FINANCIAL REPORT

Report of the Auditors appointed under Section 16(1) of the Temasek Polytechnic Act, Chapter 323A
Year ended 31 March 2007

REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Temasek Polytechnic (the “Polytechnic”), which comprise the balance sheet as at 31 March 2007, the statement of income and expenditure, statement of changes in accumulated surplus and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages FS1 to FS25.

Board of Governors’s responsibility for the financial statements
The Polytechnic’s Board of Governors is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of the Temasek Polytechnic Act, Chapter 323A (the “Act”) and
Singapore Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

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 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.

Opinion
We draw your attention to Note 2.1 to the financial statements. The Polytechnic has not disclosed related party transactions and outstanding balances with other state-controlled entities as it was granted relief by the Finance Circular Minute No M4/2005 issued by the Ministry of Finance, from such disclosure. The non-disclosure is a non-compliance with Singapore Financial Reporting Standard 24 Related Party Disclosures.

In our opinion:

(a) except for the non-disclosure of related party transactions and outstanding balances with other state-controlled entities, the financial statements of the Polytechnic are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards to present fairly, in all material respects, the state of affairs of the Polytechnic as at 31 March 2007 and the results, changes in accumulated surplus and cash flows of the Polytechnic for the year ended on that date; and

(b) the accounting and other records required by the Act to be kept by the Polytechnic have been properly kept in accordance with the provisions of the Act, including records of all assets of the Polytechnic whether purchased, donated or otherwise.

Report on other legal and regulatory requirements
During the course of our audit, nothing came to our notice that caused us to believe that:

(1) the receipt, expenditure and investment of monies and the acquisition and disposal of assets by the Polytechnic during the financial year have not been made in accordance with the provisions of the Act; and

(2) in relation to the Temasek Polytechnic General Education Fund (the “Fund”), the use of donations monies was not in accordance with the objectives of the Fund.

There were no fund raising appeal conducted by the Fund during the year ended 31 March 2007.

KPMG
Certified Public Accountants

Singapore
27 June 2007

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