MND Press Statement on AHPETC

[Johorat]

That clears the air. Another sabotage attempt by PAP. When will they realy stop all these nonsense?

[Chucky2007]

First its the chief Weather officer that tried to wack the lightning onto the hammer... Now it's the kampong department that is striking... But at least the kampong chief is smarter.. Ask the department to strike and don't show face first

Edited February 15, 2014 by Chucky2007

[Lurpsexx]

http://www.channelnewsasia.com/news/singapore/auditors-report-on-ahpetc/998276.html

 

SINGAPORE: An audit expert said that the findings of independent auditors engaged by the Aljunied-Hougang-Punggol East Town Council (AHPETC) are serious.

The auditors had issued a “disclaimer of opinion” for the town council's latest financial statements for the financial year ended March 31, 2013. [ This CNA article says one thing]

Observers said the “disclaimer of opinion” issued points to deeper issues with the financial statements.

On Friday, chairman of the Workers' Party-run AHPETC, Sylvia Lim, said that the auditors had given a "qualified" but not "adverse" report. [ Sylvia says another thing]

But audit expert Dr Ernest Kan said that a "qualified" report is still serious. [FYI, Ernest Kan is the President of the Institute of Singapore Chartered Accountants, AKA Bean Counters/Auditors = add more firepower to this PAPzi controlled media release??. Also is he agreeing with Sylvia that the the Aljunied TC had received a "qualified" opinion and not the disclaimer of opinion as put forward by this article?? So which is the true opinion received by the Aljunied TC????]

"Qualified opinion in the mind of the auditor means the accounts do not give a true and fair view in certain aspects of the financial statement," said the president of the Institute of Singapore Chartered Accountants. [see definition and severity of this Qualified audit opinion among the 4 listed below; it ranks as no 2 and is close to the cleanest Unqualified opinion. So is this still serious, when no fraud is represented & the a/g was not done up to std only ? what Ernest says here is closer to Adverse opinion...]

He said a "qualified opinion" is rare.

When there are significant and pervasive issues, auditors can either issue an "adverse" report or "disclaimer of opinion.”

The difference is that an “adverse opinion” means the client disputes the auditor's report.

A "disclaimer of opinion”, which the town council received, means that there is insufficient information for the auditors to give any opinion. [ CNA says this again now...]

Dr Kan said: "It could well be that the sufficiency of documentation is not adequate. It could also mean that for the information that they have, they may have misplaced or worse, documented a transaction but there is no supporting document." [Ernest is referring to definition of "Disclaimer of Opinion" here....]

The auditors’ report has also raised concerns among residents living in estates managed by the town council.

Residents said that estate cleanliness and maintenance have been “okay” since the Workers' Party took over the running of the town council, but they still want to see transparency and accountability in the way funds are being used.

[below are unnecessary "noise" in this article to cast more stones on the WP team, a devious move by the Papzi controlled media :]

A resident, Madeline Ng, said: "We are paying the town council fee every month, so we are also worried about how these funds are being managed, and whether this audit is based on the procedures of their whole accounting system.

"The estate maintenance is okay, and as long as they can justify what are the lapses and why they have lapses in this area, I think we can accept it."

Another resident, V Nair, said: "If there had already been problems in the earlier stages, why are they not being corrected over the past two years? [he should read Sylvia's 14 Feb press release on this issue, see who's the real culprits in stalling the corrections needed...]

“So whoever's involved in making sure this has to be corrected, has to take the necessary steps to sort this out and bring everything back in the proper order.”

The town council manages estates in the Aljunied GRC, which comprises Bedok Reservoir-Punggol, Eunos, Kaki Bukit, Paya Lebar, Serangoon Divisions, Hougang and Punggol East SMCs.

There are more than 70,000 dwelling units, shops and hawker stalls under its purview.

