NOTES TO THE FINANCIAL STATEMENTS 31 March 2024 24. FUNDS’ NET ASSETS MANAGED ON BEHALF OF MINISTRY OF EDUCATION (“MOE”) Pursuant to the MOE Tuition Fee Loan (“TFL”) and Study Loan (“SL”) schemes, the University acts as agent for these loans schemes and the MOE is the financier providing the advances. 2024 2023 $’000 $’000 Balance as at 1 April 11,511 12,159 Student loan granted to students 3,613 2,941 Repayments received from students (1,998) (3,589) Balance as at 31 March 13,126 11,511 Represented by: TFL receivables 12,209 10,591 SL receivables 917 920 Net assets 13,126 11,511 Student tuition fee and study loans are unsecured, interest-free during the course of study and are repayable by monthly instalments over period of up to 20 years after the students’ graduation. Interest is charged based on the average of the prevailing prime rates of the 3 local banks. The interest rate as at the end of reporting period is 4.75% (2023 : 4.75%) per annum. 25. COMMITMENTS (a) Lessee – Operating lease commitments The University leases plant and machinery under a non-cancellable operating lease agreement. The lease expenditure during the financial year is as follows: 2024 2023 $’000 $’000 Expense relating to leases of low-value assets, excluding short-term leases of low value assets 43 98 (b) Lessor – Operating lease commitments The University leases campus space to non-related parties under non-cancellable operating lease agreements. Operating leases, in which the University, is the lessor, relate to premises owned by the University with lease terms of 1 to 3 years. For leases with extension options, the extension option is 1 to 3 years. All operating lease contracts contain market review clauses in the event that the lessee exercises its option to renew. The lessee does not have an option to purchase the premises at the expiry of the lease period. Maturity analysis of operating lease payments: 2024 2023 $’000 $’000 Year 1 440 417 Year 2 110 353 Year 3 3 64 553 834 p. 85 ANNUAL REPORT 2023/24
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