The Council
for Private
Education
Annual Report 2013/14
THE CPE ANNUAL REPORT 2013/14
A
Contents
01
About the Council for
Private Education
02
Chairman’s Message
05
CE’s Report
08
The CPE Board
10
Senior Management
12
Organisation Chart
13
The Committees
15
Sectoral Statistics
18
Key Milestones
20
Regulation and Quality
Assurance
28
Consumer Education and
Student Services
34
Industry Development
40
Our People
46
Financial Statements
About the Council For
Private Education
The Council for Private Education was formally constituted as a statutory board under the Ministry of Education on
1 December 2009, to formulate and oversee the implementation of initiatives to regulate and develop Singapore’s private
education sector.
Vision
A Trusted and Well-Regarded Private Education Sector
Core Values
Underpinning the Council for Private Education’s work are
four core values:
Mission
To raise standards in the private education sector
through effective regulation, industry development and
consumer education
Integrity
As officers of the Council for Private Education, we carry
out our duties with honesty, objectivity and uprightness.
We act without fear or favour.
Strategic Thrusts
Care
Thrust 1 : Effective regulation and quality assurance of
private education institutions
The well-being of our fellow officers, the private school
students we work with and the private education sector as
a whole is always our key concern.
Thrust 2: Effective consumer education and student
support
Thrust 3: Strategic development and promotion of the
private education industry
Thrust 4: Sustained operations and organisation
excellence
Professionalism
We are competent and passionate about our work, and
are proud of the standards we set.
Excellence
We always aim to do our very best in whatever we undertake.
THE CPE ANNUAL REPORT 2013/14
01
Chairman’s Message
In the coming year,
the CPE will focus its
efforts on developing
capabilities to reach out
to prospective students to
help them understand the
options available in private
education, and to help
them make informed and
financially sound decisions
that will benefit them
in the long run.
The year 2013 saw the Council for
Private Education (CPE) continuing
its efforts to achieve its vision of a
trusted and well-regarded private
education sector.
State of the Sector
The profile of the sector improved
marginally compared to last year.
As at 31 December 2013, 319 Private
Education Institutions (PEIs) were
registered under the Enhanced
Registration Framework (ERF). Of
these, 245 – as compared to 226 in
2012 – were able to attain a fouryear registration period or better.
We also saw a small increase in the
number of PEIs that obtained the
four-year EduTrust certification
– 49 in 2013 as compared to 47
in 2012. Nearly all of our EduTrustcertified PEIs also attained four-year
registration periods in 2013.
Overall student enrolment in the
sector has remained relatively
unchanged from 2012. However, we
do note that there have been some
changes in the demographics of the
students, as well as the PEIs and
courses that they choose to enrol in.
For example, we continue to see a
moderation in the number of foreign
students on a Student’s Pass (STP),
but the number of foreign students
on a Dependent’s Pass or Work Pass
saw some growth in 2013. We also
saw some decline in the enrolment for
diploma-level programmes in 2013.
As the sector makes gradual
improvements in the delivery of its
services, the number of enquiries,
feedback and complaints lodged
with the CPE’s Student Services
Centre continued to fall in 2013, but
grievances surrounding fees and
student contracts remained high.
Meeting the Quality Challenge
While there has been improvement
in PEIs’ compliance with the baseline
standards imposed by the ERF, the
sector must challenge itself and push
for higher standards in order to meet
the growing expectations of our
stakeholders, especially the students.
The education landscape in Singapore
has continued to develop and grow,
and this has in turn created a more
competitive environment for all
education providers.
How should the private education
sector face these challenges?
While it would be tempting to
just focus on short-term gains by
attracting students with marketing
or pricing strategies, the longerterm viability and sustainability of
PEIs must be underpinned by quality
and having the students’ interests
at heart. PEIs must endeavour
to put in place investments that
will improve the academic quality
and delivery of their programmes.
Having the students’ interests at
heart also extends beyond the
classroom – both before prospective
students sign up and after they
have graduated. PEIs should provide
sound advice for prospective
students, taking into account their
intention, circumstances and ability
to complete a programme well.
PEIs should also identify ways in
which they can better support their
students if they sign up, or advise
them regarding educational options
elsewhere if that is in their best
interests. In addition, PEIs should
find ways to improve the relevance
of their graduates’ skills and
knowledge to the job market.
In the coming year, the CPE will
focus its efforts on developing
THE CPE ANNUAL REPORT 2013/14
03
capabilities to reach out to
prospective students to help them
understand the options available
in private education and to help
them make informed and financially
sound decisions that will benefit
them in the long run. It will also
continue to review the Private
Education Act and its Regulations
as well as the CPE’s operational
processes to ensure they continue
to be relevant to the evolving
education landscape.
and pursuit of excellence in the
discharge of their duties. My
greatest appreciation goes to each
and every one of you.
Lin Cheng Ton
Chairman
Appreciation
I wish to thank the CPE Board
members and the five committees
for their continued dedication
in guiding the various areas of
the CPE’s work. The invaluable
support and contributions of the
Regulation and Quality Assurance,
Consumer Education and Student
Support, Industry Development,
Administration and Finance and
Audit committees will help guide
the CPE in achieving its mission
through effective regulation,
industry development and consumer
education. I also commend the
CPE’s management and staff for
their dedication to professionalism
04
THE CPE ANNUAL REPORT 2013/14
CE’s Report
The outcomes achieved in the past
year represent the Council for Private
Education’s (CPE) efforts to build upon
the foundation we have established
since our inception three years ago.
Much has been done in 2013 to
enhance the private education sector –
we have engaged the industry, assisted
private education institutions (PEIs)
with capability development, and
extended the reach of our consumer
education efforts.
Engagement
Industry engagement was one of
our key areas of development in
2013. To ensure that PEIs are kept
updated regarding the best practices
within the industry, several new
initiatives were launched. We started
the financial year with the inaugural
Private Education Conference on 9
April, which brought together more
than 200 senior management staff
from over 120 PEIs. The conference
provided a timely platform for the
CPE to share information about the
progress made in the sector, and for
industry experts and peers to share
significant developments within the
sector. The success of the conference
led to the introduction of quarterly
half-day thematic industry seminars,
which have seen similar success.
While the CPE continues
to review and refine
existing processes,
protecting the interests
of students remains at the
heart of the CPE’s mission.
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05
The CPE also looked into ways
to reach PEIs that were unable
to attend these face-to-face
engagement sessions but would
still benefit greatly from them. The
result was the development of two
new e-publications – a half-yearly
electronic newsletter entitled “Class
Notes” to share best practices,
and a bi-monthly electronic
bulletin (e-bulletin) to share news,
information and opportunities.
Meanwhile, our one-to-one PEI
engagement sessions by the CPE’s
top management have continued to
result in many meaningful exchanges.
For our stakeholders, such as
industry associations and overseas
regulatory partners, the CPE has
continued to engage them, as part
of our efforts to pursue higher
standards for Singapore’s private
education sector. Regular dialogues
were held with the Singapore
Association for Private Education
and the Association of Private
Schools and Colleges to synergise
efforts in improving the quality of
the sector. We also conducted our
first policy dialogue with the United
Kingdom’s (UK) Quality Assurance
Agency for Higher Education to
06
share developments within both
countries and observations regarding
collaborations between local PEIs
and universities from the UK.
To enhance our student outreach
efforts, a series of measures have
been implemented to address
gaps that were identified from the
analysis of the Consumer Behaviour
Survey. Some measures we were
able to implement immediately
include search engine optimisation
for the CPE’s website, linking the
CPE’s website from the Ministry of
Education’s (MOE) Education and
Career Guidance (ECG) interactive
portal, and producing a new “Student
Advisories” section within the CPE
website. These are to capitalise on
the finding that students do their
most intensive research online when
searching for a PEI to join, and to
ensure that pertinent information
will be within easy reach for these
students. Other initiatives may take a
little more time to implement.
Enhancement
As we entered our fourth year
of operation, the sector’s better
understanding of the requirements
THE CPE ANNUAL REPORT 2013/14
under the Enhanced Registration
Framework (ERF) and EduTrust
Certification Scheme allowed us to
evaluate current processes, with the
aim of reducing the administrative
burden and compliance costs
for PEIs. This resulted in several
enhancements, such as a more
concise PEI-student contract for PEIs
to adopt, doing away with the need
to submit supporting documents for
the redeployment of existing teachers
within the same PEI, simplifying
submissions for non-degree courses
that have already been approved
by other government agencies, and
submitting annual returns via dataencrypted emails instead of through
pre-assigned thumb drives.
We also extended the time given to
EduTrust-certified PEIs to purchase
the Fee Protection Scheme insurance
– from one to seven working days. At
the same time, we also arranged for
a seven-day pre-coverage agreement
with the appointed insurance
companies to ensure that students’
fees remain protected during
this period.
As a follow-up to an initiative
launched last year to enhance the
capabilities of PEIs, the CPE also
facilitated the private education
sector’s participation in the second
Sectoral Productivity Call-forCollaboration (CFC), which is
under the Infocomm Development
Authority of Singapore and SPRING
Singapore. This enables smaller PEIs
to access technology that they would
otherwise be unable to afford, and
has been met with strong interest
from PEIs.
Enforcement
While the CPE continues to review and
refine existing processes, protecting
the interests of students remains at
the heart of the CPE’s mission. The
regulatory actions taken in 2013,
which included the prosecution of an
unregistered PEI that resulted in the
maximum fine for one of the offences,
demonstrated the CPE’s resolve to see
that firm action is taken against PEIs
that breach the Private Education Act
and its Regulations.
Similarly, PEIs that fail to maintain
the necessary requirements and
standards under the ERF or EduTrust
Certification Scheme will see their
status suspended or revoked. In 2013,
three PEIs were unsuccessful in the
renewal of their registration under
the ERF, as they were unable to meet
the statutory requirements under
the Private Education Act. Two PEIs
also had their EduTrust certification
suspended for failing to maintain
the necessary standards during their
interim assessments.
