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40TH ANNUAL GENERAL M E E T I N G R E P O R T

2016

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16th August 2016

Dear Member

40TH ANNUAL GENERAL MEETING

I am pleased to enclose the following documents with respect to the forthcoming Annual General Meeting (‘AGM’) of The Institute of Internal Auditors (‘IIA’) Singapore:

1 Notice of Meeting

2 Minutes of the 39th AGM and President’s Report for year 2015/2016

3 Audited Accounts

Yours faithfully

Tan Boon YenPresident, IIA Singapore

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The AGM will be held on Tuesday, 30th August 2016 at Singapore Marriott Tang Plaza Hotel, Ballroom I & II at Level 3, 320 Orchard Road, Singapore 238865 at 6.30pm.

The meeting agenda is enclosed.

Members are reminded that the annual subscription for the financial year 2016/2017 had been due and payable by 1 June 2016. Only members who have renewed their subscriptions are eligible to attend the AGM.

A quorum of at least 50 members is required for the AGM. Your support in attending the AGM will be much appreciated, and those who registered and are present at the AGM will receive an early bird door gift on a first-come-first-serve basis.

The meeting will be followed by a buffet dinner. Both the dinner and door gifts are complimentary, courtesy of IIA Singapore in appreciation for the support given to us from our members during the year. It is also an occasion for busy IA professionals to meet and celebrate the end of the IIA Singapore year.

Members attending are requested to complete and return the attached Attendance Form to reach us by 23rd August 2016, to enable the necessary administrative arrangements to be made.

We enclose a copy of the minutes of the 39th AGM and the President’s Report for the year2015/2016.

A set of the audited accounts for the financial year which ended 31 May 2016 is enclosed.

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16th August 2016

NOTICE OF 40TH ANNUAL GENERAL MEETING

The 40th Annual General Meeting of The Institute of Internal Auditors, Singapore will be held on Tuesday, 30th August 2016 at the Singapore Marriott Tang Plaza Hotel, Ballroom I & II at Level 3, 320 Orchard Road, Singapore 238865 at 6.30pm.

NB. During the networking dinner, we will be presenting certificates to new CIAs, CCSAs, CFSAs and CRMAs.

AGENDA

Ordinary Business

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Special Business

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By Order of the Board of Governors

Audrey HuangSecretary, IIA Singapore

To adopt the Minutes of the 39th Annual General Meeting

To discuss Matters Arising from the Minutes of the 39th Annual General Meeting

To receive and adopt the President’s Report for the year 2015/2016

Business plan and activities for the coming year

Updates from the Secretariat

To receive and adopt the Audited Accounts for the year ended 31 May 2016

To (re) appoint and approve the Remuneration of the External Auditors

To present Membership Recognition Awards

To announce conferment of Honorary member and Fellow members of IIA Singapore

To discuss Any Other Business, of which due notice has been given in writing to theSecretary

To adopt proposed amendments to the IIA Singapore By-Laws

Dear Fellow Members,

PRESIDENT’S MESSAGE

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This year marks the 40th anniversary of The Institute of Internal Auditors (IIA) Singapore (“the Institute”). Over the past four decades, the Institute has grown steadily,

from a membership base of 100 to 2,700, the biggest IIA Institute in Southeast Asia. Besides setting up the well regarded IIA Singapore Academy to offer high quality education programmes to raise the professional competency of the internal audit, risk and finance community, we also celebrate and honor public listed companies with exemplary IA function through the IIA Internal Audit Excellence Award. We are grateful to all the past and present Board of Governors, the selfless efforts of members and professionals in the internal audit (IA) community who supported the Institute through the years in our drive towards achieving the Institute’s mission. Also, our utmost appreciation to the staff of the Institute for their contribution, hard work and commitment.

The role and expectations of Internal Auditors is constantly evolving. For this anniversary, we have adopted the theme “Building Collaborative Relationships” to reflect the importance of collaborative efforts with stakeholders to develop the profession and advance value to our organisations. The Institute recognises that this is a key thrust moving forward and will continue to provide as many platforms as possible, for the IA communities to engage and build collaborative partnerships with stakeholders.

We forged alliances with one of our key stakeholders - the Singapore Accountancy Commission (SAC). SAC was our strategic partner in the first run of the Global IA Leadership Summit and the co-organiser for the inaugural run of the Asia Internal Audit Leadership Programme developed for Chief Audit Executives. In addition, three roundtables were held, with two thought leadership papers published. We are also working closely with the SAC and Singapore Workforce Development Agency to develop the Internal Audit track for the Skills Framework for Accountancy. This is jointly developed by various professional bodies in Singapore and is expected to be completed at the end of 2016.

For three years running, IIA Singapore has partnered with Singapore Management University to run the IA Elective module for undergraduates. This has generated encouraging results with students taking up internships in IA and also pursuing IA as a career. The SMU – IIAS IA Case Challenge which is its third year running, is organised with the support of the students in the SMU Assurance and Advisory Team. It attracted the participation of more than 200 students from the Junior Colleges, Polytechnics and various Universities. These are important initiatives to build a pipeline of IA talents.

PRESIDENT’S MESSAGE (cont’d)

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Our annual events like the Public Sector Internal Audit (PSIA) Conference, IIA Singapore’s Annual Conference, Global IA Leadership Summit, have enhanced IIA Singapore’s stature. This November, we will be hosting the Asian Confederation of Institutes of Internal Auditors (ACIIA) Conference, a grouping comprising 17 Institutes of Internal Auditors in Asia and we are expecting 500 delegates from these countries.

At the global level, we exchanged ideas and shared knowledge with our overseas partners. Our IIA Singapore Governor, Mr. Sia Nam Chee, continues to serve on IIA Global’s International Internal Audit Standards Board and I am currently serving the Global Professional Development Committee.

We will continue to do more and to serve our members through the introduction of courses and activities with the view of providing stewardship for the profession.

Looking ahead, we will focus on advocacy and engagement of our stakeholders and members. In this regard, we will embark on new initiatives for members, including outreach to our younger members. They include a mentorship programme, a joint initiative with SAC, for aspiring Chief Audit Executives to boost their career development by learning from experienced members; and a comparative research on IA functions in Singapore vis-a-vis our global peers.

I am also pleased that IIA Singapore has successfully secured CIA challenge examinations to be offered to ISCA members in 2016. More details will be announced shortly.

At the community level, we also want to contribute our time and expertise to help the underprivileged via their voluntary welfare organisations. Under this Corporate Social Responsibility move, we would like to tap on our members’ internal audit and risk management skills to help raise the level of compliance and governance in the social services sector.

Finally, I would like to take this occasion to express my gratitude to the board and its nominated committees, past and present members, and our collaborative partners who have contributed their time, effort and resources to bring IIA Singapore to a solid and progressive level, poised for more success in the years to come.

Thank you.

Tan Boon YenPresident

PRESIDENT’S REPORT FOR YEAR 2015/2016

Dear Member

On behalf of the Board of Governors, I am pleased to report on the various activities of IIA Singapore for the year ended 31 May 2016.

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MEMBERSHIP

CERTIFICATION PROGRAMMES

Membership grew from 2,359 members in 2015 to 2,726 members in 2016, at a significant increase of 15.6%. This is the highest percentage increase that we achieved in a year for membership growth. This growth came from all segments including Individual, Corporate and Student membership. There were various initiatives launched by the Membership Committee such as meet-ups with Corporates, introduction of long term membership plan, outreach to students faculty, membership retention efforts, benchmarking review of membership services, updating of membership collaterals and survey done to identify areas for improvement.

The membership composition comprises 1,552 (31 May 2015: 1,342) individual members including 67 student members, and 1,174 (31 May 2015: 1,017) corporate nominees.

We would like to thank Mr Shalinder Taneja, our Membership Governor and the Secretariat team for the focused efforts in membership drive.

There are 5 types of certifications:» Certified Internal Auditor (CIA)» Certification in Control Self-Assessment (CCSA)» Certified Financial Services Auditor (CFSA)» Certified Government Auditing Professional (CGAP)» Certification in Risk Management Assurance (CRMA)

In total, 667 applications were received for certification exams from June 2015 to May 2016, as compared to 664 applications for 2014/2015.

We would like to congratulate those members who passed the respective certification exams inFY2015/2016. There are 113 newly certified CIAs, 4 CCSAs, 7 CFSAs and 15 CRMAs. Of the 113 newly certified CIAs, 31 of them sat for the ACCA-CIA Challenge Exam conducted in November 2015. This special one-paper exam tied with ACCA contributed to 38% increase in the total number of newly certified for CIA.

