SCECF AGM 2023 - Audited Financial Statements 2022

Company Registration No. 201911451D

SCCCI Chinese Entrepreneurial Culture Foundation

Annual Financial Statements

31 December 2022

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION STATEMENT OF THE COMMITTEE OF MANAGEMENT

The Committee Members hereby present their statement to the members together with the audited financial statements of SCCCI Chinese Entrepreneurial Culture Foundation (the “Foundation”) for the year ended 31 December 2022.

1. OPINION OF THE COMMITTEE OF MANAGEMENT

In the opinion of the Committee of Management,

(i) the financial statements of the Foundation are drawn up so as to give a true and fair view of the financial position of the Foundation as at 31 December 2022, and the financial performance, changes in funds and cash flowsof theFoundation for the year then ended; and

(ii) at the date of this statement, there are reasonable grounds to believe that the Foundation will be able to pay its debts as and when they fall due.

2. MEMBERS OF THE COMMITTEE OF MANAGEMENT

The Committee Members in office at the date of this statement are:

Kho Choon Keng

Ng San Tiong

Ng Siew Quan

Wu Hsioh Kwang @ Ng Hok Kuong

Adrian Peh Nam Chuan

Ang Fung Fung (appointed on 11 May 2022)

Anthony Tan Kang Uei

3. ARRANGEMENTS TO ENABLE COMMITTEE MEMBERS TO ACQUIRE SHARES AND DEBENTURES

Neither at the end of nor at any time during the financial year, was the Foundation a party to any arrangement whose objects are, or one of whose objects is, to enable the Committee members of the Foundation to acquire benefits by means of the acquisition of shares or debentures of the Foundation or any other body corporate.

The Foundation is a company limited by guarantee and has no share capital.

4. COMMITTEE MEMBERS’ CONTRACTUAL BENEFITS

Since the end of the previous financial year, no Committee Member has received or become entitled to receive a benefit by reason of a contract required to be disclosed by Section 201(8) of the Singapore Companies Act 1967.

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE COMMITTEE OF MANAGEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022

Report on the audit of the financial statements Opinion

We have audited the financial statements of SCCCI Chinese Entrepreneurial Culture Foundation (the “Foundation”), which comprise the balance sheet of the Foundation as at 31 December 2022, statement of comprehensive income, statement of changes in funds and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements are properly drawn up in accordance with the provisions of the Companies Act 1967 (the “Act”), Charities Act 1994 and other relevant regulations (the “Charities Act and Regulations”) and Financial Reporting Standards in Singapore (FRSs) so as to give a true and fair view of the financial position of the Foundation as at 31 December 2022 and of the financial performance, changes in funds and cash flows of the Foundation for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Foundation in accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

Management is responsible for other information. The other information comprises Statement of the Committee of Management set out on pages 1 to 2.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If, basedonthe work wehave performed, weconcludethat thereis a materialmisstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE COMMITTEE OF MANAGEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022

Responsibilities of management and Committee of Management for the financial statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act, Charities Act and Regulations and FRSs, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets.

In preparing the financial statements, management is responsible for assessing the Foundation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Foundation or to cease operations, or has no realistic alternative but to do so.

The Committee of Management’s responsibilities include overseeing the Foundation’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Foundation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Foundation to cease to continue as a going concern.

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

INDEPENDENT AUDITOR’S REPORT TO THE COMMITTEE OF MANAGEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022

Auditor’s responsibilities for the audit of the financial statements (continued)

 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

Report on other legal and regulatory requirements

In our opinion, the accounting and other records required to be kept by the Foundation have been properly kept in accordance with the provisions of the Act and Charities Act and Regulations.

During the course of our audit, nothing has come to our attention that causes us to believe that during the year:

(a) The Foundation has not used the donation moneys in accordance with its objectives as required under regulation 11 of the Charities (Institutions of a Public Character) Regulations; and

(b) The Foundation has not complied with the requirements of Regulations 15 of the Charities (Institutions of a Public Character) Regulations. The Foundation has not held any fund-raising activities during the year which require them to comply with the requirements of Regulations 15 of the Charities (Institutions of a Public Character) Regulations.

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

BALANCE SHEET AS AT 31 DECEMBER 2022

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

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022

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

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

STATEMENT OF CHANGES IN FUNDS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022

(In Singapore dollars)

funds

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

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022

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

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022

1. CORPORATE INFORMATION

SCCCI Chinese Entrepreneurial Culture Foundation (the “Foundation”), a company limited by guarantee and not having a share capital, is incorporated and domiciled in Singapore.

The registered office and principal place of business of the Foundation is located at 9 Jurong Town Hall Road, #04-01 Jurong Town Hall, Singapore 609431.

The principal activities of the Foundation are that of philanthropic trusts and foundation activities.

There have been no significant changes in the nature of these activities during the year.

The Foundation is an approved institution of a public character (“IPC”) under the Charities Act 1994 from 16 December 2021 to 15 December 2023.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

The financial statements have been prepared in accordance with Financial Reporting Standards in Singapore (“FRSs”).

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

The financial statements are presented in Singapore Dollars (“$”).