The CPE Team
As the private education sector
evolves, so must the CPE. To align
the CPE’s functions with the changes
in the private education sector, the
CPE took on a new organisational
structure on 1 February 2014. First,
in order to dedicate resources for
consumer education, the Student
Services Centre team was split,
and Consumer Education became
a department of its own, with its
own specific roles and functions.
Second, the Inspection and
Registration Department was split
into the Registration Department
and the Monitoring and Investigation
Department, allowing the CPE to
focus more on two things – ensuring
that PEIs comply with the Private
Education Act and its Regulations,
and streamlining the various
registration processes.
I would like to affirm that the CPE’s
progress to date has been made
possible only through the tireless
efforts and contributions of our
management and staff. I would like to
express my gratitude to the members
of the CPE Board and committees for
sharing their invaluable insights and
providing their unstinting support for
our operations in the past year. I hope
that we will chart new milestones
together, which will benefit both the
sector and the community.
Brandon Lee
Chief Executive
THE CPE ANNUAL REPORT 2013/14
07
The CPE Board
Mr Lin Cheng Ton
Mr Brandon Lee
Mr Leong Keng Thai
Mr Choe Peng Sum
Chairman
Council for Private
Education
Chief Executive Officer
Nanyang Polytechnic
International
Chief Executive
Council for Private
Education
Deputy Chief Executive
& Director-General
(Telecoms & Post)
Infocomm Development
Authority of Singapore
Chief Executive Officer
Frasers Hospitality Pte Ltd
Mr Alvin Tan
PROF RAJENDRA K.
SRIVASTAVA
MR ANDREW LIM
COL Anwar
Abdullah
Assistant Managing
Director, Human Capital,
Human Resources,
Information Technology and
New Businesses (Contact
Singapore), Economic
Development Board
08
Provost & Deputy President
(Academic Affairs)
Singapore Management
University
THE CPE ANNUAL REPORT 2013/14
Partner and Co-Head
Corporate Mergers and
Acquisitions
Allen & Gledhill
Director of Operations
Singapore Civil Defence
Force
Mr Ted Tan
MR TEO ENG CHEONG
MR KHOO CHIN HEAN
Mr John Lim
Deputy Chief Executive
SPRING Singapore
Chief Executive Officer
International Enterprise
Singapore
Board Member
Council for Private
Education
Director
Higher Education
Ministry of Education
MS MELISSA OW
Mr Edmond Khoo
MR WAN AIK CHYE
MS JACINTA LIM
Assistant Chief Executive
Experience Development
Group
Singapore Tourism Board
Deputy Principal
Temasek Polytechnic
Executive Director
Banking Department II
Monetary Authority of
Singapore
Director (PMET) ClusterEngagement (Life Stages)
People’s Association
THE CPE ANNUAL REPORT 2013/14
09
Senior Management
1. Mr Brandon Lee
Chief Executive
2. Mr Rozlan Giri
Deputy Chief Executive
3. Mr Remy Choo
Director (Assessment,
Registration, Monitoring and
Investigation)
4. Mr Lawrence Tan
Deputy Director (Student
Services, Consumer
Education, Corporate
Services and Development)
5. Mr Kevin Lee
Deputy Director
(Assessment, Registration),
Chief Assessor
4
2
5
3
1
In appreciation of their contributions to the CPE senior management team:
Mr Anthony Goh, Director
(Corporate Services and Development,
Inspection and Registration,
Assessment and Certification)
Dec 2009 – Aug 2013
10
10
THE CPE ANNUAL REPORT 2013/14
Ms Mary Leong, Senior Legal Counsel
(Legal and Prosecution Department)
Dec 2010 – Jan 2014
6. Mr Pang Tong Wee
Chief Investigator
7. Ms Michelle Yam
Chief Registrar
8. Ms Nikole Lee
Assistant Director
(Corporate Communications)
9. Mr Rick Ong
Assistant Director
(Industry Development)
10. Mr Tong Kok Yin
Assistant Director
(Corporate Services and
Development)
11. Mr Renny Lee
Assistant Director (Policy)
12. Mr Stanley Wong
Senior Legal Counsel
12
10
9
11
6
7
8
THE CPE ANNUAL REPORT 2013/14
11
11
Organisation Chart
Deputy
Director
Student
Services
Consumer
Education
Corporate
Services &
Development
Student
Services,
Consumer
Education,
Corporate
Services &
Development
Monitoring &
Investigation
Board
Chief
Executive
Deputy
Chief
Executive
Director
Assessment,
Registration,
Monitoring &
Investigation
Deputy
Director
Assessment
Registration
Industry
Development
Policy
Assessment,
Registration
Corporate
Communications
12
THE CPE ANNUAL REPORT 2013/14
Legal &
Prosecution
The Committees
The Council for Private Education’s (CPE) Board is assisted by five Committees, which have been delegated the authority to
provide guidance to the CPE management.
Regulation and Quality Assurance Committee
Chaired by Mr Leong Keng Thai, the Regulation and Quality
Assurance (RQA) Committee provides oversight and
guidance for the regulatory functions of the CPE.
The Committee’s Terms of Reference are:
• Exercise the approving authority for key decisions
under the Enhanced Registration Framework and
the EduTrust Certification Scheme as delegated by
the Board;
• Exercise other regulatory functions delegated by
the Board;
• Provide oversight on the registration and certification
process; and
• Provide guidance for process benchmarking
and administration of the regulatory and quality
assurance frameworks.
and well-regarded sector that is able to provide a
credible pathway for educational upgrading;
• Working in collaboration with economic agencies,
to facilitate and develop appropriate assistance
programmes to support Private Education
Institutions in:
i.
manpower and capabilities development;
ii.
industry promotion; and
iii.
export of education services.
• Fostering effective industry stewardship through
partnership with industry association(s) to:
i.Develop industry norms and manpower
competency maps;
ii.Share best practices through dedicated sharing
platforms; and
iii.Facilitate process benchmarking and study
missions.
Industry Development Committee
Consumer Education and Student Support
Committee
Chaired by Mr Ted Tan, the Industry Development
(ID) Committee provides oversight and guidance for
the CPE’s industry engagement and development
initiatives to raise standards and quality of the private
education sector.
Chaired by Mr Choe Peng Sum, the Consumer Education
and Student Support (CE&SS) Committee provides
oversight and guidance for the CPE’s consumer education
initiatives and student support services.
The Committee’s Terms of Reference are:
The Committee’s Terms of Reference are:
• Developing the private education sector into a trusted
• The development and implementation of initiatives to
provide timely and relevant information to consumers
THE CPE ANNUAL REPORT 2013/14
13
The Committees
and to enable prospective students to make more
informed choices;
• The functions of the Student Services Centre (SSC);
• The dispute resolution mechanisms for students; and
• To facilitate the placement or teaching-out of students
affected by Private Education Institution closures.
• Review effectiveness of actions taken by the CPE
Management in response to external auditor’s
recommendations; and
• Review the audited financial statements for Board’s
approval.
Administration and Finance Committee
Chaired by Mr Khoo Chin Hean, the Audit Committee
provides oversight and guidance for the internal and
external audit functions of the CPE.
Chaired by Mr Teo Eng Cheong, the Administration
and Finance (A&F) Committee provides oversight
and guidance in the establishment, monitoring and
effective implementation of policies relating to corporate
administration, finance, human resource, and information
technology.
The Committee’s Terms of Reference are:
The Committee’s Term of Reference is: Exercising the
approving authority as delegated by the Board.
Audit Committee
• Review and endorse the Internal Audit objectives, scope
of work and work plans for Board’s approval;
• Review with Internal Auditors on processes and
measures to provide a satisfactory and effective level of
internal control and minimise any risk exposures;
• Review Internal Audit reports;
• Review effectiveness of actions taken by CPE Management
in response to the Internal Auditors’ recommendations;
• Review the Internal Audit performance and effectiveness;
• Advise the Board on all Internal Audit matters;
• Review and recommend the appointment of external
auditors;
• Review external auditor’s audit plans and reports;
14
THE CPE ANNUAL REPORT 2013/14
Sectoral Statistics
As at 31 December 2013
a) Number of Registered Private Education
Institutions (PEIs)
Period of Registration
b) Number of EduTrust-certified PEIs
Type of Award
No. of PEIs
(2013)
Six Years
25
Four Years
220
No. of PEIs
(2013)
EduTrust Award (Four Years)
49
One Year
74
EduTrust Provisional Award
(One Year)
65
Total
319
Total
114
c) Types of PEIs (classified by predominant type of course)
Total
Type of PEIs
Commercial
Vocational2
Preparatory3
FSS4
1
No. of PEIs
319
172
65
50
32
Enrolment
227,090
64%
7%
8%
21%
1
Commercial PEIs offer a wide variety of post-secondary certificate, diploma and degree programmes.
2
Vocational PEIs offer courses in specialised/niche areas: Beauty and Spa; Hairdressing; Culinary and Hospitality; Nursing, Healthcare
and Social Sciences; Electronics and Mechanics; Art and Design; and Performance Arts.
3
Preparatory PEIs prepare students for professional qualifications, particularly accountancy, as well as primary and secondary level
examinations (e.g. GCE ‘O’ and ‘A’ levels). Also included in this category are schools providing special education courses.
4
Foreign System Schools (FSS) provide primary and secondary education in accordance with international curricula, primarily to
children of expatriates residing in Singapore.
THE CPE ANNUAL REPORT 2013/14
15
Sectoral Statistics
As at 31 December 2013
d) Types of Courses Offered by PEIs
• In 2013, there were 6,050 different course offerings
by PEIs. The breakdown by course levels is shown in
the following pie chart.
• The pie chart below shows the distribution of the
3,493 post-secondary courses (diploma, bachelor
and postgraduate) based on fields of study.
