Report
Financial Year Ended 31st March 2015
C o n te n t Chairman’s
Message
2
Our Goals
3
About Us
4
Board of D
irectors
Corporate
5
Governanc
Programm
e
6
es and Init
iatives
Helping Ne
Improving Supporting
Healthcare
ts
Communit
y Care
Funding P
ilot Projects
Profession
als in Educ
Supporting
Donations
7
edy Patien
Research
and Fund
FY2014 Fin
ation
Raising
ancial High
Financial S
lights
tatements
12 13 14
Chairman’s
Message
JurongHealth Fund was established in August 2011 as the charitable arm of Jurong Health Services Pte. Ltd. (JurongHealth), with the objective of promoting all medical and health-related services that are exclusively charitable and for the benefit of the Singapore community. Over the past three years, donated funds have been distributed to the five core areas of focus, namely: Community Care, Needy Patients, Education, Pilot Projects and Research. Our donations come from the family of the late Mr. Ng Teng Fong and from SMRT Corporation Limited. In FY2014, JurongHealth Fund approved $3.2 million in grants to fund programmes initiated by JurongHealth. These programmes encourage residents in the community to stay healthy, promote innovation and advancements in healthcare, and alleviate the financial burden of needy patients. We have provided funding to eight new programmes in the year 2014. This brings the total number of programmes funded to 11. Our Needy Patient programmes funding have benefited more than 300 patients from Alexandra Hospital (AH) and Jurong Medical Centre during the year, with the bulk of such funds used to subsidise the costs of medical devices or to offset dialysis fees. Two new research initiatives also received grant funding.
Presently we have over $100 million in general and earmarked funds. With this, JurongHealth Fund is well positioned to support JurongHealth and its Regional Health System in the enhancement of community and patient care in the coming years. As JurongHealth Fund moves into a new financial year, we would like to extend our deep appreciation to all donors and partners for their generous support and contributions. I also would like to extend my gratitude to my fellow board members for their support and guidance, and to management and staff, for their commitment and effort to enable us to continue serving the community by funding the appropriate programmes.
Mr Haider M. Sithawalla Chairman
To bring care to patients and residents in the community, funding was provided to launch two new Integrated Care Programmes targeted at diabetes and hip fracture patients, to ensure that they receive the required follow up care in the community after their discharge. These programmes are led by doctors from AH. Through proper management of post discharge care, more than 700 patients have benefited as they were able to continue their recovery in the community. Also to ensure continued efforts in promoting innovation and advancement in healthcare, $7.3 million funding was approved to build a new Simulation and Clinical Education Centre in the new premises at Ng Teng Fong General Hospital to provide training for their healthcare professionals. Two pilot projects, targeted at the western region of Singapore, were started to promote healthy living among residents and to improve the health of employees in companies. JurongHealth is also able to start a Community Arts for Health Programme in their new hospitals as we have provided funding to tap on the potential of therapeutic art for accelerating patient recovery.
2
1
Needy Patients
To support those who are in need of financial assistance and who require healthcare
2
Community Care
To support outreach programmes and care integration initiatives
Our
Goals
JurongHealth Fund (JHF), in partnership with JurongHealth, awards grants to fund programmes towards 5 strategic objectives:
4 5 3
Research
To support community care and bedside clinical research
3
Education
To further medical, nursing, paramedical and other healthcare-related education and training for healthcare workers.
Pilot Projects
To test new and improved ways of providing patient and community care; and improving safety and quality of care
About
Us
JurongHealth Fund was established in August 2011 as a non-profit organisation, whose objective is to promote all medical and health-related services that are exclusively charitable and for the benefit of the Singapore community. It is registered as a charity under the Charities Act and is an approved Institution of Public Character (IPC).
4
Board of
Directors
JurongHealth Fund is governed by a Board of Directors that comprises experienced practitioners from the public and private sectors. They are truly passionate about transforming healthcare delivery. Management and staff of JurongHealth Fund look to the Board for guidance for and approval of strategic plans to support various programmes that are aligned to JurongHealth Fund’s priorities.
