NGO/Non-Profit/Charity Audit

Koh Lim Audit Singapore > NGO/Non-Profit/Charity Audit

NGO/Non-Profit/Charity Audit Services

In the realm of non-profit organizations, maintaining financial transparency and accountability is crucial for building trust with donors, stakeholders, and the community. At Koh & Lim Audit PAC, we specialize in providing comprehensive audit services for NGOs, non-profits, and charities. Our dedicated team of auditors is committed to ensuring that your financial records are accurate, compliant, and reflective of the highest standards of integrity and professionalism.

What is an NGO/Non-Profit/Charity Audit?

An audit for NGOs, non-profits, and charities is a detailed examination of the financial records and statements of an organization. This audit aims to verify the accuracy of financial statements, ensure compliance with statutory and regulatory requirements, and evaluate the effectiveness of internal controls. It is essential for fostering trust among donors, stakeholders, and the community, ensuring the proper use of funds, and maintaining regulatory compliance.

Why Choose Koh & Lim Audit PAC?

  1. Specialized Expertise: Our team has extensive experience in conducting audits for NGOs, non-profits, and charities. We understand the unique financial and regulatory challenges faced by these organizations and bring specialized knowledge to each audit engagement.
  2. Accuracy and Compliance: We are dedicated to ensuring that your financial statements are accurate and comply with all relevant statutory and regulatory requirements. Our rigorous audit procedures help identify discrepancies and ensure transparency in financial reporting.
  3. Tailored Approach: Every non-profit organization is unique, and so are its financial needs. We provide customized audit solutions tailored to the specific requirements of your organization, ensuring a comprehensive and relevant audit process.
  4. Timely and Efficient: We recognize the importance of timely financial reporting. Our efficient audit processes are designed to minimize disruptions and deliver high-quality results within the agreed timelines.
  5. Confidentiality and Integrity: Upholding the highest standards of confidentiality and integrity is at the core of our practice. You can trust us to handle your financial information with the utmost care and professionalism.

Our Audit Process

  1. Initial Consultation: We begin with an in-depth consultation to understand your organization’s operations, financial processes, and specific audit requirements. This allows us to tailor our audit plan to your unique circumstances.
  2. Planning and Risk Assessment: Our team conducts a thorough planning and risk assessment to identify key areas of focus and potential risks. This step ensures that our audit is both comprehensive and efficient.
  3. Fieldwork and Data Collection: During the fieldwork phase, we collect and analyze financial data, review internal controls, and perform substantive testing. Our auditors work closely with your management team to gather the necessary information while minimizing disruptions.
  4. Reporting and Review: After completing the fieldwork, we prepare a detailed audit report outlining our findings, conclusions, and recommendations. We review the report with you to ensure clarity and address any questions or concerns.
  5. Follow-Up and Support: Our commitment to your organization doesn’t end with the audit report. We provide ongoing support and follow-up to help you implement our recommendations and improve your financial processes.

Benefits of an NGO/Non-Profit/Charity Audit

  • Enhanced Transparency: An audit enhances the transparency of your financial statements, fostering trust among donors, stakeholders, and the community.
  • Regulatory Compliance: Ensure compliance with statutory and regulatory requirements, avoiding potential penalties and legal issues.
  • Improved Financial Management: Identify areas for improvement in your financial processes and controls, leading to better financial management and performance.
  • Risk Mitigation: Detect and mitigate financial risks early, protecting your organization from potential losses and fraud.

At Koh & Lim Audit PAC, we are dedicated to providing top-notch audit services that support the financial health and success of your non-profit organization. Contact us today to learn more about how we can help ensure the accuracy, compliance, and integrity of your financial statements.


What is a Non-Profit Organization in the context of Singapore

In the context of Singapore, a non-profit organization (NPO) is an entity established with the primary objective of serving the public interest and welfare rather than generating profit for its members or shareholders. These organizations operate in various sectors, including social services, health, education, environment, and culture. Here are some key characteristics and types of NPOs in Singapore:

Key Characteristics

  1. Purpose and Mission:
    • NPOs are driven by missions focused on social, environmental, cultural, or community-based objectives.
    • They aim to address specific needs or issues within the society.
  2. Non-Distribution Constraint:
    • Profits or surplus generated by the organization are reinvested into its operations and programs rather than distributed to members or stakeholders.
  3. Legal Structure:
    • NPOs in Singapore can be structured as societies, companies limited by guarantee (CLG), charitable trusts, or public companies.
  4. Governance:
    • NPOs are typically governed by a board of directors or trustees who oversee the organization’s activities and ensure adherence to its mission.

Types of NPOs in Singapore

  1. Societies:
    • Registered under the Societies Act, these are member-based organizations that must have at least 10 members.
  2. Charities:
    • These are NPOs registered under the Charities Act and are subject to regulation by the Commissioner of Charities.
    • Charities can take the form of societies, companies limited by guarantee, or trusts.
  3. Companies Limited by Guarantee (CLG):
    • These are incorporated under the Companies Act and do not have share capital. Members’ liability is limited to the amount they agree to contribute if the company is wound up.
    • CLGs are often used for larger NPOs due to their clear governance and regulatory requirements.
  4. Trusts:
    • These are legal arrangements where trustees manage assets for the benefit of beneficiaries as defined in the trust deed.
    • Trusts can be charitable in nature, focusing on specific causes or groups.