10%
31%
17%
7%
28%
8%
13%
8%
6%
13%
Bachelor
Diploma
Certificate
Preparatory
32%
FSS
Postgraduate
Others5
20%
7%
Business
Hospitality &
Personal Services
Information
Technology
Humanities and
Social Sciences
Fine and
Applied Arts
Others6
5
“Others” under course levels include English proficiency and Special Education courses.
6
“Others” under fields of study include those in Mass Communications; Health Sciences; Law; Manufacturing; Architecture; Building and
Construction.
16
THE CPE ANNUAL REPORT 2013/14
Sectoral Statistics
As at 31 December 2013
f) Enrolment by Type of Course
e) Student Enrolment
• Total cumulative student enrolment in 2013 was
227,090.
7
6%
4%
3%
• Of these:
34%
Item
2013
Singapore Citizens and
Permanent Residents
56%
Part-time Students
38%
Studying in EduTrust-certified PEIs
61%
23%
Type of Pass
2013
Number of teachers
21,467
Bachelor
Preparatory
Full-time basis
29%
Diploma
Postgraduate
Teachers with Bachelor’s Degree
or Higher
86%
Certificate
Others
Non-teaching staff
7
22%
8%
g) PEI Staff
6,385
FSS
As PEIs do not have common enrolment periods or course durations, the use of cumulative figures, rather than snapshot figures in
December 2013, better represent the level of business activity and market share of PEIs. The cumulative figures represent the number
of unique students enrolled with the PEIs for the year 2013, regardless of whether the students were still with the PEIs at the point of
data collection.
THE CPE ANNUAL REPORT 2013/14
17
Key Milestones
Appointment of the
Pro-tem Council for
Private Education
Jan
2009
16 Oct
2009
—
12 March
2013
Private
Education Act
& its subsidiary
legislations
gazetted
18
End of 18-month
period for PEIs
to transit to new
requirements
under the Private
Education Act
Commencement of
the new regulatory
regime for the private
education sector
THE CPE ANNUAL REPORT 2013/14
21
Dec
2009
22
apr
2010
Official opening of
the CPE Student
Services Centre by
Dr Ng Eng Hen,
Minister for
Education and
Second Minister
for Defence
20
JUNE
2011
The CPE and
Quality Assurance
Agency for Higher
Education UK sign
Memorandum of
Understanding to
raise standards in
private education
10
APR
2012
The CPE launches
the Advertising
Code for private
education sector
to ensure better
consumer protection
13
APR
2012
The CPE and Tertiary
Education Quality
and Standards
Agency Australia
sign Memorandum of
Cooperation to raise
standards in private
education
05
feb
2013
The CPE and
New Zealand
Qualifications
Authority sign
Memorandum of
Cooperation to
raise standards in
private education
28
FEB
2013
09
aPR
2013
The CPE’s
inaugural Private
Education
Conference “Raising the Bar
on Quality”
THE CPE ANNUAL REPORT 2013/14
19
Regulation
and
Quality Assurance
The CPE maintains strict regulations for Private Education Institutions, and
develops policies and initiatives that steer the industry in the right direction.
20
THE CPE ANNUAL REPORT 2013/14
THE CPE ANNUAL REPORT 2013/14
21
Regulation and
Quality Assurance
As at 31 December 2013, 319 Private
Education Institutions (PEIs) were
registered under the mandatory
Enhanced Registration Framework
(ERF). Of these, 245 or 77 per cent
attained four-year registration
periods or better – an increase of
almost 10 per cent from 226 PEIs
last year.
The number of EduTrust-certified
PEIs stood at 114 in 2013, compared
to 115 in 2012. In addition, the
number of PEIs that have earned
the EduTrust award with a four-year
validity period increased from 47
to 49.
Enhanced Registration
Framework
The ERF establishes the baseline
standards in corporate governance
and information transparency that a
PEI must adhere to in order to obtain
the approval to operate. The validity
of the registration periods ranges
from one to six years, depending
on the PEI’s ability to meet the
registration requirements.
The Council for Private Education
(CPE) ensures that PEIs meet the
necessary regulatory and quality
22
Delegation from the Supreme Council for National Security Task Force
from Abu Dhabi, United Arab Emirates was in town to find out more about
the CPE’s work.
standards before they can be
registered or renewed as a registered
PEI. The CPE also monitors PEIs
regularly to ensure that the Private
Education Act is complied with.
addition, the CPE processed 3,467
applications from registered PEIs
seeking approval for new courses
and premises, as well as notifications
about the deployment of teachers.
In Financial Year 2013/14, the CPE
received a total of 134 applications to
During this period, a total of 32 PEIs
were deregistered due to voluntary
closure, cessation to offer or provide
private education, unsuccessful
register new PEIs and for the renewal
of registration for existing PEIs. In
THE CPE ANNUAL REPORT 2013/14
As an engaged regulator, the CPE has
actively sought feedback from PEIs and
other stakeholders like the industry
associations to enable us to better
understand the needs of the sector.
renewal of registration or regulatory
cancellation of registration.
EduTrust Certification Scheme
The EduTrust Certification
Scheme complements the ERF
as a voluntary quality assurance
scheme to distinguish PEIs with
higher standards in key areas of
management and provision of
educational services.
These PEIs have put in place
systems and processes to ensure
high standards of service for their
students. The period of certification
of either one or four years depends
on the outcome of the assessment,
with better performers placed on a
four-year certification period.
In Financial Year 2013/14, the CPE
conducted close to 100 assessments.
Four PEIs progressed from the
one-year EduTrust Provisional
Award status to the four-year
EduTrust Award status. Six PEIs were
unsuccessful in the renewal of their
certification, and another six PEIs
allowed their certification to lapse due
to a change in business plan and/or
their inability to meet all the EduTrust
prerequisites to apply for the renewal.
Streamlining Administrative
Processes
As an engaged regulator, the CPE
has actively sought feedback
from PEIs and other stakeholders
like the industry associations to
enable us to better understand
the needs of the sector. We also
reviewed our processes and made
announcements on 30 October
2013 and 9 January 2014 about the
reduction of administrative burdens
and compliance costs for all PEIs
registered with the CPE.
This included a revised PEIstudent contract for PEIs to adopt.
Contractual clauses and specific
provisions under the EduTrust
Certification Scheme that could
be referenced to other documents
were removed, and legal jargon was
replaced with plain English where
possible. This helped to reduce the
original 19-page PEI-student contract
to just six pages. The simplified
contract can be easily understood
by students, and will enable PEIs to
better manage the filing of these
documents in the long run.
In the same tone, the CPE reviewed
the need for PEIs to submit
supporting documents with their
updated applications. First, PEIs will
no longer need to submit supporting
documents for the redeployment of
existing teachers within the same
PEI. Second, for non-degree courses
that have already been approved
by other government agencies, PEIs
now only need to submit an approval
or accreditation letter from the
government agency, or provide a
website link pertaining to the course
and approved teachers. Previously,
PEIs had to fill in a prescribed form
for submission.
In 2013, more insurance companies
were appointed for the Fee
Protection Scheme (FPS) insurance
and Industry-wide Course Fee
Insurance Scheme, paving the way
for more competitive premiums and
better service that will benefit PEIs
and their students. The window for
purchasing the FPS insurance for
EduTrust-certified PEIs has also
been extended from one to seven
working days, starting from the
date the student pays the fees.
During this period, students will still
be protected by a seven-day precoverage agreement that the CPE
had brokered with the insurance
THE CPE ANNUAL REPORT 2013/14
23
companies participating in the
FPS. The CPE has also reduced the
number of data fields pertaining to
the FPS-related data that EduTrustcertified PEIs must submit. In
addition, PEIs now only need to
report their FPS data once every
three or six months instead
of every month, which was the
previous requirement.
Financial Year 2013/14 also saw the
conclusion of a court prosecution
case against an unregistered PEI.
This is the first time since the
establishment of the CPE that the
manager of an unregistered PEI has
been prosecuted. On 17 February
2014, a manager of Kalaibharathi
International School Private Limited
(KBI) pleaded guilty for knowingly
assisting an unregistered PEI to
provide private education, and for
failing to comply with the CPE’s
directions to refund the course fees
received from students.
For the two offences, the manager
was fined $18,000 (in default 18
The CPE has also reviewed the
process of submitting data for the
annual returns exercise. PEIs can now
submit their annual returns via dataencrypted emails, instead of through
pre-assigned thumb drives.
Enforcement Action
On 20 September 2013, the CPE
imposed a financial penalty of
$70,000 on AEC College (AEC) for
its failure to matriculate students
into an external degree programme
within three months from the
commencement of their studies.
This was a breach in the terms and
conditions of AEC’s registration with
the CPE. AEC subsequently appealed
against the CPE’s imposition of a
financial penalty, but its appeal
was unsuccessful.
24
THE CPE ANNUAL REPORT 2013/14
The CPE’s management welcomed the delegation led by Mr Awangku Abdullah
Pg. Haji Tengah, Deputy Permanent Secretary (Higher Education) of the Ministry
of Education, Brunei.
Two CPE staff were attached to the New Zealand Qualifications Authority
as part of a three-year Memorandum of Cooperation.
weeks’ imprisonment) by the Court.
The other manager of KBI was
issued with a stern warning in lieu of
prosecution for her auxiliary role in
the commission of the offences. The
enforcement action taken reflects
the CPE’s steadfast commitment to
regulatory compliance.
International Engagements
The CPE has been actively forging
collaborations with its overseas
counterparts to strengthen
regulatory linkages and share best
practices for regulation of institutions
and courses.
