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http://www.tremeritus.com/2015/08/30/annual-report-suggests-ahpetc-finances-in-good-shape/
The following conclusions can be drawn based on the charts above:
PAP town councils also run a deficit before grants: The PAP run town councils above have financial positions very similar to AHPETC. If operating deficit is an issue for AHPETC, then the PAP town councils above are running an operating deficit as well before government grants. Tanjong Pagar, Ang Mo Kio and Marine Parade have a deficit before government grant of around 15% of operating income. AHPETC is only marginally higher at 20%. AHPETYC could probably explain why their cost of operation is slightly higher (may be fewer vendors bidding?)
AHPETC receives lower grants? A key difference is that the three PAP town councils here receive much higher government grants, between 33% and 40% comparted to AHPETC at 22%. According to MND, these grants are calculated based on a formula that has existed since 1999. But it appears the way this is calculated (or the formula) has not been disclosed. (See http://www.todayonline.com/singapore/mnd-gives-details-town-council-grants-refute-online-speculation). It is also a fact that that AHPETC’s current government grants are below what it received in 2010, which according to MND is a “one-off”. Some more disclosure from the MND on how the government grant is calculated would greatly help (why not show us the formula?).
If AHPETC, received the same government grant as Marine Parade as % of operating income (in which case it will get a government grant of S$ 15 million instead of S$ 8 million), its financial position would be no weaker than Marine Parade’s or the other TCs compared here. This assumes that there is no major difference in the number of four room flats and smaller between town councils.
Cash position has improved in last three years: AHPETC also had cash of S$ 93.4 million and financial asset of S$ 12.6 million as of March 2014, compared to cash of S$ 35 million and financial assets of S$ 25.4 million as of March 2011. Is this not a sign of improving finances from the time WP took over the town council?
Based on the financial statements, it appears there is no major issue with the financial position of AHPETC. Voters should look at the facts rather than rhetoric when judging opposition-run town council finances.
The following conclusions can be drawn based on the charts above:
PAP town councils also run a deficit before grants: The PAP run town councils above have financial positions very similar to AHPETC. If operating deficit is an issue for AHPETC, then the PAP town councils above are running an operating deficit as well before government grants. Tanjong Pagar, Ang Mo Kio and Marine Parade have a deficit before government grant of around 15% of operating income. AHPETC is only marginally higher at 20%. AHPETYC could probably explain why their cost of operation is slightly higher (may be fewer vendors bidding?)
AHPETC receives lower grants? A key difference is that the three PAP town councils here receive much higher government grants, between 33% and 40% comparted to AHPETC at 22%. According to MND, these grants are calculated based on a formula that has existed since 1999. But it appears the way this is calculated (or the formula) has not been disclosed. (See http://www.todayonline.com/singapore/mnd-gives-details-town-council-grants-refute-online-speculation). It is also a fact that that AHPETC’s current government grants are below what it received in 2010, which according to MND is a “one-off”. Some more disclosure from the MND on how the government grant is calculated would greatly help (why not show us the formula?).
If AHPETC, received the same government grant as Marine Parade as % of operating income (in which case it will get a government grant of S$ 15 million instead of S$ 8 million), its financial position would be no weaker than Marine Parade’s or the other TCs compared here. This assumes that there is no major difference in the number of four room flats and smaller between town councils.
Cash position has improved in last three years: AHPETC also had cash of S$ 93.4 million and financial asset of S$ 12.6 million as of March 2014, compared to cash of S$ 35 million and financial assets of S$ 25.4 million as of March 2011. Is this not a sign of improving finances from the time WP took over the town council?
Based on the financial statements, it appears there is no major issue with the financial position of AHPETC. Voters should look at the facts rather than rhetoric when judging opposition-run town council finances.
