SINGAPORE — The Ministry of National Development (MND) has expressed concern that this is the second time auditors for the Aljunied-Hougang-Punggol East Town Council (AHPETC) have submitted a disclaimer of opinion on its accounts after observing that the town council had not complied with provisions of the Town Councils Act and the Town Councils Financial Rules.

AHPETC submitted its FY2012 audited financial statements and report from its auditors, Foo Kon Tan Grant Thornton LLP, on Monday (Feb 10), over five months late and after seven reminders starting from September last year. Town councils were required to submit their financial statements by Aug 31, last year.

Listing four areas of non-compliance reported by the auditors, the ministry said AHPETC had not transferred funds into its sinking funds, and the auditors had not been able to determine the completeness of the related party disclosures as the town council had not made available details of project management service fees paid to a related party.

AHPETC had also not made available its latest management accounts and records of minutes subsequent to the financial year end, and the auditors were unable to determine the validity and accuracy of various items in AHPETC’s accounts, said the MND. This included lift repair and lift upgrading expenses of some S$20 million and temporary unidentified receipts from residents and the Housing and Development Board of some S$308,000.

“This is the second year that AHPETC’s auditors have submitted a disclaimer of opinion on its accounts. This is a cause for concern,” said the MND.

The auditors submitted their audit report to the Auditor-General today, as required under the law.