As part of a three-year Memorandum
of Cooperation with the New Zealand
Qualifications Authority (NZQA),
the CPE hosted a visit by its Acting
Deputy Chief Executive, Ms Eve
McMahon on 12 April 2013, and had
a fruitful exchange about the CPE’s
regulatory framework. Later that
month, two CPE staff members were
sent on an attachment to NZQA
from 29 April to 3 May. During
their attachment, they gained a
better understanding of NZQA’s
external evaluation and review of
private training establishments. This
mutual sharing of practices and
experiences has helped to strengthen
ties between officers across both
agencies, serving as a foundation for
further collaboration in the future.
In March 2014, the collaboration
between both parties was further
strengthened when the CPE hosted
a visit from Ms Jane von Dadelszen,
following her appointment as the
Deputy Chief Executive of NZQA on
1 July 2013.
From 3 to 7 June 2013, the CPE made
an official trip to the United Kingdom
(UK) to engage key government
agencies and organisations in
the UK higher education sector.
THE CPE ANNUAL REPORT 2013/14
25
Meetings were held with the Quality
Assurance Agency for Higher
Education (QAA), the Office of the
Independent Adjudicator for Higher
Education, Universities UK and the
UK Council for International Student
Affairs. The CPE team also met with
representatives from the Office
of Qualifications and Examination
Regulation, the Office for Standards
in Education, Children’s Services and
Skills, and the Skills Funding Agency,
which are collectively responsible
for regulating and supporting the
development of further education
and skills training in the UK.
QAA UK on 26 September 2013
from Singapore. This was part of a
series of planned videoconferences
enabling the CPE and the QAA to
provide updates about significant
developments within their respective
jurisdictions. A strategic-level
videoconference with the QAA was
Following from the Memorandum
of Understanding that the CPE
signed with the QAA in April 2012,
the CPE conducted its first policy
dialogue with the QAA during
the visit to the UK. The dialogue
focused on providing updates
regarding strategic developments
within the two jurisdictions as well
as sharing observations pertaining
to collaborations between local
PEIs and universities from the
UK. Following up from the policy
dialogue in London, the CPE
conducted its first operationallevel videoconference with the
26
THE CPE ANNUAL REPORT 2013/14
held on 12 December 2013, where
the Chief Executive of both agencies
shared on developments within the
quality assurance framework in their
jurisdictions, and discussed potential
collaboration projects.
The CPE’s Chief Executive, Mr Brandon Lee, played host to the New Zealand
Qualifications Authority’s Acting Deputy Chief Executive, Ms Eve McMahon
on 12 April 2013.
International Visitors
1
Country
Organisation
Date
New Zealand
New Zealand Qualifications Authority
12 April 2013
Ms Eve McMahon
Acting Deputy Chief Executive
Quality Assurance Division
2
Brunei
Ministry of Education
21 May 2013
Delegation led by Mr Awangku Abdullah Pg. Haji Tengah
Deputy Permanent Secretary (Higher Education)
3
Oman
Higher Education Council
17 June 2013
Delegation led by Dr Younis Al-Khzami
Chief Executive Officer of the Public Authority of Manpower Register
4
United Arab
Emirates
Ministry of Education
5
Dubai
Knowledge and Human Development Authority
6
New Zealand
New Zealand Qualifications Authority
27 September 2013
Delegation led by H.E. Humaid Moh’d Al Qutami
Minister of Education
1 November 2013
Delegation led by Dr Wafi Dawood, Chief of Strategy & Excellence
5 March 2014
Delegation led by Ms Jane von Dadelszen
Deputy Chief Executive
Quality Assurance Division
7
Abu Dhabi,
United Arab
Emirates
Supreme Council for National Security Task Force, UAE
25 March 2014
Delegation led by Dr Zayed Al Otaiba
Executive Director of Talent Development at the National Electronic Security Authority
THE CPE ANNUAL REPORT 2013/14
27
Consumer Education
and
Student Services
Protecting the interests of Singapore’s private education students is at
the heart of what we do. This is why we constantly engage these students
and their parents, empowering them with the right knowledge to make
informed choices.
28
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29
Consumer Education
and Student Services
Since the inception of the Council
for Private Education (CPE) Student
Services Centre in 2009, the CPE
has continued to raise standards in
the private education sector through
effective consumer education and
student support initiatives.
The CPE has also helped students
and parents to make informed
education choices, by providing
vital information through various
outreach channels, as well as
by assisting students who have
problems with their Private
Education Institution (PEI).
Outreach Efforts
In Financial Year 2013/14, the CPE
participated in more than 10 fairs
and talks to reach out to students
from local Post-Secondary Education
Institutions, such as polytechnics
and Institute of Technical Education.
We also reached out to national
servicemen in the Singapore Armed
Forces and agencies under the Home
Team. Together with the information
the CPE has published in educational
supplements in several newspapers,
we have reached out to close to
45,000 students and their parents.
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THE CPE ANNUAL REPORT 2013/14
The CPE participated in more than 10 fairs and talks to reach out to
prospective students.
The CPE has redesigned the Student
Services Centre business card meant for
distribution to prospective students and
members of the public.
In November 2013, the CPE
collaborated with the Ministry of
Education’s (MOE) Career Guidance
Branch to incorporate links to
the CPE website in the MOE’s
Education and Career Guidance
(ECG) interactive portal. The ECG
portal provides guidance and
information for students at critical
junctures, enabling them to make
informed decisions regarding their
educational direction. Besides
links to the relevant web pages
in the CPE website, such as the
“Common Misconceptions about
Private Education in Singapore”
The CPE engaged prospective students from local Post-Secondary Education
Institutions, such as polytechnics and Institutes of Technical Education.
and “Guide for Choosing a Private
Education Institution”, key guiding
questions about private education
have also been incorporated into the
interactive web portal.
In line with our aim to raise
awareness and keep consumers
informed, the CPE implemented
a new “Student Advisories”
section within the CPE website
in July 2013 to publish cautionary
announcements and information that
prospective students should note
when deciding to study in PEIs in
Singapore. The new section has since
carried an announcement about a
PEI whose registration
has been terminated for
contraventions against the
Private Education Act, a warning
against a private school offering
diploma, bachelor’s and master’s
courses in Singapore when it
is not CPE-registered, and an
advisory describing the information
prospective students should have
before signing up with a PEI.
In November 2013, MyPaper, a
bilingual newspaper published
by the Singapore Press Holdings,
featured the common enquiries
THE CPE ANNUAL REPORT 2013/14
31
and problems faced by private
education students as well as the
work of the CPE Student Services
Centre’s officers, who shared their
experiences in handling grievances
from students and parents. The
feature highlighted the challenges
the CPE faced in managing the
issues brought up by private
education students.
In addition, the CPE has redesigned
the Student Services Centre business
card meant for distribution to
prospective students and members
of the public. The redesigned cards
incorporate common questions
raised by consumers, which aim to
remind the recipients of these cards
to ask themselves if they know the
answers to these basic questions
when considering private education.
Recipients are then directed via
a URL or a QR code to the CPE
website for answers.
per cent less than the total number
of cases in 2012. More than half of the
cases for 2013 came in via consumers
such as parents and friends of
students, and members of public.
These cases were mainly enquiries
(77 per cent) and complaints (21
per cent).
2%
21%
Profile of Individuals Filing Cases
77%
51%
Student Services
In 2013, the total number of
cases handled by the CPE was
approximately 3,500 – about eight
32
Nature of Cases
THE CPE ANNUAL REPORT 2013/14
35%
Enquiries
Complaints
Feedback and
Compliments
CPE Mediation-Arbitration
Scheme
14%
Parents, Relatives,
Friends and Members
of the Public
Students
PEIs
In 2013, 18 cases were referred to the
Singapore Mediation Centre (SMC).
The number of cases referred to SMC
under the CPE Mediation-Arbitration
Scheme has increased four-fold since
the launch of the scheme in May 2010.
About 64 per cent of the cases
referred to SMC were disputes
regarding administrative issues with
PEIs. Disputes related to certificates
and fees were the next two highest
contributors, at 18 per cent and 13
per cent respectively.
In 2013, four cases were escalated
to arbitration, as students were
unable to reach a mutual settlement
during the mediation stage. The
desired outcome for these cases
was monetary compensation from
the PEIs for the students’ paid fees.
Half of these cases were awarded
in favour of the students at the
arbitration phase.
In September 2013, the CPE updated
the Dispute Resolution web page on
its website to provide students and
parents with greater clarity regarding
how the scheme works, and how
students can resolve disputes with
their PEI. The Terms of Reference
for the Dispute Resolution Centres
of the CPE Mediation-Arbitration
Scheme was included. We have also
featured a step-by-step process chart
to outline the key steps involved in
the dispute resolution process. The
details of the Dispute Resolution
Scheme have been presented in a
student-friendly manner, allowing
the scheme to be easily understood
by students.
The redesigned Student Services Centre business card highlighted common
questions from students and the public, and has a QR code leading to the
CPE website.
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33
Industry
Development
The CPE works closely with industry stakeholders and partners to improve
the capabilities of Singapore’s private education sector in three key ways:
adopt sustainable, student-centric business models; improve student support
services; and improve the quality and standards of academic programmes.
34
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100
75
50
25
0
THE CPE ANNUAL REPORT 2013/14
35
Industry Development
The Council for Private Education
(CPE) works closely with industry
stakeholders and partners to
develop the industry, and improve
the capabilities of Singapore’s
private education institutions (PEIs).
The CPE has continued its practice
of engaging PEIs on a regular
basis to build ties with the industry
and discuss industry needs and
challenges. Over the past year, the
CPE made significant engagements
(at the Chief Executive level and
above) with 37 PEIs as part of our
wider industry engagement efforts.
In the past year, the CPE introduced
new platforms of industry outreach
to facilitate greater collaboration and
the sharing of best practices. The
CPE has also continued its efforts
to drive capability development,
ensuring that the private education
sector is able to meet regulatory
requirements and standards.
Private Education Conference
2013
The inaugural Private Education
Conference, based on the theme
“Raising the Bar on Quality”, was
held on 9 April 2013.
