ITE Annual Report 2010/2011

INSTITUTE OF TECHNICAL EDUCATION ANNUAL REPORT for the year ended 31 March 2011

ORGANISATION DETAILS

Board Secretary

Ms Sabrina LOI Deputy CEO (Corporate)

Address Institute of Technical Education 10 Dover Drive Singapore 138683

Telephone (65) 6590 2016

Fax (65) 6776 7685

E-Mail [email protected]

In the opinion of the Board of Governors, the Annual Report of the INSTITUTE OF TECHNICAL EDUCATION are drawn up so as to present fairly the state of affairs of the INSTITUTE OF TECHNICAL EDUCATION as at 31 March 2011.

On behalf of the Board of Governors:

Bob Tan Beng Hai

Bruce Poh Geok Huat

Chairman Director & Chief Executive Officer

15 June 2011 15 June 2011

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mailto:[email protected]

ABOUT ITE

ITE is the principal provider of technical education in Singapore and a national authority

in developing occupational skills certification and standards. We offer secondary school

leavers and working adults a wide range of part- and full-time courses to enhance the

competitiveness of Singapore‟s workforce locally and internationally.

ITE adopts a “One ITE System, Three Colleges” Governance and Education Model

to deliver consistent standards, quality programmes and successful graduates. Under

this system, ITE Headquarters oversees system and policy issues and ensures

standards, while the three Colleges, namely, ITE College Central, ITE College East

and ITE College West, are empowered to develop niches of excellence to enhance the

attractiveness of ITE education.

Set up in 1992, ITE is a statutory board under the Ministry of Education.

MISSION

To Create Opportunities for School Leavers and Adult Learners to Acquire Skills,

Knowledge and Values for Employability and Lifelong Learning in a Global Economy.

VISION

A Global Leader for Innovations in Technical Education

VALUES

Integrity, Teamwork, Excellence, Care (ITE Care)

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ORGANISATION STRUCTURE

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ITE BOARD OF GOVERNORS (As at 31 March 2011)

The ITE Board of Governors provides counsel to ITE management and guides ITE in

realising its vision and goals. As at 31 March 2011, the tripartite board comprised the

following representation from government, industry and the unions:

Chairman Mr Bob Tan Beng Hai Chairman Jurong Engineering Ltd Deputy Chairman Mr Heng Chiang Gnee Chief Executive Officer Maritime Sustainability Pte Ltd Director & Chief Executive Officer Mr Bruce Poh Geok Huat Institute of Technical Education Members Dr Ernest Kan Yaw Kiong Partner Chief-of-Operations, Clients and Market Head of Global IFRS & Offerings Services Deloitte & Touche LLP, Singapore Mr Kuah Boon Wee Group Chief Executive Officer MTQ Corporation

Mr Heinrich Grafe General Manager Conrad Centennial, Singapore Ms Ho Peng Director-General of Education Ministry of Education Dr Lim Boon Huat Managing Director Rohde & Schwarz Asia Pte Ltd

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Mr Edwin Lye Teck Hee General Secretary Singapore Teachers‟ Union BG Ngien Hoon Ping Director, Joint Operations Ministry of Defence Mr Phua Han Tian General Manager & Vice President Printers & WW Product Development, Consumer Inkjet Systems Eastman Kodak Company Mr Toh Wee Khiang Executive Director Human Capital Division and Building & Infrastructure Solutions Division Economic Development Board Mr Tong Chong Heong Chief Executive Officer Keppel Offshore & Marine Mr T K Udairam Chief Executive Officer Changi General Hospital Dr Carrie Willis Executive Director Hong Kong Vocational Training Council Mr Yap Ong Heng Director-General Civil Aviation Authority of Singapore Mr Zainudin Bin Nordin Mayor Central Singapore District Central Singapore Community Development Council (Member of Parliament, Bishan-Toa Payoh GRC) Mr Zee Yoong Kang Chief Executive Officer NTUC Learning Hub

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ITE SENIOR MANAGEMENT TEAM

The senior management team shapes and guides the development of ITE under the One

ITE System, Three Colleges governance and education model. The team comprised:

Senior Leadership

Mr Bruce Poh Geok Huat Director & Chief Executive Officer

Mr Heng Guan Teck Deputy Chief Executive Officer (Academic)

Ms Sabrina Loi Deputy Chief Executive Officer (Corporate)

Dr Benjamin Tan Lin Boon Deputy Chief Executive Officer (Development)

Mr Aw York Bin Deputy Chief Executive Officer (Industry)

Mr Tan Seng Hua Principal ITE College Central

Mr Eden Liew Ee Chong Principal ITE College East

Dr Yek Tiew Ming Principal ITE College West

ITE Headquarters’ Directorate – One ITE System

Mr Lim Cheng Siong Divisional Director Campus Development and Estates

Mr Chong Weng Foo Divisional Director Continuing Education and Training

Ms Tham Mei Leng Divisional Director Corporate Affairs and Development

Ms Iris Seet Divisional Director Curriculum and Educational Development 1

Dr Derek Yeo Divisional Director Curriculum and Educational Development 2

Mr Samuel Ng Hong Kok Divisional Director Educational Design and Technology

Ms Jane Chia Divisional Director Enterprise Administration

Ms Michelle Low Hwee Geok Divisional Director Examinations

Mr Chia Ti Yu Divisional Director Finance

Mr Tan Wee Khiang Divisional Director Human Resource

Mr James Ng Kian Kwang Divisional Director Industry-based Training

Mr Lee Foo Wah Divisional Director Information Technology (Covering)

Mrs Ong-Cheong Hwa Yew Divisional Director Student Affairs

Mr Cheang Wee Kok Shang Registrar

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ITE College Central Directorate

Mr Tan Seng Hua Principal

Mr Liew Beng Keong Deputy Principal (Development)

Ms Yeo Sock Tin Director Academic & Pedagogic Innovation

Mr Yeow Swee Soon Director College Development

Ms Florence Ang Bee Eng Director College Services

Ms Ng Lee Keng Director School of Business and Services

Mr Callistus Chong Director School of Design and Media

Mr Tan Kay Chuan Director School of Electronics & InfoComm Technology

Mr Lim Teck Lee Director School of Engineering

Dr Lee Teck Kheng Director Technology Development Centre

ITE College East Directorate

Mr Eden Liew Ee Chong Principal

Mr Chong Leong Fatt Director College Services

Dr Lionel Lau Chin Leon Director School of Applied and Health Sciences

Mrs Tan-Lim Lai Soon Director School of Business & Services

Dr Lim See Yew Director School of Electronics and InfoComm Technology

Mr Kong Chee Seng Director School of Engineering

ITE College West Directorate

Dr Yek Tiew Ming Principal

Mr Goh Mong Song Deputy Principal (Development)

Mr Ting Kok Guan Director College Services

Mr Peh Wee Leng Director School of Business and Services (Covering)

Dr Eric Cheung Lai Yip Director School of Electronics and InfoComm Technology

Mr Aw Kim Geok Director School of Engineering

Ms Denise Tan Yi Min Director School of Hospitality

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HIGHLIGHTS

Inspiring Vision, Igniting Innovation

FY 2010

2010 was a year of new beginnings for ITE. The start of a new year saw ITE embark on a

new path under ITE Innovate (2010–2014), a new five-year strategic plan to propel the

organisation towards higher peaks of excellence in innovation and enterprise.

When We Believe, Goals are Within Reach

The year‟s accomplishments were crowned by the completion of ITE College West at

Choa Chu Kang in July 2010 and ground-breaking for the development of ITE‟s third

Regional Campus, ITE College Central, and the new ITE Headquarters, in December

2010. In tandem with our pursuit of organisational excellence, the year was also marked

by the attainment of several prestigious awards and accolades.

Mr Bruce Poh leads the symbolic “Five to One” torch relay to signify the historic move from five

campuses into one comprehensive Regional Campus, ITE College West, at Choa Chu Kang

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Best-in-class infrastructure

ITE College West began its operations at the new Choa Chu Kang campus in July 2010,

with a symbolic “Five to One” torch relay to signify the historic move from five campuses

into one comprehensive Regional Campus. This marked the completion of the second

milestone in ITE‟s “Colleges of the Future” Masterplan. To thank the community for its

support towards vocational and technical education, a fund-raising event was organised in

conjunction with the torch relay. In all, $123,013.51 was raised for the Community Chest.

Positioned as a College for Service and Innovation, ITE College West‟s niche areas

include Culinary and Hospitality Services, Land Transport, Security Technology and

Service Innovation. The College provides a multidisciplinary, state-of-the-art learning

environment that boasts ITE‟s hallmark „authentic learning‟ pedagogic approach. Among

the college‟s notable facilities are a 22-room training hotel, a coffee barista training centre,

Western and Asian training kitchens and restaurants, as well as a commercial retail hub.

In December 2010, the design for the new ITE College Central and ITE Headquarters at

Ang Mo Kio was unveiled in an “Unveiling of Design and Ground Breaking Ceremony”,

officiated by Dr Ng Eng Hen, then Minister for Education and Second Minister for

Ground-breaking for the development of ITE‟s third Regional Campus, ITE College Central and the new ITE Headquarters

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Defence. The Ceremony signifies a key milestone towards the completion of the “Colleges

of the Future” Masterplan under the blueprint for One ITE System, Three Colleges

Governance and Education Model. Construction began in December 2010 and the

complex is slated for completion by January 2013.

The location of ITE Headquarters and ITE College Central within the same premises will

not only create a more enriching environment for teaching and learning, but also further

encourage creativity and innovation within ITE. This co-location will allow ITE to better

synergise resource utilisation and streamline workflow processes to enhance productivity

and provide more opportunities for innovation. The ones to benefit most from this move,

however, are our students. Positioned as a College for Creativity and Innovation, ITE

College Central will offer courses in niche areas such as Design and Media, Performing

Arts, Early Childhood Education and Aerospace Technology. ITE students will be able to

enjoy these attractive programmes in a modern and unique learning environment.

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ITE College West

provides a

multidisciplinary,

state-of-the-art

learning

environment that

showcases ITE‟s

hallmark

„authentic

learning‟

pedagogic approach

Giving back – Corporate Social Responsibility

As a reflection of the corporate thrust in Corporate Social Responsibility (CSR), an

enhanced CSR framework was formulated. It consolidates the different facets of CSR

activities into a three-pronged approach towards responsibility for the environment, the

community and in business through corporate transparency. Our CSR ethos, “We use our

resources and skills to care for the community and build a sustainable environment”, is an

expansion of the ITE Care values where “Care” includes care to the community and the

environment. This framework steered corporate developments in this area, and saw the

organisation and participation of ITE in a few signature CSR events in the year:

National Life Saving Day

In this flagship CSR event of the year, some 5,000 ITE students, staff and family

members participated in the National Life Saving Day on 16 January 2011. Through

the event, a total of 7,204 people were certified as Citizen Heart Savers. In addition,

about 320 ITE staff and students also volunteered their services as CPR instructors

during the event. The event successfully set a new Guinness World Record for the

most number of people trained in CPR in a single day.

SAFE Home Project

Some 200 staff and student volunteers have provided enhancement and repair works

in 150 households since the launch of the Care and Repair Project / SAFE Home

Project in collaboration with the various Community Development Councils in

November 2010. The project seeks to install home safety and conservation items in

750 units of one-room and two-room flats over a period of three years.

Chaoyang School Adoption Programme

In addition, ITE has adopted special schools as part of our regular community

engagement initiative. Weekly IT enrichment activities were conducted for

Chaoyang‟s students from February to April 2011. The students were taught IT skills,

such as editing photos that they had taken and sharing them with friends via

Facebook.

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Metta School

In November 2010, ITE College East and Metta School jointly-organised the Metta

Shine Night, where students from both education institutions performed for some 600

guests. ITE students exemplified community spirit and service by contributing their

time and effort in performing and providing grooming services. Many generous staff

also bought and donated event tickets so that family members and friends of Metta

School were able to enjoy the show.

A Caring Institution Committed to Environmental Sustainability Practices

ITE encourages green ideas and practices through recycling, reducing and re-using

initiatives. In addition, ITE has also adopted sustainable design and green

construction requirements to improve the environmental performance of its buildings.

Open staircases and circulation spaces, extensive themed landscaping and solar

water heaters were deliberately infused into the Colleges‟ building design. The result:

ITE College West was awarded the Building and Construction Authority (BCA)‟s

Green Mark Platinum Award – the highest rating under the BCA Green Mark Scheme.

Feather in ITE’s Cap

In recognition for our exemplary efforts and commitment to organisational excellence, and

innovation, these awards were bestowed upon ITE:

Public Service Distinguished Award – from the Prime Minister‟s Office. For achieving Singapore Quality Award, ISO 9001:2008 Quality Management System and People Developer Standard;

Best Practice Award (Stakeholder Engagement) – from the Prime Minister‟s Office. For repositioning ITE and improving public perception and acceptance of technical education;

Singapore Innovation Class and Singapore Service Class, renewed People Developer Standard – from Spring Singapore;

2010 Innovations of the Year Award – from the League for Innovation in the Community College, USA. For ITE College Central‟s Aircraft Fuel System Simulator Project;

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Six Singapore HR Awards – from Singapore Human Resources Institute:

Corporate HR Award;

Leading CEO Award;

Leading HR Practices in Strategic HR Award;

Leading HR Practices in Learning and Human Capital Development Award;

Leading HR Practices in HR Communications and Branding Award;

Leading HR Practices (Special Mention) in Corporate Social Responsibility Award;

Human Capital Corporate Champion Award – from Human Capital Singapore;

Public Relations in the Service of Mankind (PRISM) Award – from the Institute of Public Relations of Singapore. For Outstanding Public Relations Champion – CEO;

Distinguished Defence Partner Award;

People’s Association Community Spirit Awards – from the People‟s Association for being an Outstanding Partner.

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When We Believe, We Soar

The transformation of ITE‟s learning environment, coupled with the introduction of up-to-

date industry-relevant courses, recognition for the strength of our systems and processes,

the strength and capability of our people, and the rising acceptance of Vocational and

Technical Education (VTE) in Singapore, have raised the public profile of ITE – not only

locally, but internationally. Countries looking for a model of VTE that works, would

invariably call upon ITE, to study our model, and to learn from our policies and practices.

