EXPENDITURE AND PAYMENTS
—(1) No expenditure shall be incurred unless the expenditure is covered by a sub-head in a budget and a sufficient balance is available under the sub-head.
(2) Notwithstanding the absence of such provisions, a Town Council may pay —
sums deposited by contractors or deposited by or deducted from other persons whenever by the conditions of the deposit or deduction such sum has become repayable or payable;
sums collected and credited to the funds of the Town Council in error;
sums payable by the Town Council under any award of the Collector of Revenue, or under any of the provisions of the Act, or under any judgment or order of any court; and
any expenditure incurred to secure the proper execution of the functions and duties of the Town Council under the Act which in the opinion of the chairman cannot be postponed except that the chairman shall report such payment forthwith to the Town Council.
—(1) Instructions to banks relating to changes of authorised cheque signatories and variation of any other authority shall be signed by the secretary and countersigned by the chairman.
(2) Authorised cheque signatories are as follows:
cheques not exceeding $50,000 or such lesser amount as authorised by the Town Council from time to time
Secretary and an officer authorised by the Town Council
all other cheques
Chairman or vice-chairman and secretary or an officer authorised by the Town Council.
(3) A Town Council may use any mode of payment other than cheques to effect payments, and instructions pertaining to such mode shall be authorised by the stipulated cheque signatories.
—(1) Authority to incur expenditure for any one item shall be as follows:
not exceeding $10,000
Officer or Committee authorised by the chairman
not exceeding $100,000
(2) To determine the authority to approve the expenditure, the financial limits are to be applied to —
the value of any single item of stores, services or works to be awarded; and
the total value, inclusive of variation orders, of the stores, services or works to be awarded to any one contractor.
(3) Where necessary for the efficient operation of a Town Council’s functions, delegation of authority by the Town Council may be effected and notified in writing to the secretary and the auditor.
(4) A list of delegated officers, the scope of their authorities and their specimen signatures shall be maintained by a Town Council.
(5) Paragraph (1) shall not apply to refunds and payments made under rule 31(2)(a) and (b) or continuing expenditure to which the Town Council is already committed, such as workmen’s compensation, hospital and medical charges, loan charges, property tax, hire of police guards, escorts and security measures, postages, public utility charges, telegrams and telephones, publications in the Gazette, and purchase under approved term contracts (other than maintenance term contracts) at specified unit rates.
(6) Where appropriate in the cases mentioned in paragraph (5) and subject to funds being available within the approved budget, the secretary or any authorised Committee or officer shall authorise the expenditure and certify the bills for payment.
(7) Notwithstanding the financial authority to incur expenditure under paragraph (1), policies and guidelines issued by the Town Council from time to time on restricted expenditure items, such as entertainment, office furniture and equipment and overseas travel, shall be observed.
(8) For the purpose of delegating financial authority pursuant to paragraph (3), the secretary is required to observe the following guidelines in submitting proposals to the Town Council for approval:
the maximum limit of delegation for any one item shall be $5,000;
only a minimum number of delegated officers or Committees may be appointed so as to ensure proper control over expenditure;
delegation must be clearly defined to indicate the expenditure accounts applicable to each delegated officer or Committee; and
where exceptional circumstances warrant it, deviations from the above guidelines may be permitted with the approval of the Town Council.
—(1) Notwithstanding rule 34(1) but subject to rule 31(2)(d), the chairman and an officer authorised by him may, in circumstances of emergency as defined in paragraph (2), sanction the commitment of any one item of expenditure not exceeding $200,000 and $50,000, respectively, subject to a report being made as soon as possible to the Town Council or chairman, as the case may be, for covering approval.
(2) Circumstances of emergency are defined as those that are likely to cause —
injury to human life;
serious damage to property; or
serious jeopardy to the operations of the Town Council.
(3) Wherever possible, verbal approval of the chairman shall be obtained before the commitment is made.
(4) In seeking the written covering approval of the chairman or Town Council, the report should include full details of the circumstances.
(5) The approval referred to in paragraph (4) shall be obtained before any payment is effected.