Mr Chua Song Khim Board Member
Mr Foo Hee Jug Board Member AC Member
Mr Deric Liang Shih Tyh Board Member
Mr Haider M. Sithawalla Chairman
Mr Lim Joo Boon
A/Prof Lim Swee Hia
Mr Ng Tiak Soon
Emeritus Professor Robert Pho
Board Member
Board Member Audit Committee Chairman
Mrs Arfat Selvam Board Member
5
Board Member
Board Member AC Member
Mr Timothy Teo Lai Wah Board Member
Corporate
Governance
The Board of Directors and Management of JurongHealth Fund are committed to maintaining standards of governance that are aligned to the Code of Governance for Charities and Institutions of Public Character (IPC). JurongHealth Fund has incorporated policies and procedures to ensure that the requirements for Institutions of Public Character (IPCs) are met. JurongHealth Fund is confident that its governance framework is sufficient to ensure its practices comply with the regulations stated in the Charities Act. The Board reviews policies and procedures regularly to ensure that they remain relevant, effective and facilitate the preservation of the trust and confidence of our beneficiaries, donors and stakeholders. The Grant Making policy, together with the Conflict of Interest policy, were recently reviewed and approved by the Board in March 2015 to provide greater clarity on the grant making process; assure stricter control on the granting and usage of awarded funds, and ensure JurongHealth Fund Board and staff act in the best interests of the organisation. Reserves Policy Reserves are maintained to fund current and committed obligations to meet the goals and mission of the organisation. Funds designated for grants are included in the reserves.
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1
& Initiatives
Programmes
Helping Needy Patients
One of the priority areas under JurongHealth Fund is to alleviate the financial burden of patients who are in need of financial assistance and who require healthcare services. Such patients often require assistance in areas such as purchasing of medical devices, offsetting dialysis fees and taxi transfer services from their homes to clinic appointments. Donated funds under this category are channeled towards providing such patients with appropriate financial support when they seek care from Alexandra Hospital, Jurong Medical Centre or Lakeside Family Medicine Clinic. JurongHealth Fund is currently providing funding support to three programmes under this priority area: Needy Patient Fund, SMRT Gift of Mobility Programme and H.E.A.L.T.H.š Programme. These programmes are targeted at assisting and empowering needy and elderly patients and their families so that they can better manage their health conditions, alleviate the stress of care and plan for their future needs. Grants for the Needy Patient Fund and Gift of Mobility Programme are renewed at the start of each financial year, while the H.E.A.L.T.H Programme was awarded a three-year grant in FY2012. In FY2014, these programmes were granted a total of $139,000. By the end of FY2014, $110,000 was utilised and 183 patients benefited from these programmes. 1
H.E.A.L.T.H stands for Head, Existential, Asset, Lifestyle, Therapeutics and Heart.
Key highlights of FY14: The Needy Patient Fund has provided $51,900 in aid for needy patients in FY14. More than $35,000 was used to purchase medical devices that aid in patient recovery, or to offset dialysis fees for patients who are receiving treatment at private dialysis centres, while waiting for placement in centres run by National Kidney Foundation.
Needy Patient Fund
H.E.A.L.T.H Programme
Fund Granted in FY2014
$139,000 SMRT Gift of Mobility Programme
The SMRT Gift of Mobility Programme has provided six needy patients with two-way taxi services from their homes to their clinic appointments to relieve their transport expenses.
7
54 elderly patients benefited from an in-depth, holistic assessment on their physical, emotional and financial status through the H.E.A.L.T.H programme. 13 of them were subsequently selected to attend Advance Care Planning to help them plan for their future health and personal care needs. Staff members from four of JurongHealth’s partner eldercare agencies also received training on the use of the assessment tool and follow-up assessments, so that they can carry on this initiative independently within their own constituencies.
1
Improving Community Care
2
Outreach programmes and standardising care protocols within different care settings form the key components of Community Care. JurongHealth Fund is proud to provide sponsorship to four different initiatives that are targeted at improving the quality and safety of healthcare services in the west of Singapore and benefiting the community at large. A total of $4.57 million in grant funding has been awarded to these programmes under Community Care. These programmes are generally multi-year projects that can stretch to 2017. To date, close to $98,000 has been utilised and more than 750 patients have benefited from these programmes.
Key highlights of FY14:
The Diabetes Integrated Care Pathway (Diabetes ICP) and Hip Fracture Integrated Care Pathway (Hip Fracture ICP) programmes were launched in FY2014, and were given a three-year grant each. These programmes offer a patient-centered, team-based model of care. Through this, JurongHealth hopes to provide high level of care coordination between hospitals and GP partners, while ensuring the safety of patients and allowing them to recover in the community or home. More than 750 diabetes and hip fracture patients have been placed under the respective programmes. Patients under these ICPs receive prompt post discharge follow up from case managers and are also given education on managing their conditions appropriately so that they can recover and stay well in the community.
