# Launch of Code of Governance for Town Councils - **Source:** Ministry of National Development - **Published:** 2019-06-19T03:00:00.000Z - **Author:** Ministry of National Development - **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/launch-of-code-of-governance-for-town-councils - **Topics:** New Launches, Investment & Capital Markets ## Featured rationale Stronger transparency and governance standards may increase resident confidence in estate management and support more accountable use of funds for public housing neighbourhoods. ## AI summary MND launched a Code of Governance for Town Councils effective from FY2020, covering institutions that collectively manage about $2 billion in public and residents’ monies. ## Original article The Ministry of National Development (MND) has launched the Code of Governance for Town Councils (TCs), which seeks to promote greater transparency and raise governance standards in TCs. The Code will take effect from FY2020 (1 April 2020), to provide time for TCs to implement the Code provisions. Background TCs were formed in 1989 to give elected Members of Parliament (MPs) the autonomy and latitude to run their own Towns, in partnership with the residents1. This allows each Town to develop its own character and identity, reflecting the aspirations of its residents and Town Councillors. Today, TCs collectively manage about $2 billion worth of public and residents’ monies. As public institutions entrusted with significant amounts of public funds, TCs should have good governance and management controls in place to remain transparent and accountable to their residents. In recent years, MND has taken steps to strengthen the regulatory framework for TCs, while ensuring that TCs continue to retain autonomy over their operations. At the passing of the Town Councils (Amendment) Bill in March 2017, MND had shared that we would work with the TCs to develop a Code of Governance (“Code”) for TCs. The Code would complement the existing legislative framework by setting out principles of good governance, and highlighting best practices to guide the TCs in better executing their fiduciary responsibilities and improving accountability. MND has worked with our appointed consultant, Ernst & Young Advisory Pte Ltd (EY), to draft the Code, and consulted an Advisory Panel, comprising experienced academics, governance experts and industry practitioners, for their expert views and perspectives during the drafting process. MND also consulted the TCs on the Code in December 2018, and held a public consultation in April 2019. Feedback from these consultations was taken into consideration when formulating the Code. About the Code The objectives of the Code are to: (a) Enhance the effectiveness of TCs by sharing recommended governance practices; (b) Provide guidance to the Town Councillors to help them carry out their fiduciary duties; and (c) Improve the transparency of TCs’ operations to build public trust and confidence. The Code is based on five guiding principles, namely integrity, objectivity, accountability, fairness and transparency. These guiding principles underpin the provisions in the Code, which span four domains: (a) Council Effectiveness, (b) Internal Controls & Processes, (c) Financial Management and (d) Vendor Management (see Annex for details). The Code provisions set out best practices which TCs are encouraged to adopt, through a comply-or-explain regime. In drafting the Code, MND has taken reference from the Code of Charities and Institutions of Public Character, and the Code of Corporate Governance where appropriate, and adapted the provisions to suit the unique operating context of TCs. MND has also sought to introduce more robust governance standards whilst being mindful of the cost of compliance and the differences in operating circumstances across TCs. To facilitate TCs’ declarations of compliance, MND has issued a Governance Disclosure Checklist for the Code. TCs must declare their compliance with the Code provisions using this Checklist, and submit the Checklist to MND annually. Where TCs opt not to comply or are in the process of working towards compliance with certain provisions, TCs will be required to provide meaningful explanations on how the governance standards in the Code are achieved. The first declaration for FY2020 will be due for submission in September 2021. The declaration will be made available for public viewing on the MND website. MND will work closely with TCs to assist them to attain the desired governance standards. 1 At least two-thirds of the appointed members of the Council must be residents of the HDB housing estate within the Town. ## Chinese translation > Translation model: grok_cli ### 推出市镇理事会管治守则 国家发展部（MND）已推出《市镇理事会管治守则》（TCs），旨在促进更大透明度，并提升市镇理事会的管治标准。该守则将自2020财政年度（2020年4月1日）起生效，以便市镇理事会有时间落实守则条文。 背景 市镇理事会于1989年成立，赋予当选国会议员（MPs）自主权和空间，与居民共同管理各自市镇1。这使每个市镇能够发展自身特色与身份认同，反映居民及市镇理事的期望。 目前，各市镇理事会合计管理约20亿新元的公共及居民资金。作为受托管理大量公共资金的公共机构，市镇理事会应具备良好的管治与管理控制，以对居民保持透明和问责。近年来，国家发展部已采取措施加强市镇理事会的监管框架，同时确保市镇理事会继续保有运营自主权。 在2017年3月《市镇理事会（修正）法案》通过时，国家发展部曾表示将与市镇理事会合作，为市镇理事会制定《管治守则》（“守则”）。该守则将补充现有立法框架，阐明良好管治原则，并强调最佳实践，以指导市镇理事会更好地履行信托责任并提升问责。 国家发展部已与我们委任的顾问安永咨询私人有限公司（EY）合作起草该守则，并咨询由经验丰富的学者、管治专家及业界从业者组成的顾问小组，在起草过程中听取其专业意见与观点。国家发展部亦于2018年12月就该守则咨询市镇理事会，并于2019年4月进行公众咨询。制定守则时已考虑这些咨询所得的反馈。 关于守则 守则的目标是： （a）通过分享建议的管治实践，提升市镇理事会的效能； （b）为市镇理事提供指导，协助其履行信托职责；以及 （c）提高市镇理事会运营的透明度，以建立公众信任与信心。 该守则以五项指导原则为基础，即诚信、客观、问责、公平与透明。这些指导原则支撑守则条文，条文涵盖四个领域：（a）理事会效能，（b）内部控制与流程，（c）财务管理，以及（d）供应商管理（详见附件）。守则条文列出鼓励市镇理事会采用的最佳实践，并通过“遵守或解释”制度落实。 在起草守则时，国家发展部已酌情参考《慈善与公共机构守则》及《企业管治守则》，并调整条文以切合市镇理事会独特的运营环境。国家发展部亦力求引入更稳健的管治标准，同时顾及合规成本以及各市镇理事会运营情况的差异。 为便利市镇理事会申报合规情况，国家发展部已发布《管治披露核对清单》供守则使用。市镇理事会必须使用该核对清单申报其对守则条文的遵守情况，并每年向国家发展部提交核对清单。若市镇理事会选择不遵守，或正在努力达成某些条文的合规，则须就其如何达至守则中的管治标准提供有意义的说明。 2020财政年度的首次申报须于2021年9月前提交。该申报将在国家发展部网站供公众查阅。国家发展部将与市镇理事会密切合作，协助其达至预期的管治标准。 1 理事会获委任成员中，至少三分之二必须是该市镇内建屋发展局（HDB）组屋区的居民。