Response to MND’s Statement of 12 April 2017 on AHTC’s FY2015 Financial Statements (Media Release 12 Apr 2017)

1. The Aljunied-Hougang Town Council (“AHTC”) refers to the Ministry for National Development’s (“MND”) press statement above.

2. With reference to our auditor’s observations for FY2015 in respect of the 3 non-compliances with the Town Councils Act and Town Council Financial Rules (TCFR) as listed in Annex A of the MND’s press release, AHTC would like to clarify the following:
   a. On the failure to transfer sinking funds in a timely fashion (repeated finding from FY2012, FY2013 and FY2014), as required under Rule 4(2B)(a) of the TCFR, all outstanding Sinking Fund transfers have since been made upon the receipt of the withheld Government grants in April 2016.

   b. On the failure to ensure that all disbursements from the Sinking Fund are properly attributable for Sinking Fund purposes as required under Rule 53(1) of the TCFR, the amount in question came up to $4,161.87. It was duly returned to the Sinking Fund on 14 Dec 2016. In committing the oversight, an estate staff had wrongly classified the repair of a resident’s leaking ceiling as facade repair works, the latter of which is properly attributable to the Sinking Fund.

   c. On the failure to include a debarment statement in the invitation of quotations or tenders as required under Rule 86A(3) of the TCFR, the omission of the debarment statement was an isolated case involving one Invitation To Quote (ITQ) exercise. For all subsequent ITQs, this requirement has been complied with.

3. The clarifications above have been made known to MND by way of our auditor’s detailed observations.