# Town Councils' FY2020 Financial Statements and Governance Declarations

- **Source:** Ministry of National Development
- **Published:** 2022-02-22T04:00:00.000Z
- **Author:** Ministry of National Development
- **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/town-councils-fy2020-financial-statements-and-governance-declarations
- **Topics:** Market Updates

## Featured rationale

The revised severity-based governance assessment from FY2021 could improve oversight of estate management and potentially strengthen residents’ confidence in public-housing administration.

## AI summary

All 17 Town Councils received unqualified FY2020 financial statements, although the FY2020 Town Council Management Report assessment was suspended.

## Original article

Presentation of Town Councils’ FY2020 Financial Statements to Parliament

The Ministry of National Development (MND) has presented the FY2020 audited financial statements of the 17 Town Councils (TCs) to Parliament and the TCs will be publishing them on their websites. 

2. All TCs had unqualified financial statements for FY2020.

3. In view of the Phase 2 (Heightened Alert) period in 2021, MND had granted the TCs a 1-month extension of the deadline for the submission of their audited financial statements and Governance Checklists, from 30 Sep 2021 to 31 Oct 2021. 

Town Council Management Report (TCMR)

4. MND earlier announced that the FY2020 TCMR assessment for TCs was suspended for the period April 2020 to March 2021 and there will not be a report published for this period. MND will publish the next TCMR for FY2021 (for the period April 2021 to March 2022) in two reports, specifically a report on TCs’ performance for the operational indicators (Estate Cleanliness, Estate Maintenance, Lift Performance and S&CC Arrears Management) in May/June 2022, and a report reflecting TCs’ performance in regulatory compliance and financial reporting through the Corporate Governance (CG) indicator in November/ December 2022.

5. From FY2021, the methodology to assess TCs’ performance under the CG indicator will be revised to consider the severity of the observations , rather than just the number of observations. This will allow the CG indicator to provide a better reflection of TCs’ overall state of governance. For instance, an observation which constitutes an offence under the TCs Act will be considered high severity while a first-time administrative oversight that has been rectified will be considered low severity. Observations will be assigned points based on severity levels, and the TCs’ banding will be based on the total number of points they accumulate. 

TCs’ Governance Declarations

6. While there was no TCMR assessment for FY2020, TCs were still required to submit their declaration of compliance with the regulatory requirements using the revised CG Checklist. The scope of the Checklist has been enhanced as part of the CG revisions, to include the new requirements from the 2017 TCs Act amendments. 

7. FY2020 was also the first year where TCs made their declaration of compliance with the Code of Governance for TCs (“Code”) using the Governance Disclosure (GD) Checklist. The Code was launched in June 2019 and took effect from April 2020. It sets out the principles of good governance in four domains: (a) Council Effectiveness, (b) Internal Controls & Processes, (c) Financial Management and (d) Vendor Management. The Code complements the legislation which sets out the minimum standard of governance that the TCs are expected to comply with. Most of the Code provisions go beyond the legislative requirements and cover best practices that will guide TCs to achieve a higher level of governance over time. TCs are encouraged to adopt these best practices through a comply-or-explain regime. 

8. TCs’ FY2020 CG and GD Checklists can be viewed on MND’s website. 

Enquiries 

9. Members of the public can refer to the TCs’ FY2020 financial statements on the respective TCs’ websites. TCs’ governance declarations can be found on www.mnd.gov.sg/towncouncils.

## Chinese translation

> Translation model: grok_cli

### 市镇理事会2020财政年度财务报表及管治声明

向国会提呈市镇理事会2020财政年度财务报表

国家发展部（MND）已向国会提呈17个市镇理事会（TCs）2020财政年度经审计财务报表，各市镇理事会将在其网站上公布这些报表。

2. 所有市镇理事会2020财政年度的财务报表均获无保留意见。

3. 鉴于2021年第二阶段（加强警戒）时期，国家发展部已批准各市镇理事会将其经审计财务报表及管治核对清单的提呈期限延长1个月，由2021年9月30日延至2021年10月31日。

市镇理事会管理报告（TCMR）

4. 国家发展部较早前宣布，2020财政年度市镇理事会管理报告评估在2020年4月至2021年3月期间暂停，该期间不会发表报告。国家发展部将以两份报告发表2021财政年度（2021年4月至2022年3月）的下一份市镇理事会管理报告，具体为：关于市镇理事会运营指标表现（组屋区清洁、组屋区维修保养、电梯表现及杂费欠款管理）的报告，将于2022年5月/6月发表；以及通过企业管治（CG）指标反映市镇理事会在监管合规及财务报告方面表现的报告，将于2022年11月/12月发表。

5. 自2021财政年度起，评估市镇理事会在企业管治指标下表现的方法将予修订，以考虑观察事项的严重程度，而非仅计算观察事项数量。这将使企业管治指标更能反映市镇理事会的整体管治状况。例如，构成《市镇理事会法令》下罪行的观察事项将被视为高严重程度，而首次出现、且已纠正的行政疏漏将被视为低严重程度。观察事项将按严重程度级别计分，市镇理事会的评级将基于其累计总分。

市镇理事会的管治声明

6. 尽管2020财政年度没有市镇理事会管理报告评估，各市镇理事会仍须使用经修订的企业管治核对清单，提交其符合监管要求的声明。作为企业管治修订的一部分，该核对清单的范围已获加强，以纳入2017年《市镇理事会法令》修订后的新要求。

7. 2020财政年度也是各市镇理事会首次使用管治披露（GD）核对清单，就其遵守《市镇理事会管治守则》（“守则”）作出声明的一年。该守则于2019年6月推出，自2020年4月起生效。它订立了四个领域的良好管治原则：（a）理事会效能、（b）内部管控与流程、（c）财务管理，以及（d）供应商管理。该守则补充了订明市镇理事会应遵守的最低管治标准的法例。守则中的大多数条文超越法例要求，涵盖引导市镇理事会随时间达致更高管治水平的最佳做法。鼓励市镇理事会通过“遵守或解释”制度采纳这些最佳做法。

8. 各市镇理事会2020财政年度的企业管治及管治披露核对清单可在国家发展部网站查阅。

查询

9. 公众可在各市镇理事会网站查阅其2020财政年度财务报表。市镇理事会的管治声明可在www.mnd.gov.sg/towncouncils查阅。