Thursday, Feb 13, 2014
SINGAPORE - The Ministry of National Development has expressed concern that independent auditors have been unable to fully verify Aljunied-Hougang-Punggol East Town Council's (AHPETC) accounts for the second year in a row.
SINGAPORE: The Ministry of National Development (MND) has flagged its concerns over the latest financial statements of the Aljunied-Hougang-Punggol East Town Council (AHPETC) for the financial year ended March 31, 2013. - CNA 13 Feb 2014
The independent auditors -- Foo Kon Tan Grant Thornton -- engaged by AHPETC said in a report that the town council had not complied with the provisions of the Town Councils Act and the Town Councils Financial Rules.
The town council, run by the Workers' Party, had submitted its statements on Monday, nearly six months late and after seven reminders.
All town councils had been required to submit their financial statements by August 31, 2013.
The auditors also made what's described as a "Disclaimer of Opinion", which means they were unable to express an opinion on the financial position of the town council due to insufficient evidence.
Disclaimers of Opinion are issued by auditors when they refuse to sign off on financial statements completely, due to lack of information.
In the case of the Aljunied-Hougang-Punggol East Town Council, the auditors listed 13 points in its disclaimer.
A key area highlighted was related party transactions.
The town council had said in its financial statements that it had appointed FM Solutions and Services as its Managing Agent after the 2011 General Election.
The managing director of the company, Mr Danny Loh, is also the secretary of the town council.
Mr Loh’s wife, Ms How Weng Fan, is a director of the company and also acted as the town council's general manager.
The company had been paid a management agent fee of some S$5.3 million.
Related party transactions refer to those where the town council’s key management personnel have a personal financial interest.
Among the other areas cited in the auditors' report were the town council's opening balances, lift repair balances and lift upgrading expenses.
The auditor also noted that the town council had not transferred monies into its Sinking Funds as was required under the Town Councils Financial Rules.
There were also questions over the validity of receipts collected.
The auditors said they were unable to determine the validity and accuracy of various items in the town council's accounts, including receivables of some S$1.8 million, lift repair and lift upgrading expenses of some S$20 million, and temporary unidentified receipts from residents and the HDB of about S$308,000.
Other items included advance receipts from residents in respect of conservancy and service charges of some S$507,000.
There were also unidentified differences of GST payable of some S$518,000 and unreconciled differences of some S$63,000 in cash and bank balances.
The town council had also received nearly S$521,000 from the Citizens Consultative Committee but the receipts could not be identified and matched to other records.
The auditors also said AHPETC had not made available to the auditors its latest management accounts and records of minutes subsequent to the financial year-end, to allow the auditors to ascertain whether AHPETC's financial statements properly reflected adjustments or disclosures needed in light of relevant subsequent events.
The Ministry of National Development noted that the financial statements had only been submitted after seven reminders, and that this was the second year the town council's auditors have submitted a disclaimer of opinion on its accounts.
The ministry said in a statement that this is a "cause for concern".
The independent auditors have submitted their report to the Auditor-General as required under the law."
Let the news sit and sink in for a while!
Lessons for me are:
1. this is GETTING serious for Workers' Party. The main opposition political party in Singapore that had ignited the hope and inspired, for some, people to really think that perhaps having a credible opposition party in Singapore CAN get the government to LISTEN MORE to Singaporeans' concerns. These were the conclusions drawn by many Singaporeans AFTER government had taken a lot of their previously ignored, or 'considered NOT PRIME TIME YET', concerns and ADDRESSED them. This despite the government's denial that it was due to the setback it had tasted during the last GE and the 2 by-elections;
2. for me the initial hoohah about the financial statements and financial management issues were due to 'cutting over' and some teething issues last year. I think the revelation by the 3rd party auditors on SIMILAR issues, the auditors issued a 'Disclaimer of Opinion' last year too, for THIS fiscal year audit is NOT a good reflection on WP's management of the AHPETC's finances.
Of particular concern, to most sympathizers of WP, is: HOW can it STILL not been able to SORT out the 'related parties' transactions after more than 1 year?
This is a BIG disappointment. And disturbing. WP REALLY needs to clarify this one if nothing else!!
3. The ball is firmly in WP's court now as the one who raised these issues is an independent auditors, appointed in fact by AHPETC itself.