36
The event was supported by partner
agencies such as International
Enterprise Singapore, the Institute
for Adult Learning and SPRING
Singapore, as well as industry partners
such as the Education Services Union
and the Singapore Association for
Private Education (SAPE).
The conference was graced by the
Senior Minister of State for Law and
Education, Ms Indranee Rajah, and
garnered a good turnout – more than
200 senior management staff from
more than 120 PEIs attended the
event. The conference provided key
insights into the state of the private
education sector, and helped to set
the quality imperative for the industry.
Participants at the event were urged
to work on improving quality in three
key ways: adopt sustainable, studentcentric business models; improve
students support services; and
improve the quality and standards of
academic programmes. During the
conference, participants were also
able to network with industry peers
and learn best practices.
Ms Claire Field, the Chief Executive
Officer of the Australian Council
THE CPE ANNUAL REPORT 2013/14
for Private Education and Training,
delivered the keynote address at
the conference. She argued that it is
imperative for PEIs to embrace quality
to shape their programme offerings,
so as to ensure accountability and
business sustainability.
Industry Outreach and
Communications Platforms
Building on the success of the
Private Education Conference 2013,
the CPE launched new industry
communications initiatives to
facilitate collaboration and the
sharing of best practices within
the private education sector.
These initiatives included the
launch of a half-yearly electronic
newsletter, “Class Notes”, in Dec
2013. Class Notes is a thematic
publication designed to share best
practices about enabling staff
competencies, academic excellence
and institutional capabilities with
the sector. We have also launched
a bi-monthly electronic bulletin
(e-bulletin) to share notable
educational news, information and
developmental opportunities. The
e-bulletin also informs the sector
about enforcement action taken
The CPE has also continued its efforts to
drive capability development, ensuring
that the private education sector delivers
quality provisions and achieves the
intended educational outcomes.
against errant PEIs, and alerts
them about the latest industry
announcements that have been
published on the CPE website.
The CPE has introduced thematic
industry seminars as well, enabling
PEIs in the private education sector
to interact with and learn from each
other. The first industry seminar
about teaching and learning was
attended by 370 management and
academic staff from about 130
PEIs. At the seminar, education
practitioners such as the Australian
Council for Education Research,
Republic Polytechnic, McGraw-Hill
Education, Nanyang Polytechnic
and the Infocomm Development
Authority of Singapore (IDA)
provided insights into enhancing
student learning and outcomes.
Another industry seminar about
quality assurance in education
attracted 280 management staff and
quality assurance personnel from
about 120 PEIs. The participants
were able to learn from quality
assurance practitioners from SIM
The CPE’s Chief Executive, Mr Brandon Lee, spoke at the inaugural Private Education Conference, which was based
on the theme “Raising the Bar on Quality”.
THE CPE ANNUAL REPORT 2013/14
37
University, Curtin Singapore, the
Institute of Technical Education
and the Singapore Quality Institute.
Drawing lessons from these insightful
sharing sessions, participants at the
events were encouraged to engage in
continual improvement reviews within
their institutions.
Technology Enablers: Learning
and Analytics Systems
The CPE views technology as a key
enabler that drives productivity in
PEIs, and we actively encourage
the use of Information and
Communications Technology to
promote operational excellence.
Building on the launch of our
industry initiative regarding the
adoption of school management
systems in 2012, the CPE facilitated
the sector’s participation in the
2013 Sectoral Productivity Callfor-Collaboration (CFC), which
was initiated by IDA and SPRING
Singapore. The CFC provided a
platform for the sector to better
aggregate demand, so that smalland medium-sized PEIs can gain
access to learning and analytics
38
The CPE inaugural half-yearly electronic newsletter, “Class Notes”, was one
of several new communication channels initiated by the CPE in 2013.
systems to improve their academic
processes and enhance the learning
outcomes of their students.
The private education sector’s
response to the initiative has been
positive – at the close of the CFC
submission, a total of 30 PEIs
indicated their interest in the project.
THE CPE ANNUAL REPORT 2013/14
Partnering the Industry
The CPE has continued to actively
engage the private education
sector’s two industry associations –
SAPE and the Association of Private
Schools and Colleges Singapore.
Regular dialogue sessions with the
two associations have been held as a
platform for the senior management
staff of the CPE and the associations
to regularly share plans and
explore possible collaboration in
improving the quality of the sector. The dialogues have also provided
an opportunity for the CPE to
understand the challenges that the
industry’s players face.
THE CPE ANNUAL REPORT 2013/14
39
Our People
The work that we do would be impossible without the most important factor
of all – our people. At the CPE, we know that engaging and developing our
staff is the key to a better CPE, and a better sector regulator.
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THE CPE ANNUAL REPORT 2013/14
41
Our People
The Council for Private Education
(CPE) recognises that our talented
and dedicated people are the driving
force behind our mission. We build a
strong and cohesive workforce through
professional development, teamwork
and a family-friendly culture where
work-life balance is vital.
Organisational Restructuring
The reorganisation, which was effective
on 1 February 2014, saw the creation
of new departments to ensure that the
CPE remains effective in carrying out its
mission within a dynamic environment.
These included the formation of
the Monitoring and Investigation
Department and the Registration
Department, which split from the
previous Inspection and Registration
Department, and the new Consumer
Education Department, which split from
the CPE Student Services Centre.
The team-building event unveiled several chefs in the making, and fostered
team spirit and stronger working relationships among the CPE’s staff.
Staff Well-being
event was well received, and the
CPE’s officers got to know about the
benefits of staying healthy.
ensuring a comprehensive suite of
programmes for the benefit of staff
and the organisation.
In collaboration with the Academy
of Singapore Teachers, a health
screening-cum-health talk was
organised for the CPE’s officers on
25 June 2013. Staff could opt for a
free basic health screening or pay
for a more comprehensive one. The
Other programmes to promote
staff well-being such as flexi-work
arrangements, a designated Exercise
Day for staff to leave an hour early
to join colleagues for sports or
exercise, and the quarterly Eat with
Your Family Day remained in place,
The staff welfare committee – tHE fUN
cLUB – had also organised various
activities to promote staff well-being,
and these included a 10km cycling
event along the East Coast on 20
September 2013, organisation-wide
celebrations for the major festivals
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THE CPE ANNUAL REPORT 2013/14
We build a strong and cohesive workforce
through professional development,
teamwork and a family-friendly culture
where work-life balance is vital.
such as Deepavali and Christmas, and
a trek at the MacRitchie reservoir on
28 March 2014.
Staff Engagement
The CPE’s staff members enjoyed a refreshing trek at the MacRitchie Reservoir.
To enhance communication and
camaraderie, staff departmental
retreats were conducted for the first
time in 2013. At these retreats, the
CPE’s staff discussed their work plans
for the coming year, and bonded
over fun activities. Our staff also had
meaningful discussions about how to
make the CPE an even better place
to work in. In addition, half-yearly
sessions with the Chief Executive
were held to foster an inclusive
culture, creating an atmosphere of
trust and appreciation.
Held in May each year, the staff
conference allowed the management
team to keep the organisation
abreast of the latest developments
and upcoming plans for the year.
On 23 May 2013, the Chief Executive
shared about the state of the private
Staff members partook in a leisurely 10km cycle event for the second year.
education sector, the progress made
and the aspirations for the sector. As
the event coincided with the Public
Service Week, Deputy Prime Minister
Teo Chee Hean’s message for the
Public Service was also shared. The
THE CPE ANNUAL REPORT 2013/14
43
CPE’s staff recited the Public Service
Pledge as well, reaffirming their
commitment to serve the nation and
its people.
The team-building event on 7
November 2013 took the form of
a “Top Chef” cooking competition,
where teams vied for the top
honour. The event sought to foster
team spirit and stronger working
relationships among the CPE’s staff –
both within and across departments.
Besides the excitement of the
friendly competition, the event was
also a great opportunity for our staff
to bond with their fellow colleagues,
and get to know one another better.
of our service to the public. It helps
to build a capable, innovative and
forward-looking Civil Service that can
create the conditions necessary for a
successful and vibrant Singapore.
The CPE’s departments have
also initiated their own learning
platforms, such as regular sharing
sessions within the departments
to understand how to deal with
customers, and organisationalwide sessions about how EduTrust
assessments are conducted.
Care for the Community
On 31 May 2013, the CPE held a
Charity Challenge to contribute to a
good cause.
Club Rainbow, an organisation that
helps children and youth suffering
from chronic and life-threatening
illnesses, was the beneficiary for
the event. Our staff scaled the
stairs of the office building in return
for donations. From the pledges
received, the CPE donated a total of
$9,000 to Club Rainbow.
Staff Development
The CPE values its staff, and believes
that every officer has talent and ability
that should be developed to the fullest.
The CPE Training Plan aims to build
a culture of continual learning that
spurs our officers to improve their
skills, knowledge and capabilities,
ensuring lifelong employability
for every individual. Ultimately,
training nurtures a commitment to
excellence and improves the quality
44
THE CPE ANNUAL REPORT 2013/14
The CPE staff scaled stairs in return for pledges, and donated a total of
$9,000 to Club Rainbow.
In addition, because CPE officers
climbed a total of 72,240 steps
during their training sessions and at
the actual event, 3M donated 722
stationery items to needy students as
part of the 3M Step-Up Challenge @
South East, a South East Community
Development Council programme.
The SPOT Award
To foster the CPE’s corporate culture
of “Proactive, Respect, Open and
Supportive”, the SPOT Award has been
introduced to recognise staff who have
gone beyond the call of duty to make
noteworthy contributions.
The inaugural awards were given
out to two staff members on 10
January 2014 for their commendable
fundraising efforts for Club Rainbow.
Their desire to do their part for the
community has been inspiring.