The accounting policies adopted are consistent with those of the previous financial year except in the current financial year, the Foundation has adopted all the new and revised standards and Interpretations of FRS (INT FRS) that are effective for annual periods beginning on or after 1 January 2022. The adoption of these standards and interpretations did not have any material effect on the financial performance or position of the Foundation.

2.2 Standards issued but not yet effective

The Foundation has not adopted the following standards that have been issued but not yet effective:

Description

Amendments to FRS 8: Definition of Accounting Estimates

Effective for annual periods beginning on or after

1 Jan 2023

The Committee of Management expects that the adoption of the standards and interpretations above will have no material impact on the financial statements in the period of initial application.

CULTURE FOUNDATION

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.3 Foreign currency

The Foundation’s financial statements are presented in Singapore Dollars, which is also the functional currency.

Transactions in foreign currencies are measured and recorded on initial recognition in Singapore Dollars at exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated at the closing rate of exchange ruling at balance sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of the reporting date are recognised in profit or loss.

2.4 Financial instruments

(a) Financial assets Initial recognition and measurement

Financial assets are recognised when, and only when, the Foundation becomes a party to the contractual provisions of the financial instrument.

At initial recognition, the Foundation measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Subsequent measurement – Amortised cost

Financial assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the assets are derecognised or impaired, and through amortisation process.

Derecognition

A financial asset is derecognised when 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.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.4 Financial instruments (cont’d)

(b) Financial liabilities

Initial recognition and measurement

Financial liabilities are recognised when, and only when, the Foundation becomes a party to the contractual provisions of the financial instrument. The Foundation determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognised initially at fair value plus, in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs.

Subsequent measurement – Financial liabilities at amortised cost

After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. On derecognition, the difference between the carrying amounts and the consideration paid is recognised in profit or loss.

2.5 Impairment of financial assets

The Foundation recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss and financial guarantee contracts. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Foundation expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime ECL).

A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

2.6 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and fixed deposits that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value.

CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.7 Provisions

Provisions are recognised when the Foundation has a present obligation (legal or constructive) as a result of a past event. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and the amount of the obligation can be estimated reliably.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

2.8 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Foundation and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty.

Interest income

Interest income is recognised using the effective interest method.

2.9. Government grant

Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Grants for the purchase of depreciable assets are offset directly against the cost of the specific asset. Grants received to meet operating expenses are recognised as income over the period necessary to match with the related expenses.

3. MEMBERS’ GUARANTEE

The members of the Foundation are members or ex-members of the Chamber.

The liability of each member is limited to $10 while he/she is a member, or within one year after he/she ceases to be a member.

4. INCOME TAX

The income of the Foundation is exempted from tax under section 13(1)(zm) of the Singapore Income Tax Act as the Foundation is a registered charity under the Singapore Charities Act.

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022

5. CASH AND BANK BALANCES

For the purpose of the statement of cash flows, cash and bank balances comprise the following at the end of the financial year:

comprise the following:

The fixed deposits are placed at varying terms ranging for one year and earned average effective interest rate of 2.01% (2021: 0.25%) per annum.

Restricted cash (Cultural Matching Fund)

On 20 November 2019, the Foundation entered into an agreement with the Ministry of Culture, Community and Youth (“MCCY”) and National Arts Council (“NAC”) for the Cultural Matching Fund (CMF) grant. The grant is to provide the Foundation subsidies for approved arts and heritage expenses (collectively, the “heritage expenses”). The Foundation is required to maintain a separate interest-bearing account for depositing the grant under the programme.

6. GRANT RECEIVED IN ADVANCE

The CMF grant is to provide the Foundation subsidies for approved arts and heritage expenses (collectively, the “heritage expenses”).

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022

The following items have been included in arriving at deficit for the year:

Related entity refers to entities where the Foundation’s Committee of Management are either the director or members of those entities.

SCCCI CHINESE ENTREPRENEURIAL CULTURE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022

10. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Foundation is exposed to financial risk arising from its operations and the use of financial instruments. The key financial risk is liquidity risk. The members of the Committee of Management review and agree on policies and procedures for the management of the risk, which are executed by the management.

The following provides details regarding the Foundation’s exposure to the above-mentioned financial risk and the objectives, policies and processes for the management of the risk.

Liquidity risk

Liquidity risk is the risk that the Foundation will encounter in meeting financial obligations due to shortage of funds. The Foundation’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Foundation’s objective is to maintain a balance between continuity of funding and flexibility by monitoring and maintaining a level of cash and cash equivalents deemed adequate by the management to finance the Foundation’s operations and mitigate the effects of fluctuations in cash flows.

Analysis of financial instruments by remaining contractual maturities

The table below summarises the maturity profile of the Foundation’s financial assets and liabilities at balance sheet date based on contractual undiscounted repayment obligations.

11. CAPITAL MANAGEMENT

The primary objective of the Foundation’s capital management is to ensure that the funding from Singapore Chinese Chamber of Commerce Foundation, Ministry of Culture, Community & Youth and National Arts Council is properly managed and used to support its operations.

The Foundation manages its capital structure and makes adjustments to it, in the light of changes in economic conditions. No changes were made in the objectives, policies or processes during the year ended 31 December 2022.

12. AUTHORISATION OF FINANCIAL STATEMENTS

The financial statements for the year ended 31 December 2022 were authorised for issue by the Committee of Management on 31 March 2023.