“The Garden”, a community art project that was awarded a three-year grant in FY2014, commenced in January 2015 as part of the Community Arts and Health Programme. The project aims to involve more than 500 students from four schools in the Southwest district, through 120 hours of workshops to create paper flower sculptures that will form up to 30 pieces of permanent artworks for Ng Teng Fong General Hospital (NTFGH). As at the end of FY2014, more than 50 hours of workshops were conducted.
A two-year $1 million grant was also issued by JurongHealth Fund in FY 2014 to enable JurongHealth to set up a Regional Health System (RHS) Project Seed Fund that supports conceptualisation and design of programmes and projects which are aligned to JurongHealth’s vision and mission. The Seed Fund provides funding to the following three programmes that will be implemented in the second half of FY2015: Frequent Admitters Management Programme, Community Health Screening and Breast Cancer Screening.
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3
Supporting Healthcare Professionals in Education
Continuous training for doctors, nurses and allied health professionals is of utmost importance to ensure quality care for our patients. JurongHealth Fund supports the training of healthcare professionals, and the improvement of pedagogy and standards, so that these healthcare professionals can constantly upgrade themselves to ensure provision of safe, quality care to patients.
Key highlights of FY14:
JurongHealth Simulation and Clinical Education Centre (JSCEC) set up in the new NTFGH provides simulation-based training and life support training for our healthcare professionals. Through the efforts of JSCEC, JurongHealth staff can keep themselves abreast of the latest developments in healthcare. This assures their patients and their next of kin that they will always receive safe, quality care. Thanks to a five-year, $7.3 million grant awarded by JurongHealth Fund in FY2013, this new training facility utilises simulation technology to facilitate staff training on equipment used in NTFGH. JSCEC introduced five new training initiatives in early 2015 focusing on areas such as surgery and respiratory support. A further two training programmes were implemented in the middle of 2015. Nearly 900 JurongHealth staff were trained in the first quarter of 2015.
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4
Funding Pilot Projects
The success of pilot projects plays a pivotal role in transforming healthcare in the community, as well as improving the quality and safety of patient care. JurongHealth Fund has granted $539,500 in FY2014 to support initiatives that focus on promoting healthy living among residents, as well as providing a novel way to facilitate patient rehabilitation and recovery. More than $142,000 of the disbursed grants have been utilised. A first of its kind Mobility Park is being constructed at Jurong Community Hospital, with the aim of providing patients with outdoor rehabilitation. An MRT train carriage, a bus carriage and a decommissioned taxi would be placed in the park upon its completion. SMRT and the appointed contractors helped in the design and specifications of the MRT and bus carriage to be placed in the mobility park. Fabrication of both the train and bus carriages has started and these would be delivered by end-October 2015.
Key highlights of FY14:
One of the pilot projects known as the Red Apple Programme, aims to promote healthy living among residents in a selected constituency in the West. As part of the two-year programme, survey questionnaires were used to identify new avenues for promoting a healthy lifestyle. Through a collaborative effort with the participating constituency, pictures, posters and other visual cues to encourage healthy eating and weight management would be placed within the community.
“
The Red Apple Programme aims to promote
HEALTHY LIVING among residents
� 10
Supporting Research
5
JurongHealth Fund is committed to funding research activities that can provide insights and findings that can be applied to deliver more effective treatments for patients. These are important for improving the current healthcare system and the provision of better patient care. $100,000 worth of grants, lasting until the end of FY2015, has been distributed by JurongHealth Fund in FY2014 for two research projects targeted at improving patient care and accelerating patient recovery. Both projects have so far utilised a total of $39,495.
Key highlights of FY14: One of the research projects funded by JurongHealth Fund has enabled clinicians to gain new insights on sleep disorders and utilise the knowledge to provide better treatment for patients with such medical conditions. 55 patients have been recruited for the second research project that aims to gain insights about patients’ preferred modes of receiving information regarding surgeries/procedures prior to their surgical encounters. Information would also be sought regarding their approach in making decisions before clinicians or patients agree to undergo surgeries/procedures. Such information would be used by JurongHealth clinicians and hospital policy makers to provide more effective communication to patients and next of kin, and hence deliver better patient-centred care.