THE CPE ANNUAL REPORT 2013/14
45
Financial Statements
47 Statement by
Board Members
52 Statement of
Comprehensive Income
54 Statement of
Cash Flows
48 Independent
Auditor’s Report
53 Statement of
Changes in Equity
55 Notes to the
Financial Statements
51 Statement of
Financial Position
46
THE CPE ANNUAL REPORT 2013/14
Statement by
Board Members
For the financial year ended 31 March 2014
In our opinion,
(i)
the accompanying financial statements of the Council for Private Education (the “Council”) as set out on pages 51 to
72 are properly drawn up in accordance with the provisions of the Private Education Act (Chapter 247A) and Statutory
Board Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Council as at
31 March 2014 and of the results, changes in equity and cash flows of the Council for the year ended on that date;
(ii) at the date of this statement, there are reasonable grounds to believe that the Council will be able to pay its debts
as and when they fall due; and
(iii)
the receipts, expenditure, and investment of monies and acquisition and disposal of assets by the Council during the
financial year have been in accordance with the provisions of the Act.
The Board has, on the date of this statement, authorised these financial statements for issue.
On behalf of the Board,
Lin Cheng Ton
Chairman
Brandon Lee
Chief Executive
Singapore
Date: 24 June 2014
THE CPE ANNUAL REPORT 2013/14
47
Independent
Auditor’s Report
For the financial year ended 31 March 2014
Report on the Financial Statements
We have audited the accompanying financial statements of the Council for Private Education (the “Council”) set out
on pages 51 to 72, which comprise the statement of financial position as at 31 March 2014, statement of comprehensive
income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the
provisions of the Private Education Act (Chapter 247A)) (the “Act”) and Statutory Board Financial Reporting Standards
and for such internal control as management determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the 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 and fair presentation of the financial statements
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.
48
THE CPE ANNUAL REPORT 2013/14
Independent
Auditor’s Report
For the financial year ended 31 March 2014
Opinion
In our opinion, the financial statements are properly drawn up in accordance with the provisions of the Act and Statutory
Board Financial Reporting Standards so as to present fairly, in all material respects, the state of affairs of the Council as
at 31 March 2014, and the results, changes in equity and cash flows of the Council for the year ended on that date.
Report on other legal and regulatory requirements
Management’s Responsibility for Compliance with Legal and Regulatory Requirements
Management is responsible for ensuring that the receipts, expenditure, investment of monies and the acquisition and
disposal of assets, are in accordance with the provisions of the Act. This responsibility includes implementing accounting
and internal controls as management determines are necessary to enable compliance with the provisions of the Act.
Auditor’s Responsibility
Our responsibility is to express an opinion on management’s compliance based on our audit of the financial statements.
We conducted our audit in accordance with Singapore Standards on Auditing. We planned and performed the
compliance audit to obtain reasonable assurance about whether the receipts, expenditure, investment of monies and the
acquisition and disposal of assets, are in accordance with the provisions of the Act.
Our compliance audit includes obtaining an understanding of the internal control relevant to the receipts, expenditure,
investment of monies and the acquisition and disposal of assets; and assessing the risks of material misstatement of the
financial statements from non-compliance, if any, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Because of the inherent limitations in any accounting and internal control system, noncompliances may nevertheless occur and not be detected.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
management’s compliance.
THE CPE ANNUAL REPORT 2013/14
49
Independent
Auditor’s Report
For the financial year ended 31 March 2014
Opinion
In our opinion:
(a) the receipts, expenditure, investment of monies and the acquisition and disposal of assets by the Council during
the year are, in all material respects, in accordance with the provisions of the Act; and
(b) proper accounting and other records have been kept, including records of all assets of the Council whether
purchased, donated or otherwise.
Audit Alliance LLP
Public Accountants and Chartered Accountants Singapore
Date: 24 June 2014
50
THE CPE ANNUAL REPORT 2013/14
Statement of
Financial Position
As at 31 March 2014
2014
S$
2013
S$
389,957
81,460
471,417
461,753
189,573
651,326
6,333
123,420
174,440
6,057,199
6,361,392
2,825
123,420
101,719
5,171,844
5,399,808
6,832,809
6,051,134
7
3,740,279
1,828,777
5,569,056
3,740,279
1,157,615
4,897,894
8
9
1,137,308
104,333
1,241,641
1,025,978
92,283
1,118,261
10
22,112
1,263,753
34,979
1,153,240
6,832,809
6,051,134
Note
ASSETS
Non-current asset
Plant and equipment
Intangible asset
Current assets
Other receivables
Deposits
Prepayments
Cash and cash equivalents
4
5
6
Total assets
EQUITY
Capital account
Accumulated surplus
Total equity
LIABILITIES
Current liabilities
Trade and other payables
Deferred income
Non-current liability
Deferred capital grant
Total liabilities
Total equity and liabilities
The accompanying notes form an integral part of these financial statements
THE CPE ANNUAL REPORT 2013/14
51
Statement of
Comprehensive Income
For the financial year ended 31 March 2014
Note
Income
Application fees
Certification fees
Annual fees
Fines and penalties
Others
Operating expenditure
Expenditure on manpower
Depreciation of plant and equipment
Amortisation of intangible asset
Rental of premises and others
Utilities
Repairs and maintenance
Publications and advertising expenses
Staff welfare and development
Transport, postage and communications
Contract services
Legal and other professional fees
Other operating expenses
12
4
5
11
Deficit before grants
2014
S$
2013
S$
358,090
177,127
119,817
75,500
60,984
791,518
351,211
221,154
126,616
4,353
703,334
(7,063,003)
(117,532)
(135,113)
(867,321)
(29,029)
(320,836)
(21,350)
(63,492)
(83,522)
(774,251)
(579,936)
(1,126,492)
(11,181,877)
(6,720,609)
(121,664)
(77,065)
(847,226)
(38,723)
(379,745)
(80,957)
(67,323)
(89,242)
(874,775)
(608,994)
(686,112)
(10,592,435)
(10,390,359)
(9,889,101)
Grants
Grants received from Government
Deferred capital grants amortised
10
11,384,121
12,867
11,396,988
10,841,919
13,885
10,855,804
Surplus for the year before statutory contribution to consolidated fund
12
1,006,629
966,703
Statutory contribution to consolidated fund
13
Net surplus for the year, representing total comprehensive income for the year
The accompanying notes form an integral part of these financial statements
52
THE CPE ANNUAL REPORT 2013/14
(335,467)
671,162
(39,102)
927,601
Statement of
Changes in Equity
For the financial year ended 31 March 2014
2014
Beginning of financial year
Total comprehensive income for the year
End of financial year
2013
Beginning of financial year
Issue of share capital
Total comprehensive income for the year
End of financial year
Capital
Account
S$
Accumulated
Surplus
S$
Total
S$
3,740,279
1,157,615
4,897,894
-
671,162
671,162
3,740,279
1,828,777
5,569,056
3,715,362
230,014
3,945,376
24,917
-
24,917
-
927,601
927,601
3,740,279
1,157,615
4,897,894
The accompanying notes form an integral part of these financial statements
THE CPE ANNUAL REPORT 2013/14
53
Statement of
Cash Flows
For the financial year ended 31 March 2014
Note
Cash flows from operating activities
Deficit before grants and statutory contribution to consolidated fund
Adjustment for:
Depreciation of plant and equipment
Amortisation of intangible asset
Interest received
Plant & equipment
- expensed off
- written off, net
Deficit before working capital changes
4
5
12
Cash flows from investing activities
Purchase of plant and equipment
Plant & equipment expensed off
Purchase of intangibles
Net cash used in investing activities
THE CPE ANNUAL REPORT 2013/14
117,532
135,113
(7,649)
121,664
77,065
-
(64,301)
(655,122)
(60,967)
(10,470,762)
13
(164,340)
7,649
(10,159,602)
(39,102)
(10,509,864)
4
12
5
(48,891)
(263,273)
(27,000)
(339,164)
(6,000)
(6,000)
-
Cash and cash equivalents at beginning of financial year
54
(9,889,101)
(76,229)
(59,797)
12,050
(10,002,911)
Net increase in cash and cash equivalents
The accompanying notes form an integral part of these financial statements
(10,390,359)
(9,690,372)
Cash flows from financing activities
Issuance of share capital
Government grants received
Net cash generated from financing activities
Cash and cash equivalents at end of financial year
2013
S$
263,273
3,155
(9,878,935)
Changes in working capital:
Other receivables, deposits and prepayments
Trade and other payables
Deferred income
Cash used in operations
Contribution paid to consolidated fund
Interest received
Net cash used in operating activities
2014
S$
6
11,384,121
11,384,121
24,917
10,841,919
10,866,836
885,355
350,972
5,171,844
4,820,872
6,057,199
5,171,844
Notes to the
Financial Statements
For the financial year ended 31 March 2014
These notes form an integral part of the financial statements.
1. Domicile and activities
The Council for Private Education (the “Council”) was established on 1 December 2009 under the Private Education
Act (Chapter 247A). Its registered office is at 2 Bukit Merah Central, #05-00, Singapore 159835 and its principal place
of business is in Singapore.
The Council is subjected to the control of its supervisory ministry, Ministry of Education (“MOE”) and is required
to follow the policies and instructions issued from time to time by MOE and other government ministries and
departments such as the Ministry of Finance (“MOF”).
The principal activities of the Council are:
(a)To assess private education institutions for registration and EduTrust certification; and
(b)To promote the development of the private education industry.
2.
Basis of preparation
2.1 Statement of compliance
The financial statements have been prepared in accordance with the provisions of the Private Education Act
(Chapter 247A) and Statutory Board Financial Reporting Standards (“SB-FRS”). SB-FRS includes Statutory
Board Financial Reporting Standards, Interpretations of SB-FRS and SB-FRS Guidance Notes as promulgated
by the Accountant-General.
2.2
Basis of measurement
The financial statements have been prepared on the historical cost basis except for certain financial assets and
liabilities as disclosed in the accounting policies below.