36. On the appointment of any employee, the secretary shall send all necessary information concerning the terms and conditions of the appointment to —
the Central Provident Fund Board;
the Comptroller of Income Tax (where applicable); and
any other parties that may be interested.
37. On the resignation of any employee, the secretary shall send the appropriate information to the parties listed in rule 36 and any other interested parties.
38. Normally all advices to the secretary affecting pay sheets for the month should reach him not later than the dates and times indicated in the pay programmes circulated each half year.
—(1) The secretary shall discharge as soon as possible all moneys due to any employee who has resigned.
(2) The secretary shall retain any amounts due or which may be due subject to any clarification in connection with any provident fund, income tax, moneys due to the Town Council, or any other matter.
(3) The secretary may make such temporary adjustments as may be necessary pending final clearance.
—(1) Detailed wage sheets for daily-rated employees wages shall be drawn up from the daily-rated employees attendance records maintained in the department requisitioning the payment.
(2) The wage sheets shall be on the proper form and the officer delegated under rule 34(3) shall certify the correctness of the wage sheets of his department in accordance with rule 34(6).
(3) The certified wage sheets must reach the secretary by the dates and times indicated in the programme issued in advance to Departments.
—(1) Salaries of monthly-rated staff shall be paid on the dates and times as shown in the schedule issued by the secretary.
(2) The secretary or the officer delegated under rule 34(3) shall confirm that the officers listed on the salary sheets are in the service of the Town Council for the pay period.
(3) The secretary may agree to pay any officer who, due to special circumstances, applies for his salary to be paid earlier than the scheduled date or time, except that it shall not be earlier than the pay day of the immediately preceding pay period.
(4) All salaries shall be paid direct to the bank account of the officer concerned.
42. A Town Council shall not make an advance or loan to any member, officer or employee of the Town Council other than for loans or advances given under any employees’ loans schemes approved by the Town Council.
43. Repayments on the loans shall be credited into the respective revolving loan funds, and interest and other income shall be credited to revenue income.
44. A Town Council shall set out the terms and conditions under which a loan may be granted, the procedure for applying for and approving a loan and the procedure for paying and recovering a loan under each of the loan scheme which may be changed from time to time.
45. The terms and conditions for any loan scheme shall include the following:
the persons eligible to apply;
the amount of loan an officer is eligible for based on his gross salary subject to a maximum amount;
the frequency an officer can apply for the same type of loan;
the maximum repayment period allowed and the minimum instalment repayment amount;
whether interest is payable and the rate of interest;
whether sureties are required and, if so, the qualifications of sureties; and
the loan agreement to be entered into.
46. The authority to approve loans shall be the same as the authority to incur expenditure under rule 34 except that a loan can be approved only if there are funds.
47. The repayment of the loan shall commence in the month following the disbursement of the loan and shall be by monthly instalments which shall be recovered from the officer’s salary.
48. Before releasing the loan, the secretary shall ensure that the loan will be used for the purpose for which the loan has been approved.
49. In considering the loan application, the loan shall not be approved if an officer’s instalment payment to redeem his loan commitments or debts, including the proposed loan, is more than 50% of his monthly gross pay unless the Town Council is satisfied that the officer is able to afford these deductions.
50. A loan account has to be maintained for each loan given showing, for each month —
the amount of loan (principal) outstanding at the beginning of the month;
the interest due for the month;
the total amount recovered for the month; and
the amount of loan (principal) outstanding at the end of the month.
—(1) The secretary shall ensure that proper accounts are kept of all loans given, showing the total amount of loans approved, the total loans outstanding and the balance in the provision for each of the revolving loan funds.
(2) The secretary shall ensure that such control accounts are reconciled each month with the individual loan account kept under rule 50.
52. The secretary shall take steps to recover all outstanding loans from employees who are leaving the Town Council.
—(1) A Town Council shall not disburse any moneys from any sinking fund otherwise than for the purposes of meeting actual expenses or liabilities properly attributable to that sinking fund.
(2) Notwithstanding the provision of such expenditure in the approved list of works, the secretary shall submit his proposal to the Town Council for approval before any commitment to be met from a sinking fund can be authorised or entered into.
