FOR IMMEDIATE RELEASE
25 January
2007,
We would
like to applaud the steps taken by the COC in commencing an inquiry and
acknowledge the intention of the COC to safeguard the public interest in the realm
of charitable organisations.
Charitable
organisations should use donations and other income for the intended charitable
purposes in an efficient and effective manner.
Proper governance structures and internal controls will have to be
implemented to help ensure this. It is
critical that these governance structures and internal controls actually
operate effectively in practice and this will entail investing certain
resources.
Recent
cases in the charitable sector emphasise the need for greater emphasis on
having sound governance structures and internal controls in charitable
organisations. Sound governance requires competent and committed board members
who are able to provide independent oversight over management. Additionally, sound internal controls are
necessary to help ensure the integrity of the financial reporting process,
reduce the possibility of creative accounting practices, and minimise the risk
of misuse of resources.
Proper
governance comprises several elements, namely, the board, the external auditor
and the internal auditor. The board of directors must take a proactive role in
setting the proper tone and creating and maintaining a culture of integrity and
sound ethics throughout the organisation.
By virtue
of their nature, charities are publicly accountable and hence, must provide
proper reporting of their activities. In
this regard, the Institute has issued a Statement of Recommended Accounting 6
(RAP 6) Accounting and Reporting by Charities, which sets out
recommendations on the way in which a charity should account for, and report on
the resources entrusted to it and the activities, which it undertakes. Compliance with RAP 6 and the attendant
disclosures required by the RAP will enable charities to be more
transparent. The Institute would like to
encourage all charities to adhere to the provisions in RAP 6 when preparing
their financial report.
ICPAS,
through its Corporate Governance Committee, strongly advocates best corporate
governance practices and views the integrity and professionalism of directors,
management, auditors and other intermediaries as paramount in ensuring good
corporate governance. The Institute
would like to categorically state that the accountancy profession in
The
Institute of Certified Public Accountants of Singapore (ICPAS) is the national
organisation of the accountancy profession in
The
Corporate Governance Committee aims to draw on the experience of auditors,
accountants, consultants and business people working in different fields to
take a proactive role in the development, implementation and promotion of sound
corporate governance. Its terms of reference include reviewing matters relating
to corporate governance, conducting relevant research and consultation on
corporate governance in a proactive manner, drafting of consultative papers and
other legislative and regulatory proposals, and guidelines to members in the
form of study reports, proposing changes to the Listing Rules and the Code of
Corporate Governance and other related laws and regulations as appropriate and
exchanging views with government, regulatory bodies, professional bodies and
other relevant organisations on matters relating to corporate governance.
For more
information, please contact:
Ms Catherine
Chan
Communications
Manager
Tel: 65 6749
8060 Ext 813
Fax: 65 6749
8061
Email:
catherine.chan@icpas.org.sg
OR
Ms Desiree Lim
Communications
Officer
Tel: 65 6749
8060 Ext 817
Fax: 65 6749
8061
Email: desiree.lim@icpas.org.sg