Tampines Town Council rated as worst performer in Covid-19-delayed official report card for FY2019

SINGAPORE - Tampines Town Council emerged as the worst performer in the latest official report card for town councils, showing less than stellar results in corporate governance and estate maintenance.

Chua Chu Kang Town Council, meanwhile, did badly in arrears management in service and conservancy charges (S&CC), while Aljunied-Hougang Town Council underperformed in estate maintenance.

The three were the only town councils that received amber ratings in the latest Town Council Management Report (TCMR), for the 2019 financial year that ended on March 31, 2020, released on Monday (Mar 15).

The annual report, issued by the Ministry of National Development (MND), assesses the performance of town councils in five areas: estate cleanliness, estate maintenance, lift performance, management of arrears in S&CC, and corporate governance.

The green, amber or red ratings given are based on measurable, objective criteria submitted by town councils and their auditors.

Tampines Town Council was marked down in the area of corporate governance after it fell afoul of the Town Councils Financial Rules. It had transferred inadequate amounts into its sinking and lift replacement funds for the quarter that ended on Sept 30, 2019.

The town council said the error arose as the town council officer preparing the transfers was not familiar with the computation template used for the task.

The officer has since been given a stern warning, and steps have been taken to ensure all officers adhere to the template.

As the shortfall was made good in the following quarter that ended on Dec 31, 2019, the town council did not suffer any other consequences, such as loss of interest, from the error, it said.

It added that its auditor has certified that its financial statements were properly drawn up and gives a "true and fair view of the financial position as at March 31, 2020".

"Rest assured that the audit finding does not undermine the robust foundation that the Tampines Town Council has put in place for corporate governance," the town council told The Straits Times.

The town council also did not fare well in estate maintenance due to obstruction of common areas, as well as installation of unauthorised fixtures, among other things.

Aljunied-Hougang Town Council (AHTC), which also got an amber rating for estate maintenance, had similar problems. In a statement to the media, AHTC said "the cluttering of common areas, particularly along the common corridors, remains a pertinent issue not just unique to our constituencies".

"We stay committed in educating and working with residents and agencies, such as the Singapore Civil Defence Force and Housing Development Board, to minimise such risks, while balancing our residents' interest," it added.

AHTC also said that its overall performance was a steady improvement from the previous year, due to the cooperation of staff, residents, contractors, town councillors and various government and statutory agencies.

Meanwhile, Chua Chu Kang Town Council received an amber rating for the management of S&CC arrears as some 40 to 50 per cent of its monthly S&CC due for collection had been overdue.

The town council's chairman, Minister of State Low Yen Ling, said that more than 1,000 build-to-order flats came on stream from April 2018 and to the first quarter of 2020, but there was a delay in residents moving in due to renovations and Covid-19 disruptions.

With many residents typically starting to pay S&CC only upon moving in, the town council ended up with arrears, she added, noting that it had also minimised collection of the arrears during the Covid-19 pandemic.

Ms Low said the problem had improved since October last year, adding: "The town council also makes it a point to highlight and assure all residents that help is available for those who need additional time or assistance in their payments due to their financial circumstances."

The TCMR this time around was delayed as town councils were given more time to submit their audited financial statements and corporate governance checklists due to the pandemic, the MND said.

The town councils were allowed to submit the documents two months later, on Nov 30 last year, in view of the circuit breaker period imposed from April 7 to June 1 to curb the spread of the coronavirus. "As a result, the presentation of the town councils' financial statements to Parliament and the finalisation and publication of the FY2019 TCMR results have been delayed," added the ministry.

From next year, the TCMR will be split into two, with one covering only corporate governance.

The other report will cover the operational indicators: estate cleanliness, estate maintenance, lift performance, and service and conservancy charges arrears management.

Announcing the new format, MND said the report on the operational indicators will be published yearly in May or June, when the information is collected and available.

The corporate governance report will be published in November or December, as the town councils' audited financial statements, required for the assessment, are submitted to MND only by the end of September.

The ministry told The Straits Times that the splitting up of the report will not impact how town councils are assessed, but allows for more focused and timely reporting on the different aspects of their work.

MND also said it will not be publishing the TCMR for financial year 2020 as it has suspended the assessment of town councils for the period of April last year to this month.

"This is in view of the disruption faced by the town councils during the circuit breaker period as well as the changes to the town councils following General Election 2020 in July last year. The suspension also allows for clear accountability of the results when the TCMR assessment resumes from financial year 2021 (which starts next month)," it added.

However, town councils will still have to submit a self-declared corporate governance checklist, as well as their audited financial statements, for FY2020.

The checklists will be published on MND's website.

MND said it will also continue to monitor town councils' performance in the other areas, and with estate inspections on randomly selected blocks. The findings will be sent to the town councils for follow-up.