NOTES TO THE FINANCIAL STATEMENTS 31 March 2024 25. COMMITMENTS (CONT’D) (c) Collaboration agreement with Zhejiang University The University has entered into a collaboration agreement with Zhejiang University (“ZJU”) since 26 August 2010 with the intention to develop and offer courses at the University and to jointly undertake research activities and other collaborative activities. Under the SUTD-ZJU Collaboration Agreement, the University is required to contribute to the collaboration up to December 2023. During the financial year ended 31 March 2024 and 2023, no operating expenses pertaining to the collaboration was incurred. (d) Capital commitments Capital expenditures contracted for the balance sheet date but not recognised in the financial statements are as follows: 2024 2023 $’000 $’000 Property, plant and equipment 9,745 10,019 26. RELATED PARTIES TRANSACTIONS Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions. The University receives grants from the MOE to fund its operations and is subject to certain controls set by MOE and considers MOE a related party. Hence, other government-controlled entities are considered related parties of the University. The University has applied the exemption from disclosure requirements of FRS 24 in relation to related party transactions and outstanding balances (including commitments) with MOE and other government-controlled entities. The University has significant transactions with MOE and other government-controlled entities in the form of purchase of goods and services and rendering of services. Such purchases and sales are collectively approximate to $924,000 (2023 : $608,000) and $10,181,000 (2023 : $6,151,000) respectively. 27. FINANCIAL RISK MANAGEMENT Financial risk factors The University’s activities expose it to market risk (including currency risk, interest rate risk and price risk), liquidity risk and credit risk. The Board of Trustees has the Finance and Investment Committees to assist the Board in setting the objectives and underlying principles of financial risk management for the University. Financial risk is reviewed by the Finance and Investment Committees. The Investment Office assists in the implementation and management of the investment portfolio within the prescribed investment guidelines and mandates. The information presented below is based on information received by the Finance and Investment Committees. p. 86 SINGAPORE UNIVERSITY OF TECHNOLOGY AND DESIGN
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