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& Fund Raising
Donations
JurongHealth Fund received a total of $25.4 million in donations, of which $25 million came from the family of the late Mr. Ng Teng Fong. An additional donation of $350,000 from Far East Square Pte. Ltd. was received in May 2015 to fund expenses for cochlear implants and other hearing devices for senior needy patients. SMRT Corporation Limited donated $500,000 for the fabrication of a train carriage and a bus carriage that will be placed at the Jurong Community Hospital Mobility Park. A decommissioned taxi donated by SMRT will also be placed in the Mobility Park.
“
We extend ou
THANKS
r
to all donors for their genero sity and support .
�
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FY2014
Financial Highlights
Total Accumulated Funds: Unrestricted Funds:
Restricted Funds:
99.6%
0.4%
0 . 4 m illi o
n
$
10
Total Expenses: Grant Expenses:
95.5%
In FY14, 95.5% of the total expenditure channeled towards grant giving.
$ 0.58 million 13
Operating Expenses:
4.5%
Financial
Statements
14
JurongHealth Fund (A Company limited by guarantee) Registration Number: 201118604G (Registered under the Companies Act, Chapter 50)
Annual Report Year ended 31 March 2015
15
KPMG LLP (Registration No. T08LL1267L), an accounting limited liability partnership registered in Singapore under the Limited Liability Partnership Act (Chapter 163A) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International�), a Swiss entity.
JurongHealth Fund Directors’ report Year ended 31 March 2015
Directors’ report We are pleased to submit this annual report to the members of the Company together with the audited financial statements for the financial year ended 31 March 2015.
Directors The directors in office at the date of this report are as follows: Mr Haider M Sithawalla Mr Chua Song Khim Mr Foo Hee Jug Mr Lim Joo Boon A/Prof Lim Swee Hia Mr Ng Tiak Soon Prof Robert Pho Wan Heng Mrs Arfat Selvam Mr Timothy Teo Lai Wah Mr Deric Liang Shih Tyh
(Appointed on 4 December 2014) (Appointed on 1 May 2015)
Directors’ interests The Company has no share capital and its member’s liability is limited by guarantee. 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 any body corporate. Since the end of the last financial year, no director has received or become entitled to receive, a benefit by reason of a contract made by the Company or a related corporation with the director, or with a firm of which he is a member or with a company in which he has a substantial financial interest.
Share options The Company is limited by guarantee and has no issued share capital.
16
JurongHealth Fund Directors’ report Year ended 31 March 2015
Auditors The auditors, KPMG LLP, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors
Mr Haider M Sithawalla Director
Mr Ng Tiak Soon Director
20 July 2015
17
JurongHealth Fund Statement by Directors Year ended 31 March 2015
Statement by Directors In our opinion, (a) the financial statements set out on pages FS1 to FS15 are drawn up so as to give a true and fair view of the financial position of the Company as at 31 March 2015 and the financial performance, changes in funds and cash flows of the Company for the year ended on that date in accordance with the provisions of the Singapore Companies Act, Chapter 50, the Charities Act, Chapter 37 and Singapore Financial Reporting Standards; and (b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. The Board of Directors has, on the date of this statement, authorised these financial statements for issue.
On behalf of the Board of Directors
Mr Haider M Sithawalla Director
Mr Ng Tiak Soon Director
20 July 2015
18
KPMG LLP 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581
Telephone Fax Internet
+65 6213 3388 +65 6225 0984 www.kpmg.com.sg
Independent auditors’ report Members of the Company JurongHealth Fund Report on the financial statements We have audited the accompanying financial statements of JurongHealth Fund (the Company), which comprise the balance sheet as at 31 March 2015, the statement of comprehensive income, statement of changes in funds and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages FS1 to FS15. 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, Chapter 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. Auditors’ 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 auditors’ 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.
19
KPMG LLP (Registration No. T08LL1267L), an accounting limited liability partnership registered in Singapore under the Limited Liability Partnership Act (Chapter 163A) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
JurongHealth Fund Independent auditors’ report Year ended 31 March 2015
Opinion In our opinion, the financial statements 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 Company as at 31 March 2015 and the financial performance, changes in funds and cash flows of the Company for the year ended on that date. Report on other legal and regulatory requirements In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act. During the course of our audit, nothing has come to our attention that caused us to believe that during the year: (i) the use of donation moneys was not in accordance with the objectives of the Company as required under Regulation 16 of the Charities (Institutions of Public Character) Regulations; and (ii) the Company has not complied with the requirements of Regulation 15 (fund-raising expenses) of the Charities (Institutions of a Public Character) Regulations.