2.3 Functional and presentation currency
The financial statements are presented in Singapore Dollars which is the Council’s functional currency.
THE CPE ANNUAL REPORT 2013/14
55
Notes to the
Financial Statements
For the financial year ended 31 March 2014
2.
Basis of preparation (continued)
2.4 Uses of estimates and judgements
The preparation of financial statements in conformity with SB-FRS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.
3.
Summary of significant accounting policies
The accounting policies adopted are consistent with those of the previous financial year except in the current financial
year, the Council has adopted all the new and revised SB-FRS and interpretations to SB-FRS (INT SB-FRS) that are
effective for annual periods beginning on or after 1 April 2013.
The adoption of these standards and interpretations did not have any material effect on the Council’s financial statements.
3.1 Foreign currency transactions
Transactions in foreign currencies are translated to the functional currency of the Council at the exchange rate
at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting
date are retranslated to the functional currency at the exchange rate at the reporting date. Non-monetary assets
and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional
currency at the exchange rate at the date on which the fair value was determined.
Foreign currency differences arising on retranslation are recognised in the statement of comprehensive income.
3.2 Property, plant and equipment
56
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the
asset to a working condition for its intended use, and the cost of dismantling and removing the items and
restoring the site on which they are located. Purchased software that is integral to the functionality of the
related equipment is capitalised as part of that equipment.
THE CPE ANNUAL REPORT 2013/14
Notes to the
Financial Statements
For the financial year ended 31 March 2014
3. Summary of significant accounting policies (continued)
3.2 Property, plant and equipment (continued)
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of
the item if it is probable that the future economic benefits embodied within the part will flow to the Council and
its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are
recognised in the statement of comprehensive income as incurred.
Depreciation on property, plant and equipment is based on the cost of an asset less its residual value. Significant
components of individual assets are assessed and if a component has a useful life that is different from the
remainder of that asset, that component is depreciated separately.
Depreciation on property, plant and equipment is recognised in the statement of comprehensive income
(surplus or deficit) on a straight-line basis over the estimated useful lives (or lease term, if shorter) of each part
of an item of property, plant and equipment.
The estimated useful lives are as follows:
Furniture and fittings
Office equipment
Depreciation methods, useful lives and residual values are reviewed and adjusted as appropriate, at each
reporting date.
Fully depreciated assets are retained in the books of accounts until they are no longer in use.
8 to 10 years
5 years
3.3 Intangible Assets
Intangible assets are measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets are amortised in the income and expenditure statement on a straight-line basis over their
estimated useful lives of 3 to 5 years, from the date on which they are available for use.
THE CPE ANNUAL REPORT 2013/14
57
Notes to the
Financial Statements
For the financial year ended 31 March 2014
3. Summary of significant accounting policies (continued)
3.4 Financial instruments
58
Financial assets
Financial assets are recognised when, and only when, the Council becomes a party to the contractual provisions
of the financial instruments. The Council determines the classification of its financial assets at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets
not at fair value through profit or loss, directly attributable transaction costs.
The subsequent measurement of financial assets depends on their classification as follows:
Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market
are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at
amortised cost using the effective interest method, less any impairment losses. Gains and losses are recognised in
profit and loss when the loans and receivables are derecognised or impaired, and through the amortisation process.
The Council classifies the following financial assets as loans and receivables:
(a)
Cash and cash equivalents
(b)
Other receivables
(c)Deposits
(d)Prepayments
A financial asset is de-recognised where the contractual right to receive cash flows from the asset has expired.
On de-recognition of a financial asset in its entirety, the difference between the carrying amount and the sum
of the consideration received and any cumulative gain or loss that has been recognised in other comprehensive
income is recognised in the comprehensive income and expenditure statement.
Financial liabilities and equity instruments
Financial liabilities and equity instruments issued by the Council are recognised when, and only when, the
Council becomes a party to the contractual provisions of the financial instruments. The Council determines the
classification of its financial liabilities and equity instruments at initial recognition.
THE CPE ANNUAL REPORT 2013/14
Notes to the
Financial Statements
For the financial year ended 31 March 2014
3. Summary of significant accounting policies (continued)
3.4 Financial instruments (continued)
Financial liabilities and equity instruments (continued)
When financial liabilities are recognised initially, they are measured at fair value, plus, in the case of financial
liabilities not at fair value through profit or loss, directly attributable transaction costs.
The Council classifies the following as financial liabilities and equity instruments:
(a) Financial liabilities
i.
Trade and other payables
ii.
Accrued expenses
(b)
Equity instruments
i.Capital
Shares are classified as equity. Incremental costs directly attributable to the issue of shares are recognised
as a deduction from equity, net of tax effects.
The subsequent measurement of financial liabilities depends on their classification as follows:
(a)
Financial liabilities at fair value through profit and loss
Financial liabilities at fair value through profit or loss includes financial liabilities held for trading and
financial liabilities designated upon initial recognition at fair value through profit or loss. Financial liabilities
are classified as held for trading if they are acquired for the purpose of selling in the near term. This
category includes derivative financial instruments entered into by the Council that are not designated as
hedging instruments in hedge relationships. Separated embedded derivatives are also classified as held
for trading unless they are designated as effective hedging instruments.
Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair
value. Any gains or losses arising from changes in fair value of the financial liabilities are recognised in the
comprehensive income and expenditure statement.
The Council has not designated any financial liabilities upon initial recognition at fair value through profit
or loss.
THE CPE ANNUAL REPORT 2013/14
59
Notes to the
Financial Statements
For the financial year ended 31 March 2014
3. Summary of significant accounting policies (continued)
3.4 Financial instruments (continued)
Financial liabilities and equity instruments (continued)
(b)
Other financial liabilities
After initial recognition, other financial liabilities are subsequently measured at amortised cost using the
effective interest rate method. Gains and losses are recognised in profit and loss when the liabilities are
derecognised, and through the amortisation process.
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a
de-recognition of the original liability and the recognition of a new liability, and the difference in the respective
carrying amounts is recognised in the comprehensive income and expenditure statement.
3.5 Impairment
60
Financial assets (including receivables)
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine
whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if
objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the
loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
Objective evidence that financial assets (including equity securities) are impaired can include default or
delinquency by a debtor, restructuring of an amount due to the Council on terms that the Council would not
consider otherwise, indications that a debtor or issuer will enter bankruptcy, the disappearance of an active
market for a security. In addition, for an investment in an equity security, a significant or prolonged decline in
its fair value below its cost is objective evidence of impairment.
The Council considers evidence of impairment for receivables at a specific level. All individually significant
receivables are assessed for specific impairment.
THE CPE ANNUAL REPORT 2013/14
Notes to the
Financial Statements
For the financial year ended 31 March 2014
3. Summary of significant accounting policies (continued)
3.5 Impairment
Financial assets (including receivables) (continued)
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s
original effective interest rate. Losses are recognised in the statement of comprehensive income and reflected
in an allowance account against receivables. Interest on the impaired asset continues to be recognised through
the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease,
the decrease in impairment loss is reversed through the statement of comprehensive income.
Non-financial assets
The carrying amounts of the Council’s non-financial assets are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value
less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually
are grouped together into the smallest group of assets that generate cash inflows from continuing use that are
largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit, or CGU).
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable
amount. Impairment losses are recognised in the statement of comprehensive income.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that
the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. 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, net of
depreciation, if no impairment loss had been recognised.
THE CPE ANNUAL REPORT 2013/14
61
Notes to the
Financial Statements
For the financial year ended 31 March 2014
3. Summary of significant accounting policies (continued)
3.6Grants
Government grants are recognised at their fair value where there is reasonable assurance that the grant will be
received and all required conditions will be complied with.
Government grants received by the Council to meet the current year’s operating expenses are recognised by
the Council as income in the year these operating expenses were incurred. Grants received in advance are
recorded in the statement of financial position of the Council.
Grants received from the Ministry for capital expenditure are taken to the deferred capital grants account upon
the utilisation of the grants for purchase of plant and equipment and intangible assets, which are capitalised,
or to income or expenditure for purchase of plant and equipment and intangible assets which are written off in
the year of purchase.
Deferred capital grants are recognised as income over the periods necessary to match the depreciation,
amortisation, write off and/or impairment loss of the plant and equipment and intangible assets purchased with
the related grants. Upon the amortisation or disposal of plant and equipment and intangible assets, the balance
of the related deferred capital grants is recognised as income to match the carrying amount of the plant and
equipment and intangible assets disposed.
3.7 Provisions
62
Provisions are recognised when the Council has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and the amount of the obligation can be estimated reliably.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.
If it no longer probable than an outflow of economic resources will be required to settle the obligation, the
provision is reversed. If the effect of the time value of money is material, provisions are discounted using a
current pre tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is recognised as a finance cost.
THE CPE ANNUAL REPORT 2013/14
Notes to the
Financial Statements
For the financial year ended 31 March 2014
3. Summary of significant accounting policies (continued)
3.8 Leases
When the Council is the lessee of an operating lease
Where the Council has the use of assets under operating leases, payments made under the leases are
recognised in the statement of comprehensive income on a straight-line basis over the term of the lease. Lease
incentives received are recognised in the statement of comprehensive income as an integral part of the total
lease payments made. Leased assets under operating leases are not recognised in the Council’s statement of
financial position.
3.9 Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognised as an expense in the
statement of comprehensive income as incurred.
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 Council has a
present legal or contractual obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.
Employee leave entitlement
Employee entitlements to annual leave are recognised when they are accrued to employees. A provision is made
for the estimated liability for annual leave as a result of services rendered by employees up to the reporting date.
THE CPE ANNUAL REPORT 2013/14
63
Notes to the
Financial Statements
For the financial year ended 31 March 2014
3. Summary of significant accounting policies (continued)
3.10 Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Council and
the revenue can be reliably measured.
Application fees
Application fees are recognised upon the receipts of the applications and fees.