In total, we have 1,491 CIAs, 85 CCSAs, 101 CFSAs, 3 CGAPs and 162 CRMAs as at 31 May 2016. Our Board member Mr Sia Nam Chie has conducted all of the following CIA Review Course. We would like to acknowledge and thank Mr Sia for his tireless contributions.

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We had signed a new Certification agreement with IIA Global which allows our members to access the Certification Candidate Management System (CCMS) to apply and register for IIA certifications online for CIA and all the other specialty exams (CCSA, CFSA, CRMA and CGAP). This new agreement took effect from 1 June 2016.

Prior to the above, CCMS only allow members to file their CPE reporting. Now, members will be able to apply for exams and make credit card payment online for the registration fee and exam fees through CCMS. All payments are made directly to IIA Global.

With CCMS, the application and processing time will be reduced and candidates will receive an almost immediate response for their registration through the system.

We encourage members to continuously update their knowledge, skills, and other competencies through the CPD programme as well as attaining the various certifications such as CIA, CCSA and CRMA. In order to be a successful internal audit professional, it is a requirement for one to keep abreast with current developments in governance, risk management and internal control as well as internal audit best practices, standards, tools and techniques. IIA Singapore recognises the importance of providing our members with a varied, relevant and interesting CPD programmes to equip our members for their role. Our CPD efforts cater to this through conferences, forums, seminars/workshops, in-house training programmes, breakfast/evening talks, roundtables, volunteering in professional organisations and participation in research projects.

IIA Singapore organised 72 education events in FY2015/2016 attended by a total of around 950 attendees. For the year’s programme, we delivered some new and interesting courses as listed below:

» Auditing of Credit Operations» Lean Six Sigma for IA Fieldwork» New Cultural and Negotiation Skills for Internal Auditors» Project Management – Making Each Audit Project a Success» Lean Six Sigma for IA Planning» Auditing Compliance with Anti-Money Laundering (AML) Regulations» Smarter Continuous Monitoring: Optimising and Automating Internal» Best Practices to Manage Procurement Frauds» Managing 3rd Party Contracts» SMAC (Social Mobile Analytics Cloud) Essentials for Auditing» Auditing Contracts and Outsourcing» Learn to Summarise Audit Reports and Create Audit Digests for the Board» Setting Whistle Blowing and Investigation Framework» Corporate Governance and Ethical Actions» Implementing Data Analytics in Internal Audit» Document Review and Data Analytics for Audit and Investigation

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3.1 EDUCATION

CONTINUING PROFESSIONAL DEVELOPMENT PROGRAMME (‘CPD’)

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CIA REVIEW COURSE

CIA Exam Part 1

CIA Exam Part 2

CIA Exam Part 3, Sessions I & II

11 July 2015 & 16 January 2016

12 March 2016

24 & 31 October 2015

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The core courses continue to be conducted and remained well-attended. Global topics on Lean Six Sigma on IA Fieldwork and IA Planning were added into the list of programmes. Two corporate training for ST Engineering and the Institute of Banking and Finance (IBF) were conducted respectively for their staff. There were also 4 short talks conducted for the internal auditors to increase the awareness level on the topics Ethics, ISO 19600 Compliance, Government Auditing as well as COSO Frameworks. Details of the 72 education events are provided in the Appendix.

IIA Academy will continue to provide high quality education programmes in accordance with the IIA Global Internal Audit Competency Framework to raise the professional competency of internal audit professionals in Singapore and the region.

The Academy will continue to run a good mix of courses to fulfil the various technical skills and career development needs of our members.

We would like to thank all the course instructors and speakers for their valuable contributions.

In 2015, the Institute of Internal Auditors Singapore (“IIA Singapore”) is proud to have partnered with the Singapore Accountancy Commission to launch the inaugural Global IA Leadership Summit which preceded IIA Singapore’s Annual Conference, with the theme, “Agents of Change, Pillars of Control”. Close to 300 delegates were present at the conference from 14 - 16 October 2015. The leadership summit followed by the conference, provided a shared platform where all participants and guests exchanged ideas and expertise for the mutual benefit of IA practitioners and IA stakeholders throughout the 3-day event. A panel of distinguished thought leaders spoke and shared their valuable insights that re-energised IA professionals with new perspectives as they return to their organisations with the acquired knowledge and best practices, to formulate more effective strategies to achieve IA excellence.

The Guests of Honour for Global IA Leadership Summit and Annual Conference were Mrs. Lim Hwee Hua, Honorary Chairman, Securities Investors Association (Singapore) and Mr. Gerard Ee, President, Institute of Singapore Chartered Accountants respectively.

The sponsors of the event included ACL Services, CCH Teammate, Crown Systems, KPMG, Mazars, Nasdaq (BWise), PwC and RSM Risk Advisory.

During the event, IIA Singapore President presented the Outstanding Student Award for the IA elective programme, jointly run with SMU, School of Accountancy. The award winner was Mr. Jonathan Tan Eng Kiat.

This conference, themed “New Horizon for Public Sector: Governance, Risk , Internal Control”, had brought principal thought leaders from Singapore and beyond, to share their views and expertise on governance, risk and internal control (“GRC”) and to re-energise the delegates with new perspectives to enable them to raise the bar in GRC in their respective agencies. Close to 300 delegates from Singapore and overseas were present for the 2-day conference held on 21 - 22 April 2016.

The conference was graced by Guest of Honour, Ms. Indranee Thurai Rajah, Senior Minister of State for Law and Finance.

3.2 CONFERENCES

3.2.1 Annual Conference and Leadership Forum 2015

3.2.2 Public Sector Internal Audit (‘PSIA’) Conference 2016

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IIA Singapore works with professional bodies and other organisations to promote internal audit and elevate the status of the profession through programmes such as joint talks, events and awards. These organisations included the Singapore Institute of Directors (‘SID’), Singapore Accountancy Commission (‘SAC’), Securities Investors’ Association (Singapore) (‘SIAS’), Association of Chartered Certified Accountants (‘ACCA’), CPA Australia, Information Systems and Control Association (‘ISACA’), Institute of Singapore Chartered Accountants (‘ISCA’) and Risk and Insurance Management of Singapore (RIMAS).

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IIA Singapore and Singapore Accountancy Commission (‘SAC’) jointly held various roundtable discussions bring together, IA leaders to exchanges views and share perspectives on various current topics and developments in the IA profession. The roundtable discussion involved participants from various companies and management roles including Chief Audit Executives and academics who shared their views and experiences.

A roundtable discussion on “Reinventing Internal Audit” was held on 19 November 2015 with 13 participants. This was a collaborative thought leadership project between SAC, IIAS and RSM Risk Advisory and a paper was published from inputs gathered from the roundtable participants.

On 26 May 2016, IA leaders were brought together for an insightful discussion on “What does Independence of Internal Audit really mean?” The roundtable discussion involved 8 participants and a paper will be generated from this roundtable.

IIA Singapore, SAC and Baker Tilly held a roundtable discussion on 7 July 2016 on “The Future of Work: Impact of Millennials & Smart Nation Vision” The roundtable discussion involved 12 participants. Similarly, a paper will be generated from this roundtable.

We will continue to organise roundtables on topics that are of interest and we welcome members to come forward and participate at these roundtables.

Conference attendees had the opportunity to hear from high-profile public sector audit leaders and speakers from Dubai, Hungary, Korea, Indonesia and Singapore who shared insights into governance, risk management, internal auditing and internal controls.

We would like to thank our Conference Committees for their efforts in organising the two landmark events, i.e. Ms. Tan Boon Yen and Mr. Derrick Lim (ex-governor) for the Annual Conference and Leadership Forum 2015, and Mr. William Lim and Mr. Koh Chin Beng of BDO, for the PSIA Conference 2016. Special thanks also go to the Secretariat team for managing the major events well.

During the year, IIA Singapore hosted four joint talks with other bodies. An event was co-hosted with CPA Australia on 20 April 2016, with the topic “How to Build a Corporate Ethics and Compliance Program to Improve Compliance and Prevent Fraud”. With more than 32 years of experience in Inspector General oversight and federal auditing in both the Executive and Legislative branches of government while working in the Central Intelligence Agency (CIA), Mr Eric Feldman stressed the importance of having Corporate Ethics and Compliance Programs to prevent fraud and misconduct by employees, the differences between ethics and compliance and the significance of setting a strong ethical culture and tone at the top by higher management. It was a fruitful and rewarding talk for the participants as actual case studies and examples were used to highlight the relations between culture and employees’ misconduct. The talk attracted more than 80 professionals.