54. Heads of Departments shall be responsible for the accuracy of accounts, vouchers and statements rendered by them or under their authority.
—(1) Except in the case of individual minor purchases not exceeding $500 each or such amounts as authorised by the Town Council, all goods or services required shall be ordered through official order forms, and bills or vouchers passed for payment must be supported by a copy of the relevant order.
(2) Urgent orders placed verbally shall be confirmed on the official order form immediately after the verbal instructions have been given.
—(1) Any officer allowing or directing any disbursement without proper authority shall be responsible for the amount.
(2) In the event of any wrongful payment being made in consequence of an incorrect certification on a voucher, the certifying officer shall be responsible for the wrongful payment.
(3) The Head of Department or his authorised representative shall certify as to the accuracy of every detail on the voucher.
(4) It is the responsibility of the Head of Department to satisfy himself that —
the services specified have been duly performed;
the goods purchased have been properly held or applied for the purpose intended;
the prices charged are either according to contracts or approved scales, or fair and reasonable according to current local rates;
authority has been obtained as quoted, and the computations and castings have been verified and are arithmetically correct; and
the persons named in the vouchers are those entitled to receive payment.
—(1) The secretary shall ensure that all bills are received not later than the month following that in which the articles are purchased or service performed and that they are promptly checked and, if in order, processed for payment.
(2) All officers’ claims for transport and other reimbursements must be submitted in the month following that in which the expenditure was incurred.
—(1) Each voucher shall contain full particulars of each purchase or service, including dates, numbers, quantities, distances and rates, so as to be comprehensive without reference to any document other than those attached thereto.
(2) The total of all vouchers shall be written in words as well as in figures.
(3) Where the voucher relates to the purchase of an item required to be recorded in inventory, the asset number is to be entered on the payment voucher before it is forwarded to the Finance Department for payment.
(4) Where an item of expenditure normally chargeable to a certain vote is for some reason to be charged to another, an explanatory note shall be added.
—(1) The name of the payee shall be stated in the voucher.
(2) Vouchers shall not be made in favour of more than one person or firm except where more than one person or firm are parties to a contract or to one transaction.
(3) In all cases of goods purchased through a tradesman or services rendered by an individual, his name must appear on the voucher as the person who actually performed the service or to whom payment is due.
(4) Where the payee is an individual, the identity card number shall be shown on the voucher.
(5) Where the identity card number is not available, the address shall be stated.
—(1) When payments are to be made to persons other than those named in the voucher, or to the agents of officers absent on leave, the authorities under which the payments are to be made (excluding powers of attorney or letters of administration) must be in writing or on a standard form drawn up by the secretary for uniform practice in this matter and duly noted in the Finance Department.
(2) The appointment of the new payee shall be noted on each voucher concerned, and this shall be signed by the secretary or his authorised representative.
—(1) When supplies are furnished or when work is done under an agreement, there shall be a certification on the voucher that the payments are in accordance with the terms of the agreement, and that, as regards supplies not for immediate use, the articles have been received and duly recorded in the proper inventory and, in the case of work, that it has been properly done.
(2) In the case of a payment on account, no more shall be paid than the cost of the work certified to have been performed or the amount claimed by the contractor, whichever is the lesser.
(3) When a deduction is made from the amount payable on a contract in respect of a penalty or fine, or other retained item, the net sum only shall be paid.
63. Funds held under the imprest are not to be used for private purposes, or for any purpose other than that for which the imprest is intended.
—(1) Change floats of fixed amounts may be held by the banking cashier with the approval of the chairman or an officer authorised by him.
(2) The banking cashier shall provide a book to record each day the amounts issued to other cashiers and amounts returned to the floats.
(3) The cashier shall sign for amounts received from the floats and the banking cashier shall sign for amounts returned to the floats.
—(1) Vouchers duly passed for payment by the secretary or his authorised representative are to be obtained for all payments made by the cashier whether from the imprest money, or money drawn for any other proper payments in cash, and upon payment an acknowledgment by the payee shall be obtained.
(2) Where cash is advanced on the authority of the chairman or an officer authorised by him for expenditure to be supported by receipted bills submitted later, the voucher shall indicate the nature of the proposed expenditure.
