1. Aljunied-Hougang Town Council (“AHTC”) has, on 14 May 2016, submitted to the Housing and Development Board the second monthly progress report issued by KPMG to AHTC. This report was issued in accordance with the Court of Appeal judgment in Attorney-General v AHPETC (Civil Appeal No. 114 of 2015).
2. This report is accessible in full here (click here for the full report).
3. A summary of the progress of the on-going remediation plans by AHTC can be found at page 3 and 4 of the KPMG report. Some of the key areas of progress made by AHTC are as follows:
a. Establishing draft policies and procedures for KPMG’s recommendations including, but not limited to, the following:
i . Related Party Transaction Policy;
ii. Conflict of Interest Policy – which has been extended to (a) AHTC’s Town Councillors to declare annually their potential conflicts of interest; and (b) including the requirement to declare paid and unpaid engagements and employment with external parties, personal financial interests and gifts; and
iii. Accounting Policy – Period end closing checklist/s.
b. The capability to automatically generate Service and Conservancy Charges arrears data for use in reporting to the Ministry of National Development;
c. Generating and providing KPMG with the accounts payable, accounts receivable and general ledger for the period Jan 2011 to Dec 2015. KPMG identified some inconsistencies in the extracted data, some of which have now been resolved; KPMG is working with AHTC to resolve the remainder.
d. Reporting to the Comptroller of the Goods & Services Tax that AHTC is undertaking a self-review and will voluntarily disclose any errors identified to the Inland Revenue Authority of Singapore.
4. With respect to the 17 Audit Points identified in the April 2016 report, 15 outstanding audit points are now subject to remedial measures. Two Audit Points were resolved by the remedial measures undertaken by AHTC, as reported previously. KPMG has commenced review of all 15 outstanding audit points.
5. The report notes that, on 29 Apr 2016, AHTC instructed its bankers to transfer $3,755,044.86 to its Sinking Fund bank account in respect of the period January to March 2016 within the stipulated period as required by the Town Councils Act.
ALJUNIED-HOUGANG TOWN COUNCIL
14 May 2016