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Breaking news: PA also has adverse opinion


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Yesterday (19 Feb), Minister for National Development Khaw Boon Wan requested Finance Minister Tharman Shanmugaratnam to direct the Auditor-General to conduct an audit of the opposition-run Aljunied-Hougang-Punggol East Town Councils (AHPETC) financial accounts. AHPETCs auditor, Foo Kon Tan Grant Thornton LLP, had earlier submitted a disclaimer of opinion on AHPETCs FY2012-13 financial statements, raising 13 issues of concern over the town councils accounts. Earlier, on 14 February 2014, the Ministry of National Development (MND) said that the auditors disclaimer of opinion is more severe than a qualified opinion [Link]. In yesterdays statement, the PAP government said that the observations in the auditors report raise serious questions about the reliability and accuracy of AHPETCs financial and accounting systems. This is the second year that the Auditor has submitted a disclaimer of opinion on AHPETCs Financial Statements. Moreover the Auditor has raised several more issues of pressing concern this year, compared to last year. AHPETCs Auditors Report and Financial Statements cause for serious concern. As it turns out, auditors have been giving an adverse opinion on the financial reports from the Peoples Association (PA) for several years now. PA oversees all the grassroots activities in Singapore. It is a statutory board under the Ministry of Community Development, Youth and Sports (MCCY). The Chairman of PA is none other than PM Lee Hsien Loong himself. According to ACRA, there are a few types of audit opinions. A disclaimer of opinion means the auditor is unable to express an opinion on the financial statements but an adverse opinion means qualification of the financial report is not adequate to disclose the misleading or incomplete nature of the financial statements

 

The auditor concludes that the financial statements give a true and fair view or are presented fairly, in all

 

Opinion

 

material respects, in accordance with the applicable financial reporting framework. Emphasis

 

 

 

This is to highlight a matter affecting the financial

 

o of matter

 

statements which is included in a note to the financial

 

(EOM)

 

statements that more extensively discusses the matter. The addition of such an emphasis of matter paragraph does not affect the auditors opinion. Qualified

 

This is expressed when the auditor concludes that an unqualified opinion cannot be expressed but that the

 

Opinion*

 

effect of any disagreement with management, or limitation on scope is not so material and pervasive as to require an adverse opinion or a disclaimer of opinion. Disclaimer

 

It is expressed when the possible effect of a

 

of Opinion*

 

limitation on scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence and accordingly is unable to express an opinion on the financial statements.

 

It is expressed when the effect of a disagreement is

 

Adverse Opinion*

 

so material and pervasive to the financial statements that the auditor concludes that a qualification of the report is not adequate to disclose the misleading or incomplete nature of the financial statements.

 

TRE has gone through PAs financial reports on its website and found the following: FY2007 (07/08) [Link] For FY2007, PA did not include the financial statements of grassroots organizations (GROs) operating under itself. The auditor could not assess the financial impact to the financial statements of the Association arising from the non-inclusion of the financial statements of the GROs. As such, the auditor gave an adverse opinion against PA because its financial statements [did] not present fairly the state of affairs of the Association:

 

FY2008 (08/09) [Link] For FY2008, the same thing happened. The GROs financial statements were again omitted by PA. Again, the auditor gave an adverse opinion against PA because its financial statements [did] not present fairly the state of affairs of the Association:

 

FY2009 (09/10) [Link] In FY2009, a new auditor, KPMG LLP, took over the audit of PA. The new auditor said, We do not have sufficient information to assess the financial impact to the financial statements of the Association arising from the non-inclusion of the financial statements of the GROs. As such, the new auditor also gave an adverse opinion:

 

Then, the format for the online version of PAs financial reports for the next 3 years (FY2010 2012) changed [Link]. The public could no longer see the detailed opinions of the auditors. PA only published the financial highlights in these 3 reports. In other words, the financial reports became just financial summaries:

 

FY2010 (10/11): http://www.calameo.com/read/000485916ba3dc3fdf3aa FY2011 (11/12): http://www.calameo.com/read/00209005895ae2db73d51 FY2012 (12/13): http://online.flipbuilder.com/nvbl/mstp/

 

TRE then went down to the National Library to attempt to get printed copies of PAs financial reports but the librarian was not able to find printed copies for the last 3 FYs (FY2010 2012). The library only has printed copies up to FY2009. The librarian told TRE to refer to the online versions instead. Not giving up, TRE did a further extensive online search and managed to find an online version of PAs FY2010 financial report. This copy was found on the Parliament website: FY2010 (10/11) [Link] Comparing this with the online version on PAs website [Link], they are essentially the same except that the one found on the Parliament website discloses the detailed opinion of the auditor at the end:

 

Again, the auditor could only give an adverse opinion for PAs FY2010 financial report because the auditor [did] not have sufficient information to assess the financial impact to the financial statements of the Association arising from the non-inclusion of the financial statements of the GROs. The relationship between PA and PAP is very close. Mr Lee Kuan Yew once proudly said that the Chinese have been sending teams of officials to learn from Singapore for years:

 

They discover that the Peoples Action Party has only a small office in Bedok. But everywhere they go, they see the PAP in the RCs (residents committees), CCCs (citizens consultative committees), and the CCs (community clubs).