Our students did us proud at the 8th ASEAN Skills Competition in Bangkok

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Global Footprint

In FY 2010, ITE hosted more than a thousand overseas visitors to share our VTE

expertise. This doubled the number of international visitors received in ITE over the

previous year. Notable visitors included the President of Panama; Deputy Prime Ministers

of Cambodia and Kazakhstan; and Ministers from Oman and Germany. Resulting from a

study visit by the Editor-in-Chief of The Economist, an article titled “Go East, Young

Bureaucrat – Emerging Asia can teach the West a lot about Government” was published

in the March 2011 issue of the publication.

The building of international relationships through partnerships and Memoranda of

Understanding with reputable foreign institutions and companies is a key strategy for ITE

in achieving its Vision of being A Global Leader for Innovations in Technical Education.

Today, ITE has 11 corporate MOUs with renowned institutions overseas from 10

countries.

In 2010, ITE launched its second niche Diploma – Technical Engineer Diploma in

Automotive Engineering – in collaboration with the Ministry of Education, Youth and

Sports, Baden-Württemberg, Germany, a partner of the organisation since 1991. The

Technical Diploma in Culinary Arts with Restaurant Management, in partnership with the

Institut Paul Bocuse (IPB), France, was implemented in April 2011, with the first intake of

20 students. In February 2011, ITE hosted the IPB Worldwide Alliance Directors‟ meeting

– making Singapore the first member country to host the meeting outside Lyon, France.

ITE continued to lend its expertise to grow vocational and technical education around the

world. In government-to-government projects, ITE, through ITE Education Services Pte

Ltd or ITEES, a private arm of the organisation, continued to act as consultant in the

development of the Regional Vocational Training Centre in Marka, Jordan, as part of the

Asia-Middle East Dialogue between Singapore and Jordan.

In 2010, ITEES collaborated with Vietnam to upgrade the capability of some 80 key

Secondary Nurse Trainers from the Department of Science and Training, Ministry of

Health, Vietnam.

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In addition, the ITEES also signed a collaboration agreement with the Ministry of Labour

and Vocational Training, Cambodia, in January 2011 to conduct Train-the-Trainer

Pedagogy Programme for the ministry‟s master trainers and TVET leaders and

administrators.

In the Philippines, ITEES conducted Train-the-Trainer Programme in Pedagogical

Competencies in Technical and Vocational Training for lead trainers from the Technical

Education and Skills Development Authority. To complement the Programme, ITEES also

shared ITE‟s best practices to its College Leaders and Administrators.

An Exemplary Role-Model

In recognition of ITE‟s VTE model, Asia-Pacific Economic Cooperation (APEC) used ITE

as a model institution in developing a Case Study on Career and Technical Education in a

report that was disseminated online through the APEC Wiki Human Resources

Development Working Group website. The Report was also included in a Technical Paper

for the 5th Human Resource Development Ministerial Meeting held in Beijing in

September 2010. In the Technical Paper, ITE was described as an exemplary model in

fostering 21st century skills and competencies for its students.

Strategic Connections

In 2010, ITE signed 24 Memoranda of Understanding (MOUs) with global corporations

and local industry leaders to extend our strategic connectivity with industry and

stakeholders. Through these value-creating, win-win collaborations, we enhanced the

transfer of knowledge and technology from industry to the organisation, provided more

opportunities for industry-relevant training for our students and spearheaded innovations

in teaching and learning. Some of our key new MOU partners include:

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Industry Partners Nature of Partnership

EIG Global Pte Ltd Collaboration on beauty therapy and spa

management training and development

Four Seasons Hotels and Resorts

Asia Pacific Pte Ltd

Collaboration on development of hotel

operational processes and best practices

to support the launch of the training hotel

at ITE College West

Hewlett-Packard Singapore (Sales)

Pte Ltd

Collaboration on setting up of the ITE-HP

Centre of Technology in Application

Lifecycle Management

Marina Bay Sands Pte Ltd

Resorts World at Sentosa Pte Ltd

Provision of scholarships, industrial

attachments, training-cum-work

opportunities for students, and transfer of

know-how through staff training and

consultation

Rolls-Royce Singapore Pte Ltd Collaboration on joint development of

courses in aircraft engine technology and

marine engineering

Sembcorp Marine Limited To set up the Marine Engineering and

Quality Centre, staff capability

development, training of ITE students,

and development of joint certification

courses

SMRT Institute Pte Ltd Transfer of technology to support setting

up of Rail Maintenance and Field

Services Workshops and provision of

inputs on curriculum development and

review

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The Wind Beneath My Wings

The successes of ITE students in local and at international-level competitions, have

demonstrated the efficacy of the ITE education and the commitment of our lecturers in

making learning meaningful and successful to this group of kinaesthetic learners.

At the 8th ASEAN Skills Competition held in November 2010 in Bangkok, our students did

exceptionally well against students from the region to win seven medals (comprising two

Gold medals, one Silver medal, four Bronze medals) and six Medallions for Excellence;

and a Fourth Ranking on the medal tally.

At the 2011 WorldSkills Singapore Competition in January, ITE students showed their

mettle against competitors from the Polytechnics by finishing third on the medal tally.

They took home three Gold, five Silver, four Bronze and four Medallions for Excellence.

Four ITE medallists (including 2 medallists from ASEAN Skills Competition) will represent

Singapore at the International WorldSkills Competition to be held in London in October

2011.

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When We Believe, Dreams Become Reality

At ITE, we care. We care that some of our students may have come from disadvantaged

backgrounds and we see it as our mission to uplift and to better the life of every student

who comes to ITE. We celebrate their talents and their success. This passionate belief in

our students has, in turn, inspired others to believe in ITE and to come alongside to

collaborate with us.

Believing in ITE!

That more people now believe in the viability of an ITE education is evident from the

upward trend in the number of students who choose to study in ITE. The student

enrolment in ITE in FY2010 stood at 25,620, compared to 25,411 in FY2009. Student

Success and Student Satisfaction rates also remained high at 83% (compared to 82% in

FY2009) and 94% (same percentage in FY2009), respectively.

This belief in ITE is affirmed by ITE‟s enhanced image. According to the independently-

conducted 2010 Public Perception Study, ITE‟s Brand Equity Index has improved

significantly, from 34% in 1997, to 60% in 2009 and 69% in 2010.

ITE‟s part-time programmes drew 18,823 responses in FY2010. The smaller intake for

certificate courses was expected as more school leavers joining the workforce now

possess at least a post-secondary education. However, the demand for short courses for

professional and personal development continued to be strong. Overall, feedback for our

part-time programmes was consistently good. For FY2010, the Participant Satisfaction

Rate remained high at 97%.

Remaining on Top

To enhance the attractiveness of ITE education, 16 new courses were introduced in 2010,

bringing the total number of ITE courses offered to 89. Among these courses were the

Technical Engineer Diploma courses in Automotive Engineering (ITE‟s second Diploma

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programme); Higher Nitec courses in Beauty and Spa Management, Facility Systems

Design, Mobile Unified Communications and Visual Merchandising; and Nitec courses in

Asian Culinary Arts, Hair Services (Hair & Scalp Therapy), Opticianry and Rapid Transit

Technology. The diverse range of courses from 11 sectors underscore the role played by

ITE in supporting the growth and development of Singapore‟s economy.

Icing on the Cake

The results speak well of ITE‟s efforts. In FY2010, our graduates enjoyed an employment

rate of 88%, an improvement of four percentage points over FY2009. The starting gross

mean monthly salary also increased from $1,391 (FY2009) to S$1,498, reflecting not only

the improvement in the Singapore economy, but also the excellent career prospects of

ITE graduates. Some 22% (up from 20% in FY2009) of ITE graduates did very well in

their studies and progressed to full-time diploma courses at the five polytechnics. Many of

them attribute their success to ITE‟s caring lecturers and conducive learning environment.

Many employers also provided positive feedback on the quality of ITE graduates.

83% Student Success

22% Progression Rate to Polytechnics

12,409 Graduates

94% Student Satisfaction

88% Graduate Employment

$1,498 Gross Mean Monthly Salary

Shining Stars

Our passion for building self-belief in our students has allowed our students to shine. In

July 2010, out of some 12,409 ITE graduands, 700 were awarded Certificates of Merit and

164 were awarded Course Medals for excellent performance in their respective courses.

The most outstanding four among these were presented with Top Medals – the Lee Kuan

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Yew Gold Medal, the Tay Eng Soon Gold Medal, the Sng Yew Chong Gold Medal and the

Singapore Labour Foundation Gold Medal.

ITE also celebrated the success of 329 students at the annual ITE Student Achievers‟

Awards Presentation Ceremony in May 2010. These students had performed

exceptionally well in the fields of technology, sports, arts and music and other co-

curricular activities. The Lee Kuan Yew Award was presented to the 40 top student

achievers who impressed with their exemplary attributes, unwavering commitment and

spirit of innovation.

International Musical – West Side Story

As part of ITE‟s holistic education, ITE's Centre for Music and The Arts (CeMTA) provided

opportunities for students talented in music and the arts to hone their talents. CeMTA

staged the full-length, award-winning American musical, West Side Story, over four days,

from 24 to 27 March 2011, including two free shows for the community. The cast and crew

comprised wholly ITE students and alumni who were trained under the guidance of ITE

staff. For our students, it was a once-in-a-lifetime opportunity, and the experiences that

they garnered were invaluable. We received raving reviews from the audience who

enjoyed the outstanding performances by our students.

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Cast and crew

of „West Side

Story‟

celebrating

the successful

run of the

internationally

-acclaimed

musical

Sporting Spirit

ITE students were also stars in the sporting arena. Five ITE athletes flew the nation‟s flag

Captain of Singapore‟s Youth Olympic Games Hockey Team, Silas Abdul Razak; the only

female in the National Youth Olympic Games Cycling Squad, Nur Nasthasia Nadiah Binte

Abdul Nazeer; top scorer in the Singapore Boys‟ Handball Team, Koh Jing Li; volleyball

player, Marylyn Yeo Qian Lin; and weightlifting talent, Jamie Emma Wee.

A Global Perspective

To provide students with opportunities to develop a global perspective and an

international mindset, global education is a big part of the culture in ITE. In line with this, a

record-breaking 3,296 students or 27% of our student cohort ventured overseas under the

Global Education Programme through exchange programmes, industry attachment and

community service, as well as cultural and sports activities. The scheme leverages on

ITE‟s network of worldwide partners in the Global Education Network, which comprises

Australia, Canada, and USA, corporate MOU partners in France, Germany and Hong

Kong, as well as our Alumni chapters in China and Malaysia. The invaluable experience

gained from being exposed to developments outside Singapore has played a significant

role in boosting their confidence and helping them to dream bigger.

Then Senior Minister

Goh Chok Tong,

together with ITE

Senior Management,

torch bearers,

officials and

grassroots leaders,

celebrating the

lighting of the Youth

Olympic Flame at ITE College East

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Global Education Programme (GEP)

A Helping Hand from our Alumni

Our Alumni Engagement Programmes kept bonds between our alumni and ITE alive, with

events such as the ITE Alumni Men and Women Soccer Tournaments, Bowling

Competition, ITE Scholars' Night, Nursing Night and even an Entrepreneurship Forum,

held in February 2011, for about 150 ITE alumni entrepreneurs, alumni, ITE management

and students.

The strong engagement of our alumni also has a spin-off on our students, with more

offers of attachment opportunities locally and overseas. In July 2010, the ITE Alumni

Association Overseas Chapter in Malaysia was inaugurated and will provide 132 overseas

industry attachment places for ITE students from 2010 to 2012. This brings the total

Alumni Overseas Chapters to four.

3,296 Students

27% of student cohort

23 countries

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Believing in the Extraordinary

Our achievements, especially in helping our students find their niche in life, are a

reflection of the extraordinary people we have at ITE. They live and breathe the ITE Care

Values – Integrity, Teamwork, Excellence and Care. It is their passion and

commitment to providing a world-class technical education to our students that has made

ITE a success story in Singapore.

Our People

As at 31 March 2011, the ITE staff strength stood at 2,505 staff, comprising 1,680

academic and 825 non-academic staff. The ratio of teaching staff to students was 1:15.

To maintain a high quality workforce, consistent and continual learning development is an

integral part of ITE‟s human resource policy. In FY2010, 88% of staff achieved at least

100 learning hours, at the cost of four per cent of payroll.

Sowing the Seeds of Growth

ITE remains committed in helping our staff grow. In addition to developmental

programmes for staff, ITE also implemented the Total System Capability initiative, since

2007, to enhance the professional capabilities of staff. In the three years since the

introduction of the initiative, 79% of ITE staff have attained the professional capability to

“Do” or “Lead” in industry projects or consultancy work. That‟s a significant 22 percentage

points higher than FY2009.

To grow inspiring leaders who would lead innovation, ITE also introduced the “REAL”

Leadership Learning Series in August 2010, where captains of industry and leaders with

vast organisational experience were invited to share their experiences and insights on

various facets of leadership based on the 2010 theme of Leading in Multiple Challenges.

Four such organisational learning sessions were organised in 2010 to build the leadership

capability of ITE‟s senior and middle management staff, as well as the management and

branch committees of the two ITE staff unions.

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In concert with the launch of our latest roadmap, ITE Innovate, ITE organised a

Technology Conference in September 2010, to explore the issue of ecosystems for

innovation. In addition, the conference served as the perfect platform for local institutes,

industry leaders, researchers and scientists to network and exchange ideas on emerging

technologies.

