Bored? Can't be bothered to follow the news anymore? Tired of being constantly hit in the face by acronyms like AGO, AHPETC (pronounced as Ah-Pat-SEE), FMSS and PwC?

Here's all you need to know about the supposedly damning report put out by the Auditor-General's Office regarding the five lapses by the Aljunied-Hougang-Punggol East Town Council that is getting the Workers' Party a lot of flak:

1. Lack of governance over transactions with related parties

There were conflicts of interest involved in transactions worth $25.9 million between AHPETC and its managing agent, and the town council had failed to properly monitor and manage these contracts.

These conflicts had arise as four of the town council's senior officers had stakes in its managing agent FM Solutions & Services (FMSS) and had verified work and approved payment on behalf of AHPETC to their own company in some instances.

Critical level: Moderate to high. Disclosure of conflicts of interest should apply to incumbent- and opposition-run town councils.

2. Poor monitoring of S&CC arrears

AHPETC did not have a system that could monitor its service and conservancy charges (S&CC), nor generate accurate historical data.

This led to the town council submitting unreliable arrears statistics to the Ministry of National Development and the town council's own finance and investment committee.

But it turns out that the arrears rate was 5.66 percent and not the shockingly high 29.4 percent as initially reported due to double-counting.

Critical level: Moderate. Historical data generated can be used as feedback.

3. Poor record and accounting system

The lack of a proper record-management and accounting system was why the AHPETC failed to produce accurate financial statements.

The AGO said AHPETC did not adequately safeguard accounting documents for April to July 2011. Its auditors were then unable to conclude that its FY 2011/12 financial statements were true and fair. This in turn affected the town council's opening balances for the subsequent financial year.

Critical level: Moderate. New software system needs to be developed.

4. Non-compliance with rules on sinking fund

The AHPETC failed to transfer monies to its sinking fund several times. When it did, there were occasions when the transfers were late or short of the required amount.

There were other instances of non-compliance with the Town Councils Act, involving the wrong use of money in sinking fund bank accounts.

Critical level: Moderate to low. More oversight needed to ensure timely transfers.

5. Insufficient internal controls

AHPETC did not have sufficient internal controls and this exposed it to risks such as the loss of monies or valuables and wrong payment for goods and services.

The AGO cited issues such as inadequate protection of cheques and safes.

Critical level: Low. Hire a secretary.

Related articles:

4 reasons why AHPETC arrears saga is not doing S’pore politics any favour

The Town Council Management Report: A summary of views from both sides

Everything you need to know about WP Town council trial in 60 secs

Everything you need to know about WP Town council trial in 60 secs (Day 2)

Everything you need to know about WP Town council trial in 60 secs (Final Day)

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