3.3 ROUNDTABLES

4.1 Joint Talks

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There was also a Lunch & Learn session held in partnership with Thomson Reuters on 20 March 2015, which an attendance of more than 70 participants, to learn more on “The Key Skillsets For Head Of IA Today”. The event kicked-off with lunch and a brief networking session among the participants before the talks were held at the Thomson Reuters’s auditorium. The previous CEO of SAC, Mr Uantchern Loh, provided insights by discussing the perception, roles and independence of internal auditors which drew various responses from the participants. Certis Cisco Security, Integrated Solutions Group, Senior Vice President, Mr Yow Tau Keon provided some real examples to highlight the severity of cyber threats and the importance of having the counter measures to deal with the threats.

Joint seminars were also organised with ACCA and ISCA in October 2015 and in May 2016 respectively to bring together collaborative efforts for the benefit of the members from both professional organisations. The seminars were attended by close to 30 participants each, were namely the ACCA-IIA Singapore Joint Seminar: Leveraging Internal Control to Prevent and Manage Internal Fraud conducted by Mr C K Cho and the ISCA-IIA Singapore Best Practices in Internal Audit by Mr Shalinder Taneja.

In the coming FY2016/2017, we will continue to explore the ways in which we will partner with professional bodies and other organisations to champion the profession of internal audit, in order to reach different stakeholders.

To celebrate International Internal Audit Awareness Month, IIA Singapore hosted two events, targeting stakeholders at different levels. The first was a Networking Night - Conquering Your Own Everest. More than 50 participants gathered in the evening for a fun-filled night of celebration, networking, dinner and drinks held at Mad Poet Gastrobar on 26 May 2016. Members were also encouraged to bring along a IA partner/stakeholder, i.e. CEOs, CFOs, AC to join in the celebration. Our governors, Mr Antonio Martinez Marroquin shared insights revolving around dilemmas that can define one’s professional and/or personal life in the context of real life or death situations while Mr Uantchern Loh shared his personal experiences from his 20 days journey to the Everest base camp. The enjoyable evening ended with more drinks and delectable tiramisu bites to the delight of our members and their stakeholders!

The second event was a Lunch and Learn event on Friday, 31 May 2016, attended by more than 70 participants. With the topic “How Continuous Monitoring and Data Analytics can Automate Your Current Auditing Processes to Get Better Insight into Fraud and Increase Your Audit Coverage”, Sebe Gerritsen (Regional Director at Nasdaq) shared how the use of modern technology facilitates a more efficient way of working by integrating data analysis technology into the audit solution and making this critical information accessible to auditors. The participants also caught the last wave of celebration for International IA Awareness Month. They penned down their thoughts on card tags - internal auditors wrote down why they were proud of their work while non internal auditors expressed words of appreciation/encouragement for the IA profession. These card tags were then randomly attached to a celebratory muffin or a sweet treat for the participants, bringing back the thoughts/words from one another.

Since 2014, IIA Inc had initiated a Building Awareness Champion program to recognise institutes and chapters that exhibit outstanding commitment to advancing the profession by accomplishing a set of established initiatives. IIA Singapore has been given this award for the third consecutive year.

4.2 INTERNATIONAL INTERNAL AUDIT AWARENESS MONTH - MAY 2016

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IIA Singapore, with Securities Investors Association (SIAS) and Singapore Management University - Sim Kee Boon Institute for Financial Economics, hosted the Internal Audit Excellence Award 2015 for the 5th time running. Top Winners for the past 4 years were placed at the Hall of Fame and are eligible to re-enter the IAEA Award selection after 3 years that they last attained the award. SMRT was the winner of the Internal Audit Excellence Award. Frasers Centerpoint and Keppel Corporation were the Runners-Up. The Internal Audit Excellence Award - Special Recognition went to Ms. Tan Eng Hwa, General Manager, Group Internal Audit of Keppel Corporation. We will be working with SIAS and SMU again this year to host the 6th Internal Audit Excellence Award.

IIA Singpore Governor, Mr Sia Nam Chie continues to serve on IIA Global’s International Internal Audit Standard Board (‘IIASB’) and President Ms Tan Boon Yen is serving on the Global Professional Development Committee (‘GPDC’).

We would like to thank Governor Mr Sia Nam Chie for his dedication and contribution to the profession and providing a Singapore voice on the global committee.

As part of the career symposium held by Serangoon Junior College (SRJC) on the 7th April 2016, IIA Singapore was approached by the school to raise awareness among their graduating students on the internal audit profession. We invited Mr Seth Paramjyoti Prakash, member of IIA Singapore, to share with the students the pathway, role, importance, qualities and the wealth of opportunities that are offered to internal auditors. More than 60 students signed up to learn more about an internal auditor’s career. It was a fun and interactive session which enabled the students to gain a better insight into life as an internal auditor. Students were also encouraged to have a career goal in mind as they embark on their next stage of education which in turn allows them to make better and informed choices during their course of study.

The SMU School of Accountancy and IIA Singapore collaborated since 2013 to develop and launch an Internal Audit Elective for accountancy undergraduates. Each semester, the elective culminates in a project where students work in groups and present their Internal Audit plans based on a written case by Mr Foo See Liang, Associate Professor of Accounting (Practice). The winners are then awarded the IIA Singapore Prize for the Best Internal Audit Project. IIA Singapore has since conducted 6 runs of the SMU Internal Audit Elective with a close to a total of 200 students who have attended this elective.

The third SMU-IIAS Internal Audit Case Challenge, the first-of-its-kind in Singapore and Asia, focuses on the practice of internal audit, for tertiary students of all faculties. Held on 4 June 2016, the case challenge attracted 228 participants, who glimpsed into the Internal Audit world and learnt the importance of corporate governance through case questions and activities. The event also provided a platform for industry representatives, students, alumni and judges to network and interact.

IIA Singapore continues to support and endorse the Securities Investors Association Singapore (SIAS) Investors’ Choice Award; in particular, the Singapore Corporate Governance Award, the Most Transparent Company Award and the Financial Journalist Award. This Award seeks to honour and recognise public-listed companies which have demonstrated exemplary corporate governance and transparent practices throughout the year.

4.3 THE INTERNAL AUDIT EXCELLENCE AWARD

4.5 INTERNATIONAL REPRESENTATION ON IIA INC’S COMMITTEES

4.6 STUDENT OUTREACH

4.4 ENDORSING SIAS INVESTORS’ CHOICE AWARD - TOWARDS EXCELLENCE IN CORPORATE GOVERNANCE AND TRANSPARENCY

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The IIA Singapore is a proud sponsor of the Outstanding Student Award at SMU. It spans a timeframe of 3 years, which commenced in the academic year of 2013 to recognise outstanding students in the IA program and also to raise the profile of the IA profession. The top student was awarded a cash prize of $1,000. Additionally, the top 3 project teams in the IA elective program who exhibit sound understanding and applications of internal audit are also given a cash prize of $600 in total.

More than 60 members were present on 19 February 2016 to usher in the Year of the Monkey and to kick off our 40th anniversary celebration with IIA Singapore. Three speakers made time to share on “Coaching Yourself” by Mr Michael Lum who taught us the importance of continuous learning, “Creating a Good PDPA Compliance Framework” by Mr Sia Nam Chie who gave insights of what are the critical elements of a PDPA compliance framework and “Thinking Better for the New Year” by Mr Tan Swee Heng who shared great tips like the F-O-R-M. Apart from an enriching afternoon, attendees also had networking opportunities to interact with those in the same industry over lunch. The afternoon ended with a happy note with lucky winners walking away with shopping and training vouchers.

IIA Singapore continued as a supporting organisation for the International Accountants’ Day on November 5, 2015. The event was held at a new venue, the Silver Garden, Gardens by the Bay which was hosted by CPA Australia and the SAC, with the theme, ‘Picnic By The Bay’.

In March 2016, IIA Singapore appointed a PR agency, Mileage Communications Pte Ltd. This was part of our efforts to work towards establishing a solid foundation for IIA Singapore’s communications, to strengthen media relations and increase awareness of the IA profession and the IIA brand. IIA Singapore had used Mileage Communications Pte Ltd for Annual Conference and Global IA Leadership Summit 2015. A Business Times article was published after the event.

As of June 2016, the agency worked with IIA Singapore in the development and submission of content of articles published in the “Views from The Top” in The Business Times. Other achievements included media invites sent for PSIA Conference 2016, with media coverage of the conference in The Straits Times, The Business Times and Shin Min Daily News.

