The Aljunied-Hougang Town Council (AHTC) has made progress in resolving governance issues to do with related-party transactions, its independent accountant KPMG said.
In its latest monthly progress report on the town council run by the Workers' Party (WP), KPMG said AHTC has resolved five governance and financial problems flagged in past audits.
They relate to issues such as the incomplete disclosure of transactions with related parties in financial statements and weaknesses in the approval of payments to related parties, among other things, KPMG said in its 10th monthly report that the WP made available online yesterday.
The owners of AHTC's former managing agent FM Solutions and Services and service provider FM Solutions and Integrated Services held key positions in the town council, and had approved and made payments to their own companies.
With the resolution of the five issues, the town council has addressed eight of 17 audit points that it is required to resolve.
The town council had appointed KPMG to look into its books after the Auditor-General's Office found significant governance lapses in a special audit.
KPMG said the town council has also deployed a new accounting platform that is used to record and account for transactions.
AHTC had implemented phase one of the accounting system on Jan 3.