Property intelligence

Auditor-General's Report on Aljunied-Hougang-Punggol East Town Council's FY2012-13 Accounts

Published: 09 Feb 2015 · 16:00 SGT
Author: Ministry of National Development
Source: Ministry of National Development

Featured rationalegpt-5.6-sol

The findings signal weaknesses in town-council financial controls that could affect confidence in estate governance, although no direct property-price impact was identified.

AI summary · Briefgpt-5.6-sol

The Auditor-General completed an audit of AHPETC’s FY2012-13 accounts after its auditor raised 13 concerns and issued a second consecutive disclaimer of opinion.

Article · Bilingual archive

Body

In February 2014, the Minister for Finance, at the request of the Minister for National Development, directed the Auditor-General to conduct an audit of the Aljunied-Hougang-Punggol East Town Council (AHPETC)’s FY2012-13 accounts. The Auditor-General has since completed the audit, and submitted his report to the Minister for Finance and the Minister for National Development on 6 February 2015. A copy of the report was made available to AHPETC the following day.

The Minister for National Development will be moving a motion on the Auditor-General’s report at the Parliament sitting on 12 February 2015. The full Auditor-General’s Report on Aljunied-Hougang-Punggol East Town Council's FY2012-13 Accounts can be found at http://www.mnd.gov.sg/.

Background

AHPETC’s Auditor, M/s Foo Kon Tan Grant Thornton LLP, had submitted a disclaimer of opinion on AHPETC’s FY2012-13 Financial Statements, raising 13 issues of concern over the Town Council’s accounts. The Auditor also issued a qualified opinion on AHPETC’s other legal and regulatory requirements, stating that AHPETC had not complied with the provisions of the Town Councils Act and Financial Rules in various respects.

As stewards of public funds, all Town Councils must keep proper accounts and records, and ensure adequate control over their assets. The observations in AHPETC’s Auditor’s Report raised serious questions about the reliability and accuracy of its financial and accounting systems. It was the second consecutive year that the Auditor had submitted a disclaimer of opinion on AHPETC’s Financial Statements. Moreover, the Auditor raised several more issues of pressing concern in the second year, compared to the first year.

As AHPETC’s Auditor’s Report and Financial Statements were cause for serious concern, the Minister for National Development requested the Minister for Finance on 18 February 2014 to exercise his power under section 4(4) of the Audit Act to direct the Auditor-General to conduct an audit of AHPETC’s FY2012-13 accounts. The terms of reference for the audit are provided in the Annex.