4.7 IIAS OUTSTANDING STUDENT AWARD AND PRIZE FOR INTERNAL AUDIT PROJECT FOR SMU STUDENTS

4.8 MEMBERS’ NETWORKING SESSIONS

4.9 OTHER ADVOCACY EVENTS

4.10 APPOINTMENT OF PR AGENCY

IIA Singapore communicates with members and other stakeholders through various communication channels. The Institute provides timely global and local updates on the profession, new guidance and publications by The IIA and upcoming Institute events via the www.iia.org.sg website, LinkedIn and Facebook. Bi-weekly updates are sent via email to members.

Membership of our LinkedIn professional networking site continues to be well subscribed with a group of close to 1,500. The LinkedIn Group serves as a platform for interactive discussions, exchange of ideas and networking amongst members, job placements and to enhance the visibility of IIA Singapore from the public’s perspective. Regular updates and the monthly President’s messages are posted on this Group, which is open to all current and prospective members.

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Throughout the year, the number of likes/followers at the Institute’s Facebook page has also grown from 516 (in July 2015) to 658 likes (in June 2016). The Facebook page serves as a platform to connect with members and non-members, to promote Institute events and share news and updates on internal audit.

IIA Singapore also releases the E-Connect newsletters, as a quarterly round-up for the Institute’s events and happenings. This electronic newsletter is made available to the public on the website and circulated via Vertical Response to non-members.

IIA Singapore continues to support the activities of the ACIIA, with Past President Mr Eric Lim and President Ms Tan Boon Yen participating in the ACIIA Business Meetings in Manila in November 2015 and Kuala Lumpur in April 2016 respectively.

The Institute of Internal Auditors of Singapore is proud to host the 2016 Asian Confederation of Institutes of Internal Auditors (ACIIA) Conference. The conference theme “Scaling New Heights in Governance” reflects the importance of organisations to strive for new heights in governance to enhance corporate performance and accountability so as to create long term shareholder value. Audit professionals at every level of their career from across Asia and other regions will benefit from networking and benchmarking with peers. A panel of distinguished thought leaders will speak and share their valuable experience, knowledge and insights to re-energize internal audit professionals with new perspectives to enable them to contribute to their organisations.

7.1 ASIAN CONFEDERATION OF INSTITUTES OF INTERNAL AUDITORS (ACIIA)

The IIA Singapore Portal was launched on 26 April 2016. As the system is new, we experienced some initial glitches and teething issues which have since been rectified.

With the launch of the Membership module, members will be able to submit applications and make payment online using credit card.

The IIA Singapore website saw a revamp in June 2014. The portal for Training, Events and Conference registration was launched in July 2015. The next phase of the automation project will cover the Library module.

We look forward to serving members better with the CRM system.

The Secretariat has 9 permanent staff serving the members, including our newly appointed Executive Director who joined us on 6 June 2016.

The Secretariat office actively supports the roll-out of global, regional and local strategies and initiatives to advance the IA profession, including initiatives and developments such as system andwebsite enhancements, conferences, roundtable discussions, collaborative efforts with SAC, ACCA,SMU, ISACA, ISCA, SID and RIMAS.

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WEBSITE AND SYSTEM AUTOMATION

SECRETARIAT OFFICE AND FULL-TIME STAFF

OTHER EVENTS

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We have made new purchases and these new books are available in our Library. We will continue to invest and build a comprehensive library to better serve members’ needs. On a monthly average, around 58 books were loaned from the Library by members and majority of the books borrowed were the exam guide books. Besides the exam study guides and exam related books, other popular books borrowed from the Library concerned Internal Auditing: Assurance & Advisory Services, Quality Assessment Manual, COSO Internal Control – Integrated Framework, Lessons Learned on the Audit Trail, International Professional Practices Framework (IPPF), Introduction to Auditing, The Balanced Scorecard: Applications in Internal Auditing and Risk Management and World-Class Internal Audit Tales from My Journey.

President Tan Boon Yen 4/4 meetingsVice President William Lim 3/4 meetingsVice President Antonio Martinez Marroquin 2/4 meetings*Secretary Audrey Huang 3/4 meetingsTreasurer Abdul Hamid Bin Abdullah 4/4 meetingsGovernors Sia Nam Chie 4/4 meetings Tan Peck Leng 4/4 meetings Jonathan Ho 4/4 meetings Keith Ng 4/4 meetings Teo Chee Khiang 3/4 meetings Shalinder Taneja 2/4 meetings* Uantchern Loh 3/4 meetingsImmediate Past President Eric Lim 4/4 meetings

*Ratification is provided by the Board for their absence from meetings because of their heavy travel schedules and duties which resulted in their unavailability for the meetings. However, they were present in majority of the respective meetings held by the ExCo, Advocacy and Membership Sub-Committees.

The year ended well with a net operating surplus of about $140,000 compared to a deficit of $22,000 in the previous year. As of 31 May 2016, our accumulated surplus of $1,482,000 stands us in good stead to strengthen our infrastructure and gear up our capabilities to better serve our members and stakeholders. Operating income increased by 18% from $946,000 to $1,121,000 in 2016 which was contributed by increase in net income from seminars, conferences, continuing professional education courses and membership subscriptions. Through careful stewardship of our finance and operations, the overall expenditure was maintained at about $1,000,000 as compared to the previous year. A significant portion of the net increase was contributed by more prudent management of IIA Singapore’s flagship annual conference which attracted close to 300 participants. The Board will continue to exercise prudent financial policies while consciously investing in resources to move the Institute to the next level and enhance the benefits for members. The Board will continue to hold a conservative investment strategy for the surplus funds.

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LIBRARY

BOARD ATTENDANCE STATISTICS

FINANCIAL POSITIONING

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There will be no nomination of officer for the Board for this year as all Governors will continue to serve their term of 2 years for FY2015/2016 and FY2016/2017.

We would like to take this opportunity to thank all governors for their commitment in serving IIA Singapore in the past year. They will continue to serve as Governors for another year until their term ends by FY2016/2017.

On a personal note, I thank the Secretariat team for all the hard work and all members too, for your strong continual support.

On behalf of the Board, we wish to register our appreciation to SAC, SIAS, SID, SMU, KPMG, PwC, Protiviti, Shared Services for Charities, ISCA, ISACA, CPA Australia, ACCA, RIMAS, Thomson Reuters, COSO Academy, for collaborating with us and rendering their excellent support.

We look forward to your continued involvement and participation in the events ahead and strong support for the Board.


12 APPRECIATION

40TH

AGM

REPORT 2016

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14

LIST OF EDUCATIONAL EVENTS 2015 - 2016

APPENDIX

No. Date Event Trainer/Speaker

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Wong Swee Chin

Jeremy Peh

Christopher Go

Donald Espersen

Donald Espersen

Uantchern Loh

David Shanmugam

Melissa Aw Yong

Sia Nam Chie

Ian Ng

G. Bala

Jeremy Peh

Melissa Aw Yong

Suresh D.