Our Gems

ITE staff produced commendable results for the year under review. Apart from the 129

staff who were promoted during the year for their services and innovations, a number of

them received awards in recognition of their exemplary work and dedicated service to ITE

and Singapore. These awards were:

National Day Awards 2010 Awarded to 11 ITE staff National Day Awards 2010 – Long Service Medals Awarded to 68 ITE staff Excellent Service Award (EXSA) 2010 Awarded to 25 ITE staff ITE Teacher Award 2010 Awarded to 12 ITE staff ITE Long-Service Award 2010 Awarded to 333 ITE staff ITE Service Star Award 2010 Awarded to 10 ITE staff ITE Outstanding Leader Award 2010 Awarded to 7 ITE staff ITE Outstanding Facilitator Award 2010 Awarded to 6 ITE staff ITE Outstanding Project Award 2010 Awarded to 150 ITE teams ITE ExCEL Establishment Award 2010 Awarded to 2 ITE establishments

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Standing United

ITE enjoys excellent relations with its two staff unions, the Union of ITE Training Staff

(UITS) and the ITE Administrative & Ancillary Staff Branch of the Amalgamated Union of

Public Employees (AUPE).

To show our appreciation of the unions, a Service Appreciation Award was presented to

deserving union leader, Mr Teo Yock Ngee, then General Secretary of AUPE, at the ITE

Awards Presentation Ceremony on 29 October 2010. This was in appreciation of his

outstanding contributions towards a healthy industrial relations climate.

In addition, the annual ITE Management-Union Games were held on 26 November 2010.

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Believing Propels Us Ahead

Propelled by the ITE Innovate roadmap, ITE is ready to translate its new slate of strategic

programmes and plans into tangible benefits for its students, partners and stakeholders.

In FY2011, 11 strategic programmes have been proposed, nine of which were inspired by

ITE Innovate. These programmes revolve around the theme of Inspiring Innovations for

Excellence. ITE‟s agenda for 2011 also revolves around six sub-themes. These are:

To Enhance the Value and Delivery of ITE Education through new products

and courses for the changing economy, and by developing colleges of the future

imbued with an authentic learning environment;

To Inspire Student Excellence and Success by promoting student participation

in innovation and enterprise programmes, and student branding;

To Extend Our Global Footprint by renewing ITE‟s partnership with the Ministry

of Education, Youth and Sports (KM), Baden- Württemberg, Germany; Southern

Alberta Institute of Technology Polytechnic, Canada; and Global Education

Network Partners in Australia, USA and Canada; and by signing new Memoranda

of Understanding with the largest TAFE Institution in Western Australia,

Challenger Institute of Technology;

To Enhance Workplace Relevance by offering flexible CET certifications and

enhancing workplace training schemes;

To Inspire New Peaks of Excellence by aspiring towards achieving the

Singapore Quality Award (Special Commendation); and

To Strengthen Organisational Profile and Staff Capability through joint

industry projects and applications, establishing the ITE Staff Academy, and

preparing for the 20th Anniversary Celebration of Post-Secondary Vocational and

Technical Education in 2012.

28

The agenda listed above is ultimately aimed at one goal – to bring about positive change

in every student.

In line with the agenda, there will be new tie-ups and sharing of expertise with industry

and institutional partners in 2011 to create new courses to meet changing industry needs.

There will be innovations in the way we teach to make learning more interesting. Also, to

provide greater focus and opportunities for staff in developing their core competencies

and professionalism, a new ITE Staff Academy is being set up.

With the achievements and strong foundation laid over the last decade, ITE is well poised

in its quest to be A Global Leader in Innovations in Technical Education.

29

STATEMENTSFINANCIALInstitute of Technical EducationFor the year ended 31 March 2011

Institute information

Institute registration number

T08GB0022B

Registered office

10 Dover Drive Singapore 138683

Director and Chief Executive Officer

Mr Bruce Poh Geok Huat

Chairman Mr Bob Tan Beng Hai

Board Secretary

Ms Sabrina Loi

Independent auditor Foo Kon Tan Grant Thornton LLP Public Accountants and Certified Public Accountants 47 Hill Street #05-01 Singapore Chinese Chamber of Commerce & Industry Building Singapore 179365

Institute of Technical Education 1

Contents

Page

Statement by Board of Governors 1 Independent auditor’s report 2 Statements of financial position 4 Consolidated statement of comprehensive income 5 Statement of comprehensive income 7 Consolidated statement of changes in funds and reserves 9 Statement of changes in funds and reserves 10 Consolidated statement of cash flows 11 Notes to the financial statements 12


Statement by Board of Governors For the financial year ended 31 March 2011 In our opinion: (a) the financial statements of the Institute of Technical Education (the “Institute”) and its subsidiaries

(the “Group”) are drawn up so as to give a true and fair view of the state of affairs of the Group and of the Institute as at 31 March 2011 and the consolidated statement of comprehensive income, changes in funds and reserves and cash flows of the Group and the statement of comprehensive income and changes in funds and reserves of the Institute for the year ended on that date in accordance with the provisions of the Institute of Technical Education Act, Chapter 141A (the “Act”) and Statutory Board Financial Reporting Standards; and

(b) at the date of this statement there are reasonable grounds to believe that the Institute will be able to

pay its debts as and when they fall due.

On behalf of the Board

................................................................................ ............................................................................ MR BRUCE POH GEOK HUAT MR BOB TAN BENG HAI Director and CEO Chairman

Dated:

2

Independent auditor’s report to the members of the Board

of Governors of Institute of Technical Education

Report on Financial Statements We have audited the accompanying financial statements of Institute of Technical Education (the “Institute”), and its subsidiaries (“the Group”), which comprise the statements of financial position of the Group and the Institute as at 31 March 2011, the statements of comprehensive income, statements of changes in funds and reserves of the Group and of the Institute and consolidated statement of cash flows of the Group for the year then ended, and a summary of significant accounting policies and other explanatory notes. Management’s responsibility for the financial statements The Institute’s management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Institute of Technical Education Act, Chapter 141A (the “Act”) and Statutory Board 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 profit and loss accounts and balance sheets 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 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 the 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.

3

Independent auditor’s report to the members of Institute of Technical Education (Cont’d) Opinion In our opinion, the consolidated financial statements of the Group and the statement of financial position, statement of comprehensive income and statement of changes in funds and reserves of the Institute are properly drawn up in accordance with the provisions of the Act and Statutory Board Financial Reporting Standards so as to so give a true and fair view of the state of affairs of the Group and of the Institute as at 31 March 2011 and the results, changes in funds and reserves of the Group and of the Institute and cash flows of the Group for the year ended on that date. Report on other legal and regulatory requirements In our opinion: (a) the accounting and other records required by the Act to be kept by the Institute have been

properly kept in accordance with the provisions of the Act; and (b) the accounting and other records of those subsidiaries incorporated in Singapore of which we are

the auditors have been properly kept in accordance with the Singapore Companies Act, Chapter 50.

During the course of our audit, nothing came to our notice that caused us to believe that the receipt, expenditure and investment of monies and the acquisition and disposal of assets by the Institute during the financial year have not been in accordance with the provisions of the Act. Other Matters The financial statements for the financial year ended 31 March 2010 were audited by another firm of auditors whose audit report dated 7 July 2010 expressed an unqualified opinion on those financial statements.

Foo Kon Tan Grant Thornton LLP Public Accountants and Certified Public Accountants

Singapore,


The annexed notes form an integral part of and should be read in conjunction with these financial statements.

Statements of financial position as at 31 March 2011 The Group The Institute 2011 2010 2011 2010 1996 Note $’000 $’000 $’000 $’000 Assets Non-Current Property, plant and equipment 3 546,725 525,497 546,353 525,014 Prepaid leases 4 178,722 115,826 178,722 115,826 Intangible assets 5 8,586 5,899 8,564 5,837 Subsidiaries 6 - - - -

Other financial assets 7 3,881 3,811 3,881 3,811 Deferred tax assets - 22 - -

737,914 651,055 737,520 650,488 Current Trade and other receivables 8 7,012 3,993 6,334 4,094 Operating grants receivable 9 19,048 11,909 19,048 11,909 Development grants receivable 18 355 - 355 - Other grants receivable 19 282 - 282 - Other financial assets 7 - 9,969 - 9,969 Cash and cash equivalents 10 309,255 267,526 293,439 254,481

335,952 293,397 319,458 280,453

Total assets 1,073,866 944,452 1,056,978 930,941

Capital and Funds Capital account 90,000 11 4,297 4,297 4,297 4,297 Fair value reserve 12 181 111 181 111 Accumulated surplus

General Fund 13a 169,578 164,715 165,891 162,670 Restricted Fund 13b 35,195 33,418 27,931 27,172

204,773 198,133 193,822 189,842

Total capital and other funds 209,251 202,541 198,300 194,250

Liabilities Non-current Amount due to PPP Co. 15 170,068 178,247 170,068 178,247 Deferred capital grants 16 588,066 507,256 587,738 506,803 Provision for retirement benefits 17 1,847 2,066 1,847 2,066

759,981 687,569 759,653 687,116 Current Trade and other payables 14 74,417 31,080 72,929 30,214 Amount due to PPP Co. 15 21,367 15,480 21,367 15,480 Provision for retirement benefits 17 387 402 387 402 Deferred income 4,553 2,393 2,106 1,950 Development grants received In advance 18 97 117 - 90 Operating grants received in advance 9 2,002 3,670 443 239 Other grants received in advance 19 1,793 1,200 1,793 1,200 Current tax payable 18 - - -

104,634 54,342 99,025 49,575

Total funds and liabilities 1,073,866 944,452 1,056,978 930,941

Net assets of trust funds Technical Education Promotion Fund 966 1,058 966 1,058 ITE Education Fund 5,000 5,325 5,000 5,325 Basic Education for Skills Training Fund - 563 - 563 Worker Improvement Through Secondary Education Fund - 1,013 - 1,013 Apprenticeship Programme Fund 1,227 2,218 1,227 2,218 The Enterprise Challenge Fund 146 179 146 179

20 7,339 10,356 7,339 10,356


Financial statements for the year ended 31 March 2011


Consolidated statement of comprehensive income for the financial year ended 31 March 2011 General fund Restricted funds Total The Group 2011 2010 2011 2010 2011 2010 1996 Note $’000 $’000 $’000 $’000 $’000 $’000 INCOME Course fees 9,906 9,027 3,464 3,792 13,370 12,819 Examination fees 509 519 1,204 1,518 1,713 2,037 Donations 311 396 302 324 613 720 Liquidated damages 115 70 - - 115 70 Interest income 21 1,004 551 114 86 1,118 637 Other income 22 1,661 2,581 3,098 2,462 4,759 5,043 Other grants 287 27 3,242 2,592 3,529 2,619

13,793 13,171 11,424 10,774 25,217 23,945 Less: Inter-fund transaction - (184)

25,217 23,761

Operating expenditure Manpower costs 23 255,756 210,537 4,492 4,401 260,248 214,938 Depreciation of property, plant and equipment 3 66,434 44,683 777 426 67,211 45,109 Prepaid lease expenses charged to income and expenditure 4 10,552 9,045 - - 10,552 9,045 Amortisation of intangible assets 5 3,407 1,280 76 41 3,483 1,321 Property, plant and equipment and intangible assets written off 1,148 77 29 4 1,177 81 Repair and maintenance 10,787 11,347 65 81 10,852 11,428 Public utilities 9,957 7,149 128 199 10,085 7,348 Grants-in-aid 24 460 466 - - 460 466 Supplies and materials 19,584 12,857 699 818 20,283 13,675 Other expenditure 25 39,996 13,610 7,028 6,461 47,024 20,071

418,081 311,051 13,294 12,431 431,375 323,482 Less: inter-fund transaction - (184)

431,375 323,298

Deficit before government grants (404,288) (297,880) (1,870) (1,657) (406,158) (299,537) Government grants Operating grants 9 315,672 256,454 3,688 4,424 319,360 260,878 Development grants 18 11,936 2,691 - - 11,936 2,691 Deferred capital grants amortised 16 81,543 55,082 - - 81,543 55,082

Surplus after government grants 4,863 16,347 1,818 2,767 6,681 19,114 Taxation 26 - - (41) (26) (41) (26)

Net surplus for the year 4,863 16,347 1,777 2,741 6,640 19,088




Consolidated statement of comprehensive income (Cont’d) for the financial year ended 31 March 2011

General fund Restricted funds Total The Group 2011 2010 2011 2010 2011 2010 1996 Note $’000 $’000 $’000 $’000 $’000 $’000 Other comprehensive income Net change in fair value of available-for-sale financial assets 70 377 - - 70 377 Net change in fair value of available-for-sale financial assets transferred to net surplus - 36 - - - 36 Transfer of funds from ITE Education Fund - - - 747 - 747

Other comprehensive income for the year 70 413 - 747 70 1,160

Total comprehensive income for the year 4,933 16,760 1,777 3,488 6,710 20,248




Statement of comprehensive income for the financial year ended 31 March 2011 General fund Restricted funds Total The Institute 2011 2010 2011 2010 2011 2010 1996 Note $’000 $’000 $’000 $’000 $’000 $’000 INCOME Course fees 9,835 8,945 2,312 2,579 12,147 11,524 Examination fees 506 517 401 614 907 1,131 Donations 22 9 5 8 27 17 Liquidated damages 115 70 - - 115 70 Interest income 21 990 543 91 68 1,081 611 Other income 22 1,854 2,637 2,142 2,123 3,996 4,760 Other grants 287 25 2,137 2,096 2,424 2,121

13,609 12,746 7,088 7,488 20,697 20,234 Less: Inter-fund transaction - (184)

20,697 20,050

Operating expenditure Manpower costs 23 244,224 200,553 2,335 2,447 246,559 203,000 Depreciation of property, plant and equipment 66,298 44,512 757 407 67,055 44,919 Prepaid lease expenses charged to income and expenditure 4 10,552 9,045 - - 10,552 9,045 Amortisation of intangible assets 5 3,376 1,213 67 34 3,443 1,247 Property, plant and equipment and intangible assets written off 1,148 76 29 5 1,177 81 Repair and maintenance 10,400 10,989 42 66 10,442 11,055 Public utilities 9,753 6,968 89 169 9,842 7,137 Grants-in-aid 24 460 466 - - 460 466 Supplies and materials 19,277 12,171 662 759 19,939 12,930 Other expenditure 25 39,078 12,686 5,683 5,808 44,761 18,494

404,566 298,679 9,664 9,695 414,230 308,374 Less: inter-fund transaction - (184)