Not a good news on the eve of Double Happiness 'Valentine Day' and 'Yuan Xiao Jie'!
WP to in-bound the basketball now ...
SINGAPORE: The Ministry of National Development (MND) has flagged its concerns over the latest financial statements of the Aljunied-Hougang-Punggol East Town Council (AHPETC) for the financial year ended March 31, 2013. - CNA 13 Feb 2014
The independent auditors -- Foo Kon Tan Grant Thornton -- engaged by AHPETC said in a report that the town council had not complied with the provisions of the Town Councils Act and the Town Councils Financial Rules.
The town council, run by the Workers' Party, had submitted its statements on Monday, nearly six months late and after seven reminders.
All town councils had been required to submit their financial statements by August 31, 2013.
The auditors also made what's described as a "Disclaimer of Opinion", which means they were unable to express an opinion on the financial position of the town council due to insufficient evidence.
Disclaimers of Opinion are issued by auditors when they refuse to sign off on financial statements completely, due to lack of information.
In the case of the Aljunied-Hougang-Punggol East Town Council, the auditors listed 13 points in its disclaimer.
A key area highlighted was related party transactions.
The town council had said in its financial statements that it had appointed FM Solutions and Services as its Managing Agent after the 2011 General Election.
The managing director of the company, Mr Danny Loh, is also the secretary of the town council.
Mr Loh’s wife, Ms How Weng Fan, is a director of the company and also acted as the town council's general manager.
The company had been paid a management agent fee of some S$5.3 million.
Related party transactions refer to those where the town council’s key management personnel have a personal financial interest.
Among the other areas cited in the auditors' report were the town council's opening balances, lift repair balances and lift upgrading expenses.
The auditor also noted that the town council had not transferred monies into its Sinking Funds as was required under the Town Councils Financial Rules.
There were also questions over the validity of receipts collected.
The auditors said they were unable to determine the validity and accuracy of various items in the town council's accounts, including receivables of some S$1.8 million, lift repair and lift upgrading expenses of some S$20 million, and temporary unidentified receipts from residents and the HDB of about S$308,000.
Other items included advance receipts from residents in respect of conservancy and service charges of some S$507,000.
There were also unidentified differences of GST payable of some S$518,000 and unreconciled differences of some S$63,000 in cash and bank balances.
The town council had also received nearly S$521,000 from the Citizens Consultative Committee but the receipts could not be identified and matched to other records.
The auditors also said AHPETC had not made available to the auditors its latest management accounts and records of minutes subsequent to the financial year-end, to allow the auditors to ascertain whether AHPETC's financial statements properly reflected adjustments or disclosures needed in light of relevant subsequent events.
The Ministry of National Development noted that the financial statements had only been submitted after seven reminders, and that this was the second year the town council's auditors have submitted a disclaimer of opinion on its accounts.
The ministry said in a statement that this is a "cause for concern".
The independent auditors have submitted their report to the Auditor-General as required under the law."
Let the news sit and sink in for a while!
Lessons for me are:
1. this is GETTING serious for Workers' Party. The main opposition political party in Singapore that had ignited the hope and inspired, for some, people to really think that perhaps having a credible opposition party in Singapore CAN get the government to LISTEN MORE to Singaporeans' concerns. These were the conclusions drawn by many Singaporeans AFTER government had taken a lot of their previously ignored, or 'considered NOT PRIME TIME YET', concerns and ADDRESSED them. This despite the government's denial that it was due to the setback it had tasted during the last GE and the 2 by-elections;
2. for me the initial hoohah about the financial statements and financial management issues were due to 'cutting over' and some teething issues last year. I think the revelation by the 3rd party auditors on SIMILAR issues, the auditors issued a 'Disclaimer of Opinion' last year too, for THIS fiscal year audit is NOT a good reflection on WP's management of the AHPETC's finances.
Of particular concern, to most sympathizers of WP, is: HOW can it STILL not been able to SORT out the 'related parties' transactions after more than 1 year?
This is a BIG disappointment. And disturbing. WP REALLY needs to clarify this one if nothing else!!
3. The ball is firmly in WP's court now as the one who raised these issues is an independent auditors, appointed in fact by AHPETC itself.
Not a good news on the eve of Double Happiness 'Valentine Day' and 'Yuan Xiao Jie'!
WP to in-bound the basketball now ...
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