Reading and Understanding of Non-Profit Financial Statements

Created by

ISCA Academy

1.5 CPE Hours

303 Enrolled

English

Last updated

Wed, 08-Oct-2025

Course Description

Module Coverage

1. Overview of NPOs

  • Definition of not-for-profit organisations 
  • Legal structures and governance of NPOs 
  • Importance of financial transparency and accountability in NPOs
  • Number of charities in Singapore (IPC/ Registered charities/sector)
  • Sector administrator looking after charities
  • 30/70 rule 

2. Understanding the NPO Financial Statements 

i. Introduction to NPO Financial Statements 

  • Statement of Financial Position (Balance Sheet)
  • Statement of Financial Activities (Income Statement)
  • Statement of Funds
  • Statement of Cash Flows
  • Presentation of Balance Sheet and Income Statement by funds
  • Notes to the Financial Statements

ii. Key Accounts in NPO Financials 

  • Revenue: Donations, grants, membership fees, earned income
  • Expenses: Programme services, fundraising, administrative costs
  • Assets: Plant and equipment, right of use assets, cash, investments
  • Liabilities: Trade and other payables, government grant liability
  • Net assets: Unrestricted, temporarily restricted, and permanently restricted
  • Reserve funds and the need to track usage separately 

3. Accounting Principles and Concepts for NPOs 

i. Fund Accounting

  • Understand the fund accounting system
  • Tracking restricted vs. unrestricted funds including designated
  • How to allocate and manage funds for specific purposes

ii. Revenue Recognition for NPOs

  • Understanding the recognition of grants, donations, and other income sources
  • Accrual basis of accounting
  • Donor-imposed restrictions and their impact on revenue reporting (Grant accounting difference between CAS vs FRS)

iii. Cost Allocation

  • Direct vs indirect costs
  • Allocating overhead costs properly (e.g. administrative expenses vs programme costs)
  • Accrual basis of accounting
  • The importance of transparency in cost allocation for accountability and reporting purposes 
Instructor Image

Uthaya Ponnusamy

RSM Partner & Industry Lead - Not-for-Profit Practice, RSM SG Assurance LLP

Uthaya leads RSM's Not-for-Profit Practice. She has significant audit experience, including time spent at Big 4 firms in Singapore and New York where her portfolio of clients included public-listed companies and multinationals in sectors such as retail, consumer products, aviation leasing, shipping, real estate and industrial products, as well as not-for-profits organisations (NPOs).She helps clients in due diligence and reporting accountant assignments for initial public offerings on the Singapore Exchange. In her current role with the Firm, she also conducts external and internal technical seminars.Uthaya is a member of the Audit Committee of the Singapore Indian Development Association.Prior to joining the Firm, Uthaya was Chief Financial Officer at a public-listed company in Singapore.
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Instructor Image

Kelly Lee

Partner, RSM SG Assurance LLP

Kelly is a member of the Firm’s Not-for-Profit Practice, which is dedicated to serving the needs of charities and not-for-profit organisations. She assists with assurance assignments that include large charities and IPCs across diverse sectors with primary activities related to health, social services and education.Kelly currently serves as an Audit Committee member of an NPO in the healthcare sector. Her portfolio also includes commodities, manufacturing companies and public-listed companies in the retail industry.Kelly is also part of the Firm’s technology team where she works closely with the data science department to explore the possibility of using data science to replace traditional assurance work procedures.A truly “home-grown” talent, Kelly joined the Firm as an audit assistant in 2008 and rose to her current role as a partner. 
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Instructor Image

Tan Wei Ling

Partner, RSM SG Assurance LLP

Wei Ling is a partner of the Firm, specialising in serving not-for-profit organisations.She has also provided audit and assurance services to a diverse clientele including public-listed companies and multinational corporations in the industrial manufacturing sector, real estate and construction, healthcare, and general trading and service industries. In addition, Wei Ling also conducts internal and external training on financial reporting matters.  Prior to joining the Firm - Wei Ling had more than 10 years of audit experience with PwC Singapore, and also worked for ACRA, Singapore’s accounting regulatory body.
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Course Rating

Speaker's Rating

1.5 CPE Hours

Lesson

2

Quizzes

1

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