414,230 308,190

Deficit before government grants (390,957) (285,933) (2,576) (2,207) (393,533) (288,140) Government grants Operating grants 9 300,878 244,265 3,335 4,062 304,213 248,327 Development grants 18 11,926 2,600 - - 11,926 2,600 Deferred capital grants amortised 16 81,374 54,845 - - 81,374 54,845

Surplus after government grants 3,221 15,777 759 1,855 3,980 17,632 Taxation 26 - - - - - -

Net surplus for the year 3,221 15,777 759 1,855 3,980 17,632




Statement of comprehensive income (Cont’d) for the financial year ended 31 March 2011 General fund Restricted funds Total The Institute 2011 2010 2011 2010 2011 2010 1996 Note $’000 $’000 $’000 $’000 $’000 $’000 Other comprehensive income Net change in fair value of available-for-sale financial assets 70 377 - - 70 377 Net change in fair value of available-for-sale financial assets transferred to net surplus - 36 - - - 36 Transfer of funds from ITE Education Fund - - - 747 - 747

Other comprehensive income for the year 70 413 - 747 70 1,160

Total comprehensive income for the year 3,291 16,190 759 2,602 4,050 18,792




Consolidated statement of changes in funds and reserves for the financial year ended 31 March 2011

----- Accumulated surplus ----

Capital General Restricted Fair value

The Group account fund funds reserve Total

1996 Note $’000 $’000 $’000 $’000 $’000

At 1 April 2009 4,297 148,368 29,930 (302) 182,293

Total comprehensive income for the year Net surplus for the year - 16,347 2,741 - 19,088 Other comprehensive income Net change in fair value of available-for-sale financial assets - - - 377 377 Net change in fair value of available-for-sale financial assets transferred to net surplus - - - 36 36 Transfer of funds from ITE Education Fund - - 747 - 747

Total other comprehensive income - - 747 413 1,160

Total comprehensive income for the year - 16,347 3,488 413 20,248

At 31 March 2010 4,297 164,715 33,418 111 202,541

Total comprehensive income for the year

Net surplus for the year - 4,863 1,777 - 6,640

Other comprehensive income

Net change in fair value of available-for-sale financial assets - - - 70 70

Total other comprehensive income - - - 70 70


At 31 March 2011 4,297 169,578 35,195 181 209,251




Statement of changes in funds and reserves for the financial year ended 31 March 2011

----- Accumulated surplus ----

Capital General Restricted Fair value

The Institute account fund funds reserve Total

1996 Note $’000 $’000 $’000 $’000 $’000

At 1 April 2009 4,297 146,893 24,570 (302) 175,458

Total comprehensive income for the year Net surplus for the year - 15,777 1,855 - 17,632 Other comprehensive income Net change in fair value of available-for-sale financial assets - - - 377 377 Net change in fair value of available-for-sale financial assets transferred to net surplus - - - 36 36 Transfer of funds from ITE Education Fund - - 747 - 747

Total other comprehensive income - - 747 413 1,160


At 31 March 2010 4,297 162,670 27,172 111 194,250

Total comprehensive income for the year

Net surplus for the year - 3,221 759 - 3,980

Other comprehensive income

Net change in fair value of available-for-sale financial assets - - - 70 70

Total other comprehensive income - - - 70 70

Total comprehensive income for the year - 3,221 759 70 4,050

At 31 March 2011 4,297 165,891 27,931 181 198,300



Consolidated statement of cash flows for the financial year ended 31 March 2011 Year ended Year ended 31 March 2011 31 March 2010 $’000 $’000 Cash Flows from Operating Activities Deficit before government grants and income tax (406,158) (299,537) Adjustments for: Depreciation of property, plant and equipment 67,211 45,109 Amortisation of intangible assets 3,483 1,321 Prepaid lease expenses charged to surplus or deficit 10,552 9,045 Property, plant and equipment written off 1,178 81 Intangible assets written off 78 - Net loss/(gain) on financial assets at fair value through profit or loss 203 (1,406) Provision for retirement benefits 164 22 Gain from sale of available-for-sale financial assets - (5) Gain from sale of property, plant and equipment (28) (14) Bad debts written off 142 109 Allowance for impairment of trade receivables made/(written-back) 7 (124) Interest income (1,118) (637) Dividend income (187) (200)

Operating deficit before working capital changes (324,473) (246,236) Increase in trade and other receivables (3,168) (608) Increase in trade and other payables and deferred income 45,497 14,940

Cash used in operations (282,144) (231,904) Retirement benefits paid (398) (413) Income tax refunded - 40

Net cash flows used in operating activities (282,542) (232,277) Cash Flows from Investing Activities Purchase of property, plant and equipment (89,617) (20,019) Purchase of intangible assets (6,248) (2,541) Purchase of leasehold lands (73,448) - Proceeds from sale of available-for-sale financial assets - 505 Proceeds from sale of financial asset at fair value through profit or loss 10,314 (1,000) Proceeds from sale of property, plant and equipment 28 14 Interest received 1,118 637 Dividend income 187 200

Net cash used in investing activities (157,666) (22,204) Cash Flows from Financing Activities Repayment of amount due to PPP Co (2,292) - Development grants received from Government 142,098 11,599 Operating grants received from Government 342,369 280,298 Other grants received in advance from Government 312 1,200 Transfer of funds from ITE Education Fund - 747

Net cash flows from financing activities 482,487 293,844 Net increase in cash and cash equivalents 42,279 39,363 Cash and cash equivalents at beginning of year 266,976 227,613

Cash and cash equivalents at end of year (Note 10) 309,255 266,976


Notes to the financial statements for the financial year ended 31 March 2011

1 General information

The financial statements of Institute of Technical Education (the “Institute”) for the year ended 31 March 2011 were authorised for issue in accordance with a resolution of the Board of Governors on the date of the Statement by the Board of Governors.

The Institute was established on 1 April 1992 under the Institute of Technical Education Act (Chapter 141A), is domiciled in Singapore. The Institute is under the purview of the Ministry of Education (“MOE”). As a statutory board, the Institute is subject to the directions of the MOE and is required to implement policies and policy changes as determined by its supervisory ministry. The Institute’s registered office and place of business is located at 10 Dover Drive, Singapore 138683. The Institute is principally engaged in the development, promotion and provision of technical training programmes for school leavers, and continuing education and training programmes for upgrading and retraining the existing workforce in Singapore. The principal activities of the subsidiaries are set out in Note 6. The consolidated financial statements for the financial year ended 31 March 2011 relate to the Institute and its subsidiaries (together referred to as the “Group”).

2(a) Basis of preparation

The financial statements have been prepared in accordance with the provisions of the Institute of Technical Education Act, Chapter 141A and Statutory Board Financial Reporting Standards (“SB-FRS”). SB-FRS include Statutory Board Financial Reporting Standards Interpretations of SB-FRS and SB-FRS Guidance Notes as promulgated by the Accountant-General. The financial statements have been prepared under the historical cost convention, except as disclosed in the accounting policies below.

Significant accounting estimates and judgements The preparation of the financial statements in conformity with SB-FRS requires the use of judgements, 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 revenue and expenses during the financial period. Although these estimates are based on management’s best knowledge of current events and actions, actual results may differ from those estimates.

The critical accounting estimates and assumptions used and areas involving a high degree of judgement are described below:

Depreciation of property, plant and equipment The cost of property, plant and equipment is depreciated on a straight-line basis over their useful lives. Management estimates the useful lives of these property, plant and equipment to be within 3 to 30 years except for leasehold building of ITE College Central (Balestier, Bishan, MacPherson, Tampines and Yishun) and ITE Headquarter which the management has revised the estimated useful life from the current remaining useful life of between 9 to 13 year to 3 years. The additional depreciation charge arising from the change in useful life is about $25,413,000.


Notes to the Financial statements for the financial year ended 31 March 2011

Depreciation of property, plant and equipment (Cont’d) The carrying amounts of the Group’s and the Institute’s property, plant and equipment at 31 March 2011 are $546,725,000 (2010 - $525,497,000) and $546,353,000 (2010 - $525,014,000). Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised. The accounting policies used by the Group and the Institute have been applied consistently to all periods presented in these financial statements. Allowance for bad and doubtful debts Allowances 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 identification 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 carrying value of trade and other receivables and doubtful debt expenses in the period in which such estimate has been changed.

2(b) Interpretations and amendments to published standards effective in 2010

On 1 April 2010, the Institute adopted the new or amended SB-FRS and INT SB-FRS that are mandatory for application from that date. This includes the following SB-FRS and INT SB-FRS which are relevant to the Institute as a single entity: Reference Description SB-FRS 27 (revised) Consolidated and separate financial statements SB-FRS 101 (revised) First-Time adoption of financial reporting standards SB-FRS 103 (revised) Business combinations INT SB-FRS 117 Distributions of non-cash assets to owners INT SB-FRS 118 Transfer of assets from customers Improvement to SB-FRSs 2009 The adoption of these new/revised SB-FRS and INT SB-FRS did not result in substantial changes to the Fund’s accounting policies nor any significant impact on these financial statements of the current or prior periods.

2(c) SB-FRS and INT SB-FRS not yet effective

At the date of authorisation of these financial statements, the following SB-FRSs and INT SB-FRSs were issued but not effective: Reference

Description

Effective date (annual periods

beginning on or after)

SB-FRS 24 (revised) Related Party Disclosure 01.01.2011 Amendments to SB-FRS 101 Limited Exemption from Comparative 01.07.2010 FRS 107 Disclosure for First-time Adopters Amendments to INT SB-FRS 114 Prepayments of a Minimum Funding 01.01.2011 INT SB-FRS 115 Agreements for Construction of Real Estate 01.01.2011



2(c) SB-FRS and INT SB-FRS not yet effective (Cont’d)

Reference

Description

Effective date (annual periods

beginning on or after)

INT SB-FRS 119 Extinguishing Financial Liabilities with Equity 01.07.2010 Instruments Improvements to SB-FRSs 2010 01.07.2010/ 01.04.2011 The Institute does not anticipate that the adoption of the above SB-FRS and INT SB-FRS in future periods will have a material impact on the financial statements of the Institute in the period of their initial adoption.

2(d) Summary of significant accounting policies

Consolidation The financial statements of the Group include the financial statements of the Institute and its subsidiaries make up to the end of the financial year. Information on its subsidiaries is given in Note 6. All inter-company balances and significant inter-company transactions and resulting unrealised profits or losses are eliminated on consolidation and the consolidated financial statements reflect external transactions and balances only. The result of subsidiaries acquired or disposed of during the financial year are included or excluded from the consolidated profit or loss from the effective date in which control is transferred to the Group or in which control ceases, respectively. Business combinations are accounted for using the acquisition method. The consideration transferred for an acquisition is measured as the fair value of the assets given, equity instruments issue and liabilities incurred or assumed at the date of acquisition. 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. Costs attributable to the acquisition are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measure initially at their values at the acquisition date. Any excess of the consideration transferred, the amount of any non-controlling interests in the acquiree and the acquisition date fair value of previous equity interest in the acquiree over the fair value of the net identifiable assets acquired represent goodwill. In instances where the latter amount exceeds the former, the excess is recognised as a gain from bargain purchase in the profit or loss on the date of acquisition. Property, plant and equipment and depreciation Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Depreciation is computed utilising the straight-line method to write off the cost of these assets over their estimated useful lives as follows: Building on vested land 27 to 30 years Building on leasehold land 21 to 28 years Renovations 5 years Computers hardware 3 to 5 years Machinery and equipment 8 to 20 years Fixtures, fittings and office equipment 5 to 10 years Motor vehicles 8 years Vested land which has indefinite life is not depreciated. No depreciation is provided on project-in-progress, assets are depreciated from the month the asset is completed and held ready for use.



Property, plant and equipment and depreciation (Cont’d) The cost of property, plant and equipment includes expenditure that is directly attributable to the acquisition of the items. The cost of project-in-progress includes cost of material, direct labour, sub-contract cost and capitalised borrowing costs. Dismantlement, removal or restoration costs are included as part of the cost of property, plant and equipment if the obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring or using the asset. Subsequent expenditure relating to property, plant and equipment that have 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 Institute and the cost can be reliably measured. Other subsequent expenditure is recognised as an expense during the financial year in which it is incurred. For acquisitions and disposals during the financial period, depreciation is provided from the month of acquisition and to the month before disposal respectively. Fully depreciated assets are retained in the books of accounts until they are no longer in use. Depreciation methods, useful lives and residual values are reviewed, and adjusted as appropriate, at end of each reporting period as a change in estimates. Prepaid lease Prepaid lease represents the premium paid on leasehold land. Prepaid leases are stated at cost less accumulated amortisation and impairment loss. They are amortised in surplus or deficit using the straight-line method over the respective lease term periods of between 21 and 30 years except for leasehold land at ITE College Central (Balestier, Bishan, MacPherson, Tampines and Yishun) and ITE Headquarter which is depreciated over the remaining period of useful life of 3 years. The additional amortisation charge arising from the change in useful life is about $2,428,000.

Intangible assets Intangible assets are accounting software which is not an integral part of the related hardware. Intangible assets have finite lives and are measured at cost less accumulated amortisation and impairment losses. Amortisation is calculated over the cost of the asset, less its residual value. Amortisation is recognised in profit or loss on a straight-line basis over their estimated useful lives of 3 years, from the date on which they are available for use. Amortisation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. Subsidiaries A subsidiary is an entity controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether there is control. In the Institute’s separate financial statements, shares in subsidiaries are stated at cost less allowance for any impairment losses on an individual subsidiary basis.



