No. S 286
People’s Association Act
(Chapter 227)
People’s Association (Community Development Councils) (Amendment) Rules 2006
In exercise of the powers conferred by section 9 (a) and (b) of the People’s Association Act, the Board of Management of the People’s Association hereby makes the following Rules:
Citation and commencement
1.  These Rules may be cited as the People’s Association (Community Development Councils) (Amendment) Rules 2006 and shall come into operation on 31st May 2006.
Amendment of rule 2
2.  Rule 2 of the People’s Association (Community Development Councils) Rules (R 2) (referred to in these Rules as the principal Rules) is amended —
(a)by inserting, immediately after the definition of “Association”, the following definition:
“ “auditor”, in relation to a Council, means the Auditor-General or any auditor appointed under rule 23 for the Council;”; and
(b)by inserting, immediately after the definition of “member”, the following definition:
“ “Secretary-Treasurer”, in relation to a Council, means the Secretary-Treasurer of the Council;”.
Amendment of rule 5
3.  Rule 5 of the principal Rules is amended by inserting, immediately after paragraph (2), the following paragraphs:
(3)  Subject to paragraphs (4) and (5), the Board shall ordinarily appoint persons who are citizens of Singapore to be members of a Council.
(4)  The Board may, in special circumstances, appoint any person who is not a citizen of Singapore but who is a permanent resident of Singapore to be a member of a Council if the Board is of the opinion that that he is able to contribute significantly to the Council.
(5)  The number of permanent residents appointed as members of a Council shall not exceed 5 or 15% of the total maximum number of members for that Council as determined by the Board under paragraph (1)(b), whichever is the lower.”.
Amendment of rule 7
4.  Rule 7 of the principal Rules is amended by deleting paragraphs (3) to (7) and substituting the following paragraphs:
(3)  The Board shall appoint one member of a Council to be the General Manager of the Council; and the General Manager shall also be the Secretary-Treasurer of the Council.
(4)  The Secretary-Treasurer of a Council shall —
(a)receive all moneys given to the Council;
(b)maintain proper books of accounts;
(c) take charge of all records;
(d)arrange for banking facilities;
(e)present statements of accounts at meetings of the Council;
(f)conduct all correspondence;
(g)keep minutes of meetings;
(h)prepare the annual report; and
(i)generally perform all duties pertaining to his office.”.
Amendment of rule 13
5.  Rule 13 of the principal Rules is amended by deleting paragraph (a) and substituting the following paragraph:
(a)is neither a citizen of Singapore nor a permanent resident of Singapore;”.
Amendment of rule 20
6.  Rule 20 of the principal Rules is amended by deleting paragraph (1) and substituting the following paragraphs:
(1)  A Council shall comply with the financial rules set out in the Second Schedule and the People’s Association Staff Manual issued by the Association.
(1A)  In the event of any inconsistency between any provision of the People’s Association Staff Manual and a provision of the Second Schedule, the provision of the Second Schedule shall prevail.”.
Deletion and substitution of rule 23
7.  Rule 23 of the principal Rules is deleted and the following rule substituted therefor:
Accounts and audit
23.—(1)  The accounts of a Council shall be audited by the Auditor-General or by an auditor appointed annually by the Board in consultation with the Auditor-General.
(2)  As soon as the accounts of a Council have been audited under paragraph (1), a copy of the accounts signed jointly by the Chairman and Secretary-Treasurer of the Council and certified by the auditor shall be submitted to the Deputy Chairman of the Board.
(3)  The auditor may also perform an interim audit of the accounts and financial position of a Council at any time the Association considers necessary.”.
Deletion and substitution of First and Second Schedules
8.  The First and Second Schedules to the principal Rules are deleted and the following Schedules substituted therefor:
FIRST SCHEDULE
Rules 2 and 4
Districts
First column
 
Second column
Constituencies
 
Name of District
1. Constituencies of Hong Kah, Chua Chu Kang, Jurong and West Coast
 
South West
2. Constituencies of Holland-Bukit Timah, Bukit Panjang, Sembawang, Nee Soon Central and Nee Soon East
 
North West
3. Constituencies of Ang Mo Kio, Yio Chu Kang, Bishan-Toa Payoh, Jalan Besar and Tanjong Pagar
 
Central Singapore
4. Constituencies of Aljunied, Pasir Ris-Punggol, Tampines and Hougang
 
North East
5. Constituencies of East Coast, Marine Parade, Joo Chiat, MacPherson and Potong Pasir
 