- CNA/nd

What Are the 4 Types of Audit Reports? (http://smallbusiness.chron.com/4-types-audit-reports-3794.html)

 

Unqualified Opinion

Often called a clean opinion, an unqualified opinion is an audit report that is issued when an auditor determines that each of the financial records provided by the small business is free of any misrepresentations. In addition, an unqualified opinion indicates that the financial records have been maintained in accordance with the standards known as Generally Accepted Accounting Principles (GAAP). This is the best type of report a business can receive.

Qualified Opinion

In situations when a company’s financial records have not been maintained in accordance with GAAP but no misrepresentations are identified, an auditor will issue a qualified opinion. The writing of a qualified opinion is extremely similar to that of an unqualified opinion. A qualified opinion, however, will include an additional paragraph that highlights the reason why the audit report is not unqualified.

Disclaimer of Opinion

On some occasions, an auditor is unable to complete an accurate audit report. This may occur for a variety of reasons, such as an absence of appropriate financial records. When this happens, the auditor issues a disclaimer of opinion, stating that an opinion of the firm’s financial status could not be determined. [but there is no fraud or misrepresentation identified]

Adverse Opinion

The worst type of financial report that can be issued to a business is an adverse opinion. This indicates that the firm’s financial records do not conform to GAAP. In addition, the financial records provided by the business have been grossly misrepresented. Although this may occur by error, it is often an indication of fraud. When this type of report is issued, a company must correct its financial statement and have it re-audited, as investors, lenders and other requesting parties will generally not accept it.

[Kb27]

lightning party playing dirty politics again ?

[Johorat]

PAP’s Aljunied TC failed to provide financial records to new TC

February 15

13:29 2014

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👤by onlinecitizen 0 Comments

By Terry Xu

In the Worker’s Party’s press statement on the Aljunied-Hougang-Punggol-East Town Council (AHPETC) 2012/2013 annual report, it emphasized that the independent auditors gave the town council a “qualified report” and not an “adverse report.” Apart from the 13 specific observations, the town council’s books, accounts and records have been kept in accordance with the Town Councils Act.

The full audited report can be viewed here.

With regards to the 13 points highlighted by the auditors, the AHPETC explained that since Financial Year 2011, the auditors had tried to request information from the former Managing Agent of the town council when it was under the charge of the People’s Action Party (PAP).However, such requests were unsuccessful.

“Repeated attempts by the Town Council (TC) to obtain information from the former Managing Agent (MA) and government authorities, such as asking MND / the Housing and Development Board regarding $1.12 million which the PAP-run Aljunied TC had recorded as receivables from the Citizens Consultative Committees (CCCs) for Town Improvement Projects, did not yield answers. Further attempts in FY 2012 to get the information were also unsuccessful.”

The Workers’ Party said that unless those agencies with the required information furnished them to the town council, it is likely that information gaps will remain and the accounts will continue to be qualified every year. The party said that the Ministry of National Development (MND) would be the best party to assist the town council to resolve some of the key information gaps.

The party acknowledges the oversight of transferring monies to the Sinking Fund and said it has since rectified the oversight. It added that the oversight did not result in any loss of monies or unauthorized spending.

 

MND released a press statement on Friday evening and said that there were nine new issues of concern which were raised by the auditor for the Financial Year 2012. The ministry said that such failures are not related to handover issues.

However, in the financial report of AHTC 2011/12, the auditors wrote in the auditor’s basis of disclaimer:

“The accompanying financial statements include the Income and Expenditure statement, sinking funds, town improvement and project fund and government grants whose figures include those stated in the statement of income and expenditure and receipts and payments for the period 1 April 2011 to 31 July 2011 of Aljunied Town Council.”

“This statement was audited by another firm of auditors and we were not allowed access to the auditor’s audit documentation. We were also not able to obtain the supporting accounting documents from the previous managing agent of the Aljunied Town Council prior to the reconstitution. As a result, we were unable to determine whether the income and expenses and receipts and payments for the period 1 April 2011 to 31 July 2011 for Aljunied Town Council that are included in the accompanying financial statements are fairly stated.”