Financial assets Financial assets, other than hedging instruments, can be divided into the following categories: financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables and available-for-sale financial assets. Financial assets are assigned to the different categories by management on initial recognition, depending on the purpose for which the assets were acquired. The designation of financial assets is re-evaluated and classification may be changed at the reporting date with the exception that the designation of financial assets at fair value through profit or loss is not revocable. All financial assets are recognised on their trade date - the date on which the Fund commits to purchase or sell the asset. Financial assets are initially recognised at fair value, plus directly attributable transaction costs except for financial assets at fair value through profit or loss, which are recognised at fair value. Derecognition of financial instruments occurs when the rights to receive cash flows from the investments expire or are transferred and substantially all of the risks and rewards of ownership have been transferred. An assessment for impairment is undertaken at least at end of each reporting period whether or not there is objective evidence that a financial asset or a group of financial assets is impaired. Non-compounding dividend and other cash flows resulting from holding financial assets are recognised in profit or loss when received, regardless of how the related carrying amount of financial assets is measured. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial asset that are either classified as held for trading or are designated by the Institute to be carried at fair value through profit or loss upon initial recognition. In addition, derivative financial instruments that do not qualify for hedge accounting are classified as held for trading. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of the end of reporting period. Subsequent to initial recognition, the financial assets included in this category are measured at fair value with changes in fair value recognised in profit or loss. Available-for-sale financial assets Available-for-sales financial assets include non-derivative financial assets that do not qualify for inclusion in any of the other categories of financial assets. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the end of reporting period. All financial assets within this category are subsequently measured at fair value with changes in value recognised in equity, net of any effects arising from income taxes, until the financial assets is disposed of or is determined to be impaired, at which time the cumulative gains or losses previously recognised in equity is included in the profit or loss for the period. When a decline in the fair value of an available-for-sale financial asset has been recognised directly in equity and there is objective evidence that the asset is impaired, the cumulative loss that had been recognised directly in equity shall be removed from the equity and recognised in the profit or loss even though the financial asset has not been derecognised. The amount of the cumulative loss that is removed from equity and recognised in profit or loss shall be the difference between the acquisition cost (net of any principal repayment and amortisation) and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss. Impairment losses recognised in profit or loss for equity investments classified as available-for-sale are not subsequently reversed through profit or loss. Impairment losses recognised in profit or loss for debt instruments classified as available-for-sale are subsequently reversed in profit or loss if an increase in the fair value of the instrument can be objectively related to an even occurring after the recognition of the impairment loss. Impairment losses recognised in a previous interim period in respect of available-for-sale equity investments are not reversed even if the impairment losses would have been reduced or avoided had the impairment assessment been made at a subsequent reporting period or end of reporting period.



Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Fund provides money, goods or services directly to a debtor with no intention of trading the receivables. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period. These are classified as non-current assets. Loans and receivables include other receivables. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. If there is objective evidence that the asset has been impaired, the financial asset is measured at the present value of the estimated future cash flows discounted at the original effective interest rate. Impairment losses are reversed in subsequent periods when an increase in the asset’s recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to a restriction that the carrying amount of the asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. The impairment or write back is recognised in profit or loss.

Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank deposits which are subject to an insignificant risk of changes in value. Funds Assets and liabilities of general fund and restricted funds are pooled in the statement of financial position. General fund Income and expenditure relating to the main activities of the Institute are accounted for in this fund. Restricted funds Restricted funds comprise specific funds set up to account for the contributions received for specific purposes as detailed in Note 13 to the financial statements. Income and expenditure relating to specific funds are accounted for in the “Restricted Funds” column in profit or loss. Trust funds Trust funds are funds which the Institute acts as a custodian, trustee manager or agent but does not exercise control over. These funds are set up to account for contributions received from the Government of Singapore and external sources for specified project or based on a specified agreement. Upon completion of the project or termination of the agreement, the fund balance is either distributed in accordance with an agreement or deed, returned to contributors, or distributed as directed by a party other than the Institute. The residual funds do not belong to the Institute. Trust funds are excluded from the consolidated statement of comprehensive income, changes in funds and reserves. The trust funds’ statement of financial position is presented at the bottom of the statement of financial position with disclosures in Note 20 to the financial statements. Grants Government grants and contributions from other organisations are recognised at their fair value where there is reasonable assurance that the grants will be received and all required conditions will be complied with. Government grants related to assets over which the Institute has discretionary management power are taken directly to the deferred capital grants account, or to surplus or deficit for assets which are written off in the year of purchase.



Grants (Cont’d) Other government grants and contributions from other organisations for the purchase of property, plant and equipment or to finance research or capital projects are taken to the grants received in advance account upon receipt. They are transferred to the deferred capital grants account upon the utilisation of the grants for purchase of assets which are capitalised, or to surplus or deficit for purchase of assets which are written off in the year of purchase. Donations of depreciable assets are taken directly to surplus or deficit in the period it is received or receivable when the Group has obtained control of the donation or the right to receive the donation, the amount of the donation can be measured reliably and it is probable that the economic benefits comprising the donation will flow to the Group. Deferred capital grants are recognised in surplus or deficit over the periods necessary to match the depreciation, write off and/or impairment loss of the assets purchased or donated with the related grants. Upon the disposal of property, plant and equipment, the balance of the related deferred capital grants is recognised in surplus or deficit to match the net book value of the property, plant and equipment written off. Government grants to meet the current year’s operating expenses are recognised as income in the same year these operating expenses were incurred. Government grants are accounted for on an accruals basis. Capital grants for the acquisition of non-depreciable assets are taken to the Capital Account. Jobs credit scheme Cash grants received from the government in relation to the Jobs Credit Scheme are recognised as income upon receipt. Such grants are provided to defray the wage costs incurred by the Group and are offset against staff costs in the consolidated financial statements. Financial liabilities The Group’s financial liabilities include accruals trade and other payables. Financial liabilities are recognised when the Group becomes a party to the contractual agreements of the instrument. All interest-related charges are recognised as an expense in “finance cost” in profit or loss. Financial liabilities are derecognised if the Group’s obligations specified in the contract expire or are discharged or cancelled. Other payables are initially recognised at fair value, and subsequently measured at amortised cost, using the effective interest method. Provisions Provisions are recognised when the Group and the Institute have 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 a reliable estimate can be made of the amount of the obligation. Present obligations arising from onerous contracts are recognised as provisions. The Trustees review provisions annually and where in their opinion, the provision is inadequate or excessive, due adjustment is made. If the effect of the time value of money is material, provisions are discounted using a current pretax 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.



Leases Finance leases Where assets are financed by lease agreements that give rights approximating to ownership, the assets are capitalized as if they had been purchased outright at values equivalent to the lower of the fair values of the leased assets and the present value of the total minimum lease payments during the periods of the leases. The corresponding lease commitments are included under liabilities. The excess of lease payments over the recorded lease obligations are treated as finance charges which are amortised over each lease to give a constant effective rate of charge on the remaining balance of the obligation. Where assets under finance lease, the present value of the lease payment is recognized as amount due to PPP Co. The difference between the gross payment and the present value of the amount due to PPP Co is recognized as finance costs. The leased assets are depreciated on a straight-line basis over their estimated useful lives as detailed in the accounting policy on “Property, plant and equipment”. Employee benefits Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as staff and related costs in surplus or deficit in the periods during which services are rendered by employees. Defined benefit plans Certain officers of the Institute are entitled to benefits under the provisions of the Pension Act, Chapter 225 in respect of their services with the Institute. A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s net obligation in respect of defined benefit pension plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods that benefit is discounted to determine the present value. Any unrecognised past service costs and the fair value of any plan assets are deducted. The discount rate is the yield at the end of the reporting period on Singapore government bonds that have maturity dates approximating the terms of the Group’s obligations. The calculation is performed annually by the Institute using the projected unit credit method. In order to calculate the present value of economic benefits, consideration is given to any minimum funding requirements that apply to any plan in the Group. An economic benefit is available to the Group if it is realisable during the life of the plan, or on settlement of the plan liabilities. The Group recognises all actuarial gains and losses arising from defined benefit plans in surplus or deficit. Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Key management personnel Key management personnel of the Group are those persons having the authority and responsibility for planning, directing and controlling the activities of the Group. The Chief Executive Officer, Deputy Chief Executive Officers, Directors and Principals are considered key management personnel. Finance costs Finance costs comprise unwinding of the discount on provisions. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in surplus or deficit using the effective interest method.



Income taxes The Institute is a tax-exempted Institution under the provisions of the Income Tax Act (Chapter 134, 2004 Revised Edition). The subsidiaries of the Institute are subject to local income tax legislation. Current income tax for current and prior periods is recognised at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of reporting period. Deferred income tax is recognised for all 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 arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting or taxable profit or loss at the time of the transaction. A deferred income tax liability is recognised on temporary differences arising on investments in subsidiaries, associates and joint ventures, 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. A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. Deferred income tax is measured: (i) at 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 substantively enacted by the end of the reporting period; and

(ii) based on the tax consequence that will follow from the manner in which the Group expects, at the

end of the reporting period, to recover or settle the carrying amounts of its assets and liabilities. Current and deferred income taxes are recognised as income or expense in the profit or loss, except to the extent that the tax arises from a business combination or a transaction which is recognised either in other comprehensive income or directly in equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition. Impairment of non-financial assets The carrying amounts of the Group’s and the Institute’s non-financial assets subject to impairment are reviewed at end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. If it is not possible to estimate the recoverable amount of the individual asset, then the recoverable amount of the cash-generating unit to which the assets belongs will be identified. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. All individual assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss, if any, is recognised for the amount by which the asset’s or cash-generating unit’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell and value in use, based on an internal discounted cash flow evaluation. All assets are subsequently reassessed for indication that an impairment loss previously recognised may no longer exist.



Impairment of non-financial assets (Cont’d) An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount or when there is an indication that the impairment loss recognised for the asset no longer exists or decreases. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined if no impairment loss had been recognised. Income recognition Income is recognised to the extent that is probable that the economic benefits will flow to the Institute and can be reliably measured and meet the following specific recognition criteria: Course fees Tuition and other fees are recognised on time apportionment basis, over the period of the academic year. Examination fees Examination fees are recognised on time apportionment basis, over the period of the academic year. Donations Donations (cash or assets) are recognised in surplus or deficit upon receipt. Other income Rental of premises and other income are recognised on an accrual basis. Interest income Interest income comprises interest income on funds invested. Interest income is recognised as it accrues, using the effective interest method. Foreign currencies Functional currency Items included in the financial statements of each subsidiary in the Group are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to the Group (the “functional currency”). The financial statements of the Group are presented in Singapore dollars, which is also the functional currency of the Institute. Transactions and balances Foreign currency transactions are measured and recorded in the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the closing rates ruling at the respective end of the reporting period. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates on monetary assets and liabilities denominated in foreign currency are recognised in profit or loss. 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 at fair value in foreign currency are translated using the exchange rates at the date when the fair value was determined. Financial instruments Financial instruments carried on the statement of financial position include cash and cash equivalents, all receivables and payables. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item.

Details of the Institute's financial risk management are set out in Note 29.



3 Property, plant and equipment

Buildings Fixtures, The Group Buildings on Machinery fittings Vested on vested leasehold Computer and and office Motor Project-in- land land land Renovations hardware equipment equipment vehicles progress Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cost

At 1 April 2009 1,581 34,049 488,692 8,898 37,747 99,175 9,557 172 97,422 777,293 Additions - - - 65 3,874 10,124 346 - 102,819 117,228 Disposals - - - - - - (4) - - (4) Written off - - - - (1,890) (1,642) (578) - - (4,110) Reclassifications - - - 507 - - - - (507) -

At 31 March 2010 1,581 34,049 488,692 9,470 39,731 107,657 9,321 172 199,734 890,407

Additions - - - 440 3,758 15,379 1,006 72 68,962 89,617

Disposals - - - - (771) (1,618) (15) (49) - (2,453)

Written off - - - - (3,766) (16,827) (3,339) - (1) (23,933)

Reclassifications - - 212,473 1,392 - 29 - - (213,894) -

At 31 March 2011 1,581 34,049 701,165 11,302 38,952 104,620 6,973 195 54,801 953,638

Accumulated depreciation

At 1 April 2009 - 13,742 197,752 6,591 30,882 67,693 7,041 68 - 323,769 Depreciation for the year - 1,354 29,385 1,314 3,848 8,544 708 21 - 45,174 Disposals - - - - - - (3) - - (3) Written off - - - - (1,890) (1,587) (553) - - (4,030)

At 31 March 2010 - 15,096 227,137 7,905 32,840 74,650 7,193 89 - 364,910

Depreciation for the year - 5,686 47,710 927 4,052 8,213 603 20 - 67,211

Disposals - - - - (771) (1,618) (15) (49) - (2,453)

Written off - - - - (3,732) (15,796) (3,227) - - (22,755)

At 31 March 2011 - 20,782 274,847 8,832 32,389 65,449 4,554 60 - 406,913

Net book value At 31 March 2011 1,581 13,267 426,318 2,470 6,563 39,171 2,419 135 54,801 546,725

At 31 March 2010 1,581 18,953 261,555 1,565 6,891 33,007 2,128 83 199,734 525,497



3 Property, plant and equipment (Cont’d)

Buildings Fixtures, The Institute Buildings on Machinery fittings Vested on vested leasehold Computer and and office Motor Project-in- land land land Renovations hardware equipment equipment vehicles Progress Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cost

At 1 April 2009 1,581 34,048 488,691 8,898 37,445 98,940 9,078 173 97,421 776,275 Additions - - - 49 3,840 10,099 274 - 102,819 117,081 Written off - - - - (1,890) (1,642) (578) - - (4,110) Reclassifications - - - 507 - - - - (507) -

At 31 March 2010 1,581 34,048 488,691 9,454 39,395 107,397 8,774 173 199,733 889,246

Additions - - 440 3,742 15,368 988 72 68,962 89,572

Disposals - - - - (771) (1,618) (15) (49) - (2,453)

Written off - - - - (3,766) (16,827) (3,339) - (1) (23,933)

Reclassifications - - 212,473 1,392 - 29 - - (213,894) -

At 31 March 2011 1,581 34,048 701,164 11,286 38,600 104,349 6,408 196 54,800 952,432

Accumulated depreciation

At 1 April 2009 - 13,742 197,752 6,591 30,704 67,615 6,869 70 - 323,343 Depreciation for the year - 1,354 29,385 1,313 3,717 8,508 621 21 - 44,919 Written off - - - - (1,890) (1,587) (553) - - (4,030)

At 31 March 2010 - 15,096 227,137 7,904 32,531 74,536 6,937 91 - 364,232

Depreciation for the year - 5,686 47,710 924 4,031 8,178 506 20 - 67,055

Disposals - - - - (771) (1,618) (15) (49) - (2,453)

