theonlinecitizen May 20, 2013
By Leong Sze Hian
Relentless attacks?
As a resident of AHPETC, I was rather perturbed and annoyed by the seemingly relentless attacks on the financial management of AHPETC.
To put it crudely (pardon my language) – it was like people were coming to “shit in your own backyard”.
AHPETC vs HBPTC?
So, I decided to go look at the annual reports of AHPETC and HBPTC.
1. For FY2011/2012, AHPETC had an accumulated surplus of $2,748,196 against HBPTC’s accumulated deficit of $849,414.
2.AHPETC’s surplus for the year was $1,104,388 against HBPTC’s deficit of $689,624.
3.AHPETC’s operating deficit of $3,396,800 was about 21 per cent less than HBPTC’s deficit of $4,306,324.
4.AHPETC’s ratio of operating income to expenditure at 0.89 ($28,682,516 divided by $32,079,316) was better than HBPTC’s 0.84 ($22,530,581 divided by $26,836,905) – So, does this mean that AHPETC is more efficient than HBPTC?
5.AHPETC’s total comprehensive income for the year attributable to the town council at $3,226,962 was much higher than HBPTC’s $687,889 – about more than 4 times higher.
6.AHPETC’s managing agent’s fees was $3,827,113 against HBPTC’s $3,307,510. But, what I found to be rather interesting is that HBPTC’s fees decreased by about 11 per cent from $3,708,874 in the previous year – 2011.
Fees decrease?
I don’t know much about town council management, but is it normal for the fees to drop so much in a year considering that inflation was I believe rather high in that year (I think about 4 to 5 per cent – financial year ending 31 March very hard for a layman like me to try to figure out what was the exact inflation for that period).
Was it a one-time abnormally?
But S & CC increase?
Also, I am confused as I don’t understand why HBPTC increased their S & CC last year when their fees dropped, whereas AHPETC was able to decrease theirs?
I am sorry I was not able to find the fees for AHPETC in 2011 – maybe because it was then called Aljunied town council under a different management. I tried googling “Aljunied town council” – but I think the web site does not exist anymore or something.
Looking at the above statistics, perhaps like they always say in a debate – “I rest my case”.
Looking at the above, I am glad (at least from a resident’s perspective) that I am living in AHPETC (for over 50 years now) and not in HBPTC.
“Related party transactions”
AHPETC also had a statement – “Related party transactions – On 15 July 2011, the Town Council appointed FM Solutions and Services Pte Ltd as the Managing Agent for a period of one year for which Mr Danny Loh, Secretary is the Managing Director. Mrs How Weng Pan, the spouse of Mr Danny Loh, is also a director of FM Solutions and Services Pte Ltd and also acted as the town council’s General Manager. The total management fee for the year is $3,827,113.”
I didn’t see any “Related party transactions” statement in HBPTC’s annual report – but you know all these reports are very very long – and if I had missed it – do please forgive me – as I’m just a layman and ordinary citizen who lives in AHPETC. Anyway, it would seem that HBPTC did not have any ”Related party transactions”.
P.S. I am not an accountant and accounting was my worse subject in school (just managed to pass lah – I always avoided accounting subjects if I had a choice in selecting elective subjects). S0, if I have made an “honest mistake” in the above – may I apologise in advance.