(3) Where possible properly receipted bills must support petty cash payments.
66. Imprests shall be kept down to minimum requirements and recoupments applied for on an average of once fortnightly.
68. When replenishment of an imprest is necessary, vouchers for all payments, supported by an imprest cash reimbursement form which should be serially numbered, shall be submitted to the Finance Department.
70. All cheque books shall be locked up at the close of business each day by the officer appointed by the secretary.
—(1) Subject to this rule, all cheques shall be crossed.
(2) Where the payee requests for payment in cash or by uncrossed cheque, the cashier responsible for payment shall, by reference to the payee’s identity card, the number of which he shall note on the voucher, satisfy himself as to the identity of the payee.
(3) In all cases of payment by cash or uncrossed cheque, a responsible officer appointed by the secretary shall witness the payment and, at the same time, verify by actual sighting of the identity card the particulars of the payee’s identity card with that on the payment voucher.
(4) The responsible officer under paragraph (3) shall endorse the payment voucher to the effect that he had made such verification.
72. If it is not possible to distribute within 14 days the whole of any money drawn for the purpose of meeting cash payments, the amount remaining undistributed shall be repaid into the bank.
—(1) Quotations in writing shall be invited for any single item of stores, services or works estimated to cost not more than $70,000.
(1A) A tender need not be invited if quotations are invited for any single item of stores, services or works estimated to cost not more than $70,000, and the quotations obtained exceed $70,000 but do not exceed $80,000.
(2) Notwithstanding paragraph (1) and subject to rule 74(4), quotations may be obtained by telephone or orally where —
the stores, services or works are estimated to cost not more than $3,000; and
a written note of the particulars of the suppliers and the date of each of the quotations is made and certified by the officer authorised to accept the quotations.
(3) Where quotations are called, at least 3 firms shall be invited to quote.
(3A) Such quotations may be accepted on a Town Council’s behalf by officers authorised by the Town Council to incur expenditure or any committee appointed by the Town Council for such purpose but only within the limits of their financial authority under rule 34(1).
(4) Subject to paragraph (5), the lowest priced quotation for the item of acceptable quality from a firm that fully or very substantially meets the specifications and requirements shall be accepted to the exclusion of the other quotations.
(5) The Town Council or the chairman may, within the limits of their financial authority under rule 34(1), accept a quotation which is not the lowest quotation that fully or very substantially meets the specifications and requirements, except that the circumstances or reasons for not accepting the lowest quotation must be fully justified and shall be recorded and open to scrutiny by the auditor.
(6) All quotations accepted by such a committee or authorised officers shall be circulated to the Town Council for information.
(7) Where the amount of the quotation is not expected to exceed $5,000, the firms invited to quote may be asked to send their quotations direct to the Department concerned.
(8) All other quotations shall be placed in the quotation box.
(9) Quotations shall be opened by an officer other than the officer authorised to approve the expenditure involved in the presence of a witnessing officer appointed by the secretary.
(10) In seeking such quotations, Heads of Departments shall send a carbon copy of their invitation, or a list of the firms verbally invited to quote, to the secretary so that he may arrange for the opening of the quotations on the due date and time.
(11) Notwithstanding paragraph (1), stores, services or works estimated to cost not more than $3,000 in any one case may be incurred by the chairman or an officer authorised by him without inviting quotations in the first instance if and only if —
the goods or services are urgently required; or
the cost of inviting quotations exceeds the saving which may be derived from having competing quotations.
(12) Quotations may be waived by the chairman where —
the supply of goods or services is known to be only within the capacity of a sole agent or a specialist contractor;
the urgency of the requirement makes it necessary; or
it is manifestly necessary in the public interest to do so.
(13) Waiver of quotations under paragraph (12)(b) or (c) shall only be used under very special circumstances and must be fully justified.
(14) The submission to the chairman for waiver under paragraph (12), and the circumstances and justification for granting any such waiver, shall be recorded and made available to the auditor for inspection and audit.
—(1) Unless waived under paragraph (17), tenders shall be invited for the execution of works or for any single item of stores or services estimated to cost more than $70,000.