South East.
SECOND SCHEDULE
Rule 20(1) and (1A)
Financial Rules

Part I

Receipts

Responsibility for custody and disposal of moneys and receipts
1.  Officers authorised by a Council to receive and collect moneys on behalf of the Council are responsible for the safe keeping and proper disposal of the moneys and the safe custody and proper use of all receipts and other documents for which payments are received.
Register and custody of stocks of receipt books
2.—(1)  The Secretary-Treasurer or any person appointed by him shall ensure that particulars of stocks of un-issued manuscript receipt books, serially numbered paper receipts and similar documents of value (referred to in this Schedule as receipt books) are recorded in a stock register, and that the stocks are kept in safe custody.
(2)  Any loss of any receipt book must be reported immediately to the Council, which shall then cause an investigation to be made and take steps to prevent their unauthorised use.
Defective receipt book
3.  Where any receipt book is found defective ––
(a)a notice to that effect shall immediately be recorded in the stock register referred to in rule 2(1) by the Secretary-Treasurer or person appointed by him under that rule; and
(b)the receipt book may, if the defect is not a serious one in the opinion of the Secretary-Treasurer or person appointed by him, be used thereafter subject to such further conditions as may be noted in the register.
Destruction of obsolete receipt books
4.—(1)  The approval of the Chairman shall be obtained before any stock of obsolete receipt books is destroyed.
(2)  The Secretary-Treasurer shall maintain a list of all obsolete receipt books in stock, giving such particulars of the receipt books as are sufficient to enable those books to be identified and stating the reasons why they are obsolete.
Petty cash float
5.  The Secretary-Treasurer may retain an amount not exceeding $2,000 as petty cash for which a Petty Cash Account shall be properly maintained and updated for the inspection of the Council.
Surplus funds
6.—(1)  A Council may invest its moneys not required for immediate use in accordance with the standard investment power of statutory bodies as defined in section 33A of the Interpretation Act (Cap. 1), and may request the Association to carry out such investment on its behalf.
(2)  The signatories for the investments shall be any 2 of the following persons:
(a)the Chairman;
(b)a Vice-Chairman;
(c)the Secretary-Treasurer; or
(d)any officer authorised by the Council.
Part II
Funds, Expenditure and Payment
Sources of funds
7.—(1)  The activities of a Council shall be financed by —
(a)grants from the Association;
(b)proceeds from fund-raising projects approved by the Association;
(c)public donations;
(d)revenues from its projects and services; and
(e)other sources approved by the Association.
(2)  A Council shall not borrow any moneys, whether by way of overdraft or otherwise, nor pledge or charge any of its assets.
Authority for expenditure
8.  A Council shall have the authority to incur expenditure for the following:
(a)promotion of activities of the Council and its sub-committees;
(b)projects and activities jointly organised with other Community Development Councils, the grassroots organisations of the Association or other groups approved by the Association;
(c)contributions to projects and activities organised by other Community Development Councils, the grassroots organisations of the Association or other groups approved by the Association;
(d)gifts or souvenirs as the gesture of the Council to any individual or organisation which has contributed in one way or another to the Council;
(e)general improvements, renovations and repairs of the facilities of the Council; and
(f)purchase of furniture, equipment and other assets for the Council.
Approval of Association for other expenditure
9.  Any expenditure for purposes other than those stated in rule 8 shall only be incurred by a Council with the prior approval in writing from the Association.
Approving authorities
10.  —(1)  Subject to rules 8 and 9 and the availability of a Council’s funds, the approving authorities for expenditures of the Council shall be as follows:
Approving Authority
 