Income from rendering of services (including certification fees)
Income from rendering of services is recognised when the services have been rendered.
Annual fees
Annual fees are recognised over the period which the certificate is granted.
Fines and penalties
64
Fines imposed on the violation of the Private Education Act (Chapter 247A) is recognised as income upon
receipt of the fine payment.
Interest income
Interest income is recognised on an accrual basis.
THE CPE ANNUAL REPORT 2013/14
Notes to the
Financial Statements
For the financial year ended 31 March 2014
3. Summary of significant accounting policies (continued)
3.11 Goods and Services tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax except:
(a) Where the goods and services tax incurred on a purchase of assets or services is not recoverable from the
taxation authority, in which case the goods and services tax is recognised as part of the cost of acquisition
of the asset or as part of the expense item as applicable; and
(b) Receivables and payables that are stated with the amount of goods and services tax included.
The net amount of goods and services tax recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the balance sheet.
3.12 Related parties
The Council is established as a statutory board and is an entity related to the Government of Singapore. The
Council’s related parties refer to Government-related entities including Ministries, Organs of State and other
Statutory Boards. The Council applies the exemption in Paragraph 25 of SB-FRS 24 Related Party Disclosures,
and required disclosures are limited to the following information to enable users of the Council’s financial
statements to understand the effect of related party transactions on the financial statements:
(i)
the nature and amount of each individually significant transaction with Ministries, Organs of State and
other Statutory Boards; and
(ii)
for other transactions with Ministries, Organs of State and other Statutory Boards that are collectively but
not individually significant, a qualitative or quantitative indication of their extent.
3.13 New standards and interpretations not yet adopted
New standards, amendments to standards and interpretations that are not yet effective for the year ended 31
March 2014 have not been applied in preparing these financial statements. None of these are expected to have
a significant effect on the financial statements of the Council.
THE CPE ANNUAL REPORT 2013/14
65
Notes to the
Financial Statements
For the financial year ended 31 March 2014
4. Plant and equipment
2014
Cost
Beginning of financial year
Additions
Written-off
End of financial year
Accumulated depreciation
Beginning of financial year
Depreciation charge
Written-off
End of financial year
Office
equipment
S$
Total
S$
580,289
36,609
(5,940)
610,958
225,759
12,282
238,041
806,048
48,891
(5,940)
848,999
217,961
70,979
(2,785)
286,155
126,334
46,553
172,887
344,295
117,532
(2,785)
459,042
65,154
389,957
Net book value
End of financial year
324,803
2013
Cost
Beginning of financial year
Reclassification
Additions
End of financial year
577,289
3,000
580,289
638,359
(415,600)
3,000
225,759
1,215,648
(415,600)
6,000
806,048
Accumulated depreciation
Beginning of financial year
Reclassification
Depreciation charge
End of financial year
146,771
71,190
217,961
224,822
(148,962)
50,474
126,334
371,593
(148,962)
121,664
344,295
362,328
99,425
461,753
Net book value
End of financial year
66
Furniture
and fitting
S$
THE CPE ANNUAL REPORT 2013/14
Notes to the
Financial Statements
For the financial year ended 31 March 2014
5. Intangible asset
2014
S$
2013
S$
Cost
Beginning of financial year
Reclassification
Additions
End of financial year
415,600
27,000
442,600
415,600
415,600
Accumulated amortisation
Beginning of financial year
Reclassification
Amortisation charge
End of financial year
226,027
135,113
361,140
148,962
77,065
226,027
81,460
189,573
2014
S$
2013
S$
2,927,261
3,129,938
6,057,199
2,166,486
3,005,358
5,171,844
Net book value
6.
Cash and cash equivalents
Cash and bank balances
Cash with Accountant-General’s Department
Included in the cash and cash equivalents are:
(a)
an amount of S$3,129,938 (2013: S$3,005,358) which does not earn any interest.
(b)
the balance of S$2,927,261 is managed under the Centralised Liquidity Management (“CLM”) scheme as set out
in the Accountant-General’s Circular’s No. 4/2009 which the Council partake in the scheme from November
2013. These are short term deposits earning interest ranging from 0.66% to 0.70 %. In the previous financial
year, the amount of $2,166,486 was maintained with a commercial bank and did not earn any interest.
THE CPE ANNUAL REPORT 2013/14
67
Notes to the
Financial Statements
For the financial year ended 31 March 2014
7.Capital
2014
At 1 April and 31 March
No. of
shares
3,740,279
S$
3,740,279
2013
No. of
shares
3,740,279
S$
3,740,279
The capital account represents equity injections by the Minister for Finance, a body corporate incorporated by the
Minister for Finance (Incorporation) Act (Cap. 183), in its capacity as shareholder under the debt-equity framework
for statutory boards, implemented with effect from 1 September 2004. Under this framework, capital projects will be
partially funded by the Minister for Finance as equity injection, and the remaining through loans or general funds of
the Council.
Capital management
The Council’s objectives when managing capital is to maintain a strong capital base so as to sustain its operations and
the future development of the Council. The capital structure of the Council mainly consists of capital received from
its equity holder and grants from the government.
There were no changes in the Board’s approach to capital management during the year. The Council is not subject to
any externally imposed capital requirements.
8. Trade and other payables
Accrued expenses
Trade and other payables
Provision for contribution to consolidated fund
9.
68
2014
S$
2013
S$
914,965
51,216
171,127
1,137,308
695,866
330,112
1,025,978
Deferred Income
Deferred income relates to certification fees and annual fees received in advance from private education institutions
and the revenue is recognised in accordance with the revenue recognition policy of the Council.
THE CPE ANNUAL REPORT 2013/14
Notes to the
Financial Statements
For the financial year ended 31 March 2014
10. Deferred capital grant
Beginning of financial year
Add:
Grants recognised as deferred income:
Grants received from Government
Less:
Grants taken to statement of comprehensive income:
Amortisation of deferred capital grants
End of financial year
2014
S$
34,979
2013
S$
48,864
-
-
(12,867)
22,112
(13,885)
34,979
2014
S$
93,036
49,131
9,823
427,946
579,936
2013
S$
66,087
57,070
12,492
473,345
608,994
11. Legal and other professional fees
Legal services
Financial services and audit fee
Payment collection services
Other professional services
12. Surplus before statutory contribution to consolidated fund
The following items have been included in arriving at surplus for the year before statutory contribution to
consolidated fund:
Expenditure on manpower
- Salaries and related costs
- CPF contributions
Board members allowances
Goods and Service Tax expensed off
Plant and equipment
- Expensed off
- Written off
2014
S$
2013
S$
6,342,288
720,715
226,891
181,910
6,105,044
615,565
99,531
185,638
263,273
3,155
-
The compensation of key management personnel and staff are paid by the Parent Ministry and included in the
expenditure on manpower charged to the Council.
THE CPE ANNUAL REPORT 2013/14
69
Notes to the
Financial Statements
For the financial year ended 31 March 2014
13. Statutory contribution to consolidation fund
Under Section 13(1)(e) and the First Schedule of the Singapore Income Tax Act, Chapter 134, the income of the
Council is exempt from income tax.
In lieu of income tax, the Council is required to make contribution to the Consolidated Fund in accordance with
the Statutory Corporations (Contributions to Consolidated Fund) Act (Chapter 319A) and in accordance with the
Financial Circular Minute No M5/2005. Contribution for the financial year is determined based on 17% of net surplus
for the financial year.
During the financial year, an amount of S$164,340 was paid to the Consolidated Fund.
14. Commitments
As at 31 March, the Council have the following commitments are as follows:
Operating lease commitments- where the Council is the lessee
The operating lease commitments relate to the leasing of office. The leases of the office premises will expire on 31
March 2014 (which was renewed for another 3 years expiring on 31 March 2017) and 6 January 2016 and the current
payable on the leases range from $15,000 to $34,000 per month.
At the reporting date, the commitments in respect of such operating leases were as follows:
Not later than one year
Later than one year but not later than five years
70
THE CPE ANNUAL REPORT 2013/14
2014
S$
661,741
1,047,241
1,708,982
2013
S$
630,022
386,738
1,016,760
Notes to the
Financial Statements
For the financial year ended 31 March 2014
15. Financial risk management objectives and policies
Risk management is integral to the whole activities of the Council. The Council has a system of controls in place to
create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The Council
continually monitors its risk management process to ensure that an appropriate balance between risk and control
is achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Council’s activities.
Credit risk
As at reporting date, the Council has no significant concentrations of credit risk. Cash and cash equivalents are
placed with financial institutions which are regulated. In the current and preceding financial year, the AGD places
the funds with various banks.
The maximum exposure to credit risk is represented by the carrying amounts of its financial assets in the statements
of financial position.
Liquidity risk
The Council receives its funds from the Government of Singapore and generates cash from its operating activities
to meet its funding requirements. The Council monitors and maintains sufficient cash and cash equivalents to
finance its operations.
All financial assets and liabilities are repayable on demand or due within one year at the end of the reporting period.
Interest rate risk
At the reporting date, the Council has limited exposure to interest rate risk.
THE CPE ANNUAL REPORT 2013/14
71
Notes to the
Financial Statements
For the financial year ended 31 March 2014
15. Financial risk management objectives and policies (continued)
Foreign currency risk
The Council has limited exposure to foreign exchange risk as transactions are substantially denominated in
Singapore dollars which is the functional currency of the Council.
Estimation of fair value
Other financial assets and liabilities
The carrying amounts of financial assets and liabilities with a maturity of less than one year (including other
receivables, deposits and prepayments, cash and cash equivalents and trade and other payables) are assumed to
approximate their fair values because of the short period to maturity.
72
THE CPE ANNUAL REPORT 2013/14
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Tel: (65) 6499 0300 Fax: (65) 6275 1396
Email: CPE_Contact@cpe.gov.sg
Website: www.cpe.gov.sg