(2) [Deleted by S 179/99 wef 15/04/1999]
(3) The invitation to tender shall be advertised in the local or international trade press, or by electronic means.
(4) Tenders shall be called for all stores, services or works to be supplied or carried out over a period except that quotations in writing shall be invited if the value of the stores, services or works is estimated to be less than $70,000.
(5) The advertisement required under paragraph (3) should be brief, giving the minimum information necessary for the tenderers to know what stores, services or works are required, the period of the contract and whether the issue of tender is restricted to tenderers registered with the Building and Construction Authority or the Expenditure and Procurement Policies Unit of the Ministry of Finance.
(6) Subject to paragraph (7), the minimum period of tender notice shall not be less than —
in the case of contracts which are advertised locally — 3 weeks for conventional contracts and 8 weeks for design and build contracts; or
in the case of contracts which are advertised both locally and overseas — 12 weeks.
(7) Notwithstanding paragraph (6), the chairman or his authorised officer may approve a shorter period of tender notice and the reasons for the shorter period shall be recorded and disclosed to the Town Council.
(8) The chairman or his authorised officer may approve an extension of the period of tender notice if, before the close of the tender, 2 or more requests for extension are received by the Town Council.
(9) An alternative offer may be allowed if —
it is specifically provided for in the tender documents;
the price quoted shall be as at the time of tender; and
the tenderer also submits a main offer which will be evaluated before the alternative offer.
(10) The alternative offer submitted under paragraph (9) may be accepted only if it fulfils all functional requirements and the cost is lower than the main offer.
(11) When it is necessary to prequalify the contractors, an open tender shall be called for prequalification exercise.
(12) No preselection of firms shall be allowed, unless prior approval of the Town Council has been obtained on a case-by-case basis.
(13) Tenders received shall be placed before the Town Council, the chairman, or any committee appointed by the Town Council for the purpose, who shall, except as provided under paragraph (15), accept the lowest tender meeting specifications within their respective financial authority under rule 34(1).
(14) All tenders accepted by a committee shall be circulated to the Town Council for information.
(15) The Town Council or the chairman, within the financial limit authorised by the Town Council, may for reasons to be disclosed with the acceptance, accept a tender which is not the lowest tender.
(16) The circumstances and reasons for not accepting the lowest tender which meets the specifications fully or very substantially must be fully justified and shall be recorded and open to scrutiny by the auditor.
(17) Tenders may be waived by the Town Council or the chairman as authorised within the limits of his financial authority to incur expenditure where —
the supply of goods or services is known to be only within the capacity of a sole agent or a specialist contractor;
the urgency of the requirement makes it necessary; or
it is manifestly necessary in the public interest to do so.
(18) Waiver of tenders under paragraph (17)(b) or (c) shall only be used under very special circumstances and must be fully justified.
(19) The submission to the Town Council or the chairman for accepting a tender which is not the lowest tender under paragraph (15) or for waiver under paragraph (17), and the circumstances and justification for accepting any such tender or granting any such waiver, shall be recorded and made available to the auditor for inspection and audit.
(19A) No person making any submission for accepting a tender which is not the lowest tender under paragraph (15) or for waiver under paragraph (17) shall have any interest in the supplier of the stores, services or works in respect of which the acceptance of such tender or the waiver is sought.
(20) The successful tenderer for the execution of work or the supply of goods or services shall be required to comply with such conditions as the approving authority may from time to time stipulate with regard to security deposits, bankers’ guarantees, insurance and guarantors before entering into a contract with the Town Council.
—(1) Rules 73 and 74 shall not apply to the following:
subscriptions for local or overseas journals, magazines and periodicals;
supply of utility services by the Public Utilities Board or any other utility service provider licensed or otherwise regulated by the Public Utilities Board or the Energy Market Authority of Singapore;
supply of telecommunications services by any telecommunication service provider licensed by the Info-communications Development Authority of Singapore; and
repeat orders on approved tenders and quotations which are less than 3 months old provided the officer approving the order is satisfied that no financial advantage will be gained by calling fresh quotations or tenders and the value of the repeat order is not more than 30% of the original contract sum.