KPMG LLP Public Accountants Accountan t tts and Chartered Accountants Singapore 20 July 2015
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JurongHealth Fund Financial statements Year ended 31 March 2015
Balance sheet As at 31 March 2015 Note
2015 $
2014 $
Assets Non-current asset Intangible asset
4
Current assets Interest receivables Cash and cash equivalents
5
12,066
19,306
Total assets
151,053 100,550,211 100,701,264 100,713,330
236,382 75,094,859 75,331,241 75,350,547
Funds and liabilities Restricted fund Unrestricted fund Accumulated funds
411,053 99,977,238 100,388,291
15,612 75,107,868 75,123,480
325,039 325,039
227,067 227,067
100,713,330
75,350,547
Current liabilities Other payables Total liabilities Total funds and liabilities
6
7
The accompanying notes form an integral part of these financial statements.
21
FS
JurongHealth Fund Financial statements Year ended 31 March 2015
Statement of comprehensive income Year ended 31 March 2015 Unrestricted Fund $
Restricted Fund $
8 9
25,000,000 296,514 25,296,514
10,000 – 10,000
10 11 4
(268,555) (6,932) (2,413) (277,900)
– – – –
Note
Total $
2014 Incoming resources Incoming resources from generated funds: Voluntary income - Donations Investment income Total incoming resources Resources expended Fund disbursement Governance and other costs Amortisation of intangible assets Total resources expended Net incoming resources, representing total comprehensive income for the year
25,010,000 296,514 25,306,514
(268,555) (6,932) (2,413) (277,900)
25,018,614
10,000
25,028,614
25,000,112 448,180 25,448,292
402,271 – 402,271
25,402,383 448,180 25,850,563
2015 Incoming resources Incoming resources from generated funds: Voluntary income - Donations Investment income Total incoming resources Resources expended Fund disbursement Governance and other costs Amortisation of intangible assets Total resources expended Net incoming resources, representing total comprehensive income for the year
8 9
10 11 4
(552,319) (19,363) (7,240) (578,922)
24,869,370
(6,830) – – (6,830)
395,441
(559,149) (19,363) (7,240) (585,752)
25,264,811
The accompanying notes form an integral part of these financial statements.
22
JurongHealth Fund Financial statements Year ended 31 March 2015
Statement of changes in funds Year ended 31 March 2015 --------------------------- Accumulated Funds ---------------------Unrestricted Fund Restricted Fund SMRT Gift General Other of Mobility Fund Programme Donation Total $ $ $ $ As at 1 April 2013
50,089,254
99
5,513
50,094,866
Total comprehensive income for the year Net incoming resources Total comprehensive income for the year
25,018,614
10,000
–
25,028,614
25,018,614
10,000
–
25,028,614
As at 31 March 2014
75,107,868
10,099
5,513
75,123,480
As at 1 April 2014
75,107,868
10,099
5,513
75,123,480
Total comprehensive income for the year Net incoming resources Total comprehensive income for the year
24,869,370
398,683
(3,242)
25,264,811
24,869,370
398,683
(3,242)
25,264,811
As at 31 March 2015
99,977,238
408,782
2,271
100,388,291
The accompanying notes form an integral part of these financial statements.
23
JurongHealth Fund Financial statements Year ended 31 March 2015
Statement of cash flows Year ended 31 March 2015 Note Cash flows from operating activities Net incoming resources for the year Adjustments for: Amortisation of intangible asset Interest income Change in other payables Net cash from operating activities Cash flows from investing activities Interest received Purchase of intangible asset Net cash from investing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
2015 $
2014 $
25,264,811
25,028,614
7,240 (448,180) 24,823,871 97,972 24,921,843
2,413 (296,514) 24,734,513 217,281 24,951,794
533,509 – 533,509
5
25,455,352 75,094,859 100,550,211
96,827 (21,719) 75,108 25,026,902 50,067,957 75,094,859
The accompanying notes form an integral part of these financial statements.
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JurongHealth Fund Financial statements Year ended 31 March 2015
Notes to the financial statements These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 20 July 2015.
