All town councils except Bishan-Toa Payoh receive highest rating for corporate governance

The Bishan-Toa Payoh Town Council (BTPTC) received an amber rating for governance in the FY2023 Town Council Management Report for non-compliance with the Town Councils Act.

According to the Ministry of National Development report, BTPTC had not obtained approval from the minister for three improvement works on non-common property.

The report added that while retrospective approval for these three projects was sought and given to the town council subsequently, it was considered a "medium severity observation". Therefore, it was given a point for the scoring, resulting in the amber rating.

The other 16 town councils received green banding, the highest banding, for corporate governance.

BTPTC has taken steps to rectify oversight

The report further noted that BTPTC has taken steps to rectify such oversights.

These include having an internal review team that will periodically review and confirm the accuracy and completeness of submitted project details.

The town council will also ensure that a letter of award for projects requiring legal approval is only given out after approval from MND is obtained.

In response to media queries, BTPTC said it had reviewed its internal process and implemented control measures to prevent such a procedural lapse from occurring again, CNA reported.

Other town council's instances of non-compliance

Apart from BTPTC, the report also flagged other town councils' instances of non-compliance, such as Ang Mo Kio, Marine Parade and Marsiling-Yew Tee.

In the case of Ang Mo Kio Town Council, it had incorrectly apportioned a portion of the Lift Replacement Fund (LRF) matching grant to the residential property instead of the commercial property.

The report noted that the town council had revised its statements for the financial year of 2023 (FY2023) and rectified its accounting records.

The Marine Parade Town Council did not obtain the Housing Development Board’s consent before the installation of bicycle racks.

HDB’s retrospective consent for the project was sought and subsequently given to the town council.

As for the Marsiling-Yew Tee Town Council, it did not obtain HDB's approval for the pilot installation of electronic noticeboards.

The town council removed these noticeboards following HDB's notifications about the matter.

All of these instances of non-compliance were considered low in severity, and the town councils were still given a green rating.

The coordinating chair of PAP town councils and Member of Parliament for Mountbatten SMC, Lim Biow Chuan, told CNA that most of the lapses were "administrative in nature".

Town councils have reported improved financial positions

MND further noted in a press release that for FY2023, the town council generally reported improved financial positions, mainly due to the increased Service & Conservancy Charges (S&CC), as well as the one-off Special Funding Support package (SFS) that the government gave to town councils that made adjustments to their S&CC.

The SFS package served as a temporary measure to buffer town councils and residents from the full impact of the sharp and steep operational cost increases that arose due to external factors in 2022 and 2023 and enable the town council to manage their operations sustainably.

Without the SFS, more town councils would have incurred operating deficits for FY2023, MND added.

In addition, such measures, coupled with ongoing efforts by the town councils to raise productivity and improve cost-efficiency, have been necessary to help them cope with cost pressures, particularly in cleaning, maintenance and general administration.

Maintaining a financially secure position has also allowed town councils to continue setting aside funds for town improvement projects that benefit residents, such as constructing sheltered linkways and disability-friendly ramps to improve connectivity within their towns, upgrading estate infrastructure, and building more activity areas such as fitness corners and playgrounds.

Some town councils have also topped up their lift replacement funds to save for upcoming lift replacement works.

MND said, "The government will continue to monitor the town councils’ financial positions and is committed to working with town councils to ensure their long-term financial sustainability."

Top photo via Bishan Toa Payoh/Facebook