Nearly all town councils get green rating in latest management report
Sixteen out of 17 town councils received the top rating in the latest town council management report released on Nov 30.
Chua Chu Kang Town Council (CCKTC) was the only one with a lower rating in the latest report, which assesses town councils’ corporate governance and internal controls.
CCKTC received an amber rating as it had two instances of non-compliance with the Town Councils Act, both of which were cases of administrative oversight that have since been rectified.
As there were more than one instance of the same type of non-compliance, this was considered by MND as a medium severity observation, which resulted in the lower rating.
While the remaining 16 town councils received green ratings, four other town councils each had a low severity observation for one non-compliance with the Town Councils Financial Rules or the Town Councils Act.
The town councils were Aljunied-Hougang, East Coast, Jurong-Clementi and Marsiling-Yew Tee. The cases were first-time administrative oversight that have since been rectified, said the ministry.
These four town councils received green ratings for corporate governance as each case of non-compliance was deemed a low severity observation.
The report is based on MND’s review of the town councils’ financial year 2022 audited financial statements, their auditors’ reports as well as checks on the town councils’ declarations of compliance with the Town Councils Act and Rules.
The governance report on Nov 30 covers the period from April 2022 to March 2023.
MND noted that all town councils reported poorer financial positions for the financial year 2022, mainly due to cost pressures from higher water and electricity prices, lift maintenance and other maintenance works.
All town councils have either increased or announced plans to raise their S&CC rates over the next two years, which is expected to improve their financial positions, said MND.
Town councils run by the People’s Action Party announced in June that S&CC rates will be increased twice in the next two years, with the first increase having taken effect on July 1. The next hike will come into effect on July 1, 2024.
Workers' Party Aljunied-Hougang Town Council announced two S&CC increases – Oct 1 and July 1, 2024 – and Sengkang Town Council announced an increase in S&CC from March 1, 2025.
MND said the Government will continue to monitor the town councils’ financial positions and assess if further support is required beyond ongoing assistance provided to all town councils, such as substantive operating grants and special funding support.