1
Domicile and activities The JurongHealth Fund (the Company) was established on 4 August 2011 to promote all medical and health-related services that are exclusively charitable and for the benefit of the Singapore community. The Company is incorporated as a company limited by guarantee, and domiciled in the Republic of Singapore. The registered office of the company is located at 1 Jurong East Street 21, Singapore 609606. The Company is registered as a charity under the Charities Act, Chapter 37 on 29 August 2011 and is an approved institution of a public character in accordance with Section 37(a) of the Income Tax Act. The Company has three registered Corporate Members, namely Jurong Health Services Pte. Ltd. (“JurongHealth�), MOH Holdings Pte. Ltd. and Agency for Integrated Care Pte. Ltd. JurongHealth is the holding company of the JurongHealth Fund as it controls the board composition. JurongHealth is the proprietor of the following registered businesses, namely, Alexandra Hospital, Jurong Medical Centre, Ng Teng Fong General Hospital, Jurong Community Hospital and Lakeside Family Medicine Clinic.
2
Basis of preparation
2.1
Statement of compliance The financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (FRS).
2.2
Basis of measurement The financial statements have been prepared on the historical cost basis.
2.3
Functional and presentation currency These financial statements are presented in Singapore dollars, which is the Company’s functional currency.
2.4
Use of estimates and judgements The preparation of the financial statements in conformity with FRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
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JurongHealth Fund Financial statements Year ended 31 March 2015
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
3
Significant accounting policies The Company adopted new or revised financial reporting standards and interpretations which became effective during the year. The initial adoption of these standards and interpretations did not have an impact on the financial statements. The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
3.1
Financial instruments Non-derivative financial assets The Company initially recognises loans and receivables on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date, which is the date that the Company becomes a party to the contractual provisions of the instrument. The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset. Any interest in transferred financial assets that is created or retained by the Company is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Company has the following non-derivative financial assets: loans and receivables. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise interest receivables, and cash and cash equivalents. Cash and cash equivalents comprise cash and bank balances and fixed deposits with financial institutions.
26
JurongHealth Fund Financial statements Year ended 31 March 2015
Non-derivative financial liabilities The Company initially recognises financial liabilities on the trade date, which is the date that the Company becomes a party to the contractual provisions of the instrument. The Company derecognises a financial liability when the contractual obligations are discharged or cancelled or expire. Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Company classifies non-derivative financial liabilities into other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Other financial liabilities comprise other payables.
3.2
Intangible asset Computer software, which is not an integral part of the related hardware, is accounted for as an intangible asset and is stated at cost less accumulated amortisation. Amortisation of computer software is recognised to statement of comprehensive income on a straight-line basis over its estimated useful life of 3 years, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
3.3
Impairment Non-derivative financial assets A financial asset not carried at fair value through profit or loss is assessed at the end of each reporting period to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has an impact on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Company on terms that the Company would not consider otherwise, indications that a debtor or issuer will enter bankruptcy or the disappearance of an active market for a security. Loans and receivables The Company considers evidence of impairment for loans and receivables at a specific asset level.
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JurongHealth Fund Financial statements Year ended 31 March 2015
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate . Losses are recognised in profit or loss and reflected in an allowance account against loans and receivables. Interest on the impaired asset continues to be recognised. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through profit or loss.
3.4
Funds structure (i) Unrestricted funds General fund The general fund is available for use at the discretion of the Board of Directors in furtherance of the Company's objectives. (ii) Restricted funds The restricted funds are available for use at the discretion of the Board of Directors within projects in furtherance of the Company's objectives that have been identified by donors of the funds or communicated to donors when sourcing for the funds.
3.5
Income recognition Donations Donations are recognised in the period of receipt in the statement of comprehensive income as incoming resources. Investment income Investment income comprises interest income on funds invested. Interest income is recognised as it accrues, using the effective interest method.
3.6
Tax expense The Company is an approved charity organisation under the Charities Act, Chapter 37. No provision for taxation has been made in the financial statements as the Company is a registered charity with income tax exemption.
3.7
New standards and interpretations A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 April 2014, and are not applicable in preparing these financial statements.
28
JurongHealth Fund Financial statements Year ended 31 March 2015
4
Intangible asset Computer software $ Cost At 1 April 2013 Additions At 31 March 2014 Additions At 31 March 2015
– 21,719 21,719 – 21,719
Accumulated amortisation At 1 April 2013 Amortisation charge for the year At 31 March 2014 Amortisation charge for the year At 31 March 2015
– 2,413 2,413 7,240 9,653
Carrying amounts At 1 April 2013 At 31 March 2014 At 31 March 2015
5
– 19,306 12,066
Cash and cash equivalents
Cash at bank Fixed deposits
2015 $
2014 $
15,495,601 85,054,610 100,550,211
608,614 74,486,245 75,094,859
The weighted average effective interest rate per annum at the reporting date is as follows:
Fixed deposits Interest rates reprice at intervals of one to six months.