(2) For the purposes of paragraph (1)(c), the period of 3 months specified therein shall run from the date the first purchase order was raised or, in the case of period contracts, the date the contract expired.
—(1) Tender specifications prepared by a managing agent of a Town Council shall —
as far as practicable, be drafted so as not to give preference to any tenderer and bear a declaration by the managing agent that the specifications do not give preference to any particular tenderer; and
be approved by a Tender Committee comprising members of the Town Council.
(2) Where tender specifications prepared by a managing agent unavoidably specify the use of services of, or acquisition of stores from, any particular supplier, the tender specifications shall state that equivalent alternatives may also be offered by tenderers.
(3) A managing agent of a Town Council shall not be disqualified from submitting a tender in response to an invitation to tender for the execution of works or the supply of stores or services to the Town Council if —
before the close of the tender, the managing agent declares its interest to the Town Council, chairman or committee having the authority under rule 74(13) to accept the tender;
the Tender Opening Committee in respect of the tender exercise does not comprise any officer or employee of the managing agent;
the witnessing officer of the Tender Opening Committee is a member of the Town Council; and
the managing agent does not participate in the evaluation of the tenders received in response to the invitation.
(4) Where a Town Council or chairman intends to waive quotations or tenders pursuant to rule 73(14) or 74(17) and as a result the managing agent of the Town Council will be the sole supplier of the stores, services or works to the Town Council, such waiver shall not be permissible unless —
the specifications of the stores, services or works have been approved by a committee comprising members of the Town Council; and
the managing agent does not participate in the evaluation and recommendation for such waiver.
77. The following details of tenders and quotations shall be recorded in a register before they are deposited into the tender or quotation box:
name of tenderer or supplier quoting;
job or supplies tendered or quoted for; and
when received and when placed into the box.
—(1) Tenders shall be opened by a Tender Opening Committee only.
(2) The Tender Opening Committee shall consist of an officer authorised by the secretary and a witnessing officer.
(3) [Deleted by S 179/99 wef 15/04/1999]
(4) The secretary shall appoint a witnessing officer whose normal duties are not directly concerned with the stores, works or services in the tender.
(5) The officer authorised to open tenders shall prepare a schedule of tenders showing —
the tenderer’s name;
the item number as given in the invitation to tender;
the price and where appropriate the tenderer’s terms of delivery; and
the total number of tenders received.
(6) The officers required to be present at tender opening shall initial the tender documents entered on the schedule of tenders, as well as the schedule itself.
(7) All tender prices shall be posted on the notice board immediately after opening of tenders (except for confidential projects or on security grounds).
(8) The notice shall contain the names of all the tenderers and their offers.
(9) After the tenders are evaluated, award or rejections of tenders shall be posted.
(10) In the case of awards, only the name of the successful tenderer and the tender price need be given.
(11) [Deleted by S 637/2007 wef 1/12/2007]
80. Tenders received after the appointed closing time and date shall be dealt with in the following manner:
if received through the post — after details regarding sender, job or supplies tendered for and time received have been noted both on the tender and in the tenders register, the late tender shall be returned by registered post;
if received by hand — after details regarding sender, job or supplies tendered for and time received have been noted both on the tender and in the tenders register, the late tender shall be handed back to the messenger, who shall sign the register in acknowledgment.
—(1) The tenders received together with the schedule shall be forwarded under sealed confidential cover to the appropriate officer whose recommendations in respect of the tenders are required.
(2) The officer is expected to satisfy himself that the recommended tenderer is competent and able to perform the work concerned.
(3) Except as provided for in rule 74(15), the lowest offer that fully or very substantially meets the specifications and requirements shall be accepted.
(4) Tenders shall be awarded without undue delay, but in any case within a specified period not exceeding 6 months.
(5) Negotiations with tenderers should not normally be resorted to except with the approval of the chairman and under the following conditions:
negotiation shall be permitted only with the recommended tenderer and only on financial terms and special contract conditions;
the negotiation team shall consist of not less than 3 members authorised by the chairman; and
records of the actual negotiations, meetings and discussions are maintained and such records shall be subject to inspection and audit.