Lilian Tay

Beginning Auditor Tools & Techniques

Persuasion Skills for Auditors

Auditing of Credit Operations

Performing an Effective Quality Assessment

Using Control Self-Assessment (CSA) to Create

and Maintain Effective Risk Governance & Internal

Control Processes

Evening Talk: Ethics - The Power to Move Mountains

Auditing & Reviewing of Commercial Contracts

Internal Control & Fraud Prevention

CIA Exam Prep Course Part 1

Lean Six Sigma Tools for IA Fieldwork

Evening Talk: New ISO 19600 Compliance

Management System: Implications for Auditors

Interviewing Skills for Auditors

Enterprise Risk Management: An Introduction

Forensic Investigations for Beginners

Auditor-in-charge Tools & Techniques

3-5 Jun 15

11 Jun 15

18-19 Jun 15

23-24 Jun 15

25-26 Jun 15

26 Jun 15

7 Jul 15

9-10 Jul 15

11 Jul 15

21-22 Jul 15

30 Jul 15

19 Aug 15

20-21 Aug 15

27-28 Aug 15

1-3 Sep 15

40TH

AGM

REPORT 2016

_

15


16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Shi Zhili

Ian Ng

Chng Seh Chong

Olivia Chan

Jeremy Peh

Sandra Sandu

C K Cho

Sia Nam Chie

Jeremy Peh

Jean Yves Le Corre

Melissa Aw Yong

Winnie Ang

Foo Check Woo

Ian Ng

Abdul Hamid

Business Mandarin for Auditors

Risk-Based Auditing: A Value Add Proposition

Analyzing and Improving Business Processes

Trade Finance Fraud - Understanding Threats and

Reducing Risks

Managing Difficult Auditees

Powerful Audit Presentations

ACCA-IIA Singapore Joint Seminar: Leveraging

Internal Control to Prevent and Manage Internal Fraud


Creative Problem Solving Techniques for Auditors

Cross Cultural and Negotiation Skills for Internal

Auditors

Internal Control and Fraud Prevention

Audit Report Writing

Project Management - Making each Audit Project a

Success

Lean Six Sigma Tools for IA Planning

General IT Audit for Non IT Auditors

15 Sep 15

17-18 Sep 15

21-22 Sep 15

28 Sep 15

29-30 Sep 15

1 & 6 Oct 15

6 Oct 15

24 & 31 Oct 15

28-29 Oct 15

30 Oct 15

3-4 Nov 15

5-6 Nov 15

12-13 Nov 15

16-17 Nov 15

19 Nov 15

40TH

AGM

REPORT 2016

_

16


31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

Angelina Foo

Amanda Wall

Amanda Wall

Amanda Wall

Prof Teo Chee Khiang

Eric Lim

Jeremy Peh

Tan Swee Heng

Kent Hoh

Tan Boon Yen

David Gilmour

Deepanjali Kunthe

Deepanjali Kunthe

Melissa Aw Yong

Wong Meng Yun

Auditing Compliance with Anti-Money Laundering

(AML) Regulations

Analyse Smarter: Statistical Data Analysis…in Excel!

Sample Smarter: Using Statistical Sampling to Audit

Controls

Smarter Continuous Monitoring: Optimising and

Automating Internal Controls

Breakfast Talk - Everything you want to know about

Government Auditing

Beginning Auditor Tools and Techniques

Interviewing Skills for Auditors (In-house training)

Enhancing Collaboration Through Effective Thinking

Styles

Best Practices to Manage Procurement Frauds

Financial and Operational Audit I

Managing 3rd Party Contracts

Cyber Security Primer for Auditors - Risks that you

need to consider in the cyber world

SMAC (Social Mobile Analytics Cloud) Essentials for

Auditing

Managing Procurement Fraud

Corporate Governance: Strategies for Internal Audit

23-24 Nov 15

24-25 Nov 15

26 Nov 15

27 Nov 15

1 Dec 15

2-4 Dec 15

3 Dec 15

4 Dec 15

7-8 Dec 15

10-11 Dec 15

14-15 Dec 15

14-15 Dec 15

16 Dec 15

12 Jan 16

14-15 Jan 16

40TH

AGM

REPORT 2016

_

17


46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

Sia Nam Chie

Tan Swee Heng

Stan Dormer

Stan Dormer

Tan Boon Yen &

Prof Teo Chee Khiang

Ian Ng

Bob Hirth

Kent Hoh

Chris Ong

Tan Swee Heng

Sandra Sandu

Shalinder Taneja

Nejolla Korris

Nejolla Korris

Sia Nam Chie


The Extraordinary Internal Audit Leader

Auditing Contracts and Outsourcing

Learn to Summarise Audit Reports and Create Audit

Digests for the Board

Overview of Corporate Governance & Internal

Control Processes (InHouse)

Risk-Based Auditing: A Value Add Proposition

Evening Talk: COSO Frameworks and Internal Audit

Practitioners

Setting Whistle Blowing and Investigation

Framework

Corporate Governance and Ethical Actions

Enhancing Personal Effectiveness for Better Results

Powerful Audit Presentations

Implementing Data Analytics in Internal Audit

Fraud Skills: Improve your Interviewing Skills

Through Linguistic Lie Detection

Cybersecurity Skills: The Impact of Social Media &

Social Engineering on Internal Audit


16 Jan 16

21-22 Jan 16

27-28 Jan 16

29 Jan 16

29 Jan & 1 Feb

16

18-19 Feb 16

23 Feb 16

23-24 Feb 16

25 Feb 16

26 Feb 16

4 & 8 Mar 16

7 Mar 16

9 Mar 16

10 Mar 16

12 Mar 16

40TH

AGM

REPORT 2016

_

18


61

62

63

64

65

66

67

68

69

70

71

72

Kent Hoh

Wong Meng Yun

Suresh D.

Chng Seh Chong

Angelina Foo

Tan Boon Yen

Kent Hoh

Shalinder Taneja

James Roth

James Roth

James Roth

Ian Ng

Document Review and Data Analytics for Audit and

Investigation

Value Added Business Controls: The Right Way to

Manage Risk

Forensic Auditing

Audit Manager Tools & Techniques

Auditing Compliance with Anti-Money Laundering

(AML) Regulations

Financial & Operational Audit (II)

Document Review and Data Analytics for Audit and

Investigation

ISCA-IIA Singapore Joint Seminar: Best Practices in

Internal Audit

Risk-Based Auditing and Reporting

Assess Risk and Control Culture: Common

Challenges and Proven Techniques

Effective Audit Report Writing

Assessing Risk: Ensuring Internal Auditor’s Value

15-16 Mar 16

17-18 Mar 16

21-22 Mar 16

29-31 Mar 16

7-8 Apr 16

11-12 Apr 16

12-13 Apr 16

6 May 16

9-10 May 16

11-12 May 16

13 May 16

17-18 May 16

40TH

AGM

REPORT 2016

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19

PLEASE COMPLETE AND RETURN THE FORM TO REACH SECRETARIAT OFFICE BY 23 AUGUST 2016.

Submit Form to: The Institute of Internal Auditors Singapore c/o The Secretariat 6 Shenton Way #41-04 OUE Downtown 1 Singapore 068809 Tel: 6324 9029 Fax: 6220 5972

Photography policyPlease note that photos may be taken at IIA Singapore seminars/events/conferences. IIA Singapore may use the photos taken at our events for marketing collaterals, websites and other social media platforms. Upon registering for aseminar/event/conference, the attendee is deemed to have granted permission to have their photo taken which may be used in the above mentioned purposes.

If you would like your photograph to be removed for any reason, please contact [email protected].

I, ……………………………………………………….………………………………… of

.….……………………………………………….…………………………………………

….…………………………………………….……………………………………………(Contact address and telephone no.)

will be attending the 40th Annual General Meeting on Tuesday, 30 August 2016 at theSingapore Marriott Tang Plaza Hotel, Ballroom I & II at Level 3, 320 Orchard Road,

Singapore 238865 at 6.30pm.

Note: Only members who have paid their 2016/2017 subscription are eligible to attend.

40TH ANNUAL GENERAL MEETING ATTENDANCE FORM

40TH

AGM

REPORT 2016

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20

THE INSTITUTE OF INTERNAL AUDITORS SINGAPORE Unique Entity Number: S76SS0058D

(Registered in Singapore)

FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MAY 2016

CONTENTS

INSTITUTE INFORMATION

STATEMENT BY THE BOARD OF GOVERNORS

INDEPENDENT AUDITORS’ REPORT

STATEMENT OF FINANCIAL POSITION

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF CHANGES IN FUNDS

STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

23

24

25

26

27

29

30

31

40TH

AGM

REPORT 2016

_

22

REGISTERED OFFICE

GOVERNORS

BANKERS

INDEPENDENT AUDITORS

6 Shenton Way#41-04 Singapore 068809

Tan Boon Yen, PresidentWilliam Lim, Vice-President Antonio Martinez Marroquin, Vice-PresidentAudrey Huang, SecretaryAbdul Hamid Bin Abdullah, TreasurerTeo Chee KhiangSia Nam ChieTan Peck LengUantchern LohJonathan HoShalinder TanejaKeith NgEric Lim, Immediate Past President

DBS Bank LtdOversea-Chinese Banking Corporation LimitedHong Leong Finance Limited

Saw Meng Tee & Partners PAC1 North Bridge Road #23-01/02 High Street Centre Singapore 179094

INSTITUTE INFORMATIONFor the year ended 31 May 2016

40TH

AGM

REPORT 2016

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23

STATEMENT BY THE BOARD OF GOVERNORSFor the year ended 31 May 2016

On behalf of the Board of Governors of The Institute of Internal Auditors Singapore (the “Institute”), we, Tan Boon Yen and Abdul Hamid Bin Abdullah, being the President and Treasurer respectively, do hereby state that in our opinion, the financial statements of the Institute are properly drawn up in accordance with the Societies Act and Singapore Financial Reporting Standards so as to present fairly, in all material respects, the state of affairs of the Institute as at 31 May 2016 and of its results, change in funds and cash flows of the Institute for the financial year ended on that date.