Expenditure per item
(a) Chairman, People’s Association
 
Above $10 million
(b) Deputy Chairman, People’s Association
 
Up to $10 million
(c) Council
 
Up to $1 million
(d) Chairman of Council
 
Up to $500,000
(e) Vice-Chairman of Council
 
Up to $100,000
(f) Secretary-Treasurer of Council
 
Up to $30,000.
(2)  All items of expenditure approved under paragraph (1)(d), (e) and (f) shall be brought to the attention of the Council at its next meeting.
(3)  Where necessary for the efficient operation of a Council’s functions, delegation of authority by the Council may be effected and notified in writing to the Association.
(4)  A list of delegated officers, the scope of their authorities and their specimen signatures shall be maintained by the Council.
Estimates of revenue and expenditure
11.  The Secretary-Treasurer shall collate the requirements of the Council and its sub-committees and present, for approval at the meeting of the Council at least 2 months before the end of each financial year, the estimates of revenue and expenditure for the next financial year together with the supporting notes.
Signing of cheques
12.  Cheques drawn on a Council’s bank account shall be signed by any 2 of the following persons:
(a)the Chairman;
(b)a Vice-Chairman;
(c)the Secretary-Treasurer; or
(d)any officer authorised by the Council.
Cash balance discrepancy
13.  —(1)  Any cash balance shortfall discovered shall be reported to the Secretary-Treasurer who shall carry out an investigation to ascertain the cause of the shortfall and forward a report of such investigation to the Council, with a copy forwarded to the Association.
(2)  The officer or officers found to be responsible for the shortfall may be required to make good the loss.
Authority to write-off irrecoverable revenue, debt and overpayment
14.  —(1)  Any arrears of revenue of a Council, debt due to a Council, or overpayment by a Council reported as irrecoverable, where no negligence or fraud is involved, may be written off by the following person:
(a)if it does not exceed $5,000 — the Chairman;
(b)if it exceeds $5,000 — the Council.
(2)  At the end of each financial year, the details of the amounts so written off during the preceding 12 months shall be reported to the Council by the Secretary-Treasurer, with a copy of the report forwarded to the Association at the same time.
Liquidated damages and administrative charges
15.—(1)  Any liquidated damages or administrative charge imposed under a contract and payable to a Council may be waived or reduced by the following person:
(a)if it does not exceed $5,000 for any one case — the Chairman;
(b)if it exceeds $5,000 for any one case — the Council.
(2)  Any administrative charge imposed other than under a contract and payable to the Council may be waived or reduced by the following person:
(a)if it does not exceed $3,000 for any one case — the Chairman;
(b)if it exceeds $3,000 for any one case — the Council.
(3)  At the end of each financial year, the details of every case where any liquidated damages or administrative charge is waived or reduced shall be reported to the Council by the Secretary-Treasurer, with a copy of the report forwarded to the Association at the same time.
Part III
STATEMENTs OF ACCOUNTS
Certified statements of accounts
16.—(1)  The Secretary-Treasurer shall, at every meeting of the Council, present certified statements of accounts for the preceding months.
(2)  The certified statement shall include, if any, the accounts of the sub-committees of the Council.
Statement of income and expenditure
17.—(1)  The Secretary-Treasurer shall also present a statement of income and expenditure of a specific project at the meeting of the Council immediately upon the completion of that project.
(2)  If the Secretary-Treasurer is unable to complete this statement in time, the Council may, at its meeting immediately following the completion of the project, defer presentation of the statement to its next meeting but to no other meeting.
Filing of statements of income and expenditure
18.—(1)  All statements of income and expenditure and accounting records of a Council shall be properly filed and maintained by the Secretary-Treasurer.
(2)  The Secretary-Treasurer shall also maintain a cash book for the Council.
(3)  The Secretary-Treasurer shall submit these statements, accounting records and cash book for inspection by the Association as and when required.
Part IV
Inventory and Assets
Authority to delete assets from inventories
19.—(1)  Subject to rules 20, 21 and 22, the authority of a Council is required for the deletion of items of stock from inventories of plant, machinery, fixtures and other assets in the event of their ceasing to be in stock.
(2)  Where such items were disposed of by sale duly authorised by the Council, they may be deleted without obtaining such authority.
Write-off of asset
20.—(1)  The authority of a Council to write-off any asset that is unserviceable, obsolete, uneconomical to repair or redundant, is as follows:
(a)if its value does not exceed $1,000 — the Secretary-Treasurer;
(b)if its value does not exceed $3,000 — the Chairman;
(c)if its value exceeds $3,000 — the Council.
(2)  Paragraph (1) is inapplicable if negligence or fraud is involved.
Loss of assets
21.  As soon as any loss of money, inventory items or other assets is discovered, a Council shall make a police report and submit a report to the Association which shall cause an inquiry to be conducted if necessary.
Treatment of loss of assets
22.—(1)  Where no negligence or fraud is involved in the loss referred to in rule 21, the amount lost may be written off with the approval of the following person:
(a)if the amount does not exceed $1,000 — the Secretary-Treasurer;
(b)if the amount does not exceed $3,000 — the Chairman;
(c)if the amount exceeds $3,000 — the Council.
(2)  If an asset other than money is lost, the asset shall be deleted from the inventory after the appropriate approval under paragraph (1) has been obtained.
Part V
Miscellaneous
Power of auditor to require person to furnish information
23.  The auditor of a Council may require any person to furnish him with such information in the possession of that person or to which that person has access as the auditor considers necessary for the purpose of his functions as such auditor, and that person shall comply with such requirement.
Access to Secretary-Treasurer and Chairman by auditor
24.  In the discharge of his official duties, the auditor shall be given direct access to the Secretary-Treasurer and the Chairman of a Council.
Documents for audit
25.  Every officer appointed by a Council to collect revenue shall be responsible for ensuring that all books, accounts and vouchers relating to the financial transaction of his office are afforded safe custody at all times and are produced to the auditor whenever required.
Sub-committee
26.—(1)  A sub-committee of a Council shall not maintain its own bank account.
(2)  All income and expenditure of a sub-committee of a Council shall be credited to or debited against the bank accounts of the Council.”.
[G.N. Nos. S 321/2000; S 474/2000; S 515/2000; S 576/2001; S 58/2002]

Made this 31st day of May 2006.

WONG KAN SENG
Deputy Chairman,
Board of Management,
People’s Association,
Singapore.
[PA/D/25/63 Pt A Vol. 10; AG/LEG/SL/227/2002/1 Vol. 2]