29
2015 %
2014 %
0.55
0.40
JurongHealth Fund Financial statements Year ended 31 March 2015
6
Accumulated funds 2015 $ Accumulated funds Restricted funds - SMRT Gift of Mobility Programme - Other donation Unrestricted funds - General Fund
2014 $
408,782 2,271 411,053
10,099 5,513 15,612
99,977,238 100,388,291
75,107,868 75,123,480
General Fund This fund comprises donations received from various Entities within Far East Organization, fulfilling a pledge of $125 million by the family of the late Mr Ng Teng Fong over five tranches (or years) from September 2011 to August 2015 for promoting and developing health-related services that will benefit the Singapore community. During the year, the Company received the fourth tranche of the donation of $25 million. As at the reporting date, the Company received four tranches of donations amounting to $100 million. Restricted Fund (a)
Mobility Park in Jurong Community Hospital Donation was received from SMRT Corporation Limited for the fabrication of one mock-up train and bus carriage and the provision of a decommissioned taxi will be located in the Mobility Park at Jurong Community Hospital. The purpose of the train and the bus carriage is to encourage regular use of public transportation and to provide practical assistance in overcoming the barriers they may face during travelling.
(b)
Other Donation Donation was received from a Alexandra Hospital’s doctor to support both the education needs of healthcare staff and needy patients.
7
Other payables
Provision for audit fees Accrued operating expenses Amounts due to Alexandra Hospital
2015 $
2014 $
17,800 1,800 305,439 325,039
5,500 300 221,267 227,067
Amounts due to Alexandra Hospital relate to funds to be disbursed by the Company for the various health programmes and initiatives in Alexandra Hospital. (See note 10)
30
JurongHealth Fund Financial statements Year ended 31 March 2015
8
Donations
Tax deductible donations mainly from the various Entities within Far East Organisation and SMRT
9
2014 $
25,402,383
25,010,000
2015 $
2014 $
448,180
296,514
Investment income
Interest income
10
2015 $
Grants and Disbursements The Company has approved the grants in relation to the programmes and initiatives undertaken by Alexandra Hospital. The following grants are recognised in the statement of comprehensive income on a disbursement basis. Outstanding commitment as at 31 March 2015
31 March 2015
Strategic objectives
Community Care Continuing Education Patient Care Pilot Research Total
Awarded Total Outstanding Outstanding amount commitment Amount commitments commitment during the during the recognised as at as at financial financial during the 31 March 1 April 2014 year year year 2015 $ $ $ $ $ 1,070,138
2,500,000
3,570,138
97,967
7,329,223 19,563 – – 8,418,924
– 75,000 539,500 100,000 3,214,500
7,329,223 94,563 539,500(iii) 100,000 11,633,424
356,772 61,310 3,605 39,495 559,149
Within 1 year $
After 1 year $
1,744,496
1,727,675
6,927,681(i) 2,990,041 15,576(ii) 15,576 535,895 535,895 60,505 60,505 11,011,828 5,346,513
3,937,640 – – – 5,665,315
3,472,171
Outstanding commitment as at 31 March 2014
31 March 2014
Strategic objectives
Community Care Continuing Education Patient Care Total
31
Awarded Total Outstanding Outstanding amount commitment Amount commitments commitment during the during the recognised as at as at financial financial during the 31 March 1 April 2013 year year year 2014 $ $ $ $ $ –
1,070,138
1,070,138
–
– 64,145 64,145
7,505,908 50,000 8,626,046
7,505,908 114,145 8,690,191
176,685 91,870 268,555
Within 1 year $
After 1 year $
347,045
723,093
7,329,223 3,687,112 19,563(iv) 19,563 8,418,924 4,053,720
3,642,111 – 4,365,204
1,070,138
JurongHealth Fund Financial statements Year ended 31 March 2015
Note
11
(i)
The outstanding commitment as at 31 March 2015 for Continuing Education excludes the balance unutilised amount of $44,770 for Nursing Trip as the grant expired in October 2014.
(ii)
The outstanding commitment as at 31 March 2015 for Patient Care excludes the balance unutilised amount of $17,677 for Needy Patient as the grant expired in March 2015. Any unutilised balance For Needy Patient Grant was not meant to be carried forward.
(iii)
Grants disbursed under the strategic objective for Pilot comprises of Mobility Park at Jurong Community Hospital amounting $500,000 and JurongHealth Workplace and Neighbourhood Health amounting $39,500.