Written off - - - - (3,732) (15,796) (3,227) - - (22,755)

At 31 March 2011 - 20,782 274,847 8,828 32,059 65,300 4,201 62 - 406,079

Carrying amount At 31 March 2011 1,581 13,266 426,317 2,458 6,541 39,049 2,207 134 54,800 546,353

At 31 March 2010 1,581 18,952 261,554 1,550 6,864 32,861 1,837 82 199,733 525,014



3 Property, plant and equipment (Cont’d)

On 22 April 2007, the Institute entered into a lease agreement with the Singapore Land Authority (“SLA”) to lease a land along the Bukit Batok Road and Choa Chu Kang Way (“the land”) for a period of 30 years for the development of new ITE College West (“ITE facilities”). The prepayment of the land premium is recognised as a prepaid lease (Note 4). Subsequently on 11 August 2008, the Institute entered into a Sublease Agreements and a Project Agreements with Gammon Capital (West) Pte Limited (“PPP Co”). Under the Sublease Agreement, the land is subleased to the PPP Co for a period of 27 years commencing from 11 August 2008. Pursuant to the Project Agreement, the PPP Co is engaged to develop construct, finance and operate the ITE facilities in accordance with the Institute’s specifications and prescribed performance standards. The PPP Co would undertake the development and construction of the ITE facilities in the first 2 years of the sublease period. Upon completion of the ITE facilities on 1 July 2010, the PPP Co has made available the facilities and facilities management services (such as helpdesk, logistic, cleaning services, fire management service, lockers management, utilities management, security service) consistent with the prescribed purpose and performance level until the end of the sublease period (“service period”). During the service period, the Institute will provide monthly unitary payments (“MUP”) to the PPP Co which in aggregate represents the cost of the ITE facilities (including capital expenditure and financing costs, if any) and fees in relation to facilities management services. The MUP is subject to certain adjustments, including inflation adjustment on a yearly basis, other variable factors adjustments (including but not limited to, deductions on the non-availability of ITE facilities and/or poor service performance, and additional usage of ITE facilities by the Institute) on a monthly basis and any other variations due to changes in law or regulated by the Institute. 95% of the ITE facilities is built for educational training purposes while the remaining 5% relates to cafeterias and commercial retail outlets. The Institute has specified the use of ITE facilities and the timetable for its use of the ITE facilities in the Project Agreement. Pursuant to the Project Agreement, the PPP Co is required to hand back the ITE facilities in a good tenantable condition to the Institute upon the expiry of the service period without any consideration. This arrangement does not contain a renewal option. The standard rights to terminate the Project Agreement include default by either parties (i.e. PPP Co or the Institute) and Force Majeure which would render it impossible for the PPP Co to fulfil its obligations under the Project Agreement. During the financial year, the Group and the Institute recognised an amount of $206 million (2010 - $194 million) representing the present value of total cost incurred for ITE facilities as leasehold building.

4 Prepaid leases

The Group and The Institute 2011 2010 $’000 $’000 Balance at beginning 115,826 124,871 Addition 73,448 - Lease expense charge for the year (10,552) (9,045)

Balance at end 178,722 115,826



5 Intangible assets

The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Cost At 1 April 28,683 26,193 28,455 25,999 Additions 6,248 2,541 6,247 2,507 Disposals (230) (51) (230) (51)

At 31 March 34,701 28,683 34,472 28,455

Accumulated amortisation At 1 April 22,784 21,514 22,618 21,422 Amortisation for the year 3,483 1,321 3,442 1,247 Disposals (152) (51) (152) (51)

At 31 March 26,115 22,784 25,908 22,618

Carrying amount At 1 April 5,899 4,679 5,837 4,577

At 31 March 8,586 5,899 8,564 5,837

6 Subsidiaries

The Group and The Institute 2011 2010 $’000 $’000 Investments in subsidiaries * *

* Amount less than $1,000. Details of subsidiaries are as follows: Country of incorporation/ Principal Percentage Name place of

business of equity held Principal activities

2011 2010 % % Northlight School# (1) Singapore 100 100 Provision of integrated education ITE Holding Pte Ltd* (1) Singapore 100 100 Investment holding Held by a subsidiary ITE Education Services Pte Ltd (1) Singapore 100 100 Promotion of technical education in Asia Pacific region

# Incorporated on 13 October 2006 as a public company limited by guarantee. * Cost of investment amounted to $2. (1) audited by Foo Kon Tan Grant Thornton LLP



7 Other financial assets

The Group and The Institute 2011 2010 Note $’000 $’000 Non-current assets Available-for-sale quoted debt securities (i) 3,881 3,811

Current assets Financial assets at fair value through profit or loss - quoted unit trusts (ii) - 9,969

(i) Available-for-sale securities are investments in preference shares with stated fixed dividend rate of

5.05% per annum and are perpetual securities with no fixed redemption date. The changes in the fair value of the available-for-sale securities are recognised directly in other comprehensive income.

The available-for-sale securities are denominated in Singapore dollars. (ii) Funds were placed with a fund manager to invest in unit trusts managed by the fund manager. The

Fund manager has the discretionary power and authority to manage the funds from 23 June 2006 to 22 June 2010 in accordance with the agreed investment guidelines. The unit trusts were fully liquidated in June 2010 for $9,765,455.

The unit trusts are denominated in Singapore dollars. The following income and expenditure were derived from the unit trusts (financial assets at fair

value through profit or loss) managed by the fund manager: The Group and The Institute 2011 2010 $’000 $’000 Income Dividend income - 179 Unit trust rebates - 55 Net changes in fair value on financial assets through profit or loss - 1,172

Net gain on financial assets at fair value through profit or loss - 1,406

8 Trade and other receivables

The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Trade and other receivables 5,850 3,033 4,686 2,306 Allowance for impairment of receivables (16) (21) (9) (21)

5,834 3,012 4,677 2,285 Staff advances 126 44 126 44 Security deposits 12 8 12 7 Amounts due from subsidiaries - trade - - 122 269 - non-trade - - 430 615 Prepayments 1,040 929 967 874

7,012 3,993 6,334 4,094

The non-trade amounts due from subsidiaries are unsecured, interest-free and repayable on demand.



9 Operating grants (receivable)/received in advance

The Group The Institute 2011 2010 2011 2010 Note $’000 $’000 $’000 $’000 Balance at beginning (8,239) (5,931) (11,670) (8,907) Grants received during the year 342,369 280,298 329,058 267,240

334,130 274,367 317,388 258,333 Amounts transferred to deferred capital grants 15 (31,816) (8,109) (31,780) (8,057) Unutilised IT and F&B grants transferred to deferred capital grants 15 - (13,619) - (13,619) Amounts taken to surplus or deficit (319,360) (260,878) (304,213) (248,327)

(351,176) (282,606) (335,993) (270,003)

Balance at end (17,046) (8,239) (18,605) (11,670)

Net operating grants receivable are represented by the following: The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Operating grants receivable (19,048) (11,909) (19,048) (11,909) Operating grants received in advance 2,002 3,670 443 239

Operating grants receivable (net) (17,046) (8,239) (18,605) (11,670)

10 Cash and cash equivalents

The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Cash at bank 300,702 259,489 293,439 254,481 Fixed deposits 8,553 8,037 - -

309,255 267,526 293,439 254,481 Cash at bank managed by a fund manager - (550) - (550)

309,255 266,976 293,439 253,931

Deposits placed with financial institutions bear interest rates ranging from 0.10% to 0.55% (2010 - 0.10% to 0.55%) per annum.

11 Capital account

The capital account comprises: (i) assets and liabilities transferred to the Institute in 1992 from the former Vocational and Industrial

Training Board and (ii) government grants received for the purchase of vested land.



11 Capital account (Cont’d)

Capital management The Group and The Institute 2011 2010 $’000 $’000

Balance at beginning and at end 4,297 4,297

The Institute’s policy is to maintain a strong capital base so as to sustain future and development of the Institute. There were no changes in the capital management during the year. The Institute monitors the return on investment on a regular basis. The Institute is not subject to any externally imposed capital requirements.

12 Fair value reserve

The fair value reserve is in respect of cumulative net change in the fair value of available-for-sale investments held until the investment is derecognised or impaired.

13 Accumulated surplus

(a) General Fund Income and expenditure relating to the main activities of the Group and Institute are accounted

for through the general fund in surplus or deficit.



13 Accumulated surplus (Cont’d)

(b) Restricted Funds The basis of accounting in relation to restricted funds is stipulated in Note 2(d). Restricted funds comprise the following:

Name of Fund Purpose ITE’s Fund Conducting industry projects, short and continuing education courses for the purpose of developing and enhancing staff and students’ capability and supporting the mission and vision of the Institute. Training Programme Fund Funding of relevant programmes and activities in training initiatives. Supplementary Fee Fund Promoting student welfare activities from supplementary fees collected. Special Project Fund To account for funds received from third parties for specific purposes. Edusave Fund Funded by the Government for the purpose of conducting enrichment programmes, procuring equipment and resource materials to enhance the quality of teaching and learning. Workforce Skills Qualifications Funded by the Singapore Workforce Development Agency Programmes Fund of relevant programmes to facilitate adult learning, make skills upgrading more accessible to the workforce and provide career progression pathways for the workforce. Opportunity Fund Grant paid by the Government to level up co-curricular development opportunities for Singapore citizens from lower income households. Miscellaneous Funds Set up for specific purposes relating to the Institute’s operations




(b) Restricted Funds Workforce Skills Opportunity The Group Training Supplementary Special Qualifications Fund and ITE’s Programme Fee Project Edusave Programmes Miscellaneous 31 March 2011 Fund Fund Fund Fund Fund Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Income

Course fees 3,387 - - - - 77 - 3,464

Examination fees 1,204 - - - - - - 1,204

Donations - - - 30 1 - 271 302

Interest income 81 2 7 2 10 2 10 114

Other income 2,164 - 720 192 11 5 6 3,098

Other grants 1,105 - - 183 432 - 1,522 3,242

7,941 2 727 407 454 84 1,809 11,424 Operating expenditure

Manpower costs 3,562 1 4 23 - 667 235 4,492

Depreciation of property,

Plant and equipment 64 670 2 3 20 1 17 777

Amortisation of intangible assets 14 50 - - - 12 - 76

Property, plant and equipment and

intangible assets written off 3 - - - 26 - - 29

Repair and maintenance 47 - 11 - 2 3 2 65

Public utilities 118 - - - - 10 - 128

Supplies and materials 406 - 40 5 5 2 125 41 87 699

Other expenditure 1,199 - 787 259 3,313 104 1,366 7,028

5,413 721 804 325 3,486 838 1,707 13,294

Surplus/(deficit) before government grants 2,528 (719) (77) 82 (3,032) (754) 102 (1,870) Government grants

Operating grants - - 56 273 2,561 798 - 3,688

Surplus/(deficit) after government grants 2,528 (719) (21) 355 (471) 44 102 1,818

Income tax (expense)/credit (41) - - - - (41)

Net surplus/(deficit) for the year 2,487 (719) (21) 355 (471) 44 102 1,777

Accumulated surplus at 1 April 18,299 5,932 1,738 962 4,340 667 1,480 33,418

Transfer of funds from ITE Education Fund - - - - - - - -

Accumulated surplus at 31 March 20,786 5,213 1,717 1,317 3,869 711 1,582 35,195




(b) Restricted Funds Workforce Skills Opportunity The Group Training Supplementary Special Qualifications Fund and ITE’s Programme Fee Project Edusave Programmes Miscellaneous 31 March 2011 Fund Fund Fund Fund Fund Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Property, plant and equipment 209 4,283 3 65 126 4 256 4,946

Intangible assets 10 75 - - - 23 4 112

Trade and other receivables 1,270 - 50 - 289 6 23 1,638

Operating grants receivable 22 - - - - 187 - 209

Cash and cash equivalents 22,340 855 1,804 1,302 4,164 982 3,346 34,793

Trade and other payables (364) - (57) (50) (710) (43) (254) (1,478)

Operating grants received in advance - - - - - (444) (1,793) (2,237)

Deferred income (2,700) - (83) - - (5) - (2,788)

20,787 5,213 1,717 1,317 3,869 710 1,582 35,195




(b) Restricted Funds Workforce Skills Opportunity The Group Training Supplementary Special Qualifications Fund and ITE’s Programme Fee Project Edusave Programmes Miscellaneous 31 March 2010 Fund Fund Fund Fund Fund Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Income

Course fees 3,712 - - - - 80 - 3,792 Examination fees 1,518 - - - - - 1,518 Donations - - - 21 2 - 301 324 Interest income 51 10 5 1 13 2 4 86 Other income 1,544 168 608 117 16 8 1 2,462 Other grants 481 - - 256 625 - 1,230 2,592

7,306 178 613 395 656 90 1,536 10,774 Operating expenditure Manpower costs 3,418 68 3 22 - 781 109 4,401 Depreciation of property, Plant and equipment 72 314 2 - 32 1 5 426 Amortisation of intangible assets 12 28 - - - 1 1 - 41 Property, plant and equipment and intangible assets written off - - - - 4 - - 4 Repair and maintenance 29 10 10 - 8 24 - 81 Public utilities 150 - - - - 49 - 199 Supplies and materials 435 89 1 42 91 40 120 818 Other expenditure 714 365 694 416 3,133 184 955 6,461

4,830 874 710 480 3,268 1,080 1,189 12,431

Surplus/(deficit) before government grants 2,476 (696) (97) (85) (2,612) (990) 347 (1,657) Government grants Operating grants - - - 267 2,631 1,526 - 4,424

Surplus/(deficit) after government grants 2,476 (696) (97) 182 19 536 347 2,767 Income tax (expense)/credit (26) - - - - - - (26)

Net surplus/(deficit) for the year 2,450 (696) (97) 182 19 536 347 2,741 Accumulated surplus at 1 April 15,849 6,628 1,835 375 3,979 131 1,133 29,930 Transfer of funds from ITE Education Fund - - - 405 342 - - 747

