Financial Overview

Tanglin Trust School Ltd is a company limited by guarantee and is registered as a charity under the Charities Act. The school is governed by a Board of Governors that serves without remuneration. All key financial decisions, including establishment of annual budget and schedule of fees, are reviewed, and approved by the Board of Governors. The Board of Governors also ensures that an annual financial audit is conducted.

Our operating environment continues to be challenged by the disruptions caused by Covid-19 pandemic and the inflationary pressure during FY2021/22. Several costcontainment strategies implemented have helped to contain the costs escalation. For example, the 2-year fixed rate contract for utility that we entered in August 2021 has allowed the school to enjoy a lower utility rate than the current market rate and effectively resulted in immediate cost saving. Close monitoring of student enrolment is also key to our sustainable financial performance. Admissions and marketing strategies are reviewed regularly to ensure enrolment targets are met.

For the year 2021/22, we had another successful year and achieved an operating surplus of $3.8 million which was $3.6 million higher than the budget due to a healthy student roll of about 2,820 and lower operating expenditure. We remain debt-free due to the strong cash flow. Continuous investment in campus improvement and new facilities is one of our key priorities. There was a planned $7.7 million capital expenditure, but we were only able to carry out $2 million worth of project works including:

• Infant School Library refurbishment at $500,000

• Infant School vinyl flooring at $400,000

• Design and Technology Laboratory at $350,000

• Replacement of projectors, cameras and video mixer for Berrick Performance Hall at $130,000

• Retractable curtain and AV equipment for The Moot at $70,000

$5.7 million worth of project works was deferred due to the delays in the completion of Tanglin Centenary building:

• $2.2 million for the conversion of all the halls and Forest café on Level 3 of Nixon Building to drama facilities

• $1.6 million for Swimming Pool shelter and Senior School lift replacement

• $1.1 million to upgrade the Senior Language and English teaching facilities, and revamp the Year 10/11 communal area

• $0.8 million to refurbish the Junior Outdoor Creative Play Space and Junior ceiling system

These deferred projects will be completed in the year 2022/23. In addition, there is another planned $6 million of capital expenditure in the pipeline to invest in new facilities and campus infrastructure over the next few years. These expenditures aim to provide quality facilities to support education provision and will create exceptional experiences for our students.

Overall, the total audited surplus of $13.5 million (comprising the $3.8 million operating surplus, $8.7 million building fund and $1 million placement rights fund) was added to the school’s reserve in 2021/22. This is primarily designated for the school’s infrastructure, including, but not limited to, new buildings, facilities, and improvement projects.

Financial Performance by Funds for FY2021/22 $

For ordinary expenses relating to the operations of the school.

All in S$m

For renewal of lease, construction of buildings and facilities (including air-conditioning and electrical installations etc) as well as improvement projects approved by the Board of Governors from time to time.

Offers accelerated access to school places. An amount is diverted annually to support the TTS Foundation for enrichment projects within the school and for projects approved by the Board of Governors.

2021/22 Revenue and Expenses

Student enrolment and new student admissions stand at 2,820 and 400 students respectively.

School fees and related revenue comprised 97% of total revenue, with other miscellaneous revenue making up the remaining 3%. Revenue composition for 2021/22 remained fairly consistent with 2020/21.

In our continuing effort to provide outstanding education services, we invest the majority of our revenue to attract and retain the best teachers and staff. We employ more than 600 staff members, of which 260 are Faculty staff. Salaries and benefits were the single largest category of expenses, at 78% of total costs.

Depreciation was the next largest category at 8% of total costs. Teaching resources, campus operations, and technology and administration costs made up the remaining 14%.

Cost composition for 2021/22 was fairly consistent with 2020/21.