On behalf of the Board


Abdul Hamid Bin AbdullahTreasurer

40TH

AGM

REPORT 2016

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24

Report on the Financial Statements

We have audited the accompanying financial statements of The Institute of Internal Auditors Singapore (the “Institute”), which comprise the statement of financial position as at 31 May 2016 and the statement of comprehensive income, statement of changes in funds and statement of cash flows for the year ended, and a summary of significant accounting policies and other explanatory notes.

The Board of Governor’s Responsibility to the Financial StatementsThe Board of Governors are responsible for the preparation and fair presentation of these financial statements in accordance with the Societies Act and Singapore Financial Reporting Standards, and for such internal control as Board of Governors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Governors, 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.

OpinionIn our opinion, the financial statements of the Institute are properly drawn up in accordance with the Societies Act and Singapore Financial Reporting Standards so as to present fairly, in all material respects, the state of affairs of the Institute as at 31 May 2016 and the results, changes in funds and cash flows of the Institute for the year then ended on that date.

Report on Other Legal and Regulatory Requirements

In our opinion, the accounting and other records required by the regulations enacted under the Societies Act to be kept by the Institute have been properly kept in accordance with the requirements.

Public Accountants and Chartered Accountants Singapore, 5 July 2016

INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF THE INSTITUTE OF INTERNAL AUDITORS SINGAPORE

1 North Bridge Road #23-01 High Street Centre, Singapore 179094 Tel: 65 6305 9900 Fax: 65 6336 0652

Email: [email protected] Website: www.sawmt.com Co Reg No./GST No.: 200602316C

STATEMENT OF FINANCIAL POSITIONAs at 31 May 2016

See accompanying notes to financial statements

NON-CURRENT ASSETS

Property, plant and equipment

CURRENT ASSETS

Inventories, at costTrade receivablesOther receivablesCash and cash equivalents

TOTAL ASSETS

FUNDS

Accumulated surplus

CURRENT LIABILITIES

Fee received in advanceTrade and other payablesProvision for taxation

TOTAL FUNDS AND LIABILITIES

NOTE

3

456

7

2016 (S$)

11,123

5,933126,90667,087

1,592,6681,792,594

1,803,717

1,481,898

157,827163,992

-321,819

1,803,717

2015 (S$)

34,958

-114,95332,230

1,524,6811,671,864

1,706,822

1,341,081

116,342241,648

7,751365,741

1,706,822

ASSETS

40TH

AGM

REPORT 2016

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26

STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 May 2016

OPERATING INCOME

Entrance feesExamination fees, net of expensesSale of educational materials, net of expensesSeminars, talks and conferences, net of expensesMembership subscriptionsJoint events, net of expensesCPE reporting fees, net of expenses

NON-OPERATING INCOME

Bank interestRental incomeGovernment grantOther income

OPERATING SURPLUS

Less:SELLING, ADMINISTRATIVE & FINANCIAL EXPENSES

Accountancy feeAffiliation feeAudit feeBank chargesCPE reporting expensesDepreciationDonationDifference in exchangeEvent expenses (net)Joint event expenses

NOTE

8

9

3

2016 (S$)

5,178116,131

6,100682,183303,552

8,311-

1,121,455

5,37628,20029,444

-63,020

1,184,475

18,00048,4144,300

16,09177

27,794-

16618,514

-

2015 (S$)

4,220100,58512,821

542,108280,874

-5,813

946,421

4,66038,01818,742

27461,694

1,008,115

18,00041,8153,8008,849

-29,6139,400

7951,725

18,967

40TH

AGM

REPORT 2016

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27


STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 May 2016

General expensesInsuranceLegal and professional feeMeeting expensesOffice rentalCopier rentalPostage, printing and stationeryPublicity and advocacyPublishing and tapesRecruitment expensesEmployee benefitsStorage charges, utilities and cleaning serviceTelecommunicationTransportationWebsite expense

Net operating surplus/(deficit) before taxation

Taxation

Net operating surplus/(deficit) after taxation/Total comprehensive income/(loss) for the year

2016 (S$)

4,8023,9612,757

22,841115,542

3,54022,82455,04796,898

238557,906

7,3893,9181,899

10,7401,043,658

140,817-

140,817

2015 (S$)

4,653 3,428

- 34,429

113,662 3,540

23,575 76,087 59,359

201 538,755

6,221 4,010 1,793

27,524 1,030,201

(22,086)-

(22,086)

NOTE

10

40TH

AGM

REPORT 2016

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28


STATEMENT OF CHANGES IN FUNDSFor the year ended 31 May 2016

Balance as at 1 June 2014

Total comprehensive loss for the year

Balance as at 31 May 2015

Total comprehensive income for the year

Balance as at 31 May 2016

ACCUMULATEDSURPLUS

(S$)

1,363,167

(22,086)

1,341,081

140,817

1,481,898

40TH

AGM

REPORT 2016

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29


STATEMENT OF CASH FLOWSFor the year ended 31 May 2016

CASH FLOWS FROM OPERATING ACTIVITIES

Surplus/(deficit) before income taxAdjustments for :DepreciationInterest income

OPERATING CASH FLOWS BEFORE WORKING CAPITAL CHANGE

InventoriesTrade and other receivablesTrade and other payables

CASH GENERATED FROM OPERATIONS

Income tax paid

NET CASH GENERATED FROM OPERATING ACTIVITIES

CASH FLOW FROM INVESTING ACTIVITIES

Interest receivedPurchase of property, plant and equipment

NET CASH FLOW GENERATED FROM INVESTING ACTIVITIES

NET INCREASE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL YEAR

CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR

NOTE

3

3

6

2016 (S$)

140,817

27,794(5,376)

163,235

(5,933)(42,636)(36,171)

78,495

(11,074)

67,421

4,525(3,959)

566

67,987

1,524,681

1,592,668

2015 (S$)

(22,086)

29,613(4,660)

2,867

47057,38573,517

134,239

-

134,239

3,574(2,858)

716

134,955

1,389,726

1,524,681

40TH

AGM

REPORT 2016

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30


For the year ended 31 May 2016

These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

GENERAL INFORMATION

The Institute of Internal Auditors Singapore (the “Institute”) is registered as a society and domiciled in Singapore. The registered address of the Institute is located at 6 Shenton Way #41-04 Singapore 068809.

The principal activities of The Institute of Internal Auditors Singapore, established under the Societies Act, are to provide practising internal auditors with a forum for exchanging ideas and expertise on matters of common interests, to develop their professional skills, to enhance their usefulness to the management they serve, to enhance the professional status of internal auditing in Singapore and to seek to develop a mutual understanding between interested parties regarding the possbilities and benefits of professional internal auditing.

The financial statements of the Institute were authorised for issue on the date of which the Statement by the Board of Governors was signed.

SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation

The financial statements of the Institute have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”).

The financial statements have been prepared on a historical cost basis, except as disclosed in the accounting policies below, and are presented in Singapore Dollars (S$).

The accounting policies adopted are consistent with those of the previous financial year except in the current financial year, the Institute has adopted all the new and revised standards that are effective for annual periods beginning on or after 1 June 2015. The adoption of these standards and interpretations did not have any effect on the result or state of affairs of the Institute.

b) Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with FRS requires the Board of Governors to exercise its judgement in the process of applying the Institute’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements, and the reported amounts of revenues and expenses during the financial year. These estimates are based on the Board of Governors’ best knowledge of current events and actions.

Critical accounting estimates and assumptions used that are significant to the financial statements are discussed below:

(i) Depreciation of property, plant and equipment

1.

2.


The Institute determines the estimated useful lives and related depreciation charges for the Institute’s property, plant and equipment. This estimate is based on the historical experience of the actual useful lives of property, plant and equipment of similar nature and functions. Board of Governors will revise the depreciation charge where useful lives are different to those previously estimated, or a write-off or write-down technically obsolete or non-strategic assets that have been abandoned or sold.

40TH

AGM

REPORT 2016

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31


SIGNIFICANT ACCOUNTING POLICIES (cont’d)

b) Critical accounting judgements and key sources of estimation uncertainty

(ii) Impairment loss recognised in respect of accounts receivable

(iii) Income taxes

c) Property, plant and equipment

All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition, property, plant and equipment are stated at cost or valuation less accumulated depreciation and any impairment in value.

Depreciation is calculated on the straight-line method to write off the cost or valuation of the assets over their estimated useful lives of 3 years.

Fully depreciated assets are retained in the financial statements until they are no longer in use.

Depreciation methods, useful lives and residual values are reviewed and adjusted as appropriate, at the end of the reporting period.

