Most of you would have heard about the “lapses” of the grassroots organisations under People’s Association that was uncovered in the Attorney General’s Office (AGO) annual audit for 2014/15 by now.
But for those who have not, the AGO found lapses in the management of tenancy contracts in 35 community club/centre management committees (CCMCs) and common procurement irregularities among the GROs.
In total, the AGO test-checked 115 GROs.
One of the lapses involved the CCC chairman of the Admiralty branch, who was found to have approved the awards of two contracts totalling $32,000 to a company.
Another member of the CCC and who was also a member of the company was involved in approving one of these contracts.
The two men held senior positions at the company at the time, and had failed to declare the conflict of interest. In addition, one of the members was involved in approving payments of the two contracts to the company as well as seven of his own claims amounting to $114,767.
Some may consider the findings of AGO alarming, but in reality, it should be extremely horrifying and serious.
More than ten over years of adverse opinions and non-audit
This year is the first year the GROs have appeared on the AGO’s annual audit of the government bodies and the reason for that is likely because PA has just included GROs into the PA’s financial reports.
Last year, TR Emeritius pointed out in a report that PA’s auditors had submitted “adverse opinion” on its accounts from 2008 to 2011 because the financial statements of GROs under PA were not included.
The Online Citizen (TOC) later found that in fact these “adverse opinion” from the PA’s own auditors spanned across 10 years, from 2001 to 2010.
An “adverse opinion” is the most negative among the four types of audit opinions.
This was subsequently acknowledged by the PA in response to queries by local media but it said the matter had been raised in Parliament in 2008 and it had explained then its view that the funds in those accounts belonged to the grassroots organisations, which were operationally self-funding.
PA stressed that the auditors had given an adverse opinion “for one reason – not including the accounts of its grassroots organisations in the PA’s accounts”.
As the PA has ceased the publication of the full financial statement in its annual report since 2011, it is unknown if it received any further adverse opinion from the auditors.
But with the recent findings by AGO in its report for 2014/2015, we can assume that financial reports of the GROs are finally audited together by its auditors in the last financial year.
The tip of the ice-berg
Everyone has to note that PA has over 1,800 grassroots organisations (GROs).
In 2012, the Ministry of Social and Family Development said that there were 87 Citizens’ Consultative Committees (CCCs), 106 Community Club Management Committees (CCMCs), 567 Residents’ Committees (RCs) and 128 Neighbourhood Committees (NCs) as at 31 July 2012.
Full article at http://www.theonlinecitizen.com/2015/07/govt-should-freeze-all-funds-to-pa-until-full-audit-is-done/
But for those who have not, the AGO found lapses in the management of tenancy contracts in 35 community club/centre management committees (CCMCs) and common procurement irregularities among the GROs.
In total, the AGO test-checked 115 GROs.
One of the lapses involved the CCC chairman of the Admiralty branch, who was found to have approved the awards of two contracts totalling $32,000 to a company.
Another member of the CCC and who was also a member of the company was involved in approving one of these contracts.
The two men held senior positions at the company at the time, and had failed to declare the conflict of interest. In addition, one of the members was involved in approving payments of the two contracts to the company as well as seven of his own claims amounting to $114,767.
Some may consider the findings of AGO alarming, but in reality, it should be extremely horrifying and serious.
More than ten over years of adverse opinions and non-audit
This year is the first year the GROs have appeared on the AGO’s annual audit of the government bodies and the reason for that is likely because PA has just included GROs into the PA’s financial reports.
Last year, TR Emeritius pointed out in a report that PA’s auditors had submitted “adverse opinion” on its accounts from 2008 to 2011 because the financial statements of GROs under PA were not included.
The Online Citizen (TOC) later found that in fact these “adverse opinion” from the PA’s own auditors spanned across 10 years, from 2001 to 2010.
An “adverse opinion” is the most negative among the four types of audit opinions.
This was subsequently acknowledged by the PA in response to queries by local media but it said the matter had been raised in Parliament in 2008 and it had explained then its view that the funds in those accounts belonged to the grassroots organisations, which were operationally self-funding.
PA stressed that the auditors had given an adverse opinion “for one reason – not including the accounts of its grassroots organisations in the PA’s accounts”.
As the PA has ceased the publication of the full financial statement in its annual report since 2011, it is unknown if it received any further adverse opinion from the auditors.
But with the recent findings by AGO in its report for 2014/2015, we can assume that financial reports of the GROs are finally audited together by its auditors in the last financial year.
The tip of the ice-berg
Everyone has to note that PA has over 1,800 grassroots organisations (GROs).
In 2012, the Ministry of Social and Family Development said that there were 87 Citizens’ Consultative Committees (CCCs), 106 Community Club Management Committees (CCMCs), 567 Residents’ Committees (RCs) and 128 Neighbourhood Committees (NCs) as at 31 July 2012.
Full article at http://www.theonlinecitizen.com/2015/07/govt-should-freeze-all-funds-to-pa-until-full-audit-is-done/
