Course Description

Module Coverage

1. Financial Statement Analysis and Interpretation 

i. Overview of key financial statements for charities:

• Income and Expenditure Statement.
• Statement of Financial Position (Balance Sheet).
• Cash Flow Statement.

ii. Unique aspects of charity finances:

• Restricted and unrestricted funds.
• Donor-specific reporting requirements.
• Impact reporting.

iii. Importance of ratio analysis for evaluating financial health:

• Liquidity ratios.
• Sustainability metrics.

iv.  Case Study & Example:

• Case study: Analysing the financial health of a mid-sized charity through anonymised financial statements.
• Example: Identifying potential financial risks through cash flow trends.

2. Regulatory Requirements 

i. Overview of regulatory bodies and requirements:

• ACRA (Accounting and Corporate Regulatory Authority): Filing and reporting obligations.
• IRAS (Inland Revenue Authority of Singapore): Tax obligations, including GST requirements for charities, donations reporting.
• Charities Unit (Commissioner of Charities): Compliance with the Code of Governance for Charities and IPCs.

ii. Transparency and accountability through timely and accurate reporting.

iii. Filing requirements under SFRS and submission to the Charities Portal.

iv. Case Study & Example:

• Case study: Penalties incurred by a charity for non-compliance and the steps taken for remediation.
• Example: Compliance challenges faced by small charities and strategies to overcome them.

3. Financial Reporting Standards and Audit Processes 

i. Financial reporting standards relevant to charities:

• SFRS (Singapore Financial Reporting Standards).
• Charities Accounting Standard (Singapore Accounting Standards Council)
• IPSAS (International Public Sector Accounting Standards).

ii. How reporting standards enhance comparability and transparency.

iii. Key audit types:

• Statutory audits.
• Internal audits.
• Financial reviews.

iv. Roles and responsibilities during the audit process:

• Board and management oversight.

4. Risk Management and Internal Controls 

i. Importance of robust internal controls in non-profits:

• Segregation of duties.
• Approval hierarchies.
• Fraud prevention mechanisms.

ii. Developing a risk management framework:

• Risk identification, assessment, and mitigation.
• Regular reviews and updates to control systems.

iii. Leveraging tools like the COSO Framework for risk management.

iv. Case Study & Example:

• Case study: Fraud incident in a local charity and lessons learned.
• Example: Designing internal controls for a procurement process.