Accumulated surplus at 31 March 18,299 5,932 1,738 962 4,340 667 1,480 33,418




(b) Restricted Funds Workforce Skills Opportunity The Group Training Supplementary Special Qualifications Fund and ITE’s Programme Fee Project Edusave Programmes Miscellaneous 31 March 2010 Fund Fund Fund Fund Fund Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Property, plant and equipment 220 4,953 69 1 64 5 69 5,381 Intangible assets 21 125 - - - 34 - 180 Trade and other receivables 1,550 12 6 - 58 2 130 1,758 Operating grants receivable - - - - - 415 - 415 Deferred tax asset 22 - - - - - - 22 Cash and cash equivalents 18,230 842 1,828 1,009 4,632 540 2,507 29,588 Trade and other payables (1,475) - (88) (48) (414) (82) (26) (2,133) Operating grants received in advance - - - - - (240) - (240) Other grants received in advance - - - - - - - (1,200) (1,200) Deferred income (269) - (77) - - (7) - (353)

18,299 5,932 1,738 962 4,340 667 1,480 33,418




(b) Restricted Funds Workforce Skills Opportunity The Institute Training Supplementary Special Qualifications Fund and ITE’s Programme Fee Project Edusave Programmes Miscellaneous 31 March 2011 Fund Fund Fund Fund Fund Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Income

Course fees 2,235 - - - - 77 - 2,312

Examination fees 401 - - - - - - 401

Donations - - - 4 1 - - 5

Interest income 61 2 7 2 10 2 7 91

Other income 1,207 - 720 192 12 5 6 2,142

Other grants - - - 183 432 - 1,522 2,137

3,904 2 727 381 455 84 1,535 7,088 Operating expenditure

Manpower costs 1,426 1 4 3 - 667 234 2,335

Depreciation of property,

plant and equipment 44 670 2 3 20 1 17 757

Amortisation of intangible assets 5 50 - - - 12 - 67

Property, plant and equipment and

intangible assets written off 3 - - - 26 - - 29

Repair and maintenance 24 - 11 - 2 3 2 42

Public utilities 78 - - - - 11 - 89

Supplies and materials 401 - - 15 118 41 87 662

Other expenditure 219 - 787 116 3,253 105 1,203 5,683

2,200 721 804 137 3,419 840 1,543 9,664

Surplus/(deficit) before government grants 1,704 (719) (77) 244 (2,964) (756) (8) (2,576) Government grants

Operating grants - - 56 - 2,481 798 - 3,335

Net surplus/(deficit) for the year 1,704 (719) (21) 244 (483) 42 (8) 759

Accumulated surplus at 1 April 13,379 5,932 1,738 590 4,210 667 656 27,172

Accumulated surplus at 31 March 15,083 5,213 1,717 834 3,727 709 648 27,931




(b) Restricted Funds Workforce Skills Opportunity The Institute Training Supplementary Special Qualifications Fund and ITE’s Programme Fee Project Edusave Programmes Miscellaneous 31 March 2011 Fund Fund Fund Fund Fund Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Property, plant and equipment 149 4,283 3 56 126 4 256 4,877

Intangible assets 4 75 - - - 23 4 106

Trade and other receivables 255 - 50 - 289 6 23 623

Operating grants receivable - - - - 187 - 187

Cash and cash equivalents 15,205 855 1,804 815 4,001 982 2,382 26,044

Trade and other payables (269) - (57) (36) (689) (43) (223) (1,317)

Operating grants received in advance - - - - - (443) (1,793) (2,236)

Other grants received in advance - - - - - - - -

Deferred income (265) - (83) - - (5) - (353)

15,079 5,213 1,717 835 3,727 711 649 27,931




(b) Restricted Funds Workforce Skills Opportunity The Institute Training Supplementary Special Qualifications Fund and ITE’s Programme Fee Project Edusave Programmes Miscellaneous 31 March 2010 Fund Fund Fund Fund Fund Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Income

Course fees 2,499 - - - - 80 - 2,579 Examination fees 614 - - - - - 614 Donations - - - 6 2 - - 8 Interest income 35 10 5 1 13 2 2 68 Other income 1,205 168 608 117 16 8 1 2,123 Other grants - - - 256 625 - 1,215 2,096

4,353 178 613 380 656 90 1,218 7,488 Operating expenditure Manpower costs 1,483 68 3 3 - 781 109 2,447 Depreciation of property, plant and equipment 53 314 2 - 32 1 5 407 Amortisation of intangible assets 5 28 - - - 1 1 - 34 Property, plant and equipment and intangible assets written off - - - - 5 - - 5 Repair and maintenance 14 10 10 - 8 24 - 66 Public utilities 120 - - - - 49 - 169 Supplies and materials 383 89 1 35 91 40 120 759 Other expenditure 375 365 694 263 3,042 184 885 5,808

2,433 874 710 301 3,178 1,080 1,119 9,695

Surplus/(deficit) before government grants 1,920 (696) (97) 79 (2,522) (990) 99 (2,207) Government grants Operating grants - - - - 2,536 1,526 - 4,062

Net surplus/(deficit) for the year 1,920 (696) (97) 79 14 536 99 1,855 Accumulated surplus at 1 April 11,459 6,628 1,835 106 3,854 131 557 24,570 Transfer of funds from ITE Education Fund - - - 405 342 - - 747

Accumulated surplus at 31 March 13,379 5,932 1,738 590 4,210 667 656 27,172




(b) Restricted Funds Workforce Skills Opportunity The Institute Training Supplementary Special Qualifications Fund and ITE’s Programme Fee Project Edusave Programmes Miscellaneous 31 March 2010 Fund Fund Fund Fund Fund Fund Funds Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Property, plant and equipment 141 4,953 69 1 64 5 69 5,302 Intangible assets 6 125 - - - 34 - 165 Trade and other receivables 390 12 6 - 57 2 130 597 Operating grants receivable - - - - - 415 - 415 Cash and cash equivalents 13,272 842 1,828 630 4,469 540 1,679 23,260 Trade and other payables (161) - (88) (41) (380) (82) (22) (774) Operating grants received in advance - - - - - (240) - (240) Other grants received in advance - - - - - - - (1,200) (1,200) Deferred income (269) - (77) - - (7) - (353)

13,379 5,932 1,738 590 4,210 667 656 27,172


Financial statements for the financial year ended 31 March 2011

14 Trade and other payables

The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Trade payables 31,660 2,592 31,492 2,350 Deposits received 86 73 86 73 Accrued operating expenses 33,143 20,692 31,935 20,155 Provision for unutilised compensated leave 9,518 7,718 9,416 7,636 GST payable 10 5 - -

74,417 31,080 72,929 30,214

The following are the expected contractual undiscounted cash outflows of financial liabilities, including interest payments and the impact of netting agreements: Cash flows Carrying Contractual Within The Group amount cash flows 1 year $’000 $’000 $’000 2011 Trade and other payables* 64,813 (64,813) (64,813)

64,813 (64,813) (64,813)

2010 Trade and other payables* 23,289 (23,289) (23,289)

23,289 (23,289) (23,289)

The Institute 2011 Trade and other payables* 63,427 (63,427) (63,427)

63,427 (63,427) (63,427)

2010 Trade and other payables* 22,505 (22,505) (22,505)

22,505 (22,505) (22,505)

* Exclude deposits received and provisions recognised as at financial year end. It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.



15 Amount due to PPP Co.

The Group and the Institute 2011 2010 $’000 $’000 Minimum lease payment: Due not later than 1 year 22,889 16,023 Due later than 1 year and not later than 5 years 60,409 71,976 Due later than 5 years 207,575 218,897

290,873 306,896 Finance charges allocated to future period (99,438) (113,169)

Present value of minimum lease payments 191,435 193,727

The present value of finance lease liabilities may be analysed as follows: Not later than one year 21,367 15,480 Later than one year and not later than 5 years 51,148 63,615 Later than 5 years 118,920 114,632

191,435 193,727

Amount due to PPP Co. represent the present value of amount due to Gammon Capital (West) Pte Limited (“PPP Co”) pursuant to the Project Agreement (Note 3). The above present value is discounted at government bond rate of 3.50% (2010 – 3.50%). These amounts are repayable over a period of 25 years by monthly unitary payment (“MUP”) commencing from 1 July 2011.

16 Deferred capital grants

The Group The Institute 2011 2010 2011 2010 Note $’000 $’000 $’000 $’000 Balance at beginning 507,256 531,398 506,803 530,820 Grants utilised for capital expenditure - Transferred from operating grants 9 31,816 8,109 31,780 8,057

- Transferred from 17 development grants 130,537 8,954 130,529 8,894 Transferred from operating grants (IT and F&B grants) 9 - 13,619 - 13,619 Donated assets 258 258 Amortisation charge for the year (81,543) (55,082) (81,374) (54,845)

Balance at end 588,066 507,256 587,738 506,803

Represented by: Grants utilised 526,674 446,415 526,346 445,962 Grants unutilised 61,392 60,841 61,392 60,841

588,066 507,256 587,738 506,803

17 Provision for retirement benefits

Certain officers of the Institute were, at one time, transferred from the service of the Government. These officers are entitled to benefits in respect of their services with the Government and the Institute, inter-alia, on the same terms in relation to pension, gratuity and allowances as those provided to Government employees under the provision of the Pension Act, Chapter 225. In practice, payments of the benefits to the officers are made by the Government. However, the Institute is required to pay to the Government such portion of any pension, gratuity and allowance payable to the officers during the service with the Institute.



17 Provision for retirement benefits (Cont’d)

Benefits are payable based on the last drawn salaries of the respective employees and the employees’ cumulative service period served with the Institute at the time of retirement.

The amounts recognised in the statement of financial position are as follows: The Group and The Institute 2011 2010 $’000 $’000 Present value of unfunded obligations 2,234 2,468

Represented by: Current 387 402 Non-current 1,847 2,066

2,234 2,468

(a) Movements in the present value of the defined benefit obligations: The Group and The Institute 2011 2010 $’000 $’000 At 1 April 2,468 2,859 Provision for the year 164 22 Retirement benefits paid (398) (413)

At 31 March 2,234 2,468

(b) The amounts charged to surplus or deficit (included in manpower costs) are as follows: The Group and The Institute 2011 2010 $’000 $’000 Current service cost 65 76 Interest cost 59 80 Actuarial gain 40 (134)

164 22

(c) Principal actuarial assumptions used are as follows: The Group and The Institute 2011 2010 Discount rate 2.4% 2.8% Mortality 81 years 81 years

Assumptions regarding future mortality are based on published statistics and mortality tables. (d) Historical information 2011 2010 2009 2008 2007 $’000 $’000 $’000 $’000 $’000 Present value of defined benefit obligation 2,234 2,468 2,859 2,984 3,090



18 Development grants received in advance

The movements in development grants received in advance are as follows: The Group The Institute 2011 2010 2011 2010 Note $’000 $’000 $’000 $’000 Development grants received in advance/(receivable) at beginning 117 163 90 73 Grants received during the year 142,098 11,599 142,010 11,511

142,215 11,762 142,100 11,584

Amounts transferred to deferred capital grants 18 (130,537) (8,954) (130,529) (8,894) Amounts taken to the surplus development grants or deficit (11,936) (2,691) (11,926) (2,600)

(142,473) (11,645) (142,455) (11,494)

Balance at end (258) 117 (355) 90

Net development grants receivable are represented by the following: The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Development grants receivable (355) - (355) - Development grants received in advance 97 117 - 90

(258) 117 (355) 90

These are government grants pertaining to the financing of development projects.

19 Other grants received in advance

Other grants received in advance represents grant received from government to sponsor the co-curricular development opportunities for Singapore citizens from lower income households. These grants are to be utilised over a three year period and any unspent grants disbursed will have to be returned to the Government at the end of the period.

20 Net assets of trust funds

The basis of accounting in relation to trust funds is stipulated in Note 2(d). Trust funds comprise the following funds: Technical Education Promotion Fund (“TEPF”) Technical Education Promotion Fund was granted the Institute of Public Character (“IPC”) status with effect from 1 April 2003. Under this revision, tax-exempt receipts may be issued to donors under the fund. Technical Education Promotion Fund (“TEPF”) was established on 24 February 1993 through a Declaration of Trust made by the Institute. The objective of the fund, which receives public and miscellaneous contributions, is to promote technical training by providing training equipment, facilities, curriculum, vocational guidance, publicity, staff development and any other necessary assistance to students.



20 Net assets of trust funds (Cont’d)

ITE Education Fund (“ITEEF”) ITE Education Fund was granted the Institute of Public Character (“IPC”) status with effect from 1 April 2003. Under this revision, tax-exempt receipts may be issued to donors under the fund. ITE Education Fund was established on 1 April 1993 and is managed by the Institute. The objectives of the Fund, which receives public and miscellaneous contributions, is to promote technical training by providing financial assistance and awards to ITE students, carrying out activities to generate greater public awareness and interest in technical education and any other activities or projects that are related to technical education or support national directives. Additional information of Technical Education Promotion Fund and ITE Education Fund are available on the Charity Portal (www.charities.gov.sg) Other trust funds Other trust funds comprise the following funds for which the Institute acts as custodian, trustee, manager or agent but does not exercise control over. Name of Fund Purpose

Basic Education for Skills Training Funded by the Skills Development Fund, this programme (BEST) Fund encourages companies to provide basic education to their staff by paying for the cost of setting up in-house training facilities and other related expenditure. Worker Improvement Through Secondary WISE, a post BEST programme funded by the Skills Education (WISE) Fund Development Fund, aims to provide working adults with a

secondary school education leading to the General

Certificate of Education (Normal).

Apprenticeship Programme (AP) Fund This programme, which is funded by the Skills Development

Fund, is used to reimburse the costs incurred by

participating companies and organisations in engaging their

employees under apprenticeship terms.