(iv)
The outstanding commitment as at 31 March 2014 for Patient Care excludes the balance unutilised amount of $2,712 for Needy Patient as the grant expired in March 2014. Any unutilised balance For Needy Patient Grant was not meant to be carried forward.
Governance and other costs 2015 $ Audit fee - External - Internal Others
12
5,800 12,000 1,563 19,363
2014 $ 5,500 –
1,432 6,932
Related parties Key management personnel compensation Key management personnel of the Company are those persons having the authority and responsibility for planning, directing and controlling the activities of the Company. The Board of Directors is considered as key management personnel of the Company. The Board of Directors did not receive any form of remuneration during the financial year. Other related party transactions All support and administrative services are provided by Jurong Health Services Pte Ltd, at no cost.
13
Financial risk management Overview The Company is exposed to financial risks, namely, credit risk, liquidity risk and market risk, arising from its operations and investments.
32
JurongHealth Fund Financial statements Year ended 31 March 2015
Risk management framework Risk management is integral to the operations of the Company. The Board of Directors has established a system of controls in place to create an acceptable balance between cost of risks occurring and the cost of managing the risks. The Board of Directors continually monitors the Company’s risk management process to ensur e that an appropriate balance between risk and control is achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. Credit risk Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the Company’s cash and cash equivalents. At the reporting date, there is no significant concentration of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. The Company only records donations when the receipt is certain and measurable. The Board of Directors regularly monitors the recoverability of its financial assets and believe that it has adequately provided for any exposure to potential losses. Surplus cash are placed as fixed deposits with reputable financial institutions, which are regulated. In a bid to manage its credit risk, the Company only placed fixed deposits with reputable financial institutions. Given that the Company only has placed fixed deposits with reputable financial institutions, the Board of Directors does not expect any counterparty to fail to meet its obligations. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as and when they fall due. The Board of Directors monitors the liquidity risk and maintains a level of cash and cash equivalents deemed adequate by the Board of Directors to finance the Company’s operations and to mitigate the effects of fluctuations in cash flows. The total contractual undiscounted cash flows of the Company’s non -derivate financial liabilities approximate its carrying amounts and are repayable within one year. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, equity prices and interest rates will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk. Equity price risk The Company is not exposed to equity price risk as there is no investment held. Interest rate risk
33
JurongHealth Fund Financial statements Year ended 31 March 2015
The Company’s exposure to market risk for changes in interest rates relate primarily to fixed deposits placed with financial institutions which are regulated. The Company manages its interest rate risks by placing such balances on varying maturities and fixed interest rate terms. As the Company has no variable rate financial assets, no sensitivity analysis has been presented. Foreign currency risk The financial assets and financial liabilities of the Company are denominated in Singapore dollars. The Company has no exposure to foreign currency risk. Accounting classification and fair values Fair values versus carrying amounts The carrying amounts of financial assets and financial liabilities are as follows. The fair value hierarchy is not included as the carrying amounts of financial assets and financial liabilities is a reasonable approximation of fair value.
Note
Loans and receivables $
Financial assets not measured at fair value Interest receivables Cash and cash equivalents
5
151,053 100,550,211 100,701,264
Financial liabilities not measured at fair value Other payables
7
–
Financial assets not measured at fair value Interest receivables Cash and cash equivalents
5
236,382 75,094,859 75,331,241
Financial liabilities not measured at fair value Other payables
7
–
Other financial liabilities $
Total carrying amount $
Fair value $
151,053 100,550,211 100,701,264
151,053 100,550,211 100,701,264
31 March 2015
– – –
(325,039)
(325,039)
(325,039)
31 March 2014
– – –
(227,067)
236,382 75,094,859 75,331,241
(227,067)
236,382 75,094,859 75,331,241
(227,067)
34
JurongHealth Fund Financial statements Year ended 31 March 2015
Measurement of fair values Other short-term financial assets and liabilities The notional amounts of financial assets and liabilities with a maturity of less than one year (including interest receivables, cash and cash equivalents and other payables) are assumed to approximate their fair values because of the short period to maturity and the effect of discounting is immaterial.
35
address :
1 Jurong East Street 21, Singapore 609606
website :
www.juronghealthfund.com.sg
enquiry :
enquiries@juronghealth.com.sg
tel
:
+65 6716 2000
fax
:
+65 6716 5500
Registration Number: 201118604G