The carrying amounts are reviewed at the end of the reporting period to assess whether they are recorded in excess of their recoverable amount, and if the carrying values exceed their recoverable amounts, assets are written down.

The residual values and useful lives, if not insignificant, are reassessed annually.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising from derecognition of the assets is included in the profit or loss in the year the asset is derecognised.


The allowance of impairment loss in respect of accounts receivable of the Institute is based on the evaluation of collectibility and aging analysis of accounts receivable and on the Board of Governors’ estimate. In determining whether impairment is required, the Institute takes into consideration the aging status and likelihood of collection. When recoverability of accounts receivable is called into doubts, specific provision of impairment loss on accounts receivable are made on the difference between the estimated future cash flow expected to receive discounted using the original effective interest rate and the carrying value.

Significant judgement is required in determining the capital allowances and deductibility of certain expenses during the estimation of the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Institute recognises liabilities for anticipated tax issues based on estimate of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred income tax provisions in the period in which such determination is made.

40TH

AGM

REPORT 2016

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32

2.



d) Impairment of non-financial assets

The carrying amounts of the Institute’s assets are reviewed at the end of the reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

An impairment loss is recognised in the profit or loss if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets or groups of assets.

The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. In assessing the 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 or cash-generating unit.

Impairment losses recognised in prior years are assessed at the end of the reporting period 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 has been recognised. Reversal of impairment loss is recorded in profit or loss. After such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

e) Inventories

Inventories, comprising CIA learning system pack and other educational materials, are stated at the lower of cost and net realisable value. Cost is calculated using the first-in, first-out method.

f) Leased assets

Where assets are financed by lease agreement that give rights approximating to ownership, the assets are capitalised as if they had been purchased outright at the values equivalent to the present value of the total rental payable during the year of the leases and the corresponding lease commitments are included under liabilities. The excess of the lease payments over the recorded lease obligations is treated as finance charges, which are amortised over each lease term to give a constant rate of charge on the remaining balance of the obligation.

g) Provisions

Provisions are recognised when the Institute has a present obligation (legal or constructive) where, as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of the reporting period and adjusted to reflect the current best estimate. Where the effect of time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation.


40TH

AGM

REPORT 2016

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33

2.



h) Related parties

For the purposes of these financial statements, parties are considered to be related to the Institute if the Institute has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Institute and the party are subject to common control or common significant influence. Related parties may be individuals or corporate entities.

i) Financial instruments

Financial assets and financial liabilities are recognised on the Institute’s statement of financial position when the Institute becomes a party to the contractual provisions of the instrument.

(i) Trade and other receivables

(ii) Cash and cash equivalents

(iii) Trade and other payables

(iv) Loans and borrowings

i) Contingent liabilities and assets

A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Institute. It can also be a present obligation arising from past events that is not recognised because it is not probable that outflow of economic resources will be required or the amount of obligation cannot be measured reliably. A contingent liability is not recognised but is disclosed in the notes to the financial statements. When a change in the probability of an outflow occurs so that outflow is probable, they will then be recognised as a provision.


Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for impairment. An allowance for impairment of trade receivables is established when there is objective evidence that the Institute will not be able to collect all amounts due according to the original terms of the receivables. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The amount of the allowance is recognised in the profit or loss.

Cash and cash equivalents comprise cash balances. For the purpose of the statement of cash flows, cash and cash equivalents are presented net of bank overdrafts (if any) which are repayable on demand and which form an integral part of the Institute’s cash management.

Loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.

Gains and losses are recognised in the profit or loss when the liabilities are derecognised as well as through the amortisation process.

Trade and other payables are recognised initially at fair value, net of transaction costs incurred and subsequently stated at amortised costs, using the effective interest method.

40TH

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REPORT 2016

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34

2.



j) Contingent liabilities and assets (cont’d) A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Institute. Contingent assets are not recognised but are disclosed in the notes to the financial statements when an inflow of economic benefit is probable. When inflow is virtually certain, an asset is recognised.

k) Borrowing costs

Borrowing costs are recorded as expenses in the period in which they are incurred.

l) Income tax

Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the profit or loss except to the extent that it relates to items recognised directly to equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous years.

Deferred income tax is provided using the liability method, on all temporary differences at the end of the reporting period arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Currently enacted tax rates are used in the determination of deferred income tax.

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred tax is charged or credited to equity if the tax relates to items that are credited or charged, in the same or a different period, directly to equity.

m) Key management personnel

Key management personnel of the Institute are those having authority and responsibility for planning, directing and controlling the activities of the Institute. Governors are considered key management personnel.

n) Revenue recognition

Subscription fees and entrance fee less refunds, if any, are recognised in the financial statements on an accrual basis.

The annual subscription fee is S$160.50 inclusive of GST, per member and the entrance fee is S$21.40 inclusive of GST, per new member. For new members admitted in the second half of the financial year, the subscription fee is S$80.25 inclusive of GST, per member. Annual subscription fees for corporate members range from S$481.50 to S$4,012.50 inclusive of GST based on the number of nominees.


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2.



n) Revenue recognition (cont’d)

Revenue from seminars and talks is recognised as income in the period in which service is rendered. Examinations fees are recognised as income in the period upon receipts of fees and completion registration of the examination with The Institute of Internal Auditor, USA. Interest income is recognised on a time-apportioned basis.

o) Foreign currency transaction (i) Functional and presentation currency

(ii) Transactions and balances

p) Employee benefits

Defined contribution planContributions to defined contribution retirement benefit plans are recorded as an expense as they fall due. Contributions to government managed retirement benefit plans such as the Central Provident Fund which specifies the employer’s obligations are dealt with as defined contribution retirement benefit plans.

q) Government grant

Cash grants received from the government are recognised as income upon receipt.


Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements are presented in Singapore Dollars, which is the Institute’s functional and presentation currency.

Transactions in foreign currency are measured and recorded in Singapore dollars using the exchange rate at the date of transactions. At the end of the reporting period, recorded monetary balances that are denominated in foreign currency are adjusted to reflect the rate at the end of the reporting period. All exchange adjustments are taken to the profit or loss.

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2.

For the year ended 31 May 2016 NOTES TO THE FINANCIAL STATEMENTS

PROPERTY, PLANT & EQUIPMENT3.

COST

As at 1 June 2014

Additions

As at 31 May 2015

Additions

As at 31 May 2016

Less:

ACCUMULATED DEPRECIATION

As at 1 June 2014

Charge for the year

As at 31 May 2015

Charge for the year

As at 31 May 2016

NET BOOK VALUE

As at 31 May 2016

As at 31 May 2015

LEASEHOLD IMPROVEMENT

OFFICE FURNITURE & EQUIPMENT TOTAL

S$

83,332

-

83,332

-

83,332

23,410

27,777

51,187

26,019

77,206

6,126

32,145

S$

64,030

2,858

66,888

3,959

70,847

62,239

1,836

64,075

1,775

65,850

4,997

2,813

S$

147,362

2,858

150,220

3,959

154,179

85,649

29,613

115,262

27,794

143,056

11,123

34,958

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REPORT 2016

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37


Included in trade receivables are amounts owed by organisations whose delegates attended seminars/conferences organised by the Institute during the financial year:

Trade receivables are generally on 30 days (2015: 30 days) credit terms.The ageing of receivables at the end of the reporting period is:

TRADE RECEIVABLES

OTHER RECEIVABLES

4.

5.

Trade receivables – third parties

Advance billings

Prepayment

Sundry deposits

Interest receivable

Tax refund

Not past due

Past due

1 to 30 days

31 to 60 days

61 to 90 days

2016

S$

27,803

99,103

126,906

2016

S$

29,843

31,187

2,734

3,323

67,087

2016

S$

67,007

33,914

25,616

369

126,906

2015

S$

55,340

59,613

114,953

2015

S$

1,500

28,847

1,883

-

32,230

2015

S$

87,613

25,554

1,786

-

114,953

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REPORT 2016

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38


The weighted average effective interest rate of the fixed deposits as at 31 May 2016 ranged from 0.10% to 1.50% (2015: 0.15% to 0.98%) per annum, with maturities of between 3 and 12 months (2015: 3 to 12 months).

The carrying amounts of trade and other payables approximate their fair values.Trade payables are generally on 30 days (2015: 30 days) credit terms.Trade and other payables are denominated in the following currencies:

CASH AND CASH EQUIVALENTS

TRADE AND OTHER PAYABLES

6.

7.