For clarity, points 3, 4, 5, 7, 8, 9, 11, 12 and 13 is as follow

• 3. Conservancy and Service receivables
• 4. Lift repair expenses
• 5. Lift Upgrading Program (LUP)
• 7. Conservancy and service fees received in advance
• 8. Income Taxes
• 9. Goods and Service Taxes (GST)
• 11. Transfer to Sinking Funds
• 12. Related Party transaction
• 13. Subsequent events review

Therefore, apart from points 11,12,13, the “new” points of observation that MND was pointing at were already highlighted in the above disclaimer of the prior year’s financial report. And that this coincides with what the Workers’ Party has mentioned in its press statement.

While the Workers’ Party has yet explain points 12 and 13, the MND would have to give an explanation on why the previous town council has not shared its audited documents with the current town council to reconcile the accounts.

In fact, it is more troubling to know that the outgoing town council management can withhold crucial financial documents from the incoming management. Would that not be holding the residents ransom?

And what should one think of the People’s Action Party (PAP) which is making a mountain out of a mole hill from problems created by its own party to begin with?

We attach below a summary of the 13 points observation brought up by the auditors in the financial report of AHPETC.

______________
1) Opening Balances

Auditor wrote that they were unable to obtain sufficient, appropriate audit evidence to provide a basis for an audit opinion on the financial statements of Aljunied Hougang Town Council for the financial year ended 31 March 2012 and they were also unable to deter if the opening balances of the Town Council and comparatives in the current year’s financial statements were derived from the financial statements for financial year ended 31 March 2013 are fairly stated.

2) Receivables from various stakeholders.

Citizens Consultative Committee

a) The auditors note that in the current financial year, the Town Council received $520,926 from the Citizens Consultative Committee. But the receipts for this sum cannot be identified and matched to the receivable balance of $1,118,574. The Town council had recorded this amount received of $520,926 in other payables as at 31 March 2013 which the auditors are unable to determine if this was appropriate.

b) Inland Revenue Authority of Singapore (“IRAS”)

Auditor note that the Management of the Town Council does not have any supporting documents to substantiate the receivables due from IRAS amounting, $110,735 in the accounts that was handed over by the previous managing agent.

c) Sundry Debtors

Auditors were unable to carry out audit procedures for the balance of $1,831,094 recorded in the Sundry Debtors.

TOC’s note – Note that the amount was brought over from year 2011 (view note)

3) Conservancy and Service receivables

Auditors unable to ascertain the credit risk characteristics of the conservancy and service receivable as Management unable to provide an aging analysis or information on the credit profile of individual units.

Town council provide for impairment losses for outstanding conservancy and service receivables when the receivables are more than seven years in arrears.

4) Lift repair expenses

Auditors unable to determine accuracy of lift repair expenses of $1,630,298 recorded in the year under audit as Management did not ascertain the quantum of 2012′s expenses that was included in 2013′s financial statements.

5) Lift Upgrading Program (LUP)

Expenses relating to the previous financial year were included in the LUP expense of $18,612,857, under the sinking funds expenditure, caused the current year’s LUP expenditure to be overstated.

As the management did not ascertain the quantum of prior year’s expenses that was included in the current year’s financial statements, the auditors were unable to determine accuracy of the expenses recorded in the year of audit

6) Creditors and Accrued Expenses

a) No Standard Operating Procedures to enable timely recording of liabilities therefore auditors are unable to ascertain the completeness of the liabilities.

b) Auditors unable to ascertain validity of an amount of $338,379 pertaining to “Accrual without work orders” brought forward from Aljunied Town Council in August 2011 as the Town Council was unable to provide details of the amount.

c) Auditors unable to ascertain payables amounting to $307,715 in temporary unidentified receipts from residents and Housing and Development Board as Town council was unable to provide details of the amount.

7)Conservancy and service fees received in advance

Auditors unable to determine the validity and accuracy of the advance receipts from residents in respect of conservancy and service charges amounting to $507,809.

