Course Description

This module focuses on the critical role that audit committees play in ensuring both regulatory compliance and supporting the mission of not-for-profit organisations. 

It explores the unique challenges faced by audit committees in different types of non-profits such as charities, associations, companies limited by guarantee, and co-operatives while highlighting the importance of financial stewardship, internal controls, risk management, and ethical governance. 

Learners will gain insights into how audit committees can effectively monitor compliance with legal obligations, maintain accountability, and align financial oversight with mission-driven goals. Experience sharing of actual practices and approaches are included to equip audit committee members with the knowledge to uphold both governance and the organisation’s long-term mission.

Module Outline

1. Introduction to the Role of Audit Committees (AC)
   • Definition and purpose of Audit Committees
   • Mission vs. compliance balance
   • Key Differences in non-profit entities’ board (charities, associations, companies limited by guarantee, co-operatives) as compared to for-profit entities’ boards
2. Regulatory and Compliance Obligations
   • Statutory, regulatory and legal obligations for different non-profits
   • Risks of non-compliance and learning points from past cases (e.g. Ren Ci Hospital, NKF etc.)
3. Financial Stewardship
   • Differences between non-profit entities’ board’s financial focus against for-profit entities’ boards
   • How sound financial management is critical for stewardship
   • Evaluating program impact vs financial efficiency
   • Strategic oversight
4. Internal Controls and Risk Management
   • Building effective internal control frameworks (e.g. COSO)
   • Fraud cases impacting non-profit entities (e.g. Singapore Statutory Boards Employees’ Co-operative Thrift & Loan Society Fraud)
   • Fraud Risk Management in non-profits (e.g. ACFE-COSO Fraud Risk Management Guide)
5. Challenges Faced by Non-Profit Audit Committees
   • Unique challenges in different non-profit entities
   • Best practices for effective governance
   • Ethics and integrity
6. Summary
   • Recap of compliance, mission support, internal controls and strategic financial governance
   • Practical tips for continuous improvement