Circumstances Leading to Discovery of Town Council Grant Disbursement Shortfall between FY2011 and FY2024

Ms He Ting Ru asked the Minister for National Development regarding the shortfall of Town Council grant disbursement calculations between FY2011 and FY2024 (a) what were the circumstances that led to the error being discovered; (b) what steps are in place to ensure that this does not occur again; and (c) what additional guidance will be given to Town Councils deciding whether to retrospectively adjust their financial and handover statements to reflect this.

Mr Chee Hong Tat: The Service and Conservancy Charges Operating Grant is an annual grant provided by the Ministry of National Development (MND) to Town Councils to help with the costs of estate maintenance, meet their operating needs and reduce residents' cost burden. The grant is disbursed annually for 4-room and smaller flats, with higher grants given for the smaller flat types.

The shortfall in the grant was discovered by the Housing and Development Board (HDB) during an internal review. The conversion of the reports from hardcopy to digital format in recent years has facilitated more comprehensive checks on the grant computation process, which led to the identification of the underpayments.

To prevent future discrepancies, HDB has strengthened the grant computation process by introducing additional checks to reconcile records and verify the accuracy of the grant amounts.

MND has advised Town Councils to consult their auditors on whether it is necessary to retrospectively adjust their financial and handover statements to reflect the underpayment of the grant. For instance, as the underpayments differ across Town Councils, their auditors will have advise whether, in their professional judgement, the amounts concerned are deemed to be material.