 

The operating expenditure of PA is huge. According to its latest financial report (FY2012), PAs operating expenditure for the year increased by $46 million to $483 million. Government grants which are taxpayers money given to PA amounted to $434 million in FY2012:

 

Dr Ernest Kan, President of the Institute of Singapore Chartered Accountants (ISCA) and Pasir Ris Punggol grassroots leader, had earlier agreed with MND that the audit findings on AHPETC are serious (President of ISCA: AHPETCs audit report serious). It is not known what Dr Kan has to say about PAs audit findings which have garnered adverse opinions from auditors. It is also not known if the Acting Minister for Culture, Community and Youth (MCCY), Lawrence Wong, will request Finance Minister Tharman Shanmugaratnam to direct the Auditor-General to conduct an audit of PAs financial accounts, since PA comes under MCCY.

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This is interesting. What does PA do to warrant over $400mil per annum in operating expenditure?

 

Errr...gathering residents for mass makan sessions, organising malaysia trips, "bus-sing" elderly citizens to factory/farm visits cum meals , providing free packets of nasi lemak cum transport somewhere every five years? [laugh][laugh]

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This is interesting. What does PA do to warrant over $400mil per annum in operating expenditure?

PA=PAP. What does PAP do to warrant over $400mil per annum in operating expenditure? LOL.

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PA=PAP. What does PAP do to warrant over $400mil per annum in operating expenditure? LOL.

1st priority is to ensure TOP Salaries to attract top talents.

the balance not much leftover

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I think Chingay is organized by PA. Anybody can confirm this?

Guess what coming Saturday neighborhood chingay will only be display along punggol precinct not Seng Kang, not to mention its route will include the areas under contruction ard punggol mrt .....

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If this true, the! PA has to explain and be held accountable for.

 

But will not critise some of PA's initiated programs. It may be irrelevant to most of us who hardly step into a CC or even stop to look at their notices. For old folks & lower income folks, their programs may be super interesting and the only way they will get to see the rest of Singapore or part of Malaysia.

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This is interesting. What does PA do to warrant over $400mil per annum in operating expenditure?

 

Where do you think those $$$$ for oversea retreats by grassroot comes from .... [lipsrsealed]

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Where do you think those $$$$ for oversea retreats by grassroot comes from .... [lipsrsealed]

My ex colleague is a grassroot activist, everytime goes overseas retreats, one year many times!! Edited by Super7
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I learnt something new today- if AHPETC kena disclaimer opinion and need AGO to audit, then Adverse Opinion need CPIB or not ?

Types of Audit Opinions

 

Unqualified opinion — The unqualified opinion has no reservations concerning the financial statements. This is also known as a clean opinion meaning that the financial statements appear to be presented fairly.

Qualified opinion — This means that the auditor has taken exception to certain current-period accounting applications or is unable to establish the potential outcome of a material uncertainty.

Disclaimer opinion — This is a special type of audit report that should be issued when the auditor permits his or her name to be associated with financial statements that were not examined in accordance with generally accepted auditing standards.

Adverse opinion — This is a type of audit opinion which states that the financial statements do not fairly present the financial position, results of operations, and changes in financial position, in conformity with generally accepted accounting principles.


My ex colleague is a grassroot activist, everytime goes overseas retreats, one year many times!!

Overseas as in to Batam, JB and sometimes Sentosa ?

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I learnt something new today- if AHPETC kena disclaimer opinion and need AGO to audit, then Adverse Opinion need CPIB or not ? Types of Audit Opinions

 

Unqualified opinion The unqualified opinion has no reservations concerning the financial statements. This is also known as a clean opinion meaning that the financial statements appear to be presented fairly.

Qualified opinion This means that the auditor has taken exception to certain current-period accounting applications or is unable to establish the potential outcome of a material uncertainty.

Disclaimer opinion This is a special type of audit report that should be issued when the auditor permits his or her name to be associated with financial statements that were not examined in accordance with generally accepted auditing standards.

Adverse opinion This is a type of audit opinion which states that the financial statements do not fairly present the financial position, results of operations, and changes in financial position, in conformity with generally accepted accounting principles.

 

Overseas as in to Batam, JB and sometimes Sentosa ?

Dont play play, as far as China!!!

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Dont play play, as far as China!!!

Retreat can go Tiong Kok ?

My company retreat, the last I remember was 1992 in Perth and the former MD say once in 20 years...

Now already 2014 still waiting...

Glassloot needles benefits so good. I think of joining...

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How many ppl are under PA's payroll? That includes the chairman too?

$483mil. That's no small sum.

 

Just like the scholar general. Director of this, chairman of that, bank acount fat fat. Jin boh eng but feel bery lich.

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Retreat can go Tiong Kok ?

My company retreat, the last I remember was 1992 in Perth and the former MD say once in 20 years...

Now already 2014 still waiting...

Glassloot needles benefits so good. I think of joining...

Wanna join? Make sure your backside clean clean hor... Hehe

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