Charities & IPCs Audit
The key legislations governing charities and Institutions of a Public Character (IPCs) listed as follows:
- Charities Act 1994
- Charities (Accounts and Annual Report) Regulations 2011
- Charities (Fund-Raising Appeals for Local and Foreign Charitable Purposes) Regulations 2012
- Charities (Large Charities) Regulations
- Charities (Registration of Charities) Regulations
- Charities (Institutions of A Public Character) Regulations
- Charities (Electronic Transactions Service) Regulations 2019
As part of the Annual Report, charities are required to prepare the financial statements in accordance to the Charities Act and Regulations. If your charity is a company limited by guarantee, its financial statements will be audited based on the requirements under the Companies Act.
To provide greater flexibility, the audit thresholds for charities have been revised upwards, as shown below:
| Gross Income or Total Expenditure | Minimum Requirements |
|---|---|
| $250,000 or less | Accounts can be examined by an independent person (also known as the Independent Examiner*) who is reasonably believed by the governing board members to have the requisite ability and practical experience to carry out a competent examination of the accounts. |
| Between $250,000 and $500,000 | Accounts can be examined by an independent person who is a member of the Institute of Singapore Chartered Accountants (ISCA) (formerly known as the Institute of Certified Public Accountants of Singapore) or who possesses the necessary qualifications to be a member of the ISCA. |
| Above $500,000 and All IPCs |
Accounts have to be externally audited by a public accountant. |
All charities which are required to have their financial statements audited under the Charities (Accounts and Annual Report) Regulations are required to comply with either the Financial Reporting Standards (FRS) or the Charities Accounting Standard (CAS). However, those charities that hold significant investments in any subsidiary, associate or joint venture that is not a charity, are required to comply with FRS.
Do email us at info@cogentaudit.com so we could advise you on the aspects in which we could be of service to you.
Source: Charity Portal
This page was last updated on 2nd March, 2023.