Aljunied-Hougang Town Council (AHTC) is left with 2 more audit problems to resolve, after promising to make up for a shortfall in its sinking fund by transferring close to S$14 million to it this year.
This was reported by AHTC independent auditor KPMG.
The transfers will be made in four instalments of S$3.5 million each – in February, May, August and November this year.
The amount will cover:
A shortfall of S$5.3 million in sinking fund transfers that should have been made between August 2011 and March 2016;
A matured bond worth S$2 million – including interest – that should have gone into the sinking fund but was erroneously transferred into the operating fund; and
– About S$6.6 million in input goods and services tax (GST) claims arising from sinking fund expenditures for the financial years 2011/2012 to 2015/2016.
The Workers’ Party-run town council has, to date, 2 problems left to resolve after fixing 15 of 17 financial and governance problems flagged in past audits.
It has started to put in place measures to remedy the problem of lack of monitoring and exercise of diligence over collections from and payments to external parties and items in temporary clearing accounts.
Another problem of opening balances is also subject to further review and recommendations by KPMG.