Regulatory Framework

  • Commissioner of Charities:
    • The Commissioner oversees the regulation of charities and ensures compliance with the Charities Act.
    • Charities must adhere to reporting requirements, governance standards, and codes of practice.
  • Registry of Societies:
    • This body oversees societies registered under the Societies Act, ensuring they comply with legal requirements and maintain proper records.

Key Considerations for NPOs in Singapore

  1. Funding and Sustainability:
    • NPOs rely on various funding sources, including donations, grants, sponsorships, and fundraising events.
    • Maintaining financial sustainability is crucial for long-term operations.
  2. Transparency and Accountability:
    • NPOs must ensure transparency in their financial reporting and operational activities.
    • Regular audits and adherence to governance standards help build trust with stakeholders.
  3. Impact Measurement:
    • Assessing and reporting the impact of their programs and initiatives is vital for demonstrating effectiveness and securing ongoing support.
  4. Volunteer and Staff Management:
    • Effective management of volunteers and staff is essential to achieving the organization’s mission and maintaining high levels of engagement.

What is a Non-Governmental Organization in the context of Singapore

In the context of Singapore, a Non-Governmental Organization (NGO) is a non-profit entity that operates independently from the government to address various social, environmental, cultural, or community-based issues. NGOs in Singapore engage in a broad spectrum of activities aimed at improving societal welfare, advocating for policy changes, and providing services that complement government efforts. Here are some key aspects of NGOs in Singapore:

Key Characteristics

  1. Independence:
    • NGOs operate independently from government influence, though they may collaborate with governmental bodies on certain projects or receive government grants.
  2. Purpose and Mission:
    • NGOs are mission-driven, focusing on specific causes such as human rights, environmental conservation, health, education, and social services.
  3. Non-Profit Nature:
    • Similar to other non-profit organizations, NGOs do not distribute profits to members or shareholders but reinvest any surplus into furthering their mission.

Types of NGOs in Singapore

  1. Advocacy NGOs:
    • These organizations work to influence public policy and promote social change. Examples include human rights organizations and environmental advocacy groups.
  2. Operational NGOs:
    • These NGOs focus on implementing projects and providing services. They may run programs in areas like health, education, disaster relief, and community development.
  3. Hybrid NGOs:
    • Some NGOs combine both advocacy and operational activities, engaging in policy dialogue while also delivering services on the ground.

Legal Structures and Registration

  1. Societies:
    • Many NGOs in Singapore are registered as societies under the Societies Act. This structure requires a minimum of 10 members and compliance with the Act’s regulations.
  2. Companies Limited by Guarantee (CLG):
    • Some NGOs choose to register as CLGs under the Companies Act. This structure offers a formal corporate governance framework without share capital, limiting members’ liability to their guaranteed contributions.
  3. Charitable Trusts:
    • NGOs can also be established as trusts, where trustees manage assets for the benefit of specific causes or beneficiaries.

Regulatory Framework

  1. Registry of Societies:
    • This body oversees societies, ensuring they comply with the legal requirements for registration and operation.
  2. Commissioner of Charities:
    • NGOs registered as charities must adhere to the Charities Act, which includes regulations on governance, transparency, and accountability. The Commissioner of Charities oversees compliance.
  3. Regulations and Reporting:
    • NGOs must maintain accurate records, submit annual reports, and undergo audits to ensure transparency and accountability.

Key Considerations for NGOs in Singapore

  1. Funding and Resource Management:
    • NGOs rely on various funding sources, including donations, grants, and fundraising activities. Effective financial management is crucial for sustainability.
  2. Transparency and Accountability:
    • Maintaining high standards of transparency and accountability is essential for building trust with donors, beneficiaries, and the public. Regular reporting and audits are part of this process.
  3. Impact Assessment:
    • NGOs need to measure and report the impact of their programs to demonstrate their effectiveness and attract ongoing support.
  4. Collaboration and Networking:
    • Collaborating with other NGOs, government agencies, and private sector partners can enhance the effectiveness and reach of their initiatives.
  5. Volunteer and Staff Management:
    • Recruiting, training, and retaining dedicated volunteers and staff is vital for the successful implementation of projects and activities.

Prominent NGOs in Singapore

  1. Singapore Red Cross Society:
    • Engages in humanitarian efforts, disaster relief, and community services.
  2. Nature Society (Singapore):
    • Focuses on the conservation of Singapore’s natural heritage and biodiversity.
  3. AWARE (Association of Women for Action and Research):
    • Advocates for gender equality and provides support services for women.
  4. Humanitarian Organization for Migration Economics (HOME):
    • Supports the rights and welfare of migrant workers in Singapore.