CREA TING - Singapore Polytechnic

Notes to the Financial Statements
For the financial year ended 31 March 2011
8. Funds managed on behalf of the Ministry
Pursuant to the Tuition Fee and Study Loan Schemes and Staff Housing Loan Scheme, the
Polytechnic acts as agent for the tuition fee and student loans and staff housing loans and
the Ministry as the financier providing the advances.
The staff and student loans funds were set up from advances from the Ministry of Education
for the purpose of providing loans to staff and students.
2011 2010
$’000 $’000
Advances from the Ministry
At beginning of financial year 5,478 5,224
Add:
Advances received 298 415
Interest income 71 37
Less:
Advances repaid (137) (183)
Bad debts (1) (15)
At end of financial year 5,709 5,478
2011 2010
$’000 $’000
Represented by:
Amount due from the Ministry - (186)
Trade and other receivables 170 -
Cash and bank balances 276 -
Tuition fees and study loans 4,652 4,988
Staff housing loans 611 676
Net assets 5,709 5,478
The cash and bank balances are held on behalf of the Ministry for the purpose of extending
study loans to students.
Loans given to students are interest-free until 1 June or 1 December in the year of their
graduation, or for those with National Service obligation, in the year in which they finish their
National Service. Thereafter, loans are repayable by monthly instalments with interest at
4.75% (2010: 4.75%) per annum which is based on the average prime rates of banks or
such other rates as may be determined by the Polytechnic from time to time. The interest
on the tuition fee loans is remitted in full to the Ministry. The students are given an option
to repay by monthly instalments over a period of up to 10 years after the borrowers’
graduation.
Loans to staff consist of housing loan made in accordance with the regulations of the
Polytechnic. With effect from January 2002, housing loan benefit is no longer provided and
the unutilised grants as well as the repayment of these staff loans amounting to $98,000
(2010: $183,000) were refunded to the Ministry of Education. Existing housing loans will
continue to be funded. Staff and student loans are disbursed from advances from the
government and repayment of the loans will eventually be returned to the government.
These loans are denominated in Singapore dollars.
Singapore Polytechnic Annual Report 2010/11
41