Fixed deposits

Cash and bank balances

Singapore Dollar

United States Dollar

Trade payables

Accrued payables

GST payables

2016

S$

877,577

715,091

1,592,668

2016

S$

117,713

46,279

163,992

2016

S$

88,915

47,611

27,466

163,992

2015

S$

873,053

651,628

1,524,681

2015

S$

197,761

43,887

241,648

2015

S$

179,290

36,295

26,063

241,648

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EXAMINATION FEES8.

Examination fees (gross)

- CIA

- CFSA

- CCSA

- CGAP

- CRMA

Less: Examination expenses

- CIA

- CFSA

- CCSA

- CGAP

- CRMA

2016

S$

235,697

5,626

4,415

735

23,930

270,403

137,427

2,625

2,553

365

11,302

154,272

116,131

2015

S$

218,907

6,538

1,635

-

20,019

247,099

132,901

3,352

812

-

9,449

146,514

100,585

SEMINARS, TALKS, CONFERENCES9.

Seminars, talks, conferences (gross)

Less: Seminars, talks, conferences expenses

2016

S$

1,288,077

605,894

682,183

2015

S$

1,372,207

830,099

542,108

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REPORT 2016

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40


There is no income tax expense due to utilisation of deferred tax benefit.

A reconciliation of the income tax expense from the amount of income tax expense determined by applying the Singapore statutory income tax rate on the result of the Institute is as follows:

The Institute entered into commercial property leases on its office premises. At the end of the reporting period, these non-cancellable leases had remaining non-cancellable lease terms of between 1 and 5 years.

Future minimum lease payments payable under non-cancellable operating leases are as follows:

The Institute has unabsorbed tax losses amounting to approximately S$35,000 (2015: S$135,000) respectively available for offsetting against future taxable income subject to relevant provisions of the Singapore Income Tax Act and agreement by the Comptroller of Income Tax.

INCOME TAX

OPERATING LEASE COMMITMENT

10.

11.

Surplus/(deficit) before taxation

Tax calculated at statutory tax rate of 17%

Expenses not deductible for tax purposes

Enhanced allowance

Tax incentives

Deferred tax assets not recognised

Due within 1 year

Due within 1 and 5 years

2016

S$

140,817

23,939

60

(2,019)

(7,698)

(14,282)

-

2016

S$

121,748

233,350

2015

S$

(22,086)

(3,755)

1,695

(17,288)

(3,995)

23,343

-

2015

S$

103,021

-

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The Institute is exposed to financial risks arising from its operations and the use of financial instruments. The Institute does not have any written risk management policies and guidelines.

The Institute does not hold or issue derivatives financial instruments or the hedge against fluctuation, if any, in interest rates and foreign exchange.

The main risks arising from the Institute’s financial statements are foreign currency risk, interest rate risk, credit risk, liquidity risk and market price risk. The Institute reviews and agrees policies for managing each of these risks and they are summarised below:

Interest rate risk

The Institute’s exposure to market risk for changes in interest rates relates primarily to interest-bearing fixed deposits with financial institutions. The Institute has no policy to hedge against its interest rate risk. The Institute is in a net interest-income position during the current financial year.

Credit risk

Credit risk is the potential financial loss resulting from the failure of a customer or a counter party to settle its financial and contractual obligations to the Institute as and when they fall due. The Institute monitors the exposure to credit risk on an ongoing basis taking into consideration the credit worthiness of the customer amongst the factors considered. Credit evaluations are performed on all customers requiring credit over a certain amount. The Institute does not require collateral in respect of financial assets.

At the end of the reporting period, there is no significant concentration of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.

Foreign currency risk

The Institute is exposed to foreign exchange risk on transactions that are denominated in a currency other than Singapore dollars. Exposure to foreign exchange risk is monitored on an ongoing basis by the Institute to ensure that the net exposure is at an acceptable level. The Institute pays examination fee to an institute in another country and transacted in United States dollars. As a result, it is exposed to foreign currency risk arising from the exchange rate movements of this foreign currency against the Singapore dollar. However, the Institute does not use any financial derivatives such as foreign currency forward contracts, foreign currency options or swaps for hedging purposes.

FINANCIAL RISK MANAGEMENT POLICIES12.

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Foreign currency sensitivity analysisThe Institute’s sensitivity to a 4% (2015: 4%) strengthening in United States dollar, against Singapore dollar would result in a decrease in surplus after tax for the year by S$1,851 (2015: S$1,755). The sensitivity analysis assumes an instantaneous 4% (2015: 4%) change in the foreign currency exchange rate from the end of the reporting period, with all other variables held constant. The results of the model are also constrained by the fact that only monetary items, which are denominated in foreign currency.

If United States dollar weakened against Singapore dollar by 4% (2015: 4%), with all other variables including tax rate being held constant, it would have had the equal opposite effect on the amount shown above.

Liquidity risk

The Institute monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by Institute to meet commitments associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at close its fair value.

The Institute’s liquidity risk is minimal as it maintains sufficient funds to meet its committed liabilities.

The Institute has no derivative financial liabilities. All non-derivative financial liabilities are due within 12 months.

Market price risk

Price is the risk that the value of a financial instrument will fluctuate due to changes in market prices whether those changes are caused by factors specific to the individual security or its issuer or factors affecting all securities traded in the market.

The Institute does not hold any quoted or marketable financial instrument, hence, is not exposed to any movements in market prices.

Fair values

The fair values of all the Institute’s financial assets and liabilities approximate their carrying amounts.

However, the Institute does not anticipate that the carrying amounts recorded at the end of the reporting period would be significantly different from the values that would eventually be received or settled.

FINANCIAL RISK MANAGEMENT POLICIES (cont’d)12.

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The Institute’s objectives in capital management are:

(a) To safeguard the Institute’s ability to continue as a going concern;

(b) To support the Institute’s stability and growth; and

(c) To provide funds for the purpose of strengthening the Institute’s risk management capability.

The Board of Governors of the Institute has adopted an investment strategy for the Institute’s surplus funds in January 2012. The investment strategy will be periodically reviewed by the Board.

Certain new accounting standards and interpretations have been published that are mandatory for accounting periods beginning on or after 1 June 2016. The Institute does not expect that adoption of these accounting standards and interpretations will have a material impact on the Institute’s financial statements.

The Institute has not adopted the following standards and interpretations that have been issued but not yet effective:

Description

FRS 16, FRS 38 Amendments to FRS 16 and FRS 38: Clarification of Acceptable Methods of Depreciation and Amortisation

FRS 16, FRS 41 Amendments to FRS 16 and FRS 41: Agriculture: Bearer Plants

FRS 27 Amendments to FRS 27: Equity Method in Separate Financial Statements

FRS 110, FRS 28 Amendments to FRS 110 and FRS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

FRS 111 Amendments to FRS 111: Accounting for Acquisitions of Interests in Joint Operations

FRS 114 Regulatory Deferral Accounts

FRS 115 Revenue from Contracts with Customers

Effective for annual period beginning on or after

1 January 2016

1 January 2016

1 January 2016

To be determined

1 January 2016

1 January 2016

1 January 2018

CAPITAL MANAGEMENT

FRS NOT YET ADOPTED

13.

14.

40TH

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The Board of Governors does not anticipate that the adoption of the above FRS in future periods will have a material impact on the financial statements of the Institute in the period of their initial adoption.

Description

Improvements to FRSs (November 2014)

(a) Amendments to FRS 107 : Financial Instruments: Disclosure

(b) Amendments to FRS 19 : Employee Benefits

(c) Amendments to FRS 105 Non-current Assets Held for Sale and Discontinued Operations

FRS 109 Financial Instruments

FRS 1 Amendments to FRS 1: Disclosure Initiative

FRS 110, FRS 112, FRS 28 Amendments to FRS 110, FRS 112 and FRS 28: Investment Entities: Applying the Consolidation Exception

FRS 7 Amendments to FRS 7: Disclosure Initiative

FRS 12 Amendments to FRS 12: Recognition of Deferred Tax Assets for Unrealised Losses

FRS 115 Amendments to FRS 115: Clarifications to FRS 115 Revenue from Contracts with Customers

FRS 116 Leases

Effective for annual period beginning on or after

1 January 2016

1 January 2016

1 January 2016

1 January 2018

1 January 2016

1 January 2016

1 January 2017

1 January 2017

1 January 2018

1 January 2019

FRS NOT YET ADOPTED (cont’d)14.

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40TH ANNUAL GENERAL MEETING REPORT 2016

THE INSTITUTE OF INTERNAL AUDITORS SINGAPORE6 SHENTON WAY #41-04, OUE DOWNTOWN 1, SINGAPORE 068809 TEL: 6324 9029 FAX: 6220 5972

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