All town councils achieve unqualified financials for FY2023 except Bishan-Toa Payoh TC rated amber for lapse

SINGAPORE: On 11 December 2024, the Ministry of National Development (MND) released the FY2023 financial statements and Town Council Management Report (TCMR).

While all 17 town councils (TCs) achieved unqualified financial statements, Bishan-Toa Payoh Town Council (BTPTC) received an ‘amber’ rating for governance due to repeated administrative lapses.

The lapses, involving non-compliance with the Town Councils Act, were classified as medium severity.

Despite rectification, BTPTC’s repeated issues led to a governance score of one point.

In contrast, Ang Mo Kio, Marine Parade, and Marsiling-Yew Tee Town Councils were given green ratings, despite minor errors scoring 0.5 points each, according to a MND statement.

An unqualified audit opinion signifies compliance with accounting standards and regulations, reflecting strong financial reporting.

Notably, FY2023 saw financial improvements across all TCs due to higher Service & Conservancy Charges (S&CC) and a one-off Special Funding Support (SFS) package introduced to mitigate rising operational costs.

The SFS package served as a temporary measure to buffer TCs 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 TCs to manage their operations sustainably.

“Without the SFS, more TCs would have incurred operating deficits for FY2023,” the MND statement noted.

MND stated that productivity improvements and cost-efficiency measures have been crucial in helping town councils (TCs) manage cost pressures in areas like cleaning, maintenance, and administration.

These efforts have allowed TCs to allocate funds for community-enhancing projects such as sheltered linkways, ramps, and activity areas.

Additionally, some TCs have bolstered their Lift Replacement Funds for future upgrades.

The TCMR evaluates town councils annually in two reports.

The June operational report assessed estate cleanliness, maintenance, lift performance, and arrears management, with all TCs achieving green ratings.

The latest governance report focused on financial and compliance indicators, underscoring efforts to ensure transparency and sustainability.

MND affirmed its commitment to working with TCs to address challenges and safeguard long-term financial health.

Residents can access the full FY2023 financial statements on the respective TCs’ websites, while the TCMR is available on MND’s portal.