The Enterprise Challenge (TEC) Fund Funded by the Government to develop and test innovative

ideas and technology.

http://www.charities.gov.sg/




The excess of the trust funds’ assets over liabilities of the Group and Institute is set out below: The Group and the Institute TEPF ITEEF BEST Fund WISE Fund AP Fund TEC Fund Total 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Balance as at 1 April 1,058 1,244 5,325 5,654 563 567 1,013 1,052 2,218 (42) 179 95 10,356 8,570 Income Grant income - - 430 920 - - - - 502 4,517 - 266 932 5,703 Course fees - - - - - - - - - - - - - - Interest income 5 2 18 12 - 1 - 2 6 12 - - 29 29 Dividend income - - 66 53 - - - - - - - 66 53 Net loss on financial assets at fair value through profit or loss - 99 - - - - - - - - - - 99 Fund raising income - - 502 133 - - - - - - - 502 133 General donations 8 - 548 588 - - - - - - - 556 588 Other income 6 - 185 195 - - - - - - - 191 195

19 101 1,749 1,901 - 1 - 2 508 4,529 - 266 2,276 6,800

Expenditure Manpower costs - - - - - 5 - 41 44 39 - 129 44 214 Grants-in-aid - - - - - - - - 1,444 2,202 - - 1,444 2,202 Student functions and scholarships - 1 1,385 1,277 - - - - - - - - 1,385 1,278 Promotions and ceremonies 111 270 602 111 - - - - - - - - 713 381 Fund raising expenditure - - 14 12 - - - - - - - - 14 12 Other expenditure - - 98 191 - - - - - - 33 53 131 244

111 271 2,099 1,591 - 5 - 41 1,488 2,241 33 182 3,731 4,331

Net (deficit)/surplus for the year (92) (170) (350) 310 - (4) - (39) (980) 2,288 (33) 84 (1,455) 2,469 Transfer/return of funds - (16) - (731) (563) - (1,013) - (11) (28) - - (1,587) (775) Other comprehensive income - - - - - - - - - - - - - - Fair value reserve - - 25 92 - - - - - - - - 25 92

Balance at 31 March 966 1,058 5,000 5,325 - 563 - 1,013 1,227 2,218 146 179 7,339 10,356




The Group and the Institute TEPF ITEEF BEST Fund WISE Fund AP Fund TEC Fund Total 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Represented by: Assets Property, plant and equipment - - - - - - - - - - 35 69 35 69 Cash and cash equivalents 963 1,058 3,520 4,054 - 563 - 1,013 2,707 3,407 111 110 7,301 10,205 Other receivables 3 - 351 - - - - - - 567 - - 354 567 Other financial assets - - 1,364 1,339 - - - - - - - - 1,364 1,339

966 1,058 5,235 5,393 - 563 - 1,013 2,707 3,974 146 179 9,054 12,180

Liabilities Accruals and other payables - - 235 68 - - - - 1,480 1,756 - - 1,715 1,824 Grants received in advance - - - - - - - - - - - - - -

- - 235 68 - - - - 1,480 1,756 - - 1,715 1,824

Net assets 966 1,058 5,000 5,325 - 563 - 1,013 1,227 2,218 146 179 7,339 10,356



21 Interest income

The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Interest received/receivable - fixed deposits 37 229 - 204 - bank balance 1,081 408 1,081 407

1,118 637 1,081 611

22 Other income

The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Administrative fees 210 187 154 116 Consultancy services 1,507 950 772 765 Dividend income 187 200 187 200 Registration fees 162 321 161 288 Rental of premises 810 225 929 338 Sales of computer equipment and stores 339 254 245 207 Short term investment income - 1,410 - 1,410 Supplementary fees 675 605 672 602 Written back of over-accruals 472 442 472 442 Others income 397 449 404 392

4,759 5,043 3,996 4,760

23 Manpower costs

The Group The Institute 2011 2010 2011 2010

$’000 $’000 $’000 $’000 Wages, salaries, bonuses and allowance 229,498 188,736 217,368 178,175 Pension gratuities, retirement benefits, SDF and CPF contributions 24,431 19,871 23,073 18,694 Staff development and benefits 6,319 6,331 6,118 6,131

260,248 214,938 246,559 203,000

The fund has been set aside to generate income for the maintenance cost of the Heritage Centre in the Institute’s community building.

24 Grants-in-aid

Grants-in-aid comprise: - Grants to Assumption Pathway School, a Government-aided vocational institute, for actual manpower

costs, other operating expenditure and approved development projects. - Grants used to reimburse the cost incurred by companies for conducting courses for their employee

under BEST and WISE programmes; and - Grants used to reimburse the costs incurred by companies under the traineeship scheme.



25 Other expenditure

Included in other expenditure are the following: The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Agency fee 10,403 1,251 10,176 1,007 Allowance for impairment of receivables made/(written-back) 7 (124) - 6 Bad debts written off 142 109 126 109 Consultancy services 2,152 1,018 1,876 935 Finance costs 549 5 548 4 Functions and entertainment 744 719 605 629 Gain from sale of available-for-sale financial assets - (5) - (5) Gain from sale of property, plant and equipment (28) (14) (28) (14) GST expenses 16,279 4,393 16,175 4,229 Jobs Credits Scheme, offset against staff costs - 170 - - Loss on financial assets at fair value through profit or loss 203 - 203 - Overseas travelling 1,024 387 710 250 Property, plant and equipment written off 1,178 81 1,178 81 Publications and publicity materials 833 485 804 485 Rental of premises 124 86 48 70 Student benefits 7,449 6,302 6,806 5,678 Travelling and communications 769 769 707 712 Others 5,196 4,439 4,827 4,318

47,024 20,071 44,761 18,494

26 Taxation

The Institute is a charitable institution by virtue of Section 2 of the Charities Act, Chapter 37. With effect from the Year of Assessment 2008 or financial year ended 31 March 2007, all registered and exempt charities will enjoy automatic income tax exemption without having the need to meet the 80% spending rule. In addition, there is no need to file income tax returns by virtue of Section 13(1)(m) of the Income Tax Act, Chapter 134. The subsidiary companies of the Institute are subject to tax under Singapore income tax legislation. The Group 2011 2010 $’000 $’000 Current tax expense

- Current 19 - - Overprovision in respect of prior years - (76) Deferred tax expense - Origination and reversal of temporary differences 12 64 - Underprovision in respect of prior years - 38 - Utilisation of deferred tax asset in respect of prior years 10 -

22 102

41 26



26 Taxation (Cont’d)

The tax expense on the results of the financial year varies from the amount of income tax determined by applying the Singapore statutory rate of income tax on Group’s results as a result of the following: 2011 2010 $’000 $’000 Surplus before taxation 6,681 19,114

Tax at statutory rate of 17% 1,136 3,249 Tax effect on non-chargeable income (1,107) (3,190) Tax effect on non-deductible expenses 2 5 Overprovision of current tax in respect of prior years - (76) Underprovision of deferred tax in respect of prior years - 38 Utilisation of deferred tax asset in respect of prior years 10 -

41 26

27 Significant related party transactions

For the purpose of these financial statements, parties are considered to be related to the Institute if the Institute has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Institute and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. With the adoption of SB-FRS by the Institute, the Institute need not comply with the requirements of paragraph 17 to 22 of SB-FRS 24 with respect to the disclosures of transactions and balances with parent Ministry and other state-controlled entities. Key management personnel compensation Key management personnel of the Group are those persons having the authority and responsibility for planning, directing and controlling the activities of the Group. The Chief Executive Officer, Deputy Chief Executive Officers, Directors and Principals are considered to be key management personnel of the Group. Key management personnel compensation comprises: The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Salaries and related short-term benefits 2,675 2,200 2,396 1,946

28 Capital commitments

Capital expenditure approved by the Institute’s management but not provided for in the financial statements is as follows: The Group and The Institute 2011 2010 $’000 $’000 Property, plant and equipment - approved and contracted for 371,930 53,271

Included in the capital commitment is an amount of $15.4 million (2010 - $30.6 million) which pertains to the construction of the ITE facilities pursuant to the Project Agreement (Note 3).



29 Financial risk management objectives and policies

The Institute does not hold or issue any derivative financial instruments for trading purposes or to hedge against fluctuation; if any, in interest and foreign exchange rates. 29.1 Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the Institute to incur a financial loss. In a bid to manage its credit/settlement risk exposure, the Group imposed certain limitation in respect of investments in unit trusts, namely limiting the proportion of investments in equities unit trusts by investing at least 75% in fixed income unit trusts. At the end of the reporting period, other than disclosed in the following paragraph, there was no significant concentration of credit risk.

2011 2010 The Group No. of No. of Percentage counterparties Percentage counterparties of balance /debtors of balance /debtors Other financial assets 100% 1 100% 2 Cash and cash equivalents 100% 2 100% 3 Trade and other receivables 61% 3 62% 5

The Institute Other financial assets 100% 1 100% 2 Cash and cash equivalents 100% 2 100% 2 Trade and other receivables 68% 2 68% 2

The ageing analysis of trade and other receivables past due but not impaired is as follows: The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 Past due 1 to 30 days 864 55 337 31 Past due 31 to 120 days 161 459 99 313 Past due 121 days - 1 year 226 195 213 187 More than one year 42 25 23 9

1,293 734 672 540

Based on historical default rates, the Group believes that no impairment allowance is necessary in respect of trade receivables not past due or due but not provided for. These receivables are mainly arising by customers that have a good credit record with the Group. The movement in allowance for impairment of receivables during the year is as follows: The Group The Institute 2011 2010 2011 2010 $’000 $’000 $’000 $’000 At beginning of year 21 167 21 27 Allowance made/(written-back) 7 (124) - 6 Bad debt written off against allowance (12) (22) (12) (12)

At end of year 16 21 9 21



29 Financial risk management objectives and policies (Cont’d)

29.2 Liquidity risk Liquidity or funding risk is the risk that an enterprise will encounter difficulty in raising funds to meet commitments associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. The Institute maintains sufficient level of cash and cash equivalents to finance the Institute’s operations and mitigate the effects of fluctuation in cash flows. Fixed deposits are placed with reputable financial institutions, which yield better returns than cash at bank. The fixed deposits generally are short-term so as to provide the Group with flexibility to meet working capital needs. The table below analyses the maturity profile of the Institute’s and the Group’s financial liabilities based on contractual undiscounted cashflows: Less than Between 2 Over

1 year and 5 years 5 years Total

The Group $’000 $’000 $’000 $’000

2011 Trade and other payables 74,417 - - 74,417

Amount due to PPP Co. 21,367 51,148 118,920 191,435

Provision for retirement benefits 387 820 1,027 2,234

96,171 51,968 119,947 268,086

2010 Trade and other payables 31,080 - - 31,080 Amount due to PPP Co. 15,480 63,615 114,632 193,727 Provision for retirement benefits 402 645 1,421 2,468

46,962 64,260 116,053 227,275

The Institute 2011 Trade and other payables 72,929 - - 72,929

Amount due to PPP Co. 21,367 51,148 118,920 191,435

Provision for retirement benefits 387 820 1,027 2,234

94,683 51,968 119,947 266,598

2010 Trade and other payables 30,214 - - 30,214 Amount due to PPP Co. 15,480 63,615 114,632 193,727 Provision for retirement benefits 402 645 1,421 2,468

46,096 64,260 116,053 226,409



29 Financial risk management objectives and policies (Cont’d)

29.3 Market risk Market risk is the risk that changes in market prices, such as interest rates and equity prices will affect the Fund’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. The Fund actively manages the market risk arising from its financial instruments through the setting of investment guidelines. Compliance with the investment guidelines, namely limiting the proportion of investments in equity unit trusts by investing at least 75% in fixed income unit trusts, is monitored on an on-going basis. In addition, the fund manager will report on the performance of the portfolio of investments and propose new investment alternatives to mitigate the Group’s market risk on regular basis. 29.4 Cash flow and fair value interest rate risk Cash flow interest rate risk is the risk that 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. The Group’s exposure to interest rate risk primarily arises from fixed deposits placed with financial institution and investments in fixed income unit trusts. 29.5 Equity price risk The Group is exposed to equity securities price risk arising from its investments in quoted equity securities and equity unit trusts. These equity securities and equity unit trusts are traded in active markets and are designated as available-for-sale and fair value through profit or loss respectively. The market values of these investments are affected by, amongst other factors, changes in market prices as a result of changes in global economic conditions, macro and micro economic factors affecting the country where the investments are quoted, and factors specific to the investee corporations. To mitigate the price risk arising from investments in such financial instruments, the Group invests in preference share which will also provide fixed returns via dividends. The Group has also fully divested its investments in equity unit trusts from June 2010. All investment decisions are governed by the Institute’s documented risk management and investment strategies. Sensitivity analysis - equity price risk A 10% increase in the underlying equity prices at the end of the reporting period would increase the fair value reserve and surplus or deficit by the following amounts: 2011 2010 The Group and The Institute $’000 $’000 Fair value reserve 388 381 Surplus or deficit - 179

A 10% general decrease in equity prices would have the equal but opposite effect on the basis that all variable remain constant. 29.6 Foreign currency risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Group and Institute has no significant foreign currency exposures..



30 Institute management

The Institute’s objectives when managing the funds are: (a) to safeguard the Institute’s ability to continue as a going concern; (b) to support the Institute’s stability and growth; and (c) to provide funds for the purpose of strengthening the Institute’s risk management capability. The Group actively and regularly reviews and manages its funds to ensure optimal structure taking into consideration the future fund requirements of the Fund, prevailing and projected probability, projected operating cash flows, projected capital expenditures and projected strategic investment opportunities.

31 Financial instruments

Fair value The carrying amount of financial assets and liabilities with a maturity of less than one year is assumed to approximate their fair values. However, the Fund do not anticipate that the carrying amounts recorded at end of reporting period would be significantly different from the values that would eventually be received or settled. Fair value hierarchy The different levels have been defined as follows:

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie. as prices) or indirectly (ie. derived from prices)

Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs)

The fair values of available-for-sale equity securities as well as financial assets at fair value through profit or loss are based on quoted market prices on the reporting date. The quoted market price used is the quoted bid price. During the financial year, the unit trust investments are fully divested. The remaining equity securities are wholly designated in the Level 1 category as at 31 March 2011. During the financial year, there have been no transfers between levels.

INSTITUTE OF TECHNICAL EDUCATION

10 Dover Drive

Singapore 138683

www.ite.edu.sg

ITE Annual Report 2010/2011

Documents

Transcript of ITE Annual Report 2010/2011