(5A) For the purposes of paragraph (5)(a) —
financial terms refer to such terms as payment arrangements and the amount of security deposit, but does not include the tender price; and
special contract conditions refer to requirements governing delivery, installation, maintenance, warranties and other related matters.
(6) For works, period quotations and contracts, there shall be a written agreement before the works or supply of services begin.
82. Where deposits are required from tenderer and such deposits are forfeitable in the event of the tender being withdrawn after opening but before award, or failure to comply with a condition of the contract, the secretary on such an event taking place, may declare the deposit to be forfeited and shall so report to the chairman.
83. Contractors may be required to furnish guarantors for specific contracts or generally.
84. Except where the prior approval has been obtained for supplementary provisions, no tender may be accepted for an amount which, together with expenditure already incurred and liabilities foreseen, will cause the financial provision voted to be exceeded.
85. Bids for rights offered by a Town Council in respect of goods to be sold, or in respect of demolition of premises and removal of salvage or otherwise where the bidder must pay the Town Council for the award of such rights, shall be treated for procedural purposes (invitation, receipt, opening and award) in the same manner as for tenders or quotations.
—(1) The execution of contracts, agreements and instruments of any description shall be signed by the chairman or an officer authorised by the Town Council on their behalf, and such signing shall be sufficient evidence that the documents have been duly executed by the Town Council.
—(1) A Town Council shall not, in the absence of special reason approved by the chairman of the Town Council, award any contract to a person who has been debarred by the Government from participating in the same or all types of contracts.
(2) The special reasons referred to in paragraph (1) shall be recorded in writing and shall be made available to the auditors.
(3) An invitation for quotations or for tenders by a Town Council shall contain a statement that no contract shall, in the absence of special reason, be awarded to a contractor if the contractor or any of its directors or employees has been debarred by the Government from participating in the same or all types of contracts.
—(1) Provisions for variation works in contracts may be provided in the form of a contingency sum.
(2) A contingency sum shall form part of the maximum approved sum of expenditure on the project or procurement, but shall not be included in the contract.
(3) A contingency sum shall not exceed —
20% for civil engineering works;
10% for building works; and
5% for large complex equipment contracts.
—(1) The Head of Department is expected to control the expenditure under his charge in respect of any sub-head provided in the estimates so that the approved provisions will not be exceeded.
(2) The Head of Department shall be responsible for any excess expenditure incurred without proper authority.
(3) The secretary shall maintain accounts for each sub-head and vote, showing actual spending and budget balance of each expense item for all activities.
(4) Monthly statements of these accounts are to be rendered to the Heads of Departments responsible for the respective accounts, who shall upon receipt reconcile these with their own records and notify the secretary of any discrepancy immediately.
—(1) Authority to invest funds which are not required by a Town Council for immediate use shall be as follows:
placement of fixed deposits in Singapore currency with approved banks:
not exceeding $1 million per deposit for duration of not more than 6 months
Officer or Committee authorised by a Town Council
not exceeding $5 million per deposit for duration of not more than one year
any other amounts for any duration
Town Council; and
any other form of investment as specified in the First Schedule:
not exceeding $500,000 per investment
Officer or Committee authorised by a Town Council
not exceeding an amount equal to 50% of the available funds comprising accumulated surpluses and the sinking fund (based on the latest audited accounts) or $5 million, whichever is the lower, per investment
any other amount
(2) Interest and investment income received shall be credited back to the respective funds from which the principal or capital amounts originated.
(3) Officers with the authority to invest shall also have the same level of authority to divest.
(4) Proper records should be kept of all investment decisions and transactions.
(5) An investment register shall be kept of all investments showing, for each of the investments, details of all the transactions, such as the placement, renewals, transfer and withdrawal for deposits or the purchase, acquisition, sale or disposition for other investments, involving that investment.
(6) The secretary shall table at each Town Council meeting a schedule of all investments and divestments made since the date of the last meeting.
(6A) The type of investments placed by a fund manager appointed by a Town Council to invest its funds, and the market value of such investments, shall be disclosed in the annual accounts of the Town Council.
(7) For the purposes of this rule, “approved bank” means any bank holding a banking licence issued by the Monetary Authority of Singapore.