8) Income Taxes

Auditor unable to determine the validity and accuracy of tax provisions amounting $756,383 as there were no provision for tax payable by Hougang Town Council during the time of handover of operations on 26th May 2011 and there is a difference between the income paid by the Aljunied Town Council and provision for tax recorded in 2011 and 2012.

9) Goods and Service Taxes (GST)

Auditors unable to determine the validity and accuracy of GST payable of $518,707 due to unexplained differences between the GST balances recorded in the Town Council’s accounting records and GST returns submitted to comptroller of GST.

10) Cash and Bank Balances

$63,458 out of $67,589 unexplained difference noted during the March 2012 bank reconciliation remained un-reconciled. The balance has been included in other payables.

11) Transfer to Sinking Funds

Town council did not comply with Town council financial rules by not transferring any amounts of conservancy and service charges to the bank account of the sinking funds during the current financial year.

12) Related Party transaction

Auditors unable to determine the completeness of related party disclosures as the town council had not made details of the project management services fees paid to a related party available to them.

13) Subsequent events review

As the Town Council had not made its latest management accounts and records of minutes subsequent to the financial year end to the auditors. They were unable to carry out the audit procedures to obtain sufficient appropriate audit evidence as to whether events occurring between date of financial statements and date of the auditor reports that require adjustment are properly reflected in the current set of financial statements in accordance to the Singapore financial reporting standards.

Edited February 15, 2014 by Johorat

[Super7]

lightning party playing dirty politics again ?

Being true to themselves, their mode of tackling enemies?

[Blackyv]

Being true to themselves, their mode of tackling enemies?

A leopard will never change its spot... And btw, the correct word to use is 'fix', not tackling... Hehehe..

[Super7]

A leopard will never change its spot... And btw, the correct word to use is 'fix', not tackling... Hehehe..

LOL

 

But they will twist the word and say "fix" as in fixing something to make it good, doing it a favour.

[Playtime]

Someone's think WP need to add more fire to their reply. Call a spade a spade.

Call AIM and the messy handover a act of sabotage. Bring it up in parliament and direct to the residents of the TC to bypass the msm.

[Philipkee]

I do wondet what would have happened if sdp, rp and nsp had won a grc? I am sure it would be worse. At least wp has some tc experience. Perhaps God has eyes and know that 2011 was not the right time for other oppo to win. 2016, let's see.

[Watwheels]

This goes to show how the high and mighty is totally clueless about the details of running a TC. Now ppl ask for details. Staying tuned for their response.

[Blackyv]

This goes to show how the high and mighty is totally clueless about the details of running a TC. Now ppl ask for details. Staying tuned for their response.

 

i hope not anohter $2 coy appear from nowhere after opening up the can of worms...

[Playtime]

This goes to show how the high and mighty is totally clueless about the details of running a TC. Now ppl ask for details. Staying tuned for their response.

 

You are so wrong.

They know EXACTLY how to run a TC and which Area to disable for maximum effects. They are willing to do it with no Regards to residents welfare.

[Mustank]

I hope the former auditor, the current auditor and mnd come out to clarify

[Super7]

I hope the former auditor, the current auditor and mnd come out to clarify

Not many people, maybe even auditors, want to offend the powerful wor...

[Blackyv]

Not many people, maybe even auditors, want to offend the powerful wor...

Yalor, hard truth..

[Mustank]

Not many people, maybe even auditors, want to offend the powerful wor...

I don't know whether wp is telling the truth

No one knows

So both auditors and mnd should step forward to debunk wp

If not debunked, people will take it that wp is telling the truth?

Now ball is in auditors and mnd court

 

It is an entertaining tennis game

[Playtime]

I hope the former auditor, the current auditor and mnd come out to clarify

The ex MA walk out from new contract and risk getting bad rep as an unreliable contractor.

 

Auditors will face the same pressure. Govt conrtacts at stake here.

 

That's how corrupted our system is now.